The Room(s) Where It Happened

Research evidence excerpt

The Room(s) Where It Happened

REAL Key Takeaways (by Sector): Strip Centers

InvenTrust Properties (IVT, Buy, $32 PT):

■ Retail leasing demand still sounds healthy. Management described strong interest from national and regional retailers comingESTATE out of ICSC. Any weak spots appear mostly tied to marginal local operators rather than a broad demand problem.

■ Pricing power is present, but they are staying disciplined. They see room to push rents, but do not want to create future

fallout by taking rents too far above sustainable levels. Retention remains healthy, and the anchor noise seems more isolated

than systemic. Tenant cost ratios are in line indicating there could still be room to push rents.

■ Capital allocation and payout flexibility remain favorable. The balance sheet appears set up to support growth, and theINDUSTRY payout ratio allows dividend growth over time. New construction economics still hard to justify without much better rents.

Regency Centers (REG, Buy, $79 PT):

■ REG continues to emphasize quality and consistency over pure scale. Management was clear that scale matters, but onlyREPORT if it is paired with high portfolio quality and strong neighborhoods. The strategy remains centered on owning well-located

centers rather than stretching across different formats.

■ Technology is more foundational than promotional. Spending is directed toward data architecture, process standardization,

and systems modernization. AI has limited value without the right information and workflow infrastructure underneath it.

Given their scale, REG has the ability to invest in strong talent and experiment with technology capabilities due to the quality

of data they have amassed.

■ Development remains the primary external growth lever.