Brixmor Q4 2022 Earnings Report
Key Takeaways
Brixmor Property Group reported strong Q4 and full-year 2022 results, driven by the execution of their value-added plan and portfolio transformation. Record total and small shop leased occupancy were achieved, along with significant rent spreads on new and renewal leases.
Executed 2.0 million square feet of new and renewal leases, with rent spreads on comparable space of 18.3%.
Total leased occupancy reached a record 93.8%, with anchor leased occupancy at 95.9% and small shop leased occupancy at a record 89.2%.
Reported an increase in same property NOI of 7.3%.
Stabilized $66.7 million of reinvestment projects at an average incremental NOI yield of 9%.
Brixmor
Brixmor
Forward Guidance
The Company expects 2023 Nareit FFO per diluted share of $1.95 - $2.03 and same property NOI growth of 1.5% - 3.5%.
Positive Outlook
- Contribution from base rent of 350 - 450 bps
- Expectations for 2023 same property NOI growth include
- Do not contemplate any additional tenants moving to or from a cash basis of accounting
- Expectations for 2023 Nareit FFO
- The Company expects 2023 Nareit FFO per diluted share of $1.95 - $2.03
Challenges Ahead
- Detraction from revenues deemed uncollectible of (200) bps - (150) bps
- Revenues deemed uncollectible is expected to total 75 - 110 bps of total expected revenues in 2023
- Do not include any additional items that impact FFO comparability, including transaction expenses, net, litigation and other non-routine legal expenses, and loss on extinguishment of debt, net or any one-time items
- Impact of 2022 and 2023 transaction activity(0.01)(0.01)
- Non-cash GAAP rental adjustments