InvenTrust Properties Corp. Announces Public Offering of Common Stock

Rhea-AI Summary

InvenTrust Properties Corp. (NYSE: IVT) has announced a public offering of 6,500,000 shares of its common stock, with an option for underwriters to purchase an additional 975,000 shares. The offering, subject to market conditions, will be managed by J.P. Morgan, BofA Securities, and Wells Fargo Securities as joint book-running managers.

The company plans to use the net proceeds for general corporate purposes, including funding property acquisitions, repaying short-term and long-term debt (including a $72.5 million loan with Bank of America), and providing working capital. The offering is being made through an effective shelf registration statement filed with the SEC.

Positive

• Potential to raise significant capital through the public offering
• Opportunity to fund property acquisitions and expand portfolio
• Ability to repay short-term and long-term debt, including a $72.5 million loan
• Increase in working capital for operational flexibility

Negative

• Potential dilution of existing shareholders' ownership
• Increased share count may negatively impact earnings per share
• Market conditions may affect the success and pricing of the offering

Insights

Financial Analyst

InvenTrust Properties Corp.'s public offering of 6,500,000 shares of common stock, with an additional 975,000 shares option, is a significant move that could substantially impact the company's financial position. This equity raise aims to strengthen IVT's balance sheet and fund strategic initiatives.

The offering's proceeds will be used for multiple purposes, including:

• Acquiring additional properties, potentially expanding IVT's real estate portfolio
• Repaying short-term and long-term debt, including a $72.5 million loan with Bank of America
• Providing working capital for operations

While this move may dilute existing shareholders, it could improve IVT's financial flexibility and growth prospects. The involvement of major underwriters like J.P. Morgan, BofA Securities and Wells Fargo Securities lends credibility to the offering. However, investors should carefully consider the impact on earnings per share and the company's ability to effectively deploy the new capital.

Real Estate Investment Expert

This public offering by InvenTrust Properties Corp. signals a strategic move in the REIT sector. With a current market cap of about $2 billion, this offering could significantly boost IVT's capital base. The focus on property acquisitions suggests an aggressive growth strategy in the commercial real estate market.

Key points to consider:

• The timing of this offering may indicate IVT sees attractive acquisition opportunities in the current market
• Debt repayment could improve the company's leverage ratios and borrowing capacity
• Additional working capital may enhance operational flexibility in a potentially challenging real estate environment

Investors should monitor how efficiently IVT deploys this capital, particularly in property acquisitions, as it will be important for future revenue growth and dividend sustainability. The success of this offering could position IVT more competitively in the retail REIT space, but execution risks remain in property selection and market timing.

DOWNERS GROVE, Ill.--(BUSINESS WIRE)-- InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today announced that it has commenced an underwritten registered public offering to sell 6,500,000 shares of its common stock. The Company expects to grant the underwriters in the offering a 30-day option to purchase up to an additional 975,000 shares of its common stock. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed or as to the actual size or terms of the offering.

J.P. Morgan, BofA Securities, and Wells Fargo Securities will act as joint book-running managers for the public offering.

The Company intends to use the net proceeds for general corporate purposes, including, but not limited to, funding the acquisition of additional properties, repayment of short-term and long-term indebtedness (including mortgage loans, including a $72.5 million loan with Bank of America, N.A., and amounts outstanding from time to time under the Company’s revolving credit facility) and providing for working capital.

The offering is being made pursuant to an effective shelf registration statement (containing a prospectus) filed with the Securities and Exchange Commission (the “SEC”). The proposed offering will be made only by means of a preliminary prospectus supplement and accompanying prospectus, which will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. A copy of the preliminary prospectus supplement and accompanying prospectus, when available, may also be obtained by contacting J.P. Morgan Securities LLC, c/o: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus Department, telephone: 1-800-294-1322, or by email at dg.prospectus_requests@bofa.com; and Wells Fargo Securities, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, at 800-645-3751 (option #5) or email a request to WFScustomerservice@wellsfargo.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.

About InvenTrust Properties Corp.

InvenTrust Properties Corp. 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. Management pursues the Company's 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 practices and standards.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. When used in this press release, the words “expect” and “intend,” or the negative of these words, or similar words, expressions or phrases that are predictions of or indicate future events and that do not relate solely to historical matters, are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise. InvenTrust does not guarantee that the transactions and events described will happen as described (or that they will happen at all). You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. While forward-looking statements reflect InvenTrust’s good faith beliefs, they are not guarantees of future performance. InvenTrust undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law. In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur as described, or at all.

Additional information concerning factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in InvenTrust’s SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2023 and other documents subsequently filed by the Company with the SEC. Copies of each filing may be obtained from InvenTrust or the SEC. Such forward-looking statements should be regarded solely as reflections of InvenTrust’s current plans and estimates. Actual results may differ materially from what is expressed or forecast in this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240923092122/en/

Investor Relations

Dan Lombardo

Vice President of Investor Relations

630-570-0605

dan.lombardo@inventrustproperties.com

Source: InvenTrust Properties Corp.

FAQ

How many shares is InvenTrust Properties (IVT) offering in its public offering?

InvenTrust Properties (IVT) is offering 6,500,000 shares of its common stock, with an option for underwriters to purchase an additional 975,000 shares.

What will InvenTrust Properties (IVT) use the proceeds from the public offering for?

InvenTrust Properties (IVT) intends to use the net proceeds for general corporate purposes, including funding property acquisitions, repaying debt, and providing working capital.

Who are the joint book-running managers for InvenTrust Properties' (IVT) public offering?

J.P. Morgan, BofA Securities, and Wells Fargo Securities are acting as joint book-running managers for InvenTrust Properties' (IVT) public offering.

What is the size of the loan InvenTrust Properties (IVT) plans to repay with Bank of America?

InvenTrust Properties (IVT) plans to repay a $72.5 million loan with Bank of America using part of the proceeds from the public offering.