INRE — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-06

• As part of the review of strategic alternatives, our board decided not to pursue the sale of the Company at the present time. There is no assurance that we will pursue an alternative liquidity event in the near future, if at all. We have limited sources of capital and thus a limited ability to incre…

• Volatility in the financial markets and challenging economic conditions including market disruptions and uncertainties resulting from any future global pandemic or epidemic, ongoing hostilities in various parts of the world and other geopolitical events affecting the financing markets generally such…

• We have incurred net losses on a GAAP basis for the three months ended March 31, 2026 and 2025, and for the year ended December 31, 2025;

• Our Business Manager and its affiliates face conflicts of interest caused by, among other things, their compensation arrangements with us, the allocation of personnel and resources between its affiliates, our Business Manager and our Real Estate Manager and overlapping leadership roles certain of ou…

• We do not have arm’s-length agreements with our Business Manager, our Real Estate Manager or any other affiliates of our Sponsor and we pay fees, which may be significant, to our Business Manager, Real Estate Manager and other affiliates of our Sponsor;

Text removed vs the prior filing · source: 10-Q · 2025-11-06

• Our board is reviewing strategic alternatives but has decided against selling the Company at this time. There is no assurance that the review of other alternatives will lead to a liquidity event for stockholders;

• During the pendency of our board’s review of strategic alternatives, we do not expect to acquire new properties or engage in redevelopment activities which may negatively impact our ability to grow our assets and income;

• As of November 6, 2025, we have three mortgage loans with an aggregate principal balance of approximately $121.3 million maturing in the next twelve months. We expect to repay these mortgage loans by drawing on our Credit Facility, which we are in the process of amending. The interest rate for draws…

• Market disruptions and uncertainties resulting from any future global pandemic or epidemic, ongoing hostilities in various parts of the world, NATO and the international community’s response thereto and other geopolitical events affecting the financing markets generally, inflation, tariffs, changes …

• We have incurred net losses on a GAAP basis for the three and nine months ended September 30, 2025 and 2024, and for the year ended December 31, 2024;

Text added vs the prior filing · source: 10-Q · 2026-05-06

• As of March 31, 2026, we had $315 million of debt or 38% of our total debt, excluding unamortized debt issuance costs, bearing interest at variable rates with a weighted average interest rate equal to 5.56% per annum. We had additional variable rate debt subject to swap agreements of $525 million, o…

• If interest rates on all debt which bears interest at variable rates as of March 31, 2026 increased by 1% (100 basis points), the increase in interest expense would decrease earnings and cash flows by $3.2 million annually. If interest rates on all debt which bears interest at variable rates as of M…

• Regarding variable rate financing, our management assesses our interest rate cash flow risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. We utilize risk management control sy…

• We use derivative financial instruments to hedge exposures to changes in interest rates on loans secured by our assets. Derivative instruments may include interest rate swap contracts, interest rate cap or floor contracts, futures or forward contracts, options or repurchase agreements. Our actual he…

• For information related to derivatives, reference is made to Note 7–“Debt and Derivative Instruments” which is included in our March 31, 2026 Notes to Consolidated Financial Statements in Item 1.

Text removed vs the prior filing · source: 10-Q · 2025-11-06

• As of September 30, 2025, our fixed-rate debt consisted of secured mortgage financings with a carrying value of $111.4 million and a fair value of $110.7 million. Changes in interest rates do not affect interest expense incurred on our fixed-rate debt until their maturity or earlier repayment, but i…

• If the interest rates upon refinancing of the maturing mortgage loans were to increase by 1% (100 basis points), the increase in interest expense would decrease earnings and cash flows by $1.4 million annually.

• As of September 30, 2025, we had $168 million of debt or 20% of our total debt, excluding unamortized debt issuance costs, bearing interest at variable rates with a weighted average interest rate equal to 6.13% per annum. We had additional variable rate debt subject to swap agreements of $551 millio…

• If interest rates on all debt which bears interest at variable rates as of September 30, 2025 increased by 1% (100 basis points), the increase in interest expense would decrease earnings and cash flows by $1.7 million annually. If interest rates on all debt which bears interest at variable rates as …

• With regard to variable rate financing, our management assesses our interest rate cash flow risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. We utilize risk management contr…