Net debt-to-adjusted EBITDA has climbed to 5.3x from 4.5x at year-end, still inside the REIT’s long-term target range.

August 4, 2026

InvenTrust Properties Corp. carried its Sun Belt grocery-anchored strategy into the second half of 2026 with second-quarter core funds from operations of $0.48 per diluted share, up from $0.44 in the year-ago quarter, and a full-year core FFO target of $1.92 to $1.96 per diluted share that implies growth of 4.9 percent to 7.1 percent.

Same-property net operating income rose 4.1 percent in the quarter, to $48.5 million from $46.6 million, with first-half same-property NOI reaching $97.2 million against $94.1 million a year earlier. Nareit FFO came in at $0.50 per diluted share versus $0.45. Reported net income fell sharply, to $0.02 per diluted share from $1.23 — a comparison distorted by the $90.9 million gain on sale of investment properties booked in the second quarter of 2025 and by higher depreciation and interest expense tied to this year’s acquisition activity.

Leasing holds, with revenue still to switch on

Occupancy and spreads were steady across the quarter:

• Total leased occupancy of 96.2 percent at June 30, with anchor space at 98.1 percent and small-shop space at 93.2 percent
• Tenant retention of 88 percent
• Comparable new and renewal leasing spreads averaging 8.5 percent
• Annualized base rent per square foot of $20.94 including ground rent, or $22.63 excluding it

The signed-not-open pipeline holds $5.6 million of incremental annualized base rent, with 77 percent expected to commence during 2026 but only 18 percent expected to be recognized as income this year. The spread between leased and economic occupancy widened to 160 basis points from 130 basis points at the end of 2025 — revenue already contracted and waiting to turn on.

Acquisitions and the funding mix

The clearest change in the quarter is pace. InvenTrust bought roughly $465 million of assets in 2025 and has closed approximately $290 million year to date in 2026, against full-year net investment guidance of about $300 million. Purchases span Nashville West and Marketplace at Hudson Station in the first quarter; Western Plaza in Knoxville, Sweetgrass Corner in Charleston and 3609 South in Charlotte in the second; and New Garden Crossing in Greensboro after quarter close. Management points to new and renewal lease spreads averaging roughly 18 percent on assets acquired during 2024 and 2025 as evidence the platform is buying below-market rent rolls rather than simply adding square footage.

That buying has been funded partly with debt. Outstanding debt, net, stood at $1.09 billion at June 30 against $825.9 million at year-end 2025, and net debt reached $1.03 billion versus $790.9 million. Net debt-to-adjusted EBITDA on a current-quarter annualized basis was 5.3x, compared with 4.5x at December 31, and 5.5x on a trailing twelve-month basis. Both land inside the stated long-term target of 5.0x to 6.0x, and the net leverage ratio of 31.9 percent sits within the 25 percent to 35 percent target band. Fitch maintains a BBB- rating with a stable outlook.

The maturity ladder after June’s placement

The company completed its $250 million senior unsecured notes private placement in June, the transaction announced in April across three tranches maturing in 2029, 2031 and 2033. That issuance is visible in the schedule: nothing comes due in 2026, $26 million in 2027 and $21 million in 2028, then $337 million in 2029, $300 million in 2031 and $100 million in each of 2032 and 2033. Weighted average interest rate is 4.4 percent with a weighted average maturity of 4.3 years, total liquidity was $489 million at quarter end, and fixed charge coverage was 5.3x.

Portfolio shape and tenant credit

The portfolio comprised 78 retail properties totaling 12.3 million square feet of gross leasable area, averaging roughly 158,000 square feet per center, with 97 percent of annualized base rent from Sun Belt markets. Austin remains the largest market at 14 percent of ABR, followed by Atlanta, Houston and Miami at 9 percent each and Dallas at 8 percent, with the top five accounting for 49 percent of the total. Trade areas average 77,000 residents and $161,000 of average household income within three miles.

The 89 percent grocery-anchored figure carries a definitional footnote worth reading: it includes shadow-anchored centers, and Walmart, Target and warehouse clubs are counted as grocers. That is a broader definition than a strict supermarket count, and allocators comparing the metric across strip-center REITs should confirm each issuer uses the same convention.

On tenant credit, InvenTrust cites exposure to a BofA watch list of 34 retailers at 1.8 percent of gross leasable area, against a peer average of 5.9 percent. Its top ten tenants account for 19.5 percent of annualized base rent across 93 leases, with most rated investment grade or unrated.

Longer-run levers

The redevelopment program is modest by design, with anticipated project yields of 7 percent to 10 percent. Active work includes anchor repositioning and grocer expansion at The Parke in Austin and a multi-tenant building at Westpark Shopping Center in Richmond, both targeted for 2027 completion, plus a grocer demolition and rebuild at Gateway Marketplace in St. Petersburg scheduled to begin this year. Eight further projects sit in planning.

Management frames long-term annual NOI growth as a build from embedded rent escalations of 150 to 200 basis points, positive leasing spreads of 50 to 100 basis points, occupancy gains of 50 to 75 basis points, and 25 to 50 basis points each from redevelopment and operating efficiency. Across 2022 through 2025 the company reports cumulative same-property NOI growth of 19.8 percent against a peer average of 16.9 percent, achieved with capital expenditures averaging 23 percent of NOI versus a 27 percent peer average.

The dividend was declared at $0.25 for the quarter, an annualized rate of $1.00, up from $0.95 in 2024 and $0.91 in 2023. Aggregate distributions represented 51 percent of core FFO.

Full-year guidance also calls for same-property NOI growth of 3.25 percent to 4.25 percent, Nareit FFO of $2.01 to $2.07 per diluted share and net income of $0.12 to $0.18 per diluted share. With half the year behind it and $290 million of the roughly $300 million net investment budget already deployed, the question for the balance of 2026 is whether InvenTrust adds to the pipeline management describes as strong and lets leverage drift further up its target range, or holds at current levels and lets the acquired rent rolls do the work.