Inland Real Estate Income Tr Inc · OTC:INRE
Inland Real Estate Income Tr — Inland Real Estate Income Trust — Shareholder Meeting (July 2014)
27 slides from Inland Real Estate Income Tr's shareholder meeting presentation, Jul 10, 2014
Slide 1: Annual Stockholders Meeting
Inland Real Estate Income Trust, Inc. Annual Stockholders Meeting July 10, 2014 10:00am CST REAL ESTATE THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER I NCOME TO BUY THE SECURITIES DEPICTED HEREIN. THE OFFERING IS MADE TRUST. INC. ONLY BY THE PROSPECTUS. z .
Slide 2: Prospectus and offering disclaimer
This presentation must be preceded or accompanied by a prospectus, as supplemented, in order to understand fully all of the implications and risks of the offering of securities to which it relates. A copy of the prospectus, as supplemented, must be made available to you in connection with this offer
Slide 3: Risk Factors
REAL ESTATE Risk Factors TRUST INC An investment in Inland Income Trust's shares involves significant risks. If Inland Income Trust is unable to effectively manage these risks, it may not meet its investment objectives and you may lose some of all of your investment. Please consult the "Risk Factors
Slide 4: Risk Factors (continued)
REAL ESTATE INCOME Risk Factors (continued) TRUST, INC Inland Income Trust may fail to continue to qualify as a REIT andis subject to all of the business risks and uncertainties associated with any new business. If Inland Income Trust fails to continue to qualify as a REIT, it will be required to pa
Slide 5: Table of Contents
(TE Table of Contents TRUST INC 1. Agenda 6 2 Directors and Executive Officers 7 3. Company Overview & Management Update 8 4, Investment Strategy 9 5. Acquisitions Update 13 6 Portfolio Overview af 7. Financial Highlights a
Slide 6: Meeting agenda
REAL ESTATE, INCOME ‘TRUST, INC. INLAND ®) 10. Call to Order and Opening Remarks: Daniel L. Goodwin, Chairman, Inland Real Estate Income Trust, Inc. Report of Quorum and Presentation of the Affidavit of Mailing of Proxy Solicitation: Kevin Kelly, Inspector of Elections, Morrow & CO LLC Proxy Vote: D
Slide 7: Directors and Executive Officers
REAL ESTATE INCOME TRUST, INC. Daniel Goodwin Mitchell Sabshon JoAnn McGuinness Catherine Lynch David Lichterman Roberta ‘Matlin Cathleen Hrtanek Boratart Lee Daniels Independe Stephen Davis Gwen Henry
Slide 8: Company Overview & Management Update
REAL ESTATE INCOME __ TRUST, INC. Mitchell Sabshon Chief Executive Officer, Inland Real Estate Income Trust, Inc. MidTowne Square Shopping Center Lakeside Crossing chburg, Virginia
Slide 9: Company Overview & Management Update
REAL ESTATE INCOME _ TRUST, INC. Mitchell Sabshon Chief Executive Officer, Inland Real Estate Income Trust, Inc. MidTowne Square Shopping Center Ark xy Lakeside Crossing burg, Virginia
Slide 10: Focus on multi-tenant, necessity-based retail
¢ Focus on multi- tenant, necessity- based retail * Why? * Improving fundamentals ¢ Net Operating Income (“NOI”) growth * Internet sales not a factor in the type of retail we’re focusing on
Slide 11: Economic opportunities
¢ Economic opportunities Retail sector performance Retailer/Tenant overview *This property has a Target "P" Fresh store, which includes a grocery component, as a shadow anchor tenant. A shadow anchor tenant is a store that may bring in significant traffic but is not considered part of that shopping
Slide 12: Forecasted NOI Growth Rates, Multi-Tenant Retail
REAL ESTATE INCOME, ‘TRUST, INC. INLAND S| Not all retail is the same. Shorter lease terms capture net operating income (“NOI”) growth. Forecasted NOI Growth Rates, Multi-Tenant Retail 4.00% 3.50% | ™ 1 3.00% | | 4] i 2.50% i 2.00% |} | *Bource: G Street Advisors 1.50% Source 1.00% | Congressional .
Slide 13: Acquisitions Update
ry INC —ate TRUST, INC. JoAnn McGuinness President and Chief Operating Office, Inland Real Estate Income Trust, Inc. MidTowne Square Shop Lakeside Crossing chburg, Virginia.
Slide 14: Lakeside Crossing Shopping Center
Lakeside Crossing Shopping Center Lynchburg, Virginia Transaction Date: May 23, 2014 Transaction Price: $19.82 million Leasable Area: 66,906 Square Feet Portfolio Sector ‘Retail Tenants: = Fresh Market (grocery store) = Panera = Petco
Slide 15: Mansfield Pointe Shopping Center
Mansfield Pointe Shopping Center Mansfield, Texas Transaction Date: April 8, 2014 Transaction Price: | $28.4 million Leasable Area: 148,529 Square Feet Portfolio Sector Retail Tenants: = PetSmart " Bed, Bath & Beyond " Sports Authority = Party City Mansfield Pointe Shopping Center
Slide 16: MidTowne Shopping Center
MidTowne Shopping Center Little Rock, Arkansas Transaction Date: May 13, 2014 Transaction Price: $41.45 million Leasable Area: 126,288 square feet Portfolio Sector Retail Tenants: = Container Store = Pottery Barn = Ulta MidTowne Square Shopping Center
Slide 17: Portfolio Overview
REAL ESTATE INCOME __ TRUST, INC. JoAnn McGuinness Chief Operating Officer and President, Inland Real Estate Income Trust, Inc. MidTowne Square Shopping Center Mansfield Pointe Mansf
Slide 18: Portfolio Overview
Portfolio Overview Total Assets: Debt to Total Assets: Total Number of Properties: Total Square Feet: Economic Occupancy: Physical Occupancy: Number of Tenants: Distributions Paid: Annualized Distribution Rate:* $134,074,452 | 28% 16 | 590,563 99.3% 98.2% 62 $1,077,319 6.0% = = Mansfield Pointe Shop
Slide 19: Portfolio Overview as of March 1, 2014 (Continued)
REAL ESTATE INCOME TRUST, INC. Portfolio Overview as of March 31, 2014 INLANDS, Continued oe a Montana North Dakota g minesou Ja South Dakota (2 Nepraske L= 2 Colorado is eousi PhD Kansas CFS Sen Oklahoma rena Arizona New Mexico Alabama 8.7% 2014 Annual Stockholders Meeting
Slide 20: Top Five Tenants
| ‘TRUST, INC. \ATal =k al, Walmart >,< Top Five Tenants Number of % of | Leases ABR* 1. Dollar General 12 16.3% | 2. LA Fitness 1 13.8% | | 3. Walmart 1 7.5% | | 4. Staples 1 4.9% | | 5. Sam’s Club 1 44% | BED BATH & BEYOND
Slide 21: Financial Highlights
David Lichterman Vice President, Chief Accounting Officer & Treasurer, Inland Real Estate Income Trust, Inc. ~ Newington Fair Center Mansfield Pointe Shopping Center
Slide 22: Financial highlights: first quarter 2014 vs 2013
As of and for the 3 months ended March 31,2014 | March 31,2013 Stockholders’ Equity 987 344,426 $2,761 483 Distributions Paid $1077 319 $84,140 Cash Flow from Operations: $421,102 §(788,803) GAAP Net Loss: § (664,159) $859,859) ‘Add: Depreciation and Amortization Related to Investment Properties: $6
Slide 23: Reconciliation to FFO and MFFO
REAL ESTATE, INCOME ‘TRUST, INC. INLAND ®) iliation to FFO and MFFO [ [____ As of and for the 3 months ended I March31,2014 March 31, 20% GAAP Net loss $ (564,159) $(859,869 ladd: Depreciation and amortization related to investment 687.16: 249.81 properties ein eS Funds from operations (FFO) | $ 123
Slide 24: Mortgages and Notes Payable
Mortgages and Notes Payable ES INCOME TRUST, INC As of and for the 3 months ended March 31, 2014| March 31,2013 Mortgages Payable $38,055,844| $29,927,167 Ratio of Total Mortgage Loans to Total Assets: 28% 82% Annual Weighted Average Interest Rate on Mortgage 2.86% 5.52% Loans: $18 000,000 $16 000,0
Slide 25: Cost segregation strategy update
+ What is it? —- Cost Segregation is an IRS-approved valuation analysis that allows owners of real estate to identify different components of an asset with shorter depreciable lives, which could result in a larger amount of depreciation expense. « Why now? — Arecent increase in federal tax rates mea
Slide 26: Cost Segregation Overview: Form 1099 Example
Cost Segregation Overview: Form 1099 Example Form 1099-DIV Example: 1a Total ordinary dividends ma $0 1b Qualified dividends so Oued ees s a Tota capa ga Ss rac Section 1202 gan $ s sao ee | | 2a Total capital gain distr. sa. | $ | | 2c Section 1202 gain | $ | ) 3 Nondividend distributions | $6,000
Slide 27: INC
INC TRUST, INC. MidTowne Square Shop Lakeside Crossing chburg, Virginia.
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