IVT - InvenTrust Properties Corp. Reports 2022 Second Quarter Results
InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today reported financial and operating results for the period ended June 30, 2022. For the three months ended June 30, 2022 and 2021, Net Income was $41.9 million, or $0.62 per diluted share, compared to Net Income of $1.5 million, or $0.02 per diluted share, respectively.
Second Quarter 2022 Highlights:
- NAREIT FFO for the quarter of $0.45 per diluted share
- Core FFO for the quarter of $0.42 per diluted share
- Pro Rata Same Property Net Operating Income (“NOI”) increased 7.7% for the three month period
- Leased Occupancy as of June 30, 2022 of 95.4%
- Executed 78 leases totaling approximately 289,000 square feet of pro rata GLA, of which 153,000 square feet was executed at a blended comparable lease spread of 15.1%
- Net Debt-to-Adjusted EBITDA of 5.1x at June 30, 2022
- Entered into a note purchase agreement providing for the private placement of $150 million of seven year and $100 million of ten year senior notes with a weighted average fixed rate of 5.12% and weighted average tenor of approximately 8.2 years
- Issued our inaugural 2021 Environmental, Social and Governance (ESG) Report
“InvenTrust continues to execute on its business objectives and produce strong results,” stated Daniel (DJ) Busch, President and CEO of InvenTrust. “Our leasing activity remains solid, and we believe the company is well-positioned, with our simple and focused Sun Belt strategy, to deliver sustainable cash flow growth in any economic environment.”
FINANCIAL SUMMARY
NET INCOME
- Net Income for the three months ended June 30, 2022 was $41.9 million, or $0.62 per diluted share, compared to Net Income of $1.5 million, or $0.02 per diluted share, for the same period in 2021.
- Net Income for the six months ended June 30, 2022 was $51.4 million, or $0.76 per diluted share, compared to Net Income of $1.4 million, or $0.02 per diluted share, for the same period in 2021.
NAREIT FFO
- NAREIT FFO for the three months ended June 30, 2022 was $30.4 million, or $0.45 per diluted share, compared to $25.0 million, or $0.35 per diluted share, for the same period in 2021.
- NAREIT FFO for the six months ended June 30, 2022 was $62.1 million, or $0.92 per diluted share, compared to $47.9 million, or $0.66 per share, for the same period in 2021.
CORE FFO
- Core FFO for the three months ended June 30, 2022 was $28.6 million, or $0.42 per diluted share, compared to $23.9 million, or $0.33 per diluted share, for the same period in 2021.
- Core FFO for the six months ended June 30, 2022 was $57.7 million, or $0.85 per diluted share, compared to $46.0 million, or $0.64 per diluted share, for the same period in 2021.
PRO RATA SAME PROPERTY NOI
- Pro Rata Same Property NOI for the three months ended June 30, 2022 was $37.3 million, a 7.7% increase, compared to the same period in 2021.
- Pro Rata Same Property NOI for the six months ended June 30, 2022 was $74.8 million, a 9.9% increase, compared to the same period in 2021.
DIVIDEND
- On June 30, 2022, the Board of Directors declared a quarterly cash distribution of $0.2052 per share, payable on July 15, 2022.
PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY
- As of June 30, 2022, the Company’s Leased Occupancy was 95.4%.
- Total Anchor Leased Occupancy, which includes spaces greater than or equal to 10,000 square feet, was 98.2% and Small Shop Leased Occupancy was 90.5%. Anchor Leased Occupancy increased by 160 basis points and Small Shop Leased Occupancy remained flat on a sequential basis compared to the previous quarter.
- Leased to Economic Occupancy spread of 220 basis points, which equates to approximately $5.2 million of base rent on an annualized basis.
- Blended re-leasing spreads for comparable new and renewal leases signed in the second quarter were 15.1%.
- Annualized Base Rent PSF (“ABR”) as of June 30, 2022 for the Pro Rata Combined Portfolio was $18.80, an increase of 2.6% compared to the same period in 2021. Anchor Tenant ABR PSF was $12.30 and Small Shop ABR PSF was $31.75 for the second quarter.
- On April 21, 2022, the Company acquired a property located in Flower Mound, Texas for $38.0 million, totaling approximately 175,000 square feet, and assumed $22.9 million of existing mortgage debt to partially finance the acquisition. The Company purchased this property from its joint venture.
- On May 4, 2022, the Company acquired a property located in Bonita Springs, Florida for $10.4 million, totaling approximately 63,000 square feet.
- On June 30, 2022, the Company disposed of two Colorado properties for $55.5 million and recognized a total gain on sale of $36.9 million.
LIQUIDITY AND CAPITAL STRUCTURE
- InvenTrust had $310.4 million of total liquidity, as of June 30, 2022 comprised of $103.4 million of Pro Rata Cash and $207.0 million of availability under its Revolving Credit Facility.
- The Company has no debt maturing in 2022 and $38.8 million of debt maturing in 2023.
- The Company entered into a note purchase agreement providing for the private placement of $150 million of seven year and $100 million of ten year senior notes with a weighted average fixed rate of 5.12% and weighted average tenor of approximately 8.2 years.
- The Company's weighted average interest rate on its consolidated debt as of June 30, 2022 was 3.05% and the weighted average remaining term was 4.0 years.
2022 GUIDANCE
InvenTrust has updated its 2022 guidance, as summarized in the table below.
| (Unaudited, dollars in thousands, except per share amounts) |
| Current |
|
|
| Previous |
| Net Income per diluted share (1) |
| $0.74 |
| — |
| $0.78 |
|
|
| $0.18 |
| — |
| $0.24 |
| NAREIT FFO per diluted share (2) |
| $1.61 |
| — |
| $1.65 |
|
|
| $1.58 |
| — |
| $1.64 |
| Core FFO per diluted share |
| $1.52 |
| — |
| $1.56 |
|
|
| $1.51 |
| — |
| $1.56 |
| Same Property NOI (“SPNOI”) Growth |
| 4.00% |
| — |
| 5.00% |
|
|
| 3.75% |
| — |
| 5.25% |
| General and administrative (3) |
| $32,750 |
| — |
| $33,750 |
|
|
| $33,500 |
| — |
| $34,500 |
| Interest expense, net |
| $24,500 |
| — |
| $25,500 |
|
|
| $25,500 |
| — |
| $26,500 |
| Net investment activity (4) |
| ~$210,000 |
|
|
| ~$210,000 |
| (1) |
| Net Income per diluted share excludes potential gains and losses on asset sales, and any related GAAP adjustments resulting from these transactions. |
| (2) |
| 2022 NAREIT FFO per diluted share Guidance: |
|
| (3) |
| General and administrative guidance is inclusive of expenses associated with our oversight of the joint venture. |
| (4) |
| Net investment activity represents anticipated acquisition activity less disposal activity for 2022. |
Net Income, NAREIT FFO, Core FFO and SPNOI guidance are inclusive of prior period rent that we anticipate collecting in 2022.
The Company's 2022 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: |
| August 2, 2022 |
| Time: |
| 9:00 a.m. ET |
| Dial-in: |
| (888) 396-8049 / Conference ID: 54356319 |
| Webcast: |
|
|
|
|
| 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, above/below market lease amortization and amortization of lease incentives).
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, transaction expenses, 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 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 and lease count.
FINANCIAL STATEMENTS
| Condensed Consolidated Balance Sheets Dollars in thousands, except share amounts |
|
|
| As of June 30, |
|
|
| As of December 31, |
|
|
| 2022 |
|
|
| 2021 |
| Assets |
| (unaudited) |
|
|
|
|
| Investment properties |
|
|
|
|
|
|
| Land |
| $ |
| 649,634 |
|
|
|
|
| $ |
| 598,936 |
|
|
| Building and other improvements |
|
|
| 1,804,485 |
|
|
|
|
|
|
| 1,664,525 |
|
|
| Construction in progress |
|
|
| 16,857 |
|
|
|
|
|
|
| 9,642 |
|
|
| Total |
|
|
| 2,470,976 |
|
|
|
|
|
|
| 2,273,103 |
|
|
| Less accumulated depreciation |
|
|
| (369,291 |
| ) |
|
|
|
|
| (350,256 |
| ) |
| Net investment properties |
|
|
| 2,101,685 |
|
|
|
|
|
|
| 1,922,847 |
|
|
| Cash, cash equivalents and restricted cash |
|
|
| 95,893 |
|
|
|
|
|
|
| 44,854 |
|
|
| Investment in unconsolidated entities |
|
|
| 57,550 |
|
|
|
|
|
|
| 107,944 |
|
|
| Intangible assets, net |
|
|
| 98,501 |
|
|
|
|
|
|
| 81,026 |
|
|
| Accounts and rents receivable |
|
|
| 27,979 |
|
|
|
|
|
|
| 30,059 |
|
|
| Deferred costs and other assets, net |
|
|
| 46,105 |
|
|
|
|
|
|
| 25,685 |
|
|
| Total assets |
| $ |
| 2,427,713 |
|
|
|
|
| $ |
| 2,212,415 |
|
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
| Debt, net |
| $ |
| 702,802 |
|
|
|
|
| $ |
| 533,082 |
|
|
| Accounts payable and accrued expenses |
|
|
| 35,952 |
|
|
|
|
|
|
| 36,208 |
|
|
| Distributions payable |
|
|
| 13,836 |
|
|
|
|
|
|
| 13,802 |
|
|
| Intangible liabilities, net |
|
|
| 31,712 |
|
|
|
|
|
|
| 28,995 |
|
|
| Other liabilities |
|
|
| 23,922 |
|
|
|
|
|
|
| 28,776 |
|
|
| Total liabilities |
|
|
| 808,224 |
|
|
|
|
|
|
| 640,863 |
|
|
| 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, 67,427,571 shares issued and outstanding as of June 30, 2022 and 67,344,374 shares issued and outstanding as of December 31, 2021 |
|
|
| 67 |
|
|
|
|
|
|
| 67 |
|
|
| Additional paid-in capital |
|
|
| 5,454,292 |
|
|
|
|
|
|
| 5,452,550 |
|
|
| Distributions in excess of accumulated net income |
|
|
| (3,852,985 |
| ) |
|
|
|
|
| (3,876,743 |
| ) |
| Accumulated comprehensive income (loss) |
|
|
| 18,115 |
|
|
|
|
|
|
| (4,322 |
| ) |
| Total stockholders' equity |
|
|
| 1,619,489 |
|
|
|
|
|
|
| 1,571,552 |
|
|
| Total liabilities and stockholders' equity |
| $ |
| 2,427,713 |
|
|
|
|
| $ |
| 2,212,415 |
|
|
| Condensed Consolidated Statements of Operations and Comprehensive Income Dollars in thousands, except share and per share amounts, unaudited |
|
|
| Three Months Ended June 30 |
|
|
| Six Months Ended June 30 |
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
| Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lease income, net |
| $ |
| 58,935 |
|
|
|
|
| $ |
| 50,978 |
|
|
|
|
| $ |
| 116,703 |
|
|
|
|
| $ |
| 100,904 |
|
|
| Other property income |
|
|
| 318 |
|
|
|
|
|
|
| 268 |
|
|
|
|
|
|
| 582 |
|
|
|
|
|
|
| 450 |
|
|
| Other fee income |
|
|
| 640 |
|
|
|
|
|
|
| 894 |
|
|
|
|
|
|
| 1,394 |
|
|
|
|
|
|
| 1,907 |
|
|
| Total income |
|
|
| 59,893 |
|
|
|
|
|
|
| 52,140 |
|
|
|
|
|
|
| 118,679 |
|
|
|
|
|
|
| 103,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
| 24,205 |
|
|
|
|
|
|
| 21,995 |
|
|
|
|
|
|
| 47,034 |
|
|
|
|
|
|
| 43,682 |
|
|
| Property operating |
|
|
| 9,184 |
|
|
|
|
|
|
| 7,774 |
|
|
|
|
|
|
| 17,469 |
|
|
|
|
|
|
| 15,783 |
|
|
| Real estate taxes |
|
|
| 8,615 |
|
|
|
|
|
|
| 8,158 |
|
|
|
|
|
|
| 16,658 |
|
|
|
|
|
|
| 16,291 |
|
|
| General and administrative |
|
|
| 8,116 |
|
|
|
|
|
|
| 9,910 |
|
|
|
|
|
|
| 16,003 |
|
|
|
|
|
|
| 20,261 |
|
|
| Total operating expenses |
|
|
| 50,120 |
|
|
|
|
|
|
| 47,837 |
|
|
|
|
|
|
| 97,164 |
|
|
|
|
|
|
| 96,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
| (5,631 |
| ) |
|
|
|
|
| (3,972 |
| ) |
|
|
|
|
| (10,440 |
| ) |
|
|
|
|
| (7,957 |
| ) |
| Loss on extinguishment of debt |
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| (96 |
| ) |
|
|
|
|
| — |
|
|
| Gain on sale of investment properties, net |
|
|
| 36,856 |
|
|
|
|
|
|
| 361 |
|
|
|
|
|
|
| 36,856 |
|
|
|
|
|
|
| 880 |
|
|
| Equity in earnings of unconsolidated entities |
|
|
| 716 |
|
|
|
|
|
|
| 775 |
|
|
|
|
|
|
| 3,432 |
|
|
|
|
|
|
| 1,395 |
|
|
| Other income and expense, net |
|
|
| 207 |
|
|
|
|
|
|
| 32 |
|
|
|
|
|
|
| 155 |
|
|
|
|
|
|
| (163 |
| ) |
| Total other income (expense), net |
|
|
| 32,148 |
|
|
|
|
|
|
| (2,804 |
| ) |
|
|
|
|
| 29,907 |
|
|
|
|
|
|
| (5,845 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
| $ |
| 41,921 |
|
|
|
|
| $ |
| 1,499 |
|
|
|
|
| $ |
| 51,422 |
|
|
|
|
| $ |
| 1,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average common shares outstanding, basic |
|
|
| 67,413,049 |
|
|
|
|
|
|
| 71,943,542 |
|
|
|
|
|
|
| 67,384,044 |
|
|
|
|
|
|
| 71,970,945 |
|
|
| Weighted-average common shares outstanding, diluted |
|
|
| 67,550,846 |
|
|
|
|
|
|
| 72,036,346 |
|
|
|
|
|
|
| 67,577,524 |
|
|
|
|
|
|
| 72,024,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per common share, basic and diluted |
| $ |
| 0.62 |
|
|
|
|
| $ |
| 0.02 |
|
|
|
|
| $ |
| 0.76 |
|
|
|
|
| $ |
| 0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributions declared per common share outstanding |
| $ |
| 0.21 |
|
|
|
|
| $ |
| 0.19 |
|
|
|
|
| $ |
| 0.41 |
|
|
|
|
| $ |
| 0.39 |
|
|
| Distributions paid per common share outstanding |
| $ |
| 0.21 |
|
|
|
|
| $ |
| 0.20 |
|
|
|
|
| $ |
| 0.41 |
|
|
|
|
| $ |
| 0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
| $ |
| 41,921 |
|
|
|
|
| $ |
| 1,499 |
|
|
|
|
| $ |
| 51,422 |
|
|
|
|
| $ |
| 1,399 |
|
|
| Unrealized gain (loss) on derivatives |
|
|
| 5,514 |
|
|
|
|
|
|
| (138 |
| ) |
|
|
|
|
| 20,920 |
|
|
|
|
|
|
| 1,755 |
|
|
| Reclassification to net income |
|
|
| 492 |
|
|
|
|
|
|
| 1,078 |
|
|
|
|
|
|
| 1,517 |
|
|
|
|
|
|
| 2,126 |
|
|
| Comprehensive income |
| $ |
| 47,927 |
|
|
|
|
| $ |
| 2,439 |
|
|
|
|
| $ |
| 73,859 |
|
|
|
|
| $ |
| 5,280 |
|
|
| Pro Rata Same Property NOI |
| Dollars in thousands |
|
|
| The following table reflects Pro Rata Same Property NOI: |
|
|
| Three Months Ended June 30 |
|
|
| Six Months Ended June 30 |
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
| Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Minimum base rent |
| $ |
| 32,514 |
|
|
|
|
| $ |
| 30,703 |
|
|
|
|
| $ |
| 64,600 |
|
|
|
|
| $ |
| 60,687 |
|
|
| Real estate tax recoveries |
|
|
| 6,646 |
|
|
|
|
|
|
| 7,058 |
|
|
|
|
|
|
| 13,093 |
|
|
|
|
|
|
| 13,832 |
|
|
| Common area maintenance, insurance, and other recoveries |
|
|
| 6,100 |
|
|
|
|
|
|
| 5,646 |
|
|
|
|
|
|
| 11,956 |
|
|
|
|
|
|
| 11,385 |
|
|
| Ground rent income |
|
|
| 3,349 |
|
|
|
|
|
|
| 3,242 |
|
|
|
|
|
|
| 6,677 |
|
|
|
|
|
|
| 6,483 |
|
|
| Short-term and other lease income |
|
|
| 1,105 |
|
|
|
|
|
|
| 691 |
|
|
|
|
|
|
| 2,162 |
|
|
|
|
|
|
| 1,637 |
|
|
| Provision for uncollectible billed rent and recoveries |
|
|
| (124 |
| ) |
|
|
|
|
| (603 |
| ) |
|
|
|
|
| (359 |
| ) |
|
|
|
|
| (687 |
| ) |
| Reversal of uncollectible billed rent and recoveries |
|
|
| 258 |
|
|
|
|
|
|
| 841 |
|
|
|
|
|
|
| 1,108 |
|
|
|
|
|
|
| 841 |
|
|
| Other property income |
|
|
| 306 |
|
|
|
|
|
|
| 269 |
|
|
|
|
|
|
| 573 |
|
|
|
|
|
|
| 454 |
|
|
| Total income |
|
|
| 50,154 |
|
|
|
|
|
|
| 47,847 |
|
|
|
|
|
|
| 99,810 |
|
|
|
|
|
|
| 94,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property operating |
|
|
| 8,089 |
|
|
|
|
|
|
| 7,630 |
|
|
|
|
|
|
| 15,727 |
|
|
|
|
|
|
| 15,431 |
|
|
| Real estate taxes |
|
|
| 7,430 |
|
|
|
|
|
|
| 7,937 |
|
|
|
|
|
|
| 14,589 |
|
|
|
|
|
|
| 15,846 |
|
|
| Total operating expenses |
|
|
| 15,519 |
|
|
|
|
|
|
| 15,567 |
|
|
|
|
|
|
| 30,316 |
|
|
|
|
|
|
| 31,277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Same Property NOI |
|
|
| 34,635 |
|
|
|
|
|
|
| 32,280 |
|
|
|
|
|
|
| 69,494 |
|
|
|
|
|
|
| 63,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| JV Same Property NOI |
|
|
| 2,682 |
|
|
|
|
|
|
| 2,382 |
|
|
|
|
|
|
| 5,292 |
|
|
|
|
|
|
| 4,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pro Rata Same Property NOI |
| $ |
| 37,317 |
|
|
|
|
| $ |
| 34,662 |
|
|
|
|
| $ |
| 74,786 |
|
|
|
|
| $ |
| 68,060 |
|
|
| Reconciliation of Net Income to Pro Rata Same Property NOI The following table is a reconciliation of Net Income to Pro Rata Same Property NOI: |
|
|
| Three Months Ended June 30 |
|
|
| Six Months Ended June 30 |
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
| Net income |
| $ |
| 41,921 |
|
|
|
|
| $ |
| 1,499 |
|
|
|
|
| $ |
| 51,422 |
|
|
|
|
| $ |
| 1,399 |
|
|
| Adjustments to reconcile to non-GAAP metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income and expense, net |
|
|
| (207 |
| ) |
|
|
|
|
| (32 |
| ) |
|
|
|
|
| (155 |
| ) |
|
|
|
|
| 163 |
|
|
| Equity in earnings of unconsolidated entities |
|
|
| (716 |
| ) |
|
|
|
|
| (775 |
| ) |
|
|
|
|
| (3,432 |
| ) |
|
|
|
|
| (1,395 |
| ) |
| Interest expense, net |
|
|
| 5,631 |
|
|
|
|
|
|
| 3,972 |
|
|
|
|
|
|
| 10,440 |
|
|
|
|
|
|
| 7,957 |
|
|
| Loss on extinguishment of debt |
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 96 |
|
|
|
|
|
|
| — |
|
|
| Gain on sale of investment properties, net |
|
|
| (36,856 |
| ) |
|
|
|
|
| (361 |
| ) |
|
|
|
|
| (36,856 |
| ) |
|
|
|
|
| (880 |
| ) |
| Depreciation and amortization |
|
|
| 24,205 |
|
|
|
|
|
|
| 21,995 |
|
|
|
|
|
|
| 47,034 |
|
|
|
|
|
|
| 43,682 |
|
|
| General and administrative |
|
|
| 8,116 |
|
|
|
|
|
|
| 9,910 |
|
|
|
|
|
|
| 16,003 |
|
|
|
|
|
|
| 20,261 |
|
|
| Other fee income |
|
|
| (640 |
| ) |
|
|
|
|
| (894 |
| ) |
|
|
|
|
| (1,394 |
| ) |
|
|
|
|
| (1,907 |
| ) |
| Adjustments to NOI (a) |
|
|
| (2,422 |
| ) |
|
|
|
|
| (1,968 |
| ) |
|
|
|
|
| (6,294 |
| ) |
|
|
|
|
| (3,849 |
| ) |
| NOI |
|
|
| 39,032 |
|
|
|
|
|
|
| 33,346 |
|
|
|
|
|
|
| 76,864 |
|
|
|
|
|
|
| 65,431 |
|
|
| NOI from other investment properties |
|
|
| (4,397 |
| ) |
|
|
|
|
| (1,066 |
| ) |
|
|
|
|
| (7,370 |
| ) |
|
|
|
|
| (2,076 |
| ) |
| Same Property NOI |
|
|
| 34,635 |
|
|
|
|
|
|
| 32,280 |
|
|
|
|
|
|
| 69,494 |
|
|
|
|
|
|
| 63,355 |
|
|
| IAGM Same Property NOI at share |
|
|
| 2,682 |
|
|
|
|
|
|
| 2,382 |
|
|
|
|
|
|
| 5,292 |
|
|
|
|
|
|
| 4,705 |
|
|
| Pro Rata Same Property NOI |
| $ |
| 37,317 |
|
|
|
|
| $ |
| 34,662 |
|
|
|
|
| $ |
| 74,786 |
|
|
|
|
| $ |
| 68,060 |
|
|
| (a) |
| Adjustments to NOI include termination fee income and expense and GAAP rent adjustments. |
| NAREIT FFO and Core FFO |
| Dollars in thousands, except share and per share amounts |
|
|
| The following table presents the Company’s calculation of 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 |
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
| Net income |
| $ |
| 41,921 |
|
|
|
|
| $ |
| 1,499 |
|
|
|
|
| $ |
| 51,422 |
|
|
|
|
| $ |
| 1,399 |
|
|
| Depreciation and amortization related to investment properties |
|
|
| 23,996 |
|
|
|
|
|
|
| 21,774 |
|
|
|
|
|
|
| 46,618 |
|
|
|
|
|
|
| 43,221 |
|
|
| Gain on sale of investment properties, net |
|
|
| (36,856 |
| ) |
|
|
|
|
| (361 |
| ) |
|
|
|
|
| (36,856 |
| ) |
|
|
|
|
| (880 |
| ) |
| Unconsolidated joint venture adjustments (a) |
|
|
| 1,385 |
|
|
|
|
|
|
| 2,086 |
|
|
|
|
|
|
| 920 |
|
|
|
|
|
|
| 4,156 |
|
|
| NAREIT FFO Applicable to Common Shares and Dilutive Securities |
|
|
| 30,446 |
|
|
|
|
|
|
| 24,998 |
|
|
|
|
|
|
| 62,104 |
|
|
|
|
|
|
| 47,896 |
|
|
| Amortization of above and below-market leases and lease inducements, net |
|
|
| (1,062 |
| ) |
|
|
|
|
| (1,143 |
| ) |
|
|
|
|
| (3,609 |
| ) |
|
|
|
|
| (2,385 |
| ) |
| Straight-line rent adjustments, net |
|
|
| (1,211 |
| ) |
|
|
|
|
| (653 |
| ) |
|
|
|
|
| (2,368 |
| ) |
|
|
|
|
| (1,170 |
| ) |
| Adjusting items, net (b) |
|
|
| 524 |
|
|
|
|
|
|
| 539 |
|
|
|
|
|
|
| 1,397 |
|
|
|
|
|
|
| 1,358 |
|
|
| Unconsolidated joint venture adjusting items, net (c) |
|
|
| (66 |
| ) |
|
|
|
|
| 146 |
|
|
|
|
|
|
| 128 |
|
|
|
|
|
|
| 306 |
|
|
| Core FFO Applicable to Common Shares and Dilutive Securities |
| $ |
| 28,631 |
|
|
|
|
| $ |
| 23,887 |
|
|
|
|
| $ |
| 57,652 |
|
|
|
|
| $ |
| 46,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares outstanding - basic |
|
|
| 67,413,049 |
|
|
|
|
|
|
| 71,943,542 |
|
|
|
|
|
|
| 67,384,044 |
|
|
|
|
|
|
| 71,970,945 |
|
|
| Dilutive effect of unvested restricted shares (d) |
|
|
| 137,797 |
|
|
|
|
|
|
| 92,804 |
|
|
|
|
|
|
| 193,480 |
|
|
|
|
|
|
| 53,528 |
|
|
| Weighted average common shares outstanding - diluted |
|
|
| 67,550,846 |
|
|
|
|
|
|
| 72,036,346 |
|
|
|
|
|
|
| 67,577,524 |
|
|
|
|
|
|
| 72,024,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NAREIT FFO Applicable to Common Shares and Dilutive Securities per share |
| $ |
| 0.45 |
|
|
|
|
| $ |
| 0.35 |
|
|
|
|
| $ |
| 0.92 |
|
|
|
|
| $ |
| 0.66 |
|
|
| Core FFO Applicable to Common Shares and Dilutive Securities per share |
| $ |
| 0.42 |
|
|
|
|
| $ |
| 0.33 |
|
|
|
|
| $ |
| 0.85 |
|
|
|
|
| $ |
| 0.64 |
|
|
| (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 miscellaneous and settlement income. |
| (c) |
| Represents our share of amortization of above and below-market leases and lease 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. |
| EBITDA, Pro Rata |
| Dollars in thousands |
|
|
| The following table presents the Company’s calculation of EBITDA and Adjusted EBITDA: |
|
|
| Three Months Ended June 30 |
|
|
| Six Months Ended June 30 |
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
| Net income |
| $ |
| 41,921 |
|
|
|
|
| $ |
| 1,499 |
|
|
|
|
| $ |
| 51,422 |
|
|
|
|
| $ |
| 1,399 |
|
|
| Interest expense (a) |
|
|
| 6,125 |
|
|
|
|
|
|
| 4,780 |
|
|
|
|
|
|
| 11,572 |
|
|
|
|
|
|
| 9,695 |
|
|
| Income tax expense (a) |
|
|
| 109 |
|
|
|
|
|
|
| 102 |
|
|
|
|
|
|
| 215 |
|
|
|
|
|
|
| 201 |
|
|
| Depreciation and amortization (a) |
|
|
| 25,590 |
|
|
|
|
|
|
| 24,081 |
|
|
|
|
|
|
| 50,017 |
|
|
|
|
|
|
| 47,838 |
|
|
| EBITDA |
|
|
| 73,745 |
|
|
|
|
|
|
| 30,462 |
|
|
|
|
|
|
| 113,226 |
|
|
|
|
|
|
| 59,133 |
|
|
| Adjustments to reconcile to Adjusted EBITDA (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on sale of investment properties, net |
|
|
| (36,856 |
| ) |
|
|
|
|
| (361 |
| ) |
|
|
|
|
| (38,919 |
| ) |
|
|
|
|
| (880 |
| ) |
| Loss on debt extinguishment |
|
|
| 50 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 207 |
|
|
|
|
|
|
| 8 |
|
|
| Non-operating income and expense, net (b) |
|
|
| (550 |
| ) |
|
|
|
|
| (71 |
| ) |
|
|
|
|
| (620 |
| ) |
|
|
|
|
| 125 |
|
|
| Other leasing adjustments (c) |
|
|
| (2,252 |
| ) |
|
|
|
|
| (1,716 |
| ) |
|
|
|
|
| (5,902 |
| ) |
|
|
|
|
| (3,386 |
| ) |
| Adjusted EBITDA |
| $ |
| 34,137 |
|
|
|
|
| $ |
| 28,314 |
|
|
|
|
| $ |
| 67,992 |
|
|
|
|
| $ |
| 55,000 |
|
|
| (a) |
| Includes our consolidated entities and our pro-rata share of our JV. |
| (b) |
| Non-operating income and expense, net, includes other items which are not pertinent to measuring ongoing operating performance, such as miscellaneous and settlement income. |
| (c) |
| Other leasing adjustments includes amortization of above and below market leases and straight-line rent adjustments. |
| 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 |
|
|
| 2022 |
|
|
| 2021 |
| Pro Rata Net Debt: |
|
|
|
|
|
|
| Pro Rata Outstanding Debt, net |
| $ |
| 771,852 |
|
|
|
|
| $ |
| 624,289 |
|
|
| Less: Pro Rata Cash |
|
|
| (103,377 |
| ) |
|
|
|
|
| (79,628 |
| ) |
| Pro Rata Net Debt |
| $ |
| 668,475 |
|
|
|
|
| $ |
| 544,661 |
|
|
|
|
|
|
|
|
|
|
| Pro Rata Net Debt-to-Adjusted EBITDA (trailing 12 months): |
|
|
|
|
|
|
| Pro Rata Net Debt |
| $ |
| 668,475 |
|
|
|
|
| $ |
| 544,661 |
|
|
| Adjusted EBITDA (trailing 12 months) |
|
|
| 130,265 |
|
|
|
|
|
|
| 117,273 |
|
|
| Net Debt-to-Adjusted EBITDA |
| 5.1x |
|
|
| 4.6x |
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. As of June 30, 2022, the Company is an owner and manager of 62 retail properties, representing 10.5 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, 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 timing of the senior notes issuance, or regarding management’s intentions, beliefs, expectations, representation, 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: 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.
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Dan Lombardo
Vice President of Investor Relations
630-570-0605
dan.lombardo@inventrustproperties.com