InvenTrust Properties Corp. Reports 2023 Fourth Quarter and Full Year Results
Fourth Quarter and Full Year 2023 Highlights:
-
NAREIT FFO for the fourth quarter of
$0.45 per diluted share, and$1.70 per diluted share for the full year -
Core FFO for the fourth quarter of
$0.41 per diluted share, and$1.65 per diluted share for the full year - Same Property Net Operating Income (“NOI”) growth of 6.4% for the fourth quarter and 4.9% for the full year
-
Leased Occupancy as of
December 31, 2023 of 96.2%, a fourth quarter sequential increase of 110 basis points and a full year increase of 10 basis points - Executed 86 leases in the fourth quarter, totaling approximately 553,000 square feet of GLA, of which 429,000 was executed at a blended comparable lease spread of 13.9%, and 299 leases for the full year, totaling approximately 1,418,000 square feet of GLA, of which 974,000 was executed at a blended comparable lease spread of 9.8%
- New leases for anchor tenants were executed at a comparable lease spread of 35.2% for the full year
-
Raised
$5.4 million of net proceeds under the at-the-market equity offering program (the “ATM Program”) -
The Board of Directors approved a 5% increase to the Company’s dividends starting in
April 2024
”We are pleased to report another year of outstanding performance driven by our simple and focused business plan; that is, owning high quality open-air retail centers in
NET INCOME (LOSS)
-
Net Income for the three months ended
December 31, 2023 was$2.9 million , or$0.04 per diluted share, compared to a Net Loss of$0.1 million , or$0.00 per diluted share, for the same period in 2022. -
Net Income for the year ended
December 31, 2023 was$5.3 million , or$0.08 per diluted share, compared to$52.2 million , or$0.77 per diluted share, for the same period in 2022.
NAREIT FFO
-
NAREIT FFO for the three months ended
December 31, 2023 was$30.8 million , or$0.45 per diluted share, as compared to$23.8 million , or$0.35 per diluted share, for the same period in 2022. -
NAREIT FFO for the year ended
December 31, 2023 was$115.5 million , or$1.70 per diluted share, as compared to$112.0 million , or$1.66 per diluted share, for the same period in 2022.
CORE FFO
-
Core FFO for the three months ended
December 31, 2023 was$27.8 million , or$0.41 per diluted share, compared to$23.1 million , or$0.34 per diluted share, for the same period in 2022. -
Core FFO for the year ended
December 31, 2023 was$111.9 million , or$1.65 per diluted share, compared to$106.0 million , or$1.57 per diluted share, for the same period in 2022.
SAME PROPERTY NOI
-
Same Property NOI for the three months ended
December 31, 2023 was$38.7 million , a 6.4% increase, compared to the same period in 2022. -
Same Property NOI for the year ended
December 31, 2023 was$142.1 million , a 4.9% increase, compared to the same period in 2022.
DIVIDEND
-
For the quarter ending
December 31, 2023 , the Board of Directors declared a quarterly cash distribution of $0.2155 per share, payable onJanuary 15, 2024 . -
The Board of Directors approved an increase of 5% to the Company’s cash dividend. The new annual rate of
$0.9052 will be reflected in the next quarterly dividend of$0.2263 expected to be paid inApril 2024 .
PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY
-
As of
December 31, 2023 , the Company’s Leased Occupancy was 96.2%.- Anchor Leased Occupancy, which includes spaces greater than or equal to 10,000 square feet, was 98.2% and Small Shop Leased Occupancy was 92.5%. Anchor Leased Occupancy increased by 160 basis points and Small Shop Leased Occupancy increased by 10 basis points on a sequential basis compared to the previous quarter.
-
Leased to Economic Occupancy spread of 290 basis points, which equates to approximately
$7.4 million of base rent on an annualized basis.
- Blended re-leasing spreads for comparable new and renewal leases signed in the fourth quarter and full year were 13.9% and 9.8%, respectively.
-
Annualized Base Rent PSF (“ABR”) as of
December 31, 2023 was$19.48 , an increase of 2.1% compared to the same period in 2022. Anchor Tenant ABR PSF was$12.49 and Small Shop ABR PSF was$32.74 for the fourth quarter.
LIQUIDITY AND CAPITAL STRUCTURE
-
During the three months ended
December 31, 2023 , the Company raised$5.4 million of net proceeds under the ATM Program, after$0.1 million in commissions, through the issuance of 208,040 shares of common stock at a weighted average price of$26.13 per share. -
On
October 17, 2023 , the Company extended the maturity of its$92.5 million of cross-collateralized mortgage debt maturing in 2023 by exercising one of its two 12-month extension options. The maturity date of the debt is nowNovember 2, 2024 . OnDecember 21, 2023 , the Company partially paid down the cross-collateralized mortgage debt by$20.0 million , resulting in an outstanding balance of$72.5 million as ofDecember 31, 2023 . -
InvenTrust had
$446.4 million of total liquidity, as ofDecember 31, 2023 comprised of$96.4 million of cash and cash equivalents and$350.0 million of availability under its Revolving Credit Facility. -
InvenTrust has
$88.2 million of debt maturing in 2024 and$22.9 million of debt maturing in 2025. -
The Company's weighted average interest rate on its debt as of
December 31, 2023 was 4.29% and the weighted average remaining term was 4.0 years.
SUBSEQUENT EVENTS
-
On
February 1, 2024 , the Company acquired The Plant, a 57,000 square foot neighborhood center anchored by Sprouts Farmers Market inChandler, Arizona for a gross acquisition price of$29.5 million . The Company used cash on hand and assumed$13.0 million of existing mortgage debt to fund the acquisition.
FULL YEAR 2024 OUTLOOK AND INITIAL GUIDANCE
The Company has provided initial 2024 guidance, as summarized in the table below.
(Unaudited, dollars in thousands, except per share amounts) |
Initial 2024 Guidance(1)(2) |
|
2023 Actual |
||
Net Income per diluted share |
|
— |
|
|
|
NAREIT FFO per diluted share |
|
— |
|
|
|
Core FFO per diluted share (3) |
|
— |
|
|
|
Same Property NOI (“SPNOI”) Growth |
2.25% |
— |
3.25% |
|
4.9% |
General and administrative |
|
— |
|
|
|
Interest expense, net (4) |
|
— |
|
|
|
Net investment activity (5) |
~ |
|
|
(1) |
The Company’s initial 2024 guidance excludes projections related to gains or losses on dispositions, gains or losses on debt transactions, or depreciation, amortization, and straight-line rent adjustments related to acquisitions. |
|
(2) |
The Company’s initial 2024 guidance includes an expectation of uncollectibility, reflected as 50-100 basis points of expected total revenue. |
|
(3) |
Core FFO per diluted share excludes certain remaining amortization assumptions within NAREIT FFO, debt extinguishment charges, straight-line rent adjustments, and non-routine items which, in management’s judgement, are not pertinent to measuring on-going operating performance. |
|
(4) |
Interest expense, net, excludes amortization of debt discounts and financing costs, and expected interest income of approximately |
|
(5) |
Net investment activity represents anticipated acquisition activity less disposition activity. |
In addition to the foregoing, the Company's initial 2024 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 2024 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 |
$ |
0.04 |
|
|
$ |
0.10 |
|
Depreciation and amortization related to investment properties |
|
1.65 |
|
|
|
1.65 |
|
NAREIT FFO per diluted share |
|
1.69 |
|
|
|
1.75 |
|
Amortization of market-lease intangibles and inducements, net |
|
(0.02 |
) |
|
|
(0.03 |
) |
Straight-line rent adjustments, net |
|
(0.04 |
) |
|
|
(0.05 |
) |
Amortization of debt discounts and financing costs |
|
0.03 |
|
|
|
0.03 |
|
Core FFO per diluted share |
$ |
1.66 |
|
|
$ |
1.70 |
|
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: |
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Time: |
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Dial-in: |
(833) 470-1428 / Access Code: 861039 |
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Webcast & Replay Link: |
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Webcast Archive: |
NON-GAAP FINANCIAL MEASURES
This Press Release includes certain non-GAAP financial measures and other terms 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, 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"). 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
ADJUSTED EBITDA
The Company’s non-GAAP measure of Adjusted EBITDA excludes gains (or losses) resulting from debt extinguishments, 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 the Company’s unconsolidated joint venture are calculated to reflect the Company’s proportionate share of the joint venture's 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.
PRO RATA FINANCIAL INFORMATION
On
Financial Statements Consolidated Balance Sheets In thousands, except share amounts |
|||||||
|
As of |
||||||
|
2023 |
|
2022 |
||||
Assets |
(unaudited) |
|
|
||||
Investment properties |
|
|
|
||||
Land |
$ |
694,668 |
|
|
$ |
650,764 |
|
Building and other improvements |
|
1,956,117 |
|
|
|
1,825,893 |
|
Construction in progress |
|
5,889 |
|
|
|
5,005 |
|
Total |
|
2,656,674 |
|
|
|
2,481,662 |
|
Less accumulated depreciation |
|
(461,352 |
) |
|
|
(389,361 |
) |
Net investment properties |
|
2,195,322 |
|
|
|
2,092,301 |
|
Cash, cash equivalents and restricted cash |
|
99,763 |
|
|
|
137,762 |
|
Investment in unconsolidated entities |
|
— |
|
|
|
56,131 |
|
Intangible assets, net |
|
114,485 |
|
|
|
101,167 |
|
Accounts and rents receivable |
|
35,353 |
|
|
|
34,528 |
|
Deferred costs and other assets, net |
|
42,408 |
|
|
|
51,145 |
|
Total assets |
$ |
2,487,331 |
|
|
$ |
2,473,034 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Debt, net |
$ |
814,568 |
|
|
$ |
754,551 |
|
Accounts payable and accrued expenses |
|
44,583 |
|
|
|
42,792 |
|
Distributions payable |
|
14,594 |
|
|
|
13,837 |
|
Intangible liabilities, net |
|
30,344 |
|
|
|
29,658 |
|
Other liabilities |
|
29,198 |
|
|
|
28,287 |
|
Total liabilities |
|
933,287 |
|
|
|
869,125 |
|
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders' Equity |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock,
67,807,831 shares issued and outstanding as of
67,472,553 shares issued and outstanding as of |
|
68 |
|
|
|
67 |
|
Additional paid-in capital |
|
5,468,728 |
|
|
|
5,456,968 |
|
Distributions in excess of accumulated net income |
|
(3,932,826 |
) |
|
|
(3,879,847 |
) |
Accumulated comprehensive income |
|
18,074 |
|
|
|
26,721 |
|
Total stockholders' equity |
|
1,554,044 |
|
|
|
1,603,909 |
|
Total liabilities and stockholders' equity |
$ |
2,487,331 |
|
|
$ |
2,473,034 |
|
Financial Statements Consolidated Statements of Operations and Comprehensive (Loss) Income In thousands, except share and per share amounts, unaudited |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Income |
|
|
|
|
|
|
|
||||||||
Lease income, net |
$ |
64,332 |
|
|
$ |
58,418 |
|
|
$ |
257,146 |
|
|
$ |
232,980 |
|
Other property income |
|
390 |
|
|
|
275 |
|
|
|
1,450 |
|
|
|
1,161 |
|
Other fee income |
|
— |
|
|
|
578 |
|
|
|
80 |
|
|
|
2,566 |
|
Total income |
|
64,722 |
|
|
|
59,271 |
|
|
|
258,676 |
|
|
|
236,707 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
28,091 |
|
|
|
23,897 |
|
|
|
113,430 |
|
|
|
94,952 |
|
Property operating |
|
11,776 |
|
|
|
11,983 |
|
|
|
42,832 |
|
|
|
40,239 |
|
Real estate taxes |
|
7,448 |
|
|
|
7,330 |
|
|
|
34,809 |
|
|
|
32,925 |
|
General and administrative |
|
8,408 |
|
|
|
10,103 |
|
|
|
31,797 |
|
|
|
33,342 |
|
Total operating expenses |
|
55,723 |
|
|
|
53,313 |
|
|
|
222,868 |
|
|
|
201,458 |
|
|
|
|
|
|
|
|
|
||||||||
Other (expense) income |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(9,697 |
) |
|
|
(8,648 |
) |
|
|
(38,138 |
) |
|
|
(26,777 |
) |
Loss on extinguishment of debt |
|
(15 |
) |
|
|
(85 |
) |
|
|
(15 |
) |
|
|
(181 |
) |
Gain on sale of investment properties |
|
— |
|
|
|
1,393 |
|
|
|
2,691 |
|
|
|
38,249 |
|
Equity in (losses) earnings of unconsolidated entities |
|
(110 |
) |
|
|
(121 |
) |
|
|
(557 |
) |
|
|
3,663 |
|
Other income and expense, net |
|
3,713 |
|
|
|
1,378 |
|
|
|
5,480 |
|
|
|
2,030 |
|
Total other (expense) income, net |
|
(6,109 |
) |
|
|
(6,083 |
) |
|
|
(30,539 |
) |
|
|
16,984 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
2,890 |
|
|
$ |
(125 |
) |
|
$ |
5,269 |
|
|
$ |
52,233 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding, basic |
|
67,563,908 |
|
|
|
67,428,549 |
|
|
|
67,531,898 |
|
|
|
67,406,233 |
|
Weighted-average common shares outstanding, diluted |
|
68,090,912 |
|
|
|
67,428,549 |
|
|
|
67,813,180 |
|
|
|
67,525,935 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share - basic |
$ |
0.04 |
|
|
$ |
— |
|
|
$ |
0.08 |
|
|
$ |
0.77 |
|
Net income (loss) per common share - diluted |
$ |
0.04 |
|
|
$ |
— |
|
|
$ |
0.08 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
||||||||
Distributions declared per common share outstanding |
$ |
0.22 |
|
|
$ |
0.21 |
|
|
$ |
0.86 |
|
|
$ |
0.82 |
|
Distributions paid per common share outstanding |
$ |
0.22 |
|
|
$ |
0.21 |
|
|
$ |
0.85 |
|
|
$ |
0.82 |
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive (loss) income |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
2,890 |
|
|
$ |
(125 |
) |
|
$ |
5,269 |
|
|
$ |
52,233 |
|
Unrealized (loss) gain on derivatives |
|
(7,268 |
) |
|
|
(860 |
) |
|
|
6,228 |
|
|
|
32,052 |
|
Reclassification (to) from net income (loss) |
|
(3,786 |
) |
|
|
(1,756 |
) |
|
|
(14,875 |
) |
|
|
(1,009 |
) |
Comprehensive (loss) income |
$ |
(8,164 |
) |
|
$ |
(2,741 |
) |
|
$ |
(3,378 |
) |
|
$ |
83,276 |
|
Reconciliation of Non-GAAP Measures In thousands |
|||||||||||||||
Same Property NOI |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Income |
|
|
|
|
|
|
|
||||||||
Base rent |
$ |
36,739 |
|
|
$ |
35,889 |
|
|
$ |
135,732 |
|
|
$ |
130,613 |
|
Real estate tax recoveries |
|
6,345 |
|
|
|
6,655 |
|
|
|
25,821 |
|
|
|
26,244 |
|
CAM, insurance, and other recoveries |
|
7,413 |
|
|
|
7,187 |
|
|
|
24,829 |
|
|
|
24,119 |
|
Ground rent income |
|
3,683 |
|
|
|
3,690 |
|
|
|
13,535 |
|
|
|
13,319 |
|
Short-term and other lease income |
|
1,763 |
|
|
|
1,462 |
|
|
|
4,244 |
|
|
|
4,203 |
|
Provision for uncollectible billed rent and recoveries |
|
(662 |
) |
|
|
(286 |
) |
|
|
(1,325 |
) |
|
|
(814 |
) |
Reversal of uncollectible billed rent and recoveries |
|
— |
|
|
|
11 |
|
|
|
395 |
|
|
|
1,279 |
|
Other property income |
|
339 |
|
|
|
277 |
|
|
|
1,212 |
|
|
|
1,127 |
|
Total income |
|
55,620 |
|
|
|
54,885 |
|
|
|
204,443 |
|
|
|
200,090 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Expenses |
|
|
|
|
|
|
|
||||||||
Property operating expenses |
|
10,271 |
|
|
|
11,537 |
|
|
|
33,841 |
|
|
|
35,695 |
|
Real estate taxes |
|
6,640 |
|
|
|
6,969 |
|
|
|
28,478 |
|
|
|
28,852 |
|
Total operating expenses |
|
16,911 |
|
|
|
18,506 |
|
|
|
62,319 |
|
|
|
64,547 |
|
|
|
|
|
|
|
|
|
||||||||
Same Property NOI |
$ |
38,709 |
|
|
$ |
36,379 |
|
|
$ |
142,124 |
|
|
$ |
135,543 |
|
Net Income (Loss) to Same Property NOI |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income (loss) |
$ |
2,890 |
|
|
$ |
(125 |
) |
|
$ |
5,269 |
|
|
$ |
52,233 |
|
Adjustments to reconcile to non-GAAP metrics: |
|
|
|
|
|
|
|
||||||||
Other income and expense, net |
|
(3,713 |
) |
|
|
(1,378 |
) |
|
|
(5,480 |
) |
|
|
(2,030 |
) |
Equity in losses (earnings) of unconsolidated entities |
|
110 |
|
|
|
121 |
|
|
|
557 |
|
|
|
(3,663 |
) |
Interest expense, net |
|
9,697 |
|
|
|
8,648 |
|
|
|
38,138 |
|
|
|
26,777 |
|
Loss on extinguishment of debt |
|
15 |
|
|
|
85 |
|
|
|
15 |
|
|
|
181 |
|
Gain on sale of investment properties |
|
— |
|
|
|
(1,393 |
) |
|
|
(2,691 |
) |
|
|
(38,249 |
) |
Depreciation and amortization |
|
28,091 |
|
|
|
23,897 |
|
|
|
113,430 |
|
|
|
94,952 |
|
General and administrative |
|
8,408 |
|
|
|
10,103 |
|
|
|
31,797 |
|
|
|
33,342 |
|
Other fee income |
|
— |
|
|
|
(578 |
) |
|
|
(80 |
) |
|
|
(2,566 |
) |
Adjustments to NOI (a) |
|
(1,500 |
) |
|
|
(1,671 |
) |
|
|
(7,528 |
) |
|
|
(9,743 |
) |
NOI |
|
43,998 |
|
|
|
37,709 |
|
|
|
173,427 |
|
|
|
151,234 |
|
NOI from other investment properties |
|
(5,289 |
) |
|
|
(1,330 |
) |
|
|
(31,303 |
) |
|
|
(15,691 |
) |
Same Property NOI |
$ |
38,709 |
|
|
$ |
36,379 |
|
|
$ |
142,124 |
|
|
$ |
135,543 |
|
(a) |
Adjustments to NOI include termination fee income and expense and GAAP Rent Adjustments. |
Reconciliation of Non-GAAP Measures
In thousands |
|||||||||||||||
|
|||||||||||||||
NAREIT FFO and Core FFO |
|||||||||||||||
|
|||||||||||||||
The following table presents a reconciliation of Net Income (Loss) to NAREIT FFO and Core FFO Attributable to |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income (loss) |
$ |
2,890 |
|
|
$ |
(125 |
) |
|
$ |
5,269 |
|
|
$ |
52,233 |
|
Depreciation and amortization related to investment properties |
|
27,864 |
|
|
|
23,698 |
|
|
|
112,578 |
|
|
|
94,142 |
|
Gain on sale of investment properties |
|
— |
|
|
|
(1,393 |
) |
|
|
(2,691 |
) |
|
|
(38,249 |
) |
Unconsolidated joint venture adjustments(a) |
|
— |
|
|
|
1,595 |
|
|
|
342 |
|
|
|
3,850 |
|
NAREIT FFO Applicable to |
|
30,754 |
|
|
|
23,775 |
|
|
|
115,498 |
|
|
|
111,976 |
|
Amortization of market-lease intangibles and inducements, net |
|
(626 |
) |
|
|
(995 |
) |
|
|
(3,343 |
) |
|
|
(5,589 |
) |
Straight-line rent adjustments, net |
|
(857 |
) |
|
|
(690 |
) |
|
|
(3,349 |
) |
|
|
(3,815 |
) |
Amortization of debt discounts and financing costs |
|
827 |
|
|
|
741 |
|
|
|
4,113 |
|
|
|
2,816 |
|
Adjusting items, net(b) |
|
(2,385 |
) |
|
|
(36 |
) |
|
|
(969 |
) |
|
|
(18 |
) |
Unconsolidated joint venture adjusting items, net (c) |
|
80 |
|
|
|
282 |
|
|
|
(92 |
) |
|
|
582 |
|
Core FFO Applicable to |
$ |
27,793 |
|
|
$ |
23,077 |
|
|
$ |
111,858 |
|
|
$ |
105,952 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding - basic |
|
67,563,908 |
|
|
|
67,428,549 |
|
|
|
67,531,898 |
|
|
|
67,406,233 |
|
Dilutive effect of unvested restricted shares (d) |
|
527,004 |
|
|
|
— |
|
|
|
281,282 |
|
|
|
119,702 |
|
Weighted average common shares outstanding - diluted |
|
68,090,912 |
|
|
|
67,428,549 |
|
|
|
67,813,180 |
|
|
|
67,525,935 |
|
|
|
|
|
|
|
|
|
||||||||
NAREIT FFO per diluted share |
$ |
0.45 |
|
|
$ |
0.35 |
|
|
$ |
1.70 |
|
|
$ |
1.66 |
|
Core FFO per diluted share |
$ |
0.41 |
|
|
$ |
0.34 |
|
|
$ |
1.65 |
|
|
$ |
1.57 |
|
(a) |
Represents the Company's 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, 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 basis difference recognition arising from acquiring the four remaining properties of the Company's joint venture, and miscellaneous and settlement income. |
|
(c) |
Represents the Company's 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. |
Reconciliation of Non-GAAP Measures In thousands |
|||||||||||||||
|
|||||||||||||||
EBITDA and Adjusted EBITDA |
|||||||||||||||
|
|||||||||||||||
The following table presents a reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA, and provides additional information related to its operations: |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income (loss) |
$ |
2,890 |
|
|
$ |
(125 |
) |
|
$ |
5,269 |
|
|
$ |
52,233 |
|
Interest expense, net |
|
9,697 |
|
|
|
8,648 |
|
|
|
38,138 |
|
|
|
26,777 |
|
Income tax expense |
|
129 |
|
|
|
94 |
|
|
|
517 |
|
|
|
363 |
|
Depreciation and amortization |
|
28,091 |
|
|
|
23,897 |
|
|
|
113,430 |
|
|
|
94,952 |
|
Unconsolidated joint venture adjustments (a) |
|
— |
|
|
|
2,054 |
|
|
|
417 |
|
|
|
8,075 |
|
EBITDA |
|
40,807 |
|
|
|
34,568 |
|
|
|
157,771 |
|
|
|
182,400 |
|
Gain on sale of investment properties |
|
— |
|
|
|
(1,393 |
) |
|
|
(2,691 |
) |
|
|
(38,249 |
) |
Amortization of market-lease intangibles and inducements, net |
|
(626 |
) |
|
|
(995 |
) |
|
|
(3,343 |
) |
|
|
(5,589 |
) |
Straight-line rent adjustments, net |
|
(857 |
) |
|
|
(690 |
) |
|
|
(3,349 |
) |
|
|
(3,815 |
) |
Adjusting items, net(b) |
|
(2,612 |
) |
|
|
(235 |
) |
|
|
(1,821 |
) |
|
|
(828 |
) |
Unconsolidated joint venture adjusting items, net (c) |
|
80 |
|
|
|
367 |
|
|
|
(108 |
) |
|
|
(1,551 |
) |
Adjusted EBITDA |
$ |
36,792 |
|
|
$ |
31,622 |
|
|
$ |
146,459 |
|
|
$ |
132,368 |
|
(a) |
Represents IVT's share of depreciation, amortization, interest expense, net, and income tax expense related to IAGM. |
|
(b) |
Adjusting items, net, are primarily loss on extinguishment of debt and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as basis difference recognition arising from acquiring the four remaining properties of the Company's joint venture, and miscellaneous and settlement income. |
|
(c) |
Represents IVT's share of loss on extinguishment of debt, amortization of market lease intangibles and inducements, net, straight line rent adjustments, net and non-operating income and expense, net, related to IAGM. |
Financial Leverage Ratios Dollars in thousands |
|||||||
|
|||||||
The following table presents the calculation of net debt and Net Debt-to-Adjusted EBITDA: |
|||||||
|
As of |
||||||
|
2023 |
|
2022 (a) |
||||
Net Debt: |
|
|
|
||||
Outstanding Debt, net |
$ |
814,568 |
|
|
$ |
805,253 |
|
Less: Cash and cash equivalents |
|
(96,385 |
) |
|
|
(164,448 |
) |
Net Debt |
$ |
718,183 |
|
|
$ |
640,805 |
|
|
|
|
|
||||
Net Debt-to-Adjusted EBITDA (trailing 12 months): |
|
|
|
||||
Net Debt |
$ |
718,183 |
|
|
$ |
640,805 |
|
Adjusted EBITDA (trailing 12 months) |
|
146,459 |
|
|
|
132,368 |
|
Net Debt-to-Adjusted EBITDA (a) |
|
4.9x |
|
|
|
4.8x |
|
(a) |
Outstanding debt, net, Cash and cash equivalents, and Net Debt as of |
About
The enclosed information should be read in conjunction with the Company's filings with the
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 2024 guidance, the amount and timing of payment of the Company's next quarterly dividend, the Company's expectation for continued tenant demand for its centers, strength of and anticipated opportunities based on IVT's low leverage levels, or regarding management’s intentions, beliefs, expectations, representations, 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 the Company and its management, are inherently uncertain. 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
Availability of Information on
Investors and others should note that InvenTrust routinely announces material information to investors and the marketplace using
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213927273/en/
Vice President of Investor Relations
630-570-0605
dan.lombardo@inventrustproperties.com
Source: