Based in Oak Brook, IL, Inland Real Estate (NYSE:IRC) specializes in creating, developing, and operating companies that provide real estate services. The company also develops real-estate investment funds to support those efforts.
The stock trades around $8.10 versus its 52-week range of $6.84-$9.65, up 20% in the past 1-year. More importantly, the stock yields 7%. Other REITs in its peer group such as Annaly Capital Management (NYSE:NLY) yields 13%, CBL & Associates Properties (NYSE:CBL) yields 3.75%, and Kimco Realty (NYSE:KIM) yields 4.3%.
As of June 30th, 2012, the major institutional holders of Inland Real Estate are Invesco (4%), Blackrock Fund Advisors (3.7%), Shinko Asset Management (3.5%), Blackrock Institutional Trust (3.5%), and Goldman Sachs Group (3%).
Fundamentals That Support A Buying Interest In Inland Real Estate:
In Q3-2012, the company reported an impressive growth in same-store Net Operating Income (NOI), which was up 5.5%, driven by a 3.6% increase in rental income, and 9.5% decline in operating expenses. Also, average rents on new leases were up 40%, and average rents on renewals were up 15%.
The company maintains a strong total occupancy level of 92.9%. Leases expiring in the next 2 years are less than 20%.
Inland maintains ample liquidity on its balance sheet with $100 million in available borrowings under its credit facility. As of September 30, 2012, total leverage was 54.4%, a slight improvement from 59.8% last year. Also, EBITDA coverage improved to 2.8 times versus 2.5 times last year.
The chart below compares share performance over the past year. "D"s mark dividends paid.
Risks related to investing in Inland Real Estate include, additional dilutive common stock issuance, tenant bankruptcies, and rising vacancies.
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