Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Investor Presentation (November 2019)
33 slides from Inventrust Properties's investor presentation, Nov 12, 2019
Slide 1: Investor Meeting November 2019
Investor Meeting November 2019
Slide 2: Forward Looking Statements
Forward Looking Statements Forward-Looking Statements in this presentation, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical, including statemen
Slide 3: Meeting Topics
Meeting Topics o Journey to a Retail Platform o InvenTrust’s 3G Retail Strategy o Company’s Financial Performance o New Dividend Rate & Share Value o New Share Repurchase Program (SRP) & Dividend Reinvestment Plan (DRP) o Thoughts on a Potential Final Liquidity Strategy 3
Slide 4: The Journey to a Retail Portfolio & Stable Platform
The Journey to a Retail Portfolio & Stable Platform InvenTrust’s Portfolio & Platform Structure as of 12/31/2012 Portfolio was $12.7 Billion of Diversified Leverage Ratio = Dividend Payout Assets, JVs & Marketable 56% Ratio = 93% Securities These Metrics Correspond with Pre-Recession Non-Traded REIT
Slide 5: The Journey to a Retail Portfolio & Stable Platform (2013-2014)
The Journey to a Retail Portfolio & Stable Platform $460 million apartment portfolio sale to 2013 Completed $1.8 billion sale of net lease (non-core) assets to Completed a $395 million, or 6.7% of outstanding shares, modified “Dutch Auction” tender offer. $1.1 billion sale of select service lo
Slide 6: The Journey to a Retail Portfolio & Stable Platform (2015-2016)
The Journey to a Retail Portfolio & Stable Platform Spin-off & listing of Xenia on the NYSE 2015 Implemented new branding as a pure-play retail REIT and changed name to InvenTrust Properties Spin-off of “non-core” assets into Highlands REIT, Inc. Highlands is a stand-alone, independent, non-tr
Slide 7: The Journey to a Retail Portfolio & Stable Platform (2017-2019)
The Journey to a Retail Portfolio & Stable Platform Initiated 3G Retail Portfolio Strategy 3% increase in distribution rate 2017 Addition of 2 new Board members with retail and/or real estate experience 3% increase in distribution rate 2018 Completed a $100 million, or 6% of outstanding shar
Slide 8: InvenTrust's Retail Portfolio: Our 3G Strategy
InvenTrust’s Retail Portfolio Our 3G ApproachStrategy Brings Less Risk & A More Stable Share Value GEOGRAPHY • Focus portfolio in Sun Belt markets with attractive demographics - growing population and household incomes • Reduced number of markets in portfolio to improve operational efficiencies & ma
Slide 9: 3G Portfolio Strategy: Geography
3G Portfolio Strategy GEOGRAPHY 9
Slide 10: IVT's Retail Portfolio in 2015
IVT’s Retail Portfolio in 2015 40+ Markets Across the Country / Fewer Field Offices 1 10
Slide 11: Sun Belt Focused Portfolio
Sun Belt Focused Portfolio 1 11
Slide 12: Portfolio Located in High Growth Markets
Portfolio Located in High Growth Markets By strategically targeting Sun Belt markets expecting significant near-term population and job growth, InvenTrust expects to have a sizeable advantage to capture future demographic shifts. Estimated Portfolio Population & Job Growth (’19 -’23) 8.0% IVT Peers
Slide 13: 3G Portfolio Strategy: Grocery
3G Portfolio Strategy GROCERY 13
Slide 14: The Right Retail to Own
The Right Retail to Own Neighborhood or Community Center A property below 250,000 square feet that contains a grocer. = not owned by IVT A brand of 14
Slide 15: The Wrong Retail to Own
The Wrong Retail to Own Mall (which InvenTrust doesn’t own) A center that is much larger, with usually 4 or more large anchor spaces and is normally enclosed. Vacant 15
Slide 16: The Power Center Dilemma
The Power Center Dilemma Traditional Power Center 1 Credit Risk = not owned by Power Center landlord 400,000 square feet of retail space Multiple anchors not owned by InvenTrust Unfavorable leasing terms if an anchor leaves the center 16
Slide 17: Disposition Rationale for Power Centers
Disposition Rationale for Power Centers Valuation Impact From Vacant Anchor Space & Declining Income In ‘000s $32,300 1 Net Operating Income Value of Property $12,900 $2,823 $1,416 2018 2022 17
Slide 18: Eliminating Risk from the Portfolio
Eliminating Risk from the Portfolio Property Net Operating Income vs. Property Valuation Scenario Selling One Large Power Center • Property Generates $7.5 million of Net Operating Income • Cap Rate of 7.5% • Property Valuation = $100 million Reinvesting Proceeds Acquiring Two Grocery-Anchored Center
Slide 19: Portfolio Evolution to Grocery Anchored Assets
Portfolio Evolution to Grocery Anchored Assets By Net Operating Income 12/31/2015 09/30/2019 Strip Center Grocery - No Grocer Anchored Grocery 8% 57% Anchored 27% Power Center - No Grocer 84% 71% 21% Grocery Grocery 1 Anchored Anchored 1 Power Center Power with Grocer Power Center - No Center with 2
Slide 20: Recent Acquisitions – Upgrading the Portfolio
Recent Acquisitions – Upgrading the Portfolio Southern Palm Crossing Eldorado Marketplace Travilah Square Royal Palm Beach, FL Frisco, TX Rockville, MD • Annualized Base Rent per SF - • Annualized Base Rent per SF - $21.94 • Annualized Base Rent per SF - $47.01 $21.64 • Market Street anchored • Trad
Slide 21: 3G Portfolio Strategy: Growth
3G Portfolio Strategy GROWTH 21
Slide 22: Completed Capital Recycling Impact
Completed Capital Recycling Impact InvenTrust has significantly improved the quality of its portfolio and operations with over $3.5 billion of transaction volume since embarking on our capital recycling efforts in 2015. Acquisitions Dispositions completed completed since 2015 since 2015 32 73 #Prope
Slide 23: Balance Sheet Will Support Future Growth
Balance Sheet Will Support Future Growth Balance Sheet Metrics as of 09/30/191 Peers Available Unsecured Debt $350 million - Net Debt to EBITDA 4.3x 5.0x to 7.9x Leverage Ratio (Debt / Gross Asset Value) 23% Average ~37% Weighted Average Interest Rate 3.48% - Distribution Rate on NAV 2.35% 3.3% to 6
Slide 24: Stable Platform = Increasing Distributions
Stable Platform = Increasing $0.078 Distributions $0.0759 $0.076 $0.0737 $0.074 $0.072 $0.0716 $0.070 $0.0695 $0.068 $0.0675 $0.066 $0.064 $0.062 2016 2017 2018 2019 2020 Fourth Consecutive Annual Increase in IVT’s Distribution Rate The increases in the distribution rate underscores the confidence t
Slide 25: IVT's Estimated Share Value History
IVT’s Estimated Share Value History $3.40 Stable Estimated Share Value Over Last 4 Years $3.30 $3.29 $3.20 $3.14 $3.14 $3.14 $3.10 $3.00 2016 2017 2018 2019 25
Slide 26: Portfolio Strategy is Producing Results
Portfolio Strategy is Producing Results 2019 Year-Over-Year Same-Property Values Values in millions 2019 2018 Change Same-Property Community & Neighborhood $1,265 $1,259 +$6 Centers Value Same-Property Power Centers with a Grocer Value $750 $734 +$16 Same-Property Power Centers no Grocer Value $465
Slide 27: InvenTrust – A Unique Retail Platform
InvenTrust – A Unique Retail Platform The Right Properties in the Right Markets with the Right Balance Sheet • Focused Portfolio In Sun Belt Markets o Concentrated portfolio in ~15 Sun Belt markets with superior demographics o Fewer markets, with additional properties = operational efficiencies • Pr
Slide 28: Strategy Moving Forward
Strategy Moving Forward o Focus and drive value as a grocery-anchored retail platform. o Continue to evaluate disposition opportunities & execute on acquisition strategy o Maintain our capital structure flexibility. o Continue to improve public company readiness and monitor market conditions for pot
Slide 29: Experienced Board of Directors
Experienced Board of Directors Paula J. Saban (2004) Michael Stein (2016) Chairperson 40 years of public 25+ years of banking & accounting experience financial services experience, including prior CFO including Bank of America positions with Nordstrom & Marriott Thomas Glavin (2007) Scott Nelson (20
Slide 30: New SRP & DRP Programs Announced
New SRP & DRP Programs Announced • Announcing November 1st, SRP will become active December 1st • To be eligible for any of the SRP categories, you must be a Qualifying shareholder. • SRP categories: • Category 1 – Death of a shareholder registered on an InvenTrust account. • Category 2 - Classified
Slide 31: Appendix
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Slide 32: TAR A is
TAR A is appendix &*, Inventrust Lee Properties 32)
Slide 33: Footnotes Page
Footnotes Page 11 Page 26 1. As of September 30, 2019. Excludes NOI from recent acquisitions. 1. ABR is annualized base rent as of September 30, 2019 divided by 2. Southern California includes Los Angeles, Riverside/San economic occupied square footage. Ground and specialty leases are Bernardino/Ont
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