Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Inland American Real Estate Trust — Corporate Update (March 2014)
19 slides from Inventrust Properties's corporate update, Mar 21, 2014
Slide 1: Financial Advisor Webcasts to Discuss: Self-Management & "Dutch" Tender Offer
Exhibit 99.1 Financial Advisor Webcasts to Discuss: Self-Management & “Dutch” Tender Offer March 20, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We intend that these forward- looking statements be subject to the safe harbor provisions created by Section 27A of the Securities Act of 193
Slide 3: Note Regarding our Self-Tender Offer
Note Regarding our Self-Tender Offer The summary informationprovidedin this presentationis neitheran offerto purchase nor a solicitation of an offer to sell shares of the common stock of Inland American Real Estate Trust, Inc. Our self-tender offer is made solely pursuant to the Offer to Purchase, d
Slide 4: Business Manager Self-Management Details
Business Manager Self-Management Details th • On March 13 , Inland American announced that functions previously performed by its business manager are now being performed by the REIT. Effective March 1, 2014 • The REIT mutually agreed with its business manager to: Terminate the management agreement H
Slide 5: Property Managers Self-Management Details
Property Managers Self-Management Details The REIT also hired certain employees of our property managers and assumed responsibility for performing their significant functions: Property-level accounting Lease administration Leasing Marketing, and Construction It should be noted the property managemen
Slide 6: Self-Management General Details
Self-Management General Details • The transactions and agreements were unanimously approved by the entire Board of Directors. • Inland American’s board or executive management team remains unchanged. • This event is expected to be seamless to Inland American’s: Stockholders & their financial represe
Slide 7: Financial Benefits
Financial Benefits • The self-management transition includes several benefits for the stockholders: The elimination of the quarterly advisory fee paid by the REIT to its business manager A lower property management fee for 2014, and The REIT will not pay an internalization or self-management fee in
Slide 8: FAQs for Self-Management
FAQs for Self-Management Q: What was the cost of the transaction? What did the price include? Inland American will not pay an internalization or self-management fee in connection with the transactions. Affiliates of The Inland Group will be reimbursed for certain transaction- and employee-related ex
Slide 9: FAQs for Self-Management
FAQs for Self-Management Q: How accretive will self-management be to the REIT? We expect that the self-management transaction will positively impact our net income and funds from operations. We cannot, however, estimate the impact due to uncertainties regarding the anticipated transition-related exp
Slide 10: FAQs for Self-Management
FAQs for Self-Management Q: Will the self-management affect my monthly distribution? No. Our monthly distributions are funded through cash flow from operations, distributions, unconsolidated joint ventures and gains on sales of properties. At this time the Board does not anticipate any changes to th
Slide 11: Dutch Tender Offer Details
Dutch Tender Offer Details th • On March 14 , we commenced a $350 million modified “Dutch Auction” tender offer. • When we announced the net lease transaction in August, we were confident that we would be able to provide a liquidity opportunity for our stockholders. We are pleased to be living up to
Slide 12: Dutch Tender Offer Details Continued
Dutch Tender Offer Details Continued • The price range will be specified by the tendering stockholders and will not be greater than $6.50 or less than $6.10 per share in ten cent increments. • The offer will expire at 5:00 PM ET on April 11, 2014, a time frame that may be extended. • Promptly after
Slide 13: FAQs for Dutch Tender Offer
FAQs for Dutch Tender Offer Q: Can the number of shares purchased in this offer be increased? Yes, in two ways. In accordance with the rules of a tender offer, we may increase the number of shares accepted for payment by up to 2% of the outstanding Shares without amending or extending the offer. Thi
Slide 14: FAQs for Dutch Tender Offer
FAQs for Dutch Tender Offer Q: Why not just open up a general share repurchase program? The Board evaluated several alternatives, and determined that a Dutch tender is in the best interests of the Company. Reinstating the SRP was an option the Board considered, but there are limits to the amount the
Slide 15: FAQs for Dutch Tender Offer
FAQs for Dutch Tender Offer Q: How was the modified “Dutch Auction” pricing range determined? The price range was determined based on discussions between our management and our board of directors. Our board considered, among other things: The fact that we have not provided a general repurchase progr
Slide 16: FAQs for Dutch Tender Offer
FAQs for Dutch Tender Offer Q: What if stockholders tender more than $350 million and the offer is not increased? If stockholders tender more than $350 million, we will purchase shares on the following basis: First, we will purchase all shares tendered by “odd lot holders” (stockholders holding less
Slide 17: FAQs for Dutch Tender Offer
FAQs for Dutch Tender Offer Q: Will you repurchase shares after the offer is completed? We intend to reinstate our currently suspended SRP at some point later, during this year. Additionally, while we have no current plans to do so, depending on the results of the offer, we may expand our current SR
Slide 18: SEC Filings
SEC Filings A Schedule TO discussing the “Dutch” Tender Offer and the 8-K discussing the self-management transaction have been filed with the SEC, we encourage you to read and review both files for complete information on this events. Both filings are available on our website at inlandamerican.com 1
Slide 19: Additional Q&As
Additional Q&As March 20, 2014
Inland American Real Estate Trust — Corporate Update (March 2014) on 6ix