Well, thank you everybody. On to the next panel. We got InvenTrust here with us. Happy to have DJ Busch with us, who is the CEO of the company. Why don't you introduce your team? Yeah, sure. Maybe you have some opening remarks to start off. Yeah. Thanks so much, Samir. Thank you guys for having us, Andrew. With me today is Christy David, our Chief Operating Officer and General Counsel, and Dave Heimberger, our Chief Investment Officer. I think most of the faces here certainly look familiar. Thanks for joining us and your interest. Just a quick background, InvenTrust Properties, 78 properties, open air essential retails exclusively in Sun Belt markets. Two thirds of our portfolio is kind of core neighborhood grocery-anchored centers, the balance being power centers. But the sole focus and mandate for our company, is to own and operate essential retail open air centers in markets that we feel that are exhibiting better growth characteristics than what you see in the balance of the country. In which case, that shows up through our ability to push rents and grow cash flow faster. Most certainly, our goal is to grow it faster than the sector average or what else is available in the public market. We've been a public company for almost five years. It'll be five years on October 13th. Over that five-year period, we've grown NOI by over 20%, FFO per share by over 25%, grown the asset base by over a half a billion dollars, with the expectation that we can continue to do that for the foreseeable future. We have plenty of capacity on our balance sheet to continue to grow our business without having to access the equity capital markets, and continue to grow and accelerate free cash flow, both through internal prospects and our external growth prospects. Obviously, in the current market, it's become a little bit more challenging for two reasons. The first one, obviously, being retail is back in vogue from a private market perspective. It has been a much more competitive environment, especially in the markets where we're looking to acquire and expand our business and our presence. But equally as important, our cost of capital has obviously changed over the past several quarters with rising debt costs impacting our ability to get incremental debt at a level that's attractive compared to the use of proceeds. So we're monitoring that. We've been very fortunate this year. We've closed on to date, including the one we closed subsequent to the quarter, $290 million of acquisitions in current and new markets. So this year we've closed a couple deals in Charlotte, our first deal in Nashville, our first deal in Knoxville, Tennessee as well, and then subsequent to the quarter, we did close a grocery-anchored center in Greensboro, North Carolina. Core markets and then finding really exciting opportunities in some of these complementary emerging Sun Belt markets that exhibit the same characteristics that we do see in some of our core markets like in Austin or Charlotte or West Florida or the like. But I'll start there and then go in any direction you want, Samir. Yeah. Maybe just on macro, you talked about the Sun Belt, kind of where you've been focused. Clearly a big beneficiary of the migration that we saw the last several years. Are you seeing any sort of changes in household formation there, population growth that maybe going the other way now? No. What we have seen is, we've seen the migration trends continue, especially in the Carolinas, in Florida, and in our markets in Texas. We've seen that continue. What has changed is the cost of living in some of our core markets has gotten harder. Meaning, home prices have certainly increased, other pricing has increased, which has availed new opportunities in some of those secondary emerging markets, where obviously Nashville over the last 15 years has completely transformed. We see similar characteristics, certainly not to the same extent, but similar characteristics in Knoxville, which continues to be a lower cost of living, but has some great growth drivers as well. Same thing in Greensboro versus what we're seeing in Charlotte or Asheville. So using that hub and spoke strategy to support it. Now what I will say, the great thing about our business is, in specifically retail, is the lack of new supply. So even in the markets where the cost of living and rent prices and home values have gone up, new supply has actually alleviated some of that, specifically in the Sun Belt. So if you think about this, if this was multi-family and we had a Sun Belt strategy, I'd be a little bit more worried because there's been a lot of new supply that's tempered or even reduced our rental rates. That's great for our business. It gives our customer more wallet share to come to our centers, and our centers certainly are still not impacted by any new supply. So a relief in home prices and rental rates at multi-family is helpful for our retail centers. When you talk about new supply, which are the markets again? I mean, it's So new supply, I was talking about new housing supply. New housing supply. That supports retail. Got it. From a retail perspective, we're still not seeing any new Maybe in Texas or Houston, right? Yes, exactly. Okay. Let's talk about the leasing pipeline today. Maybe compare that to this time last year. What's changed as you think about the depth in demand or the quality of prospects? Yeah. Christy, do you want to touch on that? Sure. I think that our leasing pipeline is still very healthy. We have signed or signing but not open pipeline, which is about $5.6 million. We have another 170 basis points of deals sitting in our leasing pipeline, and that means that they're either at lease or LOI or in the legal stages, so that they're in the fruition, but they haven't made it to the signed stage. The quality is exactly what you'd expect of what we've been doing, Samir. It's a good mix of either fitness. We're still seeing service oriented. We're seeing food uses and the like. I think it's a continuation of what we've been producing, and you've seen us sign and open in our centers, and I think that pipeline continues to just be robust. We're actually, compared to where we were at last year, we were about 110 basis points this time last year. So seeing a little bit of increase there. One of the things, we had an economics panel this morning, and our economist was talking about obviously higher gas prices and what they can mean for consumer discretionary spending. I know you've talked about your restaurant exposure. I want to say it's close to 20%, right? What are you seeing on that, and as we think about restaurant credit and expansion plans? Yeah. It's a good question. I would say restaurants. It's a fickle business. It's a tough business. It's certainly harder to succeed than fail, it seems like. But it's an important merchandise mix for us, especially if you think about the structural change in our centers and the traffic patterns that we have post-COVID, and the adoption, certainly in some of our markets, the much more widespread adoption of hybrid work environments. There's just more frequency, more daytime frequency at our centers, which lends itself well to services and specifically food uses. I think we're right around 20%, just over 20% today. That's a great mix for us. A great additional complementary has been health services, which has just surpassed, I think, 10%, maybe close to 12% of our merchandise mix. Those uses would've probably been a lot lower pre-pandemic, as they should've been because you're not getting the same frequency that we're getting today in our suburban shopping centers. I think we'll continue to curate our food uses. Credit is supremely important. Even if they don't succeed, you need to make sure that you're protected. But the reality is the trends in food service move quickly, and it's an important part of our merchandise mix, but it probably has one of the higher levels of risk from a category perspective. The good news is every restaurateur we lose, we get a more optimistic restaurateur to come in. This isn't mine either. No. Somebody must have left it. They're doing fine. Yeah. Oh, they're looking for those who Mark Morgan. Quick question, DJ. Sure. For the 20% restaurant related one, how do you think about and manage the CapEx spend that goes with that? Historically, if you have a bad restaurant, you pump a lot of money into it. It's a great question. What is the average restaurant survival? The average restaurant survives how many years? Three to four years? We do 10 year leases. Luckily, most of our centers are of high quality. Most of our level of success is certainly higher than that. It's one of our most capital intensive tenants. The credit backing is supremely important. Make sure that they're putting in enough capital and they're committing to the site just as much as the landlord is, if not more. Depending on what their credit looks like, Christy David and her team will be asking for different things from that tenant. The good news is once you do have a real good restaurant build out, you can tend to use that over and over again if it's in reasonably good shape. It's certainly from a due diligence perspective, it's probably the things that Christy David and her team spend the most time on, save for big anchor transactions. It sounds like as we think when we talk about restaurants, you're not seeing really an impact today. No, no. Okay. It's a healthy part of our business. Yeah. What I would say any fallout that we've had is almost entirely operationally driven, and it's not an indication of the general softness at our centers or our markets. Got it. In terms of just kind of expanding that pie a little bit, the local mom and pop tenants, they continue to perform well? They do. We have good insight with our mom and pop tenants. We get a decent amount of sales and productivity numbers from them. About over half of them, we have really good insight. The other half, Christy David's team is speaking with them. We have 1,900 tenants. I will say this a lot, but there is not many good things about being a small company, but one is we do have a really good understanding of the health of our small shop tenants across the portfolio. We have lost a handful this year, but they were ones that have been on our watch list for several years, and just they were not able to make it work, which is fine. We have suitable replacements. Mom and pops, they are an important part of our business. I think, what Dave, like 15, 10% of our Right around there. 10% of the portfolio is local mom and pop, true mom and pop tenants, like single store operators. They are important to those communities, and some of them are going to make it, and some of them are not. It is important for us to continue to invest and try and find those opportunities because it is important to the communities they serve. They tend to be less capital intensive. To your point, you are in an environment where gas prices are up and there is other inflationary pressures, it is much more difficult for small shop tenants like that to absorb those costs relative to some of the larger operators. Maybe on the external growth side, you have been active on acquisitions, right? You are sort of at a point where you have kind of reached. You are approaching your net investment goals for the year. Sure. I guess maybe just expand that a little bit. What are you seeing in the transaction market? We were with Brixmor earlier. Obviously, there are certain cap rates here that we've seen compression in cap rates, especially in power centers as well now. Talk about the overall market and how we should think about your net investment goals for the year. Yeah. Dave, do you want to touch on that? Yeah. I think overall market, it was Brixmor. I'm sure Mark touched on just the amount of interest in retail. None of that's new. I think what we've seen over the past year is just whether it's a rotation within existing portfolios, movement from funds from multi-family assets into retail, whatever it is, the allocation, everyone's underweight retail, obviously driving pricing up, cap rates down. For us, again, we're fortunate through the first half of the year to get close to our goal. That allows us to be really patient. As we feel pricing get a little frothy, we can take a pause or we can move on to whether it's different format, different market. That's why you've seen us kind of move into some of these emerging markets. There's a little bit of a pricing delta, although it's all catching up. Every time we make a move, what we think is two steps forward, the capital just kind of casts a wider net because the amount of people that are losing deals is still pretty significant. We're okay taking a pause. I think that allows us to think about our dispositions. We have a couple in market. Those are just sort of rotational opportunities that we'd like to take advantage of. Obviously, sellers are in a great position to sell assets into a market like this. That could free up some capital for us to rotate back through, kind of reset a growth profile on an asset by asset basis. But I think the new thing for the back half of this year is really just more institutional capital, whether that is pensions, coming in wanting to be back into retail, some operator partnerships forming to help run that capital in retail. So just continuation of the competitive environment. At some point, as rates continue to run, maybe that could slow it down a little bit, but we haven't seen that just yet. Yeah. The only thing that I would add simply is, obviously, InvenTrust we have a compelling internal growth story, but equally as a compelling external growth story using the balance sheet. Having said that, we're not going to simply acquire things just to grow the business. They have to make sense, they have to make economic sense, and they got to be accretive to cash flow at some point in the foreseeable future. That is the only way we can grow this business responsibly. So as Dave said, we can kind of turn off our activity very slowly off and on, but while keeping a very robust pipeline, and we're always looking at things. And some are going to make sense and some won't. And we've had more cases recently with the amount of competition that haven't made sense from a pricing perspective, but that can change quickly, and the market can move quickly, and we'll be ready to do that when the time comes. And did you say you have two properties in the market right now for sale? Is that right? Yes. Okay. I was just curious, obviously you lighten the load in California. What is sort of the disposition strategy at this point? Is it geographic? Is it individual internal growth considerations? It is a little bit of both, right? Both are considerations. One thing that we do not do is we are not looking at something that is going to generate growth or not generate growth next year and be shortsighted. We are looking at the long-term trajectory of the asset. Is it going to be competitive in 10 years' time? Is the grocer going to be competitive in 10 years' time within the market that it is supporting in certain markets? Just under 50% of our assets come from Texas, or our NOI comes from Texas. It is probably reasonable to think that that is going to shrink both through additional investment in other Southeast states and markets, and maybe a little bit by divesting strategically out of some assets in Texas based mostly on grocer performance as opposed to any structural problem with the market itself. In terms of the $290 million of acquisitions you have done year to date, what do you think enabled you to win those bids? Everyone's cash is as green as everybody else's, but what did you see in those opportunities that others perhaps did not? It is a good question. Dave will answer this better than I do, but there is a lot of different nuances that come on. Some of it is we can get to a better number, and then maybe it is because we have more optimistic embedded rent underwriting estimates because we are already in those markets. Some of them have been first mover advantage in some of these new markets that we have gone to, like a Knoxville or a Greensboro. Others simply are because we have been repeat buyers from the same seller, and we ran a great process, and that matters a lot in our business, especially in a volatile market where there can be some sort of retraining going on. That has never been InvenTrust's strategy. Obviously, if there is a shock to the system, you are allowed to take a pause. But we've always been very fair as with our counterparty, and that matters, and execution is probably just as important, if not more important than price in some cases. I don't know, Dave, if you have anything you wanted I echo all those comments. I think as you saw us move into secondary markets, there was a point in time when we were one of maybe two institutions versus family office money that was competing on these deals. That is changing. I think that led to early success in the year. But for these markets you're going into, it's Charleston and some of these sort of newer markets. What's the going-in yield versus to the core markets which you were sort of Well, it seems like it is changing quickly. Yeah. They have gotten some of these new markets. We are very fortunate that we started a little while ago because it has gotten more competitive, to Dave's point. It seems like they have institutionalized almost overnight. I will say on balance, like for like, we have found that the initial yield can be 25 to 50 basis points better than some of our traditional core Sun Belt markets, which is a great spread relative to the growth profiles, similar or even sometimes better growth profiles than we are seeing in some of these newer markets. When you enter these new markets, is the goal always to build meaningful scale over time, or are you able to go into a new market and maybe, say, own one or two assets within the area? It is a great question. The goal is to build some sort of scale, but we do not have to. Sometimes it is not appropriate. I do not know if there are five assets in Knoxville that would fit InvenTrust's criteria, but there could be two, and we can operate it very efficiently through either Nashville or Atlanta or Charlotte. That works. Phoenix, if we go back to when we endeavored into building a Phoenix portfolio, that one, it was important. One, it is one of the largest MSAs in the country. But two, it was far enough from the rest of our operating platform that it was important for us to have some sort of scale, or at least visibility to some scale in the future, to make that work for our business. Picking these little pockets of growth in the Southeast, I think that will be one or two, maybe in some cases three, and we can operate those just as efficiently. When you kind of move out, let's use California example. One of the many reasons we decided to exit California is it was harder for us to operate, and we didn't really have scale there because we went from northern San Diego all the way up to north L.A. County, and as a native Southern Californian, that could take 25 hours sometimes it seems like. We weren't able to operate that as efficiently as we wanted to. We're already finding much more efficiencies in the corridors that we've built in the Phoenix MSA. If we have one asset in Nashville, we have one in Knoxville, we'd be very happy with those, but we're continuously canvassing for the next opportunity there as well. Is there any kind of risk to redevelopment in terms of the competitive set? Greenfield development economics don't make sense at all. Replacement cost rents Yeah are way higher than what market rents are. Given the rise of rents and the compression of cap rates, is there markets that are vulnerable to that? Vulnerable as far as You have some crappy center down Competing stock that could put redevelopment dollars to work. Yeah. It could be. That math is even hard to make work in some cases, and cynically, or skeptically I should say, if a center at this point in the retail cycle, which has been quite strong for the better part of six years now coming out of COVID. If it still is under leased, there is probably something more structurally wrong with it. Not to say that one of our competitors, well capitalized competitors, could come in and use one of their grocery relationships. That is always a risk. I think it is a risk that we do not worry about that much because of the competitive positioning that some of our assets have in the markets. Not for that, we spend a decent amount of capital. It is a capital intensive business. Retail always is. It is an operationally intensive business. Our assets tend to look really good. We put a lot of capital to make sure our assets look great. It serves the customer very well, and the tenants are happy to where we can continue to raise rents and they can enjoy strong sales. Then just a question on capital allocation. You guys were trading right around a six cap ± 10 basis points a couple of months ago. Yep. What was the rationale to not do a forward or do a convert at that pricing or Yeah something like that where you could lock in? It's a great question. I think for a company of our size, it's very important. We want to make sure that when we decide to tap the equity markets, if we have the opportunity to do so, it's going to be value creative for current investors as well as prospective new investors. At that point in time, there's a lot of nuances, there's a lot of blackout periods and stuff. One of the things is that we don't want to do is issue equity at a peak and then have the stock underperform and no one makes money. We want to see a stable level in the stock price until we have a good understanding of what our current cost of capital is at any point in time, because there was quite a dramatic run up and then obviously we've come down quite a bit. The reality is it comes down to use of proceeds. Do we have a good use of proceeds? We had already closed $290 million. In 2024 when we issued equity, we had a clear and identified use of proceeds that were going to be accretive. That to me was a compelling story as opposed to doing a forward and not having identified use of proceeds and making a call more or less on the stock price. I think I said a lot there, but that was kind of the rationale behind that. We're trying to be very protective and careful with our capital. Okay. It happened quick right now down. There's obviously been a runoff, and there's certainly no regrets. We still have the balance sheet to support our business, and we want to make sure that our investors feel good about the trajectory of our business and the stock price when we do issue equity. Where do you think you could issue unsecured right now? Great question. It would probably be on an all-in rate 50 basis points higher than where we did it in April, on a blended basis. Think about the tenor. I do not think so. Let me put it this way. We are at what? 5% or so on a 10-year. I do not think spreads have changed that much. They may have contracted a tad because there still is demand for debt capital. But with the movement, I would just say whatever the treasuries have moved over the last, all-in coupon between tenor would be 6%-6.5%. If we have this kind of environment for the next, whatever, few quarters, I presume that any kind of acquisition activity will be funded through asset sales. It would be through asset sales or using the balance sheet selectively, but we are always assessing our incremental debt capital, Dennis, to your point, on permanent financing. The net debt to EBITDA ticked up, right? I think in the quarter. How are you thinking, I guess the similar question, how do you think about the mix of debt disposition to equity to grow your Yeah. We can fully fund our strategy for the next five years and grow NOI by close to $100 million by putting another half a billion or so of incremental debt on the balance sheet and still be well within our range. There was an uptick this quarter because we closed a lot of the assets at the end of the quarter, and it is quarterly annualized. That will come down. We will report third quarter earnings. It will look like a more normalized run. We are expecting to end the year sub 5 from a net debt to EBITDA standpoint. So still comfortably with a lot of capacity to continue to grow the business. One topic that comes up is cost and CapEx and construction costs is up. How should we think about CapEx as a percentage of NOI? Yeah. It is funny. It is a great question. I think it is actually in our business, and if you think about we have six anchor vacancies across our portfolio. Three of them are at a redevelopment site in Tampa, St. Pete. So those are held for redevelopment. That will be something that it will be a multi-year redevelopment where we are relocating a grocer and bringing in some backfill junior anchors and refortifying the property for the next 30 years. The other three ones out of the asset held for I should not say that. The asset that we are planning to sell are the last asset in California. So that one is a non-issue. One more is in Richmond, Virginia, where we had a Painted Tree Boutiques. Obviously, there was a bankruptcy earlier in the year. We have already released that to Nordstrom Rack, so fantastic outcome there. The last one was our last remaining Party City vacancy in the Flower Mound market of Dallas. Hopefully before, if not by the end of the third quarter, certainly by the end of the year, we will have an exciting announcement on that last vacancy. I say that because once those anchor vacancies are addressed, there is an environment where retention rate remains high. Small shop attrition is kind of normal, but retention stays above 90%. Right now, I think our run rate for the year is right around 15% of NOI. I think that that could be tick lower if you put aside the major redevelopment I just spoke about. That could tick lower because tenant retention is the best thing for our business. We can grow rents. We do not have to put out new capital, and we can accelerate free cash flow growth. We just have not had an environment where you have not had a whole lot of anchor turnover, and that is the real cost of the business. Any type of tenant turnover, but the anchors certainly are the most arduous from a CapEx standpoint. Just in terms of your growth in your same store, you reported same store around 4% in the quarter, but you reaffirmed your your guidance, right? I mean talk about what keeps you from Yeah. So year to date, we're a little bit lower in the first quarter. I think year to date through the first half, I think we're closer to 3.3. Still trending, still have an opportunity to accelerate. I will say that I think that third quarter, we do have some expenses that we'll be undertaking. So it'll still be a little bit uneven, but with real acceleration in the fourth quarter to comfortably get to our guidance targets. Look, I think from a building block standpoint, the great thing about our business and many of our peers the same, is we've been able to continuously build in recurring escalators. It's something that we haven't been able to do in the past. Every lease that we get our hands on, we're able to put in these escalators, whether it's on the base rent side or on the expense side. They're both important because what that is doing is it's taking this business that used to be a 2% business to something closer to a 3%-4% business on a year in, year out basis. If that 3%-4% business can also be met with lower CapEx profiles than what we've had in the past, now we have an FFO income stream that's compelling relative to other property types. So I think that's what we haven't had in the previous cycles, that there is an opportunity for certainly the highest quality retail REITs to enjoy. Go ahead. No, I was just going to ask, over the years at the same time, have you seen tenants become more willing to pick up capital costs just to build off the questions from earlier? So this way, your capital efficiency is improving. Yeah. Yes and no. Grocers are great operating partners as it relates to capital contributions because they have a very long-term view, especially the private operators. Speaking specifically about the powerhouse in the southeast with Publix and H-E-B in Texas. They tend to put in a significant amount of their own capital, which makes you feel good, and it's also great because it helps our returns, or we have some capped contributions. Restaurants is very similar as it relates to if it's a new concept that's unproven, we're going to expect them to pay a heavy level of that contribution. We don't want to take on any undue risk. If it's a well-established restaurant, we'll certainly participate much more so. As it flows, Dennis, but I think the one thing that hasn't changed is junior anchor repositioning and remerchandising is expensive. The key for us is to make sure that we're partnering with the right junior anchors to where they can not only succeed through their initial lease term, but several options. The longer they survive, the lower that CapEx burden becomes, right? One of the analysis that's impossible to do in our business is comparing CapEx across format and box size. It's easy to come to the conclusion that anchors are more expensive. They are the moment that you're building them out. But the turnover in small shop tends to be higher. How long does an anchor have to make it versus how long a small shop tenant has to make it before those capital costs have some sort of break-even point or a cross? I would say in the next couple of years, we feel much more confident about our anchor lineup than we have in the past. All right, a couple of rapid-fire questions for you. Okay. The first one, if long-term rates stay higher for longer, which has the biggest impact on your sector: higher refinancing costs, lower transaction activity, or less new supply? The biggest impact on our sector? I guess sector earnings. Oh, it will be refinancing costs. Yeah. Number two, over the next three years, will third-party capital become a more important source of growth for public REITs than balance sheet capital? Yes or no? Choose one. Yes. Number three, for your sector, will 2027, next year, same store NOI growth be higher, same, or lower? The same. Okay. Thank you. Thanks.