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Inland Real Estate (Inland Real Estate) ROE % : 1.13% (As of Dec. 2015)


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What is Inland Real Estate ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Inland Real Estate's annualized net income for the quarter that ended in Dec. 2015 was $6.6 Mil. Inland Real Estate's average Total Stockholders Equity over the quarter that ended in Dec. 2015 was $588.1 Mil. Therefore, Inland Real Estate's annualized ROE % for the quarter that ended in Dec. 2015 was 1.13%.

The historical rank and industry rank for Inland Real Estate's ROE % or its related term are showing as below:

IRC's ROE % is not ranked *
in the REITs industry.
Industry Median: 4.195
* Ranked among companies with meaningful ROE % only.

Inland Real Estate ROE % Historical Data

The historical data trend for Inland Real Estate's ROE % can be seen below:

* 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.

* Premium members only.

Inland Real Estate ROE % Chart

Inland Real Estate Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.87 6.97 23.15 6.65 4.24

Inland Real Estate Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.49 1.91 5.72 8.20 1.13

Competitive Comparison of Inland Real Estate's ROE %

For the REIT - Retail subindustry, Inland Real Estate's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Inland Real Estate's ROE % distribution charts can be found below:

* The bar in red indicates where Inland Real Estate's ROE % falls into.



Inland Real Estate ROE % Calculation

Inland Real Estate's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=25.531/( (622.698+580.63)/ 2 )
=25.531/601.664
=4.24 %

Inland Real Estate's annualized ROE % for the quarter that ended in Dec. 2015 is calculated as

ROE %=Net Income (Q: Dec. 2015 )/( (Total Stockholders Equity (Q: Sep. 2015 )+Total Stockholders Equity (Q: Dec. 2015 ))/ count )
=6.624/( (595.668+580.63)/ 2 )
=6.624/588.149
=1.13 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2015) net income data. ROE % is displayed in the 30-year financial page.


Inland Real Estate  (NYSE:IRC) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2015 )
=Net Income/Total Stockholders Equity
=6.624/588.149
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(6.624 / 202.212)*(202.212 / 1535.8005)*(1535.8005 / 588.149)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.28 %*0.1317*2.6112
=ROA %*Equity Multiplier
=0.43 %*2.6112
=1.13 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2015 )
=Net Income/Total Stockholders Equity
=6.624/588.149
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (6.624 / -0.632) * (-0.632 / 14.032) * (14.032 / 202.212) * (202.212 / 1535.8005) * (1535.8005 / 588.149)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -10.481 * -0.045 * 6.94 % * 0.1317 * 2.6112
=1.13 %

Note: The net income data used here is four times the quarterly (Dec. 2015) net income data. The Revenue data used here is four times the quarterly (Dec. 2015) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Inland Real Estate ROE % Related Terms

Thank you for viewing the detailed overview of Inland Real Estate's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


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.
Executives
Brett A Brown officer: Chief Financial Officer C/O INLAND REAL ESTATE CORPORATION, 2901 BUTTERFIELD ROAD, OAK BROOK IL 60523
Meredith W. Mendes director 2901 BUTTERFIELD ROAD, OAK BROOK IL 60523
Beth Sprecher Brooks officer: Sr VP & General Counsel C/O INLAND REAL ESTATE CORPORATION, 2901 BUTTERFIELD RD, OAK BROOK IL 60523
D Arcy Thomas P director C/O INLAND REAL ESTATE CORPORATION, 2901 BUTTERFIELD ROAD, OAK BROOK IL 60523
Thomas R Mcwilliams director C/O INLAND REAL ESTATE CORPORATION, 2901 BUTTERFIELD ROAD, OAK BROOK IL 60523
Mark E Zalatoris director, officer: Chief Executive Officer 2901 BUTTERFIELD RD, OAK BROOK IL 60523
D Scott Carr officer: Chief Investment Officer C/O INLAND REAL ESTATE CORP, 2901 BUFTTERFIELD ROAD, OAK BROOK IL 60523
William W Anderson officer: Senior Vice President C/O INLAND REAL ESTATE CORP, 2901 BUFTTERFIELD ROAD, OAK BROOK IL 60523
Joel D Simmon director C/O INLAND REAL ESTATE CORP, 2901 BUFTTERFIELD ROAD, OAK BROOK IL 60523
Heidi N Lawton director C/O INLAND REAL ESTATE CORP, 2901 BUFTTERFIELD ROAD, OAK BROOK IL 60523
Joel G Herter director C/O INLAND REAL ESTATE CORP, 2901 BUFTTERFIELD ROAD, OAK BROOK IL 60523
Daniel L Goodwin director, 10 percent owner 2901 BUTTERFIELD RD, OAK BROOK IL 60523
Thomas H Mcauley director 3095 BRANDY STATION, ATLANTA GA 30339-4425
Inland Group Inc director, 10 percent owner 2901 BUTTERFIELD, OAK BROOK IL 60523
Inland Real Estate Investment Corp 10 percent owner 2901 BUTTERFIELD ROAD, OAK BROOK IL 60523

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