Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Investor Presentation (February 2023)
34 slides from Inventrust Properties's investor presentation, February 2023
Slide 1: InvenTrust Properties Investor Presentation February 2023
InvenTrust Properties Investor Presentation February 2023 Scan for digital copy Essential Retail. Smart Locations.®
Slide 2: Introductory Notes
Introductory Notes Cautionary Note About Forward-Looking Statements Forward-Looking Statements in this press release, or made during the earnings call, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-l
Slide 3: Overview
Overview Lakeside & Lakeside Crossing MSA: Orlando, FL
Slide 4: Overview
Overview Portfolio Stats RETAIL PROPERTIES TOTAL GLA 1 AVG. CENTER SIZE AVG. TAP SCORE SUN BELT 3 GROCERY-ANCHORED 3, 4 (PEER AVERAGE = 68) 2 Long-Term Financial Targets & 2023 Guidance LONG-TERM TARGET LONG-TERM TARGET NET DEBT-TO-ADJUSTED EBITDA NET LEVERAGE RATIO 2023 CORE FFO PER DILUTED SHARE G
Slide 5: Simple and Focused Strategy
Simple and Focused Strategy Sun Belt Markets Poised High-Performing, For Growth Grocery-Anchored Sector-leading Sun Belt Portfolio concentration of 95% ® 86% of NOI derived from Attractive demographic centers with a grocery trends - Jobs, Population, presence Education & HHI Essential retail
Slide 6: Full Year 2022 Highlights
Full Year 2022 Highlights Portfolio Quality 2022 LEASED OCCUPANCY ABR PER SF 1 RETENTION RATE 2022 LEASING SPREADS 2022 ANCHOR SPACE 2022 SMALL SHOP SPACE LEASED OCCUPANCY LEASED OCCUPANCY Financial Performance Driving Growth2 NET DEBT-TO- NET LEVERAGE RATIO 3 TOTAL LIQUIDITY ADJUSTED EBITDA 2022 CO
Slide 7: Portfolio
Portfolio The Pointe at Creedmoor MSA: Raleigh / Durham, NC
Slide 8: Sun Belt Focused: Near-Term Income Stability, Long-Term Value
Sun Belt Focused: Near-Term Income Stability, Long-Term Value IVT has the highest Sun Belt concentration of assets at 95%1 IVT Portfolio by Percentage of NOI 2 Top 5 Markets by NOI 2 Austin Southern CA Atlanta Miami Dallas Top 5 Percentage of Total 19% 13% 11% 11% 10% 64% InvenTrust 1) Peers include
Slide 9: Demographic Tailwinds
Demographic Tailwinds IVT markets are corporate magnets1 Top U.S. Growth Markets Estimated Annualized M-RevPAF Growth ‘23 to ‘272 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% 3.1% MSA PROFILE CENTER PROFILE Fort Lauderdal
Slide 10: Grocery-Anchored Centers Continue to Thrive
Grocery-Anchored Centers Continue to Thrive Last-Mile Solution Necessity-Based • Local properties - critical & attractive 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 Performing Assets
High Quality Portfolio, High Performing Assets Tenant mix of daily needs retail drives performance in all economic conditions Old Grove Marketplace Neighborhood Center Community Center Kyle Marketplace MSA: San Diego, CA MSA: Austin, TX Trade Area 1 – 3 miles Trade Area 3 – 5 miles • 36 properties •
Slide 12: Essential Retail is Recession Resistant
Essential Retail is Recession Resistant 7 of our top 15 tenants are grocers, which drive traffic to our centers % of ABR Top 15 Tenants 43.6% Essential Retail Credit Rating # of # Tenant (S&P) Leases % of ABR Grocery/Drug 20.1 1 BBB 141 4.7 Medical 8.7 2 N/A 162 3.9 Banks 4.8 3 A 13 2.5 Office / Com
Slide 13: Robust Leasing Pipeline of High-Quality Tenants
Robust Leasing Pipeline of High-Quality Tenants Portfolio is experiencing unprecedented demand – 268 leases signed in 2022 totaling 1.3M SF of pro rata GLA Historical Leased Occupancy 1 Comparable Re-Leasing Spread 1 (Blended) 96.1% 94.7% 8% 93.9% 6% 92.8% 4% 0% 2019 2020 2021 2022 2019 2020 2021 20
Slide 14: Redevelopment: Infusing Capital to Enhance the Consumer Experience
Redevelopment: Infusing Capital to Enhance the Consumer Experience Modest and disciplined redevelopment program focused on revitalization and anchor repositioning Estimated Property Status Project Description Completion Redevelopment of a former bank building for a freestanding building with a South
Slide 15: Acquisition Strategy
Acquisition Strategy PGA Plaza MSA: Miami, FL
Slide 16: Acquisition of PGGM Joint Venture Properties
Acquisition of PGGM Joint Venture Properties Blackhawk Town Center Stables Town Center MSA: Houston, TX MSA: Houston, TX JV Portfolio Overview Property MSA Leased GLA2 ABR / SF3 Major Tenants4 Occupancy1 Stone Ridge Market San Antonio 88.2% 219 $23.55 HEB Plus*, Burlington, Petsmart HEB, Kohl’s, Pet
Slide 17: Recent Sun Belt Market Acquisitions
Recent Sun Belt Market Acquisitions Purchasing necessity-based retail assets in the Sun Belt delivering stable cash flows Escarpment Village The Shops at Arbor Trails MSA: Austin, TX MSA: Austin, TX • Purchased 2022 • Purchased 2022 • ABR PSF - $21.44 • ABR PSF - $13.68 • H-E-B anchored • Costco & W
Slide 18: Balance Sheet & 2023 Outlook
Balance Sheet & 2023 Outlook Gateway Market Center MSA: Tampa, FL
Slide 19: Investment Grade Balance Sheet
Investment Grade Balance Sheet InvenTrust continues to diversify its capital structure and manage its maturity schedule Balance Sheet Highlights1 Total Market Capitalization3 • Inaugural investment grade rating of ‘BBB-’ with stable Secured outlook from Fitch Debt 7% • Completed a $250 million priva
Slide 20: Conservative and Prudent Leverage Profile
Conservative and Prudent Leverage Profile As we evaluate growth opportunities, InvenTrust will maintain our low leverage business model Net Debt-to-Adjusted EBITDA1 (Trailing 12 months) IVT go-forward target Net Debt to EBITDA range of 7.0x 5.0x – 6.0x 6.8x 6.4x Peer Average : 5.9x 6.1x 5.7x 5.2x 5.
Slide 21: Consistent Dividend Increases
Consistent Dividend Increases Increased dividend payments over the last seven years with additional capacity to grow dividend further • Aggregate dividends declared as a % of Core FFO = 52% 1 Historical & Projected Dividend Payments 2 Did not cut or suspend dividend during pandemic $0.86 - maintaine
Slide 22: 2023 Outlook and Guidance
2023 Outlook and Guidance Components of Annual Growth 2023 OUTLOOK AND GUIDANCE1 Contractual Rent Steps Net Income per diluted share2 $0.23 to $0.28 New & Renewal Leasing Growth NAREIT FFO per diluted share3 $1.64 to $1.69 Redevelopment $1.59 to $1.64 Core FFO per diluted share 1% to 4% YoY growth A
Slide 23: Environmental, Social, and Governance
Environmental, Social, and Governance
Slide 24: Corporate Responsibility Strategy
Corporate Responsibility Strategy We believe we are a committed and Transparency Consistency Accountability trusted business partner that focuses on Openly connect with Engage proactively and Inform stakeholders of building strong relationships with all our stakeholders by providing maintain regular
Slide 25: Strong & Experienced Board of Directors
Strong & Experienced Board of Directors 6/9 6/9 BOARD EXPERIENCE PAULA J. SABAN THOMAS F. GLAVIN Current or Former C-Suite Real Estate Chairperson since 2017, Director since 2004 Director since 2007 Compensation – M Audit - C, FE; Nominating & Corporate Governance – M + Former Senior Vice President
Slide 26: ESG Overview
ESG Overview InvenTrust is dedicated to reporting our ESG practices Environmental Social Governance • 100% of properties have energy • IVT named a “Top Workplace in Chicago” by • IVT places a strong emphasis on its management systems installed The Chicago Tribune in 2022 governance policies and prac
Slide 27: Appendix
Appendix Plaza Midtown MSA: Atlanta, GA
Slide 28: 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. We do not consider our non-GAAP measur
Slide 29: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Pro Rata Same Property NOI The following table compares Pro Rata Same Property NOI: Three Months Ended December 31 Year Ended December 31 2022 2021 2022 2021 Income Base rent $ 33,352 $ 31,945 $ 127,514 $ 119,448 Real estate tax recoveries 6,300 5,558 25,482 25,19
Slide 30: Reconciliation of Net (Loss) Income to Pro Rata Same Property NOI
Reconciliation of Net (Loss) Income to Pro Rata Same Property NOI Pro Rata Same Property NOI The following table is a reconciliation of Net (Loss) Income to Pro Rata Same Property NOI: Three Months Ended December 31 Year Ended December 31 2022 2021 2022 2021 Net (loss) income $ (125) $ (10,751) $ 52
Slide 31: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures EBITDA and Adjusted EBITDA The following table presents the Company’s calculation of EBITDA and Adjusted EBITDA: Three Months Ended December 31 Year Ended December 31 2022 2021 2022 2021 Net (loss) income $ (125) $ (10,751) $ 52,233 $ (5,360) Interest expense 9,20
Slide 32: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures NAREIT FFO and Core FFO The following table presents the Company’s calculation of NAREIT FFO and Core FFO Attributable to Common Shares and Dilutive Securities and provides additional information related to its operations: Three Months Ended December 31 Year Ended
Slide 33: 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 The following table provides a reconciliation of the range of the Company's 2023 estimated net income per share to estimated NAREIT FFO and Core FFO per diluted share: (Unaudit
Slide 34: Corporate Office Investor Relations Transfer Agent
Corporate Office 3025 Highland Parkway Suite 350 Downers Grove, IL 60515 Investor Relations 630.570.0605 InvestorRelations@InvenTrustProperties.com Transfer Agent Computershare 855.377.0510 Scan for IR Scan for IVT’s Scan for IVT’s presentation Fourth Quarter complete 2021 2022 Supplemental ESG repo
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