InvenTrust Properties Corp. · NYSE:IVT

InvenTrust Properties — Investor Presentation (August 2015)

53 slides from InvenTrust Properties's investor presentation, August 2015

1. Slide 1: Investor Presentation

   Investor Presentation August 2015

2. Slide 2: Disclaimer

   Disclaimer 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 statements regarding man

3. Slide 3: InvenTrust Properties Overview

   InvenTrust Properties Overview

4. Slide 4: Frequent Questions from Stockholders

   Frequent Questions from Stockholders Estimated Liquidity? Share Value? Distribution Rate? InvenTrust is Taking a Balanced Approach to our 170K Stockholders with the goal of driving stockholder value. 3

5. Slide 5: A New REIT – More than a Name Change

   A New REIT – More than a Name Change Investment Thesis: Key Executive Hires: Committed to NAV • Tailor portfolio into targeted • EVP – Portfolio Mgmt. Growth asset classes (student • SVP – Transactions • Disciplined distribution housing & retail) • SVP – Asset Mgmt. policy • Focus & concentrate on •

6. Slide 6: Multi-Tenant Retail Platform

   Multi-Tenant Retail Platform

7. Slide 7: Retail Landscape

   Retail Landscape Minimal Retailers are Bricks and Consumer New Expanding Clicks VS. Experience is Development Again - Bricks or Important Cautiously Clicks 6

8. Slide 8: The InvenTrust Retail Strategy

   The InvenTrust Retail Strategy Market Concentration – core market focus / reducing number of markets “Hub and Spoke” strategy – regional focus to drive operating efficiencies and align with local & national tenants Vertical Integrated Management & Leasing Platform – enhances property performance and

9. Slide 9: Multi-Tenant Retail Snapshot

   Multi-Tenant Retail Snapshot* Portfolio Breakdown by Square Feet Power Centers 63% Community & 37% Neighborhood Center 128 24 19.0 93% # of Properties # of States Million Retail Sq. Ft. Occupancy InvenTrust has a national diversified high-quality multi-tenant retail portfolio *Includes 18 centers in

10. Slide 10: Retail Strategy – Core Markets

    Retail Strategy – Core Markets*  InvenTrust’s largest markets are expected to have high job growth, population growth, and income growth in the next five years Top Markets by GLA 16.0% 12.8% 12.5% 12.0% 8.1% 8.0% 6.8% 5.2% 4.3% 4.2% 4.2% 4.0% 2.7% 2.5% 0.0% (1) Houston Dallas Altanta Oklahoma Ralei

11. Slide 11: Operating Strategy / “Hub & Spoke”

    Operating Strategy / “Hub & Spoke” “Hub and Spoke” strategy will generate operating efficiencies and cost synergies  Enhanced Tenant Relationships  Efficiency & Cost Savings  Increased Occupancy  Market Knowledge  Improved Property  Tenant Retention Fundamentals  Favorable Lease Terms 10

12. Slide 12: Focus on Deep Tenant Relationships

    Focus on Deep Tenant Relationships  Given scale and locations in growing vibrant markets, InvenTrust has developed favorable relationships with top local and national tenants Top Retail Tenants by GLA* Ross Dress for Less 4.8% Publix 3.3% Tom Thumb 3.3% Best Buy 2.9% Bed Bath & Beyond 2.8% PetSmart

13. Slide 13: Retail Lease Expiration Brings Value Creation Opportunity

    Retail Lease Expiration Brings Value Creation Opportunity  Leases rolling during predicted inflationary time period = opportunity to grow rental rates Lease Expiration by % of Total Annualized Rent* 20.0% 15.2% 15.0% 14.4% 13.4% 12.8% 10.9% 10.0% 5.0% 2.3% 0.0% 2015 2016 2017 2018 2019 2020 As of 6

14. Slide 14: Retail Strategy Designed for Growth

    Retail Strategy Designed for Growth InvenTrust Retail Strategy Results  Investments in markets with high job, Key Market population and income growth Significant Improved Average Base Rents Concentration  Premium yielding assets with strong demographics  Creates operating efficiencies and cost Ve

15. Slide 15: Student Housing Platform

    Student Housing Platform

16. Slide 16: Overview of University House

    Overview of University House Vertically Integrated Platform – Located in Dallas Strong team with long-working relationship in student housing. Key strategic hires will move company into the next stage of life cycle Best-in-class portfolio built through development pipeline and tactical acquisitions

17. Slide 17: University House Management Team

    University House Management Team Travis Roberts Troy Manson David Pierce Carlie Cresse President EVP Investments EVP Development SVP Operations 13 Years in 13 Years in 10 Years in Student 15 Years in Student Housing Student Housing Housing Student Housing • Team previously managed the student housin

18. Slide 18: University House Strategy

    University House Strategy Markets with high barriers to entry Well-positioned assets with strong market position Universities with competitive student acceptance rates, stable or growing enrollment & Division I athletics ACQUISITIONS Newer assets within walking distance to campus DEVELOPMENT Univers

19. Slide 19: University House National Footprint

    University House National Footprint* Midwest Northeast Beds: 537 (5.0%) Beds: 498 (4.7%) Washington North Dakota Minnesota Montana The Fields Eugene Indiana University Maine Wisconsin Vermont Oregon South Dakota Idaho UH Arena District Wyoming Michigan U of Oregon** New York Iowa Nebraska Connecticu

20. Slide 20: Quality Over Quantity – Best-In-Class Portfolio

    Quality Over Quantity – Best-In-Class Portfolio* Distance to Campus Age of Assets 10 0.8 10 0.6 0.7 0.53 8 In Years 4 In Miles 0.6 6 0.5 4 0.4 2 0.3 0 Public Peer Set UHC Public Peer Set UHC Acceptance Rate of Schools in Portfolio % Top 150 Schools 68% 63% 70% 62% 70% 56% 60% 60% 50% 50% 40% 40% Pub

21. Slide 21: Quality Over Quantity – Best-In-Class Portfolio

    Quality Over Quantity – Best-In-Class Portfolio* Beds Occupancy** 66,547 97% 80,000 100% 95% 60,000 40,000 90% 9,848 20,000 0 80% Public Peer Set UHC Public Peer Set UHC Avg. Rent Per Bed** $758 $800 After developments come online in 2016, $673 Loan-to Value is less portfolio will contain than 40% $

22. Slide 22: Continued Portfolio Growth

    Continued Portfolio Growth University House Communities Beds 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016* 2017* * Includes UH Arena District and development pipeline 21

23. Slide 23: Development Properties – University of Texas

    Development Properties – University of Texas • Located just one block west of the University of Texas in the popular West Campus neighborhood of Austin • Scheduled to open August of 2016 • Property features premier amenities including amenity deck, sky lounge, fitness center, and study areas 22

24. Slide 24: Development Properties – Georgia Tech

    Development Properties – Georgia Tech. • Located in the popular Midtown area of Atlanta • Opens in August - 706 beds & approximately 9,000 square feet of retail space • 100% pre-leased by spring of 2015 • 19-story residential tower offering one-, two-, three- and four- bedroom units • High-end stude

25. Slide 25: Student Housing Tailwinds

    Student Housing Tailwinds Value of an Education Remains High Unemployment Rate by Educational Attainment Median Annual Earnings by Education Level 12.00% $100,000 10.00% $80,000 8.00% $60,000 6.00% $40,000 4.00% 2.00% $20,000 0.00% $0 Unemployment Rate by Educational Attainment Median Annual Earning

26. Slide 26: How Does Student Investment Benefit Stockholders?

    How Does Student Investment Benefit Stockholders? • Potential Value Appreciation  New acquisitions & developments can bring increased value to platform  Development yields well above current cap rates providing strong value creation  Low leverage = Access to lower cost of debt  Recycle capital t

27. Slide 27: Market Fundamentals / Capital Allocation / Acquisition & Disposition Strategies

    Market Fundamentals / Capital Allocation / Acquisition & Disposition Strategies

28. Slide 28: Asset Acquisition Procedure (Retail & Student Housing)

    Asset Acquisition Procedure (Retail & Student Housing) Deals Reviewed by Internal A Diligent & Transaction Team Disciplined Approach Every Deal Presented to & Reviewed by Investment Committee Comprehensive Due Diligence Performed Asset Acquired 27

29. Slide 29: Timing: In-Step with Retail Market Opportunity

    Timing: In-Step with Retail Market Opportunity Current Location in Retail Cycle  U.S. retail is in recovery phase  Retailers are expanding again, although new construction remains historically low  Retail sales continue to grow moderately and are above pre-recession peak *Source: REIS - Q2 2015/

30. Slide 30: Multi-Tenant Retail Acquisition Strategies

    Multi-Tenant Retail Acquisition Strategies • Open-Air Centers - grocery-anchored centers, necessity-based community centers and power centers  Location, Location, Location • Properties with strong demographics  Job & wage growth  Population growth  High education rate • Focus on key retail marke

31. Slide 31: Retail Market Concentration Matches Expected Demographic Growth

    Retail Market Concentration Matches Expected Demographic Growth Growth in Top 30 Markets(1) Scale: From 4 (Strong) to (4) Weak InvenTrust Current 4 Market Focus 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 (1) (1) (1) (2) (2) (2) (2) (3) (3) (3) (3) (4) (4) (4) (5) Columbus Portland Denver San Fr

32. Slide 32: Recent Multi-Tenant Retail Acquisitions

    Recent Multi-Tenant Retail Acquisitions The Highlands of Westpark Shopping The Shops at Walnut Flower Mound Center Creek • Outside Dallas • Richmond, VA • Outside Denver • Acquired June 2015 as • Acquired May 2015 • Acquired April 2015 part of IAGM JV • Grocery Anchored • Power Center • Power Center

33. Slide 33: Student Housing Acquisition Strategies

    Student Housing Acquisition Strategies • Student Housing Acquisition Strategy  Increase the scale of our platform through strategic acquisitions and developments  University House Denver purchased in Dec. 2014  Key characteristics:  Property located within walking distance to campus  Competitiv

34. Slide 34: Disposition Strategy / Non-Core

    Disposition Strategy / Non-Core • Our long-term corporate strategy includes selling our non- core assets or engaging in other strategic transactions  Executing on this strategy since 2013  Properties no longer match our strategic focus  Outlook for value appreciation does not match our targeted a

35. Slide 35: Financial Results & Balance Sheet Overview

    Financial Results & Balance Sheet Overview

36. Slide 36: Change in Distribution Rate (February ‘15)

    Change in Distribution Rate (February ‘15) Elimination of Xenia Cash Flow after Spin-Off Capital for Acquisitions & Developments for Retail & Student Housing Platforms Capital to Address Future Lease Renewals in our Non-Core / Legacy Portfolio Disposition Strategy of Properties in our Non-Core / Leg

37. Slide 37: Sustainable Distribution Coverage

    Sustainable Distribution Coverage In Thousands Three Months Ended June 30, 2015 Cash flow provided by operations $47,618 Distributions from JVs $2,409 Distributions paid ($28,009) Excess $22,018 36

38. Slide 38: Preserve a Strong Liquidity Position

    Preserve a Strong Liquidity Position Declining Debt & Improving LTV1 Disciplined Balance Management $8.0 54.6% 60% 7.00 5.10% 5.2% 45.7% 6.13 5.01% 6.23 5.0% $6.0 6.00 36.9% 40% 4.95% 36.4% $6.0 5.10 4.8% $4.0 5.00 4.97 $3.6 4.6% 20% $2.0 $3.2 4.00 $1.8 4.4% 5/13 New LOC 4.44% $- 0% 3.00 4.2% 2012 2

39. Slide 39: Be Positioned to Access Capital at all Times in Multiple Forms

    Be Positioned to Access Capital at all Times in Multiple Forms Balance Sheet Composition As of 06/30/15 Balance Sheet Capacity $1,250 12% $1,000 $750 LOC Capacity 88% $600 $500 Marketable Securities $250 $212 Cash $172 $- Fixed Rate Debt Floating Rate Debt Funding Sources Manageable Mortgage Debt Ma

40. Slide 40: Select Total Company 2015 First Half Results

    Select Total Company 2015 First Half Results Retail = 93% occupied* Student Housing = 95% occupied** Non-Core Properties = 90% occupied Modified Same-Store NOI increased 4.2% FFO per Share = $0.16 (includes one-month of Xenia results) Annualized Distribution Rate of $0.13 per share * Includes IAGM J

41. Slide 41: Multi-Tenant Retail Metrics

    Multi-Tenant Retail Metrics Retail Rent per Sq. Ft. Modified Same-Store NOI $14.00 $89,000 $88,314 $88,000 $13.87 $13.88 $87,000 $13.80 $86,000 $85,000 $13.67 $84,057 $84,000 $13.60 $83,000 $82,000 $13.40 $81,000 12/31/2013 12/31/2014 6/30/2015 Q2 2014 Q2 2015 40

42. Slide 42: Retail Outlook

    Retail Outlook • Our retail portfolio is expected to maintain high occupancy and have manageable lease rollover in the next three years. • We believe the retail segment same store income will be consistent with 2014 results while improving the tenant mix and continuing to upgrade the quality of the

43. Slide 43: Student Housing Metrics

    Student Housing Metrics Rent per Bed Modified Same-Store NOI $775 $21,000 $20,612 $760 $20,500 $750 $20,000 $742 $19,500 $729 $19,033 $725 $19,000 $18,500 $700 $18,000 2013 2014 Q2 2015 Q2 2014 Q2 2015 42

44. Slide 44: Student Housing Outlook

    Student Housing Outlook • We expect increases in operating results compared to 2014 due to increasing rental rates  Driven by the quality of our property metrics  Strong demand.  In addition, with over 3,000 beds coming online through 2017, we anticipate additional revenue and income growth for t

45. Slide 45: Recap of Key Themes

    Recap of Key Themes Committed to Enhancing Portfolio and Increasing NAV Experienced Management Team with Robust National Operating Platform Committed to Sustainable Dividends Strong, Flexible Balance Sheet & Capital Structure Growth Initiatives Include Acquisitions, Development and Redevelopment Opp

46. Slide 46: InvenTrust Properties

    Inventrust Properties

47. Slide 47: Why Change the Name from Inland American to InvenTrust Properties?

    Why Change the Name from Inland American to InvenTrust Properties? • Creates Clarity in the Market  Some vendors, tenants, lenders, and business partners assumed that Inland Group & Inland American were the same company  For example – tenant lease or property acquisition negotiations  Investors a

48. Slide 48: What Did the Hotel Select Service Sale Provide Stockholders?

    What Did the Hotel Select Service Sale Provide Stockholders? • Select Service Transaction  Closed on the sale of 52 select service hotels for $1.1 billion in Q4 ‘14  Robust, competitive auction process  Net proceeds from the transaction = approximately $480 million  Aligned with both Xenia’s and

49. Slide 49: What Did the Xenia Hotels & Resorts Spin-Off Provide Stockholders?

    What Did the Xenia Hotels & Resorts Spin-Off Provide Stockholders? • Spin-off and listing of Xenia occurred in early Feb  Ticker symbol “XHR” on the New York Stock Exchange • Benefit to Stockholders  Meaningful liquidity option provided to stockholders  Potential value appreciation  Recently add

50. Slide 50: Timing of Strategy Execution?

    Timing of Strategy Execution? • What We Can’t Predict  Interest Rates?  Market Direction?  Market Volatility?  China Issues? • But Strong Business Fundamentals Do Exist  Household Formation on the Rise  No Supply Growth in Retail  NOI Increasing  Market Tailwinds in Student Housing 49

51. Slide 51: Appendix

    Inventrust Properties Appendix

52. Slide 52: InvenTrust Management Team

    InvenTrust Management Team Tom McGuinness Jack Potts Michael Podboy Anna Fitzgerald President & CEO EVP - CFO EVP - CIO EVP - CAO Travis Roberts David Collins Scott Wilton President of EVP – Portfolio EVP – General University House Management Counsel & Secretary 51

53. Slide 53: GAAP to Non-GAAP Reconciliations

    GAAP to Non-GAAP Reconciliations Three Months Ended Six Months Ended June 30, June 30, 2015 (In Thousands) 2015 (In Thousands) Net Income 62,067 67,888 Add: Depreciation and Amortization 36,645 85,581 Depreciation and Amortization related to investment in unconsolidated entities 3,132 6,224 Provisio

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