InvenTrust Properties Q2 Earnings Call Highlights

Key Points

• Strong second-quarter performance: Same-property NOI rose 4.1%, while Nareit FFO per share increased 11.1% and Core FFO per share grew 9.1%. InvenTrust reaffirmed its same-property NOI and Core FFO outlook and raised full-year Nareit FFO guidance to $2.01–$2.07 per share.
• Leasing demand remained robust: The company executed 76 leases covering approximately 464,000 square feet, with an 88% year-to-date retention rate and 8.5% comparable blended lease spreads. Leased occupancy was 96.2%, and management expects improvement as vacant anchor spaces are leased and signed-but-not-open tenants begin paying rent.
• Expansion continued across the Sun Belt: InvenTrust invested more than $290 million in six properties and an outparcel through the first half of 2026, adding assets in Charlotte, Knoxville, Charleston and Greensboro. Management also reported $489 million in liquidity and expects year-end net debt-to-EBITDA below 5 times.

InvenTrust Properties NYSE: IVT said second-quarter operating results reflected continued demand for its open-air, necessity-based retail centers, with same-property net operating income growth accelerating and leasing activity remaining strong.

President and Chief Executive Officer DJ Busch said the company’s cash flow growth was supported by tenant retention, leasing activity and the conversion of signed-but-not-open leases into occupied, rent-paying space. Same-property NOI increased 4.1% from the year-earlier quarter, while year-to-date Nareit funds from operations per share rose 11.1% and Core FFO per share increased about 9.1%.

“Retailer demand remains concentrated in well-located, open air, necessity-based centers, and limited new supply continues to provide a favorable backdrop for long-term rent growth,” Busch said.

Financial Results and Guidance

Chief Financial Officer Mike Phillips said second-quarter same-property NOI totaled $48.5 million. Base-rent increases contributed 320 basis points to growth, including approximately 180 basis points from contractual rent increases. Leasing spreads, redevelopment activity, percentage rent, specialty income and expense reimbursements also supported results.

Those gains were partly offset by a 50-basis-point temporary occupancy impact and 20 basis points of bad debt. Phillips said same-property NOI growth could be uneven over the remainder of 2026, with third-quarter results affected by the timing of operating expenses related to scheduled projects. The company expects fourth-quarter growth to reaccelerate as leases begin and signed-but-not-open leases convert to revenue.

Nareit FFO totaled $39.8 million, or $0.50 per diluted share, up 11.1% year over year. Core FFO rose 9.1% to $0.48 per share. For the first six months, Nareit FFO was $1.03 per diluted share, up 10.8%, while Core FFO was $0.98 per share, up 8.9%.

The company reaffirmed full-year same-property NOI growth guidance of 3.25% to 4.25% and maintained Core FFO guidance of $1.92 to $1.96 per share. It raised Nareit FFO guidance to a range of $2.01 to $2.07 per share, citing a non-cash revenue increase associated with recent acquisitions.

In June, InvenTrust completed a $250 million private placement of senior notes and used proceeds to partially repay its credit line. At quarter-end, total liquidity was $489 million, including $64 million of cash and $425 million of available revolving-credit capacity. Net leverage was 31.9%, while net debt to adjusted EBITDA was 5.3 times on a quarterly annualized basis. The company also declared a quarterly dividend of $0.25 per share, up 5% from a year earlier.

Leasing and Occupancy

Chief Operating Officer Christy David said the company executed 76 leases covering about 464,000 square feet during the quarter and recorded an 88% year-to-date retention rate. Comparable blended lease spreads were 8.5%, consisting of 18.7% on new leases and 7.9% on renewals. Annualized base rent per square foot rose 3.8% from a year earlier to $20.94.

Leased occupancy ended the quarter at 96.2%, down 20 basis points sequentially, largely because of a former Painted Tree anchor space at the company’s West Park property in Glen Allen, Virginia. David said InvenTrust has a letter of intent from a national retailer for that location.

Small-shop leased occupancy increased 30 basis points to 93.2%, while anchor leased occupancy declined 40 basis points from the first quarter to 98.1%. The company had six vacant big-box spaces at quarter-end; four were associated with redevelopment or disposition activity, one was the former Painted Tree space and one was a former Party City location at a Dallas property.

David said InvenTrust expects to bring three of the vacant anchors “into execution” by year-end and anticipates approaching all-time highs in leased occupancy by the first quarter of 2027, followed by economic occupancy improvement around the third quarter of 2027.

At Plantation Grove in the Orlando metropolitan area, the company signed Publix to a lease that David described as the first step toward a future redevelopment. The project would replace the existing store with Publix’s new prototype, with groundbreaking expected in 2026.

Acquisitions Expand Sun Belt Footprint

InvenTrust acquired six properties and one outparcel at an existing center for approximately $290 million through the first half of 2026. Busch said the company has expanded into emerging Sun Belt markets including Charleston, South Carolina; Greensboro, North Carolina; and Knoxville, Tennessee.

During the quarter, the company closed three property acquisitions and completed another acquisition after quarter-end. The four assets represented more than $165 million of investment. They included:

• 3609 South, a fully leased unanchored strip center in Charlotte, North Carolina.
• Western Plaza, an approximately 162,000-square-foot Knoxville community center anchored by The Fresh Market and Crunch Fitness.
• Sweetgrass Corner, an approximately 95,000-square-foot Charleston community center anchored by Trader Joe’s, HomeSense and Golf Galaxy.
• New Garden Crossing, a fully leased, 169,000-square-foot Greensboro community center anchored by Lowe’s Foods, Marshalls, HomeGoods and Office Depot.

Busch said the company’s acquisition pipeline has generally remained around $2 billion, though it fluctuates and tends to be quieter in the middle of the year. He said InvenTrust is targeting blended initial acquisition yields in the low-6% range and unlevered internal rates of return in the low- to mid-7% range.

The company may pair additional purchases with selective asset sales, focusing on properties that remain solid but do not fit its desired long-term growth profile. Busch said two assets were currently on the market and that disposition activity is expected to be relatively limited compared with the company’s prior California sales.

While the company’s net debt-to-EBITDA ratio rose from year-end levels, Busch said late-quarter asset closings affected the annualized measure and that InvenTrust expects to finish the year below 5 times based on its net investment expectations. He said management is comfortable with a forward leverage range of 5 to 6 times and believes the company can continue funding growth without immediately accessing equity markets.

About InvenTrust Properties (NYSE:IVT)

InvenTrust Properties Corp is a self‐managed real estate investment trust specializing in suburban and urban retail real estate. Headquartered in Downers Grove, Illinois, the company focuses on the acquisition, leasing and management of open‐air shopping centers that serve everyday consumer needs.

The company’s portfolio is concentrated in neighborhood and community retail assets anchored by grocery stores, pharmacies and national service tenants. InvenTrust engages in active leasing strategies, property management services and selective development and redevelopment initiatives designed to enhance long‐term cash flow and tenant mix.

InvenTrust Properties was created in 2019 through the spin‐off of its predecessor, Inland Real Estate Investment Corp, and adopted its current name upon separation.

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