– Delivers New Lease Spreads of 42.7% and Same Property NOI Growth of 3.6% for the Quarter –
NEW YORK, — Brixmor Property Group Inc. (NYSE: BRX) (“Brixmor” or the “Company”) announced today its operating results for the three and twelve months ended December 31, 2017. For the three months ended December 31, 2017 and 2016, net income attributable to common stockholders was $0.23 per diluted share and $0.31 per diluted share, respectively.
Key highlights for the three months ended December 31, 2017 include:
Key highlights for the twelve months ended December 31, 2017 include:
“Our results this quarter underscore the continued execution of our balanced business plan that we highlighted at our Investor Day in December. Leasing productivity accelerated into year-end, with 2.3 million square feet of new and renewal leases signed in the fourth quarter and our highest volume of anchor leases executed since our IPO. Our comparable new leases were signed at rent spreads of over 42%, underscoring tenant demand and the upside embedded in our well-located shopping centers,” commented James Taylor, Chief Executive Officer and President. “Further, we continued to execute on our value-enhancing reinvestment pipeline, delivering $62 million of projects at an 11% incremental yield during the quarter and adding 15 new projects to our active pipeline. Finally, we sold 15 assets during the fourth quarter for $106 million, acquired three strategic assets for $78 million and initiated our share repurchase program. Each component of our balanced plan is delivering value now.”
FINANCIAL HIGHLIGHTS
Net Income
NAREIT FFO
Same Property NOI Growth
Dividend
PORTFOLIO AND INVESTMENT ACTIVITY
Value Enhancing Reinvestment Opportunities
Dispositions
Acquisitions
CAPITAL STRUCTURE
GUIDANCE
CONNECT WITH BRIXMOR
CONFERENCE CALL AND SUPPLEMENTAL INFORMATION
The Company will host a teleconference on Tuesday, February 13, 2018 at 10:00 AM ET. To participate, please dial 888.317.6003 (domestic) or 412.317.6061 (international) at least ten minutes prior to the scheduled start of the call (Passcode: 3321963). The teleconference can also be accessed via a live webcast at www.brixmor.com in the Investors section. A replay of the teleconference will be available through midnight ET on February 27, 2018 by dialing 877.344.7529 (domestic) or 412.317.0088 (international) (Passcode: 10114966) or via the web through February 12, 2019 at www.brixmor.com in the Investors section.
The Company’s Supplemental Disclosure will be posted at www.brixmor.com in the Investors section. These materials are also available to all interested parties upon request to the Company at investorrelations@brixmor.com or 800.468.7526.
NON-GAAP DISCLOSURES
The Company presents the non-GAAP performance measures set forth below. These measures should not be considered as alternatives to, or more meaningful than, net income (presented in accordance with GAAP) or other GAAP financial measures, as an indicator of financial performance and are not alternatives to, or more meaningful than, cash flow from operating activities (presented in accordance with GAAP) as a measure of liquidity. Non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results to those presented in accordance with GAAP. The Company’s computation of these non-GAAP measures may differ in certain respects from the methodology utilized by other REITs and, therefore, may not be comparable to similarly titled measures presented by such other REITs. Investors are cautioned that items excluded from these non-GAAP measures are relevant to understanding and addressing financial performance. A reconciliation of these non-GAAP measures to net income is presented in the attached table.
NAREIT FFO
NAREIT FFO is a supplemental non-GAAP performance measure utilized to evaluate the operating performance of real estate companies. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income (loss) presented in accordance with GAAP excluding (i) gain (loss) on disposition of operating properties, and (ii) extraordinary items, plus (iii) depreciation and amortization of operating properties, (iv) impairment of operating properties and real estate equity investments, and (v) after adjustments for unconsolidated joint ventures calculated to reflect FFO on the same basis.
The Company believes NAREIT FFO assists investors in analyzing Brixmor’s comparative operating and financial performance because, by excluding gains and losses related to dispositions of previously depreciated operating properties, real estate-related depreciation and amortization of continuing operations, impairment of operating properties and real estate equity investments, extraordinary items, and after adjustments for joint ventures calculated to reflect FFO on the same basis, investors can compare the operating performance of a company’s real estate between periods.
Same Property NOI
Same property NOI is a supplemental, non-GAAP performance measure utilized to evaluate the operating performance of real estate companies. Same property NOI is calculated (using properties owned for the entirety of both periods excluding properties under development), as total property revenues (base rent, ancillary and other, expense reimbursements, and percentage rents) less direct property operating expenses (operating costs, real estate taxes and provision for doubtful accounts). Same property NOI excludes corporate level income (including management, transaction, and other fees), lease termination fees, straight-line rental income, amortization of above- and below-market rent and tenant inducements, straight-line ground rent expense and income / expense associated with the Company’s captive insurance entity.
The Company believes same property NOI assists investors in analyzing Brixmor’s comparative operating and financial performance because it eliminates disparities in NOI due to the acquisition, disposition or stabilization of development properties during the period presented and therefore provides a more consistent metric for comparing the operating performance of a company’s real estate between periods.
ABOUT BRIXMOR PROPERTY GROUP
Brixmor Property Group, a real estate investment trust (REIT), is a leading owner and operator of high-quality, open-air shopping centers. The Company’s more than 475 retail centers comprise 83 million square feet in established trade areas across the nation and are supported by a diverse mix of highly productive non-discretionary and value-oriented retailers, as well as consumer-oriented service providers. Brixmor is committed to maximizing the value of its portfolio by prioritizing investments, cultivating relationships and capitalizing on embedded growth opportunities through driving rents, increasing occupancy and pursuing value-enhancing reinvestment opportunities. Headquartered in New York City, Brixmor is a partner to more than 5,000 best-in-class national, regional and local tenants and is one of the largest landlords to The TJX Companies and The Kroger Company.
SAFE HARBOR LANGUAGE
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to the Company’s expectations regarding the performance of its business, its financial results, its liquidity and capital resources and other non-historical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
CONSOLIDATED BALANCE SHEETS |
||||||
Unaudited, dollars in thousands, except share information |
||||||
As of |
As of |
|||||
12/31/17 |
12/31/16 |
|||||
Assets |
||||||
Real estate |
||||||
Land |
$ 1,984,309 |
$ 2,006,655 |
||||
Buildings and tenant improvements |
8,063,871 |
8,043,855 |
||||
Construction in progress |
81,214 |
121,817 |
||||
Lease intangibles |
792,097 |
836,731 |
||||
10,921,491 |
11,009,058 |
|||||
Accumulated depreciation and amortization |
(2,361,070) |
(2,167,054) |
||||
Real estate, net |
8,560,421 |
8,842,004 |
||||
Investments in and advances to unconsolidated joint venture |
– |
7,921 |
||||
Cash and cash equivalents |
56,938 |
51,402 |
||||
Restricted cash |
53,839 |
51,467 |
||||
Marketable securities |
28,006 |
25,573 |
||||
Receivables, net of allowance for doubtful accounts of $17,205 and $16,756 |
232,111 |
178,216 |
||||
Deferred charges and prepaid expenses, net |
147,508 |
122,787 |
||||
Other assets |
75,103 |
40,315 |
||||
Total assets |
$ 9,153,926 |
$ 9,319,685 |
||||
Liabilities |
||||||
Debt obligations, net |
$ 5,676,238 |
$ 5,838,889 |
||||
Accounts payable, accrued expenses and other liabilities |
569,340 |
553,636 |
||||
Total liabilities |
6,245,578 |
6,392,525 |
||||
Equity |
||||||
Common stock, $0.01 par value; authorized 3,000,000,000 shares; |
||||||
304,947,144 and 304,343,141 shares issued and 304,620,186 and 304,343,141 |
||||||
shares outstanding |
3,046 |
3,043 |
||||
Additional paid-in capital |
3,330,466 |
3,324,874 |
||||
Accumulated other comprehensive income |
24,211 |
21,519 |
||||
Distributions in excess of net income |
(449,375) |
(426,552) |
||||
Total stockholders’ equity |
2,908,348 |
2,922,884 |
||||
Non-controlling interests |
– |
4,276 |
||||
Total equity |
2,908,348 |
2,927,160 |
||||
Total liabilities and equity |
$ 9,153,926 |
$ 9,319,685 |