NEW YORK, Feb. 7, 2022 /PRNewswire/ -- Brixmor
Property Group Inc. (NYSE: BRX) ("Brixmor" or the "Company")
announced today its operating results for the three and twelve
months ended December 31, 2021.
For the three months ended December 31,
2021 and 2020, net income was $0.27 per diluted share and $0.08 per diluted share, respectively, and for
the twelve months ended December 31,
2021 and 2020, net income was $0.90 per diluted share and $0.41 per diluted share, respectively.
Key highlights for the three months ended December 31, 2021 include:
- Executed 2.1 million square feet of new and renewal leases,
with rent spreads on comparable space of 14.5%, including 1.0
million square feet of new leases, with rent spreads on comparable
space of 41.7%
- Sequentially increased total leased occupancy to 92.0%, anchor
leased occupancy to 94.4%, and small shop leased occupancy to
86.7%
-
- Leased to billed occupancy spread totaled 330 basis points
- Total signed but not yet commenced lease population represented
2.6 million square feet and $50.3
million of annualized base rent
- Reported an increase in same property NOI of 9.7%
- Reported Nareit FFO of $137.4
million, or $0.46 per diluted
share
- Stabilized $67.9 million of
reinvestment projects at an average incremental NOI yield of 9%,
with the in process reinvestment pipeline totaling $374.3 million at an expected average incremental
NOI yield of 9%
- Completed $191.9 million of
acquisitions and $116.2 million of
dispositions
- Appointed Sandra A.J. Lawrence,
former Executive Vice President and Chief Administrative Officer of
The Children's Mercy Hospital and Clinics, to the Company's Board
of Directors
Key highlights for the twelve months ended December 31, 2021 include:
- Executed 6.8 million square feet of new and renewal leases,
with rent spreads on comparable space of 11.4%, including 3.1
million square feet of new leases, with rent spreads on comparable
space of 27.6%
- Reported an increase in same property NOI of 8.9%
- Reported Nareit FFO of $522.3
million, or $1.75 per diluted
share
-
- Nareit FFO included items that impact FFO comparability,
including a loss on extinguishment of debt, net, litigation and
other non-routine legal expenses, and transaction expenses of
$(31.3) million, or $(0.10) per diluted share
- Stabilized $168.2 million of
reinvestment projects at an average incremental NOI yield of
11%
- Completed $259.4 million of
acquisitions and $244.3 million of
dispositions
- Issued $850.0 million of Senior
Notes and redeemed $500.0 million of
Senior Notes due 2023 and a $350.0
million term loan scheduled to mature December 2023
Subsequent events:
- Provided 2022 Nareit FFO per diluted share expectations of
$1.86 - $1.95 and same property NOI growth expectations
of 2.0% - 4.0%
- Completed $131.9 million of
acquisitions and $25.6 million of
dispositions
"Our strong leasing volumes and spreads, growing in place ABR,
record setting small shop occupancy and rate, and bottom line
growth underscore the strength of Brixmor's value-added strategy
and the continued execution by our amazing team," commented
James Taylor, CEO and
President. "I'm particularly pleased with our prospects for
continued outperformance, as evident in our forward leasing and
reinvestment pipelines, as well as attractive acquisitions that
leverage our value-added platform."
FINANCIAL HIGHLIGHTS
Net Income
- For the three months ended December 31,
2021 and 2020, net income was $81.2
million, or $0.27 per diluted
share, and $24.4 million, or
$0.08 per diluted share,
respectively.
- For the twelve months ended December 31,
2021 and 2020, net income was $270.2
million, or $0.90 per diluted
share, and $121.2 million, or
$0.41 per diluted share,
respectively.
Nareit FFO
- For the three months ended December 31,
2021 and 2020, Nareit FFO was $137.4
million, or $0.46 per diluted
share, and $99.7 million, or
$0.33 per diluted share,
respectively. Results for the three months ended December 31, 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 $(0.3)
million, or $(0.00) per
diluted share, and $(19.2) million,
or $(0.06) per diluted share,
respectively.
- For the twelve months ended December 31,
2021 and 2020, Nareit FFO was $522.3
million, or $1.75 per diluted
share, and $437.8 million, or
$1.47 per diluted share,
respectively. Results for the twelve months ended December 31, 2021 and 2020 include items that
impact FFO comparability, including losses on extinguishment of
debt, net, litigation and other non-routine legal expenses, and
transaction expenses of $(31.3)
million, or $(0.10) per
diluted share, and $(37.7) million,
or $(0.13) per diluted share,
respectively.
Same Property NOI Performance
- For the three months ended December 31,
2021, the Company reported an increase in same property NOI
of 9.7% versus the comparable 2020 period.
- For the twelve months ended December 31,
2021, the Company reported an increase in same property NOI
of 8.9% 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 first quarter of 2022.
- The dividend is payable on April 18,
2022 to stockholders of record on April 5, 2022, representing an ex-dividend date
of April 4, 2022.
PORTFOLIO AND INVESTMENT ACTIVITY
Value Enhancing Reinvestment Opportunities
- During the three months ended December
31, 2021, the Company stabilized nine value enhancing
reinvestment projects with a total aggregate net cost of
approximately $67.9 million at an
average incremental NOI yield of 9% and added 11 new reinvestment
projects to its in process pipeline. Projects added include five
anchor space repositioning projects, two outparcel development
projects, and four redevelopment projects, with a total aggregate
net estimated cost of approximately $46.6
million at an expected average incremental NOI yield of
8%.
- At December 31, 2021, the value
enhancing reinvestment in process pipeline was comprised of 50
projects with an aggregate net estimated cost of approximately
$374.3 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 $77.1 million
at an expected incremental NOI yield of 8% - 14%; 12 outparcel
development projects with an aggregate net estimated cost of
approximately $23.5 million at an
expected average incremental NOI yield of 11%; and 22 redevelopment
projects with an aggregate net estimated cost of approximately
$273.7 million at an expected average
incremental NOI yield of 9%.
- An in-depth review of a project that highlights the Company's
reinvestment expertise, Seminole Plaza (Tampa-St. Petersburg-Clearwater, FL MSA), can be found at this
link: https://www.brixmor.com/blog/seminole-plaza-redev.
Acquisitions
- During the three months ended December
31, 2021, the Company acquired four shopping centers for a
combined purchase price of $191.9
million, including:
-
- Pawleys Island Plaza located in Pawleys Island, South Carolina (Georgetown, SC MSA).
- Granada Shoppes located in Naples,
Florida (Naples-Marco Island,
FL MSA).
- Kings Market located in Roswell,
Georgia (Atlanta-Sandy
Springs-Alpharetta, GA MSA).
- Connexion located in Roswell,
Georgia (Atlanta-Sandy
Springs-Alpharetta, GA MSA).
- A more detailed update on acquisition activity during the three
months ended December 31, 2021 can be
found at this link:
https://s1.q4cdn.com/531584854/files/doc_news/2022/2021BRXCapitalRecycling.pdf.
- During the twelve months ended December
31, 2021, the Company acquired six shopping centers, in
addition to certain outparcels, ancillary land parcels, and
leasehold rights, for a combined purchase price of $259.4 million.
- Subsequent to December 31, 2021,
the Company acquired two shopping centers for a combined purchase
price of $131.9 million,
including:
-
- Brea Gateway (as previously announced) located in Brea, California (Los Angeles-Long
Beach-Anaheim, CA MSA).
- Arboretum Village, an approximately 95,000 square foot
grocery-anchored neighborhood center located in Dallas, Texas (Dallas-Fort Worth-Arlington, TX MSA), for $46.2 million. Arboretum Village is anchored by
Tom Thumb (Albertsons) and PetSmart and has an undeveloped pad site
allowing for near-term growth opportunities. The property
complements the Company's 12 other assets in the trade area, which
aggregate approximately 2.5 million square feet.
Dispositions
- During the three months ended December
31, 2021, the Company generated approximately $116.2 million of gross proceeds on the
disposition of eight shopping centers, as well as two partial
properties, comprised of 1.1 million square feet of gross leasable
area.
- During the twelve months ended December
31, 2021, the Company generated approximately $244.3 million of gross proceeds on the
disposition of 17 shopping centers, as well as 15 partial
properties, comprised of 2.6 million square feet of gross leasable
area.
- Subsequent to December 31, 2021,
the Company disposed of one shopping center for $25.6 million of gross proceeds.
CAPITAL STRUCTURE
- During the three and twelve months ended December 31, 2021, the Company raised
approximately $5.2 million in gross
proceeds, excluding commissions, from the sale of approximately 0.2
million shares of common stock at an average price per share of
$25.06 through its at-the-market
equity offering program. As of December 31,
2021, $394.8 million of common
stock remained available for issuance.
- During 2021, the Company's Operating Partnership, Brixmor
Operating Partnership LP (the "Operating Partnership"), issued
$850.0 million aggregate principal
amount of Senior Notes and redeemed $500.0 of Senior Notes due 2023 and a
$350.0 million term loan scheduled to
mature December 2023.
- At December 31, 2021, the Company
had $1.5 billion of total liquidity,
comprised of $297.7 million of cash,
cash equivalents, and restricted cash and $1.2 billion of availability under its Revolving
Credit Facility.
- Subsequent to December 31, 2021,
the Company repaid its $250.0 million
Floating Rate Senior Notes due on February
1, 2022. The Company has no remaining debt maturities in
2022.
GUIDANCE
- The Company expects 2022 Nareit FFO per diluted share of
$1.86 - $1.95 and same property NOI growth of 2.0% -
4.0%
- Expectations for 2022 same property NOI growth include a:
-
- Contribution from base rent of 400 - 500 bps
- Detraction from revenues deemed uncollectible of (250) bps -
(150) bps, based on net reserves of 160 – 90 bps of total
revenues
- Contribution from all other line items of 50 bps
- Expectations for 2022 Nareit FFO:
-
- Do 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
- Do not include any items that impact FFO comparability,
including loss on extinguishment of debt, litigation and other
non-routine legal expenses, and transaction expenses, or any
one-time items
- The following table provides a bridge from the Company's 2021
Nareit FFO per diluted share to the Company's 2022 estimated Nareit
FFO per diluted share:
|
|
Low
|
|
High
|
2021 Nareit FFO
per diluted share
|
|
$1.75
|
|
$1.75
|
Same property NOI
growth
|
|
0.05
|
|
0.10
|
Items that impact FFO
comparability 1
|
|
0.10
|
|
0.10
|
Impact of 2021 and
2022 transaction activity
|
|
(0.02)
|
|
—
|
Other
2
|
|
(0.03)
|
|
(0.02)
|
Non-cash GAAP rental
adjustments 3
|
|
0.01
|
|
0.02
|
2022E Nareit FFO
per diluted share
|
|
$1.86
|
|
$1.95
|
1.
|
Includes loss on
extinguishment of debt, net, litigation and other non-routine legal
expenses, and transaction expenses recognized in 2021. 2022
guidance does not include any expectations of such one-time
items.
|
2.
|
Includes non-same
property NOI, lease termination fees, non-real estate depreciation
and amortization, general and administrative expense, dividend and
interest, interest expense, and other income (expense).
|
3.
|
Includes
straight-line rental income, net, accretion of below-market leases,
net of amortization of above-market leases and tenant inducements,
and straight-line ground rent expense.
|
The following table provides a reconciliation of the range of
the Company's 2022 estimated net income attributable to common
stockholders to Nareit FFO:
(Unaudited,
dollars in millions, except per share amounts)
|
|
2022E
|
|
2022E Per
Diluted Share
|
Net income
|
|
$265 -
$292
|
|
$0.89 -
$0.98
|
Depreciation and
amortization related to real estate
|
|
317
|
|
1.06
|
Gain on sale of real
estate assets
|
|
(26)
|
|
(0.09)
|
Impairment of real
estate assets
|
|
0
|
|
0.00
|
Nareit
FFO
|
|
$556 -
$583
|
|
$1.86 -
$1.95
|
CONNECT WITH BRIXMOR
- For additional information, please visit
https://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
https://www.linkedin.com/company/brixmor.
CONFERENCE CALL AND SUPPLEMENTAL INFORMATION
The Company will host a teleconference on Tuesday, February 8, 2022 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 https://www.brixmor.com in
the Investors section. A replay of the teleconference will be
available through midnight ET on
February 22, 2022 by dialing
844.512.2921 (domestic) or 412.317.6671 (international) (Passcode:
13725192) or via the web through February 8,
2023 at https://www.brixmor.com in the Investors
section.
The Company's Supplemental Disclosure will be posted at
https://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 tables.
Nareit
FFO
Nareit FFO is a supplemental, non-GAAP performance measure
utilized to evaluate the operating and financial performance of
real estate companies. 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 that 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 or 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), lease
termination fees, straight-line rental income, net, accretion of
below-market leases, net of amortization of above-market leases and
tenant inducements, and straight-line ground rent expense 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 382 retail centers comprise
approximately 67 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 over 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 https://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, 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 forward-looking statements is the
adverse effect of the current pandemic of the novel coronavirus, or
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 significantly impacted the Company and its tenants,
and the extent to which it continues to do so 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, the effectiveness of vaccines,
booster shots, and treatments against emerging variants of COVID-19
such as the Delta and Omicron variants, 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
|
|
|
|
|
|
12/31/21
|
|
12/31/20
|
|
Assets
|
|
|
|
|
|
Real
estate
|
|
|
|
|
|
|
Land
|
$
1,773,448
|
|
$
1,740,263
|
|
|
|
Buildings and tenant
improvements
|
8,009,320
|
|
7,714,105
|
|
|
|
Construction in
progress
|
101,422
|
|
142,745
|
|
|
|
Lease
intangibles
|
544,224
|
|
566,448
|
|
|
|
|
|
10,428,414
|
|
10,163,561
|
|
|
|
Accumulated
depreciation and amortization
|
(2,813,329)
|
|
(2,659,448)
|
|
|
Real estate,
net
|
7,615,085
|
|
7,504,113
|
|
|
Cash and cash
equivalents
|
296,632
|
|
368,675
|
|
|
Restricted
cash
|
1,111
|
|
1,412
|
|
|
Marketable
securities
|
20,224
|
|
19,548
|
|
|
Receivables,
net
|
234,873
|
|
240,323
|
|
|
Deferred charges and
prepaid expenses, net
|
143,503
|
|
139,260
|
|
|
Real estate assets
held for sale
|
16,131
|
|
18,014
|
|
|
Other
assets
|
49,834
|
|
50,802
|
|
Total
assets
|
$
8,377,393
|
|
$
8,342,147
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Debt obligations,
net
|
$
5,164,518
|
|
$
5,167,330
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
494,529
|
|
494,116
|
|
Total
liabilities
|
5,659,047
|
|
5,661,446
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common stock, $0.01
par value; authorized 3,000,000,000 shares;
|
|
|
|
|
|
|
306,337,045 and
305,621,403 shares issued and 297,210,053 and
296,494,411
|
|
|
|
|
|
|
shares
outstanding
|
2,972
|
|
2,965
|
|
|
Additional paid-in
capital
|
3,231,732
|
|
3,213,990
|
|
|
Accumulated other
comprehensive loss
|
(12,674)
|
|
(28,058)
|
|
|
Distributions in
excess of net income
|
(503,684)
|
|
(508,196)
|
|
Total
equity
|
2,718,346
|
|
2,680,701
|
|
Total liabilities and
equity
|
$
8,377,393
|
|
$
8,342,147
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
Unaudited, dollars in
thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
12/31/21
|
|
12/31/20
|
|
12/31/21
|
|
12/31/20
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Rental
income
|
$
292,897
|
|
$
269,308
|
|
$
1,146,304
|
|
$
1,050,943
|
|
|
Other
revenues
|
2,421
|
|
102
|
|
5,970
|
|
2,323
|
|
Total
revenues
|
295,318
|
|
269,410
|
|
1,152,274
|
|
1,053,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
39,128
|
|
31,392
|
|
132,042
|
|
111,678
|
|
|
Real estate
taxes
|
40,838
|
|
42,147
|
|
165,746
|
|
168,943
|
|
|
Depreciation and
amortization
|
80,796
|
|
84,249
|
|
327,152
|
|
335,583
|
|
|
Impairment of real
estate assets
|
-
|
|
3,245
|
|
1,898
|
|
19,551
|
|
|
General and
administrative
|
29,039
|
|
23,499
|
|
105,454
|
|
98,280
|
|
Total operating
expenses
|
189,801
|
|
184,532
|
|
732,292
|
|
734,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Dividends and
interest
|
57
|
|
147
|
|
299
|
|
482
|
|
|
Interest
expense
|
(47,175)
|
|
(51,791)
|
|
(194,776)
|
|
(199,988)
|
|
|
Gain on sale of real
estate assets
|
23,603
|
|
11,281
|
|
73,092
|
|
34,499
|
|
|
Loss on
extinguishment of debt, net
|
-
|
|
(17,611)
|
|
(28,345)
|
|
(28,052)
|
|
|
Other
|
(759)
|
|
(2,500)
|
|
(65)
|
|
(4,999)
|
|
Total other
expense
|
(24,274)
|
|
(60,474)
|
|
(149,795)
|
|
(198,058)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
81,243
|
|
$
24,404
|
|
$
270,187
|
|
$
121,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
0.27
|
|
$
0.08
|
|
$
0.91
|
|
$
0.41
|
|
|
Diluted
|
|
|
$
0.27
|
|
$
0.08
|
|
$
0.90
|
|
$
0.41
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
297,490
|
|
296,661
|
|
297,408
|
|
296,972
|
|
|
Diluted
|
|
|
299,037
|
|
297,623
|
|
298,835
|
|
297,899
|
|
|
|
|
|
|
|
|
|
|
|
|
FUNDS FROM
OPERATIONS (FFO)
|
Unaudited, dollars in
thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
12/31/21
|
|
12/31/20
|
|
12/31/21
|
|
12/31/20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
81,243
|
|
$
24,404
|
|
$
270,187
|
|
$
121,173
|
|
|
Depreciation and
amortization related to real estate
|
79,753
|
|
83,284
|
|
323,354
|
|
331,558
|
|
|
Gain on sale of real
estate assets
|
(23,603)
|
|
(11,281)
|
|
(73,092)
|
|
(34,499)
|
|
|
Impairment of real
estate assets
|
-
|
|
3,245
|
|
1,898
|
|
19,551
|
|
Nareit FFO
|
$
137,393
|
|
$
99,652
|
|
$
522,347
|
|
$
437,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nareit FFO per
diluted share
|
$
0.46
|
|
$
0.33
|
|
$
1.75
|
|
$
1.47
|
|
Weighted average
diluted shares outstanding
|
299,037
|
|
297,623
|
|
298,835
|
|
297,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that impact FFO
comparability
|
|
|
|
|
|
|
|
|
|
Loss on
extinguishment of debt, net
|
$
-
|
|
$
(17,611)
|
|
$
(28,345)
|
|
$
(28,052)
|
|
|
Litigation and other
non-routine legal expenses
|
(111)
|
|
(1,582)
|
|
(2,585)
|
|
(8,977)
|
|
|
Transaction
expenses
|
(192)
|
|
(47)
|
|
(395)
|
|
(635)
|
|
Total items that
impact FFO comparability
|
$
(303)
|
|
$
(19,240)
|
|
$
(31,325)
|
|
$
(37,664)
|
|
Items that impact FFO
comparability, net per share
|
$
(0.00)
|
|
$
(0.06)
|
|
$
(0.10)
|
|
$
(0.13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
Disclosures
|
|
|
|
|
|
|
|
|
|
Straight-line rental
income, net (1)
|
$
3,924
|
|
$
(325)
|
|
$
14,551
|
|
$
(11,858)
|
|
|
Accretion of
below-market leases, net of amortization of above-market leases and
tenant
inducements
|
1,895
|
|
3,272
|
|
8,221
|
|
13,074
|
|
|
Straight-line ground
rent expense (2)
|
(14)
|
|
(46)
|
|
(134)
|
|
(151)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
0.240
|
|
$
0.215
|
|
$
0.885
|
|
$
0.500
|
|
Dividends
declared
|
$
71,331
|
|
$
63,746
|
|
$
262,877
|
|
$
148,234
|
|
Dividend payout ratio
(as % of Nareit FFO)
|
51.9%
|
|
64.0%
|
|
50.3%
|
|
33.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
straight-line rental income reversals of $1.0 million and $4.0
million for the three months ended December 31, 2021 and 2020,
respectively, and $3.9 million and $34.7 million for the twelve
months ended December 31, 2021 and 2020, respectively.
Additionally, in connection with returning certain tenants to the
accrual basis of accounting, the Company recognized $0.1 million
and $0.9 million of straight-line rental income during the three
and twelve months ended December 31, 2021, respectively, 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
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
12/31/21
|
|
12/31/20
|
|
Change
|
|
12/31/21
|
|
12/31/20
|
|
Change
|
|
Same Property NOI
Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
properties
|
|
364
|
|
364
|
|
-
|
|
362
|
|
362
|
|
-
|
|
Percent
billed
|
|
88.6%
|
|
87.9%
|
|
0.7%
|
|
88.6%
|
|
88.0%
|
|
0.6%
|
|
Percent
leased
|
|
91.9%
|
|
90.9%
|
|
1.0%
|
|
92.0%
|
|
91.0%
|
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base rent
|
|
$
201,816
|
|
$
196,601
|
|
|
|
$
788,650
|
|
$
785,904
|
|
|
|
|
Expense
reimbursements
|
|
66,058
|
|
61,208
|
|
|
|
242,992
|
|
236,016
|
|
|
|
|
Revenues deemed
uncollectible
|
|
(124)
|
|
(11,284)
|
|
|
|
1,614
|
|
(63,463)
|
|
|
|
|
Ancillary and other
rental income / Other revenues
|
|
7,946
|
|
4,551
|
|
|
|
25,043
|
|
18,084
|
|
|
|
|
Percentage
rents
|
|
1,231
|
|
517
|
|
|
|
5,600
|
|
3,850
|
|
|
|
|
|
|
|
|
276,927
|
|
251,593
|
|
10.1%
|
|
1,063,899
|
|
980,391
|
|
8.5%
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
(39,316)
|
|
(30,856)
|
|
|
|
(126,278)
|
|
(106,227)
|
|
|
|
|
Real estate
taxes
|
|
(39,481)
|
|
(40,161)
|
|
|
|
(158,015)
|
|
(158,275)
|
|
|
|
|
|
|
|
|
(78,797)
|
|
(71,017)
|
|
11.0%
|
|
(284,293)
|
|
(264,502)
|
|
7.5%
|
|
Same property
NOI
|
|
$
198,130
|
|
$
180,576
|
|
9.7%
|
|
$
779,606
|
|
$
715,889
|
|
8.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI margin
|
|
|
71.5%
|
|
71.8%
|
|
|
|
73.3%
|
|
73.0%
|
|
|
|
Expense recovery
ratio
|
|
|
83.8%
|
|
86.2%
|
|
|
|
85.5%
|
|
89.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
3,580
|
|
2.0%
|
|
|
|
$
976
|
|
0.1%
|
|
|
|
|
Base rent - COVID-19
rent deferrals (lease modifications) and rent abatements
|
|
1,635
|
|
0.9%
|
|
|
|
1,770
|
|
0.3%
|
|
|
|
|
Revenues deemed
uncollectible
|
|
11,160
|
|
6.2%
|
|
|
|
65,077
|
|
9.1%
|
|
|
|
|
Net expense
reimbursements
|
|
(2,930)
|
|
(1.6%)
|
|
|
|
(12,815)
|
|
(1.8%)
|
|
|
|
|
Ancillary and other
rental income / Other revenues
|
|
3,395
|
|
1.8%
|
|
|
|
6,959
|
|
1.0%
|
|
|
|
|
Percentage
rents
|
|
714
|
|
0.4%
|
|
|
|
1,750
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
9.7%
|
|
|
|
|
|
8.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to Same Property NOI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same property
NOI
|
|
$
198,130
|
|
$
180,576
|
|
|
|
$
779,606
|
|
$
715,889
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-same property
NOI
|
|
10,233
|
|
10,684
|
|
|
|
43,602
|
|
49,453
|
|
|
|
|
Lease termination
fees
|
|
1,184
|
|
1,710
|
|
|
|
8,640
|
|
6,238
|
|
|
|
|
Straight-line rental
income, net
|
|
3,924
|
|
(325)
|
|
|
|
14,551
|
|
(11,858)
|
|
|
|
|
Accretion of
below-market leases, net of amortization of above-market leases and
tenant inducements
|
1,895
|
|
3,272
|
|
|
|
8,221
|
|
13,074
|
|
|
|
|
Straight-line ground
rent expense
|
|
(14)
|
|
(46)
|
|
|
|
(134)
|
|
(151)
|
|
|
|
|
Depreciation and
amortization
|
|
(80,796)
|
|
(84,249)
|
|
|
|
(327,152)
|
|
(335,583)
|
|
|
|
|
Impairment of real
estate assets
|
|
-
|
|
(3,245)
|
|
|
|
(1,898)
|
|
(19,551)
|
|
|
|
|
General and
administrative
|
|
(29,039)
|
|
(23,499)
|
|
|
|
(105,454)
|
|
(98,280)
|
|
|
|
|
Total other
expense
|
|
(24,274)
|
|
(60,474)
|
|
|
|
(149,795)
|
|
(198,058)
|
|
|
|
Net income
|
|
$
81,243
|
|
$
24,404
|
|
|
|
$
270,187
|
|
$
121,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Brixmor Property Group Inc.