IVT - Earnings call transcript Q1 2022 | InvenTrust Properties Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello all. Thank you for your patience, and a warm welcome to the InvenTrust Properties Corp.

First Quarter 2022 Earnings Conference Call. My name is Louis, and I'll be the operator for today's call. [Operator Instructions] And now I have the opportunity to introduce your host, Dan Lombardo, Vice President of Investor Relations. ahead. go please Dan,

Dan Lombardo

Good operator. morning, you, everyone. Thank

Chief call and Chief the Christy Chief Dave with Chief me President Busch, David, Heimberger, and Officer; DJ are Operating Officer. Executive Officer; today Financial On Investment Officer; Phillips, Mike

an During first of along an quarter will XXXX our highlights, InvenTrust's update financial overview on today's and guidance. team presentation, with the provide operational

Following community. the research our analyst prepared remarks, we will answer questions from

statements like about starts including with future company's and may the to would remind based are team I discussion business everyone conditions. management's the market the Before contain forward-looking on as expectations current call remarks, forward-looking we risks the views subject and quarterly uncertainties. our and update future today's that prepared These of assume release. on and earnings of guidance no performance, various or obligation only are forward-looking that to financial today's today's are on beliefs supplemental statements made press to date, Any and the and in any or speak forward-looking statements financial

In materials, call also are quarter's will With the GAAP I this comparable DJ. included to on in financial financial earnings non-GAAP addition, that, measures. reference are Investor Relations measures posted turn our website. we over which The certain

Daniel Busch

concentration in from markets through our of over coming publicly as InvenTrust everyone, InvenTrust our the XX% power you of and well Thanks, center shopping Dan. Good a centers morning, Sun over income goal a allocation for is joining that capital have further Belt that and high-quality with thank traded these community manages as and centers us. Belt With leader owns time. Sun a clear grocer. often REIT shopping focused grocery-anchored neighborhood strategic is the center increasing region,

demonstrated to and Since last continue this a portion thesis. interested a investment for is the be joining in in portfolio investors Sun market the to will the For choice Belt, InvenTrust as capital central natural their million of retail at allocating public million tender One shares several XXXX, by completed is $XX Dutch our of year, in X allocation has fronts. share. on delivered repurchased team November our per our disciplined $XXX we where

Next, be the on our Both quarter. display in acquisition Sun for put a meaningful the growth Belt cash InvenTrust's continues NOI and quarter, solid focus external place team the additional growth of couple from our the flow channels shareholders through both properties. initiatives. and on to premier of Also internal full contributed same-property important during growth during

our in solid was and both approved share view its balance $XXX offering Fitch million tenant as and First, pursued of with The a to $XXX we a grocery-anchored rating also evaluate assigned and sheet, as board listing, we capital the diversification. ratings Then credit long-term efficient program. decision-making key providing a additional allocation repurchase authorized a our from April. the step ATM opportunities. According program next concentration, assets as important team rating were outlook. Board and Fitch the March, for the the process additions to Belt in markets. drivers published default assigned million BBB- to stable report, management rating a established following InvenTrust's new Sun team programs logical The capital conservative inaugural these access issuer

capital Belt we are sources dedication the our our by believe of support reflects importantly, ahead. and most team's to driven strategy additional pleased our to best-in-class growth ability rating, simple a The structure. will capital expand investment-grade with and portfolio our quarters our quality flow opportunities and our to We Sun cash evaluate that the access and in rating it focused

portfolio. Turning to the

seen last should decade, pandemic in-migration these years continue come. from we accelerate and benefited have only and to markets for following Belt Sun trends the have Our for the

believe we generate to components other and ultimately, regions, provide sustainable centers value term. are creation Our markets right near in growth the long opportunities have risk-adjusted the will superior and rent above returns

demand, to turn that, within more it our and Mike significant Phillips assets results With over continue to present detail. with to redevelopment levels markets these to leasing rent stable healthy occupancy discuss going accretive I'm guidance financial Our and in opportunities.

Michael Phillips

DJ, and Thanks, good everyone. morning,

first the company time the NAREIT $XX.X of produced million per $X.XX For of the in share. increase XX% a per over XXXX. FFO This represents quarter, same or share period

core our increase grew $XXX $X.XX FFO million quarter XXXX of the last first impact same-property succession NOI a in due share, XX%. share planning or of both driven of savings and year-over-year to NAREIT G&A million nonrecurring in core XXXX increase year. an positive to by QX repurchase per of in largely costs $X.XX $X.XX of per a was and Our FFO in our The increase $X.XX $XX for share, from of

our momentarily. As strategy InvenTrust's to leading InvenTrust us shows, portfolio pro through will performance focused and XXXX simple financial quarter producing guidance, year-end strong first we which our for results talk is and our adjust growing of the million, The rata cash basis NOI contractual same-property $XX.X driven of was gains occupancy collections XX.X%. pro the for same-property and in tenants. reached timing rata increases, NOI quarter by primarily increase rent

in favorable a basis against about QX comparison XXXX of points of related QX given that to did not relief XXX we have also XXXX XXXX. in experience rent We

the to sheet. balance Turning

total $XXX over hand. remaining on facility million including As on million million of had $XX capacity and liquidity, cash $XXX of March credit our XX, revolving we of of

rata of X debt a pro of average Our X.X% weighted years. average maturity weighted and at rate a interest

debt We have in maturities no XXXX.

fluctuations with portfolio in remain targets Xx EBITDA evaluate XX% some opportunities. we Our recycling net net the the adjusted and of same, debt range quarter-to-quarter acquisition XX% leverage in to X and to as the leverage potential to range

low-leverage further while to investment-grade business model. will access capital us still allow inaugural maintaining Our rating our

is our result our first of year XXXX quarter InvenTrust performance, guidance. modifying a As full

of net are be to guidance income our $X.XX. range We share $X.XX increasing per to in the diluted

per FFO are NAREIT are to $X.XX FFO guidance per $X.XX We and $X.XX share. we core tightening to to to share, raising our our range $X.XX

to guidance X.XX%. increasing is growth NOI X.XX% same-property to Our

by declined and than $XXX the by environment Our be rate is driven expense million. G&A higher-than-expected activity has modestly forecast net finally, And expense financing but activity. interest increasing offset future current more will to investment

disclosure. supplemental our in provided are assumptions guidance Additional

quarterly note, FFO Another progress growth year. to our the we moderate as throughout point we to expect

EBITDA we the rising impact every will our quarter the of increase in interest While back rates in half our an on have anticipate to year. XXXX, FFO

current and from balance acquisitions. to we be put, than revolver, our rate the expensive opportunities long-term With as for to, will with fixed to it we which XXXX, revolver. financing, that evaluating we on are current through more grow organically both Simply alluded consider the the achieved NOI rate short-term expect replace debt just

which while to prudently in to digits, putting to to G&A in lower, structure. be Our the debt further financing slightly portfolio permanent close results that, will FFO our our activity. with call place debt Christy discuss core going solidify to turn I'm growth double And

Christy David

you, Thank Mike.

Pizza continues such strong segments, experience MOD as different markets. portfolio in Sephora, Therapy, many whom including Sun and Athletico Our presence all demand activity. leasing our Significant to in their of are retailers retailers Physical is interest from and Belt coming expanding

in seeing year. sign they Health use and Additionally, the bring wellness and space tenants care, in category. wellness tend activity believe increased to particularly longer-term great health for retail and a Urgent wellness and are we capital our complementary their dental, attractive, a environments are centers. we invest are products to last more vision finding tenants to center positive basis like communities. leases, landlords within services vision that and XX also above quarter match the provide QX XXXX was our InvenTrust's essential centers presence them InvenTrust. points the XXX for These of makes occupancy points above and leased our and attractive QX community. the attributes their XX.X%, first This basis and

our small of Our increases anchor XX XXX and lease year-over-year, basis shop XX.X% points hit to points percentage and basis increased XX.X%, respectively.

was rent XX X.X% compared first in an increase combined hitting In XXXX. GLA. to XX totaling March base was ABR tenant with the square of annual pro small the same as of quarter, $XX.XX. signed approximately feet we rata the Anchor XXX,XXX Our leases ABR of for shop $XX.XX $X.XX, portfolio period

retention was XX%. blended comparable X% spreads our for were the Our rate lease and quarter

clustered rents downtime evidenced efforts. on lease our we possible our closely being are Focusing the by healthy on made chain is and only operating marketing and also of push local as communicating our our quickly renewals wide Not these capital conclude spreads. spend, are by experienced teams, occupancy and some able we concentrated To renewal to with as of limiting the our the leads we retention This to These and a are our X.X% my to great and relationships our provide as we ideas service respond to inflation our embedded provides but the properties and our resources. our rates generate economy. and challenges ability tenants businesses, their demonstrate is remarks, supply to operate are which tenants. solutions the needs, success team our well our in is tenants portfolio. piece that configuration a our other level the final monitoring throughout tenants successfully believe place tenants' of business-related range to Understanding for

While our and starting have the increased materials. are time we effects cost been to lead to see marginal, portfolio on

avoid discretionary leasing Our over Inflation goods, conduct and also to their able items historically operate affect our activity, optimal recent their environment. services with modest to cycles. believe successfully portfolio the grocery-anchored portfolio InvenTrust our disruptions and these these of that adapt be challenges normal and operations. a should our of pipeline headwinds should to Outside and successfully. susceptible demand have us to have use tenants balance to be all structure work accretive time businesses significant and their centers to economic but at we time with perform any this line, less of allows been an will managed to environments to continue consumer sheet continue manageable to for have redevelopment needed continue business capital. necessity-based and we as Bottom to them new have may tenants as proven help even necessity in to inflationary of an very

for call remarks. DJ the turn I'll over to Now, final some

Daniel Busch

future. Thanks, be to excited I continue Christy. In in InvenTrust's conclusion,

flow We inclusions We strategy, coupled this with will open familiar alternative be Operator, that maintain strategy to that and become investors. benchmarks, cash the our will our and prepared should investment guidance to to simple our in line and deliver growth indices as new solid sustainable InvenTrust current important questions. this the in future for story the our implied the an more potential attractive for remarks. year. beyond continue hope additional Please concludes with growth continue

Operator

from Point. question Compass Dijkum first please today of comes Our [Operator Floris, Floris go Instructions] ahead. Van

open. Your line is

Unidentified Analyst

is guys, Elizabeth on Congrats quarter. Floris. on Hey the this for

to greatest of markets growth And in opinion? markets the existing Just assets? will see your your new you owning any your could are there in InvenTrust produce which listening remarks, where

Daniel Busch

forma pro for just about. excited look be Without obviously, Obviously, when properties breaking concentration, on and a by the it X you basis I'll biggest question to to this continue that is down the Austin thank in nearly we point bought market XX% to specific a we couple Elizabeth, the interest you markets, at InvenTrust. year. earlier that our

find reasons. western we like to current for point continue last Carolina. will like to to I quite for central trends assets that continue Austin that new of where we is want Florida. look the I really in similar highlight experiencing Those part the extent dynamics to opportunities to market and North are demographic our performing well, those. And one So of we The then markets can is some are the obvious and in that

in well obviously, strong triangle strong that those the the obviously, household demand we new in for even centers as then the market own into the Raleigh-Durham, really And continue areas. see and to formation. turns that Charlotte So we then

markets, we're to it Belt. focused the As new exclusively Sun obviously in relates

our our But scale. we to really have clusters which markets higher It do something able -- and get it, to, bar in. it call comes there's to our manner as be helps We in to further those market. in into What competitive the is believe us. operate size one It is it's relative an ability of in us to relates a Phoenix getting we efficient helps that operate to those owned the markets. it we down advantages, to West, that Christy alluded

but we would that a bar. market could get we consider to smaller a is it, that the to higher a it certainly extent scale, to in portfolio get So new

Unidentified Analyst

stuff, you could I or on densification little maybe the your then opportunities. maybe you have in a your redevelopment know of of if do but a bit redevelopment have those obviously, little and mentioned about But And on you opportunities potential kind redevelopment, a you any expand portfolio? some great. -- Okay, bit list

Daniel Busch

about better. think get it's think opportunities question. really I our risk-adjusted good a we No, return a it's incremental strong way And making while the the redevelopment, to assets

our near but that's like least and be is -- could NOI densification We be that least the an something by by driver opportunity important of think could making reinvesting improving road. to going larger markets We and have to embarking term. and ourselves not properties very in incremental at that down about a the the nature, at pipeline our couple on in But properties strong very an them where not InvenTrust time. of you argue while the better, in in over merchandise manageable certainly, smaller redevelopment mix growth is

baseball and opposed type guess, to or doubles analogy, larger it's it's that. business double a So I -- as singles a anything using, of much than a

Unidentified Analyst

Great.

Thank so Congrats, much. quarter. Okay. you on the again,

Operator

you. Thank

would any the have We back section being this hand recorded, be I replay time. call now the a the Busch remarks. no DJ for of active at is website the Investors of can to questions closing And presentation further and on inventrustproperties.com. presentation this at InvenTrust

Daniel Busch

join. InvenTrust Have to guys continued We we next day. your great forward a look you to to appreciate and to was everyone talking able in quarter. Thank interest that you

Operator

all rest call you Have call. a your Thank day. joining of now can today's conference end. for lovely This

now may You disconnect.

InvenTrust Properties (IVT) 3 May 222022 Q1 Earnings call transcript