Brixmor Property Group Inc. · NYSE:BRX
Brixmor Property — Q1 2023 Earnings Presentation
36 slides from Brixmor Property's earnings presentation, May 2, 2023
Slide 1: Brixmor Property Group Investor Presentation
Brixmor Property Group Investor Presentation Quarter Ended March 31, 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 367 o Nationally diversified portfolio of 367 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 Demonstrated value Prudent capital portfolio uniquely creation through recycling track positioned for accretive reinvestment record outperformance Delivering Strong, flexible sustainable growth in balance sheet a purpose-driven, responsible m
Slide 4: Transformed Portfolio Uniquely Positioned For Outperformance
Transformed Portfolio Uniquely Positioned For Outperformance
Slide 5: Transformed Portfolio Uniquely Positioned For Outperformance
Transformed Portfolio Uniquely Positioned For Outperformance Substantial portfolio enhancement achieved since year-end 2015 Leasing, value-enhancing reinvestment activity, and prudent capital recycling have driven a 29% increase in in-place ABR PSF At At 12/31/2015 3/31/2023 Rationalized Portfolio F
Slide 6: Substantial outperformance since 2019
Transformed Portfolio Uniquely Positioned For Outperformance Substantial outperformance since 2019 Same Property NOI Growth 1 New Lease Spreads 1 In-Place ABR PSF Change YE 2018 – 1Q 2023 1 2019 2020 2021 2022 2023E 2019 2020 2021 2022 1Q23 TTM Mid-point 38.8% 16.7% 5-Year CAGR: 3.1% 5-Year CAGR: 1.
Slide 7: 1Q23 Highlights
Transformed Portfolio Uniquely Positioned For Outperformance Portfolio transformation continues to drive outperformance across every observable metric 1Q23 Highlights Total leased In-place New lease New lease New lease occupancy ABR PSF ABR PSF NER PSF 1 spread 94.0% $16.46 $20.12 $19.14 43% Record
Slide 8: Clear visibility on continued growth
Transformed Portfolio Uniquely Positioned For Outperformance Clear visibility on continued growth Mark-to-Market Opportunity Tailwinds From Executed Leasing ❯ Attractive rent basis due to historic portfolio under-investment and under- ❯ Leased to billed occupancy spread of 400 basis points managemen
Slide 9: Significant remaining occupancy opportunity
Transformed Portfolio Uniquely Positioned For 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 fueling sm
Slide 10: Vibrant new retailers added over the last three years
Transformed Portfolio Uniquely Positioned For Outperformance Vibrant new retailers added over the last three years Page 10
Slide 11: Retailer demand for physical stores remains elevated
Transformed Portfolio Uniquely Positioned For Outperformance Despite macro-economic headwinds, 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 “Key to our success is our strong “New stores...
Slide 12: Proactively releasing at-risk tenant space
Transformed Portfolio Uniquely Positioned For 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 EXECUTED EXE
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: Cudahy Plaza
Demonstrated Value Creation Through Accretive Reinvestment: Reinvestment Case Study Cudahy Plaza | Los Angeles, CA AFTER › Redevelopment commenced December 2019 and stabilized September 2021 o Redeveloped a former Kmart with Burlington, Chuze Fitness, and Epic Wings o Upgraded the center with new fa
Slide 17: Reinvestment expertise: Over 240 projects stabilized
Demonstrated Value Creation Through Accretive Reinvestment Reinvestment expertise: Over 240 projects stabilized Stewart Plaza I New York, NY Parkway Plaza I Long Island, NY Annex of Arlington I Arlington Heights, IL Village at Newtown I Philadelphia, PA Page 17
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 given macro-economic environment ❯ Rationalizing the portfolio and harvesting capital where value has been maximized o Potential for compelling acquisition opportunities as private, asset le
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 3/31/23) Balance sheet provides critical financial and operational flexibility Debt Statistics ❯ Subsequent to quarter end, repurchased $200M of 3.65% Senior Notes due 2024 pursuant to a cash tender offer Weighted avg. stated interest rate 3
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 NCGC Green Star Recipient for the s
Slide 25: ESG Goals: Environmental Responsibility
Purpose-Driven Commitment To ESG Goals: Environmental Responsibility Reducing environmental impact Sustainability Goals ❯ Energy efficiency projects: LED lighting conversions, ❯ Water management projects: xeriscaping, smart water meters, Target Status 1 motion sensor technology for parking lot light
Slide 26: ESG Goals: Community Connectivity
Purpose-Driven Commitment To ESG Goals: Community Connectivity ❯ Deliberately and thoughtfully merchandising our properties with a robust mix of relevant non- Community Outreach discretionary and value-oriented retailers, as well as consumer-oriented service providers Artistic Connection | James Isl
Slide 27: ESG Goals: 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 Commitment to employee health Fostering collaborative, skilled, and motivated teams vari
Slide 28: ESG Goals: 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: ESG Goals: Corporate Governance
Purpose-Driven Commitment To ESG Goals: Corporate Governance Leading The Industry Experienced, diversified, and effective Board of Directors 7/8 3/8 1/8 Independent directors Female directors Racially diverse directors Ranked second in REIT sector Received the highest possible corporate 60 years 7 y
Slide 30: Tracking our Commitment To ESG Goals
Tracking our Commitment To ESG Goals Select ESG performance indicators from 2021 CR Report Reducing Our Impact Building A Stronger Brixmor Investor Outreach GHG Emissions (tonnes CO2e) 2020 2021 99% 20 32K+ 15 ~300 600+ Scope 1 GHG emissions 3,772 3,724 Employees proud Participants in tuition Hours
Slide 31: Appendix
Appendix
Slide 32: Portfolio Composition
Portfolio Composition National / Regional and Local Tenants Top Merchandise Mix Categories (% of Portfolio ABR) Local 17% Local 21% Restaurants 15% Percent of Percent of Other Portfolio Portfolio 32% Leased GLA ABR Grocery / Pharmacy 15% National / National / Regional 83% Regional 79% Other Personal
Slide 33: Small Shop Leasing: Demand Remains High Across Categories
Small Shop Leasing: Demand Remains High Across Multiple Merchandise Categories Percent of Small Shop New Lease ABR by Merchandise Mix – TTM Services Other 1 17% 33% Fitness / Sports 6% 6% Value Apparel, Shoes, Accessories 7% Restaurants 31% General Merchandise (department, gift, etc.) 1. Services in
Slide 34: Additional Information
Additional Information
Slide 35: 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 36: Footnotes & Sources
Footnotes & Sources Page 2 Brixmor Overview Page 8 Transformed Portfolio Uniquely Positioned For Outperformance High quality, diversified, open-air retail portfolio Clear visibility on continued growth 1. By ABR. Community Centers include properties with total GLA between 125K - 400K SF. Neighborhoo
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