Post Earnings Coverage as Brixmor FFO Tops Market Expectations

Upcoming AWS Coverage on Acadia Realty Trust Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 1, 2016 / Active Wall St. announces its post-earnings coverage on Brixmor Property Group Inc. (NYSE: BRX) (“Brixmor”). The company posted its financial results for the third quarter fiscal 2016 on October 24, 2016. The owner and operator of shopping centers REIT reported results that were in-line with market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Brixmor Property Group’s competitors within the REIT space, Acadia Realty Trust (NYSE: AKR), reported its operating results for the quarter ended September 30, 2016, on October 25th, 2016. AWS will be initiating a research report on Acadia Realty Trust in the coming days.

Today, AWS is promoting its earnings coverage on BRX; touching on AKR. Get our free coverage by signing up to

http://www.activewallst.com/registration-3/?symbol=BRX

http://www.activewallst.com/registration-3/?symbol=AKR

Earnings Reviewed

During the three months ended in September 2016, Brixmor reported that net income attributable to common stockholders was $57.5 million, or $0.19 per diluted share, compared to net income of $53.8 million, or $0.18 per diluted share, for Q3 2015. For the reported quarter, the company’s NAREIT Funds from Operation (FFO) was $154.9 million, or $0.51 per diluted share, from $156.2 million, or $0.51 per diluted share, in the year ago period. Analysts expected FFO of $0.51 per share.

Results for the reported quarter included a loss on extinguishment of debt, net and other items, that impacted FFO comparability of ($2.1) million, or ($0.01) per diluted share. The company based in New York posted revenue of $318.6 million in Q3 2016 which topped the street’s forecasts of $314.1 million. Same property NOI for Q3 2016 increased 2.0% from the comparable 2015 period.

Key Highlights

During Q3 2016, Brixmor executed 2.0 million square feet of new and renewal leases, or 3.5 million square feet including options exercised and achieved comparable new and renewal rent spreads of 14.7%. The company also realized leased occupancy of 92.6% in Q3 2016, consistent with the same period in the prior year. Brixmor also increased small shop leased occupancy by 100 basis points year-over-year to 85.0%. The company also saw FFO per diluted share grow 5% year-over-year, excluding non-cash GAAP rental adjustments and items that impact comparability.

Value Creation Opportunities

During Q3 2016, Brixmor completed nine anchor space repositioning projects and added two new projects to its pipeline. At September 30, 2016, the anchor space repositioning pipeline was comprised of 15 projects, the aggregate cost of which is expected to be approximately $33 million. During the reported quarter, the Company completed four outparcel developments and at September 30, 2016, the outparcel development pipeline was comprised of 11 projects, the aggregate cost of which is expected to be approximately $19 million. In addition, the new development pipeline was comprised of one project, the cost of which is expected to be approximately $19 million. The Company also added two new redevelopment projects and moved five anchor space repositioning projects to its redevelopment pipeline. At September 30, 2016, the redevelopment pipeline was comprised of eight projects, the aggregate cost of which is expected to be approximately $104 million.

Acquisitions

On September 22, 2016, the Company acquired a 28,500 square feet vacant anchor space for approximately $7 million at Rose Pavilion in Pleasanton, California, a shopping center owned by the Company. The acquired space was subsequently leased to Total Wine & More, as part of a redevelopment of the shopping center.

Dispositions

During Q3 2016, Brixmor generated approximately $11 million of gross proceeds through the sale of two properties.

Cash Flow & Balance

On August 15, 2016, Brixmor’s Operating Partnership, Brixmor Operating Partnership L.P., issued $500 million aggregate principal amount of 3.25% Senior Notes due 2023 at 99.736% of par value. Proceeds from the offering were utilized to repay outstanding indebtedness under the Company’s $1.25 billion unsecured revolving credit facility and for general corporate purposes. During Q3 2016, Brixmor repaid $687 million of mortgage indebtedness, including amortization, at an average interest rate of 5.43%, increasing its unencumbered asset base to 72% of properties at September 30, 2016.

Dividend

Brixmor’s Board of Directors declared a quarterly cash dividend of $0.26 per common share (equivalent to $1.04 per annum) for Q4 2016, which represents a 6% increase. The dividend is payable on January 17, 2017, to stockholders of record on January 5, 2017, representing an ex-dividend date of January 3, 2017.

Stock Performance

Brixmor Property Group’s stock is trading up 1.92%, closing Monday’s session at $25.42 on volume of 1.8 million shares. The company’s shares gained 2.19% since the beginning of the year. Additionally, the stock has advanced 2.27% and 2.99% in the last six months and the previous twelve months, respectively. The company’s shares are trading a PE ratio of 32.28 and have a dividend yield of 4.09%. The stock currently has a market cap of $7.92 billion.

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