Dori Kesten • Wells Fargo Securities

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CFO Michael Phillips explained that the implied deceleration in NOI guidance is due to three main factors: the full-year bad debt reserve of 75-100 basis points (compared to zero in Q1), higher percentage rent from grocers in Q1, and lower expenses in Q1 that will normalize. CEO Daniel Busch added that while leasing activity is strong, the company is being cautious about potential bad debt in the back half of the year. Regarding anchor leasing, Busch stated that it's a case-by-case decision, and they might accept a lower spread for a key tenant that significantly improves a center's merchandise mix.

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President and CEO Daniel Busch explained that the $100 million net acquisition figure signals their intent to be a net acquirer, with the gross number potentially being much higher depending on the success of dispositions in California. He noted the 94% retention rate from 2024 is likely higher than what's expected for 2025 due to known exits like Party City, with 90% being a more typical target. Chief Operating Officer Christy David added that leasing spreads in 2025 should remain similar to the run rate seen in 2024.

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President and CEO DJ Busch indicated that for 2025, InvenTrust expects a similar same-property NOI growth cadence to what was seen in the last two years. He confirmed that 75 basis points is the typical starting benchmark for bad debt. Regarding noncore assets, Busch explained the focus is on methodically recycling capital from properties outside the Sun Belt when opportunities arise, but they are not actively marketing them.

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Conor Flynn, CEO, explained that a significant and rapid drop in the stock price created a compelling opportunity. With strong free cash flow and disposition proceeds, the FFO yield and discount to NAV made the buyback the most attractive use of capital at that moment. He emphasized the team's quick action to capitalize on the market dislocation, especially after having issued equity at a much higher price months earlier.

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CFO Glenn Cohen stated that the portfolios are now fully blended and viewed as one company, with growth expected to be in a very similar range across both former portfolios. CEO Conor Flynn added that Kimco still sees significant upside to harvest from the former RPT assets, particularly in small shop leasing and anchor conversions, highlighting a recent BJ's deal in Delray, Florida.

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COO David Jamieson emphasized a disciplined approach, stating that activations depend on market fundamentals and costs. He outlined the options as self-development, joint ventures, ground leases, or selling the entitlements. CFO Glenn Cohen provided context, noting 3,500 units are already operational and the company has historically activated one to two projects per year.

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COO David Jamieson emphasized maintaining strict discipline and monitoring market fundamentals, with some opportunities being considered for 2025. He noted that options like ground leases or selling entitlements are also on the table. CFO Glenn Cohen added that 3,500 units are already operational and the company has historically activated 1-2 projects per year.

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CFO Heath Fear stated that the specific fee structure for the GIC JVs could not be disclosed but confirmed they are at 'market' rates. CEO John Kite expressed confidence that signing small shop leases with rent bumps north of 3% remains a 'very comfortable' assumption for the company going forward.

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CFO Heath Fear confirmed the asset held for sale is expected to hit the market imminently and that they are confident of a closing within the next 12 months. On lease terms, CEO John Kite and COO Thomas McGowan stated emphatically that they are not making concessions to achieve higher rent growth. McGowan elaborated that the leasing team remains focused on securing favorable terms on all fronts, including exclusives and CAM language, to ensure long-term asset flexibility and value.

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CEO Jeff Donnelly explained that portfolio footprint drives demand trends, with leisure weakness concentrated in Florida's 'popular priced' assets. He noted they don't budget by segment for a precise breakdown. President & COO Justin Leonard described the transaction market as quiet and down ~75% from pre-COVID levels, with a significant bid-ask spread remaining. Leonard also confirmed that the 2025 outlook anticipates a slowing of expense growth, aided by new business intelligence tools enhancing productivity.

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CEO Jeff Donnelly confirmed the company aims for capital spending to remain in the 7-9% of revenue range and that the project pipeline is under constant review. COO Justin Leonard described labor costs as 'fluid,' with pressure cooling in resort markets but rising 3-5% in unionized urban markets. Jeff Donnelly noted a slight negative bias for the 2025 convention calendar, citing weakness in Chicago and D.C., but added they are leaning into group business at smaller assets to compensate.

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Jon Bortz, Chairman and CEO, stated that Pebblebrook anticipates out-of-room spend will grow at a faster rate than RevPAR in 2025. This growth is expected across various non-room revenue streams, including food and beverage, parking, resort fees, and spa services. Bortz noted that clients are demonstrating healthy spending habits, often exceeding their initial contractual commitments, which supports this optimistic outlook.

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Jon Bortz, Chairman and CEO, stated that exceeding the original EBITDA forecast is a 'reasonable scenario' for next year, contingent on meeting the reopening timeline. This optimism is driven by a significant increase in group bookings and continued growth in the property's club membership. Bortz also detailed numerous storm-resilience enhancements, including relocating critical systems to upper floors, installing hurricane-proof windows and sliders, and implementing new permanent and temporary protections to mitigate water intrusion.

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President and CEO Leslie D. Hale stated that urban leisure is expected to outperform broader leisure, driven by a strong calendar of special events in key markets. Regarding the San Diego lease, she reported that discussions are active and progressing favorably, with an update anticipated later in the year.

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President and CEO Leslie D. Hale focused on organic growth drivers for 2025, such as outperforming urban markets and ramping conversions. EVP and CFO Sean Mahoney added that from a capital allocation perspective, the company has the balance sheet flexibility for acquisitions if market conditions improve, but share repurchases remain an attractive option.

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CFO Liz Perkins clarified that normalizing for a $3.2 million year-over-year fixed cost hurdle would bring total expense growth below 4%. CEO Justin Knight added that 7-10% of the portfolio fits the profile of assets being sold—smaller hotels with significant CapEx needs—and that the primary buyers have been local owner-operators, which allows for competitive pricing on individual assets.

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CFO Liz Perkins noted the rate gap is shrinking, with year-to-date weekday ADR up approximately 6% versus 2019, while weekend ADR is up about 18%. Perkins also confirmed positive booking trends for November and December, projecting RevPAR growth for both months. CEO Justin Knight added that 2025 expense growth trends are likely to continue from 2024, absent major environmental changes.

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CEO Marcel Verbaas confirmed a modest increase in potential acquisition opportunities but stressed a patient approach, weighing deals against other capital uses like buybacks. CFO Atish Shah stated the term loan is for general corporate purposes. COO Barry Bloom noted W Nashville's 2024 was a transitional year, with a successful strategy shift toward group business that is expected to drive improved performance in 2025.

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Chair and CEO Marcel Verbaas explained that reaching the stabilized EBITDA target will take a few years. He expressed encouragement about the group revenue pace for Q2 through Q4 2025, which is already comparable to 2019 levels, driven by significantly higher booking rates. Verbaas acknowledged that the ramp-up would be slower in the first couple of quarters of 2025 before gaining momentum as meeting planners see the finished product.

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Bryan Giglia, Chief Executive Officer, projected that the Andaz Miami Beach's EBITDA in 2026 should "easily double" the $8 million to $9 million forecast for 2025. He added that the property is expected to reach stabilization with EBITDA in the high $20 million range by 2027.

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CEO Bryan Giglia responded that the stabilized yield expectation remains within the 8% to 9% range, though likely toward the lower end due to the higher investment. He also confirmed that the double-digit 2025 group revenue pace deliberately excludes the Andaz Miami Beach to avoid distorting the data.

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Chairman and CEO Colin Reed responded that future expansions are possible and would be driven by demand, highlighting strong forward bookings and the potential for expansion at the Hill Country property. President and CEO of Opry Entertainment Group Jennifer Hutcheson and Colin Reed both noted that an expansion at Gaylord Rockies is becoming a more near-term possibility due to the success of recent investments at that property.

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EVP & COO Patrick Chaffin noted strong booking momentum but declined to give a specific 2025 pace, highlighting that year-to-date revenue on the books is a record. CEO Colin Reed and Executive Jennifer Hutcheson added that the Entertainment segment will have minimal disruption next year and should see decent growth, while hotel renovations will create significant value in 2026 and beyond. The recent dividend increase was cited as a sign of confidence.

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CFO Sean Dell'Orto confirmed the renovation disruptions largely lap each other with minimal net impact on 2025 RevPAR. He explained that while union wage growth is in the 5-6% range, it is offset by lower growth in non-union wages and other costs like insurance and utilities, bringing the overall expense growth assumption to the 3-3.5% range.

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Chairman and CEO Thomas Baltimore indicated a 'greater than a high probability' that the Royal Palm project will proceed, with design and permitting underway. He compared the project's potential to the successful renovations at Casa Marina and Bonnet Creek. Regarding cancellations in Hawaii, he explained that the on-site leadership team has the discretion to offer solutions like discounts or rescheduling, while stressing the hotel remains open.

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EVP & CFO Daniel Guglielmone confirmed the balance sheet is well-positioned with significant flexibility and capacity. EVP & CIO Jan Sweetnam added that they are extremely busy underwriting acquisitions due to more product on the market, though competition for larger assets has also increased.

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CEO Donald Wood declined to provide a specific NAV target but explained that the market undervalues the significant, by-right development potential embedded in their major mixed-use properties, like the 'Big 4'. He argued that the extensive entitlement work already completed creates substantial real estate value that, while not fully reflected in the public stock price, would be recognized in a private market asset sale.

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President and COO Brian Finnegan affirmed that this is a fair expectation. He cited record new and renewal spreads last year and a favorable upcoming expiry profile, with anchors expiring at rents well below where new leases are being signed, giving the company confidence in its ability to continue delivering strong rent growth.

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President & COO Brian Finnegan affirmed his confidence in maintaining strong rent growth. He highlighted the significant positive mark-to-market opportunity, with expiring anchor leases at just over $10 per square foot compared to record new anchor leases signed at over $15 per square foot, providing clear visibility for continued strong spreads.

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COO Brian Finnegan confirmed that the company is well-positioned to continue driving strong spreads. He highlighted a track record of over three years with renewal growth exceeding 10%, driven by the portfolio's low rent basis, transformation, strong tenant mix, and high traffic. This provides good visibility for continued rent growth in 2025 and beyond.

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President & COO Brian Finnegan confirmed this outlook, highlighting the team's consistent ability to capitalize on the portfolio's low rent basis, with renewal growth exceeding 10% for three consecutive years. He expressed confidence in continuing to drive rents to market levels, supported by the portfolio's transformation, strong traffic, and high-quality tenant demand.

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CFO Michael Mas clarified that the 3.6% midpoint is slightly above their prior outlook. He explained that the 80-basis-point range is consistent with historical practices, where initial guidance has varied between 50 and 100 basis points. He identified the timing and volume of tenant move-outs and credit losses as the primary variables that will determine the final outcome within that range.

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CEO David Lukes identified three main bidder categories: private family offices, private equity funds, and institutional investors, noting the mix has been consistent. He also confirmed the mid-7% cap rate on assets under contract. CFO Conor Fennerty explained that higher recent CapEx is a function of a small asset base and increased leasing volume, but reiterated high confidence in the long-term sub-10% of NOI target.

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CEO David Lukes stated that disposition pricing at an approximate 7% cap rate has been slightly stronger than anticipated. He noted that while the current $1 billion pipeline should see significant closings in the coming months, a substantial increase is unlikely before the spin. He also explained that dispositions are being prioritized over acquisitions due to strong demand, with a couple of convenience acquisitions expected per quarter pre-spin. CFO Conor Fennerty added that quarterly acquisitions would likely be in the $25 million to $50 million range.

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