Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries InvenTrust Properties Corp. Reports 2023 Second Quarter Results By: InvenTrust Properties Corp. via Business Wire July 31, 2023 at 16:05 PM EDT InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today reported financial and operating results for the period ended June 30, 2023. For the three months ended June 30, 2023 and 2022, Net Income was $2.1 million, or $0.03 per diluted share, compared to Net Income of $41.9 million, or $0.62 per diluted share, respectively. Second Quarter 2023 Highlights: NAREIT FFO of $0.43 per diluted share Core FFO of $0.43 per diluted share Same Property Net Operating Income (“NOI”) growth of 3.7% Leased Occupancy as of June 30, 2023 of 96.2% Executed 77 leases totaling approximately 347,000 square feet of GLA, of which 244,000 square feet was executed at a blended comparable lease spread of 5.8% Acquired The Shoppes at Davis Lake, a 91,000 square foot neighborhood center anchored by Harris Teeter in Charlotte, North Carolina for a gross acquisition price of $22.4 million. Published the Company’s annual 2022 Environmental, Social & Governance report. “Our results this quarter highlight the robust tenant demand at our centers and the outstanding execution of the InvenTrust team, positioning our platform for continued outperformance,” Daniel (DJ) Busch, President and CEO of InvenTrust stated. “Our investment grade balance sheet provides us the flexibility to be both patient and opportunistic when looking to grow our asset base without the immediate need to access the capital markets.” NET INCOME Net Income for the three months ended June 30 2023 was $2.1 million, or $0.03 per diluted share, compared to Net Income of $41.9 million, or $0.62 per diluted share, for the same period in 2022. Net Income for the six months ended June 30, 2023 was $3.2 million, or $0.05 per diluted share, compared to Net Income of $51.4 million, or $0.76 per diluted share, for the same period in 2022. NAREIT FFO NAREIT FFO for the three months ended June 30, 2023 was $29.2 million, or $0.43 per diluted share, compared to $30.4 million, or $0.45 per diluted share, for the same period in 2022. NAREIT FFO for the six months ended June 30, 2023 was $57.2 million, or $0.84 per diluted share, compared to $62.1 million, or $0.92 per diluted share, for the same period in 2022. CORE FFO Core FFO for the three months ended June 30, 2023 was $29.1 million, or $0.43 per diluted share, compared to $28.6 million, or $0.42 per diluted share, for the same period in 2022. Core FFO for the six months ended June 30, 2023 was $56.4 million, or $0.83 per diluted share, compared to $57.7 million, or $0.85 per diluted share, for the same period in 2022. SAME PROPERTY NOI Same Property NOI for the three months ended June 30, 2023 was $38.0 million, a 3.7% increase, compared to the same period in 2022. Same Property NOI for the six months ended June 30, 2023 was $71.8 million, a 3.5% increase, compared to the same period in 2022. DIVIDEND For the quarter ending June 30, 2023, the Board of Directors declared a quarterly cash distribution of $0.2155 per share, paid on July 14, 2023. PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY As of June 30, 2023, the Company’s Leased Occupancy was 96.2%. Total Anchor Leased Occupancy, which includes spaces greater than or equal to 10,000 square feet, was 98.6% and Small Shop Leased Occupancy was 92.0%. Anchor Leased Occupancy decreased 20 basis points and Small Shop Leased Occupancy increased 60 basis points on a sequential basis compared to the previous quarter. Leased to Economic Occupancy spread of 230 basis points, which equates to approximately $4.9 million of base rent on an annualized basis. Blended re-leasing spreads for comparable new and renewal leases signed in the second quarter were 5.8%. Annualized Base Rent PSF (“ABR”) as of June 30, 2023 was $19.18, an increase of 2.0% compared to the same period in 2022. Anchor Tenant ABR PSF was $12.40 and Small Shop ABR PSF was $32.32 for the second quarter. Acquired The Shoppes at Davis Lake, a 91,000 square foot neighborhood center anchored by Harris Teeter in Charlotte, North Carolina for a gross acquisition price of $22.4 million. LIQUIDITY AND CAPITAL STRUCTURE InvenTrust had $434.0 million of total liquidity, as of June 30, 2023, comprised of $84.0 million of Pro Rata Cash and $350.0 million of availability under its Revolving Credit Facility. As of June 30, 2023, net assets of IAGM were $6.9 million, inclusive of cash and cash equivalents of $10.4 million. InvenTrust has $92.5 million of debt maturing in 2023 and $15.7 million of debt maturing in 2024, as of June 30, 2023. As of June 30, 2023, the Company's weighted average interest rate on its debt was 3.88% and the weighted average remaining term was 4.3 years. Effective April 3, 2023, the Company’s variable rate on $100.0 million of term loans was swapped to a fixed rate of 3.69%, achieving an all-in interest rate of 4.99%. In tandem with other interest rate swaps, the entirety of the Company's variable rate term loans were swapped to fixed rates through the respective maturity dates. 2023 GUIDANCE InvenTrust has updated its 2023 guidance, as summarized in the table below. (Unaudited, dollars in thousands, except per share amounts) Current Previous Net Income per diluted share (1) $0.06 — $0.11 $0.06 — $0.11 NAREIT FFO per diluted share (2) $1.64 — $1.69 $1.64 — $1.69 Core FFO per diluted share $1.61 — $1.64 $1.59 — $1.64 Same Property NOI (“SPNOI”) Growth 4.00% — 5.00% 3.50% — 5.00% General and administrative $31,250 — $32,750 $31,250 — $32,750 Interest expense, net (3) $34,000 — $34,500 $34,500 — $35,500 Adjustments for uncollectibility (4) 50 bps — 150 bps 50 bps — 150 bps Net investment activity (5) ~ $150,000 ~ $150,000 The Company’s 2023 Guidance contemplates the following assumptions: (1) Net Income per diluted share excludes effects from potential acquisitions or dispositions. (2) NAREIT FFO per diluted share: Excludes effects from potential acquisitions or dispositions. Excludes any items that impact NAREIT FFO comparability, including loss on debt extinguishment, non-routine or one-time items of which, in our judgement, are not pertinent to measuring on-going operating performance. Includes an expectation that some tenants will move from the cash basis of accounting to the accrual basis of accounting, which can result in volatility in straight-line rental income adjustments. (3) Interest expense, net, excludes amortization of debt discounts and financing costs, and expected interest income of $1.5 million to $2.5 million. (4) Adjustments for uncollectibility are reflected as basis points of expected total revenue. (5) Net investment activity represents anticipated acquisition activity less disposition activity. In addition to the foregoing assumptions, the Company's 2023 Guidance incorporates a number of other assumptions that are subject to change and may be outside the control of the Company. For example, the Company’s guidance is inclusive of prior period rent that the Company anticipates collecting. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurances that InvenTrust will achieve these results. The following table provides a reconciliation of the range of the Company's 2023 estimated net income per diluted share to estimated NAREIT FFO and Core FFO per diluted share: (Unaudited) Low End High End Net income $ 0.06 $ 0.11 Depreciation and amortization related to investment properties 1.59 1.59 Gain on sale of investment properties, net (0.01 ) (0.01 ) NAREIT FFO Applicable to Common Shares and Dilutive Securities 1.64 1.69 Amortization of market-lease intangibles and inducements, net (0.05 ) (0.05 ) Straight-line rent adjustments, net (0.05 ) (0.05 ) Adjusting items, net (a) 0.07 0.05 Core FFO Applicable to Common Shares and Dilutive Securities $ 1.61 $ 1.64 (a) Adjusting items, net, are primarily amortization of debt discounts and financing costs, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as basis difference recognition arising from acquiring the four remaining properties of our joint venture, and miscellaneous and settlement income. The Company does not provide a reconciliation of forward-looking SPNOI to forward-looking GAAP Net Income within this press release because the Company is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to our results. CONFERENCE CALL INFORMATION Date: Tuesday, August 1, 2023 Time: 9:00 a.m. ET Dial-in: (833) 470-1428 / Access Code: 004704 Webcast: https://events.q4inc.com/attendee/723410840 Replay Webcast Archive: https://www.inventrustproperties.com/investor-relations/ A webcast replay will be available shortly after the conclusion of the presentation using the webcast link above. NON-GAAP FINANCIAL MEASURES This Earnings Release includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. These measures should not be considered as alternatives to, or more meaningful than, net income (calculated in accordance with GAAP) or other GAAP financial measures, as an indicator of financial performance and are not alternatives to, or more meaningful than, cash flow from operating activities (calculated in accordance with GAAP) as a measure of liquidity. Non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results to those calculated in accordance with GAAP. The Company's computation of these non-GAAP performance measures may differ in certain respects from the methodology utilized by other REITs and, therefore, may not be comparable to similarly titled measures presented by such other REITs. Investors are cautioned that items excluded from these non-GAAP performance measures are relevant to understanding and addressing financial performance. A reconciliation of our non-GAAP measures to the most directly comparable GAAP financials measures are included herein. SAME PROPERTY NOI or SPNOI Information provided on a same property basis includes the results of properties that were owned and operated for the entirety of both periods presented. NOI excludes general and administrative expenses, depreciation and amortization, provision for asset impairment, other income and expense, net, gains (losses) from sales of properties, gains (losses) on extinguishment of debt, interest expense, net, equity in earnings (losses) from unconsolidated entities, lease termination income and expense, and GAAP rent adjustments such as straight-line rent adjustments, amortization of market lease intangibles, and amortization of lease incentives ("GAAP Rent Adjustments"). NAREIT FUNDS FROM OPERATIONS (NAREIT FFO) and CORE FFO Our non-GAAP measure of NAREIT Funds from Operations ("NAREIT FFO"), based on the National Association of Real Estate Investment Trusts ("NAREIT") definition, is net income (or loss) in accordance with GAAP, excluding gains (or losses) resulting from dispositions of properties, plus depreciation and amortization and impairment charges on depreciable real property. Adjustments for our unconsolidated joint venture is calculated to reflect our proportionate share of the joint venture's NAREIT FFO on the same basis. Core Funds From Operations (“Core FFO”) is an additional supplemental non-GAAP financial measure of our operating performance. In particular, Core FFO provides an additional measure to compare the operating performance of different REITs without having to account for certain remaining amortization assumptions within NAREIT FFO and other unique revenue and expense items which some may consider not pertinent to measuring a particular company’s on-going operating performance. ADJUSTED EBITDA Our non-GAAP measure of Adjusted EBITDA excludes gains (or losses) resulting from debt extinguishments, straight-line rent adjustments, amortization of above and below market leases and lease inducements, and other unique revenue and expense items which some may consider not pertinent to measuring a particular company’s on-going operating performance. Adjustments for our unconsolidated joint venture is calculated to reflect our proportionate share of the joint venture's Adjusted EBITDA on the same basis. NET DEBT-TO-ADJUSTED EBITDA Net Debt-to-Adjusted EBITDA is Net Debt divided by Adjusted EBITDA on a trailing twelve month basis. PRO RATA Where appropriate, the Company has included the results from its ownership share of its joint venture properties when combined with the Company's wholly owned properties, defined as "Pro Rata," with the exception of property and lease count, for the three and six months ended June 30, 2022 and as of December 31, 2022. As of June 30, 2023, as a result of the Company’s acquisition of the remaining IAGM properties, net assets of IAGM were $6.9 million, inclusive of cash and cash equivalents of $10.4 million, which has been included as part of Pro Rata Cash. Financial Statements Condensed Consolidated Balance Sheets In thousands, except share amounts As of June 30 As of December 31 2023 2022 Assets (unaudited) Investment properties Land $ 697,035 $ 650,764 Building and other improvements 1,949,421 1,825,893 Construction in progress 9,488 5,005 Total 2,655,944 2,481,662 Less accumulated depreciation (425,963 ) (389,361 ) Net investment properties 2,229,981 2,092,301 Cash, cash equivalents and restricted cash 80,749 137,762 Investment in unconsolidated entities 3,753 56,131 Intangible assets, net 132,720 101,167 Accounts and rents receivable 31,858 34,528 Deferred costs and other assets, net 57,700 51,145 Total assets $ 2,536,761 $ 2,473,034 Liabilities Debt, net $ 833,661 $ 754,551 Accounts payable and accrued expenses 39,063 42,792 Distributions payable 14,553 13,837 Intangible liabilities, net 33,326 29,658 Other liabilities 33,221 28,287 Total liabilities 953,824 869,125 Commitments and contingencies Stockholders' Equity Preferred stock, $0.001 par value, 40,000,000 shares authorized, none outstanding — — Common stock, $0.001 par value, 146,000,000 shares authorized, 67,531,335 shares issued and outstanding as of June 30, 2023 and 67,472,553 shares issued and outstanding as of December 31, 2022 68 67 Additional paid-in capital 5,461,253 5,456,968 Distributions in excess of accumulated net income (3,905,747 ) (3,879,847 ) Accumulated comprehensive income 27,363 26,721 Total stockholders' equity 1,582,937 1,603,909 Total liabilities and stockholders' equity $ 2,536,761 $ 2,473,034 Condensed Consolidated Statements of Operations and Comprehensive Income In thousands, except share and per share amounts, unaudited Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Income Lease income, net $ 64,268 $ 58,935 $ 129,098 $ 116,703 Other property income 419 318 714 582 Other fee income — 640 80 1,394 Total income 64,687 59,893 129,892 118,679 Operating expenses Depreciation and amortization 28,263 24,205 55,021 47,034 Property operating 9,756 9,184 19,986 17,469 Real estate taxes 8,952 8,615 18,580 16,658 General and administrative 8,048 8,116 15,779 16,003 Total operating expenses 55,019 50,120 109,366 97,164 Other (expense) income Interest expense, net (9,377 ) (5,631 ) (18,886 ) (10,440 ) Loss on extinguishment of debt — — — (96 ) Gain on sale of investment properties 984 36,856 984 36,856 Equity in earnings (losses) of unconsolidated entities 149 716 (514 ) 3,432 Other income and expense, net 644 207 1,091 155 Total other (expense) income, net (7,600 ) 32,148 (17,325 ) 29,907 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Weighted-average common shares outstanding - basic 67,523,105 67,413,049 67,515,913 67,384,044 Weighted-average common shares outstanding - diluted 67,711,848 67,550,846 67,683,226 67,577,524 Net income per common share - basic $ 0.03 $ 0.62 $ 0.05 $ 0.76 Net income per common share - diluted $ 0.03 $ 0.62 $ 0.05 $ 0.76 Distributions declared per common share outstanding $ 0.22 $ 0.21 $ 0.43 $ 0.41 Distributions paid per common share outstanding $ 0.22 $ 0.21 $ 0.42 $ 0.41 Comprehensive income Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Unrealized gain on derivatives 10,835 5,514 7,518 20,920 Reclassification (to) from net income (3,984 ) 492 (6,876 ) 1,517 Comprehensive income $ 8,919 $ 47,927 $ 3,843 $ 73,859 Reconciliation of Non-GAAP Measures In thousands Same Property NOI Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Income Minimum base rent $ 36,029 $ 34,341 $ 68,071 $ 64,693 Real estate tax recoveries 6,982 7,140 13,708 13,005 Common area maintenance, insurance, and other recoveries 6,557 6,583 11,934 11,647 Ground rent income 3,717 3,680 6,868 6,707 Short-term and other lease income 584 1,110 1,849 2,161 Provision for uncollectible billed rent and recoveries (167 ) (110 ) (393 ) (340 ) Reversal of uncollectible billed rent and recoveries — 240 488 1,083 Other property income 350 310 596 569 Total income 54,052 53,294 103,121 99,525 Operating Expenses Property operating 8,335 8,660 16,081 15,631 Real estate taxes 7,707 7,970 15,265 14,564 Total operating expenses 16,042 16,630 31,346 30,195 Same Property NOI $ 38,010 $ 36,664 $ 71,775 $ 69,330 Net Income to Same Property NOI Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Adjustments to reconcile to non-GAAP metrics: Other income and expense, net (644 ) (207 ) (1,091 ) (155 ) Equity in (earnings) losses of unconsolidated entities (149 ) (716 ) 514 (3,432 ) Interest expense, net 9,377 5,631 18,886 10,440 Loss on extinguishment of debt — — — 96 Gain on sale of investment properties (984 ) (36,856 ) (984 ) (36,856 ) Depreciation and amortization 28,263 24,205 55,021 47,034 General and administrative 8,048 8,116 15,779 16,003 Other fee income — (640 ) (80 ) (1,394 ) Adjustments to NOI (a) (2,035 ) (2,422 ) (4,594 ) (6,294 ) NOI 43,944 39,032 86,652 76,864 NOI from other investment properties (5,934 ) (2,368 ) (14,877 ) (7,534 ) Same Property NOI $ 38,010 $ 36,664 $ 71,775 $ 69,330 (a) Adjustments to NOI include termination fee income and expense and GAAP Rent Adjustments. Reconciliation of Non-GAAP Measures, continued in thousands, except share and per share amounts NAREIT FFO and Core FFO The following table presents a reconciliation of Net Income to NAREIT FFO and Core FFO Attributable to Common Shares and Dilutive Securities, and provides additional information related to its operations: Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Depreciation and amortization related to investment properties 28,077 23,996 54,620 46,618 Gain on sale of investment properties (984 ) (36,856 ) (984 ) (36,856 ) Unconsolidated joint venture adjustments (a) — 1,385 342 920 NAREIT FFO Applicable to Common Shares and Dilutive Securities 29,161 30,446 57,179 62,104 Amortization of market lease intangibles and inducements, net (572 ) (1,062 ) (2,088 ) (3,609 ) Straight-line rent adjustments, net (853 ) (1,211 ) (1,762 ) (2,368 ) Adjusting items, net (b) 1,322 524 3,256 1,397 Unconsolidated joint venture adjusting items, net (c) (6 ) (66 ) (162 ) 128 Core FFO Applicable to Common Shares and Dilutive Securities $ 29,052 $ 28,631 $ 56,423 $ 57,652 Weighted average common shares outstanding - basic 67,523,105 67,413,049 67,515,913 67,384,044 Dilutive effect of unvested restricted shares (d) 188,743 137,797 167,313 193,480 Weighted average common shares outstanding - diluted 67,711,848 67,550,846 67,683,226 67,577,524 NAREIT FFO Applicable to Common Shares and Dilutive Securities per share $ 0.43 $ 0.45 $ 0.84 $ 0.92 Core FFO Applicable to Common Shares and Dilutive Securities per share $ 0.43 $ 0.42 $ 0.83 $ 0.85 (a) Represents our share of depreciation, amortization and gain on sale related to investment properties held in IAGM. (b) Adjusting items, net, are primarily loss on extinguishment of debt, amortization of debt discounts and financing costs, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as basis difference recognition arising from acquiring the four remaining properties of our joint venture, and miscellaneous and settlement income. (c) Represents our share of amortization of market lease intangibles and inducements, net, straight line rent adjustments, net and adjusting items, net related to IAGM. (d) For purposes of calculating non-GAAP per share metrics, the same denominator is used as that which would be used in calculating diluted earnings per share in accordance with GAAP. Reconciliation of Non-GAAP Measures, continued In thousands EBITDA and Adjusted EBITDA The following table presents a reconciliation of Net Income to EBITDA and Adjusted EBITDA, and provides additional information related to its operations: Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Interest expense, net 9,377 5,631 18,886 10,440 Income tax expense 134 91 260 173 Depreciation and amortization 28,263 24,205 55,021 47,034 Unconsolidated joint venture adjustments (a) — 1,897 423 4,157 EBITDA 39,842 73,745 77,791 113,226 Adjustments to reconcile to Adjusted EBITDA Gain on sale of investment properties (984 ) (36,856 ) (984 ) (36,856 ) Loss on debt extinguishment — — — 96 Non-operating income and expense, net (b) (129 ) (362 ) 736 (456 ) Other leasing adjustments (c) (1,425 ) (2,273 ) (3,850 ) (5,977 ) Unconsolidated joint venture adjusting items, net (d) (6 ) (117 ) (178 ) (2,041 ) Adjusted EBITDA $ 37,298 $ 34,137 $ 73,515 $ 67,992 (a) Represents our share of depreciation, amortization, interest expense, net, and income tax expense related to IAGM. (b) Non-operating income and expense, net, includes other items which are not pertinent to measuring ongoing operating performance, such as basis difference recognition arising from acquiring the four remaining properties of our joint venture, and miscellaneous and settlement income. (c) Other leasing adjustments includes amortization of above and below market leases and straight-line rent adjustments. (d) Represents our share of loss on extinguishment of debt, amortization of market lease intangibles and inducements, net, straight line rent adjustments, net and non-operating income and expense, net, related to IAGM. Financial Leverage Ratios Dollars in thousands The following table presents the calculation of net debt and Net Debt-to-Adjusted EBITDA: As of June 30 As of December 31 2023* 2022* Net Debt: Outstanding Debt, net $ 833,661 $ 805,253 Less: Pro Rata Cash (83,982 ) (164,448 ) Net Debt $ 749,679 $ 640,805 Net Debt-to-Adjusted EBITDA (trailing 12 months): Net Debt $ 749,679 $ 640,805 Adjusted EBITDA (trailing 12 months) 137,891 132,368 Net Debt-to-Adjusted EBITDA 5.4x 4.8x *Pro Rata Cash as of June 30, 2023 includes cash remaining at our JV. Outstanding debt, net, and Net Debt as of December 31, 2022 are Pro Rata. About InvenTrust Properties Corp. InvenTrust Properties Corp. (“we,” the “Company,” “our,” “us,” "IVT" or "InvenTrust") 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 that often have a grocery component. We pursue our business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance ("ESG") practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013. For more information, please visit www.inventrustproperties.com. Forward-Looking Statements Disclaimer Forward-Looking Statements in this press release, or made during the earnings call, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements about the Company’s 2023 guidance, tenant demand for our centers, strength of our platform position, and expected timing and payment of dividends, or regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future, are typically identified by words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would,” “outlook,” “guidance,” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. The following factors, among others, could cause actual results and financial position and timing of certain events to differ materially from those described in the forward-looking statements: interest rate movements; local, regional, national and global economic performance; the impact of inflation on the Company and on its tenants; competitive factors; the impact of e-commerce on the retail industry; future retailer store closings; retailer consolidation; retailers reducing store size; retailer bankruptcies; government policy changes; the effects and duration of the COVID-19 pandemic; and any material market changes and trends that could affect the Company’s business strategy. For further discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see the Risk Factors included in InvenTrust’s most recent Annual Report on Form 10-K, as updated by any subsequent Quarterly Report on Form 10-Q, in each case as filed with the Securities and Exchange Commission. InvenTrust intends that such forward-looking statements be subject to the safe harbors created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, except as may be required by applicable law. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Availability of Information on InvenTrust Properties Corp.'s Website and Social Media Channels Investors and others should note that 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. The Company uses these channels as well as social media channels (e.g., the InvenTrust Twitter account (twitter.com/inventrustprop); and the InvenTrust LinkedIn account (linkedin.com/company/inventrustproperties)) as a means of disclosing information about the Company's business to our colleagues, investors, and the public. While not all of the information that the Company posts to the InvenTrust investor relations website or on the Company’s social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in InvenTrust to review the information that it shares on www.inventrustproperties.com/investor-relations and on the Company’s social media channels. View source version on businesswire.com: https://www.businesswire.com/news/home/20230731011933/en/Contacts Dan Lombardo Vice President of Investor Relations 630-570-0605 dan.lombardo@inventrustproperties.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
InvenTrust Properties Corp. Reports 2023 Second Quarter Results By: InvenTrust Properties Corp. via Business Wire July 31, 2023 at 16:05 PM EDT InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today reported financial and operating results for the period ended June 30, 2023. For the three months ended June 30, 2023 and 2022, Net Income was $2.1 million, or $0.03 per diluted share, compared to Net Income of $41.9 million, or $0.62 per diluted share, respectively. Second Quarter 2023 Highlights: NAREIT FFO of $0.43 per diluted share Core FFO of $0.43 per diluted share Same Property Net Operating Income (“NOI”) growth of 3.7% Leased Occupancy as of June 30, 2023 of 96.2% Executed 77 leases totaling approximately 347,000 square feet of GLA, of which 244,000 square feet was executed at a blended comparable lease spread of 5.8% Acquired The Shoppes at Davis Lake, a 91,000 square foot neighborhood center anchored by Harris Teeter in Charlotte, North Carolina for a gross acquisition price of $22.4 million. Published the Company’s annual 2022 Environmental, Social & Governance report. “Our results this quarter highlight the robust tenant demand at our centers and the outstanding execution of the InvenTrust team, positioning our platform for continued outperformance,” Daniel (DJ) Busch, President and CEO of InvenTrust stated. “Our investment grade balance sheet provides us the flexibility to be both patient and opportunistic when looking to grow our asset base without the immediate need to access the capital markets.” NET INCOME Net Income for the three months ended June 30 2023 was $2.1 million, or $0.03 per diluted share, compared to Net Income of $41.9 million, or $0.62 per diluted share, for the same period in 2022. Net Income for the six months ended June 30, 2023 was $3.2 million, or $0.05 per diluted share, compared to Net Income of $51.4 million, or $0.76 per diluted share, for the same period in 2022. NAREIT FFO NAREIT FFO for the three months ended June 30, 2023 was $29.2 million, or $0.43 per diluted share, compared to $30.4 million, or $0.45 per diluted share, for the same period in 2022. NAREIT FFO for the six months ended June 30, 2023 was $57.2 million, or $0.84 per diluted share, compared to $62.1 million, or $0.92 per diluted share, for the same period in 2022. CORE FFO Core FFO for the three months ended June 30, 2023 was $29.1 million, or $0.43 per diluted share, compared to $28.6 million, or $0.42 per diluted share, for the same period in 2022. Core FFO for the six months ended June 30, 2023 was $56.4 million, or $0.83 per diluted share, compared to $57.7 million, or $0.85 per diluted share, for the same period in 2022. SAME PROPERTY NOI Same Property NOI for the three months ended June 30, 2023 was $38.0 million, a 3.7% increase, compared to the same period in 2022. Same Property NOI for the six months ended June 30, 2023 was $71.8 million, a 3.5% increase, compared to the same period in 2022. DIVIDEND For the quarter ending June 30, 2023, the Board of Directors declared a quarterly cash distribution of $0.2155 per share, paid on July 14, 2023. PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY As of June 30, 2023, the Company’s Leased Occupancy was 96.2%. Total Anchor Leased Occupancy, which includes spaces greater than or equal to 10,000 square feet, was 98.6% and Small Shop Leased Occupancy was 92.0%. Anchor Leased Occupancy decreased 20 basis points and Small Shop Leased Occupancy increased 60 basis points on a sequential basis compared to the previous quarter. Leased to Economic Occupancy spread of 230 basis points, which equates to approximately $4.9 million of base rent on an annualized basis. Blended re-leasing spreads for comparable new and renewal leases signed in the second quarter were 5.8%. Annualized Base Rent PSF (“ABR”) as of June 30, 2023 was $19.18, an increase of 2.0% compared to the same period in 2022. Anchor Tenant ABR PSF was $12.40 and Small Shop ABR PSF was $32.32 for the second quarter. Acquired The Shoppes at Davis Lake, a 91,000 square foot neighborhood center anchored by Harris Teeter in Charlotte, North Carolina for a gross acquisition price of $22.4 million. LIQUIDITY AND CAPITAL STRUCTURE InvenTrust had $434.0 million of total liquidity, as of June 30, 2023, comprised of $84.0 million of Pro Rata Cash and $350.0 million of availability under its Revolving Credit Facility. As of June 30, 2023, net assets of IAGM were $6.9 million, inclusive of cash and cash equivalents of $10.4 million. InvenTrust has $92.5 million of debt maturing in 2023 and $15.7 million of debt maturing in 2024, as of June 30, 2023. As of June 30, 2023, the Company's weighted average interest rate on its debt was 3.88% and the weighted average remaining term was 4.3 years. Effective April 3, 2023, the Company’s variable rate on $100.0 million of term loans was swapped to a fixed rate of 3.69%, achieving an all-in interest rate of 4.99%. In tandem with other interest rate swaps, the entirety of the Company's variable rate term loans were swapped to fixed rates through the respective maturity dates. 2023 GUIDANCE InvenTrust has updated its 2023 guidance, as summarized in the table below. (Unaudited, dollars in thousands, except per share amounts) Current Previous Net Income per diluted share (1) $0.06 — $0.11 $0.06 — $0.11 NAREIT FFO per diluted share (2) $1.64 — $1.69 $1.64 — $1.69 Core FFO per diluted share $1.61 — $1.64 $1.59 — $1.64 Same Property NOI (“SPNOI”) Growth 4.00% — 5.00% 3.50% — 5.00% General and administrative $31,250 — $32,750 $31,250 — $32,750 Interest expense, net (3) $34,000 — $34,500 $34,500 — $35,500 Adjustments for uncollectibility (4) 50 bps — 150 bps 50 bps — 150 bps Net investment activity (5) ~ $150,000 ~ $150,000 The Company’s 2023 Guidance contemplates the following assumptions: (1) Net Income per diluted share excludes effects from potential acquisitions or dispositions. (2) NAREIT FFO per diluted share: Excludes effects from potential acquisitions or dispositions. Excludes any items that impact NAREIT FFO comparability, including loss on debt extinguishment, non-routine or one-time items of which, in our judgement, are not pertinent to measuring on-going operating performance. Includes an expectation that some tenants will move from the cash basis of accounting to the accrual basis of accounting, which can result in volatility in straight-line rental income adjustments. (3) Interest expense, net, excludes amortization of debt discounts and financing costs, and expected interest income of $1.5 million to $2.5 million. (4) Adjustments for uncollectibility are reflected as basis points of expected total revenue. (5) Net investment activity represents anticipated acquisition activity less disposition activity. In addition to the foregoing assumptions, the Company's 2023 Guidance incorporates a number of other assumptions that are subject to change and may be outside the control of the Company. For example, the Company’s guidance is inclusive of prior period rent that the Company anticipates collecting. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurances that InvenTrust will achieve these results. The following table provides a reconciliation of the range of the Company's 2023 estimated net income per diluted share to estimated NAREIT FFO and Core FFO per diluted share: (Unaudited) Low End High End Net income $ 0.06 $ 0.11 Depreciation and amortization related to investment properties 1.59 1.59 Gain on sale of investment properties, net (0.01 ) (0.01 ) NAREIT FFO Applicable to Common Shares and Dilutive Securities 1.64 1.69 Amortization of market-lease intangibles and inducements, net (0.05 ) (0.05 ) Straight-line rent adjustments, net (0.05 ) (0.05 ) Adjusting items, net (a) 0.07 0.05 Core FFO Applicable to Common Shares and Dilutive Securities $ 1.61 $ 1.64 (a) Adjusting items, net, are primarily amortization of debt discounts and financing costs, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as basis difference recognition arising from acquiring the four remaining properties of our joint venture, and miscellaneous and settlement income. The Company does not provide a reconciliation of forward-looking SPNOI to forward-looking GAAP Net Income within this press release because the Company is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to our results. CONFERENCE CALL INFORMATION Date: Tuesday, August 1, 2023 Time: 9:00 a.m. ET Dial-in: (833) 470-1428 / Access Code: 004704 Webcast: https://events.q4inc.com/attendee/723410840 Replay Webcast Archive: https://www.inventrustproperties.com/investor-relations/ A webcast replay will be available shortly after the conclusion of the presentation using the webcast link above. NON-GAAP FINANCIAL MEASURES This Earnings Release includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. These measures should not be considered as alternatives to, or more meaningful than, net income (calculated in accordance with GAAP) or other GAAP financial measures, as an indicator of financial performance and are not alternatives to, or more meaningful than, cash flow from operating activities (calculated in accordance with GAAP) as a measure of liquidity. Non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results to those calculated in accordance with GAAP. The Company's computation of these non-GAAP performance measures may differ in certain respects from the methodology utilized by other REITs and, therefore, may not be comparable to similarly titled measures presented by such other REITs. Investors are cautioned that items excluded from these non-GAAP performance measures are relevant to understanding and addressing financial performance. A reconciliation of our non-GAAP measures to the most directly comparable GAAP financials measures are included herein. SAME PROPERTY NOI or SPNOI Information provided on a same property basis includes the results of properties that were owned and operated for the entirety of both periods presented. NOI excludes general and administrative expenses, depreciation and amortization, provision for asset impairment, other income and expense, net, gains (losses) from sales of properties, gains (losses) on extinguishment of debt, interest expense, net, equity in earnings (losses) from unconsolidated entities, lease termination income and expense, and GAAP rent adjustments such as straight-line rent adjustments, amortization of market lease intangibles, and amortization of lease incentives ("GAAP Rent Adjustments"). NAREIT FUNDS FROM OPERATIONS (NAREIT FFO) and CORE FFO Our non-GAAP measure of NAREIT Funds from Operations ("NAREIT FFO"), based on the National Association of Real Estate Investment Trusts ("NAREIT") definition, is net income (or loss) in accordance with GAAP, excluding gains (or losses) resulting from dispositions of properties, plus depreciation and amortization and impairment charges on depreciable real property. Adjustments for our unconsolidated joint venture is calculated to reflect our proportionate share of the joint venture's NAREIT FFO on the same basis. Core Funds From Operations (“Core FFO”) is an additional supplemental non-GAAP financial measure of our operating performance. In particular, Core FFO provides an additional measure to compare the operating performance of different REITs without having to account for certain remaining amortization assumptions within NAREIT FFO and other unique revenue and expense items which some may consider not pertinent to measuring a particular company’s on-going operating performance. ADJUSTED EBITDA Our non-GAAP measure of Adjusted EBITDA excludes gains (or losses) resulting from debt extinguishments, straight-line rent adjustments, amortization of above and below market leases and lease inducements, and other unique revenue and expense items which some may consider not pertinent to measuring a particular company’s on-going operating performance. Adjustments for our unconsolidated joint venture is calculated to reflect our proportionate share of the joint venture's Adjusted EBITDA on the same basis. NET DEBT-TO-ADJUSTED EBITDA Net Debt-to-Adjusted EBITDA is Net Debt divided by Adjusted EBITDA on a trailing twelve month basis. PRO RATA Where appropriate, the Company has included the results from its ownership share of its joint venture properties when combined with the Company's wholly owned properties, defined as "Pro Rata," with the exception of property and lease count, for the three and six months ended June 30, 2022 and as of December 31, 2022. As of June 30, 2023, as a result of the Company’s acquisition of the remaining IAGM properties, net assets of IAGM were $6.9 million, inclusive of cash and cash equivalents of $10.4 million, which has been included as part of Pro Rata Cash. Financial Statements Condensed Consolidated Balance Sheets In thousands, except share amounts As of June 30 As of December 31 2023 2022 Assets (unaudited) Investment properties Land $ 697,035 $ 650,764 Building and other improvements 1,949,421 1,825,893 Construction in progress 9,488 5,005 Total 2,655,944 2,481,662 Less accumulated depreciation (425,963 ) (389,361 ) Net investment properties 2,229,981 2,092,301 Cash, cash equivalents and restricted cash 80,749 137,762 Investment in unconsolidated entities 3,753 56,131 Intangible assets, net 132,720 101,167 Accounts and rents receivable 31,858 34,528 Deferred costs and other assets, net 57,700 51,145 Total assets $ 2,536,761 $ 2,473,034 Liabilities Debt, net $ 833,661 $ 754,551 Accounts payable and accrued expenses 39,063 42,792 Distributions payable 14,553 13,837 Intangible liabilities, net 33,326 29,658 Other liabilities 33,221 28,287 Total liabilities 953,824 869,125 Commitments and contingencies Stockholders' Equity Preferred stock, $0.001 par value, 40,000,000 shares authorized, none outstanding — — Common stock, $0.001 par value, 146,000,000 shares authorized, 67,531,335 shares issued and outstanding as of June 30, 2023 and 67,472,553 shares issued and outstanding as of December 31, 2022 68 67 Additional paid-in capital 5,461,253 5,456,968 Distributions in excess of accumulated net income (3,905,747 ) (3,879,847 ) Accumulated comprehensive income 27,363 26,721 Total stockholders' equity 1,582,937 1,603,909 Total liabilities and stockholders' equity $ 2,536,761 $ 2,473,034 Condensed Consolidated Statements of Operations and Comprehensive Income In thousands, except share and per share amounts, unaudited Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Income Lease income, net $ 64,268 $ 58,935 $ 129,098 $ 116,703 Other property income 419 318 714 582 Other fee income — 640 80 1,394 Total income 64,687 59,893 129,892 118,679 Operating expenses Depreciation and amortization 28,263 24,205 55,021 47,034 Property operating 9,756 9,184 19,986 17,469 Real estate taxes 8,952 8,615 18,580 16,658 General and administrative 8,048 8,116 15,779 16,003 Total operating expenses 55,019 50,120 109,366 97,164 Other (expense) income Interest expense, net (9,377 ) (5,631 ) (18,886 ) (10,440 ) Loss on extinguishment of debt — — — (96 ) Gain on sale of investment properties 984 36,856 984 36,856 Equity in earnings (losses) of unconsolidated entities 149 716 (514 ) 3,432 Other income and expense, net 644 207 1,091 155 Total other (expense) income, net (7,600 ) 32,148 (17,325 ) 29,907 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Weighted-average common shares outstanding - basic 67,523,105 67,413,049 67,515,913 67,384,044 Weighted-average common shares outstanding - diluted 67,711,848 67,550,846 67,683,226 67,577,524 Net income per common share - basic $ 0.03 $ 0.62 $ 0.05 $ 0.76 Net income per common share - diluted $ 0.03 $ 0.62 $ 0.05 $ 0.76 Distributions declared per common share outstanding $ 0.22 $ 0.21 $ 0.43 $ 0.41 Distributions paid per common share outstanding $ 0.22 $ 0.21 $ 0.42 $ 0.41 Comprehensive income Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Unrealized gain on derivatives 10,835 5,514 7,518 20,920 Reclassification (to) from net income (3,984 ) 492 (6,876 ) 1,517 Comprehensive income $ 8,919 $ 47,927 $ 3,843 $ 73,859 Reconciliation of Non-GAAP Measures In thousands Same Property NOI Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Income Minimum base rent $ 36,029 $ 34,341 $ 68,071 $ 64,693 Real estate tax recoveries 6,982 7,140 13,708 13,005 Common area maintenance, insurance, and other recoveries 6,557 6,583 11,934 11,647 Ground rent income 3,717 3,680 6,868 6,707 Short-term and other lease income 584 1,110 1,849 2,161 Provision for uncollectible billed rent and recoveries (167 ) (110 ) (393 ) (340 ) Reversal of uncollectible billed rent and recoveries — 240 488 1,083 Other property income 350 310 596 569 Total income 54,052 53,294 103,121 99,525 Operating Expenses Property operating 8,335 8,660 16,081 15,631 Real estate taxes 7,707 7,970 15,265 14,564 Total operating expenses 16,042 16,630 31,346 30,195 Same Property NOI $ 38,010 $ 36,664 $ 71,775 $ 69,330 Net Income to Same Property NOI Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Adjustments to reconcile to non-GAAP metrics: Other income and expense, net (644 ) (207 ) (1,091 ) (155 ) Equity in (earnings) losses of unconsolidated entities (149 ) (716 ) 514 (3,432 ) Interest expense, net 9,377 5,631 18,886 10,440 Loss on extinguishment of debt — — — 96 Gain on sale of investment properties (984 ) (36,856 ) (984 ) (36,856 ) Depreciation and amortization 28,263 24,205 55,021 47,034 General and administrative 8,048 8,116 15,779 16,003 Other fee income — (640 ) (80 ) (1,394 ) Adjustments to NOI (a) (2,035 ) (2,422 ) (4,594 ) (6,294 ) NOI 43,944 39,032 86,652 76,864 NOI from other investment properties (5,934 ) (2,368 ) (14,877 ) (7,534 ) Same Property NOI $ 38,010 $ 36,664 $ 71,775 $ 69,330 (a) Adjustments to NOI include termination fee income and expense and GAAP Rent Adjustments. Reconciliation of Non-GAAP Measures, continued in thousands, except share and per share amounts NAREIT FFO and Core FFO The following table presents a reconciliation of Net Income to NAREIT FFO and Core FFO Attributable to Common Shares and Dilutive Securities, and provides additional information related to its operations: Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Depreciation and amortization related to investment properties 28,077 23,996 54,620 46,618 Gain on sale of investment properties (984 ) (36,856 ) (984 ) (36,856 ) Unconsolidated joint venture adjustments (a) — 1,385 342 920 NAREIT FFO Applicable to Common Shares and Dilutive Securities 29,161 30,446 57,179 62,104 Amortization of market lease intangibles and inducements, net (572 ) (1,062 ) (2,088 ) (3,609 ) Straight-line rent adjustments, net (853 ) (1,211 ) (1,762 ) (2,368 ) Adjusting items, net (b) 1,322 524 3,256 1,397 Unconsolidated joint venture adjusting items, net (c) (6 ) (66 ) (162 ) 128 Core FFO Applicable to Common Shares and Dilutive Securities $ 29,052 $ 28,631 $ 56,423 $ 57,652 Weighted average common shares outstanding - basic 67,523,105 67,413,049 67,515,913 67,384,044 Dilutive effect of unvested restricted shares (d) 188,743 137,797 167,313 193,480 Weighted average common shares outstanding - diluted 67,711,848 67,550,846 67,683,226 67,577,524 NAREIT FFO Applicable to Common Shares and Dilutive Securities per share $ 0.43 $ 0.45 $ 0.84 $ 0.92 Core FFO Applicable to Common Shares and Dilutive Securities per share $ 0.43 $ 0.42 $ 0.83 $ 0.85 (a) Represents our share of depreciation, amortization and gain on sale related to investment properties held in IAGM. (b) Adjusting items, net, are primarily loss on extinguishment of debt, amortization of debt discounts and financing costs, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as basis difference recognition arising from acquiring the four remaining properties of our joint venture, and miscellaneous and settlement income. (c) Represents our share of amortization of market lease intangibles and inducements, net, straight line rent adjustments, net and adjusting items, net related to IAGM. (d) For purposes of calculating non-GAAP per share metrics, the same denominator is used as that which would be used in calculating diluted earnings per share in accordance with GAAP. Reconciliation of Non-GAAP Measures, continued In thousands EBITDA and Adjusted EBITDA The following table presents a reconciliation of Net Income to EBITDA and Adjusted EBITDA, and provides additional information related to its operations: Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Interest expense, net 9,377 5,631 18,886 10,440 Income tax expense 134 91 260 173 Depreciation and amortization 28,263 24,205 55,021 47,034 Unconsolidated joint venture adjustments (a) — 1,897 423 4,157 EBITDA 39,842 73,745 77,791 113,226 Adjustments to reconcile to Adjusted EBITDA Gain on sale of investment properties (984 ) (36,856 ) (984 ) (36,856 ) Loss on debt extinguishment — — — 96 Non-operating income and expense, net (b) (129 ) (362 ) 736 (456 ) Other leasing adjustments (c) (1,425 ) (2,273 ) (3,850 ) (5,977 ) Unconsolidated joint venture adjusting items, net (d) (6 ) (117 ) (178 ) (2,041 ) Adjusted EBITDA $ 37,298 $ 34,137 $ 73,515 $ 67,992 (a) Represents our share of depreciation, amortization, interest expense, net, and income tax expense related to IAGM. (b) Non-operating income and expense, net, includes other items which are not pertinent to measuring ongoing operating performance, such as basis difference recognition arising from acquiring the four remaining properties of our joint venture, and miscellaneous and settlement income. (c) Other leasing adjustments includes amortization of above and below market leases and straight-line rent adjustments. (d) Represents our share of loss on extinguishment of debt, amortization of market lease intangibles and inducements, net, straight line rent adjustments, net and non-operating income and expense, net, related to IAGM. Financial Leverage Ratios Dollars in thousands The following table presents the calculation of net debt and Net Debt-to-Adjusted EBITDA: As of June 30 As of December 31 2023* 2022* Net Debt: Outstanding Debt, net $ 833,661 $ 805,253 Less: Pro Rata Cash (83,982 ) (164,448 ) Net Debt $ 749,679 $ 640,805 Net Debt-to-Adjusted EBITDA (trailing 12 months): Net Debt $ 749,679 $ 640,805 Adjusted EBITDA (trailing 12 months) 137,891 132,368 Net Debt-to-Adjusted EBITDA 5.4x 4.8x *Pro Rata Cash as of June 30, 2023 includes cash remaining at our JV. Outstanding debt, net, and Net Debt as of December 31, 2022 are Pro Rata. About InvenTrust Properties Corp. InvenTrust Properties Corp. (“we,” the “Company,” “our,” “us,” "IVT" or "InvenTrust") 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 that often have a grocery component. We pursue our business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance ("ESG") practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013. For more information, please visit www.inventrustproperties.com. Forward-Looking Statements Disclaimer Forward-Looking Statements in this press release, or made during the earnings call, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements about the Company’s 2023 guidance, tenant demand for our centers, strength of our platform position, and expected timing and payment of dividends, or regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future, are typically identified by words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would,” “outlook,” “guidance,” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. The following factors, among others, could cause actual results and financial position and timing of certain events to differ materially from those described in the forward-looking statements: interest rate movements; local, regional, national and global economic performance; the impact of inflation on the Company and on its tenants; competitive factors; the impact of e-commerce on the retail industry; future retailer store closings; retailer consolidation; retailers reducing store size; retailer bankruptcies; government policy changes; the effects and duration of the COVID-19 pandemic; and any material market changes and trends that could affect the Company’s business strategy. For further discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see the Risk Factors included in InvenTrust’s most recent Annual Report on Form 10-K, as updated by any subsequent Quarterly Report on Form 10-Q, in each case as filed with the Securities and Exchange Commission. InvenTrust intends that such forward-looking statements be subject to the safe harbors created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, except as may be required by applicable law. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Availability of Information on InvenTrust Properties Corp.'s Website and Social Media Channels Investors and others should note that 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. The Company uses these channels as well as social media channels (e.g., the InvenTrust Twitter account (twitter.com/inventrustprop); and the InvenTrust LinkedIn account (linkedin.com/company/inventrustproperties)) as a means of disclosing information about the Company's business to our colleagues, investors, and the public. While not all of the information that the Company posts to the InvenTrust investor relations website or on the Company’s social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in InvenTrust to review the information that it shares on www.inventrustproperties.com/investor-relations and on the Company’s social media channels. View source version on businesswire.com: https://www.businesswire.com/news/home/20230731011933/en/Contacts Dan Lombardo Vice President of Investor Relations 630-570-0605 dan.lombardo@inventrustproperties.com
InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today reported financial and operating results for the period ended June 30, 2023. For the three months ended June 30, 2023 and 2022, Net Income was $2.1 million, or $0.03 per diluted share, compared to Net Income of $41.9 million, or $0.62 per diluted share, respectively. Second Quarter 2023 Highlights: NAREIT FFO of $0.43 per diluted share Core FFO of $0.43 per diluted share Same Property Net Operating Income (“NOI”) growth of 3.7% Leased Occupancy as of June 30, 2023 of 96.2% Executed 77 leases totaling approximately 347,000 square feet of GLA, of which 244,000 square feet was executed at a blended comparable lease spread of 5.8% Acquired The Shoppes at Davis Lake, a 91,000 square foot neighborhood center anchored by Harris Teeter in Charlotte, North Carolina for a gross acquisition price of $22.4 million. Published the Company’s annual 2022 Environmental, Social & Governance report. “Our results this quarter highlight the robust tenant demand at our centers and the outstanding execution of the InvenTrust team, positioning our platform for continued outperformance,” Daniel (DJ) Busch, President and CEO of InvenTrust stated. “Our investment grade balance sheet provides us the flexibility to be both patient and opportunistic when looking to grow our asset base without the immediate need to access the capital markets.” NET INCOME Net Income for the three months ended June 30 2023 was $2.1 million, or $0.03 per diluted share, compared to Net Income of $41.9 million, or $0.62 per diluted share, for the same period in 2022. Net Income for the six months ended June 30, 2023 was $3.2 million, or $0.05 per diluted share, compared to Net Income of $51.4 million, or $0.76 per diluted share, for the same period in 2022. NAREIT FFO NAREIT FFO for the three months ended June 30, 2023 was $29.2 million, or $0.43 per diluted share, compared to $30.4 million, or $0.45 per diluted share, for the same period in 2022. NAREIT FFO for the six months ended June 30, 2023 was $57.2 million, or $0.84 per diluted share, compared to $62.1 million, or $0.92 per diluted share, for the same period in 2022. CORE FFO Core FFO for the three months ended June 30, 2023 was $29.1 million, or $0.43 per diluted share, compared to $28.6 million, or $0.42 per diluted share, for the same period in 2022. Core FFO for the six months ended June 30, 2023 was $56.4 million, or $0.83 per diluted share, compared to $57.7 million, or $0.85 per diluted share, for the same period in 2022. SAME PROPERTY NOI Same Property NOI for the three months ended June 30, 2023 was $38.0 million, a 3.7% increase, compared to the same period in 2022. Same Property NOI for the six months ended June 30, 2023 was $71.8 million, a 3.5% increase, compared to the same period in 2022. DIVIDEND For the quarter ending June 30, 2023, the Board of Directors declared a quarterly cash distribution of $0.2155 per share, paid on July 14, 2023. PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY As of June 30, 2023, the Company’s Leased Occupancy was 96.2%. Total Anchor Leased Occupancy, which includes spaces greater than or equal to 10,000 square feet, was 98.6% and Small Shop Leased Occupancy was 92.0%. Anchor Leased Occupancy decreased 20 basis points and Small Shop Leased Occupancy increased 60 basis points on a sequential basis compared to the previous quarter. Leased to Economic Occupancy spread of 230 basis points, which equates to approximately $4.9 million of base rent on an annualized basis. Blended re-leasing spreads for comparable new and renewal leases signed in the second quarter were 5.8%. Annualized Base Rent PSF (“ABR”) as of June 30, 2023 was $19.18, an increase of 2.0% compared to the same period in 2022. Anchor Tenant ABR PSF was $12.40 and Small Shop ABR PSF was $32.32 for the second quarter. Acquired The Shoppes at Davis Lake, a 91,000 square foot neighborhood center anchored by Harris Teeter in Charlotte, North Carolina for a gross acquisition price of $22.4 million. LIQUIDITY AND CAPITAL STRUCTURE InvenTrust had $434.0 million of total liquidity, as of June 30, 2023, comprised of $84.0 million of Pro Rata Cash and $350.0 million of availability under its Revolving Credit Facility. As of June 30, 2023, net assets of IAGM were $6.9 million, inclusive of cash and cash equivalents of $10.4 million. InvenTrust has $92.5 million of debt maturing in 2023 and $15.7 million of debt maturing in 2024, as of June 30, 2023. As of June 30, 2023, the Company's weighted average interest rate on its debt was 3.88% and the weighted average remaining term was 4.3 years. Effective April 3, 2023, the Company’s variable rate on $100.0 million of term loans was swapped to a fixed rate of 3.69%, achieving an all-in interest rate of 4.99%. In tandem with other interest rate swaps, the entirety of the Company's variable rate term loans were swapped to fixed rates through the respective maturity dates. 2023 GUIDANCE InvenTrust has updated its 2023 guidance, as summarized in the table below. (Unaudited, dollars in thousands, except per share amounts) Current Previous Net Income per diluted share (1) $0.06 — $0.11 $0.06 — $0.11 NAREIT FFO per diluted share (2) $1.64 — $1.69 $1.64 — $1.69 Core FFO per diluted share $1.61 — $1.64 $1.59 — $1.64 Same Property NOI (“SPNOI”) Growth 4.00% — 5.00% 3.50% — 5.00% General and administrative $31,250 — $32,750 $31,250 — $32,750 Interest expense, net (3) $34,000 — $34,500 $34,500 — $35,500 Adjustments for uncollectibility (4) 50 bps — 150 bps 50 bps — 150 bps Net investment activity (5) ~ $150,000 ~ $150,000 The Company’s 2023 Guidance contemplates the following assumptions: (1) Net Income per diluted share excludes effects from potential acquisitions or dispositions. (2) NAREIT FFO per diluted share: Excludes effects from potential acquisitions or dispositions. Excludes any items that impact NAREIT FFO comparability, including loss on debt extinguishment, non-routine or one-time items of which, in our judgement, are not pertinent to measuring on-going operating performance. Includes an expectation that some tenants will move from the cash basis of accounting to the accrual basis of accounting, which can result in volatility in straight-line rental income adjustments. (3) Interest expense, net, excludes amortization of debt discounts and financing costs, and expected interest income of $1.5 million to $2.5 million. (4) Adjustments for uncollectibility are reflected as basis points of expected total revenue. (5) Net investment activity represents anticipated acquisition activity less disposition activity. In addition to the foregoing assumptions, the Company's 2023 Guidance incorporates a number of other assumptions that are subject to change and may be outside the control of the Company. For example, the Company’s guidance is inclusive of prior period rent that the Company anticipates collecting. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurances that InvenTrust will achieve these results. The following table provides a reconciliation of the range of the Company's 2023 estimated net income per diluted share to estimated NAREIT FFO and Core FFO per diluted share: (Unaudited) Low End High End Net income $ 0.06 $ 0.11 Depreciation and amortization related to investment properties 1.59 1.59 Gain on sale of investment properties, net (0.01 ) (0.01 ) NAREIT FFO Applicable to Common Shares and Dilutive Securities 1.64 1.69 Amortization of market-lease intangibles and inducements, net (0.05 ) (0.05 ) Straight-line rent adjustments, net (0.05 ) (0.05 ) Adjusting items, net (a) 0.07 0.05 Core FFO Applicable to Common Shares and Dilutive Securities $ 1.61 $ 1.64 (a) Adjusting items, net, are primarily amortization of debt discounts and financing costs, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as basis difference recognition arising from acquiring the four remaining properties of our joint venture, and miscellaneous and settlement income. The Company does not provide a reconciliation of forward-looking SPNOI to forward-looking GAAP Net Income within this press release because the Company is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to our results. CONFERENCE CALL INFORMATION Date: Tuesday, August 1, 2023 Time: 9:00 a.m. ET Dial-in: (833) 470-1428 / Access Code: 004704 Webcast: https://events.q4inc.com/attendee/723410840 Replay Webcast Archive: https://www.inventrustproperties.com/investor-relations/ A webcast replay will be available shortly after the conclusion of the presentation using the webcast link above. NON-GAAP FINANCIAL MEASURES This Earnings Release includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. These measures should not be considered as alternatives to, or more meaningful than, net income (calculated in accordance with GAAP) or other GAAP financial measures, as an indicator of financial performance and are not alternatives to, or more meaningful than, cash flow from operating activities (calculated in accordance with GAAP) as a measure of liquidity. Non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results to those calculated in accordance with GAAP. The Company's computation of these non-GAAP performance measures may differ in certain respects from the methodology utilized by other REITs and, therefore, may not be comparable to similarly titled measures presented by such other REITs. Investors are cautioned that items excluded from these non-GAAP performance measures are relevant to understanding and addressing financial performance. A reconciliation of our non-GAAP measures to the most directly comparable GAAP financials measures are included herein. SAME PROPERTY NOI or SPNOI Information provided on a same property basis includes the results of properties that were owned and operated for the entirety of both periods presented. NOI excludes general and administrative expenses, depreciation and amortization, provision for asset impairment, other income and expense, net, gains (losses) from sales of properties, gains (losses) on extinguishment of debt, interest expense, net, equity in earnings (losses) from unconsolidated entities, lease termination income and expense, and GAAP rent adjustments such as straight-line rent adjustments, amortization of market lease intangibles, and amortization of lease incentives ("GAAP Rent Adjustments"). NAREIT FUNDS FROM OPERATIONS (NAREIT FFO) and CORE FFO Our non-GAAP measure of NAREIT Funds from Operations ("NAREIT FFO"), based on the National Association of Real Estate Investment Trusts ("NAREIT") definition, is net income (or loss) in accordance with GAAP, excluding gains (or losses) resulting from dispositions of properties, plus depreciation and amortization and impairment charges on depreciable real property. Adjustments for our unconsolidated joint venture is calculated to reflect our proportionate share of the joint venture's NAREIT FFO on the same basis. Core Funds From Operations (“Core FFO”) is an additional supplemental non-GAAP financial measure of our operating performance. In particular, Core FFO provides an additional measure to compare the operating performance of different REITs without having to account for certain remaining amortization assumptions within NAREIT FFO and other unique revenue and expense items which some may consider not pertinent to measuring a particular company’s on-going operating performance. ADJUSTED EBITDA Our non-GAAP measure of Adjusted EBITDA excludes gains (or losses) resulting from debt extinguishments, straight-line rent adjustments, amortization of above and below market leases and lease inducements, and other unique revenue and expense items which some may consider not pertinent to measuring a particular company’s on-going operating performance. Adjustments for our unconsolidated joint venture is calculated to reflect our proportionate share of the joint venture's Adjusted EBITDA on the same basis. NET DEBT-TO-ADJUSTED EBITDA Net Debt-to-Adjusted EBITDA is Net Debt divided by Adjusted EBITDA on a trailing twelve month basis. PRO RATA Where appropriate, the Company has included the results from its ownership share of its joint venture properties when combined with the Company's wholly owned properties, defined as "Pro Rata," with the exception of property and lease count, for the three and six months ended June 30, 2022 and as of December 31, 2022. As of June 30, 2023, as a result of the Company’s acquisition of the remaining IAGM properties, net assets of IAGM were $6.9 million, inclusive of cash and cash equivalents of $10.4 million, which has been included as part of Pro Rata Cash. Financial Statements Condensed Consolidated Balance Sheets In thousands, except share amounts As of June 30 As of December 31 2023 2022 Assets (unaudited) Investment properties Land $ 697,035 $ 650,764 Building and other improvements 1,949,421 1,825,893 Construction in progress 9,488 5,005 Total 2,655,944 2,481,662 Less accumulated depreciation (425,963 ) (389,361 ) Net investment properties 2,229,981 2,092,301 Cash, cash equivalents and restricted cash 80,749 137,762 Investment in unconsolidated entities 3,753 56,131 Intangible assets, net 132,720 101,167 Accounts and rents receivable 31,858 34,528 Deferred costs and other assets, net 57,700 51,145 Total assets $ 2,536,761 $ 2,473,034 Liabilities Debt, net $ 833,661 $ 754,551 Accounts payable and accrued expenses 39,063 42,792 Distributions payable 14,553 13,837 Intangible liabilities, net 33,326 29,658 Other liabilities 33,221 28,287 Total liabilities 953,824 869,125 Commitments and contingencies Stockholders' Equity Preferred stock, $0.001 par value, 40,000,000 shares authorized, none outstanding — — Common stock, $0.001 par value, 146,000,000 shares authorized, 67,531,335 shares issued and outstanding as of June 30, 2023 and 67,472,553 shares issued and outstanding as of December 31, 2022 68 67 Additional paid-in capital 5,461,253 5,456,968 Distributions in excess of accumulated net income (3,905,747 ) (3,879,847 ) Accumulated comprehensive income 27,363 26,721 Total stockholders' equity 1,582,937 1,603,909 Total liabilities and stockholders' equity $ 2,536,761 $ 2,473,034 Condensed Consolidated Statements of Operations and Comprehensive Income In thousands, except share and per share amounts, unaudited Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Income Lease income, net $ 64,268 $ 58,935 $ 129,098 $ 116,703 Other property income 419 318 714 582 Other fee income — 640 80 1,394 Total income 64,687 59,893 129,892 118,679 Operating expenses Depreciation and amortization 28,263 24,205 55,021 47,034 Property operating 9,756 9,184 19,986 17,469 Real estate taxes 8,952 8,615 18,580 16,658 General and administrative 8,048 8,116 15,779 16,003 Total operating expenses 55,019 50,120 109,366 97,164 Other (expense) income Interest expense, net (9,377 ) (5,631 ) (18,886 ) (10,440 ) Loss on extinguishment of debt — — — (96 ) Gain on sale of investment properties 984 36,856 984 36,856 Equity in earnings (losses) of unconsolidated entities 149 716 (514 ) 3,432 Other income and expense, net 644 207 1,091 155 Total other (expense) income, net (7,600 ) 32,148 (17,325 ) 29,907 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Weighted-average common shares outstanding - basic 67,523,105 67,413,049 67,515,913 67,384,044 Weighted-average common shares outstanding - diluted 67,711,848 67,550,846 67,683,226 67,577,524 Net income per common share - basic $ 0.03 $ 0.62 $ 0.05 $ 0.76 Net income per common share - diluted $ 0.03 $ 0.62 $ 0.05 $ 0.76 Distributions declared per common share outstanding $ 0.22 $ 0.21 $ 0.43 $ 0.41 Distributions paid per common share outstanding $ 0.22 $ 0.21 $ 0.42 $ 0.41 Comprehensive income Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Unrealized gain on derivatives 10,835 5,514 7,518 20,920 Reclassification (to) from net income (3,984 ) 492 (6,876 ) 1,517 Comprehensive income $ 8,919 $ 47,927 $ 3,843 $ 73,859 Reconciliation of Non-GAAP Measures In thousands Same Property NOI Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Income Minimum base rent $ 36,029 $ 34,341 $ 68,071 $ 64,693 Real estate tax recoveries 6,982 7,140 13,708 13,005 Common area maintenance, insurance, and other recoveries 6,557 6,583 11,934 11,647 Ground rent income 3,717 3,680 6,868 6,707 Short-term and other lease income 584 1,110 1,849 2,161 Provision for uncollectible billed rent and recoveries (167 ) (110 ) (393 ) (340 ) Reversal of uncollectible billed rent and recoveries — 240 488 1,083 Other property income 350 310 596 569 Total income 54,052 53,294 103,121 99,525 Operating Expenses Property operating 8,335 8,660 16,081 15,631 Real estate taxes 7,707 7,970 15,265 14,564 Total operating expenses 16,042 16,630 31,346 30,195 Same Property NOI $ 38,010 $ 36,664 $ 71,775 $ 69,330 Net Income to Same Property NOI Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Adjustments to reconcile to non-GAAP metrics: Other income and expense, net (644 ) (207 ) (1,091 ) (155 ) Equity in (earnings) losses of unconsolidated entities (149 ) (716 ) 514 (3,432 ) Interest expense, net 9,377 5,631 18,886 10,440 Loss on extinguishment of debt — — — 96 Gain on sale of investment properties (984 ) (36,856 ) (984 ) (36,856 ) Depreciation and amortization 28,263 24,205 55,021 47,034 General and administrative 8,048 8,116 15,779 16,003 Other fee income — (640 ) (80 ) (1,394 ) Adjustments to NOI (a) (2,035 ) (2,422 ) (4,594 ) (6,294 ) NOI 43,944 39,032 86,652 76,864 NOI from other investment properties (5,934 ) (2,368 ) (14,877 ) (7,534 ) Same Property NOI $ 38,010 $ 36,664 $ 71,775 $ 69,330 (a) Adjustments to NOI include termination fee income and expense and GAAP Rent Adjustments. Reconciliation of Non-GAAP Measures, continued in thousands, except share and per share amounts NAREIT FFO and Core FFO The following table presents a reconciliation of Net Income to NAREIT FFO and Core FFO Attributable to Common Shares and Dilutive Securities, and provides additional information related to its operations: Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Depreciation and amortization related to investment properties 28,077 23,996 54,620 46,618 Gain on sale of investment properties (984 ) (36,856 ) (984 ) (36,856 ) Unconsolidated joint venture adjustments (a) — 1,385 342 920 NAREIT FFO Applicable to Common Shares and Dilutive Securities 29,161 30,446 57,179 62,104 Amortization of market lease intangibles and inducements, net (572 ) (1,062 ) (2,088 ) (3,609 ) Straight-line rent adjustments, net (853 ) (1,211 ) (1,762 ) (2,368 ) Adjusting items, net (b) 1,322 524 3,256 1,397 Unconsolidated joint venture adjusting items, net (c) (6 ) (66 ) (162 ) 128 Core FFO Applicable to Common Shares and Dilutive Securities $ 29,052 $ 28,631 $ 56,423 $ 57,652 Weighted average common shares outstanding - basic 67,523,105 67,413,049 67,515,913 67,384,044 Dilutive effect of unvested restricted shares (d) 188,743 137,797 167,313 193,480 Weighted average common shares outstanding - diluted 67,711,848 67,550,846 67,683,226 67,577,524 NAREIT FFO Applicable to Common Shares and Dilutive Securities per share $ 0.43 $ 0.45 $ 0.84 $ 0.92 Core FFO Applicable to Common Shares and Dilutive Securities per share $ 0.43 $ 0.42 $ 0.83 $ 0.85 (a) Represents our share of depreciation, amortization and gain on sale related to investment properties held in IAGM. (b) Adjusting items, net, are primarily loss on extinguishment of debt, amortization of debt discounts and financing costs, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as basis difference recognition arising from acquiring the four remaining properties of our joint venture, and miscellaneous and settlement income. (c) Represents our share of amortization of market lease intangibles and inducements, net, straight line rent adjustments, net and adjusting items, net related to IAGM. (d) For purposes of calculating non-GAAP per share metrics, the same denominator is used as that which would be used in calculating diluted earnings per share in accordance with GAAP. Reconciliation of Non-GAAP Measures, continued In thousands EBITDA and Adjusted EBITDA The following table presents a reconciliation of Net Income to EBITDA and Adjusted EBITDA, and provides additional information related to its operations: Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Net income $ 2,068 $ 41,921 $ 3,201 $ 51,422 Interest expense, net 9,377 5,631 18,886 10,440 Income tax expense 134 91 260 173 Depreciation and amortization 28,263 24,205 55,021 47,034 Unconsolidated joint venture adjustments (a) — 1,897 423 4,157 EBITDA 39,842 73,745 77,791 113,226 Adjustments to reconcile to Adjusted EBITDA Gain on sale of investment properties (984 ) (36,856 ) (984 ) (36,856 ) Loss on debt extinguishment — — — 96 Non-operating income and expense, net (b) (129 ) (362 ) 736 (456 ) Other leasing adjustments (c) (1,425 ) (2,273 ) (3,850 ) (5,977 ) Unconsolidated joint venture adjusting items, net (d) (6 ) (117 ) (178 ) (2,041 ) Adjusted EBITDA $ 37,298 $ 34,137 $ 73,515 $ 67,992 (a) Represents our share of depreciation, amortization, interest expense, net, and income tax expense related to IAGM. (b) Non-operating income and expense, net, includes other items which are not pertinent to measuring ongoing operating performance, such as basis difference recognition arising from acquiring the four remaining properties of our joint venture, and miscellaneous and settlement income. (c) Other leasing adjustments includes amortization of above and below market leases and straight-line rent adjustments. (d) Represents our share of loss on extinguishment of debt, amortization of market lease intangibles and inducements, net, straight line rent adjustments, net and non-operating income and expense, net, related to IAGM. Financial Leverage Ratios Dollars in thousands The following table presents the calculation of net debt and Net Debt-to-Adjusted EBITDA: As of June 30 As of December 31 2023* 2022* Net Debt: Outstanding Debt, net $ 833,661 $ 805,253 Less: Pro Rata Cash (83,982 ) (164,448 ) Net Debt $ 749,679 $ 640,805 Net Debt-to-Adjusted EBITDA (trailing 12 months): Net Debt $ 749,679 $ 640,805 Adjusted EBITDA (trailing 12 months) 137,891 132,368 Net Debt-to-Adjusted EBITDA 5.4x 4.8x *Pro Rata Cash as of June 30, 2023 includes cash remaining at our JV. Outstanding debt, net, and Net Debt as of December 31, 2022 are Pro Rata. About InvenTrust Properties Corp. InvenTrust Properties Corp. (“we,” the “Company,” “our,” “us,” "IVT" or "InvenTrust") 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 that often have a grocery component. We pursue our business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance ("ESG") practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013. For more information, please visit www.inventrustproperties.com. Forward-Looking Statements Disclaimer Forward-Looking Statements in this press release, or made during the earnings call, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements about the Company’s 2023 guidance, tenant demand for our centers, strength of our platform position, and expected timing and payment of dividends, or regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future, are typically identified by words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would,” “outlook,” “guidance,” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. The following factors, among others, could cause actual results and financial position and timing of certain events to differ materially from those described in the forward-looking statements: interest rate movements; local, regional, national and global economic performance; the impact of inflation on the Company and on its tenants; competitive factors; the impact of e-commerce on the retail industry; future retailer store closings; retailer consolidation; retailers reducing store size; retailer bankruptcies; government policy changes; the effects and duration of the COVID-19 pandemic; and any material market changes and trends that could affect the Company’s business strategy. For further discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see the Risk Factors included in InvenTrust’s most recent Annual Report on Form 10-K, as updated by any subsequent Quarterly Report on Form 10-Q, in each case as filed with the Securities and Exchange Commission. InvenTrust intends that such forward-looking statements be subject to the safe harbors created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, except as may be required by applicable law. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Availability of Information on InvenTrust Properties Corp.'s Website and Social Media Channels Investors and others should note that 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. The Company uses these channels as well as social media channels (e.g., the InvenTrust Twitter account (twitter.com/inventrustprop); and the InvenTrust LinkedIn account (linkedin.com/company/inventrustproperties)) as a means of disclosing information about the Company's business to our colleagues, investors, and the public. While not all of the information that the Company posts to the InvenTrust investor relations website or on the Company’s social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in InvenTrust to review the information that it shares on www.inventrustproperties.com/investor-relations and on the Company’s social media channels. View source version on businesswire.com: https://www.businesswire.com/news/home/20230731011933/en/