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 fourth quarter and full year ended December 31, 2024 and provided initial guidance for 2025. For the three months ended December 31, 2024 and 2023, the Company reported Net Income of $9.8 million, or $0.13 per diluted share, compared to Net Income of $2.9 million, or $0.04 per diluted share, respectively. For the years ended December 31, 2024 and 2023, the Company reported Net Income of $13.7 million, or $0.19 per diluted share, compared to Net Income of $5.3 million, or $0.08 per diluted share, respectively.
Fourth Quarter and Full Year 2024 Highlights:
”InvenTrust's strong fourth-quarter and full-year performance reflects our continued focus on operational excellence and strategic growth," said DJ Busch, President and CEO of InvenTrust. "Our impressive Same Property NOI growth, all-time high leased occupancy, and solid leasing spreads underscore the quality of our portfolio and our ability to drive long-term value. We believe our disciplined acquisition approach in key Sun Belt markets positions us for sustained success in 2025 and beyond. Additionally, the Board’s decision to increase our dividend by 5% for 2025 demonstrates confidence in our strategy and commitment to shareholder returns. We look forward to building on this momentum in the years ahead.”
NET INCOME
NAREIT FFO
CORE FFO
SAME PROPERTY NOI
DIVIDEND
PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY
LIQUIDITY AND CAPITAL STRUCTURE
FULL YEAR 2025 OUTLOOK AND INITIAL GUIDANCE
The Company has provided initial 2025 guidance, as summarized in the table below.
(Unaudited, dollars in thousands, except per share amounts)
Initial 2025 Guidance(1)(2)
2024 Actual
Net Income per diluted share
$0.27
—
$0.33
$0.19
Nareit FFO per diluted share
$1.83
$1.89
$1.78
Core FFO per diluted share(3)
$1.79
$1.73
Same Property NOI (“SPNOI”) Growth
3.50 %
4.50%
5.0%
General and administrative
$34,250
$35,750
$33,172
Interest expense, net(4)
$31,000
$31,500
$34,697
Net investment activity(5)
~ $100,000
$213,518
(1)
The Company’s initial 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.
(2)
The Company’s initial 2025 guidance includes an expectation of uncollectibility, reflected as 75-100 basis points of expected total revenue.
(3)
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.
(4)
Interest expense, net, excludes amortization of debt discounts and financing costs, and expected interest income of approximately $2.4 million.
(5)
Net investment activity represents anticipated acquisition activity less disposition activity.
In addition to the foregoing, the Company's initial 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
$
0.27
0.33
Depreciation and amortization of real estate assets
1.56
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 press 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.
CONFERENCE CALL INFORMATION
Date:
Wednesday, February 12, 2025
Time:
10:00 a.m. ET
Dial-in:
(833) 470-1428 / Access Code: 625026
Webcast & Replay Link:
https://events.q4inc.com/attendee/413285106
Webcast Archive:
https://www.inventrustproperties.com/investor-relations/
A webcast replay will be available shortly after the conclusion of the earnings call using the webcast link above.
NON-GAAP FINANCIAL MEASURES
This Press 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, equity in earnings (losses) from unconsolidated entities, 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 on-going operating performance. Adjustments for the Company’s unconsolidated joint venture reflect the Company’s proportionate share of the joint venture's Nareit FFO and Core FFO on the same basis.
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 on-going operating performance. Adjustments for the Company’s unconsolidated joint venture reflect the Company’s proportionate share of the joint venture's EBITDA and Adjusted EBITDA on the same basis.
NET DEBT-TO-ADJUSTED EBITDA
Net Debt-to-Adjusted EBITDA is Net Debt divided by trailing twelve month Adjusted EBITDA.
FORMER JOINT VENTURE
On January 18, 2023, the Company acquired the four remaining retail properties from its unconsolidated joint venture, IAGM Retail Fund I, LLC (“IAGM”), a joint venture partnership between the Company and PGGM Private Real Estate Fund (“PGGM”), in which it held a 55% ownership share. In connection with the foregoing, IAGM adopted a liquidation plan on January 11, 2023. On December 15, 2023, IAGM was fully liquidated.
Financial Statements
Consolidated Balance Sheets
In thousands, except share amounts
As of December 31
2024
2023
Assets
(unaudited)
Investment properties
Land
712,827
694,668
Building and other improvements
2,116,092
1,956,117
Construction in progress
9,951
5,889
Total
2,838,870
2,656,674
Less accumulated depreciation
(511,969
(461,352
Net investment properties
2,326,901
2,195,322
Cash, cash equivalents and restricted cash
91,221
99,763
Intangible assets, net
137,420
114,485
Accounts and rents receivable
36,131
35,353
Deferred costs and other assets, net
44,277
42,408
Total assets
2,635,950
2,487,331
Liabilities
Debt, net
740,415
814,568
Accounts payable and accrued expenses
46,418
44,583
Distributions payable
17,512
14,594
Intangible liabilities, net
42,897
30,344
Other liabilities
28,703
29,198
Total liabilities
875,945
933,287
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,
77,450,794 shares issued and outstanding as of December 31, 2024 and
67,807,831 shares issued and outstanding as of December 31, 2023
77
68
Additional paid-in capital
5,730,367
5,468,728
Distributions in excess of accumulated net income
(3,984,865
(3,932,826
Accumulated comprehensive income
14,426
18,074
Total stockholders' equity
1,760,005
1,554,044
Total liabilities and stockholders' equity
Consolidated Statements of Operations and Comprehensive Income (Loss)
In thousands, except share and per share amounts, unaudited
Three Months Ended December 31
Year Ended December 31
Income
Lease income, net
70,759
64,332
272,440
257,146
Other property income
473
390
1,534
1,450
Other fee income
80
Total income
71,232
64,722
273,974
258,676
Operating expenses
Depreciation and amortization
28,856
28,091
113,948
113,430
Property operating
12,376
11,776
43,413
42,832
Real estate taxes
9,209
7,448
36,441
34,809
8,404
8,408
33,172
31,797
Total operating expenses
58,845
55,723
226,974
222,868
Other (expense) income
Interest expense, net
(8,356
(9,697
(37,100
(38,138
Loss on extinguishment of debt
(15
Impairment of real estate assets
(3,854
Gain on sale of investment properties, net
3,523
3,857
2,691
Equity in losses of unconsolidated entities
(110
(557
Other income and expense, net
2,245
3,713
3,755
5,480
Total other (expense) income, net
(2,588
(6,109
(33,342
(30,539
Net income
9,799
2,890
13,658
5,269
Weighted-average common shares outstanding, basic
77,222,248
67,563,908
70,394,448
67,531,898
Weighted-average common shares outstanding, diluted
78,014,472
68,090,912
71,010,568
67,813,180
Net income per common share - basic
0.13
0.19
0.08
Net income per common share - diluted
Comprehensive income (loss)
Unrealized gain (loss) on derivatives
6,459
(7,268
9,019
6,228
Reclassification to net income
(2,721
(3,786
(12,667
(14,875
13,537
(8,164
10,010
(3,378
Reconciliation of Non-GAAP Measures
In thousands
Same Property NOI
Minimum base rent
42,591
40,817
152,502
148,304
Real estate tax recoveries
8,223
6,615
29,463
28,184
Common area maintenance, insurance, and other recoveries
8,098
8,245
28,788
27,799
Ground rent income
4,563
4,520
14,674
14,760
Short-term and other lease income
1,845
1,799
4,496
4,323
Provision for uncollectible billed rent and recoveries
(234
(704
(266
(1,046
440
381
1,305
1,241
65,526
61,673
230,962
223,565
Operating Expenses
10,831
11,718
36,426
37,736
8,817
7,138
31,981
30,981
19,648
18,856
68,407
68,717
45,878
42,817
162,555
154,848
Net Income to Same Property NOI
Adjustments to reconcile to non-GAAP metrics:
(2,245
(3,713
(3,755
(5,480
110
557
8,356
9,697
37,100
38,138
15
(3,523
(3,857
(2,691
3,854
(80
Adjustments to NOI (a)
(1,492
(1,500
(7,548
(7,528
NOI
48,155
43,998
186,572
173,427
NOI from other investment properties
(2,277
(1,181
(24,017
(18,579
(a) Adjustments to NOI include lease termination income and expense and GAAP Rent Adjustments.
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:
28,616
27,864
113,055
112,578
Unconsolidated joint venture adjustments (a)
342
Nareit FFO Applicable to Common Shares and Dilutive Securities
34,892
30,754
126,710
115,498
Amortization of market lease intangibles and inducements, net
(740
(626
(2,804
(3,343
(748
(857
(3,400
(3,349
661
827
2,403
4,113
Depreciation and amortization of corporate assets
240
227
893
852
Non-operating income and expense, net (b)
(758
(2,612
(1,033
(1,821
Unconsolidated joint venture adjusting items, net (c)
(92
Core FFO Applicable to Common Shares and Dilutive Securities
33,547
27,793
122,769
111,858
Weighted average common shares outstanding - basic
Dilutive effect of unvested restricted shares (d)
792,224
527,004
616,120
281,282
Weighted average common shares outstanding - diluted
0.45
1.78
1.70
0.43
0.41
1.73
1.65
(a)
Reflects the Company’s share of adjustments for IAGM's Nareit FFO on the same basis as InvenTrust.
(b)
Reflects items which are not pertinent to measuring on-going operating performance, such as miscellaneous and settlement income, and basis difference recognition arising from acquiring the four remaining properties of IAGM in 2023.
(c)
Reflects the Company’s share of adjustments for IAGM's Core FFO on the same basis as InvenTrust.
(d)
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.
Reconciliation of Non-GAAP Measures, continued
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:
Income tax expense
140
129
543
517
417
EBITDA
47,151
40,807
165,249
157,771
(108
Adjusted EBITDA
41,382
36,792
158,009
146,459
Reflects the Company's share of adjustments for IAGM's EBITDA on the same basis as InvenTrust.
Reflects the Company's share of adjustments for IAGM's Adjusted EBITDA on the same basis as InvenTrust.
Financial Leverage Ratios
Dollars in thousands
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
(87,395
(96,385
Net Debt
653,020
718,183
Net Debt-to-Adjusted EBITDA (trailing 12 months):
Net Debt-to-Adjusted EBITDA
4.1x
4.9x
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 press 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-K for the year-ended December 31, 2024. IVT may, but assumes no obligation to, update information in this press release.
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. 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 press 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; 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 press 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 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