NEW
YORK, Aug. 1, 2022 /PRNewswire/ -- Brixmor
Property Group Inc. (NYSE: BRX) ("Brixmor" or the "Company")
announced today its operating results for the three and six months
ended June 30, 2022. For the
three months ended June 30, 2022 and
2021, net income was $0.29 per
diluted share and $0.30 per diluted
share, respectively.
Key highlights for the three months ended June 30, 2022 include:
- Executed 2.0 million square feet of new and renewal leases,
with rent spreads on comparable space of 14.6%, including 0.9
million square feet of new leases, with rent spreads on comparable
space of 34.3%
- Sequentially increased total leased occupancy to 92.5%, anchor
leased occupancy to 94.8%, and small shop leased occupancy of
87.7%
-
- Small shop leased occupancy of 87.7% reflects a 70 basis point
sequential improvement and represents a new record for the
portfolio
- Leased to billed occupancy spread totaled 350 basis points
- Total signed but not yet commenced lease population represented
2.8 million square feet and $53.8
million of annualized base rent
- Reported an increase in same property NOI of 6.7%
-
- The contribution from base rent - excluding COVID-19 rent
deferrals (lease modifications) and rent abatements accelerated 90
basis points this quarter to 370 basis points
- Reported Nareit FFO of $148.9
million, or $0.49 per diluted
share
- Stabilized $39.0 million of
reinvestment projects at an average incremental NOI yield of 11%,
with the in process reinvestment pipeline totaling $398.2 million at an expected average incremental
NOI yield of 9%
- Completed $251.1 million of
acquisitions and $84.5 million of
dispositions
- Amended and restated the Company's unsecured credit facilities,
increasing the total amount available by $200 million to $1.75
billion, while extending the maturities and lowering
pricing
- Received a credit rating upgrade from Fitch Ratings to 'BBB'
from 'BBB-', with a stable outlook
- Published the Company's annual Corporate Responsibility Report
(view the 2021 report at
https://www.brixmor.com/why-brixmor/corporate-responsibility)
Subsequent events:
- Completed $26.1 million of
dispositions
- Updated previously provided NAREIT FFO per diluted share
expectations for 2022 to $1.93 -
$1.97 from $1.88 - $1.95 and
same property NOI growth expectations for 2022 to 5.5% - 6.0% from
3.0% - 4.5%
"We are tremendously pleased to deliver another strong quarter
of outperformance, driven by the execution of our value added
business plan," commented James
Taylor, CEO and President. "That performance is reflected in
growth in traffic to our centers, strong leasing volumes,
compelling lease spreads and net effective rents, record small shop
occupancy, record average in place ABR PSF, and strong NOI and
bottom line FFO growth. Importantly, these same results, coupled
with our forward leasing and reinvestment pipelines, provide great
visibility on our continued growth."
FINANCIAL HIGHLIGHTS
Net Income
- For the three months ended June 30,
2022 and 2021, net income was $87.8
million, or $0.29 per diluted
share, and $90.4 million, or
$0.30 per diluted share,
respectively.
- For the six months ended June 30,
2022 and 2021, net income was $167.3
million, or $0.56 per diluted
share, and $142.8 million, or
$0.48 per diluted share,
respectively.
Nareit FFO
- For the three months ended June 30,
2022 and 2021, Nareit FFO was $148.9
million, or $0.49 per diluted
share, and $138.6 million, or
$0.46 per diluted share,
respectively. Results for the three months ended June 30, 2022 and 2021 include items that impact
FFO comparability, including transaction expenses, litigation and
other non-routine legal expenses, and loss on extinguishment of
debt, net, of $(1.4) million, or
$(0.00) per diluted share, and
$(0.5) million, or $(0.00) per diluted share, respectively.
- For the six months ended June 30,
2022 and 2021, Nareit FFO was $294.3
million, or $0.98 per diluted
share, and $269.2 million, or
$0.90 per diluted share,
respectively. Results for the six months ended June 30, 2022 and 2021 include items that impact
FFO comparability, including transaction expenses, litigation and
other non-routine legal expenses, and loss on extinguishment of
debt, net, of $(1.4) million, or
$(0.00) per diluted share, and
$(3.6) million, or $(0.01) per diluted share, respectively.
Same Property NOI Performance
- For the three months ended June 30,
2022, the Company reported an increase in same property NOI
of 6.7% versus the comparable 2021 period.
- For the six months ended June 30,
2022, the Company reported an increase in same property NOI
of 7.6% versus the comparable 2021 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 third quarter of 2022.
- The dividend is payable on October 17,
2022 to stockholders of record on October 4, 2022, representing an ex-dividend date
of October 3, 2022.
PORTFOLIO AND INVESTMENT ACTIVITY
Value Enhancing Reinvestment Opportunities
- During the three months ended June 30,
2022, the Company stabilized five value enhancing
reinvestment projects with a total aggregate net cost of
approximately $39.0 million at an
average incremental NOI yield of 11% and added six new reinvestment
projects to its in process pipeline. Projects added include four
anchor space repositioning projects and two outparcel development
projects, with a total aggregate net estimated cost of
approximately $19.2 million at an
expected average incremental NOI yield of 10%.
- At June 30, 2022, the value
enhancing reinvestment in process pipeline was comprised of 55
projects with an aggregate net estimated cost of approximately
$398.2 million at an expected average
incremental NOI yield of 9%. The in process pipeline includes 18
anchor space repositioning projects with an aggregate net estimated
cost of approximately $78.5 million
at an expected incremental NOI yield of 7% - 14%; 14 outparcel
development projects with an aggregate net estimated cost of
approximately $26.2 million at an
expected average incremental NOI yield of 10%; and 23 redevelopment
projects with an aggregate net estimated cost of approximately
$293.5 million at an expected average
incremental NOI yield of 9%.
- An in-depth review of a recent redevelopment project, which
highlights the Company's reinvestment capabilities, Village at Mira
Mesa (San Diego-Chula
Vista-Carlsbad, CA MSA), can be
found at this link:
https://www.brixmor.com/blog/village-at-mira-mesa-jim-taylor.
- Follow Brixmor on LinkedIn for video updates on reinvestment
projects at https://www.linkedin.com/company/brixmor.
Acquisitions
- During the three months ended June 30,
2022, the Company acquired four shopping centers and one
outparcel at an existing property for a combined purchase price of
$251.1 million, including:
-
- Elmhurst Crossing (previously announced), located in
Elmhurst, Illinois (Chicago-Naperville-Elgin,
IL-IN-WI MSA).
- North Riverside Plaza (previously announced), located in
North Riverside, Illinois
(Chicago-Naperville-Elgin,
IL-IN-WI MSA).
- West U Marketplace (previously announced), located in
Houston, Texas (Houston-The Woodlands-Sugar Land, TX MSA).
- Lake Pointe Village, a 162,263 square foot grocery-anchored
community shopping center located in Sugar Land, Texas (Houston-The Woodlands-Sugar Land, TX MSA), for $81.0 million in June
2022. Lake Pointe Village is anchored by a highly-productive
Whole Foods Market and has compelling near-term leasing and
densification opportunities. The property is located in a
high-income submarket within ten miles of seven other Brixmor
assets and will benefit from leasing and operational synergies
resulting from the Company's clustered presence in the trade
area.
- During the six months ended June 30,
2022, the Company acquired seven shopping centers, one land
parcel at an existing property, and one outparcel at an existing
property, for a combined purchase price of $410.6 million.
Dispositions
- During the three months ended June 30,
2022, the Company generated approximately $84.5 million of gross proceeds on the
disposition of five shopping centers, as well as three partial
properties, comprised of 1.1 million square feet of gross leasable
area.
- During the six months ended June 30,
2022, the Company generated approximately $145.5 million of gross proceeds on the
disposition of ten shopping centers, as well as four partial
properties, comprised of 1.7 million square feet of gross leasable
area.
- Subsequent to June 30, 2022, the
Company disposed of one shopping center, as well as one partial
property, for $26.1 million of gross
proceeds.
CAPITAL STRUCTURE
- During the three months ended June 30,
2022, the Company raised approximately $3.7 million in gross proceeds, excluding
commissions, from the sale of approximately 0.1 million shares of
common stock at an average price per share of $26.29 through its at-the-market ("ATM") equity
offering program.
- During the six months ended June 30,
2022, the Company raised approximately $48.1 million in gross proceeds, excluding
commissions, from the sale of approximately 1.9 million shares of
common stock at an average price per share of $25.55 through its ATM equity offering
program.
- As previously announced, on April 28,
2022, the Company's operating partnership, Brixmor Operating
Partnership LP, amended and restated its $1.25 billion revolving credit facility and
$300 million term loan facility,
while adding a new $200 million
delayed draw term loan facility. The restated unsecured credit
facilities extend the maturity of the revolving credit facility to
June 2026, extend the maturity of the
term loan facility to July 2027, and
improve the pricing of the unsecured credit facilities.
- The Company has $1.2 billion in
liquidity and no debt maturities until June
2024.
GUIDANCE
- The Company has updated its previously provided NAREIT FFO per
diluted share expectations for 2022 to $1.93 - $1.97 from
$1.88 - $1.95 and its same property NOI growth
expectations for 2022 to 5.5% - 6.0% from 3.0% - 4.5%.
- Expectations for 2022 same property NOI growth include a:
-
- Contribution from base rent of approximately 450 bps
- Contribution from revenues deemed uncollectible of
approximately 0 bps to 50 bps
- Contribution from all other line items of approximately 100
bps
- Expectations for 2022 Nareit FFO:
-
- Do not contemplate any additional 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 additional items that impact FFO
comparability, including litigation and other non-routine legal
expenses, loss on extinguishment of debt, and transaction expenses,
or any one-time items
- 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
|
|
$285 - $298
|
|
$0.95 -
$0.99
|
Depreciation and
amortization related to real estate
|
|
335
|
|
1.11
|
Gain on sale of real
estate assets
|
|
(45)
|
|
(0.15)
|
Impairment of real
estate assets
|
|
5
|
|
0.02
|
Nareit
FFO
|
|
$580 -
$593
|
|
$1.93 -
$1.97
|
CONNECT WITH BRIXMOR
- For additional information, please visit
https://www.brixmor.com;
- Follow Brixmor on:
-
- Twitter at https://www.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, August 2, 2022 at 10:00 AM ET. To participate, please dial
877.704.4453 (domestic) or 201.389.0920 (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
August 16, 2022 by dialing
844.512.2921 (domestic) or 412.317.6671 (international) (Passcode:
13730173) or via the web through August 2,
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, net, 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 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, net 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 379 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. 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
|
|
|
|
|
|
6/30/22
|
|
12/31/21
|
|
Assets
|
|
|
|
|
|
Real estate
|
|
|
|
|
|
|
Land
|
$
1,834,558
|
|
$
1,773,448
|
|
|
|
Buildings and tenant
improvements
|
8,328,668
|
|
8,009,320
|
|
|
|
Construction in
progress
|
106,802
|
|
101,422
|
|
|
|
Lease
intangibles
|
557,519
|
|
544,224
|
|
|
|
|
|
10,827,547
|
|
10,428,414
|
|
|
|
Accumulated
depreciation and amortization
|
(2,885,202)
|
|
(2,813,329)
|
|
|
Real estate,
net
|
7,942,345
|
|
7,615,085
|
|
|
Cash and cash
equivalents
|
16,828
|
|
296,632
|
|
|
Restricted
cash
|
11,928
|
|
1,111
|
|
|
Marketable
securities
|
19,661
|
|
20,224
|
|
|
Receivables,
net
|
245,459
|
|
234,873
|
|
|
Deferred charges and
prepaid expenses, net
|
151,897
|
|
143,503
|
|
|
Real estate assets held
for sale
|
23,201
|
|
16,131
|
|
|
Other assets
|
58,406
|
|
49,834
|
|
Total assets
|
$
8,469,725
|
|
$
8,377,393
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Debt obligations,
net
|
$
5,148,480
|
|
$
5,164,518
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
518,252
|
|
494,529
|
|
Total
liabilities
|
5,666,732
|
|
5,659,047
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Common stock, $0.01 par
value; authorized 3,000,000,000 shares;
|
|
|
|
|
|
|
308,796,008 and
306,337,045 shares issued and 299,669,016 and
297,210,053
|
|
|
|
|
|
|
shares
outstanding
|
2,997
|
|
2,972
|
|
|
Additional paid-in
capital
|
3,279,775
|
|
3,231,732
|
|
|
Accumulated other
comprehensive income (loss)
|
2,298
|
|
(12,674)
|
|
|
Distributions in excess
of net income
|
(482,077)
|
|
(503,684)
|
|
Total equity
|
2,802,993
|
|
2,718,346
|
|
Total liabilities and
equity
|
$
8,469,725
|
|
$
8,377,393
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
Unaudited, dollars in
thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
6/30/22
|
|
6/30/21
|
|
6/30/22
|
|
6/30/21
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Rental
income
|
$
305,898
|
|
$
286,933
|
|
$
604,260
|
|
$
563,394
|
|
|
Other
revenues
|
233
|
|
91
|
|
500
|
|
3,376
|
|
Total
revenues
|
306,131
|
|
287,024
|
|
604,760
|
|
566,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
34,497
|
|
28,755
|
|
69,293
|
|
60,140
|
|
|
Real estate
taxes
|
42,304
|
|
42,257
|
|
83,944
|
|
85,145
|
|
|
Depreciation and
amortization
|
85,137
|
|
81,212
|
|
169,359
|
|
164,632
|
|
|
Impairment of real
estate assets
|
7
|
|
431
|
|
4,597
|
|
1,898
|
|
|
General and
administrative
|
29,702
|
|
26,461
|
|
57,702
|
|
51,106
|
|
Total operating
expenses
|
191,647
|
|
179,116
|
|
384,895
|
|
362,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Dividends and
interest
|
35
|
|
104
|
|
110
|
|
191
|
|
|
Interest
expense
|
(47,886)
|
|
(49,689)
|
|
(95,208)
|
|
(98,683)
|
|
|
Gain on sale of real
estate assets
|
22,988
|
|
32,603
|
|
44,899
|
|
38,367
|
|
|
Loss on extinguishment
of debt, net
|
(221)
|
|
(32)
|
|
(221)
|
|
(1,229)
|
|
|
Other
|
(1,609)
|
|
(466)
|
|
(2,148)
|
|
304
|
|
Total other
expense
|
(26,693)
|
|
(17,480)
|
|
(52,568)
|
|
(61,050)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
87,791
|
|
$
90,428
|
|
$
167,297
|
|
$
142,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
0.29
|
|
$
0.30
|
|
$
0.56
|
|
$
0.48
|
|
|
Diluted
|
|
|
$
0.29
|
|
$
0.30
|
|
$
0.56
|
|
$
0.48
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
299,992
|
|
297,216
|
|
299,246
|
|
297,196
|
|
|
Diluted
|
|
|
301,094
|
|
298,277
|
|
300,360
|
|
298,222
|
|
|
|
|
|
|
|
|
|
|
|
|
FUNDS FROM
OPERATIONS (FFO)
|
|
|
|
|
|
|
|
Unaudited, dollars in
thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
6/30/22
|
|
6/30/21
|
|
6/30/22
|
|
6/30/21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
87,791
|
|
$
90,428
|
|
$
167,297
|
|
$
142,799
|
|
|
Depreciation and
amortization related to real estate
|
84,089
|
|
80,368
|
|
167,279
|
|
162,823
|
|
|
Gain on sale of real
estate assets
|
(22,988)
|
|
(32,603)
|
|
(44,899)
|
|
(38,367)
|
|
|
Impairment of real
estate assets
|
7
|
|
431
|
|
4,597
|
|
1,898
|
|
NAREIT FFO
|
$
148,899
|
|
$
138,624
|
|
$
294,274
|
|
$
269,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAREIT FFO per diluted
share
|
$
0.49
|
|
$
0.46
|
|
$
0.98
|
|
$
0.90
|
|
Weighted average
diluted shares outstanding
|
301,094
|
|
298,277
|
|
300,360
|
|
298,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that impact FFO
comparability
|
|
|
|
|
|
|
|
|
|
Litigation and other
non-routine legal expenses
|
$
(848)
|
|
$
(17)
|
|
$
(881)
|
|
$
(49)
|
|
|
Loss on extinguishment
of debt, net
|
(335)
|
|
(498)
|
|
(335)
|
|
(2,329)
|
|
|
Transaction
expenses
|
(221)
|
|
(32)
|
|
(221)
|
|
(1,229)
|
|
Total items that impact
FFO comparability
|
$
(1,404)
|
|
$
(547)
|
|
$
(1,437)
|
|
$
(3,607)
|
|
Items that impact FFO
comparability, net per share
|
$
(0.00)
|
|
$
(0.00)
|
|
$
(0.00)
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
Disclosures
|
|
|
|
|
|
|
|
|
|
Straight-line rental
income, net (1)
|
$
6,751
|
|
$
3,404
|
|
$
11,490
|
|
$
5,676
|
|
|
Accretion of
below-market leases, net of amortization of above-market leases
and
tenant inducements
|
2,160
|
|
3,368
|
|
4,204
|
|
4,352
|
|
|
Straight-line ground
rent expense, net (2)
|
(173)
|
|
(42)
|
|
(165)
|
|
(88)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share
|
$
0.240
|
|
$
0.215
|
|
$
0.480
|
|
$
0.430
|
|
Dividends
declared
|
$
71,921
|
|
$
63,850
|
|
$
143,798
|
|
$
127,694
|
|
Dividend payout ratio
(as % of NAREIT FFO)
|
48.3 %
|
|
46.1 %
|
|
48.9 %
|
|
47.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
straight-line rental income reversals and re-establishments
associated with the conversion of tenants between the cash and
accrual bases of accounting of ($0.1 million) and
($0.7 million) during the three months ended June 30, 2022 and
2021, respectively. Includes straight-line rental income reversals
and re-establishments associated with the conversion of
tenants between the cash and accrual bases of accounting of ($0.2
million) and ($2.3 million) during the six months ended June 30,
2022 and 2021, respectively.
|
(2) Straight-line
ground rent expense, net is included in Operating costs on the
Consolidated Statements of Operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME PROPERTY NOI
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited, dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
6/30/22
|
|
6/30/21
|
|
Change
|
|
6/30/22
|
|
6/30/21
|
|
Change
|
|
Same Property NOI
Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
properties
|
|
356
|
|
356
|
|
-
|
|
354
|
|
354
|
|
-
|
|
Percent
billed
|
|
88.9 %
|
|
88.0 %
|
|
0.9 %
|
|
88.9 %
|
|
87.9 %
|
|
1.0 %
|
|
Percent
leased
|
|
92.5 %
|
|
91.1 %
|
|
1.4 %
|
|
92.5 %
|
|
91.1 %
|
|
1.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base rent
|
|
$
202,905
|
|
$
194,565
|
|
|
|
$
401,979
|
|
$
386,060
|
|
|
|
|
Expense
reimbursements
|
|
60,974
|
|
57,250
|
|
|
|
121,956
|
|
116,870
|
|
|
|
|
Revenues deemed
uncollectible
|
|
5,035
|
|
2,139
|
|
|
|
7,189
|
|
(2,006)
|
|
|
|
|
Ancillary and other
rental income / Other revenues
|
|
5,833
|
|
4,527
|
|
|
|
11,403
|
|
8,976
|
|
|
|
|
Percentage
rents
|
|
2,394
|
|
1,443
|
|
|
|
5,652
|
|
3,455
|
|
|
|
|
|
|
|
|
277,141
|
|
259,924
|
|
6.6 %
|
|
548,179
|
|
513,355
|
|
6.8 %
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
(31,941)
|
|
(26,840)
|
|
|
|
(64,335)
|
|
(55,942)
|
|
|
|
|
Real estate
taxes
|
|
(39,037)
|
|
(39,803)
|
|
|
|
(77,780)
|
|
(79,966)
|
|
|
|
|
|
|
|
|
(70,978)
|
|
(66,643)
|
|
6.5 %
|
|
(142,115)
|
|
(135,908)
|
|
4.6 %
|
|
Same property
NOI
|
|
$
206,163
|
|
$
193,281
|
|
6.7 %
|
|
$
406,064
|
|
$
377,447
|
|
7.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI margin
|
|
|
|
74.4 %
|
|
74.4 %
|
|
|
|
74.1 %
|
|
73.5 %
|
|
|
|
Expense recovery
ratio
|
|
|
|
85.9 %
|
|
85.9 %
|
|
|
|
85.8 %
|
|
86.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
7,079
|
|
3.7 %
|
|
|
|
$
12,324
|
|
3.3 %
|
|
|
|
|
Base rent - COVID-19
rent deferrals (lease modifications) and rent abatements
|
|
1,261
|
|
0.6 %
|
|
|
|
3,595
|
|
1.0 %
|
|
|
|
|
Revenues deemed
uncollectible
|
|
2,896
|
|
1.5 %
|
|
|
|
9,195
|
|
2.4 %
|
|
|
|
|
Net expense
reimbursements
|
|
(611)
|
|
(0.3 %)
|
|
|
|
(1,121)
|
|
(0.3 %)
|
|
|
|
|
Ancillary and other
rental income / Other revenues
|
|
1,306
|
|
0.7 %
|
|
|
|
2,427
|
|
0.6 %
|
|
|
|
|
Percentage
rents
|
|
951
|
|
0.5 %
|
|
|
|
2,197
|
|
0.6 %
|
|
|
|
|
|
|
|
|
|
|
6.7 %
|
|
|
|
|
|
7.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to Same Property NOI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same property
NOI
|
|
$
206,163
|
|
$
193,281
|
|
|
|
$
406,064
|
|
$
377,447
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-same property
NOI
|
|
13,499
|
|
11,928
|
|
|
|
27,870
|
|
28,641
|
|
|
|
|
Lease termination
fees
|
|
930
|
|
4,073
|
|
|
|
2,060
|
|
5,457
|
|
|
|
|
Straight-line rental
income, net
|
|
6,751
|
|
3,404
|
|
|
|
11,490
|
|
5,676
|
|
|
|
|
Accretion of
below-market leases, net of amortization of above-market leases
and
tenant inducements
|
|
2,160
|
|
3,368
|
|
|
|
4,204
|
|
4,352
|
|
|
|
|
Straight-line ground
rent expense, net
|
|
(173)
|
|
(42)
|
|
|
|
(165)
|
|
(88)
|
|
|
|
|
Depreciation and
amortization
|
|
(85,137)
|
|
(81,212)
|
|
|
|
(169,359)
|
|
(164,632)
|
|
|
|
|
Impairment of real
estate assets
|
|
(7)
|
|
(431)
|
|
|
|
(4,597)
|
|
(1,898)
|
|
|
|
|
General and
administrative
|
|
(29,702)
|
|
(26,461)
|
|
|
|
(57,702)
|
|
(51,106)
|
|
|
|
|
Total other
expense
|
|
(26,693)
|
|
(17,480)
|
|
|
|
(52,568)
|
|
(61,050)
|
|
|
|
Net income
|
|
$
87,791
|
|
$
90,428
|
|
|
|
$
167,297
|
|
$
142,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/brixmor-property-group-reports-second-quarter-2022-results-301597138.html
SOURCE Brixmor Property Group Inc.