Real estate funds managed by DRA Advisors LLC plan to acquire Oakbrook, Ill.–based REIT Inland Real Estate Corp. for about $2.3 billion, including assumed debt.
DRA plans to take the Inland REIT, which owns about 135 retail properties totaling 15 million square feet, private. “The board has been focused on the options available to address the long-term discount at which the company’s shares have traded versus private-market valuations and its shopping center REIT peers,” said IRC Chairman Thomas P. D’Arcy in a press release.
Inland Real Estate Corp.’s same-center net-operating income slipped by 0.6 percent for the third quarter, attributable largely to redevelopment expenses, executives said. Same-center NOI for the nine months ended Sept. 30 increased by 4.1 percent. Average base rent for new leases and renewals signed in the quarter increased by 111.5 percent and 10.1 percent, respectively, over expiring average rents in the year-ago period. Third-quarter funds from operations rose to $24.1 million, from $23.9 million a year ago. The firm’s average rental rate of $13.99 per square foot during the quarter represented an increase of 20.8 percent over the average expiring rent.
DRA Advisors has about $6.8 billion of assets under management, and represents public and corporate pension funds, endowments, foundations and financial institutions. As of Sept. 30, DRA has invested in properties valued in excess of $23.5 billion.