Inland Sees Profits in JV

OAK BROOK, IL-Inland Real Estate Corp. plans to profit handsomely from its first-ever multiproperty joint venture, both from management and leasing fees, as well as from income as 50% owner of the portfolio, according to the REIT’s president and CEO Robert D. Parks. In this week’s third-quarter 2004 earnings conference call, Parks noted that the JV with the New York State Teachers’ Retirement System, which was announced in early October, is expected to boost Inland’s per year FFO by 3 to 4 cents per share.

“The expected investment horizon is one to two years, to acquire the $400 million in new properties,” said Parks. “We have about $125 million in properties to bring to the venture right now, so we’re well on our way.”

Though the multiproperty JV is something new for Inland, Parks added that in some respects it’s a continuation of the REIT’s acquisition strategies. “The acquisition perimeters that we’ve agreed to run exactly in line with those properties we would buy for our own account,” he said. “When we’re investing concurrently with our partner, we’re benefiting from the same kinds of properties that we would buy for ourselves.”