On July 31, 2024, InvenTrust Properties Corp (IVT, Financial) released its 8-K filing for the second quarter of 2024. InvenTrust Properties Corp is a U.S.-based Real Estate Investment Trust (REIT) focused on owning, leasing, redeveloping, acquiring, and managing a multi-tenant retail platform. The company's portfolio includes grocery-anchored community and neighborhood centers and power centers, primarily in the Sun Belt region.
Quarterly Performance Overview
For the three months ended June 30, 2024, InvenTrust Properties Corp reported a net income of $1.5 million, or $0.02 per diluted share, compared to $2.1 million, or $0.03 per diluted share, for the same period in 2023. Despite the slight decline in net income, the company achieved significant milestones in other financial metrics.
Key Financial Achievements
InvenTrust Properties Corp reported Nareit Funds From Operations (FFO) of $30.1 million, or $0.44 per diluted share, up from $29.2 million, or $0.43 per diluted share, in the same period last year. Core FFO remained steady at $29.1 million, or $0.43 per diluted share, for both Q2 2024 and Q2 2023.
Operational Highlights
The company achieved a Same Property Net Operating Income (NOI) growth of 2.6% for the quarter. Leased occupancy as of June 30, 2024, stood at 96.4%, with anchor leased occupancy at 99.1% and small shop leased occupancy at 91.7%. InvenTrust executed 60 leases totaling approximately 445,000 square feet of Gross Leasable Area (GLA), with a blended comparable lease spread of 10.3%.
Recent Acquisitions
InvenTrust acquired two neighborhood centers during the quarter: Moores Mill, a 70,000 square foot center anchored by Publix in Atlanta, Georgia, and Maguire Groves, a 33,000 square foot center adjacent to Plantation Grove in the Orlando-Kissimmee, Florida market. These acquisitions were funded using cash on hand.
Liquidity and Capital Structure
As of June 30, 2024, InvenTrust had $384.1 million in total liquidity, including $34.1 million in cash and cash equivalents and $350.0 million available under its Revolving Credit Facility. The company extinguished $15.7 million in pooled mortgages payable during the quarter, further strengthening its balance sheet.
Updated 2024 Guidance
InvenTrust has updated its 2024 guidance, increasing its Same Property NOI growth expectations to a range of 3.50% to 4.50%, up from the previous range of 2.75% to 3.75%. The company also adjusted its Net Income per diluted share guidance to a range of $0.08 to $0.12.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income | $1.5 million | $2.1 million |
| Nareit FFO | $30.1 million | $29.2 million |
| Core FFO | $29.1 million | $29.1 million |
| Same Property NOI Growth | 2.6% | N/A |
| Leased Occupancy | 96.4% | N/A |
Commentary
"The positive fundamentals within InvenTrust’s portfolio continued in the second quarter of 2024, generating strong Same-Property NOI and healthy leasing spreads," stated Daniel (DJ) Busch, President and CEO of InvenTrust. "Based on our outperformance during the first half of the year, we are increasing our Same Property NOI guidance by 75 basis points at the midpoint. And with our flexible balance sheet, we continue to make conservative and disciplined capital allocation decisions as we selectively acquire additional assets in the Sun Belt."
Conclusion
InvenTrust Properties Corp's Q2 2024 earnings report highlights the company's robust performance and strategic acquisitions, despite a slight dip in net income. The company's strong Same Property NOI growth, high occupancy rates, and disciplined capital allocation underscore its solid position in the REIT sector. Investors and stakeholders can look forward to continued growth and stability as InvenTrust navigates the evolving market landscape.
Explore the complete 8-K earnings release (here) from InvenTrust Properties Corp for further details.
