InvenTrust Properties (US:IVT)2024-02-14 20:50Financial Data and Key Metrics Changes - NAREIT FFO for Q4 2023 was $30.8 million or $0.45 per diluted share, with full year NAREIT FFO at $115.5 million or $1.70 per diluted share, driven by NOI growth and acquisitions [22] - Core FFO for Q4 2023 was $27.8 million or $0.41 per diluted share, a 21% increase year-over-year, with full year results at $111.9 million or $1.65 per diluted share, a 5% increase [23] - Same-property NOI grew by 6.4% in Q4 2023 and 4.9% for the full year, primarily due to base rent growth [23][24] Business Line Data and Key Metrics Changes - The total portfolio ABR increased to $19.48, reflecting a 2.1% growth compared to 2022 [16] - The company executed more new deals in Q4 2023 than in any quarter since 2019, with lease occupancy at over 96% and small shop tenancy reaching an all-time high of 92.5% [12][32] Market Data and Key Metrics Changes - Approximately 85% of the company's properties are located in states benefiting from positive migration trends, particularly Texas and Florida [11] - The company reported strong leasing velocity despite retail bankruptcies, indicating resilience in the Sun Belt markets [12][18] Company Strategy and Development Direction - The company focuses on owning and operating essential open-air retail centers in the Sun Belt region, maintaining a low-leveraged capital structure and disciplined capital allocation [4][10] - InvenTrust aims to selectively pursue new acquisitions while monitoring cost of capital against private market values [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying credit strength of tenants and the necessity-based offerings within the merchandise mix, despite potential economic disruptions [18] - The company anticipates that favorable trends will offset challenges from retail bankruptcies, with anchor leasing efforts expected to contribute to growth beyond 2024 [13][20] Other Important Information - The company raised $5.4 million through an ATM program, marking its first equity raise since going public [26] - A dividend payment of $0.215 per share was declared, with a 5% increase announced for April 2024, bringing the annualized dividend to $0.905 per share [27] Q&A Session Summary Question: What is the company's exposure to floating rates? - Management confirmed that floating rate exposure is just under 10% and expressed comfort with this level while monitoring market conditions [37] Question: What is the rationale behind the small size of the ATM issuance? - The small issuance was a strategic decision to demonstrate access to capital, with plans to continue if market conditions are favorable [51][52] Question: What are the growth expectations in the Phoenix market? - Management indicated that while it is challenging to achieve scale quickly, they are optimistic about future opportunities in Phoenix and will continue to explore acquisitions in the area [70][72]