Inland Real Estate Income Trust Reports Q2 2025 Financial Results with Improved Income and Reduced Net Loss

Inland Real Estate Income Trust, Inc. reported its financial results for the second quarter of 2025, revealing a total income of $38.1 million, a 1.7% increase from $37.5 million in the same period last year. Rental income specifically rose to $38.0 million, up from $37.4 million, while net loss for the quarter improved to $2.2 million, compared to a loss of $3.2 million in the prior year. For the first half of 2025, total income reached $76.9 million, a 2.6% increase from $75.0 million in the first half of 2024, with net loss narrowing to $4.8 million from $6.5 million.

The company's balance sheet as of June 30, 2025, showed total assets of $1.27 billion, a decrease from $1.29 billion at the end of 2024. Notably, net investment properties held and used decreased to $1.15 billion from $1.17 billion, primarily due to accumulated depreciation. Cash and cash equivalents increased to $12.0 million from $6.4 million, reflecting improved liquidity. Total liabilities also decreased slightly to $919.6 million from $925.4 million, with mortgages and credit facilities payable remaining stable at approximately $833.2 million.

Inland Real Estate continues to focus on its strategic plan, which emphasizes acquiring and managing grocery-anchored retail properties. As of June 30, 2025, the company owned 52 retail properties totaling 7.2 million square feet across 24 states, with a physical occupancy rate of 91.6% and an economic occupancy rate of 91.9%. The company has suspended its distribution reinvestment plan and share repurchase program as it reviews strategic alternatives, including a potential sale of the company, which was announced in September 2024.

Operationally, the company reported an increase in property operating expenses to $30.5 million for the second quarter, up from $30.4 million in the previous year, driven by higher costs in insurance, utilities, and maintenance. The company’s general and administrative expenses remained relatively stable, while interest expense decreased due to lower average debt outstanding and interest rates. The company’s management indicated that it does not expect to acquire new properties or engage in redevelopment activities during the ongoing review of strategic alternatives.

Looking ahead, Inland Real Estate's management remains cautious about market conditions, particularly regarding interest rates and inflation, which could impact tenant demand and rental rates. The company has four mortgage loans maturing in the next 12 months, totaling approximately $137.5 million, and plans to address these obligations through cash flows from operations or refinancing. The board's review of strategic alternatives continues, with no set timeline for completion, and the company is focused on maintaining compliance with its financial covenants while managing its portfolio effectively.