BRIXMOR PROPERTY GROUP REPORTS SECOND QUARTER 2024 RESULTS
Brixmor Property Group (NYSE: BRX) reported strong Q2 2024 results, with net income of $0.23 per diluted share and Nareit FFO of $0.54 per diluted share. Key highlights include:
- Record rent spreads of 27.7% on new and renewal leases
- Total leased occupancy increased to a record 95.4%
- Same property NOI growth of 5.5%
- $36.8 million of reinvestment projects stabilized at 9% NOI yield
- $17.3 million of acquisitions completed
The company raised its 2024 guidance, now expecting Nareit FFO of $2.11-$2.14 per share and same property NOI growth of 4.25-5.00%. Brixmor also announced several executive promotions, including Brian T. Finnegan to President and COO.
Brixmor Property Group (NYSE: BRX) ha riportato risultati solidi per il Q2 2024, con un reddito netto di $0,23 per azione diluita e Nareit FFO di $0,54 per azione diluita. I punti salienti includono:
- Spread di affitto record del 27,7% su nuovi contratti e rinnovi
- L'occupazione totale affittata è aumentata a un record del 95,4%
- Crescita del NOI della stessa proprietà del 5,5%
- Progetti di reinvestimento per $36,8 milioni stabilizzati a un rendimento NOI del 9%
- $17,3 milioni di acquisizioni completate
L'azienda ha alzato le sue previsioni per il 2024, ora prevedendo Nareit FFO di $2,11-$2,14 per azione e una crescita del NOI della stessa proprietà del 4,25-5,00%. Brixmor ha anche annunciato diverse promozioni esecutive, tra cui Brian T. Finnegan come Presidente e COO.
Brixmor Property Group (NYSE: BRX) reportó resultados sólidos para el Q2 2024, con un ingreso neto de $0.23 por acción diluida y Nareit FFO de $0.54 por acción diluida. Los puntos destacados incluyen:
- Diferenciales de alquiler récord del 27.7% en nuevos contratos y renovaciones
- La ocupación total arrendada aumentó a un récord del 95.4%
- Crecimiento del NOI de la misma propiedad del 5.5%
- Proyectos de reinversión por $36.8 millones estabilizados con un rendimiento de NOI del 9%
- $17.3 millones en adquisiciones completadas
La empresa aumentó su pronóstico para 2024, ahora esperando un Nareit FFO de $2.11 a $2.14 por acción y un crecimiento del NOI de la misma propiedad del 4.25% al 5.00%. Brixmor también anunció varias promociones ejecutivas, incluido a Brian T. Finnegan como Presidente y COO.
Brixmor Property Group (NYSE: BRX)는 Q2 2024의 강력한 실적을 보고했으며, 희석주당 순이익이 $0.23이고 Nareit FFO가 희석주당 $0.54였습니다. 주요 하이라이트는 다음과 같습니다:
- 신규 및 갱신 임대 계약에 대한 임대료 차이가 27.7%로 기록을 경신했습니다
- 총 점유율이 95.4%로 증가했습니다
- 동일 자산 NOI 성장률이 5.5%입니다
- NOI 수익률 9%로 안정화된 재투자 프로젝트가 $36.8 백만 달러입니다
- 완료된 인수는 $17.3 백만 달러입니다
회사는 2024년 전망을 상향 조정했습니다, 현재 Nareit FFO가 주당 $2.11에서 $2.14, 동일 자산 NOI 성장률이 4.25-5.00%로 예상됩니다. Brixmor는 또한 Brian T. Finnegan을 사장 겸 COO로 임명하는 등 여러 임원 프로모션을 발표했습니다.
Brixmor Property Group (NYSE: BRX) a annoncé des résultats solides pour le T2 2024, avec un revenu net de 0,23 $ par action diluée et un Nareit FFO de 0,54 $ par action diluée. Les faits marquants incluent :
- Écart de loyer record de 27,7 % sur les nouveaux baux et renouvellements
- Le taux d'occupation total a augmenté à un niveau record de 95,4 %
- Croissance du NOI de la même propriété de 5,5 %
- Projets de réinvestissement de 36,8 millions de dollars stabilisés avec un rendement NOI de 9 %
- Acquisitions d'un montant de 17,3 millions de dollars finalisées
L'entreprise a relevé ses prévisions pour 2024, s'attendant maintenant à un Nareit FFO de 2,11 à 2,14 $ par action et une croissance du NOI de la même propriété de 4,25 à 5,00 %. Brixmor a également annoncé plusieurs promotions au sein de la direction, dont Brian T. Finnegan en tant que Président et COO.
Brixmor Property Group (NYSE: BRX) hat starke Ergebnisse für das Q2 2024 gemeldet, mit einem Nettogewinn von $0,23 pro verwässerter Aktie und Nareit FFO von $0,54 pro verwässerter Aktie. Zu den wichtigsten Punkten gehören:
- Rekord-Mietspreads von 27,7% bei neuen und verlängerten Mietverträgen
- Die Gesamtmietauslastung stieg auf einen Rekordwert von 95,4%
- NOI-Wachstum der gleichen Immobilie von 5,5%
- Stabilisierte Reinvestitionsprojekte in Höhe von $36,8 Millionen mit einem NOI-Ertrag von 9%
- Abgeschlossene Akquisitionen im Wert von $17,3 Millionen
Das Unternehmen hat seine Prognosen für 2024 angehoben, erwartet nun einen Nareit FFO von $2,11-$2,14 pro Aktie und ein NOI-Wachstum der gleichen Immobilie von 4,25-5,00%. Brixmor gab außerdem mehrere Beförderungen im Management bekannt, darunter Brian T. Finnegan als Präsident und COO.
- Record rent spreads of 27.7% on new and renewal leases
- Total leased occupancy increased to a record 95.4%
- Same property NOI growth of 5.5%
- Raised 2024 guidance for Nareit FFO and same property NOI growth
- Stabilized $36.8 million of reinvestment projects at 9% NOI yield
- Issued $400 million of 5.750% Senior Notes due 2035
- Net principal debt to adjusted EBITDA ratio of 5.6x (current quarter annualized)
Insights
Brixmor Property Group's Q2 2024 results demonstrate strong operational performance and positive momentum in the retail real estate sector. Key highlights include:
- Record leasing spreads of
27.7% on comparable space, with new leases at50.2% - Record occupancy levels:
95.4% total,97.5% anchor and90.8% small shop - Same property NOI growth of
5.5% - Nareit FFO of
$163.8 million , or$0.54 per diluted share
The company has increased its 2024 guidance, now expecting Nareit FFO per diluted share of
Brixmor's focus on value-enhancing reinvestment opportunities is noteworthy, with 44 projects in the pipeline expected to yield an average incremental NOI of
The company's balance sheet remains solid, with
Overall, Brixmor's Q2 results and increased guidance paint a positive picture for investors, reflecting the strength of the grocery-anchored retail sector and the company's effective operational strategies.
Brixmor's Q2 2024 results offer valuable insights into the current state of the retail real estate market, particularly in the grocery-anchored shopping center segment. The company's strong performance indicators suggest a robust recovery and growth in this sector:
- Record leasing spreads of
27.7% indicate strong demand for retail space and landlords' pricing power. - High occupancy rates (total
95.4% , anchor97.5% , small shop90.8% ) reflect retailers' expansion plans and the resilience of physical retail. - Same property NOI growth of
5.5% demonstrates the ability to drive organic growth through effective property management and leasing strategies.
The company's acquisition strategy, focusing on properties with value-creation opportunities, aligns with broader market trends. The purchases of West Center in New York and The Fresh Market Shoppes in South Carolina highlight the continued attractiveness of grocery-anchored centers in high-demographic areas.
Brixmor's reinvestment pipeline, comprising 44 projects with an expected average incremental NOI yield of
The increased guidance for 2024 suggests a positive outlook for the retail real estate sector, with expectations of continued strong leasing activity and NOI growth. This optimism is a positive signal for the broader commercial real estate market, indicating that well-located, high-quality retail properties continue to perform strongly despite ongoing challenges in other real estate sectors.
- Continued to Deliver Record Operating Metrics -
- Increased Nareit FFO and Same Property NOI Growth Expectations For 2024 -
- Announced Executive Promotions -
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 of50.2% - Sequentially increased total leased occupancy to a record
95.4% , anchor leased occupancy to a record97.5% , and small shop leased occupancy to a record90.8% - Commenced
$17.0 million - 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
- Commenced
- 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 $0.54 - Stabilized
$36.8 million 9% , with the in process reinvestment pipeline totaling$509.6 million 9% - Completed
$17.3 million $0.3 million - Issued
$400.0 million 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 $2.08 $2.11 4.25% -5.00% from3.50% -4.25% - Completed
$23.6 million - 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 $0.23 $56.4 million $0.19 - For the six months ended June 30, 2024 and 2023, net income was
$159.0 million $0.52 $168.7 million $0.56
Nareit FFO
- For the three months ended June 30, 2024 and 2023, Nareit FFO was
$163.8 million $0.54 $157.1 million $0.52 $0.3 million $0.00 $4.3 million $0.01 - For the six months ended June 30, 2024 and 2023, Nareit FFO was
$327.2 million $1.08 $308.7 million $1.02 $0.2 million $0.00 $4.3 million $0.01
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
$0.27 25$1.09 - 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 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 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 9% . The in process pipeline includes 19 anchor space repositioning projects with an aggregate net estimated cost of approximately$95.2 million 7% -14% ; eight outparcel development projects with an aggregate net estimated cost of approximately$19.9 million 11% ; and 17 redevelopment projects with an aggregate net estimated cost of approximately$394.5 million 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 inEast Setauket (New York -Newark -Jersey City , NY-NJ-PA CBSA), for$17.3 million - 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
Dispositions
- During the three months ended June 30, 2024, the Company generated approximately
$0.3 million - During the six months ended June 30, 2024, the Company generated approximately
$69.3 million
CAPITAL STRUCTURE
- On May 28, 2024, the Company's operating partnership, Brixmor Operating Partnership LP, issued
$400.0 million 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 - 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 $2.08 $2.11 4.25% -5.00% from3.50% -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 | ||
Net income | ||||
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 |
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 | 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, | |||||||
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 | 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 | (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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SOURCE Brixmor Property Group Inc.
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