Attached files
| file | filename |
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| 8-K - FORM 8-K - InvenTrust Properties Corp. | d651145d8k.htm |
Exhibit 99.1
Q: Will the new estimated share value affect my monthly distribution?
A: No. Despite the major portfolio repositioning of close to $3 billion in assets this past year, we generated solid and stable cash flows from our assets and currently, there are no plans to change our annual distribution rate of $0.50 per share.
Q: Will this impact the Distribution Reinvestment Plan (DRP) or current Share Repurchase Program (SRP) for death and disability?
A: Only the price will change. After December 31, 2013, and until such time as we announce a new estimated value, any reinvestment under the DRP or purchase under the SRP will be executed at a price equal to $6.94 per share. If you would like to make any changes to your DRP or SRP participation, please don’t hesitate to contact Inland’s Investor Services group at 800.826.8228.
Q: Understanding that with the significant portfolio changes this year, a comparison of the 2013 estimated share value to the 2012 estimated share value may be difficult, but can you provide a same-store comparison?
A: Our same-store property values increased approximately 3.5% in the aggregate over last year. This increase was offset by transaction costs from our $1.8 billion in sales through 9/30/13, a downward adjustment in the fair value of our debt, and an increase in the number of shares outstanding. Just a reminder, no disposition or acquisition fees were taken by any affiliates of the Inland American Business Manager for the transactions discussed above.
Q: How does your estimated valuation compare with the share price performance of traded REITs?
A: Based on the most recent year-to-date data, traded REIT indexes appear to have traded flat to slightly down in 2013. While this may be an interesting comparison to some, we do not believe the comparison is relevant. Importantly, in arriving at our estimated share value, we did not place any weight on the relationship between the NAV of traded REITs and their trading price, and did not attempt to quantify how that relationship may have impacted our estimated share value. The NAV method by which we arrived at our estimated share price does not factor in any premium or discount that may exist if our shares were listed on a national securities exchange.
Q: So why did you use NAV to determine the estimated share value?
A: Our audit committee, our entire board and Real Globe all followed the most recently published industry guidelines (Investment Program Association) in connection with estimating our per share value. Those guidelines suggest that non-listed REITs use an independent, third party to value our assets using the NAV method and assist in the process of determining the estimated share value. The NAV method is currently the most commonly used valuation method for the non-listed REIT industry.
Q: What is Inland American’s go-forward strategy to increase shareholder value?
A: As we have outlined previously, our strategy includes:
| • | Focusing the Company’s diversified assets in three specific real estate classes – multi-tenant retail, lodging and student housing – by tailoring, expanding and refining these portfolios; and |
| • | Positioning the portfolio for multiple portfolio liquidity events, which we would execute if and when any such liquidity events were in the best interest of the Company. |
If your question was not covered above please do not hesitate to contact our Investor Services group at 800.826.8228. We also invite you to watch a video produced by senior management available in mid-January discussing the new estimated share value on the Inland American website—www.inlandamerican.com. On behalf of the Board and the management team at Inland American, we would like to thank you for your continued confidence and support in our company. We look forward to updating you throughout 2014 on our progress.
Sincerely,
| INLAND AMERICAN REAL ESTATE TRUST, INC. | ||||
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| Robert D. Parks | Thomas P. McGuinness | |||
| Chairman of the Board | President | |||
cc: Trustee
Broker Dealer
Financial Advisor
The statements and certain other information contained in this letter, which can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “continue,” “remains,” “intend,” “aim,” “towards,” “should,” “prospects,” “could,” “future,” “potential,” “believes,” “plans,” “likely,” “anticipate,” “position,” “probable,” “committed,” “achieve,” and “focused,” or the negative thereof or other variations thereon or comparable terminology, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These statements should be considered as subject to the many risks and uncertainties that exist in the Company’s operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to, economic conditions, market demand and pricing, competitive and cost factors, and other risk factors.
