Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Inland American Real Estate Trust — Q1 2012 Earnings Presentation
41 slides from Inventrust Properties's earnings presentation, May 18, 2012
Slide 1: Inland American Real Estate Trust, Inc.
Inland American jo REAL ESTATE TRUST, INC
Slide 2: Forward-Looking Statements
Forward-Looking Statements plans or predictions ofthe fumuce, and are typically identified by such words as "believe, ‘anticipate "intend," "may,""vnll,' "should" and "could," We intend that such forward-looking statementsbe subjectto the safe harbor provisions created by Section 27A of the Secusiti
Slide 3: Robert Parks, Chairman of the Board
Robert Parks Chairman of the Board Inland American
Slide 4: Inland American Highlights
Inland American Highlights * Funds from operations (FFO) o Full year 2011 - $0.516 per share o 1% qtr. 2012 - $0.125 per share * Same-store net operating income (NOT) o Up 2.4% for the full year 2011 o Up 1.1% in the 1 qtr. of 2012
Slide 5: Inland American Highlights
Inland American Highlights ¢ For the full year 2011, we paid $428.7 million or $0.50 a share in distributions all from cash flow from operations and joint venture distributions * We believe our dividend in 2012 is sustainable * Some real estate fundamentals are slowly improving * Acquired 5 new uppe
Slide 6: Diversification - Balances Risk Exposure
Ind/Dist Apartments $1.1B $673M. Student Housing $215M 2% 0, . oe . . As of 3/31/12, based 28% Diversification- Balances Risk Exposure yyiaqeciaedcon woetvanes j Inland American 6
Slide 7: 970 properties across the country
38 States + D.C. _ Upto 2million sg. ft. [1 2+ tos million sq. ft. over 5 million sq. ft. 970 properties actoss the country © 49.3million sq. fe. of retail, office & industrial © 9,563 multi-family units Asof3 31/12 © 17,899hoteltooms Inland American: 7
Slide 8: Our 2012 Strategic Business Plan
Our 2012 Strategic Business Plan 1. Maintain a solid, conservative balance sheet o Manageable debt maturities o Well-positioned capital structure to capture near-term acquisition opportunities 2. Produce a sustainable distribution © 6.9% annualized yield on $7.22 estimated per share value to over 18
Slide 9: Our 2012 Strategic Business Plan
Our 2012 Strategic Business Plan 3. Refine our high-quality portfolio o Sell less strategic assets o Acquire quality assets in high performing asset classes or geographic regions 4. Continue to differentiate from our peers to drive occupancy and rents o We bring segment expertise to all our properti
Slide 10: Upper Management Experience
Upper Management Experience Average Years of Experience in Each Segment 35 4 30 30 26 26 25 + 20 21 20 ~ 15 5 10 + 5 4 : Retail Lodging , Student "Multi-Family Office & Housing Industrial Per company calanlations
Slide 11: Lodging — Industry Outlook
Lodging — Industry Outlook Limited supply should drive performance to prior peak by 2015 * Steady growth forecasted for RevPAR* in 2012 * Demand/supply gap expanding * Upper upscale segment should see strong revenue growth *RevPAR calculated by multiplying a hotel's average daily room rate by its oc
Slide 12: Lodging portfolio by brand
-p aoing sOdeIne t By Brand * 100 Properties — 17,899 rooms * 27 states artott 53% Upper Upscale 34% Inland America
Slide 13: Griffin Gate Marriott Resort & Spa — Lexington, KY
gaarriott Griffin Gate Marriott Resort & Spa — Lexington, KY + 409 resort-style rooms in the heart of Bluegrass Country with a full-service spa * 163-acre golf course set among the world-famous equine breeding grounds of KY * 60,000 square feet of meeting and banquet space j Inland American 14
Slide 14: San Francisco Airport Marriott Waterfront — Burlingame, CA
ate wl etiels : 1 | Le = a samt Francisco Airport Marriott Waterfront — Burliieame, CA * 685 guestrooms and over 28,000 square feet of meeting space + Located within a top five hotel market + Adjacent to SF International Airport, between SF and Silicon Valley jl Inland American 15
Slide 15: Atlanta Cobb/Galleria hotel
* 14 floors, 521 rooms and suites * Located in Cobb/Galleria market of Atlanta + Directly connected to the Convention Centre * Complete spa services and amenities * 60,000 square feet of meeting and banquet space Inland American 16
Slide 16: Renaissance Arboretum — Austin, TX
Renaissance Arboretum— Austin, TX * 10-floor atrium hotel + 492 rooms and suites * Located in the Arboretum area of Austin * 65,000 square feet of meeting and banquet space j Inland Ame n 17
Slide 17: Hilton St. Louis Downtown
Hilton St. Louis Downtown * 195 rooms in an eight-story historic building + Located in the center of St. Louis + Within blocks of: + The Gateway Arch * St. Louis Convention Center + Edward Jones Dome + Busch Stadium j Inland American 1s
Slide 18: Lodging — 2012 Strategies
Lodging — 2012 Strategies * Balance Portfolio o Expand ownership of premium branded upper upscale hotels to further enhance our portfolio o Look for high barriers-to-entry in top-25 urban markets * Harvest Positive Fundamentals o Industry RevPAR expected to increase 4 — 8% in 2012 o Historically low
Slide 19: Student Housing — Industry Outlook
Student Housing-— Industry Outlook An increasing number of universities are searching for real estate partners to fund and develop properties for their housing needs. * College enrollment is expected to increase 13% in the next five years * Percentage of students living on campus = 15% « Average age
Slide 20: Students want the comforts of home, freedom and social atmosphere
¢ Students want the comforts of home, freedom and social atmosphere * Different needs and requirements vs. other residential properties * By-the-bed leasing * Utilities included ¢ Fully furnished * Premium amenities * Sustainability * Move-ins 1x a year Inland American:
Slide 21: Marketing the lifestyle
* Marketing the lifestyle * Resident events / Maverick Program * High expectations are met by operational excellence UNIVERSITY HOUSE Inland Am 22
Slide 22: Mixed-use, high rise student property
= Mixed-Use, high rise student property = Adjacentto University of Pennsylvania’s campus = Opened in Fall 2008 = $93 million development = 100% occupied and pre-leased jl Inland American the radian
Slide 23: 4 blocks from University of Alabama — Birmingham's campus
fl! = 4blocks from University of Alabama — Birmingham’s campus = 1,2,3, and 4 bedroom configurations = Master lease agreement with University 3 = Fully furnished with all utilities included = = Over 96% occupied and pre-leased = 1 4th ST REET land American 24
Slide 24: Blocks from University of Florida's campus, Gainesville
6 blocks from University of Florida’s campus in Gainesville, Florida $44.5 million project Opened in Fall 2008 98% occupancy and 100% pre-leased for Fall 2012 =| = = = = 13' STREET inland American 25
Slide 25: Opening Fall 2012 units and beds
Opening Fall 2012 416 units and 995 beds Across from University of Central Florida in Orlando Project budget = $67 million 94% pre-leased jl Inland American 26
Slide 26: University House — Opening Fall 2013
UNIVERSITY HOUSE Opening Fall 2013 Mixed-use, student housing community located one block from California State University - Fullerton 350 units, 1,189 beds and 30,000 s.f. of ground floor retail 27
Slide 27: Student Housing Strategies
Student Housing Strategies * Continue to build the student housing portfolio with assets close to large universities * Create and strengthen relationships with universities, municipalities and local owners * Strengthen our University House brand * Create communities focused on innovative ideas and s
Slide 28: Multi-family performance: Same-Store Rev, Occupancy, NOI
Same-Store Rev Q1 2011 86%, Total Occupancy 92% Same-Store NOI QI 2012 93% Q12011
Slide 29: Retail — Industry Outlook
Retail — Industry Outlook Retail Fundamentals Starting to Improve Across the Country * Financially healthy national retail tenants are focused on increasing store count * Discount retailers are well positioned to serve cost-conscious consumers ¢ Limited development projected in the near term should
Slide 30: Retail Performance: Lease Rollovers and Occupancy
10% 550%, 6.3% » ft Lease Rollovers $92.7 $91.0 $68.5, $68.4 0.1% 9.4% WN% 8g guy $60 UW a. 2012 2013 100% 97% 94% 91% Same-Store Rev Same-Store NOL 9Q12011 = Q1 2012 2014 2015 2016 Total Occupancy 94% 94% 92% ene 88% — Q1 2010 Q1 2011 Q1 2012 Inland American!
Slide 31: Office — Industry Outlook
Office-— Industry Outlook Changes Taking Place in Office Market Fundamentals * Office space per employee continues to shrink due to technology * Secondary & suburban markets still showing a decline — 20% average vacancy rates * Unemployment rate, despite the recent decline still an obstacle * Despit
Slide 32: Office Performance for the Quarter
Office Performance for the Qu 40% Lease Rollovers 30% 26.9% 20% 10% 6.9% 3.2% lal 2.5% 42% om |i orn | 2012 2013 2014 2015 2016 Same-StoreRev Same-Store NOI 0Q12011 wQ12012 100% Total Occupancy 97% 94% 94% tT 91% 88% ~ T , 7 Q1 2010 Q1 2011 Q1 2012
Slide 33: Industrial — Industry Outlook
Industrial — Industry Outlook Gateway Markets Have Been the First to Recover, but Other Regions are Still Struggling * New supply remains in check * Occupancy has improved over the last 2 years, but at the expense of rental rates * New property technologies creating obsolescence for older properties
Slide 34: Industrial Performance for the Quarter
Industrial Performance for the Quarter 40% Lease Rollovers $40 8 30% 923.0 522 $21.0 $30 (1.0%) $20.9 0.4% 20% $20 10% 8.6% 7.5% 9.5% a9 wo Bc @ o, aad % 4 2012 2013 2014 2015 2016 Same-Store Rev Same-Store NOL 9Q12011 = Q1 2012 0, 100% Total Occupancy 97% 95% Y 94% ee 1% 91% 88% — T : 1 Q1 2010 Q1
Slide 35: Condensed Balance Sheet
Condensed Balance Sheet 3/31/2012 12/31/2011 Investment properties $ 11,148,437 10,728,081 Less accumulated depreciation (1,385,531) (1,301,899) Net investment properties 9,762,906 9,426,182 Cash and restricted cash 262,389 316,607 Investment in marketable securities 318,738 289,365 Investment in un
Slide 36: Debt Maturities
ebt Maturities $3,000 Fixed w Variable $2,500 g $2,000 = S $1,500 | $1.0B $1,000 $786M $607M $578M. - we = lal ual — 2012 2013 2014 2015 2016 % of Total Debt as of 03/31/12 6.6% 16.5% 9.9% 9.4% 12.8%
Slide 37: FFO & NOI Breakdown
FFO & NOI Breakdown Three Months Ended 2012 2011 Funds from operations [$ 109,317 __$ 94,396 FFOper share $ 0.125 $ 0.111 FFO per share Guidance for 2012 - $0.50 to $0.51 Three Months Ended Segment NOI 2012 2011 Retail 74,746 67,460 10.8% Lodging 43,073 37,407 15.1% Office 33,130 33,669 -1.6% Indust
Slide 38: Shareholder Liquidity
Shareholder Liquidity * The timing will be determined by market conditions that are favorable for execution * We believe optimal long-term liquidity for our stockholders will be achieved by executing business strategies for each segment * Weare positioning each segment for potential listing, merger
Slide 39: Key Points & Themes to Remember
Key Points & Themes to Remember * Our overall cash flow and operating performance continues to improve * Lodging & multi-family will drive our results in 2012 + We believe we have a solid and achievable business strategy for the year, which we have already started to execute * Our debt maturities an
Slide 40: Q&A Session
Inland American jo REAL ESTATE TRUST, INC Q&A Session
Slide 41: GAAP Reconciliation Slide
GAAP Reconciliation Slide in 000s Three months ended Twelve months ended 3/31/2012 3/31/2011 12/31/2011 Net loss (30,210) (52,403) (309,545) Net (income) loss of noncontrolling interests (73) (2,224) (6,708) Net income floss) attributable to Company (30,283) (54,627) (316,253) Add: Depreciation and
Inland American Real Estate Trust — Q1 2012 Earnings Presentation on 6ix