Inland Real Estate Reports $2.6 Million Net Loss in Q1 2025, Improved from Previous Year

Inland Real Estate Income Trust, Inc. reported a net loss of $2.6 million for the first quarter of 2025, an improvement from a net loss of $3.3 million during the same period in 2024. The company generated total income of $38.8 million, up from $37.5 million year-over-year, primarily driven by an increase in rental income, which rose to $38.8 million from $37.3 million. Total expenses also increased, reaching $31.7 million compared to $30.5 million in the prior year, largely due to higher property operating expenses and general administrative costs.

The company’s total assets decreased to $1.28 billion as of March 31, 2025, down from $1.29 billion at the end of 2024. This decline was attributed to a reduction in net investment properties, which fell to $1.16 billion from $1.17 billion, reflecting accumulated depreciation. Cash and cash equivalents increased to $8.1 million from $6.4 million, while total liabilities decreased slightly to $920.7 million from $925.4 million. The company maintained a consistent number of shares outstanding, with 36,104,130 shares as of March 31, 2025.

Inland Real Estate continues to focus on its strategic plan to create a liquidity event for stockholders, primarily through the acquisition of grocery-anchored properties. As of the end of the first quarter, the company owned 52 retail properties totaling 7.2 million square feet across 24 states, with a physical occupancy rate of 90.9% and an economic occupancy rate of 91.5%. However, both metrics showed a decline from the previous quarter, attributed to certain anchor tenants vacating their locations.

The company has suspended its distribution reinvestment plan and share repurchase program as of October 1, 2024, while it reviews strategic alternatives, including a potential sale. This review is ongoing, and there is no set timeline for completion. The company has indicated that it does not expect to acquire new properties or engage in redevelopment activities during this period, which may impact its growth potential.

Looking ahead, Inland Real Estate's management has expressed caution regarding market conditions, including inflation and interest rate volatility, which could affect tenant demand and rental rates. The company is also focused on managing its debt, which totaled approximately $838 million as of March 31, 2025, with a weighted average interest rate of 4.55%. The company plans to address upcoming mortgage maturities through cash flows from operations, cash on hand, and available credit under its revolving credit facility.