Ingles Markets, Incorporated (NASDAQ: IMKTA) disputed claims made by Summer Road LLC regarding the grocery chain's real estate portfolio, calling the activist investor's assertions "fundamentally flawed" in a statement responding to Summer Road's April presentation.

The Asheville, North Carolina-based grocer contested Summer Road's characterization of 29 undeveloped parcels as "grocery-anchored mall sites sitting fallow." According to Ingles, 17 of these parcels are designated for potential future development including grocery stores, while the remaining 12 are marked for sale, ground lease, or build-to-suit development.

Ingles also challenged Summer Road's assertion that it owns 1,800 acres of unused land valued at approximately $466 million by county tax assessors. The company stated the actual acreage is "less than 1/3 of what Summer Road claims" and that the book value of the 29 undeveloped sites represents less than 5% of total net property, plant and equipment on its balance sheet.

The dispute centers on Summer Road's proposal to separate Ingles into an operational company and a real estate company. Ingles characterized this as "essentially a sale-leaseback strategy" that would be "value destructive," noting that covering additional rent expenses would require the company to double its sales assuming a 2% profit margin.

The company urged shareholders to vote for its director candidates Rebekah Lowe and Dwight Jacobs on the white proxy card, opposing Summer Road's attempt to nominate Rory Held, described as a "Sackler representative," to the board.

Ingles operates 197 supermarkets across six southeastern states. Three stores remain temporarily closed due to Hurricane Helene damage but are expected to reopen in 2026.