Yahoo Finance Brixmor Property Group Inc (BRX) Q1 2024 Earnings Call Transcript Highlights: Strong ...
Same-Property NOI Growth: 5.9% increase in the first quarter.
NAREIT FFO: $0.54 per share in the first quarter.
Base Rent Growth: Contributed 380 basis points to same-property NOI growth.
Net Expense Reimbursements: Added 90 basis points to same-property NOI growth.
Revenues Deemed Uncollectible: Slightly positive, contributing 60 basis points to same-property NOI growth.
Lease Rates: Portfolio records for total, anchor, and small shop lease rates achieved.
Signed but Not Yet Commenced Pool: Record $68 million, including $60 million of net new rent.
Blended Annualized Base Rent per Square Foot: $21.11 on the signed but not yet commenced pool, 23% above portfolio average.
2024 Same-Property NOI Growth Outlook: Increased to a range of 3.5% to 4.25%.
2024 NAREIT FFO Guidance: Raised to a range of $2.08 to $2.11 per share.
Liquidity: Total liquidity of $1.7 billion as of March 31.
Debt-to-EBITDA Ratio: 5.9x on a trailing 12-month basis.
Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you help us understand the revised same-store NOI guidance and the assumptions for bad debt this time around? A: Brian T. Finnegan, Interim CEO, Senior EVP & COO, explained that the guidance accounts for a wide range of tenant disruptions, which have been minimal so far, contributing to strong start-of-year performance. Steven T. Gallagher, Senior VP, CAO, Interim CFO & Treasurer, added that the guidance includes about 40 basis points of drag from tenant disruptions, down from initial estimates, and maintained expectations for revenues deemed uncollectible to end the year within the historical run rate of 75 to 110 basis points of total revenues.
Q: Given the current interest rate environment, what trends are you observing in the transaction market, and how is this influencing your acquisition strategy? A: Brian T. Finnegan noted increased transaction activity and more realistic seller expectations. Mark T. Horgan, Executive VP & CIO, mentioned seeing more attractive acquisition opportunities due to changes in the capital market. However, he emphasized that while the company is seeing a building pipeline, they remain disciplined in their approach.
Q: How is the leasing environment affecting tenant demand, especially with the volatility in capital markets and higher interest rates? A: Brian T. Finnegan shared that they continue to see strong leasing demand across their portfolio, unaffected by the broader economic factors that have impacted other sectors. He attributed this resilience to the constricted supply of available spaces and the thriving nature of businesses that occupy Brixmor properties.
Q: Can you discuss the impact of revenues deemed uncollectible on your financials, especially given the positive trends in tenant health? A: Steven T. Gallagher noted that while the first quarter showed favorable results, the expectation is for an above-average level of revenues deemed uncollectible in the remaining quarters, aligning with historical levels due to the timing of nonrecurring collections which are typically higher in the first half of the year.
Q: With the upcoming ICSC conference, what are Brixmor's main objectives? A: Brian T. Finnegan expressed goals to secure new tenants, advance large projects, and move unexpected deals forward, highlighting the importance of the conference in shaping the company's leasing activities and strategic tenant collaborations for the upcoming years.
Q: How are you managing the balance between high tenant retention and the strategic need to remerchandise properties to enhance ABR? A: Brian T. Finnegan emphasized that while high retention rates are beneficial for reducing turnover costs, the company remains focused on proactively managing their portfolio to enhance its value, taking back spaces when strategically advantageous to introduce higher-paying tenants or better-suited businesses for the market conditions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
