InvenTrust Properties (US:IVT)2023-02-15 17:59Financial Data and Key Metrics Changes - InvenTrust reported full year core FFO of $105.9 million or $1.57 per share, representing a 12% growth over 2021, driven by pro rata same property NOI and acquisitions [17][18] - Pro rata same property NOI finished at $141 million, growing 4.6% over last year, with a growth of 6% when excluding out of period rent collected [18] - The net leverage ratio was 25% and net debt-to-adjusted EBITDA is 4.8 times, with a pro rata weighted average interest rate of 4% [19] Business Line Data and Key Metrics Changes - The company leased over 461,000 square feet during the quarter, totaling 1.3 million square feet for 2022, ending the year at 96.1% leased occupancy, a 220 basis point increase [25] - Anchor space leased occupancy increased to 98.7% and small shop occupancy increased to 91.3%, both reaching all-time highs [25] Market Data and Key Metrics Changes - The company noted strong demand for space across its portfolio, with limited new supply in its markets, providing significant pricing and negotiating leverage [24] - The pro rata same property portfolio ABR was $19.22, an increase of 3.3% compared to the previous year, with anchor tenant ABR at $12.43 and small shop ABR at $32.12 [51] Company Strategy and Development Direction - InvenTrust's strategy focuses on a concentrated portfolio in the Sun Belt, predominantly grocery-anchored, aiming to deliver long-term value for shareholders [28][46] - The company is actively rotating capital out of non-core markets like Colorado to increase concentration in the Sun Belt, with plans for $150 million of net investments [36][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business despite economic uncertainties, citing strong performance in the Sun Belt portfolio and resilient grocery-anchored tenants [47] - The initial 2023 guidance anticipates core FFO between $1.59 and $1.64 per share, reflecting a growth of 1.3% to 4.5% over 2022 [21] Other Important Information - The Board announced a 5% increase in the dividend, bringing the annualized dividend to $0.86 per share [20] - The company completed the acquisition of the remaining stake in its joint venture, simplifying its investment story [46] Q&A Session Summary Question: Can you provide more information on the PGGM transaction and its impact on leverage? - Management indicated that while specific pricing details were not disclosed, the returns from the PGGM partnership are promising and align with the company's strategy [32] Question: What is the strategy regarding the Colorado assets and how does it fit into the $150 million investment plan? - Management clarified that exiting Colorado was part of a strategy to focus on the Sun Belt, allowing for better capital allocation [36][38] Question: Can you provide details on the cap rates around the sales? - Management did not provide specific cap rates but emphasized the strategic nature of the transactions and the focus on the Sun Belt [41]