IVT 8-K
InvenTrust Properties Corp. (IVT)
8-K
2024-04-30
For: 2024-04-30
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Added on
April 10, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
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(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices and zip code) | ||||||||
(Registrant's telephone number, including area code) | ||||||||
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| (Former name or former address, if changed since last report) | ||||||||
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 - Results of Operations and Financial Condition.
On April 30, 2024, InvenTrust Properties Corp. (the “Company”) issued a press release announcing its results for the quarter ended March 31, 2024. The full text of the press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
On April 30, 2024, the Company posted on its website, at https://www.inventrustproperties.com/investor-relations/, certain supplemental information for the quarter ended March 31, 2024 (the "First Quarter Supplemental"). A copy of the First Quarter Supplemental is attached as Exhibit 99.2 to this Form 8-K and is incorporated herein by reference.
The information furnished under this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, or the Exchange Act, except as set forth by specific reference in such filing.
Item 9.01 - Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: | April 30, 2024 | INVENTRUST PROPERTIES CORP. | ||||||||||||
By: | /s/ Christy L. David | |||||||||||||
Name: | Christy L. David | |||||||||||||
Title: | Executive Vice President, Chief Operating Officer, General Counsel & Secretary | |||||||||||||
 | ||||||||
CONTACT:
Dan Lombardo
Vice President of Investor Relations
630-570-0605
InvenTrust Properties Corp. Reports 2024 First Quarter Results
DOWNERS GROVE, IL – April 30, 2024 – InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today reported financial and operating results for the first quarter of 2024. For the three months ended March 31, 2024 and 2023, the Company reported Net Income of $2.9 million, or $0.04 per diluted share, and $1.1 million, or $0.02 per diluted share, respectively.
First Quarter 2024 Highlights:
•Nareit FFO of $0.45 per diluted share
•Core FFO of $0.44 per diluted share
•Same Property Net Operating Income (“NOI”) growth of 4.1%
•Leased Occupancy as of March 31, 2024 of 96.3%
•Executed 41 leases totaling approximately 180,000 square feet of GLA, of which 165,000 square feet was executed at a blended comparable lease spread of 11.2%
•Executed one anchor tenant lease at a comparable lease spread of 32.5%
•Acquired The Plant, a 57,000 square foot neighborhood center anchored by Sprouts Farmers Market in Chandler, Arizona
“InvenTrust’s 2024 is off to an excellent start, driven by persistent robust leasing activity with over 180,000 square feet of leases executed at double-digit leasing spreads in the first quarter,” said DJ Busch, CEO and President. “Our team continues to find new ways to unlock additional growth and value as we benefit from the strong demand for high-quality retail space in our Sun Belt markets. Our low-levered balance sheet remains primed to provide us the ability to further accelerate growth should accretive capital allocation opportunities arise.”
NET INCOME
•Net Income for the three months ended March 31, 2024 was $2.9 million, or $0.04 per diluted share, compared to Net Income of $1.1 million, or $0.02 per diluted share, for the same period in 2023.
NAREIT FFO
•Nareit FFO for the three months ended March 31, 2024 was $30.8 million, or $0.45 per diluted share, compared to $28.0 million, or $0.41 per diluted share, for the same period in 2023.
CORE FFO
•Core FFO for the three months ended March 31, 2024 was $30.0 million, or $0.44 per diluted share, compared to $27.4 million, or $0.40 per diluted share, for the same period in 2023.
SAME PROPERTY NOI
•Same Property NOI for the three months ended March 31, 2024 was $41.5 million, a 4.1% increase, compared to the same period in 2023.
1 Press Release - Quarter Ended March 31, 2024 |  | |||||||
DIVIDEND
•For the quarter ended March 31, 2024, the Board of Directors declared a quarterly cash distribution of $0.2263 per share, paid on April 15, 2024.
PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY
•As of March 31, 2024, the Company’s Leased Occupancy was 96.3%.
◦Anchor Leased Occupancy, which includes spaces greater than or equal to 10,000 square feet, was 98.6% and Small Shop Leased Occupancy was 92.1%. Anchor Leased Occupancy increased 40 basis points, and Small Shop Leased Occupancy decreased 40 basis points, each on a sequential basis compared to the previous quarter.
◦Leased to Economic Occupancy spread of 290 basis points, which equates to approximately $7.6 million of base rent on an annualized basis.
•Blended re-leasing spreads for comparable new and renewal leases signed in the first quarter were 11.2%.
•Annualized Base Rent PSF (“ABR”) as of March 31, 2024 was $19.61, an increase of 2.6% compared to the same period in 2023. Anchor Tenant ABR PSF was $12.56 and Small Shop ABR PSF was $33.16 for the first quarter.
•On February 1, 2024, the Company acquired The Plant, a 57,000 square foot neighborhood center anchored by Sprouts Farmers Market in Chandler, 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.
LIQUIDITY AND CAPITAL STRUCTURE
•On February 1, 2024, the Company assumed $13.0 million of existing mortgage debt on The Plant, which matures on May 10, 2025.
•InvenTrust had $421.2 million of total liquidity, as of March 31, 2024, comprised of $71.2 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 $35.9 million of debt maturing in 2025, as of March 31, 2024.
•The Company's weighted average interest rate on its debt as of March 31, 2024 was 4.28% and the weighted average remaining term was 3.7 years.
SUBSEQUENT EVENTS
•On April 9, 2024, the Company acquired Moores Mill, a 70,000 square foot neighborhood center anchored by Publix in Atlanta, Georgia for a gross acquisition price of $28.0 million. The Company used cash on hand to fund the acquisition.
2 Press Release - Quarter Ended March 31, 2024 | | |||||||
2024 GUIDANCE
InvenTrust has updated its 2024 guidance, as summarized in the table below.
| (Unaudited, dollars in thousands, except per share amounts) | Current (1) (2) | Previous | |||||||||||||||||||||
| Net Income per diluted share | $0.06 | — | $0.12 | $0.04 | — | $0.10 | |||||||||||||||||
| Nareit FFO per diluted share | $1.71 | — | $1.77 | $1.69 | — | $1.75 | |||||||||||||||||
Core FFO per diluted share (3) | $1.67 | — | $1.71 | $1.66 | — | $1.70 | |||||||||||||||||
| Same Property NOI (“SPNOI”) Growth | 2.75% | — | 3.75% | 2.25% | — | 3.25% | |||||||||||||||||
| General and administrative | $33,000 | — | $34,250 | $33,000 | — | $34,250 | |||||||||||||||||
Interest expense, net (4) | $35,000 | — | $35,750 | $35,000 | — | $35,750 | |||||||||||||||||
Net investment activity (5) | ~ $75,000 | ~ $75,000 | |||||||||||||||||||||
(1)The Company’s guidance excludes projections related to gains or losses on dispositions, gains or losses on debt transactions, and depreciation, amortization, and straight-line rent adjustments related to acquisitions.
(2)The Company’s guidance includes an expectation of uncollectibility, reflected as 50-100 basis points of expected total revenue.
(3)Core FFO per diluted share excludes amortization of market-lease intangibles and inducements, debt extinguishment charges, straight-line rent adjustments, depreciation and amortization of corporate assets, and non-operating income and expense.
(4)Interest expense, net, excludes amortization of debt discounts and financing costs, and expected interest income of approximately $1.0 million.
(5)Net investment activity represents anticipated acquisition activity less disposition activity.
In addition to the foregoing assumptions, the Company's 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 | $ | 0.06 | $ | 0.12 | |||||||
| Depreciation and amortization related to investment properties | 1.65 | 1.65 | |||||||||
| Nareit FFO per diluted share | 1.71 | 1.77 | |||||||||
| Amortization of market-lease intangibles and inducements, net | (0.03) | (0.04) | |||||||||
| 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 | $ | 1.67 | $ | 1.71 | |||||||
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.
EARNINGS CALL INFORMATION
Date: Wednesday, May 1, 2024
Time: 10:00 a.m. ET
Dial-in: (833) 470-1428 / Access Code: 228906
Webcast & Replay Link: https://events.q4inc.com/attendee/631395780
A webcast replay will be available shortly after the conclusion of the presentation using the webcast link above.
3 Press Release - Quarter Ended March 31, 2024 | | |||||||
 | Definitions | ||||
NON-GAAP FINANCIAL MEASURES
This Press Release includes certain financial measures and other terms that are not in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) 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 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 the Company’s unconsolidated joint venture are calculated to reflect the Company’s 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 the Company’s 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
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.
FORMER JOINT VENTURE
On January 18, 2023, the Company acquired the four remaining retail properties from its unconsolidated joint venture, IAGM Retail Fund I, LLC (“IAGM” or “JV”), a joint venture partnership between the Company and PGGM Private Real Estate Fund (“PGGM”), in which it held a 55% ownership share. In connection with the foregoing, IAGM adopted a liquidation plan on January 11, 2023. On December 15, 2023, IAGM was fully liquidated.
4 Press Release - Quarter Ended March 31, 2024 | | |||||||
| Financial Statements | ||||
Condensed Consolidated Balance Sheets
In thousands, except share amounts
| As of March 31 | As of December 31 | ||||||||||
| 2024 | 2023 | ||||||||||
| Assets | (unaudited) | ||||||||||
| Investment properties | |||||||||||
| Land | $ | 698,532 | $ | 694,668 | |||||||
| Building and other improvements | 1,979,896 | 1,956,117 | |||||||||
| Construction in progress | 7,202 | 5,889 | |||||||||
| Total | 2,685,630 | 2,656,674 | |||||||||
| Less accumulated depreciation | (476,541) | (461,352) | |||||||||
| Net investment properties | 2,209,089 | 2,195,322 | |||||||||
| Cash, cash equivalents and restricted cash | 75,116 | 99,763 | |||||||||
| Intangible assets, net | 110,920 | 114,485 | |||||||||
| Accounts and rents receivable | 29,766 | 35,353 | |||||||||
| Deferred costs and other assets, net | 51,477 | 42,408 | |||||||||
| Total assets | $ | 2,476,368 | $ | 2,487,331 | |||||||
| Liabilities | |||||||||||
| Debt, net | $ | 827,527 | $ | 814,568 | |||||||
| Accounts payable and accrued expenses | 28,764 | 44,583 | |||||||||
| Distributions payable | 15,360 | 14,594 | |||||||||
| Intangible liabilities, net | 29,730 | 30,344 | |||||||||
| Other liabilities | 26,938 | 29,198 | |||||||||
| Total liabilities | 928,319 | 933,287 | |||||||||
| 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, 67,874,528 shares issued and outstanding as of March 31, 2024 and 67,807,831 shares issued and outstanding as of December 31, 2023 | 68 | 68 | |||||||||
| Additional paid-in capital | 5,471,191 | 5,468,728 | |||||||||
| Distributions in excess of accumulated net income | (3,945,286) | (3,932,826) | |||||||||
| Accumulated comprehensive income | 22,076 | 18,074 | |||||||||
| Total stockholders' equity | 1,548,049 | 1,554,044 | |||||||||
| Total liabilities and stockholders' equity | $ | 2,476,368 | $ | 2,487,331 | |||||||
5 Press Release - Quarter Ended March 31, 2024 | | |||||||
| Financial Statements, continued | ||||
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
In thousands, except share and per share amounts, unaudited
| Three Months Ended March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Income | |||||||||||
| Lease income, net | $ | 66,493 | $ | 64,830 | |||||||
| Other property income | 305 | 295 | |||||||||
| Other fee income | — | 80 | |||||||||
| Total income | 66,798 | 65,205 | |||||||||
| Operating expenses | |||||||||||
| Depreciation and amortization | 28,168 | 26,758 | |||||||||
| Property operating | 9,999 | 10,230 | |||||||||
| Real estate taxes | 8,981 | 9,628 | |||||||||
| General and administrative | 7,974 | 7,731 | |||||||||
| Total operating expenses | 55,122 | 54,347 | |||||||||
| Other (expense) income | |||||||||||
| Interest expense, net | (9,634) | (9,509) | |||||||||
| Equity in losses of unconsolidated entities | — | (663) | |||||||||
| Other income and expense, net | 858 | 447 | |||||||||
| Total other (expense) income, net | (8,776) | (9,725) | |||||||||
| Net income | $ | 2,900 | $ | 1,133 | |||||||
| Weighted-average common shares outstanding - basic | 67,874,528 | 67,508,641 | |||||||||
| Weighted-average common shares outstanding - diluted | 68,272,050 | 67,654,524 | |||||||||
| Net income per common share - basic | $ | 0.04 | $ | 0.02 | |||||||
| Net income per common share - diluted | $ | 0.04 | $ | 0.02 | |||||||
| Distributions declared per common share outstanding | $ | 0.23 | $ | 0.22 | |||||||
| Distributions paid per common share outstanding | $ | 0.22 | $ | 0.20 | |||||||
| Comprehensive income (loss) | |||||||||||
| Net income | $ | 2,900 | $ | 1,133 | |||||||
| Unrealized gain (loss) on derivatives, net | 7,319 | (3,317) | |||||||||
| Reclassification to net income | (3,317) | (2,892) | |||||||||
| Comprehensive income (loss) | $ | 6,902 | $ | (5,076) | |||||||
6 Press Release - Quarter Ended March 31, 2024 | | |||||||
| Reconciliation of Non-GAAP Measures | ||||
| In thousands | |||||
Same Property NOI
| Three Months Ended March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Income | |||||||||||
| Minimum base rent | $ | 38,538 | $ | 37,739 | |||||||
| Real estate tax recoveries | 7,612 | 8,094 | |||||||||
| Common area maintenance, insurance, and other recoveries | 7,100 | 6,533 | |||||||||
| Ground rent income | 3,877 | 3,954 | |||||||||
| Short-term and other lease income | 1,253 | 1,292 | |||||||||
| Reversal of uncollectible billed rent and recoveries, net | 102 | 300 | |||||||||
| Other property income | 271 | 277 | |||||||||
| Total income | 58,753 | 58,189 | |||||||||
| Operating Expenses | |||||||||||
| Property operating | 8,934 | 9,327 | |||||||||
| Real estate taxes | 8,346 | 9,005 | |||||||||
| Total operating expenses | 17,280 | 18,332 | |||||||||
| Same Property NOI | $ | 41,473 | $ | 39,857 | |||||||
Net Income to Same Property NOI
| Three Months Ended March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Net income | $ | 2,900 | $ | 1,133 | |||||||
| Adjustments to reconcile to non-GAAP metrics: | |||||||||||
| Other income and expense, net | (858) | (447) | |||||||||
| Equity in losses of unconsolidated entities | — | 663 | |||||||||
| Interest expense, net | 9,634 | 9,509 | |||||||||
| Depreciation and amortization | 28,168 | 26,758 | |||||||||
| General and administrative | 7,974 | 7,731 | |||||||||
| Other fee income | — | (80) | |||||||||
| Adjustments to NOI (a) | (2,043) | (2,559) | |||||||||
| NOI | 45,775 | 42,708 | |||||||||
| NOI from other investment properties | (4,302) | (2,851) | |||||||||
| Same Property NOI | $ | 41,473 | $ | 39,857 | |||||||
(a)Adjustments to NOI include lease termination income and expense and GAAP Rent Adjustments.
7 Press Release - Quarter Ended March 31, 2024 | | |||||||
| Reconciliation of Non-GAAP Measures, continued | ||||
| in thousands, except share and per share amounts | |||||
Nareit FFO and Core FFO
The following table presents a reconciliation of Net Income to Nareit FFO and Core FFO Applicable to Common Shares and Dilutive Securities, and provides additional information related to its operations:
| Three Months Ended March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Net income | $ | 2,900 | $ | 1,133 | |||||||
| Depreciation and amortization related to investment properties | 27,946 | 26,543 | |||||||||
| Unconsolidated joint venture adjustments (a) | — | 342 | |||||||||
| Nareit FFO Applicable to Common Shares and Dilutive Securities | 30,846 | 28,018 | |||||||||
| Amortization of market lease intangibles and inducements, net | (576) | (1,516) | |||||||||
| Straight-line rent adjustments, net | (906) | (909) | |||||||||
| Amortization of debt discounts and financing costs | 575 | 854 | |||||||||
| Depreciation and amortization of corporate assets | 222 | 215 | |||||||||
| Non-operating income and expense, net (b) | (180) | 865 | |||||||||
| Unconsolidated joint venture adjustments (c) | — | (156) | |||||||||
| Core FFO Applicable to Common Shares and Dilutive Securities | $ | 29,981 | $ | 27,371 | |||||||
| Weighted average common shares outstanding - basic | 67,874,528 | 67,508,641 | |||||||||
| Dilutive effect of unvested restricted shares (d) | 397,522 | 145,883 | |||||||||
| Weighted average common shares outstanding - diluted | 68,272,050 | 67,654,524 | |||||||||
| Net income per diluted share | $ | 0.04 | $ | 0.02 | |||||||
| Nareit FFO per diluted share | $ | 0.45 | $ | 0.41 | |||||||
| Core FFO per diluted share | $ | 0.44 | $ | 0.40 | |||||||
(a)Reflects the Company’s share of adjustments for IAGM's Nareit FFO on the same basis as InvenTrust.
(b)Reflects items which are not pertinent to measuring on-going operating performance, such as miscellaneous and settlement income, and basis difference recognition arising from acquiring the four remaining properties of IAGM in 2023.
(c)Reflects the Company’s share of adjustments for IAGM's Core FFO on the same basis as InvenTrust.
(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.
8 Press Release - Quarter Ended March 31, 2024 | | |||||||
| Reconciliation of Non-GAAP Measures, continued | ||||
| In thousands | |||||
EBITDA and Adjusted EBITDA
The following table presents a reconciliation of Net Income to EBITDA and Adjusted EBITDA, and provides additional information related to its operations:
| Three Months Ended March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Net income | $ | 2,900 | $ | 1,133 | |||||||
| Interest expense, net | 9,634 | 9,509 | |||||||||
| Income tax expense | 133 | 126 | |||||||||
| Depreciation and amortization | 28,168 | 26,758 | |||||||||
| Unconsolidated joint venture adjustments (a) | — | 423 | |||||||||
| EBITDA | 40,835 | 37,949 | |||||||||
| Amortization of market-lease intangibles and inducements, net | (576) | (1,516) | |||||||||
| Straight-line rent adjustments, net | (906) | (909) | |||||||||
| Non-operating income and expense, net (b) | (180) | 865 | |||||||||
| Unconsolidated joint venture adjustments (c) | — | (172) | |||||||||
| Adjusted EBITDA | $ | 39,173 | $ | 36,217 | |||||||
(a)Reflects the Company's share of adjustments for IAGM's EBITDA on the same basis as InvenTrust.
(b)Reflects items which are not pertinent to measuring on-going operating performance, such as miscellaneous and settlement income, and basis difference recognition arising from acquiring the four remaining properties of IAGM in 2023.
(c)Reflects the Company's share of adjustments for IAGM's Adjusted EBITDA on the same basis as InvenTrust.
Financial Leverage Ratios
Dollars in thousands
The following table presents the calculation of net debt and Net Debt-to-Adjusted EBITDA:
| As of March 31 | As of December 31 | ||||||||||
| 2024 | 2023 | ||||||||||
| Net Debt: | |||||||||||
| Outstanding Debt, net | $ | 827,527 | $ | 814,568 | |||||||
| Less: Cash and cash equivalents | (71,170) | (96,385) | |||||||||
| Net Debt | $ | 756,357 | $ | 718,183 | |||||||
| Net Debt-to-Adjusted EBITDA (trailing 12 months): | |||||||||||
| Net Debt | $ | 756,357 | $ | 718,183 | |||||||
| Adjusted EBITDA (trailing 12 months) | 149,415 | 146,459 | |||||||||
| Net Debt-to-Adjusted EBITDA | 5.1x | 4.9x | |||||||||
9 Press Release - Quarter Ended March 31, 2024 | | |||||||
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 GAAP. The information provided in this press release 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 the Company's Form 10-Q for the quarter ended March 31, 2024. The Company may, but assumes no obligation to, update information in this press release.
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 growth and 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 SEC. 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 press release. 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.
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.
10 Press Release - Quarter Ended March 31, 2024 | | |||||||
 | Table of Contents | ||||
| Page No. | ||||||||
| Introductory Notes | i | |||||||
| Press Release | iii | |||||||
| Financial Information | ||||||||
| Summary Financial Information | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | ||||||||
| Condensed Consolidated Supplemental Details of Assets and Liabilities | ||||||||
| Condensed Consolidated Supplemental Details of Operations | ||||||||
| Reconciliation of Non-GAAP Measures | ||||||||
| Same Property Net Operating Income | ||||||||
| Nareit FFO and Core FFO | ||||||||
| EBITDA and Adjusted EBITDA | ||||||||
| Summary of Outstanding Debt | ||||||||
| Debt Covenants, Interest Rate Swaps, and Capital Expenditures | ||||||||
| Portfolio and Leasing Overview | ||||||||
Markets and Tenant Size | ||||||||
| Top 25 Tenants by ABR and Tenant Merchandise Mix | ||||||||
Comparable & Non-Comparable Lease Statistics | ||||||||
| Tenant Lease Expirations | ||||||||
| Investment Summary | ||||||||
| Acquisitions | ||||||||
| Development Pipeline | ||||||||
| Property Summary | ||||||||
| Components of NAV as of March 31, 2024 | ||||||||
| Glossary of Terms | ||||||||
| 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 U.S. 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 the Company's Form 10-Q for the quarter ended March 31, 2024. The Company 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 2024 guidance, the amount and timing of payment of the Company's next quarterly dividend, the Company's expectation for continued growth and 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 SEC. 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 on pages 6 and 7 and definitions of the Company's non-GAAP measures are included in the Glossary of Terms on page 20.
i | Supplemental - Quarter Ended March 31, 2024 |  | ||||||
| Introductory Notes | ||||
Former Joint Venture
On January 18, 2023, the Company acquired the four remaining retail properties from its unconsolidated joint venture, IAGM Retail Fund I, LLC (“IAGM” or “JV”), a joint venture partnership between the Company and PGGM Private Real Estate Fund (“PGGM”), in which it held a 55% ownership share. In connection with the foregoing, IAGM adopted a liquidation plan on January 11, 2023. On December 15, 2023, IAGM was fully liquidated.
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," as of December 31, 2022 and 2021.
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 Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, 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 Ended March 31, 2024 | | ||||||
| ||||||||
CONTACT:
Dan Lombardo
Vice President of Investor Relations
630-570-0605
InvenTrust Properties Corp. Reports 2024 First Quarter Results
DOWNERS GROVE, IL – April 30, 2024 – InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today reported financial and operating results for the first quarter of 2024. For the three months ended March 31, 2024 and 2023, the Company reported Net Income of $2.9 million, or $0.04 per diluted share, and $1.1 million, or $0.02 per diluted share, respectively.
First Quarter 2024 Highlights:
•Nareit FFO of $0.45 per diluted share
•Core FFO of $0.44 per diluted share
•Same Property Net Operating Income (“NOI”) growth of 4.1%
•Leased Occupancy as of March 31, 2024 of 96.3%
•Executed 41 leases totaling approximately 180,000 square feet of GLA, of which 165,000 square feet was executed at a blended comparable lease spread of 11.2%
•Executed one anchor tenant lease at a comparable lease spread of 32.5%
•Acquired The Plant, a 57,000 square foot neighborhood center anchored by Sprouts Farmers Market in Chandler, Arizona
“InvenTrust’s 2024 is off to an excellent start, driven by persistent robust leasing activity with over 180,000 square feet of leases executed at double-digit leasing spreads in the first quarter,” said DJ Busch, CEO and President. “Our team continues to find new ways to unlock additional growth and value as we benefit from the strong demand for high-quality retail space in our Sun Belt markets. Our low-levered balance sheet remains primed to provide us the ability to further accelerate growth should accretive capital allocation opportunities arise.”
NET INCOME
•Net Income for the three months ended March 31, 2024 was $2.9 million, or $0.04 per diluted share, compared to Net Income of $1.1 million, or $0.02 per diluted share, for the same period in 2023.
NAREIT FFO
•Nareit FFO for the three months ended March 31, 2024 was $30.8 million, or $0.45 per diluted share, compared to $28.0 million, or $0.41 per diluted share, for the same period in 2023.
CORE FFO
•Core FFO for the three months ended March 31, 2024 was $30.0 million, or $0.44 per diluted share, compared to $27.4 million, or $0.40 per diluted share, for the same period in 2023.
SAME PROPERTY NOI
•Same Property NOI for the three months ended March 31, 2024 was $41.5 million, a 4.1% increase, compared to the same period in 2023.
iii | Supplemental - Quarter Ended March 31, 2024 | | ||||||
DIVIDEND
•For the quarter ended March 31, 2024, the Board of Directors declared a quarterly cash distribution of $0.2263 per share, paid on April 15, 2024.
PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY
•As of March 31, 2024, the Company’s Leased Occupancy was 96.3%.
◦Anchor Leased Occupancy, which includes spaces greater than or equal to 10,000 square feet, was 98.6% and Small Shop Leased Occupancy was 92.1%. Anchor Leased Occupancy increased 40 basis points, and Small Shop Leased Occupancy decreased 40 basis points, each on a sequential basis compared to the previous quarter.
◦Leased to Economic Occupancy spread of 290 basis points, which equates to approximately $7.6 million of base rent on an annualized basis.
•Blended re-leasing spreads for comparable new and renewal leases signed in the first quarter were 11.2%.
•Annualized Base Rent PSF (“ABR”) as of March 31, 2024 was $19.61, an increase of 2.6% compared to the same period in 2023. Anchor Tenant ABR PSF was $12.56 and Small Shop ABR PSF was $33.16 for the first quarter.
•On February 1, 2024, the Company acquired The Plant, a 57,000 square foot neighborhood center anchored by Sprouts Farmers Market in Chandler, 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.
LIQUIDITY AND CAPITAL STRUCTURE
•On February 1, 2024, the Company assumed $13.0 million of existing mortgage debt on The Plant, which matures on May 10, 2025.
•InvenTrust had $421.2 million of total liquidity, as of March 31, 2024, comprised of $71.2 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 $35.9 million of debt maturing in 2025, as of March 31, 2024.
•The Company's weighted average interest rate on its debt as of March 31, 2024 was 4.28% and the weighted average remaining term was 3.7 years.
SUBSEQUENT EVENTS
•On April 9, 2024, the Company acquired Moores Mill, a 70,000 square foot neighborhood center anchored by Publix in Atlanta, Georgia for a gross acquisition price of $28.0 million. The Company used cash on hand to fund the acquisition.
iv | Supplemental - Quarter Ended March 31, 2024 | | ||||||
2024 GUIDANCE
InvenTrust has updated its 2024 guidance, as summarized in the table below.
| (Unaudited, dollars in thousands, except per share amounts) | Current (1) (2) | Previous | |||||||||||||||||||||
| Net Income per diluted share | $0.06 | — | $0.12 | $0.04 | — | $0.10 | |||||||||||||||||
| Nareit FFO per diluted share | $1.71 | — | $1.77 | $1.69 | — | $1.75 | |||||||||||||||||
Core FFO per diluted share (3) | $1.67 | — | $1.71 | $1.66 | — | $1.70 | |||||||||||||||||
| Same Property NOI (“SPNOI”) Growth | 2.75% | — | 3.75% | 2.25% | — | 3.25% | |||||||||||||||||
| General and administrative | $33,000 | — | $34,250 | $33,000 | — | $34,250 | |||||||||||||||||
Interest expense, net (4) | $35,000 | — | $35,750 | $35,000 | — | $35,750 | |||||||||||||||||
Net investment activity (5) | ~ $75,000 | ~ $75,000 | |||||||||||||||||||||
(1)The Company’s guidance excludes projections related to gains or losses on dispositions, gains or losses on debt transactions, and depreciation, amortization, and straight-line rent adjustments related to acquisitions.
(2)The Company’s guidance includes an expectation of uncollectibility, reflected as 50-100 basis points of expected total revenue.
(3)Core FFO per diluted share excludes amortization of market-lease intangibles and inducements, debt extinguishment charges, straight-line rent adjustments, depreciation and amortization of corporate assets, and non-operating income and expense.
(4)Interest expense, net, excludes amortization of debt discounts and financing costs, and expected interest income of approximately $1.0 million.
(5)Net investment activity represents anticipated acquisition activity less disposition activity.
In addition to the foregoing assumptions, the Company's 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 | $ | 0.06 | $ | 0.12 | |||||||
| Depreciation and amortization related to investment properties | 1.65 | 1.65 | |||||||||
| Nareit FFO per diluted share | 1.71 | 1.77 | |||||||||
| Amortization of market-lease intangibles and inducements, net | (0.03) | (0.04) | |||||||||
| 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 | $ | 1.67 | $ | 1.71 | |||||||
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 Ended March 31, 2024 | | ||||||
| Summary Financial Information | ||||
| In thousands, except share information and per square foot amounts | |||||
| Three Months Ended March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Financial Results | |||||||||||
| Net income | $ | 2,900 | $ | 1,133 | |||||||
| Net income per common share - basic | 0.04 | 0.02 | |||||||||
| Net income per common share - diluted | 0.04 | 0.02 | |||||||||
| Nareit FFO (page 7) | 30,846 | 28,018 | |||||||||
| Nareit FFO per diluted share | 0.45 | 0.41 | |||||||||
| Core FFO (page 7) | 29,981 | 27,371 | |||||||||
| Core FFO per diluted share | 0.44 | 0.40 | |||||||||
| Same Property NOI (page 6) | 41,473 | 39,857 | |||||||||
| Same Property NOI growth | 4.1 | % | |||||||||
Adjusted EBITDA (page 7) | 39,173 | 36,217 | |||||||||
| Distributions declared per common share - basic | 0.23 | 0.22 | |||||||||
| Aggregate distributions declared (as a % of Core FFO) | 51.2 | % | 53.2 | % | |||||||
| As of Mar. 31, 2024 | As of Dec. 31, 2023 | As of Dec. 31, 2022 (a) | As of Dec. 31, 2021 (a) | ||||||||||||||||||||
| Capital Information | |||||||||||||||||||||||
| Shares outstanding | 67,874,528 | 67,807,831 | 67,472,553 | 67,344,374 | |||||||||||||||||||
| Outstanding Debt, net | $ | 827,527 | $ | 814,568 | $ | 805,253 | $ | 624,289 | |||||||||||||||
| Less: Cash and cash equivalents | (71,170) | (96,385) | (164,448) | (79,628) | |||||||||||||||||||
| Net Debt | $ | 756,357 | $ | 718,183 | $ | 640,805 | $ | 544,661 | |||||||||||||||
| (a) Outstanding debt, net, Cash and cash equivalents, and Net Debt as of December 31, 2022 and 2021 are Pro Rata. | |||||||||||||||||||||||
| Debt Metrics (trailing 12 months) | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 149,415 | $ | 146,459 | $ | 132,368 | $ | 117,273 | |||||||||||||||
| Net Debt-to-Adjusted EBITDA (a) | 5.1x | 4.9x | 4.8x | 4.6x | |||||||||||||||||||
| Fixed charge coverage | 4.3x | 4.3x | 5.0x | 6.4x | |||||||||||||||||||
| Net debt to real estate assets, excl property acc depr. | 28.2 | % | 27.0 | % | 24.7 | % | 22.0 | % | |||||||||||||||
| Net debt to total assets, excl property acc depr. | 25.6 | % | 24.4 | % | 21.3 | % | 19.3 | % | |||||||||||||||
| (a) Net Debt-to-Adjusted EBITDA as of December 31, 2022 and 2021 are Pro Rata. | |||||||||||||||||||||||
| Distributions Paid Per Share | Liquidity and Credit Facility | |||||||||||||||||||||||||
| Q1 2024 | $0.21550 | Cash and cash equivalents | $ | 71,170 | ||||||||||||||||||||||
| Q4 2023 | $0.21550 | Available under credit facility | 350,000 | |||||||||||||||||||||||
| Q3 2023 | $0.21550 | Total | $ | 421,170 | ||||||||||||||||||||||
| Q2 2023 | $0.21550 | |||||||||||||||||||||||||
| Same Property | Total Portfolio | ||||||||||||||||||||||
| Three Months Ended March 31 | Three Months Ended March 31 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Portfolio Metrics | |||||||||||||||||||||||
| No. of properties | 57 | 57 | 63 | 62 | |||||||||||||||||||
| GLA | 9,113 | 9,108 | 10,385 | 10,295 | |||||||||||||||||||
| Economic Occupancy | 93.4 | % | 94.5 | % | 93.4 | % | 94.0 | % | |||||||||||||||
| Leased Occupancy | 96.5 | % | 96.4 | % | 96.3 | % | 96.1 | % | |||||||||||||||
| ABR PSF | $19.95 | $19.54 | $19.61 | $19.12 | |||||||||||||||||||
1 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Condensed Consolidated Balance Sheets | ||||
| In thousands, except share and per share amounts | |||||
| As of | |||||||||||
| March 31, 2024 | December 31, 2023 | ||||||||||
| Assets | (unaudited) | ||||||||||
| Investment properties | |||||||||||
| Land | $ | 698,532 | $ | 694,668 | |||||||
| Building and other improvements | 1,979,896 | 1,956,117 | |||||||||
| Construction in progress | 7,202 | 5,889 | |||||||||
| Total | 2,685,630 | 2,656,674 | |||||||||
| Less accumulated depreciation | (476,541) | (461,352) | |||||||||
| Net investment properties | 2,209,089 | 2,195,322 | |||||||||
| Cash, cash equivalents and restricted cash | 75,116 | 99,763 | |||||||||
| Intangible assets, net | 110,920 | 114,485 | |||||||||
| Accounts and rents receivable | 29,766 | 35,353 | |||||||||
| Deferred costs and other assets, net | 51,477 | 42,408 | |||||||||
| Total assets | $ | 2,476,368 | $ | 2,487,331 | |||||||
| Liabilities | |||||||||||
| Debt, net | $ | 827,527 | $ | 814,568 | |||||||
| Accounts payable and accrued expenses | 28,764 | 44,583 | |||||||||
| Distributions payable | 15,360 | 14,594 | |||||||||
| Intangible liabilities, net | 29,730 | 30,344 | |||||||||
| Other liabilities | 26,938 | 29,198 | |||||||||
| Total liabilities | 928,319 | 933,287 | |||||||||
| 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, 67,874,528 shares issued and outstanding as of March 31, 2024 and 67,807,831 shares issued and outstanding as of December 31, 2023 | 68 | 68 | |||||||||
| Additional paid-in capital | 5,471,191 | 5,468,728 | |||||||||
| Distributions in excess of accumulated net income | (3,945,286) | (3,932,826) | |||||||||
| Accumulated comprehensive income | 22,076 | 18,074 | |||||||||
| Total stockholders' equity | 1,548,049 | 1,554,044 | |||||||||
| Total liabilities and stockholders' equity | $ | 2,476,368 | $ | 2,487,331 | |||||||
2 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | ||||
| In thousands, except share and per share information, unaudited | |||||
| Three Months Ended March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Income | |||||||||||
| Lease income, net | $ | 66,493 | $ | 64,830 | |||||||
| Other property income | 305 | 295 | |||||||||
| Other fee income | — | 80 | |||||||||
| Total income | 66,798 | 65,205 | |||||||||
| Operating expenses | |||||||||||
| Depreciation and amortization | 28,168 | 26,758 | |||||||||
| Property operating | 9,999 | 10,230 | |||||||||
| Real estate taxes | 8,981 | 9,628 | |||||||||
| General and administrative | 7,974 | 7,731 | |||||||||
| Total operating expenses | 55,122 | 54,347 | |||||||||
| Other (expense) income | |||||||||||
| Interest expense, net | (9,634) | (9,509) | |||||||||
| Equity in losses of unconsolidated entities | — | (663) | |||||||||
| Other income and expense, net | 858 | 447 | |||||||||
| Total other (expense) income, net | (8,776) | (9,725) | |||||||||
| Net income | $ | 2,900 | $ | 1,133 | |||||||
| Weighted-average common shares outstanding - basic | 67,874,528 | 67,508,641 | |||||||||
| Weighted-average common shares outstanding - diluted | 68,272,050 | 67,654,524 | |||||||||
| Net income per common share - basic | $ | 0.04 | $ | 0.02 | |||||||
| Net income per common share - diluted | $ | 0.04 | $ | 0.02 | |||||||
| Distributions declared per common share outstanding | $ | 0.23 | $ | 0.22 | |||||||
| Distributions paid per common share outstanding | $ | 0.22 | $ | 0.20 | |||||||
| Comprehensive income (loss) | |||||||||||
| Net income | $ | 2,900 | $ | 1,133 | |||||||
| Unrealized gain (loss) on derivatives, net | 7,319 | (3,317) | |||||||||
| Reclassification to net income | (3,317) | (2,892) | |||||||||
| Comprehensive income (loss) | $ | 6,902 | $ | (5,076) | |||||||
3 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Condensed Consolidated Supplemental Details of Assets and Liabilities | ||||
| In thousands | |||||
| As of | |||||||||||
| March 31, 2024 | December 31, 2023 | ||||||||||
| Accounts and rents receivable | |||||||||||
| Billed base rent, recoveries, and other revenue | $ | 5,722 | $ | 12,215 | |||||||
| Straight-line rent receivables | 24,044 | 23,138 | |||||||||
| Total | $ | 29,766 | $ | 35,353 | |||||||
| Deferred cost and other assets, net | |||||||||||
| Derivative assets | $ | 22,076 | $ | 18,196 | |||||||
| Lease commissions, net | 15,339 | 14,995 | |||||||||
| Prepaid insurance premiums | 4,221 | — | |||||||||
| Other assets | 4,173 | 3,309 | |||||||||
| Deferred costs, net | 2,277 | 2,206 | |||||||||
| Right of use assets, net | 2,149 | 2,253 | |||||||||
| Loan fees, net | 1,242 | 1,449 | |||||||||
| Total | $ | 51,477 | $ | 42,408 | |||||||
| Other liabilities | |||||||||||
| Deferred revenues | $ | 8,715 | $ | 8,878 | |||||||
| Security deposits | 7,113 | 7,127 | |||||||||
| Unearned lease income | 5,692 | 8,061 | |||||||||
| Operating lease liabilities | 2,896 | 3,023 | |||||||||
| Other liabilities | 2,522 | 1,987 | |||||||||
| Derivative liabilities | — | 122 | |||||||||
| Total | $ | 26,938 | $ | 29,198 | |||||||
4 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Condensed Consolidated Supplemental Details of Operations | ||||
| In thousands | |||||
| Three Months Ended March 31 | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| Income | ||||||||||||||
| * | Minimum base rent | $ | 42,447 | $ | 40,476 | |||||||||
| * | Real estate tax recoveries | 8,105 | 8,517 | |||||||||||
| * | Common area maintenance, insurance, and other recoveries | 7,854 | 6,949 | |||||||||||
| * | Ground rent income | 4,737 | 4,710 | |||||||||||
| Amortization of market-lease intangibles and inducements, net | 576 | 1,516 | ||||||||||||
| * | Short-term and other lease income | 1,261 | 1,314 | |||||||||||
| Termination fee income | 561 | 134 | ||||||||||||
| Straight-line rent adjustments, net | 906 | 909 | ||||||||||||
| * | Reversal of uncollectible billed rent and recoveries, net | 46 | 305 | |||||||||||
| Lease income, net | 66,493 | 64,830 | ||||||||||||
| * | Other property income | 305 | 295 | |||||||||||
| Other fee income | — | 80 | ||||||||||||
| Total income | $ | 66,798 | $ | 65,205 | ||||||||||
| Operating expenses | ||||||||||||||
| Depreciation and amortization | $ | 28,168 | $ | 26,758 | ||||||||||
| * | Property operating | 9,999 | 10,230 | |||||||||||
| * | Real estate taxes | 8,981 | 9,628 | |||||||||||
| General and administrative costs | 6,412 | 6,413 | ||||||||||||
| Stock-based compensation costs | 2,191 | 1,968 | ||||||||||||
| Capitalized direct development compensation costs | (629) | (650) | ||||||||||||
| General and administrative expense | 7,974 | 7,731 | ||||||||||||
| Total operating expenses | $ | 55,122 | $ | 54,347 | ||||||||||
| Interest expense, net | ||||||||||||||
| Term loans, including impact of derivatives | $ | 3,382 | $ | 3,787 | ||||||||||
| Senior notes | 3,201 | 3,201 | ||||||||||||
| Mortgages payable | 2,352 | 1,523 | ||||||||||||
| Line of credit facility fees | 133 | 147 | ||||||||||||
| Capitalized interest | (9) | (3) | ||||||||||||
| Amortization of debt discounts and financing costs | 575 | 854 | ||||||||||||
| Total interest expense, net | $ | 9,634 | $ | 9,509 | ||||||||||
| Other income and expense, net | ||||||||||||||
| Interest on cash and cash equivalents | $ | 811 | $ | 538 | ||||||||||
| Income tax expense | (133) | (126) | ||||||||||||
Miscellaneous and settlement income | 180 | 35 | ||||||||||||
| Total other income and expense, net | $ | 858 | $ | 447 | ||||||||||
* Component of Net Operating Income
5 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Reconciliation of Non-GAAP Measures | ||||
| In thousands | |||||
Same Property NOI
| Three Months Ended March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Income | |||||||||||
| Minimum base rent | $ | 38,538 | $ | 37,739 | |||||||
| Real estate tax recoveries | 7,612 | 8,094 | |||||||||
| Common area maintenance, insurance, and other recoveries | 7,100 | 6,533 | |||||||||
| Ground rent income | 3,877 | 3,954 | |||||||||
| Short-term and other lease income | 1,253 | 1,292 | |||||||||
| Reversal of uncollectible billed rent and recoveries, net | 102 | 300 | |||||||||
| Other property income | 271 | 277 | |||||||||
| Total income | 58,753 | 58,189 | |||||||||
| Operating Expenses | |||||||||||
| Property operating | 8,934 | 9,327 | |||||||||
| Real estate taxes | 8,346 | 9,005 | |||||||||
| Total operating expenses | 17,280 | 18,332 | |||||||||
| Same Property NOI | $ | 41,473 | $ | 39,857 | |||||||
| % Change | 4.1 | % | |||||||||
| Same Property count | 57 | ||||||||||
Net Income to Same Property NOI
| Three Months Ended March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Net income | $ | 2,900 | $ | 1,133 | |||||||
| Adjustments to reconcile to non-GAAP metrics: | |||||||||||
| Other income and expense, net | (858) | (447) | |||||||||
| Equity in losses of unconsolidated entities | — | 663 | |||||||||
| Interest expense, net | 9,634 | 9,509 | |||||||||
| Depreciation and amortization | 28,168 | 26,758 | |||||||||
| General and administrative | 7,974 | 7,731 | |||||||||
| Other fee income | — | (80) | |||||||||
| Adjustments to NOI (a) | (2,043) | (2,559) | |||||||||
| NOI | 45,775 | 42,708 | |||||||||
| NOI from other investment properties | (4,302) | (2,851) | |||||||||
| Same Property NOI | $ | 41,473 | $ | 39,857 | |||||||
(a)Adjustments to NOI include lease termination income and expense and GAAP Rent Adjustments.
6 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Reconciliation of Non-GAAP Measures, continued | ||||
| In thousands | |||||
Nareit FFO and Core FFO
| Three Months Ended March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Net income | $ | 2,900 | $ | 1,133 | |||||||
| Depreciation and amortization related to investment properties | 27,946 | 26,543 | |||||||||
| Unconsolidated joint venture adjustments (a) | — | 342 | |||||||||
| Nareit FFO Applicable to Common Shares and Dilutive Securities | 30,846 | 28,018 | |||||||||
| Amortization of market lease intangibles and inducements, net | (576) | (1,516) | |||||||||
| Straight-line rent adjustments, net | (906) | (909) | |||||||||
| Amortization of debt discounts and financing costs | 575 | 854 | |||||||||
| Depreciation and amortization of corporate assets | 222 | 215 | |||||||||
| Non-operating income and expense, net (b) | (180) | 865 | |||||||||
| Unconsolidated joint venture adjustments (c) | — | (156) | |||||||||
| Core FFO Applicable to Common Shares and Dilutive Securities | $ | 29,981 | $ | 27,371 | |||||||
| Weighted average common shares outstanding - basic | 67,874,528 | 67,508,641 | |||||||||
| Dilutive effect of unvested restricted shares (d) | 397,522 | 145,883 | |||||||||
| Weighted average common shares outstanding - diluted | 68,272,050 | 67,654,524 | |||||||||
| Net income per diluted share | $ | 0.04 | $ | 0.02 | |||||||
| Nareit FFO per diluted share | $ | 0.45 | $ | 0.41 | |||||||
| Core FFO per diluted share | $ | 0.44 | $ | 0.40 | |||||||
(a)Reflects the Company’s share of adjustments for IAGM's Nareit FFO on the same basis as InvenTrust.
(b)Reflects items which are not pertinent to measuring on-going operating performance, such as miscellaneous and settlement income, and basis difference recognition arising from acquiring the four remaining properties of IAGM in 2023.
(c)Reflects the Company’s share of adjustments for IAGM's Core FFO on the same basis as InvenTrust.
(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.
EBITDA and Adjusted EBITDA
| Three Months Ended March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Net income | $ | 2,900 | $ | 1,133 | |||||||
| Interest expense, net | 9,634 | 9,509 | |||||||||
| Income tax expense | 133 | 126 | |||||||||
| Depreciation and amortization | 28,168 | 26,758 | |||||||||
| Unconsolidated joint venture adjustments (a) | — | 423 | |||||||||
| EBITDA | 40,835 | 37,949 | |||||||||
| Amortization of market-lease intangibles and inducements, net | (576) | (1,516) | |||||||||
| Straight-line rent adjustments, net | (906) | (909) | |||||||||
| Non-operating income and expense, net (b) | (180) | 865 | |||||||||
| Unconsolidated joint venture adjustments (c) | — | (172) | |||||||||
| Adjusted EBITDA | $ | 39,173 | $ | 36,217 | |||||||
(a)Reflects the Company's share of adjustments for IAGM's EBITDA on the same basis as InvenTrust.
(b)Reflects items which are not pertinent to measuring on-going operating performance, such as miscellaneous and settlement income, and basis difference recognition arising from acquiring the four remaining properties of IAGM in 2023.
(c)Reflects the Company's share of adjustments for IAGM's Adjusted EBITDA on the same basis as InvenTrust.
7 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Summary of Outstanding Debt | ||||
| In thousands | |||||
| Balance as of March 31, 2024 | Proportion of Total Debt | Weighted Average Interest Rate | Weighted Average Years to Maturity | ||||||||||||||||||||
| Fixed rate secured debt | $ | 109,080 | 13% | 4.01% | 2.9 | ||||||||||||||||||
| Variable rate secured debt | 72,468 | 9% | 6.98% | 0.6 | |||||||||||||||||||
| Fixed rate unsecured debt | 650,000 | 78% | 4.03% | 4.2 | |||||||||||||||||||
| Issuance costs, net of accumulated amortization | (4,021) | n/a | n/a | n/a | |||||||||||||||||||
| Total debt, net | $ | 827,527 | 100% | 4.28% | 3.7 | ||||||||||||||||||
| Schedule of Maturities by Year | |||||||||||||||||||||||
| Fixed Rate | Variable Rate | Total Debt, net | |||||||||||||||||||||
| Maturity Year | Secured Debt | Unsecured Debt | Secured Debt | ||||||||||||||||||||
| 2024 | $ | 15,700 | $ | — | $ | 72,468 | $ | 88,168 | |||||||||||||||
| 2025 | 35,880 | — | — | 35,880 | |||||||||||||||||||
| 2026 | — | 200,000 | — | 200,000 | |||||||||||||||||||
| 2027 | 26,000 | 200,000 | — | 226,000 | |||||||||||||||||||
| 2028 | — | — | — | — | |||||||||||||||||||
| Thereafter | 31,500 | 250,000 | — | 281,500 | |||||||||||||||||||
| Issuance costs, net of amortization | (609) | (3,364) | (48) | (4,021) | |||||||||||||||||||
| Total | $ | 108,471 | $ | 646,636 | $ | 72,420 | $ | 827,527 | |||||||||||||||
Debt Maturities
| Maturity Date | Interest Rate | Interest Rate Type | Balance | ||||||||||||||||||||
| Mortgages Payable | |||||||||||||||||||||||
| The Plant | 5/10/2025 | 3.97% | Fixed | $ | 13,000 | ||||||||||||||||||
| The Highlands of Flower Mound | 12/1/2025 | 3.88% | Fixed | 22,880 | |||||||||||||||||||
| Escarpment Village | 7/1/2027 | 3.86% | Fixed | 26,000 | |||||||||||||||||||
| Shops at Arbor Trails | 12/5/2029 | 4.12% | Fixed | 31,500 | |||||||||||||||||||
| Total | 93,380 | ||||||||||||||||||||||
| Pooled Mortgages Payable | |||||||||||||||||||||||
| Plantation Grove | 6/5/2024 | 4.24% | Fixed | 7,300 | |||||||||||||||||||
| Suncrest Village | 6/5/2024 | 4.24% | Fixed | 8,400 | |||||||||||||||||||
| Total | 15,700 | ||||||||||||||||||||||
| Cross collateralized (a) | 11/2/2024 | 1M SOFR + 1.65% (b) | Variable | 72,468 | |||||||||||||||||||
| Total mortgages payable | 5.19% | 181,548 | |||||||||||||||||||||
| Term Loan | |||||||||||||||||||||||
| $200.0 million 5 years | 9/22/2026 | 2.81% (c) | Fixed | 100,000 | |||||||||||||||||||
| $200.0 million 5 years | 9/22/2026 | 2.81% (c) | Fixed | 100,000 | |||||||||||||||||||
| $200.0 million 5.5 years | 3/22/2027 | 2.77% (c) | Fixed | 50,000 | |||||||||||||||||||
| $200.0 million 5.5 years | 3/22/2027 | 2.76% (c) | Fixed | 50,000 | |||||||||||||||||||
| $200.0 million 5.5 years | 3/22/2027 | 4.99% (c) | Fixed | 100,000 | |||||||||||||||||||
| Total | 400,000 | ||||||||||||||||||||||
| Senior Notes | |||||||||||||||||||||||
| $150.0 million Series A Notes | 8/11/2029 | 5.07% | Fixed | 150,000 | |||||||||||||||||||
| $100.0 million Series B Notes | 8/11/2032 | 5.20% | Fixed | 100,000 | |||||||||||||||||||
| Total | 250,000 | ||||||||||||||||||||||
| Grand total | 4.28% | $ | 831,548 | ||||||||||||||||||||
(a)The pooled mortgage is cross collateralized by three properties and has one 12-month extension option.
(b)As of March 31, 2024, 1-Month Term SOFR was 5.33%.
(c)Interest rates reflect the fixed rates achieved through the Company's interest rate swaps.
8 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Debt Covenants, Interest Rate Swaps, and Capital Expenditures | ||||
| Unaudited, dollars in thousands | |||||
Debt Covenants (trailing 12 months)
| For the quarter ended | ||||||||||||||||||||||||||||||||||||||
| Description | Term Loan Covenants | Senior Note Covenants | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | ||||||||||||||||||||||||||||||||
| Leverage Ratio | < 60.0% | < 60.0% | 29.2% | 29.0% | 29.7% | 29.6% | ||||||||||||||||||||||||||||||||
| Fixed Charge Coverage Ratio | > 1.50 | > 1.50 | 4.32 | 4.27 | 4.06 | 4.07 | ||||||||||||||||||||||||||||||||
| Maximum Dividend Payout | < 95% | N/A | 49.2% | 49.8% | 52.3% | 52.4% | ||||||||||||||||||||||||||||||||
| Maximum Secured Recourse Debt | < 10% of Total Asset Value | < 10% of Total Asset Value | —% | —% | —% | —% | ||||||||||||||||||||||||||||||||
| Unsecured Interest Coverage Ratio | > 1.75 | > 1.75 | 5.62 | 5.53 | 5.43 | 5.10 | ||||||||||||||||||||||||||||||||
| Unsecured Leverage Ratio | < 60% | < 60% | 28.0% | 28.2% | 28.9% | 29.1% | ||||||||||||||||||||||||||||||||
Interest Rate Swaps
As of March 31, 2024, the Company is party to five effective interest rate swap agreements and two interest rate forward swap agreements, which address the periods between the maturity dates of the effective swaps and the maturity dates of the Amended Term Loan Agreement. In tandem, the interest rate swaps achieve fixed interest rates for a constant notional amount through the maturity dates of the Amended Term Loan Agreement.
| Effective Interest Rate Swaps | Notional Amount | Company Receives Variable Rate of | Company Pays Fixed Rate of | Fixed Rate Achieved | Effective Date | Maturity Date | ||||||||||||||||||||||||||||||||
| 5.5 year term loan | $ | 50,000 | 1-Month SOFR | 1.47% | 2.77% | 12/2/2019 | 6/21/2024 | |||||||||||||||||||||||||||||||
| 5.5 year term loan | 50,000 | 1-Month SOFR | 1.46% | 2.76% | 12/2/2019 | 6/21/2024 | ||||||||||||||||||||||||||||||||
| 5.5 year term loan | 100,000 | 1-Month SOFR | 3.69% | 4.99% | 4/3/2023 | 3/22/2027 | ||||||||||||||||||||||||||||||||
| 5 year term loan | 100,000 | 1-Month SOFR | 1.51% | 2.81% | 12/21/2023 | 9/22/2026 | ||||||||||||||||||||||||||||||||
| 5 year term loan | 100,000 | 1-Month SOFR | 1.51% | 2.81% | 12/21/2023 | 9/22/2026 | ||||||||||||||||||||||||||||||||
| $ | 400,000 | |||||||||||||||||||||||||||||||||||||
| Forward Interest Rate Swaps | Notional Amount | Company Receives Variable Rate of | Company Pays Fixed Rate of | Fixed Rate Achieved | Effective Date | Maturity Date | ||||||||||||||||||||||||||||||||
| 5.5 year term loan | $ | 50,000 | 1-Month SOFR | 1.48% | 2.78% | 6/21/2024 | 3/22/2027 | |||||||||||||||||||||||||||||||
| 5.5 year term loan | 50,000 | 1-Month SOFR | 1.54% | 2.84% | 6/21/2024 | 3/22/2027 | ||||||||||||||||||||||||||||||||
| $ | 100,000 | |||||||||||||||||||||||||||||||||||||
Capital Expenditures
| Three Months Ended March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Capital Expenditures: | |||||||||||
| Tenant improvements | $ | 2,298 | $ | 2,075 | |||||||
| Leasing commissions | 991 | 475 | |||||||||
| Property improvements | 2,574 | 2,659 | |||||||||
| Total capital expenditures (a) | 5,863 | 5,209 | |||||||||
| Investment in development and redevelopment projects (b) | 1,230 | 809 | |||||||||
| Grand total | $ | 7,093 | $ | 6,018 | |||||||
(a)As of March 31, 2024 and 2023, total accrued leasing and maintenance capital expenditures are $4,740 and $4,500, respectively. These accrued amounts are not reflected in the table above.
(b)As of March 31, 2024 and 2023, total accrued investment in development and redevelopment projects are $848 and $264, respectively. These accrued amounts are not reflected in the table above.
9 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Markets and Tenant Size | ||||
| GLA and dollar amounts in thousands, except per square foot amounts | |||||
| Market | No. of Properties | Leased Occupancy | ABR | ABR psf | ABR as % of Total | GLA | GLA as % of Total | |||||||||||||||||||||||||||||||||||||
| Austin-Round Rock, TX | 8 | 96.5 | % | $ | 32,674 | $16.77 | 17.3 | % | 2,056 | 19.8 | % | |||||||||||||||||||||||||||||||||
| Houston-Sugar Land-Baytown, TX | 6 | 94.3 | % | 20,750 | 16.43 | 11.0 | % | 1,409 | 13.6 | % | ||||||||||||||||||||||||||||||||||
| Miami-Fort Lauderdale-Miami Beach, FL | 3 | 98.1 | % | 19,139 | 23.27 | 10.1 | % | 859 | 8.3 | % | ||||||||||||||||||||||||||||||||||
| Dallas-Fort Worth-Arlington, TX | 7 | 98.1 | % | 18,628 | 20.37 | 9.8 | % | 939 | 9.0 | % | ||||||||||||||||||||||||||||||||||
| Atlanta Metro Area, GA | 9 | 96.5 | % | 18,367 | 20.10 | 9.7 | % | 999 | 9.6 | % | ||||||||||||||||||||||||||||||||||
| Raleigh-Cary-Durham, NC | 5 | 96.6 | % | 13,487 | 20.29 | 7.1 | % | 688 | 6.6 | % | ||||||||||||||||||||||||||||||||||
| So. California - Los Angeles, CA | 3 | 93.8 | % | 11,209 | 21.00 | 5.9 | % | 579 | 5.6 | % | ||||||||||||||||||||||||||||||||||
| Charlotte-Gastonia-Concord, NC | 4 | 98.0 | % | 9,681 | 20.20 | 5.1 | % | 515 | 5.0 | % | ||||||||||||||||||||||||||||||||||
| Orlando-Kissimmee, FL | 4 | 98.8 | % | 9,116 | 24.45 | 4.8 | % | 378 | 3.6 | % | ||||||||||||||||||||||||||||||||||
| Tampa-St. Petersburg, FL | 3 | 91.8 | % | 8,706 | 13.39 | 4.6 | % | 753 | 7.3 | % | ||||||||||||||||||||||||||||||||||
| Washington D.C., MD | 2 | 97.4 | % | 6,281 | 36.56 | 3.3 | % | 181 | 1.7 | % | ||||||||||||||||||||||||||||||||||
| San Antonio, TX | 2 | 93.7 | % | 6,082 | 26.19 | 3.2 | % | 261 | 2.5 | % | ||||||||||||||||||||||||||||||||||
| So. California - San Diego, CA | 2 | 97.1 | % | 5,696 | 26.02 | 3.0 | % | 225 | 2.2 | % | ||||||||||||||||||||||||||||||||||
| So. California - Inland Empire, CA | 2 | 99.1 | % | 5,012 | 23.92 | 2.6 | % | 246 | 2.4 | % | ||||||||||||||||||||||||||||||||||
| Richmond, VA | 1 | 100 | % | 2,378 | 16.18 | 1.3 | % | 177 | 1.7 | % | ||||||||||||||||||||||||||||||||||
| Phoenix, AZ | 1 | 100 | % | 1,634 | 28.74 | 0.9 | % | 57 | 0.5 | % | ||||||||||||||||||||||||||||||||||
| Cape Coral-Fort Myers, FL | 1 | 98.0 | % | 574 | 9.68 | 0.3 | % | 63 | 0.6 | % | ||||||||||||||||||||||||||||||||||
| Total | 63 | 96.3 | % | $ | 189,414 | $19.61 | 100 | % | 10,385 | 100 | % | |||||||||||||||||||||||||||||||||
| State | No. of Properties | Leased Occupancy | ABR | ABR psf | ABR as % of Total | GLA | GLA as % of Total | |||||||||||||||||||||||||||||||||||||
| Texas | 23 | 96.0 | % | $ | 78,134 | $17.93 | 41.3 | % | 4,665 | 44.9 | % | |||||||||||||||||||||||||||||||||
| Florida | 11 | 95.9 | % | 37,535 | 19.71 | 19.8 | % | 2,053 | 19.8 | % | ||||||||||||||||||||||||||||||||||
| North Carolina | 9 | 97.2 | % | 23,168 | 20.25 | 12.2 | % | 1,203 | 11.6 | % | ||||||||||||||||||||||||||||||||||
| California | 7 | 95.7 | % | 21,917 | 22.78 | 11.5 | % | 1,050 | 10.2 | % | ||||||||||||||||||||||||||||||||||
| Georgia | 9 | 96.5 | % | 18,367 | 20.10 | 9.7 | % | 999 | 9.6 | % | ||||||||||||||||||||||||||||||||||
| Maryland | 2 | 98.7 | % | 6,281 | 36.56 | 3.3 | % | 181 | 1.7 | % | ||||||||||||||||||||||||||||||||||
| Virginia | 1 | 100 | % | 2,378 | 16.18 | 1.3 | % | 177 | 1.7 | % | ||||||||||||||||||||||||||||||||||
| Arizona | 1 | 100 | % | 1,634 | 28.74 | 0.9 | % | 57 | 0.5 | % | ||||||||||||||||||||||||||||||||||
| Total | 63 | 96.3 | % | $ | 189,414 | $19.61 | 100 | % | 10,385 | 100 | % | |||||||||||||||||||||||||||||||||
| Tenant type | Economic Occupancy | Leased Occupancy | ABR | ABR PSF | GLA | |||||||||||||||||||||||||||
20,000 SF+ (a) | 96.2 | % | 98.7 | % | $ | 61,075 | $ | 11.29 | 5,658 | |||||||||||||||||||||||
10,000 - 19,999 SF (a) | 94.6 | % | 97.8 | % | 18,680 | 19.80 | 998 | |||||||||||||||||||||||||
5,000 - 9,999 SF (b) | 85.7 | % | 92.6 | % | 17,030 | 27.07 | 734 | |||||||||||||||||||||||||
1 - 4,999 SF (b) | 89.4 | % | 92.0 | % | 92,629 | 34.58 | 2,995 | |||||||||||||||||||||||||
| Total | 93.4 | % | 96.3 | % | $ | 189,414 | $ | 19.61 | 10,385 | |||||||||||||||||||||||
Anchor Tenants (a) | 96.0 | % | 98.6 | % | $ | 79,755 | $ | 12.56 | 6,656 | |||||||||||||||||||||||
Small Shops (b) | 88.7 | % | 92.1 | % | $ | 109,659 | $ | 33.16 | 3,729 | |||||||||||||||||||||||
(a)Tenants with square footage greater than or equal to 10,000 square feet are considered Anchor Tenants.
(b)Tenants with square footage less than 10,000 square feet are considered Small Shops.
10 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Top 25 Tenants by Total ABR and Tenant Merchandise Mix | ||||
| In thousands | |||||
| Parent Name | Tenant Name/Count | Credit Rating (a) | No. of Leases | ABR | % of Total ABR | GLA | % of Total Occ.GLA | ||||||||||||||||||||||||||||||||||||||||
| 1 | Kroger | Kroger 7 / Kroger Gas 1 / Harris Teeter 4 / Ralphs 3 | BBB | 15 | $ | 9,676 | 5.1 | % | 864 | 8.3 | % | ||||||||||||||||||||||||||||||||||||
| 2 | Publix Super Markets, Inc. | Publix 11 / Publix Liquor 3 | N/A | 14 | 6,204 | 3.3 | % | 541 | 5.2 | % | |||||||||||||||||||||||||||||||||||||
| 3 | TJX Companies | Marshalls 7 / HomeGoods 5 / TJ Maxx 2 | A | 14 | 4,886 | 2.6 | % | 397 | 3.8 | % | |||||||||||||||||||||||||||||||||||||
| 4 | Albertson's | Tom Thumb 2 / Market Street 2 / Safeway 1 / Albertsons 1 | BB+ | 6 | 4,359 | 2.3 | % | 365 | 3.5 | % | |||||||||||||||||||||||||||||||||||||
| 5 | H.E.B. | H.E.B. 4 / H.E.B. Staff Office 1 | N/A | 5 | 4,220 | 2.2 | % | 447 | 4.3 | % | |||||||||||||||||||||||||||||||||||||
| 6 | Amazon, Inc. | Whole Foods Market 5 | AA | 5 | 2,701 | 1.4 | % | 194 | 1.9 | % | |||||||||||||||||||||||||||||||||||||
| 7 | BC Partners | PetSmart 7 | B+ | 7 | 2,472 | 1.3 | % | 151 | 1.5 | % | |||||||||||||||||||||||||||||||||||||
| 8 | Best Buy | BBB+ | 4 | 2,270 | 1.2 | % | 138 | 1.3 | % | ||||||||||||||||||||||||||||||||||||||
| 9 | Apollo Global Management, Inc. | Michaels 7 | CCC+ | 7 | 2,052 | 1.1 | % | 161 | 1.6 | % | |||||||||||||||||||||||||||||||||||||
| 10 | Ulta Beauty Inc. | N/A | 8 | 2,028 | 1.1 | % | 83 | 0.8 | % | ||||||||||||||||||||||||||||||||||||||
| 11 | Dick's Sporting Goods, Inc. | Dick's Sporting Goods 2 / Going, Going, Gone 1 | BBB | 3 | 1,876 | 1.0 | % | 171 | 1.6 | % | |||||||||||||||||||||||||||||||||||||
| 12 | Sprouts Farmers Market | N/A | 3 | 1,798 | 0.9 | % | 85 | 0.8 | % | ||||||||||||||||||||||||||||||||||||||
| 13 | Trader Joe's | N/A | 4 | 1,793 | 0.9 | % | 51 | 0.5 | % | ||||||||||||||||||||||||||||||||||||||
| 14 | Costco Wholesale | A+ | 2 | 1,735 | 0.9 | % | 298 | 2.9 | % | ||||||||||||||||||||||||||||||||||||||
| 15 | Five Below, Inc. | N/A | 9 | 1,707 | 0.9 | % | 86 | 0.8 | % | ||||||||||||||||||||||||||||||||||||||
| 16 | Wells Fargo | BBB+ | 9 | 1,547 | 0.8 | % | 37 | 0.4 | % | ||||||||||||||||||||||||||||||||||||||
| 17 | Ross Dress For Less | BBB+ | 4 | 1,500 | 0.8 | % | 120 | 1.2 | % | ||||||||||||||||||||||||||||||||||||||
| 18 | Bank of America | A- | 6 | 1,415 | 0.7 | % | 34 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||
| 19 | Petco Health and Wellness Company, Inc. | Petco 6 | B | 6 | 1,364 | 0.7 | % | 79 | 0.8 | % | |||||||||||||||||||||||||||||||||||||
| 20 | Massage Envy | N/A | 12 | 1,339 | 0.7 | % | 41 | 0.4 | % | ||||||||||||||||||||||||||||||||||||||
| 21 | Kingswood Capital Management | World Market 5 | N/A | 5 | 1,236 | 0.7 | % | 91 | 0.9 | % | |||||||||||||||||||||||||||||||||||||
| 22 | DSW, Inc. | N/A | 4 | 1,234 | 0.7 | % | 73 | 0.7 | % | ||||||||||||||||||||||||||||||||||||||
| 23 | Xponential Fitness | Club Pilates 6 / CycleBar 3 / Pure Barre 3 /StretchLab 3 / YogaSix 2 / Rumble 1 | N/A | 18 | 1,222 | 0.6 | % | 34 | 0.3 | % | |||||||||||||||||||||||||||||||||||||
| 24 | Truist Bank | A | 5 | 1,163 | 0.6 | % | 26 | 0.2 | % | ||||||||||||||||||||||||||||||||||||||
| 25 | Starbucks Corporation | BBB+ | 15 | 1,161 | 0.6 | % | 26 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||
| Totals | 190 | $ | 62,958 | 33.1 | % | 4,593 | 44.3 | % | |||||||||||||||||||||||||||||||||||||||
(a) Reflects the most recently available S&P credit rating.
Tenant Merchandise Mix
| Tenant Category | ABR | % of Total ABR | ||||||||||||
| Grocery / Drug | $ | 37,570 | 19.8 | % | ||||||||||
| Quick Service Restaurants | 23,321 | 12.3 | % | |||||||||||
| Personal Health and Beauty Services | 21,367 | 11.3 | % | |||||||||||
| Medical | 17,483 | 9.2 | % | |||||||||||
| Full Service Restaurants | 16,220 | 8.6 | % | |||||||||||
| Off Price | 9,763 | 5.2 | % | |||||||||||
| Banks | 8,652 | 4.6 | % | |||||||||||
| Apparel / Accessories | 8,622 | 4.6 | % | |||||||||||
| Fitness | 7,691 | 4.1 | % | |||||||||||
| Pets | 6,333 | 3.3 | % | |||||||||||
| Office / Communications | 5,932 | 3.1 | % | |||||||||||
| Hobby / Sports | 5,673 | 3.0 | % | |||||||||||
| Home | 5,066 | 2.7 | % | |||||||||||
| Other Essential Retail / Services | 4,697 | 2.5 | % | |||||||||||
| Other | 4,962 | 2.6 | % | |||||||||||
| Office (Non Financial, Non-Medical) | 2,530 | 1.3 | % | |||||||||||
| Entertainment | 1,943 | 1.0 | % | |||||||||||
| Hardware / Auto | 1,589 | 0.8 | % | |||||||||||
| $ | 189,414 | 100 | % | |||||||||||
11 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Comparable and Non-Comparable Lease Statistics | ||||
| GLA in thousands | |||||
The Company's Retail Portfolio had 364 thousand square feet expiring during the three months ended March 31, 2024, of which 328 thousand square feet was re-leased. This achieved a retention rate of approximately 90%. The following tables summarize the activity for leases that were executed during the three months ended March 31, 2024.
| For the three months ended March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| No. of Leases Executed | GLA | New Contractual Rent ($PSF) (a) | Prior Contractual Rent ($PSF) (a) | % Change over Prior Lease Rent (a) | Weighted Average Lease Term (Years) | Tenant Improvement Allowance ($ PSF) | Lease Commissions ($ PSF) | ||||||||||||||||||||||||||||||||||||||||
| All Tenants | |||||||||||||||||||||||||||||||||||||||||||||||
| Comparable Renewal Leases | 31 | 133 | $29.08 | $26.59 | 9.4% | 5.0 | $— | $— | |||||||||||||||||||||||||||||||||||||||
| Comparable New Leases | 3 | 32 | 19.77 | 15.90 | 24.3% | 10.5 | 42.18 | 10.21 | |||||||||||||||||||||||||||||||||||||||
| Non-Comparable Renewal and New Leases | 7 | 15 | 39.61 | N/A | N/A | 6.5 | 23.50 | 10.93 | |||||||||||||||||||||||||||||||||||||||
| Total | 41 | 180 | $27.28 | $24.54 | 11.2% | 6.1 | $9.42 | $2.71 | |||||||||||||||||||||||||||||||||||||||
(a)Non-comparable leases are not included in totals. | |||||||||||||||||||||||||||||||||||||||||||||||
Trailing Four Quarters ended March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| No. of Leases Executed | GLA | New Contractual Rent ($PSF) | Prior Contractual Rent ($PSF) | % Change over Prior Lease Rent | Weighted Average Lease Term (Years) | Tenant Improvement Allowance ($ PSF) | Lease Commissions ($ PSF) | ||||||||||||||||||||||||||||||||||||||||
| Comparable Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| Total New and Renewal Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| Q1 2024 | 34 | 165 | $27.28 | $24.54 | 11.2% | 6.1 | $8.14 | $1.97 | |||||||||||||||||||||||||||||||||||||||
| Q4 2023 | 68 | 429 | 20.21 | 17.74 | 13.9% | 6.5 | 7.97 | 3.00 | |||||||||||||||||||||||||||||||||||||||
| Q3 2023 | 53 | 168 | 28.66 | 26.23 | 9.3% | 5.8 | 2.61 | 1.14 | |||||||||||||||||||||||||||||||||||||||
| Q2 2023 | 53 | 244 | 20.82 | 19.67 | 5.8% | 5.2 | 1.14 | 0.54 | |||||||||||||||||||||||||||||||||||||||
| Total | 208 | 1,006 | $22.93 | $20.74 | 10.6% | 6.0 | $5.49 | $1.92 | |||||||||||||||||||||||||||||||||||||||
| No. of Leases Executed | GLA | New Contractual Rent ($PSF) | Prior Contractual Rent ($PSF) | % Change over Prior Lease Rent | Weighted Average Lease Term (Years) | Tenant Improvement Allowance ($ PSF) | Lease Commissions ($ PSF) | ||||||||||||||||||||||||||||||||||||||||
| New Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| Q1 2024 | 3 | 32 | $19.77 | $15.90 | 24.3% | 10.5 | $42.18 | $10.21 | |||||||||||||||||||||||||||||||||||||||
| Q4 2023 | 15 | 112 | 21.40 | 15.98 | 33.9% | 10.7 | 29.75 | 11.26 | |||||||||||||||||||||||||||||||||||||||
| Q3 2023 | 8 | 17 | 35.65 | 30.71 | 16.1% | 9.4 | 24.05 | 11.35 | |||||||||||||||||||||||||||||||||||||||
| Q2 2023 | 5 | 8 | 36.68 | 31.81 | 15.3% | 7.9 | 9.41 | 15.90 | |||||||||||||||||||||||||||||||||||||||
| Total | 31 | 169 | $23.27 | $18.21 | 27.8% | 10.4 | $30.53 | $11.30 | |||||||||||||||||||||||||||||||||||||||
| No. of Leases Executed | GLA | New Contractual Rent ($PSF) | Prior Contractual Rent ($PSF) | % Change over Prior Lease Rent | Weighted Average Lease Term (Years) | Tenant Improvement Allowance ($ PSF) | Lease Commissions ($ PSF) | ||||||||||||||||||||||||||||||||||||||||
| Renewals | |||||||||||||||||||||||||||||||||||||||||||||||
| Q1 2024 | 31 | 133 | $29.08 | $26.59 | 9.4% | 5.0 | $— | $— | |||||||||||||||||||||||||||||||||||||||
| Q4 2023 | 53 | 317 | 19.79 | 18.37 | 7.7% | 5.0 | 0.29 | 0.08 | |||||||||||||||||||||||||||||||||||||||
| Q3 2023 | 45 | 151 | 27.88 | 25.72 | 8.4% | 5.4 | 0.21 | — | |||||||||||||||||||||||||||||||||||||||
| Q2 2023 | 48 | 236 | 20.26 | 19.25 | 5.2% | 5.1 | 0.85 | — | |||||||||||||||||||||||||||||||||||||||
| Total | 177 | 837 | $22.69 | $21.10 | 7.5% | 5.1 | $0.39 | $0.03 | |||||||||||||||||||||||||||||||||||||||
| No. of Leases Executed | GLA | New Contractual Rent ($PSF) | Weighted Average Lease Term (Years) | Tenant Improvement Allowance ($ PSF) | Lease Commissions ($ PSF) | ||||||||||||||||||||||||||||||||||||||||||
| Non-Comparable Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| Q1 2024 | 7 | 15 | $39.61 | 6.5 | $23.50 | $10.93 | |||||||||||||||||||||||||||||||||||||||||
| Q4 2023 | 18 | 124 | 16.26 | 5.2 | 13.93 | 5.51 | |||||||||||||||||||||||||||||||||||||||||
| Q3 2023 | 21 | 105 | 25.49 | 8.7 | 19.25 | 11.63 | |||||||||||||||||||||||||||||||||||||||||
| Q2 2023 | 24 | 103 | 24.79 | 8.9 | 17.14 | 8.10 | |||||||||||||||||||||||||||||||||||||||||
| Total | 70 | 347 | $22.58 | 7.4 | $16.90 | $8.36 | |||||||||||||||||||||||||||||||||||||||||
12 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Tenant Lease Expirations | ||||
| GLA and ABR in thousands, except per square foot amounts | |||||
| Lease Expiration Year | No. of Expiring Leases | GLA of Expiring Leases | Percent of Total GLA of Expiring Leases | ABR of Expiring Leases | Percent of Total ABR | Expiring ABR PSF (a) | ||||||||||||||||||||||||||||||||||||||
| Anchor Tenants | ||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 10 | 237 | 3.7 | % | $ | 2,981 | 3.6 | % | $12.59 | |||||||||||||||||||||||||||||||||||
| 2025 | 20 | 800 | 12.5 | % | 8,796 | 10.7 | % | 11.00 | ||||||||||||||||||||||||||||||||||||
| 2026 | 15 | 457 | 7.2 | % | 6,030 | 7.3 | % | 13.21 | ||||||||||||||||||||||||||||||||||||
| 2027 | 40 | 1,342 | 21.0 | % | 19,605 | 23.7 | % | 14.61 | ||||||||||||||||||||||||||||||||||||
| 2028 | 24 | 578 | 9.0 | % | 8,612 | 10.4 | % | 14.89 | ||||||||||||||||||||||||||||||||||||
| 2029 | 23 | 748 | 11.7 | % | 9,000 | 10.9 | % | 12.04 | ||||||||||||||||||||||||||||||||||||
| 2030 | 9 | 248 | 3.9 | % | 3,852 | 4.7 | % | 15.53 | ||||||||||||||||||||||||||||||||||||
| 2031 | 7 | 323 | 5.1 | % | 3,221 | 3.9 | % | 9.97 | ||||||||||||||||||||||||||||||||||||
| 2032 | 9 | 345 | 5.4 | % | 4,537 | 5.5 | % | 13.15 | ||||||||||||||||||||||||||||||||||||
| 2033 | 8 | 250 | 3.9 | % | 3,700 | 4.5 | % | 14.82 | ||||||||||||||||||||||||||||||||||||
| Thereafter | 22 | 1,061 | 16.6 | % | 12,210 | 14.8 | % | 11.51 | ||||||||||||||||||||||||||||||||||||
Other (b) | — | — | — | % | — | — | % | — | ||||||||||||||||||||||||||||||||||||
| Totals | 187 | 6,389 | 100 | % | $ | 82,544 | 100 | % | $12.92 | |||||||||||||||||||||||||||||||||||
| Vacant space | 268 | |||||||||||||||||||||||||||||||||||||||||||
| Total | 6,657 | |||||||||||||||||||||||||||||||||||||||||||
| Small Shops | ||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 63 | 144 | 4.4 | % | $ | 4,961 | 4.1 | % | $34.28 | |||||||||||||||||||||||||||||||||||
| 2025 | 147 | 323 | 9.8 | % | 10,405 | 8.6 | % | 32.20 | ||||||||||||||||||||||||||||||||||||
| 2026 | 204 | 508 | 15.4 | % | 16,711 | 14.0 | % | 32.90 | ||||||||||||||||||||||||||||||||||||
| 2027 | 234 | 558 | 16.9 | % | 19,744 | 16.5 | % | 35.41 | ||||||||||||||||||||||||||||||||||||
| 2028 | 202 | 471 | 14.2 | % | 17,082 | 14.3 | % | 36.23 | ||||||||||||||||||||||||||||||||||||
| 2029 | 149 | 421 | 12.7 | % | 15,148 | 12.7 | % | 36.01 | ||||||||||||||||||||||||||||||||||||
| 2030 | 74 | 189 | 5.7 | % | 7,397 | 6.2 | % | 39.05 | ||||||||||||||||||||||||||||||||||||
| 2031 | 71 | 213 | 6.4 | % | 8,038 | 6.7 | % | 37.76 | ||||||||||||||||||||||||||||||||||||
| 2032 | 81 | 204 | 6.2 | % | 8,136 | 6.8 | % | 39.83 | ||||||||||||||||||||||||||||||||||||
| 2033 | 54 | 140 | 4.2 | % | 6,345 | 5.3 | % | 45.35 | ||||||||||||||||||||||||||||||||||||
| Thereafter | 35 | 116 | 3.5 | % | 5,019 | 4.2 | % | 43.40 | ||||||||||||||||||||||||||||||||||||
Other (b) | 7 | 19 | 0.6 | % | 744 | 0.6 | % | 39.21 | ||||||||||||||||||||||||||||||||||||
| Totals | 1,321 | 3,306 | 100 | % | $ | 119,730 | 100 | % | $36.22 | |||||||||||||||||||||||||||||||||||
| Vacant space | 422 | |||||||||||||||||||||||||||||||||||||||||||
| Total | 3,728 | |||||||||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 73 | 381 | 3.9 | % | $ | 7,942 | 3.9 | % | $20.85 | |||||||||||||||||||||||||||||||||||
| 2025 | 167 | 1,123 | 11.6 | % | 19,201 | 9.4 | % | 17.10 | ||||||||||||||||||||||||||||||||||||
| 2026 | 219 | 965 | 10.0 | % | 22,741 | 11.2 | % | 23.57 | ||||||||||||||||||||||||||||||||||||
| 2027 | 274 | 1,900 | 19.6 | % | 39,349 | 19.5 | % | 20.71 | ||||||||||||||||||||||||||||||||||||
| 2028 | 226 | 1,049 | 10.8 | % | 25,694 | 12.7 | % | 24.49 | ||||||||||||||||||||||||||||||||||||
| 2029 | 172 | 1,169 | 12.1 | % | 24,148 | 11.9 | % | 20.66 | ||||||||||||||||||||||||||||||||||||
| 2030 | 83 | 437 | 4.5 | % | 11,249 | 5.6 | % | 25.74 | ||||||||||||||||||||||||||||||||||||
| 2031 | 78 | 536 | 5.5 | % | 11,259 | 5.6 | % | 21.01 | ||||||||||||||||||||||||||||||||||||
| 2032 | 90 | 549 | 5.7 | % | 12,673 | 6.3 | % | 23.08 | ||||||||||||||||||||||||||||||||||||
| 2033 | 62 | 390 | 4.0 | % | 10,045 | 5.0 | % | 25.76 | ||||||||||||||||||||||||||||||||||||
| Thereafter | 57 | 1,177 | 12.1 | % | 17,229 | 8.5 | % | 14.64 | ||||||||||||||||||||||||||||||||||||
Other (b) | 7 | 19 | 0.2 | % | 744 | 0.4 | % | 39.16 | ||||||||||||||||||||||||||||||||||||
| Totals | 1,508 | 9,695 | 100 | % | $ | 202,274 | 100 | % | $20.86 | |||||||||||||||||||||||||||||||||||
| Vacant space | 690 | |||||||||||||||||||||||||||||||||||||||||||
| Total | 10,385 | |||||||||||||||||||||||||||||||||||||||||||
(a)Expiring ABR PSF reflects ABR PSF at the time of lease expiration.
(b)Other lease expirations include the GLA, ABR and ABR PSF of month-to-month leases.
13 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Acquisitions | ||||
| Dollars and GLA in thousands | |||||
Acquisitions
| Date | Property Name | Market | Acquisition Price | GLA | Leased Occ. | Anchor Tenants (a) | ||||||||||||||||||||||||||||||||
| 2/1/24 | The Plant | Phoenix, Arizona | $ | 29,500 | 57 | 100% | Sprouts Farmers Market | |||||||||||||||||||||||||||||||
(a)Grocers listed first and bolded.
14 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Development Pipeline | ||||
| In thousands | |||||
| Active Redevelopments | Estimated Completion Quarter (a) | Projected Incremental Costs | Estimated Incremental Yield on Cost | |||||||||||||||||||||||||||||||||||
| Property | Market | Project Description | Costs to Date | |||||||||||||||||||||||||||||||||||
| Southern Palm Crossing | Miami-Fort Lauderdale-Miami Beach, FL | Redevelopment of a former bank building for a freestanding building with a drive-through. | 2Q - 2024 | $ | 1,500 | $ | 1,500 | |||||||||||||||||||||||||||||||
| Buckhead Crossing | Atlanta Metro Area, GA | Anchor space repositioning, including re-merchandising of the shopping center. | 2Q - 2024 | 800 | 500 | |||||||||||||||||||||||||||||||||
| Pavilion at LaQuinta | So. California - Inland Empire | Redevelopment of a freestanding building. | 3Q - 2024 | 1,000 | 600 | |||||||||||||||||||||||||||||||||
| Antoine Town Center | Houston-Sugar Land-Baytown, TX | New development, including addition of an outparcel building with a drive-through. | 3Q - 2024 | 300 | 200 | |||||||||||||||||||||||||||||||||
| Sarasota Pavilion | Tampa-St. Petersburg, FL | Redevelopment and remerchandising of a former anchor space into new tenant spaces, including an 18,000 square foot anchor space, a 14,000 square foot anchor space, and additional small shop space. | 3Q - 2025 | 8,100 | 1,000 | |||||||||||||||||||||||||||||||||
| Sandy Plains Centre | Atlanta Metro Area, GA | Redevelopment and expansion to accommodate a 10,000 square foot swim school and additional small shop space. | 4Q - 2025 | 3,200 | 600 | |||||||||||||||||||||||||||||||||
| River Oaks | So. California - Los Angeles, CA | Redevelopment of an outparcel and common area improvements. | 4Q - 2025 | 500 | — | |||||||||||||||||||||||||||||||||
| Totals | $ | 15,400 | $ | 4,400 | 7-10% | |||||||||||||||||||||||||||||||||
(a) The Company's estimated timing of completion may be impacted by factors outside of management's control, including global supply constraints or government restrictions. | ||||||||||||||||||||||||||||||||||||||
| Recently Completed Redevelopments | ||||||||||||||||||||||||||||||||||||||
| Property | Market | Project Description | Completion Quarter | Completed Costs | ||||||||||||||||||||||||||||||||||
| Cyfair Town Center | Houston-Sugar Land-Baytown, TX | Outparcel redevelopment to include a drive-through. | 3Q - 2023 | $ | 650 | |||||||||||||||||||||||||||||||||
| Potential Developments and Redevelopments | ||||||||||||||||||||||||||||||||||||||
| Projects shown below are listed alphabetically, are in various stages of planning, and may or may not commence due to a number of factors. | ||||||||||||||||||||||||||||||||||||||
| Property | Market | Project Description | ||||||||||||||||||||||||||||||||||||
| Bay Colony | Houston-Sugar Land-Baytown, TX | Redevelopment of an existing outparcel building. | ||||||||||||||||||||||||||||||||||||
| Bay Landing | Cape Coral-Fort Myers, FL | New development of building area adjacent to existing stores. | ||||||||||||||||||||||||||||||||||||
| Buckhead Crossing | Atlanta Metro Area, GA | Anchor space repositioning, including re-merchandising of the shopping center and addition of a freestanding building. | ||||||||||||||||||||||||||||||||||||
| Campus Marketplace | So. California - San Diego, CA | Redevelopment of an existing outparcel building. | ||||||||||||||||||||||||||||||||||||
| Custer Creek Village | Dallas-Fort Worth-Arlington, TX | Redevelopment of an outparcel and common area improvements. | ||||||||||||||||||||||||||||||||||||
| Garden Village | So. California - Los Angeles, CA | Demolition of outparcel buildings and reconstruction for freestanding buildings with drive-throughs. | ||||||||||||||||||||||||||||||||||||
| Gateway Market Center | Tampa-St. Petersburg, FL | Extensive repositioning and reconfiguration of the shopping center to right size anchor space, add freestanding buildings and improve vehicular access. | ||||||||||||||||||||||||||||||||||||
| Kyle Marketplace | Austin-Round Rock, TX | New development, including addition of outparcel buildings. | ||||||||||||||||||||||||||||||||||||
| Pavilion at LaQuinta | So. California - Inland Empire, CA | Anchor repositioning. | ||||||||||||||||||||||||||||||||||||
| Plantation Grove | Orlando-Kissimmee, FL | Redevelopment and expansion of the shopping center. | ||||||||||||||||||||||||||||||||||||
| River Oaks | So. California - Los Angeles, CA | Anchor repositioning and expansion. | ||||||||||||||||||||||||||||||||||||
| Sarasota Pavilion | Tampa-St. Petersburg, FL | Anchor space repositioning, including re-merchandising of the shopping center and outparcel development. | ||||||||||||||||||||||||||||||||||||
| Shops at Arbor Trails | Austin-Round Rock, TX | Redevelopment of an outparcel and common area improvements. | ||||||||||||||||||||||||||||||||||||
| The Parke | Austin-Round Rock, TX | Anchor repositioning and expansion. | ||||||||||||||||||||||||||||||||||||
| Westpark Shopping Center | Richmond, VA | New development, including addition of outparcel buildings. | ||||||||||||||||||||||||||||||||||||
15 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Property Summary, by Total Market GLA | ||||
| GLA in thousands | |||||
| Property | Market | State | Center Type (a) | GLA | Leased Occupancy | ABR PSF | Grocery Anchor (b) | Major Anchors (c) | |||||||||||||||||||||
| 1 | Escarpment Village | Austin-Round Rock | TX | N | 170 | 100% | $21.89 | Yes | HEB | ||||||||||||||||||||
| 2 | Kyle Marketplace | Austin-Round Rock | TX | C | 225 | 100% | $17.63 | Yes | HEB | ||||||||||||||||||||
| 3 | Market at Westlake | Austin-Round Rock | TX | N | 30 | 100% | $21.81 | No | Walgreens | ||||||||||||||||||||
| 4 | Scofield Crossing | Austin-Round Rock | TX | N | 95 | 98.7% | $17.72 | Yes | Hana World Market, Goodwill | ||||||||||||||||||||
| 5 | Shops at Arbor Trails | Austin-Round Rock | TX | C | 357 | 97.7% | $13.71 | Yes | Costco Wholesale, Whole Foods Market, Haverty's Furniture, Marshalls | ||||||||||||||||||||
| 6 | Shops at the Galleria | Austin-Round Rock | TX | P | 537 | 95.2% | $14.25 | No | Best Buy, Five Below, Home Consignment Center, HomeGoods, Lowe's, Marshalls, Michaels, OfficeMax, Old Navy, PetSmart, Signature Bridal Salon and Bestow Bridal, Spec's Wine Spirits & Finer Foods, World Market | ||||||||||||||||||||
| 7 | The Parke | Austin-Round Rock | TX | P | 406 | 99.1% | $16.94 | Yes | Whole Foods Market, Dick's Sporting Goods, DSW, Five Below, La-Z Boy Furniture Galleries, Marshalls, Michaels, Nordstrom, Old Navy, Petco, Ulta, World Market | ||||||||||||||||||||
| 8 | University Oaks | Austin-Round Rock | TX | P | 236 | 86.0% | $21.72 | No | DSW, IKEA*, J.C. Penney*, Jo-Ann Fabrics, PetSmart, Ross Dress for Less, Spec's Wine Spirits & Finer Foods | ||||||||||||||||||||
| 9 | Custer Creek Village | Dallas-Fort Worth-Arlington | TX | N | 96 | 95.1% | $15.52 | Yes | Tom Thumb | ||||||||||||||||||||
| 10 | Eldorado Marketplace | Dallas-Fort Worth-Arlington | TX | C | 189 | 100.0% | $24.21 | Yes | Market Street, PetSmart, Phenix Salon Suites | ||||||||||||||||||||
| 11 | Prestonwood Town Center | Dallas-Fort Worth-Arlington | TX | P | 233 | 96.5% | $20.48 | Yes | Walmart*, Barnes & Noble, Burlington, DSW, HomeGoods, Michaels, Petco, Ulta | ||||||||||||||||||||
| 12 | Riverview Village | Dallas-Fort Worth-Arlington | TX | N | 89 | 100% | $13.34 | Yes | Tom Thumb, Petco | ||||||||||||||||||||
| 13 | Riverwalk Market | Dallas-Fort Worth-Arlington | TX | N | 90 | 100% | $21.86 | Yes | Market Street | ||||||||||||||||||||
| 14 | Shops at Fairview Town Center | Dallas-Fort Worth-Arlington | TX | N | 66 | 97% | $24.86 | Yes | Whole Foods Market | ||||||||||||||||||||
| 15 | The Highlands of Flower Mound | Dallas-Fort Worth-Arlington | TX | P | 175 | 98.2% | $19.72 | Yes | Target*, Market by Macy's, Michaels, Party City, Skechers, World Market | ||||||||||||||||||||
| 16 | Antoine Town Center | Houston-Sugar Land-Baytown | TX | N | 110 | 98.6% | $14.49 | Yes | Kroger | ||||||||||||||||||||
| 17 | Bay Colony (d) | Houston-Sugar Land-Baytown | TX | C | 416 | 95.5% | $16.77 | Yes | HEB, Kohl's, LA Fitness, Petco, Social Security Administration, The University of Texas Medical Branch, Walgreens | ||||||||||||||||||||
| 18 | Blackhawk Town Center (d) | Houston-Sugar Land-Baytown | TX | N | 127 | 99.1% | $14.00 | Yes | HEB, Walgreens | ||||||||||||||||||||
| 19 | Cyfair Town Center (d) | Houston-Sugar Land-Baytown | TX | C | 434 | 92.1% | $16.62 | Yes | Kroger, Cinemark USA, Crunch Fitness, J.C. Penney | ||||||||||||||||||||
| 20 | Eldridge Town Center & Windermere Village | Houston-Sugar Land-Baytown | TX | C | 175 | 92.5% | $17.70 | Yes | Kroger, Kohl's*, Petco | ||||||||||||||||||||
| 21 | Stables Town Center II (d) | Houston-Sugar Land-Baytown | TX | N | 148 | 92.6% | $17.37 | Yes | Kroger | ||||||||||||||||||||
| 22 | Sonterra Village | San Antonio | TX | N | 42 | 91% | $34.62 | Yes | Trader Joe's | ||||||||||||||||||||
| 23 | Stone Ridge Market | San Antonio | TX | C | 219 | 94.1% | $24.50 | Yes | HEB Plus*, Burlington, PetSmart | ||||||||||||||||||||
| Total Texas | 4,665 | 96.0% | $17.93 | ||||||||||||||||||||||||||
| 24 | Bay Landing | Cape Coral - Fort Meyers | FL | N | 63 | 98.0% | $9.68 | Yes | The Fresh Market, HomeGoods | ||||||||||||||||||||
| 25 | PGA Plaza Palm Beach Gardens | Miami-Ft Lauderdale-Miami Beach | FL | C | 121 | 96.8% | $35.85 | Yes | Trader Joe's, Marshalls, Ulta | ||||||||||||||||||||
| 26 | Southern Palm Crossing | Miami-Ft Lauderdale-Miami Beach | FL | P | 345 | 99.2% | $17.26 | Yes | Costco Wholesale, Going Going Gone, Marshalls | ||||||||||||||||||||
| 27 | Westfork & Paraiso | Miami-Ft Lauderdale-Miami Beach | FL | N | 393 | 97.5% | $24.85 | Yes | Costco Wholesale*, Publix, Baptist Outpatient Services, Dollar Tree, Pembroke Pink Imaging, Petco, Regal Cinemas, Ross Dress for Less, Skechers, TJ Maxx, Ulta | ||||||||||||||||||||
| 28 | Lakeside & Lakeside Crossing | Orlando - Kissimmee | FL | N | 76 | 100% | $47.44 | Yes | Trader Joe's | ||||||||||||||||||||
| 29 | Plantation Grove | Orlando - Kissimmee | FL | N | 74 | 98.1% | $15.74 | Yes | Publix | ||||||||||||||||||||
| 30 | Rio Pinar Plaza | Orlando - Kissimmee | FL | N | 131 | 99.3% | $19.40 | Yes | Publix, Planet Fitness | ||||||||||||||||||||
| 31 | Suncrest Village | Orlando - Kissimmee | FL | N | 97 | 97.9% | $19.60 | Yes | Publix, Orange County Tax Collector | ||||||||||||||||||||
| 32 | Gateway Market Center | Tampa - St. Petersburg | FL | P | 231 | 95.1% | $10.95 | Yes | Publix, Target*, Beall's, HomeGoods, Party City, PetSmart, TJ Maxx | ||||||||||||||||||||
| 33 | Peachland Promenade | Tampa - St. Petersburg | FL | N | 177 | 98.6% | $14.87 | Yes | Publix, Goodwill, My Salon Suite, Planet Fitness | ||||||||||||||||||||
| 34 | Sarasota Pavilion | Tampa - St. Petersburg | FL | P | 345 | 86.0% | $14.47 | Yes | Publix, Bank of America, Beall's, Marshalls, Michaels, PetSmart, Ross Dress for Less, Truist Bank | ||||||||||||||||||||
| Total Florida | 2,053 | 95.9% | $19.71 | ||||||||||||||||||||||||||
16 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Property Summary, by Total Market GLA | ||||
| GLA in thousands | |||||
| Property | Market | State | Center Type (a) | GLA | Leased Occupancy | ABR PSF | Grocery Anchor (b) | Major Anchors (c) | |||||||||||||||||||||
| 35 | Eastfield Village | Charlotte-Gastonia-Concord | NC | N | 96 | 94.6% | $18.10 | Yes | Food Lion, Gold's Gym | ||||||||||||||||||||
| 36 | Northcross Commons | Charlotte-Gastonia-Concord | NC | N | 63 | 100% | $27.78 | Yes | Whole Foods Market | ||||||||||||||||||||
| 37 | Sycamore Commons | Charlotte-Gastonia-Concord | NC | P | 265 | 100.0% | $20.25 | Yes | Costco Wholesale*, Best Buy, Dick's Sporting Goods, Lowe's*, Michaels, Old Navy, Ulta, World Market | ||||||||||||||||||||
| 38 | The Shoppes at Davis Lake (d) | Charlotte-Gastonia-Concord | NC | N | 91 | 94.6% | $16.68 | Yes | Harris Teeter | ||||||||||||||||||||
| 39 | Bent Tree Plaza | Raleigh-Cary-Durham | NC | N | 80 | 100% | $15.01 | Yes | Food Lion | ||||||||||||||||||||
| 40 | Cary Park Town Center | Raleigh-Cary-Durham | NC | N | 93 | 100% | $17.66 | Yes | Harris Teeter, CVS | ||||||||||||||||||||
| 41 | Commons at University Place | Raleigh-Cary-Durham | NC | N | 92 | 100% | $17.18 | Yes | Harris Teeter, CVS | ||||||||||||||||||||
| 42 | Renaissance Center | Raleigh-Cary-Durham | NC | P | 363 | 93.6% | $23.68 | No | Ashley HomeStore, Best Buy, Nordstrom Rack, Old Navy, Popshelf, REI, Ulta, UNC Health Care, World Market | ||||||||||||||||||||
| 43 | The Pointe at Creedmoor | Raleigh-Cary-Durham | NC | N | 60 | 100% | $16.87 | Yes | Harris Teeter | ||||||||||||||||||||
| Total North Carolina | 1,203 | 97.2% | $20.25 | ||||||||||||||||||||||||||
| 44 | Bear Creek Village Center | So. California - Inland Empire | CA | N | 80 | 100% | $25.61 | Yes | Stater Brothers | ||||||||||||||||||||
| 45 | Pavilion at LaQuinta | So. California - Inland Empire | CA | P | 166 | 98.6% | $22.91 | Yes | Sprouts Farmers Market, Best Buy, DSW, OfficeMax, PGA TOUR Superstore | ||||||||||||||||||||
| 46 | Garden Village | So. California - Los Angeles | CA | N | 117 | 90.2% | $18.86 | Yes | Albertson's, Rite Aid | ||||||||||||||||||||
| 47 | River Oaks | So. California - Los Angeles | CA | C | 275 | 95.5% | $20.48 | Yes | Sprouts Farmers Market, Target, Big 5 Sporting Goods, Five Below, Total Wine & More, Ulta | ||||||||||||||||||||
| 48 | Stevenson Ranch | So. California - Los Angeles | CA | C | 187 | 93.5% | $23.09 | Yes | Ralphs, Furniture Design Center, LA Fitness, PetSmart | ||||||||||||||||||||
| 49 | Campus Marketplace | So. California - San Diego | CA | N | 144 | 96.9% | $30.85 | Yes | Ralphs, CVS, Discovery Isle Child Development Center | ||||||||||||||||||||
| 50 | Old Grove Marketplace | So. California - San Diego | CA | N | 81 | 97.5% | $17.93 | Yes | Ralphs, Lowe's* | ||||||||||||||||||||
| Total California | 1,050 | 95.7% | $22.78 | ||||||||||||||||||||||||||
| 51 | Buckhead Crossing | Atlanta Metro Area | GA | P | 221 | 93.3% | $22.86 | No | HomeGoods, Marshalls, Michaels, Ross Dress for Less, The Tile Shop | ||||||||||||||||||||
| 52 | Coweta Crossing | Atlanta Metro Area | GA | N | 68 | 100% | $11.10 | Yes | Publix | ||||||||||||||||||||
| 53 | Kennesaw Marketplace | Atlanta Metro Area | GA | C | 130 | 94.3% | $35.55 | Yes | Whole Foods Market, Academy Sports + Outdoors*, Guitar Center*, Hobby Lobby*, Petco* | ||||||||||||||||||||
| 54 | Plaza Midtown | Atlanta Metro Area | GA | N | 70 | 97.0% | $27.51 | Yes | Publix | ||||||||||||||||||||
| 55 | Rose Creek | Atlanta Metro Area | GA | N | 70 | 100% | $11.51 | Yes | Publix | ||||||||||||||||||||
| 56 | Sandy Plains Centre | Atlanta Metro Area | GA | C | 135 | 98.9% | $23.60 | Yes | Kroger, Pet Supplies Plus, Walgreens* | ||||||||||||||||||||
| 57 | The Centre on Hugh Howell | Atlanta Metro Area | GA | N | 83 | 94.3% | $13.20 | No | Crunch Fitness | ||||||||||||||||||||
| 58 | Thomas Crossroads | Atlanta Metro Area | GA | N | 105 | 95.0% | $10.01 | Yes | Kroger | ||||||||||||||||||||
| 59 | Windward Commons | Atlanta Metro Area | GA | N | 117 | 100% | $15.53 | Yes | Kroger | ||||||||||||||||||||
| Total Georgia | 999 | 96.5% | $20.10 | ||||||||||||||||||||||||||
| 60 | The Shops at Town Center | Washington D.C | MD | N | 125 | 98.1% | $30.67 | Yes | Safeway | ||||||||||||||||||||
| 61 | Travilah Square Shopping Center | Washington D.C | MD | N | 56 | 96.0% | $50.84 | Yes | Trader Joe's | ||||||||||||||||||||
| Total Maryland | 181 | 98.7% | $36.56 | ||||||||||||||||||||||||||
| 62 | Westpark Shopping Center | Richmond Metro Area | VA | C | 177 | 100% | $16.18 | Yes | Publix, Painted Tree Boutiques, Planet Fitness, The Tile Shop | ||||||||||||||||||||
| Total Virginia | 177 | 100% | $16.18 | ||||||||||||||||||||||||||
17 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Property Summary, by Total Market GLA | ||||
| GLA in thousands | |||||
| Property | Market | State | Center Type (a) | GLA | Leased Occupancy | ABR PSF | Grocery Anchor (b) | Major Anchors (c) | |||||||||||||||||||||
| 63 | The Plant (d) | Phoenix | AZ | N | 57 | 100% | $28.74 | Yes | Sprouts Farmers Market | ||||||||||||||||||||
| Total Arizona | 57 | 100% | $28.74 | ||||||||||||||||||||||||||
| Grand Totals | 10,385 | 96.3% | $19.61 | ||||||||||||||||||||||||||
(a)N = Neighborhood Center, P = Power Center, C = Community Center
(b)Grocers may be leased or shadow-anchors and includes traditional, specialty grocers, and large format retailers (i.e. Walmart, Target, and Costco).
(c)Grocers listed first and bolded, remaining anchor tenants are shown alphabetically. Shadow anchors are noted with an asterisk.
(d)Properties are excluded from Same Property for the three months ended March 31, 2024.
18 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Components of Net Asset Value as of March 31, 2024 | ||||
| In thousands, except share information | |||||
| Page No. | ||||||||||||||
| NOI Excluding Lease Termination Income and Expense, and GAAP Rent Adjustments, Most Recent Quarter | ||||||||||||||
| NOI, excluding ground rent income | $ | 41,038 | 5 | |||||||||||
| Ground rent income | 4,737 | 5 | ||||||||||||
| NOI | 45,775 | 5 | ||||||||||||
| Annualized NOI, excluding ground rent income | $ | 164,152 | ||||||||||||
| Annualized ground rent income | 18,948 | |||||||||||||
| Projected remaining development | ||||||||||||||
| Net project costs | $ | 11,000 | 15 | |||||||||||
| Estimated range for incremental yield | 7-10% | 15 | ||||||||||||
| Other Assets | ||||||||||||||
| Cash, cash equivalents and restricted cash | $ | 75,116 | 2 | |||||||||||
| Billed base rent, recoveries, and other revenue | 5,722 | 4 | ||||||||||||
| Undeveloped land | — | |||||||||||||
| Land held for development | — | |||||||||||||
| Liabilities | ||||||||||||||
| Debt | $ | 831,548 | 8 | |||||||||||
| Issuance costs, net of accumulated amortization | (4,021) | 8 | ||||||||||||
| Accounts payable and accrued expenses | 28,764 | 2 | ||||||||||||
| Distributions payable | 15,360 | 2 | ||||||||||||
| Other liabilities | 26,938 | 2 | ||||||||||||
| Common Shares Outstanding | 67,874,528 | 1 | ||||||||||||
19 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
| Glossary of Terms | ||||
| Terms | Definitions | |||||||
| ABR Per Square Foot (ABR PSF) | ABR PSF is the ABR divided by the occupied square footage for that period. | |||||||
| 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 its proportionate share of the joint venture's Adjusted EBITDA on the same basis. | |||||||
| Annualized Base Rent (ABR) | Annualized Base Rent (ABR) is the base rent for the period multiplied by twelve months. Base rent is inclusive of ground rent and any abatement concessions, but excludes Specialty Lease income. | |||||||
| Anchor Tenant | Tenants with square footage greater than or equal to 10,000 square feet are considered Anchor Tenants. | |||||||
| Community Center | Community Centers are generally open air and designed for tenants that offer a larger array of apparel and other soft goods. Typically, community centers contain anchor stores and other national retail tenants. | |||||||
| Comparable Lease | A Comparable Lease meets all of the following criteria: terms greater than or equal to one year, unit was vacant less than one year prior to executed lease, square footage of unit remains unchanged or within 10% of prior unit square footage, and has a rent structure consistent with the previous tenant. | |||||||
| Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) | The Company's non-GAAP measure of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is net income (or loss) in accordance with GAAP, plus federal and state tax expense, interest expense, net, and depreciation and amortization. Adjustments for the Company's unconsolidated joint venture are calculated to reflect its proportionate share of the joint venture's EBITDA on the same basis. | |||||||
| Economic Occupancy | Upon Rent Commencement Date, the percentage of occupied GLA divided by total GLA. For purposes of calculating occupancy, Specialty Lease GLA is deemed vacant. | |||||||
| GAAP Rent Adjustments | GAAP Rent Adjustments consist of amortization market lease intangibles, amortization of lease incentives, and straight-line rent adjustments. | |||||||
| Gross Leasable Area (GLA) | Measure of the total amount of leasable space at a property in square feet. | |||||||
| Leased Occupancy | Economic Occupancy plus the percentage of signed and not yet commenced GLA divided by total GLA. | |||||||
| 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 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 the Company's unconsolidated joint venture are calculated to reflect the Company's 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 the Company's 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. | |||||||
| Neighborhood Center | Neighborhood Centers are convenience oriented with tenants such as a grocery store anchor, a drugstore, and other small retailers. | |||||||
| Net Debt-to-Adjusted EBITDA | Net Debt-to-Adjusted EBITDA is net debt divided by trailing twelve month Adjusted EBITDA. | |||||||
| Net Operating Income (NOI) | 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. | |||||||
| New Lease | New Leases are leases where a new tenant will be occupying a unit or an existing tenant is relocating from one unit to another (unless the tenant is moving from a temporary space back to the original unit). | |||||||
NOI from other investment properties | NOI from other investment properties consists of properties which do not meet the Company's Same Property criteria and includes adjustments for the Company's captive insurance company. | |||||||
| Power Center | Power Centers consist of category-dominant anchors, such as discount department stores, off-price stores, or wholesale clubs, with only a few small shop tenants. | |||||||
| Prior Contractual Rent | Base rent charged for a particular unit, prior to the current term’s first year rent. If the prior lease terminated prior to the contractual expiration date, the prior contractual rent amount is the rent charged in the final month of occupancy. | |||||||
| Pro Rata | Where appropriate, the Company has included the results from its 55% ownership share of its joint venture properties when combined with the Company's wholly owned properties, defined as "Pro Rata," as of December 31, 2022 and 2021. | |||||||
| Pro Rata Net Debt | Pro rata net debt is total outstanding debt, net, less cash and cash equivalents, including IVT's JV share. | |||||||
| Renewal Lease | Terms have been extended on an existing lease in the same unit. This may happen via an amendment, extension agreement or exercised option. | |||||||
| Same Property | Information provided on a same-property basis includes the results of properties that were owned and operated for the entirety of both periods presented. | |||||||
| Shadow Anchor Tenant | Shadow Anchor Tenant represents tenants that are situated on parcels which are owned by unrelated third parties, but, due to their location within or immediately adjacent to a property, appear to the consumer as a retail tenant of the property and, as a result, attract additional consumer traffic to the property. | |||||||
| Small Shop Tenant | Tenants with square footage less than 10,000 square feet are considered Small Shops. | |||||||
| Specialty Lease | Specialty leasing represents leases of less than one year in duration for inline space and includes any term length for a common area space, and is excluded from the ABR and leased square footage figures when computing the ABR per square foot. | |||||||
| Wholly-owned | Wholly-owned properties are those properties owned outright by the Company and does not include properties owned through an investment in a joint venture. | |||||||
20 | Supplemental - Quarter Ended March 31, 2024 | | ||||||
