QUOTE AND NEWS
Benzinga  Dec 16  Comment 
The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday December 15, 2015: Inland Real Estate to be Acquired by DRA for $10.60/Share in Cash The Deal: Inland Real Estate Corporation (NYSE: IRC) announced...
Benzinga  Dec 15  Comment 
Inland Real Estate Corporation (NYSE: IRC) shares rose 6.24 percent to $10.56. The volume of Inland Real Estate shares traded was 4738 percent higher than normal. Inland Real Estate agreed to be acquired by DRA Advisors funds in a deal valued at...
Benzinga  Nov 10  Comment 
Inland Real Estate Acquisitions, Inc. (NYSE: IRC) announced today that it facilitated the acquisition of 13 properties purchased in October by Inland related parties. The acquisitions total more than 1.65 million square feet...




 
TOP CONTRIBUTORS

Inland Real Estate acquires, owns, operates and develops open-air neighborhood, community, power shopping centers and single-tenant retail properties located primarily in the upper Midwest markets.[1] Around 66% of the company's total retail space is located in the greater Chicago area, with the second largest concentration at around 18% in Minneapolis - St. Paul. The company owns approximately 140 investment properties totally to approximately 2,099,000 gross leasable square feet. Because rents come from a wide variety of sectors, macroeconomic factors will highly determine the tenant quality and their ability to pay to IRC.

Business Growth

IRC's tenants at its retail properties primarily provide “everyday” goods and services to consumers. As a result, the primary drivers of internal income growth are rental rate increases over expiring rates on new and renewal leases and cost savings from operational efficiencies.[2]

Trends and Forces

Volatility and Instability in Credit Markets bring High Barriers to Financing for REITS

Because REITS are obligated to pay out 90% of income to shareholders, which therefore allow it to become a pass-through entity, REITS such as IRC have difficulty simply retaining cash on hand. Without a large surplus of cash at hand to fund growth, IRC must resort to external financing from either credit or equity markets. Equity markets tend to be dilutive to shareholders, and as such stable credit markets are necessary to insure a continuance of refinancing opportunities as REITS are traditionally unable to keep large amounts of cash at hand to pay off balloon payments.

Online Competitors Steal Customers Away from Traditional Rental Properties

Roughly 60% of IRC's revenues come from retail. As retail tenants face increasing competition from online retailers, traditional brick-and-mortar tenants have chosen to either diversify their business line to online access or completely to online. This decrease in demand for rental properties pushes downward pressure to rent prices, which directly negatively influences IRC's top-line.

Competition

IRC competes with other REITs operating primarily in the retail space, such as:

  • Equity One (EQY) is a REIT that principally owns, manages, acquires and develops neighborhood and community shopping centers.[3]
  • Glimcher Realty Trust (GRT) is a self-administered and self-managed real estate investment trust (REIT) and its affiliates, of owning, leasing, acquiring, developing and operating a portfolio of retail properties consisting of regional and super regional malls, and community shopping centers.[4]
  • Macerich Company (MAC) is involved in acquisition, ownership, development, redevelopment, management and leasing of regional and community shopping centers located throughout the United States. [5]





References

  1. IRC FY2010 10-K, Pg 1
  2. IRC FY2010 10-K, Pg 3
  3. EQY Business Description
  4. GRT Business Description
  5. MAC Business Description
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki