UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

or

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-40896

INVENTRUST PROPERTIES CORP.

(Exact name of registrant as specified in its charter)

Maryland				34-2019608
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)
3025 Highland Parkway,		Suite 350
Downers Grove,	Illinois	60515		(855)	377-0510
(Address of principal executive offices) (Zip Code)				(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock, $0.001 par value	IVT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐ No ☒

As of October 28, 2024, there were 77,130,431 shares of the registrant's common stock outstanding.

INVENTRUST PROPERTIES CORP.

Quarterly Report on Form 10-Q

For the quarterly period ended September 30, 2024

Table of Contents

	Part I - Financial Information	Page
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023	1
	Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income for the three and nine months ended September 30, 2024 and 2023 (unaudited)	2
	Condensed Consolidated Statements of Equity for the three and nine months ended September 30, 2024 and 2023 (unaudited)	3
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (unaudited)	5
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	31
	Part II - Other Information
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	32
	Signatures	33

-i-

INVENTRUST PROPERTIES CORP.

Condensed Consolidated Balance Sheets

(in thousands, except share amounts)

	As of
	September 30, 2024		December 31, 2023
	(unaudited)
Assets
Investment properties
Land	$	710,160	$	694,668
Building and other improvements	2,013,459		1,956,117
Construction in progress	11,716		5,889
Total	2,735,335		2,656,674
Less accumulated depreciation	(496,559)		(461,352)
Net investment properties	2,238,776		2,195,322
Cash, cash equivalents and restricted cash	202,758		99,763
Intangible assets, net	107,004		114,485
Accounts and rents receivable	34,797		35,353
Deferred costs and other assets, net	37,146		42,408
Total assets	$	2,620,481	$	2,487,331
Liabilities
Debt, net	$	740,109	$	814,568
Accounts payable and accrued expenses	48,683		44,583
Distributions payable	17,455		14,594
Intangible liabilities, net	30,369		30,344
Other liabilities	28,660		29,198
Total liabilities	865,276		933,287
Commitments and contingencies
Stockholders' Equity
Preferred stock, $0.001 par value, 40,000,000 shares authorized, none outstanding	—		—
Common stock, $0.001 par value, 146,000,000 shares authorized, 77,130,431 shares issued and outstanding as of September 30, 2024 and 67,807,831 shares issued and outstanding as of December 31, 2023	77		68
Additional paid-in capital	5,721,592		5,468,728
Distributions in excess of accumulated net income	(3,977,152)		(3,932,826)
Accumulated comprehensive income	10,688		18,074
Total stockholders' equity	1,755,205		1,554,044
Total liabilities and stockholders' equity	$	2,620,481	$	2,487,331

See accompanying notes to the condensed consolidated financial statements.

1

INVENTRUST PROPERTIES CORP.

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income

(Unaudited)

(in thousands, except share and per share amounts)

	Three months ended September 30				Nine months ended September 30
	2024		2023		2024		2023
Income
Lease income, net	$	68,132	$	63,716	$	201,681	$	192,814
Other property income	389		346		1,061		1,060
Other fee income	—		—		—		80
Total income	68,521		64,062		202,742		193,954
Operating expenses
Depreciation and amortization	28,134		30,318		85,092		85,339
Property operating	10,795		11,070		31,037		31,056
Real estate taxes	9,205		8,781		27,232		27,361
General and administrative	8,133		7,610		24,768		23,389
Total operating expenses	56,267		57,779		168,129		167,145
Other (expense) income
Interest expense, net	(9,470)		(9,555)		(28,744)		(28,441)
Impairment of real estate assets	(3,854)		—		(3,854)		—
Gain on sale of investment properties	334		1,707		334		2,691
Equity in earnings (losses) of unconsolidated entities	—		67		—		(447)
Other income and expense, net	197		676		1,510		1,767
Total other (expense) income, net	(12,793)		(7,105)		(30,754)		(24,430)
Net (loss) income	$	(539)	$	(822)	$	3,859	$	2,379
Weighted-average common shares outstanding - basic	68,526,238		67,531,335		68,101,901		67,521,110
Weighted-average common shares outstanding - diluted	68,526,238		67,531,335		68,659,319		67,720,485
Net (loss) income per common share - basic	$	(0.01)	$	(0.01)	$	0.06	$	0.04
Net (loss) income per common share - diluted	$	(0.01)	$	(0.01)	$	0.06	$	0.04
Distributions declared per common share	$	0.23	$	0.22	$	0.68	$	0.65
Distributions paid per common share	$	0.23	$	0.22	$	0.67	$	0.64
Comprehensive (loss) income
Net (loss) income	$	(539)	$	(822)	$	3,859	$	2,379
Unrealized (loss) gain on derivatives, net	(7,145)		5,978		2,560		13,496
Reclassification to net (loss) income	(3,315)		(4,213)		(9,946)		(11,089)
Comprehensive (loss) income	$	(10,999)	$	943	$	(3,527)	$	4,786

See accompanying notes to the condensed consolidated financial statements.

2

INVENTRUST PROPERTIES CORP.

Condensed Consolidated Statements of Equity

(Unaudited)

(in thousands, except share amounts)

	Number of Shares	Common Stock		Additional Paid-in Capital		Distributions in Excess of Accumulated Net Income		Accumulated Comprehensive Income		Total
Beginning balance, January 1, 2024	67,807,831	$	68	$	5,468,728	$	(3,932,826)	$	18,074	$	1,554,044
Net income	—	—		—		2,900		—		2,900
Unrealized gain on derivatives	—	—		—		—		7,319		7,319
Reclassification to interest expense, net	—	—		—		—		(3,317)		(3,317)
Distributions declared	—	—		—		(15,360)		—		(15,360)
Stock-based compensation, net	66,697	—		2,463		—		—		2,463
Ending balance, March 31, 2024	67,874,528	$	68	$	5,471,191	$	(3,945,286)	$	22,076	$	1,548,049
Net income	—	—		—		1,498		—		1,498
Unrealized gain on derivatives	—	—		—		—		2,386		2,386
Reclassification to interest expense, net	—	—		—		—		(3,314)		(3,314)
Distributions declared		—		—		(15,370)		—		(15,370)
Stock-based compensation, net	42,600	—		2,324		—		—		2,324
Ending balance, June 30, 2024	67,917,128	$	68	$	5,473,515	$	(3,959,158)	$	21,148	$	1,535,573
Net loss	—	—		—		(539)		—		(539)
Unrealized loss on derivatives	—	—		—		—		(7,145)		(7,145)
Reclassification to interest expense, net	—	—		—		—		(3,315)		(3,315)
Distributions declared	—	—		—		(17,455)		—		(17,455)
Issuance of common stock, net	9,200,000	9		245,834		—		—		245,843
Stock-based compensation, net	13,303	—		2,243		—		—		2,243
Ending balance, September 30, 2024	77,130,431	$	77	$	5,721,592	$	(3,977,152)	$	10,688	$	1,755,205

3

INVENTRUST PROPERTIES CORP.

Condensed Consolidated Statements of Equity

(Unaudited)

(in thousands, except share amounts)

	Number of Shares	Common Stock		Additional Paid-in Capital		Distributions in Excess of Accumulated Net Income		Accumulated Comprehensive Income		Total
Beginning balance, January 1, 2023	67,472,553	$	67	$	5,456,968	$	(3,879,847)	$	26,721	$	1,603,909
Net income	—	—		—		1,133		—		1,133
Unrealized loss on derivatives	—	—		—		—		(3,317)		(3,317)
Reclassification to interest expense, net	—	—		—		—		(2,892)		(2,892)
Distributions declared	—	—		—		(14,548)		—		(14,548)
Stock-based compensation, net	36,088	1		2,119		—		—		2,120
Ending balance, March 31, 2023	67,508,641	$	68	$	5,459,087	$	(3,893,262)	$	20,512	$	1,586,405
Net income	—	—		—		2,068		—		2,068
Unrealized gain on derivatives	—	—		—		—		10,835		10,835
Reclassification to interest expense, net	—	—		—		—		(3,984)		(3,984)
Distributions declared	—	—		—		(14,553)		—		(14,553)
Stock-based compensation, net	22,694	—		2,166		—		—		2,166
Ending balance, June 30, 2023	67,531,335	$	68	$	5,461,253	$	(3,905,747)	$	27,363	$	1,582,937
Net loss	—	—		—		(822)		—		(822)
Unrealized gain on derivatives	—	—		—		—		5,978		5,978
Reclassification to interest expense, net	—	—		—		—		(4,213)		(4,213)
Distributions declared	—	—		—		(14,553)		—		(14,553)
Stock-based compensation, net	—	—		2,205		—		—		2,205
Ending balance, September 30, 2023	67,531,335	$	68	$	5,463,458	$	(3,921,122)	$	29,128	$	1,571,532

See accompanying notes to the condensed consolidated financial statements.

4

INVENTRUST PROPERTIES CORP.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

	Nine months ended September 30
	2024		2023
Cash flows from operating activities:
Net income	$	3,859	$	2,379
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	85,092		85,339
Amortization of market-lease intangibles and inducements, net	(2,064)		(2,717)
Amortization of debt discounts and financing costs	1,742		3,286
Straight-line rent adjustments, net	(2,652)		(2,492)
Provision for estimated credit losses	115		332
Impairment of real estate assets	3,854		—
Gain on sale of investment properties	(334)		(2,691)
Equity in losses of unconsolidated entities	—		447
Stock-based compensation expense, net	7,329		6,610
Changes in operating assets and liabilities:
Accounts and rents receivable	3,093		4,306
Deferred costs and other assets, net	(1,039)		2,375
Accounts payable and accrued expenses	1,684		3,017
Other liabilities	(787)		(388)
Net cash provided by operating activities	99,892		99,803
Cash flows from investing activities:
Purchase of investment properties	(82,965)		(152,047)
Capital investments and leasing costs	(25,612)		(26,309)
Proceeds from sale of investment properties, net	549		12,559
Distributions from unconsolidated entities	—		91,355
Other investing activities, net	(253)		(1,736)
Net cash used in investing activities	(108,281)		(76,178)
Cash flows from financing activities:
Payment of tax withholdings for share-based compensation	(1,212)		(556)
Proceeds from sale of common stock under offering	257,600		—
Proceeds from sale of common stock under ESPP	280		—
Payment of offering costs	(11,792)		—
Distributions to shareholders	(45,324)		(42,938)
Line of credit proceeds	10,000		30,000
Line of credit repayments	(10,000)		(30,000)
Payoffs of debt	(88,168)		(13,700)
Principal payments on mortgage debt	—		(32)
Other financing activities	—		(50)
Net cash provided by (used in) financing activities	111,384		(57,276)
Net decrease in cash, cash equivalents and restricted cash	102,995		(33,651)
Cash, cash equivalents and restricted cash at the beginning of the period	99,763		137,762
Cash, cash equivalents and restricted cash at the end of the period	$	202,758	$	104,111

5

INVENTRUST PROPERTIES CORP.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

	Nine months ended September 30
	2024		2023
Supplemental disclosure and schedules:
Cash flow disclosure, including non-cash activities:
Cash paid for interest, net of capitalized interest	$	31,266	$	28,133
Cash paid for income taxes, net of refunds	569		525
Previously held equity investments in real estate assets acquired	—		39,603
Distributions payable to shareholders	17,455		14,553
Accrued capital investments and leasing costs	5,008		3,836
Capitalized costs placed in service	8,129		13,800
Gross issuance of shares for stock-based compensation	4,308		2,072
Purchase of investment properties:
Net investment properties	$	84,136	$	200,085
Accounts and rents receivable, lease intangibles, and deferred costs and other assets	15,556		52,871
Accounts payable and accrued expenses, lease intangibles, and other liabilities	(4,137)		(9,133)
Assumption of mortgage debt, at fair value	(12,590)		(91,776)
Cash outflow for purchase of investment properties, net	82,965		152,047
Assumption of mortgage principal	13,000		92,468
Capitalized acquisition costs	(361)		(150)
Credits and other changes in cash outflow, net	996		(365)
Gross acquisition price of investment properties	$	96,600	$	244,000
Sale of investment properties:
Net investment properties	$	215	$	10,086
Accounts and rents receivable, lease intangibles, and deferred costs and other assets	—		297
Accounts payable and accrued expenses, lease intangibles, and other liabilities	—		(515)
Gain on sale of investment properties	334		2,691
Proceeds from sale of investment properties, net	549		12,559
Credits and other changes in cash inflow, net	53		583
Gross disposition price of investment properties	$	602	$	13,142

See accompanying notes to the condensed consolidated financial statements.

6

INVENTRUST PROPERTIES CORP.

Notes to Condensed Consolidated Financial Statements

September 30, 2024 and 2023

(Unaudited)

The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. Readers of these interim condensed consolidated financial statements in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (this "Quarterly Report") should refer to the audited consolidated financial statements of InvenTrust Properties Corp. (the "Company" or "InvenTrust") as of and for the year ended December 31, 2023, which are included in the Company's Annual Report on Form 10-K (the "Annual Report") as certain note disclosures contained in such audited consolidated financial statements have been omitted from this Quarterly Report. In the opinion of management, all adjustments necessary (consisting of normal recurring accruals, except as otherwise noted) for a fair presentation have been included in these condensed consolidated financial statements. Unless otherwise noted, all square feet and dollar amounts are stated in thousands, except share, per share and per square foot data. Number of properties and square feet are unaudited.

1. Organization

On October 4, 2004, InvenTrust Properties Corp. was incorporated as Inland American Real Estate Trust, Inc., a Maryland corporation, and elected to operate in a manner to be taxed as a real estate investment trust ("REIT") for federal tax purposes. The Company changed its name to InvenTrust Properties Corp. in April of 2015 and is focused on owning, leasing, redeveloping, acquiring, and managing a multi-tenant retail platform.

As a REIT, the Company is entitled to a tax deduction for some or all of the dividends paid to stockholders. Accordingly, the Company generally will not be subject to federal income taxes as long as it currently distributes to stockholders an amount equal to or in excess of the Company's taxable income. If the Company fails to qualify as a REIT in any taxable year, without the benefit of certain relief provisions, the Company will be subject to federal and state income tax on its taxable income at regular corporate tax rates.

The accompanying condensed consolidated financial statements include the accounts of the Company, as well as all wholly-owned subsidiaries. Subsidiaries generally consist of limited liability companies and limited partnerships. All significant intercompany balances and transactions have been eliminated. Each retail property is owned by a separate legal entity that maintains its own books and financial records. Each separate legal entity's assets are not available to satisfy the liabilities of other affiliated entities.

The Company has a single reportable segment, multi-tenant retail, for disclosure purposes in accordance with GAAP. The following table summarizes the Company's retail portfolio as of September 30, 2024 and 2023:

	Wholly-Owned Retail Properties
	2024	2023
No. of properties	65	62
Gross Leasable Area (square feet)	10,550	10,324

2. Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, judgments and assumptions are required in a number of areas, including, but not limited to, evaluating the impairment of long-lived assets, allocating the purchase price of acquired retail properties, determining the fair value of debt and evaluating the collectibility of accounts receivable. The Company bases these estimates, judgments and assumptions on historical experience and various other factors that the Company believes to be reasonable under the circumstances. Actual results may differ from these estimates.

7

Recently Issued Accounting Pronouncements

The following table summarizes recently issued accounting pronouncements and the potential impact on the Company:

Standard	Description	Effective Date	Effect on the financial statements or other significant matters
ASU No. 2023-07 Improvements to Reportable Segment Disclosures (Topic 280)	The Accounting Standards Update ("ASU") is intended to improve financial reporting by requiring enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker so investors can better understand an entity's overall performance and assess future cash flows. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements.	Fiscal years beginning January 1, 2024, and interim periods for fiscal years beginning January 1, 2025; Early adoption permitted	The Company continues to evaluate this guidance and expects the standard to impact its disclosures pertaining to having a single reportable segment. The Company does not expect the standard to have an impact on the Company's financial position, results of operations, or cash flows.

Other recently issued accounting standards or pronouncements not disclosed in the foregoing table have been excluded because they are either not relevant to the Company, or are not expected to have, or did not have, a material effect on the condensed consolidated financial statements of the Company.

3. Revenue Recognition

Operating Leases

Minimum lease payments to be received under long-term operating leases and short-term specialty leases, excluding additional percentage rent based on tenants' sales volume and tenant reimbursements of certain operating expenses, and assuming no exercise of renewal options or early termination rights, are as follows:

	As of September 30, 2024
Remaining 2024	$	50,127
2025	199,484
2026	183,197
2027	150,914
2028	123,440
Thereafter	419,914
Total	$	1,127,076

The foregoing table includes payments from tenants who have taken possession of their space and tenants who have been moved to the cash basis of accounting for revenue recognition purposes. The remaining lease terms range from less than one year to fifty-six years.

The following table reflects the disaggregation of lease income, net:

	Three months ended September 30				Nine months ended September 30
	2024		2023		2024		2023
Minimum base rent	$	44,060	$	41,559	$	129,696	$	123,580
Real estate tax recoveries	8,334		7,808		24,733		24,273
Common area maintenance, insurance, and other recoveries	8,450		7,913		24,345		22,351
Ground rent income	4,774		4,797		14,260		14,304
Amortization of market-lease intangibles and inducements, net	831		629		2,064		2,717
Short-term and other lease income	772		661		2,706		2,610
Termination fee income	30		75		1,340		819
Straight-line rent adjustments, net	765		730		2,652		2,492
Reversal of (provision for) uncollectible billed rent and recoveries, net	116		(456)		(115)		(332)
Lease income, net	$	68,132	$	63,716	$	201,681	$	192,814

8

4. Acquired Properties

The following table reflects the retail properties acquired, accounted for as asset acquisitions, during the nine months ended September 30, 2024:

Acquisition Date	Property	Metropolitan Area	Square Feet	Gross Acquisition Price		Intangible Assets		Intangible Liabilities		Assumption of Mortgage Debt
February 1, 2024	The Plant (a)	Phoenix, AZ	57	$	29,500	$	4,467	$	540	$	13,000
April 9, 2024	Moores Mill	Atlanta, GA	70	28,000		6,710		1,451		—
June 13, 2024	Maguire Groves (b)	Orlando, FL	33	16,100		1,652		406		—
August 6, 2024	Scottsdale North Marketplace	Scottsdale, AZ	66	23,000		2,691		1,295		—
			226	$	96,600	$	15,520	$	3,692	$	13,000

(a)The Company recognized a fair value adjustment of $410 related to the mortgage payable secured by the property.

(b)Maguire Groves is immediately adjacent to Plantation Grove, a Publix anchored neighborhood center wholly-owned by the Company. The Company operates these properties under the Plantation Grove name.

The following table reflects the retail properties acquired, accounted for as asset acquisitions, during the nine months ended September 30, 2023:

Acquisition Date	Property	Metropolitan Area	Square Feet	Gross Acquisition Price		Intangible Assets		Intangible Liabilities		Assumption of Mortgage Debt
January 18, 2023	Bay Colony (a)	Houston, TX	416	$	79,100	$	16,586	$	1,937	$	41,969
January 18, 2023	Blackhawk Town Center (a)	Houston, TX	127	26,300		3,123		184		13,008
January 18, 2023	Cyfair Town Center (a)	Houston, TX	433	79,200		17,229		4,160		30,880
January 18, 2023	Stables Town Center (a)	Houston, TX	148	37,000		8,155		676		6,611
June 2, 2023	The Shoppes at Davis Lake	Charlotte, NC	91	22,400		3,551		123		—
			1,215	$	244,000	$	48,644	$	7,080	$	92,468

(a)These retail properties were acquired from the Company's unconsolidated joint venture, IAGM Retail Fund I, LLC, as disclosed in "Note 6. Investment in Unconsolidated Entities". The Company recognized a fair value adjustment of $692 related to the pooled mortgage debt on these properties.

Transaction costs of $361 and $150 were capitalized during the nine months ended September 30, 2024 and 2023, respectively.

9

5. Disposed Properties

The following table reflects the real property disposed of during the nine months ended September 30, 2024:

Date	Property	Metropolitan Area	Square Feet	Gross Disposition Price		Gain on Sale
July 22, 2024	Eldridge Town Center & Windermere Village (a)	Houston, TX	N/A	$	602	$	334

(a)This disposition was related to the completion of a partial condemnation at one retail property.

The following table reflects the real property disposed of during the nine months ended September 30, 2023:

Date	Property	Metropolitan Area	Square Feet	Gross Disposition Price		Gain on Sale
June 20, 2023	Shops at the Galleria (a)	Austin, TX	N/A	$	1,692	$	984
August 25, 2023	Trowbridge Crossing	Atlanta, GA	63	11,450		1,707
			63	$	13,142	$	2,691

(a)This disposition was related to the completion of a partial condemnation at one retail property.

6. Investment in Unconsolidated Entities

Liquidation of Joint Venture Interest in IAGM

On April 17, 2013, the Company and PGGM Private Real Estate Fund formed IAGM Retail Fund I, LLC ("IAGM"), a joint venture partnership for the purpose of acquiring, owning, managing, and disposing of retail properties and sharing in the profits and losses from those retail properties and their activities.

On January 18, 2023, the Company acquired the four remaining retail properties from IAGM for an aggregate purchase price of $222.3 million by acquiring 100% of the membership interests in each of IAGM's wholly owned subsidiaries. The Company assumed aggregate mortgage debt of $92.5 million and funded the remaining balance with its available liquidity. IAGM recognized a gain on sale of $45.2 million, of which the Company's share was approximately $24.9 million. Subsequent to the transaction, IAGM proportionately distributed substantially all net proceeds from the sale, of which the Company's share was approximately $71.4 million. In connection with the foregoing, IAGM adopted a liquidation plan on January 11, 2023. On December 15, 2023, IAGM was fully liquidated.

The Company's aggregate deferred gains related to its previously owned equity interest in real estate acquisitions from IAGM of $39.9 million are reflected in the basis of the respective acquired assets. Previously, deferred gains were reflected as a reduction of the Company's investment in IAGM and amortized to equity in earnings of unconsolidated entities.

On January 18, 2023, the Company also acquired IAGM's two interest rate swap agreements which achieved fixed interest rates on an aggregate notional amount of $75.0 million of the assumed pooled mortgage priced in a Secured Overnight Financing Rate ("SOFR"), each of which reprice monthly ("1-Month Term SOFR"). IAGM recognized a gain on sale of $2.6 million representing the fair value of the derivatives, of which the Company's share was approximately $1.4 million. The Company deferred its share of IAGM's gain on sale of derivatives, initially reflecting it within accumulated comprehensive income and amortizing it to interest expense, net, through the instruments' maturity date.

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7. Debt

The Company's debt consists of mortgages payable, unsecured term loans, senior notes, and an unsecured revolving line of credit. The Company believes it has the ability to repay, refinance or extend any of its debt, and that it has adequate sources of funds to meet short-term cash needs. It is anticipated that the Company will use proceeds from property sales, cash on hand, and available capacity on credit agreements, if any, to repay, refinance or extend the mortgages payable maturing in the near term.

The Company's credit agreements and mortgage loans require compliance with certain covenants, such as debt service coverage ratios, investment restrictions and distribution limitations. As of September 30, 2024 and December 31, 2023, the Company was in compliance with all loan covenants.

On February 6, 2023, the Company extinguished the $13.7 million mortgage payable secured by Renaissance Center with its available liquidity.

On June 5, 2024, the Company extinguished the $7.3 million and $8.4 million pooled mortgages payable secured by Plantation Grove and Suncrest Village, respectively, with its available liquidity.

On September 27, 2024, the Company extinguished the $72.5 million pooled mortgage payable secured by Cyfair Town Center, Bay Colony, and Stables Town Center.

Credit Agreements

On September 22, 2021, the Company entered into an amendment to the Revolving Credit Agreement (the "Amended Revolving Credit Agreement"), which provides for, among other things, an extension of the maturity of the $350.0 million Revolving Credit Agreement to September 22, 2025, with two six-month extension options.

On September 22, 2021, the Company entered into an amendment to its $400.0 million Term Loan Credit Agreement (the "Amended Term Loan Agreement"), which provides for, among other things, an extension of the maturity dates and a reallocation of indebtedness under the two outstanding tranches of term loans thereunder. The Amended Term Loan Agreement consists of a $200.0 million 5-year tranche maturing on September 22, 2026, and a $200.0 million 5.5-year tranche maturing on March 22, 2027.

On June 3, 2022, in connection with and upon effectiveness of the Note Purchase Agreement (as defined below) and in accordance with the terms of the Amended Term Loan Credit Agreement and Amended Revolving Credit Agreement, each of the administrative agents under such agreements released all of the subsidiary guarantors from their guaranty obligations that were previously made for the benefit of the lenders under such agreements.

Interest Rate Swaps

As of September 30, 2024, the Company is party to five effective interest rate swap agreements which achieve fixed interest rates through the maturity dates of the Amended Term Loan Agreement.

On March 16, 2023, the Company entered into one interest rate swap agreement with a notional amount of $100.0 million at 3.69%, achieving a fixed interest rate of 4.99%. As of the effective date of April 3, 2023, the entirety of the Company's variable rate term loans were swapped to fixed rates through the maturity dates of the Amended Term Loan Agreement.

Senior Notes

On August 11, 2022, the Company issued $250.0 million aggregate principal amount of senior notes in a private placement, of which (i) $150.0 million are designated as 5.07% Senior Notes, Series A, due August 11, 2029 (the "Series A Notes") and (ii) $100.0 million are designated as 5.20% Senior Notes, Series B, due August 11, 2032 (the "Series B Notes" and, together with the Series A Notes, the "Notes") pursuant to a note purchase agreement (the "Note Purchase Agreement"), dated June 3, 2022, between the Company and the various purchasers named therein. The Notes were issued at par in accordance with the Note Purchase Agreement and pay interest semiannually on February 11th and August 11th until their respective maturities.

The Company may prepay at any time all or any part of the Notes, in an amount not less than 5% of the aggregate principal amount of any series of the Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount prepaid plus accrued interest and a Make-Whole Amount (as defined in the Note Purchase Agreement). The Notes will be required to be absolutely and unconditionally guaranteed by certain subsidiaries of the Company that guarantee certain material credit facilities of the Company. Currently, there are no subsidiary guarantees of the Notes.

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The following table summarizes the Company's debt as of September 30, 2024 and December 31, 2023:

			As of September 30, 2024			As of December 31, 2023
	Maturity Date	Rate Type	Interest Rate	Amount		Interest Rate	Amount
Mortgages Payable
Fixed rate mortgages payable	Various	Fixed	3.97% (a)	$	93,380	4.01% (a)	$	96,080
Variable rate mortgages payable (b)	N/A	Variable	N/A	—		1M SOFR + 1.65% (c)	72,468
Total				93,380			168,548
Term Loan
$200.0 million 5 years	9/22/2026	Fixed	2.81% (d)	100,000		2.81% (d)	100,000
$200.0 million 5 years	9/22/2026	Fixed	2.81% (d)	100,000		2.81% (d)	100,000
$200.0 million 5.5 years	3/22/2027	Fixed	2.78% (d)	50,000		2.77% (d)	50,000
$200.0 million 5.5 years	3/22/2027	Fixed	2.84% (d)	50,000		2.76% (d)	50,000
$200.0 million 5.5 years	3/22/2027	Fixed	4.99% (d)	100,000		4.99% (d)	100,000
Total				400,000			400,000
Senior Notes
$150.0 million Series A Notes	8/11/2029	Fixed	5.07%	150,000		5.07%	150,000
$100.0 million Series B Notes	8/11/2032	Fixed	5.20%	100,000		5.20%	100,000
Total				250,000			250,000
Revolving Line of Credit
$350.0 million total capacity	9/22/2025	Variable	1M SOFR +  1.14% (c)(e)	—		1M SOFR +  1.14% (c)(e)	—
Total debt			4.03%	743,380		4.29%	818,548
Debt discounts and issuance costs, net				(3,271)			(3,980)
Debt, net				$	740,109		$	814,568

(a)Interest rates reflect the weighted average of the Company's mortgages payable.

(b)These mortgages payable were cross collateralized by three properties and were extinguished on September 27, 2024.

(c)As of September 30, 2024 and December 31, 2023, 1-Month Term SOFR was 4.85% and 5.35%, respectively.

(d)Interest rates reflect the fixed rates achieved through the Company's interest rate swaps.

(e)Interest rate applies to drawn balance only. Additional annual facility fee of 0.15% applies to entire line of credit capacity.

The following table summarizes the scheduled maturities of the Company's mortgages payable as of September 30, 2024:

Scheduled maturities by year:	As of September 30, 2024
2024	$	—
2025	35,880
2026	—
2027	26,000
2028	—
Thereafter	31,500
Total mortgage payable maturities	$	93,380

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8. Fair Value Measurements

Recurring Measurements

The following financial instruments are remeasured at fair value on a recurring basis:

	Fair Value Measurements as of
	September 30, 2024				December 31, 2023
Cash Flow Hedges: (a) (b)	Level 1	Level 2 (c)		Level 3	Level 1	Level 2 (c)		Level 3
Derivative interest rate swaps	—	$	10,688	—	—	$	18,074	—

(a)During the twelve months subsequent to September 30, 2024, an estimated $6,820 of derivative interest rate balances recognized in accumulated comprehensive income will be reclassified into earnings.

(b)As of September 30, 2024 and December 31, 2023, the Company determined that the credit valuation adjustments associated with nonperformance risk are not significant to the overall valuation of its derivatives. As a result, the Company's derivative valuations in their entirety are classified as Level 2 of the fair value hierarchy.

(c)Derivative assets or liabilities are recognized as a part of deferred costs and other assets, net or other liabilities, respectively.

Nonrecurring Measurements

Investment Properties

During the three and nine months ended September 30, 2023, the Company had no Level 3 nonrecurring fair value measurements.

During the three months ended September 30, 2024, the Company recorded an impairment of real estate assets of $3,854 on one retail property after receiving and accepting a letter of intent to purchase the property for less than its carrying value. The estimated fair value of the property was based on this negotiated letter of intent. Subsequent to the impairment, the carrying value of the asset was $56,033.

Financial Instruments Not Measured at Fair Value

The table below summarizes the estimated fair value of financial instruments presented at carrying values in the Company's condensed consolidated financial statements as of September 30, 2024 and December 31, 2023:

	September 30, 2024						December 31, 2023
	Carrying Value		Estimated  Fair Value		Market Interest Rate		Carrying Value		Estimated  Fair Value		Market Interest Rate
Mortgages payable	$	93,380	$	89,237	5.86	%	$	168,548	$	161,320	6.86	%
Senior notes	250,000		243,513		5.62	%	250,000		233,635		6.31	%
Term loans	400,000		400,224		4.65	%	400,000		399,539		5.10	%
Revolving line of credit	—		—		N/A		—		—		N/A

The market interest rates used to estimate the fair value of the Company's mortgages payable, senior notes, term loans, and revolving line of credit reflect the terms currently available on similar borrowing terms to borrowers with credit profiles similar to that of the Company. The Company classifies its debt instrument valuations within Level 2 of the fair value hierarchy.

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9. Earnings Per Share and Equity Transactions

Basic earnings per share ("EPS") is computed by dividing net income or loss attributed to common shares by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that may occur from awards issued pursuant to stock-based compensation plans.

The following table reconciles the amounts used in calculating basic and diluted EPS:

	Three months ended September 30				Nine months ended September 30
	2024		2023		2024		2023
Numerator:
Net (loss) income attributed to common shares - basic and diluted	$	(539)	$	(822)	$	3,859	$	2,379
Denominator:
Weighted average common shares outstanding - basic	68,526,238		67,531,335		68,101,901		67,521,110
Dilutive effect of unvested restricted shares (a) (b)	—		—		557,418		199,375
Weighted average common shares outstanding - diluted	68,526,238		67,531,335		68,659,319		67,720,485
Basic and diluted earnings per common share:
Net (loss) income per common share - basic	$	(0.01)	$	(0.01)	$	0.06	$	0.04
Net (loss) income per common share - diluted	$	(0.01)	$	(0.01)	$	0.06	$	0.04

(a)For the three months ended September 30, 2024 and 2023, the Company has excluded the anti-dilutive effect of stock-based compensation arrangements.

(b)For the nine months ended September 30, 2023, the Company has excluded the anti-dilutive effect of market-based awards granted in 2023.

ATM Program

On March 7, 2022, the Company established an at-the-market equity offering program (the "ATM Program") through which the Company may sell from time to time up to an aggregate of $250.0 million of its common stock. In connection with the ATM Program, the Company may sell shares of its common stock to or through sales agents, or may enter into separate forward sale agreements with one of the agents, or one of their respective affiliates, as a forward purchaser. During the three and nine months ended September 30, 2024 and 2023, no shares were issued under the ATM program. As of September 30, 2024, $244.6 million of common stock remains available for issuance under the ATM Program.

Share Repurchase Program

On February 23, 2022, the Company established a share repurchase program (the "SRP") of up to $150.0 million of the Company's outstanding shares of common stock. The SRP may be suspended or discontinued at any time, and does not obligate the Company to repurchase any dollar amount or particular amount of shares. As of September 30, 2024, the Company has not repurchased any common stock under the SRP.

Common Stock Offering

On September 25, 2024, the Company completed an underwritten public offering of its common stock at a price to the public of $28.00 per share. The Company issued and sold 9,200,000 shares of its common stock, including 1,200,000 shares issued in connection with the full exercise of the underwriters' over-allotment option. The Company received $247.3 million of net proceeds, after deducting $10.3 million in underwriting discounts and commissions.

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10. Stock-Based Compensation

Incentive Award Plan

The Company's board of directors (the "Board") adopted the InvenTrust Properties Corp. 2015 Incentive Award Plan effective as of June 19, 2015 (the "Incentive Award Plan"). On May 6, 2016, the Board adopted the first amendment to the Incentive Award Plan and on March 20, 2024, the Board adopted the second amendment to the Incentive Award Plan (collectively, the "Amendments"). The Company's stockholders approved the Incentive Award Plan, as amended by the Amendments, on May 7, 2024, which, among other things, increased the aggregate number of shares of common stock that may be issued pursuant to awards granted under the Incentive Award Plan (the "Share Limit") by 2,750,000 shares to 5,750,000 shares. Any forfeited or unearned performance shares subject to an award are added back to the Share Limit.

Outstanding restricted stock unit ("RSU") awards are categorized as either time-based awards, performance-based awards, or market-based awards. All awards are granted at fair value, earn dividends throughout the vesting period, and have no voting rights. As of September 30, 2024, 2,854,824 shares were available for future issuance under the Incentive Award Plan.

Market-based awards are valued as of the grant date utilizing a Monte Carlo simulation model that assesses the probability of satisfying certain market performance thresholds over a three year performance period.

The following table summarizes the Company's significant assumptions used in the Monte Carlo simulation models:

	At Grant Date
	2024	2023
Volatility	31.00%	34.00%
Risk free interest rate	4.42%	4.45%
Dividend Yield	3.40%	3.20%

The following table summarizes the Company's RSU activity during the nine months ended September 30, 2024:

	Unvested Time- Based RSUs	Unvested Performance and Market-Based RSUs	Weighted-Average Grant Date Price Per Share
Outstanding as of January 1, 2024	147,592	1,024,771	$19.36
Shares granted	197,884	335,936	$19.78
Shares vested	(42,600)	(113,954)	$27.17
Unearned performance shares	—	(82,665)	$28.90
Shares forfeited	(2,190)	(17,360)	$17.41
Outstanding as of September 30, 2024	300,686	1,146,728	$18.29

Employee Stock Purchase Plan

On May 4, 2023, the Company established an Employee Stock Purchase Plan (the "ESPP") pursuant to which employees may purchase up to an aggregate of 3,300,000 shares of the Company's common stock, of which 3,274,365 shares remain available for future issuance as of September 30, 2024.

The following table summarizes the Company's common stock activity under the ESPP:

	Nine months ended September 30, 2024
Gross shares purchased	13,907
Discounted issuance price	$20.07
Issuance proceeds	$280

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Stock-Based Compensation Expense

The following table summarizes the Company's stock-based compensation expense:

	Three months ended September 30				Nine months ended September 30
	2024		2023		2024		2023
Incentive Award Plan, net (a)	$	2,539	$	2,307	$	7,227	$	6,576
Employee Stock Purchase Plan (b)	33		34		102		34
Stock-based compensation expense, net	$	2,572	$	2,341	$	7,329	$	6,610

(a)As of September 30, 2024, there was $12,757 of total estimated unrecognized compensation expense related to the Incentive Award Plan which will be recognized through December 2027.

(b)As of September 30, 2024, there was $111 of total estimated unrecognized compensation expense related to the ESPP which will be recognized through June 2026.

11. Commitments and Contingencies

Legal Matters

The Company is subject, from time to time, to various types of third-party legal claims or litigation that arise in the ordinary course of business, including, but not limited to, property loss claims, personal injury or other damages resulting from contact with the Company's properties. These claims and lawsuits and any resulting damages are generally covered by the Company's insurance policies. The Company accrues for legal costs associated with loss contingencies when these costs are probable and reasonably estimable. While the resolution of these matters cannot be predicted with certainty, based on currently available information, management does not expect that the final outcome of any pending claims or legal proceedings will have a material adverse effect on the financial condition, results of operations or cash flows of the Company.

12. Subsequent Events

In preparing its condensed consolidated financial statements, the Company evaluated events and transactions occurring after September 30, 2024 through the date the financial statements were issued for recognition and disclosure purposes.

On October 9, 2024, the Company acquired Stonehenge Village, a 214,000 square foot community center anchored by Wegman's in the Richmond, Virginia market, for a gross acquisition price of $62.1 million. The Company used cash on hand to fund the acquisition.

On October 23, 2024, the Company entered into a third amendment to the Amended Revolving Credit Agreement, which provides for, among other things, an increase in the revolving commitments thereunder from $350.0 million to $500.0 million and an extension of the maturity date to January 15, 2029, with one six-month extension option.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Certain statements in this "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (this "Quarterly Report"), other than purely historical information, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). These statements include statements about InvenTrust Properties Corp.'s (the "Company," "InvenTrust," "we," "our," or "us") plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects or future events; and they involve known and unknown risks that are difficult to predict.

As a result, our actual financial results, performance, achievements, or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "illustrative," and "should" and variations of these terms and similar expressions, or the negatives of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while we consider reasonable based on our knowledge and understanding of the business and industry, are inherently uncertain. These statements are expressed in good faith and are not guarantees of future performance or results. Our actual results could differ materially from those expressed in the forward-looking statements and readers should not rely on forward-looking statements in making investment decisions.

There are a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking statements contained in this Quarterly Report. Such risks, uncertainties and other important factors, include, among others, the risks, uncertainties and factors set forth in our filings with the Securities and Exchange Commission ("SEC"), including our Annual Report on Form 10-K for the year ended December 31, 2023 (the "Annual Report"), and as updated in this Quarterly Report and other quarterly and current reports, which are on file with the SEC and are available at the SEC's website (www.sec.gov).

Our operations are subject to a number of risks and uncertainties including, but not limited to:

•our ability to collect rent from tenants or to rent space on favorable terms or at all;

•declaration of bankruptcy by our retail tenants;

•the economic success and viability of our anchor retail tenants;

•our ability to identify, execute and complete acquisition opportunities and to integrate and successfully operate any retail properties acquired in the future and manage the risks associated with such retail properties;

•our ability to manage the risks of expanding, developing or redeveloping our retail properties;

•loss of members of our senior management team or other key personnel;

•changes in the competitive environment in the leasing market and any other market in which we operate;

•shifts in consumer retail shopping from brick and mortar stores to e-commerce;

•the impact of leasing and capital expenditures to improve our retail properties to retain and attract tenants;

•our ability to refinance or repay maturing debt or to obtain new or additional financing on attractive terms;

•the impact on our business and financial condition of incurring additional debt or issuing new debt or equity securities in the future;

•future increases in interest rates;

•rising inflation;

•natural or man-made disasters, severe weather and climate-related events, such as earthquakes, tsunamis, tornadoes, hurricanes, droughts, blizzards, hailstorms, floods, wildfires, mudslides, oil spills, nuclear incidents, and outbreaks of pandemics or contagious diseases, or fear of such outbreaks;

•our status as a real estate investment trust ("REIT") for federal tax purposes; and

•changes in federal, state or local tax law, including legislative, administrative, regulatory or other actions affecting REITs.

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These factors are not necessarily all of the important factors that could cause our actual results, performance or achievements to differ materially from those expressed in or implied by any of our forward-looking statements. Other unknown or unpredictable factors also could harm our business, financial condition, results of operations, cash flows and overall value.

All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements are only as of the date they are made; we do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information, future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

The following discussion and analysis should be read in conjunction with our condensed consolidated financial statements and the related notes included in this Quarterly Report. All square feet and dollar amounts are stated in thousands, except per share amounts and per square foot metrics, unless otherwise noted.

Overview

Strategy and Outlook

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. We pursue our business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing our environmental, social and governance practices and standards.

InvenTrust focuses on Sun Belt markets with favorable demographics, including above average growth in population, employment, income and education levels. We believe these conditions create favorable demand characteristics for grocery-anchored and necessity-based essential retail centers, which will position us to capitalize on potential future rent increases while benefiting from sustained occupancy at our centers. Our strategically located regional field offices are within a two-hour drive of over 95% of our properties which affords us the ability to respond to the needs of our tenants and provides us with in-depth local market knowledge. We believe that our Sun Belt portfolio of high quality grocery-anchored assets is a distinct differentiator for us in the marketplace.

Evaluation of Financial Condition

In addition to measures of operating performance determined in accordance with U.S. generally accepted accounting principles ("GAAP"), management evaluates our financial condition and operating performance by focusing on the following financial and nonfinancial indicators, discussed in further detail herein:

•Net Operating Income ("NOI") and Same Property NOI, supplemental non-GAAP measures;

•Nareit Funds From Operations ("Nareit FFO") Applicable to Common Shares and Dilutive Securities, a supplemental non-GAAP measure;

•Core Funds From Operations ("Core FFO") Applicable to Common Shares and Dilutive Securities, a supplemental non-GAAP measure;

•Economic and leased occupancy and rental rates;

•Leasing activity and lease rollover;

•Operating expense levels and trends;

•General and administrative expense levels and trends;

•Debt maturities and leverage ratios; and

•Liquidity levels.

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Recent Developments

On August 6, 2024, the Company acquired Scottsdale North Marketplace, a 66,000 square foot neighborhood center anchored by AJ’s Fine Foods, in Scottsdale, Arizona, for a gross acquisition price of $23.0 million. The Company used cash on hand to fund the acquisition.

On September 25, 2024, the Company completed an underwritten public offering of its common stock at a price to the public of $28.00 per share. The Company issued and sold 9,200,000 shares of its common stock, including 1,200,000 shares issued in connection with the full exercise of the underwriters' over-allotment option. The Company received $247.3 million of net proceeds, after deducting $10.3 million in underwriting discounts and commissions.

On September 27, 2024, the Company extinguished the $72.5 million pooled mortgage payable secured by Cyfair Town Center, Bay Colony, and Stables Town Center.

Our Retail Portfolio

Our wholly-owned and managed retail properties include grocery-anchored community and neighborhood centers and power centers, including those classified as necessity-based, as defined in our Annual Report. As of September 30, 2024, we owned 65 retail properties with a total gross leasable area ("GLA") of approximately 10.6 million square feet. The following table summarizes our retail portfolio as of September 30, 2024 and 2023.

	2024	2023
No. of properties	65	62
GLA (square feet)	10,550	10,324
Economic occupancy (a)	94.2%	92.6%
Leased occupancy (b)	97.0%	95.1%
ABR PSF (c)	$19.83	$19.36

(a)Economic occupancy is defined as the percentage of occupied GLA divided by total GLA (excluding Specialty Leases) for which a tenant is obligated to pay rent under the terms of its lease agreement as of the rent commencement date, regardless of the actual use or occupancy by that tenant of the area being leased. Actual use may be less than economic occupancy. Specialty Leases represent small shop and anchor leases with terms of less than one year and all common area leases regardless of term.

(b)Leased occupancy is defined as economic occupancy plus the percentage of signed but not yet commenced GLA divided by total GLA.

(c)Annualized Base Rent ("ABR") is computed as base rent for the period multiplied by twelve months. Base rent is inclusive of ground rent and any abatement concessions, but excludes Specialty Lease rent. ABR per square foot ("PSF") is computed as ABR divided by the occupied square footage as of the end of the period.

Summary by Center Type

The following table summarizes our retail portfolio by center type, as defined in our Annual Report, as of September 30, 2024 and 2023.

	Community and Neighborhood centers		Power centers
	2024	2023	2024	2023
No. of properties	53	50	12	12
GLA (square feet)	7,025	6,800	3,525	3,524
Economic occupancy	95.6%	93.5%	91.3%	90.7%
Leased occupancy	97.0%	96.5%	96.8%	92.4%
ABR PSF	$20.54	$20.14	$18.34	$17.80

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Summary by Same Property

Properties classified as same property were owned for the entirety of both periods presented ("Same Properties"). The following table summarizes the Same Properties of our retail portfolio for the three and nine months ended September 30, 2024 and 2023.

	Three months ended September 30		Nine months ended September 30
	2024	2023	2024	2023
No. of properties	62	62	57	57
GLA (square feet)	10,324	10,324	9,109	9,108
Economic occupancy	94.1%	92.6%	94.3%	92.8%
Leased occupancy	96.9%	95.1%	97.2%	95.3%
ABR PSF	$19.69	$19.36	$20.15	$19.78

Lease Expirations

The following table presents the lease expirations of our retail portfolio as of September 30, 2024. This table does not include expirations of signed but not yet commenced leases, nor does it assume that unexercised contractual lease renewal or extension options contained in our leases will, in fact, be exercised.

Lease Expiration Year	No. of Expiring Leases	GLA of Expiring Leases (square feet)	Percent of Total GLA of Expiring Leases	ABR of Expiring Leases		Percent of Total ABR	Expiring ABR PSF (a)
2024	18	39	0.4%	$	1,213	0.6%	$	31.10
2025	148	808	8.1%	14,424		6.9%	17.85
2026	218	941	9.5%	22,478		10.7%	23.89
2027	280	1,932	19.5%	39,907		18.8%	20.66
2028	231	1,061	10.7%	26,018		12.4%	24.52
2029	217	1,421	14.3%	30,547		14.5%	21.50
2030	106	756	7.6%	16,232		7.7%	21.47
2031	83	571	5.7%	11,949		5.7%	20.93
2032	88	538	5.4%	12,245		5.8%	22.76
2033	62	390	3.9%	10,045		4.8%	25.76
Thereafter	104	1,468	14.8%	25,119		11.9%	17.11
Other (b)	6	11	0.1%	362		0.2%	32.91
	1,561	9,936	100%	$	210,539	100%	$	21.19

(a)Expiring ABR PSF reflects ABR PSF at the time of lease expiration.

(b)Other lease expirations include the GLA, ABR and ABR PSF of month-to-month leases.

Our retail business is neither highly dependent on specific retailers nor subject to lease roll-over concentration. We believe this minimizes risk to our retail portfolio from significant revenue variances over time.

20

Leasing Activity, Retail Portfolio

The following tables summarize the activity for leases that were executed during the nine months ended September 30, 2024, compared with expiring or expired leases for the same or previous tenant for renewals, and the same unit for new leases at the 65 properties in the retail portfolio. The Company's retail portfolio had GLA totaling 932 thousand square feet expiring during the nine months ended September 30, 2024, of which 868 thousand square feet was re-leased to the in-place tenant. This achieved a retention rate of approximately 93%.

	No. of Leases Executed	GLA SF (in thousands)	New Contractual Rent ($PSF) (b)	Prior Contractual Rent ($PSF) (b)	% Change over Prior Lease Rent (b)	Weighted Average Lease Term (Years)	Tenant Improvement Allowance ($PSF)	Lease Commissions ($PSF)
All Tenants
Comparable Renewal Leases (a)	112	810	$20.87	$19.03	9.7%	5.4	$0.05	$—
Comparable New Leases (a)	19	88	$26.87	$23.31	15.3%	10.2	$31.80	$12.78
Non-Comparable Renewal and New Leases	29	196	$17.33	N/A	N/A	7.6	$13.29	$7.43
Total	160	1,094	$21.46	$19.44	10.4%	6.2	$4.97	$2.36
Anchor Tenants (leases ten thousand square feet and over)
Comparable Renewal Leases (a)	20	583	$14.08	$12.98	8.5%	5.4	$—	$—
Comparable New Leases (a)	2	42	$14.67	$12.54	17.0%	10.9	$30.00	$8.66
Non-Comparable Renewal and New Leases	5	141	$10.92	N/A	N/A	7.6	$10.89	$5.86
Total	27	766	$14.12	$12.95	9.0%	6.1	$3.66	$1.56
Small Shop Tenants (leases under ten thousand square feet)
Comparable Renewal Leases (a)	92	227	$38.32	$34.57	10.8%	5.3	$0.18	$—
Comparable New Leases (a)	17	46	$38.16	$33.32	14.5%	9.5	$33.46	$16.58
Non-Comparable Renewal and New Leases	24	55	$33.73	N/A	N/A	7.7	$19.43	$11.44
Total	133	328	$38.29	$34.36	11.4%	6.3	$8.05	$4.23

(a)Comparable leases are leases that meet all of the following criteria: terms greater than or equal to one year, unit was vacant less than one year prior to executed lease, square footage of unit remains unchanged or within 10% of prior unit square footage, and has a rent structure consistent with the previous tenant.

(b)Non-comparable leases are not included in totals.

21

Results of Operations

Comparison of results for the three and nine months ended September 30, 2024 and 2023

We generate substantially all of our earnings from property operations. Since January 1, 2023, we have acquired eight retail properties and disposed of one.

The following table presents the changes in our income for the three and nine months ended September 30, 2024 and 2023.

	Three months ended September 30						Nine months ended September 30
	2024		2023		Increase		2024		2023		Increase (Decrease)
Income
Lease income, net	$	68,132	$	63,716	$	4,416	$	201,681	$	192,814	$	8,867
Other property income	389		346		43		1,061		1,060		1
Other fee income	—		—		—		—		80		(80)
Total income	$	68,521	$	64,062	$	4,459	$	202,742	$	193,954	$	8,788

Lease income, net, for the three months ended September 30, 2024 increased $4.4 million when compared to the same period in 2023, as a result of increases from properties acquired of $1.8 million, decreases from properties disposed of $0.2 million, and the following activity related to our Same Properties:

•$1.3 million of increased minimum base rent attributable to increased occupancy and ABR PSF,

•$0.7 million of increased common area maintenance and real estate tax recoveries,

•$0.7 million of net changes in credit losses and related reversal, and

•$0.1 million of net increases in all other lease income.

Lease income, net, for the nine months ended September 30, 2024 increased $8.9 million when compared to the same period in 2023, as a result of increases from properties acquired of $6.0 million, decreases from properties disposed of $0.8 million, and the following activity related to our Same Properties:

•$2.6 million of increased minimum base rent attributable to increased occupancy and ABR PSF,

•$1.3 million of increased common area maintenance and real estate tax recoveries, and

•$0.3 million of net changes in credit losses and related reversals, partially offset by:

•$0.5 million of decreased amortization of market lease intangibles.

The following table presents the changes in our operating expenses for the three and nine months ended September 30, 2024 and 2023.

Three months ended September 30			Nine months ended September 30
2024	2023	Increase (Decrease)