Brixmor Property Group Inc. (NYSE:BRX) Q3 2023 Earnings Call Transcript

So I think that mostly covers same property. On the FFO side, we did note just, obviously, a debt maturity next year, also a swap that will be burning off in late July of 2024 that’s going to create some additional pressure from an interest expense perspective. And the only other thing I would note that was a little bit more recurring on one-time in FFO was just a gain on debt extinguishment this year of right around $0.005, almost $0.02 a share, but that really covers it.

Jeffrey Spector: Great. Thank you.

James Taylor: Thank you, Jeff.

Operator: Next question comes from Haendel St. Juste with Mizuho. Please go ahead.

Haendel St. Juste: Hey, guys. Thanks for all the color on the call. It’s been great. I did have a question on the same-store growth in the quarter, the 4.8%. I’m curious, Angela, if there’s anything – if you can help us maybe quantify the impact of potential below market lease adjustments or earnings from terminated Bed Bath leases and were there a few assets that were added to the same-store pool in the third quarter? Thanks.

Angela Aman: Yeah. We give a reconciliation of the pool in the glossary and there were some of the acquisitions that did come in to 2020 – I guess I think it would be 2022 acquisitions or 2021 acquisitions that came in – I’m sorry, 2022 acquisitions that came into the quarterly pool for this year, but won’t come into the annual pool until 2024. As it relates to below market, I would just highlight again, obviously, straight line and FAS 141 does not impact the same property or the same property growth calculation. So the 4.8% was not impacted at all by any either the straight line rent reversals in the quarter or any below market sort of acceleration from a FAS perspective. Nothing significant to note on the FAS acceleration side. We continue to – there are small balances as you move through the year, but actually on a net basis I think it was pretty minimal during the quarter.

Haendel St. Juste: Got it. Do you have the impact of the six assets, I think there were to the third quarter results and then maybe from an earnings perspective, was there an impact from the FAS 141? Thanks.

Angela Aman: I mean it was well less than $0.005 a share on the FAS acceleration side. So, I mean, really pretty de minimis during the quarter. I don’t have broken out separately – just the acquisition.

Haendel St. Juste: Hello?

Angela Aman: Sorry, can you hear me, Haendel?

James Taylor: Haendel, can you hear us?

Haendel St. Juste: Hello?

James Taylor: Yeah, Haendel, can you hear us? Operator, can you hear us?

Operator: I can.

James Taylor: Haendel, I think the problem might be on your line, but to answer your question, the addition of the acquisition assets did not materially move our same-store wasn’t big enough.

Operator: Next question, Mike Mueller with JPMorgan. Please go ahead.

Michael Mueller: Yeah. Hi. I guess looking at the reinvestment pipeline, you have strong in place expected yields on that. When you’re thinking about the starts that you’re kind of looking at kicking off in, say, 2024. How do the yield expectations compared to what we see in the supplemental for what’s in process today?

James Taylor: They continue to remain strong and they’re enhanced frankly by the growth and rent that we expect as we execute these projects. So, we obviously work really hard to lease and price out and get a project ready to be launched. And in that way, Mike, we greatly mitigate our risk, right? We’re not committing substantial capital until we understand what our growth and incremental returns are. So I like what we’re seeing in that forward pipeline and it’s driven by the same factors that you’re seeing driving the existing portfolio in terms of growth.

Michael Mueller: Got it. Okay, thank you.

James Taylor: You bet.

Operator: Next question, Anthony Powell with Barclays. Please go ahead.

Anthony Powell: Hi, good morning. In terms of a tenant demand, are you seeing any new types of tenants or new categories of tenants increase their activity in the portfolio or is it kind of the similar trends that we’ve seen in the past few quarters?