IVT - Earnings call transcript Q2 2022 | InvenTrust Properties Corp.

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Operator

Thank you for standing by, and welcome to InvenTrust Second Quarter 2022 Earnings Conference Call. My name is Juana [ph], and I'll be your conference call operator today.

Before we begin, I would like to remind all listeners that today's presentation is being recorded and a replay will be available on the investor section of the company's website at inventrustproperties.com. I would now like to turn the call over Mr. Dan Lombardo, Vice President of Investor Relations. sir. ahead, go Please

Dan Lombardo

good and morning. you Thank

David, you We Officer. me, Phillips, us and Christy With joining DJ are Chief Heimberger, Busch, Investment Officer; Mike happy are Officer; President today. Executive Officer; are and Chief Operating Chief Financial Dave Chief

prepared will open analyst from research and questions the remarks we our lines community. the Following answer

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

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

Daniel Busch

driven Dan. and our the Thanks, everyone, you quarter thank joining team InvenTrust after markets in sought morning, most Belt. has high solid another strong Sun and us. performance quality of our had of portfolio for assets Good by some the in

strategy we in this to the results volatility the near and markets. believe of well-positioned any strong sector, plan produce Our capital simple focused and continues economy business and top end to the our potential has navigate

drive few, which such Tesla, continues for locations all Belt and recently of North new strong additional patterns high factors communities. in to portfolio team space. new InvenTrust business differentiates Texas to our leasing Carolina a that which not go since the one market desirable our year. jobs us Sun execute Our continued growing announced have turn the markets, joining population Citadel to bringing our do and job relocation. already to significant our unnoticed almost Center From last our retailers, traffic demand migration continued from on Belt see in name Honeywell These initiatives corporate Apple, properties Companies exclusive peers, in Florida, Strip public for or and has by as paying high to remains creation patterns. The Sun is

being to of our outlines transparency corporate stakeholders. encapsulates align quarter I ESG pledge commitment objectives our to we increasing we a our report. conducting our skills directors. serve the our in of gathering prioritizing the competencies additional as with breadth vehicle and systems our management environmental installation on to highlight properties, efforts search as implement activities is current board and to activities are spaces, and further an electric portfolio. in friendly to to charging motivated and are environment, creating acquisitions. stations center's new Sustainability practices, across new adding to of milestone and important InvenTrust not the report community These of state across for another any inaugural the This the our want company diversity. ESG pursue. opportunities InvenTrust, our energy to and published invest the various to due and are our diligence of we that sustainability we also all assessments partner to of well an the We even communities greater environmentally analyzes performing as support reviewed on pursuits, portfolio. process We're while Equally to our board also add diversity currently and this

long integral term to continue to our will and part an is leadership and experience guidance, boards success. Our be

provide you with current acquisition the about environment. Finally, a let me comments few

within opportunities Our a robust review our and continues to of pipeline pursue team markets.

we resilient, remain pricing new While appears potential for growth. and in our corresponding extremely Belt our to external evaluation opportunities, contribution of disciplined Sun their core assets

of an just During Landing, center grocery-anchored which Naples, Bay is acquired area the trends. seeing we quarter, outside excellent demographic

In suburban in our from Highlands demonstrate venture. to a addition, deals ability the market our deploy Both with sense by acquisition capital pipeline Flower external we captive Dallas in our of joint Mound competitive acquired coupling in within the environment the that opportunities JV.

to prudent will capital to detail. I'm turn call acquisition financial going we navigate to to discuss that, in Our the team as seasoned and to results guidance decisions. over approach With continue landscape allocation maintain Mike the more our our

Michael Phillips

morning, Good DJ. everyone. Thanks,

start Let InvenTrust financial me with an performance.

months per largely As driven $XX.X XX%. six year per contributing million the additional XXXX representing in we increase for by $X.XX of rata core The primarily year-over-year for from first yesterday, a was FFO or in increase NOI of an to-date $X.XX same-property acquisitions. grew share, pro to reported XXXX and $X.XX share XXXX core FFO our increase

positive reach savings $X.XX, by last G&A succession year by we realized in occupancy X.X%. a we of due to an rent increase $XX.X same-property contractual Pro planning repurchase These $X.XX. in interest The increases, expense $X.XX gains were of share million our the basis on and increase of growing QX to-date offset addition, impact of million, was rata and collections tenants. timing of NOI In $XXX cash primarily saw driven non-recurring gains in XXXX, of year. costs our

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

down the million are structure In its Turning rating, maturity June intend including and seven-year million grade its capital interest tranche and funding unsecured average private years. feature, balance X.X% investment into placement continues and general is XX, fixed X.X completed for delayed the rate and maturity draw for The and of Using weighted occur August XX-year future million. a to acquisitions. repayment $XXX weighted The diversify a proceeds is on to for corporate to InvenTrust the the schedule. $XXX $XXX will purposes debt use offering. InvenTrust manage its notes utilizing average we broken tranche sheet. senior

full per share. to core We're year Next, growth our the the low maintaining X%. I pro to would We're $X.XX at the lifting of of NOI end end range X% guidance. tightening our XXXX guidance our high range rata FFO same-property to while $X.XX, to like update

As year, property in back and be FFO we in deliver rata to increase and full decelerate near and the we mentioned expect Bottom end of FFO received pro XXXX, the expense. year, period core half the growth, the to strong NOI in the expect our line results growth the an of core top to operating increased interest quarterly sector. out expenses for meaningful to we will NOI same-property continue rent QX last quarter, of of and due significant

provided yesterday. filed call I'm activity. that, assumptions to Our are our discuss in going to full to disclosure supplemental portfolio guidance Christy our With the turn

Christy David

Thank you, Mike.

experience to leasing and As strong DJ operational performance. mentioned, continues InvenTrust

Our are centers line traffic results. XXXX with levels busy and in remain

Our XXX lease and occupancy basis year. the last above ended QX above XX.X%, this quarter period at XXX basis points a points

lease our anchor all year the spread occupancy us months highs, With for significant Our pricing minimize the power occupancy shop and giving rates. goal leases. percentage and of our at negotiating XX.X%, between XX.X%. when increased six economic is lease the Both to small time first remained to levels increasing, our our

challenges, tenants. and on proficient in on effectively ways into reduce creative and Even be we chain delays to to turning of budget. are paying continues time supply team in rent finding leases open these times Our sign tenants

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

tenants new Our to and [ph], see leasing many Homegoods, leases, Burlington. citing retail including Towline with team continued interest Crunch categories Fitness in

Our for rate the XX%. above retention quarter was

still leasing combined the our and most an new rent increasing, inclusive quarter occupancy of where leases Belt ability to our view a tenant for assets importantly environment Sun that of is substantial maintain spreads. will demonstrate In CapEx we expectation up drive further renewals The a strong total volume. around These to our Our of strength. and rate was spread It generating positive tenants, make is downtime rent. continue eliminates XX.X%. leasing the retention results new as conviction percentage attract new renewal while our

to or how demand them starting a nature generate to chain able In team our and redevelopment our the help mitigate InvenTrust are Due timeline partner closely expect project a top our needed tenants. of we affecting their are quarter. delays, of to complete over experiencing of project both in the at adjusting and budget growth redevelopment. risk tenants to continue in our increases hit time our our for enhance risk to I operations. extremely proud To on projects. win-win for business to opportunities a that, space that term their wanted construction Publix continue delivery our center, with any property. is we was and larger we brand significant typically Although, we rising tenant conclude, monitor Suncrest and of costs this the significant and the to the remain successfully. as for are to rebuilding cause property based are for longer InvenTrust Modest InvenTrust tenants without This for NOI a able investment consumers. to sales Village solid highlight new approach tenants Orlando. strong cycle was true conduct handed adjusted necessity our wage disruption to On the will this InvenTrust team for our assets, to tenants generating supply this and experience space, tenants can while healthy. inflation challenges to currently, consumer embodies the availability project Labor stakeholders at the returns But seen to

some over I call to the turn Now final remarks. for DJ will

Daniel Busch

an InvenTrust million impressive the year Christy. October share. shares repurchasing $XXX team at of of $XX last listing achievements. company of Thanks, per has since The array These include, completed

in our inaugural assets repurchase our an Moving closer and value placement stakeholders. Colorado acquiring well our a our the publishing diversify executing our institutional private two as Fitch and has Texas, Sun our in grade of Ratings, to from our by to accomplishments, XX%. to portfolio strategy and team program and bring will of to structure, program, million moved share in strive investment core assets. These Putting inclusion receiving on rating a motivated and ownership is growth our $XXX Austin, debt to InvenTrust as million report. XXX% we by indices, ATM principles, ESG place continue $XXX inaugural fund Every selling numerous to our capital day, closer Belt

focused also We the and to line an our Sun maintain cash be for our sustainable It'd and open new in this flow attractive continue continue for future. Belt prepared the questions. simple will investment that Operator, concludes should current strategy our shareholders. Please deliver growth remarks. to

Operator

from Floris and Point. and Thank Dijkum answer gentlemen, you. [Operator Ladies at First begin comes Compass van now question ahead. the we question go session. Instructions] Please will

Floris van Dijkum

taking Good question. guys. Thanks morning, my for

a hasn't going much that So, leasing already. leased sort on comments I had portfolio would get which the we well? the on forward the push pretty to refurbishment? elevated and thus mean? levels. were get is occupancies, and And that partly anyway, expect And How much allow on, for love view in you that that a also, question how can in of of obviously, to as your levels occupancies or space the presumably can your you your occupancies, mix? Or view? Or can we're well? more Is is your occupancy And rents I requires at you want what sense more saw does your costs that the as optimism that I push leasing would to due increase just unprecedented to record are more that for also quarter. something that before been

Daniel Busch

Good No, this DJ. Floris, it's observation. morning. an Hey, is important obviously

that make the else. space as occupancy putting tailwind we're a to than I power. not of past peak back sense been we your to vacant. about think may is has do has want something time it's just have already interesting success we Because leasing that come areas. struggled that getting I you being whether of on suboptimal occupancy actually those point. on get pre alone think leased a much getting in costs areas the We're it it think period an leasing been issue think past we're that's we having or space our to us. have that if too that can capital location levels, close in certainly higher. bit in past, actually we're careful struggled mentioned We're pricing the sure more past, and our think of to mix that. I that more in to on peers levels, be point costs, think but that's maybe And trying little much case in the a And hit We in I which do a centers that or long pandemic a push cautious of some not tremendous occupancy

we're a a balance to we but sure Certainly, lack cautious, not the will tick the far to tenants as those occupancy as as from us space sure that So expect year make investing are higher. been last to current that territory the the backdrop, boon we're huge base with of in in obviously interim. in the taking successful, continue actually capital for more only unprecedented I'm Obviously, do some for in bankruptcies. economic it's to those not that's forever, more struggled the perspective, being through that in well. also that a rent past but We are be

Floris van Dijkum

if to get being predominantly I'd Sun additional comments your market. the can obviously, DJ. biggest exposures. Maybe with up love on And Thanks, question. Belt. follow your market I an you're Austin

You assets think Do some compared and Are that? as markets maybe just in I compressed And second about Dallas which more those market? market venture you a in from gotten your lot joint excited Austin attention you about How clearly, at about more cap has in you investors deploying is the -- Mound are market? of largest that really capital bought a have or Dallas? rates market? look hesitant And like in Are and Austin in an you and you do Flower had Atlanta, as asset.

Daniel Busch

Yes, question. it's a good

I couple reasons. holistic. markets our a all approach of more we bit -- Dallas, little think of Obviously, mentioned, the a three Atlanta, and it's you is But like that different for Austin.

triangle that different lack perspective. is we the spectrum bit is Those the Houston want doesn't build. about supply that some word, dynamics Dallas from the total that we when And like it a in what continue in little [ph] are have. certainly Those, the a just and we in very expect on invest we of acquisition out to obviously to point perspective, dynamics other central to love or seeing or to excited as we're where a which From to to Landing. me, goes in Austin the we on be lower market, think and that, a same better the than have in those Bay bit the level, parts we only markets in not a markets. little little assets are of North going would of underwriting, we nimbyism west seen have, I closer exciting obviously the then because of the but word we've easier more need it been maybe get I our and for Austin, Carolinas, demand have even, And Austin in and of ground, are perspective, Atlanta are to to to the and returns Houston places that there. that assets Atlanta. prospects equally or of Florida dynamics bit maybe or some get the peers we where Carolina the our even But and about lack a guess, investment end excuse Dallas the from dynamics, and of think growth well, of further concentration our but a many to on

Floris van Dijkum

the to is, cap up stock are maybe market, everything And in as terms repriced has rates, rates rates the of have view another increase. cap The certainly significantly. gone market going interest well, if

expect you in how whole -- most We year. acquisitions markets. of of your have and changed people on investments? for direct lot occur underwriting criteria are the this that to a But How you later evidence yet haven't seen that

Daniel Busch

on already continues in the core just, usually of think our is whole I I that at, Because they a obviously, centers your sheet, don't lot we to it's in is balance seen point, not financing. lot looking our that core And what in it's to and mentioned be the current movement. stuff of were to remarks, more discipline. A as pipeline of bought dependent -- in. markets sticky on be pricing. pretty secured prepared the grocery highly can we're just most seen haven't grocery that due they're we've And

power larger on space, that dependent moved think more. more is a the I the the in move if assets, and market, perhaps think center has probably bit little bit I mortgage a may little

a would We cools rates just months. we but bit to that a off we agree okay. down that, observations sentiment that's seen more haven't Which been with a we've over haven't from had in that last could the yet. I Obviously, seen fantastic XX we bit, acquisitions. values is would a up expect I And our our run disciplined in if cap same, in pullback. and why XX But the little your little

Floris van Dijkum

for Thanks, DJ. it me. That's

Daniel Busch

Thank you, Floris..

Operator

Thank Schmidt you. go line your ahead. America. Craig is from Craig, comes [Operator Instructions] Next of at Please open. question Bank

to may please You this question. proceed. time, At questions. there the your be appear other turn Craig over. Schmidt back will I conference no with proceed

Daniel Busch

Thank everyone you Have day. coming the in with great your And InvenTrust. over look rest forward for Thank to we a of many for you, your us. of months. you joining interest speaking

Operator

rest gentlemen, call you We of your day. and for ask this today. and you your participating concludes we that Ladies lines. for please thank conference disconnect Enjoy your the

InvenTrust Properties (IVT) 2 Aug 222022 Q2 Earnings call transcript