Brixmor Property Group Inc. · NYSE:BRX
Brixmor Property — Investor Presentation (September 2020)
35 slides from Brixmor Property's investor presentation, Sep 10, 2020
Slide 1: Investor Presentation Quarter Ended June 30, 2020
Investor Presentation QUARTER ENDED June 30, 2020 Exhibit 99.1
Slide 2: Quty celllely Uy you
Quty celllely Uy you
Slide 3: Who Is Brixmor? Portfolio Quick Facts
BRIXMOR? We are one of the largest open-air retail landlords in the US, with a nationally diversified portfolio of 398 shopping centers We strive for our properties to be the “centers of the communities we serve” by thoughtfully merchandising our centers with non-discretionary essential uses and val
Slide 4: Why invest with us at Brixmor?
Why invest with us at Brixmor?
Slide 5: Positioned to Outperform Over the Long-Term
POSITIONED TO OUTPERFORM OVER THE LONG-TERM We have a high quality, diversified portfolio of open-air shopping centers that serve essential consumer needs We own a retail product type that is well-positioned for the future We can generate attractive long-term growth at lower risk We benefit from a b
Slide 6: High quality, diversified portfolio of open-air shopping centers
We have a high quality, diversified portfolio of open-air shopping centers that serve essential consumer needs
Slide 7: Merchandise Mix Matters
MERCHANDISE MIX MATTERS WHY BRIXMOR? Portfolio Composition1 Essential 33% Hybrid 24% Other Retail / Services 43% ~70% of centers are grocery-anchored 57% of portfolio ABR is derived from essential / hybrid retailers Over 95% of shopping center ABR is open and operating Merchandise mix driving improv
Slide 8: Strong Collections and Conservative Reserves
STRONG COLLECTIONS AND CONSERVATIVE RESERVES WHY BRIXMOR? Brixmor Base Rent Reserves ($M) 2Q20 Accrued but Uncollected Base Rent Revenues Deemed Uncollectible Associated with 2Q20 Accrued Base Rent % Reserved At June 30, 2020 Rent deferrals (not lease modifications) $12,609 $2,778 22% Accrued but un
Slide 9: Portfolio Diversification: Top Retailers by ABR
Top Retailers by ABR Retailer Stores % of ABR % of GLA Credit Rating (S&P / Moody’s) 86 3.4% 3.7% A / A2 50 2.8% 4.8% BBB / Baa1 123 1.8% 2.0% BBB- / Baa3 26 1.6% 1.9% BB / Ba2 29 1.4% 1.8% NR 21 1.3% 1.6% BBB / Baa1 36 1.3% 1.4% BBB+ / A2 15 1.3% 0.9% CCC+ / Caa1 15 1.1% 1.2% B+ / B1 30 1.1% 1.1% B
Slide 10: We own a retail product type well-positioned for the future
We own a retail product type that is well-positioned for the future
Slide 11: Well-Positioned for Acceleration of Pre-COVID-19 Trends
WELL-POSITIONED FOR ACCELERATION OF PRE-COVID-19 TRENDS Consumers Renewed focus on proximity and being local Importance of convenience and ease of use, combined with health and safety Accelerated shift to buy online, pick-up in store (“BOPIS”) and curbside pickup Added work-from-home flexibility rea
Slide 12: Importance of Brick & Mortar
IMPORTANCE OF BRICK & MORTAR Brixmor’s shopping centers offer flexibility for retailers and proximity to consumers to assist our tenants in utilizing BOPIS and curbside options to drive sales, engage safely with customers, and cut delivery costs WHY BRIXMOR? “In support of our digital strategy, we p
Slide 13: We can generate attractive long-term growth at lower risk
We can generate attractive long-term growth at lower risk
Slide 14: Uniquely Positioned Portfolio
46% 96% 100% 82% UNIQUELY POSITIONED PORTFOLIO WHY BRIXMOR? More Upside Less Downside Proactive risk reduction and strategic remerchandising over the last four years have resulted in lower relative watchlist exposure Reducing exposure ↓ Increasing market share ↓ Attractive rent basis due to historic
Slide 15: Continued Opportunity to Invest in Assets & Drive Future Growth
CONTINUED OPPORTUNITY TO INVEST IN ASSETS & DRIVE FUTURE GROWTH At lower risk Effectively pre-leased Highly accretive returns Smaller project sizes / shorter timelines Incremental follow-on growth impact Small percent of enterprise value in program, with outsized impact No new ground-up development
Slide 16: Best-in-class, fully integrated national operating platform
We benefit from a best-in-class, fully integrated national operating platform with the capabilities necessary to maximize portfolio value
Slide 17: National Operating Platform
NATIONAL OPERATING PLATFORM Durable business plan proven before, during, and after COVID-19 WHY BRIXMOR? Retooled platform and business plan Over the last four years, we have built a best-in-class operating platform Fully integrated, multi-disciplinary national operating platform positioned to drive
Slide 18: Helping Our Retailers Succeed During COVID-19
HELPING OUR RETAILERS SUCCEED DURING COVID-19 WHY BRIXMOR? Tenant Strategy Ongoing communication with tenants is our top priority Primarily focused on assisting all tenants as they navigate the current environment Special attention given to supporting the recovery of local, small shop tenants Implem
Slide 19: Helping Our Retailers Succeed During COVID-19: Barret Place
HELPING OUR RETAILERS SUCCEED DURING COVID-19 WHY BRIXMOR? Barret Place | Atlanta, GA Best Buy curb-side pick-up Safe disposal areas for gloves and masks Takeout and curb-side pickup signage Reserved parking signage for curb-side pickup Ensuring we support local businesses through the crisis Maintai
Slide 20: Demonstrated track record of disciplined capital allocation
We have a demonstrated track record of disciplined capital allocation
Slide 21: Portfolio + Platform Transformation Providing Stability & Growth
PORTFOLIO + PLATFORM TRANSFORMATION PROVIDING STABILITY & GROWTH Actions taken over last four years have positioned Brixmor to navigate today’s environment and thrive as COVID-19 dissipates WHY BRIXMOR? Rationalized portfolio footprint Strengthened balance sheet Disciplined value enhancing reinvestm
Slide 22: Flexible, Lower Risk Reinvestment Program
FLEXIBLE, LOWER RISK REINVESTMENT PROGRAM Curtailed spending on certain projects, reducing projected 2020 spend by ~$100M (including maintenance capital expenditures) Preserves precious liquidity in 2020, while maintaining the growth and long-term value creation embedded in signed leases Expect to s
Slide 23: Substantial liquidity and no near-term debt maturities
We have substantial liquidity and no near-term debt maturities, providing critical financial and operational flexibility
Slide 24: Balance Sheet Providing Maximum Flexibility
BALANCE SHEET PROVIDING MAXIMUM FLEXIBILITY $1.8B of available liquidity, comprised of ~$601M of cash and ~$1.2B of revolver capacity Entirely unencumbered portfolio, providing substantial financial and operational flexibility Dividend temporarily suspended, to be evaluated quarterly Committed to em
Slide 25: Committed to being socially responsible
We are committed to being socially responsible, guided by our mission to be the “center of the communities we serve”
Slide 26: Founded in the Well-Being of Our Stakeholders
FOUNDED IN THE WELL-BEING OF OUR STAKEHOLDERS Our Corporate Responsibility (CR) strategy is driven by our culture, our properties and our stakeholders and guided by our mission to be the centers of the communities we serve Brixmor’s Board of Directors oversees the CR strategy and drives its implemen
Slide 27: Being the Center of the Communities We Serve
BEING THE CENTER OF THE COMMUNITIES WE SERVE Safely supporting philanthropic and volunteer efforts, including: Food donation and pick-up locations supported by Brixmor through corporate donations and Facebook ads Hosting blood donation drives and mobile COVID-19 testing centers, where feasible Facil
Slide 28: Communication, Connectivity & Support
COMMUNICATION, CONNECTIVITY & SUPPORT Seamlessly transitioned employees to work from home in early March Planning underway for safe re-entry, with enhanced flexibility Communication Bi-weekly all-employee calls “The Brixmor Daily” bulletin, comprised of helpful hints to maximize the efficiency of wo
Slide 29: Diversity and Inclusion
DIVERSITY AND INCLUSION OUR CULTURE Annual employee pledge to create and maintain an inclusive culture, free from harassment based on sexual orientation, gender, and other protected classes Recently instituted a Diversity and Inclusion Leadership Council Enhancing recruiting practices to support foc
Slide 30: Relevant, Vibrant, Sustainable
RELEVANT, VIBRANT, SUSTAINABLE Operating responsibly while reducing our environmental impact Reductions in electric usage and greenhouse gas emissions Conversion to LED lighting Development of on-site renewable energy, facilitated through green lease provisions and providing tenants with lower cost
Slide 31: Corporate Governance Leading the Industry
CORPORATE GOVERNANCE LEADING THE INDUSTRY OUR STAKEHOLDERS Ranked 2nd of all public REITS in Green Street’s 2020 corporate governance rankings Unclassified Board of Directors Mandatory board retirement age of 75 Strong director and officer stock ownership No supermajority voting standards Majority v
Slide 32: Additional Information
Additional Information
Slide 33: General Info & Fundamentals: REITs
GENERAL INFO & FUNDAMENTALS REITs What is a REIT? A REIT, or Real Estate Investment Trust, is a company that owns, operates or finances income-producing real estate. Modeled after mutual funds, REITs give all investors access to the benefits of real estate investment along with the advantages of inv
Slide 34: Footnotes & Sources
Footnotes & Sources
Slide 35: Footnotes & Sources; Disclaimer
FOOTNOTES & SOURCES DISCLAIMER Safe Harbor Language This presentation 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
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