NEW
YORK, July 31, 2023 /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, 2023. For the
three months ended June 30, 2023 and
2022, net income was $0.19 per
diluted share and $0.29 per diluted
share, respectively.
Key highlights for the three months ended June 30, 2023 include:
- Executed 1.4 million square feet of new and renewal leases,
with rent spreads on comparable space of 15.4%, including 0.6
million square feet of new leases, with rent spreads on comparable
space of 22.4%
- Sequentially increased total leased occupancy to a record
94.1%, anchor leased occupancy to 96.2%, and small shop leased
occupancy to a record 89.4%
-
- Leased to billed occupancy spread totaled 370 basis points
- Total signed but not yet commenced lease population represented
2.7 million square feet and $56.7
million of annualized base rent
- Reported an increase in same property NOI of 2.7%, including a
contribution from base rent of 520 basis points
- Reported Nareit FFO of $157.1
million, or $0.52 per diluted
share
- Stabilized $6.3 million of
reinvestment projects at an average incremental NOI yield of 22%,
with the in process reinvestment pipeline totaling $435.5 million at an expected average incremental
NOI yield of 8%
- Completed $1.8 million of
acquisitions and $26.8 million of
dispositions
- The Company's operating partnership, Brixmor Operating
Partnership LP (the "Operating Partnership"), repurchased
$199.6 million of its 3.650% Senior
Notes due 2024 pursuant to a cash tender offer (the "Tender
Offer"). The Tender Offer was funded with proceeds from the
Operating Partnership's previously disclosed $200.0 million delayed draw term loan
- Appointed Sheryl M. Crosland, an
independent director since 2016, as chair of the Company's board of
directors following the retirement of John
G. Schreiber, and Sandra A. J.
Lawrence as chair of the Company's audit committee
Subsequent events:
- Completed $14.5 million of
dispositions
- Appointed John Peter Suarez,
retired Executive Vice President, Regional Chief Executive Officer
and Chief Administration Officer, Walmart International, to the
Company's board of directors
- Published the Company's annual Corporate Responsibility Report
on July 5, 2023 (view the 2022 report
at https://www.brixmor.com/corporate-responsibility)
- Updated previously provided NAREIT FFO per diluted share
expectations for 2023 to $1.99 -
$2.04 from $1.97 - $2.04 and
same property NOI growth expectations for 2023 to 2.5% - 3.5% from
2.0% - 3.5%
"I'm very pleased with how the Brixmor team continues to deliver
under our value add strategy," commented James Taylor, CEO and President. "Our team's
superior execution and continued momentum is reflected across all
of our metrics, from leasing spreads, to occupancy, to rate, to NOI
growth to bottom line FFO. As we look forward, that same
execution also provides superior visibility on our continued
outperformance."
FINANCIAL HIGHLIGHTS
Net Income
- For the three months ended June 30,
2023 and 2022, net income was $56.4
million, or $0.19 per diluted
share, and $87.8 million, or
$0.29 per diluted share,
respectively.
- For the six months ended June 30,
2023 and 2022, net income was $168.7
million, or $0.56 per diluted
share, and $167.3 million, or
$0.56 per diluted share,
respectively.
Nareit FFO
- For the three months ended June 30,
2023 and 2022, Nareit FFO was $157.1
million, or $0.52 per diluted
share, and $148.9 million, or
$0.49 per diluted share,
respectively. Results for the three months ended June 30, 2023 and 2022 include items that impact
FFO comparability, including transaction expenses, net, litigation
and other non-routine legal expenses, and gain (loss) on
extinguishment of debt, net, of $4.3
million, or $0.01 per diluted
share, and $(1.4) million, or
$(0.00) per diluted share,
respectively.
- For the six months ended June 30,
2023 and 2022, Nareit FFO was $308.7
million, or $1.02 per diluted
share, and $294.3 million, or
$0.98 per diluted share,
respectively. Results for the six months ended June 30, 2023 and 2022 include items that impact
FFO comparability, including transaction expenses, net, litigation
and other non-routine legal expenses, and gain (loss) on
extinguishment of debt, net, of $4.3
million, or $0.01 per diluted
share, and $(1.4) million, or
$(0.00) per diluted share,
respectively.
Same Property NOI Performance
- For the three months ended June 30,
2023, the Company reported an increase in same property NOI
of 2.7% versus the comparable 2022 period.
- For the six months ended June 30,
2023, the Company reported an increase in same property NOI
of 3.9% versus the comparable 2022 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 third quarter of 2023.
- The dividend is payable on October 16,
2023 to stockholders of record on October 3, 2023, representing an ex-dividend date
of October 2, 2023.
PORTFOLIO AND INVESTMENT ACTIVITY
Value
Enhancing Reinvestment Opportunities
- During the three months ended June 30,
2023, the Company stabilized five value enhancing
reinvestment projects with a total aggregate net cost of
approximately $6.3 million at an
average incremental NOI yield of 22% and added eight new
reinvestment projects to its in process pipeline. Projects added
include three anchor space repositioning projects, two outparcel
development projects, and three redevelopment projects, with a
total aggregate net estimated cost of approximately $77.1 million at an expected average incremental
NOI yield of 8%.
- At June 30, 2023, the value
enhancing reinvestment in process pipeline was comprised of 50
projects with an aggregate net estimated cost of approximately
$435.5 million at an expected average
incremental NOI yield of 8%. The in process pipeline includes 17
anchor space repositioning projects with an aggregate net estimated
cost of approximately $78.3 million
at an expected incremental NOI yield of 7% - 14%; 11 outparcel
development projects with an aggregate net estimated cost of
approximately $23.3 million at an
expected average incremental NOI yield of 9%; and 22 redevelopment
projects with an aggregate net estimated cost of approximately
$333.9 million at an expected average
incremental NOI yield of 8%.
- An in-depth review of a recent outparcel development project,
which highlights the Company's reinvestment capabilities, Plaza By
The Sea (Los Angeles-Long Beach-Anaheim,
CA CBSA), can be found at this link:
https://www.brixmor.com/blog/creating-value-in-san-clemente.
- Follow Brixmor on LinkedIn for video updates on reinvestment
projects at https://www.linkedin.com/company/brixmor.
Acquisitions
- During the three and six months ended June 30, 2023, the Company terminated a ground
lease and acquired the associated land parcel at an existing center
for $1.8 million.
Dispositions
- During the three months ended June 30,
2023, the Company generated approximately $26.8 million of gross proceeds on the
disposition of two shopping centers, as well as five partial
properties, comprised of 0.2 million square feet of gross leasable
area.
- During the six months ended June 30,
2023, the Company generated approximately $151.3 million of gross proceeds on the
disposition of eight shopping centers, as well as seven partial
properties, comprised of 1.2 million square feet of gross leasable
area.
- Subsequent to June 30, 2023, the
Company disposed of one shopping center for $14.5 million of gross proceeds.
CAPITAL STRUCTURE
- On April 25, 2023, the Operating
Partnership repurchased $199.6
million of its 3.650% Senior Notes due 2024 pursuant to the
Tender Offer. In connection with the Tender Offer, the Company
recognized a gain on extinguishment of debt of $4.4 million, or $0.01 per diluted share, in the second quarter of
2023.
- The Operating Partnership funded the Tender Offer with proceeds
from its previously disclosed $200.0
million delayed draw term loan, which was drawn on
April 24, 2023. The $200.0 million delayed draw term loan is swapped
to a fixed, combined rate of 3.59% (plus a spread of 120 basis
points and SOFR adjustment of 10 basis points) through the maturity
of the term loan on July 26,
2027.
- At June 30, 2023, the Company had
$1.3 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 2023 to $1.99 - $2.04 from
$1.97 - $2.04 and same property NOI growth expectations
for 2023 to 2.5% - 3.5% from 2.0% - 3.5%.
- 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 gain or loss on future
extinguishment of debt or any one-time items
- 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
|
|
$284 - $299
|
|
$0.94 -
$0.99
|
Depreciation and
amortization related to real estate
|
|
351
|
|
1.16
|
Gain on sale of real
estate assets
|
|
(52)
|
|
(0.17)
|
Impairment of real
estate assets
|
|
18
|
|
0.06
|
Nareit
FFO
|
|
$601 -
$616
|
|
$1.99 -
$2.04
|
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, August 1, 2023 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 15, 2023 by dialing
844.512.2921 (domestic) or 412.317.6671 (international)
(Passcode:13738796) or via the web through August 1, 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 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, 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, or income or expense associated with the
Company's captive insurance company, 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
365 retail centers comprise approximately 65 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 section entitled "Risk
Factors" in our Form 10-K for the year ended December 31, 2022 and in this report, 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 report and in our
other periodic filings. The forward-looking statements speak only
as of the date of this report, 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
|
|
|
|
|
|
6/30/2023
|
|
12/31/2022
|
|
Assets
|
|
|
|
|
|
Real estate
|
|
|
|
|
|
|
Land
|
$
1,799,837
|
|
$
1,820,358
|
|
|
|
Buildings and tenant
improvements
|
8,414,515
|
|
8,405,969
|
|
|
|
Construction in
progress
|
146,807
|
|
129,310
|
|
|
|
Lease
intangibles
|
519,869
|
|
542,714
|
|
|
|
|
|
10,881,028
|
|
10,898,351
|
|
|
|
Accumulated
depreciation and amortization
|
(3,078,542)
|
|
(2,996,759)
|
|
|
Real estate,
net
|
7,802,486
|
|
7,901,592
|
|
|
Cash and cash
equivalents
|
13,646
|
|
16,492
|
|
|
Restricted
cash
|
1,214
|
|
4,767
|
|
|
Marketable
securities
|
21,105
|
|
21,669
|
|
|
Receivables,
net
|
253,791
|
|
264,146
|
|
|
Deferred charges and
prepaid expenses, net
|
161,866
|
|
154,141
|
|
|
Real estate assets held
for sale
|
-
|
|
10,439
|
|
|
Other assets
|
62,556
|
|
62,684
|
|
Total assets
|
$
8,316,664
|
|
$
8,435,930
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Debt obligations,
net
|
$
4,913,212
|
|
$
5,035,501
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
527,280
|
|
535,419
|
|
Total
liabilities
|
5,440,492
|
|
5,570,920
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Common stock, $0.01 par
value; authorized 3,000,000,000 shares;
|
|
|
|
|
|
|
309,719,833 and
309,042,754 shares issued and 300,592,841 and
299,915,762
|
|
|
|
|
|
|
shares
outstanding
|
3,006
|
|
2,999
|
|
|
|
Additional paid-in
capital
|
3,297,798
|
|
3,299,496
|
|
|
|
Accumulated other
comprehensive income
|
11,103
|
|
8,851
|
|
|
|
Distributions in excess
of net income
|
(435,735)
|
|
(446,336)
|
|
Total equity
|
2,876,172
|
|
2,865,010
|
|
Total liabilities and
equity
|
$
8,316,664
|
|
$
8,435,930
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
Unaudited, dollars in
thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
6/30/2023
|
|
6/30/2022
|
|
6/30/2023
|
|
6/30/2022
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Rental
income
|
$
309,192
|
|
$
305,898
|
|
$
620,322
|
|
$
604,260
|
|
|
Other
revenues
|
601
|
|
233
|
|
915
|
|
500
|
|
Total
revenues
|
309,793
|
|
306,131
|
|
621,237
|
|
604,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
35,705
|
|
34,497
|
|
71,600
|
|
69,293
|
|
|
Real estate
taxes
|
43,712
|
|
42,304
|
|
88,400
|
|
83,944
|
|
|
Depreciation and
amortization
|
88,812
|
|
85,137
|
|
176,553
|
|
169,359
|
|
|
Impairment of real
estate assets
|
16,736
|
|
7
|
|
17,836
|
|
4,597
|
|
|
General and
administrative
|
28,514
|
|
29,702
|
|
57,686
|
|
57,702
|
|
Total operating
expenses
|
213,479
|
|
191,647
|
|
412,075
|
|
384,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Dividends and
interest
|
57
|
|
35
|
|
72
|
|
110
|
|
|
Interest
expense
|
(47,485)
|
|
(47,886)
|
|
(96,165)
|
|
(95,208)
|
|
|
Gain on sale of real
estate assets
|
3,857
|
|
22,988
|
|
52,325
|
|
44,899
|
|
|
Gain (loss) on
extinguishment of debt, net
|
4,350
|
|
(221)
|
|
4,350
|
|
(221)
|
|
|
Other
|
(685)
|
|
(1,609)
|
|
(1,090)
|
|
(2,148)
|
|
Total other income
(expense)
|
(39,906)
|
|
(26,693)
|
|
(40,508)
|
|
(52,568)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
56,408
|
|
$
87,791
|
|
$
168,654
|
|
$
167,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.19
|
|
$
0.29
|
|
$
0.56
|
|
$
0.56
|
|
|
Diluted
|
$
0.19
|
|
$
0.29
|
|
$
0.56
|
|
$
0.56
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
300,961
|
|
299,992
|
|
300,899
|
|
299,246
|
|
|
Diluted
|
302,285
|
|
301,094
|
|
302,234
|
|
300,360
|
FUNDS FROM OPERATIONS (FFO)
|
|
|
|
|
|
|
|
|
Unaudited, dollars in
thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
6/30/2023
|
|
6/30/2022
|
|
6/30/2023
|
|
6/30/2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
56,408
|
|
$
87,791
|
|
$
168,654
|
|
$
167,297
|
|
|
Depreciation and
amortization related to real estate
|
|
87,806
|
|
84,089
|
|
174,554
|
|
167,279
|
|
|
Gain on sale of real
estate assets
|
|
(3,857)
|
|
(22,988)
|
|
(52,325)
|
|
(44,899)
|
|
|
Impairment of real
estate assets
|
|
16,736
|
|
7
|
|
17,836
|
|
4,597
|
|
Nareit FFO
|
|
$
157,093
|
|
$
148,899
|
|
$
308,719
|
|
$
294,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nareit FFO per diluted
share
|
|
$
0.52
|
|
$
0.49
|
|
$
1.02
|
|
$
0.98
|
|
Weighted average
diluted shares outstanding
|
|
302,285
|
|
301,094
|
|
302,234
|
|
300,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that impact FFO
comparability
|
|
|
|
|
|
|
|
|
|
|
Transaction expenses,
net
|
|
$
(37)
|
|
$
(848)
|
|
$
(95)
|
|
$
(881)
|
|
|
Litigation and other
non-routine legal expenses
|
|
-
|
|
(335)
|
|
-
|
|
(335)
|
|
|
Gain (loss) on
extinguishment of debt, net
|
|
4,350
|
|
(221)
|
|
4,350
|
|
(221)
|
|
Total items that impact
FFO comparability
|
|
$
4,313
|
|
$
(1,404)
|
|
$
4,255
|
|
$
(1,437)
|
|
Items that impact FFO
comparability, net per share
|
|
$
0.01
|
|
$
(0.00)
|
|
$
0.01
|
|
$
(0.00)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Disclosures
|
|
|
|
|
|
|
|
|
|
|
Straight-line rental
income, net (1)
|
|
$
7,421
|
|
$
6,751
|
|
$
11,422
|
|
$
11,490
|
|
|
Accretion of
below-market leases, net of amortization of above-market
leases and tenant inducements
|
|
1,568
|
|
2,160
|
|
4,236
|
|
4,204
|
|
|
Straight-line ground
rent expense, net (2)
|
|
8
|
|
(173)
|
|
17
|
|
(165)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share
|
|
$
0.260
|
|
$
0.240
|
|
$
0.520
|
|
$
0.480
|
|
Dividends
declared
|
|
$
78,154
|
|
$
71,921
|
|
$
156,296
|
|
$
143,798
|
|
Dividend payout ratio
(as % of Nareit FFO)
|
|
49.8 %
|
|
48.3 %
|
|
50.6 %
|
|
48.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
straight-line rental income reversals and re-establishments of $2.3
million and ($0.1 million) during the three months ended June 30,
2023 and 2022,
respectively. Includes straight-line rental income reversals and
re-establishments of $0.8 million and ($0.2 million) during the six
months ended June 30, 2023, 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
|
|
|
|
|
|
|
|
6/30/2023
|
|
6/30/2022
|
|
Change
|
|
6/30/2023
|
|
6/30/2022
|
|
Change
|
|
Same Property NOI Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
properties
|
351
|
|
351
|
|
- %
|
|
347
|
|
347
|
|
- %
|
|
Percent
billed
|
90.5 %
|
|
89.1 %
|
|
1.4 %
|
|
90.5 %
|
|
89.1 %
|
|
1.4 %
|
|
Percent
leased
|
94.1 %
|
|
92.7 %
|
|
1.4 %
|
|
94.1 %
|
|
92.7 %
|
|
1.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base rent
|
$
215,932
|
|
$
205,229
|
|
|
|
$
423,270
|
|
$
402,328
|
|
|
|
|
Expense
reimbursements
|
67,621
|
|
62,371
|
|
|
|
132,531
|
|
122,448
|
|
|
|
|
Revenues deemed
uncollectible
|
(2,085)
|
|
4,750
|
|
|
|
(2,832)
|
|
6,862
|
|
|
|
|
Ancillary and other
rental income / Other revenues
|
6,182
|
|
5,796
|
|
|
|
11,518
|
|
11,175
|
|
|
|
|
Percentage
rents
|
1,935
|
|
2,376
|
|
|
|
5,686
|
|
5,768
|
|
|
|
|
|
|
|
289,585
|
|
280,522
|
|
3.2 %
|
|
570,173
|
|
548,581
|
|
3.9 %
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
(34,195)
|
|
(32,274)
|
|
|
|
(67,473)
|
|
(64,164)
|
|
|
|
|
Real estate
taxes
|
(41,486)
|
|
(39,923)
|
|
|
|
(80,349)
|
|
(77,950)
|
|
|
|
|
|
|
|
(75,681)
|
|
(72,197)
|
|
4.8 %
|
|
(147,822)
|
|
(142,114)
|
|
4.0 %
|
|
Same property
NOI
|
$
213,904
|
|
$
208,325
|
|
2.7 %
|
|
$
422,351
|
|
$
406,467
|
|
3.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI margin
|
73.9 %
|
|
74.3 %
|
|
|
|
74.1 %
|
|
74.1 %
|
|
|
|
Expense recovery
ratio
|
89.4 %
|
|
86.4 %
|
|
|
|
89.7 %
|
|
86.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Contribution to Same Property NOI
Performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
Percent
Contribution
|
|
|
|
Change
|
|
Percent
Contribution
|
|
|
|
|
Base rent
|
$
10,703
|
|
5.2 %
|
|
|
|
$
20,942
|
|
5.1 %
|
|
|
|
|
Revenues deemed
uncollectible
|
(6,835)
|
|
(3.3) %
|
|
|
|
(9,694)
|
|
(2.4) %
|
|
|
|
|
Net expense
reimbursements
|
1,766
|
|
0.8 %
|
|
|
|
4,375
|
|
1.1 %
|
|
|
|
|
Ancillary and other
rental income / Other revenues
|
386
|
|
0.2 %
|
|
|
|
343
|
|
0.1 %
|
|
|
|
|
Percentage
rents
|
(441)
|
|
(0.2) %
|
|
|
|
(82)
|
|
0.0 %
|
|
|
|
|
|
|
|
|
|
2.7 %
|
|
|
|
|
|
3.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Same Property
NOI
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
56,408
|
|
$
87,791
|
|
|
|
$
168,654
|
|
$
167,297
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-same property
NOI
|
(6,799)
|
|
(11,337)
|
|
|
|
(20,266)
|
|
(27,467)
|
|
|
|
|
Lease termination
fees
|
(676)
|
|
(930)
|
|
|
|
(2,945)
|
|
(2,060)
|
|
|
|
|
Straight-line rental
income, net
|
(7,421)
|
|
(6,751)
|
|
|
|
(11,422)
|
|
(11,490)
|
|
|
|
|
Accretion of
below-market leases, net of amortization of above-market
leases and tenant inducements
|
(1,568)
|
|
(2,160)
|
|
|
|
(4,236)
|
|
(4,204)
|
|
|
|
|
Straight-line ground
rent expense, net
|
(8)
|
|
173
|
|
|
|
(17)
|
|
165
|
|
|
|
|
Depreciation and
amortization
|
88,812
|
|
85,137
|
|
|
|
176,553
|
|
169,359
|
|
|
|
|
Impairment of real
estate assets
|
16,736
|
|
7
|
|
|
|
17,836
|
|
4,597
|
|
|
|
|
General and
administrative
|
28,514
|
|
29,702
|
|
|
|
57,686
|
|
57,702
|
|
|
|
|
Total other (income)
expense
|
39,906
|
|
26,693
|
|
|
|
40,508
|
|
52,568
|
|
|
|
Same Property
NOI
|
$
213,904
|
|
$
208,325
|
|
|
|
$
422,351
|
|
$
406,467
|
|
|
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SOURCE Brixmor Property Group Inc.