Inland American Real Estate Trust, Inc. (Inland American) is the largest non-traded real estate investment trust (REIT) in the United States with over $9 billion raised. The firm is one of several REITs that have been sponsored by affiliates of Oak Brook, Illinois-based Inland Real Estate Group of Companies, Inc. As of March 31, 2014, Inland American had 183,000, predominantly "mom-and-pop investors." Formed in 2004, Inland American owns commercial real estate in the following asset classes: lodging, multi-tenant retail, and student housing.
The firm is a non-traded REIT, which is a company whose shares are not listed on an exchange. The shares are therefore relatively illiquid. Shares were sold through broker-dealers. While original investors bought in at $10/share, Inland American estimated its shares had a value of $4.00.
In March 2014, the firm announced that functions performed by its external, related-party managers would now be performed by the REIT itself. The firm has charged its investors over $1.4 billion in fees and expenses to pay for services provided by these external, related-party managers. It has also been observed that Inland American "bought a lot of property at the height of the market."
Video Inland American Real Estate Investment Trust
Liquidity and spin-off
Ten years after Inland American's formation, original investors still have only limited options for liquidity. To date, Inland American has not announced any special distributions of proceeds from nearly $2.5 billion in assets already sold, nor does it intend to distribute proceeds from the announced sale of its $1.1 billion select-service hotel portfolio.
In August 2014, Inland American announced that it would spin-off 46 of its upscale hotels into a REIT named Xenia Hotels & Resorts (proposed NYSE ticker: XHR). On February 4, 2015 Xenia began trading on the NYSE under the ticker XHR. In this transaction Inland American shareholders received a proportional number of shares of XHR. The listing event was the first for the Inland Group since the "disastrous Wall Street debut" of its last REIT in 2012.
Maps Inland American Real Estate Investment Trust
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External links
- http://www.inlandamerican.com
Source of article : Wikipedia
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