Brixmor Property Group Reports Fourth Quarter And Full Year 2020 Results - Wire Real Estate

Brixmor Property Group Reports Fourth Quarter And Full Year 2020 Results


Brixmor Property Gro

iCrowdNewswire   Feb 20, 2021  12:42 PM ET

 Brixmor Property Group Inc. announced today its operating results for the three and twelve months ended December 31, 2020.  For the three months ended December 31, 2020 and 2019, net income was $0.08 per diluted share and $0.21 per diluted share, respectively, and for the twelve months ended December 31, 2020 and 2019, net income was $0.41  per diluted share and $0.92  per diluted share, respectively.

Key highlights for the three months ended December 31, 2020 include:

  • Rent collections continue to improve, with 92.7% of billed based rent for the three months ended December 31, 2020 collected (as of February 5, 2021)
    • Approximately 97% of the Company’s annualized base rent (“ABR”) is open and operating
    • See COVID-19 update below for additional information on rent collection levels
  • Executed 1.4 million square feet of new and renewal leases, with rent spreads on comparable space of 8.0%, including 0.6 million square feet of new leases, with rent spreads on comparable space of 21.9%
  • Realized total leased occupancy of 90.7%, anchor leased occupancy of 93.8% and small shop leased occupancy of 83.8%
    • Leased to billed occupancy spread of 290 basis points, representing $37.6 million of annualized base rent not yet commenced
  • Reported a decrease in same property NOI of 6.4%, reflecting $11.2 million of revenues deemed uncollectible primarily related to COVID-19
  • Reported NAREIT FFO of $99.7 million, or $0.33 per diluted share, reflecting $11.8 million of revenues deemed uncollectible and a $4.0 million reversal of straight-line rental income, net primarily related to COVID-19
    • NAREIT FFO included items that impact FFO comparability, including a loss on extinguishment of debt, net, as previously announced, litigation and other non-routine legal expenses, and transaction expenses of ($19.2) million, or ($0.06) per diluted share 
  • Stabilized $20.9 million of reinvestment projects at an average incremental NOI yield of 12%, with the in process reinvestment pipeline now totaling $402.6 million at an expected average incremental NOI yield of 10%
  • Completed $42.0 million of dispositions
  • Redeemed $316.8 million of Senior Notes due 2022

Key highlights for the twelve months ended December 31, 2020 include:

  • Executed 6.2 million square feet of new and renewal leases, with rent spreads on comparable space of 7.3%, including 2.3 million square feet of new leases, with rent spreads on comparable space of 20.2%
  • Reported a decrease in same property NOI of 5.4%, reflecting $64.3 million of revenues deemed uncollectible primarily related to COVID-19
  • Reported NAREIT FFO of $437.8 million, or $1.47 per diluted share, reflecting $67.2 million of revenues deemed uncollectible and a $34.7 million reversal of straight-line rental income, net primarily related to COVID-19
    • NAREIT FFO included items that impact FFO comparability, including a loss on extinguishment of debt, net, litigation and other non-routine legal expenses, and transaction expenses of ($37.7) million, or ($0.13) per diluted share
  • Stabilized $113.2 million of reinvestment projects at an average incremental NOI yield of 10%
  • Completed $127.5 million of dispositions
  • Issued $800.0 million of Senior Notes due 2030 and redeemed $500.0 million of Senior Notes Due 2022; increased total liquidity to $1.6 billion

“The disruption of the last year has not only demonstrated the durability and resilience of our people, our portfolio and our business plan, it has accelerated many trends that will be tailwinds for our business,” commented James Taylor, Chief Executive Officer and President. “As we look ahead, we are encouraged by the strength of tenant demand to be in our well-located centers, the delivery of accretive reinvestments and our opportunities to drive additional value.”  

COVID-19 UPDATE  

  • A summary of trends in billed base rent collected, rent deferrals and abatements and total addressed billed base rent follows:

(as of February 5, 2021)

 

Percent of 2Q20
Billed Base Rent
Collected

Percent of 3Q20
Billed Base Rent
Collected

Percent of 4Q20
Billed Base Rent
Collected

Percent of 2Q20,
3Q20 and 4Q20
Billed Base Rent
Collected

Percent of
January 2021
Billed Base Rent
Collected

Essential tenants

 

99.0%

99.0%

99.0%

99.0%

98.5%

Hybrid tenants

 

85.7%

89.4%

91.0%

88.7%

89.0%

Other retail / services

 

73.0%

83.0%

88.5%

81.4%

87.3%

Total

 

85.0%

90.0%

92.7%

89.2%

91.5%

Rent deferrals and abatements

 

9.4%

4.8%

2.2%

5.5%

1.2%

Total addressed billed base rent

 

94.4%

94.8%

94.9%

94.7%

92.7%

  • All merchandise categories with the exception of fitness / sports and entertainment are greater than 95% open based on ABR
  • Net reserves associated with base rent during the nine months ended December 31, 2020 represented 71.7% of accrued but uncollected base rent, comprised of net reserves representing 51.5% of rent deferrals (not lease modifications) and 88.2% of accrued but uncollected and unaddressed (under negotiation) base rent

FINANCIAL HIGHLIGHTS

Net Income

  • For the three months ended December 31, 2020 and 2019, net income was $24.4 million, or $0.08 per diluted share, and $62.1 million, or $0.21 per diluted share, respectively.
  • For the twelve months ended December 31, 2020 and 2019, net income was $121.2 million, or $0.41 per diluted share, and $274.8 million, or $0.92 per diluted share, respectively.

NAREIT FFO

  • For the three months ended December 31, 2020 and 2019, NAREIT FFO was $99.7 million, or $0.33 per diluted share, and $142.1 million, or $0.47 per diluted share, respectively. Results for the three months ended December 31, 2020 and 2019 include items that impact FFO comparability, including a loss on extinguishment of debt, net, litigation and other non-routine legal expenses, and transaction expenses of ($19.2) million, or ($0.06) per diluted share, and ($0.9) million, or ($0.00) per diluted share, respectively.
    • During the three months ended December 31, 2020, the Company recognized $11.8 million of revenues deemed uncollectible and a $4.0 million reversal of straight-line rental income, net, primarily related to COVID-19. 
  • For the twelve months ended December 31, 2020 and 2019, NAREIT FFO was $437.8 million, or $1.47 per diluted share, and $572.9 million, or $1.91 per diluted share, respectively.  Results for the twelve months ended December 31, 2020 and 2019 include items that impact FFO comparability, including a loss on extinguishment of debt, net, litigation and other non-routine legal expenses, and transaction expenses of ($37.7) million, or ($0.13) per diluted share, and ($3.8) million, or ($0.01) per diluted share, respectively. 
    • During the twelve months ended December 31, 2020, the Company recognized $67.2 million of revenues deemed uncollectible and a $34.7 million reversal of straight-line rental income, net primarily related to COVID-19.

Same Property NOI Performance

  • For the three months ended December 31, 2020, the Company reported a decrease in same property NOI of 6.4% versus the comparable 2019 period.
    • The Company recognized $11.2 million of revenues deemed uncollectible primarily related to COVID-19.
  • For the twelve months ended December 31, 2020, the Company reported a decrease in same property NOI of 5.4% versus the comparable 2019 period. 
    • The Company recognized $64.3 million of revenues deemed uncollectible primarily related to COVID-19.

Dividend

  • The Company’s Board of Directors declared a quarterly cash dividend of $0.215 per common share (equivalent to $0.860 per annum) for the first quarter of 2021.
  • The dividend is payable on April 15, 2021 to stockholders of record on April 5, 2021, representing an ex-dividend date of April 1, 2021.

PORTFOLIO AND INVESTMENT ACTIVITY  

Value Enhancing Reinvestment Opportunities

  • During the three months ended December 31, 2020, the Company stabilized six value enhancing reinvestment projects with a total aggregate net cost of approximately $20.9 million at an average incremental NOI yield of 12% and added 12 new reinvestment projects to its in process pipeline. Projects added include five anchor space repositioning projects, five outparcel development projects and two redevelopment projects, with a total aggregate net estimated cost of approximately $45.3 million at an expected average incremental NOI yield of 12%.
  • At December 31, 2020, the value enhancing reinvestment in process pipeline was comprised of 60 projects with an aggregate net estimated cost of approximately $402.6 million at an expected average incremental NOI yield of 10%. The in process pipeline includes 21 anchor space repositioning projects with an aggregate net estimated cost of approximately $82.4 million at an expected incremental NOI yield of 9 to 14%; 18 outparcel development projects with an aggregate net estimated cost of approximately $39.6 million at an expected average incremental NOI yield of 11%; and 21 redevelopment projects with an aggregate net estimated cost of approximately $280.7 million at an expected average incremental NOI yield of 9%.
  • Due to COVID-19, there is inherent uncertainty as it relates to the Company’s reinvestment projects, specifically with respect to expected project scopes, expected stabilization dates and expected NOI yields.

Acquisitions

  • During the twelve months ended December 31, 2020, the Company acquired land adjacent to two existing centers for a combined purchase price of $3.4 million.

Dispositions

  • During the three months ended December 31, 2020, the Company generated approximately $42.0 million of gross proceeds on the disposition of two shopping centers, as well as three partial properties, comprised of 0.5 million square feet of gross leasable area.
  • During the twelve months ended December 31, 2020, the Company generated approximately $127.5 million of gross proceeds on the disposition of ten shopping centers, as well as a land parcel and six partial properties, comprised of 1.6 million square feet of gross leasable area.   

CAPITAL STRUCTURE   

  • During 2020, the Company’s Operating Partnership, Brixmor Operating Partnership LP (the “Operating Partnership”), issued $800.0 million aggregate principal amount of 4.05% Senior Notes due 2030 and utilized the net proceeds to repay $500.0 million of its 3.875% Senior Notes due 2022 and outstanding indebtedness under its Revolving Credit Facility and for general corporate purposes.
  • At December 31, 2020, the Company had $1.6 billion of total liquidity, comprised of $370.1 million of cash, cash equivalents and restricted cash and $1.2 billion of availability under its Revolving Credit Facility. The Company has no debt maturities in 2021 and only $250.0 million of debt maturities in 2022.

GUIDANCE

  • The Company expects 2021 NAREIT FFO per diluted share of $1.56 – 1.70 and same property NOI growth of (1.0) – 3.0%.
  • Expectations for 2021 NAREIT FFO:
    • Do reflect prospective 2021 transaction activity
    • Do not contemplate any 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 items that impact FFO comparability, including loss on debt extinguishment, litigation and other non-routine legal expenses, and transaction expenses, or any one-time items
  • The following table provides a reconciliation of the range of the Company’s 2021 estimated net income attributable to common stockholders to NAREIT FFO:

(Unaudited, dollars in millions, except per share amounts)

 

2021E

 

2021E Per
Diluted Share

Net income attributable to common stockholders

 

$148 – $190

 

$0.50 – $0.64

Depreciation and amortization

 

316

 

1.06

NAREIT FFO

 

$464 – $506

 

$1.56 – $1.70

CONNECT WITH BRIXMOR

  • For additional information, please visit www.brixmor.com;
  • Follow Brixmor on:
    • Twitter at https://twitter.com/Brixmor
    • Facebook at https://www.facebook.com/Brixmor
    • Instagram at https://www.instagram.com/brixmorpropertygroup
    • YouTube at https://www.youtube.com/user/Brixmor; and
  • Find Brixmor on LinkedIn at www.linkedin.com/company/brixmor.

CONFERENCE CALL AND SUPPLEMENTAL INFORMATION

The Company will host a teleconference on Friday, February 12, 2021 at 10:00 AM ET. To participate, please dial 877.705.6003 (domestic) or 201.493.6725 (international) within 15 minutes of the scheduled start of the call. 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 26, 2021 by dialing 844.512.2921 (domestic) or 412.317.6671 (international) (Passcode: 13713549) or via the web through February 12, 2022 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.

Contact Information:

http://www.brixmor.com


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