InvenTrust Properties Corp. BofA NY Global Real Estate Conference 2026

Yeah. Thanks so much, Samir. Thank you guys for having us, Andrew. With me today is Christy David, our Chief Operating Officer and General Counsel, and Dave Heimberger, our Chief Investment Officer. I think most of the faces here certainly look familiar. Thanks for joining us and your interest. Just a quick background, InvenTrust Properties, 78 properties, open air essential retails exclusively in Sun Belt markets. Two thirds of our portfolio is kind of core neighborhood grocery-anchored centers, the balance being power centers. But the sole focus and mandate for our company, is to own and operate essential retail open air centers in markets that we feel that are exhibiting better growth characteristics than what you see in the balance of the country. In which case, that shows up through our ability to push rents and grow cash flow faster.

Most certainly, our goal is to grow it faster than the sector average or what else is available in the public market. We've been a public company for almost five years. It'll be five years on October 13th. Over that five-year period, we've grown NOI by over 20%, FFO per share by over 25%, grown the asset base by over a half a billion dollars, with the expectation that we can continue to do that for the foreseeable future. We have plenty of capacity on our balance sheet to continue to grow our business without having to access the equity capital markets, and continue to grow and accelerate free cash flow, both through internal prospects and our external growth prospects. Obviously, in the current market, it's become a little bit more challenging for two reasons. The first one, obviously, being retail is back in vogue from a private market perspective.

It has been a much more competitive environment, especially in the markets where we're looking to acquire and expand our business and our presence. But equally as important, our cost of capital has obviously changed over the past several quarters with rising debt costs impacting our ability to get incremental debt at a level that's attractive compared to the use of proceeds. So we're monitoring that. We've been very fortunate this year. We've closed on to date, including the one we closed subsequent to the quarter, $290 million of acquisitions in current and new markets. So this year we've closed a couple deals in Charlotte, our first deal in Nashville, our first deal in Knoxville, Tennessee as well, and then subsequent to the quarter, we did close a grocery-anchored center in Greensboro, North Carolina.

Core markets and then finding really exciting opportunities in some of these complementary emerging Sun Belt markets that exhibit the same characteristics that we do see in some of our core markets like in Austin or Charlotte or West Florida or the like. But I'll start there and then go in any direction you want, Samir.

No. What we have seen is, we've seen the migration trends continue, especially in the Carolinas, in Florida, and in our markets in Texas. We've seen that continue. What has changed is the cost of living in some of our core markets has gotten harder. Meaning, home prices have certainly increased, other pricing has increased, which has availed new opportunities in some of those secondary emerging markets, where obviously Nashville over the last 15 years has completely transformed. We see similar characteristics, certainly not to the same extent, but similar characteristics in Knoxville, which continues to be a lower cost of living, but has some great growth drivers as well. Same thing in Greensboro versus what we're seeing in Charlotte or Asheville. So using that hub and spoke strategy to support it.

Now what I will say, the great thing about our business is, in specifically retail, is the lack of new supply. So even in the markets where the cost of living and rent prices and home values have gone up, new supply has actually alleviated some of that, specifically in the Sun Belt. So if you think about this, if this was multi-family and we had a Sun Belt strategy, I'd be a little bit more worried because there's been a lot of new supply that's tempered or even reduced our rental rates. That's great for our business. It gives our customer more wallet share to come to our centers, and our centers certainly are still not impacted by any new supply. So a relief in home prices and rental rates at multi-family is helpful for our retail centers.

I mean, it's So new supply, I was talking about new housing supply.

New housing supply. That supports retail.

Got it. From a retail perspective, we're still not seeing any new Maybe in Texas or Houston, right?