InvenTrust Capitalizes on Sun Belt Growth

A major California property sale and reinvestments in high-growth markets highlight the REIT’s expansion strategy.

July 30, 2025

Strong Quarter Reflects Active Capital Deployment

InvenTrust’s latest results show a company that’s putting its capital to work—and seeing returns. For the second quarter of 2025, net income landed at $95.9 million, up sharply from $1.5 million a year ago. This performance reflects a broader strategy in motion: move out of lower-growth areas, reinvest in markets with stronger momentum, and keep the portfolio aligned with long-term goals.

The company closed a $306 million sale of five California properties in June. It didn’t wait long to redeploy that capital. Over the same quarter, InvenTrust acquired four grocery-anchored retail centers across the Sun Belt—including sites in Arizona, North Carolina, South Carolina, and Georgia. These properties totaled 330,000 square feet and cost $105.4 million. Each is anchored by well-established tenants like Trader Joe’s, Whole Foods, and Publix.

The acquisitions didn’t stop there. In July, InvenTrust added two more centers to its roster: a Sprouts-anchored site in San Antonio and a Wegmans-anchored property in Richmond. Together, these deals added another 478,000 square feet.

Leasing Activity and NOI Performance Stay Strong

On the operations side, things remained solid. As of June 30, leased occupancy stood at 97.3%, with small-shop occupancy improving sequentially. The company executed 73 leases during the quarter, with a blended re-leasing spread of 16.4% —a sign that replacement rents are trending higher. Same Property NOI rose 4.8% year over year, and the company maintained its full-year guidance range of 4.0% to 5.0% growth.

FFO and Rent Metrics Show Steady Progress

In terms of cash flow, both Nareit FFO and Core FFO showed moderate gains from last year. Core FFO per diluted share came in at $0.44, slightly ahead of last year’s $0.43. Annualized base rent per square foot rose to $20.18, supported by strength from both anchor and small-shop tenants.

Liquidity Profile and Balance Sheet Highlights

Liquidity remained strong. The company ended the quarter with $787.1 million available, split between cash and its credit facility. With only $22.9 million in debt maturing this year and no major refinancing needs until 2026, the balance sheet is in a comfortable place. The company also brought its net debt-to-adjusted EBITDA ratio down to 2.8x from 4.1x at the end of 2024.

Updated Guidance and Market Positioning

Looking ahead, InvenTrust raised its full-year net income guidance to $1.43 to $1.49 per diluted share. FFO targets were reaffirmed, and investment activity for the year is expected to net out to approximately $100 million.

The moves this quarter weren’t just about buying and selling real estate—they were about sharpening the portfolio. InvenTrust is making clear, deliberate changes, and the results are showing up across the board.