InvenTrust Properties Corp. Q4 FY2025 earnings call

• 2025 was an exceptional year with same property NOI growing 5.3% for the second straight year above 5% and fifth consecutive year over 4%.
• Completed sale of five California assets and redeployed capital into Sunbelt markets, acquiring 10 properties totaling over $460 million gross acquisitions in 2025.
• Internal investments in portfolio through remerchandising, repositioning anchor space, and adding outparcels, expected to contribute 50-100 basis points of incremental NOI growth annually over the next couple of years.
• Retail landscape showed resilience with store closures increasing but new retail construction at multi-decade lows. Leasing teams performed well with strong demand for grocery, health and wellness, etc.
• Added two high-quality assets in Q4: Mesa Shores in Mesa, Arizona, and Daniel's Marketplace in Fort Myers, Florida, aligning with Sunbelt necessity-based strategy.

For the full year, same property NOI totaled $171 million, representing a 5.3% growth. NAREIT FFO finished the year at $1.89 per share, a 6.2% year-over-year increase. The company completed the sale of five California assets and acquired 10 properties totaling more than $460 million of gross acquisitions during 2025, with two properties acquired in the fourth quarter. Revenue contribution from product segments is primarily from retail properties, with same property NOI being a key driver.

• Full-year same property NOI growth expected in the range of 3.25% to 4.25%.
• NAREIT FFO guidance is $1.97 to $2.03 per share, representing a 5.8% increase at the midpoint compared to 2025.
• Core FFO guidance is $1.91 to $1.95 per share, a 5.5% increase at the midpoint year over year.
• Net investment activity of approximately $300 million expected.
• Interest rate on $200 million term loan swaps reset from ~2.7% to 4.5% creating a modest headwind to FFO for the last three months of the year.

• Market competition in the acquisition space, making it competitive to find suitable properties.
• Interest rate impacts on FFO due to the term loan swap reset.
• Credit quality changes that could affect bad debt reserves and overall financial performance.
• Operational challenges with redevelopment projects, such as the time and complexity involved in projects like the Gateway Market Center redevelopment.

Q: Could you talk more about funding sources for $300 million net acquisition activity and debt type/pricing?

A: We have room on the balance sheet, may use line of credit more, and consider private placement or bank debt, with pricing around 125-150 basis points. Headwind from swap reset is ~1-1.5 pennies.

Q: On Amazon Go and Fresh closing stores, does it open opportunities for Whole Foods in your portfolio?

A: We are well-protected with Whole Foods in our portfolio, which operate exceptionally well and have high sales volumes. Amazon's lean into Whole Foods is positive for institutional quality shopping centers.

Q: About $300 million net acquisitions guide, talk about acquisition pipeline volume, pricing, and certainty of closing?

A: Almost half of $300 million net investment activity is under contract or ordered, with good visibility. Pipeline has exciting opportunities in Sunbelt markets, fitting criteria with high going-in yields and low to mid-sevens unlevered returns.

Q: On redevelopment pipeline, especially Gateway Market Center, how to think about activating future projects?

A: Gateway Market Center is a large opportunity for long-term reimagining, starting later this year and taking time to stabilize but will serve the submarket for decades once complete.

Q: On market competitiveness and pricing shift, your thoughts?

A: Competition feels consistent, depending on what comes to market. Off-market opportunities and repeat with sellers continue, pricing likely sticky, and private capital formation benefits retail longer term from valuation perspective.

Q: On exceeding same property NOI guidance high end, what's needed?

A: Exceeding high end would require no material credit loss and successful opening of projects earlier than expected Q: On market penetration and exposures, thoughts on smaller markets like Phoenix?

A: We like Sunbelt opportunities, using hub and spoke strategy with larger markets like Phoenix and smaller markets like Tucson/Flagstaff, finding opportunities that fit portfolio criteria Q: On unanchored strategy, your thoughts?

A: We look at unanchored opportunities, especially if complementary to existing portfolio, but prefer ones meeting market criteria, with anchor-owned grocers being acceptable as they don't change leasing dynamics much