Brixmor Property Group Inc. Q3 FY2025 earnings call

• Leasing: Executed 1.5 million square feet of new and renewal leases at a blended cash spread of 18%; new leases signed at a record $25.85 per square foot; small shop occupancy at 91.4%, anchors backfilled with new leases (Marshalls, Total Wine & More, etc.); signed but not yet commenced pipeline above $60 million.
• Reinvestment: Stabilized 8 value-enhancing projects with total cost ~$46 million at an average incremental yield of 11%; examples include College Plaza, Barn Plaza, and growing partnership with Publix (82% of ABR from grocery-anchored centers).
• Transactions: Closed $223 million acquisition of LaCenterra; exited 8 assets, disposition volume year-to-date $148 million; ~$190 million of value-added acquisitions under control.

No detailed breakdown of product segments by revenue contribution provided in the transcript; general business operations discussed including leasing, reinvestment, and transactions.

• Updated FFO guidance to $2.23 to $2.25, affirmed same-property NOI range of 3.9% to 4.3%; FFO increase driven by higher-than-expected lease settlement income in Q4, with lease settlement income expected to be a headwind to 2026 FFO growth.
• Announced a 7% increase in annual dividend to $1.23.

• Forward-looking statements subject to risks and uncertainties as described in SEC filings.
• Potential tenant disruptions and bankruptcies could impact results, though exposure to at-risk tenancy reduced.
• Competition in the acquisitions market and fluctuations in cap rates.

Q: On implied acceleration of same-store NOI growth in the fourth quarter, can you walk through contributing factors?

A: Steven Gallagher and Brian Finnegan discuss commencement of rent, stacking of rent, and upcoming rent commencements between Q3 and Q4.

Q: Samir Khanal asks about shop occupancy hitting record and room to run.

A: Brian Finnegan mentions future reinvestment pipeline is several hundred basis points below current occupancy and expects lift in shop occupancy as projects are brought on.

Q: Craig Mailman asks about additional acquisitions in pipeline.

A: Brian Finnegan hands off to Mark Horgan who discusses competitive market, capital seeking open-air retail, and focus on value-added acquisitions like LaCenterra.

Q: Todd Thomas asks about same-store growth headwinds in 2026.

A: Brian Finnegan talks about reduced exposure to at-risk tenancy and tailwind from snow pipeline commencing in 2025 and 2026 but notes some rent headwinds from 2025.

Q: Alexander Goldfarb asks about cap rates and acquisition thresholds.

A: Mark Horgan discusses focus on driving high unlevered IRRs, acquisitions historically and currently focused on high IRRs, and balancing acquisitions with capital recycling.