Inland Real Estate Income Trust, Inc. reported a net loss of $14.98 million for the fiscal year ending December 31, 2024, a slight improvement from the $15.12 million loss recorded in 2023. The company's total revenue increased to $149.42 million, up from $146.76 million in the previous year, primarily driven by higher rental income and tenant recovery income. The average annualized base rent (ABR) per square foot rose to $19.72, compared to $19.61 in 2023. Despite these revenue gains, the company continues to face challenges, including a significant reliance on its grocery-anchored properties, which represented 87% of its annualized base rent.
The company has not engaged in any acquisitions or dispositions during 2024, maintaining its portfolio of 52 retail properties totaling 7.2 million square feet. The physical and economic occupancy rates improved to 93.1% and 93.4%, respectively, compared to 91.6% and 92.0% in 2023. However, the board of directors has suspended the distribution reinvestment plan (DRP) and share repurchase program (SRP) as part of a strategic review process initiated in September 2024, which may include the potential sale of the company. This review is ongoing, and there is no assurance that it will lead to a liquidity event or favorable outcomes for stockholders.
Operationally, the company has faced increased costs, particularly in property operating expenses, which rose to $47.96 million from $47.77 million in 2023. The increase was attributed to higher snow removal costs and repairs and maintenance expenses. The business management fee decreased due to an amendment in the management agreement, which reduced the base fee. The company’s interest expense also decreased, reflecting lower average debt outstanding and a reduction in interest rate swap amortization.
Looking ahead, the company remains cautious about its financial outlook, particularly in light of ongoing inflationary pressures and rising interest rates, which could impact consumer spending and tenant profitability. The board's strategic review may lead to changes in investment policies, and the company does not expect to acquire new properties or engage in redevelopment activities during this period. The management team continues to monitor market conditions closely, as the outcome of the strategic review will significantly influence the company's future direction and operational strategies.
About Inland Real Estate Income Trust, Inc.
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