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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Inventrust Properties Corp. · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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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. The Company's interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows. As of June 30, 2026, the Company's debt included outstanding variable-rate debt of $475.0 million, $400.0 million of which has been swapped to a fixed rate through the maturity dates.
As of June 30, 2026, the Company's interest rate risk was limited to $75.0 million on its Revolving Credit Facility. If market rates of interest on all variable-rate debt as of June 30, 2026 permanently increased or decreased by 1%, the annual increase or decrease in interest expense, future earnings, and future cash flows would be approximately $0.8 million. See our Annual Report for expanded descriptions of the Company's market risk associated with changes in interest rates.
The following table summarizes our effective interest rate swaps as of June 30, 2026 and December 31, 2025:
Fair Value as of
Effective Interest Rate Swaps Effective Date Termination Date InvenTrust Receives InvenTrust Pays Fixed Rate of Fixed Rate Achieved (a) Notional Amount June 30, 2026 December 31, 2025
5.5 year Term Loan 4/3/23 3/22/27 1-Month SOFR 3.69% 4.84% $ 100,000 $ 141 $ (435)
5 year Term Loan 12/21/23 9/22/26 1-Month SOFR 1.51% 2.66% 100,000 505 1,413
5 year Term Loan 12/21/23 9/22/26 1-Month SOFR 1.51% 2.66% 100,000 507 1,418
5.5 year Term Loan 6/21/24 3/22/27 1-Month SOFR 1.54% 2.69% 50,000 847 1,082
5.5 year Term Loan 6/21/24 3/22/27 1-Month SOFR 1.48% 2.63% 50,000 869 1,118
$ 400,000 $ 2,869 $ 4,596
(a)Interest rates reflect the Company's current credit spread of 1.15%.
The following table summarizes our forward-starting interest rate swaps as of June 30, 2026 and December 31, 2025:
Fair Value as of
Forward-Starting Interest Rate Swaps Effective Date Termination Date InvenTrust Receives InvenTrust Pays Fixed Rate of Fixed Rate Achieved (a) Notional Amount June 30, 2026 December 31, 2025
5 year Term Loan 9/22/26 8/26/30 Daily SOFR 3.35% 4.50% $ 100,000 $ 1,793 $ 28
5 year Term Loan 9/22/26 8/26/30 Daily SOFR 3.35% 4.50% 100,000 1,803 36
5.5 year Term Loan 3/22/27 2/24/31 Daily SOFR 3.42% 4.57% 100,000 1,438 56
5.5 year Term Loan 3/22/27 2/24/31 Daily SOFR 3.43% 4.58% 100,000 1,425 45
$ 400,000 $ 6,459 $ 165
(a)Interest rates reflect the Company's current credit spread of 1.15%.
Gains or losses resulting from marking-to-market derivatives each reporting period are recognized as an increase or decrease in comprehensive income on the condensed consolidated statements of operations and comprehensive income.
The information presented herein does not consider all exposures or positions that could arise in the future. Therefore, the information represented herein has limited predictive value. 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.
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