InvenTrust Q3 Core FFO Rises as Same-Property NOI Grows 3.1%

InvenTrust Properties Corp. reported higher third-quarter earnings and same-property operating income as leasing spreads remained positive and the retail REIT continued expanding its Sun Belt portfolio through acquisitions.

For the three months ended Sept. 30, 2026, Core FFO applicable to common shares and dilutive securities increased to $39.0 million from $36.7 million a year earlier. Core FFO per diluted share rose to $0.50 from $0.47, while Nareit FFO per diluted share increased to $0.53 from $0.49.

Net income climbed to $19.4 million, or $0.25 per diluted share, from $6.0 million, or $0.08 per share, in the prior-year quarter. The latest period included a $17.4 million gain on property sales, compared with a negligible gain a year earlier. Adjusted EBITDA rose to $51.4 million from $45.0 million.

Same-property NOI and leasing

Same-property net operating income increased 3.1% to $50.4 million in the quarter as total same-property income rose to $70.3 million from $68.0 million. Operating expenses increased to $19.9 million from $19.1 million. For the first nine months of 2026, same-property NOI grew 3.4% to $144.8 million.

The portfolio was 96.4% leased at quarter-end, including 98.4% occupancy among anchor tenants and 93.2% for small-shop tenants. Comparable spreads on new and renewal leases averaged 14.2%, while year-to-date tenant retention was 89%. Annualized base rent was $20.97 per square foot.

InvenTrust also reported a signed-not-open pipeline representing $4.3 million of incremental annualized base rent. About 33% of that pipeline is expected to commence during 2026, although only 6% is expected to be recognized as income this year.

The company’s 78-property portfolio totaled 12.3 million square feet, with 89% of annualized base rent coming from centers with a grocery presence. Sun Belt markets represented 97% of annualized base rent. Essential retail accounted for 63% of the tenant mix, while the 10 largest tenants generated 19.4% of annualized base rent.

Acquisitions expand Sun Belt exposure

InvenTrust acquired approximately $290 million of assets during the first nine months of 2026 after purchasing about $465 million in 2025. Its third-quarter acquisition, New Garden Crossing in Greensboro, North Carolina, was fully leased and carried annualized base rent of $14.20 per square foot.

Other 2026 purchases expanded the company’s presence in Knoxville, Charleston, Charlotte, Phoenix and Nashville. Management is targeting additional exposure to emerging Sun Belt markets, including Asheville, Greensboro, Knoxville, Tucson, Charleston and Savannah.

The company is also pursuing a redevelopment program with anticipated project yields of 7% to 10%. Active projects include anchor and small-shop repositioning at The Parke in Austin, a new multi-tenant building at Westpark Shopping Center in Richmond, and the demolition and rebuilding of a grocery store at Gateway Marketplace in St. Petersburg. Those projects are expected to be completed in 2027. Eight additional projects are in planning.

2026 outlook and balance sheet

InvenTrust expects full-year 2026 Core FFO of $1.94 to $1.96 per diluted share, representing growth of 6.0% to 7.1%. Guidance also calls for Nareit FFO of $2.05 to $2.07 per diluted share, net income of $0.31 to $0.33 per diluted share and same-property NOI growth of 3.75% to 4.25%.

Net investment activity, defined as anticipated acquisitions less dispositions, is expected to range from $190 million to $255 million for the year.

At Sept. 30, net debt stood at $1.01 billion, up from $790.9 million at the end of 2025. Trailing-12-month net debt to adjusted EBITDA was 5.3 times, while the current-quarter annualized ratio was 4.9 times, within the company’s long-term target of 5.0 to 6.0 times. The net leverage ratio was 31.2%, compared with a long-term target of 25% to 35%.

InvenTrust had $510 million of liquidity and no debt maturities in 2026, with $26 million due in 2027. Its weighted-average interest rate was 4.7%, and weighted-average debt maturity was 4.1 years. The company completed a $250 million private placement of senior notes in June and maintained a BBB-minus Fitch rating with a stable outlook.

The annualized dividend rate was $1.00 per share. Distributions declared during the first nine months represented 50.5% of Core FFO.

Management’s outlook remains subject to interest-rate movements, inflation, economic conditions and competitive pressures. Other identified risks include e-commerce, tenant consolidation, store closures and bankruptcies, reductions in store size, tariffs and changes in global trade policy.