Inland Real Estate Income Trust, Inc. reported a net loss of $11.0 million for the fiscal year ending December 31, 2025, a decrease from the $15.0 million loss recorded in 2024. The company's total revenue for 2025 was $151.1 million, reflecting a slight increase from $149.4 million in the previous year. The increase in revenue was primarily attributed to higher base rents from new leases and step-up rents on existing leases. However, total property operating expenses also rose to $50.9 million, up from $48.0 million in 2024, largely due to increased maintenance and utility costs.
The company maintained a portfolio of 52 retail properties totaling 7.2 million square feet, with a physical occupancy rate of 92.0% and an economic occupancy rate of 92.2% as of December 31, 2025. The average annualized base rent (ABR) per square foot was $19.57, a slight decrease from $19.72 in 2024. Notably, there were no acquisitions or dispositions during the year, and the company’s strategic focus remains on grocery-anchored properties, which accounted for 87% of its annualized base rent.
Inland Real Estate's board of directors recently reviewed strategic alternatives but decided against pursuing a sale of the company or other liquidity events at this time. The company has limited sources of capital, which restricts its ability to increase its asset base or fund share repurchases. The board has reinstated the distribution reinvestment plan (DRP) effective February 1, 2026, after a suspension in 2024, but there is no assurance that stockholders will participate at previous levels.
The company’s financial position is further complicated by its reliance on debt financing, with total debt outstanding at $841.7 million as of December 31, 2025. The weighted average interest rate on this debt was 4.65%. The company has a leverage ratio of 57%, which is within the limits set by its credit agreement. However, rising interest rates pose a risk to its financial stability, as increased rates could lead to higher debt service costs and impact cash flows available for distributions to stockholders.
Looking ahead, Inland Real Estate plans to invest approximately $22 million in capital expenditures and tenant improvements in 2026. The company continues to monitor market conditions and tenant performance closely, particularly in light of ongoing shifts toward e-commerce and the competitive landscape in the retail sector. The board remains committed to enhancing the company’s capital resources and providing liquidity to stockholders over time, although the path forward remains uncertain given current market dynamics.
About Inland Real Estate Income Trust, Inc.
Inland Real Estate Income Trust, Inc. is a Maryland-based REIT focused on acquiring and managing grocery-anchored retail properties across the U.S. Its portfolio includes shopping centers with high occupancy, primarily serving regional markets. Managed externally by affiliates of its sponsor, the company generates income from leasing retail spaces, with a strategic review underway for potential sale or restructuring, emphasizing stability and long-term value creation.
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