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| 8-K - 8-K - 2018 ESV - InvenTrust Properties Corp. | draftesv8-k2018finaldraft.htm |
Letter to Shareholders 00211114 Dear Fellow Shareholder: Today, InvenTrust Properties (“IVT”, “InvenTrust” or the These elements contributed to a negative perception of the “Company”) is announcing the Company’s new estimated share retail sector by the investment community, which slowed value of $3.14 per share. The reduction in value was driven by investments and money flow into retail real estate. As a result, the overall decline in retail real estate values due to a multitude valuations for retail real estate fell. Malls and apparel-based of factors impacting the retail sector. This new value was power centers were heavily impacted. Per industry experts established by our Board of Directors on May 9, 2018. and analysts, Malls on average fell in value by about 14 percent over last year and Power Centers were not far behind that rate. So what has changed in the retail landscape that has driven Meanwhile, grocery-anchored neighborhood or community this decline in IVT’s value over the last 12 months? First, in centers that are smaller in size and don’t contain multiple big 2017 the retail sector experienced significant store closings by box apparel retailers, largely maintained their value during apparel-based retailers and department stores. Further, the this period of market disruption in our portfolio. The following effect of internet sales also put a dark cloud over other brick- chart shows the year-over-year change in InvenTrust’s estimated and-mortar retailers. share value and indicates that InvenTrust’s portfolio was not immune to these market adjustments: Change in Estimated Share Value from May 2017 to May 2018 1 May 2017 Estimated Share Value $3.29 Same-Store Power Centers ($0.27) Same-Store Power Community & Neighborhood Centers $0.03 Total Same-Store Retail Portfolio 2 ($0.24) Property Acquisitions & Dispositions ($0.13) Payoff of Mortgages $0.20 Estimated Transaction Costs, Closing Costs, and Contingencies Adjustment from Prior Year $0.02 Total Portfolio Transformation Activity $0.09 Total Cash and Other Assets, net of other liabilities 3 ($0.06) Adjustment to the Mid-Point from Prior Year 4 $0.06 May 2018 Estimated Share Value $3.14 (1) Per share value reflects, to the extent applicable, property-level debt. (2) “Same Store” refers to assets included in both the May 1, 2017 estimate of per share value and the May 1, 2018 estimate of per share value and excludes any dispositions and acquisitions between May 1, 2017 and May 1, 2018. “Total Retail Portfolio” includes (a) wholly owned retail properties and (b) properties owned by IAGM Retail Fund I, LLC (“IAGM”), our joint venture with PGGM Private Real Estate Fund. For the joint venture properties described in (b), this table only includes the per share value attributed to the Company based on its percentage ownership. (3) Includes cash and cash equivalents, marketable securities, and certain other assets and liabilities. (4) The Audit Committee recommended and the Board determined an estimated share value at the mid-point value of the Duff & Phelps range was appropriate. May 9, 2018
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