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Brixmor Property Group (BRX)
:BRX
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Brixmor Property
(NYSE:BRX)
70Outperform
Positive Factors
Growth Potential
Brixmor has a significant pipeline of projects that could fuel future growth, including potential earnings upside and multiple expansion.
Leasing Performance
Strong leasing is the main tailwind for Brixmor Property Group, benefiting from the low supply backdrop and low in-place portfolio rents.
Valuation
Brixmor Property Group's valuation is inexpensive, making it a compelling investment opportunity.
Negative Factors
Revenue Impact
Despite some unresolved tenant issues, the company faces challenges with tenant bankruptcies affecting revenues.
Tenant Exposure
Brixmor Property Group has relatively higher exposure to at-risk tenants compared to peers with similar or higher growth profiles and less tenant risk.
Tenant Risk
Concerns about increased bad debt have previously impacted stock performance due to Brixmor's higher tenant exposure compared to peers.
Brixmor Property (BRX) vs. S&P 500 (SPY)
Market Cap
$7.33B
Dividend Yield4.61%
Average Volume (3M)2.36M
Price to Earnings (P/E)21.5
Beta (1Y)0.90
Revenue Growth3.41%
EPS Growth10.54%
CountryUS
Employees453
SectorReal Estate
Sector Strength78
IndustryREIT - Retail
Share Statistics
EPS (TTM)1.11
Shares Outstanding306,040,400
10 Day Avg. Volume2,782,503
30 Day Avg. Volume2,361,249
Financial Highlights & Ratios
PEG Ratio2.04
Price to Book (P/B)N/A
Price to Sales (P/S)6.15
Price to Cash Flow (P/CF)12.40
P/FCF Ratio417.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$30.39Price Target Upside26.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Brixmor Property Business Overview & Revenue Model
Company DescriptionBrixmor (NYSE: BRX) is a real estate investment trust (REIT) that owns and operates a high-quality, national portfolio of open-air shopping centers. Its 395 retail centers comprise approximately 69 million square feet of prime retail space in established trade areas. The Company strives to own and operate shopping centers that reflect Brixmor's vision to be the center of the communities we serve and are home to a diverse mix of thriving national, regional and local retailers. Brixmor is a proud real estate partner to approximately 5,000 retailers including The TJX Companies, The Kroger Co., Publix Super Markets, Wal-Mart, Ross Stores and L.A. Fitness.
How the Company Makes MoneyBrixmor Property Group generates revenue primarily through the leasing of retail space within its shopping centers to a diverse array of tenants, which include national, regional, and local retailers. The company's revenue model is based on collecting base rent from tenants, which often includes additional charges for common area maintenance, taxes, and insurance. Brixmor also benefits from percentage rent, where tenants pay a portion of their sales revenue once certain thresholds are met. The company focuses on maintaining high occupancy rates and optimizing tenant mix to maximize rental income. Additionally, Brixmor may engage in property redevelopments and improvements, which can lead to increased rental rates and attract higher quality tenants. Strategic partnerships with key retailers and collaborative leasing strategies also contribute to Brixmor's income by ensuring a steady and diversified revenue stream.
Brixmor Property Financial Statement Overview
Summary
Brixmor Property demonstrates strong financial health with robust revenue growth, high profit margins, and a solid balance sheet free from debt. The cash flow position is strong, supporting business operations and growth. The company is well-positioned in the REITs industry with a focus on efficiency and profitability. However, attention is needed on improving EBIT margins to sustain long-term growth.Income Statement
Brixmor Property has shown a consistent increase in total revenue over the years, with a revenue growth rate of 3.21% in the most recent year. The company maintains a strong gross profit margin of 87.21% and a solid net profit margin of 26.41%. However, the decline in EBIT margin from 64.89% to 35.73% indicates potential inefficiencies or increased costs. EBITDA margin remains robust at 65.39%.78
Positive
Balance Sheet
The company exhibits a strong equity position with no total debt in the latest period, resulting in a debt-to-equity ratio of 0. The return on equity has improved to 11.37%, reflecting effective use of equity to generate profits. The equity ratio stands at 33.49%, indicating a balanced asset structure with significant shareholder equity.82
Very Positive
Cash Flow
Operating cash flow is strong at $624.69M, supporting a healthy free cash flow position. The free cash flow growth rate surged by 6.09%, showcasing improved cash generation. The operating cash flow to net income ratio is 1.84, indicating efficient cash conversion. The free cash flow to net income ratio is also favorable at 1.84.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.29B | 1.25B | 1.22B | 1.15B | 1.05B | Gross Profit |
| 1.12B | 925.05M | 906.28M | 854.49M | 772.64M | EBIT |
| 459.04M | 807.92M | 440.69M | 421.81M | 333.78M | EBITDA |
| 936.67M | 858.10M | 785.42M | 748.97M | 669.37M | Net Income Common Stockholders |
| 339.27M | 305.09M | 161.77M | 75.48M | -73.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 397.92M | 20.78M | 38.16M | 316.86M | 388.22M | Total Assets |
| 8.91B | 8.33B | 8.44B | 8.38B | 8.34B | Total Debt |
| 5.34B | 4.93B | 5.45B | 5.20B | 5.21B | Net Debt |
| 4.96B | 4.93B | 5.43B | 4.90B | 4.84B | Total Liabilities |
| 5.92B | 5.48B | 5.57B | 5.66B | 5.66B | Stockholders Equity |
| 2.98B | 2.85B | 2.87B | 2.72B | 2.68B |
| Cash Flow | Free Cash Flow | |||
| 624.69M | 588.79M | 236.03M | 243.66M | 158.34M | Operating Cash Flow |
| 624.69M | 588.79M | 566.38M | 552.24M | 443.10M | Investing Cash Flow |
| -437.02M | -163.08M | -462.45M | -331.00M | -167.25M | Financing Cash Flow |
| 172.12M | -428.07M | -380.41M | -293.58M | 72.71M |
Brixmor Property Technical Analysis
Negative
23.96
Price Trends
26.27
Negative
26.99
Negative
26.15
Negative
Market Momentum
-0.13
Negative
51.81
Neutral
79.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRX, the sentiment is Negative. The current price of 23.96 is below the 20-day moving average (MA) of 25.66, below the 50-day MA of 26.27, and below the 200-day MA of 26.15, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 79.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRX.
Brixmor Property Risk Analysis
Brixmor Property disclosed 31 risk factors in its most recent earnings report. Brixmor Property reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brixmor Property Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.63B | 18.84 | 9.32% | 5.68% | 4.97% | -0.26% | |
72 Outperform | $7.99B | 41.85 | 3.53% | 4.05% | 14.90% | 5.28% | |
72 Outperform | $8.01B | 27.09 | 9.58% | 4.92% | 6.21% | 22.32% | |
72 Outperform | $4.84B | 68.67 | 2.71% | 3.44% | 8.57% | 6.55% | |
70 Outperform | $7.33B | 21.51 | 11.61% | 4.61% | 3.41% | 10.54% | |
64 Neutral | $4.57B | 1,124.32 | 0.52% | 4.95% | 2.42% | -91.46% | |
61 Neutral | $4.44B | 16.16 | -3.31% | 11.40% | 5.81% | -21.40% |
* Real Estate Sector Average
Performance Comparison
BRX
Brixmor Property
23.96
2.68
12.59%
ADC
Agree Realty
74.46
19.75
36.10%
NNN
National Retail Properties
40.56
0.75
1.88%
KRG
Kite Realty Group
20.80
0.77
3.84%
FRT
Federal Realty
89.09
-7.83
-8.08%
PECO
Phillips Edison & Company
34.98
1.43
4.26%
Brixmor Property Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: -7.49% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial performance with significant growth in NOI and FFO, alongside successful leasing activity and strategic acquisitions. However, there were concerns about the impact of tenant bankruptcies on occupancy and potential future disruptions. Overall, the positive aspects of growth and financial strength outweigh the challenges posed by tenant disruptions.Highlights
Strong Financial Performance
Brixmor Property Group reported a 5% growth in both NOI and FFO, with NAREIT FFO per share reaching $2.13, representing an almost 5% increase from the previous year.
High Leasing Activity
Executed 1.5 million square feet of new and renewal leases at a blended cash spread of 21%, including 830,000 square feet of new leases, marking the highest quarterly output in two years.
Robust Same Property NOI Growth
Same property NOI grew 5% for the year, with a base rent growth contributing 600 basis points to same property NOI growth in Q4.
Successful Dispositions and Acquisitions
Completed $212 million of dispositions and $290 million of value-add acquisitions, including assets in core markets like Hartford, Tampa, and Boston.
Improved Balance Sheet
Credit rating upgraded to BAA2 by Moody's, with no debt maturities until June 2026 and total liquidity of $1.6 billion.
Record Occupancy Levels
Anchor occupancy reached 97.2% with a record 81% of ABR derived from grocery-anchored centers.
Lowlights
Impact of Bankruptcy Activity
Bankruptcy activity impacted occupancy by 70 basis points for the year, with specific challenges from tenants like Big Lots and Party City.
Short-term Occupancy Challenges
Overall occupancy grew 50 basis points year over year to 95.2%, but faced a 70 basis point impact from bankruptcy activity.
Tenant Disruption Concerns
Guidance for same property NOI growth includes a 200 basis point drag at the midpoint due to tenant disruptions, with potential for further lease rejections.
Company Guidance
During Brixmor Property Group Inc.'s fourth quarter 2024 earnings call, key financial metrics were highlighted, showcasing the company's solid performance and future outlook. The company reported a 5% year-over-year growth in both net operating income (NOI) and funds from operations (FFO), with FFO per share reaching $2.13 for the year. Same property NOI grew by 5%, contributing to a fourth-quarter FFO of $0.53 per share. Leasing activity was robust, with $118 million in new and renewal lease average base rent (ABR) signed during the year, including $32 million in the fourth quarter, and overall occupancy increased to 95.2%. Small shop occupancy reached record levels, and grocery-anchored centers accounted for 81% of ABR, reflecting strong tenant demand. The company's redevelopment efforts yielded $205 million of reinvestment at an average incremental return of 9%, with a future pipeline nearing $400 million at a 10% return. Looking ahead, Brixmor anticipates 2025 same property NOI growth between 3.5% and 4.5%, despite anticipated tenant disruptions. The company maintains strong liquidity with $1.6 billion available and a debt-to-EBITDA ratio of 5.7 times, positioning it well for continued growth and value creation.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.