Financial Data and Key Metrics Changes - The company reported a same-store NOI growth of 8.2%, with the street retail portfolio delivering 13% growth during the quarter [27][28] - The quarterly FFO increased to $0.29 compared to $0.28 in the previous quarter, despite short-term dilution from the City Point loan conversion [34][35] - The company maintained its FFO guidance for 2026, moving to a simplified reporting metric that excludes investment management gains [36][37] Business Line Data and Key Metrics Changes - The company executed $3.7 million in new leases during the third quarter, bringing total signed leases year-to-date to $11.4 million [16][21] - The average GAAP spread for new and renewal leases was 32%, with a notable 36% spread in high-growth markets [16][18] - The leasing pipeline increased to $8 million, indicating strong tenant demand and leasing velocity [16][21] Market Data and Key Metrics Changes - Sales in SoHo increased by 15%, Bleecker Street by over 30%, and the Gold Coast of Chicago by over 40% year-to-date [21][22] - Despite concerns in Washington, DC, sales on M Street rose by 16% year-over-year, showcasing resilience in urban markets [22] - The company noted a resurgence in foot traffic and consumer spending, particularly among affluent consumers, driving demand for street retail [6][9] Company Strategy and Development Direction - The company aims to become the premier owner-operator of street retail in the U.S., focusing on internal growth and external acquisitions [12][13] - The strategy includes enhancing the leasing portfolio in key urban markets and capitalizing on the demand for direct-to-consumer retail locations [6][12] - The company is confident in its ability to invest accretively despite rising costs of capital, leveraging its reputation as a buyer of choice in the street retail space [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing recovery in consumer spending, particularly among affluent consumers, which is expected to continue driving demand for retail space [46][47] - The company anticipates achieving 10% REIT portfolio NOI growth in 2026, supported by strong internal growth and a robust acquisition pipeline [33][38] - Management acknowledged the importance of adapting to market conditions and maintaining flexibility in funding strategies to support growth initiatives [64][66] Other Important Information - The company has raised approximately $212 million in equity to fund its acquisition pipeline and redevelopment projects [38] - The investment management platform is seeing increased interest from institutional investors, indicating a strong demand for retail assets [70] - The company is focused on simplifying its financial reporting to provide clearer insights into its core operating results [27][36] Q&A Session Summary Question: Can you provide details on the acquisition pipeline? - Management indicated that the $500 million pipeline is gross and includes specific negotiations, with a focus on street retail opportunities [56][57] Question: Are you seeing signs of slowing tenant demand? - Management confirmed strong tenant demand, driven by affluent consumers and the shift towards direct-to-consumer retail strategies [46][47] Question: What factors will influence the 5% to 9% same-store growth range in 2026? - Management highlighted that achieving the higher end of the range depends on the speed of leasing and market conditions, with confidence in surpassing 5% growth [51] Question: How is the company managing its balance sheet for future investments? - Management emphasized maintaining a pro-rata debt to EBITDA ratio and leveraging both equity and debt markets to fund acquisitions [64][66] Question: What is the level of demand from institutional partners for the investment management platform? - Management reported broad demand from institutional investors seeking retail opportunities, indicating a strong interest in partnering [70]

Financial Data and Key Metrics Changes - The company reported strong same-property NOI growth of nearly 5%, primarily driven by a 4.7% increase in base rent [7][14] - Full-year earnings growth outlook has been raised, with anticipated same-property NOI growth of 5.25% to 5.5% and mid-7% growth for NAREIT FFO [13][14] - The dividend has been increased by more than 7%, reflecting strong performance and commitment to shareholder returns [5][14] Business Line Data and Key Metrics Changes - The same-property percent lease rate is at 96.4%, with expectations to exceed prior peak levels due to strong demand and limited new supply [7][8] - Cash-free leasing spreads were strong at 13%, while gap rent spreads reached near record high levels at 23% [9][44] - The company has signed three new grocer leases in Q3, enhancing foot traffic and merchandising at key assets [8][9] Market Data and Key Metrics Changes - The company is experiencing significant demand across nearly all retailer categories, with a healthy tenant base and historically low bad debt [4][7] - The leasing pipeline remains robust, with 1 million square feet of leases in negotiation, indicating continued strong leasing activity [9][60] Company Strategy and Development Direction - The company emphasizes its unique position as the only national developer of grocery-anchored shopping centers at scale, focusing on high-quality developments [5][11] - The development pipeline is expected to reach approximately $300 million in starts for 2025, with a total of $800 million over the past three years [11][15] - The company aims to leverage its strong balance sheet and competitive advantages to drive sustainable cash flow growth [6][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, citing strong retailer demand and favorable leasing fundamentals [10][15] - The company anticipates continued above-trend same-property NOI growth in 2026, with expectations for total NOI growth in the mid-6% area [14][15] - Management highlighted the health of the tenant base and the positive impact of capital allocation strategies on earnings growth [4][13] Other Important Information - The company has successfully integrated newly acquired properties and is actively working to source attractive investment opportunities [12][13] - The balance sheet remains strong, with leverage within the target range and significant free cash flow available for funding growth [14][15] Q&A Session Summary Question: Can you provide some color on the 11 asset distribution transaction with your JV partner? - Management indicated that the transaction allowed for better capital recycling and alignment of interests with their long-term partner [18][19] Question: What are your expectations for same-property NOI growth in 2026? - Management expects a mid-3% growth, driven by base rent and a healthy tenant roster, with credit loss provisions similar to 2025 [21][24] Question: How should we think about the potential on development and redevelopment starts into next year? - Management expressed confidence in finding investment opportunities, with a shift towards ground-up development expected to continue [26][29] Question: Can you provide more color on the mix of new leases between anchors and shops? - Management noted that the increase in anchor transactions was coincidental for the quarter and not development-driven [32][33] Question: What are you seeing in the market regarding cap rates and IRRs? - Management reported that cap rates are trending lower due to increased capital flow into the sector, with a focus on maintaining quality in acquisitions [36][39] Question: Can you elaborate on your leasing pipeline and expectations for rent spreads? - Management highlighted strong rent spreads and the importance of embedded rent steps in their leasing strategy [43][44] Question: What is prompting early discussion about 2026 expectations? - Management clarified that providing early guidance has been a practice to ensure transparency, especially following the COVID period [80][81] Question: How does retailer sentiment today compare to previous high occupancy periods? - Management indicated that current retailer sentiment is strong, with a healthy tenant base contributing to high occupancy levels [88]

Financial Data and Key Metrics Changes - Same property NOI for the quarter was $44.3 million, representing a 6.4% increase year-over-year, driven by embedded rent escalations, occupancy gains, and positive rent spreads [10] - NAREIT FFO was $38.4 million, or $0.49 per diluted share, reflecting an 8.9% increase compared to the same quarter last year [10] - Year-to-date NAREIT FFO totaled $111.1 million, or $1.42 per diluted share, a 6% year-over-year increase [11] - Total liquidity stood at $571 million, including $71 million in cash and a full $500 million available under a revolving credit facility [12] Business Line Data and Key Metrics Changes - The company reported a same property NOI growth of over 6%, with healthy rent spreads and positive leasing activity across both anchors and small shops [4] - New leases for the third quarter achieved a 25.6% spread, while renewals averaged at 10.4%, resulting in a blended leasing spread of 11.5% [17] - Retention rate year-to-date was 82%, with a higher rate of 89% when excluding a single anchor space undergoing redevelopment [18] Market Data and Key Metrics Changes - Census data indicated retail sales are up year-over-year, with sustained strength in suburban centers across the Sunbelt [6] - The company noted that nine of the top 10 U.S. retail metros are in the Sunbelt, where it is heavily concentrated [6] - The limited level of new open-air retail development is seen as a competitive advantage, with rising costs and restrictive zoning keeping new supply muted [7] Company Strategy and Development Direction - The company maintains a hub-and-spoke operating model to manage a broad network of top-tier assets across Sunbelt markets efficiently [5] - The capital allocation strategy remains measured and disciplined, targeting opportunities that align with strict return thresholds [8] - Approximately 70% of the portfolio consists of neighborhood and community centers, with a focus on high-quality tenant bases and financial flexibility [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver solid total returns for shareholders, supported by favorable strip center fundamentals [9] - While household debt levels are rising and consumer confidence has weakened, day-to-day consumer behavior in the company's centers remains resilient [6] - The company raised its full-year same property NOI growth guidance to a range of 4.75% to 5.25% [14] Other Important Information - The company completed four acquisitions totaling $250 million during the quarter, funded primarily with cash on hand [13] - An annualized dividend of $0.95 per share was declared [13] Q&A Session Summary Question: Thoughts on tenants in discretionary categories, including restaurants - Management noted strong demand from quick service and sit-down dining, with most restaurants performing well in the portfolio [22][23] Question: Percentage of core grocery versus power and lifestyle in acquisition pipeline - The pipeline remains robust, with over $1 billion in assets being considered, primarily grocery-anchored [25][26] Question: Trajectory of occupancy over the next couple of quarters - Management expects a slight decline in small shop occupancy but anticipates a reacceleration in 2026 [32][33] Question: Confidence level to grow creatively from acquisitions moving into 2026 - Management emphasized the importance of responsible and creative growth strategies, focusing on high-quality assets [41][42] Question: Remaining budgeted bad debt expense for the year - The forecast includes visibility into the lower end of the bad debt range, with some assumptions for unforeseen fallout [46] Question: Lease-to-economic occupancy spread and its future - Management indicated that the spread is influenced by timing and expects it to stabilize between 150 to 200 basis points [53][54] Question: Balance between grocery sector strength and dining out trends - Management observed that both sectors have been complements rather than substitutes, with strong performance in both areas [56][57] Question: Comfort with increasing share of tertiary markets in the portfolio - Management is open to secondary and tertiary markets as long as the quality of assets remains high [62][63]

Financial Performance & Guidance - The company forecasts mid-7% year-over-year growth in Nareit FFO per share at the midpoint of guidance[34] - Same property NOI growth is guided at +5.25% to +5.5%, increased from a prior range of +4.5% to +5.0%[30, 34] - Non-cash revenues are guided at +/- $49 million[30] - The company expects a weighted average diluted share count of approximately 184.5 million for the calculation of Nareit FFO in 2025[35] Portfolio & Operations - Over 85% of the portfolio is grocery-anchored neighborhood and community centers[24] - The company has more than $668 million of development and redevelopment projects in process[24] - The signed-not-occupied (SNO) pipeline represents ~$36 million of base rent, reflecting a 200bps leased-to-occupied spread[36, 41, 43] - Of the $36 million ABR in the SNO pipeline, 32% is expected to rent commence by year-end 2025, and 99% by year-end 2026[45] Capital Structure & Investments - Net Debt & Preferred Stock to Trailing 12-Month EBITDAre is 5.3x[24] - The company has ~$1.5 billion revolver availability as of 9/30/2025[24] - Total capitalization is $19.3 billion, with equity representing 70%[62] - The company commenced a new ground-up development project in Jacksonville, FL, with total project costs of ~$112 million and a stabilized yield of ~8%[52, 56]

Financial Data and Key Metrics Changes - The company reported same property NOI for the quarter at $44.3 million, reflecting a 6.4% increase year-over-year, driven by embedded rent escalations, occupancy gains, and positive rent spreads [10] - NAREIT FFO for the third quarter was $38.4 million, or $0.49 per diluted share, representing an 8.9% increase compared to the same quarter last year [10] - Year-to-date NAREIT FFO totaled $111.1 million, or $1.42 per diluted share, reflecting a 6% year-over-year increase [11] - The company declared an annualized dividend of $0.95 per share [12] Business Line Data and Key Metrics Changes - Same property NOI growth was attributed to various factors: embedded rent escalations contributed 160 basis points, occupancy gains and positive rent spreads each added 100 basis points, and redevelopment activity contributed 60 basis points [10] - New leases achieved a 25.6% spread, while renewals averaged 10.4%, resulting in a blended leasing spread of 11.5% [17] Market Data and Key Metrics Changes - The company noted that retail sales in the Sunbelt region are up year-over-year, with foot traffic and occupancy levels remaining above national averages [5] - The company highlighted that nine of the top 10 U.S. retail metros are located in the Sunbelt, where it is heavily concentrated [5] Company Strategy and Development Direction - The company continues to focus on maintaining high occupancy, embedding contractual rent escalators, and pursuing selective, accretive acquisitions [4] - The capital allocation strategy remains disciplined, targeting opportunities that align with strict return thresholds and enhance asset quality [8] - The company aims to expand its portfolio in high-growth Sunbelt markets while managing a balanced approach between neighborhood/community centers and power/lifestyle properties [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Sunbelt consumer base, despite some caution signals such as rising household debt and weakened consumer confidence [5] - The company anticipates some deceleration in the fourth quarter due to backloaded property operating expenses and remaining bad debt reserves [13] - Management raised full-year same property NOI growth guidance to a range of 4.75% to 5.25% and increased the midpoint of NAREIT FFO guidance to $1.87 per share [13] Other Important Information - The company completed four acquisitions totaling $250 million during the quarter, funded primarily with cash on hand [12] - Total liquidity stood at $571 million, including $71 million in cash and a full $500 million available under a revolving credit facility [12] Q&A Session Summary Question: Thoughts on tenants in discretionary categories, including restaurants - Management noted strong demand from quick service and sit-down dining tenants, with more restaurants performing well than struggling [22][23] Question: Percentage of core grocery versus power and lifestyle in acquisition pipeline - The pipeline remains robust, with over $1 billion in assets being considered, predominantly featuring grocery components [25][26] Question: Trajectory of occupancy over the next couple of quarters - Management expects a slight decline in small shop occupancy but anticipates a reacceleration in 2026 [28][29] Question: Confidence in growing creatively from acquisitions moving into 2026 - Management emphasized the importance of responsible and creative growth strategies, focusing on high-quality assets in strong markets [37] Question: Remaining budgeted bad debt expense for the year - Management indicated that the forecast includes both visible and assumption-based elements, with a range of 55 to 75 basis points for bad debt [40] Question: Lease-to-economic occupancy spread and its future trajectory - Management suggested that the spread is influenced by timing and expects it to stabilize between 150 to 200 basis points [46] Question: Balance between grocery sector strength and dining out trends - Management observed that grocery and dining sectors have been complementary rather than substitutive within their portfolio [48]

INVESTOR PRESENTATION Q3 2025 INTRODUCTORY NOTES Forward-Looking Statements Disclaimer Forward-Looking Statements in this presentation, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of InvenTrust's management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statem ...

Financial Data and Key Metrics Changes - FFO as adjusted increased by 4% year-over-year for Q3 2025, with year-to-date growth at 7% compared to the first nine months of the previous year [4] - Same property net operating income (NOI) rose by 4.7% for the quarter and 5.4% year-to-date [4] - The company raised its 2025 FFO as adjusted guidance to a new range of $1.42-$1.44 per share, representing 6% growth over 2024 at the midpoint [8][17] Business Line Data and Key Metrics Changes - Leasing activity totaled 31 deals aggregating 347,000 sq ft, including 20 renewals at a 9% spread and 11 new leases at a 61% spread [9] - Same property lease rate stands at 96.6%, a decline of 20 basis points from the previous quarter [10] - Shop occupancy rate remained flat at 92.5% [11] Market Data and Key Metrics Changes - The acquisition market remains competitive, driven by institutional capital and tighter spreads from traditional banks [7] - The company’s Boston portfolio now includes seven properties valued at nearly $500 million, representing about 10% of the company's total value [7] Company Strategy and Development Direction - The company is focused on capital recycling, having acquired nearly $600 million in high-quality shopping centers while disposing of approximately $500 million in non-core assets [7] - The active redevelopment pipeline totals $149 million with a projected yield of 15% [12] - The company aims to generate sustainable 3%+ growth in same property NOI [72] Management's Comments on Operating Environment and Future Outlook - Management expects shopping center fundamentals to remain strong due to favorable supply-demand dynamics and record low vacancy rates [8] - The company is optimistic about the leasing market, with national retailers in expansion mode and willing to pay necessary rents [14][56] - Management believes the supply-demand imbalance in retail will continue to favor their properties for the foreseeable future [68] Other Important Information - The company completed a $39 million acquisition of Brighton Mills, a grocery-anchored shopping center, funded by proceeds from the sale of other properties [4][5] - The company has a strong liquidity position of over $900 million, including $145 million in cash [16] Q&A Session Summary Question: Timeline for lease expirations at Brighton Mills - Management indicated that most leases at Brighton Mills expire in 22 years, with expected NOI growth exceeding 3% [22] Question: Breakdown of one-time items recognized in 2025 - Management highlighted about $2 million in one-time collections and $1.5 million related to CAM recovery billings as non-recurring items [24][25] Question: Opportunities at Shoppers World - Management discussed flexibility with the Kohl's parcel and potential mixed-use opportunities for redevelopment [32] Question: Rent spreads in the quarter - Management noted that the 60% rent spread was driven by unique anchor leases, with expectations for double-digit spreads going forward [34] Question: Creating more shop space in the portfolio - Management is actively studying opportunities to split anchor spaces into shop spaces, with high demand for shop tenants [40][41] Question: Acquisition environment and competition - Management acknowledged a competitive market with increased interest from institutional capital, but emphasized a disciplined approach to acquisitions [46][48] Question: Tenant demand and balance between restaurants and grocers - Management reported strong demand from both grocers and restaurants, with no significant push-pull tension between the two [56] Question: Institutional capital demand in the D.C. metro area - Management noted that while Boston and New York are more in demand, their D.C. centers are performing well [61] Question: Sustainability of high occupancy levels - Management attributed sustained high occupancy levels to a favorable supply-demand dynamic in the retail market [67]

Financial Data and Key Metrics Changes - FFO as adjusted increased by 4% year-over-year for Q3 2025, with year-to-date growth at 7% compared to the first nine months of the previous year [4] - Same property net operating income (NOI) rose by 4.7% for the quarter and 5.4% year-to-date [4] - The company raised its 2025 FFO as adjusted guidance to a new range of $1.42 to $1.44 per share, representing 6% growth over 2024 at the midpoint [8][17] Business Line Data and Key Metrics Changes - Leasing activity totaled 31 deals aggregating 347,000 square feet, including 20 renewals at a 9% spread and 11 new leases at a 61% spread [9] - Same property lease rate stands at 96.6%, with a 20 basis point decline from the previous quarter [10] - Shop occupancy rate remained flat at 92.5%, while the overall same property NOI growth, including redevelopment guidance, was increased to a new midpoint of 5.25% [11][17] Market Data and Key Metrics Changes - The acquisition market remains competitive, driven by institutional capital and tighter spreads from traditional banks [7] - The company’s Boston portfolio now includes seven properties valued at approximately $5,500 million, representing about 10% of the company's total value [7] - The overall leasing market shows strong demand, with year-to-date leasing spreads averaging 40% on new leases and nearly 10% on renewals [8] Company Strategy and Development Direction - The company is focused on capital recycling, having acquired nearly $600 million of high-quality shopping centers at an average 7% cap rate while disposing of approximately $500 million of non-core assets at a 5% cap rate [7] - The active redevelopment pipeline totals $149 million with a projected yield of 15% [12] - The company aims to generate sustainable 3% plus growth through strategic acquisitions and dispositions [72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of shopping center fundamentals, driven by favorable supply-demand dynamics and record low vacancy rates [8] - The company anticipates continued strong demand for retail space, particularly in the Northeast Corridor market [14] - Management highlighted the importance of maintaining a balance between restaurant and grocery tenants to ensure overall tenant success [56] Other Important Information - The company completed the acquisition of Brighton Mills, a grocery-anchored shopping center, for $39 million, expecting annual NOI growth to exceed 3% [4][5] - The company has a strong liquidity position of over $900 million, including $145 million in cash [16] Q&A Session Summary Question: Timeline for monetizing opportunities at Brighton Mills - Management indicated that most leases at Brighton Mills have terms extending over the next 10 to 22 years, with confidence in achieving over 3% NOI growth [22] Question: Breakdown of one-time items recognized in 2025 - Management highlighted approximately $2 million in one-time collections related to old receivables and about $1.5 million from CAM recovery billings as non-recurring items [24][25] Question: Opportunities at Shoppers World - Management discussed the flexibility to work with the Kohl's parcel separately and the potential for redevelopment or retenanting to enhance value [32] Question: Rent spreads in the quarter - Management noted that the 60% rent spread was driven by unique anchor leases with HomeGoods and Ross, and while double-digit spreads are expected, 60% is not sustainable every quarter [34][35] Question: Creating more shop space in the portfolio - Management is actively studying opportunities to split anchor spaces into shop spaces, with demand for shop space remaining strong [40][41] Question: Acquisition environment and funding - Management acknowledged a competitive acquisition market with increased interest from institutional capital, while maintaining a disciplined approach to bidding [46][48] Question: Institutional competition for nontraditional assets - Management noted that while there is interest in nontraditional shopping center assets, their platform allows them to differentiate and find value-add opportunities [52][53] Question: Balancing demand between restaurants and grocers - Management indicated that both sectors are in expansion mode, with no significant push-pull tension observed [56] Question: Shift in demand in the D.C. metro area - Management reported strong performance and demand in their D.C. centers, with no significant shifts in institutional capital interest noted [61] Question: Sustaining high occupancy levels - Management emphasized that supply-demand metrics favor sustained high occupancy levels due to limited new retail construction [67]

Financial Data and Key Metrics Changes - NAREIT FFO was reported at $0.56 per share for the third quarter, driven by same-property NOI growth of 4% [12] - Base rent growth decreased to a 270 basis point contribution due to a 150 basis point drop in billed occupancy compared to the same quarter last year [12][15] - The company expects base rent growth to accelerate into 2026 as billed occupancy rebounds [12] Business Line Data and Key Metrics Changes - The company executed 1.5 million square feet of new and renewal leases at a blended cash spread of 18% [6] - New leases were signed at a record rate of $2,585 per square foot, with small shop occupancy hitting a record of 91.4% [6][7] - The signed but not yet commenced rent pipeline remains above $60 million, with $22 million of ABR commenced during the quarter [7][13] Market Data and Key Metrics Changes - The percentage of ABR from grocery anchor tenants is now at 82%, with a 35% increase in year-over-year traffic when a grocer is added [9] - The company closed on the $223 million acquisition of LaCenterra at Cinco Ranch, with seven new leases signed or in process [10] Company Strategy and Development Direction - The company continues to focus on executing its business plan, with a strong emphasis on leasing and redevelopment [5][11] - The redevelopment platform is delivering low-risk, compelling returns with several years of runway for future growth [11] - The company is positioned to recycle capital from low-growth assets into those with higher growth potential [11][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the leasing environment, noting that the pipeline is higher than a year ago despite signing 10% more in GLA this year [38] - The company anticipates significant tailwinds from 2025 rent commencements and a strong signed but not yet commenced rent pipeline [16] - Management expects lease settlement income to be a headwind to 2026 FFO growth but remains confident in the overall outlook [15][44] Other Important Information - The company announced a 7% increase in its annual dividend to a rate of $1.23, allowing for maximum flexibility in capital markets [15] - The SEC shelf registration statement is due to expire next month, and a replacement will be filed [14] Q&A Session Summary Question: Factors contributing to same-store NOI growth acceleration in Q4 - Management highlighted the commencement of $22 million of rent in the quarter and an additional $19 million expected to commence between Q3 and Q4 [19][20] Question: Future occupancy levels and reinvestment pipeline - Management noted that there is room for improvement in shop occupancy, with several hundred basis points more to run [26] Question: Acquisition pipeline and cap rates - Management indicated that the market remains competitive, focusing on value-add opportunities and strong growth potential in acquisitions [32][33] Question: Leasing pipeline and retailer expansion - Management remains optimistic about retailer expansion, with a strong pipeline and positive conversations with tenants [38] Question: Tenant health and bad debt expense - Management expressed confidence in tenant credit quality and noted a significant reduction in exposure to at-risk tenancy [48] Question: Yield expectations for redevelopment projects - Management stated that the average yield for redevelopment projects remains in the high single-digit to low double-digit range, with no changes to their thresholds [72][73] Question: Capital recycling and disposition pipeline - Management emphasized the importance of recycling capital from low-growth assets into higher-growth opportunities [84][86]

Financial Data and Key Metrics Changes - NAREIT FFO was reported at $0.56 per share for Q3 2025, driven by same-property NOI growth of 4% [11] - Base rent growth decreased to a 270 basis point contribution due to a 150 basis point drop in billed occupancy compared to the previous year [11] - The company expects base rent growth to accelerate into 2026 as billed occupancy rebounds [11] Business Line Data and Key Metrics Changes - The company executed 1.5 million square feet of new and renewal leases at a blended cash spread of 18% [4] - New leases were signed at a record rate of $2,585 per square foot, with small shop occupancy hitting a record of 91.4% [5][6] - The signed but not yet commenced rent pipeline remains above $60 million, with $53 million of net new rent included [12] Market Data and Key Metrics Changes - The percentage of ABR from grocery anchor tenants is now at 82%, with a 35% increase in year-over-year traffic when a grocer is added [8] - The company closed on the $223 million acquisition of LaCenterra at Cinco Ranch, with seven new leases signed or in process [9] Company Strategy and Development Direction - The company is focused on executing its business plan, which includes attracting high-quality tenants and enhancing its redevelopment platform [4][10] - The company plans to continue recycling capital from low-growth assets into those with higher growth potential [10][74] - The partnership with Publix is expanding, with several new projects announced and more in the pipeline [8][59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the leasing environment, noting that retailers are looking to expand despite macro uncertainties [38] - The company updated its FFO guidance to $2.23 to $2.25 and affirmed its same-property NOI range of 3.9% to 4.3% [14][15] - Management highlighted a strong demand from tenants to locate in their centers, with significant tailwinds expected from 2025 rent commencements [16] Other Important Information - The company announced a 7% increase in its annual dividend to a rate of $1.23, allowing for the retention of free cash flow while meeting REIT dividend requirements [14] - The company has $1.6 billion of available liquidity as of September 30, including $400 million from a recent issuance [13] Q&A Session Summary Question: Factors contributing to same-store NOI growth acceleration in Q4 - Management noted that $22 million of rent commenced in the quarter and an additional $19 million is expected to commence between Q3 and Q4, contributing to growth [18][19] Question: Future occupancy levels and reinvestment pipeline - Management indicated that there is room for improvement in shop occupancy, with several hundred basis points of potential growth remaining [26][27] Question: Acquisition opportunities and cap rate trends - Management highlighted a competitive market for acquisitions, focusing on value-add opportunities that align with their growth strategy [30][32] Question: Leasing pipeline and retailer expansion - Management remains optimistic about the leasing pipeline, noting that retailers are still looking to expand despite macroeconomic uncertainties [36][38] Question: Tenant health and bad debt expense - Management expressed confidence in tenant credit quality and noted a reduction in exposure to at-risk tenants compared to previous years [45][46] Question: Capital recycling and disposition pipeline - Management discussed the strategy of selling low-growth assets to reinvest in higher-growth opportunities, maintaining a focus on long-term IRR [70][74]