Brixmor Property Group Inc. · NYSE:BRX
Brixmor Property — Investor Presentation (December 2022)
35 slides from Brixmor Property's investor presentation, Dec 31, 2022
Slide 1: Brixmor Property Group Investor Presentation
Brixmor Property Group Investor Presentation Quarter Ended December 31, 2022 Brea Gateway | Los Angeles, California
Slide 2: Brixmor Overview
Brixmor Overview Portfolio Quick Facts High quality, diversified, open-air retail portfolio Number of shopping centers 373 GLA 66M SF ❯ One of the largest open-air retail landlords in the US Average shopping center size 177K SF o Nationally diversified portfolio of 373 shopping centers favored by gr
Slide 3: Value-Add Leader in the Open-Air Retail Space
• Transformed portfolio uniquely positioned for Value-Add outperformance Leader in the • Demonstrated reinvestment value creation through accretive Open-Air • Prudent capital recycling track record Retail Space • Strong, flexible balance sheet • Delivering sustainable growth in a purpose- driven, re
Slide 4: Transformed Portfolio Uniquely Positioned For Outperformance
Transformed Portfolio Uniquely Positioned For Outperformance
Slide 5: Substantial portfolio enhancement achieved since year-end 2015
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 27% increase in in-place ABR PSF At At 12/31/2015 12/31/2022 Rationalized Portfolio
Slide 6: Significant outperformance since 2019
Transformed Portfolio Uniquely Positioned For Outperformance Significant outperformance since 2019 Same Property NOI Growth 1 New Lease Spreads 1 In-Place ABR PSF Change YE 2018 – YE 2022 1 2019 2020 2021 2022 2019 2020 2021 2022 37.0% 4-Yr 14.8% 11.5% 31.7% CAGR 3.2% 4-Yr 27.6% 11.4% 8.9% CAGR 1.5%
Slide 7: 2022 Milestones
Transformed Portfolio Uniquely Positioned For Outperformance Portfolio transformation driving continued outperformance across every observable metric 2022 Milestones Total leased In-place New lease New lease New lease occupancy ABR PSF ABR PSF NER PSF 1 spread 93.8% $16.19 $19.08 $18.12 37.0% 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 360 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 by capitalizing on robust, broad based leasing demand ❭ Significant ability to drive small shop occupancy and rent levels o Small shop leased occupancy
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: Thriving retailers continue to highlight importance of brick and mortar
Transformed Portfolio Uniquely Positioned For Outperformance Thriving retailers continue to highlight the importance of brick and mortar, growing new store pipelines and introducing new formats and prototypes “The off-price business is much more “On the long-term model, given our market “When you lo
Slide 12: Demonstrated Value Creation Through Accretive Reinvestment
Demonstrated Value Creation Through Accretive Reinvestment
Slide 13: Creating value at lower risk
Demonstrated Value Creation Through Accretive Reinvestment Creating value at lower risk Creating value Highly accretive incremental ❯ Brixmor’s reinvestment opportunity stands apart in terms of magnitude and velocity returns o Substantially funded with free cash flow on a deleveraging basis Driv
Slide 14: Reinvestment is a value multiplier
Demonstrated Value Creation Through Accretive Reinvestment: Reinvestment is a value multiplier Maximum value creation Strong incremental Follow-on growth in Cap rate compression returns occupancy and rate BRX Representative Representative Redevelopment vs. Redevelopment Small Shop Redevelopment Grou
Slide 15: Value delivered: Case study
Demonstrated Value Creation Through Accretive Reinvestment Value delivered: Case study $9M 11% $8M Venice Village | North Port, FL Invested 1 Incremental Value created 3 NOI yield 2 › Shopping center purchased in November 2017 for $33.5M › Redevelopment commenced June 2020 and stabilized December 20
Slide 16: Reinvestment expertise: Over 235 projects stabilized
Demonstrated Value Creation Through Accretive Reinvestment Reinvestment expertise: Over 235 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 16
Slide 17: Prudent Capital Recycling Track Record
Prudent Capital Recycling Track Record
Slide 18: Acquisitions and Dispositions
Prudent Capital Recycling Track Record Acquisitions Dispositions ❯ Selectively acquiring high-quality shopping centers from ❯ Rationalizing the portfolio and harvesting capital where value has identified target list been maximized o Focusing on value-add transactions that leverage the platform o Sin
Slide 19: Maximizing value through value-add acquisitions
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 20: Strong, Flexible Balance Sheet
Strong, Flexible Balance Sheet
Slide 21: Strong, Flexible Balance Sheet
Strong, Flexible Balance Sheet Capitalization & Ratios (at 12/31/22) Balance sheet provides critical financial and operational flexibility Debt Statistics ❯ Substantial liquidity and capacity Weighted avg. stated interest rate 3.7% Weighted avg. maturity 4.9 years o $1.3B of liquidity, including a $
Slide 22: Delivering Sustainable Growth in a Purpose-Driven, Responsible Manner
Delivering Sustainable Growth in a Purpose-Driven, Responsible Manner
Slide 23: Purpose-Driven Corporate Responsibility Strategy
Purpose-Driven Corporate Responsibility Strategy Board of Directors • Oversees Corporate Responsibility (CR) initiatives through the Nominating and Corporate NCGC Governance Committee (NCGC) to ensure that our actions consistently demonstrate our strong Corporate Responsibility Recognition commitmen
Slide 24: Sustainability Goals
Purpose-Driven Commitment To ESG Goals Sustainability Goals Environmental responsibility Target Status 1 Reducing environmental impact Install electric vehicle 25% 11% charging stations by 2025 (% of portfolio) ❯ Driving energy efficiency: LED lighting conversions, motion ❯ Managing water consumptio
Slide 25: Community Outreach
Purpose-Driven Commitment To ESG Goals Community Outreach Community connectivity Artistic Connection James Island, SC • During renovations at Island Plaza in James Island, SC, David ❯ Deliberately and thoughtfully merchandising our properties with a robust mix of relevant non-discretionary and Carpi
Slide 26: 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 Promoting a supportive and inclusive culture that fosters Encouraging growth and development by providing a Commitment to employee health
Slide 27: Diversity, Equity, and Inclusion
Purpose-Driven Commitment To ESG Goals Diversity, Equity, and Inclusion Diversity, equity, and inclusion (DEI) Leadership Council We believe our performance is enhanced by an inclusive environment that reflects the • Reports directly to diversity of the communities we serve. We advocate for DEI in e
Slide 28: Corporate governance and Board of Directors
Purpose-Driven Commitment To ESG Goals Experienced, diversified, and effective Board of Corporate governance Directors 8/9 1/3 1/9 Independent Female directors African American Leading the industry directors directors Ranked second in REIT sector for Corporate Governance* 61 years 6 years >75% Avera
Slide 29: 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 30: Appendix
Appendix
Slide 31: 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 33% Leased GLA ABR Grocery / Pharmacy 15% National / National / Regional 83% Regional 79% Other Personal
Slide 32: Small Shop Leasing: Demand Remains High
Small Shop Leasing: Demand Remains High Across Multiple Merchandise Categories Percent of Small Shop New Lease ABR by Merchandise Mix – TTM Services Other 1 19% 35% General Merchandise 6% (department, gift, etc.) 6% Fitness / Sports Restaurants 7% 27% Value Apparel, Shoes, Accessories 1. Services in
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 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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