Thank you for standing by and welcome to Inventrust's fourth quarter and full year 2025 earnings conference call. My name is Becky and I will be your conference call operator today. 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. All lines will be muted throughout the presentation portion of the call with a chance for Q&A at the end. If you did wish to ask a question at any time, please press start followed by one on your telephone keypads. I would now like to turn the call over to Mr. Dan Lombardo, Vice President of Investor Relations. Please go ahead, sir.

Thank you, Operator. Good morning, everyone, and thank you for joining us today. On the call from the Inventrust team is DJ Bush, President and Chief Executive Officer, Mike Phillips, Chief Financial Officer, Christy David, Chief Operating Officer, and Dave Heimberger, Chief Investment Officer. Following the team's prepared remarks, the lines will be open for 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 uncertainty. 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. 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. With that, I'll turn the call over to DJ.

Thanks, Dan, and good morning, everyone. We appreciate you joining us today. 2025 was an exceptional year for Inventrust, marked by strong operating performance and discipline execution. Same property NOI grew 5.3%, marking our second straight year above 5% and our fifth consecutive year of growth exceeding 4%. This performance speaks to the quality of our portfolio, the strength of our platform, and the consistent execution of the Inventrust team. Narrate FFO finished the year at the high end of our guidance range of $1.89 per share, representing 6.2% growth year-over-year. Our balance sheet remains well-positioned, with sector-low net debt to adjusted EBITDA and ample liquidity to support our expansion objectives. From a strategic standpoint, the year was equally transformative. We completed the successful sale of five California assets and efficiently redeployed that capital into higher-growth Sunbelt markets. In total, we acquired 10 properties, including two in the fourth quarter, representing more than $460 million of gross acquisitions during the year. These investments deepen our geographic concentration and grocery exposure in areas where we see long-term population expansion, limited new supply, and the ability to leverage our operating platform. Christy will walk through our most recent acquisitions in more detail shortly. Institutional and private capital remains active in the open-air retail space, particularly in grocery-anchored assets. While that interest validates positive trends in our sector, it also reinforces the importance of discipline. We remain selective in our acquisition approach, focusing on opportunities that meet our return thresholds, enhance our operational footprint, and offer clear avenues for value creation through leasing and asset management. Our objective is to grow over time in a thoughtful and pruned manner. Beyond acquisitions, we continue to invest internally through targeted redevelopment initiatives designed to maintain the overall quality and competitiveness of our portfolio while driving incremental NOI. These projects focus on re-merchandising, repositioning anchor space, and selectively adding out parcels at existing centers. While redevelopment is not intended to be a focal point of our business model, we expect these efforts to contribute approximately 50 to 100 basis points of incremental NOI growth annually over the next couple years. The retail landscape continued to demonstrate notable resilience in 2025. While store closures increased year-over-year, new retail construction stayed at multi-decade lows as development economics remained challenged, creating a constructive backdrop for owners of high-quality, well-located centers. At the same time, retailers are operating with better information as it relates to real estate decision-making, applying clearer return thresholds, and benefiting from more flexible supply chains. These factors favor landlords who can provide the right space in the right trade areas, a dynamic that aligns well with our focus and footprint. According to CoStar, top-performing retail markets in 2025 included Charlotte, Tampa, Orlando, and Dallas. Charlotte, where we acquired two properties during the year, stands out for robust population growth, job creation, and suburban development, ranking first among major U.S. markets for retail rent increases. We are seeing similar trends in Phoenix, another area where we continue to expand our presence. Our strong performance in 2025 positions us well heading into 2026. That outlook is reflected in our guidance, with core FFO per share growth expected to be in the mid-single-digit range and net investment activity of approximately $300 million. As always, our strategy remains simple. continue to expand our Sunbelt-focused portfolio, and execute at the property level to drive sustainable cash flow growth. With that, I'll turn it over to Mike to walk through the financials in more detail.

Thanks, DJ, and good morning, everyone. For the full year, same property NOI totaled $171 million, representing growth of 5.3%, driven primarily by embedded rent escalations, which contributed approximately 160 basis points. Occupancy gains added about 80 basis points, while positive leasing spreads contributed roughly 90 basis points. Redevelopment activity provided an additional 70 basis points, with percentage and ancillary rents adding around 20 basis points, and net expense reimbursements contributing 130 basis points. These drivers were partially offset by a 20 basis point headwind from bad debt reserves. Same property in OI for the fourth quarter was $44.3 million, up 3% year-over-year. For the full year, NAIRED FFO totaled $147.8 million, or $1.89 per diluted share, reflecting an increase of 6.2% over 2024. Core FFO rose 5.8% to $1.83 per share year-over-year. FFO growth was primarily driven by same property NOI and net acquisition activity, partially offset by the impact of a higher weighted average share count. In the fourth quarter, NAIRED FFO came in at $36.8 million, or $0.47 per diluted share, representing a 4.4% increase compared to the fourth quarter of 2024. Core FFO increased 7% to $0.46 per diluted share for the three months ending December 31st. Our balance sheet remains exceptionally strong, providing Invent Trust with flexibility and liquidity to execute our long-term growth strategy. At year-end, total liquidity stood at $480 million, including $35 million in cash and $445 million available under our revolving credit facility. Our weighted average interest rate is 4%, and our net leverage ratio is 26.3%. That debt to adjusted EBITDA remained at a sector low 4.5 times on a trillion 12-month basis. During the quarter, we completed two acquisitions totaling $109 million, funded with our available liquidity and the assumption of approximately $30 million of secured property-level debt. The Board of Directors approved a 5% increase to Invent Trust's annual cash dividend for 2026. the new annualized rate of $1 per share will be reflected in the April dividend payment. Turning to 2026 guidance, we expect full year same property NOI growth in a range of 3.25 to 4.25%. This outlook incorporates a bad debt reserve of approximately 30 to 70 basis points. For knee rate FFO, we are providing guidance in a range of $1.97 to $2.03 per share, representing a 5.8% increase at the midpoint compared to 2025. Our core FFO guidance is $1.91 to $1.95 per share, reflecting a 5.5% increase at the midpoint year-over-year. As discussed previously, the interest rate on our $200 million term loan swaps reset from approximately 2.7% to 4.5%, which will create a modest headwind to FFO for the last three months of the year. And with that, I'll turn the call over to Christy to discuss our portfolio activity.

Thanks, Mike. The retail landscape in 2025 was marked by steady execution and improving operating momentum. Our leasing teams performed well, converting renewals and attractive spreads and filling small shop vacancies with high-quality operators that enhance tenant mix, support the long-term performance of our centers. Leasing activity remained positive across the portfolio with grocery, health and wellness, specialty food, and value-oriented concepts showing the strongest demand. Throughout InventTrust's asset base, foot traffic and retail sales have remained durable, while our watch list of at-risk tenants is minimal. One area where execution has been particularly evident is in the performance of our acquisitions. For properties acquired in 2024 and 2025, new and renewal lease spreads have averaged approximately 21%, demonstrating our ability to identify the low market opportunities. This showcases our leasing team's ability to unlock growth even in well-occupied centers. From a tenant health perspective, the story remains resilient. Retail sales are up and announced store openings continue to exceed closures, signaling sustained confidence in physical retail. While turnover is a normal part of the strip center business, our tenant rosters are as strong as they have been at any point. Across our markets, retailers are increasingly focused on optimizing store fleets rather than pulling back, with new concepts actively pursuing space in well-located centers. The strength is evident in our leasing results, with several key metrics reaching their highest level since our listing in 2021. New leases executed in 2025 achieved a 30.9% spread, while renewals averaged 10.9%, resulting in blended comparable leasing spreads of 13.3%. Small shop lease occupancy also reached a new all-time high of 94% and annual rent escalators on new and renewal small shop leases executed in 2025 averaged over 3.1%, the highest level since our listing. At year end, total lease occupancy was 96.7% and our retention rate was 85%, reflecting the planned departure of a single anchor at our Gateway Market Center property in St. Petersburg, Florida, which is currently in the early stages of a transformational redevelopment. Excluding that space, our retention rate would be consistent with previous quarters at approximately 90 percent, and our lease occupancy rate would have been flat sequentially. Turning to acquisitions, we added two high-quality assets to the portfolio during the quarter. The first is Mesa Shores in Mesa, Arizona, a rare dual-grocery anchored center by Trader Joe's and Sprout's Farmers Market. We also expanded our Florida presence with the acquisition of Daniel's Marketplace in Fort Myers, anchored by Whole Foods. Both assets align with our Sunbelt necessity-based strategy and feature tenant mixes weighted toward national and regional brands, with upside through small shop leasing and merchandising. As we head into 2026, operating fundamentals for shopping center REITs remain solid and supportive of our platform.

The Inventrust portfolio is well-positioned for tenants focused on essential uses and services, omni-channel fulfillment, and seeking benefit from long-term demographic growth across the Sunbelt. operator we are now ready to open the lines to take questions thank you if you wish to ask a question please press start followed by one on your telephone keypads now if you feel your question has been answered or for any reason you would like to remove yourself from the queue please press start followed by two when preparing to ask a question please ensure your device is unmuted locally our first question comes from andrew real from bank of america your line is now open please go ahead.

Good morning, everyone. Thanks for taking my questions. I guess first, I was just wondering if you could maybe talk a little bit more about your funding sources for the $300 million of net acquisition activity. I mean, it sounds like you have, you know, some capacity on the balance sheet, might lean into that a bit. So I was wondering kind of what type of debt would you look to issue? What type of pricing would you expect? And then just with with the greater interest expense assumption in the guide, what portion of that is from the swaths rolling over and what portion of that would be from incremental debt?

Yeah, Andrew, this is Mike. I can start. So, yeah, you hit on the head. We have money room on the balance. You kind of have a plan going into the $4 million positions. What you can see from us this year is use the market or?

And then maybe just to follow up on that, could you just help us think about, you know, if you have a new leveraged target range, and I guess just, you know, how high you'd be willing to take up that leverage in aggregate.

Yeah, so the good thing is we can kind of plunge through the balance sheet.

Yeah, maybe just to add on that, Andrew, I think, you know, when we think about the balance sheet, obviously, you know, being one of the lower leveraged companies, we do have the ability wall protection.

Thank you. Our next question comes from Linda Sai from Jefferies. Your line is not open. Please go ahead.

Hi, good morning. On Amazon Go and Fresh Closing Stores, does that open any opportunities to open more Whole Foods, increase that 2% as a percentage of ABR in your portfolio?

Well, we don't actually have any of the Amazon Go's or any Amazon brick-and-mortar, I guess, in our portfolio. We obviously did a site analysis as it relates to our portfolio, specifically as it relates to our Whole food dislocations to make sure that we weren't at any type of risk if and when they decide to start transitioning some of those boxes. The good news is we're very well protected with showing well that they can, but they're...

And then, one of your larger peers discussed recently seeing lower CapEx requirements in their portfolio, and you've highlighted this characteristics in your own portfolio previously.

Are you seeing 26 is largely a renewal business again and you know the percentage of capex 20% NOI continue to come down yeah so good question I think I think that that's a fair statement I think we've talked to you Linda and many others about vacancy we see that as a very about where our credit quality your line is now

open please go ahead thanks for taking the question I wanted to ask about the 300 million net Acquisitions Guide. Curious if you could speak to the acquisition pipeline as it stands today in terms of volume and pricing. Curious how much of the acquisition volume within guidance is either under contract or deals where you have some certainty of closing as opposed to more speculative acquisitions? Yeah, no, good question, Cooper.

Thanks. And so what I would say is as we do every year, we come into the year, we look at our pipeline, we evaluate the current opportunity set, and we try to provide a guidepost or what we're trying to accomplish this year. I think I think with a $300 million net investment could be what we really are trying to have really good business.

As we look into the disposition cadence, just curious how we should think about dispositions this year within the context of your last property in California and then potentially recycling out of some other lower growth assets?

Yeah, that's a good question. So last year was unique, right, with the California opportunity. That was something where we saw...

From Michael Gorman from BTIG. If the line is not open, please go ahead.

Growth and then maybe on the expense side, are there any same-store expense headwinds just from some of the weather that we saw go through the southeast earlier this year?

Yeah, I'll start with that part.

That's helpful. And then maybe switching back to the transaction side, for the Fort Myers acquisition, I'm curious, it's an interesting asset, obviously it's grocery anchored, but then a lot of very recognizable high-end discretionary brands so i'm just wondering maybe how that impacted the competitive set for an asset like that and then also how the assumable financing played a role in how competitive it got for an asset like that maybe how that translates into other opportunities that you're seeing where it's assumable financing versus not and where you feel in the transactions market and like uh you know we're trying to grow thanks for the time thank you our next question

It comes from Hong Zhang from J.P. Morgan. Your line is now open. Please go ahead.

Yeah, hey, I guess if I look at your redevelopment pipeline, the majority of your projects are expected to complete in the first half of the year. How should we think about your activating future projects in the pipeline in the near term, especially as it relates to Gateway Market Center, which I think is a chunkier asset?

Yeah, so like I mentioned in the prepared remarks, you know, you know, the redevelopment pipeline is interesting because, you know, it's really just reinvesting in our centers and improving, like I said, some of that will be at HLM.

The line is now open. Please go ahead.

Good morning. Most peers have highlighted a very competitive market. Do you think pricing has shifted? The level of competitiveness largely remained consistent.

Right. Good morning, Paulina. I would say it feels consistent, and it really depends on, you know, what comes to market. And I think last year opportunities that we were able to run down, opportunities with you to be there, perhaps prices should benefit us.

And my other question is, I feel like we have gotten used to and raising guidance, given the background has been so positive. Your high end of same property and why?

Well, company, any given. from Leidenberg.

The line is now open. Please go ahead.

I'm used to it by now. I had a question, DJ, more philosophical. I mean, look, by the way, so I don't know if you think back on your time when you started here that you would have gotten the company in the shape that's in right now. Kudos. As you think about your market penetration and your market exposures, how do you think about that? Do you think about, you know, market size in terms of ABR or in terms of number of properties or percentage of NOI or ABR, and where do you see smaller markets like Phoenix, which I guess you just bought an asset in Mesa, you know, where is that going to grow, just like what you've done with Charleston and some of the other newer markets in your portfolio?

Hey Flores, it's a great question and thank you for those comments. You know, let me start there. I think when we started, when I started here in 2019, and more importantly, when we listed the company in 2021, the company was in, I'd be lying by saying I didn't think it to where it is today, and I'm more excited for the environment.

I can add a follow-up, by the way, I like your disclosure on your splitting out your anchor and your small shop tenants, your lease. And it gets me to think that your leasing spreads on your shop tenants are equal to your anchor tenants, despite the fact you're probably getting significantly higher fixed rent bumps during the period of the lease as well, highlighting the attractiveness of this particular segment. As you think about unanchored, I know you talked a lot, a little bit about acquisitions with grocery anchors. There's a peer of yours that's pursuing this unanchored strategy. I think you have a couple of those kinds of centers in your portfolio. What are your thoughts on that and maybe leading into your shop heavy assets in your existing markets?

Of course, it's a great question and it's always really interesting that you're not

pursuing an unanchored unless it's a shadow anchorage.

No further questions, so I'll hand back over to DJ Bush for closing remarks.

Thank you everyone for your participation.

That concludes today's call. Thank you for joining us. You may now disconnect your lines.