Brixmor Property Group (BRX) Q2 2024 earnings summary

Executive summary

• Achieved record occupancy and leasing spreads, with average new lease rents of $23.82/ft versus $17.25/ft in-place rents, and portfolio of 360 shopping centers totaling 64 million sq. ft. GLA in top U.S. markets.

• Billed and leased occupancy as of June 30, 2024, were 91.4% and 95.4%, up from 90.4% and 94.1% year-over-year.

• Raised FFO guidance to $2.11-$2.14 per share, reflecting nearly 6% FFO growth year-over-year, and increased same-property NOI growth guidance.

• Commenced $17M of ABR in the quarter, with signed but not commenced ABR replenished to $65M, providing strong visibility for future revenue growth.

• Announced executive promotions effective July 24, 2024, reflecting internal strength.

Financial highlights

• NAREIT FFO was $0.54 per share in Q2 2024, up from $0.52 per share year-over-year, driven by 5.5% same-property NOI growth.

• Total revenues for Q2 2024 were $315.7M, up $5.9M from Q2 2023; net income for Q2 2024 was $70.1M ($0.23/share), up from $56.4M ($0.19/share) year-over-year.

• Executed 1.4 million sq. ft. of new and renewal leases with record rent spreads of 27.7%.

• Debt to EBITDA reduced to 5.6x, with $1.7B in liquidity at quarter-end.

• Dividend declared at $0.2725 per share for Q3 2024 (annualized $1.09).

Outlook and guidance

• 2024 Nareit FFO per diluted share guidance raised to $2.11–2.14; same-property NOI growth guidance increased to 4.25%–5.00%.

• Management expects adequate capital for the next 12 months and beyond, supported by strong operating cash flow and $1.72B in liquidity.

• Revenues deemed uncollectible expected to end 2024 at 50-75 bps of total revenues, improved from prior guidance.

• Reinvestment pipeline supports $150M-$200M annual spend in 2025 and 2026.

• Dividend of $0.2725/share declared for Q2 and Q3 2024, with intent to maintain REIT status by distributing at least 90% of taxable income.