Brixmor Property Group Inc. (NYSE:BRX) Q3 2023 Earnings Conference Call October 31, 2023 10:00 AM ET Company Participants Stacy Slater - Senior Vice President of Investor Relations James Taylor - Chief Executive Officer Brian Finnegan - Chief Operating Officer Angela Aman - President and Chief Financial Officer Mark Horgan - Chief Investment Officer Conference Call Participants Dori Kesten - Wells Fargo Securities, LLC Todd Thomas - KeyBanc Capital Markets Inc. Greg McGinniss - Scotiabank Jeffrey Spector - ...

Brixmor Property Group Inc. Brixmor Operating Partnership LP (Exact Name of Registrant as Specified in Its Charter) Maryland (Brixmor Property Group Inc.) 45-2433192 Delaware (Brixmor Operating Partnership LP) 80-0831163 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) | --- | --- | --- | |-----------------------------------------------------|-------------------------------------------------|------------------------------------------------------------------ ...

Brixmor Property Group Inc. (NYSE:BRX) Q2 2023 Earnings Conference Call August 1, 2023 10:00 AM ET Company Participants Stacy Slater - SVP-IR and Capital Markets Jim Taylor - President and CEO Angela Aman - EVP and CFO Brian Finnegan - EVP and Chief Revenue Officer Mark Horgan - EVP and Chief Investment Officer Conference Call Participants Todd Thomas - KeyBanc Capital Markets Juan Sanabria - BMO Capital Markets Ki Bin Kim - Truist Securities Caitlin Burrows - Goldman Sachs Craig Mailman - Citi Greg McGinni ...

| --- | --- | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|-----------|-------------|--------| | | | | | | | Supplemental disclosure of cash flow information: Cash paid for interest, net of amount capitalized of $1,898 and $1,432 | $ | 95,060 | $ | 93,596 | | The accompanying notes are an integral part of these unaudited condensed | consolidated | financial | statem ...

Brixmor Property Group Inc. (NYSE:BRX) Q1 2023 Earnings Conference Call May 2, 2023 10:00 AM ET Company Participants Stacy Slater – Senior Vice President-Investor Relations and Capital Markets Jim Taylor – President and Chief Executive Officer Angela Aman – Executive Vice President and Chief Financial Officer Brian Finnegan – Executive Vice President and Chief Revenue Officer Mark Horgan – Executive Vice President and Chief Investment Officer Conference Call Participants Jeff Spector – Bank of America Todd ...

[Part I - FINANCIAL INFORMATION](index=6&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for the quarterly period ended March 31, 2023 are presented [Brixmor Property Group Inc. Financial Statements](index=6&type=section&id=Brixmor%20Property%20Group%20Inc.%20(unaudited)) Condensed consolidated financial statements for Brixmor Property Group Inc for the three months ended March 31, 2023 Condensed Consolidated Statements of Operations (Brixmor Property Group Inc.) (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Total Revenues** | **$311,444** | **$298,629** | | Total Operating Expenses | $198,596 | $193,248 | | **Net Income** | **$112,246** | **$79,506** | | **Diluted EPS** | **$0.37** | **$0.26** | Condensed Consolidated Balance Sheet Highlights (Brixmor Property Group Inc.) (in thousands) | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Real estate, net | $7,835,257 | $7,901,592 | | Total Assets | $8,354,798 | $8,435,930 | | Debt obligations, net | $4,958,480 | $5,035,501 | | Total Liabilities | $5,467,282 | $5,570,920 | | Total Equity | $2,887,516 | $2,865,010 | Condensed Consolidated Statements of Cash Flows (Brixmor Property Group Inc.) (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $135,054 | $112,260 | | Net cash provided by (used in) investing activities | $48,485 | ($174,937) | | Net cash used in financing activities | ($169,369) | ($194,682) | | **Net change in cash, cash equivalents and restricted cash** | **$14,170** | **($257,359)** | [Brixmor Operating Partnership LP Financial Statements](index=11&type=section&id=Brixmor%20Operating%20Partnership%20LP%20(unaudited)) Condensed consolidated financial statements for Brixmor Operating Partnership LP for the three months ended March 31, 2023 - The financial statements of the Operating Partnership are materially the same as the Parent Company's, with the primary difference being in the capital section[16](index=16&type=chunk)[4](index=4&type=chunk)[274](index=274&type=chunk) Condensed Consolidated Statements of Operations (Brixmor Operating Partnership LP) (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Total Revenues** | **$311,444** | **$298,629** | | Total Operating Expenses | $198,596 | $193,248 | | **Net Income** | **$112,246** | **$79,506** | Condensed Consolidated Statements of Cash Flows (Brixmor Operating Partnership LP) (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $135,054 | $112,260 | | Net cash provided by (used in) investing activities | $48,485 | ($174,937) | | Net cash used in financing activities | ($168,442) | ($186,052) | | **Net change in cash, cash equivalents and restricted cash** | **$15,097** | **($248,729)** | [Notes to Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes accompany the financial statements, covering key accounting policies, business activities, and other disclosures - The company is an internally-managed REIT owning and operating one of the largest publicly-traded open-air retail portfolios in the U.S, comprising **367 shopping centers** totaling approximately **65 million square feet of GLA** as of March 31, 2023[296](index=296&type=chunk) - The company did not acquire any assets during Q1 2023, compared to **three shopping centers and one land parcel acquired for $158.2 million** in Q1 2022[60](index=60&type=chunk)[146](index=146&type=chunk) - During Q1 2023, the company disposed of six shopping centers and two partial shopping centers for aggregate net proceeds of **$119.7 million**, resulting in a **gain of $48.5 million**[301](index=301&type=chunk) - As of March 31, 2023, total debt obligations, net, were approximately **$5.0 billion**, and the company was in compliance with all financial covenants with no scheduled debt maturities for the next 12 months[85](index=85&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - Subsequent to the quarter end, the Operating Partnership repurchased **$199.6 million of its 3.65% Senior Notes due 2024** via a cash tender offer, funded by a **$200.0 million delayed draw term loan**[138](index=138&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2023 financial condition, operational results, liquidity, and non-GAAP measures [Executive Summary and Highlights](index=31&type=section&id=Executive%20Summary%20and%20Highlights) The company's strategy focuses on portfolio management and reinvestment, with strong Q1 2023 leasing activity - The company's primary objective is to maximize total returns through consistent, sustainable growth in cash flow, driven by proactive portfolio management and value-enhancing reinvestments[155](index=155&type=chunk) - As of March 31, 2023, **billed and leased occupancy increased to 90.0% and 94.0%**, respectively, from 88.6% and 92.1% a year prior[144](index=144&type=chunk) Leasing Activity Highlights (Q1 2023) | Lease Type | Leases | GLA (sq ft) | New ABR PSF | Rent Spread (Comparable Leases) | | :--- | :--- | :--- | :--- | :--- | | **Total** | **374** | **2,307,147** | **$15.55** | **13.1%** | | New Leases | 149 | 779,954 | $17.63 | 35.9% | | Renewal Leases | 172 | 610,198 | $20.14 | 12.1% | [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Total revenues grew by $12.8 million in Q1 2023, driven by higher rental income and offset by increased operating expenses Comparison of Revenues (in thousands) | Revenue Type | Q1 2023 | Q1 2022 | $ Change | | :--- | :--- | :--- | :--- | | Rental income | $311,130 | $298,362 | $12,768 | | **Total revenues** | **$311,444** | **$298,629** | **$12,815** | Comparison of Operating Expenses (in thousands) | Expense Type | Q1 2023 | Q1 2022 | $ Change | | :--- | :--- | :--- | :--- | | Operating costs | $35,895 | $34,796 | $1,099 | | Real estate taxes | $44,688 | $41,640 | $3,048 | | Depreciation and amortization | $87,741 | $84,222 | $3,519 | | Impairment of real estate assets | $1,100 | $4,590 | ($3,490) | | General and administrative | $29,172 | $28,000 | $1,172 | | **Total operating expenses** | **$198,596** | **$193,248** | **$5,348** | - The gain on sale of real estate assets increased to **$48.5 million** in Q1 2023 from $21.9 million in Q1 2022, reflecting a higher volume of disposition activity[153](index=153&type=chunk)[190](index=190&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $1.44 billion available and increased operating cash flow - As of March 31, 2023, the company had **$1.44 billion of available liquidity**, comprising $1.20 billion under the Revolving Facility, $200.0 million under the Term Loan Facility, and $35.4 million in cash[179](index=179&type=chunk) - Net cash provided by operating activities **increased by $22.8 million** in Q1 2023 versus Q1 2022, primarily due to higher same property net operating income[199](index=199&type=chunk) - The company is actively managing a portfolio of **47 in-process redevelopment and development projects** with an aggregate anticipated cost of **$360.0 million**[201](index=201&type=chunk) [Non-GAAP Performance Measures](index=39&type=section&id=Non-GAAP%20Performance%20Measures) The company utilizes Nareit FFO and Same Property NOI to evaluate operating performance, showing growth in both measures Nareit FFO Reconciliation (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net income | $112,246 | $79,506 | | Depreciation and amortization related to real estate | $86,748 | $83,190 | | Gain on sale of real estate assets | ($48,468) | ($21,911) | | Impairment of real estate assets | $1,100 | $4,590 | | **Nareit FFO** | **$151,626** | **$145,375** | | **Nareit FFO per diluted share** | **$0.50** | **$0.49** | Same Property NOI (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $286,340 | $273,928 | | | Operating Expenses | ($74,382) | ($71,819) | | | **Same property NOI** | **$211,958** | **$202,109** | **4.9%** | [Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes were reported from the market risk disclosures in the 2022 Annual Report on Form 10-K - There were no material changes to the company's market risk disclosures from the Form 10-K for the year ended December 31, 2022[244](index=244&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective as of March 31, 2023, with no material changes in internal control - The principal executive officer and principal financial officer concluded that the disclosure controls and procedures for both Brixmor Property Group Inc and the Operating Partnership were **effective as of March 31, 2023**[245](index=245&type=chunk)[230](index=230&type=chunk) - There were no changes in internal control over financial reporting during the first quarter of 2023 that have materially affected, or are reasonably likely to materially affect, the company's internal control[229](index=229&type=chunk)[247](index=247&type=chunk) [Part II - OTHER INFORMATION](index=43&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material litigation outside the ordinary course of business - The company is not presently involved in any material litigation outside the ordinary course of business[125](index=125&type=chunk)[248](index=248&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported to the risk factors disclosed in the 2022 Annual Report on Form 10-K - There have been no material changes to the risk factors relating to the Company as disclosed in the Form 10-K for the year ended December 31, 2022[233](index=233&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No common stock was repurchased in Q1 2023, with $400.0 million remaining available under the repurchase program - During Q1 2023, the Company did not repurchase any of its common stock[234](index=234&type=chunk) - As of March 31, 2023, the company's share repurchase program had **$400.0 million of available capacity**[234](index=234&type=chunk)[108](index=108&type=chunk) [Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the reporting period - None[234](index=234&type=chunk) [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No other material information was reported for the period - None[235](index=235&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) Filed exhibits include CEO/CFO certifications and XBRL interactive data files - Exhibits filed with this report include certifications from the Chief Executive Officer and Chief Financial Officer under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL data files[251](index=251&type=chunk)

Form 10-K We believe it is important to understand the few differences between the Parent Company and the Operating Partnership in the context of how the Parent Company and the Operating Partnership operate as a consolidated company. The Parent Company is a REIT, whose only material asset is its indirect interest in the Operating Partnership. As a result, the Parent Company does not conduct business itself other than issuing public equity from time to time. The Parent Company does not incur any material ind ...

Brixmor Property Group Investor Presentation Quarter Ended September 30, 2022 NYSE BRX LISTED BUSINESS Brea Gateway | Los Angeles, California Brixmor Overview Portfolio Quick Facts High quality, diversified, open-air retail portfolio ❯ One of the largest open-air retail landlords in the US o Nationally diversified portfolio of 378 shopping centers in 116 CBSAs favored by growing retailers o Over 5,000 national, regional, and local tenants ❯ Strive to create and own properties that are the "centers of the co ...

Financial Data and Key Metrics Changes - Brixmor reported Nareit FFO of $0.49 per share in Q3 2022, driven by same property NOI growth of 3.6% [18] - Year-to-date, bottom line FFO grew by 6.5% on a comparable basis [12] - The company achieved a top line same-store growth of 4.8% despite a drag of 250 basis points from revenues deemed uncollectible [12][20] - An 8.3% increase in quarterly dividend was announced, reflecting strong growth in taxable income [14][26] Business Line Data and Key Metrics Changes - During the quarter, Brixmor signed 1.7 million square feet of new and renewal leases at a record rent of $19.26 per foot, with a blended cash spread of 14.2% [7] - Small shop occupancy rose to 88.8%, with new rents achieved of $24.78 per foot, marking a record for this metric [10][21] - Average in-place ABR increased to over $16 per foot, with new leases achieving nearly $20 per foot over the trailing 12 months [10] Market Data and Key Metrics Changes - Lease occupancy reached a company record of 93.3%, a year-over-year increase of 180 basis points [9] - The anchor leased rate now stands at 95.4%, up 60 basis points sequentially [21] - The spread between lease and build occupancy grew to 370 basis points this quarter [22] Company Strategy and Development Direction - The company continues to focus on a self-funded value-add strategy, which has shown resilience in both disruptive and strong market environments [6][16] - Brixmor has paused acquisitions but sees potential opportunities as less well-capitalized landlords face challenges [16] - The reinvestment pipeline is expected to deliver significant future value creation, with $400 million leased and underway [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth despite potential economic disruptions, citing strong tenant demand and a robust leasing pipeline [13][29] - The company anticipates that revenues deemed uncollectible will revert to historical levels, impacting future growth [20][85] - Management highlighted the importance of maintaining a balanced tenant mix to ensure stability in cash flow [32] Other Important Information - Brixmor has $1.3 billion of liquidity and no debt maturing until 2024, allowing for opportunistic growth [17][24] - The company has renewed its $400 million share repurchase program and $400 million at-the-market equity offering program [25] Q&A Session Summary Question: Will there be any pull back on the redevelopment investment given the potential for recession in 2023? - Management noted continued demand and highly accretive returns, indicating confidence in their reinvestment strategy [29] Question: What are the positives and negatives of having local tenants at 21% of your ABR? - Management emphasized the relevance of local tenants to community engagement and noted strong demand for backfilling any vacancies [32] Question: Are you seeing any change in the health or ability of your local small shop tenants to pay rent today? - Management reported strong performance from the entire tenant base, particularly small shops, with no significant increase in rent relief requests [34] Question: What are the expectations for minimum rent growth heading into 2023? - Management expects continued strength in top line growth, driven by a robust leasing pipeline [38] Question: Can you provide perspective on cap rates, especially for grocery versus non-grocery assets? - Management indicated upward pressure on cap rates due to financing costs, but noted attractive cap rates for core grocery-anchored shopping centers [41] Question: How are you accounting for rent from Regal at this point? - Management stated that all entertainment tenants have been on a cash basis during the pandemic, with revenue recognized as cash is received [60] Question: What is the expected fallout from tenant disruptions in 2023? - Management is monitoring tenants closely and believes their rent basis positions them well to handle potential disruptions [82]

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 September 30, 2022 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) Commission File Number: 333-256637-01 (Brixmor Operating Partnership LP) Brixmor Property Gro ...