InvenTrust Properties, Inc. is a non-publicly traded real estate investment trust that invests in shopping malls. The company owns and manages 66 properties comprising 11 million square feet. The shares do not have market liquidity. Shares were sold through broker-dealers. The company has been criticized for not liquidating with 12 years of its foundation, as is typical for non-traded REITs. The company publishes an estimated value of its shares every May on its website; however, it did not publish a value in May 2020 due to the COVID-19 pandemic. The most recent published value was $3.14 per share as of May 2019. In March 2015, an article in The Wall Street Journal referred to the company as a "Zombie REIT" due to significant investor losses and dividend cuts. The company has also been criticized because it “bought a lot of property at the height of the market" and for "massive related party fees charged to investors".
History
The company was launched in 2005. Brokers sold shares to investors for $10 each, raising $9 billion. In 2012, the U.S. Securities and Exchange Commission investigated the company's administration and fees, concluding the investigation in 2015 without recommending charges. The week the investigation was closed, the company sued its former management team. In 2012, Inland Western completed an initial public offering but debuted at only 60% of its original price to investors. As of February 2014, the company was the largest non-publicly traded real estate investment trust in the United States. In March 2014, the firm announced that functions performed by its external, related-party managers would now be performed by the REIT itself. In September 2014, the company sold its select-service hotel portfolio to NorthStar Realty Finance for $1.1 billion. The proceeds of $480 million were invested in shopping malls and student housing. In February 2015, the company completed the corporate spin-off of Xenia Hotels & Resorts to its shareholders. Following the spin-off, the estimated value of InvenTrust Properties was $4 a share. In April 2015, the company changed its name to InvenTrust Properties. In April 2016, the company completed the corporate spin-off of Highlands REIT. In June 2016, the company sold its student housing division to a group including the CPP Investment Board for $1.4 billion.
