Inland Real Estate Reports 2024 Distributions

All 2024 distributions were classified as nondividend returns of capital, with no portion considered taxable income.

January 27, 2025

Nondividend Distributions Provide Tax Implications for Shareholders

Inland Real Estate Income Trust, Inc. (Inland REIT) announced that for the fiscal year ending December 31, 2024, it distributed approximately $19.6 million to shareholders. According to the company’s recent disclosure, the entirety of these distributions was categorized as nondividend returns of capital for tax purposes. This classification implies that shareholders may not owe immediate taxes on these distributions but instead adjust their cost basis in the investment.

The company's quarterly distributions, issued in equal amounts of $0.1356 per share, were paid in January, April, July, and October of 2024. Since the distributions were not treated as ordinary income or capital gains, investors will need to consult tax professionals to understand their specific tax implications, particularly in cases where the return of capital exceeds the initial investment basis.

Company Strategy and Future Outlook Remain Uncertain

Inland REIT specializes in acquiring and managing income-generating retail properties. However, the company did not provide guidance on future distributions or changes to its portfolio strategy. The latest announcement offers investors clarity on the nature of their 2024 returns but leaves questions about potential market shifts or strategic adjustments in 2025.

The report also reconfirmed the company’s registration under the Securities Exchange Act of 1934. Inland REIT remains privately held with no publicly traded stock. It operates out of Oak Brook, Illinois, and is led by CFO Catherine L. Lynch, who authorized the latest filing on January 24, 2025.