Brixmor Property Group Inc. · NYSE:BRX
Brixmor Property — Q3 2023 Earnings Presentation
35 slides from Brixmor Property's earnings presentation, Oct 31, 2023
Slide 1: Brixmor Property Group Investor Presentation
Brixmor Property Group Investor Presentation Quarter Ended September 30, 2023 Brea Gateway | Los Angeles, California
Slide 2: Brixmor Overview: High Quality, Diversified, Open-Air Retail Portfolio
Brixmor Overview: High Quality, Diversified, Open-Air Retail Portfolio ❯ One of the largest open-air retail landlords in the US Portfolio Quick Facts Number of shopping centers 364 o Nationally diversified portfolio of 364 shopping centers favored by growing retailers GLA 65M SF Average shopping cen
Slide 3: Value-Add Leader in the Open-Air Retail Space
Value-Add Leader in the Open-Air Retail Space Transformed portfolio Demonstrated value Prudent capital uniquely positioned creation through recycling track for continued accretive reinvestment record outperformance Delivering Strong, flexible sustainable growth in balance sheet a purpose-driven, res
Slide 4: Transformed Portfolio Uniquely Positioned For Continued Outperformance
Transformed Portfolio Uniquely Positioned For Continued Outperformance
Slide 5: Transformed Portfolio Uniquely Positioned For Continued Outperformance
Transformed Portfolio Uniquely Positioned For Continued Outperformance Substantial portfolio enhancements through leasing, reinvestment, and capital recycling Our focused plan has driven a 31% increase in in-place ABR PSF At At 12/31/2015 9/30/2023 Change Properties 518 364 (154) Rationalized Portfo
Slide 6: Substantial outperformance since 2019
Transformed Portfolio Uniquely Positioned For Continued Outperformance Substantial outperformance since 2019 Same Property NOI Growth 1 New Lease Spreads 1 In-Place ABR PSF Change YE 2018 – 3Q 2023 1 2019 2020 2021 2022 2023E 2019 2020 2021 2022 3Q23 TTM Mid-point (as of 3Q23) 18.9% 41.9% 5-Year CAG
Slide 7: 3Q23 Highlights
Transformed Portfolio Uniquely Positioned For Continued Outperformance Portfolio transformation continues to drive outperformance across every observable metric 3Q23 Highlights Total leased In-place New lease New lease occupancy ABR PSF spreads ABR PSF 93.9% $16.77 53% $22.74 60bps increase y/y Reco
Slide 8: Clear visibility on forward growth through mark-to-market and signed leases
Transformed Portfolio Uniquely Positioned For Continued Outperformance Clear visibility on forward growth through the mark-to-market of existing leases and a substantial signed but not yet commenced pool Mark-to-Market Opportunity Tailwinds From Executed Leasing ❯ Attractive rent basis due to histor
Slide 9: Significant remaining occupancy opportunity
Transformed Portfolio Uniquely Positioned For Continued Outperformance Significant remaining occupancy opportunity ❭ Positioned to continue to grow occupancy and rent levels by capitalizing on robust, broad based leasing demand ❭ Value enhancing reinvestment activity is improving anchor tenancy and
Slide 10: Vibrant new retailers added over the last three years
Transformed Portfolio Uniquely Positioned For Continued Outperformance Vibrant new retailers added over the last three years Page 10
Slide 11: Retailer demand for physical stores in open-air formats remains elevated
Transformed Portfolio Uniquely Positioned For Continued Outperformance Retailer demand for physical stores in open-air retail formats remains elevated as brick-and-mortar locations have proven to be the most profitable channel “Take our stores which sit at the heart of our stores-as- “When you look
Slide 12: Proactively releasing at-risk tenant space
Transformed Portfolio Uniquely Positioned For Continued Outperformance Proactively releasing at-risk tenant space Robust retailer demand for Portfolio transformation attracting physical locations outsized retailer market share Accretive releasing activity on spaces impacted by retailer disruption Re
Slide 13: Demonstrated Value Creation Through Accretive Reinvestment
Demonstrated Value Creation Through Accretive Reinvestment
Slide 14: Creating value at lower risk
Demonstrated Value Creation Through Accretive Reinvestment Creating value at lower risk Creating Value Highly accretive incremental returns ❯ Brixmor’s reinvestment opportunity stands apart in terms of magnitude and velocity Driver of significant follow-on o Substantially funded with free cash f
Slide 15: Reinvestment is a value multiplier
Demonstrated Value Creation Through Accretive Reinvestment: Reinvestment is a value multiplier Maximum value creation Follow-on growth in Cap rate compression on Strong incremental returns occupancy and rate incremental and in-place NOI BRX Representative Representative Redevelopment vs. Redevelopme
Slide 16: Reinvestment Case Study: Shops at Palm Lakes
Demonstrated Value Creation Through Accretive Reinvestment: Reinvestment Case Study Shops at Palm Lakes | Miami, FL AFTER ❯ Redevelopment commenced June 2021 and is expected to stabilize December 2023 o Redeveloped a former Kmart with LA Fitness and dd’s Discounts (Ross) o Construction of six multi-
Slide 17: Reinvestment expertise: 252 projects stabilized
Demonstrated Value Creation Through Accretive Reinvestment Reinvestment expertise: 252 projects stabilized Shops at Riverhead | New York, NY Beneva Village Shoppes | North Port, FL Seminole Plaza | Tampa, FL Tinley Park Plaza | Chicago, IL Roseville Center | Minneapolis, MN Capitol Shopping Center |
Slide 18: Prudent Capital Recycling Track Record
Prudent Capital Recycling Track Record
Slide 19: Acquisition Opportunities and Disposition Strategy
Prudent Capital Recycling Track Record Acquisition Opportunities Disposition Strategy ❯ Remaining disciplined as we navigate a dynamic macro-economic ❯ Rationalizing the portfolio and harvesting capital where value has been environment maximized o We expect market pricing to soon begin to reflect hi
Slide 20: Value-add acquisitions in established markets
Prudent Capital Recycling Track Record Maximizing value through value-add acquisitions in established markets that leverage Brixmor’s proven platform Centennial Center Champlin Marketplace Ravinia Plaza North Riverside Plaza Elmhurst Crossing Arborland Center Plymouth Square Denver, CO Minneapolis,
Slide 21: Strong, Flexible Balance Sheet
Strong, Flexible Balance Sheet
Slide 22: Strong, Flexible Balance Sheet
Strong, Flexible Balance Sheet Capitalization & Ratios (at 9/30/23) Balance sheet provides critical financial and operational flexibility Debt Statistics Weighted avg. stated interest rate 3.8% ❯ $1.3B of available liquidity and a fully unencumbered portfolio Weighted avg. maturity 4.3 years ❯ Recen
Slide 23: Delivering Sustainable Growth in a Purpose-Driven, Responsible Manner
Delivering Sustainable Growth in a Purpose-Driven, Responsible Manner
Slide 24: Purpose-Driven Corporate Responsibility Strategy
Purpose-Driven Corporate Responsibility Strategy Corporate Responsibility Recognition Board of Directors • Oversees Corporate Responsibility (CR) initiatives through the Nominating and Corporate Governance Committee (NCGC) to ensure that our actions consistently demonstrate our Received overall sc
Slide 25: Environmental Responsibility and Sustainability Goals
Purpose-Driven Commitment To ESG Goals: Environmental Responsibility Reducing environmental impact Sustainability Goals ❯ Energy efficiency: LED lighting conversions, motion sensor ❯ On-site renewable energy: solar panel installations Target Status 1 technology for parking lot lighting, reflective r
Slide 26: Community Connectivity
Purpose-Driven Commitment To ESG Goals: Community Connectivity ❯ Deliberately and thoughtfully merchandising our properties with a robust mix of relevant non- Center-Specific Art discretionary and value-oriented retailers, as well as consumer-oriented service providers Since 2019, we have offered ex
Slide 27: Human Capital
Purpose-Driven Commitment To ESG Goals: Human Capital Creating and sustaining a positive work environment Engagement Growth and Development Health and Well-being Encouraging growth and development by providing a Fostering collaborative, skilled, and motivated Commitment to employee health and variet
Slide 28: Diversity, Equity, and Inclusion
Purpose-Driven Commitment To ESG Goals: Diversity, Equity, and Inclusion (DEI) Diversity, Equity, and Inclusion We believe our performance is enhanced by an inclusive environment that reflects Leadership Council the diversity of the communities we serve. We advocate for DEI in every part of our • Re
Slide 29: Corporate Governance
Purpose-Driven Commitment To ESG Goals: Corporate Governance Leading The Industry Experienced, diversified, and effective Board of Directors 8/9 3/9 2/9 Independent directors Female directors Racially diverse directors Ranked third in REIT sector Received the highest possible corporate for Corporate
Slide 30: Appendix
Appendix
Slide 31: Portfolio Composition
Portfolio Composition National / Regional and Local Tenants Top Merchandise Mix Categories (% of Portfolio ABR) Local 16% Local 20% Restaurants 16% Percent of Percent of Other Portfolio Portfolio 32% Leased GLA ABR Grocery / Pharmacy 15% National / National / Regional 84% Regional 80% Other Personal
Slide 32: Small Shop Leasing: Demand Remains High Across Multiple Categories
Small Shop Leasing: Demand Remains High Across Multiple Merchandise Categories Percent of Small Shop New Lease ABR by Merchandise Mix – TTM Restaurants Other 14% Value Apparel, Shoes, Accessories 5% 37% 7% Fitness / Sports Services 1 10% 27% General Merchandise (department, gift, etc.) 1. Services i
Slide 33: Additional Information
Additional Information
Slide 34: REITs: General information and fundamentals
REITs General information and fundamentals 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 advantag
Slide 35: Footnotes & Sources
Footnotes & Sources Page 2 Brixmor Overview High quality, diversified, open-air retail portfolio Page 9 Transformed Portfolio Uniquely Positioned For Continued Outperformance 1. By ABR. Community Centers include properties with total GLA between 125K - 400K SF. Neighborhood Centers include propertie
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