Business Wire | Nov 1, 2021 04:16PM EDT

InvenTrust Properties Corp. Reports 2021 Third Quarter Results

Nov. 01, 2021

DOWNERS GROVE, III.--(BUSINESS WIRE)--Nov. 01, 2021--InvenTrust Properties Corp. ("InvenTrust" or the "Company") (NYSE: IVT) today reported financial and operating results for the period ended September 30, 2021 and provided guidance for 2021. For the three months ended September 30, 2021, the Company reported Net Income of $4.0 million, or $0.06 per basic share, compared to $1.7 million, or $0.02 per basic share, for the three months ended September 30, 2020.

Third Quarter 2021 Highlights:

* Funds from Operations ("FFO"), as defined by NAREIT, of $0.37 per share * Core FFO for the quarter of $0.38 per share * Pro Rata Same Property Net Operating Income ("NOI") increased 8.2% for the three month period and 5.0% on year-to-date basis * Leased Occupancy as of September 30, 2021 of 93.5% * Executed 79 leases totaling approximately 700,000 square feet of pro rata GLA at a blended comparable lease spread of 4.8% * Net Debt-to-Adjusted EBITDA of 3.6x at September 30, 2021 * InvenTrust amended its $400.0 million unsecured term loan agreement and its $350.0 million revolving credit facility * Acquired one property from the Company's unconsolidated joint venture and one outparcel

"This is an exciting time for InvenTrust," commented Daniel (DJ) Busch, President and CEO of InvenTrust. "We are pleased to have executed a successful listing on the NYSE. As we establish ourselves in the publicly-traded market, our Sun Belt concentration is a differentiator amongst the shopping center sector and we believe our platform is in a great position to execute on our growth strategy."

FINANCIAL RESULTS

* Net Income for the three months ended September 30, 2021 was $4.0 million, or $0.06 per common share, compared to $1.7 million, or $0.02 per common share, basic and diluted, for the same period in 2020. Net Income for the nine months ended September 30, 2021 was $5.4 million, or $0.08 per common share, compared to a Net Loss of $11.4 million, or $0.16 per common share, for the same period in 2020. * FFO for the three months ended September 30, 2021 was $26.3 million, or $0.37 per common share, as compared to $25.5 million, or $0.35 per share for the same period in 2020. FFO for the nine months ending September 30, 2021 was $74.1 million, or $1.03 per common share, as compared to $69.5 million, or $0.96 per share, for the same period in 2020. * Core FFO of $27.3 million, or $0.38 per share, for the three months ended September 30, 2021 compared to $22.6 million, or $0.31 per share, for the same period in 2020. Core FFO for the nine months ended September 30, 2021 of $73.3 million, or $1.02 per share, compared to $69.9 million, or $0.97 per share, for the same period in 2020. * Pro Rata Same Property NOI for the three months ended September 30, 2021 was $38.6 million, an 8.2% increase, compared to the same period in 2020. For the nine months ended September 30, 2021, Pro Rata Same Property NOI of $108.5 million, or a 5.0% increase, compared to the same period in 2020.

DIVIDEND

* On October 7, 2021, the Company paid a dividend of $0.1955 per share, an increase of 3% from the same period last year. * On August 5, 2021, the Company announced that the fourth quarter 2021 dividend, to be paid in January 2022, will increase by 5% to $0.2052 per share.

PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY

* As of September 30, 2021, the Company's Leased Occupancy was 93.5%. Total Junior and Big Box anchor Leased Occupancy, which includes spaces greater than or equal to 10,000 square feet, was 96.7% and Small Shop Leased Occupancy was 87.6%, both up 60 basis points on a sequential basis compared to the previous quarter. Leased to Economic Occupancy spread of 130 basis points. * Blended re-leasing spreads for comparable new and renewal leases signed in the third quarter were 4.8%. * Annual Base Rent PSF ("ABR") as of September 30, 2021 for the Pro Rata Combined Portfolio was $18.44, an increase of 1.2% compared to the same period in 2020. Anchor Tenant ABR PSF was $12.29 and Small Shop ABR PSF was $31.06 for the third quarter. * On July 12, 2021, InvenTrust purchased Prestonwood Town Center from the Company's unconsolidated joint venture for a gross purchase price of $52.8 million. * During the three months ended September 30, 2021, the Company disposed of one single-tenant property for $13.7 million and recognized a gain of $0.6 million. In addition, the Company's unconsolidated joint venture disposed of one property to a third party for $28.8 million and recognized a gain of $0.4 million, of which the Company's share was $0.2 million.

CAPITAL STRUCTURE

* InvenTrust had $512.8 million of total liquidity, as of September 30, 2021, comprised of $162.8 million of Pro Rata Cash and $350.0 million of availability under its Revolving Credit Facility. * The Company has no debt maturing in 2021 and $22.5 million of debt maturing in 2022. * On September 22, 2021, the Company entered into an amendment to its Unsecured Term Loan Agreement, which amended and restated the Company's prior Unsecured Term Loan agreement, and provides for, among other things, an extension of the maturity of its $400.0 million unsecured term loan, and a reallocation of indebtedness under the two outstanding tranches of term loans thereunder. * On September 22, 2021, the Company entered into an amendment to the Revolving Credit Agreement, which provides for an extension of the maturity of the Company's existing $350,000 unsecured revolving line of credit. The Amended Revolving Credit Agreement has a 4-year term with two six-month extension options. * The Company's weighted average interest rate on its consolidated debt as of September 30, 2021 was 2.70% and the weighted average remaining term was 4.6 years.

SUBSEQUENT ACTIVITY:

New York Stock Exchange Listing

* On October 12, 2021, the Company's common stock began trading on the New York Stock Exchange ("NYSE") under the ticker symbol "IVT". Subsequent to September 30, 2021, the Company incurred approximately $16.6 million of advisory fees for legal, banking, and other advisory services, related to the direct listing.

"Dutch Auction" Tender Offer

* On October 12, 2021, in conjunction with the NYSE listing, the Company commenced a modified "Dutch Auction" tender offer (the "Tender Offer") to purchase for cash up to $100.0 million in value of shares of the Company's common stock at a price not greater than $28.00 nor less than $25.00 per share, net to the seller in cash, less any applicable withholding of taxes and without interest. The Tender Offer is expected to expire at 12:00 midnight, New York City Time, on November 8, 2021. Tender Offer results will be made available via press release.

Austin Acquisition Under Contract

* On October 22, 2021, a wholly owned subsidiary of InvenTrust entered into a purchase and sale agreement to purchase two assets in Austin, Texas - Escarpment Village and Arbor Trails Shopping Center. The purchase of the properties, if successful, is expected to be completed in early 2022. The purchase of the assets is subject to customary due diligence and closing conditions, and no assurances can be given that the acquisitions will be completed in accordance with the anticipated timing or at all.

2021 OUTLOOK AND GUIDANCE

? Net Loss per diluted share $(0.20) to $(0.16)

? FFO per share $1.09 to $1.13

? Core FFO per share^1 $1.38 to $1.42

? SPNOI Growth 3.25% to 4.75%

1 - Estimated 2021 Core FFO per share, excludes, among other things, advisory fees associated with our NYSE direct listing. These advisory fees represent banker, legal and other advisor fees incurred in connection with our direct listing on October 12, 2021.

Note: Acquisitions are not included in the 2021 Outlook and Guidance beyond what has been completed as of the date of this release. 2021 Outlook and Guidance does include two potential and pending dispositions that may be completed by the end of 2021. The Company's 2021 Outlook and Guidance is based on a number of 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.

CONFERENCE CALL INFORMATION

Date: November 2, 2021

Time: 11:00 a.m. ET

Dial-in: 1-866-652-5200

Webcast: https://services.choruscall.com/links/ivt211102.html

Replay

Webcast Archive: https://www.inventrustproperties.com/investor-relations/

[A webcast replay will be available shortly after the conclusion of thepresentation using the webcast link above]

NON-GAAP FINANCIAL MEASURES and RECONCILIATIONS

This Earnings Release and Supplemental Financial Information includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our 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 our non-GAAP measures to the most directly comparable GAAP financials measures are included below.

SAME PROPERTY NOI

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, provision for asset impairment, other income and expense, net, gains (losses) from sales of properties, gains (losses) on extinguishment of debt, interest expense, net, equity in (losses) earnings and (impairment), net, from unconsolidated entities, lease termination income and expense, and GAAP rent adjustments (such as straight-line rent, above/below market lease amortization and amortization of lease incentives).

FUNDS FROM OPERATIONS (FFO) and CORE FFO

Our non-GAAP measure of Funds from Operations ("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 our joint ventures are calculated to reflect our proportionate share of the joint venture's FFO on the same basis. Core Funds From Operations is an additional supplemental non-GAAP financial measure of our 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 FFO and other unique revenue and expense items which are not pertinent to measuring a particular company's on-going operating performance.

ADJUSTED EBITDA

Our non-GAAP measure of Adjusted EBITDA excludes gains (or losses) resulting from debt extinguishments, transaction expenses, straight-line rent adjustments, amortization of above and below market leases and lease inducements, and other unique revenue and expense items which are not pertinent to measuring our on-going operating performance. Adjustments for our joint ventures are calculated to reflect our proportionate share of the joint venture's Adjusted EBITDA on the same basis.

NET DEBT-TO-ADJUSTED EBITDA

Net Debt-to-Adjusted EBITDA is Pro Rata net debt divided by Adjusted EBITDA on a trailing twelve month basis.

PRO RATA

Where appropriate, the Company has included the results from its ownership share of its joint venture properties when combined with the Company's wholly owned properties, defined as "Pro Rata," with the exception of property count.

FINANCIAL STATEMENTS



Condensed Consolidated Balance Sheets



(Unaudited, dollars in thousands, except share amounts)

As of September 30, December 31, 2021 2020 (unaudited)AssetsInvestment propertiesLand $ 598,940 $ 577,750

Building and other improvements 1,659,494 1,640,693

Construction in progress 6,361 3,246

Total 2,264,795 2,221,689

Less accumulated depreciation (335,086 ) (292,248 )

Net investment properties 1,929,709 1,929,441

Cash, cash equivalents and restricted cash 138,341 223,770

Investment in unconsolidated entities 104,963 109,051

Intangible assets, net 86,266 95,722

Accounts and rents receivable 29,013 28,983

Deferred costs and other assets, net 26,050 20,372

Total assets $ 2,314,342 $ 2,407,339

LiabilitiesDebt, net $ 502,151 $ 555,109

Accounts payable and accrued expenses 41,638 28,284

Distributions payable 13,933 13,642

Intangible liabilities, net 30,436 34,872

Other liabilities 31,368 36,569

Total liabilities 619,526 668,476

Commitments and contingencies Stockholders' EquityPreferred stock, $0.001 par value, 40,000,000 - - shares authorized, none outstandingCommon stock, $0.001 par value, 1,460,000,000shares authorized, 71,261,403shares issued and outstanding as of September 71 72 30, 2021 and 71,998,634 sharesissued and outstanding as of December 31, 2020

Additional paid-in capital 5,554,596 5,566,902

Distributions in excess of accumulated net (3,852,190 ) (3,815,662 )incomeAccumulated comprehensive loss (7,661 ) (12,449 )

Total stockholders' equity 1,694,816 1,738,863

Total liabilities and stockholders' equity $ 2,314,342 $ 2,407,339

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited, dollars in thousands, except share amounts)

Three months ended September 30,

Nine months ended September 30,

2021

2020

2021

2020

IncomeLease income, net$

53,965

$

51,489

$

154,869

$

143,491

Other property income310

177

760

576

Other fee income863

879

2,770

2,555

Total income55,138

52,545

158,399

146,622

Operating expensesDepreciation and amortization21,318

22,170

65,000

66,697

Property operating8,143

6,677

23,926

19,969

Real estate taxes8,490

8,940

24,781

24,647

General and administrative8,782

10,106

29,043

25,688

Direct listing costs1,704

-

1,704

-

Total operating expenses48,437

47,893

144,454

137,001

Other (expense) incomeInterest expense, net(3,999

)

(4,594

)

(11,956

)

(14,327

)

Loss on extinguishment of debt(400

)

-

(400

)

(2,543

)

Provision for asset impairment-

-

-

(9,002

)

Gain on sale of investment properties, net636

424

1,516

668

Equity in earnings of unconsolidated entities1,046

951

2,441

1,591

Other income and expense, net8

244

(155

)

2,572

Total other expense income, net(2,709

)

(2,975

)

(8,554

)

(21,041

)

Net income (loss)$

3,992

$

1,677

$

5,391

$

(11,420

)

Weighted-average common shares outstanding, basic71,261,403

71,945,847

71,731,832

72,072,252

Weighted-average common shares outstanding, diluted71,395,625

72,009,209

71,802,082

72,072,252

Net income (loss) per common share, basic and diluted$

0.06

$

0.02

$

0.08

$

(0.16

)

Distributions declared per common share outstanding$

0.20

$

0.19

$

0.58

$

0.57

Distributions paid per common share outstanding$

0.20

$

0.19

$

0.58

$

0.56

Comprehensive income (loss)Net income (loss)$

3,992

$

1,677

$

5,391

$

(11,420

)

Unrealized (loss) gain on derivatives(195

)

(25

)

1,560

(16,498

)

Reclassification to net income (loss)1,102

1,043

3,228

1,643

Comprehensive income (loss)$

4,899

$

2,695

$

10,179

$

(26,275

)

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)



(Unaudited, dollars in thousands, except share amounts)

Three months ended September Nine months ended September 30, 30,

2021 2020 2021 2020

IncomeLease income, $ 53,965 $ 51,489 $ 154,869 $ 143,491 netOther property 310 177 760 576 incomeOther fee income 863 879 2,770 2,555

Total income 55,138 52,545 158,399 146,622

OperatingexpensesDepreciation and 21,318 22,170 65,000 66,697 amortizationProperty 8,143 6,677 23,926 19,969 operatingReal estate 8,490 8,940 24,781 24,647 taxesGeneral and 8,782 10,106 29,043 25,688 administrativeDirect listing 1,704 - 1,704 - costsTotal operating 48,437 47,893 144,454 137,001 expenses Other (expense)incomeInterest (3,999 ) (4,594 ) (11,956 ) (14,327 )expense, netLoss on (400 ) - (400 ) (2,543 )extinguishmentof debtProvision for - - - (9,002 )asset impairmentGain on sale of 636 424 1,516 668 investmentproperties, netEquity inearnings of 1,046 951 2,441 1,591 unconsolidatedentitiesOther income and 8 244 (155 ) 2,572 expense, netTotal other (2,709 ) (2,975 ) (8,554 ) (21,041 )expense income,net Net income $ 3,992 $ 1,677 $ 5,391 $ (11,420 )(loss) Weighted-averagecommon shares 71,261,403 71,945,847 71,731,832 72,072,252 outstanding,basicWeighted-averagecommon shares 71,395,625 72,009,209 71,802,082 72,072,252 outstanding,diluted Net income(loss) per $ 0.06 $ 0.02 $ 0.08 $ (0.16 )common share,basic anddiluted Distributionsdeclared per $ 0.20 $ 0.19 $ 0.58 $ 0.57 common shareoutstandingDistributionspaid per common $ 0.20 $ 0.19 $ 0.58 $ 0.56 shareoutstanding Comprehensiveincome (loss)Net income $ 3,992 $ 1,677 $ 5,391 $ (11,420 )(loss)Unrealized (195 ) (25 ) 1,560 (16,498 )(loss) gain onderivativesReclassification 1,102 1,043 3,228 1,643 to net income(loss)Comprehensive $ 4,899 $ 2,695 $ 10,179 $ (26,275 )income (loss)Pro Rata Same Property Net Operating Income

The following table compares Pro Rata Same Property NOI (in thousands):

Three Months Ended September 30

Nine Months Ended September 30

2021

2020

2021

2020

IncomeBase rent$

31,183

$

31,497

$

92,031

$

94,544

Real estate tax recoveries7,294

8,147

21,280

21,917

CAM, insurance, and other recoveries5,778

5,487

17,067

15,486

Ground rent income3,254

3,246

9,479

9,453

Short-term and other lease income861

433

2,500

1,689

Provision for uncollectible billed rent and recoveries(51

)

(1,220

)

(1,633

)

(8,175

)

Reversal of uncollectible billed rent and recoveries2,259

68

3,972

387

Other property income311

181

758

554

Total income50,889

47,839

145,454

135,855

Operating ExpensesProperty operating expenses7,813

6,690

23,118

19,093

Real estate taxes8,179

8,940

24,167

24,180

Total operating expenses15,992

15,630

47,285

43,273

Same Property NOI34,897

32,209

98,169

92,582

JV Same Property NOI3,720

3,484

10,351

10,763

Pro Rata Same Property NOI$

38,617

$

35,693

$

108,520

$

103,345

Reconciliation of Net Income (Loss) to Pro Rata Same Property NOI

Below is a reconciliation of Net income (Loss) to Pro Rata Same Property NOI (in thousands):

Three Months Ended September 30

Nine Months Ended September 30

2021

2020

2021

2020

Net income (loss)$

3,992

$

1,677

$

5,391

$

(11,420

)

Adjustments to reconcile to non-GAAP metrics:Other income and expense, net(8

)

(244

)

155

(2,572

)

Equity in earnings of unconsolidated entities(1,046

)

(951

)

(2,441

)

(1,591

)

Interest expense, net3,999

4,594

11,956

14,327

Loss on extinguishment of debt400

-

400

2,543

Gain on sale of investment properties, net(636

)

(424

)

(1,516

)

(668

)

Provision for asset impairment-

-

-

9,002

Depreciation and amortization21,318

22,170

65,000

66,697

General and administrative8,782

10,106

29,043

25,688

Direct listing costs1,704

-

1,704

-

Other fee income(863

)

(879

)

(2,770

)

(2,555

)

Adjustments to NOI (a)(1,825

)

(3,548

)

(5,674

)

(4,825

)

NOI35,817

32,501

101,248

94,626

NOI from other investment properties(920

)

(292

)

(3,079

)

(2,044

)

Same Property NOI34,897

32,209

98,169

92,582

JV Same Property NOI at share3,720

3,484

10,351

10,763

Pro Rata Same Property NOI$

38,617

$

35,693

$

108,520

$

103,345

(a) Adjustments to NOI include termination fee income and expense and GAAP rent adjustments.Pro Rata Same Property Net Operating Income



The following table compares Pro Rata Same Property NOI (in thousands):

Three Months Ended Nine Months Ended September 30 September 30

2021 2020 2021 2020

IncomeBase rent $ 31,183 $ 31,497 $ 92,031 $ 94,544

Real estate tax 7,294 8,147 21,280 21,917 recoveriesCAM, insurance, and other 5,778 5,487 17,067 15,486 recoveriesGround rent income 3,254 3,246 9,479 9,453

Short-term and other 861 433 2,500 1,689 lease incomeProvision for (51 ) (1,220 ) (1,633 ) (8,175 )uncollectible billed rentand recoveriesReversal of uncollectible 2,259 68 3,972 387 billed rent andrecoveriesOther property income 311 181 758 554

Total income 50,889 47,839 145,454 135,855

Operating ExpensesProperty operating 7,813 6,690 23,118 19,093 expensesReal estate taxes 8,179 8,940 24,167 24,180

Total operating expenses 15,992 15,630 47,285 43,273

Same Property NOI 34,897 32,209 98,169 92,582

JV Same Property NOI 3,720 3,484 10,351 10,763

Pro Rata Same Property $ 38,617 $ 35,693 $ 108,520 $ 103,345 NOI Reconciliation of Net Income (Loss) to Pro Rata Same Property NOI



Below is a reconciliation of Net income (Loss) to Pro Rata Same Property NOI(in thousands):

Three Months Ended Nine Months Ended September 30 September 30

2021 2020 2021 2020

Net income (loss) $ 3,992 $ 1,677 $ 5,391 $ (11,420 )

Adjustments to reconcileto non-GAAP metrics:Other income and expense, (8 ) (244 ) 155 (2,572 )netEquity in earnings of (1,046 ) (951 ) (2,441 ) (1,591 )unconsolidated entitiesInterest expense, net 3,999 4,594 11,956 14,327

Loss on extinguishment of 400 - 400 2,543 debtGain on sale of (636 ) (424 ) (1,516 ) (668 )investment properties,netProvision for asset - - - 9,002 impairmentDepreciation and 21,318 22,170 65,000 66,697 amortizationGeneral and 8,782 10,106 29,043 25,688 administrativeDirect listing costs 1,704 - 1,704 -

Other fee income (863 ) (879 ) (2,770 ) (2,555 )

Adjustments to NOI (a) (1,825 ) (3,548 ) (5,674 ) (4,825 )

NOI 35,817 32,501 101,248 94,626

NOI from other investment (920 ) (292 ) (3,079 ) (2,044 )propertiesSame Property NOI 34,897 32,209 98,169 92,582

JV Same Property NOI at 3,720 3,484 10,351 10,763 sharePro Rata Same Property $ 38,617 $ 35,693 $ 108,520 $ 103,345 NOI (a) Adjustments to NOI include termination fee income and expense and GAAP rentadjustments.FFO and Core FFO

The following table presents the Company's calculation of FFO and Core FFO Attributable to Common Shares and Dilutive Securities and provides additional information related to its operations (in thousands, except per share amounts):

Three Months Ended September 30

Nine Months Ended September 30

2021

2020

2021

2020

Net income (loss)$

3,992

$

1,677

$

5,391

$

(11,420

)

Depreciation and amortization related to investment properties21,107

22,165

64,328

65,726

Provision for asset impairment-

-

-

9,002

Gain on sale of investment properties, net(636

)

(424

)

(1,516

)

(668

)

Unconsolidated joint venture adjustments (a)1,787

2,110

5,943

6,872

FFO Applicable to Common Shares and Dilutive Securities26,250

25,528

74,146

69,512

Amortization of above and below-market leases and lease inducements, net(1,019

)

(2,915

)

(3,404

)

(5,763

)

Straight-line rent adjustments, net(633

)

(329

)

(1,902

)

1,039

Direct listing costs1,704

-

1,704

-

Adjusting items, net (b)758

217

2,214

4,123

Unconsolidated joint venture adjusting items, net (c)260

53

566

972

Core FFO Applicable to Common Shares and Dilutive Securities$

27,320

$

22,554

$

73,324

$

69,883

Weighted average common shares outstanding - basic71,261,403

71,945,847

71,731,832

72,072,252

Effect of unvested restricted shares (d)134,222

63,362

70,250

-

Weighted average common shares outstanding - diluted71,395,625

72,009,209

71,802,082

72,072,252

FFO Applicable to Common Shares and Dilutive Securities per share$

0.37

$

0.35

$

1.03

$

0.96

Core FFO Applicable to Common Shares and Dilutive Securities per share$

0.38

$

0.31

$

1.02

$

0.97

(a) Represents our share of depreciation, amortization, and gain on sale related to investment properties held in the JV.(b) Adjusting items, net, are primarily related to loss on extinguishment of debt, amortization of debt premiums, discounts, and financing costs, net, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes other non-operating revenue and expense items which are not pertinent to measuring on-going operating performance, such as miscellaneous income and settlement income.(c) Represents our share of adjusting items, net, related to the JV.(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. For the nine months ended September 30, 2020, unvested restricted shares were antidilutive and therefore excluded from the denominator in the diluted net loss per share calculation in accordance with GAAP.EBITDA, Pro Rata

The following table presents the Company's calculation of EBITDA and Adjusted EBITDA (in thousands):

Three Months Ended September 30

Nine Months Ended September 30

2021

2020

2021

2020

Net income (loss)$

3,992

$

1,677

$

5,391

$

(11,420

)

Interest expense (a)4,690

5,554

14,385

17,469

Income tax expense (benefit) (a)74

140

275

(910

)

Depreciation and amortization (a)23,325

24,279

71,163

73,569

EBITDA32,081

31,650

91,214

78,708

Adjustments to reconcile to Adjusted EBITDA (a)Direct listing costs1,704

-

1,704

-

Provision for asset impairment-

-

-

9,002

Gain on sale of investment properties, net(856

)

(424

)

(1,736

)

(669

)

Loss on debt extinguishment518

-

526

2,548

Non-operating income and expense, net (b)(229

)

(253

)

(6

)

(863

)

Other leasing adjustments (c)(1,588

)

(3,264

)

(5,072

)

(3,944

)

Adjusted EBITDA$

31,630

$

27,709

$

86,630

$

84,782

(a) Includes our consolidated entities and our pro-rata share of our JV.(b) Non-operating income and expense, net, includes other non-operating revenue and expense items which are not pertinent to measuring ongoing operating performance, such as termination fee expense, miscellaneous income, settlement income, and loss on extinguishment of debt.(c) Other leasing adjustments includes amortization of above and below market leases and straight-line rent adjustments.FFO and Core FFO



The following table presents the Company's calculation of FFO and Core FFOAttributable to Common Shares and Dilutive Securities and provides additionalinformation related to its operations (in thousands, except per share amounts):

Three Months Ended September 30 Nine Months Ended September 30

2021 2020 2021 2020

Net income $ 3,992 $ 1,677 $ 5,391 $ (11,420 )(loss)Depreciationandamortization 21,107 22,165 64,328 65,726 related toinvestmentpropertiesProvision for - - - 9,002 assetimpairmentGain on saleof investment (636 ) (424 ) (1,516 ) (668 )properties,netUnconsolidatedjoint venture 1,787 2,110 5,943 6,872 adjustments(a)FFO Applicableto Common 26,250 25,528 74,146 69,512 Shares andDilutiveSecuritiesAmortizationof above andbelow-market (1,019 ) (2,915 ) (3,404 ) (5,763 )leases andleaseinducements,netStraight-linerent (633 ) (329 ) (1,902 ) 1,039 adjustments,netDirect listing 1,704 - 1,704 - costsAdjusting 758 217 2,214 4,123 items, net (b)Unconsolidatedjoint venture 260 53 566 972 adjustingitems, net (c)Core FFOApplicable to $ 27,320 $ 22,554 $ 73,324 $ 69,883 Common Sharesand DilutiveSecurities Weightedaverage common 71,261,403 71,945,847 71,731,832 72,072,252 sharesoutstanding -basicEffect ofunvested 134,222 63,362 70,250 - restrictedshares (d)Weightedaverage common 71,395,625 72,009,209 71,802,082 72,072,252 sharesoutstanding -diluted FFO Applicableto CommonShares and $ 0.37 $ 0.35 $ 1.03 $ 0.96 DilutiveSecurities pershareCore FFOApplicable toCommon Shares $ 0.38 $ 0.31 $ 1.02 $ 0.97 and DilutiveSecurities pershare (a) Represents our share of depreciation, amortization, and gain on salerelated to investment properties held in the JV. (b) Adjusting items, net, are primarily related to loss on extinguishment ofdebt, amortization of debt premiums, discounts, and financing costs, net,depreciation and amortization of corporate assets, and non-operating income andexpenses, net, which includes other non-operating revenue and expense itemswhich are not pertinent to measuring on-going operating performance, such asmiscellaneous income and settlement income. (c) Represents our share of adjusting items, net, related to the JV. (d) For purposes of calculating non-GAAP per share metrics, the samedenominator is used as that which would be used in calculating diluted earningsper share in accordance with GAAP. For the nine months ended September 30,2020, unvested restricted shares were antidilutive and therefore excluded fromthe denominator in the diluted net loss per share calculation in accordancewith GAAP. EBITDA, Pro Rata



The following table presents the Company's calculation of EBITDA and AdjustedEBITDA (in thousands):

Three Months Ended September 30 Nine Months Ended September 30

2021 2020 2021 2020

Net income $ 3,992 $ 1,677 $ 5,391 $ (11,420 )(loss)Interest 4,690 5,554 14,385 17,469 expense (a)Income tax 74 140 275 (910 )expense(benefit) (a)Depreciationand 23,325 24,279 71,163 73,569 amortization(a)EBITDA 32,081 31,650 91,214 78,708

Adjustments toreconcile toAdjustedEBITDA (a)Direct listing 1,704 - 1,704 - costsProvision for - - - 9,002 assetimpairmentGain on saleof investment (856 ) (424 ) (1,736 ) (669 )properties,netLoss on debt 518 - 526 2,548 extinguishmentNon-operatingincome and (229 ) (253 ) (6 ) (863 )expense, net(b)Other leasing (1,588 ) (3,264 ) (5,072 ) (3,944 )adjustments(c)Adjusted $ 31,630 $ 27,709 $ 86,630 $ 84,782 EBITDA (a) Includes our consolidated entities and our pro-rata share of our JV. (b) Non-operating income and expense, net, includes other non-operating revenueand expense items which are not pertinent to measuring ongoing operatingperformance, such as termination fee expense, miscellaneous income, settlementincome, and loss on extinguishment of debt. (c) Other leasing adjustments includes amortization of above and below marketleases and straight-line rent adjustments.Financial Leverage Ratios

The following table presents the calculation of net debt to Adjusted EBITDA and net debt as of September 30, 2021 and December 31, 2020 (dollars in thousands):

As ofAs ofSeptember 30, 2021December 31, 2020Pro Rata Net debt:Pro Rata Outstanding debt, net$

593,301

$

688,422

Less: Pro Rata Cash(162,817

)

(249,854

)

Pro Rata net debt$

430,484

$

438,568

As ofAs ofSeptember 30, 2021December 31, 2020Pro Rata Net debt to Adjusted EBITDA (trailing 12 months):Pro Rata net debt$

430,484

$

438,568

Adjusted EBITDA - (trailing 12 months)118,038

116,190

Pro Rata Net debt to Adjusted EBITDA:3.6x

3.8x

About InvenTrust Properties Corp.

InvenTrust Properties Corp. ("we," the "Company," "our," "us," "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. 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 also committed to leadership in environmental, social and governance (ESG) practices and has been a Global Real Estate Sustainability Benchmark ("GRESB") member since 2018. As of September 30, 2021, the Company is an owner and manager of 63 retail properties, representing 10.6 million square feet of retail space. For more information, please visit www.inventrustproperties.com.

Forward-Looking Statements Disclaimer

Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representation, plans or predictions of the future and are typically identified by words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would," "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 us and our management, are inherently uncertain. The following factors, among others, could cause actual results and financial position and timing of certain events to differ materially from those described in the forward-looking statements: the effects and duration of the COVID-19 pandemic; interest rate movements; local, regional, national and global economic performance; 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 our forward-looking statements and our future results and financial condition, see the Risk Factors included in InvenTrust's most recent Annual Report on Form 10-K, as updated by any subsequent Quarterly Report on Form 10-Q, in each case as filed with the Securities and Exchange Commission. InvenTrust intends that such forward-looking statements be subject to the safe harbors created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, except as may be required by applicable law. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

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 Twitter 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 our 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.

Important Information and Where to Find It

The foregoing information and other information in this Press Release regarding the Tender Offer is for informational purposes only and is neither an offer to buy nor the solicitation of an offer to sell any securities of the Company. The full details of the Tender Offer, including complete instructions on how to tender shares, are included in the offer to purchase, the letter of transmittal, and other related materials, which we have distributed to stockholders and have filed with the SEC. Stockholders are urged to carefully read the offer to purchase, the letter of transmittal, and other related materials, as they contain important information, including the terms and conditions of the Tender Offer. Stockholders may obtain free copies of the offer to purchase, the letter of transmittal, and other related materials that the Company has filed with the SEC on the SEC's website at www.sec.gov or by calling Georgeson LLC, the information agent for the Tender Offer at (888) 877-5360 (toll free).

View source version on businesswire.com: https://www.businesswire.com/news/home/20211101005926/en/

CONTACT: Dan Lombardo Vice President of Investor Relations 630-570-0605 dan.lombardo@inventrustproperties.com