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InvenTrust Properties Corp. (NYSE: IVT ) is a US retail REIT company with a key role in Sunbelt shopping centers, a region that expects to grow much faster than the national average over the nextI'm a personal investor. I am a financial journalist with special knowledge of the real estate market. I would like to mention that I'm a friend of Ignacio Zorzoli, an article writer for Seeking Alpha, but we don't have any business or economic associations. I cover different sectors and companies than he does, and ...

INVESTOR PRESENTATION Q1 2025 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 expectations of InvenTrust's management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statem ...

Financial Data and Key Metrics Changes - Same property NOI grew by 6.1% in Q1 2025, reaching $47.3 million, driven by strong demand and effective lease management [6][13] - NAREIT FFO for the quarter totaled $37.2 million or $0.48 per diluted share, representing a 6.7% increase year-over-year [13] - Core FFO rose 4.5% year-over-year to $0.46 per share, supported by internal growth and acquisitions [14] - The company declared an annualized dividend payment of $0.95 per share, a 5% increase over the previous year [15] Business Line Data and Key Metrics Changes - The portfolio remains highly leased, with small shop lease occupancy achieving a record high of 93.4%, up 130 basis points from last year [17] - The total portfolio ABR ended Q1 at $20.21 per square foot, reflecting a 3.1% increase compared to Q1 2024 [18] - The company executed 256,000 square feet of new leases and renewals during the quarter, achieving a retention rate of 90% [17] Market Data and Key Metrics Changes - 90.7% of net operating income is generated from the Sunbelt region, which continues to be a top-performing retail market [6] - The company is actively pursuing acquisitions in high-growth markets such as Asheville, Charlotte, Charleston, San Antonio, and Orlando [11] Company Strategy and Development Direction - The company is focused on necessity-based open retail centers in Sunbelt markets, which have shown resilience despite economic challenges [5][6] - Plans to exit California are underway, with expectations to significantly reduce investments in the state in 2025 [9][10] - The capital allocation plan includes evaluating asset sales and capital recycling to enhance the portfolio with high-quality necessity-based tenants [11][12] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the economic environment, citing strong tenant health and minimal exposure to recent retail bankruptcies [7][19] - The company anticipates some impact on same property NOI later in the year due to announced bankruptcies, but expects to maintain guidance for same property NOI growth of 3.5% to 4.5% [15][19] Other Important Information - The company maintains a low leverage ratio of 23.4%, allowing for opportunistic growth without relying heavily on capital markets [14][12] - The current pipeline for acquisitions stands at $1.5 to $2 billion, focusing on grocery-anchored centers [11] Q&A Session Summary Question: How does the company expect to achieve the 3.5% to 4.5% same store NOI growth for the year after a strong Q1? - Management indicated that while Q1 was strong, there are factors such as anticipated bad debt and unique Q1 circumstances that may lead to deceleration in the following quarters [21][22][25] Question: What is the reception and pricing expectation for the California assets currently on the market? - Management reported strong interest in the California assets, with several in the due diligence phase, and expressed confidence in potential pricing outcomes [33][34] Question: Has there been any change in leasing conversations post-April 2 amid macro uncertainty? - Management noted that leasing demand remains healthy and conversations with tenants have not changed significantly [35][36] Question: What is the company's strategy regarding capital recycling and market expansion? - Management confirmed that capital recycling involves selling lower cap rate California assets and reinvesting in higher-yielding opportunities, with a focus on maintaining quality in smaller markets [41][42][48]

分组1 - InvenTrust Properties Corp. reported quarterly funds from operations (FFO) of $0.46 per share, matching the Zacks Consensus Estimate and showing an increase from $0.44 per share a year ago [1] - The company posted revenues of $73.77 million for the quarter ended March 2025, which was 1.40% below the Zacks Consensus Estimate, compared to $66.8 million in the same quarter last year [2] - InvenTrust Properties shares have declined approximately 7.2% since the beginning of the year, while the S&P 500 has decreased by 5.5% [3] 分组2 - The current consensus FFO estimate for the upcoming quarter is $0.45, with expected revenues of $74.2 million, and for the current fiscal year, the estimate is $1.84 on revenues of $303.55 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Net income for the three months ended March 31, 2025, was $6.792 million, a significant increase from $2.900 million in the same period of 2024[101]. - Nareit FFO applicable to common shares and dilutive securities rose to $37.158 million in Q1 2025 from $30.846 million in Q1 2024[105]. - Core FFO applicable to common shares and dilutive securities increased to $36.229 million in Q1 2025, compared to $29.981 million in Q1 2024[105]. - Adjusted EBITDA for the three months ended March 31, 2025, was $44.004 million, up from $39.173 million in the same period of 2024[110]. - Same Property NOI increased by $2.738 million, or 6.1%, from $44.548 million in Q1 2024 to $47.286 million in Q1 2025, driven by increased occupancy and favorable lease terms[102]. Revenue and Income Sources - Lease income, net, increased by $6.9 million, driven by $6.3 million from acquired properties and $1.8 million from increased minimum base and ground rent due to higher occupancy and ABR PSF[91]. - The Annualized Base Rent (ABR) per square foot (PSF) increased to $20.21 in 2025 from $19.61 in 2024, reflecting improved rental income[84]. - Cash provided by operating activities increased to $20.2 million for Q1 2025, up from $14.8 million in Q1 2024, representing a $5.4 million increase[122]. Property Management and Operations - The retail portfolio as of March 31, 2025, included 68 properties with a Gross Leasable Area (GLA) of 10,972 thousand square feet, achieving an economic occupancy rate of 95.4% and a leased occupancy rate of 97.3%[84]. - Economic occupancy for Same Properties improved to 95.2% in Q1 2025 from 93.4% in Q1 2024, indicating stronger performance in existing properties[87]. - Total operating expenses rose to $59.3 million for the three months ended March 31, 2025, up from $55.1 million in 2024, with depreciation and amortization accounting for a $2.4 million increase[93]. Capital Structure and Financing - The company maintains a flexible capital structure and focuses on Sun Belt markets with favorable demographics to capitalize on potential future rent increases[80]. - Total long-term debt obligations amount to $850.7 million as of March 31, 2025, with fixed-rate principal payments totaling $743.4 million[126]. - The company has $400 million in variable-rate debt, all of which has been swapped to fixed rates as of March 31, 2025[130]. - The company has obligations for future payments under debt and lease agreements, with total payments due in 2025 amounting to $59.1 million[126]. Investment Activities - InvenTrust Properties Corp. acquired seven retail properties and disposed of one since January 1, 2024, contributing to a total income increase of $6.9 million for the three months ended March 31, 2025, compared to the same period in 2024[89]. - Total capital expenditures and leasing costs amounted to $5.336 million in Q1 2025, slightly down from $5.863 million in Q1 2024[111]. - The company plans to allocate $16.5 million for the acquisition of one investment property and $7.4 million for capital investments and leasing costs[124]. Shareholder Distributions - Distributions to stockholders totaled $18.4 million in Q1 2025, with cash distributions paid amounting to $17.5 million[120]. - The company reported a weighted average common shares outstanding of 77,563,971 (basic) and 78,160,787 (diluted) for Q1 2025[105]. - The company aims to maximize revenue from its retail platform and generate sustainable cash flow for stockholder distributions[115]. Interest and Expenses - Interest expense, net, decreased by $1.3 million to $8.3 million, primarily due to the extinguishment of a $72.5 million pooled mortgage payable in September 2024[96]. - General and administrative expenses increased by $0.6 million, primarily due to higher stock-based compensation costs[94]. - Cash used in financing activities rose to $19.7 million in Q1 2025 compared to $15.8 million in Q1 2024, indicating an increase of $3.9 million[122]. Other Financial Metrics - Cash used in investing activities decreased significantly to $7.1 million in Q1 2025 from $23.7 million in Q1 2024, reflecting a $16.6 million improvement[122]. - The fair value of interest rate swaps as of March 31, 2025, is reported at $10.6 million, down from $14.4 million as of December 31, 2024[131]. - There have been no material changes to the company's critical accounting estimates compared to the previous reporting period[129].

Financial Performance - Net Income for Q1 2025 was $6.8 million, or $0.09 per diluted share, compared to $2.9 million, or $0.04 per diluted share in Q1 2024[13] - Nareit FFO for Q1 2025 was $37.2 million, or $0.48 per diluted share, up from $30.8 million, or $0.45 per diluted share in Q1 2024[17] - Core FFO for Q1 2025 was $36.2 million, or $0.46 per diluted share, compared to $30.0 million, or $0.44 per diluted share in Q1 2024[18] - Total income for Q1 2025 was $73,771,000, compared to $66,798,000 in Q1 2024, an increase of 10.8%[33] - Total operating expenses for Q1 2025 were $59,264,000, up from $55,122,000 in Q1 2024, reflecting an increase of 7.8%[37] - Adjusted EBITDA for Q1 2025 was $44,004,000, an increase from $39,173,000 in Q1 2024, representing a growth of 12.5%[41] Property Performance - Same Property NOI for Q1 2025 was $47.3 million, reflecting a 6.1% increase compared to Q1 2024[19] - Same Property NOI for Q1 2025 was $47,286,000, up from $44,548,000 in Q1 2024, marking a growth of 6.1%[30] - Economic occupancy rate improved to 95.2% in Q1 2025 from 93.4% in Q1 2024[30] - Leased Occupancy as of March 31, 2025, was 97.3%, with Anchor Leased Occupancy at 99.5% and Small Shop Leased Occupancy at 93.4%[24] - Total leased properties reached 68 with an occupancy rate of 97.3% and an annualized base rent (ABR) of $209,642,000, translating to an ABR per square foot of $20.21[53] Debt and Liquidity - The Company had $577.4 million in total liquidity as of March 31, 2025, including $77.4 million in cash and cash equivalents[24] - Net debt as of March 31, 2025, was $663,377,000, a decrease from $718,183,000 as of December 31, 2023[30] - Total debt as of March 31, 2025, was $740,745,000, with a weighted average interest rate of 4.03%[43] - The company reported a net debt-to-adjusted EBITDA ratio of 4.1x for the trailing 12 months, unchanged from the previous quarter[30] Guidance and Projections - 2025 guidance includes Net Income per diluted share of $0.27 and Nareit FFO per diluted share of $1.83[26] - Same Property NOI growth is projected at 3.50% for 2025[26] Tenant and Lease Information - The company achieved a retention rate of approximately 90% for leases expiring during the quarter, with 290,000 square feet re-leased out of 323,000 square feet[56] - Total executed leases for Q1 2025 reached 53, covering 221 thousand GLA, with a contractual rent of $22.62 PSF, reflecting a 9.6% increase over the prior period[61] - Renewal leases accounted for 47 executed leases, with a GLA of 209 thousand and a rent of $21.79 PSF, showing an 8.7% increase compared to the previous period[61] - New leases in Q1 2025 totaled 6, with a GLA of 12 thousand and a contractual rent of $37.27 PSF, representing a significant 20.3% increase over prior new leases[61] Redevelopment and Expansion - Total redevelopment costs are projected to be $21.6 million with an estimated incremental yield on cost of 7-10%[66] - The company is redeveloping the Sarasota Pavilion to include an 18,000 square foot anchor space and additional small shop space[67] - The company plans to complete the Campus Marketplace redevelopment by Q2 2025 with estimated costs of $800,000[66] - The company is expanding its market presence with new developments and redevelopments across multiple states, including Texas and Florida[68] Market and Geographic Performance - The Texas market accounted for 38.5% of total ABR at $80,789,000, with an occupancy rate of 97.3% across 23 properties[53] - The Miami-Fort Lauderdale market had an occupancy rate of 98.4% and an ABR of $20,301,000, representing 9.7% of total ABR[53] - The average ABR per square foot for anchor tenants is $12.98, while for small shop tenants it is $33.65[55] - The total Gross Leasable Area (GLA) across all properties is 10,972 thousand square feet with an overall occupancy rate of 97.3%[74]

Property Portfolio - As of December 31, 2024, InvenTrust Properties Corp. owned 68 retail properties with a total gross leasable area (GLA) of approximately 10.97 million square feet[20]. - The retail portfolio increased to 68 properties in 2024 from 62 in 2023, with a Gross Leasable Area (GLA) of 10,972 thousand square feet, up from 10,324 thousand square feet[108]. - The geographical diversity of the retail portfolio shows that the Austin-Round Rock, TX market contributes 16.1% of total ABR, with an ABR PSF of $16.97[110]. - Approximately 38.5% of the total annualized base rental income was generated from properties located in Texas, with significant contributions from Austin (16.1%), Houston (10.2%), Dallas-Fort Worth-Arlington (9.0%), and San Antonio (3.2%)[42]. Occupancy and Rental Income - The economic occupancy rate was 95.3%, while the leased occupancy rate was 97.4%[20]. - Economic occupancy improved to 95.3% in 2024, compared to 93.3% in 2023, while leased occupancy rose to 97.4% from 96.2%[142]. - The annualized base rent (ABR) per square foot was $20.07[20]. - Average Base Rent (ABR) per square foot increased to $20.07 in 2024, up from $19.48 in 2023, reflecting a growth of 3%[109]. - Lease income, net, for the year ended December 31, 2024, increased by $15.3 million to $272.4 million compared to $257.1 million in 2023[149]. Financial Performance - Net income for the year ended December 31, 2024, was $13,658 million, an increase of $8,389 million compared to $5,269 million in 2023[161]. - Nareit FFO Applicable to Common Shares and Dilutive Securities rose to $126,710 million in 2024 from $115,498 million in 2023[170]. - Core FFO Applicable to Common Shares and Dilutive Securities increased to $122,769 million in 2024, compared to $111,858 million in 2023[170]. - Adjusted EBITDA for 2024 was $158,009 million, up from $146,459 million in 2023[176]. - Same Property NOI increased by $7.7 million, or 5.0%, from $154,848 million in 2023 to $162,555 million in 2024, driven by increased occupancy and favorable lease spreads[163]. Capital Structure and Financing - InvenTrust maintains a flexible capital structure to fund current capital needs and future growth opportunities, ensuring ample liquidity for strategic investments[24]. - The company may issue additional equity or debt securities in the future, which could dilute existing stockholders' investments and decrease the market price of common stock[66]. - The company has a share repurchase program of up to $150 million, with no shares repurchased as of December 31, 2024[119]. - The total long-term debt, including fixed rate debt and interest, is projected to be $858.3 million by the end of 2024[205]. Acquisitions and Dispositions - The company acquired properties totaling 282,070 square feet in 2024, with an acquisition price of $29,500 million and an assumption of mortgage debt of $13,000 million[135]. - The company disposed of properties with a total square footage of 218 thousand feet in 2024, resulting in a net gain of $3,857 million from the sales[136]. - The company disposed of one retail property for a gross disposition price of $68.6 million in 2024, compared to $13.1 million for one property in 2023[194]. Risks and Challenges - The unpredictable nature of pandemics and health crises could materially affect the financial condition and cash flows of the company and its tenants[47]. - Rising interest rates and inflationary pressures could exacerbate risks associated with real estate investments and operational costs[52]. - The company faces risks related to the expansion, development, and re-development of properties, which may not perform as expected[50]. - Geographic concentration increases vulnerability to natural disasters and climate change, potentially impacting property values and tenant operations[59]. - The company faces risks related to environmental liabilities that could result in significant costs and adversely affect profitability[82]. Corporate Governance and Responsibility - The company emphasizes corporate responsibility and governance as part of its overall business strategy, aiming to enhance communities and conserve resources[32]. - Compliance with ESG-related laws and regulations may lead to increased costs and scrutiny, impacting financial performance[84]. - The company may experience reputational damage or litigation risks if corporate responsibility standards are not met[87]. Employee Engagement and Workplace Culture - In 2024, 90% of employees were highly engaged, contributing to a productive work environment[30]. - The company has been recognized as one of Chicago's Top Workplaces for three consecutive years[30]. Cybersecurity - Cybersecurity risks could lead to financial penalties and legal liability, adversely affecting business operations and financial condition[88]. - The company has not identified any material risks from known cybersecurity threats that have affected operations or financial condition[102]. - The Board oversees cybersecurity risks, with the Audit Committee responsible for the implementation of the cybersecurity risk management program[103]. - Cybersecurity risk management program is integrated into the overall enterprise risk management program, focusing on protecting critical systems and information[100].

Financial Data and Key Metrics Changes - The company reported a net acquisition assumption of $100 million for 2025, representing a 4.5% increase [6] - The total portfolio ABR ended 2024 at $20.07 per square foot, reflecting a 3% increase compared to 2023 [12] - Retention rates stood at 94% in 2024, up from 90% the previous year [13][24] Business Line Data and Key Metrics Changes - Total portfolio leased occupancy increased to 97.4% by the end of 2024, a 390 basis point increase from 93.0% at the time of listing in 2021 [9] - Anchor space leased occupancy ended the year at 99.8%, matching an all-time high [9] - Small shop lease occupancy finished the quarter at 93.3%, also an all-time high [9] - The company signed 210 leases totaling 1.3 million square feet in 2024 [10] Market Data and Key Metrics Changes - The company emphasized the strong demand for high-quality retail space, despite recent store closures and bankruptcies in the retail sector [16] - The portfolio has minimal exposure to distressed retailers, with only one Joann location representing 0.2% of ABR [15] Company Strategy and Development Direction - The strategy focuses on maximizing cash flow by optimizing rents, enhancing occupancy, and refining the merchandising mix across retail centers [7] - The company aims to strategically assemble a mix of necessity-based retailers to drive tenant sales growth and maximize leasing spreads [11] - The company is undergoing a capital recycling endeavor in 2025, particularly in California, to redeploy proceeds into more attractive markets [22][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the competitive environment for acquiring grocery-anchored centers but expressed confidence in their ability to remain aggressive and opportunistic [36] - The company expects a baseline retention rate of around 90% for 2025, with leasing spreads anticipated to remain similar to the previous year [26][27] - Management noted that demand for retail space remains strong, with many retailers increasing long-term store opening targets in their markets [16] Other Important Information - The company has successfully embedded rent escalators of 3% or higher in 90% of renewals, supporting long-term NOI growth [13] - Management highlighted the importance of tenant retention in reducing downtime and lowering tenant improvement costs [13] Q&A Session Summary Question: Acquisition trajectory and $100 million net investment figure - Management indicated that the $100 million figure is conservative and that the gross number could be materially higher depending on disposition activity in California [22][23] Question: Expectations for retention rate and lease spreads in 2025 - Management expects a retention rate around 90% for 2025 and anticipates lease spreads to be similar to the previous year [25][27] Question: Balance sheet strategy and growth - Management discussed the under-leveraged balance sheet and the potential to leverage up if opportunities arise [34] Question: Competitive environment for acquisitions - Management acknowledged the competitive landscape but expressed confidence in their ability to secure deals [36] Question: Cap rates and buyer interest in California assets - Management noted strong demand for California assets but emphasized they do not need to sell unless the pricing is satisfactory [45] Question: Mark-to-market opportunities in acquisitions - Management highlighted that market rents are outpacing their current growth profile, allowing for favorable renegotiations [48][49] Question: Risk-adjusted returns in smaller markets - Management indicated that risk-adjusted returns in smaller markets like Charleston and Richmond are compelling and comparable to larger markets [56][61] Question: Pricing comparison for lifestyle centers versus grocery-anchored centers - Management stated that lifestyle centers fall in between core grocery-anchored and power centers in terms of risk-adjusted returns [75]

| No. | | | --- | --- | | Introductory Notes | i | | Press Release | iii | | Financial Information | | | Summary Financial Information | 1 | | Consolidated Balance Sheets | 2 | | Consolidated Statements of Operations and Comprehensive Income (Loss) | 3 | | Consolidated Supplemental Details of Assets and Liabilities | 4 | | Consolidated Supplemental Details of Operations | 5 | | Reconciliation of Non-GAAP Measures | | | Same Property Net Operating Income | 6 | | Nareit FFO and Core FFO | 7 | | EBITDA and Adj ...