InPoint Commercial Real Estate Income Cuts Monthly Distribution 75%, to Explore Strategic Alternatives
InPoint Commercial Real Estate Income Inc., a commercial mortgage nontraded real estate investment trust managed by an affiliate of Inland Real Estate Investment Corporation, is cutting its monthly distribution by roughly 75% and will hire an investment bank to explore a sale or other strategic alternatives, the company said.
The REIT will pay a gross distribution of $0.026 per share for the record date of Sept. 30, down from the $0.1042 per share it declared for its Aug. 31 record date. Payment on the new rate is scheduled for on or around Oct. 19.
In a letter to stockholders, the company said its “prior distribution level is insufficiently aligned with current portfolio earnings and cash flow generation,” and called it “prudent and necessary” to reset the payout to “the portfolio’s earnings capacity and expected cash flows.” The letter also flagged the “payment of past distributions from sources other than cash flows from operating activities” as an ongoing risk, a risk the company has disclosed previously.
Alongside the cut, InPoint said it intends to engage an investment bank “to explore strategic alternatives,” which the letter described as potentially including “strategic transactions, portfolio-level solutions, or potentially other initiatives designed to maximize value and improve liquidity for stockholders.” The latter is language it has used since at least mid-2025.
The REIT’s share repurchase plan remains suspended, the company said, listing it among current risk factors.
The cut follows a year of deteriorating fundamentals. InPoint’s total net asset value stood at $132.9 million, or $13.13 per share, as of July 31, down from the $136.6 million it reported as of March 31. The company also posted a $4.1 million net loss for the first quarter, driven by a $4.9 million credit-loss provision that doubled its reserves to $8.8 million, largely tied to two troubled Texas multifamily loans.
On the portfolio’s trajectory, management said in the letter that “as legacy investments continue to mature and capital is recycled into new originations, we believe the overall quality and positioning of the portfolio should continue to improve.” The company resumed loan originations in February after largely sitting out new lending through 2025.
InPoint Commercial Real Estate Income seeks to originate, acquire, and manage a diversified credit portfolio secured by commercial real estate properties primarily within the United States. The REIT launched its initial public offering in October 2016.
InPoint is advised by an affiliate of Inland Real Estate Investment Corporation and sub-advised by an affiliate of Sound Point Capital Management LP. Inland Securities Corporation serves as the dealer manager.
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