InvenTrust Properties : 2023 Q3 Supplemental

Table of Contents
	Page
	No.
Introductory Notes	i
Earnings Release	iii
Financial Information
Summary Financial Information	1
Condensed Consolidated Balance Sheets	2
Condensed Consolidated Statements of Operations and Comprehensive Income	3
Condensed Consolidated Supplemental Details of Assets and Liabilities	4
Condensed Consolidated Supplemental Details of Operations	5
Reconciliation of Non-GAAP Measures
Same Property Net Operating Income	6
NAREIT FFO and Core FFO	7
EBITDA and Adjusted EBITDA	7
Summary of Outstanding Debt	8
Consolidated Debt Covenants, Interest Rate Swaps, and Capital Expenditures	9
Portfolio and Leasing Overview
Markets and Tenant Size	10
Top 25 Tenants by ABR and Tenant Merchandise Mix	11
Comparable & Non-ComparableLease Statistics	12
Tenant Lease Expirations	13
Investment Summary
Acquisitions and Dispositions	14
Development Pipeline	15
Property Summary	16
Components of NAV as of September 30, 2023	18
Glossary of Terms	19

Introductory Notes

About InvenTrust Properties Corp.

InvenTrust Properties Corp. (the "Company," "IVT," or "InvenTrust") is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high- quality power centers that often have a grocery component. Management pursues the Company's business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, 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. For more information, please visit www.inventrustproperties.com.

The enclosed information should be read in conjunction with the Company's filings with the U.S. Securities and Exchange Commission ("SEC"), including, but not limited to, the Company's Form 10-Qs filed quarterly and Form 10-Ks filed annually. Additionally, the enclosed information does not purport to disclose all items required under Generally Accepted Accounting Principles ("GAAP"). The information provided in this supplemental is unaudited and includes non-GAAP measures (as discussed below), and there can be no assurance that the information will not vary from the final information in IVT's Form 10-Q for the quarter ended September 30, 2023. IVT may, but assumes no obligation to, update information in this supplemental.

Forward-Looking Statements Disclaimer

Forward-Looking Statements in this supplemental, 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, tenant demand for IVT's centers, strength of IVT's platform position and 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 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; 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 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. IVT cautions you not to place undue reliance on any forward-looking statements, which are made as of the date of this supplemental. IVT undertakes no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If IVT updates one or more forward-looking statements, no inference should be drawn that IVT will make additional updates with respect to those or other forward-looking statements.

Notice Regarding Non-GAAP Financial Measures

In addition to GAAP measures, this supplemental contains and refers to certain non-GAAP measures. Management does not consider the Company's non-GAAP measures included in the Glossary of Terms to be alternatives to measures required in accordance with GAAP. Certain non-GAAP measures should not be viewed as an alternative measure of IVT's financial performance as they may not reflect the operations of the entire portfolio, and they may not reflect the impact of general and administrative expenses, depreciation and amortization, interest expense, other income (expense), or the level of capital expenditures and leasing costs necessary to maintain the operating performance of IVT's properties that could materially impact IVT's results from operations. Additionally, certain non-GAAP measures should not be considered as an indication of IVT's liquidity, nor as an indication of funds available to cover IVT's cash needs, including IVT's ability to fund distributions, and may not be a useful measure of the impact of long-term operating performance on value if management does not continue to operate the business in the manner currently contemplated. Accordingly, non-GAAP measures should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. Other REITs may use different methodologies for calculating similar non-GAAP measures, and accordingly, IVT's non-GAAP measures may not be comparable to other REITs. Reconciliations of the Company's non-GAAP measures to the most directly comparable GAAP financial measures are included in this supplemental on pages 6 and 7 and definitions of the Company's non-GAAP measures are included in the Glossary of Terms on page 19.

i Supplemental - Quarter End September 30, 2023

Introductory Notes

Pro Rata Financial Information

As of December 31, 2022, the Company owned a 55% interest in IAGM Retail Fund I, LLC ("IAGM" or "JV"), a joint venture partnership between the Company and PGGM Private Real Estate Fund ("PGGM"). IAGM was formed on April 17, 2013 for the purpose of acquiring, owning, managing, and disposing of retail properties and sharing in the profits and losses from those retail properties and their activities. As of December 31, 2022, IAGM was the Company's sole joint venture and was unconsolidated.

On January 18, 2023, the Company acquired the four remaining retail properties from 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.

Throughout this supplemental, where indicated as "pro rata" 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, for the three and nine months ended September 30, 2022 and as of December 31, 2022. As of September 30, 2023, as a result of the Company's acquisition of the remaining IAGM properties, net assets of IAGM were $7.0 million, inclusive of cash and cash equivalents of $9.2 million, which has been included as part of Pro Rata Cash.

The presentation of pro rata financial information has limitations as an analytical tool, which include but are not limited to: (i) amounts shown on individual line items were calculated by applying the Company's overall economic ownership interest percentage determined when applying the equity method of accounting, and may not represent the Company's legal claim to the assets and liabilities, or the revenues and expenses; and (ii) other REITs may use different methodologies for calculating their pro rata interest. Accordingly, pro rata financial information should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. For additional detail regarding properties previously owned by the JV, see the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, in each case as filed with the SEC.

Availability of Information on InvenTrust Properties Corp.'s Website and Social Media Channels

Investors and others should note that InvenTrust routinely announces material information to investors and the marketplace using U.S. Securities and Exchange Commission filings, press releases, public conference calls, webcasts and the InvenTrust investor relations website. The Company uses these channels as well as social media channels (e.g., the InvenTrust X account (twitter.com/inventrustprop); and the InvenTrust LinkedIn account (linkedin.com/company/inventrustproperties)) as a means of disclosing information about the Company's business to colleagues, investors, and the public. While not all of the information that the Company posts to the InvenTrust investor relations website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in InvenTrust to review the information that it shares on www.inventrustproperties.com/investor-relations and on the Company's social media channels.

ii Supplemental - Quarter End September 30, 2023

CONTACT:

Dan Lombardo

Vice President of Investor Relations [e-mail]

InvenTrust Properties Corp. Reports 2023 Third Quarter Results

DOWNERS GROVE, III - November 1, 2023 - InvenTrust Properties Corp. ("InvenTrust" or the "Company") (NYSE: IVT) today reported financial and operating results for the period ended September 30, 2023. For the three months ended September 30, 2023 and 2022, the Company reported a Net Loss of $0.8 million, or $0.01 per diluted share, compared to Net Income of $0.9 million, or $0.01 per diluted share, respectively.

Third Quarter 2023 Highlights:

• NAREIT FFO of $0.41 per diluted share
• Core FFO of $0.41 per diluted share
• Same Property Net Operating Income ("NOI") growth of 5.3%
• Leased Occupancy as of September 30, 2023 of 95.1%
• Executed 74 leases totaling approximately 273,000 square feet of GLA, of which 168,000 square feet was executed at a blended comparable lease spread of 9.3%

"InvenTrust's third quarter operating results continue to reflect robust tenant demand across the portfolio, despite recent pockets of modest retail disruption. We believe this unprecedented demand is undoubtedly due to the high-quality nature of our properties and the sustained demographic drivers within our Sun Belt markets," stated Daniel (DJ) Busch, President and CEO of InvenTrust. "We also remain committed to our low leverage business model, which affords us the ability to capitalize when appropriate and grow cash flow into the future."

NET (LOSS) INCOME

• Net Loss for the three months ended September 30 2023 was $0.8 million, or $0.01 per diluted share, compared to Net Income of $0.9 million, or $0.01 per diluted share, for the same period in 2022.
• Net Income for the nine months ended September 30, 2023 was $2.4 million, or $0.04 per diluted share, compared to Net Income of $52.4 million, or $0.77 per diluted share, for the same period in 2022.

NAREIT FFO

• NAREIT FFO for the three months ended September 30, 2023 was $27.6 million, or $0.41 per diluted share, compared to $26.1 million, or $0.39 per diluted share, for the same period in 2022.
• NAREIT FFO for the nine months ended September 30, 2023 was $84.7 million, or $1.25 per diluted share, compared to $88.2 million, or $1.31 per diluted share, for the same period in 2022.

CORE FFO

• Core FFO for the three months ended September 30, 2023 was $27.6 million, or $0.41 per diluted share, compared to $25.2 million, or $0.37 per diluted share, for the same period in 2022.
• Core FFO for the nine months ended September 30, 2023 was $84.1 million, or $1.24 per diluted share, compared to $82.9 million, or $1.23 per diluted share, for the same period in 2022.

iii Supplemental - Quarter End September 30, 2023

SAME PROPERTY NOI

• Same Property NOI for the three months ended September 30, 2023 was $37.5 million, a 5.3% increase compared to the same period in 2022.
• Same Property NOI for the nine months ended September 30, 2023 was $106.3 million, a 4.4% increase compared to the same period in 2022.

DIVIDEND

• For the quarter ending September 30, 2023, the Board of Directors declared a quarterly cash distribution of $0.2155 per share, paid on October 13, 2023.

PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY

• As of September 30, 2023, the Company's Leased Occupancy was 95.1%.
• • Total Anchor Leased Occupancy, which includes spaces greater than or equal to 10,000 square feet, was 96.6% and Small Shop Leased Occupancy was 92.4%. Anchor Leased Occupancy decreased 200 basis points, driven primarily by anchor tenant bankruptcies, and Small Shop Leased Occupancy increased 40 basis points on a sequential basis compared to the previous quarter.
  • Leased to Economic Occupancy spread of 250 basis points, which equates to approximately $6.4 million of base rent on an annualized basis.
• Blended re-leasing spreads for comparable new and renewal leases signed in the third quarter were 9.3%.
• Annualized Base Rent PSF ("ABR") as of September 30, 2023 was $19.36, an increase of 2.4% compared to the same period in 2022. Anchor Tenant ABR PSF was $12.45 and Small Shop ABR PSF was $32.61 for the third quarter.
• On August 25, 2023, the Company disposed of Trowbridge Crossing, a 63,000 square foot neighborhood center anchored by a Publix in Sandy Springs, Georgia, for a gross disposition price of $11.5 million. The Company recognized a gain on sale of $1.7 million on the sale of this property.

LIQUIDITY AND CAPITAL STRUCTURE

• InvenTrust had $456.6 million of total liquidity, as of September 30, 2023, comprised of $106.6 million of Pro Rata Cash and $350.0 million of availability under its Revolving Credit Facility. As of September 30, 2023, net assets of IAGM were $7.0 million, inclusive of cash and cash equivalents of $9.2 million.
• InvenTrust has $92.5 million of debt maturing in 2023 and $15.7 million of debt maturing in 2024, as of September 30, 2023. On October 17, 2023, the Company extended the maturity of its $92.5 million of mortgage debt maturing in 2023 by exercising one of its two 12-month extension options. The maturity date of the debt is now November 2, 2024.
• As of September 30, 2023, the Company's weighted average interest rate was 3.88% and the weighted average remaining term was 4.1 years.

iv Supplemental - Quarter End September 30, 2023

2023 GUIDANCE

InvenTrust has updated its 2023 guidance, as summarized in the table below.

(Unaudited, dollars in thousands, except per share amounts)		Current				Previous
Net Income per diluted share (1)	$0.05	-	$0.08	$0.06	-	$0.11
NAREIT FFO per diluted share (2)	$1.66	-	$1.69	$1.64	-	$1.69
Core FFO per diluted share	$1.63	-	$1.65	$1.61	-	$1.64
Same Property NOI ("SPNOI") Growth	4.25%	-	5.00%	4.00%	-	5.00%
General and administrative	$31,500	-	$32,500	$31,250	-	$32,750
Interest expense, net (3)	$34,000	-	$34,500	$34,000	-	$34,500
Adjustments for uncollectibility (4)	50 bps	-	150 bps		50 bps	-	150 bps
Net investment activity (5)	~ $111,000	~ $150,000

The Company's 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:
3. • 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 of which, in management's 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.
4. Interest expense, net, excludes amortization of debt discounts and financing costs, and expected interest income of approximately $3.0 million.
5. Adjustments for uncollectibility are reflected as basis points of expected total revenue.
6. Net investment activity represents anticipated acquisition activity less disposition activity.

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

(Unaudited)		Low End			High End
Net income per diluted share	$	0.05	$	0.08
Depreciation and amortization related to investment properties		1.65			1.65
Gain on sale of investment properties, net		(0.04)			(0.04)
NAREIT FFO Applicable to Common Shares and Dilutive Securities per diluted share		1.66			1.69
Amortization of market-lease intangibles and inducements, net		(0.05)			(0.05)
Straight-line rent adjustments, net		(0.04)			(0.04)
Amortization of debt discounts and financing costs		0.06			0.06
Adjusting items, net (a)		-			(0.01)
Core FFO Applicable to Common Shares and Dilutive Securities per diluted share	$	1.63	$	1.65

1. Adjusting items, net, are primarily 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.

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.

v Supplemental - Quarter End September 30, 2023

Summary Financial Information

In thousands, except share information and per square foot amounts

				Three Months Ended September 30				Nine Months Ended September 30
			2023						2022							2023						2022
Financial Results
Net (loss) income		$	(822)	$		936	$	2,379			$	52,358
Net (loss) income per common share - basic				(0.01)				0.01				0.04				0.78
Net (loss) income per common share - diluted				(0.01)				0.01				0.04				0.77
NAREIT FFO (page 7)				27,565			26,097				84,744				88,201
NAREIT FFO per diluted share				0.41				0.39				1.25				1.31
Core FFO (page 7)				27,642			25,223				84,065				82,875
Core FFO per diluted share				0.41				0.37				1.24				1.23
Same Property NOI (page 6)				37,512			35,632				106,301				101,810
Same Property NOI growth				5.3 %										4.4 %
Adjusted EBITDA (page 7)				36,152			32,754				109,667				100,746
Distributions declared per share		$	0.22	$		0.21	$	0.65			$	0.62
Aggregate distributions declared (as a % of Core FFO)				52.6 %			54.9 %			51.9 %			50.1 %
				As of						As of							As of				As of
			Sept. 30, 2023 (a)			Dec. 31, 2022 (a)				Dec. 31, 2021 (a)					Dec. 31, 2020 (a)
Capital Information
Shares outstanding		67,531,335					67,472,553							67,344,374						71,998,654
Outstanding Debt, net	$	834,206	$			805,253	$				624,289			$		688,422
Less: Pro Rata Cash			(106,559)						(164,448)							(79,628)						(249,854)
Net Debt	$	727,647	$			640,805	$				544,661			$		438,568

1. Outstanding debt, net, and Net Debt as of December 31, 2022, 2021 and 2020 are Pro Rata. Pro Rata Cash as of September 30, 2023 includes the Company's share of cash remaining in the JV.

Pro Rata Debt Metrics (trailing 12 months)
Adjusted EBITDA (trailing 12 months)	$	141,289	$
Net Debt-to-Adjusted EBITDA			5.2x
Fixed charge coverage			4.2x
Net debt to real estate assets, excl property acc depr.	27.4 %
Net debt to total assets, excl property acc depr.	24.5 %
Distributions Paid Per Share
Q3 2023	$0.21550
Q2 2023	$0.21550
Q1 2023	$0.20520
Q4 2022	$0.20520

132,368	$	117,273	$	117,078
4.8x			4.6x		3.7x
5.0x			6.4x		5.9x
24.7 %		22.0 %		17.7 %
21.3 %		19.3 %		14.6 %
	Liquidity and Credit Facility
Cash		$		106,559
Available under credit facility				350,000
Total		$		456,559

	Same Property			Same Property			Total Portfolio
	Three Months Ended September 30		Nine Months Ended September 30		Nine Months Ended September 30
	2023			2022	2023			2022	2023			2022 (a)
Portfolio Metrics
No. of properties	55			55	51			51	62			62
GLA (square feet)	8,794			8,794	8,029			8,028	10,324			9,843
Economic Occupancy	92.9 %			94.1 %	92.6 %			93.8 %	92.6 %			93.5 %
Leased Occupancy	95.3 %			96.2 %	95.0 %			96.1 %	95.1 %			95.6 %
ABR PSF	$19.70			$19.10	$20.04			$19.41	$19.36			$18.91

1. Total Portfolio metrics for the three and nine months ended September 30, 2022 are Pro Rata and have not been recasted to reflect the acquisition of the JV properties in 2023.

• Supplemental - Quarter End September 30, 2023

Condensed Consolidated Balance Sheets

In thousands, except share and per share amounts

		As of
	September 30, 2023		December 31, 2022
Assets		(unaudited)
Investment properties
Land	$	694,668	$	650,764
Building and other improvements		1,951,619			1,825,893
Construction in progress		5,083			5,005
Total		2,651,370			2,481,662
Less accumulated depreciation		(442,953)			(389,361)
Net investment properties		2,208,417			2,092,301
Cash, cash equivalents and restricted cash		104,111			137,762
Investment in unconsolidated entities		3,820			56,131
Intangible assets, net		122,767			101,167
Accounts and rents receivable		33,930			34,528
Deferred costs and other assets, net		56,979			51,145
Total assets	$	2,530,024	$	2,473,034
Liabilities
Debt, net	$	834,206	$	754,551
Accounts payable and accrued expenses		46,629			42,792
Distributions payable		14,553			13,837
Intangible liabilities, net		31,570			29,658
Other liabilities		31,534			28,287
Total liabilities		958,492			869,125
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, 67,531,335 shares
issued and outstanding as of September 30, 2023 and 67,472,553 shares issued and		68			67
outstanding as of December 31, 2022
Additional paid-in capital		5,463,458			5,456,968
Distributions in excess of accumulated net income		(3,921,122)			(3,879,847)
Accumulated comprehensive income		29,128			26,721
Total stockholders' equity		1,571,532			1,603,909
Total liabilities and stockholders' equity	$	2,530,024	$	2,473,034

• Supplemental - Quarter End September 30, 2023

Condensed Consolidated Statements of Operations and Comprehensive Income

In thousands, except share and per share information, unaudited
		Three Months Ended September 30			Nine Months Ended September 30
		2023			2022			2023			2022
Income
Lease income, net	$	63,716	$	57,859	$	192,814	$	174,562
Other property income		346			304			1,060			886
Other fee income		-			594			80			1,988
Total income		64,062			58,757			193,954			177,436
Operating expenses
Depreciation and amortization		30,318			24,021			85,339			71,055
Property operating		11,070			10,787			31,056			28,256
Real estate taxes		8,781			8,937			27,361			25,595
General and administrative		7,610			7,236			23,389			23,239
Total operating expenses		57,779			50,981			167,145			148,145
Other (expense) income
Interest expense, net		(9,555)			(7,689)			(28,441)			(18,129)
Loss on extinguishment of debt		-			-			-			(96)
Gain on sale of investment properties		1,707			-			2,691			36,856
Equity in earnings (losses) of unconsolidated entities		67			352			(447)			3,784
Other income and expense, net		676			497			1,767			652
Total other (expense) income, net		(7,105)			(6,840)			(24,430)			23,067
Net (loss) income	$	(822)	$	936	$	2,379	$	52,358
Weighted-average common shares outstanding - basic		67,531,335			67,427,571			67,521,110			67,398,713
Weighted-average common shares outstanding - diluted		67,531,335			67,547,259			67,720,485			67,558,315
Net (loss) income per common share - basic	$	(0.01)	$	0.01	$	0.04	$	0.78
Net (loss) income per common share - diluted	$	(0.01)	$	0.01	$	0.04	$	0.77
Distributions declared per common share outstanding	$	0.22	$	0.21	$	0.65	$	0.62
Distributions paid per common share outstanding	$	0.22	$	0.21	$	0.64	$	0.62
Comprehensive income
Net (loss) income	$	(822)	$	936	$	2,379	$	52,358
Unrealized gain on derivatives, net		5,978			11,992			13,496			32,912
Reclassification (to) from net income		(4,213)			(770)			(11,089)			747
Comprehensive income	$	943	$	12,158	$	4,786	$	86,017

• Supplemental - Quarter End September 30, 2023