Brixmor Property Group Inc. Q3 FY2024 earnings call

• Regional realignment: Combined North and Midwest regions, moved Texas to South region, recognized $2.5 million one-time severance cost with annual savings to follow. • Capital recycling: $143 million of dispositions year-to-date, $64 million acquisitions in Q3, $81 million year-to-date. $250 million of value-add acquisitions under control. • Leasing: Executed 1.1 million sq ft of new and renewal leases at 22% blended cash spread, record small shop base rent $31/sq ft. Anchor and small shop occupancy at 95.6%, 97.7%, 91.1% respectively. Added grocer, apparel, fitness, etc., tenants. • Reinvestment: $36 million of new projects, including expanded Whole Foods redevelopment in Philly suburbs, opened Sprouts in Tampa at close to 3.5x prior rent. • Portfolio transformation: Strong tenant demand, low rent basis, and team strength driving performance.

NAREIT FFO was $0.52 per share in the third quarter, driven by same-property NOI growth of 4.1%. Base rent growth contribution to same-property NOI growth accelerated from 380 basis points last quarter to 520 basis points this quarter. Net expense reimbursements contributed 80 basis points. Revenues deemed uncollectible detracted 200 basis points from growth. Ended the quarter with a 370 basis point spread between leased and build occupancy. Signed but not commenced pool totaled $59 million, including $52 million of net new rent.

• Raised same-property NOI growth expectation to 4.75%-5.25%, with 450-500 basis points from base rent. • Raised 2024 NAREIT FFO guidance to $2.13-$2.15 per share. • Raised dividend to annual rate of $1.15, 5.5% increase. • Expect same-property NOI growth >4% in 2025 driven by 2024-2025 rent commencements, embedded rent growth, and renewal spreads.

• Forward-looking statements subject to risks and uncertainties as described in SEC filings. • Revenues deemed uncollectible could be a potential headwind if tenant credit strength deteriorates.

Q: Comment on investments market and equity raise rationale A: Jim Taylor said they see improving external growth outlook, with $250 million of accretive acquisitions under control. Mark Horgan noted open-air retail market is healthy, with institutional interest increasing.

Q: Signed not occupied pipeline contribution and lease commencement timing A: Brian Finnegan said not seeing tenants push out, 2025 has strong demand, signed but not commenced pool $59 million with $27 million anchor, rents well above expiring anchors.

Q: Utilization of ATM and acquisition/disposition activity A: Jim Taylor said primary funding for external growth is capital recycling, expect balanced activity with mix of dispositions and ATM issuance.

Q: Transaction market with rates rising A: Mark Horgan said market is healthy for open-air retail, slowdown due to election, expecting healthy market especially for smaller assets.

Q: Redevelopment pipeline pre-leased percentage and sustainable level A: Brian Finnegan said generally 80% pre-leased before pipeline, see $150-200 million reinvestment over next several years with $500 million underway.

Q: Same-store growth for 2025 A: Jim Taylor said expect above 4%, driven by rent commencements, reinvestment deliveries, rent steps, and occupancy gains.

Q: Bad debt impact A: Brian Finnegan said bad debt at ~60 basis points of total revenue, below historical run rate, expect to end 2024 at 50-75 basis points.

Q: Flow-through of $59 million rent commencements A: Brian Finnegan said compounding impact of SNO pipeline commencing, layering growth from signed leases, reinvestments, and rent steps.

Q: Rent on 2025 lease expirations and spreads A: Brian Finnegan said team has ability to take advantage of low rent basis, signing anchors at $16/sq ft, visibility on growth beyond 2025.

Q: Interpretation of leasing and portfolio occupancy A: Jim Taylor said business continues strong, leasing volumes moderate as portfolio nears full occupancy, but SNO pipeline and reinvestments provide visibility.

Q: Acquisition of Acton Plaza details A: Mark Horgan said acquired in competitive market, all-cash buyer leveraging Boston platform, low below-market rents and density opportunities.

Q: Build occupancy and lease to economic occupancy spread A: Jim Taylor said spread to normalize in 2026 as signed and commenced rents deliver.

Q: Markets to increase exposure and retailer demand A: Jim Taylor said focus on clustering in markets with strong retailer demand, common theme is under-rented, well-located assets.

Q: Acquisition/disposition cap rate impact A: Mark Horgan said expect slight cap rate difference, focus on holding IRRs, near-term neutral on cap rate impact.

Q: Leasing and store performance in normalized environment A: Brian Finnegan said it's both low rent basis and strong tenant performance, tenants like specialty grocers, off-price, quick-serve restaurants performing well.

Q: Capital allocation and acquisition pipeline A: Jim Taylor said equity is precious, excited about acquisition opportunities with platform strengths, seeing volume of new opportunities.

Q: Big Lots and portfolio impact A: Brian Finnegan said pleased with Big Lots box recapture, 7 boxes resolved with >50% spreads, seeing strong demand for these boxes.