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    BRX
    Earnings call· Mar 2026(Q1 FY26)

    Brixmor Property Group Q1 FY26 earnings call BRX

    Apr 28, 2026 Source

    Executive summary

    Brixmor Q1 FY26 — Strong Leasing Momentum and Improved Outlook

    Brixmor delivered strong Q1 FY26 results, driven by robust leasing demand, significant rent spreads, and successful reinvestment projects, leading to an improved full-year outlook. Despite geopolitical and capital market uncertainties, the company benefits from strong retail fundamentals, low new supply, and resilient consumer traffic, positioning it for continued cash flow growth and value creation. Management remains disciplined in capital allocation, focusing on accretive reinvestment and opportunistic acquisitions.

    Highlights

    5

    • Same-property NOI grew 6.4% year-over-year.

    • Executed 1.3 million square feet of new and renewal leases with a blended cash spread of 27%.

    • New lease spreads were 42% and renewal growth was 21%, a record.

    • Total lease occupancy ended the quarter at 95.1%, up 100 basis points year-over-year.

    • Raised full-year same-property NOI growth guidance to 4.75%-5.5% and FFO guidance to $2.34-$2.37 per share.

    Concerns

    2

    • Expected overall occupancy headwinds in Q2 due to a handful of anticipated box recaptures.

    • Capital markets volatility and geopolitical tensions are being monitored.

    Guidance & targets

    3
    CategoryTargetConfidence
    Same-property NOI growth
    4.75% to 5.5%
    high materiality
    High
    FFO per share
    $2.34 to $2.37 per share
    high materiality
    High
    Revenues deemed uncollectible
    75 to 100 basis points
    medium materiality
    Medium

    Operational metrics

    21
    Consumer traffic growth
    3.5%year-over-year
    Q1 FY26

    Consumer traffic at our centers continues to grow with over 220 million visits in the first quarter, up over 3.5% year-over-year.

    Total lease occupancy
    95.1%flat sequentially, up 100 bps year-over-year
    Q1 FY26

    total lease occupancy ended the quarter at 95.1%, flat sequentially and up 100 basis points year-over-year

    Small shop occupancy
    92.1%up 130 bps year-over-year
    Q1 FY26

    small shop occupancy was 92.1%, up 130 basis points year-over-year

    Signed but not commenced pipeline
    $67 millionup 10% year-over-year
    Q1 FY26

    Our leasing activity during the quarter also increased our signed but not commenced pipeline to $67 million, up 10% year-over-year.

    Signed but not commenced ABR expected to commence
    $38 million
    FY26

    We anticipate approximately $38 million of that binocummence ABR to commence ratably throughout 2026.

    Leased to occupied spread
    370
    Q1 FY26

    ended the period with a 370 basis point spread between leased and build occupancy.

    Stabilized projects value
    $78 million
    Q1 FY26

    We stabilized $78 million of projects at a 9% average incremental return.

    Active reinvestment pipeline
    $302 million
    Q1 FY26

    At quarter end, our active reinvestment pipeline stood at $302 million with a 10% average incremental return

    Future reinvestment pipeline
    $700 million
    Q1 FY26

    with another $700 million in our future pipeline including opportunities and assets we acquired over the last 2 years.

    New outparcel development projects
    6record
    Q1 FY26

    adding a record 6 new projects at an attractive 16% incremental return.

    Equity raised via forward ATM
    $115 million
    Q1 FY26

    we proactively raised $115 million of equity under our at-the-market equity program on a forward basis to partially fund our growing acquisition pipeline.

    Interest rate hedge
    $200 million
    Q1 FY26

    we proactively entered into a $200 million interest rate hedge at 3.99%, providing us protection against recent volatility in the treasury markets.

    Available liquidity
    $1.8 billion
    Q1 FY26

    We ended the period with $1.8 billion of available liquidity, including $425 million in cash, $115 million of unsettled forward ATM proceeds and $1.25 billion in capacity under our revolving credit facility

    Debt-to-EBITDA
    5.3x
    Q1 FY26

    Debt-to-EBITDA is 5.3x as the continued growth in free cash flow of the underlying portfolio has allowed us to naturally deleverage

    Revenues deemed uncollectible
    54
    Q1 FY26

    we were 54 basis points of total revenues within the quarter.

    Move-outs
    10%down from last year
    YTD

    Move-outs, which were historic lows for the portfolio last year are down 10% from a GLA perspective thus far year-to-date.

    In-place anchor rents
    low double digits
    current

    overall, our in-place anchor rents are in the low double digits.

    Anchor rents on new leases
    $17record
    last year

    Our anchor rents over the last year were a record at over $17

    Lease renewal growth
    mid-teens
    3 years running

    we're now 3 years running of renewal growth in the mid-teens.

    Average Base Rent
    $19up from $12.50
    current

    We've taken rents from 1,250 to over $19. We're signing those leases today in the mid-20s.

    In-place rents on redeveloped properties
    25%higher than in-place portfolio
    current

    It's about 25% higher in-place rents based on the assets that we redeveloped versus the in-place portfolio.

    Industry KPIs

    5
    MetricValueDetails
    Credit loss ratio54basis points
    Same store rent revenue growth6.4%%
    Rent recapture rate on renewals re leasing21%%
    Sourced opportunity volume and selectivity$160 millionUSD
    Blended acquisition cap rate and spread vs cost—

    Orderbook & backlog

    2
    Signed but not commenced pipeline$67 millionQ1 FY26

    up 10% year-over-year

    approximately $38 million ABR expected to commence ratably throughout 2026

    Assets under control (acquisition pipeline)$160 millionQ1 FY26

    underwriting additional opportunities; focus on assets where platform can drive value

    Deals & partnerships

    2
    VariousSale of assets where value has been maximized.$108 million

    disposed of $108 million of assets where value has been maximized.

    VariousAssets identified for acquisition in high-growth markets.$160 million

    over $160 million of assets under control in high-growth markets where we have a strong presence and a deep pipeline of additional opportunities we are currently underwriting.

    Capital programs

    6
    Wynwood Village Target (South Dallas, TX)stabilized

    Benefit: first large format Target

    stabilized $78 million of projects at a 9% average incremental return. This included 2 transformational projects, the opening of our first large format target at Wynwood Village in South Dallas, Texas

    Block 59 Phase 1 (suburban Chicago)stabilized

    stabilized $78 million of projects at a 9% average incremental return. This included ... Phase 1 of Block 59 in suburban Chicago.

    Roosevelt Mall Redevelopment Phase 1 (Philadelphia)commenced
    Start: Q1 FY26

    Benefit: further densifying the site with Ulta, Shake Shack and Victoria's Secret

    We also commenced Phase I of our Roosevelt Mall redevelopment in Philadelphia, further densifying the site with exceptional operators like Ulta, Shake Shack and Victoria's Secret.

    Outparcel Development Programactive

    Benefit: 6 new projects added

    We continue to make meaningful progress on our outparcel development program, adding a record 6 new projects at an attractive 16% incremental return.

    Active Reinvestment Pipelineactive$302 million

    Benefit: 10% average incremental return

    At quarter end, our active reinvestment pipeline stood at $302 million with a 10% average incremental return

    Future Reinvestment Pipelineplanned$700 million

    with another $700 million in our future pipeline including opportunities and assets we acquired over the last 2 years.

    Risks & headwinds

    4
    Heightened uncertaintycurrent period

    Geopolitical tensions and capital markets volatility are real

    Mitigation: monitoring that

    Occupancy headwindsQ2 FY26

    overall occupancy headwinds in the second quarter

    Mitigation: due to a handful of anticipated box recaptures, we expect to return to a growth trajectory in the second half of the year.

    Drug store closuresongoing

    very low percentage of what we do. It's about 80 basis points

    Mitigation: low exposure, ability to re-lease at higher spreads

    Office supply exposurepast few quarters

    cut our office supply exposure in half

    Mitigation: leased a number of those boxes to off-price uses over the last few quarters at significant spreads.

    What to watch in Q2 FY26

    5

    Occupancy growth trajectory

    second half of the year
    Current95.1% total lease occupancy, flat sequentially
    TargetReturn to growth trajectory

    Why it matters

    Demonstrates the company's ability to overcome Q2 headwinds and continue driving revenue growth from its portfolio.

    And while we do expect overall occupancy headwinds in the second quarter, due to a handful of anticipated box recaptures, we expect to return to a growth trajectory in the second half of the year.

    Q&A highlights

    7

    Quantify the expected Q2 occupancy headwind and explain how the 370 bps leased-to-occupied spread will progress, given $38M of SNC ABR expected in 2026.

    Brian Finnegan stated the occupancy impact would be modest, but acknowledged it might affect the growth trajectory, expecting a return to growth in H2. Steve Gallagher clarified that the SNC pipeline is expected to commence ratably, but the team is focused on backfilling it, and some impactful leases (like Publix) are in the longer-term pipeline for 2027, which might keep the spread wider.

    “Overall, we're very pleased with the occupancy trends in the portfolio were well below peak occupancy. So it's a handful of boxes. We expect it to be modest, but ultimately expect to be able to put better tenants and at much higher rents.”

    asked by Michael Griffin · answered by Brian Finnegan

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q1 Performance and Market Backdrop

    Brixmor reported strong Q1 FY26 results, with same-property NOI up 6.4% and FFO of $0.58 per share, leading to an improved full-year outlook. The company highlighted robust fundamentals in open-air grocery-anchored retail, including growing consumer traffic (up 3.5% YoY with over 220 million visits), historic low new supply, and strong retailer demand for physical stores.

    02

    Leasing Momentum and Occupancy

    The company executed 1.3 million square feet of new and renewal leases at a blended cash spread of 27%, with new lease spreads at 42% and record renewal growth of 21%. Total lease occupancy reached 95.1%, up 100 basis points year-over-year, and small shop occupancy was 92.1%, up 130 basis points year-over-year. The signed but not commenced (SNC) pipeline grew to $67 million, up 10% year-over-year, with $38 million expected to commence in 2026.

    03

    Accretive Reinvestment and Development

    Brixmor stabilized $78 million of projects at a 9% average incremental return, including the opening of a large-format Target at Wynwood Village and Phase 1 of Block 59. The active reinvestment pipeline stands at $302 million with a 10% average incremental return, complemented by a future pipeline of $700 million, providing a long runway for growth. The outparcel development program added 6 new projects at a 16% incremental return.

    04

    Capital Recycling and Acquisition Strategy

    The company disposed of $108 million of assets where value had been maximized. While no acquisitions closed in Q1, Brixmor has $160 million of assets under control in high-growth markets and a deep pipeline of additional opportunities. The company raised $115 million through its forward ATM program to support its capital recycling strategy and maintain flexibility.

    05

    Balance Sheet and Liquidity

    Brixmor proactively raised $115 million of equity via its ATM program on a forward basis to partially fund its growing acquisition pipeline. The company also entered into a $200 million interest rate hedge at 3.99% for an upcoming June bond maturity. Brixmor ended the quarter with $1.8 billion of available liquidity, including $425 million in cash, $115 million of unsettled forward ATM proceeds, and $1.25 billion in revolving credit facility capacity. Debt-to-EBITDA stood at 5.3x.

    06

    Tenant Credit Quality and Bad Debt

    The underlying credit quality of the tenant base is described as the strongest in the company's history, with move-outs (GLA perspective) down 10% year-to-date. Revenues deemed uncollectible contributed 30 basis points to same-property NOI growth, and the company expects 75-100 basis points for the full year. Tenant sales remain healthy, reflected in the percentage rent line item, and occupancy costs are favorable, supporting strong renewal rates.

    AI-generated summary of the company’s earnings call. Not investment advice.