Inventrust Properties (IVT) investor relations material

Portfolio strategy and market focus

• Operates 78 open-air essential retail properties, primarily in Sun Belt markets, with a focus on grocery-anchored centers and power centers exhibiting strong growth characteristics.

• Migration trends continue to benefit core markets in the Carolinas, Florida, and Texas, with emerging secondary markets like Nashville, Knoxville, and Greensboro offering new opportunities due to lower costs of living.

• Lack of new retail supply in the Sun Belt supports strong performance, as new housing supply indirectly benefits retail centers by increasing customer wallet share.

• Portfolio growth has included $290 million in acquisitions year-to-date, expanding into new and existing markets such as Charlotte, Nashville, Knoxville, and Greensboro.

• The company aims to build scale in new markets when appropriate but can operate efficiently with one or two assets in certain areas.

Leasing, tenant mix, and operational performance

• Leasing pipeline remains robust, with $5.6 million in signed or near-signed deals and an increase in pipeline depth compared to last year.

• Restaurant tenants comprise just over 20% of the portfolio, with health services now close to 12%; both categories have grown post-pandemic due to changing traffic patterns and hybrid work.

• Restaurant leases are capital intensive and carry higher risk, but credit quality and tenant capital contributions are closely managed.

• Local mom-and-pop tenants make up about 10% of the portfolio, with ongoing monitoring and replacement strategies in place for underperformers.

• Tenant retention remains high, and anchor tenant turnover is the primary driver of CapEx needs.

Capital allocation, acquisitions, and dispositions

• Maintains significant balance sheet capacity to fund growth without immediate need for equity issuance; net debt to EBITDA expected to end the year below 5.

• Acquisition strategy is disciplined, focusing on deals that are accretive to cash flow and economically sensible, with flexibility to pause activity in frothy markets.

• Dispositions are driven by both geographic and long-term asset competitiveness considerations, with a focus on grocer performance and market positioning.

• Recent acquisitions in emerging markets have offered initial yields 25–50 basis points higher than core Sun Belt markets.

• Asset sales and selective use of the balance sheet are preferred funding sources for acquisitions in the current environment.