The Zacks REIT and Equity Trust - Retail industry constituents are well-positioned to capitalize on favorable market conditions and evolving strategies. Strong consumer spending and limited new development underpin healthy fundamentals, while high-performing retail hubs continue to attract tenants. The relevance of physical retail remains strong, supported by omnichannel models and experience-driven formats. Companies like Brixmor Property Group Inc. (BRX) , Phillips Edison & Company, Inc. (PECO) and Urban ...

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in BRX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. No financ ...

Core Viewpoint - Brixmor Property Group (NYSE: BRX) has experienced modest performance over the past year, with a gain of just over 2%, despite solid results, primarily due to elevated interest rates impacting the real estate sector [1]. Company Performance - The company's stock has gained slightly over 2% in the past year, indicating a modest performance in a challenging market environment [1]. - Elevated interest rates have been identified as a significant headwind for the real estate industry, affecting overall performance [1]. Analyst Insights - The analyst has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories, aiming for outsized returns with a favorable risk/reward profile [1].

Financial Data and Key Metrics Changes - NAREIT FFO was $0.56 per share in the second quarter, driven by same property NOI growth of 3.8% despite a 260 basis point drag from tenant disruption [15][17] - The company expects to update its same property NOI growth guidance to 3.9% to 4.3% and increase FFO guidance to $2.22 to $2.25 [17] Business Line Data and Key Metrics Changes - Leasing activity included 1,700,000 square feet of new and renewal leases at a blended cash spread of 24%, with over 900,000 square feet of new leases at a 44% spread [10][11] - The average in-place annual base rent (ABR) reached a new record, with a signed but not yet commenced pool totaling $67 million [7][16] Market Data and Key Metrics Changes - The company reported a sequential occupancy growth to 94.2%, with small shop leasing reaching a new portfolio high of 91.2% [11][12] - The acquisition of La Centerra, a grocery-anchored lifestyle asset, is expected to drive significant traffic and enhance the portfolio's performance [8][32] Company Strategy and Development Direction - The company is focused on disciplined capital recycling, targeting lower growth assets for sale and redeploying proceeds into higher potential assets [8][9] - The strategy includes enhancing the portfolio through value-add projects and capturing opportunities from tenant disruptions [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumers and the strong demand for retail space, indicating a positive outlook for 2025 and beyond [13][14] - The company highlighted the importance of maintaining a strong credit profile and reducing exposure to at-risk tenants [24][25] Other Important Information - The company has a robust pipeline of identified projects worth several hundred million dollars, providing visibility on growth for the next several years [8] - The management emphasized the importance of capturing additional revenue through ancillary services and renegotiated agreements [37][41] Q&A Session Summary Question: About leasing in the quarter and future tenant disruption - Management noted strong leasing activity and expressed confidence in reaching a lease rate of 95% in the future, with a smaller watch list of at-risk tenants [20][24] Question: Rent collection and economic occupancy - Management indicated that rent commencements from backfills will accelerate base rent growth in the latter half of the year [26][27] Question: Opportunity at Lafayette and cap rate - The acquisition of La Centerra was highlighted as a classic example of value-added investing, with a cap rate in the low-6s and significant growth potential [30][33] Question: Same store NOI growth and other revenue drivers - Management explained that renegotiated agreements and backfilling vacant spaces contributed to the increase in other revenues [36][41] Question: Bad debt expense and leasing demand trends - Management expressed confidence in the underlying credit quality of the portfolio and noted that leasing demand remains strong despite potential headwinds [46][48] Question: Acquisition pipeline and competition - The company is focused on high-growth opportunities and remains disciplined in capital recycling while facing increased competition from private capital [72][74] Question: Future growth and tenant disruption - Management is optimistic about the portfolio's positioning and the potential for growth despite the possibility of additional tenant disruptions [106][107]

Financial Data and Key Metrics Changes - NAREIT FFO was $0.56 per share in the second quarter, driven by same property NOI growth of 3.8% despite a 260 basis point drag from tenant disruption [13][16] - The company updated its same property NOI growth guidance to 3.9% to 4.3% and increased FFO guidance to $2.22 to $2.25 [16] Business Line Data and Key Metrics Changes - Leasing activity included 1,700,000 square feet of new and renewal leases at a blended cash spread of 24%, with over 900,000 square feet of new leases at a 44% spread [9][10] - The signed but not commenced pipeline totaled $67 million, which includes $59 million of net new rent [14] Market Data and Key Metrics Changes - The company reported a sequential occupancy growth to 94.2%, despite a 70 basis point drag from bankruptcies [10] - Small shop leasing reached a new portfolio high of 91.2% [10] Company Strategy and Development Direction - The company is focused on a value add plan that includes disciplined capital recycling and reinvestment projects, with an expected project delivery range of $150 million to $200 million [5][6] - The acquisition of La Centerra is seen as a strategic move to capitalize on below-market rents and enhance the portfolio [7][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, citing strong traffic and collection trends, as well as a larger forward leasing pipeline compared to the previous year [11][12] - The company remains optimistic about its ability to deliver compelling growth in 2025 and beyond, despite tenant disruptions [12][16] Other Important Information - The company has a future pipeline of identified projects worth several hundred million dollars, providing visibility on growth for the next several years [6] - The company has $1.4 billion of available liquidity and no remaining debt maturities until June 2026 [15] Q&A Session Summary Question: Path to getting the portfolio's lease rate back to 95% and tenant disruption outlook - Management noted strong leasing activity and a smaller watch list of at-risk tenants, indicating confidence in achieving higher lease rates [21][22] Question: Rent collected in the quarter and expectations for Q3 - Management indicated that rent commencements from backfills will accelerate base rent growth in the latter half of the year [24][25] Question: Same store NOI growth and driving factors - The increase in other revenues was attributed to a renegotiated parking agreement and efforts to capitalize on temporarily vacant spaces [35][36] Question: Bad debt expense and potential headwinds - Management expressed confidence in the underlying credit quality of the portfolio, with no significant concerns regarding bad debt [42][43] Question: Leasing demand trends and tenant types - Management reported strong demand across various retail categories, with a focus on high-quality tenants [46][47] Question: Earnings cadence and La Centerra contribution - Management expects acceleration in same property NOI growth in the second half of the year, with La Centerra financed through capital recycling [54][55] Question: Retailer conversations regarding tariffs and inventory - Management noted that retailers remain committed to physical stores and are navigating tariffs effectively, maintaining strong demand [60][61] Question: Acquisition pipeline and competition - Management acknowledged increased competition for grocery-anchored deals but emphasized a disciplined approach to acquisitions [66][67] Question: SHOP occupancy and future growth - Management indicated potential for further growth in small shop occupancy, particularly as redevelopment projects are completed [87][88] Question: Progress on releasing efforts for Big Lots and Jo Ann's - Management reported being about 80% resolved on backfilling spaces from recent bankruptcies, with strong leasing activity [94][95]

Brixmor Property (BRX) came out with quarterly funds from operations (FFO) of $0.56 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to FFO of $0.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of +1.82%. A quarter ago, it was expected that this owner and operator of shopping centers would post FFO of $0.55 per share when it actually produced FFO of $0.56, delivering a surprise of +1.82%.Over the la ...

TABLE OF CONTENTS > SUPPLEMENTAL DISCLOSURE Three Months Ended June 30, 2025 Exhibit 99.2 | | Page | | --- | --- | | Glossary of Terms | 1 | | Results Overview & Guidance | 3 | | Financial Summary | | | Consolidated Balance Sheets | 5 | | Consolidated Statements of Operations | 6 | | EBITDA & Reconciliation of Debt Obligations, Net to Net Principal Debt | 7 | | Funds From Operations (FFO) | 8 | | Supplemental Balance Sheet Detail | 9 | | NOI & Supplemental Statement of Operations Detail | 10 | | Same Proper ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_____ to_____ Commission File Number: 001-36160 (Brixmor Property Group Inc.) Commission File Number: 333-256637-01 (Brixmor Operating Partnership LP) Brixmor Property Gro ...

Core Insights - Brixmor Property Group Inc. reported record small shop occupancy and the highest new lease average base rent (ABR) in its history, indicating strong leasing performance and tenant demand [1][2] - The company updated its 2025 Nareit Funds From Operations (FFO) per diluted share expectations to a range of $2.22 - $2.25, up from $2.19 - $2.24, and same property net operating income (NOI) growth expectations to 3.90% - 4.30% from 3.50% - 4.50% [6][14] Financial Highlights - For the three months ended June 30, 2025, net income attributable to Brixmor was $85.1 million, or $0.28 per diluted share, compared to $70.1 million, or $0.23 per diluted share for the same period in 2024 [6][27] - Nareit FFO for the same period was $171.5 million, or $0.56 per diluted share, compared to $163.8 million, or $0.54 per diluted share in 2024 [6][27] - The company declared a quarterly cash dividend of $0.2875 per common share, equivalent to $1.15 per annum, payable on October 15, 2025 [3] Portfolio and Investment Activity - Brixmor executed 1.7 million square feet of new and renewal leases with rent spreads on comparable space of 24.2%, including 0.9 million square feet of new leases with rent spreads of 43.8% [6][7] - The company achieved a total leased occupancy of 94.2%, with anchor leased occupancy at 95.6% and record small shop leased occupancy at 91.2% [6][7] - Brixmor commenced $14.5 million of annualized base rent and reported a total signed but not yet commenced new lease population of 3.2 million square feet, representing $67.1 million of annualized base rent [6][7] Acquisitions and Dispositions - The company completed $223.0 million in acquisitions, including the recent acquisition of LaCenterra At Cinco Ranch for $223.0 million, a grocery-anchored lifestyle center in Houston [6][7] - Brixmor also completed $22.4 million in dispositions during the reporting period [6][14] Capital Structure and Guidance - As of June 30, 2025, Brixmor had $1.4 billion in liquidity and a net principal debt to adjusted EBITDA ratio of 5.5x for the current quarter annualized [14][17] - The company expects revenues deemed uncollectible to total 75 - 110 basis points of total expected revenues in 2025 [14]

Core Points - Brixmor Property Group Inc. will release its 2025 second quarter earnings on July 28, 2025, after market close, followed by a teleconference on July 29, 2025, at 10:00 AM ET [1] - The company operates a national portfolio of open-air shopping centers, comprising 361 retail centers with approximately 64 million square feet of retail space [3] - Brixmor partners with over 5,000 retailers, including notable names like The TJX Companies, The Kroger Co., Publix Super Markets, and Ross Stores [3] Company Information - Brixmor is a real estate investment trust (REIT) focused on owning and operating shopping centers that serve as community hubs [3] - The company emphasizes a diverse mix of thriving national, regional, and local retailers within its properties [3] - Brixmor communicates material information to investors through SEC filings, press releases, public conference calls, and its website [4]