Earnings

Brixmor Hits Record 95.6% Occupancy, Raises Dividend 7.3% Even As Per-Share Profit Slips

The shopping-center landlord lifted its 2026 cash-flow outlook while net income per share fell to $0.28 from $0.31.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Brixmor Hits Record 95.6% Occupancy, Raises Dividend 7.3% Even As Per-Share Profit Slips

Brixmor Property Group, which owns and operates open-air shopping centers, said Monday that total leased occupancy reached a record 95.6% in the third quarter, and it raised its quarterly dividend 7.3% and its 2026 cash-flow forecast. Net income per diluted share still slipped to $0.28 from $0.31 a year earlier.

Cash flow up, profit down

Nareit FFO, a real-estate cash-flow measure that strips out depreciation and property-sale gains, rose to $184.6 million, or $0.60 per diluted share, from $0.56 a year earlier. Same-property net operating income, which tracks rent less property costs on stores owned in both periods, grew 6.6%.

Net income attributable to Brixmor fell to $87.8 million from $94.2 million. The quarter-ago comparison included a $40.0 million gain on property sales, against $8.9 million this time. For the first nine months, net income was $0.94 per diluted share, up from $0.81.

Leasing at record levels

Anchor-tenant occupancy reached 97.0%, and small-shop occupancy hit a record 92.8%. Brixmor signed 1.6 million square feet of new and renewal leases, with rents on comparable space 25.3% higher; new leases came in 42.6% higher.

Leases signed but not yet paying rent cover 3.1 million square feet and $68.9 million of annualized base rent. "These results reinforce the strength of our operating platform," said CEO and President Brian T. Finnegan.

The company, whose 345 centers hold about 62 million square feet, counts TJX, Kroger, Publix and Ross Stores among its retailers. It added $36.7 million of reinvestment projects, and its in-process pipeline totals $331.8 million at an expected 10% average yield.

Higher payout, raised outlook

The quarterly dividend rises to $0.3300 a share, or $1.32 a year, about 4.7% annualized as of October 23. It is payable January 15, 2027, to holders of record January 5.

Brixmor now expects 2026 Nareit FFO of $2.36 to $2.38 per share, up from $2.35 to $2.37. Same-property NOI growth is seen at 5.50% to 5.75%, with the low end raised from 5.00%.

The Slate deal ahead

On September 28, Brixmor and Everview Partners agreed to buy Slate Grocery REIT in a deal valued at about $2.34 billion. Brixmor would buy 23 grocery-anchored properties for about $636 million and hold a 20% equity stake plus a roughly $174 million preferred investment in a venture buying 92 more for about $1.71 billion.

Brixmor had $1.5 billion of liquidity at September 30, excluding a commitment for up to $988.0 million of term-loan financing tied to the deal. Net debt was 5.2 times annualized adjusted EBITDA. Closing is expected in the first quarter of 2027, pending Slate unitholder approval.

Management hosts its earnings call Tuesday at 10:00 a.m. ET.

Sources

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