BRIXMOR PROPERTY GROUP PROVIDES UPDATE ON FOURTH QUARTER INVESTMENT ACTIVITY

Rhea-AI Summary

Brixmor Property Group (NYSE: BRX) has announced significant investment activity for Q4 and full-year 2024. During Q4, the company acquired four shopping centers and one land parcel for $211.8 million, while the full-year acquisitions totaled seven shopping centers and two land parcels for $293.0 million.

Key Q4 acquisitions include: The Plaza at Buckland Hills ($67.5M), a 308,000 sq ft center in Connecticut; Britton Plaza ($60.5M), a 466,000 sq ft center in Tampa; North Ridge Shopping Center ($54.6M), a 171,000 sq ft center in Raleigh; and Huron Village ($29.3M), a 118,000 sq ft center in Ann Arbor.

The company also completed dispositions generating $69.3M in Q4 and $212.4M for the full year. Additionally, BRX raised $96.6M through ATM equity offerings in Q4, selling approximately 3.4M shares at an average price of $28.77.

Positive

• Acquired 7 shopping centers and 2 land parcels in 2024 for $293.0M
• Generated $212.4M from strategic dispositions in 2024
• Raised $116.6M through ATM equity offering at $28.62 average share price
• New acquisitions include properties with significant value-creation opportunities

Negative

• Equity dilution through issuance of 4.1M new shares via ATM program

Insights

Real Estate Investment Analyst

The $293.0 million in acquisitions throughout 2024, with $211.8 million concentrated in Q4, represents a strategic portfolio enhancement focusing on high-potential grocery-anchored centers. The acquisition metrics reveal compelling value-add opportunities:

The standout acquisition is Britton Plaza in South Tampa, purchased at $60.5 million. With 118,000 square feet of vacancy in a premium market, this presents a significant NOI growth opportunity through lease-up at current market rates. The $129.73/sq ft purchase price suggests substantial upside potential given the location and Publix anchor.

The portfolio recycling strategy is evident in the $212.4 million of dispositions, creating a near-neutral capital deployment while upgrading the portfolio quality. The $116.6 million ATM equity raise at $28.62 per share demonstrates prudent balance sheet management, maintaining flexibility for future opportunities.

Market Research Analyst

The strategic clustering in high-growth markets strengthens Brixmor's competitive positioning. Key market selections include:

• Hartford CBSA: The Plaza at Buckland Hills acquisition creates synergies with existing Manchester Collection property
• Tampa-St. Petersburg: Entry into South Tampa's affluent market with significant value-add potential
• Raleigh-Cary: Expansion in one of the fastest-growing metros in the Southeast
• Ann Arbor: Enhanced presence near University of Michigan, capturing educated, high-income demographic

The focus on grocery-anchored centers with strong operators like Trader Joe's, Publix, Harris Teeter and Whole Foods provides stable foot traffic and recession resistance. The below-market rents across multiple properties indicate embedded growth potential as leases roll to market rates.

NEW YORK, Jan. 7, 2025 /PRNewswire/ -- Brixmor Property Group Inc. (NYSE: BRX) ("Brixmor" or the "Company") announced today investment activity for the three and twelve months ended December 31, 2024. This activity reflects Brixmor's disciplined strategy of clustering its portfolio in attractive markets where the Company can leverage its platform to deliver long-term value and earnings growth.

"We are pleased to continue our external growth strategy through the addition of seven assets that present significant, accretive opportunities for future growth and value creation," commented Mark T. Horgan, Executive Vice President, Chief Investment Officer. "Importantly, these targeted acquisitions also continue to cluster our investments in dynamic retail markets across our nationwide footprint. We look forward to additional external growth in 2025."

INVESTMENT ACTIVITY

Acquisitions

• During the three months ended December 31, 2024, the Company acquired four shopping centers and one land parcel at an existing property for a combined purchase price of $211.8 million.
• During the twelve months ended December 31, 2024, the Company acquired seven shopping centers and two land parcels at existing properties for a combined purchase price of $293.0 million.
• Acquisitions completed during the three months ended December 31, 2024 include:
  • The Plaza at Buckland Hills, an approximately 308,000 square foot grocery-anchored regional center located immediately adjacent to the Company's The Manchester Collection in Manchester, Connecticut (Hartford-West Hartford-East Hartford, CT CBSA), for $67.5 million. The Plaza at Buckland Hills is anchored by Trader Joe's, Marshalls, and Total Wine & More and presents growth opportunities through below-market in-place rents.
  • Britton Plaza, an approximately 466,000 square foot grocery-anchored regional center strategically located in the dense, high-income market of South Tampa, Florida (Tampa-St. Petersburg-Clearwater, FL CBSA), for $60.5 million. The property is one of South Tampa's original open-air shopping centers and is anchored by a highly productive Publix and Marshalls. Britton Plaza has more than 118,000 square feet of vacancy, providing Brixmor an immediate and unique opportunity to capture strong tenant demand and redevelop and remerchandise the center.
  • North Ridge Shopping Center, an approximately 171,000 square foot grocery-anchored community shopping center located in Raleigh, North Carolina (Raleigh-Cary, NC CBSA), for $54.6 million. North Ridge Shopping Center is anchored by a Harris Teeter grocer and has substantial value creation opportunities, including leasing of existing vacancies and below-market in-place rents.
  • Huron Village, an approximately 118,000 square foot grocery-anchored neighborhood shopping center located in Ann Arbor, Michigan (Ann Arbor, MI CBSA), for $29.3 million. Huron Village is anchored by a highly productive Whole Foods Market and has near-term remerchandising opportunities. The property is located less than one-half mile from the Company's Arborland Center, strengthening the Company's footprint in the Ann Arbor market, specifically on one of the main routes directly in and out of the University of Michigan campus.

Dispositions

• During the three months ended December 31, 2024, the Company generated approximately $69.3 million of gross proceeds on the disposition of one shopping center, as well as two partial properties.
• During the twelve months ended December 31, 2024, the Company generated approximately $212.4 million of gross proceeds on the disposition of six shopping centers, as well as eight partial properties.

CAPITAL STRUCTURE  

• During the three months ended December 31, 2024, the Company raised approximately $96.6 million of gross proceeds, excluding commissions, from the sale of approximately 3.4 million shares of common stock at an average price per share of $28.77 through its at-the-market ("ATM") equity offering program.
• During the twelve months ended December 31, 2024, the Company raised approximately $116.6 million of gross proceeds, excluding commissions, from the sale of approximately 4.1 million shares of common stock at an average price per share of $28.62 through its ATM equity offering program.

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
  • YouTube at https://www.youtube.com/user/Brixmor

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 63 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
The presentation referenced in this 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.

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SOURCE Brixmor Property Group, Inc.

FAQ

How much did Brixmor (BRX) spend on acquisitions in Q4 2024?

Brixmor spent $211.8 million on acquisitions in Q4 2024, which included four shopping centers and one land parcel.

What was Brixmor's (BRX) total disposition value for 2024?

Brixmor generated approximately $212.4 million in gross proceeds from dispositions in 2024, including six shopping centers and eight partial properties.

How many shares did Brixmor (BRX) sell through its ATM program in 2024?

Brixmor sold approximately 4.1 million shares through its ATM program in 2024 at an average price of $28.62 per share, raising $116.6 million.

What were the major properties acquired by Brixmor (BRX) in Q4 2024?

Major Q4 2024 acquisitions included The Plaza at Buckland Hills ($67.5M), Britton Plaza ($60.5M), North Ridge Shopping Center ($54.6M), and Huron Village ($29.3M).