James Sprow | Blue Vault |
In a letter to shareholders on September 26, the board of directors of Inland Residential Properties Trust announced plans to sell the Company’s assets and distribute all net cash proceeds.
“We are pleased to inform you that the Board of Directors of Inland Residential Properties Trust, Inc. (“Inland Residential”) has voted to approve a liquidity event for the Company. After careful consideration of various strategic alternatives, the Board has determined that, at this time, the sale of the Company’s assets and distribution of all net cash proceeds through a plan of liquidation is the best strategy to maximize stockholder value within a reasonable period of time. Detailed information regarding the liquidity event and the plan will be sent to each stockholder as soon as it is available.”
“In connection with pursuing this liquidity event, the Board has voted to terminate the Company’s Distribution Reinvestment Plan and Share Repurchase Program. Because the Company intends to distribute all net cash proceeds from the liquidity event, the need for such plans no longer exists. Please note the following:
• Distributions for the months of September and October 2018, payable in October and November 2018, respectively, will be paid by check. For those of you who previously elected to receive your distributions through ACH, payment will be made via ACH.
• For IRAs and other qualified accounts, distributions will be paid to the trust company of record.
• Because we are pursuing a liquidity event, we do not expect that the Board will declare any further regular monthly distributions other than as described above. If stockholders approve the proposed liquidity event, the Board will declare final distributions once the transactions are completed. All final distributions will be paid via check, ACH or to an IRA account, as applicable
• Due to the proposed liquidity event, no further share repurchase requests will be processed.”
As of June 30, 2018, the REIT had $102.8 million in total assets. The Company owned real estate consisting of three multi-family communities totaling 623 units. The properties consist of 677,142 square feet of residential and 10,609 square feet of retail gross leasable area. During the six months ended June 30, 2018, the properties’ weighted average daily occupancy for residential was 94.2% and at June 30, 2018, 605 units, or 97.1% of the total residential units were leased. At June 30, 2018, 100% of the retail units were occupied.
The REIT closed its public offering on January 3, 2018, having raised just $51.5 million. It has paid distributions at the annualized rate of 5.00%, 4.20% and 5.00% to shareholders of Class A, T and T-3 shares, respectively, based upon the offering prices, net of fees. The most recent estimated NAVs per share were $23.15 for Class A shares, $24.32 for Class T shares, and $23.55 for Class T-3 shares, all as of February 2, 2018.
Sources: SEC, Blue Vault
