Inventrust Properties Corp (IVT) 2023 Q4 法說會逐字稿

Thank you for standing by, and welcome to InvenTrust fourth quarter 2023 earnings conference call. My name is Beijing 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 the Company's website at event Trust properties.com. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star followed by one on your telephone. I'd now like to turn the call over to Mr. Dan Bodner, Vice President of Investor Relations. Please go ahead.

感謝您的耐心等待，歡迎參加 InvenTrust 2023 年第四季財報電話會議。我叫北京，今天我將擔任您的電話會議接線生。在我們開始之前，我想提醒我們的聽眾，今天的演示正在錄製中，並將在公司網站的投資者部分（活動 Trustproperties.com）上提供重播。在通話的演示部分，所有線路將被靜音，最後有機會提問和回答。如果您想提問，請在電話上按星號，然後再按一個。我現在想將電話轉給投資者關係副總裁 Dan Bodner 先生。請繼續。

Thank you, operator. Good morning, everyone, and thank you for attending our call today. Joining me from the InvenTrust team is Dj Busch, President and Chief Executive Officer, Mike Phillips, Chief Financial Officer, Christy David, Chief Operating Officer, and Dave Heimberger, Chief Investment Officer. Following the team's prepared remarks, we will open the lines for questions.

謝謝你，接線生。大家早安，感謝您今天參加我們的電話會議。與我一起加入 InvenTrust 團隊的還有總裁兼執行長 Dj Busch、財務長 Mike Phillips、營運長 Christy David 和首席投資長 Dave Heimberger。在團隊準備好發言後，我們將開始提問。

As a reminder, some of today's comments may contain forward-looking statements about the Company's views on the future of our business and financial performance, including forward-looking earnings guidance and future market conditions. These are based on management's current beliefs and expectations and are subject to various risks and uncertainties. Any forward-looking statements speak only as of today's date, and we assume no obligation to update any forward-looking statements made on today's call or that are in the quarterly financial supplemental or press release. In addition, we will also reference certain non-GAAP financial measures. The comparable GAAP financial measures are included in this quarter's earnings materials, which are posted on our Investor Relations website.

提醒一下，今天的一些評論可能包含有關公司對未來業務和財務表現的看法的前瞻性陳述，包括前瞻性盈利指導和未來市場狀況。這些基於管理層當前的信念和期望，並受到各種風險和不確定性的影響。任何前瞻性陳述僅代表今天的情況，我們不承擔更新今天電話會議上或季度財務補充或新聞稿中所做的任何前瞻性陳述的義務。此外，我們也將參考某些非公認會計準則財務指標。類似的公認會計準則財務指標包含在本季度的收益資料中，這些資料發佈在我們的投資者關係網站上。

With that, I will turn the call over to Dj.

這樣，我會將電話轉給 Dj。

Thanks, Dan, and good morning, everyone. Today. I'll start with a brief summary regarding the fourth quarter and the full year of 2023. Mike will provide an overview of our financial results and some color on our 2024 expectations, and Christian will conclude with some of our continued success on the operational front, 2023 was another excellent year for event trust performance that continues to demonstrate the strength and resiliency of our simple and focused strategy. It has been a little over two years since Inventor has introduced its portfolio and strategy to the public market in October of 21, which is to own and operate essential open-air retail centers exclusively in the Sunbelt region of the US while maintaining a simple and low levered capital structure and employ straightforward capital allocation plan in the two full years. Since joining the public market, the Company has grown Same property net operating income by an average of 4.8% per year above the narrow shopping center average. It's increased core FFO per share by 18%, again, well above the narrower each shopping center average included $240 million of net investment activity for a 10% expansion of the asset base. The strength in our underlying fundamentals is undoubtedly driven by the favorable demand drivers in the Sunbelt markets in which we operate and the generationally low amount of new retail construction to take demand dynamics a step further, nearly 85% of our properties are located in states that have disproportionately benefited from positive migration trends with Texas and Florida leading the way in spite of an uptick and some well-documented retail bankruptcies in 2023, our leasing velocity remains strong as we continue to push rents and lease up the minimal number of vacancies left in the portfolio. In fact, in the fourth quarter, we executed more new deals than in any quarter since 2019. As a result, leased occupancy continues to be near all-time highs at over 96%, primarily driven by the continued strength in our small-shop tenancy which again reached an all-time high of 92.5% and has increased sequentially for 11th consecutive quarters. Moreover, the underlying credit strength in predominately necessity-based offerings within our merchandise mix gives us confidence in our tenants' operating ability despite whatever economic disruptions may or may not unfold in the coming years.

謝謝丹，大家早安。今天。我首先對第四季和 2023 年全年進行簡要總結。Mike 將概述我們的財務業績，並對2024 年的預期進行一些闡述，Christian 將總結我們在營運方面的一些持續成功，2023 年是活動信託業績的又一個出色的一年，繼續展示了我們的實力和彈性我們簡單專注的策略。自Inventor於21日10月向公開市場推出其投資組合和策略以來，已經過去了兩年多的時間，該策略旨在僅在美國陽光地帶擁有並經營重要的露天零售中心，同時保持簡單和低槓桿的資本結構，並在兩年內採用簡單的資本配置計劃。自加入公開市場以來，該公司的同一財產淨營業收入平均每年增長 4.8%，高於狹義購物中心的平均水平。每股核心 FFO 再次增加了 18%，遠高於每個購物中心的較小平均水平，其中包括 2.4 億美元的淨投資活動，資產基礎擴大了 10%。我們基本面的強勁無疑是由我們經營所在的陽光地帶市場的有利需求驅動因素以及新零售建設的代際低數量推動的，以進一步推動需求動態，我們近 85% 的房產位於以下州：儘管2023年移民數量有所上升且出現了一些有據可查的零售破產案，但我們仍不成比例地受益於積極的移民趨勢，德克薩斯州和佛羅裡達州處於領先地位，但我們的租賃速度仍然強勁，因為我們繼續推高租金並出租了2023 年剩餘的最低數量的空缺。投資組合。事實上，第四季度我們執行的新交易比 2019 年以來任何季度都多。因此，租賃入住率繼續接近歷史最高水平，超過 96%，這主要是由於我們的小型商店租賃持續強勁，再次達到 92.5% 的歷史最高水平，並連續 11 個季度連續增長。此外，我們的商品組合中主要以必需品為基礎的產品的潛在信用實力使我們對租戶的經營能力充滿信心，無論未來幾年可能會或可能不會出現經濟混亂。

As indicated in our 2024 guidance, the favorable trends within our business are expected to more than offset some of the downtime related to the bankruptcies noted earlier in normal cycle within our business and anchor leasing efforts today will be sizable contributors for continued growth beyond 2024.

正如我們在2024 年指引中指出的那樣，我們業務中的有利趨勢預計將足以抵消我們業務正常週期中早些時候提到的破產相關的一些停機時間，而今天的主力租賃工作將為2024 年之後的持續成長做出巨大貢獻。

On the capital allocation front, we remain selective regarding new acquisitions. We continue to carefully monitor our cost of capital in relation to private market values, and we'll continue to be disciplined as we look to grow the portfolio during the quarter, we did raise a modest amount of equity through our ATM program for the first time since becoming a publicly traded company. This subtle yet important milestone displays yet another avenue for inventors to raise capital if and when proceeds can be used in a value accretive manner.

在資本配置方面，我們對新收購仍保持選擇性。我們將繼續仔細監控與私募市場價值相關的資本成本，並且當我們希望在本季度擴大投資組合時，我們將繼續遵守紀律，我們確實透過 ATM 計劃首次籌集了適量的股本成為上市公司以來的時間。這個微妙但重要的里程碑為發明者提供了籌集資金的另一種途徑，如果收益可以以增值方式使用的話。

Our balance sheet continues to be the core strength of the Company sector, low leverage levels and de minimus new-term maturities, put inventories in an enviable position as we seek new opportunities for growth. On that note, the Company did acquire grocery-anchored centers subsequent to the quarter and in Chandler, Arizona. This marks and Ventas first property in the Phoenix MSA, and we're excited to expand our footprint in a market that exhibits many of the favorable demographic drivers we see in the rest of our Sunbelt markets. Our core operations coupled by selective external growth opportunities like the one just described is the precise recipe on how we expect to deliver sustainable cash flow growth year in and year out, which should translate into superior total returns for our stakeholders.

我們的資產負債表仍然是公司部門的核心優勢，低槓桿水平和極低的新期限，使庫存在我們尋求新的成長機會時處於令人羨慕的位置。在這一點上，該公司確實在本季度後收購了位於亞利桑那州錢德勒的雜貨中心。這標誌著 Ventas 在鳳凰城 MSA 的第一個房產，我們很高興能夠擴大我們在這個市場的足跡，該市場展示了我們在陽光地帶其他市場中看到的許多有利的人口驅動因素。我們的核心業務加上剛剛描述的選擇性外部成長機會，是我們期望如何年復一年實現永續現金流成長的精確秘訣，這應該轉化為我們的利害關係人的卓越總回報。

With that, I'll turn the call over to Mike to discuss our financial results.

接下來，我會將電話轉給麥克，討論我們的財務表現。

Thank you, DJ, and good morning, everyone. I will start by taking you through our fourth quarter and full year financial highlights, then I will discuss the condition of our balance sheet and conclude with our 2024 guidance to start a real FFO was $30.8 million or $0.45 per diluted share for the three months ended December 31st, 2023.

謝謝你，DJ，大家早安。我將首先向您介紹我們第四季度和全年的財務亮點，然後我將討論我們的資產負債表狀況，並以我們的2024 年指南結束，以啟動真正的FFO，截至三個月內為3080萬美元或稀釋後每股0.45 美元2023 年 12 月 31 日。

Full year. Indeed, FFO was 115.5 million or $1.70 per diluted share. The increases were primarily driven by NOI growth. The acquisition of the remaining 45% of our joint venture, higher interest income and higher than anticipated nonrecurring income from nonoperating activities. These items were offset partially by higher interest expense for core FFO in the Trust's fourth quarter results were 27.8 million or $0.41 per diluted share, an increase of 21% over fourth quarter of 2022. Full year results were $111.9 million or $1.65 per diluted share, an increase of 5% over the previous year. Fourth quarter same-property NOI grew at 6.4% over the same quarter in 2022. Drivers of NOI growth for the quarter were base rent of 260 basis points. Net expense reimbursements of 420 basis points, ancillary and percentage rents of 100 basis points and partially offset by 100 basis points of revenues deemed uncollectible. Full year same property NOI grew at 4.9%, driven primarily by base rent growth of 380 basis points. Net expense reimbursements of 190 basis points offset by 40 basis points from revenues deemed uncollectible and a 60 basis point headwind from out-of-period rent collected in 2022.

全年。事實上，FFO 為 1.155 億美元，即稀釋後每股 1.70 美元。這些成長主要是由 NOI 成長所推動的。收購我們合資企業剩餘45%的股份，利息收入和非經營活動非經常性收入均高於預期。這些項目被核心 FFO 較高的利息支出部分抵消，該信託第四季度的業績為 2,780 萬美元，即稀釋後每股 0.41 美元，比 2022 年第四季度增長 21%。全年業績為 1.119 億美元，即稀釋後每股收益 1.65 美元，比上年增長 5%。同季度同物業 NOI 較 2022 年同季成長 6.4%。本季 NOI 成長的推動因素是 260 個基點的基本租金。淨費用報銷為 420 個基點，輔助租金和百分比租金為 100 個基點，並被視為無法收回的收入的 100 個基點部分抵銷。全年相同房產 NOI 成長 4.9%，主要受到基本租金成長 380 個基點的推動。190 個基點的淨費用報銷抵銷了被視為無法收回的收入的 40 個基點，以及 2022 年收取的期外租金的 60 個基點的逆風。

Our balance sheet remains well positioned with 446 million of total liquidity, including a full 350 million of borrowing capacity available on our revolving line of credit. Net leverage ratio is 27%, and our net debt to adjusted EBITDA is 4.9 times on a trailing 12 month basis. Our weighted average interest rate ended the year at 4.3% with a weighted average maturity of four years. As a reminder, in October, we extended the maturity on our cross-collateralized pool loan by executing one of its two one-year extension options. In December, we paid down 20 million of debt, reducing our variable rate debt exposure to 9%. As BJ mentioned, at the end of 2023, we raised 5.4 million of net proceeds through the issuance of approximately 208,000 shares on the open market at a weighted average price of $26.13. In the fourth quarter, we declared a dividend payment of $0.215 per share. And as you saw in our press release yesterday, the Board also announced another 5% increase in our dividend, beginning with our April 2024 payment. This brings our annualized dividend to $0.905 per share.

我們的資產負債表仍然處於良好狀態，總流動資金為 4.46 億美元，其中包括我們的循環信貸額度上可用的 3.5 億美元借款能力。淨槓桿率為 27%，過去 12 個月的淨負債與調整後 EBITDA 比率為 4.9 倍。年底，我們的加權平均利率為 4.3%，加權平均期限為四年。提醒一下，十月份，我們透過執行兩個一年期延期選項之一來延長交叉抵押池貸款的期限。12 月，我們償還了 2,000 萬美元的債務，將可變利率債務風險敞口降低至 9%。正如 BJ 所提到的，截至 2023 年底，我們透過在公開市場發行約 208,000 股股票，加權平均價格為 26.13 美元，籌集了 540 萬股淨收益。第四季度，我們宣布派發每股 0.215 美元的股息。正如您在昨天的新聞稿中看到的那樣，董事會還宣布從 2024 年 4 月的付款開始，我們的股息將再增加 5%。這使我們的年化股息達到每股 0.905 美元。

I will conclude my remarks by discussing our initial 2024 guidance building on our strong 2023 results. We expect Naveed FFO to be between $1.69 and $1.75 per share. We are setting a guidance range of $1.66 to $1.70 per share for core FFO. Components of FFO growth includes same property NOI and acquisitions, which is offset by higher G&A, increased interest expense and less interest income. Finally, we expect same-property NOI growth to be in the range of 2.25% to 3.25%. Our same-property NOI guidance range assumes a bad debt reserve of 50 to 100 basis points of total revenue growth for same property NOI is primarily driven by base rent, including 150 basis points coming from contractual rent bumps. Our full year guidance assumptions are provided in our supplemental disclosure filed yesterday.

我將透過討論基於 2023 年強勁業績的初步 2024 年指導來結束我的演講。我們預計 Naveed FFO 每股價格在 1.69 美元至 1.75 美元之間。我們為核心 FFO 設定每股 1.66 美元至 1.70 美元的指導範圍。FFO 成長的組成部分包括相同財產 NOI 和收購，這被較高的一般管理費用、增加的利息支出和減少的利息收入所抵消。最後，我們預計同物業 NOI 成長率將在 2.25% 至 3.25% 之間。我們的同一房產 NOI 指導範圍假設壞帳準備金佔同一房產 NOI 總收入成長的 50 至 100 個基點，主要由基本租金驅動，其中包括來自合約租金上漲的 150 個基點。我們的全年指導假設已在昨天提交的補充披露中提供。

And with that, I'm going to turn the call over to Kristie to discuss our portfolio activity.

接下來，我將把電話轉給克里斯蒂，討論我們的作品集活動。

Thanks, Mike. Let me begin by reemphasizing DJ's earlier remarks. The leasing momentum we have and continued to experience is driven by limited new supply and the scarcity of premium retail space, we believe limited new supply for the strip center space across the country and in particular, the Sunbelt will be far below historical averages for several years to come.

謝謝，麥克。首先讓我再次強調 DJ 早些時候的言論。我們已經並將繼續經歷的租賃勢頭是由有限的新增供應和優質零售空間的稀缺推動的，我們相信全國範圍內的地帶中心空間的新增供應有限，特別是陽光地帶將遠低於幾個國家的歷史平均值未來幾年。

Keeping premium retail space in high demand. The team is able to capitalize on these market dynamics by increasing rental rates and remerchandising with stronger credit tenants at our centers.

維持優質零售空間的高需求。該團隊能夠透過提高租金率以及在我們的中心與信用更強的租戶進行再銷售來利用這些市場動態。

The fourth quarter of 2023 was one of the strongest and most active in recent years, we signed 86 leases for over 550,000 square feet. Part of this activity included the signing of two former Bed Bath & Beyond spaces, one with PGA superstore in Makita, California and the other with Nordstrom Rack in Charlotte, North Carolina. These outstanding tenants will be additive to the tenant mix and customer experience at each of these centers. We are projecting these tenants to open their stores sometime in the next 12 to 18 months with sizable rent spreads of over 30%. We have two remaining Bed Bath & Beyond spaces that each have received multiple LOIs. The team is actively assessing the best tenants for each asset and we'll proceed to lease execution during the quarter. We also secured several other leases with tenants, including Yard House, Old Navy and BJ's Brewhouse. All this activity increased our total portfolio leased occupancy to 96.2%, up 110 basis points from last quarter. Reapproach the portfolio's pace, our anchor space leased occupancy finished at 98.2%, an increase of 160 basis points from last quarter. And our small-shop lease occupancy increased to 92.5%, a new high point for our portfolio as of December 31st, and Ventas total portfolio ABR is $19.48, an increase of 2.1% compared to 2022 for the quarter, we posted blended comparable lease spreads of 13.9%. Spreads for new leases were approximately 34%, with renewals nearing 8% for the quarter. Our retention rate remains at 90% as we continue to see tenants renew their existing leases at meaningful increases. One of our main focal points for 2024 will be to lease up the few remaining anchor spaces within our portfolio and have our localized experienced teams expeditiously work to ensure all the leasing activity in 2023 resulted in new tenants open and operating at our centers.

2023 年第四季是近年來最強勁、最活躍的季度之一，我們簽署了 86 份租約，面積超過 55 萬平方英尺。活動的一部分包括簽署兩個前 Bed Bath & Beyond 空間，一個與位於加州牧田的 PGA 超市合作，另一個與位於北卡羅來納州夏洛特的 Nordstrom Rack 合作。這些優秀的租戶將豐富每個中心的租戶組合和客戶體驗。我們預計這些租戶將在未來 12 至 18 個月內開設商店，租金漲幅將超過 30%。我們還有兩個剩餘的 Bed Bath & Beyond 空間，每個空間都收到了多個意向書。該團隊正在積極評估每項資產的最佳租戶，我們將在本季繼續執行租賃。我們還與租戶簽訂了其他幾項租約，包括 Yard House、Old Navy 和 BJ's Brewhouse。所有這些活動將我們的投資組合租賃總入住率提高至 96.2%，比上季成長 110 個基點。重新審視投資組合的步伐，我們的主力空間租賃率達到 98.2%，比上季成長 160 個基點。我們的小店租賃入住率增至92.5%，這是截至12 月31 日我們投資組合的新高點，Ventas 總投資組合ABR 為19.48 美元，該季度較2022 年增長2.1%，我們發布了混合可比租賃利差13.9%。本季新租約利差約 34%，續約利差接近 8%。我們的保留率保持在 90%，因為我們繼續看到租戶續簽現有租約並大幅增加。我們2024 年的主要重點之一將是租賃我們投資組合中剩餘的少數固定空間，並讓我們經驗豐富的本地團隊迅速開展工作，以確保2023 年的所有租賃活動都能吸引新租戶在我們的中心開業和運營。

Operator, that concludes our prepared remarks and you can open the line for questions.

接線員，我們準備好的發言到此結束，您可以撥打電話提問。

(Operator Instructions) Dori Kesten, Wells Fargo.

（操作員說明）Dori Kesten，富國銀行。

Good morning. You're $75 million in net investment activity this year, how much of that is in your sights, Abhay? And are you assuming some nonstandard asset sales within that?

早安.Abhay，今年您的淨投資活動為 7500 萬美元，您預計其中有多少？您是否假設其中有一些非標準資產出售？

Hey, Dori, this DJ. Good morning. Yes, so within the seven, the $75 million net investment assumption that's been built into the guidance. You can think about a couple of ways. One, obviously, we've already closed on 30 million of that in the first quarter. And then there's so there's very good visibility as it relates to the pipeline grow. Our pipeline tends to have a couple of hundred million dollars of deals that we're always looking at now because many of those, as you can imagine, pricing either gets away from us or under due diligence, we decide to move in a different direction. But certainly the acquisition pipeline feels better today than it would have last quarter. And I would suspect that that would continue through the year and I believe many of our peers are seeing the same type of visibility within their pipelines as well.

嘿，多麗，這位 DJ。早安.是的，因此在這七項投資中，指導方針中包含了 7,500 萬美元的淨投資假設。您可以考慮幾種方法。顯然，我們在第一季就已經完成了 3,000 萬筆訂單。然後，與管道增長相關的可見性非常好。我們的管道往往有數億美元的交易，我們現在一直在關注這些交易，因為正如你可以想像的那樣，其中許多交易的定價要么遠離我們，要么在盡職調查中，我們決定朝不同的方向前進。但毫無疑問，今天的收購管道感覺比上個季度好。我懷疑這種情況將持續一整年，我相信我們的許多同行也在他們的管道中看到了相同類型的可見性。

An important note on our net investment assumption is it's really just how we're seeing the market today and we will pivot depending on what our cost of capital looks like. So the $35 million obviously is predicated on the current pipeline where we believe we can buy it today. Making sure it's accretive to the business and we will accelerate that if the market conditions get better or are we perhaps can pull back as it relates to your question on non-Sun, but there are three assets that are considered outside of the Sunbelt, one being enrichment two in Maryland. Those assets are always candidates. Those are assets that we have said in the past that we would move along from if we found an accretive replacement for that for those for those for that capital, excuse me, and we will continue to do so so those the dispositions of those properties will just be predicated on how much we can do on the acquisition side.

關於我們的淨投資假設的一個重要說明是，這實際上就是我們對當今市場的看法，我們將根據我們的資本成本狀況進行調整。因此，3500 萬美元顯然是基於當前的管道，我們相信我們今天可以購買它。確保它對業務有增值作用，如果市場狀況好轉，我們將加快步伐，或者我們可能會撤回，因為這與您關於非陽光的問題有關，但有三種資產被考慮在陽光地帶之外，一是在馬裡蘭州進行濃縮二號。這些資產始終是候選資產。這些是我們過去說過的資產，如果我們找到一種增值替代品，我們將放棄這些資產，對不起，我們將繼續這樣做，以便這些財產的處置將只是取決於我們在收購方面能做多少事情。

And and I believe your floating exposure now stands around just under 10% of those swaps expired. Are you are you comfortable at that level throughout the year or should we expect some additional swaps?

而且我相信您的浮動敞口現在大約有不到 10% 的掉期已過期。您全年都在這個水平上感到滿意嗎？還是我們應該期待一些額外的交換？

We are and obviously we're monitoring the curve as everyone else is as we look through 2024, we did decide to pay down a little bit of debt with cash on hand at the end of last year to lower that, that exposure a little bit. I think 10% is a good number for us. It's a it's obviously if we can't find accretive opportunities in the aftermarket is not our first choice, but we will choose to chip away at would that have if rates move in a different direction than what we're expecting. And then we'll look to replace that with Permian debt when when when the markets are a little bit more accommodative. And we'll start to look at that probably in the second half of this year.

顯然，我們正在像其他人一樣監控曲線，展望 2024 年，我們確實決定在去年年底用手頭現金償還一點債務，以降低這一風險敞口。我認為 10% 對我們來說是一個不錯的數字。顯然，如果我們在售後市場找不到增值機會，這不是我們的第一選擇，但如果利率走勢與我們預期不同，我們將選擇削減這個機會。然後，當市場更加寬鬆時，我們將尋求用二疊紀債務取代它。我們可能會在今年下半年開始研究這個問題。

And just lastly, can you talk to the rationale behind the relatively small size of the ATM issuance in the quarter? I think you said the I mean the pricing was a quick accretive with the acquisition? Yes, just the 5 million sizing.

最後，您能談談本季 ATM 發行規模相對較小的原因嗎？我想你說的是我的意思是收購後定價迅速增加？是的，只有 500 萬尺寸。

Oh, yes, absolutely. We also are, as you know, obviously, one of the challenges with our with our one of the few challenges I would say is we did not issue equity when we decided to delist the company. So we didn't do a traditional IPO. So the $5 million of it as de minimus as it is, was important for us to show that we have we do have that access and it really just came down at the end of the at the end of the year. And when pricing, obviously, there was a lot of momentum in the repo market and we decided just to explore that avenue and we raised a little bit and that's something that we'll continue to do. If the price gets to a level that is acceptable for us and where we think we can put the proceeds, it will work in an accretive manner.

哦，是的，絕對是。如你所知，顯然我們也是我們面臨的挑戰之一，我想說的少數挑戰之一是，當我們決定將公司退市時，我們沒有發行股權。所以我們沒有進行傳統的首次公開募股。因此，這 500 萬美元雖然微乎其微，但對我們來說很重要，它表明我們確實擁有這種訪問權限，而且它確實在年底才下降。顯然，在定價時，回購市場有很大的動力，我們決定探索這一途徑，我們籌集了一點資金，這是我們將繼續做的事情。如果價格達到我們可以接受的水平，並且我們認為我們可以將收益投入其中，那麼它將以增值的方式發揮作用。

Thank you.

謝謝。

Thanks.

謝謝。

Jay Cohen, Bank of America.

傑伊·科恩，美國銀行。

Hi, good morning. It was good to see you guys close on and the center in Phoenix and enter that new market. Just curious on kind of the process you plan on and starting on just you know, how will you get familiar with that market and expanding your team there? Where's the opportunity to grow from there? And then if I might have missed it but if you could provide any details on pricing or the cap rate, that would be helpful.

早安.很高興看到你們靠近鳳凰城中心並進入這個新市場。只是對您計劃的流程類型感到好奇，並從您知道的開始，您將如何熟悉該市場並在那裡擴展您的團隊？從那裡成長的機會在哪裡？然後，如果我可能錯過了它，但如果您可以提供有關定價或上限利率的任何詳細信息，那將會有所幫助。

Yes, hello. Good morning. A great question. I'm happy to address most of that. So Arizona and Phoenix in particular is a market and this predates me but in vend trusts and has owned and operated assets in that market prior, this goes back several years. Most of those were larger boxes in nature. So as a market that the team was familiar with it, it just had been a while we have been familiarizing ourselves with the Phoenix MSA more from getting more familiar with it. I should say over the last call it a couple of years, even since we've listed the company, it's a market that we've been very interested in getting into. And I was just trying to find the right asset at has to kind of stick or put our flag in the ground. And this one fit up fits that bill. And the reason is it's a stable asset. It's a it's a it's a really high-quality asset. There's not of a lot of legwork to do as it relates to property management or yield or any value add opportunities. It's really one of those assets that you can you can kind of you said it and operate it and it's going to do do great. And so it's rather new, call it 2016 vintage. And the reason that's important is a lot of these new our newer assets sometimes don't have a whole lot of embedded rent growth. However, if you think about where Phoenix was in 2016 and where retail was in 2016, the market has changed dramatically. So we do actually think for a more stable asset. This one actually has a little bit more upside as it relates to your pricing question without getting into specific cap rates, this this asset did get to kind of the hurdle rates or the unlevered IRRs that we tried to get to. Obviously, it's a core grocery. It's a little bit smaller. So you can imagine the IRRs that we're trying to get to is right around seven, call it high sixes or sevens.

是的你好。早安.這是一個很好的問題。我很高興能解決其中大部分問題。因此，亞利桑那州和鳳凰城尤其是一個市場，這早於我，但在銷售信託公司以及之前在該市場擁有和經營資產的情況下，這可以追溯到幾年前。其中大多數本質上都是較大的盒子。所以作為一個團隊熟悉的市場，我們對Phoenix MSA的熟悉只是一段時間的事情。我應該說，在過去的幾年裡，即使我們已經將公司上市，我們也一直非常有興趣進入這個市場。我只是想找到合適的資產來堅持或把我們的旗幟插在地上。而這款套裝就符合這項要求。原因是它是一項穩定的資產。這是一個非常優質的資產。沒有太多的跑腿工作要做，因為它涉及財產管理或收益或任何增值機會。這確實是一種資產，你可以說它並操作它，它會做得很好。所以它相當新，稱之為 2016 年復古。這很重要的原因是，我們的許多新資產有時並沒有大量的嵌入式租金成長。然而，如果你想想 2016 年鳳凰城的情況以及 2016 年零售業的情況，就會發現市場發生了巨大的變化。所以我們確實在考慮更穩定的資產。這個實際上有更多的上行空間，因為它與你的定價問題相關，而沒有涉及具體的資本化率，這個資產確實達到了我們試圖達到的門檻利率或無槓桿內部收益率。顯然，這是一家核心雜貨店。它有點小。所以你可以想像我們試圖達到的 IRR 大約是 7，稱之為高六或七。

So that's that's helpful. And the credit loss assumption you guys put out within guidance of 50 to 100 basis points seems and fairly wide. Just just curious on what the underlying assumption Some are for that question, whether it's, you know, based on and scenarios of a known tenant disruption versus the unknown. And then I don't know if you can comment specifically on what might be incorporated for Joanne.

所以這很有幫助。你們提出的信用損失假設在 50 到 100 個基點的指導範圍內似乎相當廣泛。只是好奇這個問題的基本假設是什麼，你知道，它是否基於已知租戶中斷與未知租戶中斷的場景。然後我不知道你是否可以具體評論一下喬安妮可能會加入的內容。

Sure. No, happy to. So we have one, Joanne, and I think that that would be incorporated in our assumptions in that in the underlying assumptions in that 50 to 100 basis point range, also incorporating that is we have one Rite Aid out in California. Obviously ready just going through the process. If they make it through the process, we feel confident that it's a site that they're happy with, but we'll wait to be seen. Then the remainder really is the unknown small shop. The small shop risk over the last two years has been a pleasant surprise a more normalized level is at some point is expected from and that that would make up the balance. So you kind of nailed it with.

當然。不，很高興。所以我們有一個，喬安妮，我認為這將被納入我們的假設中，在 50 到 100 個基點範圍內的基本假設中，還包括我們在加利福尼亞州有一個 Rite Aid。顯然已經準備好完成這個過程了。如果他們完成了這個過程，我們相信這是一個他們滿意的網站，但我們會等著看。那麼剩下的就真的是那些不知名的小店了。過去兩年的小商店風險令人驚喜，預計在某個時候會達到更正常化的水平，這將彌補平衡。所以你有點把它釘牢了。

Joanne, I would mention the other ones, Rite Aid, those those two don't make up a ton. But on the anchor side, those would be the 2.2. And then the remainder is really just some unforeseen small shop fallout.

喬安妮，我會提到其他的，Rite Aid，那兩個不算什麼。但在錨點方面，那些將是 2.2。剩下的其實只是一些不可預見的小商店後果。

Okay, helpful. Thank you.

好的，有幫助。謝謝。

Thanks.

謝謝。

Floris van Dijkum, Compass Point.

弗洛里斯·範迪庫姆，羅盤點。

Hey, good morning, guys. Thanks for taking my question. So a DJ. on and morning, solid solid results. The portfolios seems to be doing pretty well here. Phoenix, the new market. I know you addressed it a little bit, but what can we expect I mean for you just to plant a flag, Phoenix is a pretty big market. I mean, what can we expect in terms of dollar volume or in terms of assets over the medium term view to hold up for IBT to own in a market like Phoenix.

嘿，早上好，夥計們。感謝您提出我的問題。所以是一名 DJ。早上起來，取得了紮實的成果。這些投資組合似乎在這裡表現得很好。鳳凰城，新市場。我知道你稍微解決了這個問題，但我們能指望什麼呢？我的意思是你只是插一面旗幟，鳳凰城是一個相當大的市場。我的意思是，從中期來看，我們對美元交易量或資產的預期如何，以支撐 IBT 在鳳凰城這樣的市場中佔有一席之地。

Hey, Floris. No, it's a great question. And one of the things that you have to challenge yourself with is it's really hard to get scale quickly. So it's one of those ones. We found an asset where if it's the only one we have for a period of time, depending on pricing or opportunity set within the market, we'd be happy now obviously to get to a level where, you know, if you think about our portfolio where we have our assets are very clustered. And we think that that's a reason that we feel like we operate at a much higher level because of that clustered nature of the portfolio, what that would indicate that we think we operate at our best when we have at least three or four assets in a market now that's just going to take time but there's also never very few, I should say, portfolios in a single market that you can kind of grab in one fell swoop, especially where the pricing would make sense. So this is one that we've had our eyes on for a while for a lot of the reasons I mentioned earlier, we got very comfortable with it and look at Phoenix is going to be as it has been high on our list to add to our portfolio because of the the characteristics that it has. And it's many of the characteristics that we see in Florida that we see in our the four cities in Texas are the ones of the characteristics that we see in North Carolina. So we're excited about further exploring the opportunities out there. And that Chandler being the third largest city in that in that county gives us a lot of confidence that we're in the right spot and we will continue to expand from there if the opportunities arise.

嘿，弗洛里斯。不，這是一個很好的問題。你必須挑戰自己的一件事是，快速擴大規模確實很難。所以它就是其中之一。我們發現了一種資產，如果它是我們在一段時間內唯一擁有的資產，根據定價或市場內設定的機會，我們現在顯然很高興達到這樣的水平，你知道，如果你考慮一下我們的我們擁有資產的投資組合非常集中。我們認為，由於投資組合的集群性質，我們感覺我們的營運水平要高得多，這表明我們認為，當我們在一個投資組合中至少擁有三到四項資產時，我們的營運處於最佳狀態。現在，這需要時間，但我應該說，在單一市場中，您可以一口氣抓住的投資組合從來都很少，尤其是在定價合理的情況下。因此，由於我之前提到的許多原因，我們已經關注這個項目一段時間了，我們對它感到非常滿意，並且看看鳳凰城將會是什麼樣子，因為它在我們的清單中一直處於高位。我們的投資組合是因為它所具有的特徵。我們在佛羅裡達州看到的許多特徵，在德克薩斯州的四個城市中看到的特徵，也是我們在北卡羅來納州看到的特徵。因此，我們很高興能進一步探索那裡的機會。錢德勒是該縣的第三大城市，這讓我們充滿信心，相信我們處於正確的位置，如果有機會，我們將繼續從那裡擴張。

Speaking of those opportunities, I mean, I know that ST has basically put itself its portfolio in the market out there for us to focus on curved. They had a bunch of stuff, I think in Phoenix as well. Presumably you would look at that.

說到這些機會，我的意思是，我知道 ST 基本上已經將其產品組合投放到市場中，以便我們專注於曲面產品。他們有很多東西，我想在鳳凰城也是如此。想必您會看一下。

Is that something on your radar without getting into specific companies or portfolios. We'll look at everything for us because, as you know, are our portfolio a while, certainly predominantly neighborhood center and certainly almost exclusively necessity-based or grocery, we are we are too. And if we can be property agnostic, we do have some power centers. We do have some smaller, smaller centers. So the most important focus for us in our business model is location and necessity-based retail in the right location. I'm just speaking to and not being a little ignorant to SITE Centers portfolio, but I would imagine most of those would be larger in nature. And because of that, those are going to come with a little bit higher level of risk or perceived risk in some. I would imagine if we were underwriting those the hurdle rates would be a little bit higher, but it's certainly something that we would take a look at if the if the if the operations team could get comfortable with it.

這是您無需進入特定公司或投資組合即可關注的事情嗎？我們會為我們考慮一切，因為如你所知，我們的投資組合有一段時間，當然主要是鄰里中心，當然幾乎完全是必需品或雜貨，我們也是。如果我們能做到財產不可知論，我們確實有一些權力中心。我們確實有一些越來越小的中心。因此，我們的商業模式中最重要的重點是地點和在正確位置的基於必需品的零售。我只是在談論 SITE 中心的投資組合，並不是對它有點無知，但我想其中大多數本質上會更大。正因為如此，這些將帶來更高程度的風險或某些人感知的風險。我想如果我們承保這些，門檻率會更高一些，但如果營運團隊能夠接受的話，我們肯定會考慮這一點。

Great. And maybe one other question from me and your occupancy levels are I would argue are probably near the top of sector peers in both in your anchor as well as your shop, your leased occupancy anyway, how much more room where do you see your ups?

偉大的。也許我和你們的入住率的另一個問題是，我認為你們的錨點和商店的入住率可能接近行業同行的最高水平，無論如何，您的租賃入住率，您在哪裡看到您的ups 的空間還有多少？

I mean, as I as I look at this, I would say your shop occupancy at 92.5%. It probably has greater potential for growth. But I'm curious to see how you think about that, where and how much higher can you push occupancy in your view over the next deal 18 to 24 months now?

我的意思是，當我看到這個時，我會說你們的商店入住率為 92.5%。它可能具有更大的成長潛力。但我很好奇您對此有何看法，您認為在 18 至 24 個月的下一筆交易中，您可以將入住率提高到什麼程度以及提高多少？

I'd say it's a good question and observation just to get just to dive in and give a little color around that. We have five anchor vacancies in the entire portfolio, two of which are from Bed Bath & Beyond closures, of which we're well underway on getting signed leases in place of one of the vacancies is being purposely held for a larger development that's down in Florida, which will our redevelopment, I should say, which will be a great opportunity for us in the next couple of years. And then the last two are also in some form of negotiation right now. So up the five the team is effectively getting close to the finish line on all of those. Now that's not to say that we're not going to have some fallout, but we're getting pretty close to full occupancy on the anchor side. So I think your observation is correct. The opportunity set has been the 7.5%, a vacancy that we have in the small shop and the team is all his work and obviously, really hard on coming up with strategies for a lot of that remaining space, some of which hasn't been leased in a while, and we've made a lot of good headway on that. I would tell you a little bit of our growth over the next couple of years will continue to come from occupancy. The rest is going to be coming from rate and retention and retaining and at higher rates is probably the best return that we can get of minimal to no capital higher rent and with a proven with a proven concept.

我想說這是一個很好的問題和觀察，只是為了深入研究並為此提供一些色彩。我們的整個投資組合中有五個主要空缺，其中兩個來自 Bed Bath & Beyond 關閉的項目，我們正在順利簽署租約，以取代其中一個空缺，該空缺是專門為位於我應該說，佛羅裡達州將是我們的重建項目，這對我們未來幾年來說將是一個很好的機會。最後兩個現在也正在進行某種形式的談判。因此，在這五項任務中，球隊實際上已經接近終點線了。現在這並不是說我們不會產生任何影響，但我們已經非常接近錨定端的滿員。所以我認為你的觀察是正確的。機會集是 7.5%，我們在小商店裡有一個空缺，團隊都是他的工作，顯然，很難為大量剩餘空間制定策略，其中一些還沒有被考慮到。租賃了一段時間，我們在這方面取得了很大進展。我想告訴你，未來幾年我們的成長將繼續來自入住率。其餘的將來自於利率、保留和保留，在較高的利率下，我們可以透過最小甚至沒有資本的更高租金獲得最好的回報，並且經過驗證的概念。

Thanks, DJ.

謝謝，DJ。

Thanks. Thank you. There are no additional questions waiting at this time, so I'd like to pass the call back over to TJ for any closing remarks.

謝謝。謝謝。目前沒有其他問題，因此我想將電話轉回給 TJ，讓其結束語。

Thank you, Dan, and thank you, everyone, for joining us this morning. And as always, if you have any questions, feel free to reach out to our team here and we appreciate you joining and your interest in invent trust, and we look forward to seeing many of you in the coming months. Have a great day.

謝謝丹，謝謝大家今天早上加入我們。像往常一樣，如果您有任何疑問，請隨時聯繫我們的團隊，我們感謝您的加入以及您對發明信任的興趣，我們期待在未來幾個月見到你們中的許多人。祝你有美好的一天。

This concludes today's conference call. Thank you for your participation and you may now disconnect your lines.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開線路了。