Investor Presentation Q U A R T E R E N D E D J U N E 3 0 , 2 0 1 9
WHO IS BRIXMOR? PORTFOLIO QUICK FACTS • We are one of the largest open-air retail landlords in the US Number of shopping centers 421 • We strive to own properties that are the centers of the communities we serve, by GLA 73M SF thoughtfully merchandising our centers and creating inviting gathering places Average shopping center size 174K SF • Non-discretionary, value-oriented retail mix with strong service component Percent billed 87.5% o ~70% of centers are grocery-anchored Percent leased 91.5% Percent leased – Anchors (≥ 10K SF) 94.2% • High quality, well-diversified portfolio with ~5,000 national, regional, local tenants Percent leased – Small shops (< 10K SF) 85.3% Average grocer sales PSF 1 ~$560 TOP RETAILERS BY ABR Average grocer occupancy cost 1 < 2% % of % of Credit Rating Retailer Stores ABR ABR PSF GLA (S&P/Moody’s) 88 3.4% $11.10 3.7% A+ / A2 53 2.9% 7.39 4.8% BBB / Baa1 FLEXIBLE RETAIL FORMAT 2 132 1.8% 10.71 2.1% BBB- / Baa3 29 1.4% 9.46 1.7% NR 75% 21 1.3% 10.36 1.6% BBB / Baa1 Community / 12% Power center Neighborhood 21 1.3% 9.66 1.7% BB+ / Ba1 17 1.2% 11.50 1.3% B+ / B1 11% Grocery-anchored 15 1.2% 16.63 0.9% B+ / B2 regional center 35 1.2% 10.93 1.3% A- / A2 2% Other 32 1.1% 12.41 1.1% BB+ / Baa3 TOP 10 443 16.8% $10.18 20.2% > 3
BRIXMOR’S KEY DIFFERENTIATORS PLATFORM & EXECUTION Leas asin ing Retooled platform Over the last three years, we have built a best-in-class operating platform • Delivering sector leading leasing productivity • Capit ital al Operat ation ions Recyclin ling o $51M of leases signed but not yet commenced providing tailwinds into 2020 o Increasing market share with thriving tenants at better rents o Continued growth in small shop occupancy despite redevelopment and bankruptcy activity Reinvest nvestment ent Proven reinvestment execution with $300M of projects completed at average incremental NOI yields of ~11% • Portfolio transformation underway • ~ 50% of original portfolio has been sold or has been or will be reinvested in o 20% of original portfolio, exiting 30 single asset markets o 30% of original portfolio reinvested in or identified as a future redevelopment Portfolio Size In-Place ABR PSF Small Shop New Small Shop Active Reinvestments (M SF) Percent Leased ABR PSF ($M) $415 $14.39 85.3% $22.62 87 73 $160 83.9% $18.67 $12.85 518 421 39 61 centers centers projects projects 1Q16 2Q19 1Q16 2Q19 1Q16 2Q19 TTM 2Q16 TTM 2Q19 1Q16 2Q19 > 4
2Q 2019 HIGHLIGHTS Executing on all facets of balanced and self-funded business plan ABR PSF Trajectory New Lease Rent Spreads 1 New Lease Volume (K SF) 37.2% 1,026 1,014 $14.39 936 $14.32 875 34.4% 33.7% 33.3% 32.7% $14.10 694 $13.89 $13.73 2Q18 3Q18 4Q18 1Q19 2Q19 TTM TTM TTM TTM TTM 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Delivering Reinvestment Visible Tailwinds Prudent Capital Allocation Value Now $50 M delivered YTD at 9 % incremental 400 bps spread between leased and billed $98 M of dispositions YTD returns 2,3 occupancy, widest since IPO $78 M of acquisitions YTD >$25 M of value creation 4 $51 M record level of ABR in leases signed $15 M of stock repurchases YTD but not yet commenced $415 M in process at 10 % incremental returns 2,3 >$275 of value creation 4 > 5
Why Invest With Us At Brixmor ?
WHY BRIXMOR? UNIQUELY POSITIONED TO DRIVE SUSTAINABLE GROWTH • We are a leading landlord to retailers who thrive in today’s environment • We are the most productive leasing platform in the industry • We have unmatched visibility on growth • We have an unparalleled opportunity to invest in our assets and drive future growth • We have a self-funded business plan and disciplined approach to capital allocation • We have an attractive, well-covered dividend • We have a strong balance sheet providing maximum flexibility • We believe that prioritizing the well-being of all of our stakeholders delivers long-term sustainable growth > 7
We are a leading landlord to retailers who thrive in today’s environment
WHY BRIXMOR? INCREASING MARKET SHARE WITH RELEVANT TENANTS Trusted partner Brixmor’s Share of New Store Opening Plans (2019) 1 • One of the largest landlords to thriving retailers 28% BRX Share of New Stores BRX Share of Existing Retailer Fleet 14% 13% 10% 9% 8% 7% 3% 3% 4% • Proven national relationships driving outsized market share 2% 2% 1% 1% • Recognizing the importance of our tenants’ success Fitness Burlington Ross Panera Sprouts Fitness TJX Five Below Local sharpshooter approach • Focused on targeting and developing relationships with successful local merchants… “The Local Anchor” • Harvesting valuable local market insight • Providing best-in-class leasing and operational service > 9
WHY BRIXMOR? THRIVING RETAILERS INVESTING IN PHYSICAL STORES Our centers are essential to retailer success Industry Commentary • Physical stores, online and digital are interdependent – creating a “halo effect” that strengthens brand identity “ Stores remain critical to our success and we continue to invest to elevate the overall experience.” o Opening a new store in a market results in a 37% increase in traffic to retailer’s website “ Our online sites are highly complementary to our physical stores ; and our differentiated online merchandise mix gives consumers a compelling • Today’s consumer is demanding superior customer reason to shop us both online and in our stores.” experience and is willing to support brands that provide a range of omnichannel conveniences “ More than ever, we’re innovating across the business . We’re experimenting with emerging technologies to improve store operations and o Omnichannel shoppers account for only 7% of all reduce friction in our customers’ lives.” shoppers but produce 27% of all sales “While our stores remain the hub of our business, we know that many of our o Retailers continue to invest in stores to provide in-store sales are influenced by online visits… Our customers continue to seamless experience across channels blend the channels of engagement, and we are investing to remove the friction as they do so .” • Retailers are actively utilizing BOPIS (Buy-Online-Pickup-In- Store) to cut delivery costs, engage with customers and “We're building a platform to serve customers anything they want, anytime drive in-store sales they want, and anywhere they want. Our customers don't distinguish between an in-store and online experience . Rather, they typically have a o 86% of US shoppers make incremental purchases food-related need or a problem to solve and want the easiest, most seamless solution..” while picking up e-commerce orders Source: eMarketer, ICSC, IHL Group Radial > 10
We are the most productive leasing platform in the industry
WHY BRIXMOR? LEASING OUTPERFORMANCE Sector leading leasing New lease productivity – TTM 1 New ABR created – TTM 2 4.8% 50% 6.0% 7% 60 5.8% 4.1% 45% 3.8% 5.0% 5.2% 6% 50 3.1% 40% 2.7% 4.0% 5% 2.1% 35% 2.0% 3.8% 3.0% 3.7% 40 3.6% 1.6% 34% 30% 4% 2.0% 25% 30 1.0% 3% 23% 20% 1.5% 20% 20% 20% 0.0% 20 15% 17% 17% 2% 14% -1.0% 10% 10 1% $11 $21 $23 $34 $34 $47 -2.0% 5% 0% -3.0% 0% 0 RPAI SITC KIM REG FRT WRI KRG BRX FRT RPAI SITC REG KIM BRX New Lease Spreads New Lease GLA (as a % of avg. portfolio GLA) New ABR Created ($M) % of Portfolio ABR Purposeful merchandising Better tenants Better rents > 12
We have unmatched visibility on growth
WHY BRIXMOR? VISIBILITY ON GROWTH More Upside Less Downside Significant revenue growth opportunity Lower relative retailer watchlist exposure (by GLA) • Historic portfolio under-investment and under-management • Below-market rent profile • Unmatched mark-to-market opportunity $11.87 6.1% 44% 5.6% 5.2% spread 4.3% 3.9% $8.23 $8.26 3.4% Old ABR PSF New ABR PSF Available FRT BRX WRI KIM RPAI REG Anchor Leases New Anchor Leases 1Q16 – 2Q19 Source: ISI 2 2019 – 2021 (comparable leases only) (3,744K SF) 1 > 14
WHY BRIXMOR? VISIBILITY ON GROWTH More Upside Less Downside Tailwinds from executed leasing Proactive risk reduction over last three years $51 $51 M of ABR from leases signed but not yet commenced ↓ Increasing market share Commencing in period Previously commenced ($M) $10 $10 $41 100% $31 $31 80% 60% ↓ Reducing market share 2H 2019 1H 2020 2H 2020+ 2H 2019 1H 2020 2H 2020+ Expected Commencement > 15
We have an unparalleled opportunity to invest in our assets and drive future growth
WHY BRIXMOR? HIGHLY ACCRETIVE REINVESTMENT OPPORTUNITITES Over $1 B of identified reinvestment opportunities • Multiple years of reinvestment potential at highly accretive yields • All reinvestment projects are evaluated from a sustainability perspective o Where possible, Brixmor uses materials and products that are locally sourced and/or made from recycled materials o Sustainability improvements are beneficial to the environment, while also generating accretive returns and margin improvements ‒ Solar array installation, LED lighting, low maintenance attractive landscaping and storm water management Mall at 163 rd Street | Miami, Florida Pointe Orlando | Orlando, Florida > 17
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