InvenTrust Properties
InvenTrust
DOWNERS GROVE, III.--(BUSINESS WIRE)-- InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today reported financial and operating results for the period ended September 30, 2021 and provided guidance for 2021. For the three months ended September 30, 2021, the Company reported Net Income of $4.0 million, or $0.06 per basic share, compared to $1.7 million, or $0.02 per basic share, for the three months ended September 30, 2020.
Third Quarter 2021 Highlights:
"This is an exciting time for InvenTrust,” commented Daniel (DJ) Busch, President and CEO of InvenTrust. “We are pleased to have executed a successful listing on the NYSE. As we establish ourselves in the publicly-traded market, our Sun Belt concentration is a differentiator amongst the shopping center sector and we believe our platform is in a great position to execute on our growth strategy.”
FINANCIAL RESULTS
DIVIDEND
PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY
CAPITAL STRUCTURE
SUBSEQUENT ACTIVITY:
New York Stock Exchange Listing
"Dutch Auction" Tender Offer
Austin Acquisition Under Contract
2021 OUTLOOK AND GUIDANCE
•
Net Loss per diluted share
$(0.20) to $(0.16)
FFO per share
$1.09 to $1.13
Core FFO per share1
$1.38 to $1.42
SPNOI Growth
3.25% to 4.75%
1 – Estimated 2021 Core FFO per share, excludes, among other things, advisory fees associated with our NYSE direct listing. These advisory fees represent banker, legal and other advisor fees incurred in connection with our direct listing on October 12, 2021.
Note: Acquisitions are not included in the 2021 Outlook and Guidance beyond what has been completed as of the date of this release. 2021 Outlook and Guidance does include two potential and pending dispositions that may be completed by the end of 2021. The Company’s 2021 Outlook and Guidance is based on a number of assumptions that are subject to change and may be outside the control of the Company. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurances that InvenTrust will achieve these results.
CONFERENCE CALL INFORMATION
Date:
November 2, 2021
Time:
11:00 a.m. ET
Dial-in:
1-866-652-5200
Webcast:
https://services.choruscall.com/links/ivt211102.html
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 and RECONCILIATIONS
This Earnings Release and Supplemental Financial Information 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 below.
SAME PROPERTY NOI
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 (losses) earnings and (impairment), net, from unconsolidated entities, lease termination income and expense, and GAAP rent adjustments (such as straight-line rent, above/below market lease amortization and amortization of lease incentives).
FUNDS FROM OPERATIONS (FFO) and CORE FFO
Our non-GAAP measure of Funds from Operations ("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 joint ventures are calculated to reflect our proportionate share of the joint venture's FFO on the same basis. Core Funds From Operations 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 FFO and other unique revenue and expense items which are 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, transaction expenses, straight-line rent adjustments, amortization of above and below market leases and lease inducements, and other unique revenue and expense items which are not pertinent to measuring our on-going operating performance. Adjustments for our joint ventures are 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 Pro Rata 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 count.
FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets
(Unaudited, dollars in thousands, except share amounts)
$
598,940
577,750
1,659,494
1,640,693
6,361
3,246
2,264,795
2,221,689
(335,086
)
(292,248
1,929,709
1,929,441
138,341
223,770
104,963
109,051
86,266
95,722
29,013
28,983
26,050
20,372
2,314,342
2,407,339
502,151
555,109
41,638
28,284
13,933
13,642
30,436
34,872
31,368
36,569
619,526
668,476
-
Common stock, $0.001 par value, 1,460,000,000 shares authorized, 71,261,403 shares issued and outstanding as of September 30, 2021 and 71,998,634 shares issued and outstanding as of December 31, 2020
71
72
5,554,596
5,566,902
(3,852,190
(3,815,662
(7,661
(12,449
1,694,816
1,738,863
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
Three months ended September 30,
Nine months ended September 30,
2021
2020
53,965
51,489
154,869
143,491
310
177
760
576
863
879
2,770
2,555
55,138
52,545
158,399
146,622
21,318
22,170
65,000
66,697
8,143
6,677
23,926
19,969
8,490
8,940
24,781
24,647
8,782
10,106
29,043
25,688
1,704
48,437
47,893
144,454
137,001
(3,999
(4,594
(11,956
(14,327
(400
(2,543
(9,002
636
424
1,516
668
1,046
951
2,441
1,591
8
244
(155
2,572
(2,709
(2,975
(8,554
(21,041
3,992
1,677
5,391
(11,420
71,261,403
71,945,847
71,731,832
72,072,252
71,395,625
72,009,209
71,802,082
0.06
0.02
0.08
(0.16
0.20
0.19
0.58
0.57
0.56
(195
(25
1,560
(16,498
1,102
1,043
3,228
1,643
4,899
2,695
10,179
(26,275
Pro Rata Same Property Net Operating Income
The following table compares Pro Rata Same Property NOI (in thousands):
Three Months Ended September 30
Nine Months Ended September 30
31,183
31,497
92,031
94,544
7,294
8,147
21,280
21,917
5,778
5,487
17,067
15,486
3,254
9,479
9,453
861
433
2,500
1,689
(51
(1,220
(1,633
(8,175
2,259
68
3,972
387
311
181
758
554
50,889
47,839
145,454
135,855
7,813
6,690
23,118
19,093
8,179
24,167
24,180
15,992
15,630
47,285
43,273
34,897
32,209
98,169
92,582
3,720
3,484
10,351
10,763
38,617
35,693
108,520
103,345
Reconciliation of Net Income (Loss) to Pro Rata Same Property NOI
Below is a reconciliation of Net income (Loss) to Pro Rata Same Property NOI (in thousands):
(8
(244
155
(2,572
(1,046
(951
(2,441
(1,591
3,999
4,594
11,956
14,327
400
2,543
(636
(424
(1,516
(668
9,002
(863
(879
(2,770
(2,555
(1,825
(3,548
(5,674
(4,825
35,817
32,501
101,248
94,626
(920
(292
(3,079
(2,044
FFO and Core FFO
The following table presents the Company’s calculation of FFO and Core FFO Attributable to Common Shares and Dilutive Securities and provides additional information related to its operations (in thousands, except per share amounts):
21,107
22,165
64,328
65,726
1,787
2,110
5,943
6,872
26,250
25,528
74,146
69,512
(1,019
(2,915
(3,404
(5,763
(633
(329
(1,902
1,039
217
2,214
4,123
260
53
566
972
27,320
22,554
73,324
69,883
134,222
63,362
70,250
0.37
0.35
1.03
0.96
0.38
0.31
1.02
0.97
EBITDA, Pro Rata
The following table presents the Company’s calculation of EBITDA and Adjusted EBITDA (in thousands):
4,690
5,554
14,385
17,469
74
140
275
(910
23,325
24,279
71,163
73,569
32,081
31,650
91,214
78,708
(856
(1,736
(669
518
526
2,548
(229
(253
(6
(1,588
(3,264
(5,072
(3,944
31,630
27,709
86,630
84,782
Financial Leverage Ratios
The following table presents the calculation of net debt to Adjusted EBITDA and net debt as of September 30, 2021 and December 31, 2020 (dollars in thousands):
593,301
688,422
(162,817
(249,854
430,484
438,568
118,038
116,190
3.6x
3.8x
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. 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 also committed to leadership in environmental, social and governance (ESG) practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2018. As of September 30, 2021, the Company is an owner and manager of 63 retail properties, representing 10.6 million square feet of retail space. For more information, please visit www.inventrustproperties.com.
Forward-Looking Statements Disclaimer
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical, including statements regarding management’s intentions, beliefs, expectations, representation, plans or predictions of the future and 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: the effects and duration of the COVID-19 pandemic; interest rate movements; local, regional, national and global economic performance; 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; 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.
Important Information and Where to Find It
The foregoing information and other information in this Press Release regarding the Tender Offer is for informational purposes only and is neither an offer to buy nor the solicitation of an offer to sell any securities of the Company. The full details of the Tender Offer, including complete instructions on how to tender shares, are included in the offer to purchase, the letter of transmittal, and other related materials, which we have distributed to stockholders and have filed with the SEC. Stockholders are urged to carefully read the offer to purchase, the letter of transmittal, and other related materials, as they contain important information, including the terms and conditions of the Tender Offer. Stockholders may obtain free copies of the offer to purchase, the letter of transmittal, and other related materials that the Company has filed with the SEC on the SEC's website at www.sec.gov or by calling Georgeson LLC, the information agent for the Tender Offer at (888) 877-5360 (toll free).
View source version on businesswire.com: https://www.businesswire.com/news/home/20211101005926/en/
Dan Lombardo Vice President of Investor Relations 630-570-0605 dan.lombardo@inventrustproperties.com
Source: InvenTrust Properties Corp.