Brixmor Property Group (BRX) Q4 2024 earnings summary

Executive summary

• Achieved 5% growth in both NOI and bottom line FFO, driven by strong leasing and portfolio transformation, with 1.5M sq ft of new/renewal leases in Q4 and rent spreads on new leases at 34.4%.

• 81% of ABR now comes from grocery-anchored centers, with average productivity over $700 per foot and 363 open-air shopping centers.

• Net income attributable to shareholders rose to $339.3M ($1.11/share) for 2024, up from $305.1M ($1.01/share) in 2023.

• Redevelopment and construction delivered $205M of reinvestment at a 9% incremental return, with an in-process pipeline of nearly $400M at a 10% return.

• Moody’s upgraded credit rating to Baa2 with a stable outlook in December 2024.

Financial highlights

• Nareit FFO was $0.53 per share in Q4 2024 and $2.13 per share for the year, both increasing year-over-year.

• Full-year property NOI growth was 5%, with same property NOI growth of 4.7% in Q4.

• In-place ABR PSF hit a record $17.66; small shop new lease ABR PSF reached $30.60.

• Total leased occupancy reached 95.2% at year-end 2024, with small shop leased occupancy at a record 91.1%.

• Signed but not yet commenced pool totaled $61M at $21 per sq ft, with $53M expected to commence in 2025.

Outlook and guidance

• 2025 Nareit FFO guidance is $2.19-$2.24 per share, representing 4% growth at the midpoint.

• Guidance for 2025 same property NOI growth is 3.5% to 4.5%, including a 200 basis point drag from tenant disruption.

• 87% of signed-not-commenced ABR expected to commence by year-end 2025.

• Revenues deemed uncollectible expected at 75-110 basis points of total revenues, consistent with historical rates.

• Long-term same property NOI growth target of 4.0%, outpacing peer average of 2.9%.