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What changed in InvenTrust Properties Corp.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of InvenTrust Properties Corp.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+190 added−196 removedSource: 10-K (2024-02-14) vs 10-K (2023-02-21)

Top changes in InvenTrust Properties Corp.'s 2023 10-K

190 paragraphs added · 196 removed · 148 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

32 edited+4 added−4 removed18 unchanged
Biggest changeWe believe that the more engaged our employees are the more likely productivity will increase and drive empowerment throughout the organization for our employees to act like owners. Our hybrid work model provides an opportunity for employees to balance work and life whether they are in the office or at home.
Biggest changeIn 2023, 87% of our employees were highly engaged and we were named of one Chicago's Top Workplaces by The Chicago Tribune for the second year in a row. We believe that the more engaged our employees are the more likely productivity will increase and drive empowerment throughout the organization for our employees to act like owners.
Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income, property or net worth and federal income and excise taxes on our undistributed income. Our Website and Availability of SEC Reports and Other Information The Company maintains a website at the following address: www.inventrustproperties.com.
Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income, property or net worth and federal income and excise taxes on our undistributed income. 3 Our Website and Availability of SEC Reports and Other Information The Company maintains a website at the following address: www.inventrustproperties.com.
Our ample liquidity, and sector-low leverage, provide an additional competitive advantage of flexibility to transact. Our concerted focus on Sun Belt markets provides us greater opportunity to carefully evaluate potential acquisitions. 2 Human Capital Management Our employees are our greatest asset and the foundation for our success.
Our ample liquidity, and sector-low leverage, provide an additional competitive advantage of flexibility to transact. Our concerted focus on Sun Belt markets provides us greater opportunity to carefully evaluate potential acquisitions. Human Capital Management Our employees are our greatest asset and the foundation for our success.
We remain committed to transparency in our investment strategy with a focus on operating efficiency, responding to evolving trends, and addressing the needs of our tenants and communities by continuing to fully integrate environmental sustainability, social responsibility, and strong governance practices throughout our organization.
We remain committed to transparency in our investment strategy with a focus on operating efficiency, responding to evolving trends, and addressing the needs of our tenants and communities by continuing to integrate environmental sustainability, social responsibility, and strong governance practices throughout our organization.
We remain committed to transparency in our investment strategy with a focus on operating efficiency, responding to evolving trends, and addressing the needs of our tenants and communities by continuing to fully integrate environmental sustainability, social responsibility, and strong governance practices throughout our organization.
We remain committed to transparency in our investment strategy with a focus on operating efficiency, responding to evolving trends, and addressing the needs of our tenants and communities by continuing to integrate environmental sustainability, social responsibility, and strong governance practices throughout our organization.
We also intend to use certain social media channels as a means of disclosing information about us and our business to our colleagues, customers, investors and the public (e.g., the InvenTrust Twitter account (twitter.com/inventrustprop); and the InvenTrust LinkedIn account (linkedin.com/company/inventrustproperties).
We also intend to use certain social media channels as a means of disclosing information about us and our business to our colleagues, customers, investors and the public (e.g., the InvenTrust X account (twitter.com/inventrustprop); and the InvenTrust LinkedIn account (linkedin.com/company/inventrustproperties).
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. Acquiring retail properties in Sun Belt markets.
We pursue our business strategy by: • Acquiring retail properties in Sun Belt markets; • Opportunistically disposing of retail properties; 1 • Maintaining a flexible capital structure; and • Enhancing our environmental, social and governance practices and standards. Acquiring retail properties in Sun Belt markets.
For the avoidance of doubt, neither our 2021 ESG Report nor any portion thereof is incorporated by reference into this Annual Report. To date, compliance with federal, state and local environmental laws has not had a material adverse effect on our business, assets, results of operations, financial condition and/or our ability to pay distributions.
For the avoidance of doubt, neither our 2022 ESG Report nor any portion thereof is incorporated by reference into this Annual Report. To date, compliance with federal, state and local environmental laws has not had a material adverse effect on our business, assets, results of operations, financial condition and/or our ability to pay distributions.
The information posted on social media channels is not incorporated by reference in this report or in any other report or document we file with the SEC.
The information posted on social media channels is not incorporated by reference in this Annual Report or in any other report or document we file with the SEC.
We define racial diversity as employees who are African American or Black, Alaskan Native or Native American, Asian, Hispanic or Latinx, and Native Hawaiian or Pacific Islander. We define gender diversity as employees who identify as women. Overall diversity across our workforce is approximately 65%, including gender and racial/ethnic groups. Racial diversity across our workforce is 19%.
We define racial diversity as employees who are African American or Black, Alaskan Native or Native American, Asian, Hispanic or Latinx, and Native Hawaiian or Pacific Islander. We define gender diversity as employees who identify as women. Overall diversity across our workforce is approximately 67%, including gender and racial/ethnic groups. Racial diversity across our workforce is 19%.
To qualify as a REIT, we are generally required to distribute at least 90% of our REIT taxable income (subject to certain adjustments) to our stockholders each year (the "90% Distribution Requirement"). As a REIT, we are entitled to a tax deduction for some or all of the dividends paid to stockholders.
To qualify as a REIT, we are generally required to distribute at least 90% of our REIT taxable income (subject to certain adjustments) to our stockholders each year. As a REIT, we are entitled to a tax deduction for some or all of the dividends paid to stockholders.
Women represent approximately 59% of our employees. Our Human Capital strategy is focused on talent management. The basis for hiring, development, training, compensation and advancement are qualifications, performance, skills and experience. We believe our employees are fairly compensated, without regard to gender, race, and ethnicity.
Women represent approximately 61% of our employees. 2 Our Human Capital strategy is focused on talent management. The basis for hiring, development, training, compensation and advancement are qualifications, performance, skills and experience. We believe our employees are fairly compensated, without regard to gender, race, and ethnicity.
Accordingly, the Company encourages investors, the media, and others interested in InvenTrust to review the information that it shares on the Company's investor relations website at www.inventrustproperties.com/investor-relations, and regularly follow our social media accounts. 4
Accordingly, the Company encourages investors, the media, and others interested in InvenTrust to review the information that it shares on the Company's investor relations website at inventrustproperties.com/investor-relations, and regularly follow the Company's social media accounts.
We seek to attract and retain diverse and talented professionals who provide a wide range of opinions and experiences to drive our business forward. As of December 31, 2022, we have 106 full-time employees.
We seek to attract and retain diverse and talented professionals who provide a wide range of opinions and experiences to drive our business forward. As of December 31, 2023, we have 104 full-time employees.
The information on the Company's website is not incorporated by reference in this report or in any other report or document we file with the SEC, and any references to our website are intended to be inactive textual references only.
The information on the Company's website is not incorporated by reference in this Annual Report or in any other report or document we file with the U.S. Securities and Exchange Commission ("SEC"), and any references to our website are intended to be inactive textual references only.
Item 1. Business General On October 4, 2004, we were incorporated as Inland American Real Estate Trust, Inc., a Maryland corporation, and have elected and operate in a manner to be taxed as a REIT for federal tax purposes.
Item 1. Business General 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 REIT for federal tax purposes.
(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.
(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.
IAGM was formed on April 17, 2013 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.
IAGM was formed on April 17, 2013 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. As of December 31, 2022, IAGM was the Company's sole joint venture and was unconsolidated.
Our monthly, "On The Spot" award recognizes employees who go above and beyond their job. Our annual awards, the "Rising Star" and "Standing Ovation" recognize new employees and tenured employees who exhibit exceptional promise, ability, and our InvenTrust values. We monitor our performance through employee engagement surveys and utilize the results to continually improve our organization.
Our annual awards, the "Rising Star" and "Standing Ovation" recognize new employees and tenured employees who exhibit exceptional promise, ability, and our InvenTrust values. We monitor our performance through employee engagement surveys and utilize the results to continually improve our organization. Environment, Social and Governance ESG is not new to InvenTrust.
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.
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.
ABR per square foot ("PSF") is computed as ABR divided by the occupied square footage as of the end of the period. 1 Business Strategy InvenTrust 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.
Business Strategy 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.
Wholly-Owned Retail Properties IAGM Retail Properties Pro Rata Combined Retail Portfolio No. of properties 58 4 62 GLA (square feet) 9,171 1,125 9,790 Economic occupancy (a) 94.2% 90.2% 93.9% Leased occupancy (b) 96.2% 93.6% 96.1% ABR PSF (c) $19.26 $16.22 $19.08 (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.
As of December 31, 2023 No. of properties 62 GLA (square feet) 10,324 Economic occupancy (a) 93.3% Leased occupancy (b) 96.2% ABR PSF (c) $19.48 (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.
We believe in fostering a highly engaged inclusive environment which drives growth and productivity. We believe that our heightened focus on development and health and wellness creates a more engaged workforce. In 2022, 81% of our employees were highly engaged and we were named of one Chicago's Top Workplaces by The Chicago Tribune.
We believe in fostering a highly engaged inclusive environment which drives growth and productivity. We believe that our heightened focus on employee development and health and wellness creates a more engaged workforce.
We also host monthly events focused on employee education, health and wellness, engagement activities, and giving back to our communities. Our events consist of company-wide executive led meetings to stay connected with our employees, wellness competitions, food trucks, game days, happy hours, and charity events serving our communities.
Our events consist of company-wide executive led meetings to stay connected with our employees, wellness competitions, food trucks, game days, happy hours, and charity events serving our communities. We are proud that 100% of our employees participated in charitable events giving back to our communities in 2023.
Environment, Social and Governance ESG is not new to InvenTrust. Since 2013, we have participated in compiling and reporting on ESG metrics with GRESB (formerly "Global Real Estate Sustainability Benchmark"), an independent organization providing ESG performance data and peer benchmarks for investors and organizations.
Since 2013, we have participated in compiling and reporting on ESG metrics with GRESB (formerly "Global Real Estate Sustainability Benchmark"), an independent organization providing ESG performance data and peer benchmarks for investors and organizations. We believe we can enhance our communities, conserve resources, and foster a best-in-class working environment while growing long-term stockholder value.
However, we acknowledge that ESG-related regulation, including environmental-related regulation and legislation, is evolving, and we cannot predict the impact of unforeseen ESG contingencies or new or changed laws or regulations on our properties, operations, and financials. 3 Tax Status We have elected and operate in a manner to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"), beginning with the tax year ended December 31, 2005.
Tax Status We have elected and operate in a manner to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"), beginning with the tax year ended December 31, 2005.
As of December 31, 2022, we owned or had an interest in 62 retail properties with a total gross leasable area ("GLA") of approximately 10.3 million square feet, which includes 4 retail properties with a GLA of approximately 1.1 million square feet owned through our 55% ownership interest in IAGM Retail Fund I, LLC ("IAGM"), an unconsolidated retail joint venture partnership between the Company and PGGM Private Real Estate Fund ("PGGM").
Joint Venture Acquisition As of December 31, 2022, the Company owned a 55% interest in IAGM Retail Fund I, LLC ("IAGM"), an unconsolidated retail joint venture partnership between the Company and PGGM Private Real Estate Fund ("PGGM").
We are proud that 100% of our employees participated in charitable events giving back to our communities in 2022. We also implemented half day Fridays to help our employees balance work and life focusing on mental health as well as giving back to our communities through charitable endeavors. We celebrate our employees' success through our Circle of Excellence awards.
Our Flexible Fridays program enables our employees to balance work and life focusing on mental health as well as giving back to our communities through charitable endeavors. We celebrate our employees' success through our Circle of Excellence awards. Our monthly, "On The Spot" award recognizes employees who go above and beyond their job.
We do not believe that our existing retail platform will require us to incur material expenditures to comply with these laws and regulations.
We do not believe that our existing retail platform will require us to incur material expenditures to comply with these laws and regulations. However, we acknowledge that ESG-related regulation, including environmental-related regulation and legislation, is evolving, and we cannot predict the impact of unforeseen ESG contingencies or new or changed laws or regulations on our properties, operations, and financials.
Where appropriate, we have included results from the IAGM properties at 55% ("at share") when combined with our wholly-owned properties, defined as "Pro Rata Combined Retail Portfolio" within "Part I" and "Part II" of this Annual Report. The following table summarizes our retail portfolio as of December 31, 2022.
Throughout this Annual Report, where indicated as "Pro Rata," the Company has included the results from its ownership share of its joint venture properties at 55% ("at share") when combined with the Company's wholly owned properties, defined as "Pro Rata," except for property and lease count, as of and for the year ended December 31, 2022.
We changed our name to InvenTrust Properties Corp. in April 2015 and are focused on owning, leasing, redeveloping, acquiring and managing a multi-tenant retail platform. On October 12, 2021, the Company's shares of common stock were listed and began trading on the New York Stock Exchange ("NYSE") under the ticker symbol "IVT" (the "NYSE Listing").
The Company changed its name to InvenTrust Properties Corp. in April 2015 and is focused on owning, leasing, redeveloping, acquiring and managing a multi-tenant retail platform.
Our wholly-owned and managed retail properties include grocery-anchored community and neighborhood centers and power centers, including those classified as necessity-based.
On October 12, 2021, the Company's shares of common stock were listed and began trading on the New York Stock Exchange ("NYSE") under the ticker symbol "IVT." InvenTrust's wholly-owned and managed retail properties include grocery-anchored community and neighborhood centers and power centers, including those classified as necessity-based.
Removed
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.
Added
As of December 31, 2023, the Company owned 62 retail properties with a total gross leasable area ("GLA") of approximately 10.3 million square feet. The following table summarizes our retail portfolio as of December 31, 2023.
Removed
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.
Added
On January 18, 2023, the Company acquired the four remaining retail properties from IAGM.
Removed
InvenTrust focuses on Sun Belt grocery-anchored neighborhood and community centers, and select power centers that often have a grocery component, in markets with favorable demographics, including above average growth in population, employment, income and education levels.
Added
Our hybrid work model provides an opportunity for employees to balance work and life whether they are in the office or at home. We also host monthly events focused on employee education, health and wellness, engagement activities, and giving back to our communities.
Removed
We believe we can enhance our communities, conserve resources and foster a best-in-class working environment while growing long-term stockholder value. In 2022, we issued our inaugural Environmental, Social and Governance Report ("2021 ESG Report"), set measurable 5-year targets, and increased our GRESB score by eight points over the prior year.
Added
In 2023, we set energy, water, waste and greenhouse gas reduction targets, continued progress towards our 5-year goals, and increased our GRESB score by five points year over year.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

25 edited+12 added−5 removed106 unchanged
Biggest changeRisk Factors Related to Our Business and Strategy Economic, political and market conditions could negatively impact our business, results of operations and financial condition Our business is affected by economic, political and market challenges experienced by the U.S. or global economies or the real estate industry as a whole; by the regional or local economic conditions in the markets in which our assets are located, including any dislocations in the credit markets; or by competitive business market conditions experienced by us, These conditions may materially affect our value and the performance of our assets and our ability to sell assets, as well as our ability to make principal and interest payments on, or refinance, outstanding debt when due.
Biggest changeRisk Factors Related to Our Business and Strategy Economic, political and market conditions could negatively impact our business, results of operations and financial condition Our business is affected by economic, political and market challenges experienced by the U.S. or global economies or the real estate industry as a whole; by the regional or local economic conditions in the markets in which our assets are located, including any dislocations in the credit markets; or by competitive business market conditions experienced by us.
Risks include the following: • we may be unable to lease developments to full occupancy on a timely basis; • the occupancy rates and rents of a completed project may not be sufficient to make the project profitable; • actual costs of a project may exceed original estimates, possibly making the project unprofitable; 7 • delays in the development or construction process may increase our costs; • we may not be able to obtain, or may experience delays in obtaining necessary zoning, land use, building, occupancy and other required governmental permits and authorizations; • we may abandon a development project and lose our investment; • the size of our development pipeline may strain our labor or capital capacity to complete developments within targeted timelines and may reduce our investment returns; • a reduction in the demand for new retail space may reduce our future development activities, which in turn may reduce our net operating income; and • changes in the level of future development activity may adversely impact our results from operations by reducing the amount of certain internal overhead costs that may be capitalized.
Risks include the following: • we may be unable to lease developments to full occupancy on a timely basis; • the occupancy rates and rents of a completed project may not be sufficient to make the project profitable; • actual costs of a project may exceed original estimates, possibly making the project unprofitable; • delays in the development or construction process may increase our costs; • we may not be able to obtain, or may experience delays in obtaining necessary zoning, land use, building, occupancy and other required governmental permits and authorizations; • we may abandon a development project and lose our investment; • the size of our development pipeline may strain our labor or capital capacity to complete developments within targeted timelines and may reduce our investment returns; • a reduction in the demand for new retail space may reduce our future development activities, which in turn may reduce our net operating income; and • changes in the level of future development activity may adversely impact our results from operations by reducing the amount of certain internal overhead costs that may be capitalized.
Our existing and future debt may subject us to many risks, including the risks that: • our cash flow from operations will be insufficient to make required payments of principal and interest; • our debt may increase our vulnerability to adverse economic and industry conditions; • we may be required to dedicate a substantial portion of our cash flow from operations to payments on our debt, thereby reducing cash available for distribution to our stockholders, funds available for operations and capital expenditures, future business opportunities or other purposes; • the terms of any refinancing may not be as favorable as the terms of the debt being refinanced; and • the terms of our debt may limit our ability to make distributions to our stockholders and therefore adversely affect the market price of our stock. 9 If we do not have sufficient funds to repay our debt at maturity, it may be necessary to refinance this debt through additional debt financing, or private or public offerings of debt or equity securities.
Our existing and future debt may subject us to many risks, including the risks that: • our cash flow from operations will be insufficient to make required payments of principal and interest; • our debt may increase our vulnerability to adverse economic and industry conditions; • we may be required to dedicate a substantial portion of our cash flow from operations to payments on our debt, thereby reducing cash available for distribution to our stockholders, funds available for operations and capital expenditures, future business opportunities or other purposes; • the terms of any refinancing may not be as favorable as the terms of the debt being refinanced; and • the terms of our debt may limit our ability to make distributions to our stockholders and therefore adversely affect the market price of our stock. 8 If we do not have sufficient funds to repay our debt at maturity, it may be necessary to refinance this debt through additional debt financing, or private or public offerings of debt or equity securities.
While we maintain some of our own critical IT systems, we also depend on third parties to provide important IT services relating to several key business functions. Furthermore, the security measures employed by third-party service providers may prove to be ineffective at preventing breaches of their systems.
While we maintain some of our own critical IT systems, we also depend on third parties to provide important IT services relating to several key business functions. Furthermore, the security measures employed by third-party service providers may prove to be 12 ineffective at preventing breaches of their systems.
Among the factors that could have a negative impact our assets and the value of an investment in us are the following: • relative illiquidity of real estate; • competition amongst other owners of commercial real estate for investments in similar markets; • expansion into new markets that we are not as familiar with; • changing market demographics; • risks associated with the possibility that cost increases will outpace revenue increases and that in the event of an economic slowdown, the high proportion of fixed costs will make it difficult to reduce costs to the extent required to offset declining revenues; • changes in tax laws and property taxes, or an increase in the assessed valuation of an asset for real estate tax purposes; • adverse changes in the federal, state or local laws and regulations applicable to us, including those affecting zoning, fuel and energy consumption, water and environmental restrictions, and the related costs of compliance; • an inability to finance real estate assets on favorable terms, if at all; • significant capital expenditures may be required to improve our properties to attract tenants • the ongoing need for owner-funded capital for improvements and expenditures to maintain or upgrade assets, make tenant improvements and pay leasing commissions; • fluctuations in real estate values or potential impairments in the value of our assets; • natural disasters, such as earthquakes, droughts, hurricanes, floods, extreme storms and weather or other under-insured or uninsured losses, which may result from or be exacerbated by climate change, and man-made events, such as terrorist attacks or events of sabotage; and • changes in interest rates and availability, cost and terms of financing.
Among the factors that could have a negative impact on our assets and the value of an investment in us are the following: • relative illiquidity of real estate; • competition amongst other owners of commercial real estate for investments in similar markets; • expansion into new markets that we are not as familiar with; • changing market demographics; • risks associated with the possibility that cost increases will outpace revenue increases and that in the event of an economic slowdown, the high proportion of fixed costs will make it difficult to reduce costs to the extent required to offset declining revenues; • changes in tax laws and property taxes, or an increase in the assessed valuation of an asset for real estate tax purposes; • adverse changes in the federal, state or local laws and regulations applicable to us, including those affecting zoning, fuel and energy consumption, water and environmental restrictions, and the related costs of compliance; • an inability to finance real estate assets on favorable terms, if at all; • significant capital expenditures may be required to improve our properties to attract tenants; • the ongoing need for owner-funded capital for improvements and expenditures to maintain or upgrade assets, make tenant improvements and pay leasing commissions; • fluctuations in real estate values or potential impairments in the value of our assets; • natural disasters, such as earthquakes, droughts, hurricanes, floods, extreme storms and weather or other under-insured or uninsured losses, which may result from or be exacerbated by climate change, and man-made events, such as terrorist attacks or events of sabotage; and • changes in interest rates and availability, and cost and terms of financing. 6 We face risks with the expansion, development, and re-development of properties.
Tenant defaults and decreased demand for retail space would have an adverse impact on the value of our retail properties and our results of operations. A consumer shift in retail shopping from brick and mortar stores to e-commerce may have an adverse impact on our revenues and cash flow.
Tenant defaults and decreased demand for retail space would have an adverse impact on the value of our retail properties and our results of operations. 4 A consumer shift in retail shopping from brick and mortar stores to e-commerce may have an adverse impact on our revenues and cash flow.
The market price of our equity securities may fluctuate significantly in response to many factors, many of which are out of our control, including: • actual or anticipated variations in our operating results, liquidity or financial condition; • changes in our earnings estimates or failure to meet earnings estimates; • changes in our funds from operations; • increases in market interest rates that drive purchasers of our stock to demand a higher dividend yield; 10 • changes in market valuations of similar companies; • adverse market reaction to any additional debt we incur in the future; • additions or departures of key management personnel; • the general reputations of REITs and the attractiveness of equity securities in comparison to other equity securities including securities issued by other real estate based companies; • our underlying asset value; • strategic actions by the Company or our competitors, such as acquisitions, dispositions or restructurings; • fluctuations in the stock price and operating results of the Company’s competitors; • the passage of legislations or other regulatory developments that may adversely affect the Company or the REIT industry, including but not limited to Section 1031 of the Internal Revenue Code; • investor confidence in the stock and bond market generally; • changes in tax laws or accounting principles; • publication of research reports about us or the real estate industry in general and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REITs; • future equity issuances or the perception that such equity issuances may occur; • failure to maintain our status as a REIT; • actions by institutional stockholders or by corporate governance rating companies; • increased investor focus on sustainability-related risks, including climate change; • changes in our dividend payments; and • general market and economic conditions, including factors unrelated to the Company’s operating performance.
The market price of our equity securities may fluctuate significantly in response to many factors, many of which are out of our control, including: • actual or anticipated variations in our operating results, liquidity or financial condition; • changes in our earnings estimates or failure to meet earnings estimates; • changes in our funds from operations; • increases in market interest rates that drive purchasers of our stock to demand a higher dividend yield; 9 • changes in market valuations of similar companies; • adverse market reaction to any additional debt we incur in the future; • additions or departures of key management personnel; • the general reputations of REITs and the attractiveness of equity securities in comparison to other equity securities including securities issued by other real estate based companies; • our underlying asset value; • strategic actions by the Company or our competitors, such as acquisitions, dispositions or restructurings; • fluctuations in the stock price and operating results of the Company’s competitors; • the passage of legislations or other regulatory developments that may adversely affect the Company or the REIT industry, including but not limited to Section 1031 of the Code; • investor confidence in the stock and bond markets generally; • changes in tax laws or accounting principles; • publication of research reports about us or the real estate industry in general and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REITs; • future equity issuances or the perception that such equity issuances may occur; • failure to maintain our status as a REIT; • actions by institutional stockholders or by corporate governance rating companies; • increased investor focus on sustainability-related risks, including climate change; • changes in our dividend payments; and • general market and economic conditions, including factors unrelated to the Company’s operating performance.
Any such acquisitions, investments or dispositions could also demand significant attention from management that would otherwise be available for our regular business operations, which could harm our business. 8 We may obtain only limited warranties when we purchase a property and would have only limited recourse if our due diligence did not identify issues that could decrease the value of our property after the purchase.
Any such acquisitions, investments or dispositions could also demand significant attention from management that would otherwise be available for our regular business operations, which could harm our business. 7 We may obtain only limited warranties when we purchase a property and would have only limited recourse if our due diligence did not identify issues that could decrease the value of our property after the purchase.
This ownership limit may delay or prevent a transaction or change in control that could affect our stockholder’s ability to realize a premium over the then prevailing market price for their shares, it could also restrict our stockholders' ability to acquire or transfer certain amounts of our common stock. 14 Item 1B. Unresolved Staff Comments None.
This ownership limit may delay or prevent a transaction or change in control that could affect our stockholder’s ability to realize a premium over the then prevailing market price for their shares, it could also restrict our stockholders' ability to acquire or transfer certain amounts of our common stock. Item 1B. Unresolved Staff Comments None. 13
In addition, insurance risks associated with potential terrorist acts could sharply increase the premiums we pay for coverage against property and casualty claims. 12 We could incur material costs related to government regulation and litigation with respect to environmental matters, which could materially and adversely affect our revenues and profitability.
In addition, insurance risks associated with potential terrorist acts could sharply increase the premiums we pay for coverage against property and casualty claims. 11 We could incur material costs related to government regulation and litigation with respect to environmental matters, which could materially and adversely affect our revenues and profitability.
For the year ended December 31, 2022, distributions were paid from cash flow from operations, distributions from unconsolidated entities and proceeds from the sales of properties. 11 Risks Factors Related to Our Organization and Corporate Structure Our charter permits our Board to issue preferred stock on terms that may subordinate the rights of the holders of our current common stock or discourage a third party from acquiring us.
For the year ended December 31, 2023, distributions were paid from cash flow from operations and proceeds from the sales of properties. 10 Risks Factors Related to Our Organization and Corporate Structure Our charter permits our Board to issue preferred stock on terms that may subordinate the rights of the holders of our current common stock or discourage a third party from acquiring us.
To qualify as a REIT, our assets must be substantially comprised of real estate assets as defined in the Internal Revenue Code of 1986, as amended (the “Code”), and related guidance and our gross income must generally come from rental and other real estate or passive related sources that are itemized in the REIT tax laws.
To qualify as a REIT, our assets must be substantially comprised of real estate assets as defined in the Code, and related guidance and our gross income must generally come from rental and other real estate or passive related sources that are itemized in the REIT tax laws.
Among the factors that could impact our financial conditions are the following: • inability to renew, lease vacant space or re-let space as leases expire; • restrictions related to re-leasing space; • co-tenancy constraints which limit our ability to lease to certain operators or reduce our revenues at our properties if co-tenancy clauses are exercised and; • competition for tenancy of our leases As of December 31, 2022, economic occupancy and leased occupancy of our pro rata combined retail portfolio was 93.9% and 96.1%, respectively.
Among the factors that could impact our financial conditions are the following: • inability to renew, lease vacant space or re-let space as leases expire; • restrictions related to re-leasing space; • co-tenancy constraints which limit our ability to lease to certain operators or reduce our revenues at our properties if co-tenancy clauses are exercised and; • competition for tenancy of our leases As of December 31, 2023, economic occupancy and leased occupancy of our retail portfolio was 93.3% and 96.2%, respectively.
Our business and financial condition depend on the financial stability of our tenants and our ability to lease our space. Certain economic conditions, or center specific conditions may adversely affect one or more of our tenants.
Our financial condition may be impacted by our ability to timely re-lease our space. Our business and financial condition depend on the financial stability of our tenants and our ability to lease our space. Certain economic conditions, or center specific conditions may adversely affect one or more of our tenants.
If we fail to qualify as a REIT, we would be subject to U.S. federal income tax at regular corporate rates (including, for years prior to 2018, any alternative minimum tax) and would have to pay significant income taxes unless the Internal Revenue Service (“IRS”) granted us relief under certain statutory provisions.
If we fail to qualify as a REIT, we would be subject to U.S. federal income tax at regular corporate rates and would have to pay significant income taxes unless the Internal Revenue Service (“IRS”) granted us relief under certain statutory provisions.
As of December 31, 2022, leases representing approximately 4.9% and 10.0% of our pro rata combined retail portfolio GLA were scheduled to expire in 2023 and 2024. We cannot assure our stockholders that leases will be renewed or that our properties will be re-leased on terms equal to or better than the current terms, or at all.
As of December 31, 2023, leases representing approximately 5.0% and 12.1% of our retail portfolio GLA were scheduled to expire in 2024 and 2025, respectively. We cannot assure our stockholders that leases will be renewed or that our properties will be re-leased on terms equal to or better than the current terms, or at all.
As of December 31, 2022, approximately 38.7% of the total annualized base rental income in our retail portfolio was generated by properties located in Texas, with 18.3%, 9.6%, 7.4%, and 3.4% of our total annualized base rental income generated by properties in Austin, Dallas-Fort Worth-Arlington, Houston, and San Antonio metropolitan areas, respectively.
As of December 31, 2023, approximately 41.7% of the total annualized base rental income in our retail portfolio was generated by properties located in Texas, with 17.5%, 11.2%, 9.8%, and 3.2% of our total annualized base rental income generated by properties in Austin, Houston, Dallas-Fort Worth-Arlington, and San Antonio metropolitan areas, respectively.
As our reliance on technology has increased, so have the risks posed to our systems, both internal and those we have outsourced. 13 Although we make efforts to maintain the security and integrity of our IT networks and related systems, and we have implemented various measures to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches would not be successful or damaging.
Although we make efforts to maintain the security and integrity of our IT networks and related systems, and we have implemented various measures to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches would not be successful or damaging.
Our primary risks that could directly result from the occurrence of a cyber incident include operational interruption, damage to our relationships with our tenants and private data exposure. Our financial results and reputation may be negatively impacted by such an incident. A failure of our IT infrastructure could adversely impact our business and operations.
Our and our tenants' primary risks that could directly result from the occurrence of a cyber incident include operational interruption, damage to our relationships with our tenants or damage to our tenants' relationships with their customers, as applicable, and private data exposure. Our and our tenants' financial results and reputation may be negatively impacted by such an incident.
If the rental rates for our assets decrease, our existing tenants do not renew their leases or we do not re-lease a significant portion of our available space and space for which leases will expire, our financial condition, cash flows and results of operations could be adversely affected.
If the rental rates for our assets decrease, our existing tenants do not renew their leases or we do not re-lease a significant portion of our available space and space for which leases will expire, our financial condition, cash flows and results of operations could be adversely affected. 5 Many of our costs and expenses associated with operating our properties may remain constant or increase, even if our lease income decreases.
We face risks with the expansion, development, and re-development of properties. We seek to expand, develop and re-develop some of our existing properties and such activity is subject to various risks. We may not be successful in identifying and pursuing expansion, development and re-development opportunities.
We seek to expand, develop and re-develop some of our existing properties and such activity is subject to various risks. We may not be successful in identifying and pursuing expansion, development and re-development opportunities. In addition, like newly-acquired properties, expanded, developed and re-developed properties may not perform as well as expected.
More specifically, a cyber incident is an intentional attack or an unintentional event that can include an intruder gaining unauthorized access to systems to disrupt operations, corrupt data or steal confidential information.
More specifically, a cyber incident is an intentional attack or an unintentional event that can include an intruder gaining unauthorized access to systems to disrupt operations, corrupt data or steal confidential information. As our reliance on technology has increased, so have the risks posed to our systems, both internal and those we have outsourced.
If a significant number of our small shop tenants experience financial difficulties or are unable to remain open, our cash flow, financial condition and result of operations could be adversely affected. Our financial condition may be impacted by our ability to timely re-lease our space.
Our small shop tenants may be more vulnerable to negative economic conditions as they generally have more limited resources than our anchor tenants. If a significant number of our small shop tenants experience financial difficulties or are unable to remain open, our cash flow, financial condition and result of operations could be adversely affected.
Co-tenancy clauses have several variants and may allow a tenant to pay reduced levels of rent until a certain number of tenants open their stores within the same property. 5 If our small shop tenants (tenants occupying less than 10,000 square feet) are not successful and, consequently, terminate their leases, our cash flow, financial condition and results of operations could be adversely affected.
Co-tenancy clauses have several variants and may allow a tenant to pay reduced levels of rent until a certain number of tenants open their stores within the same property.
In such cases, our cash flows, operating results and financial performance may be adversely impacted. The ongoing COVID-19 pandemic has in the past and may continue to materially and adversely impact and disrupt our business, financial condition, results of operations and cash flows.
In such cases, our cash flows, operating results and financial performance may be adversely impacted. Pandemics, epidemics or other health crises may have a negative effect on our and our tenants' businesses, financial condition, results of operations, cash flows, and liquidity.
Removed
As of December 31, 2022, approximately 56.9% of our total annualized base rental income is generated by our small shop tenants. Our small shop tenants may be more vulnerable to negative economic conditions as they generally have more limited resources than our anchor tenants.
Added
These conditions may materially affect our value and the performance of our assets and our ability to sell assets, as well as our ability to make principal and interest payments on, or refinance, outstanding debt when due.
Removed
Many of our costs and expenses associated with operating our properties may remain constant or increase, even if our lease income decreases.
Added
If our small shop tenants (tenants occupying less than 10,000 square feet) are not successful and, consequently, terminate their leases, our cash flow, financial condition and results of operations could be adversely affected. As of December 31, 2023, approximately 58.0% of our total annualized base rental income is generated by our small shop tenants.
Removed
Any future outbreak of any COVID-19 variants or any other highly infectious or contagious disease could have a similar impact. The impact of COVID-19, including any resurgences, future pandemics or other health crises may also heighten other risks discussed herein, which could adversely affect our business, financial condition, results of operations, cash flows and market value.
Added
Our business, and the businesses of our tenants, could be materially and adversely affected by the risks, or the public perception of the risks, related to a pandemic, epidemic, or other health crisis, especially if there is a negative impact to customers' willingness or ability to frequent our tenants' businesses.
Removed
These type of health crises may impact our business in the following ways: • closures of, or other operational issues at, our properties resulting from government or tenant action; • reduced economic activity impacting our tenants' ability to meet their rental and other obligations to us in full or at all; • the ability of our tenants who have been granted rent deferrals to timely pay deferred rent; • any inability to renew leases or lease vacant space on favorable terms, or at all; • continued changes in consumer behavior in favor of e-commerce; 6 • tenant bankruptcies; • liquidity issues resulting from reduced cash flows from operations; • negative impacts to the credit and/or capital markets making it difficult to access capital on favorable terms or at all; • impairment in value of our tangible or intangible assets; • a general decline in business activity and demand for real estate transactions adversely affecting our ability to grow our portfolio of properties and service our indebtedness; • supply chain disruptions adversely affecting our tenants' operations; and • impacts on the health of our personnel and a disruption in the continuity of our business.
Added
Such crises could cause significant disruptions to the United States and global economy and contribute to significant volatility and negative pressure in financial markets.
Removed
In addition, like newly-acquired properties, expanded, developed and re-developed properties may not perform as well as expected.
Added
Government responses, including quarantines, restrictions on travel, mandatory closures of businesses, or other restrictions, as well as changes in consumer behavior, could negatively impact our tenants and their ability to operate their businesses, which could impact our ability to collect on current or past due rent payments or fully recover amounts due under the terms of a lease agreement in the event of a default by a tenant.
Added
The unpredictable nature of pandemics, epidemics, and other health crises precludes any prediction as to one’s ultimate adverse impact. A worsening of the economic, political and social environment as a result presents material risks and uncertainties with respect to our and our tenants’ business, financial condition, results of operations, cash flows, liquidity, and ability to satisfy debt service obligations.
Added
We maintain insurance coverage with third-party carriers who provide a portion of the coverage of potential losses, including wind, flood, named windstorm, earthquake, fire, and other property-related perils. We currently self-insure a portion of our commercial insurance deductible risk through our captive insurance company.
Added
To the extent that our captive insurance company is unable to bear that risk, we may be required to fund additional capital to our captive insurance company or we may be required to bear that loss. As a result, our operating results may be adversely affected.
Added
Cyberattacks are expected to accelerate on a global basis in frequency and magnitude as threat actors are becoming increasingly sophisticated in using techniques and tools – including generative and other artificial intelligence – that circumvent security controls, evade detection and remove forensic evidence.
Added
As a result, we, or our tenants, may be unable to detect, investigate, remediate or recover from future attacks or incidents, or to avoid a material adverse impact to our or their IT networks and related systems, confidential information or business.
Added
There can be no assurance that our cybersecurity risk management program and processes, including our policies, controls or procedures, will be fully implemented, complied with or effective in protecting our systems and information.
Added
Further, we cannot guarantee that any costs and liabilities incurred in relation to an attack or incident will be covered by our existing insurance policies or that applicable insurance will be available to us in the future on economically reasonable terms or at all. A failure of our IT infrastructure could adversely impact our business and operations.

Item 2. Properties

Properties — owned and leased real estate

12 edited+3 added−2 removed0 unchanged
Biggest changeLease Expiration Year No. of Expiring Leases (a) GLA of Expiring Leases (square feet) Percent of Total GLA of Expiring Leases ABR of Expiring Leases Percent of Total ABR Expiring ABR PSF 2023 138 448 4.9 % $ 9,610 5.2 % $21.45 2024 184 917 10.0 % 19,552 10.5 % 21.32 2025 178 1,128 12.3 % 20,533 11.0 % 18.20 2026 204 922 10.0 % 20,497 11.0 % 22.23 2027 264 1,926 21.0 % 38,801 20.9 % 20.15 2028 133 811 8.8 % 17,874 9.6 % 22.04 2029 101 579 6.3 % 12,490 6.7 % 21.57 2030 67 349 3.8 % 8,673 4.7 % 24.85 2031 74 502 5.5 % 10,469 5.6 % 20.85 2032 91 568 6.1 % 12,887 6.9 % 22.69 Thereafter 38 1,017 11.0 % 13,910 7.5 % 13.68 Other (b) 11 23 0.3 % 768 0.4 % 33.39 Totals 1,483 9,190 100 % $ 186,064 100 % $20.25 (a) No. of expiring leases includes IAGM at 100%.
Biggest changeLease Expiration Year No. of Expiring Leases GLA of Expiring Leases Percent of Total GLA of Expiring Leases ABR of Expiring Leases Percent of Total ABR Expiring ABR PSF (a) 2024 108 479 5.0 % $ 10,811 5.4 % $22.57 2025 170 1,170 12.1 % 20,178 10.1 % 17.25 2026 216 958 9.9 % 22,433 11.2 % 23.42 2027 266 1,887 19.6 % 38,897 19.5 % 20.61 2028 227 1,054 10.9 % 25,602 12.8 % 24.29 2029 153 1,127 11.7 % 22,457 11.2 % 19.93 2030 80 383 4.0 % 9,980 5.0 % 26.06 2031 75 504 5.2 % 10,563 5.3 % 20.96 2032 90 549 5.7 % 12,673 6.3 % 23.08 2033 61 386 4.0 % 9,959 5.0 % 25.80 Thereafter 42 1,100 11.5 % 15,048 7.7 % 13.68 Other (b) 10 34 0.4 % 1,052 0.5 % 30.94 Totals 1,498 9,631 100 % $ 199,653 100 % $20.73 (a) Expiring ABR PSF reflects ABR PSF at the time of lease expiration.
Parent Name Tenant Name/Count No. of Leases ABR Pro Rata Portfolio % of Total ABR GLA Pro Rata Portfolio % of Total Occ.GLA Kroger Kroger 7 / Kroger Gas 1 / Harris Teeter 3 / Ralphs 3 14 $ 8,277 4.7 % 738 7.5 % Publix Super Markets, Inc.
Parent Name Tenant Name/Count No. of Leases ABR % of Total ABR GLA % of Total Occ.GLA Kroger Kroger 7 / Kroger Gas 1 / Harris Teeter 4 / Ralphs 3 15 $ 9,676 5.2 % 864 8.4 % Publix Super Markets, Inc.
Wholly-Owned Retail Properties IAGM Retail Properties Pro Rata Combined Retail Portfolio 2022 2021 2022 2021 2022 2021 No. of properties 58 55 4 7 62 62 GLA (square feet) 9,171 8,560 1,125 1,768 9,790 9,532 Economic occupancy 94.2% 93.4% 90.2% 87.6% 93.9% 92.8% Leased occupancy 96.2% 94.6% 93.6% 88.2% 96.1% 93.9% ABR PSF $19.26 $18.76 $16.22 $16.98 $19.08 $18.59 The following table represents the geographical diversity of our retail portfolio by ABR and GLA on a pro rata basis as of December 31, 2022.
Wholly-Owned Retail Properties IAGM Retail Properties Pro Rata Combined Retail Portfolio 2023 2022 2023 2022 2023 2022 No. of properties 62 58 — 4 62 62 GLA (square feet) 10,324 9,171 — 1,125 10,324 9,790 Economic occupancy 93.3% 94.2% —% 90.2% 93.3% 93.9% Leased occupancy 96.2% 96.2% —% 93.6% 96.2% 96.1% ABR PSF $19.48 $19.26 $— $16.22 $19.48 $19.08 The following table represents the geographical diversity of our retail portfolio by ABR as of December 31, 2023.
California - Inland Empire, CA 2 5,684 23.09 3.3 % 246 2.5 % Cape Coral-Fort Myers, FL 1 636 10.10 0.4 % 63 0.6 % Total 62 $ 174,780 $19.08 100 % 9,790 100 % 15 The following table presents information regarding the top 10 tenants of our retail portfolio by ABR and GLA on a pro rata basis as of December 31, 2022.
California - Inland Empire, CA 2 5,116 24.21 2.8 % 246 2.4 % Cape Coral-Fort Myers, FL 1 574 9.68 0.3 % 63 0.6 % Total 62 $ 186,402 $19.48 100 % 10,324 100 % 15 The following table presents information regarding the top 10 tenants of our retail portfolio by ABR as of December 31, 2023.
Publix 13 / Publix Liquor 3 16 6,885 3.9 % 635 6.5 % TJX Companies Marshalls 7 / HomeGoods 4 / TJ Maxx 2 13 4,399 2.5 % 367 3.8 % Albertsons Safeway 1 / Tom Thumb 2 / Market Street 2 / Albertsons 1 6 4,303 2.5 % 365 3.7 % H.E.B. 5 3,669 2.1 % 362 3.7 % Amazon, Inc.
Publix 11 / Publix Liquor 3 14 6,204 3.3 % 541 5.2 % TJX Companies Marshalls 7 / HomeGoods 5 / TJ Maxx 2 14 4,872 2.6 % 397 3.8 % Albertson's Safeway 1 / Tom Thumb 2 / Market Street 2 / Albertsons 1 6 4,303 2.3 % 365 3.5 % H.E.B. H.E.B. 4 / H.E.B.
Market No. of Properties ABR ABR PSF ABR as % of Total GLA GLA as % of Total Austin-Round Rock, TX 8 $ 32,217 $16.33 18.3 % 2,056 21.0 % Atlanta Metro Area, GA 10 19,342 19.10 11.1 % 1,058 10.8 % Miami-Fort Lauderdale-Miami Beach, FL 3 18,480 23.00 10.6 % 859 8.8 % Dallas-Fort Worth-Arlington, TX 7 16,723 19.86 9.6 % 938 9.6 % Houston-Sugar Land-Baytown, TX 6 12,987 16.28 7.4 % 904 9.2 % Raleigh-Cary-Durham, NC 5 12,630 19.34 7.2 % 688 7.0 % So.
Market No. of Properties ABR ABR PSF ABR as % of Total GLA GLA as % of Total Austin-Round Rock, TX 8 $ 32,625 $16.74 17.5 % 2,056 19.9 % Houston-Sugar Land-Baytown, TX 6 20,908 16.39 11.2 % 1,409 13.6 % Miami-Fort Lauderdale-Miami Beach, FL 3 18,895 23.06 10.1 % 859 8.3 % Dallas-Fort Worth-Arlington, TX 7 18,325 20.02 9.8 % 939 9.1 % Atlanta Metro Area, GA 9 18,023 20.73 9.7 % 995 9.6 % Raleigh-Cary-Durham, NC 5 13,318 20.09 7.2 % 688 6.7 % So.
Item 2. Properties The following table summarizes our retail portfolio, on a wholly-owned, IAGM, and pro-rata combined basis, as of December 31, 2022 and 2021.
For the year ended December 31, 2022, we have included results from the properties previously owned by our 55% ownership interest in IAGM at share when combined with our wholly-owned properties, defined as "Pro Rata Combined Retail Portfolio." The following table summarizes our retail portfolio, on a wholly-owned, IAGM, and pro-rata combined basis, as of December 31, 2023 and 2022.
Whole Foods Market 5 5 2,701 1.5 % 194 2.0 % BC Partners Petsmart 7 7 2,375 1.4 % 151 1.5 % Best Buy 4 2,236 1.3 % 138 1.4 % Ulta Beauty Inc. 8 1,960 1.1 % 83 0.8 % Bed Bath & Beyond Inc.
Staff Office 1 5 4,220 2.3 % 447 4.3 % Amazon, Inc. Whole Foods Market 5 5 2,701 1.4 % 194 1.9 % BC Partners Petsmart 7 7 2,436 1.3 % 151 1.5 % Best Buy 4 2,270 1.2 % 138 1.3 % Apollo Global Management, Inc.
(b) Other lease expirations include the GLA, ABR and ABR PSF of month-to-month leases. In preparing the above table, we have not assumed that unexercised contractual lease renewal or extension options contained in our leases will, in fact, be exercised. Our retail business is neither highly dependent on specific retailers nor subject to lease roll-over concentration.
(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 our risk of significant revenue variances over time. Certain of our properties are encumbered by mortgages, totaling $168.5 million as of December 31, 2023.
We believe this minimizes risk to our retail portfolio from significant revenue variances over time. Certain of our properties are encumbered by mortgages, totaling $109.8 million as of December 31, 2022. Additional detail about our retail properties can be found on Schedule III – Real Estate and Accumulated Depreciation.
Additional detail about our retail properties can be found on Schedule III – Real Estate and Accumulated Depreciation.
Petersburg, FL 3 8,809 12.85 5.0 % 753 7.7 % Orlando-Kissimmee, FL 4 8,690 23.66 5.0 % 378 3.9 % Washington D.C/Richmond Metro Area 3 8,276 24.52 4.7 % 358 3.7 % Charlotte-Gastonia-Concord, NC 3 8,136 19.65 4.7 % 424 4.3 % San Antonio, TX 2 5,938 25.26 3.4 % 261 2.7 % So.
Petersburg, FL 3 8,614 13.26 4.6 % 753 7.3 % Washington D.C/Richmond Metro Area 3 8,494 26.78 4.6 % 358 3.5 % San Antonio, TX 2 5,993 25.62 3.2 % 261 2.5 % So. California - San Diego, CA 2 5,752 26.04 3.1 % 225 2.2 % So.
California - Los Angeles, CA 3 10,547 20.57 6.0 % 579 5.9 % Tampa-St.
California - Los Angeles, CA 3 11,247 20.94 6.0 % 579 5.6 % Charlotte-Gastonia-Concord, NC 4 9,492 20.00 5.1 % 515 5.0 % Orlando-Kissimmee, FL 4 9,026 24.24 4.8 % 378 3.7 % Tampa-St.
Removed
California - San Diego, CA 2 5,685 26.06 3.3 % 225 2.3 % So.
Added
Item 2. Properties As of December 31, 2023 and 2022, InvenTrust's wholly-owned and managed retail properties include grocery-anchored community and neighborhood centers and power centers, including those classified as necessity-based.
Removed
Bed Bath & Beyond 4 / Buy Buy Baby 1 5 1,888 1.1 % 150 1.5 % 83 38,693 22.1 % 3,183 32.4 % The following table presents the lease expirations of our economic occupied Pro Rata Combined Retail Portfolio as of December 31, 2022.
Added
Michael's 7 7 2,052 1.1 % 161 1.6 % Ulta Beauty Inc. 8 2,028 1.1 % 83 0.8 % 85 $ 40,762 21.8 % 3,341 32.3 % The following table presents the lease expirations of our retail portfolio as of December 31, 2023.
Added
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.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

9 edited+3 added−5 removed4 unchanged
Biggest changeRecord Date Distributions Payable Date Total Distribution per Share Ordinary Dividend Per Share Return of Capital Per Share Qualified Dividend Per Share Sec. 199A Dividend Per Share Sec. 897 Ordinary Dividend Per Share 12/30/2020 1/15/2021 $ 0.018975 $ 0.013537 $ 0.005438 $ — $ 0.013537 $ 0.000336 3/31/2021 4/15/2021 0.019550 0.013948 0.005602 — 0.013948 0.000347 6/30/2021 7/15/2021 0.019550 0.013948 0.005602 — 0.013948 0.000347 9/30/2021 10/7/2021 0.195500 0.139477 0.056023 — 0.139477 0.003465 $ 0.253575 $ 0.180910 $ 0.072665 $ — $ 0.180910 $ 0.004495 18 Stock Performance Graph The following performance graph and related information shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing, or otherwise subject to the liabilities under the Securities Act or Exchange Act, except to the extent that we specifically incorporate it by reference into such filing.
Biggest changeThe remaining 100% is a Three Year Amount under Reg. 1.1061-6(c). 17 Stock Performance Graph The following performance graph and related information shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing, or otherwise subject to the liabilities under the Securities Act or Exchange Act, except to the extent that we specifically incorporate it by reference into such filing.
The following graph depicts the total cumulative stockholder return of the Company’s common stock from October 12, 2021, the first day of trading of our common stock on the NYSE, through December 31, 2022, relative to the performance of the FTSE National Association of Real Estate Investment Trusts Equity REITs Index (the "FTSE NAREIT Equity Index"), the FTSE National Association of Real Estate Investment Trusts Equity Shopping Centers Index (the "FTSE NAREIT Shopping Centers Index"), and the Standard and Poor’s 500 Stock Index (S&P 500 Index).
The following graph depicts the total cumulative stockholder return of the Company’s common stock from October 12, 2021, the first day of trading of our common stock on the NYSE, through December 31, 2023, relative to the performance of the FTSE National Association of Real Estate Investment Trusts Equity REITs Index (the "FTSE NAREIT Equity Index"), the FTSE National Association of Real Estate Investment Trusts Equity Shopping Centers Index (the "FTSE NAREIT Shopping Centers Index"), and the Standard and Poor’s 500 Stock Index (S&P 500 Index).
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our common stock trades on the NYSE under the ticker symbol "IVT". As of February 1, 2023, there were 24,205 holders of record of shares of our outstanding common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our common stock trades on the NYSE under the ticker symbol "IVT". As of February 1, 2024, there were 21,964 holders of record of shares of our outstanding common stock.
We currently have capacity and intend to continue to pay a quarterly distribution, subject to Board approval. During the year ended December 31, 2022, we paid cash distributions of $55.3 million.
We currently have capacity and intend to continue to pay a quarterly distribution, subject to Board approval. During the year ended December 31, 2023 and 2022, we declared and paid cash distributions of $57.5 million and $55.3 million respectively.
Our quarterly distributions are paid one quarter in arrears. Any future determination to pay distributions will be at the discretion of our Board and will depend on our financial condition, capital requirements, restrictions contained in current or future financing instruments, and such other factors as our Board deems relevant.
Distributions We have been paying cash distributions since October 2005. Our quarterly distributions are paid one quarter in arrears. Any future determination to pay distributions will be at the discretion of our Board and will depend on our financial condition, capital requirements, restrictions contained in current or future financing instruments, and such other factors as our Board deems relevant.
The following is a summary of all share repurchases during the fourth quarter of 2022: Period Total No. of Shares Purchased (a) Average Price Paid per Share Total No. of Shares Purchased as Part of Publicly Announced Plans or Programs Approx.
The following table summarizes all share repurchases during the fourth quarter of 2023: Period Total No. of Shares Purchased (a) Average Price Paid per Share Total No. of Shares Purchased as Part of Publicly Announced Plans or Programs Approx.
As of December 31, 2022, no common stock has been repurchased under the SRP. During the year ended December 31, 2022, certain of the Company's employees surrendered shares of common stock to satisfy tax withholding obligations associated with the vesting of shares of common stock issued under the InvenTrust Properties Corp. 2015 Incentive Award Plan ("Incentive Award Plan").
Stock-Based Compensation Plans During the year ended December 31, 2023, certain of the Company's employees surrendered shares of common stock to satisfy tax withholding obligations associated with the vesting of shares of common stock issued under the InvenTrust Properties Corp. 2015 Incentive Award Plan ("Incentive Award Plan") and the purchase of shares of common stock at a discount under the Employee Stock Purchase Plan (the "ESPP").
Ticker / Index 10/12/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/30/2022 IVT $100.00 $116.32 $132.22 $111.66 $93.22 $104.34 FSTE NAREIT Equity Index 100.00 112.75 108.36 89.98 81.03 85.28 FSTE NAREIT Shopping Centers Index 100.00 107.87 106.96 87.60 80.18 94.34 S&P 500 Index 100.00 109.88 104.83 87.95 83.65 89.98 Recent Sales of Unregistered Securities None. Item 6. Reserved 19
Ticker / Index 10/12/2021 12/31/2021 12/31/2022 12/31/2023 IVT $100.00 $116.32 $104.34 $115.87 FTSE NAREIT Equity Index 100.00 112.75 85.28 96.99 FTSE NAREIT Shopping Centers Index 100.00 107.87 94.34 105.70 S&P 500 Index 100.00 109.88 89.98 113.63 Recent Sales of Unregistered Securities None. Item 6. Reserved 18
Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs October 1 - October 31, 2022 — $ — — $ 150,000 November 1 - November 30, 2022 — $ — — $ 150,000 December 1 - December 31, 2022 30,053 $ 23.18 — $ 150,000 (a) Consists of shares of common stock surrendered to the Company to satisfy tax withholding obligations associated with the vesting of restricted stock units. 17 Distributions We have been paying cash distributions since October 2005.
Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs October 1 - October 31, 2023 — $ — — $ 150,000 November 1 - November 30, 2023 — $ — — $ 150,000 December 1 - December 31, 2023 39,901 $ 25.73 — $ 150,000 (a) Consists of shares of common stock surrendered to the Company to satisfy tax withholding obligations.
Removed
For income tax purposes only, approximately 93.2% of the distributions paid in 2022 will be treated as ordinary dividends and approximately 6.8% will be treated as other forms of distributions.
Added
As of December 31, 2023, no common stock has been repurchased under the SRP.
Removed
The December 2022 dividend declared, with a record date of December 29, 2022 and payment date of January 13, 2023, will be reported in 2023, and is not reflected in the 2022 tax allocation. The following table denotes the allocation of our distributions paid in 2022 for income tax purposes only.
Added
For the distribution of $0.2155 declared on December 28, 2023 and paid on January 15, 2024, $0.1030 of the distribution is reported for the tax year 2023 and included in the tax characterization percentages in the table below.
Removed
Record Date Distributions Payable Date Total Distribution per Share Ordinary Dividend Per Share Return of Capital Per Share Qualified Dividend Per Share Sec. 199A Dividend Per Share Sec. 897 Ordinary Dividend Per Share 12/30/2021 1/14/2022 $ 0.205200 $ 0.191321 $ 0.013879 $ — $ 0.191321 $ 0.006489 3/31/2022 4/15/2022 0.205200 0.191321 0.013879 — 0.191321 0.006489 6/30/2022 7/15/2022 0.205200 0.191321 0.013879 — 0.191321 0.006489 9/30/2022 10/14/2022 0.205200 0.191321 0.013879 — 0.191321 0.006489 $ 0.820800 $ 0.765284 $ 0.055516 $ — $ 0.765284 $ 0.025956 During the year ended December 31, 2021, we paid cash distributions of $55.6 million.
Added
The tax characterization of our distributions declared for the years ended December 31, 2023 and 2022 was as follows: Common Stock: 2023 2022 Ordinary distribution 78.50% 93.20% Other forms of distributions —% 6.80% Capital gain distributions (a) 21.50% —% Total distributions per share of common stock 100.00% 100.00% (a) Of the Total Capital Gain Distribution, 0% is excluded under Reg. 1.1061-4(b)(7).
Removed
For income tax purposes only, approximately 71.34% of the distributions paid in 2021 will be treated as ordinary dividends and approximately 28.66% will be treated as other forms of distributions.
Removed
The December 2021 dividend declared, with a record date of December 30, 2021 and payment date of January 14, 2022, will be reported in 2022, and is not reflected in the 2021 tax allocation. The following table denotes the allocation of our distributions paid in 2021 for income tax purposes only.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

61 edited+16 added−31 removed38 unchanged
Biggest changeThe following table presents the reconciliation of net income or loss, the most directly comparable GAAP measure, to NOI, Same Property NOI, and Pro Rata Same Property NOI for the years ended December 31, 2022 and 2021: Year ended December 31, 2022 2021 Change, net Net income (loss) $ 52,233 $ (5,360) $ 57,593 Adjustments to reconcile to non-GAAP metrics: Other income and expense, net (2,030) (606) (1,424) Equity in earnings of unconsolidated entities (3,663) (6,398) 2,735 Interest expense, net 26,777 16,261 10,516 Loss on extinguishment of debt 181 400 (219) Gain on sale of investment properties, net (38,249) (1,522) (36,727) Depreciation and amortization 94,952 87,143 7,809 General and administrative 33,342 38,192 (4,850) Direct listing costs — 19,769 (19,769) Other fee income (2,566) (3,542) 976 Adjustments to NOI (a) (9,743) (7,528) (2,215) NOI 151,234 136,809 14,425 NOI from other investment properties (18,042) (9,368) (8,674) Same Property NOI 133,192 127,441 5,751 IAGM Same Property NOI at share 7,885 7,380 505 Pro Rata Same Property NOI $ 141,077 $ 134,821 $ 6,256 (a) Adjustments to NOI include termination fee income and expense and GAAP Rent Adjustments. 27 Comparison of the components of Same Property NOI for the years ended December 31, 2022 and 2021 Year ended December 31, Change 2022 2021 Variance Lease income, net $ 194,849 $ 185,502 $ 9,347 5.0% Other property income 1,123 1,087 36 3.3% 195,972 186,589 9,383 5.0% Property operating expenses 35,085 30,681 4,404 14.4% Real estate taxes 27,695 28,467 (772) (2.7)% 62,780 59,148 3,632 6.1% Same Property NOI $ 133,192 $ 127,441 $ 5,751 4.5% Same Property NOI increased by $5.8 million, or 4.5%, when comparing the year ended December 31, 2022 to the same period in 2021, and was primarily a result of: • $6.7 million of increased minimum rent attributable to increased occupancy levels and rental rates and $1.8 million of rent abatements in 2021 related to the COVID-19 pandemic, • $1.0 million of increased percentage rent attributable to grocers experiencing heightened sales volumes, • $1.1 million of decreased real estate tax expense, net of associated recoveries, primarily attributable to tax refunds, and was offset by: • $2.2 million of net changes in credit losses and related reversals primarily attributable to lump sum rent collections from our cash basis tenants in 2021 pertaining to prior period rent charges, • $1.4 million of increased operating expense, net of associated recoveries, primarily attributable to increased repairs, maintenance, and landscaping costs, and • $1.2 million of increased non-recoverable operating expenses, primarily attributable to tenant lease negotiations. 28 Funds From Operations The National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has promulgated a widely accepted non-GAAP financial measure of operating performance known as Funds From Operations ("NAREIT FFO").
Biggest changeThe following table presents the reconciliation of net income, the most directly comparable GAAP measure, to NOI and Same Property NOI for the years ended December 31, 2023 and 2022: Year ended December 31 2023 2022 Change, net Net income $ 5,269 $ 52,233 $ (46,964) Adjustments to reconcile to non-GAAP metrics: Other income and expense, net (5,480) (2,030) (3,450) Equity in losses (earnings) of unconsolidated entities 557 (3,663) 4,220 Interest expense, net 38,138 26,777 11,361 Loss on extinguishment of debt 15 181 (166) Gain on sale of investment properties (2,691) (38,249) 35,558 Depreciation and amortization 113,430 94,952 18,478 General and administrative 31,797 33,342 (1,545) Other fee income (80) (2,566) 2,486 Adjustments to NOI (a) (7,528) (9,743) 2,215 NOI 173,427 151,234 22,193 NOI from other investment properties (31,303) (15,691) (15,612) Same Property NOI $ 142,124 $ 135,543 $ 6,581 (a) Adjustments to NOI include termination fee income and expense and GAAP Rent Adjustments. 25 Comparison of the components of Same Property NOI for the years ended December 31, 2023 and 2022 Year ended December 31 Change 2023 2022 Variance Lease income, net $ 203,231 $ 198,963 $ 4,268 2.1% Other property income 1,212 1,127 85 7.5% 204,443 200,090 4,353 2.2% Property operating expenses 33,841 35,695 (1,854) (5.2)% Real estate taxes 28,478 28,852 (374) (1.3)% 62,319 64,547 (2,228) (3.5)% Same Property NOI $ 142,124 $ 135,543 $ 6,581 4.9% Same Property NOI increased by $6.6 million, or 4.9%, when comparing the year ended December 31, 2023 to the same period in 2022, and was primarily a result of: • $5.3 million of increased minimum rent attributable to increased ABR PSF and favorable lease spreads, • $1.7 million of increased recoveries in excess of recoverable operating expenses, primarily attributable to leases with fixed recovery terms, and • $1.0 million of decreased non-recoverable pre-leasing costs, partially offset by: • $1.4 million of net changes in credit losses and related reversals primarily attributable to lump sum rent collections from our cash basis tenants in 2022 pertaining to prior period rent charges.
Such purchases or exchanges, if any, will depend on our liquidity requirements, contractual restrictions, and other factors. 33 In the first quarter of 2022, we entered into an ATM Program pursuant to which we may sell shares of our common stock up to an aggregate purchase price of $250.0 million.
Such purchases or exchanges, if any, will depend on our liquidity requirements, contractual restrictions, and other factors. In the first quarter of 2022, we entered into an ATM Program pursuant to which we may sell shares of our common stock up to an aggregate purchase price of $250.0 million.
(b) Indirect development and re-development costs relate to capitalized interest, real estate taxes, insurance, and payroll attributed to improvements at our retail properties. (c) Direct leasing costs relate to improvements to a tenant space that are either paid directly by us or reimbursed to the tenants.
(b) Indirect development and re-development costs relate to capitalized interest, real estate taxes, insurance, and payroll attributed to improvements at our retail properties. (c) Direct costs relate to improvements to a tenant space that are either paid directly by us or reimbursed to the tenants.
Our calculation of Core FFO Applicable to Common Shares and Dilutive Securities does not consider any capital expenditures. Other REITs may use alternative methodologies for calculating similarly titled measures, which may not be comparable to our definition and calculation of NAREIT FFO Applicable to Common Shares and Dilutive Securities or Core FFO Applicable to Common Shares and Dilutive Securities.
Our calculation of Core FFO Applicable to Common Shares and Dilutive Securities does not consider any capital expenditures. 26 Other REITs may use alternative methodologies for calculating similarly titled measures, which may not be comparable to our definition and calculation of NAREIT FFO Applicable to Common Shares and Dilutive Securities or Core FFO Applicable to Common Shares and Dilutive Securities.
Principal Balance Fixed Interest Rate Maturity Date $150.0 million Series A $ 150,000 5.07% August 11, 2029 $100.0 million Series B 100,000 5.20% August 11, 2032 $ 250,000 36 Contractual Obligations We have obligations related to our mortgage loans, senior notes, term loans, and revolving credit facility as described in "Note 8. Debt" in the consolidated financial statements.
Principal Balance Fixed Interest Rate Maturity Date $150.0 million Series A $ 150,000 5.07% August 11, 2029 $100.0 million Series B 100,000 5.20% August 11, 2032 $ 250,000 32 Contractual Obligations We have obligations related to our mortgage loans, senior notes, term loans, and revolving credit facility as described in "Note 8. Debt" in the consolidated financial statements.
Our primary sources and uses of capital are as follows: Sources Uses • Operating cash flows from our real estate investments; • Distributions from our joint venture investment; • Proceeds from sales of properties; • Proceeds from mortgage loan borrowings on properties; • Proceeds from corporate borrowings and debt financings; • Proceeds from any ATM Program activities; and • Proceeds from our Series A and Series B Notes offering. • To invest in properties or fund acquisitions; • To fund development, re-development, maintenance and capital expenditures or leasing incentives; • To make distributions to our stockholders; • To service or pay down our debt; • To pay our operating expenses; • To repurchase shares of our common stock; and • To fund other general corporate uses.
Our primary sources and uses of capital are as follows: Sources Uses • Operating cash flows from our real estate investments; • Proceeds from sales of properties; • Proceeds from mortgage loan borrowings on properties; • Proceeds from corporate borrowings and debt financings; • Proceeds from any ATM Program activities; and • Proceeds from our Series A and Series B Notes offering. • To invest in properties or fund acquisitions; • To fund development, re-development, maintenance and capital expenditures or leasing incentives; • To make distributions to our stockholders; • To service or pay down our debt; • To pay our operating expenses; • To repurchase shares of our common stock; and • To fund other general corporate uses.
Discussion of 2020 items and year-to-year comparisons between 2021 and 2020 that are not included in this Annual Report can be found in " Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations " of our Annual Report on Form 10-K for the year ended December 31, 2021.
Discussion of 2021 items and year-to-year comparisons between 2022 and 2021 that are not included in this Annual Report can be found in " Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations " of our Annual Report on Form 10-K for the year ended December 31, 2022.
Executive Summary InvenTrust 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.
Executive Summary 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.
Typically, the number of specialty tenants is limited and most are national or regional in scope. The following tables summarize our retail portfolio, by center type, as of December 31, 2022 and 2021.
Typically, the number of specialty tenants is limited and most are national or regional in scope. The following tables summarize our retail portfolio, by center type, as of December 31, 2023 and 2022.
These costs are classified as cash used in capital expenditures and tenant improvements and investment in development and re-development projects on the consolidated statements of cash flows during the year ended December 31, 2022.
These costs are classified as cash used in capital expenditures and tenant improvements and investment in development and re-development projects on the consolidated statements of cash flows during the year ended December 31, 2023.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis relates to the operations of the Company for the years ended December 31, 2022 and 2021 and its financial position as of December 31, 2022 and 2021.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis relates to the operations of the Company for the years ended December 31, 2023 and 2022 and its financial position as of December 31, 2023 and 2022.
Comparison of Same Property results for the years ended December 31, 2022 and 2021 A total of 51 wholly-owned retail properties met our Same Property criteria for the years ended December 31, 2022 and 2021.
Comparison of Same Property results for the years ended December 31, 2023 and 2022 A total of 51 wholly-owned retail properties met our Same Property criteria for the years ended December 31, 2023 and 2022.
Cash used in investing activities of $144.5 million for the year ended December 31, 2022, was primarily the result of: • $235.0 million for acquisitions of investment properties, • $33.2 million for capital investments and leasing costs, • $1.2 million for other investing cash outflows, and was partially offset by: • $77.5 million from net proceeds received from the sale of investment properties, and • $47.4 million from distributions from unconsolidated entities.
Cash used in investing activities of $144.5 million for the year ended December 31, 2022, was primarily the result of: • $235.0 million for acquisitions of investment properties, • $33.2 million for capital investments and leasing costs, and • $1.2 million for other investing cash outflows, which were partially offset by: • $77.5 million from the sale of investment properties, and • $47.4 million from distributions from unconsolidated entities.
The following table presents the changes in our income for the years ended December 31, 2022 and 2021.
The following table presents the changes in our income for the years ended December 31, 2023 and 2022.
If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and amortized over the useful life of the acquired assets. Generally, our acquisitions of real estate qualify as asset acquisitions.
If an acquisition qualifies as a business combination, the related transaction costs are expensed. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and amortized over the useful life of the acquired assets. Generally, our acquisitions of real estate qualify as asset acquisitions.
(b) Non-comparable leases are not included in totals. 24 Results of Operations Comparison of results for the years ended December 31, 2022 and 2021 We generate substantially all of our earnings from property operations. Since January 1, 2021, we have acquired seven retail properties and disposed of four retail properties.
(b) Non-comparable leases are not included in totals. 22 Results of Operations Comparison of results for the years ended December 31, 2023 and 2022 We generate substantially all of our earnings from property operations. Since January 1, 2022, we have acquired eleven retail properties and disposed of four retail properties.
In November 2022, our Board approved an increase to our annual distribution rate effective for the quarterly distribution paid in April 2023.
In November 2023, our Board approved an increase to our annual distribution rate effective for the quarterly distribution to be paid in April 2024.
Wholly-Owned Retail Properties IAGM Retail Properties Pro Rata Combined Retail Portfolio 2022 2021 2022 2021 2022 2021 No. of properties 58 55 4 7 62 62 GLA (square feet) 9,171 8,560 1,125 1,768 9,790 9,532 Economic occupancy 94.2% 93.4% 90.2% 87.6% 93.9% 92.8% Leased occupancy 96.2% 94.6% 93.6% 88.2% 96.1% 93.9% ABR PSF $19.26 $18.76 $16.22 $16.98 $19.08 $18.59 Retail Portfolio Summary by Center Type Our retail properties consist of community and neighborhood centers and power centers. • Community and neighborhood centers are generally open-air and designed for tenants that offer a wide array of merchandise and services, including groceries, soft goods and convenience-oriented offerings.
Wholly-Owned Retail Properties IAGM Retail Properties Pro Rata Combined Retail Portfolio 2023 2022 2023 2022 2023 2022 No. of properties 62 58 — 4 62 62 GLA (square feet) 10,324 9,171 — 1,125 10,324 9,790 Economic occupancy 93.3% 94.2% —% 90.2% 93.3% 93.9% Leased occupancy 96.2% 96.2% —% 93.6% 96.2% 96.1% ABR PSF $19.48 $19.26 $— $16.22 $19.48 $19.08 Summary by Center Type Our retail properties consist of community and neighborhood centers and power centers. • Community and neighborhood centers are generally open-air and designed for tenants that offer a wide array of merchandise and services, including groceries, soft goods and convenience-oriented offerings.
Principal Balance Interest Rate Maturity Date $200.0 million 5 year - swapped to fixed rate $ 100,000 2.71% (a) September 22, 2026 $200.0 million 5 year - swapped to fixed rate 100,000 2.72% (a) September 22, 2026 $200.0 million 5.5 year - swapped to fixed rate 50,000 2.77% (a) March 22, 2027 $200.0 million 5.5 year - swapped to fixed rate 50,000 2.76% (a) March 22, 2027 $200.0 million 5.5 year - variable rate 100,000 1M SOFR + 1.30% (b) March 22, 2027 Total unsecured term loans $ 400,000 (a) Interest rates reflect the fixed rates achieved through the Company's interest rate swaps.
Principal Balance Interest Rate Maturity Date $200.0 million 5 year - swapped to fixed rate $ 100,000 2.81% (a) September 22, 2026 $200.0 million 5 year - swapped to fixed rate 100,000 2.81% (a) September 22, 2026 $200.0 million 5.5 year - swapped to fixed rate 50,000 2.77% (a) March 22, 2027 $200.0 million 5.5 year - swapped to fixed rate 50,000 2.76% (a) March 22, 2027 $200.0 million 5.5 year - swapped to fixed rate 100,000 4.99% (a) March 22, 2027 Total unsecured term loans $ 400,000 (a) Interest rates reflect the fixed rates achieved through the Company's interest rate swaps.
We periodically assess the credit risk associated with these financial institutions. We believe insignificant credit risk exists related to amounts on deposit in excess of FDIC insurance coverage. Acquisitions and Dispositions of Real Estate Investments In 2022, we acquired six retail properties and an outparcel adjacent to an existing retail property for an aggregate gross acquisition price of $319.1 million.
We periodically assess the credit risk associated with these financial institutions. We believe insignificant credit risk exists related to amounts on deposit in excess of FDIC insurance coverage. Acquisitions and Dispositions of Real Estate Investments In 2023, we acquired five retail properties for an aggregate gross acquisition price of $244.0 million.
The difference between the contractual rental rates and our estimate of market rental rates is measured over a period equal to the remaining term of the leases (using a discount rate which reflects the risks associated with the leases acquired, including geographical location, size of leased area, tenant profile and credit risk); • Estimate the fair value of the tenant improvements, legal costs and leasing commissions incurred to obtain the leases and calculate the associated useful life for each; • Estimate the fair value of assumed debt, if any; and • Estimate the intangible value of the in-place leases based on lease execution costs of similar leases as well as lost rent payments during an assumed lease-up period and their associated useful lives on a tenant-by-tenant basis.
The difference between the contractual rental rates and our estimate of market rental rates is measured over a period equal to the remaining term of the leases (using a discount rate which reflects the risks associated with the leases acquired, including geographical location, size of leased area, tenant profile and credit risk); • Estimate the fair value of the tenant improvements, legal costs and leasing commissions incurred to obtain the leases and calculate the associated useful life for each; • Estimate the fair value of assumed debt, if any; and • Estimate the intangible value of the in-place leases based on lease execution costs of similar leases as well as lost rent payments during an assumed lease-up period and their associated useful lives on a tenant-by-tenant basis. 28 Impairment of Long Lived Assets We assess the carrying values of our long-lived tangible and intangible assets whenever events or changes in circumstances indicate that they may not be fully recoverable.
Community and neighborhood centers Wholly-Owned Retail Properties IAGM Retail Properties Pro Rata Combined Retail Portfolio 2022 2021 2022 2021 2022 2021 No. of properties 46 43 4 5 50 48 GLA (square feet) 5,647 4,984 1,125 1,387 6,266 5,747 Economic occupancy 95.0% 94.1% 90.2% 86.1% 94.5% 93.1% Leased occupancy 96.9% 95.0% 93.6% 86.8% 96.6% 93.9% ABR PSF $20.36 $19.93 $16.22 $17.02 $19.98 $19.57 Power centers Wholly-Owned Retail Properties IAGM Retail Properties Pro Rata Combined Retail Portfolio 2022 2021 2022 2021 2022 2021 No. of properties 12 12 — 2 12 14 GLA (square feet) 3,524 3,576 — 381 3,524 3,785 Economic occupancy 92.9% 92.3% —% 93.1% 92.9% 92.3% Leased occupancy 95.1% 93.9% —% 93.1% 95.1% 93.9% ABR PSF $17.45 $17.10 $— $16.85 $17.45 $17.08 23 Same Property Retail Portfolio Summary Properties classified as same property were owned for the entirety of both periods presented ("Same Properties").
Community and neighborhood centers Wholly-Owned Retail Properties IAGM Retail Properties Pro Rata Combined Retail Portfolio 2023 2022 2023 2022 2023 2022 No. of properties 50 46 — 4 50 50 GLA (square feet) 6,800 5,647 — 1,125 6,800 6,266 Economic occupancy 94.8% 95.0% —% 90.2% 94.8% 94.5% Leased occupancy 97.1% 96.9% —% 93.6% 97.1% 96.6% ABR PSF $20.22 $20.36 $— $16.22 $20.22 $19.98 Power centers Wholly-Owned Retail Properties IAGM Retail Properties Pro Rata Combined Retail Portfolio 2023 2022 2023 2022 2023 2022 No. of properties 12 12 — — 12 12 GLA (square feet) 3,524 3,524 — — 3,524 3,524 Economic occupancy 90.2% 92.9% —% —% 90.2% 92.9% Leased occupancy 94.2% 95.1% —% —% 94.2% 95.1% ABR PSF $18.00 $17.45 $— $— $18.00 $17.45 21 Same Property Summary Properties classified as same property were owned for the entirety of both periods presented ("Same Properties").
We bifurcate NOI into Same Property NOI and NOI from other investment properties based on whether the underlying retail properties meet our same property criteria.
We bifurcate NOI into Same Property NOI and NOI from other investment properties based on whether the retail properties meet our Same Property criteria. NOI from other investment properties includes adjustments for the Company's captive insurance company.
Cash used in investing activities of $64.7 million for the year ended December 31, 2021, was primarily the result of: • $53.1 million for acquisitions of investment properties, • $25.0 million for capital investments and leasing costs, • $1.4 million for other investing cash outflows, and was partially offset by: • $14.8 million from net proceeds received from the sale of investment properties. 34 Cash provided by financing activities of $111.6 million for the year ended December 31, 2022, was primarily the result of: • $250.0 million from our issuance of senior notes, and • $112.0 million drawn from our line of credit, which were partially offset by: • $143.0 million repaid on our line of credit, • $50.5 million for pay-offs of debt, principal payments of mortgage debt, and payment of loan fees and other deposits, and other financing activities, • $55.3 million to pay distributions, and • $1.6 million for the payment of tax withholdings for share-based compensation.
Cash provided by financing activities of $111.6 million for the year ended December 31, 2022, was primarily the result of: • $250.0 million from our issuance of senior notes, and • $112.0 million drawn from our line of credit, which were partially offset by: • $143.0 million repaid on our line of credit, • $50.5 million for pay-offs of debt, debt prepayment penalties, principal payments of mortgage debt, payment of loan fees and other deposits, and other financing activities, • $55.3 million to pay distributions, and • $1.6 million for the payment of tax withholdings for share-based compensation.
Net Operating Income We evaluate the performance of our retail properties based on NOI, which excludes general and administrative expenses, direct listing costs, depreciation and amortization, provision for asset impairment, other income and expense, net, gains (losses) from sales of properties, gains (losses) on extinguishment of debt, interest expense, net, equity in earnings (losses) from unconsolidated entities, lease termination income and expense, and GAAP rent adjustments such as straight-line rent adjustments, amortization of market lease intangibles, and amortization of lease incentives ("GAAP Rent Adjustments").
Other income and expense, net Other income and expense, net increased $3.5 million primarily as a result of increased interest income earned on cash and cash equivalents and non-recurring income from non-operating activities. 24 Net Operating Income We evaluate the performance of our retail properties based on NOI, which excludes general and administrative expenses, depreciation and amortization, other income and expense, net, gains (losses) from sales of properties, gains (losses) on extinguishment of debt, interest expense, net, equity in earnings (losses) from unconsolidated entities, lease termination income and expense, and GAAP rent adjustments such as amortization of market lease intangibles, amortization of lease incentives, and straight-line rent adjustments ("GAAP Rent Adjustments").
(b) Adjusting items, net, are primarily loss on extinguishment of debt, amortization of debt discounts and financing costs, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as miscellaneous and settlement income.
(b) Adjusting items, net, are primarily loss on extinguishment of debt, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as basis difference recognition arising from acquiring the four remaining properties of IAGM, and miscellaneous and settlement income.
Tenant improvements are depreciated and origination costs are amortized over the remaining term of the lease or charged against earnings if the lease is terminated prior to its contractual expiration date. 31 With the assistance of a third-party valuation specialist, we perform the following procedures for assets acquired: • Estimate the value of the property "as if vacant" as of the acquisition date; • Allocate the value of the property among land, building, and other building improvements and determine the associated useful life for each; • Calculate the value and associated life of above- and below-market leases on a tenant-by-tenant basis.
With the assistance of a third-party valuation specialist, we perform the following procedures for assets acquired: • Estimate the value of the property "as if vacant" as of the acquisition date; • Allocate the value of the property among land, building, and other building improvements and determine the associated useful life for each; • Calculate the value and associated life of above- and below-market leases on a tenant-by-tenant basis.
Scheduled maturities by year: As of December 31, 2022 2023 $ 13,732 2024 15,700 2025 22,880 2026 — 2027 26,000 Thereafter 31,500 Total mortgages payable $ 109,812 Credit Agreements, Maturities The following table reflects the Company's outstanding borrowings under its unsecured term loans as of December 31, 2022.
Scheduled maturities by year: As of December 31, 2023 2024 $ 88,168 2025 22,880 2026 — 2027 26,000 2028 — Thereafter 31,500 Total mortgages payable $ 168,548 Credit Agreements, Maturities The following table summarizes the outstanding borrowings under our unsecured term loans as of December 31, 2023.
The following table summarizes the GLA, economic occupancy and ABR PSF of Same Properties included in our retail portfolio for the years ended December 31, 2022 and 2021.
The following table summarizes the Same Properties of our retail portfolio for the years ended December 31, 2023 and 2022.
Wholly-Owned Retail Properties IAGM Retail Properties Pro Rata Combined Retail Portfolio 2022 2021 2022 2021 2022 2021 No. of properties 51 51 4 4 55 55 GLA (square feet) 7,859 7,860 1,125 1,125 8,477 8,479 Economic occupancy 94.6% 93.6% 90.2% 86.6% 94.3% 93.1% Leased occupancy 96.2% 94.9% 93.6% 87.2% 96.1% 94.3% ABR PSF $19.44 $18.82 $16.22 $15.64 $19.22 $18.60 Leasing Activity, Pro Rata Combined Retail Portfolio The following tables summarize the leasing activity for leases that were executed during the year ended December 31, 2022, compared with expiring or expired leases for the same or previous tenant for renewals and the same unit for new leases at the 62 properties in our Pro Rata Combined Retail Portfolio.
Year ended December 31 2023 2022 No. of properties 51 51 GLA (square feet) 8,029 8,029 Economic occupancy 93.4% 94.1% Leased occupancy 96.3% 96.3% ABR PSF $20.15 $19.54 Leasing Activity The following tables summarize the activity for leases that were executed during the year ended December 31, 2023, compared with expiring or expired leases for the same or previous tenant for renewals, and the same unit for new leases at the 62 properties in our retail portfolio.
Year ended December 31, 2022 2021 2020 2019 2018 Distributions declared $ 55,337 $ 55,721 $ 54,604 $ 53,473 $ 53,782 Distributions paid $ 55,302 $ 55,561 $ 54,214 $ 53,250 $ 54,194 Distributions reinvested $ — $ — $ 185 $ 50 $ — 35 Borrowings Mortgages Payable, Maturities The following table reflects the scheduled maturities of the Company's mortgages payable as of December 31, 2022, for each of the next five years and thereafter.
Year ended December 31, 2023 2022 2021 2020 2019 Distributions declared $ 58,248 $ 55,337 $ 55,721 $ 54,604 $ 53,473 Distributions paid $ 57,491 $ 55,302 $ 55,561 $ 54,214 $ 53,250 Distributions reinvested $ — $ — $ — $ 185 $ 50 Borrowings Mortgages Payable, Maturities The following table summarizes the scheduled maturities of our mortgages payable as of December 31, 2023.
For the year ended December 31, 2021, unvested restricted shares were antidilutive and therefore excluded from the denominator in the diluted earnings per share calculation in accordance with GAAP. 30 Critical Accounting Estimates General The accompanying consolidated financial statements have been prepared in accordance with GAAP, which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods.
(d) For purposes of calculating non-GAAP per share metrics, the same denominator is used as that which would be used in calculating diluted earnings per share in accordance with GAAP. 27 Critical Accounting Estimates General The accompanying consolidated financial statements have been prepared in accordance with GAAP, which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods.
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.
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. Current Strategy and Outlook InvenTrust focuses on Sun Belt markets with favorable demographics, including above average growth in population, employment, income and education levels.
In 2021, we disposed of one retail property and completed partial condemnations at four retail properties for an aggregate gross disposition price of $15.0 million. Distributions During the year ended December 31, 2022, we declared cash distributions to our stockholders totaling $55.3 million and paid cash distributions of $55.3 million.
In 2022, we disposed of three retail properties for an aggregate gross disposition price of $110.5 million. 31 Distributions During the year ended December 31, 2023, we declared cash distributions to our stockholders totaling $58.2 million and paid cash distributions of $57.5 million.
Other fee income decreased $1.0 million primarily as a result of real estate sales within IAGM. The following table presents the changes in our operating expenses for the years ended December 31, 2022 and 2021.
Other fee income decreased $2.5 million as a result of the Company acquiring six retail properties from IAGM since January 1, 2022. The following table presents the changes in our operating expenses for the years ended December 31, 2023 and 2022.
Cash used in financing activities of $204.2 million for the year ended December 31, 2021, was primarily the result of: • $457.8 million for pay-offs of debt, debt prepayment penalties, principal payments of mortgage debt, payment of loan fees and other deposits, and other financing activities, • $16.7 million for the repurchase of common stock under our share repurchase plan, • $103.3 million for the repurchase of common stock through a tender offer, • $55.6 million to pay distributions, • $1.8 million for the payment of tax withholdings for share-based compensation, which were partially offset by: • $431.0 million from proceeds received under our unsecured credit agreements.
Cash used in financing activities of $87.9 million for the year ended December 31, 2023, was primarily the result of: • $33.8 million for pay-offs of debt, principal payments of mortgage debt, payment of loan fees and other deposits, and other financing activities, • $57.5 million to pay distributions, and • $1.6 million for the payment of tax withholdings for share-based compensation, which were partially offset by: • $5.0 million from net proceeds from the sale of common stock under the ESPP and ATM.
The following table summarizes our retail portfolio, on a wholly-owned, IAGM, and pro rata combined basis, as of December 31, 2022 and 2021.
For the year ended December 31, 2022, we have included results from IAGM properties at share when combined with our wholly-owned properties. The following table summarizes our retail portfolio, on a wholly-owned, IAGM, and pro rata combined basis, as of December 31, 2023 and 2022.
Nor should NAREIT FFO and Core FFO be considered as measures of liquidity, our ability to make cash distributions, or our ability to service our debt. 29 NAREIT FFO Applicable to Common Shares and Dilutive Securities and Core FFO Applicable to Common Shares and Dilutive Securities is calculated as follows: Year ended December 31, 2022 2021 Net income (loss) $ 52,233 $ (5,360) Depreciation and amortization related to investment properties 94,142 86,257 Gain on sale of investment properties, net (38,249) (1,522) Unconsolidated joint venture adjusting items, net (a) 3,850 4,713 NAREIT FFO Applicable to Common Shares and Dilutive Securities 111,976 84,088 Amortization of market-lease intangibles and inducements, net (5,589) (4,318) Straight-line rent adjustments, net (3,815) (2,805) Direct listing costs — 19,769 Adjusting items, net (b) 2,798 2,201 Unconsolidated joint venture adjusting items, net (c) 582 672 Core FFO Applicable to Common Shares and Dilutive Securities $ 105,952 $ 99,607 Weighted average common shares outstanding - basic 67,406,233 71,072,933 Dilutive effect of unvested restricted shares (d) 119,702 — Weighted average common shares outstanding - diluted 67,525,935 71,072,933 Net income (loss) per common share $ 0.77 $ (0.08) Per share adjustments for NAREIT FFO Applicable to Common Shares and Dilutive Securities 0.89 1.26 NAREIT FFO Applicable to Common Shares and Dilutive Securities per share $ 1.66 $ 1.18 Per share adjustments for Core FFO Applicable to Common Shares and Dilutive Securities (0.09) 0.22 Core FFO Applicable to Common Shares and Dilutive Securities per share $ 1.57 $ 1.40 (a) Represents our share of depreciation, amortization, impairment, and gains on sale related to investment properties held in IAGM.
NAREIT FFO Applicable to Common Shares and Dilutive Securities and Core FFO Applicable to Common Shares and Dilutive Securities is calculated as follows: Year ended December 31, 2023 2022 Net income $ 5,269 $ 52,233 Depreciation and amortization related to investment properties 112,578 94,142 Gain on sale of investment properties (2,691) (38,249) Unconsolidated joint venture adjustments (a) 342 3,850 NAREIT FFO Applicable to Common Shares and Dilutive Securities 115,498 111,976 Amortization of market-lease intangibles and inducements, net (3,343) (5,589) Straight-line rent adjustments, net (3,349) (3,815) Amortization of debt discounts and financing costs 4,113 2,816 Adjusting items, net (b) (969) (18) Unconsolidated joint venture adjusting items, net (c) (92) 582 Core FFO Applicable to Common Shares and Dilutive Securities $ 111,858 $ 105,952 Weighted average common shares outstanding - basic 67,531,898 67,406,233 Dilutive effect of unvested restricted shares (d) 281,282 119,702 Weighted average common shares outstanding - diluted 67,813,180 67,525,935 Net income per diluted share $ 0.08 $ 0.77 Per share adjustments for NAREIT FFO 1.62 0.89 NAREIT FFO per diluted share $ 1.70 $ 1.66 Per share adjustments for Core FFO (0.05) (0.09) Core FFO per diluted share $ 1.65 $ 1.57 (a) Represents our share of depreciation, amortization, and gain on sale related to investment properties held in IAGM.
In 2021, we acquired one retail property and an outparcel adjacent to an existing retail property for an aggregate gross acquisition price of $54.7 million. In 2022, we disposed of three retail properties for an aggregate gross disposition price of $110.5 million.
In 2022, we acquired six retail properties and an outparcel adjacent to an existing retail property for an aggregate gross acquisition price of $319.1 million. In 2023, we disposed of one retail property and completed a partial condemnation at one retail property for an aggregate gross disposition price of $13.1 million.
Year ended December 31, 2022 2021 Increase (Decrease) Income Lease income, net $ 232,980 $ 207,350 $ 25,630 Other property income 1,161 1,087 74 Other fee income 2,566 3,542 (976) Total income $ 236,707 $ 211,979 $ 24,728 Lease income, net increased $25.6 million as a result of increases from properties acquired of $18.4 million, decreases from properties disposed of $3.3 million, and the following activity related to our Same Properties: • $6.7 million of increased minimum rent attributable to increased occupancy levels and rental rates and $1.8 million of rent abatements in 2021 related to the COVID-19 pandemic, • $2.1 million of increased recoveries associated with common area maintenance, insurance, and real estate taxes, primarily attributable to tax refunds reflected in 2021 tenant charges, • $1.1 million of increased amortization of market lease intangibles and straight-line rent adjustments, • $1.0 million of increased percentage rent attributable to grocers experiencing heightened sales volumes, and was partially offset by: • $2.2 million of net changes in credit losses and related reversals primarily attributable to lump sum rent collections from our cash basis tenants in 2021 pertaining to prior period rent charges.
Year ended December 31 2023 2022 Increase (Decrease) Income Lease income, net $ 257,146 $ 232,980 $ 24,166 Other property income 1,450 1,161 289 Other fee income 80 2,566 (2,486) Total income $ 258,676 $ 236,707 $ 21,969 Lease income, net increased $24.2 million as a result of increases from properties acquired of $31.5 million, decreases from properties disposed of $9.1 million, and the following activity related to our Same Properties: • $5.3 million of increased minimum rent attributable to increased ABR PSF and favorable lease spreads, and • $0.3 million of increased common area maintenance and real estate tax recoveries, partially offset by: • $2.4 million of decreased amortization of market lease intangibles and straight-line rent adjustments, and • $1.4 million of net changes in credit losses and related reversals primarily attributable to lump sum rent collections from our cash basis tenants in 2022 pertaining to prior period rent charges.
Loss on extinguishment of debt During the year ended December 31, 2022, we recognized an aggregate loss of $0.2 million on the extinguishment of total mortgages payable of $75.6 million on three retail properties. During the year ended December 31, 2021, we recognized a loss of $0.4 million in connection with amending our corporate debt facilities.
Loss on extinguishment of debt During the year ended December 31, 2023, we recognized an insignificant loss on the extinguishment of total mortgages payable of $33.7 million. During the year ended December 31, 2022, we recognized an aggregate loss of $0.2 million on the extinguishment of total mortgages payable of $75.6 million.
Investment in Unconsolidated Entities." Summary of Cash Flows Year ended December 31, Change 2022 2021 Cash provided by operating activities $ 125,795 $ 89,956 $ 35,839 Cash used in investing activities (144,461) (64,701) (79,760) Cash provided by (used in) financing activities 111,574 (204,171) 315,745 Decrease in cash, cash equivalents and restricted cash 92,908 (178,916) 271,824 Cash, cash equivalents and restricted cash at beginning of year 44,854 223,770 (178,916) Cash, cash equivalents and restricted cash at end of year $ 137,762 $ 44,854 $ 92,908 Cash provided by operating activities of $125.8 million and $90.0 million for the years ended December 31, 2022 and 2021, respectively, was generated primarily from income from property operations and operating distributions from IAGM.
Investment in Unconsolidated Entities." Summary of Cash Flows Year ended December 31, Change 2023 2022 Cash provided by operating activities $ 129,621 $ 125,795 $ 3,826 Cash used in investing activities (79,718) (144,461) 64,743 Cash (used in) provided by financing activities (87,902) 111,574 (199,476) Decrease in cash, cash equivalents and restricted cash (37,999) 92,908 (130,907) Cash, cash equivalents and restricted cash at beginning of year 137,762 44,854 92,908 Cash, cash equivalents and restricted cash at end of year $ 99,763 $ 137,762 $ (37,999) Cash provided by operating activities of $129.6 million and $125.8 million for the years ended December 31, 2023 and 2022, respectively, was generated primarily from income from property operations.
No. of Leases Executed for the year ended Dec. 31, 2022 GLA SF (in thousands) New Contractual Rent ($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) 175 828 $20.91 $19.75 5.9% 5.5 $0.17 $— Comparable New Leases (a) 21 142 $18.74 $14.53 29.0% 12.2 $23.69 $7.12 Non-Comparable Renewal and New Leases 72 343 $18.45 N/A N/A 7.2 $26.14 $6.51 Total 268 1,313 $20.59 $18.99 8.4% 6.7 $9.50 $2.47 Anchor tenants (leases ten thousand square feet and over) Comparable Renewal Leases (a) 20 511 $12.35 $11.67 5.8% 5.5 $0.10 $— Comparable New Leases (a) 4 112 $13.87 $10.22 35.7% 13.3 $23.30 $5.31 Non-Comparable Renewal and New Leases 7 192 $9.00 N/A N/A 6.3 $21.36 $2.90 Total 31 815 $12.62 $11.41 10.6% 6.8 $8.29 $1.41 Small shop tenants (leases under ten thousand square feet) Comparable Renewal Leases (a) 155 317 $34.73 $32.78 5.9% 5.4 $0.28 $— Comparable New Leases (a) 17 30 $36.79 $30.50 20.6% 8.3 $25.15 $13.86 Non-Comparable Renewal and New Leases 65 151 $30.42 N/A N/A 8.5 $32.19 $11.07 Total 237 498 $34.91 $32.58 7.2% 6.5 $11.49 $4.21 (a) Comparable leases are leases that meet all of the following criteria: terms greater than or equal to one year, unit was vacant less than one year prior to executed lease, square footage of unit remains unchanged or within 10% of prior unit square footage, and has a rent structure consistent with the previous tenant.
No. of Leases Executed GLA SF (in thousands) New Contractual Rent ($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) 190 827 $22.94 $21.39 7.2% 5.2 $0.49 $0.03 Comparable New Leases (a) 32 147 $24.80 $19.80 25.3% 10.3 $27.82 $11.92 Non-Comparable Renewal and New Leases 77 444 $21.64 N/A N/A 6.7 $14.03 $6.83 Total 299 1,418 $23.23 $21.15 9.8% 6.2 $7.56 $3.39 Anchor tenants (leases ten thousand square feet and over) Comparable Renewal Leases (a) 13 409 $12.47 $11.62 7.3% 5.0 $— $— Comparable New Leases (a) 3 85 $17.50 $12.94 35.2% 10.6 $27.00 $9.97 Non-Comparable Renewal and New Leases 8 248 $13.25 N/A N/A 5.0 $1.21 $2.15 Total 24 742 $13.34 $11.85 12.6% 5.6 $3.49 $1.86 Small shop tenants (leases under ten thousand square feet) Comparable Renewal Leases (a) 177 418 $33.21 $30.97 7.2% 5.3 $0.98 $0.06 Comparable New Leases (a) 29 62 $34.86 $29.10 19.8% 9.9 $28.95 $14.61 Non-Comparable Renewal and New Leases 69 196 $32.31 N/A N/A 9.0 $30.34 $12.78 Total 275 676 $33.43 $30.73 8.8% 6.8 $12.04 $5.08 (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.
Changes in our disposition strategy or changes in the marketplace may alter the expected hold period of a property which may result in an impairment loss and such loss could be material to the Company's financial condition or operating performance. 32 Liquidity and Capital Resources Development, Re-development, Capital Expenditures and Leasing Activities The following table summarizes capital resources used through development and re-development, capital expenditures, and leasing activities at our retail properties owned during the year ended December 31, 2022.
Changes in our disposition strategy or changes in the marketplace may alter the expected hold period of a property which may result in an impairment loss and such loss could be material to the Company's financial condition or operating performance.
Long-Term Liquidity and Capital Resources Our objectives are to maximize revenue generated by our retail platform, to further enhance the value of our retail properties to produce attractive current yield and long-term returns for our stockholders, and to generate sustainable and predictable cash flow from our operations to distribute to our stockholders.
Long-Term Liquidity and Capital Resources Our objectives are to maximize revenue generated by our retail platform, to further enhance the value of our retail properties to produce attractive current yield and long-term returns for our stockholders, and to generate sustainable and predictable cash flow from our operations to distribute to our stockholders. 29 Any future determination to pay distributions will be at the discretion of our Board and will depend on our financial condition, capital requirements, restrictions contained in current or future financing instruments, and such other factors as our Board deems relevant.
Year ended December 31, 2022 2021 Increase (Decrease) Operating expenses Depreciation and amortization $ 94,952 $ 87,143 $ 7,809 Property operating 40,239 32,788 7,451 Real estate taxes 32,925 31,312 1,613 General and administrative 33,342 38,192 (4,850) Direct listing costs — 19,769 (19,769) Total operating expenses $ 201,458 $ 209,204 $ (7,746) Depreciation and amortization increased $7.8 million as a result of: • $13.4 million of increases from properties acquired, and was partially offset by: • $1.4 million of decreases from properties disposed, and • $4.2 million of decreased in-place lease intangible amortization for our Same Properties.
Year ended December 31 2023 2022 Increase (Decrease) Operating expenses Depreciation and amortization $ 113,430 $ 94,952 $ 18,478 Property operating 42,832 40,239 2,593 Real estate taxes 34,809 32,925 1,884 General and administrative 31,797 33,342 (1,545) Total operating expenses $ 222,868 $ 201,458 $ 21,410 Depreciation and amortization increased $18.5 million as a result of: • $23.1 million of increases from properties acquired, partially offset by: • $2.9 million of decreases from properties disposed, and • $1.7 million of decreased in-place lease intangible amortization from our Same Properties.
The following table presents, on a consolidated basis, our obligations to make future payments under debt and lease agreements. It excludes debt payable by our unconsolidated joint venture and debt discounts that are not future cash obligations as of December 31, 2022.
The following table presents our obligations to make future payments under debt and lease agreements as of December 31, 2023, exclusive of debt discounts and issuance costs which are not future cash obligations.
Property operating expenses increased $7.5 million as a result of: • $4.4 million of increased costs relating to repairs, maintenance, and landscaping for our Same Properties, • $3.4 million of increases from properties acquired, and was partially offset by: • $0.3 million of decreases from properties disposed. 25 Real estate taxes increased $1.6 million as a result of: • $3.4 million of increased real estate taxes from properties acquired, and was partially offset by: • $1.0 million of decreased real estate taxes from properties disposed, and • $0.8 million of decreased real estate taxes for our Same Properties, primarily attributable to tax refunds.
Property operating expenses increased $2.6 million as a result of: • $5.4 million of increases from properties acquired, partially offset by: • $1.2 million of decreased pre-leasing costs from our Same Properties, and • $1.6 million of decreases from properties disposed.
Cash provided by operating activities increased $35.8 million when comparing 2022 to 2021, primarily as a result of direct listing costs of $19.8 million in 2021, increased operating distributions from IAGM, general fluctuations in working capital, and acquisition activity in excess of disposition activity. Since January 1, 2021, we have acquired seven retail properties and disposed of four retail properties.
Cash provided by operating activities increased $3.8 million when comparing 2023 to 2022, primarily as a result of acquisition activity in excess of disposition activity and general fluctuations in working capital.
(b) As of December 31, 2022, 1-Month Term SOFR was 4.3581%. Senior Notes, Maturities The following table summarizes the Company's outstanding borrowings under its Senior Notes as of December 31, 2022.
Senior Notes, Maturities The following table summarizes the outstanding borrowings under our Senior Notes as of December 31, 2023.
Gain on sale of investment properties, net During the year ended December 31, 2022, we recognized a gain of $38.2 million on the sale of three retail properties.
Gain on sale of investment properties During the year ended December 31, 2023, we recognized a gain of $1.0 million on the completion of a partial condemnation at one retail property and a gain of $1.7 million on the sale of one retail property.
We base these estimates, judgments and assumptions on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results may differ from these estimates. Revenue Recognition Credit Losses We review the collectability of amounts due from our tenants on a regular basis.
We base these estimates, judgments and assumptions on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results may differ from these estimates. Acquisition of Real Estate We evaluate the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition.
Year ended December 31, 2022 2021 Change, net Other income (expense) Interest expense, net $ (26,777) $ (16,261) $ (10,516) Loss on extinguishment of debt (181) (400) 219 Gain on sale of investment properties, net 38,249 1,522 36,727 Equity in earnings of unconsolidated entities 3,663 6,398 (2,735) Other income and expense, net 2,030 606 1,424 Total other income (expense), net $ 16,984 $ (8,135) $ 25,119 Interest expense, net Interest expense, net, increased $10.5 million primarily as a result of: • $5.0 million of increased interest expense generated from the private placement of our senior notes, • $3.0 million of increased interest expense generated from the fluctuations in our line of credit balances and interest rates on our corporate credit facilities, • $2.7 million of increased interest expense from the assumption of mortgages on Shops at Arbor Trails, Escarpment Village, and the Highlands of Flower Mound of $31.5 million, $26.0 million, and $22.9 million, respectively, • $1.0 million of increased amortization of debt issuance costs, and was partially offset by: • $1.2 million of decreased interest expense from the pay-off of mortgages on Pavilion at LaQuinta and University Oaks Shopping Center of $22.3 million, and $24.7 million, respectively.
Year ended December 31 2023 2022 Change, net Other income (expense) Interest expense, net $ (38,138) $ (26,777) $ (11,361) Loss on extinguishment of debt (15) (181) 166 Gain on sale of investment properties 2,691 38,249 (35,558) Equity in (losses) earnings of unconsolidated entities (557) 3,663 (4,220) Other income and expense, net 5,480 2,030 3,450 Total other (expense) income, net $ (30,539) $ 16,984 $ (47,523) Interest expense, net Interest expense, net, increased $11.4 million primarily as a result of: • the private placement of our senior notes in August 2022, generating increased interest expense of $7.8 million, • increased interest rates on our corporate term loans generating increased interest expense of $2.6 million, • aggregate assumption of mortgages of $172.8 million since January 1, 2022, generating increased interest expense of $3.0 million, and • increased amortization of debt issuance costs of $1.3 million, partially offset by: • decreased balances on our corporate line of credit resulting in decreased interest expense of $1.3 million, and • aggregate reduction of mortgage payable of $90.3 million since January 1, 2022, generating decreased interest expense of $2.0 million.
(c) Represents our share of amortization of market lease intangibles and lease inducements, net, straight-line rent adjustments, net and adjusting items, net related to IAGM. (d) For purposes of calculating non-GAAP per share metrics, the same denominator is used as that which would be used in calculating diluted earnings per share in accordance with GAAP.
(c) Represents our share of amortization of market lease intangibles and inducements, net, straight line rent adjustments, net and adjusting items, net related to IAGM.
During the year ended December 31, 2021, we recognized $19.8 million of expense relating to the direct listing of our common stock on the NYSE. The following table presents the changes in our other income and expenses for the years ended December 31, 2022 and 2021.
The following table presents the changes in our other income and expenses for the years ended December 31, 2023 and 2022.
During the year ended December 31, 2021, we recognized a gain of $1.5 million on the sale of one retail property and the completion of partial condemnations at four retail properties. 26 Equity in earnings of unconsolidated entities Equity in earnings of unconsolidated entities decreased $2.7 million primarily as a result of decreased earnings from property operations of $2.3 million and decreased gains on sales of properties of $1.3 million, which were partially offset by decreased interest expense of $0.9 million.
During the year ended December 31, 2022, we recognized a gain of $38.2 million on the sale of three retail properties. Equity in (losses) earnings of unconsolidated entities Equity in (losses) earnings of unconsolidated entities decreased $4.2 million primarily as a result of the Company acquiring six retail properties from IAGM since January 1, 2022.
These tables do not include rent deferral lease amendments executed as a result of the impact of the COVID-19 pandemic. In our Pro Rata Combined Retail Portfolio, we had GLA totaling 1.63 million square feet expiring during the year ended December 31, 2022, of which 1.47 million square feet was re-leased. This achieved a retention rate of approximately 90.2%.
The Company's retail portfolio had GLA totaling 893 thousand square feet expiring during the year ended December 31, 2023, of which 802 thousand square feet was re-leased. This achieved a retention rate of approximately 90.0%.
Development and Re-development Capital Expenditures Leasing Total Direct costs $ 8,374 (a) $ 10,771 $ 7,185 (c) $ 26,330 Indirect costs 1,087 (b) 1,464 — 2,551 Total $ 9,461 $ 12,235 $ 7,185 $ 28,881 (a) Direct development and re-development costs relate to construction of buildings at our retail properties.
Development and Re-development Capital Expenditures Tenant Improvements Total Direct costs $ 3,788 (a) $ 17,284 $ 8,085 (c) $ 29,157 Indirect costs 770 (b) 1,929 — 2,699 Total $ 4,558 $ 19,213 $ 8,085 $ 31,856 (a) Direct development and re-development costs relate to construction of buildings at our retail properties.
Impairment of Long Lived Assets We assess the carrying values of our long-lived tangible and intangible assets whenever events or changes in circumstances indicate that they may not be fully recoverable. An example of an event or changed circumstance is a reduction in the expected holding period of a property.
An example of an event or changed circumstance is a reduction in the expected holding period of a property.
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. 22 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 of December 31, 2023, $244.6 million of common stock remains available for issuance under the ATM Program. 20 Our Retail Portfolio As of December 31, 2023 and 2022, our wholly-owned and managed retail properties include grocery-anchored community and neighborhood centers and power centers, including those classified as necessity-based.
Evaluation of Financial Condition and Operating Results Historically, management has evaluated our financial condition and operating performance by focusing on the following financial and non-financial 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 FFO Applicable to Common Shares and Dilutive Securities, a supplemental non-GAAP measure; • Cash flow from operations as determined in accordance with GAAP; • 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. 20 Recent Developments Acquisitions and Mortgage Assumptions During the year ended December 31, 2022, we acquired the following properties: Date Property Grocer Anchor Metropolitan Area Square Feet Gross Acquisition Price Assumption of Mortgage Debt February 2, 2022 Shops at Arbor Trails Costco, Whole Foods Market Austin-Round Rock, TX 357 $ 112,190 $ 31,500 February 2, 2022 Escarpment Village HEB Austin-Round Rock, TX 170 77,150 26,000 April 21, 2022 The Highlands of Flower Mound (a) Target Dallas-Fort Worth-Arlington, TX 175 38,000 22,880 May 4, 2022 Bay Landing The Fresh Market Cape Coral-Fort Myers, FL 63 10,425 — June 10, 2022 Kyle Marketplace - Outparcel N/A Austin-Round Rock, TX — 705 — October 28, 2022 Eastfield Village Food Lion Charlotte-Gastonia-Concord, NC 96 22,500 — December 16, 2022 Stone Ridge Market (a) HEB Plus San Antonio, TX 219 58,100 — Total 1,080 $ 319,070 $ 80,380 (a) We acquired these properties from our joint venture, IAGM.
Evaluation of Financial Condition and Operating Results 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 non-financial 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 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. 19 Recent Developments Joint Venture Acquisition and IAGM Dispositions On January 18, 2023, we 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.
Removed
Current Strategy and Outlook InvenTrust focuses on Sun Belt grocery-anchored neighborhood and community centers, and select power centers that often have a grocery component, in markets with favorable demographics, including above average growth in population, employment, income and education levels.
Added
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 . On December 15, 2023, IAGM was fully liquidated.
Removed
Dispositions During the year ended December 31, 2022, we disposed of the following properties: Date Property Metropolitan Area Square Feet Gross Disposition Price Gain on Sale June 30, 2022 Centerplace of Greeley Denver, CO 152 $ 37,550 $ 25,147 June 30, 2022 Cheyenne Meadows Denver, CO 90 17,900 11,709 December 15, 2022 The Shops at Walnut Creek (a) Denver, CO 225 55,000 1,393 Total 467 $ 110,450 $ 38,249 (a) The property's buyer assumed a $28.6 million mortgage payable secured by the property.
Added
During the year ended December 31, 2023, IAGM disposed of the following properties: Date Property Metropolitan Area Square Feet Gross Disposition Price (a) Gain on Sale January 18, 2023 Bay Colony Houston, TX 416 $ 79,100 $ 22,327 January 18, 2023 Blackhawk Town Center Houston, TX 127 26,300 12,632 January 18, 2023 Cyfair Town Center Houston, TX 433 79,200 4,713 January 18, 2023 Stables Town Center Houston, TX 148 37,000 5,536 Total 1,124 $ 221,600 $ 45,208 (a) Disposition price and square feet for the joint venture disposition activity are reflected at 100%.
Removed
We recognized a loss on debt extinguishment of $0.08 million related to the buyer's assumption.
Added
Acquisitions and Mortgage Assumptions During the year ended December 31, 2023, we acquired the following properties: Date Property Grocer Anchor Metropolitan Area Square Feet Gross Acquisition Price Assumption of Mortgage Debt January 18, 2023 Bay Colony (a) HEB Houston, TX 416 $ 79,100 $ 41,969 January 18, 2023 Blackhawk Town Center (a) HEB Houston, TX 127 26,300 13,008 January 18, 2023 Cyfair Town Center (a) Kroger Houston, TX 433 79,200 30,880 January 18, 2023 Stables Town Center (a) Kroger Houston, TX 148 37,000 6,611 June 2, 2023 The Shoppes at Davis Lake Harris Teeter Charlotte, NC 91 22,400 — Total 1,215 $ 244,000 $ 92,468 (a) We acquired these properties from our joint venture, IAGM.
Removed
IAGM Dispositions and Mortgage Payoffs During the year ended December 31, 2022, IAGM disposed of the following properties: Date Property Metropolitan Area Square Feet Gross Disposition Price Gain (Loss) on Sale Our Share of Gain (Loss) on Sale March 3, 2022 Price Plaza (a) Houston-Sugar Land-Baytown, TX 206 $ 39,100 $ 3,751 $ 2,063 April 21, 2022 The Highlands of Flower Mound (b) Dallas-Fort Worth-Arlington, TX 175 38,000 1,244 684 December 16, 2022 Stone Ridge Market (b)(c) San Antonio, TX 219 58,100 12,287 6,758 December 22, 2022 Stables Town Center I (d) Houston-Sugar Land-Baytown, TX 43 7,800 (244) (135) Total 643 $ 143,000 $ 17,038 $ 9,370 (a) The property's buyer assumed a $17.8 million mortgage payable secured by the property.
Added
Dispositions During the year ended December 31, 2023, we disposed of the following properties: 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 Total 63 $ 13,142 $ 2,691 (a) This disposition was related to the completion of a partial condemnation at one retail property.
Removed
(b) These properties were acquired by the Company. (c) IAGM paid off the property's $28.1 million mortgage payable with proceeds from the sale.
Added
Debt On February 6, 2023, the Company extinguished the $13.7 million mortgage payable secured by Renaissance Center with its available liquidity. On October 17, 2023, the Company extended the maturity of its $92.5 million cross-collateralized mortgage debt maturing in 2023 by exercising one of its two 12-month extension options.
Removed
(d) IAGM paid down $5.4 million of the senior secured pooled loan with proceeds from the sale. 21 Share Repurchase Program On February 23, 2022, we established a share repurchase program (the "SRP") of up to $150.0 million of our outstanding shares of common stock.
Added
The maturity date of the mortgage debt is now November 2, 2024. On December 22, 2023, the Company partially paid down the mortgage debt by $20.0 million, resulting in the release of Blackhawk Town Center from collateralization and an outstanding balance of $72.5 million as of December 31, 2023.
Removed
The SRP may be suspended or discontinued at any time, and does not obligate us to repurchase any dollar amount or particular amount of shares. As of December 31, 2022, we have not repurchased any common stock under the SRP.
Added
ATM Program During the quarter ended December 31, 2023, the Company raised $5.4 million of net proceeds, after $0.1 million in commissions, under its at-the-market equity offering program (the "ATM Program"), through the issuance of 208,040 shares of common stock at a weighted average price of $26.13 per share.
Removed
Debt On March 4, 2022, we paid off a $22.3 million mortgage payable at Pavilion at La Quinta using cash on hand and recognized a loss on debt extinguishment of $0.1 million.
Added
Real estate taxes increased $1.9 million as a result of: • $4.0 million of increases from properties acquired, partially offset by: • $0.4 million of decreases from our Same Properties, and • $1.7 million of decreases from properties disposed. 23 General and administrative expenses decreased $1.5 million as a result of: • $2.1 million of decreased non-compensation costs, and • $1.7 million of decreased other compensation costs, partially offset by: • $2.3 million of increased stock-based compensation costs.
Removed
On October 6, 2022, we paid off a $24.7 million mortgage payable secured by University Oaks Shopping Center with cash on hand and recognized a loss on debt extinguishment of $0.01 million.
Added
Funds From Operations The National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has promulgated a widely accepted non-GAAP financial measure of operating performance known as Funds From Operations ("NAREIT FFO").
Removed
ATM Program On March 7, 2022,we established an at-the-market equity offering program (the "ATM Program") pursuant to which we may sell from time to time up to an aggregate of $250.0 million shares of our common stock.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

9 edited+4 added−1 removed5 unchanged
Biggest changeThe following table summarizes the Company's four effective and four forward interest rate swaps as of December 31, 2022: Interest Rate Swap Effective Date Termination Date InvenTrust Receives Variable Rate of InvenTrust Pays Fixed Rate of Fixed Rate Achieved Notional Amount Fair Value as of December 31, 2022 5 year, fixed portion Dec 2, 2019 Dec 21, 2023 1-Month SOFR 1.41% 2.71% $ 100,000 $ 3,222 5 year, fixed portion Dec 2, 2019 Dec 21, 2023 1-Month SOFR 1.42% 2.72% 100,000 3,238 5.5 year, fixed portion Dec 2, 2019 Jun 21, 2024 1-Month SOFR 1.47% 2.77% 50,000 2,275 5.5 year, fixed portion Dec 2, 2019 Jun 21, 2024 1-Month SOFR 1.46% 2.76% 50,000 2,281 $ 300,000 $ 11,016 5 year, fixed portion Dec 21, 2023 Sep 22, 2026 1-Month SOFR 1.51% 2.81% $ 100,000 $ 4,924 5 year, fixed portion Dec 21, 2023 Sep 22, 2026 1-Month SOFR 1.51% 2.81% 100,000 4,949 5.5 year, fixed portion Jun 21, 2024 Mar 22, 2027 1-Month SOFR 1.48% 2.78% 50,000 2,196 5.5 year, fixed portion Jun 21, 2024 Mar 22, 2027 1-Month SOFR 1.54% 2.84% 50,000 2,116 $ 300,000 $ 14,185 The following table summarizes the Company's four effective and four forward interest rate swaps as of December 31, 2021: Interest Rate Swap Effective Date Termination Date InvenTrust Receives Variable Rate of InvenTrust Pays Fixed Rate of Fixed Rate Achieved Notional Amount Fair Value as of December 31, 2021 5 year, fixed portion Dec 2, 2019 Dec 21, 2023 1-Month LIBOR 1.48% 2.68% $ 100,000 $ (1,304) 5 year, fixed portion Dec 2, 2019 Dec 21, 2023 1-Month LIBOR 1.48% 2.68% 100,000 (1,304) 5.5 year, fixed portion Dec 2, 2019 Jun 21, 2024 1-Month LIBOR 1.49% 2.69% 50,000 (674) 5.5 year, fixed portion Dec 2, 2019 Jun 21, 2024 1-Month LIBOR 1.50% 2.70% 50,000 (684) $ 300,000 $ (3,966) 5 year, fixed portion Dec 21, 2023 Sep 22, 2026 1-Month SOFR 1.58% 2.78% $ 100,000 $ (230) 5 year, fixed portion Dec 21, 2023 Sep 22, 2026 1-Month SOFR 1.57% 2.77% 100,000 (212) 5.5 year, fixed portion Jun 21, 2024 Mar 22, 2027 1-Month SOFR 1.58% 2.78% 50,000 (87) 5.5 year, fixed portion Jun 21, 2024 Mar 22, 2027 1-Month SOFR 1.60% 2.80% 50,000 (118) $ 300,000 $ (647) 38 The following table summarizes IAGM's effective interest rate swaps as of December 31, 2022: Interest Rate Swap Effective Date Termination Date IAGM Receives Variable Rate of IAGM Pays Fixed Rate of Fixed Rate Achieved Notional Amount Fair Value as of December 31, 2022 Secured term loan Apr 1, 2020 Nov 2, 2023 1-Month SOFR 0.35% 2.00% $ 45,000 $ 1,655 Secured term loan Apr 1, 2020 Nov 2, 2023 1-Month SOFR 0.32% 1.97% 30,000 $ 1,109 $ 75,000 $ 2,764 The following table summarizes IAGM's effective interest rate swaps as of December 31, 2021: Interest Rate Swap Effective Date Termination Date IAGM Receives Variable Rate of IAGM Pays Fixed Rate of Fixed Rate Achieved Notional Amount Fair Value as of December 31, 2021 Secured term loan Apr 1, 2020 Nov 2, 2023 1-Month LIBOR 0.43% 1.98% $ 45,000 $ 310 Secured term loan Apr 1, 2020 Nov 2, 2023 1-Month LIBOR 0.41% 1.96% 30,000 $ 220 $ 75,000 $ 530 The gains or losses resulting from marking-to-market our derivatives each reporting period are recognized as an increase or decrease in other comprehensive income (loss) on our consolidated statements of operations and comprehensive income (loss).
Biggest changeThe following table summarizes the Company's five effective and two forward interest rate swaps as of December 31, 2023: Interest Rate Swap Effective Date Termination Date InvenTrust Receives Variable Rate of InvenTrust Pays Fixed Rate of Fixed Rate Achieved Notional Amount Fair Value as of December 31, 2023 5.5 Year Term Loan Dec 2, 2019 Jun 21, 2024 1-Month SOFR 1.47% 2.77% $ 50,000 $ 855 5.5 Year Term Loan Dec 2, 2019 Jun 21, 2024 1-Month SOFR 1.46% 2.76% 50,000 857 5.5 Year Term Loan Apr 3, 2023 Mar 22, 2027 1-Month SOFR 3.69% 4.99% 100,000 (122) 5 Year Term Loan Dec 21, 2023 Sep 22, 2026 1-Month SOFR 1.51% 2.81% 100,000 5,820 5 Year Term Loan Dec 21, 2023 Sep 22, 2026 1-Month SOFR 1.51% 2.81% 100,000 5,845 $ 400,000 $ 13,255 5.5 year, fixed portion Jun 21, 2024 Mar 22, 2027 1-Month SOFR 1.48% 2.78% 50,000 $ 2,451 5.5 year, fixed portion Jun 21, 2024 Mar 22, 2027 1-Month SOFR 1.54% 2.84% 50,000 2,368 $ 100,000 $ 4,819 The following table summarizes the Company's four effective and four forward interest rate swaps as of December 31, 2022: Interest Rate Swap Effective Date Termination Date InvenTrust Receives Variable Rate of InvenTrust Pays Fixed Rate of Fixed Rate Achieved Notional Amount Fair Value as of December 31, 2022 5 year, fixed portion Dec 2, 2019 Dec 21, 2023 1-Month SOFR 1.41% 2.71% $ 100,000 $ 3,222 5 year, fixed portion Dec 2, 2019 Dec 21, 2023 1-Month SOFR 1.42% 2.72% 100,000 3,238 5.5 year, fixed portion Dec 2, 2019 Jun 21, 2024 1-Month SOFR 1.47% 2.77% 50,000 2,275 5.5 year, fixed portion Dec 2, 2019 Jun 21, 2024 1-Month SOFR 1.46% 2.76% 50,000 2,281 $ 300,000 $ 11,016 5 year, fixed portion Dec 21, 2023 Sep 22, 2026 1-Month SOFR 1.51% 2.81% $ 100,000 $ 4,924 5 year, fixed portion Dec 21, 2023 Sep 22, 2026 1-Month SOFR 1.51% 2.81% 100,000 4,949 5.5 year, fixed portion Jun 21, 2024 Mar 22, 2027 1-Month SOFR 1.48% 2.78% 50,000 2,196 5.5 year, fixed portion Jun 21, 2024 Mar 22, 2027 1-Month SOFR 1.54% 2.84% 50,000 2,116 $ 300,000 $ 14,185 Gains or losses resulting from marking-to-market the Company's derivatives each reporting period are recognized as an increase or decrease in comprehensive (loss) income on the consolidated statements of operations and comprehensive (loss) income.
Refer to our Borrowings table in Item 7 of this Annual Report for debt principal amounts and expected maturities by year to evaluate the expected cash flows and sensitivity to interest rate changes. We may use financial instruments to hedge exposures to changes in interest rates on loans.
Refer to our Borrowings table in Item 7 of this Annual Report for debt principal amounts and expected maturities by year to evaluate the expected cash flows and sensitivity to interest rate changes. 33 We may use financial instruments to hedge exposures to changes in interest rates on loans.
We continue to assess retaining cash flows that may assist us in maintaining a flexible low debt balance sheet and managing the impact of upcoming debt maturities. 37 We monitor interest rate risk using a variety of techniques, including periodically evaluating fixed interest rate quotes on all variable rate debt and the costs associated with converting the debt to fixed rate debt.
We continue to assess retaining cash flows that may assist us in maintaining a flexible low leverage balance sheet and managing the impact of debt maturities. We monitor interest rate risk using a variety of techniques, including periodically evaluating fixed interest rate quotes on all variable rate debt and the costs associated with converting the debt to fixed rate debt.
If market rates of interest on all variable-rate debt as of December 31, 2022, permanently increased or decreased by 1%, the annual increase or decrease in interest expense on the variable-rate debt and decrease or increase in future earnings and cash flows would be approximately $1.0 million.
If market rates of interest on all variable-rate debt as of December 31, 2023 permanently increased or decreased by 1%, the annual increase or decrease in interest expense on the variable-rate debt and future earnings and cash flows would be approximately $0.7 million.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk We are subject to market risk associated with changes in interest rates both in terms of variable-rate debt and the price of new fixed-rate debt upon maturity of existing debt and for acquisitions.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk Interest Rate Risk The Company is subject to market risk associated with changes in interest rates both in terms of variable-rate debt and the price of new fixed-rate debt upon maturity of existing debt.
Interest Rate Risk Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. As of December 31, 2022, our debt included outstanding variable-rate term loans of $400.0 million, of which $300.0 million has been swapped to a fixed rate.
The Company's interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows. As of December 31, 2023, our debt included outstanding variable-rate term loans and mortgages of $472.5 million, of which $400.0 million has been swapped to a fixed rate.
In tandem, the interest rate swaps achieve fixed interest rates for a constant notional amount through the maturity dates of the Amended Term Loan Agreement. On December 15, 2022, the Company and IAGM transitioned all interest rate swaps from 1-Month LIBOR to 1-Month Term SOFR.
In tandem, the interest rate swaps achieve fixed interest rates for a constant notional amount through the maturity dates of the Amended Term Loan Agreement.
Market risk is the adverse effect on the value of a financial instrument resulting from a change in interest rates. The Company is party to four effective interest rate swap agreements and four interest rate forward swap agreements, which address the periods between the maturity dates of the effective swaps and the maturity dates of the Amended Term Loan Agreement.
The Company is party to five effective interest rate swap agreements and two interest rate forward swap agreements, which address the periods between the maturity dates of the effective swaps and the maturity dates of the Amended Term Loan Agreement.
Item 8. Consolidated Financial Statements and Supplementary Data See the Index to Consolidated Financial Statements and financial statements commencing on page F-1. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable.
Removed
The Company's and IAGM's hedging instruments continue to qualify for cash flow hedge accounting through application of expedients provided by ASU 2020-04, Reference Rate Reform .
Added
Market risk is the adverse effect on the value of a financial instrument resulting from a change in interest rates. 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%.
Added
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. As of December 31, 2023, the Company's interest rate risk was limited to $72.5 million of variable rate cross-collateralized mortgage debt.
Added
The information presented above does not consider all exposures or positions that could arise in the future. Therefore, the information represented herein has limited predictive value.
Added
As a result, the ultimate realized gain or loss with respect to interest rate fluctuations will depend on the exposures that arise during the period, the hedging strategies at the time, and the related interest rates. 34 Item 8. Consolidated Financial Statements and Supplementary Data See the Index to Consolidated Financial Statements and Financial Statement Schedule commencing on page F-1.

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