What is Inland Real Estate Financial Strength?
Inland Real Estate has the Financial Strength Rank of 0.
Warning Sign:
Inland Real Estate Corp displays poor financial strength. Usually this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
Inland Real Estate's Interest Coverage for the quarter that ended in Dec. 2015 was 0.47.
Inland Real Estate's debt to revenue ratio for the quarter that ended in Dec. 2015 was 4.20.
As of today, Inland Real Estate's Altman Z-Score is 0.43.
Competitive Comparison of Inland Real Estate's Financial Strength
For the REIT - Retail subindustry, Inland Real Estate's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Inland Real Estate's Financial Strength Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Inland Real Estate's Financial Strength distribution charts can be found below:
* The bar in red indicates where Inland Real Estate's Financial Strength falls into.
Inland Real Estate Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Inland Real Estate's Interest Expense for the
months ended in Dec. 2015 was $-7.41 Mil. Its Operating Income for the
months ended in Dec. 2015 was $3.51 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2015 was $849.09 Mil.
Inland Real Estate's Interest Coverage for the quarter that ended in Dec. 2015 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies interest coverage is at least 5. Inland Real Estate Corps earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
2. Debt to revenue ratio. The lower, the better.
Inland Real Estate's Debt to Revenue Ratio for the quarter that ended in Dec. 2015 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Inland Real Estate has a Z-score of 0.43, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.43 is in distress zone. This implies bankrupcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Inland Real Estate (Inland Real Estate) Business Description
Traded in Other Exchanges
N/A
Address
Inland Real Estate Corp was formed on May 12, 1994. It is a publicly held real estate investment trust ("REIT") that owns, operates and develops open-air neighborhood, community and power shopping centers and single-tenant retail properties located in Midwest markets. Approximately fifty-nine percent of its total retail portfolio gross leasable area is located in the Chicago Metropolitan Statistical Area, with its second largest market concentration being approximately seventeen percent in the Minneapolis-St. Paul MSA. Tenants at the Company's retail properties primarily provide "everyday" goods and services to consumers. The primary drivers of its internal income growth are rental rate increases over expiring rates on new and renewal leases and cost savings from operational efficiencies. The Company's business is competitive. It competes with other property owners on the basis of location, rental rates, operating expenses, visibility, quality of the property, volume of traffic, strength and name recognition of other tenants at each location and other factors. These competitive factors affect the level of occupancy and rental rates that it is able to achieve at its investment properties. In addition, the Company's tenants compete against other forms of retailing such as catalog companies and e-commerce websites that offer similar retail products. The Company competes with other real estate companies, and at its current investment properties, it competes with other owners of similar properties for tenants. Inland Real Estate's properties are also subject to various federal, state and local regulatory requirements, such as state and local fire and life safety requirements.
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