- Continued to Deliver Record Operating
Metrics -
- Increased Nareit FFO and Same Property
NOI Growth Expectations For 2024 -
- Announced Executive Promotions
-
NEW
YORK, July 29, 2024 /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, 2024. For the
three months ended June 30, 2024 and
2023, net income was $0.23 per
diluted share and $0.19 per diluted
share, respectively, and for the six months ended June 30, 2024 and 2023, net income was
$0.52 per diluted share and
$0.56 per diluted share,
respectively.
Key highlights for the three months ended June 30, 2024 include:
- Executed 1.4 million square feet of new and renewal leases,
with record rent spreads on comparable space of 27.7%, including
0.6 million square feet of new leases, with rent spreads on
comparable space of 50.2%
- Sequentially increased total leased occupancy to a record
95.4%, anchor leased occupancy to a record 97.5%, and small shop
leased occupancy to a record 90.8%
- Commenced $17.0 million of
annualized base rent
- Leased to billed occupancy spread totaled 400 basis points
- Total signed but not yet commenced lease population represented
2.9 million square feet and $64.7
million of annualized base rent
- Reported an increase in same property NOI of 5.5%, including a
contribution from base rent of 380 basis points
- Reported Nareit FFO of $163.8
million, or $0.54 per diluted
share
- Stabilized $36.8 million of
reinvestment projects at an average incremental NOI yield of 9%,
with the in process reinvestment pipeline totaling $509.6 million at an expected average incremental
NOI yield of 9%
- Completed $17.3 million of
acquisitions and $0.3 million of
dispositions
- Issued $400.0 million of 5.750%
Senior Notes due 2035
Subsequent events:
- Announced the following executive promotions, effective as of
July 24, 2024:
- Brian T. Finnegan, the Company's
Senior Executive Vice President, Chief Operating Officer has been
promoted to President, Chief Operating Officer
- Steven T. Gallagher, the
Company's Senior Vice President, Chief Accounting Officer and
Interim Chief Financial Officer and Treasurer has been promoted to
Executive Vice President, Chief Financial Officer and
Treasurer
- Helane G. Stein, the Company's
Senior Vice President, Chief Information Officer has been promoted
to Executive Vice President, Chief Information Officer
- Kevin Brydzinski, the Company's
Senior Vice President, Corporate Accounting & Reporting has
been promoted to Senior Vice President, Chief Accounting
Officer
- Updated previously provided Nareit FFO per diluted share
expectations for 2024 to $2.11 - 2.14
from $2.08 - $2.11 and same property NOI growth expectations
for 2024 to 4.25% - 5.00% from 3.50% - 4.25%
- Completed $23.6 million of
acquisitions
- Published the Company's annual Corporate Responsibility Report
on July 1, 2024 (view the 2023 report
at https://www.brixmor.com/corporate-responsibility)
"As a team, we are very proud of how our balanced, value-add
business plan continues to deliver outstanding performance, and
importantly, sets us up for continued growth as we advance our
purpose of creating and owning centers that are the center of the
communities we serve," commented James
Taylor, Chief Executive Officer. "We are also pleased to
recognize the contributions of our extraordinary team through the
promotions of Brian, Steve, Helane, and Kevin."
FINANCIAL HIGHLIGHTS
Net Income
- For the three months ended June 30,
2024 and 2023, net income was $70.1
million, or $0.23 per diluted
share, and $56.4 million, or
$0.19 per diluted share,
respectively.
- For the six months ended June 30,
2024 and 2023, net income was $159.0
million, or $0.52 per diluted
share, and $168.7 million, or
$0.56 per diluted share,
respectively.
Nareit FFO
- For the three months ended June 30,
2024 and 2023, Nareit FFO was $163.8
million, or $0.54 per diluted
share, and $157.1 million, or
$0.52 per diluted share,
respectively. Results for the three months ended June 30, 2024 and 2023 include items that impact
FFO comparability, including transaction expenses, net and gain on
extinguishment of debt, net, of $0.3
million, or $0.00 per diluted
share, and $4.3 million, or
$0.01 per diluted share,
respectively.
- For the six months ended June 30,
2024 and 2023, Nareit FFO was $327.2
million, or $1.08 per diluted
share, and $308.7 million, or
$1.02 per diluted share,
respectively. Results for the six months ended June 30, 2024 and 2023 include items that impact
FFO comparability, including transaction expenses, net and gain on
extinguishment of debt, net, of $0.2
million, or $0.00 per diluted
share, and $4.3 million, or
$0.01 per diluted share,
respectively.
Same Property NOI Performance
- For the three months ended June 30,
2024, the Company reported an increase in same property NOI
of 5.5% versus the comparable 2023 period.
- For the six months ended June 30,
2024, the Company reported an increase in same property NOI
of 5.7% versus the comparable 2023 period.
Dividend
- The Company's Board of Directors declared a quarterly cash
dividend of $0.2725 per common share
(equivalent to $1.09 per annum) for
the third quarter of 2024.
- The dividend is payable on October 15,
2024 to stockholders of record on October 2, 2024.
PORTFOLIO AND INVESTMENT ACTIVITY
Value Enhancing Reinvestment Opportunities
- During the three months ended June 30,
2024, the Company stabilized seven value enhancing
reinvestment projects with a total aggregate net cost of
approximately $36.8 million at an
average incremental NOI yield of 9% and added five new reinvestment
projects to its in process pipeline. Projects added include one
anchor space repositioning project, one outparcel development
project, and three redevelopment projects, with a total aggregate
net estimated cost of approximately $107.8
million at an expected average incremental NOI yield of
9%.
- At June 30, 2024, the value
enhancing reinvestment in process pipeline was comprised of 44
projects with an aggregate net estimated cost of approximately
$509.6 million at an expected average
incremental NOI yield of 9%. The in process pipeline includes 19
anchor space repositioning projects with an aggregate net estimated
cost of approximately $95.2 million
at an expected incremental NOI yield of 7% - 14%; eight outparcel
development projects with an aggregate net estimated cost of
approximately $19.9 million at an
expected average incremental NOI yield of 11%; and 17 redevelopment
projects with an aggregate net estimated cost of approximately
$394.5 million at an expected average
incremental NOI yield of 9%.
- An in-depth review of an anchor space repositioning project,
which highlights the Company's reinvestment capabilities,
Florence Plaza - Florence Square (Cincinnati, OH-KY-IN CBSA), can be found at
this link:
https://www.brixmor.com/blog/creating-value-in-cincinnati.
- Follow Brixmor on LinkedIn for video updates on reinvestment
projects at https://www.linkedin.com/company/brixmor.
Acquisitions
- As previously announced, during the three months ended
June 30, 2024, the Company acquired
West Center, a 42,594 square foot grocery-anchored neighborhood
shopping center located immediately adjacent to the Company's Three
Village Shopping Center on Long
Island, New York in
East Setauket (New York-Newark-Jersey
City, NY-NJ-PA CBSA), for $17.3
million. West Center is anchored by Wild by Nature Market
(King Kullen) and has compelling
near-term leasing and value creation opportunities and, when
combined with Three Village Shopping Center, creates optionality
for long-term redevelopment and densification.
- Subsequent to June 30, 2024, the
Company acquired The Fresh Market Shoppes, an approximately 86,000
square foot grocery-anchored neighborhood shopping center located
in Hilton Head Island, South
Carolina (Hilton Head Island-Bluffton, SC CBSA), for $23.6 million. The Fresh Market Shoppes is
anchored by The Fresh Market and has significant value creation
opportunities, including below-market in-place rents. The property
is located two miles from the Company's Circle Center property and
complements the Company's coastal Carolina portfolio.
Dispositions
- During the three months ended June 30,
2024, the Company generated approximately $0.3 million of gross proceeds on the disposition
of two partial properties comprised of 6,702 square feet of gross
leasable area.
- During the six months ended June 30,
2024, the Company generated approximately $69.3 million of gross proceeds on the
disposition of three shopping centers, as well as two partial
properties, comprised of 581,117 square feet of gross leasable
area.
CAPITAL STRUCTURE
- On May 28, 2024, the Company's
operating partnership, Brixmor Operating Partnership LP, issued
$400.0 million aggregate principal
amount of 5.750% Senior Notes due 2035. Proceeds will be utilized
for general corporate purposes, including repayment of
indebtedness.
- At June 30, 2024, the Company had
$1.7 billion in liquidity.
- At June 30, 2024, the Company's
net principal debt to adjusted EBITDA, current quarter annualized
was 5.6x and net principal debt to adjusted EBITDA, trailing twelve
months was 5.8x.
GUIDANCE
- The Company has updated its previously provided NAREIT FFO per
diluted share expectations for 2024 to $2.11 - 2.14 from $2.08 - $2.11 and
same property NOI growth expectations for 2024 to 4.25% - 5.00%
from 3.50% - 4.25%.
- Expectations for 2024 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, which include transaction expenses, net, litigation
and other non-routine legal expenses, and gain or loss on
extinguishment of debt, net, or any other one-time items
- The following table provides a reconciliation of the range of
the Company's 2024 estimated net income to Nareit FFO:
(Unaudited, dollars
in millions, except per share amounts)
|
|
2024E
|
|
2024E Per
Diluted Share
|
Net
income
|
|
$291 - $300
|
|
$0.96 -
$0.99
|
Depreciation and amortization related to real
estate
|
|
360
|
|
1.19
|
Gain
on sale of real estate assets
|
|
(17)
|
|
(0.06)
|
Impairment of real estate asset
|
|
5
|
|
0.02
|
Nareit FFO
|
|
$639 -
$648
|
|
$2.11 -
2.14
|
CONNECT WITH BRIXMOR
- For additional information, please visit
https://www.brixmor.com;
- Follow Brixmor on:
- LinkedIn at https://www.linkedin.com/company/brixmor
- Facebook at https://www.facebook.com/Brixmor
- Instagram at https://www.instagram.com/brixmorpropertygroup;
and
- YouTube at https://www.youtube.com/user/Brixmor.
CONFERENCE CALL AND SUPPLEMENTAL INFORMATION
The
Company will host a teleconference on Tuesday, July 30, 2024 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 August 13, 2024 by
dialing 844.512.2921 (domestic) or 412.317.6671 (international)
(Passcode:13746671) or via the web through July 30, 2025 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 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, (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 interest expense and gain on sale of real estate
assets). Considering the nature of its business as a real estate
owner and operator, the Company believes that 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, income or
expense associated with the Company's captive insurance
company, accretion of below-market leases, net of
amortization of above-market leases and tenant inducements,
straight-line ground rent expense, net, depreciation and
amortization, impairment of real estate assets, general and
administrative expense, and other income and expense (including
interest expense and gain on sale of real estate assets). The
Company believes that same property NOI is also useful to investors
because it further eliminates disparities in NOI by only including
NOI of properties owned for the entirety of both periods presented
and excluding properties under development and completed new
development properties that have been stabilized for less than one
year and therefore provides a more consistent metric for comparing
the operating performance of the Company's real estate between
periods.
Net Principal Debt to Adjusted EBITDA, current quarter
annualized & Net Principal Debt to Adjusted EBITDA, trailing
twelve months
Net principal debt to adjusted EBITDA,
current quarter annualized and net principal debt to adjusted
EBITDA, trailing twelve months are supplemental non-GAAP measures
utilized to evaluate the performance of real estate companies in
relation to outstanding debt. Net principal debt is calculated as
Debt obligations, net, calculated in accordance with GAAP,
excluding net unamortized premium or discount and deferred
financing fees less cash, cash equivalents, and restricted cash.
Adjusted EBITDA is calculated as the sum of net income (loss),
calculated in accordance with GAAP, excluding (i) interest expense,
(ii) federal and state taxes, (iii) depreciation and amortization,
(iv) gains and losses from the sale of certain real estate assets,
(v) gains and losses from change in control, (vi) 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, (vii)
gain (loss) on extinguishment of debt, net, and (viii) other items
that the Company believes are not indicative of the Company's
operating performance. Net principal debt to adjusted EBITDA,
current quarter annualized and net principal debt to adjusted
EBITDA, trailing twelve months are calculated as net principal debt
divided by quarterly annualized adjusted EBITDA or trailing twelve
month adjusted EBITDA, respectively. Considering the nature of its
business as a real estate owner and operator, the Company believes
that net principal debt to adjusted EBITDA, current quarter
annualized and net principal debt to adjusted EBITDA, trailing
twelve months are useful to investors in measuring its operating
performance because they exclude items included in net income that
do not relate to or are not indicative of the operating performance
of the Company's real estate, are widely known and understood
measures of performance, independent of a company's capital
structure and items which can make periodic and peer analyses of
performance more difficult, and can provide investors with a more
consistent basis by which to compare the Company with its
peers.
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
360 retail centers comprise approximately 64 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 our expectations regarding the performance of
our business, our financial results, our 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.
Accordingly, there are or will be important factors that could
cause actual outcomes or results to differ materially from those
indicated in these statements. We believe these factors include,
but are not limited to, those described under the sections entitled
"Forward-Looking Statements" and "Risk Factors" in our Form 10-K
for the year ended December 31, 2023,
as such factors may be updated from time to time in our periodic
filings with the Securities and Exchange Commission (the "SEC"),
which are accessible on the SEC's website at https://www.sec.gov.
These factors include (1) changes in national, regional, and local
economies, due to global events such as international military
conflicts, international trade disputes, a foreign debt crisis,
foreign currency volatility, or due to domestic issues, such as
government policies and regulations, tariffs, energy prices, market
dynamics, general economic contractions, rising interest rates,
inflation, unemployment, or limited growth in consumer income or
spending; (2) local real estate market conditions, including an
oversupply of space in, or a reduction in demand for, properties
similar to those in our Portfolio (defined hereafter); (3)
competition from other available properties and e-commerce; (4)
disruption and/or consolidation in the retail sector, the financial
stability of our tenants, and the overall financial condition of
large retailing companies, including their ability to pay rent
and/or expense reimbursements that are due to us; (5) in the case
of percentage rents, the sales volumes of our tenants; (6)
increases in property operating expenses, including common area
expenses, utilities, insurance, and real estate taxes, which are
relatively inflexible and generally do not decrease if revenue or
occupancy decrease; (7) increases in the costs to repair, renovate,
and re-lease space; (8) earthquakes, wildfires, tornadoes,
hurricanes, damage from rising sea levels due to climate change,
other natural disasters, epidemics and/or pandemics, civil unrest,
terrorist acts, or acts of war, any of which may result in
uninsured or underinsured losses; and (9) changes in laws and
governmental regulations, including those governing usage, zoning,
the environment, and taxes. These factors should not be construed
as exhaustive and should be read in conjunction with the other
cautionary statements that are included in this press release and
in our periodic filings. The forward-looking statements speak only
as of the date of this press release, and we expressly disclaim any
obligation or undertaking to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments, or otherwise, except to the extent otherwise
required by law.
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
Unaudited, dollars in
thousands, except share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
|
|
|
|
6/30/2024
|
|
12/31/2023
|
|
Assets
|
|
|
|
|
|
Real estate
|
|
|
|
|
|
|
Land
|
$
1,779,106
|
|
$
1,794,011
|
|
|
|
Buildings and tenant
improvements
|
8,673,678
|
|
8,570,874
|
|
|
|
Construction in
progress
|
109,735
|
|
126,007
|
|
|
|
Lease
intangibles
|
499,460
|
|
504,995
|
|
|
|
|
|
11,061,979
|
|
10,995,887
|
|
|
|
Accumulated
depreciation and amortization
|
(3,315,103)
|
|
(3,198,980)
|
|
|
Real estate,
net
|
7,746,876
|
|
7,796,907
|
|
|
Cash and cash
equivalents
|
473,615
|
|
866
|
|
|
Restricted
cash
|
1,341
|
|
18,038
|
|
|
Marketable
securities
|
21,985
|
|
19,914
|
|
|
Receivables, net,
including straight-line rent receivables of $195,330 and $180,810,
respectively
|
252,664
|
|
278,775
|
|
|
Deferred charges and
prepaid expenses, net
|
169,872
|
|
164,061
|
|
|
Real estate assets held
for sale
|
11,048
|
|
-
|
|
|
Other assets
|
53,300
|
|
54,155
|
|
Total assets
|
$
8,730,701
|
|
$
8,332,716
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Debt obligations,
net
|
$
5,375,222
|
|
$
4,933,525
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
500,293
|
|
548,890
|
|
Total
liabilities
|
5,875,515
|
|
5,482,415
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common stock, $0.01 par
value; authorized 3,000,000,000 shares;
|
|
|
|
|
|
|
310,472,378 and
309,723,386 shares issued and 301,345,386 and
300,596,394
|
|
|
|
|
|
|
shares
outstanding
|
3,013
|
|
3,006
|
|
|
Additional paid-in
capital
|
3,307,357
|
|
3,310,590
|
|
|
Accumulated other
comprehensive income (loss)
|
12,377
|
|
(2,700)
|
|
|
Distributions in excess
of net income
|
(467,561)
|
|
(460,595)
|
|
Total equity
|
2,855,186
|
|
2,850,301
|
|
Total liabilities and
equity
|
$
8,730,701
|
|
$
8,332,716
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
Unaudited, dollars in
thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
6/30/2024
|
|
6/30/2023
|
|
6/30/2024
|
|
6/30/2023
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Rental
income
|
$
315,587
|
|
$
309,192
|
|
$
635,076
|
|
$
620,322
|
|
|
Other
revenues
|
102
|
|
601
|
|
854
|
|
915
|
|
Total
revenues
|
315,689
|
|
309,793
|
|
635,930
|
|
621,237
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
36,919
|
|
35,705
|
|
74,076
|
|
71,600
|
|
|
Real estate
taxes
|
36,349
|
|
43,712
|
|
77,757
|
|
88,400
|
|
|
Depreciation and
amortization
|
92,018
|
|
88,812
|
|
183,236
|
|
176,553
|
|
|
Impairment of real
estate assets
|
5,280
|
|
16,736
|
|
5,280
|
|
17,836
|
|
|
General and
administrative
|
29,689
|
|
28,514
|
|
58,180
|
|
57,686
|
|
Total operating
expenses
|
200,255
|
|
213,479
|
|
398,529
|
|
412,075
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Dividends and
interest
|
6,632
|
|
57
|
|
10,509
|
|
72
|
|
|
Interest
expense
|
(53,655)
|
|
(47,485)
|
|
(105,143)
|
|
(96,165)
|
|
|
Gain on sale of real
estate assets
|
1,814
|
|
3,857
|
|
16,956
|
|
52,325
|
|
|
Gain on extinguishment
of debt, net
|
281
|
|
4,350
|
|
281
|
|
4,350
|
|
|
Other
|
(381)
|
|
(685)
|
|
(974)
|
|
(1,090)
|
|
Total other
expense
|
(45,309)
|
|
(39,906)
|
|
(78,371)
|
|
(40,508)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
70,125
|
|
$
56,408
|
|
$
159,030
|
|
$
168,654
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.23
|
|
$
0.19
|
|
$
0.53
|
|
$
0.56
|
|
|
Diluted
|
$
0.23
|
|
$
0.19
|
|
$
0.52
|
|
$
0.56
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
302,197
|
|
300,961
|
|
302,120
|
|
300,899
|
|
|
Diluted
|
302,903
|
|
302,285
|
|
302,796
|
|
302,234
|
EBITDA &
RECONCILIATION OF DEBT OBLIGATIONS, NET TO NET PRINCIPAL
DEBT
|
Unaudited, dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
6/30/2024
|
|
6/30/2023
|
|
6/30/2024
|
|
6/30/2023
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
70,125
|
|
$
56,408
|
|
$
159,030
|
|
$
168,654
|
|
|
Interest
expense
|
53,655
|
|
47,485
|
|
105,143
|
|
96,165
|
|
|
Federal and state
taxes
|
655
|
|
638
|
|
1,366
|
|
1,348
|
|
|
Depreciation and
amortization
|
92,018
|
|
88,812
|
|
183,236
|
|
176,553
|
|
EBITDA
|
216,453
|
|
193,343
|
|
448,775
|
|
442,720
|
|
|
Gain on sale of real
estate assets
|
(1,814)
|
|
(3,857)
|
|
(16,956)
|
|
(52,325)
|
|
|
Impairment of real
estate assets
|
5,280
|
|
16,736
|
|
5,280
|
|
17,836
|
|
EBITDAre
|
$
219,919
|
|
$
206,222
|
|
$
437,099
|
|
$
408,231
|
|
|
|
|
|
|
|
|
|
|
|
EBITDAre
|
$
219,919
|
|
$
206,222
|
|
$
437,099
|
|
$
408,231
|
|
|
Transaction expenses,
net
|
13
|
|
37
|
|
58
|
|
95
|
|
|
Gain on extinguishment
of debt, net
|
(281)
|
|
(4,350)
|
|
(281)
|
|
(4,350)
|
|
|
Total
adjustments
|
(268)
|
|
(4,313)
|
|
(223)
|
|
(4,255)
|
|
Adjusted
EBITDA
|
$
219,651
|
|
$
201,909
|
|
$
436,876
|
|
$
403,976
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
219,651
|
|
$
201,909
|
|
$
436,876
|
|
$
403,976
|
|
|
Straight-line rental
income, net
|
(7,981)
|
|
(7,421)
|
|
(15,536)
|
|
(11,422)
|
|
|
Accretion of
below-market leases, net of amortization of above-market leases and
tenant inducements
|
(1,810)
|
|
(1,568)
|
|
(3,534)
|
|
(4,236)
|
|
|
Straight-line ground
rent expense, net (1)
|
(6)
|
|
(8)
|
|
(11)
|
|
(17)
|
|
|
Total
adjustments
|
(9,797)
|
|
(8,997)
|
|
(19,081)
|
|
(15,675)
|
|
Cash Adjusted
EBITDA
|
$
209,854
|
|
$
192,912
|
|
$
417,795
|
|
$
388,301
|
|
|
|
|
|
|
|
|
|
|
(1) Straight-line
ground rent expense, net is included in Operating costs on the
Consolidated Statements of Operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Debt Obligations, Net to Net Principal Debt
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
|
|
|
6/30/2024
|
|
|
|
|
|
|
|
|
Debt obligations,
net
|
$
5,375,222
|
|
|
|
|
|
|
|
|
Less: Net unamortized
premium
|
(15,681)
|
|
|
|
|
|
|
|
|
Add: Deferred financing
fees
|
28,912
|
|
|
|
|
|
|
|
|
Less: Cash, cash
equivalents and restricted cash
|
(474,956)
|
|
|
|
|
|
|
|
|
Net Principal
Debt
|
$
4,913,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
current quarter annualized
|
$
878,604
|
|
|
|
|
|
|
|
|
Net Principal Debt to
Adjusted EBITDA, current quarter annualized
|
5.6x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
trailing twelve months
|
$
841,907
|
|
|
|
|
|
|
|
|
Net Principal Debt to
Adjusted EBITDA, trailing twelve months
|
5.8x
|
|
|
|
|
|
|
FUNDS FROM
OPERATIONS (FFO)
|
|
|
|
|
|
|
|
|
Unaudited, dollars in
thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
6/30/2024
|
|
6/30/2023
|
|
6/30/2024
|
|
6/30/2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
70,125
|
|
$
56,408
|
|
$
159,030
|
|
$
168,654
|
|
|
|
Depreciation and
amortization related to real estate
|
90,218
|
|
87,806
|
|
179,891
|
|
174,554
|
|
|
|
Gain on sale of real
estate assets
|
(1,814)
|
|
(3,857)
|
|
(16,956)
|
|
(52,325)
|
|
|
|
Impairment of real
estate assets
|
5,280
|
|
16,736
|
|
5,280
|
|
17,836
|
|
|
Nareit FFO
|
$
163,809
|
|
$
157,093
|
|
$
327,245
|
|
$
308,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nareit FFO per diluted
share
|
$
0.54
|
|
$
0.52
|
|
$
1.08
|
|
$
1.02
|
|
|
Weighted average
diluted shares outstanding
|
302,903
|
|
302,285
|
|
302,796
|
|
302,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that impact FFO
comparability
|
|
|
|
|
|
|
|
|
|
|
Transaction expenses,
net
|
$
(13)
|
|
$
(37)
|
|
$
(58)
|
|
$
(95)
|
|
|
|
Gain on extinguishment
of debt, net
|
281
|
|
4,350
|
|
281
|
|
4,350
|
|
|
Total items that impact
FFO comparability
|
$
268
|
|
$
4,313
|
|
$
223
|
|
$
4,255
|
|
|
Items that impact FFO
comparability, net per share
|
$
0.00
|
|
$
0.01
|
|
$
0.00
|
|
$
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
Disclosures
|
|
|
|
|
|
|
|
|
|
|
Straight-line rental
income, net
|
$
7,981
|
|
$
7,421
|
|
$
15,536
|
|
$
11,422
|
|
|
|
Accretion of
below-market leases, net of amortization of above-market leases and
tenant
inducements
|
1,810
|
|
1,568
|
|
3,534
|
|
4,236
|
|
|
|
Straight-line ground
rent expense, net (1)
|
6
|
|
8
|
|
11
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share
|
$
0.2725
|
|
$
0.2600
|
|
$
0.5450
|
|
$
0.5200
|
|
|
Dividends
declared
|
$
82,117
|
|
$
78,154
|
|
$
164,221
|
|
$
156,296
|
|
|
Dividend payout ratio
(as % of Nareit FFO)
|
50.1 %
|
|
49.8 %
|
|
50.2 %
|
|
50.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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
|
|
|
|
|
|
|
6/30/2024
|
|
6/30/2023
|
|
Change
|
|
6/30/2024
|
|
6/30/2023
|
|
Change
|
|
Same Property NOI
Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
properties
|
355
|
|
355
|
|
- %
|
|
354
|
|
354
|
|
- %
|
|
Percent
billed
|
91.4 %
|
|
90.5 %
|
|
0.9 %
|
|
91.4 %
|
|
90.5 %
|
|
0.9 %
|
|
Percent
leased
|
95.4 %
|
|
94.2 %
|
|
1.2 %
|
|
95.4 %
|
|
94.2 %
|
|
1.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base rent
|
$
227,524
|
|
$
219,260
|
|
|
|
$
451,980
|
|
$
435,478
|
|
|
|
|
Expense
reimbursements
|
68,303
|
|
69,433
|
|
|
|
139,536
|
|
139,096
|
|
|
|
|
Revenues deemed
uncollectible
|
(1,389)
|
|
(1,973)
|
|
|
|
(1,174)
|
|
(3,081)
|
|
|
|
|
Ancillary and other
rental income / Other revenues
|
5,845
|
|
6,126
|
|
|
|
12,085
|
|
11,542
|
|
|
|
|
Percentage
rents
|
2,341
|
|
1,940
|
|
|
|
6,575
|
|
5,655
|
|
|
|
|
|
|
302,624
|
|
294,786
|
|
2.7 %
|
|
609,002
|
|
588,690
|
|
3.5 %
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
(36,629)
|
|
(34,383)
|
|
|
|
(72,913)
|
|
(68,511)
|
|
|
|
|
Real estate
taxes
|
(36,525)
|
|
(42,947)
|
|
|
|
(77,454)
|
|
(86,316)
|
|
|
|
|
|
|
(73,154)
|
|
(77,330)
|
|
(5.4) %
|
|
(150,367)
|
|
(154,827)
|
|
(2.9) %
|
|
Same property
NOI
|
$
229,470
|
|
$
217,456
|
|
5.5 %
|
|
$
458,635
|
|
$
433,863
|
|
5.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI margin
|
75.8 %
|
|
73.8 %
|
|
|
|
75.3 %
|
|
73.7 %
|
|
|
|
Expense recovery
ratio
|
93.4 %
|
|
89.8 %
|
|
|
|
92.8 %
|
|
89.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Contribution
to Same Property NOI Performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
Percent
Contribution
|
|
|
|
Change
|
|
Percent
Contribution
|
|
|
|
|
Base Rent
|
$
8,264
|
|
3.8 %
|
|
|
|
$
16,502
|
|
3.8 %
|
|
|
|
|
Revenues deemed
uncollectible
|
584
|
|
0.2 %
|
|
|
|
1,907
|
|
0.5 %
|
|
|
|
|
Net expense
reimbursements
|
3,046
|
|
1.4 %
|
|
|
|
4,900
|
|
1.1 %
|
|
|
|
|
Ancillary and other
rental income / Other revenues
|
(281)
|
|
(0.1) %
|
|
|
|
543
|
|
0.1 %
|
|
|
|
|
Percentage
rents
|
401
|
|
0.2 %
|
|
|
|
920
|
|
0.2 %
|
|
|
|
|
|
|
|
|
5.5 %
|
|
|
|
|
|
5.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to Same Property NOI
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
70,125
|
|
$
56,408
|
|
|
|
$
159,030
|
|
$
168,654
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-same property
NOI
|
(2,195)
|
|
(3,247)
|
|
|
|
(5,032)
|
|
(8,754)
|
|
|
|
|
Lease termination
fees
|
(959)
|
|
(676)
|
|
|
|
(1,349)
|
|
(2,945)
|
|
|
|
|
Straight-line rental
income, net
|
(7,981)
|
|
(7,421)
|
|
|
|
(15,536)
|
|
(11,422)
|
|
|
|
|
Accretion of
below-market leases, net of amortization of above-market
leases and tenant inducements
|
(1,810)
|
|
(1,568)
|
|
|
|
(3,534)
|
|
(4,236)
|
|
|
|
|
Straight-line ground
rent expense, net
|
(6)
|
|
(8)
|
|
|
|
(11)
|
|
(17)
|
|
|
|
|
Depreciation and
amortization
|
92,018
|
|
88,812
|
|
|
|
183,236
|
|
176,553
|
|
|
|
|
Impairment of real
estate assets
|
5,280
|
|
16,736
|
|
|
|
5,280
|
|
17,836
|
|
|
|
|
General and
administrative
|
29,689
|
|
28,514
|
|
|
|
58,180
|
|
57,686
|
|
|
|
|
Total other
expense
|
45,309
|
|
39,906
|
|
|
|
78,371
|
|
40,508
|
|
|
|
Same Property
NOI
|
$
229,470
|
|
$
217,456
|
|
|
|
$
458,635
|
|
$
433,863
|
|
|
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multimedia:https://www.prnewswire.com/news-releases/brixmor-property-group-reports-second-quarter-2024-results-302208836.html
SOURCE Brixmor Property Group Inc.