Brixmor Property Group (BRX) Q1 2025 earnings summary

Executive summary

• Achieved strong leasing activity with 1.3 million sq ft of new and renewal leases at blended cash spreads of 20.5%-21%, with new lease spreads at 47.5%-48% and renewals at 14%.

• Portfolio comprised 361 shopping centers totaling 64 million sq. ft. as of March 31, 2025, primarily anchored by non-discretionary and value-oriented retailers.

• Successfully backfilled 75% of recaptured Big Lots space at spreads over 50%, and are making progress on Party City and Joann spaces.

• Reinvestment projects delivered on time and on budget, with $391 million in-process at a weighted average 10% return.

• Signed but not commenced (SNO) pipeline remains robust at $60 million, providing strong forward visibility for growth into 2025 and 2026.

Financial highlights

• Total revenues for Q1 2025 were $337.5 million, up $17.3 million from Q1 2024, driven by higher base rent, expense reimbursements, and lease termination fees.

• NAREIT FFO was $171.1 million ($0.56 per diluted share) in Q1, up from $163.4 million ($0.54 per share) year-over-year.

• Same property NOI increased 2.8% year-over-year, driven by base rent growth.

• Net income attributable to Brixmor was $69.7 million ($0.23 per diluted share), down from $88.9 million ($0.29 per share) in Q1 2024.

• Operating expenses rose to $217.9 million from $198.3 million, mainly due to higher depreciation, real estate taxes, and operating costs.

Outlook and guidance

• Affirmed 2025 Nareit FFO per diluted share guidance of $2.19–$2.24 and same property NOI growth of 3.5%–4.5%.

• Expect base rents to accelerate in the second half of 2025 as SNO pipeline rents commence.

• Revenues deemed uncollectible expected within historical run rate of 75–110 basis points of total revenues.

• Management anticipates adequate capital for all obligations over the next 12 months, supported by strong liquidity and access to multiple capital sources.

• Guidance excludes additional one-time items impacting FFO comparability.