Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Investor Presentation (November 2024)
30 slides from Inventrust Properties's investor presentation, November 2024
Slide 1: Third Quarter 2024 Investor Presentation
THIRD QUARTER 2024 INVESTOR PRESENTATION
Slide 2: Introductory Notes: Forward-Looking Statements Disclaimer
INTRODUCTORY NOTES Forward-Looking Statements Disclaimer Forward-Looking Statements in this presentation, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and e
Slide 3: Company Overview: Portfolio Statistics
COMPANY OVERVIEW Portfolio Statistics 65 97% 87% 74 10.6M 163K Sun Belt1 Grocery Anchored1,2 Avg. TAP Score Retail Properties Total GLA Avg. Center Size (Peer Average = 50%)3 (Peer Average = 86%)3 (Peer Average = 68)3 2024 Guidance Long-Term Targets $1.70 - $1.73 4.25% - 5.00% 5.0x - 6.0x 25% - 35%
Slide 4: A Simple & Focused Investment Opportunity
A SIMPLE & FOCUSED Sun Belt Markets with Strong, Persistent Migration INVESTMENT OPPORTUNITY • • Moving towards 100% Sun Belt concentration Attractive demographic trends – jobs, population, education and household income • Long-term Sun Belt growth set to substantially outpace the national average H
Slide 5: Recent Updates
RECENT UPDATES EQUITY OFFERING REVOLVING CREDIT FACILITY September 25, 2024 October 23, 2024 • Oversubscribed & upsized • Recast & upsized unsecured revolving credit facility • 9.2 million shares sold • Increased by $150 million to $500 million • $28 per share • Maturity date on revolver extended to
Slide 6: 2024 Third Quarter Highlights
2024 THIRD QUARTER HIGHLIGHTS Operating Results 6.5% $19.83 93% 97.0% 99.8% 92.0% 9.8% Anchor Tenant Small Shop Leased Comparable SPNOI Growth ABR Per SF1 Retention Rate Leased Occupancy Leased Occupancy Occupancy Leasing Spreads – New and Renewals Financial Performance $0.44 3.6x 20.0% $543M $0.91
Slide 7: Sun Belt Focused
SUN BELT FOCUSED Clustered portfolio brings operational efficiencies and detailed market knowledge InvenTrust Portfolio by Percentage of ABR1 DC Metro 3% Richmond 1% Raleigh / Durham Charlotte 7% 5% Charleston Asheville Orlando Atlanta 5% Southern CA 11% Nashville Miami / Fort 11% Phoenix Houston La
Slide 8: Strong Fundamentals and Sector Tailwinds
STRONG FUNDAMENTALS AND SECTOR TAILWINDS Historically Low 3.0% Strip Center Supply Growth1 3.0% (Year-Over-Year) 2.5% 2.5% 2.0% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24E '25E '26E '27E '28E Robust
Slide 9: High Quality Assets
HIGH QUALITY ASSETS Rio Pinar Plaza Orlando, FL Shops at Arbor Trails Austin, TX Established centers with necessity-based tenants drive performance in all economic conditions Note: As of September 30, 2024. 1. Includes ground rent and excludes specialty leases NEIGHBORHOOD CENTER COMMUNITY CENTER Tr
Slide 10: Essential Retail Dominates Merchandise Mix
ESSENTIAL RETAIL DOMINATES MERCHANDISE MIX RECENTLY EXECUTED LEASES Recession-Resistant tenants with limited exposure to distressed tenants Anchors Small Shop Top 15 Tenants Ranking Tenant Credit Rating (S&P) # of Leases % of ABR 1 BBB 151 4.9 2 N/A 152 3.5 3 A 14 2.5 4 BB+ 6 2.2 5 N/A 53 2.2 6 AA 5
Slide 11: Tenant Composition
TENANT COMPOSITION Diverse and balanced tenant mix provides durable cash flows Tenant Composition % of ABR1 Tenant Composition % of ABR Essential Retail Breakout 59% Grocery 18% Health & Beauty Services 11% Other Retail / Services 20% Medical 9% Off Price 5% Banks 4% Restaurants 21% 59% Grocery / Es
Slide 12: Strong Leasing Activity Continues
STRONG LEASING ACTIVITY CONTINUES Portfolio is experiencing unprecedented demand and occupancy levels Leased Occupancy 97.0% 96.1% 96.2% 96.3% 96.4% 93.9% 92.8% 2020 2021 2022 2023 Q1 ‘24 Q2 ‘24 Q3 ‘24 Signed Not Opened Spread (By Basis Points) 290 290 270 280 220 110 2021 2022 2023 Q1 ‘24 Q2 ‘24 Q3
Slide 13: Growing Asset Base Through Acquisitions
GROWING ASSET BASE THROUGH ACQUISITIONS Acquiring necessity-based retail assets in the Sun Belt AC T I V E LY P U R S U I N G : YTD INVESTMENT HIGHLIGHTS: MULTIPLE SUN BELT OPEN- AIR RETAIL CENTER CLOSED: ~$159 MILLION ACQUISTIONS IN VARIOUS STAGES OF NEGOTIATIONS & SCOTTSDALE NORTH DUE DILIGENCE1 M
Slide 14: Disciplined Redevelopment Program
DISCIPLINED REDEVELOPMENT PROGRAM Enhancing the consumer experience by revitalizing properties PAVILION AT LA QUINTA SOUTHERN PALM CROSSING SARASOTA PAVILION La Quinta, CA Royal Palm Beach, FL Tampa, FL Status: Completed Status: Completed Status: Active Completion Date: Q2 2024 Completion Date: Q2 2
Slide 15: Investment-Grade Balance Sheet
INVESTMENT-GRADE BALANCE SHEET1 BBB- / STABLE $543 MILLION 3.6x2 Fitch Rating Liquidity Net Debt-to-Adjusted EBITDA 4.3x 4.0% 3.6 YEARS Fixed Charge Coverage Weighted Avg Interest Rate Weighted Average Maturity DEBT MATURITY SCHEDULE1 ($ Millions) SUNCREST VILLAGE | MSA: ORLANDO $226 Secured $200 Un
Slide 16: Conservative Balance Sheet
CONSERVATIVE BALANCE SHEET InvenTrust maintains a low leverage business model 6.8x Net Debt-to-Adjusted EBITDA1 5.9x 5.7x Peer Average: 5.6x 5.1x 5.1x 4.9x 4.8x Net Leverage Ratio (Net Debt + Preferred As % of Gross Assets) 1 41% 39% Peer Average: 36% 36% 32% 35% 31% 29% 1. Forward metric provided b
Slide 17: Sustainable Dividend Growth
SUSTAINABLE DIVIDEND GROWTH Historical and Projected Dividend Payments Steady dividend increases with additional capacity to grow in Aggregate dividends declared the future as a percentage of Core FFO = 54% 1 $0.91 $0.86 $0.82 $0.78 2021 2022 2023 Q3 2024 PGA PLAZA | MSA: MIAMI Annualized 1. Aggrega
Slide 18: InvenTrust Delivers Cash Flow Growth
INVENTRUST DELIVERS CASH FLOW GROWTH 2024 Updated Guidance Net Income Per Diluted Share Nareit FFO Per Diluted Share $0.04 to $0.10 $0.09 to $0.12 $1.69 to $1.75 $1.74 to $1.77 INITIAL UPDATED INITIAL UPDATED Core FFO Per Diluted Share SPNOI Growth $1.66 to $1.70 $1.70 to $1.73 2.25% to 3.25% 4.25%
Slide 19: Long-Term Growth Profile
LONG-TERM GROWTH PROFILE Stable and durable components of annual cash flow growth OPEN Embedded Positive Leasing Spreads Incremental Occupancy Redevelopment Acquisitions Rent Escalations For New & Renewals Increases CARY PARK TOWN CENTER | MSA: RALEIGH Q3 2024 Investor Presentation 1 9
Slide 20: ESG Overview
ESG OVERVIEW InvenTrust is committed to the principles of ESG to create long-term shareholder value ENVIRONMENTAL • 100% of properties have energy management systems installed • 100% of landlord-controlled common area parking lot lighting upgraded to LEDs • 24% of properties have electric vehicle ch
Slide 21: ESG Goals & Progress
ESG GOALS 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 & PROGRESS ethics and
Slide 22: Strong and Experienced Board of Directors
STRONG AND EXPERIENCED Julian E. Whitehurst Chairperson since 2023 • • Former CEO and President of National Retail Properties, Inc. Previously served as COO of National Retail Properties, Inc. from 2004 to 2017 BOARD OF DIRECTORS Director since 2016 • Practiced business and real estate law for 20 ye
Slide 23: Non-GAAP Measures and Definition of Terms
NON-GAAP MEASURES AND DEFINITION OF TERMS Adjusted EBITDA Non-GAAP Financial Measures The Company’s non-GAAP measure of Adjusted EBITDA excludes gains (or losses) This Press Release includes certain financial measures and other terms that are not resulting from debt extinguishments, straight-line re
Slide 24: Reconciliation of Non-GAAP Measures: Same Property NOI
RECONCILIATION OF NON-GAAP MEASURES Same Property NOI Note: In Thousands Three Months Ended Sept. 30 Nine Months Ended Sept. 30 2024 2023 2024 2023 Income Minimum base rent $ 42,809 $ 41,481 $ 116,321 $ 113,761 Real estate tax recoveries 8,214 7,798 22,886 22,749 Common area maintenance, insurance,
Slide 25: Reconciliation of Net (Loss) Income to Same Property NOI
RECONCILIATION OF NET (LOSS) INCOME TO SAME PROPERTY NOI Same Property NOI Note: In Thousands Three Months Ended Sept. 30 Nine Months Ended Sept. 30 2024 2023 2024 2023 Net (loss) income $ (539) $ (822) $ 3,859 $ 2,379 Adjustments to reconcile to non-GAAP metrics: Other income and expense, net (197)
Slide 26: Reconciliation of Non-GAAP Measures: Nareit FFO & Core FFO
RECONCILIATION OF NON-GAAP MEASURES Nareit FFO & Core FFO Note: In Thousands Three Months Ended Sept. 30 Nine Months Ended Sept. 30 2024 2023 2024 2023 Net (loss) income $ (539) $ (822) $ 3,859 $ 2,379 Depreciation and amortization related to investment properties 27,923 30,094 84,439 84,714 Impairm
Slide 27: Reconciliation of Non-GAAP Measures: EBITDA & Adjusted EBITDA
RECONCILIATION OF NON-GAAP MEASURES EBITDA & Adjusted EBITDA Note: In Thousands Three Months Ended Sept. 30 Nine Months Ended Sept. 30 2024 2023 2024 2023 Net (loss) income $ (539) $ (822) $ 3,859 $ 2,379 Interest expense, net 9,470 9,555 28,744 28,441 Income tax expense 138 128 403 388 Depreciation
Slide 28: Reconciliation of Financial Leverage Ratios
RECONCILIATION OF FINANCIAL LEVERAGE RATIOS Net Debt-to-Adjusted EBITDA Note: In Thousands As of Sept. 30 As of December 31 2024 2023 Net Debt: Outstanding Debt, net $ 740,109 $ 814,568 Less: Cash and cash equivalents (193,187) (96,385) Net Debt $ 546,922 $ 718,183 Net Debt-to-Adjusted EBITDA (trail
Slide 29: 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 UPDATED GUIDANCE UPDATED GUIDANCE The following table provides a reconciliation of the range of the Company's 2024 estimated net income per diluted share to estimated Nareit FF
Slide 30: Corporate Office and Investor Relations Contacts
Corporate Office 3025 Highland Parkway | Suite 350 Downers Grove, IL 60515 630.570.0700 info@InvenTrustProperties.com Investor Relations 630.570.0605 InvestorRelations@InvenTrustProperties.com Transfer Agent Computershare 855.377.0510 Investor Quarterly 2023 Presentation Earnings Materials ESG Repor
InvenTrust Properties — Investor Presentation (November 2024) on 6ix