Brixmor Property Group Inc. Q1 FY2026 earnings call

Brian Finnegan mentioned same property NOI grew 6.4% and FFO was 58 cents per share. Consumer traffic at centers grew with over 220 million visits in Q1, up over 3.5% yoy. Leasing demand from best-in-class tenants was elevated with 1.3 million sq ft of new and renewal leases. Added first-to-portfolio locations like Pottery Barn, etc. Occupancy: total lease occupancy 95.1% flat q/q, up 100 bps yoy; small shop occupancy 92.1%, up 130 bps yoy. Signed but not commenced pipeline at $67 million, up 10% yoy. Accretive reinvestment: stabilized $78 million of projects with 9% average incremental return. Opened first large format Target at Wynwood Village and phase one of Block 59. Commenced phase three of Roosevelt Mall redevelopment. Out parcel development added 6 new projects at 16% incremental return. Active reinvestment pipeline at $302 million with 10% average incremental return, future pipeline $700 million. Raised $116 million through Forward ATM. Steve Gallagher discussed same property NOI increase 6.4% with base rent growth contributing 410 bps, other income 120 bps, uncollectible revenues 30 bps. FFO $0.58 per share. Sign But Not Yet Commence pipeline at $67 million, $24 per sq ft, 370 bps spread between leased and billed occupancy.

Same property NOI grew 6.4% over last year. FFO was 58 cents per share. Leasing demand was elevated with 1.3 million square feet of new and renewal leases at a blended cash spread of 27%, new lease spreads at 42%, and record renewal growth of 21%. Same property NOI for first quarter increased 6.4%. FFO per share was $0.58. Leasing activity included 1.3 million sq ft of new and renewal leases with blended cash spread 27%, new lease spreads 42%, renewal growth 21%.

Increased same property NOI growth guidance to 4.75 - 5.5%, FFO guidance to $2.34 - $2.37 per share. Expect base rent contribution to growth to accelerate. Expect revenues deemed uncollectible to be 75 - 100 basis points of total revenues. Raised $115 million of equity under at-the-market equity program. Entered into $200 million interest rate hedge at 3.99%. Ended period with $1.8 billion of available liquidity.

Operating in period of heightened uncertainty with geopolitical tensions and capital markets volatility. Monitoring these but fundamentals for property type remain strong.

Q: Curious if you could quantify the expected headwind to occupancy in the second quarter and how the delta between signed and occupied would progress.

A: Mike said occupancy headwind is modest, expect to get back on growth path. Steve said snow pipeline expected to commence ratably, team focused on backfilling.

Q: Can you talk a little bit about the acquisition environment?

A: Mark said competitive market, new capital coming in compressing cap rates, Bricksmore disciplined in sourcing acquisitions.

Q: Big picture on inflation and energy prices and tenant leasing.

A: Alex said consumers adapting, retailers nimble with data, traffic trends positive.

Q: On the equity issuance in the quarter.

A: Brian said saw window to utilize ATM, remain disciplined with equity. Steve said balance sheet long-term funded.

Q: On the leasing capex.

A: Hendo said capex trends good, CapEx as % of NOI in line with last year.

Q: On the acquisition market, type of buyer and cap rates.

A: Mark said private capital attracted to open-air retail cash flow, Bricksmore competes with full set of buyers using operating platform.

Q: On the same-strand OI growth.

A: Brian said base rent contribution accelerating, puts and takes in guidance range.

Q: On the acquisition side, going-in yields vs longer-term IRR.

A: Brian said core business is accretively reinvest in portfolio, acquisition market secondary, disciplined.

Q: On bad debt.

A: Brian said best credit profile, move-outs down, categories like drugstores have low exposure.

Q: On tenant OCRs.

A: Brian said tenant sales healthy, percentage rent line item strong, renewals at record rates.

Q: On ABR growth differential.

A: Brian said ABR growth broad-based, renewal growth in mid-teens, anchor rents record.

Q: On expected box move outs.

A: Brian said have leases out, putting grocers in at higher spreads, tight box supply.