Executive Summary

Inland Real Estate Income Trust’s Q4 2022 was defined by higher interest costs and deeper net loss quarter-over-quarter, while portfolio occupancy remained stable and the Board set NAV at $19.86 per share .
Q4 total income was $34.97M, down slightly from Q3 ($35.98M), and net loss widened to $(5.83)M, driven by higher interest expense as rates rose and debt increased post the May portfolio acquisition .
The Board approved $19.86 DRP issue price and $15.89 SRP repurchase price (80% of NAV), underscoring conservative liquidity positioning amidst big-box tenant risks (Bed Bath & Beyond closures; Party City bankruptcy) .
No Wall Street consensus estimates or earnings call transcript were available; as a non-listed REIT, results should be assessed versus internal KPIs (occupancy, ABR, NOI) and portfolio strategy execution .

What Went Well and What Went Wrong

Portfolio occupancy remained strong and stable: “financial occupancy as of December 31, 2022, of 93.5%” ; weighted average economic occupancy at year-end was 93.5% .
Grocery focus strengthened: 88% of ABR was grocery or grocery shadow-anchored at year-end; top tenants include Kroger, Whole Foods, Albertsons, Sprouts .
Board’s NAV process and outcome: NAV determined at $19.86/share following CBRE Capital Advisors’ valuation range of $19.40–$21.82; Board chose a value “below the mid-point” reflecting higher rates and big-box risks .

Interest expense surged in Q4, elevating net loss: full-year interest expense was $33.07M; Q4 implied ~$11.68M vs $8.72M in Q3 (rate increases and higher borrowings) .
Same-store NOI pressure: “same store total property income decreased…due to a lower recovery percentage and an increase in property operating expenses” in 2022 .
Tenant headwinds: expected closures by Bed Bath & Beyond and Party City’s bankruptcy increased anchor risk and co-tenancy concerns (Board explicitly cited these in NAV decision rationale) .

Metric	Q4 2021	Q2 2022	Q3 2022	Q4 2022
Total Income ($USD Millions)	$28.89	$32.15	$35.98	$34.97
Net Loss ($USD Millions)	$(0.17)	$(2.63)	$(2.90)	$(5.83)
Net Loss Margin (%)	(0.6%)	(8.2%)	(8.1%)	(16.7%)
Diluted EPS ($)	N/A	$(0.07)	$(0.08)	N/A

Notes: Q4 2022 and Q4 2021 values are calculated as FY minus 9M figures from SEC filings . EPS for Q4 is not disclosed.

KPI	Q2 2022	Q3 2022	Q4 2022
Economic Occupancy (%)	93.0%	93.9%	93.5%
Properties (count)	52	52	52
ABR per Sq Ft (excl. ground leases)	N/A	N/A	$19.10
Total Debt ($USD Millions)	$862.64	$856.77	$856.7
Weighted Avg Interest Rate (%)	3.56%	4.09%	4.40%
Variable Rate Debt (share of total)	12.5%	17.8%	17.7%
Cash ($USD Millions)	$2.60	$9.22	$4.9

Metric	Period	Previous Guidance	Current Guidance	Change
Estimated Per Share NAV	As of 12/31/2022	$20.20 (as of 12/31/2021)	$19.86	Lower
DRP Issue Price	Next Distribution	$20.20	$19.86	Lower (aligned to NAV)
SRP Repurchase Price	Ongoing (Ordinary & Exceptional)	$16.16 (80% of $20.20)	$15.89 (80% of $19.86)	Lower
Distribution per Share	Quarterly	$0.1356	$0.1356 (ongoing)	Maintained

No revenue, margin, or capex guidance provided; Board expects to publish updated NAV at least annually .

No Q4 2022 earnings call transcript was found. Themes tracked across filings:

Topic	Previous Mentions (Q2 & Q3 2022)	Current Period (Q4 2022 / FY)	Trend
Inflation & Interest Rates	Inflation pressures may reduce consumer spend; rising rates affect borrowing and refinancing	Higher interest costs increased interest expense; FY weighted avg rate 4.40%	Deteriorating cost of capital
COVID / Tenant Health	Deferred rent sharply down; monitoring variant risks; collections improved	Deferred rent < $0.1M; risk persists but improved operationally	Improving but still a watch item
Strategic Plan & Liquidity Event	Focus on grocery-anchored; opportunistic M&A; not actively marketing assets	Same; acquired eight IRPF properties in May; still not actively marketing; timing of liquidity event uncertain	Steady focus; cautious on timing
Big-Box Anchor Risk	Co-tenancy risks; Bed Bath & Beyond closures impact	Board explicitly cites BBBY closure risk and Party City bankruptcy in NAV decision	Elevated anchor tenant risk
E-commerce Impact	Ongoing e-commerce pressure on brick-and-mortar	Continued emphasis on e-commerce risks in FY risk factors	Persistent structural headwind
Balance Sheet & Hedging	Variable debt hedged with swaps; LIBOR→SOFR transition	Variable debt 17.7%; swaps cover ~69%; migration to SOFR; higher rates sensitivity disclosed	Risk managed but rate exposure higher

“Occupancy at our properties was stable from 2021 to 2022 with a financial occupancy as of December 31, 2022, of 93.5%.”
“The Board selected an estimated per share NAV of $19.86 that is below the mid-point of the range…primarily attributable to the effects of higher interest rates,” and big-box headwinds including expected Bed Bath & Beyond closures and Party City’s bankruptcy .
“The Estimated Per Share NAV…will likely change over time, and may not represent the amount a stockholder would receive now or in the future” (annual updates expected) .
“Same store total property income decreased due to a lower recovery percentage and an increase in property operating expenses” in 2022 .

No Q4 earnings call transcript was available for INRE; no Q&A disclosures found in filings [ListDocuments earnings-call-transcript returned none].

Wall Street consensus estimates via S&P Global were unavailable for this non-listed REIT during Q4 2022. Result comparisons to consensus cannot be provided.
Default approach: evaluate sequential and YoY trends, occupancy, ABR, NOI, and balance sheet leverage from filings .

Q4 2022 net loss widened as interest expense rose sharply with higher rates and incremental borrowing; monitor rate trajectory and hedging effectiveness .
Occupancy remains strong (~93.5%) and grocery-anchored concentration (61% ABR) supports cashflow stability amid macro pressures .
Board’s NAV reset to $19.86 reflects conservative stance on big-box risks and higher discount/cap rates; DRP/SRP prices adjusted accordingly .
Anchor tenant risk elevated (BBBY closures; Party City bankruptcy), potentially affecting co-tenancy clauses and recovery income in select centers; proactive leasing/repurposing is key .
Liquidity event timing remains uncertain; strategic focus on grocery assets continues, with opportunistic acquisitions balanced by leverage constraints and covenant limits .
Rate sensitivity: ~17.7% of debt remains variable; a +100bps shock implies ~$1.5M annualized hit to earnings/cash flows (disclosed sensitivity) .
With no sell-side coverage or call transcripts, emphasis should remain on internal KPIs (occupancy, ABR growth, leasing spreads, NOI) and tenant credit monitoring .

Q4 values are calculated as FY 2022 less 9M 2022 from SEC filings (e.g., total income and net loss) ; Q4 2021 similarly from FY 2021 less 9M 2021 .
Interest rate and debt mix at YE are from the 10-K; quarterly figures from 10-Qs .
NAV, DRP, and SRP pricing from March 6, 2023 Form 8-K and Exhibit 99.1 .