InvenTrust Properties Corp. Announces Upsizing and Pricing of Common Stock Offering

Rhea-AI Summary

InvenTrust Properties Corp. (NYSE: IVT) has priced an underwritten registered public offering of 8,000,000 shares of its common stock at $28.00 per share, totaling $224.0 million in gross proceeds. The company has granted underwriters a 30-day option to purchase up to an additional 1,200,000 shares. The offering is expected to close on September 25, 2024.

J.P. Morgan, BofA Securities, and Wells Fargo Securities are acting as joint-book-running managers, with Jefferies and KeyBanc Capital Markets as additional bookrunners. BTIG and Fifth Third Securities are co-managers for the public offering.

InvenTrust plans to use the net proceeds for general corporate purposes, including property acquisitions, debt repayment, and working capital. The offering is made pursuant to an effective shelf registration statement filed with the SEC.

Positive

• Raised $224.0 million in gross proceeds through public offering
• Potential for additional $33.6 million if underwriters exercise their option
• Funds to be used for property acquisitions and debt repayment, potentially strengthening the company's portfolio and balance sheet

Negative

• Potential dilution of existing shareholders' ownership
• Increased share count may impact earnings per share

Insights

Financial Analyst

InvenTrust Properties Corp.'s upsized common stock offering of 8 million shares at $28.00 per share, raising $224 million in gross proceeds, is a significant capital raise for the company. This move strengthens IVT's financial position and provides flexibility for strategic initiatives. The additional 1.2 million share option could potentially increase proceeds to $257.6 million.

The intended use of proceeds for property acquisitions, debt repayment and working capital aligns with typical REIT growth strategies. Specifically, the plan to repay a $72.5 million loan from Bank of America and reduce revolving credit facility debt should improve the company's balance sheet and potentially lower interest expenses.

However, investors should note that this offering will dilute existing shareholders' ownership. The impact on FFO per share and dividend coverage will be important to monitor. The pricing at $28.00 per share relative to recent trading prices will determine whether this was done at a premium or discount, affecting the market's perception of the deal.

Real Estate Market Analyst

This capital raise by InvenTrust Properties Corp. signals confidence in the retail real estate market, particularly in the grocery-anchored and necessity-based retail sectors where IVT specializes. The company's ability to secure underwriting from major financial institutions like J.P. Morgan, BofA Securities and Wells Fargo suggests strong institutional interest in the REIT sector.

The timing of this offering is noteworthy, coming amidst a challenging interest rate environment for REITs. IVT's success in pricing this offering could indicate that investors see value in well-positioned retail REITs despite broader market concerns. The company's focus on acquiring additional properties suggests management sees attractive opportunities in the market, potentially at favorable cap rates.

Investors should watch for details on the types and locations of properties IVT plans to acquire with these funds, as this will provide insight into the company's growth strategy and market outlook. The move to pay down debt, including the revolving credit facility, is prudent given the current high interest rate environment and could enhance IVT's financial flexibility for future opportunities.

DOWNERS GROVE, Ill.--(BUSINESS WIRE)-- InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today announced it has priced an underwritten registered public offering of 8,000,000 shares of its common stock at a price to the public of $28.00 per share for total gross proceeds of $224.0 million. As part of the offering, the Company also granted the underwriters a 30-day option to purchase up to an additional 1,200,000 shares of the Company’s common stock at the public offering price, less the underwriting discount. The offering is expected to close on September 25, 2024 subject to customary closing conditions.

J.P. Morgan, BofA Securities, and Wells Fargo Securities are acting as joint-book-running managers for the public offering. Jefferies and KeyBanc Capital Markets are acting as additional bookrunners for the public offering. BTIG and Fifth Third Securities are acting as co-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”). A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering was filed with the SEC and is available free of charge by visiting EDGAR on the SEC’s website at www.sec.gov. Copies of the final 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 “expected” 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.

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Investor Relations

Dan Lombardo

Vice President of Investor Relations

630-570-0605

dan.lombardo@inventrustproperties.com

Source: InvenTrust Properties Corp.

FAQ

How many shares of common stock did InvenTrust Properties (IVT) offer in its public offering?

InvenTrust Properties (IVT) offered 8,000,000 shares of its common stock in the public offering, with an option for underwriters to purchase an additional 1,200,000 shares.

What was the price per share for InvenTrust Properties' (IVT) public offering?

The price per share for InvenTrust Properties' (IVT) public offering was $28.00.

How much did InvenTrust Properties (IVT) raise in gross proceeds from the offering?

InvenTrust Properties (IVT) raised $224.0 million in gross proceeds from the offering.

When is the expected closing date for InvenTrust Properties' (IVT) public offering?

The expected closing date for InvenTrust Properties' (IVT) public offering is September 25, 2024, subject to customary closing conditions.

What does InvenTrust Properties (IVT) plan to use the proceeds from the offering for?

InvenTrust Properties (IVT) plans to use the proceeds for general corporate purposes, including property acquisitions, debt repayment, and working capital.