Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Q1 2024 Earnings Presentation
34 slides from Inventrust Properties's earnings presentation, May 1, 2024
Slide 1: Investor Presentation Q1 2024
Kyle Marketplace | MSA: Austin INVESTOR PRESENTATION Q1 2024
Slide 2: Forward-Looking Statements Disclaimer
INTRODUCTORY NOTES FORWARD-LOOKING STATEMENTS DISCLAIMER Forward-Looking Statements in this presentation, which are not historical facts, are IVT cautions you not to place undue reliance on any forward-looking statements, forward-looking statements within the meaning of the Private Securities Litiga
Slide 3: Overview
Plantation Grove | MSA: Orlando OVERVIEW
Slide 4: Company Overview
COMPANY OVERVIEW Portfolio Statistics 63 95% 87% 74 10.4M 165K Retail Properties Sun Belt1 Grocery Anchored1,2 Avg. TAP Score Total GLA Avg. Center Size (Peer Average = 50%)3 (Peer Average = 85%)3 (Peer Average = 68)3 2024 Guidance Long-Term Targets $1.67 - $1.71 5.0x - 6.0x 2024 Core FFO Net Debt-T
Slide 5: A Simple and Focused Investment Opportunity
A SIMPLE AND FOCUSED INVESTMENT OPPORTUNITY Sun Belt Markets with High-Performing, Grocery- Strong, Persistent Migration Anchored Portfolio • Sector-leading Sun Belt • 87% of NOI derived from centers concentration of 95% with a grocery presence • Attractive demographic trends – • Long-term embedded,
Slide 6: Strong Fundamentals and Sector Tailwinds: Low Supply
STRONG FUNDAMENTALS AND SECTOR TAILWINDS Historically low supply STRIP CENTER SUPPLY GROWTH1 3.0% Year-Over-Year 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% ’24 to ’28 SUPPLY GROWTH PER YEAR BY ASSET TYPE1 Strip Center Supply Growth Significantly Below Other Asset Classes 2.5% 2.0% 1.5% Investor Presentation 1.0%
Slide 7: Strong Fundamentals and Sector Tailwinds: Sun Belt Demographics
STRONG FUNDAMENTALS AND SECTOR TAILWINDS Robust Sun Belt demographics and essential retail dynamics driving long-term growth TOP U.S. GROWTH MARKETS1 Current and Target Estimated Annualized NOI Growth ‘24 to ‘28 1 Sun Belt Markets 3.6% 3.5% 3.5% 3.4% 3.3% 3.1% 3.1% 3.0% 3.0% 3.0% Austin Nashville Mi
Slide 8: 2024 First Quarter Highlights
2024 FIRST QUARTER HIGHLIGHTS Operating Results Financial Performance 4.1% $19.61 90% $0.44 5.1x 28% SPNOI Growth ABR Per SF1 Retention Rate Core FFO Net Debt-To- Net Leverage Adjusted EBITDA2 Ratio3 96.3% 98.6% 92.1% Leased Occupancy Anchor Tenant Leased Small Shop Leased $421M $0.91 Occupancy Occu
Slide 9: Portfolio
Sonterra Village | MSA: San Antonio PORTFOLIO
Slide 10: Sun Belt Focused
SUN BELT FOCUSED Clustered portfolio brings operational efficiencies and detailed market knowledge Established centers with necessity-based tenants drive performance in all economic conditions 1 InvenTrust Portfolio by Percentage of ABR DC Metro 3% Richmond 1% Raleigh / Durham Sun Belt Charlotte 7%
Slide 11: High Quality Assets
HIGH QUALITY ASSETS Established Establishedcenters centerswith with necessity-based tenantsdrive necessity-based tenants driveperformance performancein in allall economic economic conditions conditions Rio Pinar Plaza | Orlando, FL Shops at Arbor Trails | Austin, TX Sarasota Pavilion | Tampa, FL Sho
Slide 12: Essential Retail Dominates Merchandise Mix
ESSENTIAL RETAIL DOMINATES MERCHANDISE MIX Recession resistant tenants with limited exposure to distressed tenants Established centers with necessity-based tenants drive performance in all economic conditions TOP 15 TENANTS # Tenant Credit Rating (S&P) # of Leases % of ABR RECENTLY EXECUTED 1 BBB 15
Slide 13: Portfolio Composition
PORTFOLIO COMPOSITION Diverse and balanced tenant mix provides durable cash flows Established centers with necessity-based tenants drive performance in all economic conditions Tenant Composition Anchor & Small Shop Composition Total Portfolio Composition % of ABR % of ABR % of ABR1 13 Other Retail /
Slide 14: Healthy Leasing Activity Continues
HEALTHY LEASING ACTIVITY CONTINUES Portfolio is experiencing unprecedented demand and occupancy levels Established centers with necessity-based tenants drive performance in all economic conditions LEASED OCCUPANCY 96.1% 96.2% 96.3% 93.9% 92.8% 2020 2021 2022 2023 Q1 ‘24 ABR PSF $19.48 $19.61 $19.08
Slide 15: Growing Asset Base Through Acquisitions
GROWING ASSET BASE THROUGH ACQUISITIONS Acquiring necessity-based retail assets in the Sun Belt Established centers with necessity-based tenants drive performance in all economic conditions MOORES MILL THE PLANT THE SHOPPES AT DAVIS LAKE MSA: Atlanta, GA MSA: Phoenix, AZ MSA: Charlotte, NC • Purchas
Slide 16: Disciplined Redevelopment Program
DISCIPLINED REDEVELOPMENT PROGRAM Enhancing the consumer experience by revitalizing properties PAVILION at LaQUINTA – La Quinta, CA SOUTHERN PALM CROSSING - Miami, FL BUCKHEAD CROSSING – Atlanta, GA Status: Active Status: Active Status: Active Est. Completion Date: 2024 Est. Completion Date: 2024 Es
Slide 17: Environmental, Social, and Governance
Cary Park Town Center | MSA: Raleigh ENVIRONMENTAL, SOCIAL, AND GOVERNANCE
Slide 18: 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 • InvenTrust named a “Top Workplace in • InvenTrust places a strong emphasis on its management systems installed Chicago” by The Chicag
Slide 19: ESG Goals and Progress
ESG GOALS AND 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 an
Slide 20: Strong and Experienced Board of Directors
STRONG AND EXPERIENCED BOARD OF DIRECTORS Julian E. Whitehurst • Former CEO and President of National Retail Properties, Inc. InvenTrust’s Board of Directors (the “Board”) Chairperson since 2023 • Previously served as COO of National Retail Properties, Inc. from 2004 to 2017 Director since 2016 • Pr
Slide 21: Balance Sheet and 2024 Outlook
The Parke | MSA: Austin BALANCE SHEET AND 2024 OUTLOOK
Slide 22: Investment Grade Balance Sheet
INVESTMENT GRADE BALANCE SHEET1 BBB- / Stable $421 million 5.1x2 Fitch Liquidity Net Debt-to-Adjusted EBITDA 4.3x 4.3% 3.7 Years3 Fixed Charge Coverage Weighted Average Interest Rate Weighted Average Maturity DEBT MATURITY SCHEDULE1,2 Secured ($ Millions) $282 Unsecured $226 $200 $200 $250 $88 Inves
Slide 23: Conservative Leverage Profile
CONSERVATIVE LEVERAGE PROFILE InvenTrust maintains a low leverage business model NET DEBT-TO-ADJUSTED EBITDA1 6.8x 6.1x 5.9x Peer Average : 5.6x 5.2x 4.8x 4.9x 4.9x NET LEVERAGE RATIO (NET DEBT + PREFERRED AS % OF GROSS ASSETS) 1 40% 41% 37% 37% Peer Average : 36% 30% 30% 27% Investor Presentation 1
Slide 24: Sustainable Dividend Growth
SUSTAINABLE DIVIDEND GROWTH Steady dividend increase with additional capacity to grow in the future HISTORICAL AND PROJECTED DIVIDEND PAYMENTS $0.91 Aggregate dividends declared as a percentage of Core FFO = 51%1 $0.86 $0.82 $0.78 $0.76 $0.74 $0.72 $0.70 $0.68 Investor Presentation 2016 2017 2018 20
Slide 25: InvenTrust Delivers Cash Flow Growth
INVENTRUST DELIVERS CASH FLOW GROWTH 2024 Updated Guidance Net Income Per Diluted Share NAREIT FFO Per Diluted Share INITIAL UPDATED INITIAL UPDATED $0.04 to $0.10 $0.06 to $0.12 $1.69 to $1.75 $1.71 to $1.77 Core FFO Per Diluted Share SPNOI Growth INITIAL UPDATED INITIAL UPDATED $1.66 to $1.70 $1.6
Slide 26: Long-Term Growth Profile
LONG-TERM GROWTH PROFILE Stable and durable components of annual cash flow growth EMBEDDED RENT ESCALATIONS ESCALATING LEASING SPREADS FOR NEW AND RENEWALS INCREMENTAL OCCUPANCY INCREASES REDEVELOPMENT Investor Presentation ACQUISITIONS Bay Landing | MSA: Tampa/St. Petersburg 26
Slide 27: Appendix
Cyfair Town Center | MSA: Houston APPENDIX
Slide 28: Non-GAAP Measures and Definition of Terms
NON-GAAP MEASURES AND DEFINITION OF TERMS Adjusted EBITDA The Company’s non-GAAP measure of Adjusted EBITDA excludes gains (or losses) resulting from debt extinguishments, straight-line rent adjustments, amortization of above and below market leases and lease inducements, and other unique revenue an
Slide 29: Reconciliation of Non-GAAP Measures: Same Property NOI
RECONCILIATION OF NON-GAAP MEASURES Same Property NOI Note: in thousands. Three Months Ended March 31 2024 2023 Income Minimum base rent $ 38,538 $ 37,739 Real estate tax recoveries 7,612 8,094 Common area maintenance, insurance, and other recoveries 7,100 6,533 Ground rent income 3,877 3,954 Short-
Slide 30: Reconciliation of Net Income to Same Property NOI
RECONCILIATION OF NET (LOSS) INCOME TO SAME PROPERTY NOI Same Property NOI Note: in thousands. Three Months Ended March 31 2024 2023 Net income $ 2,900 $ 1,133 Adjustments to reconcile to non-GAAP metrics: Other income and expense, net (858) (447) Equity in losses of unconsolidated entities — 663 In
Slide 31: Reconciliation of Non-GAAP Measures: NAREIT FFO & Core FFO
RECONCILIATION OF NON-GAAP MEASURES NAREIT FFO & Core FFO Note: in thousands. Three Months Ended March 31 2024 2023 Net income $ 2,900 $ 1,133 Depreciation and amortization related to investment properties 27,946 26,543 Unconsolidated joint venture adjustments (a) — 342 Nareit FFO Applicable to Comm
Slide 32: Reconciliation of Non-GAAP Measures: EBITDA & Adjusted EBITDA
RECONCILIATION OF NON-GAAP MEASURES EBITDA & Adjusted EBITDA Note: in thousands. Three Months Ended March 31 2024 2023 Net income $ 2,900 $ 1,133 Interest expense, net 9,634 9,509 Income tax expense 133 126 Depreciation and amortization 28,168 26,758 Unconsolidated joint venture adjustments (a) — 42
Slide 33: Reconciliation of 2024 Guidance Range
RECONCILIATION OF 2024 GUIDANCE RANGE Estimated net income per share to estimated NAREIT FFO and Core FFO per diluted share Note: in thousands. The following table provides a reconciliation of the range of the Company's 2024 estimated net income per diluted share to estimated Nareit FFO and Core FFO
Slide 34: 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
InvenTrust Properties — Q1 2024 Earnings Presentation on 6ix