Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Investor Presentation (November 2023)
33 slides from Inventrust Properties's investor presentation, November 2023
Slide 1: Investor Presentation Q3 2023
Escarpment Village | Austin, TX INVESTOR PRESENTATION Q3 2023 Essential Retail. Smart Locations. ®
Slide 2: Introductory Notes
Introductory Notes Cautionary Note About Forward-Looking Statements InvenTrust intends that such forward-looking statements be subject to the safe Forward-Looking Statements in this presentation, which are not historical facts, are harbors created by Section 27A of the Securities Act of 1933, as ame
Slide 3: Overview
Lakeside & Lakeside Crossing | Orlando, FL Overview
Slide 4: Overview: Portfolio Statistics and 2023 Guidance
Overview 2023 Guidance & Portfolio Statistics Long-Term Targets 62 Retail Properties $1.63-$1.65 2023 Core FFO Per Diluted Share 95% Growth of 3% To 5% Sun Belt 1 87% Grocery-Anchored 1, 2 4.25%-5.00% 2023 SP-NOI Growth 74 Avg. TAP Score (Peer Average = 68) 3 5.0x-6.0x Net Debt-To- Adjusted EBITDA 1
Slide 5: Simple and Focused Strategy
Simple and Focused Strategy Sun Belt Markets Poised High-Performing, Grocery- For Growth Anchored Portfolio • Sector-leading Sun Belt • 87% of NOI derived from centers concentration of 95% with a grocery presence • Attractive demographic trends – • Essential retail tenants drive jobs, population, ed
Slide 6: Q3 2023 Highlights
Q3 2023 Highlights Operating Results Financial Performance $19.36 ABR Per SF1 4.4% 2023 YTD SP-NOI Growth 95.1% Q3 2023 Leased Occupancy 5.2x Net Debt-To- Adjusted EBITDA3 96.6% Q3 2023 Anchor Space Leased Occupancy 27% Net Leverage Ratio4 92.4% Q3 2023 Small Shop Space Leased Occupancy $457M Total
Slide 7: Portfolio
The Shops at Arbor Trails | Austin, TX Portfolio 7
Slide 8: Sun Belt Focused
Sun Belt Focused Concentrated portfolio in markets with strong demographic trends InvenTrust Portfolio by Percentage of ABR DC Metro 3% Richmond 2% Raleigh / Durham Charlotte 7% 5% Orlando 5% Atlanta Miami/Fort Southern CA Houston 10% Lauderdale/ West San 11% Palm Beach 12% Antonio 10% 3% Dallas/For
Slide 9: Demographic Tailwinds
Demographic Tailwinds TOP U.S. GROWTH MARKETS InvenTrust Markets Are Corporate Magnets2 Estimated Annualized Retail M-RevPAF Growth ‘23 to ‘271 Nashville 3.7% Atlanta 3.6% Austin 3.5% Dallas / Fort Worth 3.5% Phoenix 3.5% Charlotte 3.4% Raleigh/ Durham 3.4% Miami 3.2% Fort Lauderdale 3.1% MSA FAVORA
Slide 10: Necessity-Based Centers Continue to Thrive
Necessity-Based Centers Continue to Thrive Last-Mile Solution • Local properties - critical & attractive Essential Retail component in the last-mile solution • Consumer goods and services that • Curbside pickup & BOPIS programs satisfy needs for day-to-day living more efficient than e-grocery option
Slide 11: High Quality Portfolio
High Quality Portfolio Tenant mix of daily needs drives performance in all economic conditions Old Grove Marketplace | San Diego, CA Kyle Marketplace | Austin, TX Sarasota Pavilion | Tampa, FL Shops at the Galleria | Austin, TX Neighborhood Center Community Center Power Center w/ Grocer Power Center
Slide 12: Essential Retail
Essential Retail Recession resistant “essential retail” tenants drive 60% of total ABR TOP 15 TENANTS % OF ABR # Tenant Credit Rating (S&P) # of Leases % of ABR Essential Retail 60.4% 1 BBB 151 5.2 Grocery / Drug 20.0 2 N/A 142 3.4 Health & Beauty Services 11.2 Medical 9.2 3 A 14 2.6 Off Price 5.2 4
Slide 13: Robust Leasing Pipeline of Essential Tenants
Robust Leasing Pipeline of Essential Tenants Portfolio is experiencing unprecedented demand HISTORICAL LEASED OCCUPANCY RECENTLY EXECUTED LEASES 96.1% 96.1% 96.2% BBBY = 110 bps of Anchors leased occupancy 95.1% 93.9% 92.8% 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 ABR PER SF $19.36 $19.18 Small Shop $
Slide 14: Recent Acquisitions in Sun Belt Markets
Recent Acquisitions in Sun Belt Markets Purchasing necessity-based retail assets in the Sun Belt delivering stable cash flow THE SHOPS AT ARBOR THE SHOPPES AT DAVIS ESCARPMENT VILLAGE BAY LANDING EASTFIELD VILLAGE TRAILS LAKE MSA: Austin, TX MSA: Austin, TX MSA: Fort Myers, FL MSA: Charlotte, NC MSA
Slide 15: Acquisition of PGGM Joint Venture Properties
Acquisition of PGGM Joint Venture Properties JV PORTFOLIO OVERVIEW – Acquired January 2023 STONE RIDGE BAY BLACKHAWK CYFAIR STABLES PROPERTY MARKET3 COLONY TOWN CENTER TOWN CENTER TOWN CENTER MSA San Antonio, TX Houston, TX Houston, TX Houston, TX Houston, TX Leased Occupancy 94.2% 93.7% 99.1% 92.3%
Slide 16: Disciplined Redevelopment Program
Disciplined Redevelopment Program Using capital to enhance the consumer experience, focused on revitalization and anchor repositioning SOUTHERN PALM CROSSING - Miami, FL CYFAIR TOWN CENTER - Cypress, TX PRE-DEVELOPMENT (15 Projects) Status: Active Status: Completed Status: Pre-Development Estimated
Slide 17: Balance Sheet & 2023 Outlook
Old Grove Marketplace | San Diego, CA Balance Sheet & 2023 Outlook
Slide 18: Investment Grade Balance Sheet
Investment Grade Balance Sheet Balance Sheet Highlights1: TOTAL MARKET CAPITALIZATION4 • Fitch affirmed investment grade rating of ‘BBB-’ with a stable outlook in 8% August ‘23 Secured Debt • $457M in liquidity includes $107M of cash and $350M remaining capacity on revolving credit facility 26% 66%
Slide 19: Conservative Leverage Profile
Conservative Leverage Profile InvenTrust will maintain a low leverage business model NET DEBT-TO-ADJUSTED EBITDA1 6.8x 6.3x Peer Average : 5.6x 5.8x 5.2x 5.1x 5.3x 5.3x 4.8x NET LEVERAGE RATIO (DEBT + PREFERRED AS % OF GROSS ASSETS) 1 38% 40% 37% 37% Peer Average : 35% 35% 30% 27% 28% 1. Source :Aug
Slide 20: Dividend Policy
Dividend Policy Steady dividend increase with additional capacity to grow in the future HISTORICAL & PROJECTED DIVIDEND PAYMENTS 5% Aggregate dividends declared as a Increase percentage of Core FFO = 52%2 5% Increase $0.86 $0.82 $0.78 $0.76 $0.74 $0.72 $0.70 $0.68 2016 2017 2018 2019 2020 2021 2022
Slide 21: 2023 Outlook and Guidance
2023 Outlook and Guidance Components of Annual Growth 2023 FULL YEAR GUIDANCE1 Net Income per diluted share $0.05 to $0.08 $1.66 to $1.69 NAREIT FFO per diluted share Core FFO per diluted share $1.63 to $1.65 3% to 5% YoY growth SPNOI Growth 4.25% to 5.00% 1. Full year guidance assumptions are provi
Slide 22: Environmental, Social and Governance
Kyle Marketplace | Austin, TX Environmental, Social and Governance
Slide 23: ESG Overview
ESG Overview InvenTrust is committed to the principles of ESG to create long-term shareholder value Environmental Social Governance • 100% of properties have energy management systems • InvenTrust named a “Top Workplace in Chicago” by The • InvenTrust places a strong emphasis on its governance insta
Slide 24: ESG Goals & Progress
ESG Goals & Progress InvenTrust set measurable goals to own and manage environmentally-friendly shopping centers; create innovative and inclusive work and community environments; and execute processes, reporting, and training to conduct business in a manner that upholds high standards of ethics and
Slide 25: Strong & Experienced Board of Directors
Strong & Experienced Board of Directors Julian E. Whitehurst • Former CEO and President of National Retail Properties, Inc. InvenTrust’s Board of Directors (the “Board”) Chairman since 2023 • Previously served as COO of National Retail Properties, Inc. from 2004 to 2017 Director since 2016 • Practic
Slide 26: Appendix
Shops At Arbor Trails | Austin, TX Appendix 26
Slide 27: Non-GAAP Measures and Definition of Terms
Non-GAAP Measures and Definition of Terms General In addition to measures prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP” measures), this presentation contains and refers to certain non-GAAP measures. The Company did not consider its non-G
Slide 28: Reconciliation of Non-GAAP Measures: Same Property NOI
Reconciliation of Non-GAAP Measures Same Property NOI Note: in thousands. Three Months Ended September 30 Nine Months Ended September 30 2023 2022 2023 2022 Income Minimum base rent $ 36,597 $ 35,528 $ 101,724 $ 97,363 Real estate tax recoveries 6,997 7,738 20,051 19,948 Common area maintenance, ins
Slide 29: Reconciliation of Net (Loss) Income to Pro Rata Same Property NOI
Reconciliation of Net (Loss) Income to Pro Rata Same Property NOI Same Property NOI Note: in thousands. Three Months Ended September 30 Nine Months Ended September 30 2023 2022 2023 2022 Net (loss) income $ (822) $ 936 $ 2,379 $ 52,358 Adjustments to reconcile to non-GAAP metrics: Other income and e
Slide 30: Reconciliation of Non-GAAP Measures: EBITDA
Reconciliation of Non-GAAP Measures EBITDA and Adjusted EBITDA Note: in thousands. Three Months Ended September 30 Nine Months Ended September 30 2023 2022 2023 2022 Net (loss) income $ (822) $ 936 $ 2,379 $ 52,358 Interest expense, net 9,555 7,689 28,441 18,129 Income tax expense 128 96 388 269 Dep
Slide 31: Reconciliation of Non-GAAP Measures: FFO
Reconciliation of Non-GAAP Measures NAREIT FFO and Core FFO Note: in thousands. Three Months Ended September 30 Nine Months Ended September 30 2023 2022 2023 2022 Net (loss) income $ (822) $ 936 $ 2,379 $ 52,358 Depreciation and amortization related to investment properties 30,094 23,826 84,714 70,4
Slide 32: Reconciliation of 2023 Guidance Range
Reconciliation of 2023 Guidance Range Estimated net income per share to estimated NAREIT FFO and Core FFO per diluted share (Unaudited, dollars in thousands, except per share amounts) Current Previous Net Income per diluted share (1) $0.05 — $0.08 $0.06 — $0.11 NAREIT FFO per diluted share (2) $1.66
Slide 33: InvenTrust Properties Corp. (IVT)
INVENTRUST Corporate Office 3025 Highland Parkway | Suite 350 PROPERTIES Downers Grove, IL 60515 CORP. (IVT) 630.570.0700 info@InvenTrustProperties.com Investor Relations 630.570.0605 InvestorRelations@InvenTrustProperties.com Transfer Agent Computershare 855.377.0510 Investor Presentation Quarterly
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