Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Investor Presentation (March 2019)
24 slides from Inventrust Properties's investor presentation, Mar 6, 2019
Slide 1: Investor Presentation March 2019
INVESTOR PRESENTATION March 2019
Slide 2: Forward Looking Statements
Forward Looking Statements Forward-Looking Statements in this presentation, which are not as updated by any subsequent Quarterly Report on Form 10-Q, in historical facts, are forward-looking statements within the meaning each case as filed with the Securities and Exchange Commission. of the Private
Slide 3: Meeting Topics
Meeting Topics 1. 2019 Strategy 2. InvenTrust’s Journey 3. Superior Balance Sheet a. Supporting IVT’s Distribution Rate & Third Consecutive 3% Increase in Distribution Rate b. Driving the Execution of IVT’s Premier Grocery-Anchored Portfolio Strategy 4. Evaluation of Market Conditions as it Relates
Slide 4: 2019 Strategy
2019 Strategy Maintain a flexible balance sheet Grow property income through favorable leasing, redevelopment & expense savings Continue to evaluate disposition opportunities & execute on acquisition strategy Continue to improve public company readiness and monitor market conditions for potential fi
Slide 5: Journey to a Pure-Play Retail Platform
Journey to a Pure-Play Retail Platform On 12/31/2012, our $12.7 billion diversified portfolio of assets consisted of 794 retail, office, industrial, prison & charter school properties, 5,311 apartment units, 5,212 student housing beds, 16,345 hotel rooms, certain JVs and marketable securities. $46
Slide 6: Journey to a Pure-Play Retail Platform (cont.)
Journey to a Pure-Play Retail Platform (cont.) Spin-off & listing of Xenia on the NYSE 2015 Implemented independent brands and business plans for multi-tenant retail and student housing platforms Spin-off of “non-core” assets into Highlands REIT, Inc. Highlands is a stand-alone, independent, n
Slide 7: Journey to a Pure-Play Retail Platform (cont.)
Journey to a Pure-Play Retail Platform (cont.) 3% increase in distribution rate 2017 Addition of 2 new Board members with retail and/or real estate experience Completed a $100 million, or 6% of outstanding shares, modified “Dutch Auction” tender offer. (All shares properly tendered at or below
Slide 8: Balance Sheet Funded Recent Activities & Will Support Future Growth
Balance Sheet Funded Recent Activities & Will Support Future Growth Balance Sheet Metrics as of 09/30/181 Unused Unsecured Debt $248 million Leverage Ratio (Debt / Gross Asset Value) 24% Weighted Average Interest Rate 3.82% Distribution Rate on NAV 2.3% 2018F Dividend AFFO Payout Ratio 69% InvenTrus
Slide 9: Growing Distribution Rate
Growing Distribution Rate $0.076 $0.074 $0.0737 $0.072 $0.0716 $0.070 $0.0695 $0.068 $0.0675 $0.066 $0.064 2016 2017 2018 2019* Third Consecutive Annual Increase in IVT’s Distribution Rate in 2019 The increases in the distribution rate underscores the confidence that the Board has in our portfolio a
Slide 10: InvenTrust – A Unique Retail Platform
InvenTrust – A Unique Retail Platform The Right Properties in the Right Markets with Multiple Growth Drivers • Focused Portfolio In Sun Belt Markets o $3.4 Billion Retail REIT 1 o Concentrating Portfolio into ~15 Core Markets with Superior Demographics (down from over 40 markets in 2013) o Fewer Mar
Slide 11: Sun Belt Focused Portfolio
Sun Belt Focused Portfolio 77 Open-Air Centers in Current Portfolio 95% of IVT’s Income 13.5 M Square Feet Comes from Our of Gross Leasable Target Markets Area1 9.3% 4.2% 2 2.1% 10.7% 5.3% 14.8% 8.2% 6.9% 5.7% Previously sold properties and future 10.1% 3 11 dispositionsNon Target Market Retail Disp
Slide 12: Portfolio Located in High Growth Markets
Portfolio Located in High Growth Markets 1 By strategically targeting Sun Belt markets expecting significant near-term population and job growth, InvenTrust expects to have a sizeable advantage to capture future demographic shifts. Estimated Portfolio Population & Job Growth (‘18-’22) 8.0% 7.4% IVT
Slide 13: Portfolio Evolution to Grocery Anchored Assets
Portfolio Evolution to Grocery Anchored Assets By Net Operating Income 12/31/2015 Q3 2018 Strip Center Grocery - No Grocer Anchored Grocery 8% 42% Anchored 27% Strip Center Power Center - - No Grocer No Grocer 3% 81% 71% 21% Grocery Grocery Power Center Anchored1 Anchored1 - No Grocer 16% Power Cent
Slide 14: Completed Capital Recycling Impact
Completed Capital Recycling Impact InvenTrust has significantly improved the quality of its portfolio and operations with $2.6 billion of transaction volume since embarking on our capital recycling efforts in 2015. Acquisitions Dispositions completed completed since 2015 since 2015 24 58 #Properties
Slide 15: Recent Acquisitions – Upgrading the Portfolio
Recent Acquisitions – Upgrading the Portfolio PGA Plaza Sandy Plains Centre Commons at University Place Palm Beach Gardens, FL Marietta, GA Durham, NC • Annualized Base Rent per SF - $32.75 • Annualized Base Rent per SF - $20.50 • Annualized Base Rent per SF - $15.54 • Trader Joe’s anchored • Kroger
Slide 16: IVT's Grocery-Anchored Portfolio is Experiencing Less Value Disruption
IVT’s Grocery-Anchored Portfolio is Experiencing Less Value Disruption Average Change in Asset Values Since Jan. 20171 0% -5% -10% -10% -20% -17% -18% -23% -30% -29% -40% Neighborhood Community Power Centers A-Malls B-Malls C-Malls Centers Centers 16
Slide 17: Key Performance Metrics Show the Improvements to IVT's Platform
Key Performance Metrics Show the Improvements to IVT’s Platform $105,000 $19 45% Annualized Base Rent per SF1 3-Mile Average Household Leverage Ratio2 Income $18.11 40% $100,000 $18 $99,000 35% 35% $95,000 $17 30% $16.44 25% 24% $16 $90,000 $88,000 20% $15 $85,000 15% 2016 Q3 2018 2016 Q3 2018 2016
Slide 18: Experienced Board of Directors
Experienced Board of Directors Paula J. Saban (2004) Michael Stein (2016) Chairperson 40 years of public accounting 25+ years of banking & financial experience including prior CFO services experience, including positions with Nordstrom & Bank of America Marriott Thomas Glavin (2007) Scott Nelson (20
Slide 19: Strategy Moving Forward
Strategy Moving Forward o Drive value by focusing on a grocery-anchored retail platform. o Concentrate portfolio in high job & population growth markets. o Maintain our balance sheet strength and capital structure flexibility. o Opportunistically sell assets in low growth markets & where value has b
Slide 20: Current Market Disruption for Traded Peers
Current Market Disruption for Traded Peers These discounts to NAV rates include strip center REITs on average, trading up over 15% year-to-date Discount to NAV as of 1 2/28/2019 0% -1.7% -5% -3.1% -10% -8.6% -15% Platforms with fewer markets, -18.3% -20% lower leverage and/or more grocery-anchored c
Slide 21: Real Estate Investors Currently Hesitant to Make Big Bet on Retail
Real Estate Investors Currently Hesitant to Make Big Bet on Retail Total $ by Size of Transaction 1 $20 $25 - $50M $50 - $100M Over $100M $16.9 $15 $10 $9.2 $8.6 In Billions $7.1 $7.1 $6.5 $6.1 $5.4 $5.0 $5 $- 2016 2017 2018 21 1 – Citi
Slide 22: InvenTrust Properties
Inventrust Properties 22
Slide 23: Appendix
lnventrust perties appendix 23
Slide 24: Footnotes
Footnotes Page 8 3. ABR is annualized base rent as of Sept. 30, 2018, or as of date of sale, divided 1. Debt / Gross Asset Value (Gross asset value includes (a) wholly owned retail by economic occupied square footage. Ground and specialty leases are properties, (b) properties owned by IAGM at share,
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