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InvenTrust Properties (IVT) - 2025 Q2 - Quarterly Results

Introductory Notes About InvenTrust Properties Corp. 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 centers11 - 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 structure11 Forward-Looking Statements Disclaimer 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 described13 - 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 changes14 - IVT cautions not to place undue reliance on any forward-looking statements and undertakes no obligation to update them publicly, except as required by law15 Notice Regarding Non-GAAP Financial Measures 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 GAAP16 - 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 expenses16 - 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 2116 Availability of Information on InvenTrust Properties Corp.'s Website and Social Media Channels 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 website18 - The Company also uses social media channels (e.g., InvenTrust X account and LinkedIn account) as a means of disclosing information18 Earnings Release 2025 Second Quarter Results Overview 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 markets2227 - 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)2327 Liquidity and Capital Structure 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 Escondida31 - On May 9, 2025, the Company extinguished a $13.0 million mortgage payable secured by The Plant with its available liquidity31 Subsequent Events 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 million31 - 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 million31 2025 Guidance 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 dispositions36 - The guidance incorporates an expectation of uncollectibility, reflected as 65 - 85 basis points of expected total revenue36 Financial Information Summary Financial Information 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 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 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 properties39 Condensed Consolidated Supplemental Details of Assets and Liabilities 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 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 Same Property Net Operating Income 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 202443 - 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 202443 Nareit FFO and Core FFO 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 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 Debt Profile and Maturities 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 Debt Covenants Compliance 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 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 debt55 Capital Investments and Leasing Costs 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 Markets and Tenant Size 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 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 GLA62 Comparable & Non-Comparable Lease Statistics 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 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 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 Acquisitions and Dispositions 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 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 factors80 Property Summary 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 $20.185983 - The properties are categorized into Neighborhood, Community, Power, and Lifestyle Centers, with a strong presence of grocery anchors8183 - Key markets include Austin-Round Rock, Houston-Sugar Land-Baytown, Atlanta Metro Area, and Miami-Fort Lauderdale-Miami Beach59 Components of NAV as of June 30, 2025 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 Key Definitions 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 period88 - 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 items88 - 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 Adjustments88