Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Investor Presentation (August 2023)
33 slides from Inventrust Properties's investor presentation, August 2023
Slide 1: Investor Presentation Q2 2023
Escarpment Village | Austin, TX INVESTOR PRESENTATION Q2 2023 Essential Retail. Smart Locations. ®
Slide 2: Introductory Notes
Introductory Notes Cautionary Note About Forward-Looking Statements InvenTrust intends that such forward-looking statements be subject to the safe Forward-Looking Statements in this presentation, which are not historical facts, are harbors created by Section 27A of the Securities Act of 1933, as ame
Slide 3: Overview
Lakeside & Lakeside Crossing | Orlando, FL Overview
Slide 4: Overview: 2023 Guidance, Portfolio Statistics and Long-Term Targets
Overview 2023 Guidance & Portfolio Statistics Long-Term Targets 63 Retail Properties $1.61-$1.64 2023 Core FFO Per Diluted Share 95% Growth of 3% To 4% Sun Belt 1 87% Grocery-Anchored 1, 2 4.0%-5.0% 2023 SP-NOI Growth 74 Avg. TAP Score 5.0x-6.0x (Peer Average = 68) 3 Net Debt-To- Adjusted EBITDA 10.
Slide 5: Simple and Focused Strategy
Simple and Focused Strategy Sun Belt Markets Poised High-Performing, Grocery- For Growth Anchored Portfolio • Sector-leading Sun Belt concentration of 95% • 87% of NOI derived from centers • Attractive demographic trends – with a grocery presence jobs, population, education & • Essential retail tena
Slide 6: Q2 2023 Highlights
Q2 2023 Highlights Portfolio Quality Financial Performance Driving Growth2 $19.18 ABR Per SF1 3.5% 2023 YTD SP-NOI Growth 96.2% Q2 2023 Leased Occupancy 5.4x Net Debt-To- Adjusted EBITDA3 98.6% Q2 2023 Anchor Space Leased Occupancy 28% Net Leverage Ratio4 92.0% Q2 2023 Small Shop Space Leased Occupa
Slide 7: Portfolio
The Shops at Arbor Trails | Austin, TX Portfolio 7
Slide 8: Sun Belt Focused: Stable & Long-Term Value
Sun Belt Focused: Stable & Long-Term Value Concentrated portfolio in markets with strong demographic trends InvenTrust Portfolio by Percentage of ABR DC Metro 3% Richmond 2% Raleigh / Durham Charlotte 7% 5% Orlando 5% Atlanta Miami/Fort Southern CA Houston 10% Lauderdale/ West San 11% Palm Beach 12%
Slide 9: Demographic Tailwinds
Demographic Tailwinds TOP U.S. GROWTH MARKETS InvenTrust Markets Are Corporate Magnets2 Estimated Annualized Retail M-RevPAF Growth ‘23 to ‘271 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% Fort Lauderdale 3.1% MSA FAVORA
Slide 10: Necessity-Based Centers Continue to Thrive
Necessity-Based Centers Continue to Thrive Last-Mile Solution • Local properties - critical & attractive Essential Retail 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 | San Diego, CA Kyle Marketplace | Austin, TX Sarasota Pavilion | Tampa, FL Shops at the Galleria | Austin, TX Neighborhood Center Community Center Powe
Slide 12: Essential Retail is Recession Resistant
Essential Retail is Recession Resistant 7 of the top 15 tenants are grocers, which drive traffic to centers TOP 15 TENANTS % OF ABR # Tenant Credit Rating (S&P) # of Leases % of ABR Essential Retail 60.1% 1 BBB 151 5.2 Grocery / Drug 20.0 2 N/A 152 3.4 Health & Beauty Services 11.1 Medical 9.0 3 A 1
Slide 13: Robust Leasing Pipeline of Essential Tenants
Robust Leasing Pipeline of Essential Tenants Portfolio is experiencing unprecedented demand HISTORICAL LEASED RECENTLY EXECUTED OCCUPANCY LEASES 96.1% 96.1% 96.2% Anchors 94.7% 93.9% 92.8% 2019 2020 2021 2022 Q1 2023 Q2 2023 COMPARABLE RE-LEASING SPREADS (Blended) Small Shop 8% 7% 6% 6% 4% 0% 2019 2
Slide 14: Recent Acquisitions in Sun Belt Markets
Recent Acquisitions in Sun Belt Markets Purchasing necessity-based retail assets in the Sun Belt delivering stable cash flow THE SHOPS AT ARBOR THE SHOPPES AT DAVIS ESCARPMENT VILLAGE BAY LANDING EASTFIELD VILLAGE TRAILS LAKE MSA: Austin, TX MSA: Austin, TX MSA: Fort Myers, FL MSA: Charlotte, NC MSA
Slide 15: Acquisition of PGGM Joint Venture Properties
Acquisition of PGGM Joint Venture Properties JV PORTFOLIO OVERVIEW – Acquired January 2023 STONE RIDGE BAY BLACKHAWK CYFAIR STABLES PROPERTY MARKET3 COLONY TOWN CENTER TOWN CENTER TOWN CENTER MSA San Antonio, TX Houston, TX Houston, TX Houston, TX Houston, TX Leased Occupancy 89.9% 93.5% 99.1% 92.3%
Slide 16: Redevelopment: Modest and disciplined program
Redevelopment: Modest and disciplined program Infusing capital to enhance the consumer experience focused on revitalization and anchor repositioning SOUTHERN PALM CROSSING - Miami, FL CYFAIR TOWN CENTER - Cypress, TX PRE-DEVELOPMENT (15 Projects) Status: Active Status: Active Status: Pre-Development
Slide 17: Balance Sheet & 2023 Outlook
Old Grove Marketplace | San Diego, CA Balance Sheet & 2023 Outlook
Slide 18: Investment Grade Balance Sheet
Investment Grade Balance Sheet InvenTrust continues to diversify its capital structure Balance Sheet Highlights1: TOTAL MARKET CAPITALIZATION3 • Investment grade rating of ‘BBB-’ with stable outlook from Fitch 8% Secured Debt • $434M in liquidity includes $84M of cash and $350M remaining capacity on
Slide 19: Conservative and Well-Positioned Leverage Profile
Conservative and Well-Positioned Leverage Profile InvenTrust will maintain a low leverage business model NET DEBT-TO-ADJUSTED EBITDA1 InvenTrust go- 8.2x forward target Net Debt to EBITDA range 6.8x of 5.0x – 6.0x 6.4x Peer Average : 6.0x 5.9x 5.3x 5.6x 5.2x 5.3x 4.9x NET LEVERAGE RATIO (DEBT + PREF
Slide 20: Consistent Dividend Increases
Consistent Dividend Increases Steady dividend increase with additional capacity to grow in the future HISTORICAL & PROJECTED DIVIDEND PAYMENTS 1 5% Aggregate dividends declared as a Increase percentage of Core FFO = 52%2 5% Increase $0.86 $0.82 $0.78 $0.76 $0.74 $0.72 $0.70 $0.68 2016 2017 2018 2019
Slide 21: 2023 Outlook and Guidance
2023 Outlook and Guidance Components of Annual Growth 2023 OUTLOOK AND GUIDANCE Net Income per diluted share1 $0.06 to $0.11 $1.64 to $1.69 NAREIT FFO per diluted share2 Core FFO per diluted share $1.61 to $1.64 3% to 4% YoY growth SPNOI Growth 4.0% to 5.0% 1. Net Income per diluted share excludes e
Slide 22: Environmental, Social and Governance
Kyle Marketplace | Austin, TX Environmental, Social and Governance
Slide 23: ESG Overview
ESG Overview InvenTrust is committed to the principles of ESG to create long-term shareholder value Environmental Social Governance • 100% of properties have energy management systems • InvenTrust named a “Top Workplace in Chicago” by The • InvenTrust places a strong emphasis on its governance insta
Slide 24: ESG Goals & Progress
ESG Goals & Progress 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 ethics and
Slide 25: Strong & Experienced Board of Directors
Strong & Experienced Board of Directors Paula J. Saban • Former Senior Vice President and Private Client Manager at Bank of America InvenTrust’s Board of Directors (the “Board”) Chairperson since 2017 • Over 25 years of financial services and banking experience Director since 2004 oversees the busin
Slide 26: Appendix
Shops At Arbor Trails | Austin, TX Appendix 26
Slide 27: 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 28: Reconciliation of Non-GAAP Measures: Same Property NOI
Reconciliation of Non-GAAP Measures Same Property NOI Note: in thousands. Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Income Minimum base rent $ 36,029 $ 34,341 $ 68,071 $ 64,693 Real estate tax recoveries 6,982 7,140 13,708 13,005 Common area maintenance, insurance, and
Slide 29: Reconciliation of Net Income to Pro Rata Same Property NOI
Reconciliation of Net (Loss) Income to Pro Rata Same Property NOI Same Property NOI Note: in thousands. Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Adjustments to reconcile to non-GAAP metrics: Other income and expense, net (64
Slide 30: Reconciliation of Non-GAAP Measures: EBITDA and Adjusted EBITDA
Reconciliation of Non-GAAP Measures EBITDA and Adjusted EBITDA Note: in thousands. Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Depreciation and amortization related to investment properties 28,077 23,996 54,620 46,618 Gain on s
Slide 31: Reconciliation of Non-GAAP Measures: NAREIT FFO and Core FFO
Reconciliation of Non-GAAP Measures NAREIT FFO and Core FFO Note: in thousands. Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Interest expense, net 9,377 5,631 18,886 10,440 Income tax expense 134 91 260 173 Depreciation and amor
Slide 32: 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 Note: in thousands. (Unaudited) Low End High End Net income $ 0.06 $ 0.11 Depreciation and amortization related to investment properties 1.59 1.59 Gain on sale of investment pr
Slide 33: InvenTrust Properties Corp. (IVT)
INVENTRUST Corporate Office 3025 Highland Parkway | Suite 350 PROPERTIES Downers Grove, IL 60515 CORP. (IVT) 630.570.0700 info@InvenTrustProperties.com Investor Relations 630.570.0605 InvestorRelations@InvenTrustProperties.com Transfer Agent Computershare 855.377.0510 Investor Presentation IVT’s Qua
InvenTrust Properties — Investor Presentation (August 2023) on 6ix