Inventrust Properties Corp (IVT) 2024 Q4 法說會逐字稿

Thank you for standing by and welcome to Inventrust's fourth quarter and full year 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 the replay will be available on the investors section of the company's website at inventrustproperties.com.

感謝您的支持，歡迎參加 Inventrust 2024 年第四季和全年財報電話會議。我叫艾略特，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，今天的演講正在錄製，重播將在公司網站 inventrustproperties.com 的投資者部分提供。

(Operator Instructions)

（操作員指令）

I'd now like to hand over to Mr. Dan Rado, Vice President of Investor Relations. Please go ahead, sir.

現在我想把麥克風交給投資人關係副總裁丹‧拉多先生。先生，請繼續。

Thank you, Operator, and 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, the lines will be opened for questions

謝謝接線員，大家早安，謝謝您參加我們今天的電話會議。與我一起的 Inventrust 團隊還有總裁兼執行長 DJ Busch、財務長 Mike Phillips、營運長 Christy David 和首席投資長 Dave Heimberger。在團隊發表準備好的發言後，將開放提問專線

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.

提醒一下，今天的一些評論可能包含關於公司對未來業務和財務表現的看法的前瞻性陳述，包括前瞻性的獲利指引和未來的市場狀況。這些都是基於管理層當前的信念和期望，並受各種風險和不確定性的影響。

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

任何前瞻性陳述均僅代表今日的觀點，我們不承擔更新今天電話會議中或季度財務補充或新聞稿中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。本季度的收益資料中包含了可比較的 GAAP 財務指標，這些資料已發佈在我們的投資者關係網站上。說完這些，我將把電話轉給 DJ。

Thank you, Dan. Good morning, everyone, and welcome. I appreciate everyone joining us this morning. I'm going to start the call with some high-level commentary regarding the fourth quarter and full year 2024 accomplishments, as well as key strategic objectives for 2025. After that, Mike will provide more detail on our financial results and expectations for the year ahead.

謝謝你，丹。大家早安，歡迎光臨。我感謝今天早上與我們一起的各位。我將在電話會議上就第四季和 2024 年全年的成就以及 2025 年的關鍵策略目標發表一些高層評論。之後，麥克將提供有關我們的財務業績和未來一年預期的更多詳細資訊。

Finally, Christy will share highlights of our operational successes and offer additional color on market performance and leasing activity. We're pleased to report strong results for the fourth quarter of full year 2024, driven by robust demand for our properties and Inventrust highly effective capital deployment.

最後，克里斯蒂將分享我們營運成功的亮點，並提供有關市場表現和租賃活動的更多細節。我們很高興地報告 2024 年全年第四季的強勁業績，這得益於我們房產的強勁需求和 Inventrust 高效的資本配置。

Core FFO per share grew by 5% both in the fourth quarter and for the full year, which marks the third consecutive year of cash flow per share growth above 4%. Increased occupancy, solid leasing spreads, expense management, and strategic capital allocation continue to be the underpinning factors of our consistent above-sector average cash flow growth.

第四季和全年每股核心 FFO 均成長 5%，這是每股現金流連續第三年成長超過 4%。入住率的提高、穩健的租賃利差、費用管理以及策略資本配置繼續成為我們現金流成長持續高於行業平均水平的基礎因素。

Healthy economic growth, perpetual migration tailwinds, and favourable business conditions continue to drive demand across our markets. As we've consistently emphasized, Sunbelt cities are experiencing significant population inflows, particularly from higher-cost coastal areas, which is driving demand for our retail real estate.

健康的經濟成長、持久的移民順風以及有利的商業環境繼續推動我們整個市場的需求。正如我們一直強調的那樣，陽光地帶城市正在經歷大量人口的湧入，特別是來自成本較高的沿海地區，這推動了對我們的零售房地產的需求。

Recent forecasts project that The Sunbelt's population will grow by approximately 7% over the next decade, outpacing the national growth rate of less than 1%. Beyond these demographic trends, the region's expanding tech, healthcare, and logistics sectors create a solid foundation for sustained long-term job growth.

最近的預測表明，未來十年陽光地帶的人口將成長約 7％，超過全國不到 1％ 的成長率。除了這些人口趨勢之外，該地區不斷擴大的科技、醫療保健和物流行業為長期持續的就業成長奠定了堅實的基礎。

We are especially optimistic about opportunities in these markets, where we believe demand will outpace supply, further enhancing the strength and resilience of our portfolio. Supporting this dynamic, retail development starts across the U.S. fell to the lowest level since the first quarter of 2015, underscoring the constrained pipeline for retail strip centres.

我們對這些市場的機會尤其樂觀，我們相信需求將超過供應，進一步增強我們投資組合的實力和彈性。為支持這一動態，美國零售業開發開工量降至2015年第一季以來的最低水平，凸顯了零售商業中心的庫存受限。

Leasing activity and portfolio operations remain impressive despite some well-documented retailer disruptions in late 2024 and early 2025. Inventrust has minimal exposure to headline bankruptcies and store closures, and we fully expect to maintain significant leasing leverage across our properties in upcoming negotiations.

儘管有充分證據表明 2024 年末和 2025 年初零售商出現了中斷，但租賃活動和投資組合營運仍然令人印象深刻。Inventrust 受破產和商店關閉的影響很小，我們完全有信心在即將到來的談判中保持我們物業的顯著租賃槓桿作用。

We ended the year with lease occupancy at 97.4% and economic occupancy at 95.3%, a 210-basis point spread representing approximately $6.3 million in incremental annualized base rent expected to come online over the next several quarters. If you take into consideration an all-time high occupancy, the built-in leasing pipeline, and the high retention rate of our existing tenants, the recipe for accelerated AFFO and free cash flow growth is quite promising

我們截至今年年底的租賃入住率為 97.4%，經濟入住率為 95.3%，210 個基點的利差意味著預計未來幾季將出現約 630 萬美元的增量年化基本租金。如果考慮到歷史最高入住率、內建租賃管道以及現有租戶的高留存率，那麼加速 AFFO 和自由現金流成長的秘訣是相當有希望的

Due to a relatively favourable capital markets backdrop in the late summer and early fall of '24, coupled with a compelling mix of high quality and creative acquisition opportunities, we should approximately $250 million of equity to accelerate growth. This meaningfully expanded our acquisition activity while also taking the opportunity to pay off expensive variable rate debt.

由於24年夏末和初秋的資本市場背景相對有利，再加上高品質和富有創意的收購機會，我們應該獲得約 2.5 億美元的股權來加速成長。這顯著擴大了我們的收購活動，同時也藉此機會償還昂貴的浮動利率債務。

In the fourth quarter, we acquired four high quality assets. In Charleston, a new market for Inventrust ,we added market at Mill Creek. an 80,000-square-foot center anchored by a high-performing Lowe's Foods. We also acquired Nexton Square, a 134,000-square-foot open-air lifestyle center featuring a strong mix of high-performing restaurants and local retailers.

第四季度，我們收購了四項優質資產。在查爾斯頓，Inventrust 的新市場，我們在 Mill Creek 增加了市場。佔地 80,000 平方英尺的中心，以業績卓越的 Lowe's Foods 為支柱。我們還收購了 Nexton Square，這是一座佔地 134,000 平方英尺的露天生活中心，擁有許多高品質餐廳和當地零售商。

In Fort Myers, one of the fastest-growing cities in the U.S., according to the U.S. Census, we secured The Forum, a 186,000-square-foot center with 96% occupancy shadow anchored by a Target. And as mentioned on our last call in October, We grow our presence in the Richmond market with Stonehenge Village.

根據美國人口普查的數據，在美國發展最快的城市之一邁爾斯堡，我們獲得了 The Forum 購物中心，這是一座佔地 186,000 平方英尺的中心，入住率為 96%，由 Target 主導。正如我們十月上次電話會議中提到的那樣，我們透過巨石陣村擴大了在里士滿市場的影響力。

In total for '24, we acquired eight properties for $282 million and opportunistically disposed of two properties for $68 million. As we move into 2025, we are highly confident in our ability to continue executing on our strategy and believe the future holds even greater promise for Inventrust. We will remain focused on creating value through property acquisitions, portfolio optimization, operational excellence, and leveraging our in-place established platform.

24 年間，我們總共以 2.82 億美元收購了 8 處房產，並趁機以 6,800 萬美元的價格出售了兩處房產。隨著我們邁入 2025 年，我們對繼續執行策略的能力充滿信心，並相信 Inventrust 的未來前景更加光明。我們將繼續專注於透過資產收購、投資組合優化、卓越營運以及利用我們現有的平台來創造價值。

I'll now turn the call over to Mike for a detailed review of our financial results and to discuss our expectations for 2025. Mike?

現在，我將把電話轉給麥克，讓他詳細審查我們的財務表現並討論我們對 2025 年的期望。麥克風？

Thanks, DJ. Inventrust closed out 2024 on a strong note as our team and portfolio continue to perform at a high level as reflected in our results. The company's full year same property NOI reached $162.6 million, growing 5% over 2023. This represents our fourth consecutive year of same property NOI growth exceeding 4%.

謝謝，DJ。Inventrust 在 2024 年取得了強勁成績，我們的團隊和投資組合繼續保持高水準表現，這反映在我們的業績上。該公司全年同類地產淨營業收入達 1.626 億美元，較 2023 年成長 5%。這是我們連續第四年實現同類物業淨營運收入增幅超過 4%。

The year-over-year increase was primarily driven by 270 basis points in base rent, with 150 basis points attributed to embedded rent bumps. Additionally, net expense reimbursement contributed approximately 170 basis points, with better collections from revenues deemed uncollectible, adding 50 basis points.

年比成長主要由基本租金上漲 270 個基點所推動，其中 150 個基點歸因於嵌入式租金上漲。此外，淨費用報銷貢獻了約 170 個基點，而被視為無法收回的收入的收回情況有所改善，則增加了 50 個基點。

In the fourth quarter, same property NOI grew 7.1% compared to Q4 of 2023. For the full year, Nareit FFO totaled $126.7 million, or $1.78 per diluted share, reflecting an increase of 4.7% over 2023. Core FFO rose 4.8% to $1.73 per share year over year. Growth was primarily driven by same property NOI, debt acquisitions, and slightly offset by G&A and interest expense.

第四季度，同類房產淨營運收入與 2023 年第四季相比成長了 7.1%。全年而言，Nareit FFO 總計 1.267 億美元，即每股攤薄收益 1.78 美元，較 2023 年增長 4.7%。核心 FFO 年成長 4.8% 至每股 1.73 美元。成長主要受相同物業淨營運收入和債務收購的推動，並略微受到一般行政費用和利息支出的抵銷。

The balance sheet remains in excellent shape, providing an interest with the liquidity and flexibility needed to execute our long-term growth strategy. At year end, Inventrust net leverage ratio stood at 23%, with our net debt to adjust the EBITDA at 4.1 times on a 12-month basis.

資產負債表依然保持良好狀況，為我們的長期成長策略實施提供了所需的流動性和靈活性。截至年底，Inventrust 淨槓桿率為 23%，我們的淨債務以 12 個月調整 EBITDA 為 4.1 倍。

Our entire debt structure is now 100% fixed. Our weighted average interest rate was 4%, with a weighted average maturity of 3.3 years. Finally, the Board of Directors approved an increase of 5% in the company's cash dividend for 2025. The new annualized rate of $0.95 will be reflected in the April dividend payment.

我們的整個債務結構現在已 100% 固定。我們的加權平均利率為 4%，加權平均期限為 3.3 年。最後，董事會批准將公司2025年現金股利增加5%。0.95 美元的新年化利率將反映在四月的股息支付中。

Moving to guidance. We expect our performance momentum to carry forward into the new year. Our full year, same property and why growth guidance is in the range of 3.5% to 4.5% incorporating a bad debt reserve of 75 basis points to 100 basis points of total revenue. This reserve accounts for the recent tenant bankruptcy assumptions, as well as ordinary bad debt levels expect in any given year.

轉向指導。我們預計我們的業績動能將延續到新的一年。我們全年相同的物業和原因成長預期在 3.5% 到 4.5% 之間，其中包括佔總收入 75 個基點到 100 個基點的壞帳準備金。該準備金考慮了近期租戶破產假設以及任何一年的普通壞帳水準。

Nareit FFO, we are providing guidance in the range of a $83 to a $89 per share representing a 4.5% increase at the midpoint over 2024. Our core FFO guidance is $1.79 to $1.83 per share, reflecting a 4.6% increase at the midpoint over last year.

Nareit FFO，我們給出的指導價格範圍是每股 83 美元至 89 美元，比 2024 年中點增長 4.5%。我們的核心 FFO 指引為每股 1.79 美元至 1.83 美元，中位數較去年同期成長 4.6%。

With expectations for acquisitions and dispositions, our net acquisition assumption is $100 million for 2025. Further details on our guidance assumptions are available in our supplemental disclosure filed yesterday. And with that, I'll turn the call over to Christy to discuss our portfolio activity. Christy?

根據收購和處置的預期，我們假設 2025 年的淨收購額為 1 億美元。有關我們的指導假設的更多詳細信息，請參閱我們昨天提交的補充披露文件。說完這些，我將把電話轉給克里斯蒂，討論我們的投資組合活動。克里斯蒂？

Thanks, Mike. We remain confident that Inventrust is well-positioned to achieve near and long-term growth targets. Our Sunbelt portfolio of necessity-based retail assets, supported by our experienced leasing and property management teams, continues to deliver strong, above-average results.

謝謝，麥克。我們仍然相信，Inventrust 有能力實現近期和長期的成長目標。在我們經驗豐富的租賃和物業管理團隊的支持下，我們的陽光地帶必需品零售資產組合繼續提供強勁、高於平均水平的業績。

We remain focused on maximizing cash flow by optimizing rents, enhancing occupancy, and refining the merchandising mix across our centers. With 87% of our NOI coming from grocery anchored assets, we recognize the vital role these tenants play in driving foot traffic to a thriving retail center.

我們將繼續致力於透過優化租金、提高入住率和優化中心的商品組合來最大化現金流。我們的 87% 的淨營業利潤來自以雜貨店為主的資產，我們認識到這些租戶在吸引客流量到繁榮的零售中心方面發揮著至關重要的作用。

This dynamic strengthens our leasing leverage and brings additional value to our portfolio. At the time of our listing in 2021, our total portfolio lease occupancy stood at 93.5%. By the end of 2024, we achieved 97.4%, a 390 basis points increase, highlighting the exceptional quality of our centers and the appeal of our Sunbelt markets. Anchor Space lease occupancy ended the year at 99.8%, matching our all-time high achieved last quarter. Small shop lease occupancy finished the quarter at 93.3%, also an all-time high for our portfolio

這種動態增強了我們的租賃槓桿，並為我們的投資組合帶來了額外的價值。截至 2021 年上市時，我們的投資組合總租賃入住率為 93.5%。到 2024 年底，我們實現了 97.4% 的成長率，增幅達 390 個基點，突顯了我們中心的卓越品質和陽光地帶市場的吸引力。Anchor Space 租賃入住率年底達到 99.8%，與上個季度創下的歷史最高水準持平。本季度，小商店租賃入住率達到 93.3%，創下我們投資組合的歷史新高

Even at these unprecedented levels, our leasing team remains committed to further increasing occupancy, especially in the small shop category. In 2024, we signed 210 leases, totalling 1.3 million square feet. Notable tenants signed in the fourth quarter include Skechers, Snooze, and AM Eatery and Mendocino Farms.

即使處於前所未有的水平，我們的租賃團隊仍然致力於進一步提高入住率，尤其是小型商店類別。2024年，我們簽署了210份租約，總面積達130萬平方英尺。第四季簽約的知名租戶包括 Skechers、Snooze、AM Eatery 和 Mendocino Farms。

Beyond simply increasing occupancy, we believe that curating the right mix of national, regional, and local retailers is essential to creating a dynamic environment that drives tenant sales growth and maximizes leasing spreads for both new and renewal leases.

除了簡單地提高入住率之外，我們認為，精心挑選全國性、地區性和本地性零售商的組合，對於創造一個充滿活力的環境至關重要，可以推動租戶銷售​​增長，並最大限度地提高新租約和續租的租賃利差。

By strategically assembling the best combination of necessity-based retailers for each market, we cultivate an atmosphere where tenants can prosper, fuelling their success while enhancing our ability to grow rent.

透過針對每個市場策略性地組合最佳的必需品零售商，我們營造了一種讓租戶可以繁榮發展的氛圍，為他們的成功提供動力，同時增強我們提高租金的能力。

Inventrust’s total portfolio ABR ended 2024 at $20.07 per square foot, reflecting an increase of 3% compared to 2023. For the year, we delivered blended comparable leasing spreads of 11.3% with new lease spreads at 16.6% and renewals at 10.6%. Our retention rate stood at 94% in 2024. High tenant retention remains a key element of our portfolio. This dynamic translates to better economics, reducing downtime, and significantly lowering tenant improvement costs.

截至 2024 年，Inventrust 的總投資組合 ABR 為每平方英尺 20.07 美元，比 2023 年成長 3%。全年，我們的混合可比租賃利差為 11.3%，其中新租賃利差為 16.6%，續約租賃利差為 10.6%。2024 年我們的保留率為 94%。高租戶保留率仍然是我們投資組合的關鍵要素。這種動態可以轉化為更好的經濟效益、減少停機時間並顯著降低租戶改善成本。

Additionally, we have successfully embedded rent escalators of 3% or higher in 90% of our renewals, supporting long-term NOI growth. Moving to retail news, I want to briefly address the recent store closing and bankruptcies.

此外，我們已成功在 90% 的續約中嵌入 3% 或更高的租金上漲率，以支持長期淨營運收入成長。談到零售新聞，我想簡單談談最近的商店關閉和破產事件。

At Inventrust, we view this as part of the natural life cycle of retail. Disruption and store closures following the new year are predictable and expected. While store closures remain below historical averages, they may be returning to more normalized levels compared to the last few years.

在 Inventrust，我們將其視為零售自然生命週期的一部分。新年之後的混亂和商店關閉是可以預見和預料的。儘管商店關閉數量仍低於歷史平均水平，但與過去幾年相比，可能正在恢復到更正常的水平。

As a reminder, our portfolio has one Joanne location in Austin, Texas, and three-Party City locations that contribute collectively approximately 60 basis points of ABR. We have no exposure to Big Lots or the Container Store. As Mike mentioned earlier, any expected disruptions or assumed vacancies within our portfolio from distressed retailers are fully accounted for in our guidance.

提醒一下，我們的投資組合在德州奧斯汀擁有一家 Joanne 門市，在 Party City 擁有三家門市，它們共同貢獻了約 60 個基點的 ABR。我們沒有接觸過 Big Lots 或 Container Store。正如麥克之前提到的，我們的投資組合中任何因陷入困境的零售商而預計出現的中斷或假定的空置都已充分考慮在我們的指導中。

Despite these headlines, demand for high-quality retail space remains strong. Supply is still constrained, and many retailers are increasing their long-term store opening targets in our markets, recognizing the traffic and sales growth these locations can generate.

儘管有這些頭條新聞，但對高品質零售空間的需求仍然強勁。供應仍然受到限制，許多零售商認識到這些地點可以產生的流量和銷售成長，正在增加在我們的市場的長期開店目標。

We remain confident that any space we recapture presents an opportunity to drive rent growth and further enhance our tenant mix. Before concluding, I want to take a moment to acknowledge the devastating wildfires in Southern California.

我們堅信，我們重新獲得的任何空間都為推動租金成長和進一步改善我們的租戶組合提供了機會。最後，我想花點時間來了解南加州毀滅性的山火。

The widespread destruction and loss are truly heartbreaking. Thankfully, all Inventrust employees are safe, and at this time, our properties remain unaffected. We continue to closely monitor the situation, and Inventrust is ready to provide support to our communities and tenants wherever it is needed..

大規模的破壞和損失確實令人心碎。值得慶幸的是，所有 Inventtrust 員工都很安全，目前我們的房產沒有受到影響。我們將繼續密切關注局勢，Inventrust 隨時準備為我們的社區和租戶提供任何所需的支援。

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

接線員，我們的準備好的發言到此結束，您可以開始提問了。

Thank you. (Operator Instructions)

謝謝。（操作員指令）

Our first question comes from Tori Keston with Wells Fargo. Your line is open. Please go ahead.

我們的第一個問題來自富國銀行的 Tori Keston。您的線路已開通。請繼續。

Thanks. Good morning. Based on what you've said previously about the likely trajectory of acquisitions this year, the $100 million net investment figures seemed a bit conservative. Is this meant to be, you know, what you're close to closing? I guess does it assume an acceleration in dispositions?

謝謝。早安.根據您之前所說的今年收購的可能軌跡，1 億美元的淨投資數字似乎有些保守。你知道嗎，這代表你即將完成這件事了？我猜想這是否意味著處置速度會加快？

Hey good morning. No, it's a great question. So when we think about 2025, I think we've said this in the past when we when we're thinking about our initial acquisition guidance, what we really are trying to message is that we're going to continue being a net acquire over the course of the year.

嘿，早安。不，這是一個很好的問題。因此，當我們考慮 2025 年時，我想我們過去在考慮初始收購指引時就說過這一點，我們真正想要傳達的訊息是，我們將在一年內繼續進行淨收購。

The pace and acceleration of that really is dependent on our cost of capital. You did mention dispositions. We are, you know, going through a kind of capital recycling endeavour in 2025 with some of our properties in California, depending on what those pricing comes in. We think our California portfolio is probably our most attractive kind of use or cost of capital to redeploy those proceeds into some of the other markets that we've been a little bit more excited about.

這一進程的速度和加速度實際上取決於我們的資本成本。您確實提到了處置方式。你知道，我們將在 2025 年對加州的一些房產進行某種資本回收，具體取決於這些房產的定價。我們認為，我們的加州投資組合可能是我們最具吸引力的用途或資本成本，將這些收益重新部署到一些我們更感興趣的其他市場。

and we've been recently more active in. Patrick Baur, within those $100million, you can expect the gross number to be materially higher than that, depending on you know the success of our disposition activity in our in our California markets.

最近我們變得更加活躍。派崔克鮑爾，在這 1 億美元中，你可以預期總額會大大高於這個數字，這取決於我們在加州市場處置活動的成功程度。

Okay, and then your retention rate, I think, with about 94% 95% this year up from 90% last year, can you can you talk through your expectations for this measure. in '25 and then kind of somewhat related, would you expect releasing spreads this year to be comparable to the low teens that you were able to achieve in 2024?

好的，那麼您的保留率，我認為，今年大約是 94％ 95％，高於去年的 90％，您能談談您對這一指標的期望嗎？在'25 年，然後有點相關，您是否預計今年的釋放利差將與您在 2024 年能夠實現的低十幾個百分點相當？

Yeah, maybe I'll just touch quickly on the retention rate, and then I'll have Christy give a little more color on what we're expecting from a spread standpoint. The 94% is probably a little bit higher than what we're expecting in 2025, only because of the known growth. Exit so we may have this year as it relates to Party City and to a lower probability that Joanne fabrics. Other than that, we you know when we think about 25% and beyond 90% retention rate is kind of the bogey for us and that allows us to push spreads and then while also keeping capital costs low.

是的，也許我會快速談一下保留率，然後我會讓克里斯蒂從傳播的角度更詳細地說明我們的期望。94% 可能比我們對 2025 年的預期略高一點，這僅僅是因為已知的增長。因此我們今年可能會退出，因為它與 Party City 有關，而且 Joanne 面料的機率較低。除此之外，我們知道，25% 甚至超過 90% 的留存率對我們來說是一種極限，這使我們能夠提高利差，同時保持較低的資本成本。

I mean do I just follow up on that and say that with respect to the leasing spreads, I think that our current run rate that you've seen over the past year should run similar into 2025. And we should be able to, the leasing team is focused on continuing to deliver at that rate.

我的意思是，我是否只是跟進這一點並說，就租賃利差而言，我認為您在過去一年看到的當前運行率應該會持續到 2025 年。我們應該能夠做到這一點，租賃團隊致力於繼續以這樣的速度交付。

Okay, thank you.

好的，謝謝。

We now turn to Jeff Spector with Bank of America. Your line is open. Please go ahead.

現在我們來談談美國銀行的傑夫‧斯佩克特。您的線路已開通。請繼續。

Great. Thank you. and congratulations on a great 24. Just thinking about some of the comments and your discussion around your best use of capital, the dispositions, California. What about the balance sheet? I mean, you are under leveraged. I guess, how are you thinking about the balance sheet and using that to grow even faster?

偉大的。謝謝。恭喜您度過了美好的 24 歲。只是考慮了一下關於如何最佳利用資本、處置方式的一些評論和討論，加利福尼亞州。資產負債表怎麼樣？我的意思是，你的槓桿率過低。我想，您是如何考慮資產負債表並利用它來實現更快的成長的？

No, Jeff, it's a great comment. You know, obviously coming off the equity raise last year, which we found to be pretty opportunistic, both just as it relates to what our cost of equity capital was at the time, but most importantly, our ability to go and acquire quickly and accretive to use those proceeds and show transparency and quick visibility to the market.

不，傑夫，這是一個很棒的評論。你知道，顯然，去年股權融資之後，我們發現這非常有機會，因為這與我們當時的股權資本成本有關，但最重要的是，我們有能力快速收購併增值，以利用這些收益，並向市場展示透明度和快速可見性。

Or that's the same recipe that we're planning on using this year. Now, As you can appreciate, California, as it relates to our property, we have a phenomenal California portfolio. It's a strategic decision for Inventrust. I mean, California retail is core for most shopping center REITs, both public and private.

或者這是我們今年計劃使用的相同配方。現在，正如您所看到的，加州與我們的財產有關，我們擁有驚人的加州投資組合。對 Inventrust 來說，這是一個策略決策。我的意思是，加州零售業是大多數購物中心房地產投資信託基金（無論是公共的還是私人的）的核心。

We just have found that we have an opportunity set in some of our other core markets that look more attractive to us over time. And because of that, we can make a nice little spread on that capital recycling or get very, very high-quality trophy properties in those markets that we otherwise probably wouldn't be able to go after, given where our cost of debt and cost of equity capital is aborted as she used the balance sheet.

我們只是發現，我們在其他一些核心市場中存在著機會，隨著時間的推移，這些機會對我們來說更具吸引力。正因為如此，我們可以在資本循環上獲得不錯的利潤，或者在那些我們可能無法追逐的市場中獲得非常高品質的獎杯資產，因為我們的債務成本和股權資本成本在她使用資產負債表時被中止了。

But we are in a position with the capacity on the balance sheet to lever up if the opportunities as you saw what we did in the back half of last year.

但是，我們有能力在資產負債表上利用這些機會，就像您在去年下半年看到的那樣。

Okay, fair. Thank you. And then as the company has gotten more aggressive, let's say, on acquisitions, is that changing the conversation, let's say, with owners or sellers? Like, you know, I assume that there's a lot of competition to buy Sunbelt Grocery and Gear Centers. Like, how do you think this has changed, let's say, IBG's profile or the ability to do deals versus others?

好的，公平。謝謝。那麼，隨著公司在收購方面變得更加積極，這是否會改變與所有者或賣家的對話方式？就像，你知道，我認為購買 Sunbelt Grocery and Gear Centers 的競爭非常激烈。例如，您認為這會如何改變 IBG 的形像或相對於其他銀行的交易能力？

No, it's a great question. I think what I would say is, look, it is an extremely competitive environment, and we've been successful both on marketed deals, off-marketed deals, and everything in between. And I think that's been kind of our recipe for success, and that's the reason why I think we feel more comfortable and confident Mike San Clements, continuing to invest all of our invest all of our energy in some of them in the markets where we've seen us been active.

不，這是一個很好的問題。我想說的是，看，這是一個競爭極其激烈的環境，我們在市場交易、場外交易以及介於兩者之間的所有交易中都取得了成功。我認為這是我們成功的秘訣，這也是為什麼我認為我們感到更加安心和自信，邁克·聖克萊門茨，繼續將我們所有的精力投入到我們已經活躍的一些市場中。

Mike San Clements, You know, I would say, because of our cost of capital, both with our capital recycling program and then obviously where our multiple is, I think we have an ability to be you know appropriately aggressive and opportunistic. But it is a competitive environment, and we try to fully contemplate that as we think about our ability to be successful over the course of the year.

麥克聖克萊門茨，你知道，我想說，由於我們的資本成本，包括我們的資本回收計劃，以及顯然我們的倍數，我認為我們有能力採取適當積極和機會主義的措施。但這是一個競爭激烈的環境，我們在考慮今年取得成功的能力時，我們會盡力充分考慮這一點。

Okay, thank you. And then just to confirm, on the same-stranded wide range of 3.5% to 4.5%, I guess, is it just safe to assume that at the high end, you're assuming, let's say, you know, if you continue to move occupancy higher or leasing spreads are even stronger, versus the bottom end. Let's say that the bad debt reserve, let's say the 7,500 bips is more towards the 100 bips. Is that fair to say, or is there anything else to point out on the range of the same store in Hawaii? Thank you.

好的，謝謝。然後，只是為了確認一下，在 3.5％ 到 4.5％ 的相同寬範圍內，我想，是否可以安全地假設，在高端，您假設，比方說，如果您繼續提高入住率或租賃利差與底端相比甚至更強。假設壞帳準備金為 7,500 基點，更接近 100 基點。這樣說公平嗎？謝謝。

Yeah, this is Mike. I think you've got it. The range from the top to bottom, really what can move it is the uncollectible lease income, the bad debt throughout the year, and then just getting tenants kind of in and operating on time. But the big driver would be the uncollectible lease income.

是的，這是麥克。我想你已經明白了。從上到下，真正能影響它的是無法收回的租賃收入、全年的壞賬，以及讓租戶按時入住和營運。但最大的驅動因素是無法收回的租賃收入。

Okay great thank you.

好的，非常感謝。

(Operator Instructions) We now turn to Linda Tsai with Jefferies. Your line is open. Please go ahead.

(操作員指示)現在我們轉向 Jefferies 的 Linda Tsai。您的線路已開通。請繼續。

Hi. Thanks for taking my question. Um, what is the appetite like for your California assets? You know who the potential buyers and what kind of cap rate you are apply to those centers?

你好。感謝您回答我的問題。嗯，人們對你在加州的資產有什麼興趣呢？您知道潛在買家是誰以及您對這些中心適用什麼樣的資本化率嗎？

Yeah, It's a good question Linda. I would say California has always had a. wide campus of buyers public private smaller um even and then certainly some of this larger international sovereign funds I mean that's the you know the good and bad thing about California is it's extremely competitive because of the dynamics of that market so um you know we sold one California asset last year we're in market with several assets currently um the demand has been um Very, very strong thus far, but nothing signed or executed yet, and we'll watch those.

是的，琳達，這是個好問題。我想說加州一直都有一個。買家範圍廣泛，有公共的，也有私人的，規模較小的，當然還有一些較大的國際主權基金，我的意思是，這就是加州的好處和壞處，因為加州的市場動態非常有競爭力，所以去年我們賣掉了一項加州資產，目前我們在市場上有幾項資產，需求一直非常非常強勁，但還沒有簽署或執行任何協議，我們會關注這些。

The important thing to note is. We don't have to sell anything in California if we don't feel like we can redeploy those proceeds incredibly. So if we're not satisfied with the price or the opportunity opportunities that on the buy side isn't as robust as we would hope. we have the ability to kind of slow or accelerate that pace accordingly, because the most important thing is that we're moving cash flow forward for Inventrust

需要注意的重要一點是。如果我們覺得無法重新部署這些收益，我們就不必在加州出售任何東西。因此，如果我們對價格或機會不滿意，那麼買方的機會就不會像我們希望的那樣強勁。我們有能力相應地放慢或加快這一步伐，因為最重要的是我們正在推動 Inventrust 的現金流

As it relates to pricing, it would be too early to kind of comment on what that pricing looks like, but I would say that the goal is to, where we're expecting pricing to come in, it would allow us to be, like I said earlier, appropriately aggressive on pricing. trophy properties in markets where we've been more active and at a positive spread.

至於定價，現在評論定價情況還為時過早，但我想說，我們的目標是，我們預期的價格將使我們能夠像我之前所說的那樣，在定價上採取適當激進的措施。我們在市場上的獎盃物業表現更為活躍，並且獲得了積極的利差。

Thanks for that. And then my second question is for your acquisitions, how do you think about the mark to market opportunities in those assets?

謝謝。我的第二個問題是，對於您的收購，您如何看待這些資產的市價機會？

No, I mean, look, I think the one thing that we love about our portfolio in the Sunbelt is that market rents are outpacing our current growth profile. And maybe to give you a little context of that, for instance, in any given quarter we'll have tenants miss an option notice date, in which case we get to renegotiate the lease, right? And I think the most recent quarter in 2024 we had about 23 tenants that missed their option period, in which case they would have probably had an increase in rent between call it in the high single digits.

不，我的意思是，看，我認為我們喜歡陽光地帶投資組合的一點是，市場租金的成長速度超過了我們目前的成長速度。也許可以給你一些背景信息，例如，在任何一個季度，我們都會有租戶錯過選擇通知日期，在這種情況下，我們可以重新協商租約，對嗎？我認為，2024 年最近一個季度，我們有大約 23 名租戶錯過了選擇期，在這種情況下，他們的租金可能會上漲到個位數左右。

We were able to renegotiate those rents at closer to 30% spread. It just it. It gives us confidence that you know we're perpetually below market in in many of our in most of the portfolio, and that allows us to, you know, build a sustainable cash flow model, even if there is a slowdown in the economy, we still feel like we're in a good spot. And that's what we look for in our new acquisitions as well. The acquisitions that we tend to buy, its market rate driven as opposed to any type of significant occupancy or value add upside, I would say.

我們能夠以接近 30% 的差價重新協商這些租金。就是它了。這讓我們有信心，我們大部分投資組合中的許多資產都永遠低於市場水平，這使我們能夠建立可持續的現金流模型，即使經濟放緩，我們仍然覺得我們處於良好狀態。這也是我們在新收購中尋找的東西。我想說，我們傾向於購買的收購物是由市場價格驅動，而不是任何類型的顯著佔用或增值驅動。

Really helpful, thank you.

真的很有幫助，謝謝。

We now turn to Flores Van Ditchcom with Compass Point. Your line is open. Please go ahead.

現在我們來談談 Compass Point 的 Flores Van Ditchcom。您的線路已開通。請繼續。

Hey, thanks. Interesting, 20 tenants last quarter missed their option periods. Presumably, you know, that was not in your budget. And it's not in your guidance either. Does that seem normal?

嘿，謝謝。有趣的是，上個季度有 20 名租戶錯過了選擇期。你知道，這大概不在你的預算之內。這也不在你的指導範圍內。這樣看起來正常嗎？

Yeah, let me clarify. It was 23 tenants for the year. So when you think about all the activity throughout the year, it's not that much, but it is a nice surprise when it happens. But it would be very hard for us to forecast a subset of tenants missing their auction date. If you were to do the percentage, it's certainly on the lower end, but it does give you an indication of where market rents are relative to where people are resigning due to option.

是的，讓我澄清一下。當年共有 23 位租戶。因此，當你考慮全年的所有活動時，這並不多，但當它發生時，這將是一個驚喜。但我們很難預測一部分租戶會錯過拍賣日期。如果要計算這個百分比，它肯定處於較低水平，但它確實可以表明市場租金相對於人們因選擇而辭職的地方的情況。

So my question that I had before you mentioned the missing the option thing, which prompted another, the cap rates on new acquisitions. And one of the things that I find interesting is that I think you're Really, the only REIT right now that's playing in the town of Southern Charleston. And you've got two assets there.

所以我之前的問題是您提到缺少選擇權的事情，這引發了另一個問題，即新收購的資本化率。我覺得有趣的事情之一是，我認為你們確實是目前唯一一家在南查爾斯頓鎮運營的房地產投資信託基金 (REIT)。你有兩項資產。

Presumably, that means the returns that you're getting on those assets should be a little bit higher than more heavily trafficked markets like Houston, like Tampa, where a lot of the other REITs are active. Obviously, the pool of private buyers is bigger as well. Maybe you can talk a little bit about the cap rates. And if you see more opportunities in markets like Charleston and Richmond, which are not as heavily trafficked.

據推測，這意味著你從這些資產上獲得的回報應該比休士頓、坦帕等交通更繁忙的市場略高一些，許多其他房地產投資信託基金 (REIT) 在那些市場活躍。顯然，私人買家的數量也更大。也許您可以稍微談談資本化率。如果你在查爾斯頓和里士滿這樣的市場看到更多機會，這些市場的交通並不那麼繁忙。

No, that's actually a good observation, Floris. I would say yes. On a risk-adjusted basis, we think markets like a Charleston, like a Richmond, have a are equally as attractive, and it's a great complement to the Inventrust portfolio, which tends to be anchored around those larger cities, right? So we have spent more time in canvassing the Charleston markets, or markets, excuse me, or even markets like Asheville.

不，這實際上是一個很好的觀察，弗洛里斯。我認為是的。在風險調整的基礎上，我們認為像查爾斯頓、里士滿這樣的市場具有同樣的吸引力，而且它對 Inventrust 投資組合是一個很好的補充，因為該投資組合往往以這些大城市為中心，對嗎？因此，我們花了更多時間調查查爾斯頓市場，或其他市場，對不起，甚至像阿什維爾這樣的市場。

Certainly Nashville would be on the larger end, but Knoxville, some of these cities that are very complementary into the markets in which we already operate. And we can be very efficient in those markets. Now, I will tell you, the criteria in those markets is much more stringent, right? You know, in Houston, we can own 10 assets. In Austin, we can own 10 assets. We're not there yet. But the point being, in these smaller markets, we may only get to, you know, two, three, or four. But we want to make sure that they are in the top quarter of assets or retail centers in those markets. So I think the bar is a little bit higher, but the risk-adjusted returns and the ones that we've identified are equally, or if not more, compelling than what we've seen in some of those larger markets where, to your point, can be a little bit more competitive.

當然，納許維爾的規模較大，但諾克斯維爾等一些城市與我們目前營運的市場具有很強的互補性。我們在這些市場的效率非常高。現在，我告訴你，這些市場的標準要嚴格得多，對嗎？你知道，在休士頓，我們可以擁有 10 項資產。在奧斯汀，我們可以擁有 10 項資產。我們還沒到那裡。但關鍵在於，在這些較小的市場中，我們可能只能進入兩、三或四個市場。但我們希望確保它們在這些市場的資產或零售中心中佔據前四分之一。因此，我認為門檻要高一些，但風險調整後的回報和我們所確定的回報與我們在一些較大市場中看到的回報一樣引人注目，甚至更加引人注目，正如你所說，這些市場的競爭力可能更強一些。

And the cap rates would be, or the risk-adjusted returns, are they 50basis points to 100 basis points higher?

那麼資本化率或風險調整後的報酬率是否會高出 50 個基點到 100 個基點呢？

I would say the former. I mean, look, they're some of the highest quality assets in those markets with great growth profiles. So the initial yields are still going to be in the sixes, but we're still buying everything that we look at has to make sense. And that tends to be anywhere in the low to mid sevens from a lever of our return perspective.

我認為是前者。我的意思是，看，它們是這些市場中品質最高的資產之一，具有良好的成長前景。因此，初始收益率仍將在 6% 左右，但我們仍將購買一切我們認為有意義的東西。從我們的報酬角度來看，這個數字往往在 7 分以下到 7 分中間。

My last question maybe, and I apologize if I'm using up my question here, but wanted to, you know, your cost of equity, I mean, you did raise a little bit of equity last quarter. Your stock continues to trade at, you know, sort of where consensus has your NAV. I know you have a pretty good balance sheet as it is, but, you know, If you see deals that you like and presumably, you're scouring the markets, why not raise more equity to fund some of those transactions? Talk about your thinking on that.

也許這是我的最後一個問題，如果我的問題在這裡用完了，我深感抱歉，但我想問一下，您知道，您的股權成本，我的意思是，您上個季度確實增加了一點股權。您的股票會繼續以與您的淨值一致的價格進行交易。我知道你的資產負債表已經相當不錯了，但是，你知道，如果你看到了你喜歡的交易，而且大概你正在搜尋市場，為什麼不籌集更多的股本來為其中一些交易提供資金呢？談談你對此的想法。

I think it's a good point. Obviously, our equity is precious. We want to make sure we're doing it at the right time and it's and anything we're doing is value created for both current and perspective shareholders. But the opportunities that have to match it as well, and that's what was so fortuitous in the back half of last year is that the pipeline we had deals that were very close to under contract or under contract and had an immediate use of proceeds.

我認為這是一個很好的觀點。顯然，我們的股權是寶貴的。我們希望確保我們在正確的時間做這件事，並且我們所做的任何事情都為現有和潛在股東創造價值。但是機會也必須與之相匹配，這就是去年下半年如此幸運的事情，那就是我們擁有的交易非常接近合約或合約中，並且可以立即使用收益。

Now I'm not saying it has to be matched perfectly like that, But if our cost of equity capital continues to be attractive or get more attractive, and we can put those proceeds to use in a creative manner and leverage our platform faster, because the whole goal is to use this platform to grow cash flow faster than other options within the sector, we're going to absolutely do that. But we've got to make sure that we can find opportunities and uses for that capital.

現在我並不是說它必須像那樣完美匹配，但如果我們的股本成本繼續具有吸引力或變得更具吸引力，我們可以以創造性的方式使用這些收益並更快地利用我們的平台，因為整個目標是使用這個平台比該行業的其他選擇更快地增加現金流，我們絕對會這樣做。但我們必須確保能夠找到機會並利用這些資本。

Thank you.

謝謝。

Thank you.

謝謝。

We now turn to Paulina Rojas with Green Street. Your line is open. Please go ahead.

現在我們來談談 Green Street 的 Paulina Rojas。您的線路已開通。請繼續。

Good morning. I find Nexon Square. Hi. I find Nexon Square an interesting property, unanchored, closer to a lifestyle center. How does pricing for a property like this compared to a traditional grocery anchored center in terms of cap rate. And how do you think about the growth profile on a relative basis and the risk as well?

早安.我找到了 Nexon Square。你好。我發現 Nexon Square 是一個有趣的房地產，沒有固定的地點，更接近生活中心。就資本化率而言，此類物業的定價與傳統的雜貨中心相比如何？您如何看待相對而言的成長情況以及風險？

Good morning, Paulina. Great questions. You're absolutely right. This is more of a lifestyle type of center. And the reason I say that it's unanchored, it doesn't have any traditional brochure or large box spaces. So you can imagine when we look at that, that certainly things we own things like this, but they tend to have some sort of shadow brochure or some box components.

早安，保利娜。很好的問題。你完全正確。這更像是一種生活方式的中心。我之所以說它是無固定的，是因為它沒有任何傳統的小冊子或大型的盒子空間。所以你可以想像，當我們看到它時，我們當然擁有這樣的東西，但它們往往有某種陰影手冊或一些盒子組件。

What made this particular asset attractive to us was the market The market in which it's in, Nextin, which is up near Somerville, the market is growing very, very quickly. And this asset is serving that market and will continue to serve that market as it relates to a lot of the dining options and local retail options that it has. And we found the in-place rents very attractive to us.

這項特定資產對我們有吸引力的原因是其所在的市場，Nextin 位於薩默維爾附近，這個市場成長非常非常快。而且這項資產正在服務於該市場，並將繼續服務於該市場，因為它與其擁有的許多餐飲選擇和本地零售選擇有關。我們發現現有租金對我們來說非常有吸引力。

Obviously, there is a different risk profile when you remove some sort of grocer, but it's a really great compliment for our portfolio because I think we've discussed with you and many in the past, we tend, you know, Inventrust 's anchors towards, you know, grocery and food centers, mostly necessity-based, but we are format agnostic if we find the risk-adjusted returns attractive. This is a market-driven strategy, not a Asset specific strategy or retail asset specific strategy.

顯然，當你移除某種雜貨店時，風險狀況就會有所不同，但這對我們的投資組合來說是一個非常好的補充，因為我認為我們已經與您以及過去的許多人討論過，我們傾向於將 Inventrust 的錨點放在雜貨店和食品中心，主要是基於必需品，但如果我們發現風險調整後的回報具有吸引力，我們就不會考慮格式。這是一種市場驅動的策略，而不是資產特定策略或零售資產特定策略。

So you can see us do things like a next in square and you can see us do some things like the form, which tends to have a little bit more box, but it's in a market that we really, really like and we got very comfortable with those rents as well. So we're always going to anchor to those necessity based centers, but these are nice compliments with different growth profiles and risk profiles that I think compliment and fill out the portfolio nicely.

因此，您可以看到我們做的事情，例如正方形中的下一個，您可以看到我們做的事情，例如表格，它往往有更多的框，但它處於我們非常非常喜歡的市場中，我們對這些租金也很滿意。因此，我們始終將以這些基於需求的中心為錨，但這些都是很好的補充，具有不同的成長概況和風險概況，我認為這些可以很好地補充和充實投資組合。

And in terms of pricing, how does the cap rate for something like this compares to a traditional high quality grocery anchored?

在定價方面，這類產品的資本化率與傳統高品質雜貨店相比如何？

I would say, let's put a cap rate aside, but when you think about the risk adjusted returns, you can think of it kind of falling in between what you would consider core grocery anchored and on the low end and then power center, it would be somewhere in between. Obviously, the underwritten rents are going to move that, but that's kind of where these types of centers fall. And I will mention, it is on the smaller size of a lifestyle center, which obviously was attractive to us as well, so 130,000 or so square feet. We got comfortable with the tenant mix and the curb-in-place rents.

我想說，讓我們先把資本化率放在一邊，但是當你考慮風險調整後的回報時，你可以想像它介於你認為的核心食品雜貨錨定和低端以及動力中心之間，它會介於兩者之間。顯然，承保租金將會影響這一點，但這正是這些類型的中心所處的位置。我要說的是，它是一個規模較小的生活方式中心，這顯然對我們也很有吸引力，它的面積大約是 130,000 平方英尺。我們對租戶組合和現有租金感到滿意。

And Thank you. That's all for me.

謝謝你。對我來說這就是全部了。

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

我們沒有其他問題了。現在我將話題交還給 DJ。布希先生，請做最後的評論。

Thank you to all for the questions and for joining us today. We look forward to seeing many of you in the months to come. Enjoy the rest of the week.

感謝大家的提問以及今天參加我們的活動。我們期待在未來的幾個月見到你們。享受本週剩餘的時間。

Ladies and gentlemen, today's call is now concluded. We'd like to thank you for your participation. You may now disconnect your lines.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與。現在您可以斷開線路了。