InvenTrust Properties Corp. · NYSE:IVT
InvenTrust Properties — Shareholder Meeting (December 2015)
30 slides from InvenTrust Properties's shareholder meeting presentation, Dec 15, 2015
Slide 1: Annual Stockholders Meeting Presentation
Annual Stockholders Meeting Presentation December 15, 2015
Slide 2: Disclaimer
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. Forward-looking statements are statements that are not historical, including statements regarding man
Slide 3: Multi-Tenant Retail Strategy
Multi-Tenant Retail Strategy
Slide 4: Retail Landscape
Retail Landscape Minimal Retailers are Bricks and Consumer New Expanding Clicks VS. Experience is Development Again - Bricks or Important Cautiously Clicks 3
Slide 5: Retail Segment Is Designed for Growth
Retail Segment Is Designed for Growth InvenTrust Retail Strategy Results Investments in markets with high job, Key Market population and income growth Concentration – Significant Improved Average Base Rents Premium yielding assets with strong “Hub & Spoke” demographics Creates operating effici
Slide 6: Multi-Tenant Retail Snapshot
Multi-Tenant Retail Snapshot* Portfolio Breakdown by Square Feet Power Centers 68% Community & 32% Neighborhood Center 128 24 18.9 94% # of Properties # of States Million Retail Sq. Ft. Occupancy *Includes 18 centers in the IAGM JV / As of 9/30/15 5
Slide 7: Retail Strategy – Core Markets
Retail Strategy – Core Markets* InvenTrust’s largest markets are expected to have high job growth, population growth, and income growth in the next five years Top Markets by Gross Leasable Area (GLA) 16.0% 13.0% 12.4% 12.0% 7.8% 8.0% 6.6% 5.1% 4.2% 4.1% 4.1% 4.0% 2.6% 2.4% 0.0% (1) Dallas Houston
Slide 8: Retail Lease Expiration Brings Value Creation Opportunity
Retail Lease Expiration Brings Value Creation Opportunity Leases rolling during predicted inflationary time period = opportunity to grow rental rates Lease Expiration by % of Total Annualized Rent 20.0% 16.0% 15.2% 15.0% 14.4% 13.6% 10.0% 8.8% 5.0% 0.0% 2016 2017 2018 2019 2020 As of 9/30/15 Gro
Slide 9: Focus on Deep Tenant Relationships
Focus on Deep Tenant Relationships InvenTrust’s scale and locations in growing vibrant markets promotes favorable relationships with top local and national tenants 8
Slide 10: University House Platform Strategy
University House Platform Strategy
Slide 11: University House Strategy
University House Strategy Markets with high barriers to entry Well-positioned assets with strong market position Universities with competitive student acceptance rates, stable or growing enrollment & Division I athletics ACQUISITIONS Newer assets within walking distance to campus DEVELOPMENT Univers
Slide 12: University House National Footprint
University House National Footprint* 11
Slide 13: Continued Portfolio Growth
Continued Portfolio Growth University House Communities Beds 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016* 2017* * Includes UH Arena District and development pipeline 12
Slide 14: Quality Over Quantity – Best-In-Class Portfolio
Quality Over Quantity – Best-In-Class Portfolio* Distance to Campus Age of Assets 10 0.8 10 0.6 0.7 8 0.5 In Years In Miles 0.6 6 3 0.5 4 0.4 2 0.3 0 Public Peer Set UHC Public Peer Set UHC Average Undergrad Enrollment % Top 150 Schools 68% $27,000 26,536 70% 62% 26,464 $26,500 60% $26,000 50% $25,5
Slide 15: Quality Over Quantity – Best-In-Class Portfolio
Quality Over Quantity – Best-In-Class Portfolio Properties* Occupancy** 94 97% 100 100% 95% 75 50 20 90% 25 0 80% Public Peer Set UHC Public Peer Set UHC Avg. Rent Per Bed** $775 $800 $711 Loan-to-Value is less than 40% $700 $600 Public Peer Set UHC *After developments come online in 2016, portfolio
Slide 16: Georgia Tech. Another Successful Development
Georgia Tech. Another Successful Development • Located in the popular Midtown area of Atlanta • Opened in August - 706 beds & approximately 9,000 square feet of retail space • 100% pre-leased by spring of 2015 • 19-story residential tower offering one-, two-, three- and four- bedroom units • High-en
Slide 17: University of Texas – August 2016
University of Texas – August 2016 • Located just one block west of the University of Texas in the popular West Campus neighborhood of Austin • Property features premier amenities including amenity deck, sky lounge, fitness center, and study areas 16
Slide 18: Capital Allocation Strategies, Balance Sheet Management & Financial Results
Capital Allocation Strategies, Balance Sheet Management & Financial Results
Slide 19: Timing: In-Step with Retail Market Opportunity
Timing: In-Step with Retail Market Opportunity Current Estimated Location in Retail Cycle U.S. retail is in recovery phase Retailers are expanding again, although new construction remains historically low Retail sales continue to grow moderately and are above pre-recession peak *Source: REIS -
Slide 20: Multi-Tenant Retail Acquisition Strategies
Multi-Tenant Retail Acquisition Strategies • Open-Air Centers - grocery-anchored centers, necessity-based community centers and power centers Location, Location, Location • Properties with strong demographics Job & wage growth Population growth High education rate • Focus on key retail marke
Slide 21: Retail Market Concentration Matches Expected Demographic Growth
Retail Market Concentration Matches Expected Demographic Growth Growth in Top 30 Markets(1) Scale: From 4 (Strong) to (4) Weak InvenTrust Current 4 Market Focus 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 (1) (1) (1) (2) (2) (2) (2) (3) (3) (3) (3) (4) (4) (4) (5) Columbus Portland Denver San Fr
Slide 22: Recent Retail Acquisitions Match Our Strategy
Recent Retail Acquisitions Match Our Strategy The Highlands of Rio Pinar Plaza Price Plaza Flower Mound • Orlando, FL • Katy, TX • Outside Dallas • Acquired Nov. 2015 • Acquired Nov. 2015 as • Acquired June 2015 as • Grocery Anchored - part of IAGM part of IAGM JV Publix • Power Center • Power Cente
Slide 23: Balance Sheet Management
Balance Sheet Management Balance Sheet Composition Declining Debt & Improving LTV1 $8.0 54.6% 60% 45.7% 13% $6.0 36.9% 37.2% 40% $6.0 $4.0 $3.6 87% 20% $2.0 $3.2 $1.9 $- 0% 2012 2013 2014 Q3 2015 Fixed Rate Debt Floating Rate Debt Total Debt in Billions LTV% Manageable Mortgage Debt Maturities as of
Slide 24: Q3 2015 YTD Financial Results
Q3 2015 YTD Financial Results Retail = 94% economic occupancy Student Housing = 95% physical occupancy Non-Core Properties = 93% economic occupancy* Modified Same-Store NOI increased 7.0% over Sept. 30, 20141,2 FFO per Share = $0.22 (includes one-month of Xenia results)2 *Economic occupancy is the p
Slide 25: InvenTrust’s Complex History
InvenTrust’s Complex History The assembly of our $12 billion portfolio primarily focused on credit quality of tenants and length of lease term. A large percentage of assets in the portfolio were purchased before the great recession. The diversified portfolio was effective during the great recession
Slide 26: Many Large, Complex Transactions Were Necessary to Achieve Strategy
Many Large, Complex Transactions Were Necessary to Achieve Strategy $460 million apartment portfolio sale to 2013 Announced $1.8 billion sale of net lease (non-core) assets to Internalization of management and began implementing best-in-class systems $395 million modified “Dutch Auction” tende
Slide 27: Final Thoughts on InvenTrust & Remaining Challenges
Final Thoughts on InvenTrust & Remaining Challenges Committed to Executing on 3 Unique Platform Strategies (Retail, Student Housing & Non-Core) Experienced Management Team in Place to Execute Company’s Strategies Dividend Rate is Based on Current Portfolio (If our portfolio materially changes, the B
Slide 28: InvenTrust Properties
Inventrust Properties
Slide 29: Appendix
Inventrust Properties Appendix
Slide 30: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations For the three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Net income (loss) attributable to Company $ (95,647) $ 52,552 $ (27,757) $ 192,523 Add: Depreciation and amortization related to investment properties 37,333 86,138 1
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