Inventrust Properties Corp. · NYSE:IVT
Inventrust Properties — Inland American Real Estate Trust — FY2012 Earnings Presentation
27 slides from Inventrust Properties's earnings presentation, Apr 5, 2013
Slide 1: Year-End 2012 Earnings Call & 2013 Guidance
April 5, 2013 Year-End 2012 Earnings Call & 2013 Guidance Capturing the Recovery Cycle: A Focus on Growth, A Commitment to Value Creation
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation may contain forward-looking statements. Forward-looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representations, plans or predictions of the future, and are typica
Slide 3: Welcome & Introductions
3 Welcome & Introductions Robert Parks Chairman of the Board Inland American
Slide 4: Inland American's Core Portfolio
4 Inland American’s Core Portfolio * As of 12/31/12
Slide 5: Same-Store NOI Growth
5 Same-Store NOI Growth Increase In $Ms $3.7 $10.7 $0.2 $1.1 $0.3 $3.6 $19.7
Slide 6: 2013 Guidance
6 2013 Guidance 2012 FFO Results $477 million, or $0.54 per share. These results included certain one-time gains, which increased the result above our 2012 guidance of $0.50 to $0.51. Guidance assumptions Continued same store increases consistent with 2012 increases. Interest rates stay at current l
Slide 7: Selected Balance Sheet Information
7 Selected Balance Sheet Information In Millions In Millions 12/31/2012 12/31/2011 Total Assets $10,760 $10,919 Cash and restricted cash 325 317 Investment in marketable securities 328 289 Investment in unconsolidated entities 254 317 Mortgages, notes and margins payable 6,006 $ 5,903 $ Mortgages, n
Slide 8: Debt Maturities
8 Debt Maturities % of Total Debt as of 12/31/12 15.0% 11.4% 11.6% 13.3% 20.9% 27.8% * $250 million of total already refinanced through March 31, 2013
Slide 9: Long-Term Goals
9 Long-Term Goals Sustainable stockholder distributions while maintaining capital preservation Tailoring our portfolio: Retail, Lodging and Student Housing Expand & perfect these growth portfolios Position for stockholder liquidity Multiple liquidity events **Our goals anticipate capturing the recov
Slide 10: Portfolio Evolution
10 Portfolio Evolution Approximate size of future portfolio and breakdown by asset class Current portfolio contains approximately $3 billion of triple-net properties These portfolios are mostly triple-net properties Apartments Student Housing Bank Branches (Triple-Net)
Slide 11: Progress on Strategy
11 Progress on Strategy Sold 143 Single-Tenant Retail Properties (Bank Branches) @ $216 million Acquired 4 Multi-Tenant Retail Properties @ $104 million Stone Ridge Market – San Antonio, TX No disposition or acquisition fees were taken by any affiliates of the Inland American Business Manager for th
Slide 12: Progress on Strategy
12 Progress on Strategy Sold 4 Apartment Properties (1,602 units) @ $160 million Opened 2 Student Housing Properties (1,302 beds) @ $77 million No disposition or acquisition fees were taken by any affiliates of the Inland American Business Manager for these transactions Acquired 2 Student Housing Pr
Slide 13: Progress on Strategy
13 Progress on Strategy Sold 13 Limited Service Hotels (1,764 rooms) @ $132 million Acquired 7 Upper Upscale Hotels (2,624 rooms) @ $525 million No disposition or acquisition fees were taken by any affiliates of the Inland American Business Manager for these transactions Hilton Garden Inn – Akron, O
Slide 14: Why Student Housing?
14 Why Student Housing? We believe there are few players with both our development and management expertise Fragmented nature of segment provides room for growth through acquisitions Name # of Beds Rent per Beds Occupancy % (as of 12/31/12) American Campus Communities 88,089 $619 96% Education Realt
Slide 15: Why Student Housing?
15 Why Student Housing? Positive enrollment fundamentals key indicator Proved relatively recession resistant during credit crisis Enrollment in universities nationwide increased 12% over the last 10 years and is expected to grow about 13% by 2020. Universities are cash constrained Higher education s
Slide 16: Why Lodging?
16 Why Lodging? Current portfolio makes us comparable with other listed REITS *Chart does not include all public lodging companies Name # of Rooms Revenue / of Rooms Room Host Hotels 54,804 $96,453 Ashford Hospitality 25,573 $36,054 RLJ Lodging 21,600 $39,537 FelCor Lodging 18,822 $48,348 16,345 $42
Slide 17: Why Lodging?
17 Why Lodging? Revenue fundamentals continue to improve from industry lows in 2009 *Source STR & PKF
Slide 18: Why Lodging?
18 Why Lodging? Supply at historical lows until 2015 2.1% - 20 year average supply *Source STR Pricing has stayed divergent from operational performance Due to uncertainty in economy, a risk premium is being applied to lodging assets Attractive pricing for top tier assets still exist Recent transact
Slide 19: Portfolio Transformation by Category
19 Portfolio Transformation by Category Approximate size of future portfolio and breakdown by asset class Inland American Lodging Advisor - http://www.inlandamericanlodging.com
Slide 20: Why Multi-Tenant Retail?
20 Why Multi-Tenant Retail? Well-placed and high-traffic properties provide opportunities as economy improves to increase rents. Supply below 15-year average 1.7% -15 year average *Source Green Street **Strip Centers include necessity-based centers
Slide 21: Why NOT Single Tenant?
21 Why NOT Single Tenant? Interest rate risk As/when interest rates move up, the value of triple-net properties will decrease as this asset type trades closer to bond investments. Normalization of rates could be a big risk. Inflation risk Long-term leases provide limited ability to capture rent incr
Slide 22: Why NOT Office and Industrial?
22 Why NOT Office and Industrial? Office tenants continue to downsize Office space per employee* 2010 – ~225 sq. ft. 2012 – ~200 sq. ft. 2017 – ~150 sq. ft. Vacancy rates are high, especially in suburban markets with little demand in the near future. Increasing capital expenditures requirements. Dem
Slide 23: Key Points & Themes
23 Key Points & Themes Solid 2012 financial results* $0.54 FFO per share (includes certain one-time gains) Same store NOI up 3.0% Distributions sustainable and stable from property operations 2013 FFO guidance – $0.50 to $0.52 per share Executing on our long-term goals Tailoring portfolio Preparing
Slide 24: Q&A Session
24 Q&A Session Please submit your questions online now. We will do our best to answer as many questions in the time we have allowed today. If your exact question is not answered, a member of the Inland American team will contact you directly.
Slide 25: Year-End 2012 Earnings Call & 2013 Guidance
April 5, 2013 Year-End 2012 Earnings Call & 2013 Guidance Capturing the Recovery Cycle: A Focus on Growth, A Commitment to Value Creation
Slide 26: GAAP Reconciliation
26 GAAP Reconciliation Slide 12 Months Ended 12/31/12 12 Months Ended 12/31/11 Net income loss) attributable to Company $69,338) $316,253) Add: Depreciation and amortization related to investment properties and investment in unconsolidated entities 487,595 500,908 Provision for asset impairment refl
Slide 27: Inland American Basics
27 Inland American Basics # of SF (000s)/Rooms 12/31/12 % of Segment Properties Units/Beds Occupancy NOI ($000s) NOI Retail 585 22,264 sf 93.0% $278,263 36.8% Bank Branches 435 2,352 sf 99.0% $57,287 7.6% Multi-tenant Retail 150 19,912 sf 92.0% $220,976 29.2% Lodging 88 16,345 rooms 73.0% $214,910 2
Inland American Real Estate Trust — FY2012 Earnings Presentation on 6ix