NEW YORK, Nov. 1, 2021 /PRNewswire/ -- Brixmor
Property Group Inc. (NYSE: BRX) ("Brixmor" or the "Company")
announced today its operating results for the three and nine months
ended September 30, 2021. For
the three months ended September 30,
2021 and 2020, net income was $0.15 per diluted share and $0.09 per diluted share, respectively.
Key highlights for the three months ended September 30, 2021 include:
- Executed 1.7 million square feet of new and renewal leases,
with rent spreads on comparable space of 12.3%, including 0.7
million square feet of new leases, with rent spreads on comparable
space of 26.3%
- Sequentially increased total leased occupancy to 91.5%, anchor
leased occupancy to 94.2% and small shop leased occupancy to
85.7%
-
- Leased to billed occupancy spread totaled 330 basis points
- Total signed but not yet commenced lease population represented
2.4 million square feet and $43.5
million of annualized base rent
- Reported an increase in same property NOI of 14.5%
- Reported NAREIT FFO of $115.8
million, or $0.39 per diluted
share
-
- NAREIT FFO included items that impact FFO comparability,
including a loss on extinguishment of debt, net, as previously
announced, litigation and other non-routine legal expenses, and
transaction expenses of ($27.4)
million, or ($0.09) per
diluted share
- Stabilized $52.5 million of
reinvestment projects at an average incremental NOI yield of 10%,
with the in process reinvestment pipeline now totaling $396.3 million at an expected average incremental
NOI yield of 9%
- Completed $25.5 million of
dispositions
- Issued $500.0 million of 2.500%
Senior Notes due 2031 and redeemed $500.0
million of 3.250% Senior Notes due 2023
- Increased quarterly dividend by 12% to $0.24 per common share, which represents an
annualized yield of approximately 4.1% as of October 29, 2021
Subsequent events:
- Acquired Pawleys Island Plaza, in the Georgetown, SC MSA, for $26.3 million, with an additional $250.0 - $300.0
million of acquisitions currently under negotiation
- Ranked first in its peer group and earned an "A" rating in
GRESB's 2021 Public Disclosure Score, which measures material
sustainability disclosures of listed property companies and REITs
globally
- Updated previously provided NAREIT FFO per diluted share
expectations for 2021 to $1.72 -
$1.75 from $1.70 - $1.76 and
same property NOI growth expectations for 2021 to 7.5% - 8.5% from
4.5% - 6.0%, which incorporates the strong results for the three
months ended September 30, 2021, as
well as the previously announced $0.09 per diluted share loss on extinguishment of
debt, which was not included in prior guidance
"Brixmor continues to deliver as the value add leader in the
shopping center space, with robust leasing volumes, attractive
spreads, accretive redevelopments, record rents and growing cash
flows," commented James Taylor, CEO
and President. "Importantly, these very same results, as well as
our growing reinvestment pipeline, set us up for continued
outperformance for several quarters to come."
COVID-19 UPDATE (as of October
26, 2021)
- For the three month ended September 30,
2021, 97% of billed based rents were collected and including
rent deferrals, abatements and retro billing adjustments, total
addressed billed base rent was 98%.
- A summary of trends in billed base rent collected, rent
deferrals, abatements and retro billing adjustments and total
addressed billed base rent follows:
|
|
Percent of 2Q20,
3Q20 and 4Q20
Billed Base Rent
Collected
|
Percent of 1Q21
Billed Base Rent
Collected
|
Percent of 2Q21
Billed Base Rent
Collected
|
Percent of 3Q21
Billed Base Rent
Collected
|
Essential
tenants
|
|
99%
|
99%
|
99%
|
99%
|
Hybrid
tenants
|
|
93%
|
95%
|
96%
|
97%
|
Other retail /
services
|
|
89%
|
93%
|
96%
|
96%
|
Total
|
|
94%
|
96%
|
97%
|
97%
|
Rent deferrals,
abatements and retro billing adjustments
|
|
4%
|
2%
|
1%
|
1%
|
Total addressed
billed base rent
|
|
98%
|
98%
|
98%
|
98%
|
FINANCIAL HIGHLIGHTS
Net Income
- For the three months ended September 30,
2021 and 2020, net income was $46.1
million, or $0.15 per diluted
share, and $27.9 million, or
$0.09 per diluted share,
respectively.
- For the nine months ended September 30,
2021 and 2020, net income was $188.9
million, or $0.63 per diluted
share, and $96.8 million, or
$0.32 per diluted share,
respectively.
NAREIT FFO
- For the three months ended September 30,
2021 and 2020, NAREIT FFO was $115.8
million, or $0.39 per diluted
share, and $106.6 million, or
$0.36 per diluted share,
respectively. Results for the three months ended September 30, 2021 and 2020 include items that
impact FFO comparability, including a loss on extinguishment of
debt, net, litigation and other non-routine legal expenses and
transaction expenses of ($27.4)
million, or ($0.09) per
diluted share, and ($5.0) million, or
($0.02) per diluted share,
respectively.
- For the nine months ended September 30,
2021 and 2020, NAREIT FFO was $385.0
million, or $1.29 per diluted
share, and $338.1 million, or
$1.14 per diluted share,
respectively. Results for the nine months ended September 30, 2021 and 2020 include items that
impact FFO comparability, including a loss on extinguishment of
debt, net, litigation and other non-routine legal expenses and
transaction expenses of ($31.0)
million, or ($0.10) per
diluted share, and ($18.4) million,
or ($0.06) per diluted share,
respectively.
Same Property NOI Performance
- For the three months ended September 30,
2021, the Company reported an increase in same property NOI
of 14.5% versus the comparable 2020 period.
- For the nine months ended September 30,
2021, the Company reported an increase in same property NOI
of 8.6% versus the comparable 2020 period.
Dividend
- The Company's Board of Directors declared a quarterly cash
dividend of $0.24 per common share
(equivalent to $0.96 per annum) for
the fourth quarter of 2021, which represents a 12% increase.
- The dividend is payable on January 18,
2022 to stockholders of record on January 5, 2022, representing an ex-dividend date
of January 4, 2022.
PORTFOLIO AND INVESTMENT ACTIVITY
Value Enhancing Reinvestment Opportunities
- During the three months ended September
30, 2021, the Company stabilized eleven value enhancing
reinvestment projects with a total aggregate net cost of
approximately $52.5 million at an
average incremental NOI yield of 10% and added four new
reinvestment projects to its in process pipeline. Projects added
include two anchor space repositioning projects and two outparcel
development projects, with a total aggregate net estimated cost of
approximately $5.7 million at an
expected average incremental NOI yield of 9%.
- At September 30, 2021, the value
enhancing reinvestment in process pipeline was comprised of 49
projects with an aggregate net estimated cost of approximately
$396.3 million at an expected average
incremental NOI yield of 9%. The in process pipeline includes 16
anchor space repositioning projects with an aggregate net estimated
cost of approximately $75.5 million
at an expected incremental NOI yield of 8% - 14%; 13 outparcel
development projects with an aggregate net estimated cost of
approximately $29.7 million at an
expected average incremental NOI yield of 10%; and 20 redevelopment
projects with an aggregate net estimated cost of approximately
$291.1 million at an expected average
incremental NOI yield of 9%.
- An in-depth review of a project that highlights the Company's
reinvestment expertise, Marlton Crossing (Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA), can be found at
this link:
https://www.brixmor.com/blog/marlton-crossing-jim-taylor.
- Due to COVID-19, there is inherent uncertainty as it relates to
the Company's reinvestment projects, specifically with respect to
expected project scopes, expected stabilization dates and expected
NOI yields.
Acquisitions
- During the nine months ended September
30, 2021, the Company acquired two shopping centers, an
outparcel adjacent to an existing center and land associated with
an existing center and terminated a ground lease and acquired the
associated land parcel at an existing center for a combined
purchase price of $67.6 million.
- Subsequent to September 30, 2021,
the Company acquired Pawleys Island Plaza, a 120,000 square foot
grocery-anchored neighborhood shopping center located in
Pawleys Island, South Carolina
(Georgetown, SC MSA), for
$26.3 million. Pawleys Island Plaza
is anchored by a highly-productive Publix, Petco and T.J. Maxx and
complements the Company's Coastal Carolina portfolio.
Dispositions
- During the three months ended September
30, 2021, the Company generated approximately $25.5 million of gross proceeds on the
disposition of three shopping centers, as well as five partial
properties and a land parcel, comprised of 0.3 million square feet
of gross leasable area.
- During the nine months ended September
30, 2021, the Company generated approximately $128.1 million of gross proceeds on the
disposition of nine shopping centers, as well as 14 partial
properties and a land parcel, comprised of 1.5 million square feet
of gross leasable area.
CAPITAL STRUCTURE
- As previously announced, during the three months ended
September 30, 2021, the Company's
Operating Partnership, Brixmor Operating Partnership LP, issued
$500.0 million aggregate principal
amount of 2.500% Senior Notes due 2031. The net proceeds from the
offering were utilized to redeem $500.0
million of its 3.250% Senior Notes due 2023 .
- At September 30, 2021, the
Company had $1.7 billion of total
liquidity, comprised of $404.4
million of cash, cash equivalents and restricted cash and
$1.2 billion of availability under
its Revolving Credit Facility. The Company has no debt maturities
in 2021 or 2023 and only $250.0
million of debt maturities in 2022.
GUIDANCE
- The Company has updated its previously provided NAREIT FFO per
diluted share expectations for 2021 to $1.72 - $1.75 from
$1.70 - $1.76 and same property NOI growth expectations
for 2021 to 7.5% - 8.5% from 4.5% - 6.0%. which incorporates the
strong results for the three months ended September 30, 2021, as well as the previously
announced $0.09 per diluted share
loss on extinguishment of debt, which was not included in prior
guidance.
- With respect to future periods, the Company's updated
guidance:
-
- Reflects anticipated transaction activity
- Does not contemplate any tenants moving to or from a cash basis
of accounting, either of which may result in significant volatility
in straight-line rental income
- Does not include any additional items that impact FFO
comparability, including loss on extinguishment of debt, net,
litigation and other non-routine legal expenses and transaction
expenses, or any one-time items
- The following table provides a reconciliation of the range of
the Company's 2021 estimated net income to NAREIT FFO:
(Unaudited, dollars
in millions, except per share amounts)
|
|
2021E
|
|
2021E Per
Diluted Share
|
Net income
|
|
$261 - $270
|
|
$0.87 -
$0.90
|
Depreciation and
amortization related to real estate
|
|
321
|
|
1.08
|
Gain on sale of real
estate assets
|
|
(71)
|
|
(0.24)
|
Impairment of real
estate assets
|
|
2
|
|
0.01
|
NAREIT FFO
|
|
$513 - $522
|
|
$1.72 -
$1.75
|
CONNECT WITH BRIXMOR
- For additional information, please visit www.brixmor.com;
- Follow Brixmor on:
-
- Twitter at https://twitter.com/Brixmor
- Facebook at https://www.facebook.com/Brixmor
- Instagram at
https://www.instagram.com/brixmorpropertygroup
- YouTube at https://www.youtube.com/user/Brixmor; and
- Find Brixmor on LinkedIn at
www.linkedin.com/company/brixmor.
CONFERENCE CALL AND SUPPLEMENTAL INFORMATION
The Company will host a teleconference on Tuesday, November 2, 2021 at 10:00 AM ET. To participate, please dial
877.705.6003 (domestic) or 201.493.6725 (international) within 15
minutes of the scheduled start of the call. The teleconference can
also be accessed via a live webcast at www.brixmor.com in the
Investors section. A replay of the teleconference will be available
through midnight ET on November 16, 2021 by dialing 844.512.2921
(domestic) or 412.317.6671 (international) (Passcode: 13722888) or
via the web through November 2, 2022
at www.brixmor.com in the Investors section.
The Company's Supplemental Disclosure will be posted at
www.brixmor.com in the Investors section. These materials are also
available to all interested parties upon request to the Company at
investorrelations@brixmor.com or 800.468.7526.
NON-GAAP PERFORMANCE MEASURES
The Company presents the non-GAAP performance measures set forth
below. These measures should not be considered as
alternatives to, or more meaningful than, net income (calculated in
accordance with GAAP) or other GAAP financial measures, as an
indicator of financial performance and are not alternatives to, or
more meaningful than, cash flow from operating activities
(calculated in accordance with GAAP) as a measure of
liquidity. Non-GAAP performance measures have limitations as
they do not include all items of income and expense that affect
operations, and accordingly, should always be considered as
supplemental financial results to those calculated in accordance
with GAAP. The Company's computation of these non-GAAP
performance measures may differ in certain respects from the
methodology utilized by other REITs and, therefore, may not be
comparable to similarly titled measures presented by such other
REITs. Investors are cautioned that items excluded from these
non-GAAP performance measures are relevant to understanding and
addressing financial performance. A reconciliation of these
non-GAAP performance measures to net income is presented in the
attached table.
NAREIT
FFO
NAREIT FFO is a supplemental, non-GAAP performance measure
utilized to evaluate the operating and financial performance of
real estate companies. The National Association of Real Estate
Investment Trusts ("NAREIT") defines FFO as net income (loss),
calculated in accordance with GAAP, excluding (i) depreciation and
amortization related to real estate, (ii) gains and losses from the
sale of certain real estate assets, (iii) gains and losses from
change in control, (iv) impairment write-downs of certain real
estate assets and investments in entities when the impairment is
directly attributable to decreases in the value of depreciable real
estate held by the entity and (v) after adjustments for
unconsolidated joint ventures calculated to reflect FFO on the same
basis. Considering the nature of its business as a real estate
owner and operator, the Company believes that NAREIT FFO is useful
to investors in measuring its operating and financial performance
because the definition excludes items included in net income that
do not relate to or are not indicative of the Company's operating
and financial performance, such as depreciation and amortization
related to real estate, and items which can make periodic and peer
analyses of operating and financial performance more difficult,
such as gains and losses from the sale of certain real estate
assets and impairment write-downs of certain real estate
assets.
Same Property NOI
Same property NOI is a supplemental, non-GAAP performance
measure utilized to evaluate the operating performance of real
estate companies. Same property NOI is calculated (using
properties owned for the entirety of both periods and excluding
properties under development and completed new development
properties which have been stabilized for less than one year) as
total property revenues (base rent, expense reimbursements,
adjustments for revenues deemed uncollectible, ancillary and other
rental income, percentage rents and other revenues) less direct
property operating expenses (operating costs and real estate
taxes). Same property NOI excludes (i) corporate level expenses
(including general and administrative), (ii) lease termination
fees, (iii) straight-line rental income, net, (iv) accretion of
below-market leases, net of amortization of above-market leases and
tenant inducements, (v) straight-line ground rent expense, and (vi)
income / expense associated with the Company's captive insurance
company. Considering the nature of its business as a real
estate owner and operator, the Company believes that same property
NOI is useful to investors in measuring the operating performance
of its property portfolio because the definition excludes various
items included in net income that do not relate to, or are not
indicative of, the operating performance of the Company's
properties, such as depreciation and amortization and corporate
level expenses (including general and administrative), and because
it eliminates disparities in NOI due to the acquisition or
disposition of properties or the stabilization of completed new
development properties during the period presented and therefore
provides a more consistent metric for comparing the operating
performance of the Company's real estate between periods.
ABOUT BRIXMOR PROPERTY GROUP
Brixmor (NYSE: BRX) is a real estate investment trust (REIT)
that owns and operates a high-quality, national portfolio of
open-air shopping centers. Its 386 retail centers comprise
approximately 68 million square feet of prime retail space in
established trade areas. The Company strives to own and
operate shopping centers that reflect Brixmor's vision "to be the
center of the communities we serve" and are home to a diverse mix
of thriving national, regional and local retailers. Brixmor
is a proud real estate partner to approximately 5,000 retailers
including The TJX Companies, The Kroger Co., Publix Super Markets
and Ross Stores.
Brixmor announces material information to its investors in SEC
filings and press releases and on public conference calls, webcasts
and the "Investors" page of its website at www.brixmor.com. The
Company also uses social media to communicate with its investors
and the public, and the information Brixmor posts on social media
may be deemed material information. Therefore, Brixmor encourages
investors and others interested in the Company to review the
information that it posts on its website and on its social media
channels.
SAFE HARBOR LANGUAGE
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
statements include, but are not limited to, statements related to
the Company's expectations regarding the performance of its
business, its financial results, its liquidity and capital
resources and other non-historical statements. You can
identify these forward-looking statements by the use of words such
as "outlook," "believes," "expects," "potential," "continues,"
"may," "will," "should," "seeks," "projects," "predicts,"
"intends," "plans," "estimates," "anticipates" or the negative
version of these words or other comparable words. Such
forward-looking statements are subject to various risks and
uncertainties, including those described under the sections
entitled "Forward-Looking Statements" and "Risk Factors" in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2020 and the Company's
Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, as such factors may be
updated from time to time in our periodic filings with the SEC,
which are accessible on the SEC's website at www.sec.gov.
Currently, one of the most significant factors that could cause
actual outcomes or results to differ materially from those
indicated in these statements is the adverse effect of the current
pandemic of the novel coronavirus ("COVID-19") on the financial
condition, operating results and cash flows of the Company, the
Company's tenants, the real estate market, the financial markets
and the global economy. The COVID-19 pandemic has impacted us and
our tenants significantly, and the extent to which it continues to
impact us and our tenants will depend on future developments, which
are highly uncertain and cannot be predicted with confidence,
including the scope, severity and duration of the pandemic,
treatment developments, public adoption rates of COVID-19 vaccines,
including booster shots, and their effectiveness against emerging
variants of COVID-19, such as the Delta variant, the direct and
indirect economic effects of the pandemic and containment measures,
and potential sustained changes in consumer behavior, among others.
Accordingly, there are or will be important factors that could
cause actual outcomes or results to differ materially from those
indicated in these statements. These factors should not be
construed as exhaustive and should be read in conjunction with the
other cautionary statements that are included in this release and
in the Company's filings with the SEC. The Company undertakes no
obligation to publicly update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as required by law.
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
Unaudited, dollars in
thousands, except share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
|
|
|
|
9/30/21
|
|
12/31/20
|
|
Assets
|
|
|
|
|
|
Real estate
|
|
|
|
|
|
|
Land
|
$
1,736,876
|
|
$
1,740,263
|
|
|
|
Buildings and tenant
improvements
|
7,808,558
|
|
7,714,105
|
|
|
|
Construction in
progress
|
157,229
|
|
142,745
|
|
|
|
Lease
intangibles
|
541,433
|
|
566,448
|
|
|
|
|
|
10,244,096
|
|
10,163,561
|
|
|
|
Accumulated
depreciation and amortization
|
(2,785,227)
|
|
(2,659,448)
|
|
|
Real estate,
net
|
7,458,869
|
|
7,504,113
|
|
|
Cash and cash
equivalents
|
397,198
|
|
368,675
|
|
|
Restricted
cash
|
7,166
|
|
1,412
|
|
|
Marketable
securities
|
20,769
|
|
19,548
|
|
|
Receivables,
net
|
229,421
|
|
240,323
|
|
|
Deferred charges and
prepaid expenses, net
|
147,014
|
|
139,260
|
|
|
Real estate assets held
for sale
|
42,011
|
|
18,014
|
|
|
Other assets
|
48,665
|
|
50,802
|
|
Total assets
|
$
8,351,113
|
|
$
8,342,147
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Debt obligations,
net
|
$
5,163,375
|
|
$
5,167,330
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
495,229
|
|
494,116
|
|
Total
liabilities
|
5,658,604
|
|
5,661,446
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common stock, $0.01 par
value; authorized 3,000,000,000 shares;
|
|
|
|
|
|
|
306,115,437 and
305,621,403 shares issued and 296,988,445 and
296,494,411
|
|
|
|
|
|
|
shares
outstanding
|
2,970
|
|
2,965
|
|
|
Additional paid-in
capital
|
3,220,183
|
|
3,213,990
|
|
|
Accumulated other
comprehensive loss
|
(17,588)
|
|
(28,058)
|
|
|
Distributions in excess
of net income
|
(513,056)
|
|
(508,196)
|
|
Total equity
|
2,692,509
|
|
2,680,701
|
|
Total liabilities and
equity
|
$
8,351,113
|
|
$
8,342,147
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
Unaudited, dollars in
thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
9/30/21
|
|
9/30/20
|
|
9/30/21
|
|
9/30/20
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Rental
income
|
$
290,013
|
|
$
253,799
|
|
$
853,407
|
|
$
781,635
|
|
|
Other
revenues
|
173
|
|
136
|
|
3,549
|
|
2,221
|
|
Total
revenues
|
290,186
|
|
253,935
|
|
856,956
|
|
783,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
32,774
|
|
24,794
|
|
92,914
|
|
80,286
|
|
|
Real estate
taxes
|
39,763
|
|
42,124
|
|
124,908
|
|
126,796
|
|
|
Depreciation and
amortization
|
81,724
|
|
87,488
|
|
246,356
|
|
251,334
|
|
|
Impairment of real
estate assets
|
-
|
|
5,746
|
|
1,898
|
|
16,306
|
|
|
General and
administrative
|
25,309
|
|
27,748
|
|
76,415
|
|
74,781
|
|
Total operating
expenses
|
179,570
|
|
187,900
|
|
542,491
|
|
549,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Dividends and
interest
|
51
|
|
109
|
|
242
|
|
335
|
|
|
Interest
expense
|
(48,918)
|
|
(50,991)
|
|
(147,601)
|
|
(148,197)
|
|
|
Gain on sale of real
estate assets
|
11,122
|
|
13,621
|
|
49,489
|
|
23,218
|
|
|
Loss on extinguishment
of debt, net
|
(27,116)
|
|
(50)
|
|
(28,345)
|
|
(10,441)
|
|
|
Other
|
390
|
|
(780)
|
|
694
|
|
(2,499)
|
|
Total other
expense
|
(64,471)
|
|
(38,091)
|
|
(125,521)
|
|
(137,584)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
46,145
|
|
$
27,944
|
|
$
188,944
|
|
$
96,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
0.15
|
|
$
0.09
|
|
$
0.63
|
|
$
0.32
|
|
|
Diluted
|
|
|
$
0.15
|
|
$
0.09
|
|
$
0.63
|
|
$
0.32
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
297,188
|
|
296,562
|
|
297,165
|
|
296,982
|
|
|
Diluted
|
|
|
298,269
|
|
296,862
|
|
298,209
|
|
297,317
|
FUNDS FROM
OPERATIONS (FFO)
|
|
|
|
|
|
|
|
Unaudited, dollars in
thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
9/30/21
|
|
9/30/20
|
|
9/30/21
|
|
9/30/20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
46,145
|
|
$
27,944
|
|
$
188,944
|
|
$
96,769
|
|
|
Depreciation and
amortization related to real estate
|
80,778
|
|
86,486
|
|
243,601
|
|
248,274
|
|
|
Gain on sale of real
estate assets
|
(11,122)
|
|
(13,621)
|
|
(49,489)
|
|
(23,218)
|
|
|
Impairment of real
estate assets
|
-
|
|
5,746
|
|
1,898
|
|
16,306
|
|
NAREIT FFO
|
$
115,801
|
|
$
106,555
|
|
$
384,954
|
|
$
338,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAREIT FFO per diluted
share
|
$
0.39
|
|
$
0.36
|
|
$
1.29
|
|
$
1.14
|
|
Weighted average
diluted shares outstanding
|
298,269
|
|
296,862
|
|
298,209
|
|
297,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that impact FFO
comparability
|
|
|
|
|
|
|
|
|
|
Litigation and other
non-routine legal expenses
|
$
(27,116)
|
|
$
(50)
|
|
$
(28,345)
|
|
$
(10,441)
|
|
|
Loss on extinguishment
of debt, net
|
(145)
|
|
(4,835)
|
|
(2,474)
|
|
(7,395)
|
|
|
Transaction
expenses
|
(154)
|
|
(163)
|
|
(203)
|
|
(588)
|
|
Total items that impact
FFO comparability
|
$
(27,415)
|
|
$
(5,048)
|
|
$
(31,022)
|
|
$
(18,424)
|
|
Items that impact FFO
comparability, net per share
|
$
(0.09)
|
|
$
(0.02)
|
|
$
(0.10)
|
|
$
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
Disclosures
|
|
|
|
|
|
|
|
|
|
Straight-line rental
income, net (1)
|
$
4,951
|
|
$
(2,974)
|
|
$
10,627
|
|
$
(11,533)
|
|
|
Accretion of
below-market leases, net of amortization of above-market leases and
tenant inducements
|
1,974
|
|
3,281
|
|
6,326
|
|
9,802
|
|
|
Straight-line ground
rent expense (2)
|
(32)
|
|
(35)
|
|
(120)
|
|
(105)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share
|
$
0.215
|
|
$
-
|
|
$
0.645
|
|
$
0.285
|
|
Dividends
declared
|
$
63,852
|
|
$
-
|
|
$
191,546
|
|
$
84,488
|
|
Dividend payout ratio
(as % of NAREIT FFO)
|
55.1%
|
|
-%
|
|
49.8%
|
|
25.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
straight-line rental income reversals of $0.6 million and $11.3
million for the three months ended September 30, 2021 and 2020,
respectively, and $2.9 million and $30.7 million for the nine
months ended September 30, 2021 and 2020, respectively.
Additionally, in connection with returning certain tenants to the
accrual basis of accounting, the Company recognized $0.8 million of
straight-line rental income during the three and nine months ended
September 30, 2021 that had previously been reversed.
|
(2) Straight-line
ground rent expense is included in Operating costs on the
Consolidated Statements of Operations.
|
SAME PROPERTY NOI
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited, dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
9/30/21
|
|
9/30/20
|
|
Change
|
|
9/30/21
|
|
9/30/20
|
|
Change
|
|
Same Property NOI
Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
properties
|
|
373
|
|
373
|
|
-
|
|
371
|
|
371
|
|
-
|
|
Percent
billed
|
|
88.1%
|
|
88.1%
|
|
-%
|
|
88.2%
|
|
88.2%
|
|
-%
|
|
Percent
leased
|
|
91.5%
|
|
91.3%
|
|
0.2%
|
|
91.6%
|
|
91.5%
|
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base rent
|
|
$
203,008
|
|
$
199,618
|
|
|
|
$
597,873
|
|
$
600,333
|
|
|
|
|
Expense
reimbursements
|
|
60,585
|
|
59,041
|
|
|
|
179,829
|
|
177,524
|
|
|
|
|
Revenues deemed
uncollectible
|
|
3,756
|
|
(20,932)
|
|
|
|
1,748
|
|
(52,711)
|
|
|
|
|
Ancillary and other
rental income / Other revenues
|
|
5,171
|
|
4,145
|
|
|
|
17,306
|
|
13,728
|
|
|
|
|
Percentage
rents
|
|
887
|
|
594
|
|
|
|
4,503
|
|
3,395
|
|
|
|
|
|
|
|
|
273,407
|
|
242,466
|
|
12.8%
|
|
801,259
|
|
742,269
|
|
7.9%
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
(31,907)
|
|
(25,027)
|
|
|
|
(88,922)
|
|
(76,979)
|
|
|
|
|
Real estate
taxes
|
|
(38,747)
|
|
(40,427)
|
|
|
|
(120,160)
|
|
(119,783)
|
|
|
|
|
|
|
|
|
(70,654)
|
|
(65,454)
|
|
7.9%
|
|
(209,082)
|
|
(196,762)
|
|
6.3%
|
|
Same property
NOI
|
|
$
202,753
|
|
$
177,012
|
|
14.5%
|
|
$
592,177
|
|
$
545,507
|
|
8.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI margin
|
|
74.2%
|
|
73.0%
|
|
|
|
73.9%
|
|
73.5%
|
|
|
|
Expense recovery
ratio
|
|
85.7%
|
|
90.2%
|
|
|
|
86.0%
|
|
90.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Contribution
to Same Property NOI Performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
Percent
Contribution
|
|
|
|
Change
|
|
Percent
Contribution
|
|
|
|
|
Base rent - excluding
COVID-19 rent deferrals (lease modifications) and rent
abatements
|
|
$
450
|
|
0.2%
|
|
|
|
$
(2,603)
|
|
(0.5%)
|
|
|
|
|
Base rent - COVID-19
rent deferrals (lease modifications) and rent abatements
|
|
2,940
|
|
1.7%
|
|
|
|
143
|
|
0.0%
|
|
|
|
|
Revenues deemed
uncollectible
|
|
24,688
|
|
13.9%
|
|
|
|
54,459
|
|
10.0%
|
|
|
|
|
Net expense
reimbursements
|
|
(3,656)
|
|
(2.1%)
|
|
|
|
(10,015)
|
|
(1.8%)
|
|
|
|
|
Ancillary and other
rental income / Other revenues
|
|
1,026
|
|
0.6%
|
|
|
|
3,578
|
|
0.7%
|
|
|
|
|
Percentage
rents
|
|
293
|
|
0.2%
|
|
|
|
1,108
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
14.5%
|
|
|
|
|
|
8.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to Same Property NOI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same property
NOI
|
|
$
202,753
|
|
$
177,012
|
|
|
|
$
592,177
|
|
$
545,507
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-same property
NOI
|
|
6,004
|
|
8,339
|
|
|
|
22,668
|
|
28,575
|
|
|
|
|
Lease termination
fees
|
|
1,999
|
|
1,394
|
|
|
|
7,456
|
|
4,528
|
|
|
|
|
Straight-line rental
income, net
|
|
4,951
|
|
(2,974)
|
|
|
|
10,627
|
|
(11,533)
|
|
|
|
|
Accretion of
below-market leases, net of amortization of above-market leases and
tenant inducements
|
1,974
|
|
3,281
|
|
|
|
6,326
|
|
9,802
|
|
|
|
|
Straight-line ground
rent expense
|
|
(32)
|
|
(35)
|
|
|
|
(120)
|
|
(105)
|
|
|
|
|
Depreciation and
amortization
|
|
(81,724)
|
|
(87,488)
|
|
|
|
(246,356)
|
|
(251,334)
|
|
|
|
|
Impairment of real
estate assets
|
|
-
|
|
(5,746)
|
|
|
|
(1,898)
|
|
(16,306)
|
|
|
|
|
General and
administrative
|
|
(25,309)
|
|
(27,748)
|
|
|
|
(76,415)
|
|
(74,781)
|
|
|
|
|
Total other
expense
|
|
(64,471)
|
|
(38,091)
|
|
|
|
(125,521)
|
|
(137,584)
|
|
|
|
Net income
|
|
$
46,145
|
|
$
27,944
|
|
|
|
$
188,944
|
|
$
96,769
|
|
|
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SOURCE Brixmor Property Group Inc.