Brixmor Property Group (BRX) BofA Global Real Estate Conference 2024 summary

Strategy and portfolio transformation

• Owns 360 open-air shopping centers, 80% grocery-anchored, with major tenants like Kroger and Publix.

• Transformed portfolio by selling $2.5B in assets, deleveraging, and reinvesting in under-rented centers.

• In-place average base rent (ABR) increased from $12 to $17+, with new leases in the low $20s per sq ft.

• 40% of assets have been impacted by reinvestment, driving record rates, occupancy, and growth.

• $63M in signed but not commenced rent provides visibility for future growth.

Leasing environment and tenant demand

• Sector-leading leasing volumes and spreads, with high demand from retailers for limited supply.

• 80% of portfolio is grocery-anchored, focusing on top market grocers and specialty operators.

• Traffic at centers is increasing, outperforming peers, driven by daily needs and best-in-class grocers.

• Retention rates and renewal rates are at all-time highs, with move-outs at record lows.

• Demand for space is broad-based and improving, with more tenants competing for less available space.

Re-tenanting and value creation

• Successfully backfilled Bed Bath & Beyond and Big Lots spaces with specialty grocers, fitness, and off-price users.

• Achieved 37% rent growth on re-leased Bed Bath & Beyond spaces, with similar opportunities for Big Lots.

• Splitting large boxes led to higher rents and improved tenant mix.

• Ancillary benefits include unlocking development potential and removing long-standing restrictions.