During a fourth-quarter 2006 conference call with Wall Street analysts, Robert Parks, president and CEO, said the company anticipates pursuing approximately $100 million in IREX's 1031 program this year. "We expect to do between $20 million and $25 million a quarter," he said, adding, "annually, we're very comfortable and confident with this (projection). They (IREX) believe there's much greater demand for that kind of product.
"We can source properties, and they can sell them," Parks said. The first, Honey Creek Commons in Terre Haute, IN, "went into syndication in December and was fully subscribed –sold out –within one and a half weeks." He described the 1031 Exchange program as a "huge national market," with about 100 competitors, which is "pretty much unlimited."
Inland acquired the 101,000-sf Ravinia Plaza Shopping Center in Orland Park, IL, in joint venture with NYSTRS for $18.1 million during fourth quarter. With this acquisition, the Inland/NYSTRS joint venture has acquired about $315 million of its $400 million acquisition goal over its first two years. Parks acknowledged that this occurred "despite a difficult acquisition environment for quality retail properties."
Meanwhile, Inland's fund from operations decreased 2.3% for the quarter, down to $21.6 million, compared with $22.1 million for the final quarter of the prior year. Net income for the final quarter of 2006 was $8.4 million, down 29.4% in comparison with the same quarter a year ago.
Total revenues for the fourth quarter rose 3.9% to $44.7 million, up from $43 million for the three months ended Dec. 31, 2005. However, for full-year 2006, total revenues declined 1.5%, or $2.8 million to $178.4 million. The locally based company attributed the decline to "minimal lease termination fee income this year (2006) compared to the large lease termination fee earned in the first quarter of 2005.
"In 2006, we continued to establish a solid foundation for our company's future growth," Parks said. "We accomplished this through strategic acquisitions that included our first lifestyle center, portfolio redevelopment activities and creative joint-venture activities. The benefits of these initiatives will be reflected in both 2007 and beyond," he concluded.
Inland Real Estate Corp. is a REIT that currently owns interests in 146 neighborhood, community and single-tenant retail properties located primarily in the Midwestern US. They aggregate approximately 14 million sf of leasable space.
Inland's common stock, which trades under the call symbol IRC, ended trading on the NYSE on Tuesday, Feb. 20 at $20.74 a share. This compares with a 52-week high of $21.14 a share, reached on Feb. 7 this year, and a 52-week low of $12.70 a share in May 2006.
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