- Delivered Record Total and Small Shop
Leased Occupancy -
NEW
YORK, Feb. 13, 2023 /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, 2022.
For the three months ended December 31,
2022 and 2021, net income was $0.35 per diluted share and $0.27 per diluted share, respectively, and for
the twelve months ended December 31,
2022 and 2021, net income was $1.17 per diluted share and $0.90 per diluted share, respectively.
Key highlights for the three months ended December 31, 2022 include:
- Executed 2.0 million square feet of new and renewal leases,
with rent spreads on comparable space of 18.3%, including 0.9
million square feet of new leases, with rent spreads on comparable
space of 43.8%
- Sequentially increased total leased occupancy to a record
93.8%, anchor leased occupancy to 95.9%, and small shop leased
occupancy to a record 89.2%
-
- Small shop leased occupancy of 89.2% reflects an increase of 40
basis points sequentially and 250 basis points compared to
December 31, 2021
- Leased to billed occupancy spread totaled 360 basis points
- Total signed but not yet commenced lease population represented
2.9 million square feet and $54.7
million of annualized base rent
- Reported an increase in same property NOI of 7.3%
-
- The contribution from base rent - excluding COVID-19 rent
deferrals (lease modifications) and rent abatements accelerated 50
basis points this quarter to 490 basis points
- Reported Nareit FFO of $147.0
million, or $0.49 per diluted
share
- Stabilized $66.7 million of
reinvestment projects at an average incremental NOI yield of 9%,
with the in process reinvestment pipeline totaling $342.9 million at an expected average incremental
NOI yield of 9%
- Completed $112.8 million of
dispositions
- Renewed the Company's $400
million share repurchase program and $400 million ATM stock offering program
Key highlights for the twelve months ended December 31, 2022 include:
- Executed 7.1 million square feet of new and renewal leases,
with rent spreads on comparable space of 16.0%, including 3.3
million square feet of new leases, with rent spreads on comparable
space of 37.0%
- Reported an increase in same property NOI of 6.6%
- Reported Nareit FFO of $588.9
million, or $1.95 per diluted
share
-
- Results included approximately $23.9
million of out-of-period collections related to prior
years
- Stabilized $179.3 million of
reinvestment projects at an average incremental NOI yield of
10%
- Completed $410.6 million of
acquisitions and $287.4 million of
dispositions
- Amended and restated the Company's unsecured credit facilities
on April 28, 2022, increasing the
total amount available by $200
million to $1.75 billion,
while extending the maturities and lowering pricing
- Received a credit rating upgrade on April 28, 2022 from Fitch Ratings to 'BBB' from
'BBB-', with a stable outlook, and received a positive credit
rating outlook on March 3, 2022 from
S&P Global Ratings
- Published the Company's annual Corporate Responsibility Report
on June 17, 2022 (view the 2021
report at
https://www.brixmor.com/why-brixmor/corporate-responsibility)
Subsequent events:
- Provided 2023 Nareit FFO per diluted share expectations of
$1.95 - $2.03 and same property NOI growth expectations
of 1.5% - 3.5%
- Completed $25.9 million of
dispositions
"We are pleased to report another quarter and full year of
outstanding performance driven by the team's execution of our value
added plan and portfolio transformation," commented James Taylor, CEO and President. "Our momentum
continues, with a robust leasing pipeline, strong market share with
leading retailers, accretive reinvestment projects, and attractive
rent basis that collectively position us for growth and value
creation in 2023 and beyond."
FINANCIAL HIGHLIGHTS
Net Income
- For the three months ended December 31,
2022 and 2021, net income was $107.2
million, or $0.35 per diluted
share, and $81.2 million, or
$0.27 per diluted share,
respectively.
- For the twelve months ended December 31,
2022 and 2021, net income was $354.2
million, or $1.17 per diluted
share, and $270.2 million, or
$0.90 per diluted share,
respectively.
Nareit FFO
- For the three months ended December 31,
2022 and 2021, Nareit FFO was $147.0
million, or $0.49 per diluted
share, and $137.4 million, or
$0.46 per diluted share,
respectively. Results for the three months ended December 31, 2022 and 2021 include items that
impact FFO comparability, including transaction expenses, net,
litigation and other non-routine legal expenses, and loss on
extinguishment of debt, net, of $0.0
million, or $0.00 per diluted
share, and $(0.3) million, or
$(0.00) per diluted share,
respectively.
- For the twelve months ended December 31,
2022 and 2021, Nareit FFO was $588.9
million, or $1.95 per diluted
share, and $522.3 million, or
$1.75 per diluted share,
respectively. Results for the twelve months ended December 31, 2022 and 2021 include items that
impact FFO comparability, including transaction expenses, net,
litigation and other non-routine legal expenses, and loss on
extinguishment of debt, net, of $(1.8)
million, or $(0.01) per
diluted share, and $(31.3) million,
or $(0.10) per diluted share,
respectively.
Same Property NOI Performance
- For the three months ended December 31,
2022, the Company reported an increase in same property NOI
of 7.3% versus the comparable 2021 period.
- For the twelve months ended December 31,
2022, the Company reported an increase in same property NOI
of 6.6% versus the comparable 2021 period.
Dividend
- The Company's Board of Directors declared a quarterly cash
dividend of $0.26 per common share
(equivalent to $1.04 per annum) for
the first quarter of 2023.
- The dividend is payable on April 17,
2023 to stockholders of record on April 4, 2023, representing an ex-dividend date
of April 3, 2023.
PORTFOLIO AND INVESTMENT ACTIVITY
Value Enhancing Reinvestment Opportunities
- During the three months ended December
31, 2022, the Company stabilized 12 value enhancing
reinvestment projects with a total aggregate net cost of
approximately $66.7 million at an
average incremental NOI yield of 9% and added seven new
reinvestment projects to its in process pipeline. Projects added
include four anchor space repositioning projects and three
outparcel development projects with a total aggregate net estimated
cost of approximately $8.0 million at
an expected average incremental NOI yield of 11%.
- At December 31, 2022, the value
enhancing reinvestment in process pipeline was comprised of 48
projects with an aggregate net estimated cost of approximately
$342.9 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 $56.2 million
at an expected incremental NOI yield of 7% - 14%; 11 outparcel
development projects with an aggregate net estimated cost of
approximately $18.3 million at an
expected average incremental NOI yield of 9%; and 19 redevelopment
projects with an aggregate net estimated cost of approximately
$268.4 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, Cudahy Plaza (Los Angeles-Long
Beach-Anaheim, CA CBSA), can be
found at this link:
https://www.brixmor.com/blog/cudahy-plaza-with-jim-and-tyler.
- Follow Brixmor on LinkedIn for video updates on reinvestment
projects at https://www.linkedin.com/company/brixmor.
Acquisitions
- During the three months ended December
31, 2022, the Company did not complete any
acquisitions.
- During the twelve months ended December
31, 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 December
31, 2022, the Company generated approximately $112.8 million of gross proceeds on the
disposition of five shopping centers, as well as three partial
properties, comprised of 0.8 million square feet of gross leasable
area.
- During the twelve months ended December
31, 2022, the Company generated approximately $287.4 million of gross proceeds on the
disposition of 16 shopping centers, as well as ten partial
properties, comprised of 2.8 million square feet of gross leasable
area.
- Subsequent to December 31, 2022,
the Company disposed of two shopping centers, as well as one
partial property, for approximately $25.9
million of gross proceeds.
CAPITAL STRUCTURE
- During the three months ended December
31, 2022, the Company renewed its $400 million share repurchase program and its
$400 million ATM equity offering
program, which together will continue to provide Brixmor with
maximum flexibility to capitalize on a wide range of potential
capital markets environments and support the long-term execution of
its balanced business plan.
- During the twelve months ended December
31, 2022, the Company raised approximately $53.9 million in gross proceeds, excluding
commissions, from the sale of approximately 2.1 million shares of
common stock at an average price per share of $25.40 through its prior ATM equity offering
program.
- At December 31, 2022, the Company
had $1.3 billion in liquidity and no
debt maturities until June 2024.
GUIDANCE
- The Company expects 2023 Nareit FFO per diluted share of
$1.95 - $2.03 and same property NOI growth of 1.5% -
3.5%
- Expectations for 2023 same property NOI growth include a:
-
- Revenues deemed uncollectible is expected to total 75 - 110 bps
of total expected revenues in 2023
- Contribution from base rent of 350 - 450 bps
- Detraction from revenues deemed uncollectible of (200) bps -
(150) bps
- Contribution from all other line items of 0 - 50 bps
- Expectations for 2023 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 transaction expenses, net, litigation and
other non-routine legal expenses, and loss on extinguishment of
debt, net or any one-time items
- The following table provides a bridge from the Company's 2022
Nareit FFO per diluted share to the Company's 2023 estimated Nareit
FFO per diluted share:
|
|
Low
|
|
High
|
2022 Nareit FFO per
diluted share
|
|
$1.95
|
|
$1.95
|
Same property NOI
growth
|
|
0.04
|
|
0.10
|
Impact of 2022 and
2023 transaction activity
|
|
(0.01)
|
|
(0.01)
|
Other
1
|
|
(0.02)
|
|
(0.01)
|
Non-cash GAAP rental
adjustments 2
|
|
(0.01)
|
|
0.00
|
2023E Nareit FFO per
diluted share
|
|
$1.95
|
|
$2.03
|
- Includes non-same property NOI, lease termination fees,
non-real estate depreciation and amortization, general and
administrative expense, dividend and interest, interest expense,
loss on extinguishment of debt, net, and other income
(expense).
- 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 2023 estimated net income to Nareit FFO:
(Unaudited, dollars
in millions, except per share amounts)
|
|
2023E
|
|
2023E Per
Diluted Share
|
Net income
|
|
$232 - $256
|
|
$0.77 -
$0.85
|
Depreciation and
amortization related to real estate
|
|
356
|
|
1.18
|
Nareit
FFO
|
|
$588 -
$612
|
|
$1.95 -
$2.03
|
CONNECT WITH BRIXMOR
- For additional information, please visit
https://www.brixmor.com;
- Follow Brixmor on:
-
- 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 14, 2023 at 9:30 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
February 28, 2023 by dialing
844.512.2921 (domestic) or 412.317.6671 (international) (Passcode:
13734571) or via the web through February
14, 2024 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 measures 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 net income to
these non-GAAP performance measures 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) lease
termination fees, (ii) straight-line rental income, net, (iii)
accretion of below-market leases, net of amortization of
above-market leases and tenant inducements, (iv) straight-line
ground rent expense, net, and (v) income or expense associated with
the Company's captive insurance company, (vi) depreciation and
amortization, (vii) impairment of real estate assets, (viii)
general and administrative expense, and (ix) other income and
expense (including gain on sale of real estate assets). 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 lease termination fees,
straight-line rental income, net, accretion of below-market leases,
net of amortization of above-market leases and tenant inducements,
straight-line ground rent expense, net, income or expense
associated with the Company's captive insurance company,
depreciation and amortization, impairment of real estate assets,
general and administrative expense, and other income and expense
(including gain on sale of real estate assets), 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
373 retail centers comprise approximately 66 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, 2022, 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
|
|
|
|
|
|
12/31/22
|
|
12/31/21
|
|
Assets
|
|
|
|
|
|
|
Real estate
|
|
|
|
|
|
|
Land
|
$
1,820,358
|
|
$
1,773,448
|
|
|
|
Buildings and tenant
improvements
|
8,405,969
|
|
8,009,320
|
|
|
|
Construction in
progress
|
129,310
|
|
101,422
|
|
|
|
Lease
intangibles
|
542,714
|
|
544,224
|
|
|
|
|
|
10,898,351
|
|
10,428,414
|
|
|
|
Accumulated
depreciation and amortization
|
(2,996,759)
|
|
(2,813,329)
|
|
|
Real estate,
net
|
7,901,592
|
|
7,615,085
|
|
|
Cash and cash
equivalents
|
16,492
|
|
296,632
|
|
|
Restricted
cash
|
4,767
|
|
1,111
|
|
|
Marketable
securities
|
21,669
|
|
20,224
|
|
|
Receivables,
net
|
264,146
|
|
234,873
|
|
|
Deferred charges and
prepaid expenses, net
|
154,141
|
|
143,503
|
|
|
Real estate assets held
for sale
|
10,439
|
|
16,131
|
|
|
Other assets
|
62,684
|
|
49,834
|
|
Total assets
|
$
8,435,930
|
|
$
8,377,393
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Debt obligations,
net
|
$
5,035,501
|
|
$
5,164,518
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
535,419
|
|
494,529
|
|
Total
liabilities
|
5,570,920
|
|
5,659,047
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common stock, $0.01 par
value; authorized 3,000,000,000 shares;
|
|
|
|
|
|
|
309,042,754 and
306,337,045 shares issued and 299,915,762 and
297,210,053
|
|
|
|
|
|
|
shares
outstanding
|
2,999
|
|
2,972
|
|
|
Additional paid-in
capital
|
3,299,496
|
|
3,231,732
|
|
|
Accumulated other
comprehensive income (loss)
|
8,851
|
|
(12,674)
|
|
|
Distributions in excess
of net income
|
(446,336)
|
|
(503,684)
|
|
Total equity
|
2,865,010
|
|
2,718,346
|
|
Total liabilities and
equity
|
$
8,435,930
|
|
$
8,377,393
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
Unaudited, dollars in
thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
12/31/22
|
|
12/31/21
|
|
12/31/22
|
|
12/31/21
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Rental
income
|
$
308,459
|
|
$
292,897
|
|
$ 1,217,362
|
|
$ 1,146,304
|
|
|
Other
revenues
|
110
|
|
2,421
|
|
712
|
|
5,970
|
|
Total
revenues
|
308,569
|
|
295,318
|
|
1,218,074
|
|
1,152,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
38,816
|
|
39,128
|
|
141,408
|
|
132,042
|
|
|
Real estate
taxes
|
42,260
|
|
40,838
|
|
170,383
|
|
165,746
|
|
|
Depreciation and
amortization
|
90,599
|
|
80,796
|
|
344,731
|
|
327,152
|
|
|
Impairment of real
estate assets
|
1,127
|
|
-
|
|
5,724
|
|
1,898
|
|
|
General and
administrative
|
30,429
|
|
29,039
|
|
117,225
|
|
105,454
|
|
Total operating
expenses
|
203,231
|
|
189,801
|
|
779,471
|
|
732,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Dividends and
interest
|
116
|
|
57
|
|
314
|
|
299
|
|
|
Interest
expense
|
(48,493)
|
|
(47,175)
|
|
(192,427)
|
|
(194,776)
|
|
|
Gain on sale of real
estate assets
|
50,896
|
|
23,603
|
|
111,563
|
|
73,092
|
|
|
Loss on extinguishment
of debt, net
|
-
|
|
-
|
|
(221)
|
|
(28,345)
|
|
|
Other
|
(702)
|
|
(759)
|
|
(3,639)
|
|
(65)
|
|
Total other income
(expense)
|
1,817
|
|
(24,274)
|
|
(84,410)
|
|
(149,795)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
107,155
|
|
$
81,243
|
|
$
354,193
|
|
$
270,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
0.36
|
|
$
0.27
|
|
$
1.18
|
|
$
0.91
|
|
|
Diluted
|
|
|
$
0.35
|
|
$
0.27
|
|
$
1.17
|
|
$
0.90
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
300,474
|
|
297,490
|
|
299,938
|
|
297,408
|
|
|
Diluted
|
|
|
302,258
|
|
299,037
|
|
301,742
|
|
298,835
|
FUNDS FROM
OPERATIONS (FFO)
|
|
|
|
|
|
|
|
Unaudited, dollars in
thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
12/31/22
|
|
12/31/21
|
|
12/31/22
|
|
12/31/21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
107,155
|
|
$
81,243
|
|
$
354,193
|
|
$
270,187
|
|
|
Depreciation and
amortization related to real estate
|
89,570
|
|
79,753
|
|
340,561
|
|
323,354
|
|
|
Gain on sale of real
estate assets
|
(50,896)
|
|
(23,603)
|
|
(111,563)
|
|
(73,092)
|
|
|
Impairment of real
estate assets
|
1,127
|
|
-
|
|
5,724
|
|
1,898
|
|
Nareit FFO
|
$
146,956
|
|
$
137,393
|
|
$
588,915
|
|
$
522,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nareit FFO per diluted
share
|
$
0.49
|
|
$
0.46
|
|
$
1.95
|
|
$
1.75
|
|
Weighted average
diluted shares outstanding
|
302,258
|
|
299,037
|
|
301,742
|
|
298,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that impact FFO
comparability
|
|
|
|
|
|
|
|
|
|
Transaction expenses,
net
|
$
9
|
|
$
(192)
|
|
$
(1,122)
|
|
$
(395)
|
|
|
Litigation and other
non-routine legal expenses
|
(2)
|
|
(111)
|
|
(494)
|
|
(2,585)
|
|
|
Loss on extinguishment
of debt, net
|
-
|
|
-
|
|
(221)
|
|
(28,345)
|
|
Total items that impact
FFO comparability
|
$
7
|
|
$
(303)
|
|
$
(1,837)
|
|
$
(31,325)
|
|
Items that impact FFO
comparability, net per share
|
$
0.00
|
|
$
(0.00)
|
|
$
(0.01)
|
|
$
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
Disclosures
|
|
|
|
|
|
|
|
|
|
Straight-line rental
income, net (1)
|
$
5,575
|
|
$
3,924
|
|
$
23,458
|
|
$
14,551
|
|
|
Accretion of
below-market leases, net of amortization of above-market leases
and
tenant inducements
|
2,072
|
|
1,895
|
|
8,793
|
|
8,221
|
|
|
Straight-line ground
rent expense, net (2)
|
7
|
|
(14)
|
|
(160)
|
|
(134)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share
|
$
0.260
|
|
$
0.240
|
|
$
0.980
|
|
$
0.885
|
|
Dividends
declared
|
$
77,978
|
|
$
71,331
|
|
$
293,755
|
|
$
262,877
|
|
Dividend payout ratio
(as % of Nareit FFO)
|
53.1 %
|
|
51.9 %
|
|
49.9 %
|
|
50.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 ($1.0
million) and ($0.9 million) during the three months ended December
31, 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 ($1.2 million) and ($3.0 million)
during the twelve months ended December 31,
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
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
12/31/22
|
|
12/31/21
|
|
Change
|
|
12/31/22
|
|
12/31/21
|
|
Change
|
|
Same Property NOI
Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
properties
|
|
351
|
|
351
|
|
-
|
|
343
|
|
343
|
|
-
|
|
Percent
billed
|
|
90.3 %
|
|
88.8 %
|
|
1.5 %
|
|
90.3 %
|
|
88.7 %
|
|
1.6 %
|
|
Percent
leased
|
|
93.9 %
|
|
92.2 %
|
|
1.7 %
|
|
93.9 %
|
|
92.1 %
|
|
1.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base rent
|
|
$
208,084
|
|
$
198,232
|
|
|
|
$
799,674
|
|
$
765,238
|
|
|
|
Expense reimbursements
|
|
68,001
|
|
65,011
|
|
|
|
248,537
|
|
236,489
|
|
|
|
Revenues deemed uncollectible
|
|
(1,881)
|
|
20
|
|
|
|
4,514
|
|
1,395
|
|
|
|
Ancillary and other rental income / Other revenues
|
|
6,266
|
|
5,433
|
|
|
|
23,441
|
|
19,070
|
|
|
|
Percentage rents
|
|
1,837
|
|
1,224
|
|
|
|
8,675
|
|
5,499
|
|
|
|
|
|
|
|
|
282,307
|
|
269,920
|
|
4.6 %
|
|
1,084,841
|
|
1,027,691
|
|
5.6 %
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
(36,105)
|
|
(38,668)
|
|
|
|
(128,614)
|
|
(122,922)
|
|
|
|
Real estate
taxes
|
|
(39,772)
|
|
(38,801)
|
|
|
|
(156,175)
|
|
(154,356)
|
|
|
|
|
|
|
|
|
(75,877)
|
|
(77,469)
|
|
(2.1 %)
|
|
(284,789)
|
|
(277,278)
|
|
2.7 %
|
|
Same property
NOI
|
|
$
206,430
|
|
$
192,451
|
|
7.3 %
|
|
$
800,052
|
|
$
750,413
|
|
6.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI margin
|
|
|
|
|
73.1 %
|
|
71.3 %
|
|
|
|
73.7 %
|
|
73.0 %
|
|
|
|
Expense recovery
ratio
|
|
|
|
|
89.6 %
|
|
83.9 %
|
|
|
|
87.3 %
|
|
85.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
9,379
|
|
4.9 %
|
|
|
|
$
30,248
|
|
4.0 %
|
|
|
|
Base rent - COVID-19 rent deferrals (lease modifications) and
rent abatements
|
|
473
|
|
0.2 %
|
|
|
|
4,188
|
|
0.6 %
|
|
|
|
Revenues deemed uncollectible
|
|
(1,901)
|
|
(1.0 %)
|
|
|
|
3,119
|
|
0.4 %
|
|
|
|
Net
expense reimbursements
|
|
4,582
|
|
2.4 %
|
|
|
|
4,537
|
|
0.6 %
|
|
|
|
Ancillary and other rental income / Other revenues
|
|
833
|
|
0.5 %
|
|
|
|
4,371
|
|
0.6 %
|
|
|
|
Percentage rents
|
|
613
|
|
0.3 %
|
|
|
|
3,176
|
|
0.4 %
|
|
|
|
|
|
|
|
|
|
|
7.3 %
|
|
|
|
|
|
6.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to Same Property NOI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
107,155
|
|
$
81,243
|
|
|
|
$
354,193
|
|
$
270,187
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-same property NOI
|
|
(12,932)
|
|
(15,912)
|
|
|
|
(70,909)
|
|
(72,795)
|
|
|
|
Lease termination fees
|
|
(477)
|
|
(1,184)
|
|
|
|
(3,231)
|
|
(8,640)
|
|
|
|
Straight-line rental income, net
|
|
(5,575)
|
|
(3,924)
|
|
|
|
(23,458)
|
|
(14,551)
|
|
|
|
Accretion of below-market leases, net of amortization of
above-market leases
and tenant
inducements
|
|
(2,072)
|
|
(1,895)
|
|
|
|
(8,793)
|
|
(8,221)
|
|
|
|
Straight-line ground rent expense, net
|
|
(7)
|
|
14
|
|
|
|
160
|
|
134
|
|
|
|
Depreciation and amortization
|
|
90,599
|
|
80,796
|
|
|
|
344,731
|
|
327,152
|
|
|
|
Impairment of real estate assets
|
|
1,127
|
|
-
|
|
|
|
5,724
|
|
1,898
|
|
|
|
General and administrative
|
|
30,429
|
|
29,039
|
|
|
|
117,225
|
|
105,454
|
|
|
|
Total other (income) expense
|
|
(1,817)
|
|
24,274
|
|
|
|
84,410
|
|
149,795
|
|
|
|
Same property
NOI
|
|
$
206,430
|
|
$
192,451
|
|
|
|
$
800,052
|
|
$
750,413
|
|
|
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SOURCE Brixmor Property Group Inc.