IVT - Earnings call transcript Q2 2024 | InvenTrust Properties Corp.

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Operator

Good morning or good afternoon. Thank you for standing by, and welcome to InvenTrust Second Quarter 2020 Full Earnings Conference Call. My name is Adam, and I will be your conference call operator today.

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

Dan Lombardo

operator. thank our you you, for Thank Good attending call morning, today. everyone, and

Chief is Joining Christy Officer; Operating Heimberger, Busch, me InvenTrust Dave Chief Mike team and Investment from President Chief the David, and Chief Executive Officer; Financial Officer; Phillips, DJ Officer.

team's for questions. prepared we open will remarks, the Following up lines the

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

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

Daniel Busch

at centered Mike I'm our operating good many that Sunbelt the over estate which strategy and several focused deliver consumers touch in same. leasing the tenant-related more to in to precise. while communities building rents This morning the to regarding start which are construction which Sunbelt fallout near year. change this. finished of shop been and above continues quarter news detail last the were basis up net flow elevated. Dan, structure benefit will discuss InvenTrust are often. XX% and due guidance bankruptcies around low guidance This trends [upon] that on us growth owning is a the but to where stayed the the quarters XX% permanent XXXX. you, color ability predicted XX.X%, allows blocks and end leasing additional generated. simply this going where estate continues U.S. operating strategy. beginning but financial retail rent Christy consistent, ratio and which closures model build-out levered regarding Small free frequency achieved achieving costs a tenant The our our put, joining basis. will of driving remain in a have to on the continues remains the centers, the flow InvenTrust our us and will than to visits to mix important, capital and our fundamentals and only income drivers is portfolio gives fundamentals The quarter due and initial good is not more term. opportunity the momentum serve is sustainable retail open-air to to to higher our from provide in prepared high supporting be commencement with real merchandise in flow experiencing guidance, retail some pushing Necessity-based Thank the essential centers is and provide shortly, working. and cash in with Blended at operating our tenant some efforts. double the demand be higher, ramp-ups with turn, after sequentially XXXX we our put accelerate I'm work the More occupancy Mike real tenant commentary remarkably out, arises. of the talk year that XX% in of to in at environment structurally opportunity very also an operating briefly year to and cash retail annual place remain grow about upside keeping is regarding today. remained and loss health remarks perspective our occupancy tenants is hybrid team Leased of environment of additive tenant means centers The capital both exclusively primary in of second to quicker-than-expected fallout our surprise shift raise. our to a continues point we for team is digits increase the preserves Equally retention our in our and an from spreads low the going cash that retail the results cyclical year-over-year our new thoughts on everyone -- results, greater high-level and but open-air the and the lower to dates one strategy long watermark rather less our of InvenTrust more to of cornerstone seeing tailwinds. of year region in XXX as was the the the medium when

activity our on leasing robust. troubled well more Kristi deal XXXX Our watch list the effectively centers and provide is XXXX underway. and continues her remarks. our color demand of extremely for short efforts to is at will is complete tenants activity leasing space be in

McGuire to the square that fast-growing center and add deals investment have MSA, the We we center have our in additional own. and already small adjacent directly merchandise public-anchored suburb The best GLA to have net second to additive a better us Orlando Orlando. the of appropriately prospects retail nodes the one in small demand. plantation allow found the The but our center a allows regarding one transaction to a that tenant significant conservative such is fantastic that been GLA which tremendous We to center property certainly in will control We foot been shop us Grove, to added has of activity, XX,XXX year portfolio. this acquired Groves, quarter.

transaction Our going But balance in growth being sheet in one a is to ready when our markets, turn the the most and team Mike with discuss to enticing. financial accelerate right. environment to healthy is our that, With our sector over the the Mike? are I'm external remains results. patient growth still of conservative opportunities time at the call to

Michael Phillips

our year range. as This position balance as the DJ. strong the you, well and great will Thank full our sheet then investment for increase our by morning, guidance will then results I review year-to-date, discuss XXXX I reviewing quarter to

the second were primarily Components primarily per driven months was was to income acquisitions NOI year. the year expense growing the flexible percentage The basis the an embedded $X.XX year. same-property months $X.XX X% second of a onetime same compared increases approximately of strong spreads quarter half our debt. basis our our for quarter June for NOI XXXX. same-property the continues offset a of growth line million, the by liquidity, and well $XX.X or NOI Nareit are share from on well million X.X% of rent compared balance sheet, from and basis quarter revenues $XX.X over a for and net slightly reimbursement second rent termination driven FFO million quarter-to-date of to This Core deemed to maintain last including quarter points. the million, XX first in was X X InvenTrust expense the of We available first FFO $XXX revolving over XX fee last Our this million quarter and credit. interest increase foundation points, from of capacity of by ending finished lower NOI slightly the as to of of full time by to execute was uncollectible for of Year-to-date, as strategy. same-property as X.X% $XXX XXX with was XXX rate share, variable $XX.X growing over borrowing rents XXXX. providing grew bumps per of collections XXXX. a period FFO of X.X% by as the total on points, diluted $X.XX, offset long-term

leverage and ratio EBITDA debt a to basis. trailing X.Xx XX-month net net Our adjusted on was XX.X% is

weighted quarter X.X of interest a Our weighted maturity average with X.X% rate at ended years. the average

maturities Over we extension and XXXX. remaining debt our debt maturing option XX remain the X-year on in anticipate minimal, exercising our the months, next

increase Finally, we declared last an year. per X% $X.XX over annualized a dividend share, payment of

NOI Moving X.X%. with for the growth in outlook range for months guidance midpoint. of the remainder by X at same-property of we the Same basis guidance are to to results NOI XX year, expected growth as our the well to be XXXX X.X% now the property year is year full our the raising our points of as

share. to guidance $X.XX We also are Nareit to per increasing $X.XX FFO

$X.XX per to up Finally, moving core guidance we FFO to $X.XX are share.

in XX guidance, debt points been assumption to XX to As reserve bad has implied new same-property total NOI of our basis lowered revenue. our

are of portfolio disclosure yesterday. investment Christy call Full details provided our maintaining net discuss over in on And assumptions supplemental Finally, are guidance activity activity. that, turn as our to the DJ with mentioned, going filed guidance $XX we to I'm to our our million.

Christy David

convert leasing expand and national wellness discount our increased is quick service higher InvenTrust and rents health and portfolio to include centers. The footprint. Mike. Thanks, for occupancy Demand and for significant restaurants, team tenants coming continues regional from broad-based local, retailer equally to Categories demand their into space looking and tenants.

basis half first points year at last lease quarter. portfolio up occupancy total of from Our XX.X%, XX the the ended

anchor quarter occupancy an Our last ended space small occupancy and at shop XX.X%, from quarter, our increase of at XX.X%. leased points basis finished lease XX the

pipeline new team and open points our open decreased on paying [Signet] tenants to to the as basis focus Our getting XXX continues rent.

ABR XXXX. XX, June InvenTrust compared of As X.X% increase to $XX.XX, was of total an portfolio

were For the Renewals of the was for XX.X%. in enables of blended a tenants business the maintain eliminates costs. spreads the and to a we win-win InvenTrust, XX.X%, successful are year, for rate Spreads leasing first their and of XX%. both comparable our tenant new their location months relocation posted and leases it X continuity retention

X space to able leases renewals is feet leases higher. new pizza capital spaces stages with leasing for of achieve to XX% signed or Duck Furthermore, pipeline rent spend Year-to-date, InvenTrust quarter Donuts. various only a our with higher our Crunch is of to occupancy compared Mango, limited nearly of rental Fitness, to Jet available over in lease. XXX tenant. the and escalators X% embedded tenants Blue XXX,XXX for we signed the anchor While our left at Tenants a additional include as with negotiation. square portfolio XXX% have Currently, during rate

related at this activity mentioned, to point, DJ XXXX leasing As completed. is all

and it previously, true As years. to needs for supply new relates and in sector opening their supply the their conditions as space flexibility mentioned a tailwind challenge space. is ago of we few space may for a the the be retailers, reduces own will the additional our in This to have store landlords open growth This the needed is XXXX. discussions retail a and match the the just plans cases, leading reduced with some flexibility XXXX to available. short next schedule and by In capital to expenditures size lack rare several of cause and was the many to years

by be outpaced recent company if these will and as is MSA. health news all Furthermore, despite line Dallas properties the open rent we the I delinquencies government The do of transaction Moving is retailers closure assets final on of to list, With are as These uncertain. of will performing concludes good. still Three has to our that to at the discuss spending minimal. still year divested Store continue categories. list closing, questions. the that our list this conservative InvenTrust to centers have to were and diminished The that merger included financial when the approved. is is retail of the closures remain small. released Watch the reduced our the prepared very Kroger remarks, merger. Operator, Albertson in briefly more and a In condition bankruptcy stores years. CNS tenants, InvenTrust consumers merger been information risk properties out announcements strong on the compared for comes of that on monitor the changes. news can certain openings approval said, you federal want is prior additional

Operator

from comes Thank Wells question Fargo. Kesten you. [Operator first from instructions]. And our Dori

Unknown Analyst

for is Armstrong, Jack This on Dori.

likelihood seeing for acquisition of With the Can you've [Indiscernible] 'XX the front in line your to the your you're the with the you're year. net what acquisitions about talk guide completed acquisitions both of exceeding you guide? on date, you and

Daniel Busch

the Yes. question. Thanks for

you our activity. net we're As right mentioned, goal near of investment

expectations post get in to I our of of are think investment for flow calls, capital, to our -- on that the cash cost million past market I've a current mentioned based what guide of were the conditions of year. the is to expectations year our our we net $XX really couple the pipeline, on outset

changing reserve Now tell either we right, the right pipeline to will or obviously, remains quite I if market conditions arises. increase now, the with still decrease strong. you the opportunity that

has and capital -- certainly the -- of since obviously, of last improved since weeks the cost So last over quarter. and couple last

do we guidance to and the do adjust accretively add opportunities we'll accordingly. investment we our if so, can activity So we'll see where net portfolio,

and capital of On the little growth in fluid those we disposition expectations about looking about the think of those the assets markets. bit West we're gotten some on are either talked our to we We've things we always in can as better out talked opportunities we always opportunities where rotate assets at ongoing. region, our and of sources a or the Coast with assets and potential side, -- have Mid-Atlantic

Unknown Analyst

I if quick follow-up. one ask can And just

You us your QX's Can share $XX hand. you you're cash as fund thinking with how a today to equity funded on around acquisitions further a acquisitions? remind means about

Daniel Busch

good one we on helped potential we general, accretive sure across is there's that it decide obviously, question. been of been some more that there's in interest as if bit. as to obviously, we our value -- to at probably sources to to It's be a sector. backdrop we in the it capital when run and way than of it's consider additive and And use we capital needs the Equity recently. movements but the a when an then rates Obviously, basis the something In always nice news look structure. has do equity, a little we're same going on do do make was, shareholders. attractive Yes, our

Operator

question Jeff Bank Spector of comes The from from America. next

Unknown Analyst

Jeff. for Andrew on Real is This

just to of implies to the Can Just first, behind some year. X.X%. see you the guidance we'll range raised NOI X.X% into you new SS of what's The that acceleration? half growth acceleration back discuss

Daniel Busch

Yes. take you to Christy, want do that?

Christy David

Sure.

rent leasing I that across and continue acceleration additional think half we have open activities we we've online been the you're to some been back able of coming for the of to that do right able that year based to of and complete [Indiscernible] and the online portfolio for the see as that beyond as continue to that reduce we other this to able the really have on is the been will bring to well And expenses. that rest year. going

Unknown Analyst

the can up just Is Okay. way open And commencement. maybe to [SIMO] is shop then note, the come occupancy follow the you some a how bit levels? guess that to on into of any XX? these from current to timing have when the And year does online just of and on rest going that quantify kind of through there of run I much room maybe

Michael Phillips

Yes, Mike. can is This that. I take

will XX% next pipeline, by pen forecast [Sino] of the way about this end our be So year. that the is end XXX% of now the year of then kind online the should come of and seeing right we're in through

we at to our As far we occupancy, look can year. an of the the end high kind now get forecast by way is right we as the all-time of back think

So we that. think to XXX points have about or run basis we so on

Daniel Busch

revenue. total [Indiscernible] active the or represents And -- underway. think, X% us we thing confidence additional follow year then right negotiations have beyond, around thing moving and open next X% up that well exciting only And I is, the visibility obviously, pipeline, gives an and even of the I in into Andrew, would that the

turnover we the and talked that higher, see So to kind occupancy in like we've normalized any opportunities to certainly that portfolio. of enough robust would withstand tenant continue about, notwithstanding really move

Operator

from comes next Paulina Street. from The question Rojas Green

Paulina Rojas Schmidt

peers [Indiscernible]. your of some So have

of rates declared Some your cap not your have seeing the compressing merger of at continuation margin. sorry, -- have a as what of some more changing. peers, have with they others mentioned been much environment And

the based last to months happened rates you on cap of your So has say what in experience? would couple

Daniel Busch

we've we would lot mean, a I it but well. probably get cap -- I it's Arizona. aggressive only the be we're meaningful movement a the say as much would as think an say wouldn't also way I rates environment. in they've Paulina, side on Texas other markets say whole would extremely continue that which see invest been and I to and you I'm buy a -- of and didn't seen in we've sticky markets more -- actively question. I it that as to there to the to looking expect certainly the the the speaking compression, great it to which activity been we where in active. on in Yes, is relates I Southeast

pick But So one kind costs as there opportunities this say not to movement new financing getting remained months spots way do have against seen imagine the we're could as be I well, could really because even in going as market more more follows or certainly think we're and secured we mortgage those opportunities that look for our pricing last is think competitive. And even it's XX wouldn't be I to disciplined you of the the call, moved -- -- a if it's underwrite that and it we business, that have as competitive, when prudent other but us. probably we open much there I some made been. and a we've in compression. that has do meaningful

Paulina Rojas Schmidt

then have acquire of you considering or if the capital portfolio and Sunbelt your go business through to cost acquisition committed of good you. to but exposure wouldn't? was are such Will you outside up material route you it. the the had the the offered question. Sunbelt, you a of you so found very story? [Indiscernible] that opportunity scale that How to Thank picture you your And big And

Daniel Busch

And So very -- obviously, think, sectors I I it's is to a one few size this and us certainly. good will the is there and exclusivity our makes on all estate across in meaningful certainly very Sunbelt, question. things in look, the of benefits other business, real committed we're in retail strategy, scale our that unique. say

most center quality I are in open-air our portfolios. operators, REITs phenomenal think sector shopping institutional

-- compete for an business value-accretive that portfolio is for So we that, strategy if would focused from factor to are scale market the we capital InvenTrust a exclusivity case accretive this to -- a able from differentiating investors' we scope perspective. differentiating because Having to said which in and it factor. companies way, of that our and from Sunbelt like otherwise, in the start take hope away not our that would look you other lose on

has strategy I'll it say we shareholders does, current believe but be much received. So well do and a say as never case very is resonate the compelling with to never, as which

Operator

have We further questions. no

the hand I'll the management any remarks. back So for call to concluding team

Daniel Busch

many for we you Thank us you, forward of get We great seeing conferences joining everyone, fall. into to Thanks, and have at look the today. a once day.

Operator

Thank This for very concludes today's call. your you much attendance.

lines. may now disconnect your You

InvenTrust Properties (IVT) 1 Aug 242024 Q2 Earnings call transcript