Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Investor Presentation (July 2015)
55 slides from Inventrust Properties's investor presentation, Jul 29, 2015
Slide 1: Investor Presentation July 2015
Exhibit 99.1 Investor July 2015Presentation
Slide 2: Forward-Looking Disclaimer
Forward-Looking Disclaimer words expressions, management, value statements Q, 1933, statements, changes should This significant 1presentation inpresentation each to as such beour in amended, drawn case in are and assumptions which as stockholders of or understanding are “may,” statements our these t
Slide 3: InvenTrust Properties Overview - Tom McGuinness, CEO & President
InvenTrust Tom McGuinness Properties – CEOOverview & President
Slide 4: InvenTrust is Taking a Balanced Approach to our 170K Stockholders
Frequent Questions 3InvenTrust is Takingfrom a Balanced Stockholders Approach to our 170K Stockholders with the goal of driving stockholder value.
Slide 5: A New Investment Focus
A New Investment Tailor Focus Build Key SVP EVP Committed Disciplined Comprehensive 4Internal Executive –complete portfolio & Asset Transactions Property Portfolio Investments REIT property concentrate Thesis: to distribution Mgmt. –NAV Hires: More into /Mgmt. balance Mgmt. independent and(Universit
Slide 6: Accomplishments Highlighted
Accomplishments $460 2015 2014 2013 Announced Internalization $395 (Repurchased $1.1 Total (Does Successful 5Highlighted billion million other not include liquidity portfolio $1.8 sale and apartment modified shares ofof developed billion management Xenia) Align select event: repositioning at “Dutch
Slide 7: Why Change the Name to InvenTrust Properties?
Whyexample Creates Some For Investors Further Next Management Xenia InvenTrust Source 6Execute Change step vendors, Hotels deals Demonstrates Clarity on and/or inhas aprocess –Manage strategy and the & tenant its tenants, in Resorts, FAs Name Board the own would lease Market our to Independence team
Slide 8: What Did the Select Service Hotel Sale Provide Stockholders?
Whatproceeds Select Closed Robust, Net Why Xenia $125 Approximately Student 7Paid down Not million Did spin-off Service on housing competitive Return the the debt went from Hotel sale Transaction and $150 and Proceeds of to the listing Select auction retail million fund 52transaction select required
Slide 9: What Did the Xenia Spin-off and Listing Provide Stockholders?
What Spin-off Ticker Benefit Meaningful Xenia XHR Tax The taxable ** 8of the Please Consideration $2.76 has Did distribution 3-month symbol return toand outperformed note the Stockholders Xenia liquidity listing Xenia of “XHR” that trading capital distribution will for the of Hotels option Distribut
Slide 10: Moving Forward: Maintain Flexible Capital Structure
Moving Maintain Loan-to-value Provides Prepared Refine Markets Hub Sell Multi-tenant Dedicated 3University 9Continue non-core & and Spoke Forward with similar optionality for flexible toteam concentration reduce grow House unexpected office favorable assets strategy has of to:capital best-in-class d
Slide 11: InvenTrust Focused Portfolio at a Glance
InvenTrust Focused Non-Traded Portfolio Rebranded *Based 10 onStrategy Consists undepreciated to atREIT aInvenTrust Glance of of that Balance $4.9 Became Properties (total billion* Sheet investment Self-Managed inManagement, Annualized Total Assets in properties) inDistribution 2014 Capital 142 Prop
Slide 12: Student Housing Platform - Travis Roberts, President University House
StudentRoberts—President Travis Housing Platform
Slide 13: University House Overview
Overview Vertically Strong Best-in-class Grown *Created ** 12Includes Includes team portfolio a platform Integrated of UHone with University portfolio Arena development tolong-working and 17Platform District properties built aHouse portfolio, through JV purchased – relationship Located (9,848 proper
Slide 14: University House Management Team
University Travis President Troy EVP David 10 Carlie SVP 15 Team 13 Years Development Operations Manson previously Cresse Pierce Roberts inHouse Student managed Management Housing the student Team housing investment and development business of First Worthing, prior to being acquired by InvenTrust Pr
Slide 15: University House National Footprint
University *As **UH 14 ofArena 3/31/15 House District National is a JVFootprint* property
Slide 16: Quality Portfolio vs. Public Peer Set
Quality Public 0.8 0.7 0.5 0.4 0.3 In 0.53 0.6 UHC 02468Distance UHC Miles 4Public 10 In Years Age % 62% 68% 70% 60% 50% 40% Peer Over Acceptance 56% 63% *Includes 15 Top toUH of Peer 150 Campus Set Assets Quantity Set Schools Rate Arena – Best-In-Class of Schools District in (240 Portfolio* Portfol
Slide 17: Quality Portfolio: Beds, Occupancy and Rent vs. Peers
02Quality 80,000 60,000 40,000 100% 90% 80% Beds 9,848 66,547 Public $800 $700 $600 Occupancy** 96% 97% Avg. $764 $673 UHC After Loan-to *Includes 16 0,000Rent developments Peer Over Value UH Per Set Quantity Arena Bed** is lesscome District than – Best-In-Class 40% online (240inbeds) 2016, Portfoli
Slide 18: University House Markets and Strategy
University Markets DEVELOPMENT ACQUISITIONS Well-positioned Universities Newer Maintain 17 assets with solid, House with within high flexible assets competitive Strategy barriers walking with capital tostrong distance entry student structure market acceptance to providing campus position University
Slide 19: Continued University House Portfolio Growth
Continued 02University 2,000 4,000 6,000 8,000 10,000 12,000 *14,000 18 007 Includes 2008 UH Portfolio House 2009Arena 2010 Communities Growth District 2011 2012andBeds 2013 development 2014 2015* pipeline 2016* 2017*
Slide 20: Development Property Located West of University of Texas
Development Located Scheduled Property 19 just features toone open Properties block premier August west –amenities University ofof2016 the University including of Texasof amenity Texas deck, in the sky popular lounge, Westfitness Campus center, neighborhood and study areas of Austin
Slide 21: Development Property Located Near Georgia Tech
Development Located Opens 100 19-story High-end 20 % in pre-leased in residential August student theProperties popular -amenities by 706 tower spring beds Midtown – offering Georgia of include & 2015 approximately area one-, Tech. a of clubroom, Atlanta two-, 9,000 three- study square and lounge, fo
Slide 22: How Does Student Housing Investment Benefit Stockholders?
How leverage Potential Development Low Recycle Stable Student New Sustainable Investment 21 acquisitions supply Does Asset housing capital Value Student strategy Distribution has Class yields =Appreciation through Access slowed fundamentals &Investment focused developments wellto as targeted above l
Slide 23: Value of Education Remains High
Valueofof Unemployment 4.00% 6.00% 8.00% 10.00% 12.00% Median $0 $20,000 $40,000 $60,000 $80,000 $100,000 Enrollment Nationwide -2.00% -1.50% -1.00% -0.50% 0.00% 0.50% 1.00% 1.50% 2.00% College 40% Predicted *Axio 22 Top students Annual degrees an occupancy 20 Growth Education Axio areEarnings Rate
Slide 24: Multi-Tenant Retail Platform - David Collins, EVP
Multi-Tenant David CollinsRetail – EVPPlatform of Portfolio Management
Slide 25: Retail Landscape: Bricks vs. Clicks
Retail Landscape Minimal Retailers Bricks Consumer 24 andNew are Experience Clicks Expanding Development VS. is Bricks Again—Cautiously Important or Clicks
Slide 26: The InvenTrust Market Strategy: Hub and Spoke
The InvenTrust Market “Hub Vertical Tenant InvenTrust 25 and Relationship Concentration Integrated Spoke” plansRetail tostrategy Management concentrate Strategy—deep Strategy – core – leveraging market in&markets Leasing local focus theand /with strategy Platform reducing national growing to–number
Slide 27: Multi-Tenant Retail Portfolio Snapshot
Multi-Tenant Portfolio Power Community Neighborhood InvenTrust *Includes 26 Centers Breakdown 17 has ¢ers Retail Center 38% 62% a national Snapshot* in bythe Square diversified IAGM Feet JVhigh-quality / As of 3/31/15 multi-tenant retail portfolio
Slide 28: InvenTrust's Top Retail Markets
Retail InvenTrust’s Top 12.8% 4.0% 8.0% 12.0% 16.0% 4.3% 5.2% 6.8% 8.1% 2.7% 0.0% Houston City/Tulsa Job 9.6% Income % Source: *Includes 27 %Growth Markets %4.2% 2.5% (1) 10.2 Strategy 12.5% Growth Pop. % Green Dallas 17 % 12.2 Antonio 4.2% (‘15-‘19E) largest Growth by centers Street –Altanta (‘15-‘
Slide 29: Operating Hub and Spoke Strategy
Operating “Hub Vertically Property Leasing Development Enhanced Increased Improved Efficiency Market Tenant Favorable 28 and Retention Knowledge Management Occupancy Spoke” Integrated Property Tenant Strategy Lease & CostTerms Relationships strategy Savings /Fundamentals “Hub will & Spoke” generate
Slide 30: Deep Tenant Relationships
Focus Given Top Ross Tom Publix Best Bed *Includes 2.1% 2.5% 2.7% 3.0% 3.4% 5.0% Walmart PetSmart 29 Retail Bath Buy Thumb Dress on scale Deep &17 Tenants for and Beyond centers Less Tenant locations byinGLA* Relationships theinIAGM growing JV vibrant / As of 3/31/15 markets, InvenTrust has develope
Slide 31: Retail Lease Expiration
Retail Leases Lease 15.4% 0.0% 5.0% 10.0% 15.0% 20.0% 2015 5.7% 10.5% 11.4% As Growing *Includes 30 of 2016 3/31/15 Expiration Lease 14.5% rolling Average 172017 Expiration centers 13.3% during 2018 by Base % inpredicted 2019 of the Rent Brings Total IAGM 2020 (ABR) Value Annualized inflationary JVo
Slide 32: Key Retail Strategy Results
Retail InvenTrust Key Vertically Strong Targeted Investments Creates Leverage Recycle Significant Results Heightened Attractive The 31 InvenTrust Market Strategy Tenant operating capital Acquisitions relationships Integrated Risk-Adjusted Retail Improved Cash Concentration inRelationships markets De
Slide 33: Market Fundamentals - Michael Podboy, CIO
Market Fundamentals Michael Podboy – CIO/ Capital Allocation / Acquisition & Disposition Strategies
Slide 34: Comprehensive Acquisition Procedure
Deals Every & Comprehensive Asset A 33Diligent Reviewed Acquisition Acquired Reviewed Deal&Presented by Disciplined Investment Due byProcedure Internal Diligence to Approach Committee Transaction (Retail Performed & Student Team Housing)
Slide 35: Timing: U.S. Retailers In-Step with Recovery
Timing: U.S. Retailers *Source: 34 retail In-Step are REIS—Q2 is in expanding recovery with 2015/ Retail again, phase Dividend Market although Opportunity Capital new construction Research Report; remains Mueller historically Real Estate low Retail Financesales – Q1 continue 2015 astoof grow Maymode
Slide 36: Multi-Tenant Open-Air Retail Acquisition Strategies
Multi-Tenant Open-Air Location, Properties Job Focus With Investment 35 ¤t on wagekey Location, Centers—grocery-anchored with opportunities growth competitive Retail retail strong markets Acquisition Location Population demographics do environment, exist—retailers growth Strategies centers, Hi
Slide 37: Retail Growth Scale: From Current to Focus Markets
Retail Growth Scale: (5) Dallas Austin2 Las Market From Portland2 Orange Houston2 Fort Baltimore (4) Louisin (4) Oakland-East Seattle1 Los San Denver1 Orlando1 Tampa-St. Vegas2 Top Antonio2 Angeles1 Diego2 Jose1 Current Raleigh-Durham Pheonix0 Philadelphia Atlanta0 Inland D.C. Boston New Columbus St
Slide 38: Recent Multi-Tenant Retail Acquisitions
Recent 169K $45.8M Westpark Richmond, 177K $33.8M The Outside Acquired Power 216K $57.1M 3-mile 37 Highlands Shops sq. Center Avg. Median Population Multi-Tenant Dallas Denver ft. April June May Shopping at VA HH Walnut 2015 HH of 2015 Income—$144,000 Income—$84,000 Flower –Income—$62,000 Center 65,
Slide 39: Student Housing Investor Transaction Market
Market Investor Transaction Listed, Recent Opportunity Investors years) 2013: 2014: 2015: In 3~30 38 $112014, $3.7 Class ~Public Immense institutional Fundamentals $2.8 $3.0 $4.0 REITs Base ~80 seeking Ainaverage Modernization Fragmented *Source: billion billion Volume /billion total Student growth~
Slide 40: Student Housing Acquisition Strategies
Student Increase University Key Property Properties Our Ability Independently Top 39 manager/operator fully-integrated characteristics: to Housing the located develop with House scale source high-end within Acquisition Denver of properties platform our deals gives walking platform amenities, purchas
Slide 41: Disposition Strategy: Executing on Non-Core Properties
Disposition Our Executing Properties Outlook Continue Reinvest Recent Office Industrial 6.4M 3.4M 40 long-term sq. property non-core for capital ft. to property on noStrategy of are value actively this longer triple corporate AT&T in into dispositions strategy appreciation Manchester, innet match ma
Slide 42: Financial Results & Balance Sheet Overview - Jack Potts, CFO
Financial Jack PottsResults – CFO & Balance Sheet Overview
Slide 43: Estimated Per Share Value Information (February '15)
Estimated $4.00 Same-Store Non-Core Calculated 42 per share Per portfolio and by values independent Share published (after for values Value Xenia Multi-Tenant after decreased Information third-party Spin-Off) XeniaRetail spin-off –(February Real andGlobe Student ‘15) Advisors Housing Platforms incre
Slide 44: Estimated NAV Per Share Value Information (February '15)
Estimated NAV FINRA Used Projected Less Applied For Subtracted Divided Does 43 all capital method a other not 10-year –the areflect NTR net market Per the result expenditures assets, operating used Share company’s required discounted any supported bysuch adjustment Value theincome method as number d
Slide 45: Change to Distribution Rate After Xenia Spin-Off
Change to Elimination Capital Disposition Distribution Covered 44 for inby Address Distribution Acquisitions Strategy Cash of Rate Xenia Flow for Future of Entire Cash Rate from Properties &Lease Developments Flow Investment (February Operations Renewals after in our Spin-Off ‘15) Portfolio & Non-Co
Slide 46: Select First Quarter Results
Selectper $4.9B $1.8B Same-Store FFO 45 = Total Total Share NOI Company Assets Debt == $0.07 $73.1M Undepreciated First (includes Quarter one-month Results of Xenia results)
Slide 47: Multi-Tenant Retail and Student Housing Rent Metrics
Multi-Tenant Retail $14.00 $13.87 $761 $13.80 $13.60 $729 $13.67 $742 $13.40 12/31/2013 46 Rent $775per $13.87 $750 $725 $70012/31/2014 Retail Sq. Ft. / Student Student 3/31/2015 Housing Housing 2013Rent Rent 2014Metrics per Q1 Bed 2015
Slide 48: Balance Sheet Strength: Declining Leverage
Balance Declining $8.0 6.23 54.6% 5.10% 45.7% 6.13 36.5% 36.9% $6.0 $4.0 $3.6 $2.0 $3.2 20% 5/13 $1.8 New $- Total *Includes Fixed 2012 1.90 2.00 [VALUE]x 2.10 2.13x 2.20 2.22x 2.30 1Line 47 0%4.00 60% 5.03% 6.00 5.10 5.00 4.6% 4.4% LOC 2013 Debt Coverage1 of 3.00 5.0% 40% Sheet Credit 5.45 7.00 Lin
Slide 49: Capital Structure and Debt Maturities
Capital Balance Capacity LOC 11% $1,250 Marketable 89% Cash $284 Manageable 2015 $- $250 $500 $750 $1,000 Fixed 48 $600 2016 $198 Variable Rate Structure Sheet 2017 Debt Securities Mortgage Composition 482018 Floating as of 2019 3/31/15 Debt Rate Thereafter Balance Maturities Debt Funding Sheet Capa
Slide 50: Balance Sheet Strategy
Balance Be Line Property Preserve Liquidate Strong Fixed Weighted 49 positioned ofCoverage: balance credit Sheet alevel Average marketable strong to financing Strategy sheet access 2.13x liquidity Interest metrics securities Loan-to-Value: capital position Rate:at5.03% all times 36.5% Average in mul
Slide 51: InvenTrust Properties
Inventrust Properties
Slide 52: Key Themes
Key Themes Experienced Committed Strong, Growth 51 Flexible Initiatives toManagement &Sustainable Enhancing Areas Balance Include of Focus Sheet Portfolio Dividends Team Acquisitions, &with Capital andRobust Increasing Development Structure National NAVand Operating Redevelopment Platform Opportunit
Slide 53: Appendix
Inventrust Properties
Slide 54: InvenTrust Management Team
InvenTrust Tom Travis President University 53 Secretary McGuinness Roberts &House of Management CEO EVP David –EVP—CFO Management Jack Portfolio Collins Potts Team Michael EVP Scott EVP—CIO Counsel –Wilton General Podboy & EVP—CAO Anna Fitzgerald
Slide 55: GAAP to Non-GAAP Reconciliations
GAAP (In Net Depreciation Add: Less: Gain Funds Weighted Three (8) 5,833 7912,594 52,028 -155,825thousands) income 130,481(loss) $861,825 112,053 4,481 126,943 9,839 103,157 54 28 7,125 30,481 0.07 0.12 Months from to Non-GAAP Average from (loss) operations and Ended property Amortization of Oustand
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