BPG(US:BRX)2021-02-10 16:00Portfolio Overview - As of December 31, 2020, Brixmor Property Group Inc. owned a portfolio of 393 shopping centers totaling approximately 69 million square feet of gross leasable area (GLA) with a billed occupancy of 88% and a leased occupancy of 91%[23] - BPG's portfolio consists of 393 shopping centers totaling approximately 69 million square feet of GLA as of December 31, 2020[116] - The geographic diversity of BPG's portfolio is significant, with properties located in the top 50 MSAs in the U.S.[116] - Approximately 70% of Brixmor's shopping centers are grocery-anchored, which remained open throughout 2020, supporting the resilience of its portfolio[26] Financial Performance - Total revenues for 2020 were $1,053,266, a decrease of 9.8% from $1,168,258 in 2019[144] - Net income attributable to common stockholders for 2020 was $121,173, a decline of 56.0% compared to $274,773 in 2019[144] - Basic net income per common share for 2020 was $0.41, down from $0.92 in 2019[144] - Cash dividends paid to common stockholders for the years ended December 31, 2020 and 2019 were $170.4 million and $334.9 million, respectively[207] - The company declared cash dividends of $0.500 per common share for the fiscal year ended December 31, 2020[142] Leasing Activity - During 2020, Brixmor executed 419 new leases representing approximately 2.3 million square feet and 1,381 total leases representing approximately 9.6 million square feet, achieving new lease rent spreads of 20.2%[26][28] - The weighted average expiring annualized base rent (ABR) per square foot of lease expirations through 2024 is $13.67, compared to an average ABR PSF of $15.46 for new and renewal leases signed during 2020[28] - Billed and leased occupancy rates as of December 31, 2020 were 87.8% and 90.7%, respectively, down from 89.3% and 92.4% in 2019[173] Capital Expenditures and Investments - The company deferred approximately $130 million in capital expenditures originally planned for 2020[171] - The company has identified a pipeline of future reinvestment projects aggregating approximately $900 million, with expected net operating income (NOI) yields consistent with recent realizations[31] - The company stabilized 25 anchor space repositioning and redevelopment projects with an aggregate anticipated cost of $113.2 million and a weighted average incremental NOI yield of 10%[31] Debt and Liquidity - As of December 31, 2020, Brixmor had $1.2 billion of available liquidity under its $1.25 billion revolving credit facility and $370.1 million of cash and cash equivalents[35] - The company had approximately $5.2 billion in aggregate principal amount of indebtedness outstanding as of December 31, 2020[76] - The company has entered into interest rate swap agreements on $800 million of its variable rate debt to mitigate interest rate risk[77] COVID-19 Impact - The COVID-19 pandemic has resulted in a significant increase in uncollectible revenues and straight-line rent receivable reversals compared to historical levels[59] - The company has provided rent relief to tenants on a case-by-case basis, primarily in the form of rent deferrals, due to increased tenant delinquencies during the pandemic[59] - The company did not engage in layoffs, furloughs, or pay reductions in response to the pandemic[43] Corporate Governance and Compliance - BPG's board of directors can change significant corporate policies without stockholder approval, which could adversely affect financial condition and cash flows[94] - BPG's charter allows the issuance of stock with terms that may discourage third-party acquisitions, potentially impacting stockholder value[95] - The company has established an ESG Steering Committee to oversee its Corporate Responsibility strategy and initiatives[46] Employee Engagement - The company achieved a 98% employee satisfaction rating and 97% participation in annual reviews and talent development surveys, reflecting its commitment to employee engagement and growth[40] Tax and REIT Compliance - BPG is required to distribute at least 90% of its REIT taxable income to stockholders annually, which may include distributions in BPG's own stock[112] - If BPG fails to maintain its REIT qualification, it could face substantial tax liabilities, reducing cash flows available for distribution to stockholders[102]