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| 8-K - 8-K NOV 15 2016 - InvenTrust Properties Corp. | a201611-15form8xk.htm |
NAREIT REITWorld
Investor Presentation
November 15 – 16, 2016
1
Forward-Looking Statements in this presentation, which are not historical facts, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not
historical, including statements regarding management’s intentions, beliefs, expectations, representation, plans or predictions of
the future and are typically identified by words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” 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. Factors that
may cause actual results to differ materially from current expectations include, among others, our ability to execute on our
strategy, our ability to return value to our stockholders, the availability of cash flow from operating activities to fund
distributions and our ability to manage our debt. 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 presentation. 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.
The companies depicted in the photographs or otherwise herein may have proprietary interests in their trade names and
trademarks and nothing herein shall be considered to be an endorsement, authorization or approval of InvenTrust Properties
Corp. by the companies. Further, none of these companies are affiliated with InvenTrust Properties Corp. in any manner.
Forward Looking Statements
2
Company Snapshot
Non-traded public REIT founded in 2004. Independent & fully
internalized/self-managed as of January 1, 2015
88 open-air shopping centers / 15.1 million sq. ft. with a Sunbelt
concentration(1)
56% of gross leasable area (“GLA”) consists of grocery anchored
centers(2)
69% of GLA consists of power centers / 31% strip centers
Occupancy – 95%(3) / Average Base Rent (“ABR”) - $15.41(4)
Flexible capital structure with well-staggered maturities
(1) The analysis includes retail properties owned and IAGM JV as of 9/30/2016. GLA and metrics excludes properties under development/redevelopment
(2) % Grocery Anchored displays % of portfolio GLA with a grocery component (on a lease or shadow anchored).
(3) Occupancy includes ground and specialty leases.
(4) ABR is GAAP ABR per SF and includes ground rent and excludes specialty leases.
3
Our Journey to a Pure-Play Retail Platform
20
13
$460 million apartment portfolio sale to
Completed $1.8 billion sale of net lease (non-core) assets to
20
14
$395 million modified “Dutch Auction” tender offer(Repurchased shares at high-end of the range and all shares properly tendered were repurchased)
$1.1 billion sale of select service lodging portfolio to joint venture between
Internalized management and began implementing best-in-class systems
On 12/31/2012, our $12.7 billion diversified portfolio of assets consisted of 794 retail, office, industrial, prison & charter school
properties, 5,311 apartment units, 5,212 student housing beds, 16,345 hotel rooms, certain JVs and marketable securities.
20
15
Spin-off & listing of Xenia on the NYSE
Implemented independent brands and business plans for multi-tenant retail and student housing platforms
As of 2015, total portfolio repositioning (acq. & sales) since 2012 = approx. $4.6B(Not including Xenia)
20
16
Spin-off of “non-core” assets into Highlands REIT, Inc. Highlands is a stand-alone, independent, non-traded REIT.
Sale of student housing platform for gross sales price of $1.4 billion
Added 3 new Board members with retail and real estate experience
Share buyback in place – Modified “Dutch Auction” tender offer.
4
2015 to 2016 Continued Evolution a Retail REIT
(1) This presentation is not an offer to buy or the solicitation of an offer to sell any securities of the Company. The full details of the modified “Dutch Auction” tender offer, including complete instructions on how to tender shares, will be included in the offer to purchase, the
letter of transmittal and other related materials, which the Company will publish, send or give to stockholders upon commencement of the tender offer, and file with the SEC. Stockholders are urged to read carefully the offer to purchase, the letter of transmittal and other
related materials when they become available because they contain important information, including the terms and conditions of the Offer. Stockholders may obtain free copies of the offer to purchase, the letter of transmittal and other related materials after they are filed by
the Company with the SEC at the SEC’s website at www.sec.gov. Each stockholder should consult with its tax advisor, broker, dealer, commercial bank, trust company, custodian or other nominee to evaluate the consequences of tendering or selling Shares in the Offer.
Strong Fundamentals for Open-Air Retail Centers
Retail supply remains at historic lows
High occupancy rates continue with solid demand from
small shops & specialty grocers opening up new stores
Pure-play online retailers opening up brick & mortar
stores
Discounters & off-price concepts are increasing store counts
5
6
Focus on Transformation of Portfolio Continues
Total(1)
Strategic Retail
Portfolio(1)
Non-Strategic
Retail Portfolio(1)
Properties 88 61 27
Gross GLA (2) 15.1M 10.6M 4.5M
% Economic Occupancy 95% 97% 90%
% Grocery Anchored(3) 56% 65% 35%
ABR per SF(3) $15.41 $15.92 $14.13
3-Mile Population ~77K ~79K ~74K
3-Mile Average HHI ~$83K ~89K ~71K
(1) The analysis includes retail properties owned and IAGM JV as of 9/30/2016. GLA and metrics excludes properties under development/redevelopment
(2) Includes ground leases and specialty leases
(3) % Grocery Anchored displays % of portfolio GLA with a grocery component (on a lease or shadow anchored)..
(4) ABR is GAAP ABR per SF and includes ground rent and excludes specialty leases.
7
Market Presence – Concentration on Demographics
88 15.1
# of Properties Million Retail Sq. Ft.
As of 09/30/16, includes IAGM JV
8
Focused on Growth Sunbelt Markets
Our Top Markets by Gross Leasable Area (GLA) as of 9/30/16(1)
(1) The analysis includes retail properties wholly owned and those owned with IAGM JV as of 9/30/2016
(2) Source: Green Street Advisors, as of 09/30/16
13.5%
11.1%
7.9%
6.9%
5.4% 5.3% 5.1%
4.3% 3.8%
3.2%
0.0%
4.0%
8.0%
12.0%
16.0%
Houston Dallas Atlanta Raleigh San Antonio Austin Oklahoma
City
Denver Tampa Orlando
Job Growth
(‘16 – ’20E)2
5.2% 11.8% 8.5% 10.5% 9.5% 13.77% 5.7% 10.6% 9.6% 13.2%
Pop. Growth
(‘16 – ’20E)2
9.6% 9.9% 7.8% 9.8% 9.6% 13.3% 4.8% 9.4% 7.6% 10.6%
Demographics for Top 50 Strip Center Markets in the U.S. (‘16 – ’20E): (2)
Job Growth – 7.1% / Population Growth – 5.3%
9
Staggered Lease Renewals & High Quality Tenants
11.8%
13.2%
15.5%
12.4% 12.2%
2017 2018 2019 2020 2021
0.0%
5.0%
10.0%
15.0%
20.0%
Lease Expiration by % of Total Annualized Rent
As of 09/30/16, includes IAGM JV
Diversified and Balanced Tenant Concentration (by GLA)
5.9%
4.2%
3.3% 2.4%
2.4%
3.0%
2.5%
2.5%
10
Driving Future Growth Through Selective Investment Strategy
Simple, Focused &
Disciplined
Exit Markets
with Insufficient
Asset
Concentration
Sell Non-Strategic
Assets with Low
Growth Potential
Invest In Open-
Air Centers
• Grocery-
anchored
• Power centers
Invest in
Markets w/
Strong
Demographics
• Job, wage &
population
growth
Source Off-
Market
Transactions
Through our
Local Market
Presence
Acquire Properties
that Drive NAV &
Enhance NOI
Growth
Invest in
Redevelopment
Opportunities
11
Investment Strategy Execution
Date Range:
1/1/15 to 11/7/2016
Acquisitions (1) Dispositions (1)
Number of Properties 13 38
GLA (2) 2.2M
Average (~169K)
3.9M
Average (~102K)
Occupancy (3) 96% 92%
ABR per SF(4) $17.71 $13.14
(1) The analysis includes retail properties owned and IAGM JV as of 11/7/2016
(2) Includes ground lease square footage
(3) Includes ground leases, excludes specialty leasing
(4) ABR is cash ABR per SF and excludes ground / specialty leases.
12
Recent Acquisitions – Upgrading the Portfolio
Old Grove
Marketplace
• Oceanside, CA (San Diego)
• Acquired August 2016
• Ralph’s anchored
• 91% occupied
• 81K sq. ft.
• 3-mile Avg. Income -
$68,000
• 3-mile Population –
113,000
Northcross
Commons
• Charlotte, NC
• Acquired Oct. 2016
• Whole Foods anchored
• 89% occupied
• 61K sq. ft.
• 3-mile Avg. Income -
$82,500
• 3-mile Population –
52,300
Windward
Commons
• Alpharetta, GA
• Acquired August 2016
• Kroger anchored
• 99% occupied
• 117K sq. ft.
• 3-mile Avg. Income -
$99,000
• 3-mile Population –
42,000
13
Long-Term Balance Sheet Management
Structure liabilities to reduce cyclical pressures
Well-staggered debt maturities
Increase unencumbered asset base
Maintain flexibility and access to a variety of capital
Use dispositions and student housing sale as a source of capital
Shape capital structure to facilitate investment grade rating
14
Balance Sheet Metrics
As of Sept. 30, 20161
Total Debt / Total Assets 26.6%
Weighted Avg. Interest Rate 4.37%
Weighted Avg. Maturity 3.71 years
Unsecured Credit Facility Availability $450M
$-
$100
$200
$300
$400
$500
2016 2017 2018 2019 2020 Thereafter
Manageable Debt Maturities as of 9/30/16
Term Loan
IVT Share of JV Debt
Wholly Owned
Strategy Moving Forward as a Pure-Play Retail REIT
Focus and drive value as a pure-play retail platform
Concentrate investment capital in high job & population
growth markets - Sunbelt focused
Opportunistically sell non-strategic retail properties
Continue to strengthen our balance sheet and capital
structure
Remain committed to creating stockholder value
15
Appendix
17
InvenTrust Executive Team
Tom McGuinness
President & CEO
35 years in commercial real estate
industry including several
leadership positions with notable
industry associations. McGuinness
was appointed as a director of
InvenTrust in Feb. 2015, Chief
Executive Officer in Nov. 2014 and
has served as President since the
Company initiated its self-
management transactions in March
2014. He is a licensed Real Estate
Broker in the State of Illinois and
holds CLS and CSM accreditations
from the International Council of
Shopping Centers.
Michael Podboy
EVP, CFO & CIO
Podboy’s real estate and retail
experience is evidenced by his
many industry leadership roles. He
is Executive Vice President – Chief
Financial Officer, Chief Investment
Officer and Treasurer for
InvenTrust, a role he assumed in
Nov. 2015. Prior to that, he was
Executive Vice President – Chief
Investment Officer since Nov. 2014
and EVP – Investments from March
2014 to Nov. 2014. Before coming
to InvenTrust Podboy was a senior
manager in the real estate division
for KPMG.
Dave Collins
EVP, Portfolio Mgmt.
Collins has an extensive
background in real estate and
financial management. He is EVP,
Portfolio Management for
InvenTrust, a position he has held
since Jan. 2015. Collins joined the
Company in Oct. 2014 as SVP of
Asset Management and Leasing.
Prior to that he held roles as SVP of
asset and property management for
American Realty Capital Properties
and SVP of development/asset
management for the Carlyle
Development Group.
Nicole Grimaldi
SVP, Capital Markets &
Corporate Finance
Grimaldi joined InvenTrust in 2011
and has more than 16 years of
commercial real estate experience
in varying roles involving debt and
equity investments, asset mgmt.,
and the monetization of complex
real estate transactions across all
asset classes. Prior to joining
InvenTrust, she served as Managing
Director at the Private Bank, where
she oversaw a portfolio of
commercial real estate loan
investments.