InvenTrust Properties (US:IVT)2025-10-29 20:05Financial Performance - For the three months ended September 30, 2025, net lease income increased by $5.9 million to $74.0 million compared to $68.1 million in the same period of 2024, driven by $10.9 million from acquired properties and a decrease of $7.2 million from disposed properties [108]. - The total income for the nine months ended September 30, 2025, rose by $19.0 million to $221.8 million, up from $202.7 million in the same period of 2024 [109]. - Net income for the three months ended September 30, 2025 was $6.0 million, compared to a loss of $0.5 million in 2024, while for the nine months, net income was $108.8 million compared to $3.9 million in 2024 [123]. - Core FFO for the three months ended September 30, 2025, was $36.7 million, up from $30.1 million in the same period of 2024, representing a 21.6% increase [129]. - Nareit FFO for the nine months ended September 30, 2025, was $111.1 million, compared to $91.8 million for the same period in 2024, reflecting a 20.9% increase [129]. - EBITDA for the three months ended September 30, 2025, was $47.9 million, an increase from $37.2 million in 2024, marking a 28.5% growth [134]. - Total income for the nine months ended September 30, 2025 was $180.5 million, an increase of $8.2 million, or 4.8%, compared to $172.3 million in 2024 [126]. Property and Occupancy - As of September 30, 2025, the company owned 71 properties with a Gross Leasable Area (GLA) of 11,347 thousand square feet, compared to 65 properties and 10,550 thousand square feet in 2024 [103]. - Economic occupancy increased to 95.6% in 2025 from 94.2% in 2024, while leased occupancy rose to 97.2% from 97.0% [103]. - The company acquired four retail properties in 2025, including The Marketplace at Encino Park for $38.5 million and West Broad Marketplace for $86.0 million, funded by cash on hand [96][97]. - The company has acquired a total of fifteen retail properties and disposed of six since January 1, 2024 [108]. - Same Property NOI for the three months ended September 30, 2025 increased by $2.7 million, or 6.4%, to $44.3 million compared to $41.6 million in 2024, primarily due to increased occupancy and favorable lease spreads [125]. - Same Property NOI for the nine months ended September 30, 2025 increased by $7.2 million, or 5.9%, to $128.3 million compared to $121.1 million in 2024, driven by increased occupancy and advantageous fixed recovery terms [126]. Expenses and Costs - For the three months ended September 30, 2025, total operating expenses increased by $4.9 million to $61.2 million compared to $56.3 million in 2024, while for the nine months, it increased by $13.4 million to $181.5 million compared to $168.1 million in 2024 [112]. - The company reported a $1.7 million increase in minimum base and ground rent for the three months ended September 30, 2025, attributed to increased occupancy and ABR PSF [110]. - Minimum base rent for the three months ended September 30, 2025 increased by $1.6 million, or 4.1%, to $40.9 million compared to $39.3 million in 2024 [125]. - Depreciation and amortization for the three months ended September 30, 2025 increased by $4.6 million to $32.7 million compared to $28.1 million in 2024, and for the nine months, it increased by $9.0 million to $94.1 million compared to $85.1 million in 2024 [112]. Liquidity and Debt - The company has available liquidity of $500.0 million under its revolving credit facility as of September 30, 2025 [100]. - The company entered into a Term Loan Amendment on August 25, 2025, extending the maturity dates of its $400.0 million Term Loan Credit Agreement [101]. - The company has $400.0 million in outstanding variable-rate debt, all of which has been swapped to fixed rates through maturity dates [157]. - Total fixed rate debt obligations amount to $928.1 million, with $650.0 million due thereafter [152]. - The company has future payments under mortgage maturities totaling $107.6 million, with $22.9 million due in 2025 [152]. - The company reported $247.3 million in net proceeds from the underwritten public offering of common stock, net of underwriting discounts and commissions [149]. - Interest payments on fixed rate debt total $167.7 million over the life of the debt [152]. - The company maintained $236.7 million available for issuance under its ATM Program as of September 30, 2025 [142]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $112.7 million, up from $99.9 million in 2024, indicating a $12.8 million increase [146]. - Cash used in investing activities for the nine months ended September 30, 2025, was $54.3 million, a decrease of $53.9 million compared to $108.3 million in 2024 [146]. - Total capital expenditures and leasing costs for the three months ended September 30, 2025, amounted to $7.0 million, compared to $6.0 million in 2024, a 16.4% increase [135]. - The company incurred $45.3 million to pay distributions related to its common stock [149]. - The company declared distributions totaling $55.3 million during the nine months ended September 30, 2025, with cash distributions of $54.4 million [144]. Other Financial Information - Interest expense, net, for the three months ended September 30, 2025 decreased by $0.5 million to $8.9 million compared to $9.5 million in 2024, and for the nine months, it decreased by $3.1 million to $25.6 million compared to $28.7 million in 2024 [115]. - Other income and expense, net, increased by $1.4 million for the three months ended September 30, 2025, primarily due to increased interest income, and by $1.7 million for the nine months [118]. - The company recognized a gain of $90.9 million on the sale of five properties in California for an aggregate gross disposition price of $306.0 million during the nine months ended September 30, 2025 [117]. - The weighted average common shares outstanding - diluted increased to 78,498,873 for the three months ended September 30, 2025, from 68,526,238 in 2024 [129]. - There have been no material changes to the company's critical accounting estimates compared to previous reports [155]. - The company has no off-balance sheet arrangements [150]. - The company’s effective interest rate swaps as of September 30, 2025, have a total notional amount of $400.0 million [158].