KeyBanc Capital Markets Initiates Coverage Of Inland Real Estate Corporation (NYSE: IRC)

KeyBanc Capital Markets analysts Todd M. Thomas and Jordan Sadler initiated coverage of Inland Real Estate Corporation (NYSE: IRC) with a Hold rating.

The analysts wrote that the shares of Inland Real Estate Corporation are fairly valued on an absolute and a relative basis within the shopping center sector.

They also found the fact that the stock was currently trading at a 29% discount to the sector and had a 5.9% yield to be attractive but the maturation of 70% of the company's debt over the next two years could cause a considerable amount of dilution.

The KeyBanc Capital Markets analysts wrote, "Attractive cash dividend yield that is paid monthly. Shares of IRC yield 5.9%, a 200 basis point premium over the shopping center sector and REITs, respectively. The Company has maintained a monthly distribution schedule, which is appealing to many investors, particularly retail investors with an income preference. As such, the Company's shareholder base is somewhat less institutionally-owned than many of the Company's peers' and within the REITs overall. In 2009, the Company distributed $54 million ($0.69/share) in dividends to stockholders vs. taxable income of $53 million. In 2008, the Company distributed $65 million ($0.98/share) in dividends to stockholders vs. taxable income of $58 million."