InvenTrust Properties Corp. is a retail company with a focus on acquiring grocery-anchored open-air centers in key growth markets with favorable demographics.
The last earnings update was 27 days ago.
Discounted Cash Flow Calculation for OTCPK:IARE using 2 Stage Free Cash Flow to Equity using Funds From Operations Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
InvenTrust Properties is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.
OTCPK:IARE DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
InvenTrust Properties's share price is below the future cash flow value, and at a moderate discount (> 20%).
InvenTrust Properties's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
InvenTrust Properties's earnings available for a low price, and how does
this compare to other companies in the same industry?
InvenTrust Properties's earnings are expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).
Unable to determine if InvenTrust Properties is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
InvenTrust Properties's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
InvenTrust Properties's finances.
The net worth of a company is the difference between its assets and liabilities.
InvenTrust Properties is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
InvenTrust Properties's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
InvenTrust Properties's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.5x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Thomas P. McGuinness has been the Chief Executive Officer at InvenTrust Properties Corp. since November 18, 2014, its Director since February 2015 and also its President since the Company initiated its self-management transactions in March 2014. Prior to the self-management transactions, Tom had been President and Principal Executive Officer of the InvenTrust Properties Corp. since September 2012 and President of the former business manager since January 2012. Before that, he had been President of the InvenTrust Properties’s former property manager. Mr. McGuinness serves as the President at Inland American Business Manager & Advisor, Inc. He has been the Chief Operating Officer at Inland Retail Real Estate Trust Inc. since May 13, 2005. Mr. McGuinness serves as the Chief Executive Officer and Chairman of Inland North American Property Management Corp and Property Manager at Inland American Real Estate Trust Inc. Mr. McGuinness joined The Inland Group Inc. organization in property management in 1982 and became President of Mid-America Management Corporation, a Property Management Company within Inland organization, in July 1990 and Chairman in 2001. He serves as the President and Manager at Inland HOLDCO Management LLC. He serves as the President and a Manager at Inland US Management LLC, Inland Pacific Properties Services LLC and Inland Southwest Management LLC, the three property managers of Inland Western Retail Real Estate Trust Inc. He serves as the President at Inland Property Management Inc. He previously served as the president of the Chicagoland Apartment Association and as the Regional Vice President of the National Apartment Association. Mr. McGuinness serves as the Chairman of Inland Mid-Atlantic Management Corp. He has been a Director of InvenTrust Properties Corp. since February 18, 2015. Mr. McGuinness has been a Director of Inland Retail Real Estate Trust Inc., since March 3, 2006. He serves as a Director of Inland Commercial Property Management. Mr. McGuinness served as a Director of Feldman Mall Properties Inc. from May 2008 to November 16, 2011. Mr. McGuinness is on the Board of Directors of the Apartment Building Owners and Managers Association and is a trustee with the Service Employees' Local No. 1 Health and Welfare Fund, as well as the Pension Fund and holds CLS and CSM accreditations from the International Council of Shopping Centers. Mr. McGuinness is a licensed Real Estate Broker.
Tom's compensation has been consistent with company performance over the past year.
Tom's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the InvenTrust Properties management team is about average.
Executive VP & COO
Senior Vice President
Vice President of Investor Relations
Senior Vice President of Transactions
Director of Leasing - Houston Office
Director of Leasing - Dallas Office
Director of Leasing - Southeast Region
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the InvenTrust Properties board of directors is less than 3 years, this suggests a new board.
InvenTrust Properties Corp. is a retail company with a focus on acquiring grocery-anchored open-air centers in key growth markets with favorable demographics. This disciplined acquisition strategy, along with our innovative and collaborative property management approach, ensures the success of both our tenants and business partners and drives net operating income growth for the Company. InvenTrust became a self-managed REIT in 2014 and a Global Real Estate Sustainability Benchmark ("GRESB") member in 2018. As of December 31, 2018, the company is an owner and manager of 71 retail properties, representing 12.1 million square feet of retail space.
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