Tanger (NYSE:SKT) Q4 2025 Earnings call February 25, 2026 08:30 AM ET Company ParticipantsAshley Curtis - AVP for Investor RelationsFloris Van Dijkum - Managing Director for Equity ResearchHarrison Slater - Equity Research AssociateHong Zhang - Vice President for North America Equity Research (REITs)Juan Sanabria - Managing Director for U.S. Real Estate Equity ResearchJustin Stein - EVP and Chief Revenue OfficerMichael Bilerman - EVP, CFO, and Chief Investment OfficerNaishal Shah - Senior Associate for Equi ...

Core Insights - Retail REIT investors often focus on Realty Income and Regency Centers for stability, but their growth strategies differ significantly [1][3] Realty Income - Realty Income's strength lies in its scale and diversification, owning over 15,500 properties with a portfolio occupancy of 98.7% as of Q3 2025 [4] - The company reported a 10% year-over-year revenue increase to nearly $1.47 billion in Q3 2025, with adjusted funds from operations (AFFO) per share at $1.08 [5] - Realty Income has declared 668 consecutive monthly dividends, with an annualized payout of $3.24 per share, supported by long lease durations and high-quality tenants [7] - The model prioritizes predictability and scale, but may limit upside during strong economic growth due to gradual same-store revenue growth [8] Regency Centers - Regency Centers achieved strong operational performance in 2025, with same-property NOI growth of 4.7% in Q4 and 5.3% for the full year, driven by high occupancy and strong rent spreads [9] - The company deployed over $825 million into investments in 2025, with ground-up development returns exceeding 7% [12] - Regency maintains strong financial health with A3 and A- credit ratings, and emphasizes strong free cash flow without the need to raise equity for its development pipeline [13] - The focus on grocery-anchored suburban retail provides a competitive edge, although it carries risks related to consumer spending and tenant disruptions [14] Comparative Estimates - The Zacks Consensus Estimate for Realty Income's 2025 and 2026 sales implies year-over-year growth of 8.54% and 7.15%, respectively, with FFO per share growth of 1.91% and 3.83% [15] - For Regency, the 2026 sales estimate suggests year-over-year growth of 3.41%, with a revised FFO per share for 2025 indicating a 3.88% increase [18] Price Performance and Valuation - Over the past three months, Realty Income shares rose 15.6%, while Regency stock gained 9.1%, outperforming the Zacks REIT and Equity Trust - Retail industry [20] - Realty Income trades at a forward price-to-FFO of 14.63X, while Regency trades at 15.61X, both above their three-year medians [21] Conclusion - Realty Income offers stability and predictable cash flow through diversification and long lease durations [24] - Regency Centers is positioned for faster internal growth with strong leasing spreads and development yields, making it a more attractive option for investors seeking durable earnings momentum [25]

Inventrust Properties (NYSE:IVT) Q4 2025 Earnings call February 11, 2026 10:00 AM ET Speaker10Thank you for standing by, and welcome to InvenTrust's fourth quarter and full year 2025 earnings conference call. My name is Becky, and I will 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 inventrustproperties.com. All lines will be muted t ...

Financial Data and Key Metrics Changes - In 2025, the company achieved over 4.5% growth in AFFO per share, with a total investment of $1.55 billion across its three investment platforms, marking over 60% year-over-year growth [6][8] - Core FFO per share for Q4 was $1.10, representing a 7.3% year-over-year increase, while full-year Core FFO per share was $4.28, reflecting a 5.1% increase [21] - AFFO per share for Q4 was $1.11, a 6.5% year-over-year increase, and for the full year, it was $4.33, indicating 4.6% year-over-year growth [21][22] Business Line Data and Key Metrics Changes - In Q4, the company invested approximately $377 million in 94 high-quality retail net lease properties, with notable transactions including ground leases to Lowe's and Home Depot [11][12] - For the full year 2025, nearly $1.6 billion was invested in 338 retail net lease properties, with over $1.4 billion originating from the acquisition platform at a weighted average cap rate of 7.2% [12][13] - The development and DFP platforms had a record year with 34 projects completed or under construction, representing approximately $225 million of committed capital [13][14] Market Data and Key Metrics Changes - The company's investment-grade exposure at year-end stood at nearly 67%, with occupancy increasing to 99.7%, reflecting a 50 basis point improvement since the first quarter [16] - The weighted average cap rate for acquired properties was 7.1%, with a weighted average lease term of 9.6 years [12] Company Strategy and Development Direction - The company aims to increase its 2026 investment guidance to a range of $1.4 billion to $1.6 billion, representing a 10% increase from the prior range [9] - The company is focused on maintaining a fortress balance sheet and executing on its investment guidance without raising additional equity capital [20] - The company is enhancing operational efficiencies through IT improvements and anticipates a material reduction in G&A as a percentage of revenue [8][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals supporting the company's outlook, citing a strong portfolio and exceptional team depth [6] - The management noted that the current economic environment is challenging for middle-income consumers, which may impact retail trends [101] - The company expects to maintain a growth trajectory with a goal of delivering 10% operational returns and achieving two-year stacked AFFO growth [108] Other Important Information - The company raised approximately $1.5 billion in capital during the year, including a $400 million bond offering and a $350 million term loan [17][18] - The company achieved an A- rating from Fitch, which is expected to deliver long-term benefits to its cost of capital [16][20] Q&A Session Summary Question: Increase in 2026 investment guidance - Management indicated that the increase is due to secured transactions, including sale-leaseback deals and increased confidence in development projects [26] Question: Non-core asset sales - Management explained that capital recycling focuses on opportunistic sales of non-core assets, driven by valuations in the market [27] Question: Cap rate trends - Management noted no material changes in cap rates and that rent escalators have been stable, reflecting historical inflation [31][32] Question: Construction costs - Management confirmed that construction costs are not decreasing and are in line with last year's levels, with efforts to find efficiencies [33][34] Question: Sale-leaseback interest - Management stated that while there is no increase in sale-leaseback velocity, they have specific transactions lined up with existing tenants [40] Question: Development investment commitments - Management expressed optimism about growth in development investments but noted that timing is often subject to third-party approvals [69] Question: Credit loss assumptions - Management indicated that credit loss assumptions for 2026 are in line with 2025, with a focus on maintaining a strong portfolio [70]

FEBRUARY 2026 Agree Realty Overview (NYSE: ADC) NET LEASE REIT FOCUSED ON THE ACQUISITION & DEVELOPMENT OF HIGH-QUALITY RETAIL PROPERTIES OUR COMPANY Founded in 1971 by Executive Chairman, Richard Agree Public on the NYSE since 1994 $12.6 billion retail net lease REIT headquartered in Royal Oak, Michigan(1) 2,674 retail properties totaling approximately 55.5 million square feet in all 50 states Investment grade issuer ratings of A- from Fitch, Baa1 from Moody's, and BBB+ from S&P RETHINK RETAIL Capitalize o ...

Financial Data and Key Metrics Changes - Same property NOI grew by 4.2% for the year, with a 6% increase in the fourth quarter, supported by a 360 basis points contribution from base rent growth [8][14][15] - FFO for the year was at the high end of guidance at $2.25 per share, up 5.6% year-over-year [8][15] - Record leasing year with $70 million of new rent executed, and small shop occupancy increased to a new high of 92.2% [8][9] Business Line Data and Key Metrics Changes - New lease rent growth for the year was 39%, and renewal rent growth was 15%, marking the third consecutive year of mid-teens renewal growth [10] - Retention rate improved to 87%, a 180 basis point increase from the previous year [10] - Overall Capex spending decreased by 14% year-over-year, the lowest since 2021 [10] Market Data and Key Metrics Changes - Demand from high-quality tenants remains robust, with significant new leases signed with operators like Publix and Sprouts [9] - The average net effective rent reached a record $23.66, with a payback period averaging two years [18] - The company ended the period with $1.6 billion of available liquidity, including $360 million in cash raised [18] Company Strategy and Development Direction - The company plans to continue capital allocation towards opportunities that create outsized value without relying solely on acquisitions for growth [6][8] - The operational realignment from four to three regions has led to greater efficiency and stronger leasing execution [7] - The company is focusing on technology and analytics, with early initiatives in AI and automation yielding positive results [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the portfolio and the ability to capture continued demand for well-located open-air retail centers [14][15] - The company anticipates 4.5%-5.5% same property NOI growth for 2026, driven by expected base rent contributions [16][17] - Management highlighted the strong credit quality of the tenant base and limited exposure to high-risk sectors [21][85] Other Important Information - The company acquired two high-quality grocery-anchored centers in Denver and Southern California in the fourth quarter [12] - Dispositions totaled $170 million during the quarter, focusing on assets with limited ROI [13] - The company is seeing strong competition for space, which is driving down cap rates for lower-growth assets [78] Q&A Session Summary Question: Guidance for bad debt this year - Management indicated that the guidance of 75-100 basis points reflects improved tenant health trends and a stronger underlying tenancy [21][23] Question: Acquisition environment and capital recycling - Management expressed optimism about the transaction pipeline and emphasized the focus on redevelopment opportunities for capital deployment [27][30] Question: Upper end of same-property NOI guidance - Management explained that the guidance reflects a conservative approach, considering the compounding of rent commencements and the need to execute on the SNO pipeline [35][38] Question: Use of technology and AI for tenant health evaluation - Management discussed the implementation of data-driven decisions to monitor tenant health and identify early signals of potential issues [87][88] Question: Sustainability of lower CapEx spend - Management believes the current lower CapEx run rate is sustainable due to improved tenant quality and reduced deferred maintenance [90][92]

Financial Data and Key Metrics Changes - Regency Centers achieved NAREIT FFO per share growth of close to 8% and Core Operating Earnings per share growth of nearly 7% for the full year 2025, driven by strong operating fundamentals and substantial external growth from acquisitions and development projects [15][18] - Same-Property NOI growth finished at 5.3%, supported by substantial base rent contributions and low levels of uncollectible lease income [7][15] Business Line Data and Key Metrics Changes - The company reported a significant increase in same-property shop occupancy by 40 basis points, reaching a record of 94.2% leased at year-end [7][8] - Cash rent spreads of 12% in Q4 and renewal spreads at a record 13% highlight the depth of embedded mark-to-market in the portfolio [9][10] Market Data and Key Metrics Changes - The grocery leasing activity was significant, with leases signed with major retailers such as Whole Foods, Sprouts, and Trader Joe's, indicating strong demand in the grocery sector [8][9] - The company noted that tenant demand remains exceptionally strong across nearly every category, with a notable increase in leasing activity for shop spaces [7][10] Company Strategy and Development Direction - Regency Centers is focused on ground-up development as a primary driver of external growth, with over $300 million in new project starts in 2025 and a pipeline translating into meaningful NOI growth in 2026 and beyond [5][12] - The company is leveraging its expertise and long-standing tenant relationships to build high-quality shopping centers at meaningful spreads to market value, positioning itself favorably in a low-supply growth environment [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, noting that physical retail, particularly grocery-anchored real estate, continues to benefit from limited new supply and strong tenant demand [6][18] - The guidance for 2026 anticipates same-property NOI growth in the range of 3.25%-3.75%, driven by rent spreads and redevelopment deliveries [16][17] Other Important Information - The company has a strong balance sheet with A3, A- credit ratings from Moody's and S&P, and nearly full availability on its $1.5 billion credit facility, providing a solid foundation for future investments [18] - Regency Centers is not planning to raise equity or sell properties to fund its investment pipeline, relying instead on strong free cash flow generation [18] Q&A Session Summary Question: Thoughts on acquisitions and market opportunities - Management noted that there is growing demand for grocery-anchored real estate, with a broad range of opportunities available, but emphasized that acquisitions will only be pursued if they meet quality and growth profiles [20][22] Question: Impact of Amazon closing grocery stores - Management reassured that the closure of Amazon Fresh stores does not indicate a pullback in physical retail, as Amazon still owns Whole Foods and is expanding that brand [28][29] Question: Development and redevelopment spend guidance - The company indicated that the $325 million development and redevelopment spend is roughly two-thirds ground-up and one-third redevelopment, with a strong focus on ground-up development moving forward [35][37] Question: Current tenant health and consumer resilience - Management reported that tenant health remains strong, with below-average accounts receivable and increasing sales and foot traffic, indicating confidence in the current market conditions [51][53] Question: Construction cost assumptions and pressures - Management expressed confidence in stable construction costs and good visibility in their underwriting, indicating no anticipated pressure on development yields [94][95]

Core Insights - The retail REIT sector is showing signs of stabilization and improvement, with expectations to surpass Q4 2025 earnings estimates due to steady consumer demand and limited supply growth [2][4][6] Retail REIT Performance - Key retail REITs such as Simon Property Group, Regency Centers, Kimco Realty, and Federal Realty Investment Trust are set to report their Q4 results, reflecting the market conditions from late 2025 [3][4] - Cushman & Wakefield's report indicates a positive net absorption of approximately 3.4 million square feet in Q4 2025, marking the strongest quarterly improvement since Q4 2023 [5] Market Conditions - National retail vacancy rates are at 5.7%, indicating tight conditions compared to historical norms, with limited new supply stabilizing occupancy rates [4][6] - Retail real estate fundamentals are expected to maintain steady performance, with vacancy rates projected to remain below 6% into 2026 and rent growth anticipated in the 2-2.5% range [6] Company-Specific Insights - **Simon Property Group**: Expected to report revenues of $1.63 billion for Q4 2025, reflecting a 2.84% year-over-year increase, with a focus on high-quality assets and omnichannel integration [10][11] - **Regency Centers**: Anticipated to report revenues of $398.94 million, a 7.09% increase year-over-year, supported by a well-located portfolio and strong demand for grocery-anchored shopping centers [12][13] - **Kimco Realty**: Projected revenues of $537.59 million for Q4 2025, indicating a 2.32% year-over-year increase, benefiting from a diverse tenant base and focus on mixed-use developments [15][16] - **Federal Realty**: Expected to report revenues of $328.96 million, a 5.63% increase year-over-year, driven by improving demand for premium retail assets and strategic acquisitions [18][19]

Core Insights - The retail REIT sector has stabilized after years of uneven recovery, supported by steady consumer demand and disciplined supply growth, with holiday sales showing resilience [1][3] - Several retail REITs, including Simon Property Group, Regency Centers, Kimco Realty, and Federal Realty Investment Trust, are set to report their fourth-quarter results, which will clarify the impact of late-2025 market conditions on earnings [2] Retail Real Estate Market Conditions in Q4 2025 - Cushman & Wakefield's report indicates strengthening retail demand, with net absorption positive across all major U.S. regions and national retail vacancy at 5.7%, reflecting tight conditions compared to historical norms [3] - Approximately 3.4 million square feet of net absorption was recorded in Q4 2025, marking the strongest quarterly improvement since Q4 2023, with asking rents trending higher to $25.29 per square foot [4] Retail Real Estate Outlook - Retail real estate fundamentals are expected to perform steadily, with vacancy rates projected to remain below 6% into 2026 and rent growth anticipated in the 2-2.5% range [5] Company-Specific Insights Simon Property Group - Simon Property Group has a Zacks Rank of 2 and an Earnings ESP of +0.67%, with an expected revenue of $1.63 billion for Q4 2025, indicating a 2.84% year-over-year increase [8][11] - The company is expected to benefit from high-quality assets and a strategic focus on omnichannel integration and mixed-use developments [9] Regency Centers - Regency Centers holds a Zacks Rank of 2 and an Earnings ESP of +1.11%, with a revenue estimate of $398.94 million for Q4 2025, suggesting a 7.09% increase year-over-year [12][14] - The company’s well-located portfolio and focus on grocery-anchored shopping centers are expected to drive solid demand and leasing activity [13] Kimco Realty - Kimco Realty has a Zacks Rank of 3 and an Earnings ESP of +1.43%, with a revenue estimate of $537.59 million for Q4 2025, indicating a 2.32% year-over-year increase [15][17] - The company benefits from a diverse tenant base and a focus on developing mixed-use assets in strong economic areas [16] Federal Realty Investment Trust - Federal Realty has a Zacks Rank of 3 and an Earnings ESP of +0.90%, with a revenue estimate of $328.96 million for Q4 2025, suggesting a 5.63% increase year-over-year [18][20] - The company is expected to gain from improving demand for its premium retail assets and a focus on value-accretive acquisitions [19]

Core Insights - Simon Property Group, Inc. (SPG) has established a highly attractive retail property portfolio and has increased its dividends at a rate significantly higher than its peers [1] - The equity market serves as a powerful mechanism for wealth creation or destruction over the long term, with daily price fluctuations contributing to this dynamic [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1] Company Overview - SPG is recognized as one of the best-performing stocks in the market [1] - The company has a strong emphasis on dividend growth, outpacing its competitors [1] Investment Strategy - Pacifica Yield aims to identify investment opportunities in sectors such as high-growth companies, high-dividend stocks, REITs, and green energy [1]