InvenTrust Properties Corp.IVT
InvenTrust Properties Corp. Commitments Disclosure
Commitments and Contingencies
Legal Matters
The Company is subject, from time to time, to various types of third-party legal claims or litigation that arise in the ordinary course of business, including, but not limited to, property loss claims, personal injury or other damages resulting from contact with the Company's properties. These claims and lawsuits and any resulting damages are generally covered by the Company's insurance policies. The Company accrues for legal costs associated with loss contingencies when these costs are probable and reasonably estimable. While the resolution of these matters cannot be predicted with certainty, based on currently available information, management does not expect that the final outcome of any pending claims or legal proceedings will have a material adverse effect on the financial condition, results of operations or cash flows of the Company.
Captive Insurance Company
In April 2023, the Company formed a wholly-owned captive insurance company (the "Captive"), which provides insurance coverage for all losses below the deductibles of the Company's third party liability insurance policies relating to wind, flood, named windstorm, earthquake, fire, and other property-related perils. The Company formed the Captive as part of its overall risk management program and to stabilize insurance costs, manage exposures, and recoup expenses through the function of the captive program. In January 2025, the Captive began underwriting the first layer of general liability insurance. An actuarial analysis is performed to estimate future projected claims, related deductibles, and projected expenses necessary to fund associated risk management programs. The Captive generally establishes annual premiums based on projections derived from the past loss experience. The Captive is capitalized in accordance with the applicable regulatory requirements.
The following table summarizes the activity in the liability for unpaid losses and loss adjustment expenses:
| Year ended December 31 | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Balance at the beginning of the year | $ | 820 | $ | — | ||||||||||
| Incurred related to: | ||||||||||||||
| Current year | 394 | 881 | ||||||||||||
| Prior years | 22 | — | ||||||||||||
| Total incurred | 416 | 881 | ||||||||||||
| Paid related to: | ||||||||||||||
| Current year | (94) | (61) | ||||||||||||
| Prior years | (842) | — | ||||||||||||
| Total paid | (936) | (61) | ||||||||||||
| Balance at the end of the year | $ | 300 | $ | 820 | ||||||||||
Lessee Operating and Finance Lease Commitments
The Company has non-cancelable leases for corporate office space for which the Company recognizes operating lease ROU assets and related lease liabilities.
The land underlying West Ashley Station is subject to a long-term ground lease whereby the Company, as lessee, is required to pay fixed and variable rent. On June 10, 2025, the Company recognized a of $8,965, inclusive of an initial fair value adjustment of $2,008, and related finance lease liability of $10,973. The ground lease expires in January 2092.
For operating and finance leases, the discount rate applied to initially measure each ROU asset and lease liability is based on the Company's incremental borrowing rate ("IBR"), as the rates implicit in the lease are not readily determinable. The Company utilizes a market-based approach to estimate an IBR for each lease, which generally considers market-based interest rates and publicly available data for instruments with similar characteristics. The Company also considers adjustments, as needed, related to tenor, credit spreads, and credit ratings, if not fully incorporated by the aforementioned data sets.
The following table summarizes the Company's operating and finance leases as of December 31, 2025 and December 31, 2024:
| As of | |||||||||||||||||
| Balance Sheet Caption | December 31, 2025 | December 31, 2024 | |||||||||||||||
| Operating lease ROU assets | $ | 2,683 | $ | 3,012 | |||||||||||||
| Operating lease ROU accumulated amortization | Deferred costs and other assets, net | $ | (1,144) | $ | (1,163) | ||||||||||||
| Operating lease liabilities | $ | (2,129) | $ | (2,528) | |||||||||||||
| Finance lease ROU asset | $ | 8,965 | $ | — | |||||||||||||
| Finance lease ROU accumulated amortization | Accumulated depreciation | $ | (75) | $ | — | ||||||||||||
| Finance lease liability | Debt, net | $ | (11,082) | $ | — | ||||||||||||
| Weighted-average remaining lease term - Operating leases | 4.5 years | 5.2 years | |||||||||||||||
| Weighted-average remaining lease term - Finance lease | 66.1 years | N/A | |||||||||||||||
| Weighted-average discount rate - Operating leases | 4.48 | % | 4.49 | % | |||||||||||||
| Weighted-average discount rate - Finance lease | 6.80 | % | N/A | ||||||||||||||
The following table summarizes the Company's lease costs for the years ended December 31, 2025 and 2024:
| Statement of Operations Expense Caption | Year ended December 31 | ||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Operating lease costs: | |||||||||||||||||
| Minimum lease cost | General and administrative | $ | 431 | $ | 559 | ||||||||||||
| Variable lease cost | General and administrative | 299 | 300 | ||||||||||||||
| Short-term lease cost | General and administrative | — | 200 | ||||||||||||||
| Finance lease costs: | |||||||||||||||||
| Amortization of ROU asset | Depreciation and amortization | $ | 75 | $ | — | ||||||||||||
| Interest on lease liability | Interest expense, net | $ | 416 | $ | — | ||||||||||||
| Variable lease cost | Property operating | $ | 79 | $ | — | ||||||||||||
The following table summarizes the Company's future minimum lease obligations as of December 31, 2025:
| Future Minimum Lease Payments | |||||||||||
| Scheduled minimum payments by year: | Operating Leases | Finance Lease | |||||||||
| 2026 | $ | 517 | $ | 550 | |||||||
| 2027 | 529 | 578 | |||||||||
| 2028 | 522 | 605 | |||||||||
| 2029 | 493 | 605 | |||||||||
| 2030 | 293 | 605 | |||||||||
| Thereafter | — | 71,211 | |||||||||
| Total expected minimum lease obligation | 2,354 | 74,154 | |||||||||
| Less: Amount representing interest (a) | (225) | (63,072) | |||||||||
| Present value of net minimum lease payments | $ | 2,129 | $ | 11,082 | |||||||
(a)Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company's IBR.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 15, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Mar 7, 2019 | |
| 2017 | Mar 7, 2018 | |
| 2016 | Mar 17, 2017 | |
| 2015 | Mar 18, 2016 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.