Brixmor Q1 2023 Earnings Report
Key Takeaways
Brixmor Property Group reported strong first quarter 2023 results, with net income of $0.37 per diluted share. The company executed 1.4 million square feet of new and renewal leases, increased total leased occupancy to a record 94.0%, and reported an increase in same property NOI of 4.9%.
Executed 1.4 million square feet of new and renewal leases, with rent spreads on comparable space of 19.2%, including 0.8 million square feet of new leases, with rent spreads on comparable space of 43.4%
Sequentially increased total leased occupancy to a record 94.0%, anchor leased occupancy to 96.1%, and small shop leased occupancy to a record 89.3%
Reported an increase in same property NOI of 4.9%, including a contribution from base rent of 500 basis points
Reported Nareit FFO of $151.6 million, or $0.50 per diluted share
Brixmor
Brixmor
Forward Guidance
The Company has updated its previously provided NAREIT FFO per diluted share expectations for 2023 to $1.97 - $2.04 from $1.95 - $2.03 and same property NOI growth expectations for 2023 to 2.0% - 3.5% from 1.5% - 3.5%.
Positive Outlook
- Include the expected gain on extinguishment of debt of approximately $4.3 million, or $0.01 per diluted share, in the second quarter of 2023
- Expectations for 2023 Nareit FFO
- Updated previously provided NAREIT FFO per diluted share expectations for 2023 to $1.97 - $2.04 from $1.95 - $2.03
- Updated same property NOI growth expectations for 2023 to 2.0% - 3.5% from 1.5% - 3.5%
- Effective May 1, 2023, the $200.0 million delayed draw term loan has been swapped to a fixed, combined rate of 3.59% (plus a spread of 119 basis points and SOFR adjustment of 10 basis points) through the maturity of the term loan on July 26, 2027.
Challenges Ahead
- Do not contemplate any additional tenants moving to or from a cash basis of accounting, either of which may result in significant volatility in straight-line rental income
- Do not include any additional items that impact FFO comparability, including transaction expenses, net, litigation and other non-routine legal expenses, and gain or loss on future extinguishment of debt or any one-time items
- The Company expects to recognize a gain on extinguishment of debt of approximately $4.3 million, or $0.01 per diluted share, in the second quarter of 2023.
- The Company has updated its previously provided NAREIT FFO per diluted share expectations for 2023 to $1.97 - $2.04 from $1.95 - $2.03
- The Company has updated its same property NOI growth expectations for 2023 to 2.0% - 3.5% from 1.5% - 3.5%.