IVT - Earnings call transcript Q3 2024 | InvenTrust Properties Corp.

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Operator

Thank you for standing by, and welcome to InvenTrust's Third Quarter 2024 Earnings Conference Call. My name is Elliot, and I'll 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 company's website at inventrustproperties.com. [Operator Instructions] Now I'd like to turn the call over to Mr. Dan Lombardo, Vice President of Investor Relations. sir. ahead, go Please

Dan Lombardo

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

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

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

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

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

Daniel Busch

end credit yet regarding for Thank our remarks third and good lie only private resulting you, prepared received placement debt everyone investment-grade leasing highlights joint regarding our and increase acquired the offering. another to million of results the company regarding us Christy NOI of share our portfolio above-average delivered color IVT has focused wholly-owned, quarter ahead I'm assets, commentary InvenTrust. including some executed opportunities in an 'XX, and venture, The Dan, the to being will above-sector going average that executed company guidance, Mike per the will listing its financial offering discuss some in has with provide completed rating provide our our results, morning today. including and XXXX efforts of that October FFO additional entire of our strategy. InvenTrust consolidation on and equity inaugural nearly to and fronts simple September growth, follow-on joining same-property growth, $XXX was and our a all in operations. Since

cash you listing. the follow-on time well extremely the of our roughly with of we of patient, going raised IPO deliver aligned shareholders. advantage put, recall, chose growth capital cost was did Therefore, in over estimated at average the Sun and public years, equity market X growth our period that market of backdrop our existing wait received a with the balance many may stronger to and not to was The the be the offering. equity be Simply a new through a equity opportunities. can to offering quarter Belt sheet, cost raise flow above-sector external As an company $XXX prove through both of took simple multiyear to by focused we our self-fund our not strategy capital low-levered growth improve. After during and million for and optimally

in the company the the Through quarter, the unsecured million equity the $XXX facility January following increased year credit our to coupled million. with million maturity we the of increased additional a while Wegman's-anchored property the million, by putting for guidance the Virginia, our of investment to second market, on net the the we raise of added Phoenix we're to additional our quarter, community have $XXX transaction end InvenTrust $XX.X end, on North market, addition In Richmond, capital in that capacity the improving accretive the on property $XXX offering, for accordingly XXXX. center, extending capital, of already million. and in to for equity its to we fresh in sheet, effectively nearly closed range an conservative and facility, MSA, on $XX million Due million. a front, work replenishing surrounding Marketplace, upsized balance the closed optimism Scottsdale manner. To to investment liquidity, quarter, an second our Subsequent to third $XXX the the to our increased $XXX the activity

same-property remained operations. and greater growth to move debt both a now quarter, growth we detail. are higher for rate over the from per single XX% to and results are of retention the better digits remains watermark the fueling operating that, new Moving rates XXXX. With to be retention year-over-year healthy will bad Internal for and Mike? than high going to the to during another Leased our occupancy high the XX%. Blended on setting once portfolio expected financial increase results. NOI driving share portfolio. basis, supported a Less growth and results efforts as turn with XXXX. to call up again in XXXX FFO climbed spreads the I'm by external in Mike sequentially discuss to both healthy across remarkably additional Strong

Michael Phillips

you, from $XX.X to rent increases year. driven the period DJ. the to increase of collections quarter-to-date of embedded were of months or months core in interest of increase same per over of year. Year-to-date, FFO first $X.XX for acquisitions approximately NOI XXX from Components which per lower an of to with NOI X.X% by same-property the $XXX.X Same-property X basis basis and $X.XX XXX increase was same FFO the year for quarter XXX Thank the expense $X.XX time was basis The grew by interest and growing third deemed XXXX. X.X% diluted share, million NOI of driven points $XX.X over primarily X.X% period first bumps. of last growth growing XXXX. NAREIT time income $X.XX. X.X% X FFO of approximately over quarter better $X.XX, was compared adding G&A are were of offset over quarter share the primarily last points XXX expense, for base the reimbursement points, rent contributed NOI revenues an the million, of million, same-property uncollectible Net points. Year-to-date, basis the by

InvenTrust's execute As strengthened DJ to long-term net a reloaded X.Xx capital on our and balance on the EBITDA discussed, trailing to to our and dropped us successful and strategy. is net basis. XX%, XX-month additional providing leverage our debt sheet, ratio flexibility raise adjusted capital

debt to paid of Our variable our average X% and off, $XX.X bringing our end years. in interest quarter was rate the maturity the weighted million rate weighted to average at X.X

is remaining XXX% fixed. Our debt now

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

is operating Due raising same-property year full to to to X%. guidance. company's the our this guidance for growth guidance Moving full range again we our fundamentals, new year quarter. XXXX The are strong X.XX% NOI

$X.XX assumptions NAREIT now share, and filed details to guidance call our Christy over discuss disclosure to provided FFO our to supplemental up $X.XX with share. Christy? our portfolio to I'm our is to guidance activity. turn the $X.XX is per per FFO yesterday. core And on in are year new $X.XX going Full guidance Our to that,

Christy David

Mike. Thanks,

Our in the and Sun portfolio positive space and the Belt the strip to continues markets. benefit to from growth the migration fundamentals in center

a our in reminder, Belt of the is of assets to XX% goal As ABR future. with getting generated Sun the XXX% from

for limited, increased remains supply demand Additionally, high-quality retail space. creating

creative find to ways plans, and our growth to new centers. struggle for continue retailers internal look location size to they As store to satisfy within the as their it relates space

demand conditions our portfolio ABR properties. occupancy All team allow into and increased InvenTrust at focused retailer to of these leasing the additional transforming remain on

For total basis lease at up quarter, high. XX%, ended the points ending last September, portfolio an our from in occupancy X and at months all-time XX

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

basis points coming next XXX million the equates online our signed-not-open additional of that is several $X.X about portfolio Our pipeline to into over quarters. income

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

the and have quarter, retention the and escalators X% rent XX% were we of comparable Ulta feet our with blended posted X.X%. were far include at higher. Year-to-date, over new for leasing Spreads was spreads leases this leases spreads Skechers. rate were of Tenants so our signed during signed renewals for of additional our of quarter For XXX The leasing year, stages blended embedded square renewals We and or X,XXX,XXX X.X%. comparable various in negotiation. pipeline XX.X%. XX.X% leases XX%,

will is XXX% in throughout offline the our you future. update for for anchor we projects opportunity to portfolio, and the like exist X portfolio and space only nearly retenanting be several occupancy being next redevelopment for focused redevelopment at opportunities and to on kept accretive our closing, These available these strategic remerchandising with tenants, weather years. In would Currently, an events. opportunity I executing on take recent

sustained minimal in safely. the fortunate are you aware, past storms and significant InvenTrust's had cleanup. of several debris was all Thankfully, made in it South the over assets many through we and that our affected only area IVT several storms hurricanes weeks. As the employees the damage have

support and you communities We to and help open remarks, needs their stand and that continue recover. Operator, and by to them aid prepared questions. provide concludes for our our tenants line the can

Operator

[Operator Instructions] America. Andrew comes of Bank First Reale question with from

Andrew Reale

acquisition Just one on opportunities. external and market the

potential has curious curious, the on of the election your any And rates a seeing? sellers? Just in issuance you're since reversal put opportunities if the equity of the view, in your damper stalled time number interest uncertainty external has also

Daniel Busch

Andrew. Thanks, Yes.

that's time. and Our that implied working for some guidance on we've you is been pipeline see in what acquisition the things quite

with standpoint. change to So from the of type the an seen much be looking in rates have given movements. product really, recent we're chasing haven't -- our impact currently didn't on the honest, had really certainly at, markets, interest hasn't we're reversal of acquisition what that an And we

with product in more pretty more that environment, But hit a the open and this well, to into is products to more why is would I to election, buyers back the which has speculation. market, that's traditionally the I it changes we're you made Going up after quiet. of also our we as little expectations. week or certainty, transaction the potential more types expect as that we've actually but it there's XXXX, relates the markets to said, which, what but to tends expect I of to that market seen types just back and saw healthy that a continue been going bit would next us, looking at,

Andrew Reale

tenants another home full-service would just one favorably, overall goods, curious if hobby, categories, about be Bad discretionary maybe your just trending for And Okay. could more and too. but me. debt a restaurants, talk bit been you

think you sales back pull those on do categories And spend? about curious are if up? continue renewals and on how how to consumers of Just discretionary some in holding traffic

Daniel Busch

think types points the quite you -- tend Anecdotally, our well. those portfolio, honestly, restaurants restaurants. restaurants, even banners change. seen to haven't value it full-service the lower had have very No, price do to even be I last they're we as middle of no that if impressive are stabilized There's tend -- of a kind a over that And in of couple much from footprints. years, whole it's are continue been a will, of of relates that question. if areas their if white service grow price Hobby, be types point, looking great still but many growth our to sales food pretty certainly have to -- doubt. The some tablecloth don't higher, we do of linen and even portfolio income of full-service, lot to to

that still chain have continues Fast that our most So do if going restaurants is in to a would portfolio, operations in because cost that we most still there And that's been category. space have in. the valuable team some has food, -- but the quite performers across restaurants tell some are ratios to capital -- space big, quite in be occupancy lower very demand quick healthy And that restaurant second-generation the service one portfolio. There's really well. of some franchises, and chains, there our doing better tends well. you that's struggled, it well-capitalized the

Operator

turn to Dori Wells We Fargo. with now Kesten

Dori Kesten

NOI your put have in started thoughts up you your adding same-store guardrails early A some have around to few that? any of interest peers Do 'XX to growth.

Daniel Busch

level. things the tried sustainable We growth couple noticed same-property but everything done try over one has last both that to we've And of team that, we Look, think consistent Christy's to that operations is drive and the question. a at Dori. the years in the tried model build of we're for we of where team importantly, cash one things Thanks we do a nice can is -- really the flow. most NOI, to

last that bad X will we I is, efforts changes debt, years. of debt, a cadence year. the Notwithstanding have in -- in material we more we're XX% expecting of leasing very and our tell maybe as -- So seen a next rate similar any run that seeing normalized type done we've or growth see bad nearly we're what but you

Dori Kesten

So with points? the current that like XX put basis normalized more closer Is do you portfolio, where to debt? bad that

Daniel Busch

to starting basis like Obviously, it. kind XX points not to much then we're benefiting adjustments of where benchmark But or the is out-of-period we our -- that as like Yes. anything that. the debt, and is XX market to peers. portfolio, conservative the continues be obviously, usually the in move we'll go This with basis best kind anchor from offset then as bad is always that we -- points of as is tend to to into accordingly. adjust prove reserve our the our is we'll we many year and -- of

Dori Kesten

your your your regarding an And there? aggregate value pipeline us where grown? And update has noncore assets, as acquisition of you Okay. widened give see you can then if has on the definition noncore

Daniel Busch

Yes, it's a good question.

right? anyone Those as is one exclusively accelerate assets, we we like is that -- better, noncore always markets sit the the in light ] and for-sellers in talked anchored we're we've Belt, one Joe's. is one when we couple in Trader of but capital. opportunities have that do only for InvenTrust, core not Sun when think fit are over that if anchored we're recycling. And there methodically asset Safeway, be just going right, of the in either. What it more a capital assets [ assets -- use certainly Maryland. the do not feel years for to for Belt noncore X are the I to north Sun we'll that by the to be else, recycle They'd mid-Atlantic properties of but the by in phenomenal is So InvenTrust looking in of about the things time being corridor, being next have those

As time. one that continue we and California is to really, consider things of one priced California. it way. a have market relates those our view It's and discussed always that really portfolio again, on still to we've over things a phenomenal being the it's California of we'll is strong that wider, presence. But

we that on just manner. where capital it can depends an So reallocate accretive in

Operator

Instructions] [Operator Street. now Green with to turn Daniel We Purpura

Daniel Purpura

expect environment any you The environment? Or recently. been to do you continuation strong this trends? changes these retail Have seen of has same

Daniel Busch

about the what -- What mean transaction the the as fundamentals? you market you by morning. far Daniel, As do retail by you -- or do mean good market? underlying Are talking

Daniel Purpura

that. for underlying The demand fundamentals, space, like things

Daniel Busch

No. Yes, yes.

time. be all-time quite lot in mean, the XX%. high the occupancy, the So show filled fall deals we're levels, -- out, we demand demand look, we're spaces occupancy in at, we of current additional we're to which obviously in even to relates haven't the occupancy an we it of is things that And but some points XXX-plus some past. there's had very actually I of something in haven't have occupancy for a do an and the up that of to going space because filling robust. is behind and have are level works Behind as leased at basis everything continues that now. at that in XX%, we Not

services. So my continues though due change it's categories. service category earlier across -- inflation. be for a care in bit there is a But little Perhaps To been be us, and of probably food comments, a to very of health continues has broad-based strong, to in slowdown the to even sales. some that strong

our a our small at small is anchor pretty in point. seeing both our which occupied we're shop So effectively shop space, broad-based in fully demand -- level this in and

Daniel Purpura

at this interest then or any convenience Curbline looking Got could more. you month, the I nonanchored centers going you. With of at centers? in one beginning any And public if ask had

Daniel Busch

Yes.

primarily our looking We have And has in what or end Look, that I guess centers. a a markets of as look if So consider right retail component, can centers. look unanchored market would the we guys handful the that already we -- bit you at get do to And all depends successful nonanchored the own in. grow markets just We're rents. in. rents to know what in couple for node market we a some power a the you we it retail way of a those what well. little we've in own you at trying formats. most foothold necessity-based And of we're growing that just we're they're in portfolio, across we're community agnostic. nonanchored on day, be more been able up -- what if a to and all But centers do property small

Operator

no have Busch further remarks. final so back to We for now questions, I'll hand any DJ

Daniel Busch

next us. in look day. you hopefully, guess, Thank I of a you, for then, We forward Las Until to month, great joining seeing, many everyone, Vegas. have

Operator

today's your Ladies now has participation. gentlemen, for call you concluded. and Thank

may You now lines. disconnect your

InvenTrust Properties (IVT) 30 Oct 242024 Q3 Earnings call transcript