[Introductory Notes](index=3&type=section&id=Introductory%20Notes) [About InvenTrust Properties Corp.](index=3&type=section&id=About%20InvenTrust%20Properties%20Corp.) InvenTrust Properties Corp. (IVT) is a Sun Belt multi-tenant essential retail REIT focused on acquiring, leasing, redeveloping, and managing grocery-anchored neighborhood and community centers, as well as high-quality power centers, emphasizing a flexible capital structure and opportunistic property dispositions - InvenTrust Properties Corp. (IVT) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers[11](index=11&type=chunk) - Management pursues the Company's business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, and maintaining a flexible capital structure[11](index=11&type=chunk) [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) The report contains forward-looking statements subject to significant risks and uncertainties, including interest rate movements, economic performance, inflation, competitive factors, and government policy changes, cautioning readers not to place undue reliance on these statements, and the company undertakes no obligation to update them - Forward-Looking Statements in this supplemental are subject to significant risks and uncertainties, and actual results may differ materially from those described[13](index=13&type=chunk) - Factors that could cause actual results to differ include interest rate movements, economic performance, inflation, competitive factors, e-commerce impact, retailer store closings, consolidation, bankruptcies, and government policy changes[14](index=14&type=chunk) - IVT cautions not to place undue reliance on any forward-looking statements and undertakes no obligation to update them publicly, except as required by law[15](index=15&type=chunk) [Notice Regarding Non-GAAP Financial Measures](index=3&type=section&id=Notice%20Regarding%20Non-GAAP%20Financial%20Measures) The supplemental report includes non-GAAP financial measures, which management does not consider alternatives to GAAP measures, and these measures may not reflect the entire portfolio's operations, the impact of various expenses, or liquidity, thus requiring review in conjunction with GAAP measurements, with reconciliations provided on pages 6 and 7, and definitions on page 21 - This supplemental contains and refers to certain non-GAAP measures, which management does not consider alternatives to measures required in accordance with GAAP[16](index=16&type=chunk) - Non-GAAP measures should not be viewed as an alternative measure of IVT's financial performance or liquidity, as they may not reflect the operations of the entire portfolio or the impact of certain expenses[16](index=16&type=chunk) - Reconciliations of non-GAAP measures to comparable GAAP financial measures are included on pages 6 and 7, and definitions are in the Glossary of Terms on page 21[16](index=16&type=chunk) [Availability of Information on InvenTrust Properties Corp.'s Website and Social Media Channels](index=4&type=section&id=Availability%20of%20Information%20on%20InvenTrust%20Properties%20Corp.%27s%20Website%20and%20Social%20Media%20Channels) InvenTrust routinely discloses material information through SEC filings, press releases, public conference calls, webcasts, its investor relations website, and social media channels (X and LinkedIn), encouraging investors to review these channels for company information - InvenTrust routinely announces material information to investors and the marketplace using U.S. Securities and Exchange Commission filings, press releases, public conference calls, webcasts and the InvenTrust investor relations website[18](index=18&type=chunk) - The Company also uses social media channels (e.g., InvenTrust X account and LinkedIn account) as a means of disclosing information[18](index=18&type=chunk) [Earnings Release](index=5&type=section&id=Earnings%20Release) [2025 Second Quarter Results Overview](index=5&type=section&id=2025%20Second%20Quarter%20Results%20Overview) InvenTrust Properties Corp. reported strong financial and operating results for Q2 2025, with Net Income significantly increasing to $95.9 million ($1.23 per diluted share) from $1.5 million ($0.02 per diluted share) in Q2 2024, completing a major disposition of California assets and redeploying capital into Sun Belt markets, while maintaining strong Same Property NOI and FFO growth guidance Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | | Net Income | $95.9 million | $1.5 million | | Net Income per diluted share | $1.23 | $0.02 | | Nareit FFO per diluted share | $0.45 | $0.44 | | Core FFO per diluted share | $0.44 | $0.43 | | Same Property NOI growth | 4.8% | N/A | | Leased Occupancy (as of June 30, 2025) | 97.3% | N/A | | Blended comparable lease spread | 16.4% | N/A | | Gross disposition price (California assets) | $306.0 million | N/A | | Aggregate acquisition price | $105.4 million | N/A | - The company successfully completed the disposition of the majority of its California assets for **$306.0 million** and efficiently redeployed a significant portion of that capital into growing Sun Belt markets[22](index=22&type=chunk)[27](index=27&type=chunk) - Leased Occupancy as of June 30, 2025, was **97.3%**, with Anchor Leased Occupancy at **99.5%** and Small Shop Leased Occupancy at **93.8%** (up **40 basis points** sequentially)[23](index=23&type=chunk)[27](index=27&type=chunk) [Liquidity and Capital Structure](index=7&type=section&id=Liquidity%20and%20Capital%20Structure) As of June 30, 2025, InvenTrust maintained strong liquidity with $787.1 million, comprising $287.1 million in cash and $500.0 million available under its Revolving Credit Facility, with a weighted average interest rate on debt of 4.03% and a remaining term of 2.9 years, actively managing its debt by assuming an $8.0 million mortgage and extinguishing a $13.0 million mortgage during the quarter Liquidity and Debt Metrics (as of June 30, 2025) | Metric | Amount | | :-------------------------------- | :------------- | | Total Liquidity | $787.1 million | | Cash and cash equivalents | $287.1 million | | Availability under Revolving Credit Facility | $500.0 million | | Mortgage debt maturing in 2025 | $22.9 million | | Term loan debt maturing in 2026 | $200.0 million | | Weighted average interest rate on debt | 4.03% | | Weighted average remaining term of debt | 2.9 years | - On April 1, 2025, the Company assumed an **$8.0 million** mortgage payable with the acquisition of Plaza Escondida[31](index=31&type=chunk) - On May 9, 2025, the Company extinguished a **$13.0 million** mortgage payable secured by The Plant with its available liquidity[31](index=31&type=chunk) [Subsequent Events](index=7&type=section&id=Subsequent%20Events) Following the quarter end, InvenTrust continued its investment activity by acquiring two additional properties in July 2025: Marketplace at Encino Park in San Antonio, Texas, for $38.5 million, and West Broad Marketplace in Richmond, Virginia, for $86.0 million, both funded with cash on hand - On July 1, 2025, the Company acquired Marketplace at Encino Park, a **92,000 square foot** neighborhood center anchored by Sprouts Farmers Market in San Antonio, Texas, for a gross acquisition price of **$38.5 million**[31](index=31&type=chunk) - On July 17, 2025, the Company acquired West Broad Marketplace, a **386,000 square foot** community center anchored by Wegmans in Richmond, Virginia, for a gross acquisition price of **$86.0 million**[31](index=31&type=chunk) [2025 Guidance](index=8&type=section&id=2025%20Guidance) InvenTrust updated its 2025 guidance, projecting Net Income per diluted share between $1.43 and $1.49, Nareit FFO per diluted share between $1.83 and $1.89, and Core FFO per diluted share between $1.79 and $1.83, with Same Property NOI Growth expected to be 4.00% to 5.00% Updated 2025 Guidance | Metric | Low End | High End | | :-------------------------------- | :------ | :------- | | Net Income per diluted share | $1.43 | $1.49 | | Nareit FFO per diluted share | $1.83 | $1.89 | | Core FFO per diluted share | $1.79 | $1.83 | | Same Property NOI ("SPNOI") Growth | 4.00% | 5.00% | | General and administrative | $34,250 | $35,750 | | Interest expense, net | $31,000 | $31,500 | | Net investment activity | ~ $100,000 | ~ $100,000 | - The 2025 guidance excludes projections related to gains or losses on dispositions, debt transactions, and depreciation, amortization, and straight-line rent adjustments related to acquisitions and dispositions[36](index=36&type=chunk) - The guidance incorporates an expectation of uncollectibility, reflected as **65 - 85 basis points** of expected total revenue[36](index=36&type=chunk) [Financial Information](index=9&type=section&id=Financial%20Information) [Summary Financial Information](index=9&type=section&id=Summary%20Financial%20Information) The company reported significant financial improvements for Q2 and H1 2025, with Net Income, FFO, and Core FFO showing substantial year-over-year growth, Same Property NOI increasing by 4.8% for Q2 and 5.6% for H1 2025, improved debt metrics with Net Debt-to-Adjusted EBITDA decreasing to 2.8x, and total liquidity reaching $787.1 million Summary Financial Results (Q2 & H1 2025 vs. 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $95,942 | $1,498 | $102,734 | $4,398 | | Net income per diluted share | $1.23 | $0.02 | $1.31 | $0.06 | | Nareit FFO | $35,484 | $30,068 | $72,642 | $60,914 | | Nareit FFO per diluted share | $0.45 | $0.44 | $0.93 | $0.89 | | Core FFO | $34,336 | $29,134 | $70,565 | $59,115 | | Core FFO per diluted share | $0.44 | $0.43 | $0.90 | $0.87 | | Same Property NOI | $42,626 | $40,667 | $85,061 | $80,584 | | Same Property NOI growth | 4.8% | N/A | 5.6% | N/A | | Adjusted EBITDA | $42,154 | $38,306 | $86,158 | $77,479 | | Distributions declared per common share | $0.24 | $0.23 | $0.48 | $0.45 | Capital Information and Debt Metrics (as of June 30, 2025 vs. Dec 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Shares outstanding | 77,606,396 | 77,450,794 | | Outstanding Debt, net | $746,335 | $740,415 | | Net Debt | $459,201 | $653,020 | | Net Debt-to-Adjusted EBITDA (trailing 12 months) | 2.8x | 4.1x | | Fixed charge coverage (trailing 12 months) | 5.2x | 4.5x | | Total Liquidity | $787,134 | N/A | Portfolio Metrics (as of June 30, 2025 vs. 2024) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | No. of properties (Total Portfolio) | 67 | 64 | | GLA (Total Portfolio) | 10,556 | 10,484 | | Leased Occupancy (Total Portfolio) | 97.3% | 96.4% | | ABR PSF (Total Portfolio) | $20.18 | $19.71 | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, InvenTrust reported total assets of $2,709.5 million, an increase from $2,635.9 million at December 31, 2024, with net investment properties decreasing slightly, cash and cash equivalents seeing a substantial increase, total liabilities also increasing, but total stockholders' equity growing to $1,822.3 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total assets | $2,709,484 | $2,635,950 | | Net investment properties | $2,199,641 | $2,326,901 | | Cash, cash equivalents, and restricted cash | $294,039 | $91,221 | | Debt, net | $746,335 | $740,415 | | Total liabilities | $887,198 | $875,945 | | Total stockholders' equity | $1,822,286 | $1,760,005 | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For the three months ended June 30, 2025, total income increased to $73.6 million from $67.4 million in the prior year, driven by higher lease income, with net income surging to $95.9 million from $1.5 million, primarily due to a $90.9 million gain on sale of investment properties, while operating expenses also increased and interest expense decreased Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Total income | $73,551 | $67,423 | $147,322 | $134,221 | | Total operating expenses | $61,114 | $56,740 | $120,378 | $111,862 | | Interest expense, net | $(8,346) | $(9,640) | $(16,668) | $(19,274) | | Gain on sale of investment properties | $90,909 | $— | $90,909 | $— | | Net income | $95,942 | $1,498 | $102,734 | $4,398 | | Comprehensive income | $93,606 | $570 | $96,570 | $7,472 | - Net income for the three months ended June 30, 2025, was **$95.9 million**, or **$1.23 per diluted share**, compared to **$1.5 million**, or **$0.02 per diluted share**, for the same period in 2024, largely due to a **$90.9 million** gain on sale of investment properties[39](index=39&type=chunk) [Condensed Consolidated Supplemental Details of Assets and Liabilities](index=12&type=section&id=Condensed%20Consolidated%20Supplemental%20Details%20of%20Assets%20and%20Liabilities) Supplemental details reveal a significant increase in cash and cash equivalents to $287.1 million as of June 30, 2025, from $87.4 million at year-end 2024, with accounts and rents receivable slightly decreasing, deferred costs and other assets, net, also seeing a minor reduction, and other liabilities experiencing a modest increase Supplemental Details of Assets and Liabilities (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $287,134 | $87,395 | | Restricted cash | $6,905 | $3,826 | | Base rent, recoveries, and other receivables | $9,246 | $10,273 | | Straight-line rent receivables | $25,913 | $25,858 | | Deferred leasing costs, net | $15,804 | $16,139 | | Derivative assets | $8,596 | $14,426 | | Other liabilities (total) | $29,995 | $28,703 | [Condensed Consolidated Supplemental Details of Operations](index=13&type=section&id=Condensed%20Consolidated%20Supplemental%20Details%20of%20Operations) For Q2 2025, minimum base rent increased to $47.2 million from $43.2 million in Q2 2024, with real estate tax recoveries and common area maintenance recoveries also rising, property operating expenses, real estate taxes, and general and administrative expenses all increasing year-over-year, while interest expense, net, decreased due to lower mortgages payable Supplemental Details of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Minimum base rent | $47,158 | $43,189 | $94,224 | $85,636 | | Real estate tax recoveries | $9,394 | $8,294 | $17,993 | $16,399 | | Common area maintenance, insurance, and other recoveries | $9,110 | $8,041 | $18,509 | $15,895 | | Property operating expenses | $11,476 | $10,243 | $22,223 | $20,242 | | Real estate taxes | $10,194 | $9,046 | $19,550 | $18,027 | | General and administrative expense | $8,706 | $8,661 | $17,253 | $16,635 | | Total interest expense, net | $8,346 | $9,640 | $16,668 | $19,274 | | Interest on cash and cash equivalents | $912 | $471 | $1,584 | $1,282 | [Reconciliation of Non-GAAP Measures](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) [Same Property Net Operating Income](index=14&type=section&id=Same%20Property%20Net%20Operating%20Income) Same Property Net Operating Income (NOI) for the three months ended June 30, 2025, increased by 4.8% to $42.6 million, and for the six months, it grew by 5.6% to $85.1 million, compared to the respective periods in 2024, driven by increases in minimum base rent and various recoveries, partially offset by higher operating expenses Same Property NOI (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Total income | $60,932 | $57,602 | $120,276 | $114,187 | | Total operating expenses | $18,306 | $16,935 | $35,215 | $33,603 | | Same Property NOI | $42,626 | $40,667 | $85,061 | $80,584 | | Same Property NOI Growth | 4.8% | N/A | 5.6% | N/A | | Same Property Count | 57 | N/A | 56 | N/A | - Same Property NOI for the three months ended June 30, 2025, was **$42.6 million**, a **4.8%** increase, compared to the same period in 2024[43](index=43&type=chunk) - Same Property NOI for the six months ended June 30, 2025, was **$85.1 million**, a **5.6%** increase, compared to the same period in 2024[43](index=43&type=chunk) [Nareit FFO and Core FFO](index=15&type=section&id=Nareit%20FFO%20and%20Core%20FFO) Nareit FFO for Q2 2025 was $35.5 million ($0.45 per diluted share), up from $30.1 million ($0.44 per diluted share) in Q2 2024, and Core FFO also increased to $34.3 million ($0.44 per diluted share) from $29.1 million ($0.43 per diluted share) in the prior year, reflecting adjustments for depreciation, amortization, and gains on property sales Nareit FFO and Core FFO (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $95,942 | $1,498 | $102,734 | $4,398 | | Depreciation and amortization of real estate assets | $30,451 | $28,570 | $60,817 | $56,516 | | Gain on sale of investment properties | $(90,909) | $— | $(90,909) | $— | | Nareit FFO Applicable to Common Shares and Dilutive Securities | $35,484 | $30,068 | $72,642 | $60,914 | | Core FFO Applicable to Common Shares and Dilutive Securities | $34,336 | $29,134 | $70,565 | $59,115 | | Nareit FFO per diluted share | $0.45 | $0.44 | $0.93 | $0.89 | | Core FFO per diluted share | $0.44 | $0.43 | $0.90 | $0.87 | [EBITDA and Adjusted EBITDA](index=15&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) EBITDA for Q2 2025 significantly increased to $135.2 million from $40.1 million in Q2 2024, primarily driven by the gain on sale of investment properties, while Adjusted EBITDA, which excludes such gains and other non-operating items, also rose to $42.2 million from $38.3 million in the same period EBITDA and Adjusted EBITDA (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $95,942 | $1,498 | $102,734 | $4,398 | | Interest expense, net | $8,346 | $9,640 | $16,668 | $19,274 | | Depreciation and amortization | $30,738 | $28,790 | $61,352 | $56,958 | | EBITDA | $135,166 | $40,060 | $181,030 | $80,895 | | Gain on sale of investment properties | $(90,909) | $— | $(90,909) | $— | | Adjusted EBITDA | $42,154 | $38,306 | $86,158 | $77,479 | [Summary of Outstanding Debt](index=16&type=section&id=Summary%20of%20Outstanding%20Debt) [Debt Profile and Maturities](index=16&type=section&id=Debt%20Profile%20and%20Maturities) As of June 30, 2025, InvenTrust's total debt, net, was $746.3 million, with a weighted average interest rate of 4.03% and a remaining term of 2.9 years, comprising fixed-rate secured debt ($88.3 million) and fixed-rate unsecured debt ($650.0 million), with significant maturities in 2026 ($200.0 million) and 2027 ($226.0 million) Summary of Outstanding Debt (as of June 30, 2025, in thousands) | Debt Type | Balance | Weighted Average Interest Rate | Weighted Average Years to Maturity | | :-------------------------------- | :------ | :----------------------------- | :------------------------------- | | Fixed rate secured debt | $88,267 | 3.99% | 2.7 | | Fixed rate unsecured debt | $650,000 | 4.04% | 3.0 | | Total secured and unsecured debt | $738,267 | 4.03% | 2.9 | | Finance lease liability | $10,984 | N/A | N/A | | Total Debt, net | $746,335 | N/A | N/A | Schedule of Maturities by Year (in thousands) | Maturity Year | Total Debt, net | | :-------------------------------- | :-------------- | | 2025 | $22,880 | | 2026 | $200,000 | | 2027 | $226,000 | | 2028 | $— | | 2029 | $181,500 | | Thereafter | $118,871 | [Debt Covenants, Interest Rate Swaps, and Capital Investments and Leasing Costs](index=17&type=section&id=Debt%20Covenants%2C%20Interest%20Rate%20Swaps%2C%20and%20Capital%20Investments%20and%20Leasing%20Costs) [Debt Covenants Compliance](index=17&type=section&id=Debt%20Covenants%20Compliance) InvenTrust demonstrated strong compliance with its debt covenants for the trailing 12 months ended Q2 2025, with the Leverage Ratio at 23.0% (below the 60.0% limit), Fixed Charge Coverage Ratio at 4.7 (above the 1.50 minimum), and Maximum Dividend Payout at 49.7% (below the 95% limit) Debt Covenants (trailing 12 months, Q2 2025) | Description | Term Loan Covenants | Senior Note Covenants | Q2 2025 Actual | | :-------------------------------- | :-------------------- | :-------------------- | :------------- | | Leverage Ratio | < 60.0% | < 60.0% | 23.0% | | Fixed Charge Coverage Ratio | > 1.50 | > 1.50 | 4.7 | | Maximum Dividend Payout | < 95% | N/A | 49.7% | | Unsecured Interest Coverage Ratio | > 1.75 | > 1.75 | 6.2 | | Unsecured Leverage Ratio | < 60% | < 60% | 23.8% | [Interest Rate Swaps](index=17&type=section&id=Interest%20Rate%20Swaps) As of June 30, 2025, the company was party to five effective interest rate swap agreements with a total notional amount of $400.0 million, converting variable 1-Month SOFR rates into fixed rates ranging from 1.48% to 3.69%, achieving fixed rates between 2.78% and 4.99% on the underlying term loans Interest Rate Swaps (as of June 30, 2025) | Term Loan | Notional Amount | | :-------------------------------- | :-------------- | | 5.5 year Term Loan (4/3/23 - 3/22/27) | $100,000 | | 5 year Term Loan (12/21/23 - 9/22/26) | $100,000 | | 5 year Term Loan (12/21/23 - 9/22/26) | $100,000 | | 5.5 year Term Loan (6/21/24 - 3/22/27) | $50,000 | | 5.5 year Term Loan (6/21/24 - 3/22/27) | $50,000 | | Total | $400,000 | - The Company is party to five effective interest rate swap agreements, fixing interest rates on **$400.0 million** of term loan debt[55](index=55&type=chunk) [Capital Investments and Leasing Costs](index=17&type=section&id=Capital%20Investments%20and%20Leasing%20Costs) Total capital investments and leasing costs for the three months ended June 30, 2025, were $10.7 million, up from $9.4 million in Q2 2024, including tenant improvements, leasing costs, property improvements, and development/redevelopment direct and indirect costs Capital Investments and Leasing Costs (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Tenant improvements | $1,370 | $3,163 | $2,257 | $5,461 | | Leasing costs | $1,042 | $662 | $1,851 | $1,653 | | Property improvements | $3,975 | $2,323 | $7,187 | $4,452 | | Development and redevelopment direct costs | $3,518 | $2,599 | $5,312 | $3,637 | | Total capital expenditures and leasing costs | $6,773 | $6,520 | $12,109 | $12,383 | | Capital investments and leasing costs (total) | $10,731 | $9,427 | $18,104 | $16,520 | [Portfolio and Leasing Overview](index=18&type=section&id=Portfolio%20and%20Leasing%20Overview) [Markets and Tenant Size](index=18&type=section&id=Markets%20and%20Tenant%20Size) InvenTrust's portfolio comprises 67 properties with 10,556 thousand square feet of GLA, maintaining a 97.3% leased occupancy and an ABR PSF of $20.18, with Texas as the largest market by GLA and ABR, followed by Florida and North Carolina, and anchor tenants (10,000 SF+) having a 99.5% leased occupancy, while small shop tenants (under 10,000 SF) have 93.8% leased occupancy Portfolio by Market (Top 5 by ABR) | Market | No. of Properties | Leased Occupancy | ABR (in thousands) | ABR PSF | ABR as % of Total | GLA (in thousands) | GLA as % of Total | | :-------------------------------- | :---------------- | :--------------- | :----------------- | :-------- | :---------------- | :----------------- | :---------------- | | Austin-Round Rock, TX | 8 | 98.4% | $33,495 | $17.12 | 16.6% | 2,091 | 19.8% | | Houston-Sugar Land-Baytown, TX | 6 | 95.7% | $22,168 | $16.90 | 11.0% | 1,378 | 13.1% | | Atlanta Metro Area, GA | 10 | 97.6% | $21,266 | $21.12 | 10.5% | 1,069 | 10.1% | | Miami-Fort Lauderdale-Miami Beach, FL | 3 | 98.9% | $20,425 | $24.30 | 10.1% | 859 | 8.1% | | Dallas-Fort Worth-Arlington, TX | 7 | 97.6% | $19,002 | $20.86 | 9.4% | 941 | 8.9% | Portfolio by State (Top 3 by ABR) | State | No. of Properties | Leased Occupancy | ABR (in thousands) | ABR PSF | ABR as % of Total | GLA (in thousands) | GLA as % of Total | | :-------------------------------- | :---------------- | :--------------- | :----------------- | :-------- | :---------------- | :----------------- | :---------------- | | Texas | 23 | 97.3% | $81,412 | $18.40 | 40.3% | 4,671 | 44.3% | | Florida | 12 | 97.2% | $44,172 | $21.08 | 21.9% | 2,263 | 21.4% | | North Carolina | 10 | 97.6% | $25,776 | $21.15 | 13.0% | 1,257 | 11.9% | Tenant Type Metrics | Tenant type | Leased Occupancy | ABR (in thousands) | ABR PSF | GLA (in thousands) | | :-------------------------------- | :--------------- | :----------------- | :-------- | :----------------- | | Anchor Tenants (>= 10,000 SF) | 99.5% | $80,549 | $12.73 | 6,542 | | Small Shop Tenants (< 10,000 SF) | 93.8% | $121,089 | $33.04 | 4,014 | [Top 25 Tenants by ABR and Tenant Merchandise Mix](index=19&type=section&id=Top%2025%20Tenants%20by%20ABR%20and%20Tenant%20Merchandise%20Mix) The top 25 tenants account for 31.8% of total ABR and 44.4% of occupied GLA, with Publix Super Markets and Kroger being the largest contributors, and the tenant merchandise mix is diversified, with Grocery/Drug stores representing the largest category at 18.3% of ABR, followed by Quick Service Restaurants (12.1%) and Personal Health and Beauty Services (11.3%) Top 5 Tenants by ABR (in thousands) | Parent Name | ABR | % of Total ABR | | :-------------------------------- | :------ | :------------- | | Publix Super Markets, Inc. | $7,321 | 3.6% | | Kroger | $7,210 | 3.6% | | TJX Companies | $5,143 | 2.6% | | Albertson's | $4,359 | 2.2% | | H.E.B. | $4,292 | 2.1% | Tenant Merchandise Mix (Top 5 Categories by ABR) | Tenant Category | ABR (in thousands) | % of Total ABR | | :-------------------------------- | :----------------- | :------------- | | Grocery / Drug | $36,922 | 18.3% | | Quick Service Restaurants | $24,398 | 12.1% | | Personal Health and Beauty Services | $22,694 | 11.3% | | Medical | $20,110 | 10.0% | | Full Service Restaurants | $18,522 | 9.2% | - The Top 25 Tenants by ABR represent **31.8%** of total ABR and **44.4%** of occupied GLA[62](index=62&type=chunk) [Comparable & Non-Comparable Lease Statistics](index=20&type=section&id=Comparable%20%26%20Non-Comparable%20Lease%20Statistics) For the six months ended June 30, 2025, the company re-leased 490 thousand square feet, achieving a retention rate of approximately 91%, with blended comparable lease spreads for Q2 2025 at 16.4%, new leases showing a 44.1% increase, and renewal leases a 9.2% increase over prior contractual rent, and small shop tenants generally seeing higher rent increases than anchor tenants - The Company's portfolio had **537 thousand square feet** expiring during the six months ended June 30, 2025, of which **490 thousand square feet** was re-leased, achieving a retention rate of approximately **91%**[64](index=64&type=chunk) Comparable Lease Spreads (Q2 2025) | Lease Type | % Change over Prior Lease Rent | | :-------------------------------- | :----------------------------- | | All Tenants (Blended Comparable) | 16.4% | | Renewal Leases (All Tenants) | 9.1% | | New Leases (All Tenants) | 40.5% | | Renewal Leases (Anchor Tenants) | 3.8% | | New Leases (Anchor Tenants) | 94.4% | | Renewal Leases (Small Shop Tenants) | 11.9% | | New Leases (Small Shop Tenants) | 23.8% | Comparable Lease Spreads (Trailing Four Quarters Ended June 30, 2025) | Period | Total Renewals and New Leases (% Change) | | :-------------------------------- | :--------------------------------------- | | Q2 2025 | 16.4% | | Q1 2025 | 9.7% | | Q4 2024 | 16.2% | | Q3 2024 | 9.8% | | Total | 13.0% | [Tenant Lease Expirations](index=22&type=section&id=Tenant%20Lease%20Expirations) The company has a staggered lease expiration schedule, with 3.8% of total GLA expiring in 2025, 8.8% in 2026, and 15.2% in 2027, and small shop tenants having a higher ABR PSF for expiring leases ($36.15) compared to anchor tenants ($12.98), indicating potential for significant rent growth upon renewal or re-leasing Total Lease Expirations by Year (GLA and ABR in thousands) | Lease Expiration Year | GLA of Expiring Leases | Percent of Total GLA | ABR of Expiring Leases | Percent of Total ABR | Expiring ABR PSF | | :-------------------------------- | :--------------------- | :------------------- | :--------------------- | :------------------- | :--------------- | | 2025 | 384 | 3.8% | $4,757 | 2.2% | $12.39 | | 2026 | 895 | 8.8% | $21,780 | 10.1% | $24.34 | | 2027 | 1,541 | 15.2% | $31,948 | 14.7% | $20.73 | Anchor Tenant Lease Expirations by Year (GLA and ABR in thousands) | Lease Expiration Year | GLA of Expiring Leases | Percent of Total GLA | ABR of Expiring Leases | Percent of Total ABR | Expiring ABR PSF | | :-------------------------------- | :--------------------- | :------------------- | :--------------------- | :------------------- | :--------------- | | 2025 | 270 | 4.2% | $1,444 | 1.7% | $5.35 | | 2026 | 364 | 5.6% | $5,323 | 6.4% | $14.62 | | 2027 | 993 | 15.4% | $13,492 | 16.1% | $13.59 | Small Shop Tenant Lease Expirations by Year (GLA and ABR in thousands) | Lease Expiration Year | GLA of Expiring Leases | Percent of Total GLA | ABR of Expiring Leases | Percent of Total ABR | Expiring ABR PSF | | :-------------------------------- | :--------------------- | :------------------- | :--------------------- | :------------------- | :--------------- | | 2025 | 114 | 3.1% | $3,313 | 2.5% | $29.06 | | 2026 | 531 | 14.5% | $16,457 | 12.4% | $30.99 | | 2027 | 548 | 15.0% | $18,456 | 13.9% | $33.68 | [Investment Summary](index=23&type=section&id=Investment%20Summary) [Acquisitions and Dispositions](index=23&type=section&id=Acquisitions%20and%20Dispositions) In Q2 2025, InvenTrust completed four acquisitions totaling $105.4 million and 330,000 square feet of GLA, primarily in Sun Belt markets like Arizona, North Carolina, South Carolina, and Georgia, while concurrently executing a portfolio sale of five California properties for a gross disposition price of $306.0 million, recognizing a gain of $90.9 million Q2 2025 Acquisitions | Property Name | Market | Acquisition Price (in thousands) | GLA (in thousands) | Leased Occ. | | :-------------------------------- | :------------- | :------------------------------- | :----------------- | :---------- | | Plaza Escondida | Tucson, AZ | $23,000 | 91 | 99.0% | | Carmel Village | Charlotte, NC | $19,925 | 54 | 90.9% | | West Ashley Station | Charleston, SC | $26,600 | 79 | 98.1% | | Twelve Oaks Shopping Center | Savannah, GA | $35,850 | 106 | 97.7% | | Total | N/A | $105,375 | 330 | N/A | Q2 2025 Dispositions | Property Name | Market | GLA (in thousands) | Gross Disposition Price (in thousands) | | :-------------------------------- | :-------------------------------- | :----------------- | :------------------------------------- | | Five properties in California (portfolio sale) | So. California - Inland Empire, CA, So. California - Los Angeles, CA, So. California - San Diego, CA | 746 | $306,000 | | Gain on sale | N/A | N/A | $90,900 | [Development Pipeline](index=24&type=section&id=Development%20Pipeline) InvenTrust has five active redevelopment projects with estimated incremental costs totaling $22.5 million and projected incremental yields of 7-10%, expected to be completed between Q3 2025 and Q2 2026, having also recently completed two redevelopments and possessing several potential future development and redevelopment opportunities in various planning stages Active Redevelopments | Property | Market | Estimated Incremental Costs (in thousands) | Estimated Incremental Yield | | :-------------------------------- | :-------------------- | :--------------------------------------- | :-------------------------- | | Sandy Plains Centre | Atlanta Metro Area, GA | $3,200 | N/A | | Sarasota Pavilion | Tampa-St. Petersburg, FL | $8,400 | N/A | | Shops at Arbor Trails | Austin-Round Rock, TX | $3,000 | N/A | | Bay Colony | Houston - Sugar Land Baytown, TX | $2,300 | N/A | | Buckhead Crossing | Atlanta Metro Area, GA | $5,600 | N/A | | Total Redevelopment Costs | N/A | $22,500 | 7-10% | Recently Completed Redevelopments | Property | Market | Completion Quarter | Completed Costs (in thousands) | | :-------------------------------- | :-------------------- | :----------------- | :----------------------------- | | Sarasota Pavilion | Tampa-St. Petersburg, FL | 1Q - 2025 | $6,800 | | Antoine Town Center | Houston-Sugar Land Baytown, TX | 4Q - 2024 | $200 | - The company has several potential developments and redevelopments in various stages of planning, which may or may not commence due to a number of factors[80](index=80&type=chunk) [Property Summary](index=25&type=section&id=Property%20Summary) The property summary provides a detailed breakdown of InvenTrust's 67 properties across various Sun Belt markets, with the portfolio including Neighborhood, Community, Power, and Lifestyle Centers, a total GLA of 10,556 thousand square feet, 97.3% leased occupancy, and an average ABR PSF of $20.18, with most properties being grocery-anchored, featuring major tenants like HEB, Kroger, Publix, and Whole Foods Market - The company's portfolio consists of **67 properties** with a total GLA of **10,556 thousand square feet**, an overall leased occupancy of **97.3%**, and an ABR PSF of **$20.18**[59](index=59&type=chunk)[83](index=83&type=chunk) - The properties are categorized into Neighborhood, Community, Power, and Lifestyle Centers, with a strong presence of grocery anchors[81](index=81&type=chunk)[83](index=83&type=chunk) - Key markets include Austin-Round Rock, Houston-Sugar Land-Baytown, Atlanta Metro Area, and Miami-Fort Lauderdale-Miami Beach[59](index=59&type=chunk) [Components of NAV as of June 30, 2025](index=28&type=section&id=Components%20of%20NAV%20as%20of%20June%2030%2C%202025) As of June 30, 2025, the company's annualized NOI, excluding ground rent income, was $179.6 million, with an additional $20.0 million from annualized ground rent income, key assets including $294.0 million in cash and cash equivalents, while liabilities include $749.3 million in total debt, and net project costs for projected remaining development are $14.8 million, with an estimated incremental yield of 7-10% Key Components of NAV (in thousands) | Component | Amount | | :-------------------------------- | :------------- | | Annualized NOI, excluding ground rent income | $179,592 | | Annualized ground rent income | $20,008 | | Projected remaining development net project costs | $14,800 | | Estimated range for incremental yield (development) | 7-10% | | Cash, cash equivalents, and restricted cash | $294,039 | | Base rent, recoveries, and other receivables | $9,246 | | Debt | $749,251 | | Accounts payable and accrued expenses | $44,107 | | Distributions payable | $18,447 | | Other liabilities | $29,995 | | Common Shares Outstanding | 77,606,396 | [Glossary of Terms](index=29&type=section&id=Glossary%20of%20Terms) [Key Definitions](index=29&type=section&id=Key%20Definitions) This section provides definitions for key financial and real estate terms used in the report, including metrics like ABR Per Square Foot (ABR PSF), Adjusted EBITDA, Annualized Base Rent (ABR), Nareit Funds From Operations (Nareit FFO), Core FFO, and Net Operating Income (NOI), and also defines property types and leasing terms such as Anchor Tenant, Community Center, Comparable Lease, Economic Occupancy, Leased Occupancy, New Lease, Renewal Lease, Same Property, Shadow Anchor Tenant, and Small Shop Tenant - ABR Per Square Foot (ABR PSF) is the ABR divided by the occupied square footage as of the end of the period[88](index=88&type=chunk) - Nareit Funds from Operations (Nareit FFO) and Core FFO are non-GAAP measures used to compare REIT operating performance, with Core FFO providing further adjustments for unique revenue and expense items[88](index=88&type=chunk) - Net Operating Income (NOI) excludes general and administrative expenses, depreciation and amortization, other income and expense, impairment, gains/losses from sales of properties, debt extinguishment, interest expense, lease termination income/expense, and GAAP Rent Adjustments[88](index=88&type=chunk)

Company Overview - InvenTrust Properties Corp. is a US retail REIT focused on Sunbelt shopping centers, which are projected to experience growth at a rate significantly higher than the national average in the coming years [1]. Market Position - The company plays a key role in the retail sector within the Sunbelt region, indicating a strategic positioning to capitalize on regional economic growth trends [1].

Portfolio Overview - InvenTrust owns 68 retail properties[6] - The portfolio is heavily concentrated in the Sun Belt region, with 97% of properties located there[6] - Grocery-anchored properties account for 86% of the portfolio[6] - The total gross leasable area (GLA) of the portfolio is 11 million square feet[6] - The average center size is 161,000 square feet[6] Financial Performance (Q1 2025) - Core FFO per diluted share was $0.46[17] - Same Property NOI (SPNOI) growth was 6.1%[17, 87] - The tenant retention rate was 90%[17] - Leased occupancy reached 97.3%[17] - ABR per square foot was $20.21[17] - Net Debt-to-Adjusted EBITDA was 4.1x[17, 58] - Net Leverage Ratio was 23.4%[17] - Total liquidity was $577 million[17, 58] 2025 Guidance - Core FFO per diluted share is projected to be between $1.79 and $1.83, representing a growth of 3.5% to 5.8%[7] - SPNOI growth is expected to be between 3.5% and 4.5%[7, 68] - Net acquisition activity is anticipated to be approximately $100 million[68, 104]

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 ...