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Brixmor Property (BRX)
NYSE:BRX
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Brixmor Property
(NYSE:BRX)
73Outperform
Positive Factors
Financial Performance
Brixmor Property Group reported $0.56/sh FFO in 1Q25, which was ahead of the consensus estimate.
Growth Potential
The company benefits from a long growth runway due to factors such as a higher SNO pipeline, redevelopments, and rent bumps, offering significant leasing upside opportunities.
Valuation
Brixmor Property Group's valuation is inexpensive, making it a compelling investment opportunity.
Negative Factors
Occupancy Challenges
Leased occupancy declined by 100bps year-over-year and 110bps sequentially to 94.1%.
Revenue Concerns
Brixmor Property Group's guidance reflects 75-110 basis points of revenues deemed uncollectible, tied to traditional bad debt expense due to elevated exposure to known tenant issues.
Tenant Risk
Despite BRX's strong momentum, concerns about increased bad debt and greater tenant exposure compared to peers have affected stock performance.
Brixmor Property (BRX) vs. S&P 500 (SPY)
Market Cap
$8.08B
Dividend Yield4.45%
Average Volume (3M)2.36M
Price to Earnings (P/E)25.2
Beta (1Y)0.80
Revenue Growth4.58%
EPS Growth12.65%
CountryUS
Employees453
SectorReal Estate
Sector Strength82
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.23
Shares Outstanding306,060,150
10 Day Avg. Volume2,300,974
30 Day Avg. Volume2,358,392
Financial Highlights & Ratios
PEG Ratio-4.46
Price to Book (P/B)2.61
Price to Sales (P/S)0.00
P/FCF Ratio10.96
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue2.48
Enterprise Value/Gross Profit13.70
Enterprise Value/Ebitda3.57
Forecast
1Y Price Target
$29.68Price Target Upside13.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Brixmor Property Business Overview & Revenue Model
Company DescriptionBrixmor Property Group (BRX) is a publicly traded real estate investment trust (REIT) that specializes in the ownership and management of open-air shopping centers across the United States. The company owns and operates a diverse portfolio of approximately 400 retail properties, which are strategically located primarily in densely populated suburban areas. Brixmor aims to create attractive shopping environments by enhancing tenant mix and improving property conditions, focusing on convenience and value for consumers.
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 consistent revenue growth and efficient cost management, as reflected in solid profit margins. The company's 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. Continued focus on debt management and maintaining revenue growth will be key for sustained financial strength.Income Statement
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.78
Positive
Balance Sheet
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.72
Positive
Cash Flow
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.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.30B | 1.29B | 1.25B | 1.22B | 1.15B | 1.05B | Gross Profit |
| 926.86M | 1.12B | 925.05M | 906.28M | 854.49M | 772.64M | EBIT |
| 467.85M | 470.18M | 807.92M | 440.69M | 421.81M | 333.78M | EBITDA |
| 931.41M | 936.67M | 858.10M | 785.42M | 748.97M | 669.37M | Net Income Common Stockholders |
| 320.10M | 339.27M | 305.09M | 161.77M | 75.48M | -73.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 426.62M | 397.92M | 20.78M | 38.16M | 316.86M | 388.22M | Total Assets |
| 8.64B | 8.91B | 8.33B | 8.44B | 8.38B | 8.34B | Total Debt |
| 5.31B | 5.34B | 4.93B | 5.45B | 5.20B | 5.21B | Net Debt |
| 4.90B | 4.96B | 4.93B | 5.43B | 4.90B | 4.84B | Total Liabilities |
| 5.79B | 5.92B | 5.48B | 5.57B | 5.66B | 5.66B | Stockholders Equity |
| 2.86B | 2.98B | 2.85B | 2.87B | 2.72B | 2.68B |
| Cash Flow | Free Cash Flow | ||||
| 703.12M | 624.69M | 588.79M | 236.03M | 243.66M | 158.34M | Operating Cash Flow |
| 626.26M | 624.69M | 588.79M | 566.38M | 552.24M | 443.10M | Investing Cash Flow |
| -491.30M | -437.02M | -163.08M | -462.45M | -331.00M | -167.25M | Financing Cash Flow |
| -445.94M | 172.12M | -428.07M | -380.41M | -293.58M | 72.71M |
Brixmor Property Technical Analysis
Positive
26.04
Price Trends
25.48
Positive
26.05
Negative
26.50
Negative
Market Momentum
0.08
Negative
55.78
Neutral
73.54
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 26.04 is above the 20-day moving average (MA) of 25.46, above the 50-day MA of 25.48, and below the 200-day MA of 26.50, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 55.78 is Neutral, neither overbought nor oversold. The STOCH value of 73.54 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.84B | 19.39 | 9.35% | 5.59% | 5.40% | -1.33% | |
77 Outperform | $8.53B | 28.20 | 9.85% | 4.70% | 6.07% | 24.23% | |
73 Outperform | $8.08B | 25.21 | 10.99% | 4.45% | 4.58% | 12.65% | |
70 Outperform | $8.10B | 41.50 | 3.54% | 4.10% | 13.75% | 5.67% | |
68 Neutral | $5.04B | 65.05 | 3.09% | 3.31% | 9.27% | 19.51% | |
65 Neutral | $5.12B | 378.25 | 0.81% | 4.51% | 4.37% | -75.82% | |
60 Neutral | $2.82B | 11.08 | 0.22% | 8543.15% | 6.09% | -16.11% |
* Real Estate Sector Average
Performance Comparison
BRX
Brixmor Property
26.04
4.80
22.60%
ADC
Agree Realty
72.92
15.07
26.05%
NNN
National Retail Properties
40.83
0.40
0.99%
KRG
Kite Realty Group
22.91
2.96
14.84%
FRT
Federal Realty
96.91
-1.38
-1.40%
PECO
Phillips Edison & Company
35.69
4.13
13.09%
Brixmor Property Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: 0.12%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong leasing activity, demand in core categories, and a robust growth pipeline, but also acknowledges challenges from recent bankruptcies and potential economic uncertainties. The company's strong balance sheet and successful reinvestment projects position it well for future growth.Q1-2025 Updates
Positive Updates
Strong Leasing Activity and Spreads
Executed 1.3 million square feet of new and renewal leases at a blended cash spread of 21%, with new leases at 48% and renewals at 14%.
Increased Demand in Core Categories
Captured a significant share of new store openings in grocery, specialty grocery, quick-serve restaurants, and value apparel retailers.
Robust Signed but Not Commenced (SNO) Pipeline
Maintained $60 million in SNO pipeline, providing visibility into growth through 2025 and into 2026.
Strong Balance Sheet Position
Reduced leverage to 5.5 times debt to EBITDA and maintained over $1.3 billion in revolver capacity and cash on hand.
Successful Reinvestment Projects
Delivered projects on time and on budget with a weighted average return of 10%.
Negative Updates
Occupancy Decline Due to Bankruptcies
Occupancy declined to 94.1% due to the recapture of Big Lots and Party City spaces, with additional pressure expected from JOANN's recapture.
Tenant Disruption Impact on Same Property NOI
Same property NOI growth of 2.8% affected by a 160 basis point drag from tenant disruptions.
Potential Tariff and Economic Uncertainty
Concerns about the impact of looming tariff uncertainties and the potential for an economic slowdown.
Company Guidance
In the first quarter of 2025, Brixmor Property Group demonstrated strong momentum with positive leasing activity and financial performance. They executed 1.3 million square feet of new and renewal leases at a blended cash spread of 21%, with new leases achieving a 48% spread and renewals at 14%. The company addressed space recaptured from bankrupt tenants, achieving over 50% spreads in re-leasing. Despite a dip in occupancy to 94.1% due to these bankruptcies, Brixmor remains confident in future growth, supported by a signed but not commenced (SNO) pipeline of $60 million, equivalent to 6% of total in-place annual base rent (ABR). Their same property net operating income (NOI) grew by 2.8%, and they affirmed guidance with a same property NOI growth of 3.5% to 4.5% and funds from operations (FFO) guidance of $2.19 to $2.24 per share. The company maintains strong liquidity with $1.3 billion in revolver capacity and cash on hand, and reduced leverage to 5.5 times debt to EBITDA.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.