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Brixmor Property Group (BRX)
:BRX
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Brixmor Property (BRX) AI Stock Analysis

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BRX

Brixmor Property

(NYSE:BRX)

Rating:74Outperform
Price Target:
$29.00
▲(11.93% Upside)
Brixmor Property's strong financial performance and optimistic guidance from the earnings call are the most significant factors contributing to the score. The company demonstrates solid revenue growth, effective cost management, and strategic asset acquisitions. The technical analysis and valuation suggest a stable, though not exceptional, market position, while the attractive dividend yield adds to its appeal.
Positive Factors
Earnings Guidance
Earnings guidance for the company has been increased, surpassing market expectations and indicating a stronger performance in the latter half of the year.
Financial Performance
BRX reported funds from operations that exceeded both their own estimates and those of market analysts, reflecting a better-than-anticipated financial performance.
Project Pipeline
Brixmor has a significant pipeline of projects that could fuel future growth, including potential earnings upside and multiple expansion.
Negative Factors
Occupancy Rates
Leased occupancy declined by 100bps year-over-year and 110bps sequentially to 94.1%.
Tenant Exposure
Concerns about increased bad debt have previously impacted stock performance due to Brixmor's higher tenant exposure compared to peers.
Vacant Tenants
There is exposure to vacating tenants like Big Lots and Party City, which presents potential challenges.

Brixmor Property (BRX) vs. SPDR S&P 500 ETF (SPY)

Brixmor Property Business Overview & Revenue Model

Company DescriptionBrixmor Property Group Inc. (BRX) is a real estate investment trust (REIT) that primarily owns and operates open-air shopping centers across the United States. With a portfolio of hundreds of retail properties, Brixmor focuses on leasing space to a diverse mix of tenants including national, regional, and local retailers. The company's properties are strategically located in major markets to attract a wide range of consumers, providing essential goods and services.
How the Company Makes MoneyBrixmor Property Group makes money primarily through leasing retail space in its shopping centers to various tenants. The company's revenue is generated from rental income, which includes base rent, percentage rent, and reimbursements for property operating expenses such as taxes, insurance, and maintenance. Brixmor's earnings are further supported by strategic leasing initiatives that aim to enhance tenant mix, optimize occupancy rates, and increase rental rates. The company's financial performance is also influenced by its ability to manage property expenses efficiently and engage in value-enhancing redevelopment projects. Additionally, Brixmor benefits from economies of scale due to its extensive property portfolio, enabling it to negotiate favorable contracts and partnerships with service providers.

Brixmor Property Earnings Call Summary

Earnings Call Date:Jul 28, 2025
(Q2-2025)
|
% Change Since: 1.45%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
The call highlighted strong leasing activity and financial performance, with significant growth in new leases and strategic acquisitions. However, tenant disruption posed a challenge, impacting same-property NOI growth. The company remains optimistic about future growth fueled by a robust pipeline and strategic asset management.
Q2-2025 Updates
Positive Updates
Record Leasing Activity
Executed 1.7 million square feet of new and renewal leases at a blended cash spread of 24%, including over 900,000 square feet of new leases at a 44% spread, generating the highest quarterly annual base rent in company history.
Strong Financial Metrics
NAREIT FFO was $0.56 per share in the second quarter, driven by same-property NOI growth of 3.8%, despite a 260 basis point drag from tenant disruption. Base rent growth contributed 360 basis points to same-property NOI growth.
Strategic Acquisition
Acquisition of LaCenterra, an iconic grocery-anchored lifestyle asset in the Houston MSA, expected to drive significant upside with current yields in the low 6s and potential for high single-digit to low double-digit IRRs.
Robust Pipeline Visibility
Signed but not commenced pipeline totaled $67 million, providing visibility for future growth with expectations to commence $41 million through the remainder of the year.
Negative Updates
Tenant Disruption Impact
Same-property NOI growth faced a 260 basis point drag due to tenant disruption, including bankruptcies of Big Lots, Party City, and JOANN.
Potential Future Tenant Risk
Concerns remain about potential tenant risks in categories such as drug stores and theaters, despite current improvements in the portfolio's credit profile.
Company Guidance
During the Brixmor Property Group's Second Quarter 2025 Earnings Conference Call, the company provided guidance indicating strong performance and growth prospects. Key metrics highlighted include a robust leasing activity that drove the signed but not commenced (SNO) pipeline to $67 million, representing 7% of total annual base rent (ABR), despite commencing $15 million of new ABR in the quarter. The company expects net operating income (NOI) growth of over 4% for the year, despite a 260 basis point drag from tenant disruptions. Additionally, Brixmor raised its same-property NOI growth guidance to 3.9%-4.3% and increased its funds from operations (FFO) guidance to $2.22-$2.25. The company's reinvestment pipeline is projected to reach the upper end of the annual goal of $150 million to $200 million, with ongoing capital recycling efforts. The acquisition of LaCenterra, a grocery-anchored lifestyle asset, is expected to yield high single-digit to low double-digit internal rates of return (IRR), contributing to future growth and enhancing portfolio quality.

Brixmor Property Financial Statement Overview

Summary
Brixmor Property demonstrates strong financial health with consistent revenue growth and efficient cost management, reflected in solid profit margins. Leverage is moderate but manageable, supported by a stable asset base and good return on equity. Cash flows are strong, indicating effective operational management and capital allocation.
Income Statement
78
Positive
Brixmor Property shows a solid performance with a steady increase in total revenue over the years. The gross profit margin is strong at approximately 71.2% in the TTM period, indicating efficient cost management. However, net profit margin slightly decreased from 26.4% in 2024 to 24.6% in the TTM period. The EBIT margin remains stable at about 35.9%. Revenue growth has been consistent, with TTM revenue up by 1.3% from the previous year, although the pace has slowed slightly.
Balance Sheet
72
Positive
The balance sheet reflects moderate leverage with a debt-to-equity ratio of 1.73, indicating reliance on debt financing. The equity ratio stands at 34.4%, showing a balanced asset structure. Return on equity is relatively strong at 10.8% for the TTM period, driven by consistent profitability. The company maintains a stable asset base, although slight fluctuations in equity suggest some financial strategy adjustments.
Cash Flow
75
Positive
Cash flows are robust with positive free cash flow growth. The operating cash flow to net income ratio is healthy at 1.96, demonstrating strong cash generation relative to net income. The free cash flow to net income ratio is also solid at 2.20, indicating effective capital management and operational efficiency. However, the cash flow from financing activities suggests a focus on debt repayment, which could impact future liquidity.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.29B1.25B1.22B1.15B1.05B
Gross Profit1.12B925.05M906.28M854.49M772.64M
EBITDA936.67M858.10M785.42M748.97M669.37M
Net Income339.27M305.09M161.77M75.48M-73.82M
Balance Sheet
Total Assets8.91B8.33B8.44B8.38B8.34B
Cash, Cash Equivalents and Short-Term Investments397.92M20.78M38.16M316.86M388.22M
Total Debt5.34B4.93B5.45B5.20B5.21B
Total Liabilities5.92B5.48B5.57B5.66B5.66B
Stockholders Equity2.98B2.85B2.87B2.72B2.68B
Cash Flow
Free Cash Flow624.69M588.79M236.03M243.66M158.34M
Operating Cash Flow624.69M588.79M566.38M552.24M443.10M
Investing Cash Flow-437.02M-163.08M-462.45M-331.00M-167.25M
Financing Cash Flow172.12M-428.07M-380.41M-293.58M72.71M

Brixmor Property Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.91
Price Trends
50DMA
25.55
Positive
100DMA
25.33
Positive
200DMA
26.15
Positive
Market Momentum
MACD
0.14
Negative
RSI
57.28
Neutral
STOCH
32.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRX, the sentiment is Positive. The current price of 25.91 is above the 20-day moving average (MA) of 25.82, above the 50-day MA of 25.55, and below the 200-day MA of 26.15, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 57.28 is Neutral, neither overbought nor oversold. The STOCH value of 32.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$7.89B19.969.18%5.57%5.40%-1.33%
74
Outperform
$8.08B24.1411.52%4.46%5.98%12.11%
72
Outperform
$8.16B43.973.44%4.13%13.27%-5.92%
72
Outperform
$8.11B26.819.85%4.71%6.07%24.23%
70
Neutral
$4.71B63.983.01%3.65%10.31%14.39%
69
Neutral
$0.0027.805.53%4.88%4.03%
63
Neutral
$6.81B13.93-1.43%7.28%4.69%-34.09%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BRX
Brixmor Property
26.39
2.23
9.23%
ADC
Agree Realty
74.27
5.57
8.11%
NNN
National Retail Properties
41.98
-1.58
-3.63%
KRG
Kite Realty Group
21.93
-1.14
-4.94%
FRT
Federal Realty
93.39
-14.28
-13.26%
PECO
Phillips Edison & Company
34.02
0.43
1.28%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 05, 2025