InvenTrust Properties (US:IVT)2025-04-30 20:21Financial 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].