InvenTrust Properties

InvenTrust Properties, Inc. (formerly Inland American Real Estate Trust, Inc. [Inland American]) is a non-publicly traded real estate investment trust that invests in shopping malls. The company owns and manages 66 properties comprising 11 million square feet.[1]

Inland American Real Estate Trust, Inc.
Real estate investment trust
IndustryShopping malls
Founded2004 (2004)
HeadquartersOak Brook, Illinois
Key people
Thomas P. McGuinness, CEO
Daniel Busch, CFO
Websitewww.inventrustproperties.com

The shares do not have market liquidity.[2] Shares were sold through broker-dealers.[3]

The company has been criticized for not liquidating with 12 years of its foundation, as is typical for non-traded REITs.[4] The company publishes an estimated value of its shares every May on its website; however, it did not publish a value in May 2020 due to the COVID-19 pandemic. The most recent published value was $3.14 per share as of May 2019.[5] In March 2015, an article in The Wall Street Journal referred to the company as a "Zombie REIT" due to significant investor losses and dividend cuts.[6]

The company has also been criticized because it “bought a lot of property at the height of the market"[7] and for "massive related party fees charged to investors".[8]

History

The company was launched in 2005. Brokers sold shares to investors for $10 each, raising $9 billion.[9]

In 2012, the U.S. Securities and Exchange Commission investigated the company's administration and fees, concluding the investigation in 2015 without recommending charges. The week the investigation was closed, the company sued its former management team.[10]

In 2012, Inland Western completed an initial public offering but debuted at only 60% of its original price to investors.[11][2]

As of February 2014, the company was the largest non-publicly traded real estate investment trust in the United States.[9]

In March 2014, the firm announced that functions performed by its external, related-party managers would now be performed by the REIT itself.[12]

In September 2014, the company sold its select-service hotel portfolio to NorthStar Realty Finance (now Colony Capital) for $1.1 billion. The proceeds of $480 million were invested in shopping malls and student housing.[13][14]

In February 2015, the company completed the corporate spin-off of Xenia Hotels & Resorts to its shareholders.[15][16] Following the spin-off, the estimated value of InvenTrust Properties was $4 a share.[17]

In April 2015, the company changed its name to InvenTrust Properties.[18][19]

In April 2016, the company completed the corporate spin-off of Highlands REIT.[20]

In June 2016, the company sold its student housing division to a group including the CPP Investment Board for $1.4 billion.[21][22]

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References
  1. "About Us". InvenTrust Properties.
  2. Gallun, Alby (March 31, 2012). "Inland's Sword of Damocles". Crain Communications.
  3. Kelly, Bruce (March 20, 2014). "Once-mighty nontraded REIT sponsor Inland Real Estate Investment Corp. plots a comeback". Investment News.
  4. Cahill, Joe (March 24, 2017). "Pity the investors who bought into this real estate trust". Crain Communications.
  5. "Estimated Value Per Share". InvenTrust Properties.
  6. Whelan, Robbie (March 24, 2015). "Property Investors' Latest Horror: Zombie REITs". The Wall Street Journal.
  7. GALLUN, ALBY (March 22, 2014). "Inland REIT unlocks the exits". Crain Communications.
  8. "Don't let an LPL advisor put you in an Inland zombie REIT, says UNITE HERE in letter to retirees" (Press release). Business Wire. November 4, 2015.
  9. Kelly, Bruce (February 10, 2014). "Huge non-traded REIT getting liquid?". Investment News.
  10. Kelly, Bruce (March 31, 2015). "SEC drops investigation of Inland American but giant REIT raises new questions over fees". Investment News.
  11. GALLUN, ALBY (October 17, 2013). "Stepping up the money chase". Crain Communications.
  12. "Inland American Real Estate Trust, Inc. Reaches Important Milestone – Signs Agreements to Become Self-Managed" (Press release). Business Wire. March 13, 2014.
  13. "Inland American Announces Sale of Select Service Hotel Portfolio for $1.1 Billion" (Press release). Business Wire. September 18, 2014.
  14. WHITEMAN, LOU (September 18, 2014). "NorthStar Realty Finance Inks $1.1B Deal for Inland Properties". TheStreet.com.
  15. "Inland American Completes Spin-off of Xenia Hotels & Resorts, Inc" (Press release). Business Wire. February 4, 2015.
  16. "Xenia Hotels REIT Goes Public After Spinoff From Inland". Law360. February 4, 2015.
  17. Kelly, Bruce (February 26, 2015). "Inland American cuts NAV after asset sale". Investment News.
  18. "Inland American Real Estate Trust Inc. Changes Its Name to InvenTrust Properties Corp" (Press release). Business Wire. April 16, 2015.
  19. Borland, Kelsi Maree (April 27, 2015). "Inland American Becomes InvenTrust Properties". GlobeSt.com.
  20. "InvenTrust Properties Corp. Completes Spin-off of Highlands REIT, Inc" (Press release). Business Wire. April 28, 2016.
  21. "InvenTrust Properties Corp. Announces $1.4 Billion Purchase Agreement to Divest University House, Its Student Housing Platform" (Press release). Business Wire. January 4, 2016.
  22. Morphy, Erika (July 1, 2016). "InvenTrust Closes UHC Student Housing Portfolio Sale". GlobeSt.com.
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