EX-99.1 2 q42022earningsrelease.htm EX-99.1

CONTACT:
Dan Lombardo
Vice President of Investor Relations
630-570-0605
dan.lombardo@inventrustproperties.com
InvenTrust Properties Corp. Reports 2022 Fourth Quarter and Full Year Results
DOWNERS GROVE, III – February 14, 2023 – InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today reported financial and operating results for the fourth quarter and full year ended December 31, 2022 and provided guidance for 2023. For the three months ended December 31, 2022 and 2021, the Company reported a Net Loss of $0.1 million, or $0.00 per diluted share, and a Net Loss of $10.8 million, or $0.16 per diluted share, respectively. For the twelve months ended December 31, 2022 and 2021, the Company reported Net Income of $52.2 million, or $0.77 per diluted share, and a Net Loss of $5.4 million, or $0.08 per diluted share, respectively.
Fourth Quarter and Full Year 2022 Highlights:
•NAREIT FFO for the fourth quarter of $0.35 per diluted share, and $1.66 per diluted share for the full year
•Core FFO for the fourth quarter of $0.34 per diluted share, and $1.57 per diluted share for the full year
•Pro Rata Same Property Net Operating Income (“NOI”) growth of 0.4% for the fourth quarter and growth of 4.6% for the full year
•Leased Occupancy as of December 31, 2022 of 96.1%, a fourth quarter sequential increase of 50 basis points and a full year increase of 220 basis points
•Executed 58 leases totaling approximately 461,000 square feet of pro rata GLA, of which 338,000 square feet was executed at a blended comparable lease spread of 6.1% for the fourth quarter and 8.4% for the full year
Subsequent Highlights:
•On January 18, 2023, the Company acquired the four remaining retail properties from its unconsolidated joint venture, IAGM, for an aggregate purchase price of $222.3 million by acquiring 100% of the membership interests in each of IAGM’s wholly owned subsidiaries. The Company assumed aggregate mortgage debt of $92.5 million and funded the remaining balance with its available liquidity. Subsequent to the transaction, IAGM proportionately distributed substantially all net proceeds from the sale, of which the Company's share was approximately $71.4 million. In connection with the foregoing, IAGM adopted a liquidation plan on January 11, 2023.
”The InvenTrust team executed on all facets of the 2022 business plan,” stated Daniel (DJ) Busch, President and CEO of InvenTrust. “Our operations team continued to capitalize on solid leasing demand while prudently managing expenses in the current inflationary environment. Our investments team successfully rotated capital out of Colorado and further into our target markets driving closer to our goal of 100% concentration in the Sun Belt region. Lastly, we have maintained our disciplined approach to balance sheet management while diversifying our capital sources through the execution of our inaugural private placement of senior notes.”
Mr. Busch continued, “Already in 2023, we have completed the acquisition of the remaining stake in the Company’s joint venture with PGGM. With this transaction, the InvenTrust portfolio is 100% wholly-owned. In addition, the Board of Directors approved a 5% increase in our dividend starting with our April 2023 payment, bringing the Company’s annualized dividend up to $0.86 a share.”

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NET (LOSS) INCOME
•N et Loss for the three months ended December 31, 2022 was $0.1 million, or $0.00 per diluted share, compared to a Net Loss of $10.8 million, or $0.16 per diluted share, for the same period in 2021.
•Net Income for the year ended December 31, 2022 was $52.2 million, or $0.77 per diluted share, compared to a Net Loss of $5.4 million, or $0.08 per diluted share, for the same period in 2021.
NAREIT FFO
•NAREIT FFO for the three months ended December 31, 2022 was $23.8 million, or $0.35 per diluted share, as compared to $9.9 million, or $0.14 per diluted share, for the same period in 2021.
•NAREIT FFO for the year ended December 31, 2022 was $112.0 million, or $1.66 per diluted share, as compared to $84.1 million, or $1.18 per diluted share, for the same period in 2021.
CORE FFO
•Core FFO for the three months ended December 31, 2022 was $23.1 million, or $0.34 per diluted share, compared to $26.3 million, or $0.38 per diluted share, for the same period in 2021.
•Core FFO for the year ended December 31, 2022 was $106.0 million, or $1.57 per diluted share, compared to $99.6 million, or $1.40 per diluted share, for the same period in 2021.
PRO RATA SAME PROPERTY NOI
•Pro Rata S am e Property NOI for the three months ended December 31, 2022 was $35.8 million, a 0.4% increase, compared to the same period in 2021. Excluding net out of period rent collection of $0.6 million, Pro Rata Same Property NOI would have increased 2.1% when comparing the three months ended December 31, 2022 to the same period in 2021.
•Pro Rata Same Property NOI for the year ended December 31, 2022 was $141.1 million, a 4.6% increase, compared to the same period in 2021. Excluding net out of period rent collection of $1.7 million, Pro Rata Same Property NOI would have increased 6.0% when comparing the year ended December 31, 2022 to the same period in 2021.
DIVIDEND
•For the quarter ending December 31, 2022, the Board of Directors declared a quarterly cash distribution of $0.2052 per share, payable on January 13, 2023.
•The Board of Directors approved a 5% increase in the Company’s cash dividend. The new annual rate of $0.8620 will be reflected in the quarterly dividend of $0.2155 expected to be paid in April 2023.
PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY
•As of December 31, 2022, the Company’s Leased Occupancy was 96.1%.
◦Total Anchor Leased Occupancy, which includes spaces greater than or equal to 10,000 square feet, was 98.7% and Small Shop Leased Occupancy was 91.3%. Anchor Leased Occupancy increased by 50 basis points and Small Shop Leased Occupancy increased by 30 basis points on a sequential basis compared to the previous quarter.
◦Leased to Economic Occupancy spread of 220 basis points, which equates to approximately $4.8 million of base rent on an annualized basis.
•Blended re-leasing spreads for comparable new and renewal leases signed in the fourth quarter were 6.1%, and 8.4% for the full year.
•Annualized Base Rent PSF (“ABR”) as of December 31, 2022 for the Pro Rata Combined Portfolio was $19.08, an increase of 2.6% compared to the same period in 2021. Anchor Tenant ABR PSF was $12.43 and Small Shop ABR PSF was $32.12 for the fourth quarter.
•On October 28, 2022, the Company acquired Eastfield Village in Huntersville, North Carolina for $22.5 million. The 96,000 square foot neighborhood center is anchored by Food Lion.
•On December 16, 2022, the Company acquired Stone Ridge Market in San Antonio, Texas, for $58.1 million from its joint venture. The 219,000 square foot community center is shadow anchored by HEB Plus.

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LIQUIDITY AND CAPITAL STRUCTURE
•InvenTrust had $514.4 million of total liquidity, as of December 31, 2022 comprised of $164.4 million of Pro Rata Cash and $350.0 million of availability under its Revolving Credit Facility.
•The Company has $13.7 million of debt maturing in 2023 and $15.7 million of debt maturing in 2024.
•The Company's weighted average interest rate on its consolidated debt as of December 31, 2022 was 4.08% and the weighted average remaining term was 5.2 years.
FULL YEAR 2023 OUTLOOK AND GUIDANCE

(Unaudited, dollars in thousands, except per share amounts) | Initial 2023 Guidance |  | 2022 Actual
Net Income per diluted share (1) | $0.23 | — | $0.28 |  | $0.77
NAREIT FFO per diluted share (2) | $1.64 | — | $1.69 |  | $1.66
Core FFO per diluted share | $1.59 | — | $1.64 |  | $1.57
Same Property NOI (“SPNOI”) Growth | 3.50% | — | 5.00% |  | 4.6%
General and administrative | $31,250 | — | $32,750 |  | $33,342
Interest expense, net (3) | $34,500 | — | $35,500 |  | $25,957
Net investment activity (4) | ~ $150,000 |  | $129,970

The Company’s initial 2023 guidance contemplates the following assumptions:
(1) Net Income per diluted share excludes effects from potential acquisitions or dispositions.
(2) NAREIT FFO per diluted share:
•Excludes effects from potential acquisitions or dispositions.
•Excludes any items that impact NAREIT FFO comparability, including loss on debt extinguishment, non-routine or one-time items or which, in our judgement, are not pertinent to measuring on-going operating performance.
•Includes an expectation that some tenants will move from the cash basis of accounting to the accrual basis of accounting which can result in volatility in straight-line rental income adjustments.
(3) Excludes amortization of debt discounts and financing costs.
(4) Net investment activity represents anticipated acquisition activity less disposal activity.
In addition to the foregoing assumptions, the Company's 2023 Outlook and Guidance incorporates a number of other assumptions that are subject to change and may be outside the control of the Company. For example, the Company’s guidance is inclusive of prior period rent that the Company anticipates collecting. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurances that InvenTrust will achieve these results.

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The following table provides a reconciliation of the range of the Company's 2023 estimated net income per share to estimated NAREIT FFO and Core FFO per diluted share:

(Unaudited) | Low End |  | High End
Net income | $ | 0.23 |  |  | $ | 0.28 |
Depreciation and amortization related to investment properties | 1.41 |  |  | 1.41 |
NAREIT FFO Applicable to Common Shares and Dilutive Securities | 1.64 |  |  | 1.69 |
Amortization of market-lease intangibles and inducements, net | (0.05) |  |  | (0.05) |
Straight-line rent adjustments, net | (0.05) |  |  | (0.05) |
Adjusting items, net (a) | 0.05 |  |  | 0.05 |
Core FFO Applicable to Common Shares and Dilutive Securities | $ | 1.59 |  |  | $ | 1.64 |

(a)Adjusting items, net, are primarily amortization of debt discounts and financing costs, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as miscellaneous and settlement income.
The Company does not provide a reconciliation of forward-looking SPNOI to forward-looking GAAP Net Income within this press release 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 our results.
CONFERENCE CALL INFORMATION
Date: Wednesday, February 15, 2023
Time: 10:00 am ET
Dial-in: (844) 200-6205 / Access Code 310501
Webcast: https://events.q4inc.com/attendee/961428227
Replay
Webcast Archive: https://www.inventrustproperties.com/investor-relations/
A webcast replay will be available shortly after the conclusion of the presentation using the webcast link above.

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NON-GAAP FINANCIAL MEASURES
This Earnings Release 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 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, direct listing costs, 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 earnings (losses) from unconsolidated entities, lease termination income and expense, and GAAP rent adjustments such as straight-line rent adjustments, amortization of market lease intangibles, and amortization of lease incentives ("GAAP Rent Adjustments").
NAREIT FUNDS FROM OPERATIONS (NAREIT FFO) and CORE FFO
Our 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 our unconsolidated joint venture are calculated to reflect our 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 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 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
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 some may consider not pertinent to measuring a particular company’s on-going operating performance. Adjustments for our unconsolidated joint venture 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 and lease count.

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FINANCIAL STATEMENTS
Consolidated Balance Sheets
Dollars in thousands, except share amounts

| As of December 31,
| 2022 |  | 2021
Assets | (unaudited) |  |
Investment properties |  |  |
Land | $ | 650,764 |  |  | $ | 598,936 |
Building and other improvements | 1,825,893 |  |  | 1,664,525 |
Construction in progress | 5,005 |  |  | 9,642 |
Total | 2,481,662 |  |  | 2,273,103 |
Less accumulated depreciation | (389,361) |  |  | (350,256) |
Net investment properties | 2,092,301 |  |  | 1,922,847 |
Cash, cash equivalents and restricted cash | 137,762 |  |  | 44,854 |
Investment in unconsolidated entities | 56,131 |  |  | 107,944 |
Intangible assets, net | 101,167 |  |  | 81,026 |
Accounts and rents receivable | 34,528 |  |  | 30,059 |
Deferred costs and other assets, net | 51,145 |  |  | 25,685 |
Total assets | $ | 2,473,034 |  |  | $ | 2,212,415 |
Liabilities |  |  |
Debt, net | $ | 754,551 |  |  | $ | 533,082 |
Accounts payable and accrued expenses | 42,792 |  |  | 36,208 |
Distributions payable | 13,837 |  |  | 13,802 |
Intangible liabilities, net | 29,658 |  |  | 28,995 |
Other liabilities | 28,287 |  |  | 28,776 |
Total liabilities | 869,125 |  |  | 640,863 |
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, 67,472,553 shares issued and outstanding as of December 31, 2022 and 67,344,374 shares issued and outstanding as of December 31, 2021 | 67 |  |  | 67 |
Additional paid-in capital | 5,456,968 |  |  | 5,452,550 |
Distributions in excess of accumulated net income | (3,879,847) |  |  | (3,876,743) |
Accumulated comprehensive income (loss) | 26,721 |  |  | (4,322) |
Total stockholders' equity | 1,603,909 |  |  | 1,571,552 |
Total liabilities and stockholders' equity | $ | 2,473,034 |  |  | $ | 2,212,415 |

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Consolidated Statements of Operations and Comprehensive (Loss) Income
Dollars in thousands, except share and per share amounts, unaudited

| Three Months Ended December 31 |  | Year Ended December 31
| 2022 |  | 2021 |  | 2022 |  | 2021
Income |  |  |  |  |  |  |
Lease income, net | $ | 58,418 |  |  | $ | 52,481 |  |  | $ | 232,980 |  |  | $ | 207,350 |
Other property income | 275 |  |  | 327 |  |  | 1,161 |  |  | 1,087 |
Other fee income | 578 |  |  | 772 |  |  | 2,566 |  |  | 3,542 |
Total income | 59,271 |  |  | 53,580 |  |  | 236,707 |  |  | 211,979 |
Operating expenses |  |  |  |  |  |  |
Depreciation and amortization | 23,897 |  |  | 22,143 |  |  | 94,952 |  |  | 87,143 |
Property operating | 11,983 |  |  | 8,862 |  |  | 40,239 |  |  | 32,788 |
Real estate taxes | 7,330 |  |  | 6,531 |  |  | 32,925 |  |  | 31,312 |
General and administrative | 10,103 |  |  | 9,149 |  |  | 33,342 |  |  | 38,192 |
Direct listing costs | — |  |  | 18,065 |  |  | — |  |  | 19,769 |
Total operating expenses | 53,313 |  |  | 64,750 |  |  | 201,458 |  |  | 209,204 |
Other income (expense) |  |  |  |  |  |  |
Interest expense, net | (8,648) |  |  | (4,305) |  |  | (26,777) |  |  | (16,261) |
Loss on extinguishment of debt | (85) |  |  | — |  |  | (181) |  |  | (400) |
Gain on sale of investment properties, net | 1,393 |  |  | 6 |  |  | 38,249 |  |  | 1,522 |
Equity in earnings (losses) of unconsolidated entities | (121) |  |  | 3,957 |  |  | 3,663 |  |  | 6,398 |
Other income and expense, net | 1,378 |  |  | 761 |  |  | 2,030 |  |  | 606 |
Total other income (expense), net | (6,083) |  |  | 419 |  |  | 16,984 |  |  | (8,135) |
Net (loss) income | $ | (125) |  |  | $ | (10,751) |  |  | $ | 52,233 |  |  | $ | (5,360) |
Weighted-average common shares outstanding, basic | 67,428,549 |  |  | 69,117,723 |  |  | 67,406,233 |  |  | 71,072,933 |
Weighted-average common shares outstanding, diluted | 67,428,549 |  |  | 69,117,723 |  |  | 67,525,935 |  |  | 71,072,933 |
Net (loss) income per common share, basic and diluted | $ | (0.00) |  |  | $ | (0.16) |  |  | $ | 0.77 |  |  | $ | (0.08) |
Distributions declared per common share outstanding | $ | 0.21 |  |  | $ | 0.20 |  |  | $ | 0.82 |  |  | $ | 0.78 |
Distributions paid per common share outstanding | $ | 0.21 |  |  | $ | 0.20 |  |  | $ | 0.82 |  |  | $ | 0.78 |
Comprehensive (loss) income |  |  |  |  |  |  |
Net income (loss) | $ | (125) |  |  | $ | (10,751) |  |  | $ | 52,233 |  |  | $ | (5,360) |
Unrealized (loss) gain on derivatives | (860) |  |  | 2,235 |  |  | 32,052 |  |  | 3,795 |
Reclassification (to) from net income (loss) | (1,756) |  |  | 1,104 |  |  | (1,009) |  |  | 4,332 |
Comprehensive (loss) income | $ | (2,741) |  |  | $ | (7,412) |  |  | $ | 83,276 |  |  | $ | 2,767 |

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

| Three Months Ended December 31 |  | Year Ended December 31
| 2022 |  | 2021 |  | 2022 |  | 2021
Income |  |  |  |  |  |  |
Base rent | $ | 33,352 |  |  | $ | 31,945 |  |  | $ | 127,514 |  |  | $ | 119,448 |
Real estate tax recoveries | 6,300 |  |  | 5,558 |  |  | 25,482 |  |  | 25,198 |
CAM, insurance, and other recoveries | 6,368 |  |  | 5,836 |  |  | 23,864 |  |  | 22,092 |
Ground rent income | 3,401 |  |  | 3,278 |  |  | 13,292 |  |  | 12,816 |
Short-term and other lease income | 1,448 |  |  | 897 |  |  | 4,250 |  |  | 3,345 |
Provision for uncollectible billed rent and recoveries | (295) |  |  | (285) |  |  | (824) |  |  | (2,603) |
Reversal of uncollectible billed rent and recoveries | 124 |  |  | 570 |  |  | 1,271 |  |  | 5,206 |
Other property income | 265 |  |  | 328 |  |  | 1,123 |  |  | 1,087 |
Total income | 50,963 |  |  | 48,127 |  |  | 195,972 |  |  | 186,589 |
Operating Expenses |  |  |  |  |  |  |
Property operating expenses | 10,500 |  |  | 8,374 |  |  | 35,085 |  |  | 30,681 |
Real estate taxes | 6,601 |  |  | 6,010 |  |  | 27,695 |  |  | 28,467 |
Total operating expenses | 17,101 |  |  | 14,384 |  |  | 62,780 |  |  | 59,148 |
Same Property NOI | 33,862 |  |  | 33,743 |  |  | 133,192 |  |  | 127,441 |
JV Same Property NOI | 1,966 |  |  | 1,945 |  |  | 7,885 |  |  | 7,380 |
Pro Rata Same Property NOI | $ | 35,828 |  |  | $ | 35,688 |  |  | $ | 141,077 |  |  | $ | 134,821 |

Reconciliation of Net (Loss) Income to Pro Rata Same Property NOI
The following table is a reconciliation of Net (Loss) Income to Pro Rata Same Property NOI:

| Three Months Ended December 31 |  | Year Ended December 31
| 2022 |  | 2021 |  | 2022 |  | 2021
Net (loss) income | $ | (125) |  |  | $ | (10,751) |  |  | $ | 52,233 |  |  | $ | (5,360) |
Adjustments to reconcile to non-GAAP metrics: |  |  |  |  |  |  |
Other income and expense, net | (1,378) |  |  | (761) |  |  | (2,030) |  |  | (606) |
Equity in losses (earnings) of unconsolidated entities | 121 |  |  | (3,957) |  |  | (3,663) |  |  | (6,398) |
Interest expense, net | 8,648 |  |  | 4,305 |  |  | 26,777 |  |  | 16,261 |
Loss on extinguishment of debt | 85 |  |  | — |  |  | 181 |  |  | 400 |
Gain on sale of investment properties, net | (1,393) |  |  | (6) |  |  | (38,249) |  |  | (1,522) |
Depreciation and amortization | 23,897 |  |  | 22,143 |  |  | 94,952 |  |  | 87,143 |
General and administrative | 10,103 |  |  | 9,149 |  |  | 33,342 |  |  | 38,192 |
Direct listing costs | — |  |  | 18,065 |  |  | — |  |  | 19,769 |
Other fee income | (578) |  |  | (772) |  |  | (2,566) |  |  | (3,542) |
Adjustments to NOI (a) | (1,671) |  |  | (1,854) |  |  | (9,743) |  |  | (7,528) |
NOI | 37,709 |  |  | 35,561 |  |  | 151,234 |  |  | 136,809 |
NOI from other investment properties | (3,847) |  |  | (1,818) |  |  | (18,042) |  |  | (9,368) |
Same Property NOI | 33,862 |  |  | 33,743 |  |  | 133,192 |  |  | 127,441 |
IAGM Same Property NOI at share | 1,966 |  |  | 1,945 |  |  | 7,885 |  |  | 7,380 |
Pro Rata Same Property NOI | $ | 35,828 |  |  | $ | 35,688 |  |  | $ | 141,077 |  |  | $ | 134,821 |

(a)Adjustments to NOI include termination fee income and expense and GAAP Rent Adjustments.

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

| Three Months Ended December 31 |  | Year Ended December 31
| 2022 |  | 2021 |  | 2022 |  | 2021
Net (loss) income | $ | (125) |  |  | $ | (10,751) |  |  | $ | 52,233 |  |  | $ | (5,360) |
Depreciation and amortization related to investment properties | 23,698 |  |  | 21,929 |  |  | 94,142 |  |  | 86,257 |
Gain on sale of investment properties, net | (1,393) |  |  | (6) |  |  | (38,249) |  |  | (1,522) |
Unconsolidated joint venture adjustments (a) | 1,595 |  |  | (1,230) |  |  | 3,850 |  |  | 4,713 |
NAREIT FFO Applicable to Common Shares and Dilutive Securities | 23,775 |  |  | 9,942 |  |  | 111,976 |  |  | 84,088 |
Amortization of market-lease intangibles and inducements, net | (995) |  |  | (914) |  |  | (5,589) |  |  | (4,318) |
Straight-line rent adjustments, net | (690) |  |  | (903) |  |  | (3,815) |  |  | (2,805) |
Direct listing costs | — |  |  | 18,065 |  |  | — |  |  | 19,769 |
Adjusting items, net (b) | 705 |  |  | (13) |  |  | 2,798 |  |  | 2,201 |
Unconsolidated joint venture adjusting items, net (c) | 282 |  |  | 106 |  |  | 582 |  |  | 672 |
Core FFO Applicable to Common Shares and Dilutive Securities | $ | 23,077 |  |  | $ | 26,283 |  |  | $ | 105,952 |  |  | $ | 99,607 |
Weighted average common shares outstanding - basic | 67,428,549 |  |  | 69,117,723 |  |  | 67,406,233 |  |  | 71,072,933 |
Dilutive effect of unvested restricted shares (d) | — |  |  | — |  |  | 119,702 |  |  | — |
Weighted average common shares outstanding - diluted | 67,428,549 |  |  | 69,117,723 |  |  | 67,525,935 |  |  | 71,072,933 |
NAREIT FFO Applicable to Common Shares and Dilutive Securities per share | $ | 0.35 |  |  | $ | 0.14 |  |  | $ | 1.66 |  |  | $ | 1.18 |
Core FFO Applicable to Common Shares and Dilutive Securities per share | $ | 0.34 |  |  | $ | 0.38 |  |  | $ | 1.57 |  |  | $ | 1.40 |

(a)Represents our share of depreciation, amortization and gain on sale related to investment properties held in IAGM.
(b)Adjusting items, net, are primarily loss on extinguishment of debt, amortization of debt discounts and financing costs, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as miscellaneous and settlement income.
(c)Represents our share of amortization of market lease intangibles and inducements, net, straight line rent adjustments, net and adjusting items, net related to IAGM.
(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 three months ended December 31, 2022, three months ended December 31, 2021, and year ended December 31, 2021, unvested restricted shares were antidilutive and therefore excluded from the denominator in the diluted earnings per share calculation in accordance with GAAP.

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EBITDA, Pro Rata
Dollars in thousands
The following table presents the Company’s calculation of EBITDA and Adjusted EBITDA:

| Three Months Ended December 31 |  | Year Ended December 31
| 2022 |  | 2021 |  | 2022 |  | 2021
Net (loss) income | $ | (125) |  |  | $ | (10,751) |  |  | $ | 52,233 |  |  | $ | (5,360) |
Interest expense | 9,206 |  |  | 4,977 |  |  | 28,978 |  |  | 19,362 |
Income tax expense (benefit) | 129 |  |  | 102 |  |  | 458 |  |  | 377 |
Depreciation and amortization | 25,358 |  |  | 23,920 |  |  | 100,731 |  |  | 95,083 |
EBITDA | 34,568 |  |  | 18,248 |  |  | 182,400 |  |  | 109,462 |
Adjustments to reconcile to Adjusted EBITDA |  |  |  |  |  |  |
Direct listing costs | — |  |  | 18,065 |  |  | — |  |  | 19,769 |
Gain on sale of investment properties, net | (1,259) |  |  | (3,013) |  |  | (40,178) |  |  | (4,749) |
Loss on debt extinguishment | 95 |  |  | — |  |  | 302 |  |  | 526 |
Non-operating income and expense, net (a) | (243) |  |  | (887) |  |  | (1,070) |  |  | (893) |
Other leasing adjustments (b) | (1,539) |  |  | (1,770) |  |  | (9,086) |  |  | (6,842) |
Adjusted EBITDA | $ | 31,622 |  |  | $ | 30,643 |  |  | $ | 132,368 |  |  | $ | 117,273 |

(a)Non-operating income and expense, net, includes other items which are not pertinent to measuring ongoing operating performance, such as miscellaneous and settlement income.
(b)Other leasing adjustments includes amortization of market lease intangibles and straight-line rent adjustments.
Financial Leverage Ratios
Dollars in thousands
The following table presents the calculation of net debt and Net Debt-to-Adjusted EBITDA:

| As of December 31,
| 2022 |  | 2021
Pro Rata Net Debt: |  |  |
Pro Rata Outstanding Debt, net | $ | 805,253 |  |  | $ | 624,289 |
Less: Pro Rata Cash | (164,448) |  |  | (79,628) |
Pro Rata Net Debt | $ | 640,805 |  |  | $ | 544,661 |
Pro Rata Net Debt-to-Adjusted EBITDA (trailing 12 months): |  |  |
Pro Rata Net Debt | $ | 640,805 |  |  | $ | 544,661 |
Adjusted EBITDA (trailing 12 months) | 132,368 |  |  | 117,273 |
Net Debt-to-Adjusted EBITDA | 4.8x |  | 4.6x

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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. We pursue our 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. As of December 31, 2022, the Company is an owner and manager of 62 retail properties, representing 10.3 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, 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 2023 guidance and expected timing and payment of dividends, or regarding management’s intentions, beliefs, expectations, representation, 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 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: 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; the effects and duration of the COVID-19 pandemic; 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.

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