Numbers Game

Numbers Gameblog

Latest research and trends from around the financial advisory business, updated regularly highlighting stats, charts, infographics and all things data.

Tale of two troubled REITs

Inland's biggest REITs journey from crisis back to relevancy

Mar 5, 2014 @ 12:01 am

By Matt Sirinides

+ Zoom
(SEC filings)

Inland Real Estate Investment Corp. is no longer the force in the industry it once was, resulting in the rise and fall of two of its biggest REITs: Inland American Real Estate Trust and Retail Properties of America (RPAI), formerly Inland Western Retail Real Estate Trust.

InvestmentNews senior columnist Bruce Kelly recently documented Inland's plans for a comeback. We've followed up by collecting the key milestones in the lifespan of those two REITs in a timeline, from launch to recovery.

Launched during the heart of the run-up in real estate in 2003 and 2005, the two REITs ranked #1 (Inland American) and #2 (Inland Western) in equity raised by nontraded REITs, selling at the time for $10 per share.

But as the credit crisis sunk in, commercial property values sagged and refinancing underwater retail and multifamily portfolios became prohibitive. Inland shareholders were confronted with losses. The first shock came in 2009, when Inland was forced to cut dividends by 70%.

Share value continued to tumble, and Inland Western later conducted a poorly received IPO. Inland's recovery has not been as dramatic as with other big commercial real estate players that were better positioned to ride out the credit crisis, but despite a lingering bad taste with investors, Inland's CEO is confident the firm is poised for a turnaround.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Wirehouse training programs are in vogue

At one time, major brokerage houses ran large, expensive training programs for thousands of young brokers, and now it looks as if they are about to return to that model.

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

Edward Jones is winning the Google search war

Brokerage firm's digital marketing investment helps land it at the top of local and overall search engine results, report finds.

Voya's win in 401(k) fee suit involving Financial Engines bodes well for other record keepers

Fidelity, Aon Hewitt and Xerox HR Solutions are currently defending against similar fiduciary-breach claims.

Collective investment trusts getting more attention from 401(k) advisers

The funds are catching on due largely to lower costs and more product availability, but come with some inherent drawbacks.

Vanguard rides robo-advice wave to $65B in assets

Personal Advisor Services, four times the size of its closest competitor, combines digital and human touch.

CFPs, including brokers, may have to adhere to a stricter fiduciary duty

CFP Board revises its standards and aims to beef up fiduciary requirements of certificants.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print