InvenTrust Properties (NYSE:IVT) executives highlighted another year of above-trend operating growth and continued Sun Belt portfolio repositioning during the company’s fourth-quarter and full-year 2025 earnings call. Management pointed to strong same-property net operating income (NOI) gains, continued leasing momentum, and an “exceptionally strong” balance sheet as key supports for its 2026 outlook, which includes mid-single-digit core FFO growth and roughly $300 million of net investment activity.
2025 results: same-property NOI up 5.3%, FFO at the high end of guidance
President and CEO DJ Busch said 2025 was “an exceptional year,” with same-property NOI growth of 5.3%, marking a second straight year above 5% and a fifth consecutive year above 4%. Busch also said core FFO finished at the high end of the company’s guidance range, with core FFO of $1.89 per share cited as a 6.2% year-over-year increase.
For the fourth quarter, Phillips said same-property NOI was $44.3 million, up 3% year-over-year. He reported fourth-quarter Nareit FFO of $36.8 million, or $0.47 per diluted share, and fourth-quarter core FFO of $0.46 per diluted share.
Portfolio repositioning and acquisitions: redeploying from California to the Sun Belt
Busch said the company completed the sale of five California assets and redeployed capital into higher-growth Sun Belt markets. In total, InvenTrust acquired 10 properties in 2025, including two in the fourth quarter, for more than $460 million of gross acquisitions.
Chief Operating Officer Christy David said the company added two assets during the fourth quarter:
- Mesa Shores in Mesa, Arizona, described as a dual grocery-anchored center with Trader Joe’s and Sprouts Farmers Market.
- Daniel’s Marketplace in Fort Myers, Florida, anchored by Whole Foods.
Phillips said the two fourth-quarter acquisitions totaled $109 million and were funded with available liquidity and the assumption of approximately $30 million of secured property-level debt.
On the Q&A portion of the call, management reiterated that open-air retail—particularly grocery-anchored centers—remains a competitive acquisition market with active institutional and private capital. Busch said InvenTrust remains focused on discipline and selectivity, with return thresholds that fit its strategy. In discussing the acquisition market, Busch said the company has continued to find opportunities in areas including Phoenix and the Carolinas, as well as secondary Sun Belt markets that complement its footprint.
Leasing trends: spreads, occupancy, and tenant health
David described 2025 leasing as steady, with demand strongest in grocery, health and wellness, specialty food, and value-oriented concepts. She said foot traffic and retail sales across the portfolio have remained durable, and the company’s watchlist of at-risk tenants is minimal.
David also said properties acquired in 2024 and 2025 have produced average new and renewal lease spreads of approximately 21%, which she said reflects InvenTrust’s ability to identify below-market opportunities and drive growth through leasing and asset management.
Key leasing metrics for 2025 provided on the call included:
- New leases executed achieved a 30.9% spread.
- Renewals averaged a 10.9% spread.
- Blended comparable leasing spreads were 13.3%.
- Small shop leased occupancy reached 94%, which management called an all-time high since the company’s 2021 listing.
- Annual rent escalators on new and renewal small shop leases averaged over 3.1%.
- Total leased occupancy at year-end was 96.7%.
- Retention was 85%, which management said reflected the planned departure of a single anchor at Gateway Market Center in St. Petersburg, Florida.
David noted that excluding that anchor space, retention would have been around 90%, and occupancy would have been flat sequentially. Busch said the Gateway project is in the early stages of a “transformational redevelopment,” involving relocation and remodeling of a high-quality Southeastern grocer and a longer stabilization period.
Balance sheet, dividend increase, and 2026 guidance
Phillips said InvenTrust ended the year with total liquidity of $480 million, including $35 million in cash and $445 million available under its revolving credit facility. He said the weighted average interest rate was 4%, the net leverage ratio was 26.3%, and net debt to adjusted EBITDA was 4.5x on a trailing 12-month basis.
The company also announced a dividend increase. Phillips said the board approved a 5% increase to the annual cash dividend for 2026, bringing the annualized rate to $1 per share, to be reflected in the April dividend payment.
For 2026, Phillips guided to same-property NOI growth of 3.25% to 4.25%, including an assumed bad debt reserve impact of approximately 30 to 70 basis points. The company’s 2026 FFO outlook included:
- Nareit FFO guidance of $1.97 to $2.03 per share.
- Core FFO guidance of $1.91 to $1.95 per share.
Phillips also discussed an interest-rate headwind from the reset of term loan swaps. He said the swaps do not reset until September, and the impact would be approximately a 1 to 1.5 cent headwind going into 2026.
Acquisitions outlook: $300 million plan, financing approach, and disposition expectations
Management said the 2026 plan includes approximately $300 million of net acquisition activity. In response to analyst questions, Phillips said the company expects to use its balance sheet capacity, potentially drawing more on its line of credit than in the past and seeking more permanent financing via private placements or bank debt. Phillips said private placement pricing depends on tenor and was “anywhere between 125–150 basis point spreads.”
On leverage, Phillips said funding the acquisition plan could put the company around 5x net debt to adjusted EBITDA on a quarterly basis, and management would be comfortable not going above 5.5x on a quarterly basis at any time.
Busch said nearly half of the $300 million target has already been awarded or is under contract, with expectations to close early in the year. He also discussed dispositions, noting that 2025 was unusual due to the California sales and that the company still expects to close on its remaining California asset in 2026, subject to administrative and environmental work. Beyond that, Busch said dispositions would be used opportunistically as acquisition opportunities are identified.
About InvenTrust Properties (NYSE:IVT)
InvenTrust Properties Corp is a self?managed real estate investment trust specializing in suburban and urban retail real estate. Headquartered in Downers Grove, Illinois, the company focuses on the acquisition, leasing and management of open?air shopping centers that serve everyday consumer needs.
The company’s portfolio is concentrated in neighborhood and community retail assets anchored by grocery stores, pharmacies and national service tenants. InvenTrust engages in active leasing strategies, property management services and selective development and redevelopment initiatives designed to enhance long?term cash flow and tenant mix.
InvenTrust Properties was created in 2019 through the spin?off of its predecessor, Inland Real Estate Investment Corp, and adopted its current name upon separation.
