Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Inland American Real Estate Trust — Investor Presentation (June 2009)
21 slides from Inventrust Properties's investor presentation, Jun 9, 2009
Slide 1: Inland American Update as of March 31, 2009
www.inlandamerican.com June 2009 Inland American Update as of March 31, 2009
Slide 2: Forward-looking statements
2 This presentation may contain forward-looking statements. Forward-looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such word
Slide 3: Overview
3 • Owns a diversified portfolio of core commercial real estate including: o Retail o Lodging o Office o Multi-Family/Student Housing o Industrial • Owned directly or indirectly through joint ventures 930 properties o 40 million square feet o 6,654 multi-family units o 15,125 lodging rooms • Invests
Slide 4: Strategy
4 Diversified Real Estate Portfolio Balances Risk Exposure • Core assets in several real estate sectors nationwide • Investments in joint ventures, developments, loans and marketable securities designed to enhance core stabilized yield Conservative Balance Sheet Management • Low leveraged buyer - 43
Slide 5: Major Challenges
5 • Global credit crisis impacts – Liquidity – Ability to refinance maturing debt – Limited ability to purchase new assets • Joint Ventures – Leasing – Certain JV development projects – Lending/Borrowing • Lodging occupancy and revenue Major Challenges
Slide 6: Strategy to Mitigate the Challenges
6 • Focus on smaller regional banks, Fannie Mae & Freddie Mac and larger lenders to access debt to fund existing obligations • We have the ability to manage existing joint venture development projects that may be experiencing challenges • Our specialized lodging asset management group continues to a
Slide 7: Investment Allocation - $11.3B
7 Cash & Other Assets – 9% Total Assets $11.3B Core Assets – 77% Retail – 35% Lodging – 29% Office – 20% Industrial – 10% Multi-Family – 6% Notes Receivable – 4% Marketable Securities – 2% Joint Ventures – 5% Development – 3% Diversified Strategy Balances Risk Exposure As of March 31, 2009 *Figure i
Slide 8: Joint Ventures & Development: 8% of Total Assets
8 • Disciplined, limited approach to investing in joint ventures including operational and development projects • Student housing and correctional facilities comprise the majority of development – projects on track • Development within some joint ventures currently experiencing delays in constructio
Slide 9: Notes Receivable & Marketable Securities: 6% of Total Assets
9 • Impairments on securities are non-cash charges, which may ultimately result in future gains as the market recovers • Notes receivable include certain loans to borrowers who are stressed due to recession Notes Receivable & Marketable Securities: 6% of Total Assets As of March 31, 2009 Total Asset
Slide 10: Conservative Balance Sheet Management
10 • Manageable debt maturities • Low leveraged buyer • Individual property debt – not corporate Conservative Balance Sheet Management
Slide 11: Manageable Debt Maturities
11 • Q2 2009: Loan amounts of $236M currently being extended or financed for one or two years; $108M was repaid prior to 5/31/09 $5M Manageable Debt Maturities Fixed Debt Variable Debt As of March 31, 2009 2009 - $479M 2010 - $750M 2011 - $345M $600M $550M $500M $450M $400M $350M $300M $250M $200M $
Slide 12: Unencumbered Assets
12 • Provide another resource for capital when credit markets return • Assets totaling $800 million have no existing debt • Inland American will be able to generate additional purchasing power for the REIT once these are leveraged with mortgage loans • Examples within portfolio University House - Un
Slide 13: Balanced Acquisition of Assets Over Time
13 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Balanced Acquisition of Assets Over Time As of March 31, 2009 Cap Rate Low Point $4.01B - 326 Properties $5.61B - 604 Properties $1.8B $1.6B $1.4B $1.2B $1.0B $800M $600M $400M $200M 0 Acquired Value Quarters Quarters
Slide 14: Current Portfolio – States – Properties
14 Current Portfolio – 35 States – 930 Properties As of March 31, 2009 Multi-Family Industrial Office Lodging Retail 18 Properties 64 Properties 37 Properties 99 Properties 712 Properties 8 States 17 States 16 States 23 States + Dist. of Col. 32 States + Dist. Of Col. 6,654 Units 15.4M Square Feet 9
Slide 15: Retail: 35% of Core Real Estate Portfolio
16 Tomball Town Center Houston, TX Retail: 35% of Core Real Estate Portfolio • 93% economic occupancy • 55% of retail properties are necessity based, serving consumer needs • High concentration in strong Texas market As of March 31, 2009
Slide 16: Lodging: 29% of Core Real Estate Portfolio
17 • 61% occupancy compared to industry average of 51.4%* • 48% Marriott, 40% Hilton Includes such brands as Courtyard by Marriott, Residence Inn & Hilton Garden Inn • Strong portfolio located in targeted urban markets: Washington D.C., Atlanta, GA Dallas & Houston, TX • Acquisitions incorporate “de
Slide 17: Office: 20% of Core Real Estate Portfolio
18 The IDS Center Minneapolis, MN Office: 20% of Core Real Estate Portfolio • 97% economic occupancy • Strategic mix of single and multi-tenant buildings • 70% single-tenant of which 81% are investment grade As of March 31, 2009
Slide 18: Multi-Family/Student Housing: 6% of Core Real Estate Portfolio
19 • 90% economic occupancy • Multi-family concentration in Texas • Student housing concentration near major universities – University of Pennsylvania – University of Alabama/Birmingham UAB/Birmingham Birmingham, AL Multi-Family/Student Housing: 6% of Core Real Estate Portfolio As of March 31, 2009
Slide 19: Industrial: 10% of Core Real Estate Portfolio
20 Atlas Cold Storage Brooklyn Park, MN Industrial: 10% of Core Real Estate Portfolio • 97% economic occupancy • 42% of industrial segments serves the needs of essential good and service companies such as food and drug • Largest concentration in Memphis, next to FedEx’s “Super Hub” As of March 31, 2
Slide 20: Recent Acquisitions
21 Thomas Crossroads Newnan, GA Brazos Ranch Apartments Rosenberg, TX Pavilion at La Quinta La Quinta, CA Sanofi Aventis Office Buildings Bridgewater, NJ Recent Acquisitions
Slide 21: Who You Invest With Is Everything
22 “We believe our diversified strategy of owning high quality assets across various real estate sectors strongly positions Inland American for the future. We continue to focus on preservation of your capital and are working hard by prudently managing upcoming debt maturities to ensure the strength
Inland American Real Estate Trust — Investor Presentation (June 2009) on 6ix