Executive Summary

Inland Real Estate Income Trust (INRE) increased its estimated NAV per share to $20.20 as of December 31, 2021, up ~11.7% year over year, driven by lower cap rates, improved market rents, and lower debt fair value; the Board set DRP purchases at $20.20 and SRP repurchases at $16.16 per share .
Portfolio occupancy remained high into year-end: 93.4% physical and 93.9% economic; ABR per square foot averaged $17.79 excluding ground leases, underscoring stable property-level performance .
Distributions were reinstated in 2021 at $0.1356 per quarter for Q2–Q4; the SRP was reinstated (Aug 12) and processed repurchases, though funding remains tied to DRP proceeds .
No Q4 earnings call transcript or traditional press release was found; management communication centered on the NAV update and strategic plan, including flexibility from charter changes and ongoing evaluation of a future listing/liquidity event .

What Went Well and What Went Wrong

What Went Well

NAV increased ~11.7% YoY to $20.20 per share, reflecting sector recovery, lower terminal cap rates/discount rates, and higher market rents; Board selected a value near (but below) the CBRE midpoint .
High occupancy persisted across 2020–2021; “our well-located centers were 93.9 percent occupied” and management highlighted strong demand for small shop spaces at attractive rents .
Distributions were reinstated ($0.1356 per share quarterly), DRP restarted (July 22, 2021), and SRP reinstated (Aug 12, 2021), improving investor cash flow and limited liquidity optionality .

Selected quotes:

“The retail shopping center sector experienced a record pace of recovery in 2021…” .
“Our well-located centers were 93.9 percent occupied… We are pleased to note that our high occupancy continued throughout 2020 and 2021.” .
“We have measured optimism about the future of retail real estate and believe the Inland Income Trust portfolio is well-positioned.” .

What Went Wrong

Exposure to non-grocery big box remains material (36% of ABR), a segment management believes is more negatively impacted by shifting consumer preferences and internet competition .
Two mortgage loans required covenant-driven principal paydowns (~$13.8M on Sep 30, 2021) to meet minimum Assumed DSCR, highlighting pockets of financing pressure .
Liquidity remains constrained: the SRP funding limit ties repurchases to DRP proceeds, and there is still no established public market; distributions are at a 3% annualized rate (based on prior NAV), and a listing timeline remains uncertain .

Financial Results

Quarterly performance (trend analysis across prior two quarters)

Metric	Q2 2020	Q3 2020	Q2 2021	Q3 2021
Rental income ($USD thousands)	$26,176	$27,643	$29,372	$29,599
Total income ($USD thousands)	$26,229	$27,672	$29,434	$29,659
Net loss ($USD thousands)	$(4,313)	$(3,191)	$(446)	$(559)
Net loss per share ($)	$(0.12)	$(0.09)	$(0.01)	$(0.02)
Interest expense ($USD thousands)	$6,279	$6,283	$5,801	$5,876
Property operating expense ($USD thousands)	$4,037	$4,460	$5,058	$5,040
Real estate tax expense ($USD thousands)	$3,784	$3,557	$3,678	$3,784

Observations: Sequential and YoY improvements in total income and lower interest expense reflect better collections and lower average rates; net losses narrowed materially versus 2020, consistent with management commentary on recovery .

Annual performance (context for Q4 FY close)

Metric	FY 2020	FY 2021
Rental income ($USD thousands)	$115,527	$118,957
Total income ($USD thousands)	$115,689	$119,140
Net loss ($USD thousands)	$(10,388)	$(2,503)
Net loss per share ($)	$(0.29)	$(0.07)
Interest expense ($USD thousands)	$25,349	$23,240
Property operating expense ($USD thousands)	$19,416	$21,649
Real estate tax expense ($USD thousands)	$14,505	$14,388

KPIs (Q4 2021 and program actions)

KPI	Value
Estimated NAV per share (as of Dec 31, 2021)	$20.20
Total estimated NAV ($USD millions)	~$728.0
Occupancy (physical / economic)	93.4% / 93.9% (Dec 31, 2021)
Properties / Square footage	44 / 6,481,262 sq ft (Dec 31, 2021)
ABR per square foot (excl. ground leases)	$17.79 (Dec 31, 2021)
ABR per square foot (incl. ground leases)	$15.04 (Dec 31, 2021)
DRP purchase price	$20.20 per share
SRP repurchase price	$16.16 per share

Segment breakdown: INRE reports a single retail real estate segment .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
DRP share issuance price	Ongoing until next NAV update	$18.08 NAV reference (Mar 5, 2021)	$20.20 NAV reference (effective with Q1 2022 distribution in April)	Raised
SRP repurchase price	Beginning with repurchases after Mar 5, 2022	80% of “share price” (previously based on most recent NAV)	$16.16 per share (80% of $20.20 “share price”)	Raised
Quarterly cash distributions	Q4 2021 (paid in arrears)	Suspended since Q2 2020	$0.135600 per share (Q2–Q4 2021)	Reinstated
SRP status/funding	Ongoing	Suspended (effective Jun 26, 2020)	Reinstated (Aug 12, 2021), funding tied to DRP proceeds	Reinstated/Updated

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2021)	Current Period (Q4 2021)	Trend
Retail recovery / occupancy	Deferred rent down from $4.457M (Dec 2020) to $1.650M (Jun 2021); collections improved; no known tenant bankruptcies; economic occupancy ~93.0% (Jun) → 94.6% (Sep)	Record pace of recovery in 2021; physical/economic occupancy 93.4%/93.9% at year-end	Improving
Non-grocery big box exposure	Co-tenancy risks noted; tenant churn and covenant pressures; principal paydowns executed	36% of ABR from non-grocery big box, still viewed as structurally challenged	Structural headwind
Liquidity & investor programs (DRP/SRP)	DRP & SRP reinstated (Jul/Aug 2021); August SRP processed repurchases	DRP price set at $20.20; SRP repurchase at $16.16; funding remains linked to DRP	Operationalized
Strategic plan / listing optionality	Strategy focused on grocery-anchored, asset rotation, and redevelopment; liquidity event evaluated but timing uncertain	Charter changes approved (Dec 2, 2021) to enhance flexibility; potential future listing considered	Flexibility enhanced
Macro / e-commerce	Pandemic impacts easing; bad debt recoveries recognized	Continued e-commerce competition and inflation risks disclosed in FY2021 10-K	Mixed (risk persists)

Management Commentary

“On average, capitalization rates for U.S. retail shopping center transactions in 2021 were lower than…2020, resulting in higher valuations… It remains to be seen whether these factors are a result of pent-up consumer demand or a sustainable trend.” .
“We are experiencing significant demand for small shop spaces at attractive rents… big box fundamentals remain challenged by shifting consumer preferences and internet competition.” .
“The Company… believes charter changes will provide… greater flexibility… including a potential listing on a national securities exchange.” .

Q&A Highlights

No Q4 2021 earnings call transcript or Q&A materials were found for INRE; investor communications were delivered via the Form 8‑K NAV announcement and FAQs (Exhibit 99.1) .

Estimates Context

Wall Street consensus estimates (EPS, revenue, target price) are not available for INRE; there was no analyst coverage and S&P Global retrieval was unsuccessful. Note: S&P Global consensus unavailable for this issuer.

Key Takeaways for Investors

NAV per share rose to $20.20 (+~11.7% YoY), backed by lower cap rates and improved market rents; the Board chose a value slightly below the CBRE midpoint to reflect risk and sector dynamics .
Core operations stabilized with high year-end occupancy (93.4%/93.9%) and improved collections; annual net loss narrowed materially in 2021 versus 2020 .
Distributions resumed ($0.1356 per quarter), DRP priced at NAV ($20.20), and SRP at 80% of NAV ($16.16), enhancing investor cash flow and providing limited liquidity .
Concentration in non-grocery big box (36% ABR) remains a structural exposure; expect continued leasing emphasis on small shop and necessity tenants .
Financing discipline remains important: covenant-driven paydowns underscore the need to monitor property-specific debt metrics amid a rising-rate backdrop .
A listing/liquidity event is still under evaluation with greater charter flexibility; timing remains contingent on market conditions and portfolio scaling/redevelopment progress .
Absent quarterly guidance or analyst estimates, investor focus should be on occupancy, leasing spreads, DRP/SRP activity, and debt maturities/covenants in 2022 .

Inland Real Estate Income Trust, Inc. (INRE)·Q4 2021 Earnings Summary