Q1 2025 InvenTrust Properties Corp Earnings Call

Before we begin I would like to remind all listeners that today's presentation is being recorded and a replay will be available on the investors section of the company's website at <unk> properties Dot com.

If you'd like to register your question Jen stays events. Please press star one on your telephone keypad.

Speaker Change: I would now like to turn the call over to Mr. Dan Lombardo, Vice President of Investor Relations. Please go ahead Sir.

Dan Lombardo: Thank you operator, good morning, everyone. Joining me from the <unk> team is D. J Busch, President and Chief Executive Officer, Mike Phillips, Chief Financial Officer, Christy, David Chief Operating Officer, and Dave <unk>, Our Chief investment Officer.

Speaker Change: Following the team's prepared remarks.

Speaker Change: The lines will be opened for your questions. As a reminder, some of today's comments may contain forward looking statements about the companys views in the future of our business and financial performance, including forward looking earnings guidance and future market conditions.

Speaker Change: These are based on management's current beliefs and expectations and are subject to various risks and uncertainties any forward looking statements speak only as of today's date and we assume no obligation to update any forward looking statements made on today's call are that are in the quarterly financial supplemental or press release and.

Speaker Change: Addition, we will also reference certain non-GAAP financial measures the comparable GAAP financial measures are included in this quarter's earnings materials, which are posted on our Investor Relations website.

D. J.: With that I will turn the call over to D. J.

Speaker Change: Thank you and good morning, everyone I'll start today's call with some brief commentary regarding our initial performance. The overall operating environment and how <unk> is positioned to grow cash flow in 2025 and beyond Mike will discuss our financial results in greater detail and Crystal will conclude with additional color on the leasing and operational fronts.

Speaker Change: We're pleased to report a strong start to 2025, driven by our strategic concentration of necessity based open a retail centers in sunbelt markets.

Speaker Change: Our approach continues to provide resilient performance despite broader economic challenges.

Speaker Change: Same property NOI grew six 1% for the first quarter, reflecting robust demand and effective lease management and core <unk> per diluted share grew four 5% compared to the same period last year.

Speaker Change: Our portfolio remains highly leased with small shop leased occupancy achieving another record high.

Speaker Change: Our simple and focused strategy continues to deliver sunbelt region were 97% of our net operating income is generated continues to dominate among the list of top performing retail markets.

Speaker Change: Ordinary population and employment growth business and tax friendly policies and favorable climate and quality of life are just some of the factors that have allowed some boat retail fundamentals to remain on an impressive pace.

Speaker Change: This coupled with the absence of competing new supply is why we remain cautiously optimistic in an uncertain economic environment.

Daniel Busch: Our approach continues to provide resilient performance despite broader economic challenges. Same property NOI grew 6.1% for the first quarter, reflecting robust demand and effective lease management. And core FFO per diluted share grew 4.5% compared to the same period last year. Our portfolio remains highly leased, with small shop lease occupancy achieving another record high. Our simple and focused strategy continues to deliver. The Sunbelt region, where 97% of our net operating income is generated, continues to dominate among the list of top-performing retail markets. Extraordinary population and employment growth, business and tax-friendly policies, and favorable climate and quality of life are just some of the factors that have allowed Sunbelt Retail Fundamentals to remain on an impressive pace.

Which continues to provide resilient performance despite broader economic challenges.

Operator: 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 If you would like to register a question during today's event, please press star 1 on your telephone keypad.

Speaker Change: Although our pending tariffs have dominated the headlines in 2025. It is still much too early to assess what the impact both direct and indirect will be on our consumers and in turn our tenants.

Same property NOI grew six 1% for the first quarter, reflecting robust demand and effective lease management and core <unk> per diluted share grew four 5% compared to the same period last year, our portfolio remains highly leased with small shop leased occupancy achieving another record high.

Speaker Change: Our focus on our central retail, including quick service restaurants, and health and wellness providers positions us well to navigate these challenges these.

Dan Lombardo: I'd now like to turn the call over to Mr. Dan Lombardo, Vice President of Investor Relations. Please go ahead. Thank you, operator. Good morning, everyone.

Our simple and focused strategy continues to deliver sunbelt region were 97% of our net operating income is generated continues to dominate among the list of top performing retail markets extra.

Speaker Change: These businesses typically exhibit resilience during economic fluctuations contributing to our portfolio stability.

Dan Lombardo: Joining me from the Inventrust team is DJ Busch, president and chief executive officer, Mike Phillips, chief financial officer, Christy David, chief operating officer, and Dave Heinberger, chief investment officer.

Speaker Change: Importantly, our tenant health is still quite positive in the post Covid era sales and profitability have been strong nearly across the board and even within ventures, capturing solid rent growth over the same time period occupancy cost ratios remained quite resilient.

Extraordinary population and employment growth business and tax friendly policies and favorable climate and quality of life are just some of the factors that have allowed sunbelt retail fundamentals to remain on an impressive pace.

Dan Lombardo: Following the team's prepared remarks, the lines will be open for your questions. As a reminder, some of today's comments may contain forward-looking statements about the company's views on the future of our business and financial performance, including forward-looking earnings guidance and future market conditions. These are based on management's current beliefs and expectations and are subject to various risks and uncertainties. Any forward-looking statements speak only as of today's date, and we assume no obligation to update any forward-looking statements made on today's call or that are in the quarterly financial supplemental or press release.

Speaker Change: As we have done in the past, we will support our tenants as needed as they navigate these current challenges.

Daniel Busch: This coupled with the absence of competing new supply is why we remain cautiously optimistic in an uncertain economic environment. Although pending tariffs have dominated the headlines in 2025, it is still much too early to assess what the impact, both direct and indirect, will be on our consumers and in turn our tenants. Our focus on essential retail, including quick service restaurants and health and wellness providers positions us well to navigate these challenges. These businesses typically exhibit resilience during economic fluctuations, contributing to our portfolio stability. Importantly, our tenant health is still quite positive in the post-COVID era.

This coupled with the absence of competing new supply is why we remain cautiously optimistic in an uncertain economic environment.

Speaker Change: Moving to our capital allocation plan for the year, we remain extremely active on the transaction front.

Although our pending tariffs have dominated the headlines in 2025, it's still much too early to assess what the impact both direct and indirect will be on our consumers and in turn our tenants.

Speaker Change: As we've discussed previously we continue to evaluate asset sales and capital recycling is part of our ongoing portfolio optimization strategy.

Speaker Change: More specifically our planned exit from California.

Our focus on essential retail, including quick service restaurants, and health and wellness providers positions us well to navigate these challenges.

Speaker Change: Our expectation is that we will fully or significantly reduce our investment in California in 2025, depending on timing.

Speaker Change: Equally important following the quarter, we have acquired two assets Plaza, Escondida and Carmel village Plaza, Escondida and 91000 square foot neighborhood Center in Tucson, Arizona is 99% occupied and anchored by trader Joe's and Marshalls com.

These businesses typically exhibit resilience during economic fluctuations contributing to our portfolio stability.

Dan Lombardo: In addition, we will also reference certain non-GAAP financial measures. The comparable GAAP financial measures are included in this quarter's earnings materials, which are posted on our Investor Relations website.

Importantly, our tenant health is still quite positive in the post Covid era sales and profitability have been strong nearly across the board and even within ventures, capturing solid rent growth over the same time period occupancy cost ratios remained quite resilient.

Daniel Busch: Sales and profitability have been strong nearly across the board, and even with Inventrust capturing solid rent growth over the same time period, occupancy cost ratios remain quite resilient. As we have done in the past, we will support our tenants as needed as they navigate these current challenges.

Speaker Change: <unk> village located in the heart of South Charlotte, plus a strong tenant mix of restaurants and service providers. These acquisitions further expand our presence in Arizona and in the Charlotte market.

DJ Busch: With that, I will turn the call over to DJ. Thank you. And good morning, everyone.

As we have done in the past, we will support our tenants as needed as they navigate these current challenges.

DJ Busch: I'll start today's call with some brief commentary regarding our initial performance, the overall operating environment and how Inventrust is positioned to grow cashflow in 2025 and beyond.

Speaker Change: We are also currently in several negotiations to Accretively redeploy pending sales proceeds into high quality centers in markets, such as Asheville, Charlotte Charleston, San Antonio and Orlando to name a few.

Moving to our capital allocation plan for the year, we remain extremely active on the transaction front as we've discussed previously we continue to evaluate asset sales and capital recycling is part of our ongoing portfolio optimization strategy more specifically our planned exit from California our.

Daniel Busch: Moving to our capital allocation plan for the year, we remain extremely active on the transaction front. As we have discussed previously, we continue to evaluate asset sales and capital recycling as part of our ongoing portfolio optimization strategy. More specifically, our plan to exit from California. Our expectation is that we will fully or significantly reduce our investment in California in 2025, depending on timing.

DJ Busch: Mike will discuss our financial results in greater detail and Christy will conclude with additional color on the leasing operational front. We're pleased to report a strong start to 2025, driven by our strategic concentration of necessity-based open-air retail centers in Sunbelt Market. Our approach continues to provide resilient performance despite broader economic challenges. Same property NOI grew 6.1% for the first quarter, reflecting robust demand and effective lease management. And core FFO per diluted share grew 4.5% compared to the same period last year. Our portfolio remains highly leased, with small shop lease occupancy achieving another record high. Our simple and focused strategy continues to deliver.

Speaker Change: Our pipeline currently stands at one $5 billion to $2 billion encompassing both marketed and off market opportunities.

Our expectation is that we will fully or significantly reduce our investment in California in 2025, depending on timing.

Speaker Change: While we prioritize grocery anchored centers, we remain format agnostic or.

Daniel Busch: Equally important, following the quarter, we have acquired two assets, Plaza Escondida and Carmel Village. Plaza Escondida, a 91,000 square foot neighborhood centered in Tucson, Arizona, is 99% occupied and anchored by Trader Joe's and Marshall. Carmel Village, located in the heart of South Charlotte, boasts a strong tenemix of restaurants and service providers. These acquisitions further expand our presence in Arizona and in the Charlotte market. We are also currently in several negotiations to creatively redeploy pending sales proceeds into high-quality centers in markets such as Asheville, Charlotte, Charleston, San Antonio, and Orlando, to name a few. Our pipeline currently stands at $1.5 to $2 billion, encompassing both marketed and off-market opportunities.

Equally important following the quarter, we have acquired two assets Plaza, Escondida and Carmel village Plaza, Escondida and 91000 square foot neighborhood Center in Tucson, Arizona is 99% occupied and anchored by trader Joe's and Marshalls com.

Speaker Change: Our focus is on properties that will enhance our portfolio with high quality necessity based tenants in high growth sunbelt markets, producing better risk adjusted returns than the sector average.

Speaker Change: Our capital recycling endeavors are fully contemplated in our net investment activity guidance for the year.

<unk> village located in the heart of South Charlotte, plus a strong tenant mix of restaurants and service providers. These acquisitions further expand our presence in Arizona and in the Charlotte market.

Speaker Change: Lastly on the balance sheet front <unk> remains one of if not the lowest leverage strip center Reits in the public market. This allows us to be opportunistic during times of uncertainty and continue to appropriately and prudently grow our platform without relying on the capital markets.

We are also currently in several negotiations to Accretively redeploy pending sales proceeds into high quality centers in markets, such as Asheville, Charlotte Charleston, San Antonio and Orlando to name a few.

DJ Busch: The Sunbelt region, where 97% of our net operating income is generated, continues to dominate among the list of top-performing retail markets. Extraordinary population and employment growth, business and tax-friendly policies, and favorable climate and quality of life are just some of the factors that have allowed Sunbelt Retail Fundamentals to remain on an impressive pace. This coupled with the absence of competing new supply is why we remain cautiously optimistic in an uncertain economic environment. Although pending tariffs have dominated the headlines in 2025, it is still much too early to assess what the impact, both direct and indirect, will be on our consumers and in turn our tenants.

Speaker Change: Obviously, it's been a turbulent beginning of the year in the equity markets that said the operational platform at Iot remains sound.

Our pipeline currently stands at one $5 billion to $2 billion encompassing both marketed and off market opportunities.

Speaker Change: Internal growth opportunities are available and with our low leverage and capital recycling efforts. There is much to be excited about on the external front as well.

Daniel Busch: While we prioritize grocery and grocery centers, we remain format agnostic. Our focus is on properties that will enhance our portfolio with high-quality, necessity-based tenants in high-growth Sunbelt markets, producing better risk-adjusted returns than the sector average. Our capital recycling endeavors are fully contemplated in our Net Investment Activity Guidance for the year. Lastly, on the balance sheet front, Inventrust remains one of, if not the lowest leveraged strip center REITs in the public market. This allows us to be opportunistic during times of uncertainty and continue to appropriately and prudently grow our platform without relying on the capital market.

While we prioritize grocery anchored centers, we remain format agnostic.

Speaker Change: These factors give us confidence that we continue to deliver sustainable cash flow growth for our shareholders on a consistent and recurring basis.

Focus is on properties that will enhance our portfolio with high quality necessity based tenants in high growth sunbelt markets, producing better risk adjusted returns than the sector average.

Speaker Change: With that I'm going to turn it over to Mike to discuss our financial results.

Mike: Thanks T J and the trust is off to a solid start in 2025 as demonstrated by our first quarter results same property NOI for Q1 reached $47 3 million, representing six 1% growth compared to Q1 of 2020 for the.

Our capital recycling endeavors are fully contemplated in our net investment activity guidance for the year.

DJ Busch: Our focus on essential retail, including quick service restaurants and health and wellness providers positions us well to navigate these challenges. These businesses typically exhibit resilience during economic fluctuations, contributing to our portfolio stability. Importantly, our tenant health is still quite positive in the post-COVID era. Sales and profitability have been strong nearly across the board, and even with Inventrust capturing solid rent growth over the same time period, occupancy cost ratios remain quite resilient. As we have done in the past, we will support our tenants as needed as they navigate these current challenges.

Lastly on the balance sheet front invent trust remains one of if not the lowest Levered strip center Reits in the public market. This allows us to be opportunistic during times of uncertainty and continue to appropriately and prudently grow our platform without relying on the capital markets.

Mike: The year over year increase was primarily driven by approximately 400 basis points of growth in base rent supported by embedded rent bumps accounting for 150 basis points.

Daniel Busch: Obviously, it's been a turbulent beginning of the year in the equity markets. That said, the operational platform at IOT remains sound. Internal growth opportunities are available and with our low leverage and capital recycling efforts there is much to be excited about on the external front as well. These factors give us confidence that we can continue to deliver sustainable cash flow growth for our shareholders on a consistent and recurring basis.

Obviously, it's been a turbulent beginning of the year in the equity markets that said the operational platform at Iot remains sound.

Mike: Expense reimbursements contributed approximately 160 basis points.

Mike: NAREIT <unk> for the quarter totaled $37 2 million or <unk> 48 per diluted share representing an increase of six 7% compared to the same time period last year <unk> rose four 5% year over year to <unk> 46 per share.

Internal growth opportunities are available and with our low leverage and capital recycling efforts. There is much to be excited about on the external front as well.

These factors give us confidence that we continue to deliver sustainable cash flow growth for our shareholders on a consistent and recurring basis.

DJ Busch: Moving to our capital allocation plan for the year, we remain extremely active on the transaction front. As we have discussed previously, we continue to evaluate asset sales and capital recycling as part of our ongoing portfolio optimization strategy, more specifically, our plan to exit from California. Our expectation is that we will fully or significantly reduce our investment in California in 2025, depending on timing. Equally important, following the quarter, we have acquired two assets, Plaza Escondida and Carmel Village. Plaza Escondida, a 91,000 square foot neighborhood centered in Tucson, Arizona, is 99% occupied and anchored by Trader Joe's and Marshall.

Mike: This increase was fueled by internal growth and acquisitions, partially offset by a larger share count from our equity offering in September of last year.

Michael Phillips: With that, I'm going to turn it over to Mike to discuss our financial results. Thanks, DJ. Inventrust is off to a solid start in 2025, as demonstrated by our first quarter results. Same property NOI for Q1 reached $47.3 million, representing 6.1% growth compared to Q1 of 2024. The year-over-year increase was primarily driven by approximately 400 basis points of growth and base rent, supported by embedded rent bonds, accounting for 150 base Net expense reimbursements contributed approximately $160,000. Navy Route FFO for the quarter totaled $37.2 million, or $0.48 per diluted share, representing an increase of 6.7% compared to the same time period last year.

With that I'm going to turn it over to Mike to discuss our financial results.

Mike: Thanks T J and the trust is off to a solid start in 2025 as demonstrated by our first quarter results same property NOI for Q1 reached $47 3 million, representing six 1% growth compared to Q1 of 2020 for.

Mike: From a balance sheet perspective, we continue to operate from a position of strength, providing the flexibility and capital to pursue our strategic initiatives.

Mike: As of quarter end, our net leverage ratio was 23, 4% and net debt to adjusted EBITDA stood at four one times on a trailing 12 month basis our.

Mike: The year over year increase was primarily driven by approximately 400 basis points of growth in base rent supported by embedded rent bumps accounting for 150 basis points.

Mike: Our weighted average interest rate was 4% with a weighted average debt maturity of three one years and our entire debt portfolio remains 100% fixed.

Mike: That expense reimbursements contributed approximately 160 basis points.

Mike: Finally, we declared an annualized dividend payment of <unk> 95 per share a 5% increase over last year.

DJ Busch: Carmel Village, located in the heart of South Charlotte, boasts a strong tenemix of restaurants and service providers. These acquisitions further expand our presence in Arizona and in the Charlotte market. We are also currently in several negotiations to creatively redeploy pending sales proceeds into high-quality centers in markets such as Asheville, Charlotte, Charleston, San Antonio, and Orlando, to name a few. Our pipeline currently stands at $1.5 to $2 billion, encompassing both marketed and off-market opportunities. While we prioritize grocery and grocery centers, we remain format agnostic. Our focus is on properties that will enhance our portfolio with high-quality, necessity-based tenants in high-growth Sunbelt markets producing better risk-adjusted returns than the sector average.

Mike: NAREIT <unk> for the quarter totaled $37 2 million.

Mike: <unk> 48 per diluted share representing an increase of six 7% compared to the same time period last year <unk> rose four 5% year over year to <unk> 46 per share.

Mike: Turning to guidance, we are reaffirming our full year same property NOI growth guidance range of three 5% to four 5% as well as maintaining our bad debt reserve at 75 to 100 basis points of total revenue.

Michael Phillips: Core FFO rose 4.5% year-over-year to $0.46 per share. This increase was fueled by internal growth and acquisitions, partially offset by a larger share count from our equity offering in September of last year. From a balance sheet perspective, we continue to operate from a position of strength, providing the flexibility and capital to pursue our strategic initiatives. As of quarter end, our net leverage ratio was 23.4 percent and net debt to adjusted EBITDA stood at 4.1 times on a truly 12-month basis. Our weighted average interest rate was 4%, with a weighted average debt maturity of 3.1 years and our entire debt portfolio remains 100%.

This increase was fueled by internal growth and acquisitions, partially offset by a larger share count from our equity offering in September of last year.

Mike: This reserve reflects both recent tenant bankruptcies and an estimate for potential fallout that may occur for the remainder of the year.

Mike: From a balance sheet perspective, we continue to operate from a position of strength, providing the flexibility and capital to pursue our strategic initiatives.

Mike: While we experienced no bad debt impact during the first quarter, we do anticipate some effect on same property NOI later in the year as the announced bankruptcies take effect.

Mike: As of quarter end, our net leverage ratio was 23, 4% and net debt to adjusted EBITDA stood at four one times on a trailing 12 month basis.

Mike: For <unk>, our full year guidance remains in the range of $1 83 to $1 89 per share, which represents a four 5% growth at the midpoint versus 2024 <unk> guidance is $1 79 to $1 83 per share up four 6% at the midpoint from last year, our net acquisition assumptions as DJ mentioned remains at 100.

Mike: Our weighted average interest rate was 4% with a weighted average debt maturity of three one years and our entire debt portfolio remains 100% fixed.

DJ Busch: Our Capital Recycling endeavors are fully contemplated in our Net Investment Activity Guidance for the Year. Lastly, on the balance sheet front, Inventrust remains one of, if not the lowest leveraged strip center REITs in the public market. This allows us to be opportunistic during times of uncertainty and continue to appropriately and prudently grow our platform without relying on the capital market.

Mike: Finally, we declared an annualized dividend payment of <unk> 95 per share a 5% increase over last year.

Michael Phillips: Finally, we declared an annualized dividend payment of $0.95 per share, a 5% increase over last year. Turning to guidance, we are reaffirming our full year same property NOI growth guidance range of 3.5% to 4.5% as well as maintaining our bad debt reserve at 75 to 100 basis points of total revenue. This reserve reflects both recent tenant bankruptcies and an estimate for potential fallout that may occur for the remainder of the year. While we experienced no bad debt impact during the first quarter, we do anticipate some effect on same-property NOI later in the year as the announced bankruptcies take effect.

Mike: For the year, reflecting the potential acquisition and disposition activity for 2025.

Mike: Turning to guidance, we are reaffirming our full year same property NOI growth guidance range of three five to four 5% as well as maintaining our bad debt reserve at 75 to 100 basis points of total revenue.

Mike: Further details on our guidance assumptions are available in our supplemental disclosure filed yesterday and with that I'll turn the call over to Christie to discuss our portfolio activity Christy.

DJ Busch: Obviously, it's been a turbulent beginning of the year in the equity markets. That said, the operational platform at IOT remains sound. Internal growth opportunities are available, and with our low leverage and capital recycling efforts, there's much to be excited about on the external front as well. These factors give us confidence that we can continue to deliver sustainable cash flow growth for our shareholders on a consistent and recurring basis.

Mike: This reserve reflects both recent tenant bankruptcies and an estimate for potential fallout that may occur for the remainder of the year.

Christie: Thanks, Mike during the quarter, we executed 226000 square feet above new leases and renewals, we have completed 100% of our 2025, King and already secured roughly 80% of 2020, giving us clear visibility into near term cash flow.

Mike: While we experienced no bad debt impact during the first quarter, we do anticipate some effect on same property NOI later in the year as the announced bankruptcies take effect.

Mike: For <unk>, our full year guidance remains in the range of $1 83 to $1 89 per share, which represents a four 5% growth at the midpoint versus 2024 <unk> guidance is $1 79 to $1 83 per share up four 6% at the midpoint from last year, our net acquisition assumptions as DJ mentioned remains at 100.

Michael Phillips: For NARED FFO, our full year guidance remains in the range of $1.83 to $1.89 per share, which represents a 4.5% growth at the midpoint versus 2024. Core FFO guidance is $1.79 to $1.83 per share, up 4.6% at the midpoint from last year. Our net acquisition assumptions, as DJ mentioned, remains at $100 million for the year, reflecting the potential acquisition and disposition activity for 2025.

Christie: Our portfolio leased occupancy ended the quarter at 97, 3%, a 100 basis point increase over last year anchor space leased occupancy ended the quarter at 99, 5%.

Mike Phillips: With that, I'm going to turn it over to Mike to discuss our financial results. Thanks, DJ. Inventrust is off to a solid start in 2025, as demonstrated by our first quarter results. Same property NOI for Q1 reached $47.3 million, representing 6.1% growth compared to Q1 of 2024. The year-over-year increase was primarily driven by approximately 400 basis points of growth and base rent, supported by embedded rent bumps, accounting for 150 base Net expense reimbursements contributed approximately $160,000. Neighborhood FFO for the quarter totaled $37.2 million, or $0.48 per diluted share, representing an increase of 6.7% compared to the same time period last year.

Christie: While shop leased occupancy finished the quarter at 93, 4%, a 130 basis points over last year at a new all time high for our portfolio.

Mike: For the year, reflecting the potential acquisition and disposition activity for 2025.

Christie: And Bank Trust total portfolio ABR ended the first quarter at $20 21 per square foot, reflecting an increase of three 1% compared to Q1 2024.

Michael Phillips: Further details and our guidance assumptions are available in our Supplemental Disclosure File.

Mike: Further details on our guidance assumptions are available in our supplemental disclosure filed yesterday and with that I'll turn the call over to Christie to discuss our portfolio activity Christy.

Christy David: And with that, I'll turn the call over to Christy to discuss our portfolio activity. Christy. Thanks, Mike. During the quarter, we executed 256,000 square feet of both new leases and renewals. We've completed 100% of our 2025 leasing and already secured roughly 80% of 2026, giving us clear visibility into near-term cash. Our portfolio lease occupancy ended the quarter at 97.3%, a 100 basis point increase over last year. Anchor Space Leased Occupancy ended the quarter at 99.5%. Small shop lease occupancy finished the quarter at 93.4 percent, 130 basis points over last year and a new all-time high for our portfolio.

Christie: For the quarter, we delivered blended comparable leasing spreads of nine 6% with new lease spreads of 23% and renewals at eight 7% our retention rate stands at 90% for the quarter.

Christie: Thanks, Mike during the quarter, we executed 226000 square feet, both new leases and renewals, we have completed a 100% of our 2025, King and already secured roughly 80% of 2020, giving us clear visibility into near term cash flow.

Christie: Additionally, we have successfully embedded rent escalators of 3% or higher and 90% of our renewals supporting long term NOI growth.

Mike Phillips: Core FFO rose 4.5% year-over-year to $0.46 per share. This increase was fueled by internal growth and acquisitions, partially offset by a larger share count from our equity offering in September of last year. From a balance sheet perspective, we continue to operate from a position of strength, providing the flexibility and capital to pursue our strategic initiatives. As of quarter end, our net leverage ratio was 23.4% and net debt to adjusted EBITDA stood at 4.1 times on a truly 12-month basis. Our weighted average interest rate was 4%, with a weighted average debt maturity of 3.1 years and our entire debt portfolio remains 100%.

Our portfolio leased occupancy ended the quarter at 97, 3%, a 100 basis point increase over last year anchor space leased occupancy ended the quarter at 99, 5%.

Christie: As for tenant health or exposure to recent retail bankruptcies have been minimal limited to one Joanne location with the lease with recently assumed causing no revenue disruption to the center and three party city stores, representing approximately 20 basis points of our bad debt Reserve. We continue to monitor sector is under pressure and the effects of new economic policies may have on our tenants.

Christie: I'll shop leased occupancy finished the quarter at 93, 4%, a 130 basis points over last year and a new all time high for our portfolio.

Christy David: Inventrust total portfolio ABR ended the first quarter at $20.21 per square foot, reflecting an increase of 3.1% compared to Q1 2024. For the quarter, we delivered blended comparable leasing spreads of 9.6%, with new lease spreads of 20.3% and renewals at 8.7%. Our retention rate stands at 90% for the quarter. Additionally, we have successfully embedded rent escalators of 3% or higher in 90% of our renewals, supporting long-term NOI goals. As for tenant health, our exposure to recent retail bankruptcies has been minimal, limited to one Joann location with the lease was recently assumed, causing no revenue disruption to the center, and three party city stores representing approximately 20 basis points of our bad debt We continue to monitor sectors under pressure and the effects new economic policies may have on our tenants and the consumers.

Christie: And Bank Trust total portfolio ABR ended the first quarter at $20 21 per square foot, reflecting an increase of three 1% compared to Q1 2024.

Christie: And the consumers.

Christie: However, solid interest from high performing concepts remains and we remain confident in our ability to backfill spaces that may become available.

Christie: With that I'll turn the call back to the operator for questions.

Christie: For the quarter, we delivered blended comparable leasing spreads of nine 6% with new lease spreads of 23% and renewals at eight 7%.

Mike Phillips: Finally, we declared an annualized dividend payment of $0.95 per share, a 5% increase over last year. Turning to guidance, we are reaffirming our full year same property NOI growth guidance range of 3.5% to 4.5% as well as maintaining our bad debt reserve at 75 to 100 basis points of total revenue. This reserve reflects both recent tenant bankruptcies and an estimate for potential fallout that may occur for the remainder of the year. While we experienced no bad debt impact during the first quarter, we do anticipate some effect on same-property NOI later in the year as the announced bankruptcies take effect.

Christie: Yeah.

Christie: Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad.

Christie: Our retention rate stands at 90% for the quarter. Additionally, we have successfully embedded rent escalators of 3% or higher and 90% of our renewals supporting long term NOI growth.

Christie: If you would like to withdraw your question. Please press star followed by two.

Christie: On <unk> you ask a question. Please ensure a device is on mute.

Speaker Change: First question comes from Dori Kesten with Wells Fargo. Your line is open. Please go ahead.

Christie: As for Tenet health, our exposure to recent retail bankruptcies have been minimal limited to one Joanne location with the lease with recently assumed causing no revenue disruption to the center and three party city stores, representing approximately 20 basis points of our bad debt Reserve. We continue to monitor sector is under pressure and the effects new economic policies may have on our tenants.

Dori Kesten: Thanks, Good morning.

Dori Kesten: Kept over 6% same store NOI growth in Q1, I'm just trying to figure out how are you getting to the $3 five to four and a half for the year is there is there a particular quarter that stands out as being a little bit softer or should Q2 through four I loved rather comfortable.

Mike Phillips: For NARED FFO, our full year guidance remains in the range of $1.83 to $1.89 per share, which represents a 4.5% growth at the midpoint versus 2024. Core FFO guidance is $1.79 to $1.83 per share, up 4.6% at the midpoint from last year. Our net acquisition assumptions, as DJ mentioned, remains at $100 million for the year, reflecting the potential acquisition and disposition activity for 2025.

Christie: And the consumers.

Christy David: However, solid interest from high-performing concepts remains and we remain confident in our ability to backfill spaces that may become available.

Christie: Our solid interest from high performing concepts remains and we remain confident in our ability to backfill spaces that may become available.

Mike: Yes, it's Mike I can take that so yeah, obviously off to a good start in the <unk>.

Operator: With that, I'll turn the call back to the operator for questions. Thank you.

Christie: I'll turn the call back to the operator for questions.

Speaker Change: First quarter and there is some deceleration implied in our guidance and really it comes from a few main areas. The one the first one is bad debt. So for Q1, we really had zero net bad debt for the quarter.

Christie: Okay.

Christie: Thank you.

Operator: If you would like to ask a question, please press star followed by 1 on your telephone keypad. If you would like to withdraw your question, please press star followed by 2.

Speaker Change: I would like to ask a question. Please press star followed by one on your telephone keypad, if you will.

Christie: I'd like to withdraw your question. Please press star followed by two.

Mike Phillips: Further details and our guidance assumptions are available in our Supplemental Disclosure File.

Speaker Change: We do still maintain our guidance of 75 to 100 basis points for the full year. So thats the main chunk of it.

Dori Kesten: When preparing to ask a question, please ensure your device is unmuted, low First question comes from Dori Kesten with Wells Fargo. Your line is open, please go ahead. Thanks. Good morning. With just over 6% same-store NOI growth in Q1, I'm just trying to figure out how are you getting to the 3.5 to 4.5 for the year? Is there a particular quarter that stands out as being a little bit softer, or should Q2 through 4 look rather comfortable?

Speaker Change: When preparing to ask a question. Please ensure device is on mute.

Christy David: And with that, I'll turn the call over to Christy to discuss our portfolio activity. Christy. Thanks, Mike. During the quarter, we executed 256,000 square feet of both new leases and renewals. We've completed 100% of our 2025 leasing and already secured roughly 80% of 2026, giving us clear visibility into near-term cash flow. Our portfolio lease occupancy ended the quarter at 97.3 percent, a 100 basis point increase over last year. Anchor Space Leased Occupancy ended the quarter at 99.5%. Small shop lease occupancy finished the quarter at 93.4 percent, 130 basis points over last year and a new all-time high for our portfolio.

First question comes from Dori Kesten with Wells Fargo. Your line is open. Please go ahead.

Speaker Change: For the quarter and then Theres a few other things that we're kind of unique to Q1.

Speaker Change: <unk>.

Dori Kesten: Thanks, Good morning.

Speaker Change: Kevin most years, we had higher percentage rent from our grocers in Q1.

Just over 6% same store NOI growth in Q1, I'm just trying to figure out how are you getting to the $3 five to four and a half for the year is there is there a particular quarter that stands out as being a little bit softer or should Q2 through four I loved rather comparable.

Speaker Change: Our expenses were a little lower in Q1 than they will be throughout the year, So youll kind of see that expense.

Speaker Change: <unk> kind of go down a little bit.

Speaker Change: The year two so those are kind of three main categories.

Speaker Change: But the deceleration I think good morning, Duane the only thing.

Michael Phillips: Hey Dori, it's Mike. I can take that. So yeah, obviously off to a good start in the first quarter and there is some deceleration implied in our guidance and really it comes from a few main areas. The first one is bad debt. So for Q1 we really had zero net bad debt for the quarter. We're trying to be a little bit more cautious as it relates to what could happen in the back half of this year.

Yes.

Dori Kesten: I can take that.

Speaker Change: Obviously, I think everyone got a little bit more cautious.

We're obviously off to a good start in the first quarter and there is some deceleration implied in our guidance and really it comes from a few main areas. The one the first one is bad debt. So for Q1, we really had zero net debt for the quarter.

April 2nd to be honest in the first quarter finished extremely solid I think had it not been for some of those things I think I heard I think some of our peers have mentioned similar things, we probably feel a little bit more optimistic.

Christy David: Inventrust total portfolio ABR ended the first quarter at $20.21 per square foot, reflecting an increase of 3.1% compared to Q1 2024. For the quarter, we delivered blended comparable leasing spreads of 9.6%, with new lease spreads of 20.3% and renewals at 8.7%. Our retention rate stands at 90% for the quarter. Additionally, we have successfully embedded rent escalators of 3% or higher in 90% of our renewals, supporting long-term NOI growth. As for tenant health, our exposure to recent retail bankruptcies has been minimal, limited to one Joanne location with the lease was recently assumed, causing no revenue disruption to the center, and three party city stores representing approximately 20 basis points of our bed debt.

Dori Kesten: We do still maintain our guidance of 75 to 100 basis points for the full year. So thats. The main chunk of it quarter to quarter and then Theres a few other things that we're kind of unique to Q1.

Speaker Change: Finishing the year. The reality is we feel really good about where our.

Speaker Change: Our lease activity is effectively done for 2025 as Christie mentioned in almost effectively done for 2026, so really.

Dori Kesten: Evans most years, we had higher percentage rent from our groceries in Q1.

Speaker Change: The only unknown and the business is on the bad debt side.

Dori Kesten: Our expenses were a little lower in Q1 than they will be throughout the year. So youll kind of see that expense reimbursement kind of go down a little bit.

Speaker Change: While we feel like we're in a great spot there arent really theres no big known <unk>.

Speaker Change: Distressed retailers certainly within our portfolio.

Dori Kesten: Throughout the year or two so those are kind of three main categories.

Speaker Change: Speaking as well.

Speaker Change: We're trying to be a little bit more cautious as it relates to what could happen in the back half of this year.

Duane: Deceleration, yes, I think good morning, Duane the only thing.

Dori Kesten: Obviously.

Dori Kesten: Thank you everyone got a little bit more cautious APRA.

Speaker Change: Okay, and then with the anchor occupancy.

Dori Kesten: April Equinix second.

Dori Kesten: Second to be honest in the first quarter finished extremely solid I think had it not been for some of those things I think I heard I think some of our peers have mentioned some of our things, we'd probably go a little bit more optimistic.

Speaker Change: 100% and only fulfilling.

Speaker Change: Expiring this year relatively low rents.

Christy David: We continue to monitor sectors under pressure and the effects new economic policies may have on our tenants and the consumer.

Speaker Change: Things like <unk> and remedy in the driver seat on negotiating terms when selling those vehicles can you can you give us a sense of where you are.

Christy David: However, solid interest from high-performing concepts remains and we remain confident in our ability to backfill spaces that may become available.

Dori Kesten: Finishing the year. The reality is we feel really good about where our.

Speaker Change: The aggregate local problems bubble.

Dori Kesten: Sure.

Dori Kesten: Our lease activity is effectively done for for 2025 as Christie mentioned in almost effectively done for 2026 really.

Operator: With that, I'll turn the call back to the operator for questions. Thank you.

Speaker Change: It's a good question I think.

Speaker Change: With the anchors its some more or less it's on a case by case basis, we felt really good about the net effective spreads that we've been able to accomplish over the last couple of years we.

Operator: If you would like to ask a question, please press star followed by 1 on your telephone keypad. If you would like to withdraw your question, please press star followed by 2. I'm preparing to ask a question.

Dori Kesten: The only unknown and the business is on the bad debt side.

Dori Kesten: While we feel like we're in a great spot there arent really theres no big known.

Speaker Change: We will take a lower spread but the reality is we will take a little bit lower spread if there is a tenant certainly this core tenants of key tenants I should say that could really.

Please ensure your device is unmuted.

Dori Kesten: Distressed retailers and certainly within our portfolio I think thats broadly speaking as well.

Dori Kesten: First question comes from Dori Kesten with World Fargo. Your line is open, please go ahead. Thanks. Good morning. With just over 6% same-store NOI growth in Q1, I'm just trying to figure out how are you getting to the 3.5 to 4.5 for the year? Is there a particular quarter that stands out as being a little bit softer, or should Q2 through 4 look rather comfortable?

Dori Kesten: We're trying to be a little bit more cautious as it relates to what could happen in the back half of this year.

Speaker Change: Change the merchandize mix in a hugely positive way. So we've done some of those deals as well and then I know, Chris you mentioned that.

Michael Phillips: Okay. And then with anchor occupancy, almost at 100%, and only six leases expiring this year with relatively low rents, it feels like your team would really be in the driver's seat on negotiating terms when selling those spaces. Can you can you give us a sense of where you think maybe those aggregate leasing spreads could be? You know, it's a good question. I think, you know, with with the anchors, it's some more or less, it's on a case by case basis, we felt really good about the net effect of spread that we've been able to accomplish over the last couple years.

Dori Kesten: Okay.

Dori Kesten: Then with the anchor occupancy almost a 100% and only with expiring this year.

Speaker Change: Many of the opportunities that we thought were going to get back over the last 18 to 24 months.

Speaker Change: We haven't been able to because they've been they've been assigned or bought out through auction. So.

Brian: Hello, Brian.

Brian: Feels like it came in really in the driver seat on negotiating terms one selling those spaces can you can you give us a sense of where you think.

Speaker Change: We do have a couple of opportunities over the next call. It 12 to 24 months.

Mike Phillips: Yeah, hey Dori, it's Mike. I can take that. So yeah, obviously off to a good start in the first quarter, and there is some deceleration implied in our guidance, and really it comes from a few main areas.

Brian: Aggregate leasing spreads will be.

Speaker Change: But many of those are options as well theres quite a bit of roll in 2027.

Brian: It's a good question I think.

But we feel really good about the opportunities that when we do get to negotiate because like you mentioned, we have effectively one one vacant box throughout the portfolio.

Brian: With the anchors.

Brian: More or less it's on a case by case basis, we felt really good about the net effective spreads that we've been able to accomplish over the last couple of years.

The first one is bad debt. So for Q1, we really had zero net bad debt for the quarter. We're trying to be a little bit more cautious as it relates to what could happen in the back half of this year.

Speaker Change: Great. Okay. Thank you.

Michael Phillips: We'll take a lower spread, the reality is we will take a little bit lower spread if there's a tenant, certainly there's core tenants or key tenants, I should say, that could really change the merchandise mix in a hugely positive way. So we've done some of those deals as well. And then I know Christy mentioned that, you know, many of the opportunities that we thought we're going to get back over the last 18 to 24 months, we haven't been able to because they've been they've been assigned or bought out through auction. So we do have a couple opportunities over the next call it 12 to 24 months.

Brian: We will take a lower spread the reality is we will take a little bit lower spread if there is a tenant certainly this core tenants of key tenants I should say that could really change.

Speaker Change: Greenhouse and Entre and rail with Bank of America.

Speaker Change: Is open please go ahead.

Hi, good morning, Thanks for taking my questions.

Brian: Change the merchandize mix in a hugely positive way. So we've done some of those deals as well and then I know, Chris you mentioned that.

Speaker Change: Our California assets that Youre currently marketing what is the reception and level of appetite been and any color on potential pricing would be helpful too.

Brian: Many of the opportunities that we thought were going to get back over the last 18 to 24 months, we haven't been able to because they've been they've been assigned or bought out through auction. So.

Speaker Change: Yeah, Andrew Good morning, it's a good question.

Speaker Change: What I Didnt fully say in my prepared remarks is that all of our assets are in some form of they've been awarded so they're going through the process, whether it be some diligence or finalizing contracts. So obviously, a really really good outcome.

We do have a couple of opportunities over the next call. It 12 to 24 months.

Michael Phillips: But many of those are options as well. There's quite a bit of role in 26 and 27. But we feel really good about the the opportunities that when we do get to negotiate, because like you mentioned, we have effectively one one vacant box throughout the portfolio.

Brian: But many of those are options as well theres quite a bit of roll in 2006 and 2007.

But we feel really good about the opportunities that when we do get to negotiate because like you mentioned, we have effectively one one vacant box throughout the portfolio.

Speaker Change: In a rather quick time period for <unk>.

Brian: Yes.

Speaker Change: Sale of that size and of that magnitude and it really is because of the reception to response, both from from all all different pockets of capital whether it be private equity private public there was folks that took a look at it some are more interested than others, but we feel really really good about where potential pricing.

Brian: Great. Okay. Thank you.

Andrew Reale: We now turn to Andrew Reale with Bank of America. Hi, good morning. Thanks for taking my questions.

Speaker Change: Greenhouse and Entre and rail with Bank of America. Your line is open. Please go ahead.

Speaker Change: Hi, good morning, Thanks for taking my questions.

Michael Phillips: For California assets that you're currently marketing, what is the reception and level of appetite been? And any color on potential pricing would be helpful too. Yeah, Andrew, good morning. It's a good question. You know, what I didn't fully say in my prepared remarks is that all of our assets are in some form of, they've been awarded, so they're going through the process, whether it be due diligence or finalizing contracts. So, obviously, a really, really good outcome in a rather quick time period for a sale of that size and of that magnitude, and it really is because of the reception and response, both from, you know, from all different pockets of capital, whether it be private equity, private, public.

Speaker Change: Our California assets that Youre currently marketing what is the reception and level of appetite been and any color on potential pricing would be helpful too.

Speaker Change: Fallout and our ability to redeploy those in the back half of this year.

Speaker Change: I want to be a little bit careful and sensitive on cap rates and the like but as we've mentioned we fully expect to.

Speaker Change: Yeah, Andrew Good morning, it's a good question.

Speaker Change: What I Didnt fully say in my prepared remarks is that all of our assets are in some form of <unk> been awarded so they're going through the process, whether it be some diligence or finalizing contracts. So obviously, a really really good outcome.

Speaker Change: <unk>.

Speaker Change: Have great opportunities in the markets that I highlighted in my prepared remarks, and do it on an accretive basis with some really really high quality centers in the southeast.

Mike Phillips: Okay, and then with anchor occupancy almost at 100%, and only six leases expiring this year with relatively low rents, it feels like your team would really be in the driver's seat on negotiating terms when selling those spaces.

Speaker Change: Okay. Thanks, and then maybe just on on leasing.

Speaker Change: And a rather quick time period for <unk>.

Speaker Change: Sale of that size of that magnitude and it really is because of the reception to response, both from from all different pockets of capital whether it be private equity private public there was folks that took a look at it some are more interested than others, but we feel really really good about where potential pricing.

Speaker Change: And maybe just thinking about shop tenants in particular.

Mike Phillips: Can you give us a sense of where you think maybe those aggregate leasing spreads could be? You know, it's a good question. I think, you know, with with the anchors, it's some more or less, it's on a case by case basis, we felt really good about the net effect of spread that we've been able to accomplish over the last couple years. We'll take a lower spread, the reality is we will take a little bit lower spread if there's a tenant, certainly there's core tenants or key tenants, I should say, that could really change the merchandise mix in a hugely positive way.

Speaker Change: I know, it's kind of early and mid amid this macro uncertainty, but has anything been changing in your leasing conversations or what youre seeing from tenants and their behavior. That's materialized kind of post April 2nd as you mentioned.

Michael Phillips: There was folks that took a look at it. Some were more interested than others. But we feel really, really good about where potential pricing will... fallout, and our ability to redeploy those in the back half of this year. I want to be a little bit careful and sensitive on cap rates and the like, but as we've mentioned, we fully expect to... have great opportunities in the markets that I highlighted in my prepared remarks and do it on an accretive basis with some really, really high-quality centers in the South. Okay, thanks.

Speaker Change: Fall out and our ability to redeploy those in the back half of this year.

Christie: I'll take that this is christie.

Speaker Change: At this point in time and as you said and you just said in his prepared remarks, it's very early but our leasing demand has not changed.

Speaker Change: I want to be a little bit careful and sensitive on cap rates and the like but as we've mentioned we fully expect to.

Speaker Change: And our pipeline remains unchanged, it's very healthy.

Speaker Change: <unk>.

Speaker Change: The conversation that we're having with tenants that we are negotiating with our existing tenants for that matter have not really changed at this point in time.

Speaker Change: Have great opportunities in the markets that I highlighted in my prepared remarks, and do it on an accretive basis with some really really high quality centers in the southeast.

So we've done some of those deals as well. And then I know Christy mentioned that, you know, many of the opportunities that we thought we're going to get back over the last 18 to 24 months, we haven't been able to because they've been they've been assigned or bought out through auction. So we do have a couple opportunities over the next call it 12 to 24 months. But many of those are options as well. There's quite a bit of role in 26 and 27. But we feel really good about the the opportunities that when we do get to negotiate because like you mentioned, we have effectively one one vacant box throughout the portfolio.

Speaker Change: And I think as long as we continue to see the supply dynamic the way. They are currently is the lack of new supply and given our high quality.

Speaker Change: Okay. Thanks, and then maybe just on on leasing.

Christy David: And then maybe just on on leasing, and maybe just thinking about shop tenants in particular. I know it's kind of early amid amid this macro uncertainty, but has anything been changing in your leasing conversations or what you're seeing from tenants and their behavior that's materialized kind of post April 2, as you mentioned? I'll take that.

Speaker Change: Real estate, we think that our leasing momentum should continue into the future.

Speaker Change: And maybe just thinking about shop tenants in particular.

Speaker Change: I know, it's kind of early and mid amid this macro uncertainty, but has anything been changing in your leasing conversations or what youre seeing from tenants and their behavior. That's materialized kind of post April 2nd as you mentioned.

Speaker Change: And I think the only thing that I would say and I think some other folks have said at this earnings season is.

Speaker Change: The retailers that we are more or less dealing with aren't making decisions for the next 12 months.

Speaker Change: They are building businesses that should be able to survive and do well through multiple parts of the cycle. I mean, we're doing five and 10 year leases something will happen in good or bad over the next five or 10 years and they enter.

Christie: I'll take that this is christie.

Christy David: This is Christy. At this point in time, and as you said and D.J. said in his prepared remarks, it is very early, but our leasing demand has not changed, and our pipeline remains unchanged. It's very healthy. The conversations that we're having with tenants that we are negotiating with, or existing tenants for that matter, have not really changed at this point in time. And I think as long as we continue to see the supply dynamics the way they are currently, the lack of new supply, and given our high-quality real estate, we think that our leasing momentum should continue into the future.

Christie: At this point in time and as you said and you just said in his prepared remarks. It is very early but our leasing demand has not changed.

Andrew Reale: We now turn to Andrew Reale with Bank of America, your line is open, please go ahead. Hi, good morning. Thanks for taking my questions.

Christie: And our pipeline remains unchanged, it's very healthy.

Speaker Change: Our business.

Speaker Change: We need to be built to withstand that so I think rent negotiations are a small part of what they're kind of thinking about certainly with the large national tenants, so because of that and because the fact, you can't really go on the sidelines and Miss opportunities with your open to buy is expecting that there's going to be better opportunities in 18 months because it may not be there because of.

Christie: The conversation that we're having with tenants that we are negotiating with our existing tenants for that matter have not really changed at this point in time.

DJ Busch: For California assets that you're currently marketing, what is the reception and level of appetite been? And any color on potential pricing would be helpful too. Yeah, Andrew, good morning. It's a good question. You know, what I didn't fully say in my prepared remarks is that all of our assets are in some form of, they've been awarded, so they're going through the process, whether it be due diligence or finalizing contracts. So, obviously, a really, really good outcome in a rather quick time period for a sale of that size and of that magnitude, and it really is because of the reception and response, both from, you know, from all different pockets of capital, whether it be private equity, private, public.

Christie: And I think as long as we continue to see the supply dynamic where they are currently the lack of new supply and given our high quality real.

Christie: Real estate, we think that our leasing momentum should continue into the future.

Speaker Change: Of that demand and supply dynamic.

Christy David: And I think the only thing that I would say, and I think some other folks have said it this earnings season, is the retailers that we are more or less dealing with aren't making decisions for the next 12 months. They're building businesses that should be able to survive and do well through multiple parts of the cycle. I mean, we're doing 5- and 10-year leases. Something will happen, good or bad, over the next 5 or 10 years. And their business needs to be built to withstand that. So I think rent negotiations are a small part of what they're kind of thinking about, certainly with the large national tenants.

Christie: I think the only thing that I would say and I think some other folks have said at this earnings season is.

Speaker Change: Okay makes sense. Thank you.

Christie: The retailers that we are more or less dealing with aren't making decisions for the next 12 months.

Speaker Change: We now turn to Floris van <unk> with Compass point. Your line is open. Please go ahead.

Christie: They are they are building businesses that should be able to survive and do well through multiple parts of the cycle. We're doing five and 10 year leases something will happen in good or bad over the next five or 10 years and businesses need.

Speaker Change: Hey, Thanks, guys.

Speaker Change: Yes, I'd love to get your comments on the transaction market.

Speaker Change: If you are seeing any changes if you had any of the.

There was folks that took a look at it. Some were more interested than others. But we feel really, really good about where potential pricing will go. fallout, and our ability to redeploy those in the back half of this year. I want to be a little bit careful and sensitive on cap rates and the like, but as we've mentioned, we fully expect to... have great opportunities in the markets that I highlighted in my prepared remarks and do it on a creative basis with some really, really high quality centers in the South. Okay, thanks.

Christie: We need to be built to withstand that so I think rent negotiations are a small part of what they're kind of thinking about certainly with the large national tenants, so because of that and because the fact, you can't really go on the sidelines and Miss opportunities with your open to buy is expecting that there's going to be better opportunities in 18 months because it may not be there because.

Speaker Change: Bidders for your California assets.

Speaker Change: <unk>.

Speaker Change: Change pack or change pricing expectations and also just if you could just confirm that.

Christy David: So because of that and because of the fact you can't really go on the sidelines and miss opportunities when you're open to buys, expecting that there's going to be better opportunities in 18 months because it may not be there because of the demand and supply dynamic. Okay, makes sense. Thank you.

Speaker Change: Capital recycling, which is presumably selling.

Christie: That demand and supply dynamic.

Speaker Change: Lower cap rate in California, we're reinvesting into.

Christie: Okay makes sense. Thank you.

Speaker Change: Our higher yielding.

Speaker Change: So all of that that has not occurred.

Floris Dijkum: We now turn to Floris van Dijkum with Compass Point. Your line is open, please go ahead. Hey, thanks, guys. I'd love to get your comments on the transaction market. And if you're seeing any changes, if you've had any of the bidders for your California assets, potentially change pack or change pricing expectations. And also, if you could just confirm that the capital recycling, which is presumably selling lower cap rates in California assets, we're reinvesting into higher yielding, that's all that. That is not your existing, contemplated your existing guidance, is that correct? No, it is. And so it's all about timing for us.

Floris Van: We now turn to Floris van <unk> with Compass point. Your line is open. Please go ahead.

Speaker Change: Contemplated in your existing.

Speaker Change: Is that correct.

Christy David: And then maybe just on on leasing, and maybe just thinking about shop tenants in particular. I know it's kind of early amid amid this macro uncertainty, but has anything been changing in your leasing conversations or what you're seeing from tenants and their behavior that's materialized kind of post April 2, as you mentioned? I'll take it.

Speaker Change: No it is.

Speaker Change: Hey, Thanks, guys.

Speaker Change: So.

Speaker Change: It's all about timing, Florida, So let me take a step back the transaction market as we see it is still very healthy.

Speaker Change: I'd love to get your comment on the transaction market and.

Speaker Change: If youre seeing any changes if you've had any of the.

Speaker Change: There is certainly where we've been.

Speaker Change: Deploying capital for the last several years.

Speaker Change: Bidders for your California assets.

Speaker Change: There's no doubt about it it's competitive.

Speaker Change: Tensely.

Speaker Change: Absent flows I think.

Speaker Change: Change pack or change pricing expectations and also.

Speaker Change: What we look for is the first thing that happens is the buyer pool things out.

This is Christy. At this point in time, and as you said and D.J. said in his prepared remarks, it is very early, but our leasing demand has not changed and our pipeline remains unchanged. It's very healthy. The conversations that we are having with tenants that we are negotiating with, or existing tenants for that matter, have not really changed at this point in time. And I think as long as we continue to see the supply dynamics the way they are currently with the lack of new supply, and given our high quality real estate, we think that our leasing momentum should continue into the future.

If you could just.

Speaker Change: And thats good for us and that's good for other large institutional buyers.

Speaker Change: Confirm that b.

Speaker Change: Capital recycling, which is presumably selling.

Speaker Change: Is that.

Speaker Change: Through different parts of the cycle and.

Speaker Change: Lower cap rate in California.

Speaker Change: If there is less competition, whether it be on and off marketed portfolio broker deal I think we like that environment, especially given where our capital is being recycled and the fact that we're at less than four times on a forward basis. So is it for a company like and Penn Trust and our size.

Speaker Change: Reinvesting into.

Speaker Change: Higher yielding.

Speaker Change: I saw that that has not occurred.

Speaker Change: Contemplated in your existing.

Speaker Change: Guidance is that correct.

Speaker Change: No it is.

Speaker Change: No.

Speaker Change: It's all about timing, Florida, So let me take a step that the transaction market as we see it is still very healthy.

Floris Dijkum: So let me take a step back. The transaction market as we see it, it's still very healthy. There's, you know, certainly where we've been. Deploying capital, you know, for the last several years, you know, there's no doubt about it. It's competitive. It ebbs and flows. I think What we look for is the first thing that happens is the buyer pulls things out, and that's good for us, and that's good for other large institutional buyers that, you know, buy through different parts of the cycle, and if there's less competition, whether it be on an off-marketed or fully brokered deal, I think we like that environment, especially given where our capital is being recycled from and the fact that we're at less than four times on a four basis.

Speaker Change: We've kind of built our strategy is built around times of uncertainty to where we can lean in and perhaps get.

And I think the only thing that I would say, and I think some other folks have said it this earnings season, is the retailers that we are more or less dealing with aren't making decisions for the next 12 months. They're building businesses that should be able to survive and do well through multiple parts of the cycle. I mean, we're doing 5 and 10-year leases. Something will happen, good or bad, over the next 5 or 10 years. And their business needs to be built to withstand that. So I think rent negotiations are a small part of what they're kind of thinking about, certainly with the large national tenants.

Speaker Change: There is certainly where we've been.

Speaker Change: Some growth were faster than what we otherwise not because of our leverage and our opportunity set as it relates to California and redeploying those proceeds.

Speaker Change: Deploying capital for the last several years.

Speaker Change: There is no doubt about it is competitive.

Speaker Change: Absent flows.

Speaker Change: <unk>.

Speaker Change: What we look for is the first thing that happens is the buyer pool things out.

Speaker Change: To add a little bit more color as it stands today and I think this is the second part of your question Floris.

Speaker Change: And thats good for us and that's good for other large institutional buyers.

Speaker Change: In the $100 million net investment activity fully.

Speaker Change: <unk>.

Speaker Change: Contemplation.

Speaker Change: By through different parts of the cycle and.

Speaker Change: California asset sales and replacing that by the end of the year, obviously, how those how those come in remains to be seen.

Speaker Change: If there is less competition, whether it be on and off marketed or fully broker deal I think we like that environment, especially given where our capital is being recycled from and the fact that we're at less than four times on a forward basis. So is it for a company like and Penn Trust and our size.

Christy David: So because of that and because of the fact you can't really go on the sidelines and miss opportunities when you're open to buys, expecting that there's going to be better opportunities in 18 months because it may not be there because of the demand and supply dynamic. Okay, makes sense.

Speaker Change: If you think about our where our NOI is trending.

Speaker Change: Our core <unk> is obviously, the timing will impact that as well, but we feel confident based on where the pipeline is today I think we have about half.

Floris Dijkum: So as for a company like Inventrust and our size, we've kind of built our strategies built around times of uncertainty to where we can lean in and perhaps get some growth where faster than what we otherwise thought because of our leverage and our opportunity set as it relates to California and redeploying those proceeds.

Speaker Change: We've kind of built our strategy is built around times of uncertainty to where we can lean in and perhaps get some.

Speaker Change: On the acquisition side awarded and spoken for as it relates to what we're trying to accomplish for the year.

Thank you.

Speaker Change: Some growth were faster than what we otherwise not because of our leverage and our opportunity set as it relates to California and redeploying those proceeds.

Floris van Dijkum: We now turn to Floris Van Dijkum with Compass Point. Your line is open, please go ahead. Hey, thanks, guys. I'd love to get your comments on the transaction market. And if you're seeing any changes, if you've had any of the bidders for your California assets, potentially change pack or change pricing expectations. And also, just if you could just confirm that the capital recycling, which is, you know, presumably selling lower cap rates, California assets, we're reinvesting into higher yielding. That's all that. That is not contemplated in your existing guidance, is that correct? No, it is. And so it's all about timing for us.

Speaker Change: Obviously, theres a lot to be still done there, but we feel really good about the pace of that thus far.

Floris Dijkum: Just to add a little bit more color, as it stands today, and I think this is the second part of your question, Floris, I'm going to go ahead and close it out. Thank you. in the $100 million net investment activity fully contemplates California asset sales and replacing that by the end of the year. Now, obviously, how those come in remains to be seen. I think if you think about where our NOI is trending and where our core FFO is, obviously, the timing will impact that as well. But we feel confident based on where the pipeline is today.

Speaker Change: Just to add a little bit more color as it stand today and I think this is the second part of your question first.

Speaker Change: Thanks, J J, maybe if you could just dive into you mentioned a couple of the markets that youre looking at are they all going to be.

Speaker Change: And the $1 billion net investment activity fully.

Speaker Change: Or these are deals youre looking at you mentioned I think Charlotte.

Speaker Change: Commonplace.

Speaker Change: California asset sales and replacing that by the end of the year, obviously, how those how those come in remains to be seen.

Speaker Change: Charleston, I can't remember what the other markets off the top of my head.

Speaker Change: Will you be looking to expand in all of those is it just that is this a portion of where you would be looking to deploy capital.

If you think about our where our NOI is trending.

Speaker Change: Core <unk> is obviously, the timing will impact that as well, but we feel confident based on where the pipeline is today I think we have about half.

Speaker Change: It's a portion those are the ones, where we've seen opportunities recently acquires.

Floris Dijkum: I think we have about half on the acquisition side awarded and spoken for as it relates to what we're trying to accomplish for the year. Obviously, there's a lot to be still done there, but we feel really good about the pace thus far.

Speaker Change: Obviously, we just closed a nice little deal on this outside of Charlotte, We're still looking at other opportunities in Charlotte Charlotte is a great market, but then I think one of the things that we can do is because we have five assets in the Charlotte market hopefully that maybe a couple more than places like <unk>.

Speaker Change: On the acquisition side awarded and spoken for as it relates to what we're trying to accomplish for the year.

Speaker Change: Obviously, theres a lot to be still done there, but we feel really good about the pace of that thus far.

Floris Dijkum: Thanks, DJ. Maybe if you could just dive into, you mentioned a couple of the markets that you're looking at. Are they all going to be, you know, or these are deals you're looking at? You mentioned, I think, Charlotte, Charleston, I can't remember the other markets off the top of my head. Will you be looking to expand in all of those? Or is it just a portion of where you will be looking to deploy capital? It's a portion. Those are the ones where we've seen opportunities recently, Floris. Obviously, we just closed a nice little deal on the south side of Charlotte.

Speaker Change: Thanks P. J, maybe if you could just dive into you mentioned a couple of the markets that youre looking at are they all going to be.

Speaker Change: <unk> will get more interesting its an ancillary very complementary markets. Some very high quality assets, obviously Asheville has gone through some turmoil certainly in trout tragedy through the hurricane, but that market will rebuild and it's been a very.

DJ Busch: So let me take a step back. The transaction market as we see it is still very healthy. There's, you know, certainly where we've been Deploying capital, you know, for the last several years, you know, there's no doubt about it. It's competitive. It ebbs and flows. I think What we look for is the first thing that happens is the buyer pulls things out. And that's good for us, and that's good for other large institutional buyers that, you know, buy through different parts of the cycle. And if there's less competition, whether it be on an off-marketed or fully brokered deal, I think we like that environment, especially given where our capital is being recycled from and the fact that we're at less than four times on a four basis.

Speaker Change: Or these are deals youre looking at you mentioned I think Charlotte.

Speaker Change: Charleston, I cant remember the other markets off the top of my head.

Speaker Change: Strong.

Speaker Change: Growing.

Speaker Change: The market for some time and we can service that exceptionally well out of our Charlotte platform. So we're looking for other opportunities like that think about Charleston, we'd have a foothold there now we're hoping to add a little bit and then we're looking at a little bit south of Lake the Savannah market. Once we get into those smaller markets. It's important though that the threshold of quad.

Speaker Change: Will you be looking to expand in all of those is it just that is this a portion of where you would be looking to deploy capital.

Speaker Change: It's a portion those are the ones, where we've seen opportunities recently acquires obviously, we just closed a nice little deal on this outside of Charlotte, We're still looking at other opportunities in Charlotte Charlotte is a great market, but then I think one of the things that we can do is because we have five assets in the Charlotte market hopefully to add maybe a cut.

Floris Dijkum: We're still looking at other opportunities in Charlotte. Charlotte is a great market.

Speaker Change: But he has to go up.

Floris Dijkum: But then I think one of the things that we can do is, because we have five assets in the Charlotte market, hopefully to add maybe a couple more, then places like Asheville get more interesting. It's an ancillary, very complimentary market, some very high quality assets. Obviously, Asheville has gone through, you know, some turmoil, certainly tragedy through the hurricane. But that market will rebuild. And it's been a very strong growing market for some time. And we can service that exceptionally well out of our Charlotte platform. So we're looking for other opportunities like that. Think about Charleston.

Speaker Change: It's no longer it's no longer acceptable to have the fifth best market, that's finding Charlotte because theres. So many nice little pockets in submarkets the smaller the market gets the higher quality.

Speaker Change: More than places like <unk>.

Speaker Change: Because we want to make sure that demand will be it is appropriate to fit within the portfolio. So we can continue to grow.

So for a company like Inventrust and our size, we've kind of built our strategies built around times of uncertainty to where we can lean in and perhaps get some growth where faster than what we otherwise thought because of our leverage and our opportunity set as it relates to California and redeploying those proceeds.

Speaker Change: <unk> will get more interesting its an ancillary very complementary markets. Some very high quality assets, obviously Asheville has gone through some turmoil certainly in trial tragedy through the hurricane, but that market will rebuild and it's been a very.

Speaker Change: Thanks, Steve I appreciate it.

Speaker Change: Okay.

Speaker Change: As another reminder, if you'd like to ask a question. Please press star one on your telephone keypad now.

Speaker Change: Strong.

Speaker Change: Growing.

Speaker Change: The market for some time and we can service that exceptionally well out of our Charlotte platform. So we're looking for other opportunities like that think about Charleston, we'd have a foothold there now we're hoping to add a little bit and then we're looking at a little bit south of Savannah market. Once we get into those smaller markets. It's important though that the threshold of quad.

DJ Busch: Just to add a little bit more color, as it stands today, and I think this is the second part of your question for us. In the $100 million net investment activity, fully contemplates California asset sales and replacing that by the end of the year. Now obviously how those come in remains to be seen. I think if you think about where our NOI is trending and where our core FFO is, obviously the timing will impact that as well. But we feel confident based on where the pipeline is today. I think we have about half on the acquisition side awarded and spoken for as it relates to what we're trying to accomplish for the year.

Speaker Change: We now turn to Michael Gorman with <unk>. Your line is open. Please go ahead.

Floris Dijkum: We have a foothold there now. We're hoping to add a little bit. And then we're looking a little bit south in like the Savannah market.

Speaker Change: Yeah. Thanks, Good morning, TJ, maybe just sticking with that last answer for a second given some of the markets that youre looking at where the quality threshold goes up a little bit is there any is there any risk given the turbulence in the markets that some of the capital recycling on the on putting the money to work.

Floris Dijkum: Once we get into those smaller markets, it's important, though, that the threshold of quality has to go up. It's no longer it's no longer acceptable to have the fifth best market. That's fine in Charlotte because there's so many nice little pockets and sub markets. The smaller the market gets, the higher the quality. And because we want to make sure that the demand will be is appropriate to fit within the portfolio so we can continue to grow.

Speaker Change: But he has to go up.

Speaker Change: It is no longer it's no longer acceptable to have the fifth best market, that's finding Charlotte because theres. So many nice little pockets in submarkets, the smaller the mark against the higher quality.

Speaker Change: Could slip either later into the year or into next year.

Speaker Change: Because we want to make sure that the demand will be as appropriate to fit within the portfolio. So we can continue to grow.

Speaker Change: And is there any would that create any situation, where the special dividend or is that not a not a risk.

Speaker Change: Sure.

Floris Dijkum: Thank you, Jeff. Appreciate it.

Speaker Change: So it's a great question, obviously, when youre doing when Youre moving 10% in and out of the portfolio of temporary one is an important piece of that because of the potential gains. We've spent a ton of time, making sure that we're mitigating that risk that's absolutely something that we want to avoid if possible and because of the pipeline as it sits today I think we're in a great.

Steve: Thanks, Steve I appreciate it.

Speaker Change: Okay.

Obviously there's a lot to be still done there, but we feel really good about the pace thus far.

Operator: As another reminder, if you'd like to ask a question, please press star 1 on your telephone keypad now.

Speaker Change: As another reminder, if you'd like to ask a question. Please press star one on your telephone keypad now.

Michael Gorman: We now turn to Michael Gorman with BTIG. Your line is open, please go ahead. Yeah, thanks, good morning.

Michael Gorman: We now turn to Michael Gorman with <unk>. Your line is open. Please go ahead.

DJ Busch: Thanks, D.J. Maybe if you could just dive into, you mentioned a couple of the markets that you're looking at. Are they all going to be, you know, or these are deals you're looking at? You mentioned, I think, Charlotte, Charleston. I can't remember the other markets off the top of my head. Will you be looking to expand in all of those? Or is it just that is a portion of where you will be looking to to deploy capital? It's a portion. Those are the ones where we've seen opportunities recently, Floris. Obviously, we just closed a nice little deal on the south side of Charlotte.

Michael Phillips: DJ, maybe just sticking with that last answer for a second, given some of the markets that you're looking at where the quality threshold goes up a little bit, is there any risk, given the turbulence in the markets, that some of the capital recycling on putting the money to work could slip either later into the year or into next year? And would that create any situation with a special dividend or is that not a risk? It's a great question. Obviously, when you're moving 10% in and out of the portfolio, 1031 is an important piece of that because of the potential gains.

Speaker Change: Yeah. Thanks, Good morning, TJ, maybe just sticking with that last answer for a second given some of the markets that you are looking at where the quality threshold goes up a little bit is there any is there any risk given the turbulence in the markets that some of the capital recycling on the on putting the money to work.

Speaker Change: Sponsors to make sure we're covered and executing on not only the portfolio strategy, but the tax strategy that comes with it.

Speaker Change: We expected when.

Speaker Change: When we came out we came out with our initial guidance. This year that most of the acquisition activity was back loaded call. It certainly second and third quarter may be leaking into the fourth but we still feel very confident in our guidance rates because at the end of the day. It's just important for us to continue to move core fulfill higher and if we can do something substantial in Calgary.

Michael Gorman: Could slip either later into the year or into next year.

And is there any would that create any situation with a special dividend or is that not.

Michael Gorman: Not a risk.

DJ Busch: We're still looking at other opportunities in Charlotte. Charlotte is a great market.

Speaker Change: So it's a great question, obviously, when youre doing when Youre moving 10% in and out of the portfolio of temporary one is an important piece of that because of the potential gains. We've spent a ton of time, making sure that we're mitigating that risk that's absolutely something that we want to avoid if possible and because of the pipeline as it sits today.

Speaker Change: While doing that and upgrading the portfolio for 2026 and beyond from a growth perspective, I think that's what we're trying to accomplish this year that we feel really good where we stand today.

But then I think one of the things that we can do is, because we have five assets in the Charlotte market, hopefully add maybe a couple more. Then places like Asheville get more interesting. It's an ancillary, very complimentary market, some very high quality assets. Obviously, Asheville has gone through some turmoil, certainly tragedy through the hurricane. But that market will rebuild. And it's been a very strong growing market for some time. And we can service that exceptionally well out of our Charlotte platform. So we're looking for other opportunities like that.

Michael Phillips: We've spent a ton of time making sure that we're mitigating that risk because it's absolutely something that we want to avoid if possible. And because of the pipeline as it sits today, I think we're in a great spot to make sure we're covered and executing on not only the portfolio strategy, but the tax strategy that comes with it.

Speaker Change: Great. That's helpful. And then maybe if you could defend extra minute Carmel village, obviously Charlotte is a great market.

Speaker Change: I think we're in a great spot to make sure we're covered and executing on not only the portfolio strategy, but the tax strategy that comes with it.

Speaker Change: It's a little bit of a different asset it looks like maybe you can just kind of walk us through.

Michael Phillips: Thank you. We expected, Mike, when we came out with our initial guidance this year, that most of the acquisition activity was going to be backloaded, call it certainly second and third quarter, maybe leaking into the fourth, but we still feel very confident in our guidance rates. Because at the end of the day, it's just important for us to continue to move quarter foot or higher, and if we can do something this substantial on the capital recipients side while doing that and upgrading the portfolio for 2026 and beyond from a growth perspective, I think that's what we're trying to accomplish this year.

Speaker Change: How you thought about adding it to the portfolio positioning in the market and maybe any future opportunities.

Speaker Change: We expected when.

Speaker Change: When we came out we came out with our initial guidance. This year that most of the acquisition activity was good back loaded call. It certainly second and third quarter may be leaking into the fourth but we still feel very confident in our guidance range because at the end of the day. It's just important for us to continue to move quarter fulfill higher and if we can do something substantial in the category.

Speaker Change: At the site.

Speaker Change: Yes, so maybe I'll just start high level and then maybe Christie can talk a little bit about the leasing opportunities or that's one of the things that was attractive about it but I think as I mentioned.

DJ Busch: Think about Charleston. We have a foothold there now. We're hoping to add a little bit. And then we're looking a little bit south in the Savannah market. Once we get into those smaller markets, it's important, though, that the threshold of quality has to go up. It's no longer acceptable to have the fifth best market. That's fine in Charlotte because there's so many nice little pockets and submarkets. The smaller the market gets, the higher the quality, because we want to make sure that the demand is appropriate to fit within the portfolio so we can continue to grow.

Speaker Change: Most of our portfolio certainly is.

Speaker Change: Caters to grocery orders is grocery anchored centers at a 60% 65% has a.

Speaker Change: Second while doing that and upgrading the portfolio for 2026 and beyond from a growth perspective, I think that's what we're trying to accomplish this year that we feel really good where we stand today.

Speaker Change: A true neighborhood or community center, we do have a portion that's a little bit bigger in nature power centers. Most of those do have a grocery component as well, we're looking to add grocers at the ones that are on that.

Michael Phillips: We feel really good at where we stand today. Great, that's helpful.

Michael Phillips: And then maybe if we could spend an extra minute on Carmel Village, obviously Charlotte's great market. That's a little bit of a different asset, it looks like. So maybe you can just kind of walk us through how you thought about adding it to the portfolio, its positioning in the market, and maybe any future opportunities. Most of our portfolio certainly is, you know, caters to grocery or is grocery anchored centers, if it's 60, 65% has, is a true neighborhood or community center. We do have a portion that's a little bit bigger in nature, power centers, most of those do have a grocery component as well.

Speaker Change: Great. That's helpful. And then maybe if you could spend.

Speaker Change: Art anchored by a grocery we've had success.

Speaker Change: Extra minute Carmo village, obviously, Charlotte is a great market.

Speaker Change: We feel good about where that's going in the future as well.

Thank you, Jeff. Appreciate it.

Speaker Change: It's a little bit of a different asset it looks like so maybe you can just kind of walk us through.

We think on anchored centers, if they have a reasonable amount of scale. They fit the market nicely. We're already in the market. We're looking to expand in the market. Those are all interesting to us obviously Carmel villages incredible part of the Charlotte market down certainly done at Carmel.

Speaker Change: How you thought about adding into the portfolio positioning in the market and maybe any future opportunities.

Operator: As another reminder, if you'd like to ask a question, please press star 1 on your telephone keypad now.

Michael Gorman: We now turn to Michael Gorman with BTIG. Your line is open, please go ahead. Yeah, thanks, good morning. DJ, maybe just sticking with that last answer for a second, given some of the markets that you're looking at where the quality threshold goes up a little bit, is there any risk, given the turbulence in the markets, that some of the capital recycling on putting the money to work could slip either later into the year or into next year? And would that create any situation with a special dividend or is that not a risk? It's a great question.

Speaker Change: At the site.

Speaker Change: Yes, so maybe I'll just start high level and then maybe Christie can talk a little bit about the least opportunities or that's one of the things that was attractive about it but I think as I mentioned.

Speaker Change: High income.

Speaker Change: Great Great population growth.

Speaker Change: It serves that that smaller community really well, it's got good restaurants services. Some of those that we're going to be able to upgrade.

Speaker Change: Most of our portfolio certainly is.

Speaker Change: It caters to grocery or is grocery anchored centers with a 60% 65%.

Speaker Change: Well, what do you see us do 10 deals like <unk> in a row, probably not but it's a nice addition, and we're looking at similar opportunities like that and so.

Speaker Change: True neighborhood or community Center, we do have a portion that's a little bit bigger in nature power centers. Most of those do have a grocery component as well we're looking to add grocers at the ones that are that are anchored by a grocery and we've had success and we feel good about where that's going in the future as well, but we think these we think an anchored centers if they have.

Michael Phillips: We're looking to add grocers at the ones that aren't anchored by a grocery, and we've had success, and we feel good about where that's going in the future as well. But we think these, we think on anchored centers, if they have a reasonable amount of scale, they fit the market nicely, we're already in the market, or we're looking to expand in the market. Those are all interesting to us. Obviously, Carmel Village is an incredible part of the Charlotte market down in Carmel, high income, and great, great population growth. It serves that smaller community really well.

Speaker Change: Some of our other markets.

Speaker Change: I mean, I'll, just as CJ mentioned I'll just add.

Speaker Change: The tendency there is actually basically all necessity based on what we're trying to do our portfolio and as we review that asset for acquisition potential. We really saw that there was an ability to operate so many merchants there add additional service tenants to that neighborhood and regret.

DJ Busch: Obviously, when you're moving 10% in and out of the portfolio, 1031 is an important piece of that because of the potential gains. We've spent a ton of time making sure that we're mitigating that risk because it's absolutely something that we want to avoid if possible. And because of the pipeline as it sits today, I think we're in a great spot to make sure we're covered and executing on not only the portfolio strategy, but the tax strategy that comes with it. Thank you.

Speaker Change: A reasonable amount of scale they fit the market nicely, we're already in the market or we're looking to expand in the market. Those are all interesting to us obviously carmel villages incredible part of the <unk>.

Speaker Change: Some market down certainly down and caramel hi.

Speaker Change: And that with key for us and given the lack of an anchor that means it's all small shop, where you have greater ability to turn those tenants and also drive the rent.

Speaker Change: High income.

Speaker Change: Great Great population growth.

Michael Phillips: It's got good restaurants, services, some of those that we're going to be able to upgrade.

Speaker Change: And I just note there's a fantastic through public they opened across the street from it that does not have any small shop. So you could also look at this as if it feeds off of all of the foot traffic. That's brand new policy is going to drive in that area. So we were really excited by the opportunity and think it'll be very additive to our Charlotte north of Atlanta.

Speaker Change: It serves that that smaller community really well, it's got good restaurants services. Some of those that we're going to be able to upgrade.

We expected, Mike, when we came out with our initial guidance this year, that most of the acquisition activity was going to be backloaded, call it certainly second and third quarter, maybe leaking into the fourth, but we still feel very confident in our guidance rates, because at the end of the day, it's just important for us to continue to move quarter foot or higher, and if we can do something this substantial on the capital recipients side while doing that and upgrading the portfolio for 2026 and beyond from a growth perspective, I think that's what we're trying to accomplish this year.

Michael Phillips: Will you see us do 10 deals like Carmel Village in a row? Probably not. But it's a nice addition. And we're looking at similar opportunities like that in some of our other markets. I mean, I'll just, you know, as CJ mentioned, I'll just add, the tenancy there is actually basically all necessity-based, so it fits what we're trying to do at our portfolio. And as we review that asset for acquisition potential, we really saw that there was an ability to upgrade some of the merchants there, add additional service tenants to that neighborhood, and raise rent. And that was key for us.

Speaker Change: Well, what do you see us do 10 deals like Carmel boots in a row, probably not but it's a nice addition, and we're looking at similar opportunities like that.

Speaker Change: Some of our other markets.

Speaker Change: Thanks.

Speaker Change: Really helpful color actually and maybe just one last one Christy.

Speaker Change: I mean, I'll, just TJ mentioned I'll just add.

Speaker Change: The tenancy there is actually basically all necessity based on central.

Speaker Change: Obviously, it's still very early but just as you think about the last 30 days and having conversations with tenants in the portfolio have you have you noticed a difference in the tenor or a difference in the kind of questions and conversations you are having between sort of the larger tenants in the portfolio that was north of 10000 square feet and maybe some of the smaller local.

We're trying to do our portfolio and as we review that asset for acquisition potential. We really saw that there was an ability to operate in many merchants there add additional service tenants to that neighborhood and right Brian.

DJ Busch: We feel really good at where we stand today. Great, that's helpful.

And then maybe if we could spend an extra minute on Carmel Village, obviously Charlotte's great market. That's a little bit of a different asset, it looks like.

Michael Phillips: I mean, given the lack of an anchor, that means it's all small shop where you have greater ability to turn those tenants and also drive the rent. And I just note there's a fantastic new Publix that opened across the street from it that does not have any small shops. So you could also look at this as if it feeds off of all of the foot traffic that the brand new Publix is going to drive in that area. So we were really excited by the opportunity and think it'll be very additive to our Charlotte Thanks. That's really helpful, Culler, actually.

Speaker Change: With Keith Rodman and given the lack of an anchor that means it's all small shop, where you have greater ability to turn those tenants and also trying to rent.

Speaker Change: Either service providers or retailers that you have in the portfolio.

Speaker Change: Any bifurcation in those conversations.

DJ Busch: So maybe you can just kind of walk us through how you thought about adding it to the portfolio, its positioning in the market, and maybe any future opportunities. at the site. Most of our portfolio certainly is, you know, caters to grocery or is grocery anchored centers if it's 60, 65% is a true neighborhood or community center. We do have a portion that's a little bit bigger in nature, power centers, most of those do have a grocery component as well. We're looking to add grocers at the ones that aren't anchored by a grocery and we've had success and we feel good about where that's going in the future as well.

Speaker Change: And I just note there.

Fantastic through public that opened across the street from.

Speaker Change: Not yet I mean, do you think that given the 30 days in the news and the fact that that the pipelines and the economic uncertainty in how the population reacted.

Speaker Change: That does not have any small shop. So you could also look at this as it feeds off of all of the foot traffic. That's brand new policy is going to drive in that area. So we were really excited by the opportunity and think it'll be very additive to our Charlotte Atlanta.

Speaker Change: You might see more of it.

Speaker Change: Our property management teams and our leasing teams regularly communicate all times good an uncertainty with our tenants and to date. The people are the tenants that are showing concern are the ones that we've had our eye on a long so there hasnt been a new crop in this conversation hasnt changed and I feel good that we're close to the ones, where we think there could be.

Speaker Change: Thanks.

Christy David: And maybe just one last one, Christy. Obviously, it's still very early, but just as you think about the last 30 days and having conversations with tenants in the portfolio, have you noticed a difference in the tenor or a difference in the kind of questions and conversations you're having between sort of the larger tenants in the portfolio, those north of 10,000 square feet, and maybe some of the local either service providers or retailers that you have in the portfolios? Any bifurcation in those conversations?

Christy: Helpful color actually and maybe just one last one Christy.

Speaker Change: Obviously, it's still very early but just as you think about the last 30 days and having conversations with tenants in the portfolio have you have you noticed a difference in the tenor or a difference in the kind of questions and conversations you are having between sort of the larger tenants in the portfolio that was north of 10000 square feet and maybe some of the smaller local.

Speaker Change: Some failures or closures and we have already looked at backup opportunities.

Speaker Change: Again, it's early but I'm hopeful that we're going to get through that.

Speaker Change: And then our tax we're still doing really well.

Speaker Change: The only thing that I would add is.

Christy: Either service providers or retailers that you have in the portfolio.

Speaker Change: Four candidates.

But we think these, we think on anchored centers, if they have a reasonable amount of scale, they fit the market nicely. We're already in the market or we're looking to expand in the market. Those are all interesting to us.

Speaker Change: Going through the situation.

Speaker Change: Any bifurcation in those conversations.

Speaker Change: 18 months ago.

Christy David: Not yet. I mean, you'd think that given the 30 days in the news and the fact that that's what the headlines of the economic uncertainty and how the population as a whole is reacting, you might see more of it. But our property management teams and our leasing teams regularly communicate in all times good and uncertainty with our tenants. And to date, the people or the tenants that are showing concern are the ones that we've had our eye on all along. So there hasn't been a new crop and the conversation hasn't changed. And I feel good that we're close to the ones where we think there could be.

Speaker Change: When we were working on five bathroom beyond deals at the same time.

Speaker Change: Not yet I mean, do you think that given the 30 days in the news and the fact that that was headlines of the economic uncertainty in how the population reacted you might see more of it by our property management teams and our leasing teams regularly communicate.

Speaker Change: Same time with new tenants.

We'd probably be a little bit more nervous only because when you are in active.

DJ Busch: Obviously, Carmel Village is an incredible part of the Charlotte market down in Carmel. High income and great, great population growth. It serves that smaller community really well. It's got good restaurants, services, some of those that we're going to be able to upgrade.

Speaker Change: Active negotiation, that's when there can be a little bit more horse trading if you will as it relates to what kind of.

Speaker Change: <unk> got an uncertainty with our tenants and to date. The people are the tenants that are showing concern are the ones that we've had our eye on a lot. So there hasn't been a new crop in this conversation hasnt changed and I feel good that we're close to the ones, where we think there could be.

Speaker Change: Both economic non economic incentives you may be getting where it may be giving up.

Speaker Change: We're sitting at where our anchor.

Speaker Change: Because we are fully leased we're holding one off at a redevelopment opportunity and we have everything else is executed. So it's a great time to be slow at least on the anchor side and then it's a great time to have a high watermark on the small shop side, because we're not having to have a tremendous amount of those conversations right now in a time, where theres probably has some uncertainty on the retailers.

Will you see us do 10 deals like Carmel Village in a row? Probably not, but it's a nice addition and we're looking at similar opportunities like that in some of our other markets. I mean, I'll just, you know, as CJ mentioned, I'll just add the tenancy there is actually basically all necessity-based, so it fits what we're trying to do at our portfolio, and as we review that asset for acquisition potential, we really saw that there was an ability to upgrade some of the merchants there, add additional service tenants to that neighborhood, and raise rents, and that was key for us.

Daniel Busch: There have been some failures or closures, and we have already looked at backup opportunities for those. So again, it's early, but I'm hopeful that we're going to get through this and that our tenants will still do really well.

Speaker Change: Some failures or closures and we have already looked at backup opportunities.

Speaker Change: Again, it's early but I'm hopeful that we're going to get through that.

Speaker Change: And then our tax we're still doing really well.

Daniel Busch: Yeah, and Mike, the only thing that I would add is, you know, in full candidness, if we're going through this situation, 18 months ago, I think it was, when we were working on five Bath & Beyond deals at the same time with new tenants. I think we'd probably be a little bit more nervous, only because when you're in active negotiation, that's when there can be a little bit more frustrating, if you will, as it relates to what kind of both economic and non-economic incentives you may be getting or you may be giving up. We're sitting at where our anchors are fully leased.

Mike: Mike the only thing that I would add is.

Mike: Full candidates, if we were going through this situation.

Speaker Change: Syed.

Mike: 18 months ago, I think it was when we were working on five deals.

Syed: Great. Thanks, really appreciate all the context.

Mike: Deals at the same time same time with new tenants I think we'd probably be a little bit more nervous only because when you are in.

Speaker Change: We have no further questions. So I'll now hand back to T. J Busch for any final remarks.

DJ Busch: I mean, given the lack of an anchor, that means it's all small shop where you have greater ability to turn those tenants and also drive the rents, and I just note there's a fantastic new Publix that opened across the street from it that does not have any small shop, so you could also look at this as if it feeds off of all of the foot traffic that the brand-new Publix is going to drive in that area, so we were really excited by the opportunity and think it'll be very additive to our Charlotte Thanks.

Mike: Active negotiation, that's when there can be a little bit more horse trading if you will as it relates to what kind of.

Speaker Change: Thank you everyone for taking the time and joining us this morning.

Mike: Both economic not economic incentives you may be getting where you may be giving up.

Speaker Change: Look forward to seeing many of you in what's going to be a pretty busy spring competencies.

Mike: We're sitting at where our anchor our anchors are fully leased we're holding one off at a redevelopment opportunity and we have everything else is executed. So it's a great time to be slow at least on the anchor side of and it's a great time to have a high watermark on the small shop side, because we're not having to have a tremendous amount of those conversations right now.

Speaker Change: Until then hope all is well.

Daniel Busch: We're holding one off at a redevelopment opportunity and we have everything else is executed. So, it's a great time to be fully leased on the anchor side and then it's a great time to be at your high watermark on the small shop side, because we're not having to have a tremendous amount of those conversations right now, in a time where there's probably some uncertainty on the retailer side. Great, thanks.

See you soon.

Speaker Change: Yes.

Speaker Change: Ladies and gentlemen, today's call is now concluded thank you for your.

Speaker Change: Your participation.

Speaker Change: You may now disconnect your lines.

That's really helpful, Culler, actually.

Christy David: And maybe just one last one, Christy. Obviously, it's still very early, but just as you think about the last 30 days and having conversations with tenants in the portfolio, have you noticed a difference in the tenor or a difference in the kind of questions and conversations you're having between sort of the larger tenants in the portfolio, those north of 10,000 square feet, and maybe some of the smaller local either service providers or retailers that you have in the portfolios? Any bifurcation in those conversations? Not yet. I mean, you'd think that given the 30 days in the news and the fact that that's what the headlines of the economic uncertainty and how the population as a whole is reacting, you might see more of it.

Mike: In a time, where theres probably has some uncertainty on the retailer side.

Daniel Busch: Really appreciate all the contacts.

Mike: Great. Thanks, really appreciate all the context.

Daniel Busch: We have no further questions, so I'm going to hand back to D.J.

Speaker Change: We have no further questions. So I'll now hand back to T. J Busch for any final remarks.

Operator: Busch for any final remarks. Thank you everyone for taking the time and joining us this morning. We look forward to seeing many of you in what's going to be a pretty busy spring conference season. Until then, hope all is well, and see you soon.

Speaker Change: Thank you everyone for taking the time to joining us this morning.

Speaker Change: Look forward to seeing many of you in what's going to be a pretty busy spring competence season until then hope all is well.

Speaker Change: In season.

Operator: Ladies and gentlemen, today's call is now concluded. We'd like to thank you for your participation. You may now disconnect your.

Speaker Change: Yes.

Speaker Change: Ladies and gentlemen, today's call is now concluded.

But our property management teams and our leasing teams regularly communicate in all times good and uncertainty with our tenants. And to date, the people or the tenants that are showing concern are the ones that we've had our eye on all along. So there hasn't been a new crop and the conversation hasn't changed. And I feel good that we're close to the ones where we think there could be. There have been some failures or closures, and we have already looked at backup opportunities for those. So again, it's early, but I'm hopeful that we're going to get through this and that our tenants will still do really well.

Speaker Change: Your participation.

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Speaker Change: [music].

DJ Busch: Yeah, and Mike, the only thing that I would add is, you know, in full candidness, if we're going through this situation, 18 months ago, I think it was, when we were working on five Bath & Beyond deals at the same time with new tenants. I think we'd probably be a little bit more nervous, only because when you're in active negotiation, that's when there can be a little bit more frustrating, if you will, as it relates to what kind of both economic and non-economic incentives you may be getting or you may be giving up. We're sitting at where our anchors are fully leased.

We're holding one off at a redevelopment opportunity and we have everything else is executed. So, it's a great time to be fully leased on the anchor side and then it's a great time to be at your high watermark on the small shop side, because we're not having to have a tremendous amount of those conversations right now, in a time where there's probably some uncertainty on the retailer side. Great, thanks.

DJ Busch: Really appreciate all the contacts.

We have no further questions.

DJ Busch: I'm going to hand back to D.J. Bush for any final remarks. Thank you everyone for taking the time and joining us this morning. We look forward to seeing many of you in what's going to be a pretty busy spring conference season. Until then, hope all is well, and see you soon.

Operator: Ladies and gentlemen, today's call is now concluded. We'd like to thank you for your participation. You may now disconnect your.