Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Investor Presentation (June 2019)
37 slides from Inventrust Properties's investor presentation, Jun 14, 2019
Slide 1: Investor Meeting June 2019
Investor Meeting June 2019 Essential Retail. Smart Locations. & Inventrust a Properties
Slide 2: Forward Looking Statements
ential Retail mart Locations. nal a] ia oe Forward Looking Statements 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
Slide 3: Investor Meeting Topics
Essential Retail. Smart Locations ik FOURS MARKET, ~~ . . Sl Sei Meeting Topics __—— Be) fr 1. InvenTrust Portfolio Strategy - Grocery / Geography / Growth a. Property Types & Location are Important for Rents & Value of the Asset 2. New Estimated Share Value 3. Strong & Flexible Balance Sheet 4. Dis
Slide 4: 2019 Strategy
2019 Strategy Grow same property NOI through favorable leasing, redevelopment & expense savings Continue to evaluate disposition opportunities & execute on acquisition strategy Maintain a flexible balance sheet Continue to improve public company readiness and monitor market conditions for potential
Slide 5: InvenTrust — A Unique Retail Platform
tial Retail. Smart Locations. InvenTrust — A Unique Retail Platform Focused Portfolio In Sun Belt Markets 2) o $3.4Billion Retail REIT '/ 73 Open-Air Retail Centers o Concentrated Portfolio = ~15 Sun Belt Markets with Superior Demographics (down from over 40 markets in 2013) o Fewer Markets with Add
Slide 6: Property Type Definitions
Essential Retail. Smart Locations Property Type Definitions Mall (which InvenTrust doesn’t own) rthat is mt Dillard’s uoisulng
Slide 7: Property Type Definitions
Essential Retail. Smart Locations oN @qa| Property Type Definitions PAD SITE ~| AVAILABLE foie PPX. 3,000 SF} WHITE OAK CROSSING Garner, NC = not owned by IVT
Slide 8: Property Type Definitions
Essential Retail. Smart Locations Property Type Definitions eighborhood or Community Center N 2 feet that contains a _ =not owned by IVT S Twin Oaks Valley Rd nv CAMPUS MARKETPLACE San Marcos, CA
Slide 9: Grocery-Anchored Assets Experiencing Less Value Disruption
Essential Retail. Smart Locations fi Grocery-Anchored Assets Experiencing Less Value Disruption ck Zé Average Change in Asset Values Since Jan. 2017! 10% 1% 0% 4 -10% -8% Lal -12% -20% -18% -30% -40% Gateway Market Secondary Market Power Centers A-Malls B-Malls Grocery-Anchored Grocery-Anchored Cent
Slide 10: Power Center Case Study
al Retail. Smart Locations PALAIS ROYAL | PAD SITE AVAILABLE |APPX. 4,400 SF} S University Biva r- { = = not owned by Power Center landlord 44,005 AADT Highway6 > 400,000 square feet of retail space > Multiple anchors | > Parts of the center owned by anchors (Target) or other third parties > Co-tena
Slide 11: Power Center Case Study Cont.
Essential Retail. Smart Locations Power Center Case Study Cont. Disposition Rationale Underperforming Anchors Valuation Impact Over Time * Cap rates rise if any of the anchors vacate In‘000s ta Net Operating Income $32,300 mValue of Property Uncontrollable Risk in Revenue and Valuation * Substantial
Slide 12: Eliminating Risk from the Portfolio
Essential Retail. Smart Locations it MARKET, Mos ° . . . . ae Eliminating Risk from the Portfolio Property Net Operating Income vs. Property Valuation Scenario Selling One Large Power Center * Property Generates $7.5 million of Net Operating Income = * Cap Rate of 7.5% ji * Property Valuation = $100
Slide 13: InvenTrust's 3Gs Portfolio Strategy Results
Essential Retail. Smart Locations = — i st InvenTrust’s 3Gs Portfolio Strategy Results Since 2016, InvenTrust’s “Grocery, Geography & Growth” strategy has been applied to all new acquisitions and properties currently in the portfolio * Is GROCERY a main component driving foot traffic & customers to
Slide 14: IVT's Retail Portfolio in 2015
Essential Retail. Smart Locations sh MARKET §&j |IVT's Retail Portfolio in 2015 Markets Across the Country / Heavy Concentration of Power Centers / Fewer Field Offices © Retail © InvenTrust Properties Office Location @y Invenirust a Ba,
Slide 15: Portfolio by market, % of 2018 NOI
al Retail. Smart Locations D sat <7, DC Metro? 2.9% Virginia Beach/ EN Norfolk » 1.2% Raleigh/ Ss es Durham 10.2% = Charlotte ~ 3.1% ~~ . Orlando | Southern vo 23% California? Danwei? . . 0, + : 1 11.8% 6.2% H Birmingham } Atlanta a } 12 %e 7.0% i Oklahoma City } ~e | Houston , Miami/Ft Lauderdale/
Slide 16: Portfolio with Superior Demographics
Essential Retail. Smart Locations Portfolio with Superior Demographics 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. 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0%
Slide 17: Completed Capital Recycling Impact
Essential Retail. Smart Locations Completed Capital Recycling Impact sith InvenTrust has significantly improved the quality of its portfolio and operations with $3 billion of transaction volume since embarking on our capital recycling efforts in 2015. Acquisitions Dispositions completed completed si
Slide 18: Balanced Tenant Concentration
Essential Retail. Smart Locations Balanced Tenant Concentration Top 10 Tenants as a Percentage of ABR' Top Tenant # of Leases % of Total ABR Ralphs.) a ‘CHarris Teeter nN 3.6% Publix. M4 3.2% i2OSS 16 25% BED BATH& buybuy es 15 2.4% BEYONES BABY WORLDMARKET ay 9 2.3% SAFEWAY G9. GB Flater 8 2.2% PET
Slide 19: Recent Acquisitions - Upgrading the Portfolio
— al Retail. Smart Locations Recent Acquisitions - Upgrading the Portfolio Lakeside Winter Park & Crossing Winter Park, FL Annualized Base Rent per SF - $43.28 Trader Joe's anchored 93% occupied 3-mile Avg. HH Income - $103,500 3-mile Population - 81,900 Grocer Sales per SF - $2,800 InvenTrust Prope
Slide 20: IVT's Estimated Share Value History
Essential Retail. Smart Locations. $3.40 $3.30 $3.20 $3.10 $3.00 | IVT's Estimated Share Value History $3.29 20
Slide 21: Same-Property Value Change
Essential Retail. Smart Locations NS Change Same-Property Community & N Centers Value Same-Property Power Centers with a Grocer Value $750 $734 +$16 Same-Property Power Centers no Grocer Value $465 $491 $1,265 $1,259 +$6 @y Invenirust gh Pronerties
Slide 22: The Right Retail Assets Have Led to a Stable Value
Essential Retail. Smart Locations The Right Retail Assets Have Led to a Stable Value During a Time of Retail Disruption * Since 2016, InvenTrust’s estimated share value has remained flat, despite significant retail disruption. * The retail industry has experienced a variety of headwinds and negative
Slide 23: Balance Sheet Will Support Future Growth
Essential Retail. Smart Locations Balance Sheet Will Support Future Growth Available Unsecured Debt $398 million Net Debt to EBITDA 3.9x Leverage Ratio (Debt / Gross Asset Value) 23% Weighted Average Interest Rate 3.71% Distribution Rate on NAV 2.35% 2019F Dividend AFFO Payout Ratio 74% InvenTrust C
Slide 24: Improved Key Performance Metrics
Essential Retail. Smart Locations Improved Key Performance Metrics Annualized Base Rent per SF $19 $18.71 $18 $17 $16.44 $16 $15 2016 Q1 2019 » InvenTrust a Pronerties. 3-Mile Average Household Income $100,000 $98,000 $95,000 $90,000 $88,000 $85,000 2016 Q1 2019 45% 40% 35% 30% 25% 20% 15% Leverage
Slide 25: Growing Income = Increasing Distributions
Essential Retail. Smart Locations Growing Income = Increasing Distributions $0.074 $0.0737 $0,072 $0.0716 $0.070 $0.0695 $0.068 $0.0675 $0.066 | $0.064 2016 2017 2019 The increases in the distribution rate underscores the confidence that the Board has in our portfolio and business plan @y Invenirust
Slide 26: Experienced Board of Directors
Essential Retail » InvenTrust ¥ Py Dicnertac Smart Locations. Experienced Board of Directors Paula J. Saban (2004) Chairperson 25+ years of banking & financial services experience, including Bank of America Thomas Glavin (2007) CPA with over 30 years of accounting & 20 years of real estate experienc
Slide 27: Strategy Moving Forward
Strategy Moving Forward o Focus and drive value as a grocery-anchored retail platform. o Concentrate portfolio in high job & population growth markets. o Maintain our capital structure flexibility. o Opportunistically sell assets in low growth markets & where value has been maximized. co Evaluate va
Slide 28: Q&A
Q&A ae InvenTrust i Properties
Slide 29: Appendix
= a WS } DES . appendix ae InvenTrust i Properties
Slide 30: Footnotes
tial Retail. Smart Locations. Footnotes Page 5 Includes (a) wholly owned retail properties, (b) 100% of value related to IAGM Retail Fund |, LLC (“AGM”), our joint venture with PGGM Private Real Estate Fund, (c) CDH CDO LLC and Concord Debt Holdings LLC, (d) Downtown Railyard Venture LLC, and (e) ca
Slide 31: Current Market Disruption for Traded Peers
Essential Retail. Smart Locations Current Market Disruption for Traded Peers Premium / (Discount) to NAV as of ' 6/7/2019 a — B22y ae ™ ROK -10% -15% -13.6% -14.0% WENGARTEN 20% may SKIMCO -20.3% - Platforms with fewer markets, BRIXMOR® : 250 lower leverage and/or more orn 23a -24.3% grocery warrant
Slide 32: Liquidity opportunity for stockholders
= liquidity opportunity for stockholders
Slide 33: Liquidity opportunity for stockholders
= liquidity opportunity for stockholders
Slide 34: Liquidity opportunity for stockholders
= liquidity opportunity for stockholders
Slide 35: Current Retail Environment
Essential Retail. Smart Locations Z ifr 00s MARKET, AES . . oe Current Retail Environment! 1. Top grocers in a market continue to perform well a) Grocery stores drive traffic as consumers prefer fresh prepared food and reinvent the center of the store b) Grocery asset pricing up almost 20% to $221 p
Slide 36: Dutch Tender Summary
al Retail. Smart Locations. Dutch Tender Summary oc) meal ks RS ah * The Dutch tender was announced on August 15". The Offer expired on September 13" at 5pm. * Total funds allocated to the tender = $97.5 million, purchasing 46.4 million shares (or about 6% of shares outstanding). Shares were purchas
Slide 37: Real Estate Investors Currently Hesitant to Make Big Bet on Retail
Essential Retail. Smart Locations oN ae Real Estate Investors Currently Hesitant to Make Big Bet on Retail iy Se Total $ by Size of Transaction ' $20 $25-$50M $50-$100M Over $100M $16.9 $15 $9.2 In Billions wn Oo $7.1 $5 2016 *y Invenirust 1 Rade necie 37
InvenTrust Properties — Investor Presentation (June 2019) on 6ix