More Inland Western Retail REIT
I just had to check. The REIT had a debt ratio of 63% at December 31, 2007 based on property cost less reserves. Unless some debt was paid down this year this ratio is going to be higher with sofening commercial property values. This debt ratio is higher than many of the other non-traded REITs. From year-end December 2007 it had Funds From Operations (FFO) of $.64 and paid a dividend of $.63. I did not check to see what FFO and distributions have been in 2008. Investors' request for redemptions and Inland's response makes sense.
Inland went full-cycle on its two public non-traded REITs that preceded Inland Western. The first, Inland Real Estate Corporation (IRC), was listed on the NYSE and the other was sold to Developers Diversified Realty (DDR). Both transactions allowed investors in the two REITs to sell their shares at prices higher than the orginal offer price. It is my opinon that an IPO for Inland Western looks remote at best given its debt ratio and the status of the market. Things may change in the future, but today, investors in Inland Western should have a long time horizon.
7 comments:
Any news on the Inland Western REIT lawsuit and how that might affect a potential IPO?
That's a good question. I am not aware of the lawsuit, but it can't be helpful.
The Complaint is available at: http://chimicles.com/assets/file/InlandWesternAmendedComplaint%2012jun2008.pdf
Does anyone have an opinion on how a lawsuit might affect Inland American REIT?
To me, it is hard to say what the impact a lawsuit on Western Retail will have on American. Wells' Piedmont has had numerous lawsuits, but as far as I know they have had little impact, except for disclosure and maybe tougher b/d scrutiny. Unfortunately, investor cash, not Inland cash, will likely pay for the lawsuits.
Last comment was supposed to say that the Piedmont lawsuits have had little impact on Wells REIT II.
Inland Western Retail REIT has $1.1B due coming this year. Anyone know if this is too much in present credit market and is there a possiblity that the REIT may file for bankruptcy?
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