InvenTrust Properties
InvenTrust
DOWNERS GROVE, Ill.--(BUSINESS WIRE)-- InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today reported financial and operating results for the quarter ended June 30, 2025. For the three months ended June 30, 2025 and 2024, the Company reported Net Income of $95.9 million, or $1.23 per diluted share, and Net Income of $1.5 million, or $0.02 per diluted share, respectively.
Second Quarter 2025 Highlights:
“This quarter marks a significant milestone in the execution of our portfolio strategy, as we successfully completed the disposition of the majority of our California assets,” said DJ Busch, President and CEO of InvenTrust. “At the same time, we efficiently redeployed a significant portion of that capital into growing Sun Belt markets.”
Busch continued, “These transactions underscore our continued commitment to portfolio simplification, operational excellence, and disciplined capital allocation. Importantly, we achieved this milestone while maintaining strong full year Same Property NOI and FFO growth guidance. We believe this repositioning enhances the long-term value of our portfolio and further strengthens InvenTrust’s foundation for sustainable cash flow growth.”
NET INCOME
NAREIT FFO
CORE FFO
SAME PROPERTY NOI
DIVIDEND
PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY
LIQUIDITY AND CAPITAL STRUCTURE
SUBSEQUENT EVENTS
2025 GUIDANCE
InvenTrust has updated its 2025 guidance, as summarized in the following table.
(Unaudited, dollars in thousands, except per share amounts)
Current(1) (2)
Previous
Net Income per diluted share
$1.43
–
$1.49
$0.27
$0.33
Nareit FFO per diluted share
$1.83
$1.89
Core FFO per diluted share (3)
$1.79
Same Property NOI (“SPNOI”) Growth
4.00%
5.00%
3.50%
4.50%
General and administrative
$34,250
$35,750
Interest expense, net(4)
$31,000
$31,500
Net investment activity(5)
~ $100,000
The Company’s 2025 guidance excludes projections related to gains or losses on dispositions, gains or losses on debt transactions, and depreciation, amortization, and straight-line rent adjustments related to acquisitions and dispositions.
The Company’s 2025 guidance includes an expectation of uncollectibility, reflected as 65 - 85 basis points of expected total revenue.
Core FFO per diluted share excludes amortization of market-lease intangibles and inducements, debt extinguishment charges, straight-line rent adjustments, depreciation and amortization of corporate assets, and non-operating income and expense.
Interest expense, net, excludes amortization of debt discounts and financing costs, and expected interest income of approximately $2.8 million.
Net investment activity represents anticipated acquisition activity less disposition activity.
In addition to the foregoing assumptions, the Company's 2025 guidance incorporates a number of other 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.
The following table provides a reconciliation of the range of the Company's 2025 estimated net income per diluted share to estimated Nareit FFO and Core FFO per diluted share:
(Unaudited)
Low End
High End
Net income per diluted share
$
1.43
1.49
Depreciation and amortization of real estate assets
1.56
Gain on sale of investment properties
(1.16
)
1.83
1.89
Amortization of market-lease intangibles and inducements, net
(0.04
(0.05
Straight-line rent adjustments, net
Amortization of debt discounts and financing costs
0.04
Core FFO per diluted share
1.79
This earnings release does not include a reconciliation of forward-looking SPNOI to forward-looking GAAP Net Income 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 the Company’s results.
EARNINGS CALL INFORMATION
Date:
July 30, 2025
Time:
10:00 a.m. ET
Dial-in:
(833) 470-1428 / Access Code: 158670
Webcast & Replay Link:
https://events.q4inc.com/attendee/848091035
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 financial measures and other terms that are not in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) that management believes are helpful in understanding the Company’s 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 the Company’s 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, other income and expense, net, impairment of real estate assets, gains (losses) from sales of properties, gains (losses) on extinguishment of debt, interest expense, net, lease termination income and expense, and GAAP rent adjustments such as amortization of market lease intangibles, amortization of lease incentives, and straight-line rent adjustments (“GAAP Rent Adjustments”). The Company bifurcates NOI into Same Property NOI and NOI from other investment properties based on whether the retail properties meet the Company’s Same Property criteria. NOI from other investment properties includes adjustments for the Company’s captive insurance company.
NAREIT FUNDS FROM OPERATIONS (NAREIT FFO) and CORE FFO
The Company’s 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. Core Funds From Operations (“Core FFO”) is an additional supplemental non-GAAP financial measure of the Company’s 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 ongoing operating performance.
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA) and ADJUSTED EBITDA
The Company’s non-GAAP measure of EBITDA is net income (or loss) in accordance with GAAP, excluding interest expense, net, income tax expense (or benefit), and depreciation and amortization. Adjusted EBITDA is an additional supplemental non-GAAP financial measure of the Company’s operating performance. In particular, Adjusted EBITDA provides an additional measure to compare the operating performance of different REITs without having to account for certain remaining amortization assumptions within EBITDA, certain gains or losses remaining within EBITDA, and other unique revenue and expense items which some may consider not pertinent to measuring a particular company's ongoing operating performance.
NET DEBT-TO-ADJUSTED EBITDA
Net Debt-to-Adjusted EBITDA is Net Debt divided by trailing twelve month Adjusted EBITDA.
Condensed Consolidated Balance Sheets
In thousands, except share amounts
As of June 30
As of December 31
2025
2024
Assets
(unaudited)
Investment properties
Land
641,255
712,827
Building and other improvements
2,035,653
2,116,092
Construction in progress
6,466
9,951
Total
2,683,374
2,838,870
Less accumulated depreciation
(483,733
(511,969
Net investment properties
2,199,641
2,326,901
Cash, cash equivalents, and restricted cash
294,039
91,221
Intangible assets, net
139,908
137,420
Accounts and rents receivable
35,159
36,131
Deferred costs and other assets, net
40,737
44,277
Total assets
2,709,484
2,635,950
Liabilities
Debt, net
746,335
740,415
Accounts payable and accrued expenses
44,107
46,418
Distributions payable
18,447
17,512
Intangible liabilities, net
48,314
42,897
Other liabilities
29,995
28,703
Total liabilities
887,198
875,945
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, 77,606,396 shares issued and outstanding as of June 30, 2025 and 77,450,794 shares issued and outstanding as of December 31, 2024
78
77
Additional paid-in capital
5,732,962
5,730,367
Distributions in excess of accumulated net income
(3,919,016
(3,984,865
Accumulated comprehensive income
8,262
14,426
Total stockholders' equity
1,822,286
1,760,005
Total liabilities and stockholders' equity
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
Income
Lease income, net
73,130
67,056
146,519
133,549
Other property income
421
367
803
672
Total income
73,551
67,423
147,322
134,221
Operating expenses
Depreciation and amortization
30,738
28,790
61,352
56,958
Property operating
11,476
10,243
22,223
20,242
Real estate taxes
10,194
9,046
19,550
18,027
8,706
8,661
17,253
16,635
Total operating expenses
61,114
56,740
120,378
111,862
Other (expense) income
Interest expense, net
(8,346
(9,640
(16,668
(19,274
90,909
Other income and expense, net
942
455
1,549
1,313
Total other (expense) income, net
83,505
(9,185
75,790
(17,961
Net income
95,942
1,498
102,734
4,398
Weighted-average common shares outstanding - basic
77,591,538
67,900,275
77,577,831
67,887,402
Weighted-average common shares outstanding - diluted
78,292,422
68,327,263
78,226,681
68,299,657
Net income per common share - basic
1.24
0.02
1.32
0.06
Net income per common share - diluted
1.23
1.31
Comprehensive income
Unrealized (loss) gain on derivatives, net
(43
2,386
(1,629
9,705
Reclassification to net income
(2,293
(3,314
(4,535
(6,631
93,606
570
96,570
7,472
Same Property NOI
The following table presents the components of Same Property NOI:
Minimum base rent
39,777
38,197
78,459
75,381
Real estate tax recoveries
8,177
7,338
15,460
14,463
Common area maintenance, insurance, and other recoveries
7,555
7,120
15,096
13,907
Ground rent income
4,334
4,222
8,606
8,401
Short-term and other lease income
802
592
1,983
1,589
Provision for uncollectible rent and recoveries, net
(103
(173
(32
(115
390
306
704
561
60,932
57,602
120,276
114,187
Operating Expenses
9,416
8,965
18,355
17,750
8,890
7,970
16,860
15,853
18,306
16,935
35,215
33,603
42,626
40,667
85,061
80,584
Net Income to Same Property NOI
The following table presents a reconciliation of Net Income to Same Property NOI:
Adjustments to reconcile to non-GAAP metrics:
(942
(455
(1,549
(1,313
8,346
9,640
16,668
19,274
(90,909
Adjustments to NOI (a)
(1,981
(2,387
(3,780
(4,430
NOI
49,900
45,747
101,769
91,522
NOI from other investment properties
(7,274
(5,080
(16,708
(10,938
(a)
Adjustments to NOI include lease termination income and expense and GAAP Rent Adjustments.
Nareit FFO and Core FFO
The following table presents a reconciliation of Net Income to Nareit FFO Applicable to Common Shares and Dilutive Securities and Core FFO Applicable to Common Shares and Dilutive Securities:
30,451
28,570
60,817
56,516
Nareit FFO Applicable to Common Shares and Dilutive Securities
35,484
30,068
72,642
60,914
Amortization of market lease intangibles and inducements, net
(1,089
(657
(1,984
(1,233
(844
(981
(1,738
(1,887
657
600
1,340
1,175
Accretion of finance lease liability
11
Depreciation and amortization of corporate assets
287
220
535
442
Non-operating income and expense, net (a)
(170
(116
(241
(296
Core FFO Applicable to Common Shares and Dilutive Securities
34,336
29,134
70,565
59,115
Weighted average common shares outstanding - basic
Dilutive effect of unvested restricted shares (b)
700,884
426,988
648,850
412,255
Weighted average common shares outstanding - diluted
0.45
0.44
0.93
0.89
0.43
0.90
0.87
Reflects items which are not pertinent to measuring ongoing operating performance, such as miscellaneous and settlement income.
(b)
For purposes of calculating non-GAAP per share metrics, the Company applies the same denominator used in calculating diluted earnings per share in accordance with GAAP.
EBITDA and Adjusted EBITDA
The following table presents a reconciliation of Net Income to EBITDA and Adjusted EBITDA:
Income tax expense
140
132
276
265
EBITDA
135,166
40,060
181,030
80,895
Adjusted EBITDA
42,154
38,306
86,158
77,479
Net Debt and Net Debt-to-Adjusted EBITDA
The following table presents the calculation of net debt and Net Debt-to-Adjusted EBITDA:
Net Debt:
Outstanding Debt, net
Less: Cash and cash equivalents
(287,134
(87,395
Net Debt
459,201
653,020
Net Debt-to-Adjusted EBITDA (trailing 12 months):
Adjusted EBITDA (trailing 12 months)
166,688
158,009
Net Debt-to-Adjusted EBITDA
2.8x
4.1x
About InvenTrust Properties Corp.
InvenTrust Properties Corp. (the “Company,” "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. Management pursues the Company's business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, and maintaining a flexible capital structure. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. For more information, please visit www.inventrustproperties.com.
The enclosed information should be read in conjunction with the Company's filings with the U.S. Securities and Exchange Commission (“SEC”), including, but not limited to, the Company's Form 10-Qs filed quarterly and Form 10-Ks filed annually. Additionally, the enclosed information does not purport to disclose all items required under GAAP. The information provided in this earnings release is unaudited and includes non-GAAP measures (as discussed herein), and there can be no assurance that the information will not vary from the final information in the Company's Form 10-Q for the quarter ended June 30, 2025. The Company may, but assumes no obligation to, update information in this earnings release.
Forward-Looking Statements Disclaimer
Forward-Looking Statements in this earnings 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. These statements are based on the current beliefs and expectations of InvenTrust's management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Any statements made in this earnings release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include information concerning possible or assumed future results of operations, including our guidance and descriptions of our business plans and strategies. These statements often include words such as "may," "should," “could,” "would," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "target," "project," "predict," "potential," "continue," "likely," "will," "forecast," "outlook," "guidance," "suggest," and variations of these terms and similar expressions, or the negative of these terms or similar expressions.
The following factors, among others, could cause actual results, 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, including the effects of recent new tariffs and changes in global trade policies on the overall state of the economy; 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 management's forward-looking statements and IVT's future results and financial condition, see the Risk Factors included in the Company'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 SEC. 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.
IVT cautions you not to place undue reliance on any forward-looking statements, which are made as of the date of this earnings release. IVT undertakes 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 IVT updates one or more forward-looking statements, no inference should be drawn that IVT 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 X account (x.com/inventrustprop); and the InvenTrust LinkedIn account (linkedin.com/company/inventrustproperties)), as a means of disclosing information about the Company's business to 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.
Dan Lombardo Vice President of Investor Relations 630-570-0605 dan.lombardo@inventrustproperties.com