InvenTrust Achieves Record-Breaking Q4 and Full Year 2024 Results, Bolstered by Strong Demand and Strategic Capital Deployment
InvenTrust Properties, a leading owner of retail real estate in the United States, has reported impressive results for the fourth quarter and full year 2024. The company's core funds from operations (FFO) per share grew by 5% in both the fourth quarter and for the full year, marking the third consecutive year of cash flow per share growth above 4%. This achievement is a testament to InvenTrust's highly effective capital deployment and its ability to navigate the retail real estate market with precision.
In his opening remarks on the company's fourth-quarter earnings call, DJ Busch, President and Chief Executive Officer, emphasized that healthy economic growth, perpetual migration tailwinds, and favorable business conditions continue to drive demand across their markets. The Sun Belt cities, in particular, are experiencing significant population inflows, particularly from higher-cost coastal areas, which is driving demand for InvenTrust's retail real estate.
Busch noted that recent forecasts project the Sun Belt's population will grow by approximately 7% over the next decade, outpacing the national growth rate of less than 1%. This demographic trend, combined with the expanding tech, health care, and logistics sectors in these regions, creates a solid foundation for sustained long-term job growth. As a result, InvenTrust is optimistic about opportunities in these markets where demand is expected to outpace supply, further enhancing the strength and resilience of their portfolio.
One key factor contributing to InvenTrust's success is its ability to maintain strong leasing leverage across its properties. Despite some well-documented retailer disruptions in late 2024 and early 2025, the company has minimal exposure to headline bankruptcies and store closures. With leased occupancy at 97.4% and economic occupancy at 95.3%, InvenTrust expects to benefit from a built-in leasing pipeline and high retention rates of existing tenants.
The company's capital deployment strategy is another crucial aspect of its success. During the fourth quarter, InvenTrust issued approximately $250 million of equity to accelerate growth, expand acquisition activity, and pay off expensive variable rate debt. This strategic move has positioned the company for further expansion in 2025, with a compelling mix of high-quality and accretive acquisition opportunities.
InvenTrust's President and CEO, DJ Busch, highlighted that their strategy is paying off, saying "We're especially optimistic about opportunities in these markets where demand will outpace supply, further enhancing the strength and resilience of our portfolio." This confidence is reflected in the company's ability to maintain a strong capital allocation plan, which has enabled it to invest in high-quality assets and expand its presence in key growth markets.
As the retail real estate market continues to evolve, InvenTrust remains committed to navigating these changes with precision. The company's focus on strategic capital deployment, effective expense management, and occupancy growth has established a solid foundation for future success. With a strong track record of achievement, InvenTrust is well-positioned to capitalize on emerging trends and opportunities in the market.
