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InvenTrust Properties Corp. Reports 2022 Fourth Quarter and Full Year Results

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, 2022 and provided guidance for 2023. For the three months ended December 31, 2022 and 2021, the Company reported a Net Loss of $0.1 million, or $0.00 per diluted share, and a Net Loss of $10.8 million, or $0.16 per diluted share, respectively. For the twelve months ended December 31, 2022 and 2021, the Company reported Net Income of $52.2 million, or $0.77 per diluted share, and a Net Loss of $5.4 million, or $0.08 per diluted share, respectively.

Fourth Quarter and Full Year 2022 Highlights:

  • NAREIT FFO for the fourth quarter of $0.35 per diluted share, and $1.66 per diluted share for the full year
  • Core FFO for the fourth quarter of $0.34 per diluted share, and $1.57 per diluted share for the full year
  • Pro Rata Same Property Net Operating Income (“NOI”) growth of 0.4% for the fourth quarter and growth of 4.6% for the full year
  • Leased Occupancy as of December 31, 2022 of 96.1%, a fourth quarter sequential increase of 50 basis points and a full year increase of 220 basis points
  • Executed 58 leases totaling approximately 461,000 square feet of pro rata GLA, of which 338,000 square feet was executed at a blended comparable lease spread of 6.1% for the fourth quarter and 8.4% for the full year

Subsequent Highlights:

  • On January 18, 2023, the Company acquired the four remaining retail properties from its unconsolidated joint venture, IAGM, for an aggregate purchase price of $222.3 million by acquiring 100% of the membership interests in each of IAGM’s wholly owned subsidiaries. The Company assumed aggregate mortgage debt of $92.5 million and funded the remaining balance with its available liquidity. Subsequent to the transaction, IAGM proportionately distributed substantially all net proceeds from the sale, of which the Company's share was approximately $71.4 million. In connection with the foregoing, IAGM adopted a liquidation plan on January 11, 2023.

”The InvenTrust team executed on all facets of the 2022 business plan,” stated Daniel (DJ) Busch, President and CEO of InvenTrust. “Our operations team continued to capitalize on solid leasing demand while prudently managing expenses in the current inflationary environment. Our investments team successfully rotated capital out of Colorado and further into our target markets driving closer to our goal of 100% concentration in the Sun Belt region. Lastly, we have maintained our disciplined approach to balance sheet management while diversifying our capital sources through the execution of our inaugural private placement of senior notes.”

Mr. Busch continued, “Already in 2023, we have completed the acquisition of the remaining stake in the Company’s joint venture with PGGM. With this transaction, the InvenTrust portfolio is 100% wholly-owned. In addition, the Board of Directors approved a 5% increase in our dividend starting with our April 2023 payment, bringing the Company’s annualized dividend up to $0.86 a share.”

NET (LOSS) INCOME

  • Net Loss for the three months ended December 31, 2022 was $0.1 million, or $0.00 per diluted share, compared to a Net Loss of $10.8 million, or $0.16 per diluted share, for the same period in 2021.
  • Net Income for the year ended December 31, 2022 was $52.2 million, or $0.77 per diluted share, compared to a Net Loss of $5.4 million, or $0.08 per diluted share, for the same period in 2021.

NAREIT FFO

  • NAREIT FFO for the three months ended December 31, 2022 was $23.8 million, or $0.35 per diluted share, as compared to $9.9 million, or $0.14 per diluted share, for the same period in 2021.
  • NAREIT FFO for the year ended December 31, 2022 was $112.0 million, or $1.66 per diluted share, as compared to $84.1 million, or $1.18 per diluted share, for the same period in 2021.

CORE FFO

  • Core FFO for the three months ended December 31, 2022 was $23.1 million, or $0.34 per diluted share, compared to $26.3 million, or $0.38 per diluted share, for the same period in 2021.
  • Core FFO for the year ended December 31, 2022 was $106.0 million, or $1.57 per diluted share, compared to $99.6 million, or $1.40 per diluted share, for the same period in 2021.

PRO RATA SAME PROPERTY NOI

  • Pro Rata Same Property NOI for the three months ended December 31, 2022 was $35.8 million, a 0.4% increase, compared to the same period in 2021. Excluding net out of period rent collection of $0.6 million, Pro Rata Same Property NOI would have increased 2.1% when comparing the three months ended December 31, 2022 to the same period in 2021.
  • Pro Rata Same Property NOI for the year ended December 31, 2022 was $141.1 million, a 4.6% increase, compared to the same period in 2021. Excluding net out of period rent collection of $1.7 million, Pro Rata Same Property NOI would have increased 6.0% when comparing the year ended December 31, 2022 to the same period in 2021.

DIVIDEND

  • For the quarter ending December 31, 2022, the Board of Directors declared a quarterly cash distribution of $0.2052 per share, payable on January 13, 2023.
  • The Board of Directors approved a 5% increase in the Company’s cash dividend. The new annual rate of $0.8620 will be reflected in the quarterly dividend of $0.2155 expected to be paid in April 2023.

PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY

  • As of December 31, 2022, the Company’s Leased Occupancy was 96.1%.

     
    • Total Anchor Leased Occupancy, which includes spaces greater than or equal to 10,000 square feet, was 98.7% and Small Shop Leased Occupancy was 91.3%. Anchor Leased Occupancy increased by 50 basis points and Small Shop Leased Occupancy increased by 30 basis points on a sequential basis compared to the previous quarter.

       
    • Leased to Economic Occupancy spread of 220 basis points, which equates to approximately $4.8 million of base rent on an annualized basis.
  • Blended re-leasing spreads for comparable new and renewal leases signed in the fourth quarter were 6.1%, and 8.4% for the full year.
  • Annualized Base Rent PSF (“ABR”) as of December 31, 2022 for the Pro Rata Combined Portfolio was $19.08, an increase of 2.6% compared to the same period in 2021. Anchor Tenant ABR PSF was $12.43 and Small Shop ABR PSF was $32.12 for the fourth quarter.
  • On October 28, 2022, the Company acquired Eastfield Village in Huntersville, North Carolina for $22.5 million. The 96,000 square foot neighborhood center is anchored by Food Lion.
  • On December 16, 2022, the Company acquired Stone Ridge Market in San Antonio, Texas, for $58.1 million from its joint venture. The 219,000 square foot community center is shadow anchored by HEB Plus.

LIQUIDITY AND CAPITAL STRUCTURE

  • InvenTrust had $514.4 million of total liquidity, as of December 31, 2022 comprised of $164.4 million of Pro Rata Cash and $350.0 million of availability under its Revolving Credit Facility.
  • The Company has $13.7 million of debt maturing in 2023 and $15.7 million of debt maturing in 2024.
  • The Company's weighted average interest rate on its consolidated debt as of December 31, 2022 was 4.08% and the weighted average remaining term was 5.2 years.

FULL YEAR 2023 OUTLOOK AND GUIDANCE

(Unaudited, dollars in thousands, except per share amounts)

Initial 2023 Guidance

 

2022 Actual

Net Income per diluted share (1)

$0.23

$0.28

 

$0.77

NAREIT FFO per diluted share (2)

$1.64

$1.69

 

$1.66

Core FFO per diluted share

$1.59

$1.64

 

$1.57

Same Property NOI (“SPNOI”) Growth

3.50%

5.00%

 

4.6%

General and administrative

$31,250 

 $32,750

 

$33,342

Interest expense, net (3)

$34,500 

 $35,500

 

$25,957

Net investment activity (4)

~ $150,000

 

$129,970

The Company’s initial 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 or 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)

Excludes amortization of debt discounts and financing costs.

(4)

Net investment activity represents anticipated acquisition activity less disposal activity.

   

In addition to the foregoing assumptions, the Company's 2023 Outlook and 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 share to estimated NAREIT FFO and Core FFO per diluted share:

(Unaudited)

Low End

 

High End

Net income

$

0.23

 

 

$

0.28

 

Depreciation and amortization related to investment properties

 

1.41

 

 

 

1.41

 

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)

 

0.05

 

 

 

0.05

 

Core FFO Applicable to Common Shares and Dilutive Securities

$

1.59

 

 

$

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 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:

Wednesday, February 15, 2023

Time:

10:00 am ET

Dial-in:

(844) 200-6205 / Access Code 310501

Webcast:

https://events.q4inc.com/attendee/961428227

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, direct listing costs, 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 are 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 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 and lease count.

FINANCIAL STATEMENTS

Consolidated Balance Sheets

Dollars in thousands, except share amounts

   

 

As of December 31,

 

2022

 

2021

Assets

(unaudited)

 

 

Investment properties

 

 

 

Land

$

650,764

 

 

$

598,936

 

Building and other improvements

 

1,825,893

 

 

 

1,664,525

 

Construction in progress

 

5,005

 

 

 

9,642

 

Total

 

2,481,662

 

 

 

2,273,103

 

Less accumulated depreciation

 

(389,361

)

 

 

(350,256

)

Net investment properties

 

2,092,301

 

 

 

1,922,847

 

Cash, cash equivalents and restricted cash

 

137,762

 

 

 

44,854

 

Investment in unconsolidated entities

 

56,131

 

 

 

107,944

 

Intangible assets, net

 

101,167

 

 

 

81,026

 

Accounts and rents receivable

 

34,528

 

 

 

30,059

 

Deferred costs and other assets, net

 

51,145

 

 

 

25,685

 

Total assets

$

2,473,034

 

 

$

2,212,415

 

 

 

 

 

Liabilities

 

 

 

Debt, net

$

754,551

 

 

$

533,082

 

Accounts payable and accrued expenses

 

42,792

 

 

 

36,208

 

Distributions payable

 

13,837

 

 

 

13,802

 

Intangible liabilities, net

 

29,658

 

 

 

28,995

 

Other liabilities

 

28,287

 

 

 

28,776

 

Total liabilities

 

869,125

 

 

 

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, 67,472,553 shares issued and outstanding as of December 31, 2022 and 67,344,374 shares issued and outstanding as of December 31, 2021

 

67

 

 

 

67

 

Additional paid-in capital

 

5,456,968

 

 

 

5,452,550

 

Distributions in excess of accumulated net income

 

(3,879,847

)

 

 

(3,876,743

)

Accumulated comprehensive income (loss)

 

26,721

 

 

 

(4,322

)

Total stockholders' equity

 

1,603,909

 

 

 

1,571,552

 

Total liabilities and stockholders' equity

$

2,473,034

 

 

$

2,212,415

 

Consolidated Statements of Operations and Comprehensive (Loss) Income

Dollars in thousands, except share and per share amounts, unaudited

   

 

Three Months Ended December 31

 

Year Ended December 31

 

2022

 

2021

 

2022

 

2021

Income

 

 

 

 

 

 

 

Lease income, net

$

58,418

 

 

$

52,481

 

 

$

232,980

 

 

$

207,350

 

Other property income

 

275

 

 

 

327

 

 

 

1,161

 

 

 

1,087

 

Other fee income

 

578

 

 

 

772

 

 

 

2,566

 

 

 

3,542

 

Total income

 

59,271

 

 

 

53,580

 

 

 

236,707

 

 

 

211,979

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Depreciation and amortization

 

23,897

 

 

 

22,143

 

 

 

94,952

 

 

 

87,143

 

Property operating

 

11,983

 

 

 

8,862

 

 

 

40,239

 

 

 

32,788

 

Real estate taxes

 

7,330

 

 

 

6,531

 

 

 

32,925

 

 

 

31,312

 

General and administrative

 

10,103

 

 

 

9,149

 

 

 

33,342

 

 

 

38,192

 

Direct listing costs

 

 

 

 

18,065

 

 

 

 

 

 

19,769

 

Total operating expenses

 

53,313

 

 

 

64,750

 

 

 

201,458

 

 

 

209,204

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

Interest expense, net

 

(8,648

)

 

 

(4,305

)

 

 

(26,777

)

 

 

(16,261

)

Loss on extinguishment of debt

 

(85

)

 

 

 

 

 

(181

)

 

 

(400

)

Gain on sale of investment properties, net

 

1,393

 

 

 

6

 

 

 

38,249

 

 

 

1,522

 

Equity in earnings (losses) of unconsolidated entities

 

(121

)

 

 

3,957

 

 

 

3,663

 

 

 

6,398

 

Other income and expense, net

 

1,378

 

 

 

761

 

 

 

2,030

 

 

 

606

 

Total other income (expense), net

 

(6,083

)

 

 

419

 

 

 

16,984

 

 

 

(8,135

)

 

 

 

 

 

 

 

 

Net (loss) income

$

(125

)

 

$

(10,751

)

 

$

52,233

 

 

$

(5,360

)

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic

 

67,428,549

 

 

 

69,117,723

 

 

 

67,406,233

 

 

 

71,072,933

 

Weighted-average common shares outstanding, diluted

 

67,428,549

 

 

 

69,117,723

 

 

 

67,525,935

 

 

 

71,072,933

 

 

 

 

 

 

 

 

 

Net (loss) income per common share, basic and diluted

$

(0.00

)

 

$

(0.16

)

 

$

0.77

 

 

$

(0.08

)

 

 

 

 

 

 

 

 

Distributions declared per common share outstanding

$

0.21

 

 

$

0.20

 

 

$

0.82

 

 

$

0.78

 

Distributions paid per common share outstanding

$

0.21

 

 

$

0.20

 

 

$

0.82

 

 

$

0.78

 

 

 

 

 

 

 

 

 

Comprehensive (loss) income

 

 

 

 

 

 

 

Net income (loss)

$

(125

)

 

$

(10,751

)

 

$

52,233

 

 

$

(5,360

)

Unrealized (loss) gain on derivatives

 

(860

)

 

 

2,235

 

 

 

32,052

 

 

 

3,795

 

Reclassification (to) from net income (loss)

 

(1,756

)

 

 

1,104

 

 

 

(1,009

)

 

 

4,332

 

Comprehensive (loss) income

$

(2,741

)

 

$

(7,412

)

 

$

83,276

 

 

$

2,767

 

Pro Rata Same Property NOI

Dollars in thousands

  

The following table compares Pro Rata Same Property NOI:

   

 

Three Months Ended December 31

 

Year Ended December 31

 

2022

 

2021

 

2022

 

2021

Income

 

 

 

 

 

 

 

Base rent

$

33,352

 

 

$

31,945

 

 

$

127,514

 

 

$

119,448

 

Real estate tax recoveries

 

6,300

 

 

 

5,558

 

 

 

25,482

 

 

 

25,198

 

CAM, insurance, and other recoveries

 

6,368

 

 

 

5,836

 

 

 

23,864

 

 

 

22,092

 

Ground rent income

 

3,401

 

 

 

3,278

 

 

 

13,292

 

 

 

12,816

 

Short-term and other lease income

 

1,448

 

 

 

897

 

 

 

4,250

 

 

 

3,345

 

Provision for uncollectible billed rent and recoveries

 

(295

)

 

 

(285

)

 

 

(824

)

 

 

(2,603

)

Reversal of uncollectible billed rent and recoveries

 

124

 

 

 

570

 

 

 

1,271

 

 

 

5,206

 

Other property income

 

265

 

 

 

328

 

 

 

1,123

 

 

 

1,087

 

Total income

 

50,963

 

 

 

48,127

 

 

 

195,972

 

 

 

186,589

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

Property operating expenses

 

10,500

 

 

 

8,374

 

 

 

35,085

 

 

 

30,681

 

Real estate taxes

 

6,601

 

 

 

6,010

 

 

 

27,695

 

 

 

28,467

 

Total operating expenses

 

17,101

 

 

 

14,384

 

 

 

62,780

 

 

 

59,148

 

 

 

 

 

 

 

 

 

Same Property NOI

 

33,862

 

 

 

33,743

 

 

 

133,192

 

 

 

127,441

 

 

 

 

 

 

 

 

 

JV Same Property NOI

 

1,966

 

 

 

1,945

 

 

 

7,885

 

 

 

7,380

 

 

 

 

 

 

 

 

 

Pro Rata Same Property NOI

$

35,828

 

 

$

35,688

 

 

$

141,077

 

 

$

134,821

 

Reconciliation of Net (Loss) Income to Pro Rata Same Property NOI

The following table is a reconciliation of Net (Loss) Income to Pro Rata Same Property NOI:

   

 

Three Months Ended December 31

 

Year Ended December 31

 

2022

 

2021

 

2022

 

2021

Net (loss) income

$

(125

)

 

$

(10,751

)

 

$

52,233

 

 

$

(5,360

)

Adjustments to reconcile to non-GAAP metrics:

 

 

 

 

 

 

 

Other income and expense, net

 

(1,378

)

 

 

(761

)

 

 

(2,030

)

 

 

(606

)

Equity in losses (earnings) of unconsolidated entities

 

121

 

 

 

(3,957

)

 

 

(3,663

)

 

 

(6,398

)

Interest expense, net

 

8,648

 

 

 

4,305

 

 

 

26,777

 

 

 

16,261

 

Loss on extinguishment of debt

 

85

 

 

 

 

 

 

181

 

 

 

400

 

Gain on sale of investment properties, net

 

(1,393

)

 

 

(6

)

 

 

(38,249

)

 

 

(1,522

)

Depreciation and amortization

 

23,897

 

 

 

22,143

 

 

 

94,952

 

 

 

87,143

 

General and administrative

 

10,103

 

 

 

9,149

 

 

 

33,342

 

 

 

38,192

 

Direct listing costs

 

 

 

 

18,065

 

 

 

 

 

 

19,769

 

Other fee income

 

(578

)

 

 

(772

)

 

 

(2,566

)

 

 

(3,542

)

Adjustments to NOI (a)

 

(1,671

)

 

 

(1,854

)

 

 

(9,743

)

 

 

(7,528

)

NOI

 

37,709

 

 

 

35,561

 

 

 

151,234

 

 

 

136,809

 

NOI from other investment properties

 

(3,847

)

 

 

(1,818

)

 

 

(18,042

)

 

 

(9,368

)

Same Property NOI

 

33,862

 

 

 

33,743

 

 

 

133,192

 

 

 

127,441

 

IAGM Same Property NOI at share

 

1,966

 

 

 

1,945

 

 

 

7,885

 

 

 

7,380

 

Pro Rata Same Property NOI

$

35,828

 

 

$

35,688

 

 

$

141,077

 

 

$

134,821

 

(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 December 31

 

Year Ended December 31

 

2022

 

2021

 

2022

 

2021

Net (loss) income

$

(125

)

 

$

(10,751

)

 

$

52,233

 

 

$

(5,360

)

Depreciation and amortization related to investment properties

 

23,698

 

 

 

21,929

 

 

 

94,142

 

 

 

86,257

 

Gain on sale of investment properties, net

 

(1,393

)

 

 

(6

)

 

 

(38,249

)

 

 

(1,522

)

Unconsolidated joint venture adjustments (a)

 

1,595

 

 

 

(1,230

)

 

 

3,850

 

 

 

4,713

 

NAREIT FFO Applicable to Common Shares and Dilutive Securities

 

23,775

 

 

 

9,942

 

 

 

111,976

 

 

 

84,088

 

Amortization of market-lease intangibles and inducements, net

 

(995

)

 

 

(914

)

 

 

(5,589

)

 

 

(4,318

)

Straight-line rent adjustments, net

 

(690

)

 

 

(903

)

 

 

(3,815

)

 

 

(2,805

)

Direct listing costs

 

 

 

 

18,065

 

 

 

 

 

 

19,769

 

Adjusting items, net (b)

 

705

 

 

 

(13

)

 

 

2,798

 

 

 

2,201

 

Unconsolidated joint venture adjusting items, net (c)

 

282

 

 

 

106

 

 

 

582

 

 

 

672

 

Core FFO Applicable to Common Shares and Dilutive Securities

$

23,077

 

 

$

26,283

 

 

$

105,952

 

 

$

99,607

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

67,428,549

 

 

 

69,117,723

 

 

 

67,406,233

 

 

 

71,072,933

 

Dilutive effect of unvested restricted shares (d)

 

 

 

 

 

 

 

119,702

 

 

 

 

Weighted average common shares outstanding - diluted

 

67,428,549

 

 

 

69,117,723

 

 

 

67,525,935

 

 

 

71,072,933

 

 

 

 

 

 

 

 

 

NAREIT FFO Applicable to Common Shares and Dilutive Securities per share

$

0.35

 

 

$

0.14

 

 

$

1.66

 

 

$

1.18

 

Core FFO Applicable to Common Shares and Dilutive Securities per share

$

0.34

 

 

$

0.38

 

 

$

1.57

 

 

$

1.40

 

(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 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. For the three months ended December 31, 2022, three months ended December 31, 2021, and year ended December 31, 2021, unvested restricted shares were antidilutive and therefore excluded from the denominator in the diluted earnings per share calculation 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 December 31

 

Year Ended December 31

 

2022

 

2021

 

2022

 

2021

Net (loss) income

$

(125

)

 

$

(10,751

)

 

$

52,233

 

 

$

(5,360

)

Interest expense

 

9,206

 

 

 

4,977

 

 

 

28,978

 

 

 

19,362

 

Income tax expense (benefit)

 

129

 

 

 

102

 

 

 

458

 

 

 

377

 

Depreciation and amortization

 

25,358

 

 

 

23,920

 

 

 

100,731

 

 

 

95,083

 

EBITDA

 

34,568

 

 

 

18,248

 

 

 

182,400

 

 

 

109,462

 

Adjustments to reconcile to Adjusted EBITDA

 

 

 

 

 

 

 

Direct listing costs

 

 

 

 

18,065

 

 

 

 

 

 

19,769

 

Gain on sale of investment properties, net

 

(1,259

)

 

 

(3,013

)

 

 

(40,178

)

 

 

(4,749

)

Loss on debt extinguishment

 

95

 

 

 

 

 

 

302

 

 

 

526

 

Non-operating income and expense, net (a)

 

(243

)

 

 

(887

)

 

 

(1,070

)

 

 

(893

)

Other leasing adjustments (b)

 

(1,539

)

 

 

(1,770

)

 

 

(9,086

)

 

 

(6,842

)

Adjusted EBITDA

$

31,622

 

 

$

30,643

 

 

$

132,368

 

 

$

117,273

 

(a)

Non-operating income and expense, net, includes other items which are not pertinent to measuring ongoing operating performance, such as miscellaneous and settlement income.

(b)

Other leasing adjustments includes amortization of market lease intangibles 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 December 31,

 

2022

 

2021

Pro Rata Net Debt:

 

 

 

Pro Rata Outstanding Debt, net

$

805,253

 

 

$

624,289

 

Less: Pro Rata Cash

 

(164,448

)

 

 

(79,628

)

Pro Rata Net Debt

$

640,805

 

 

$

544,661

 

 

 

 

 

Pro Rata Net Debt-to-Adjusted EBITDA (trailing 12 months):

 

 

 

Pro Rata Net Debt

$

640,805

 

 

$

544,661

 

Adjusted EBITDA (trailing 12 months)

 

132,368

 

 

 

117,273

 

Net Debt-to-Adjusted EBITDA

4.8x

 

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 December 31, 2022, the Company is an owner and manager of 62 retail properties, representing 10.3 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 Company’s 2023 guidance and expected timing and payment of dividends, 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: 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.

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