Brixmor Property (BRX) AI Stock Analysis

Compare

360 Followers

BRX Dividends

Top Page

Brixmor Property

(NYSE:BRX)

72Outperform

Brixmor Property Group's stock demonstrates strong financial performance and solid earnings outlook, contributing to a healthy overall score. However, technical indicators suggest potential caution due to bearish momentum. The valuation is moderate, with a notable dividend yield providing some support. Despite tenant challenges, the company's strategic moves and robust financial health position it well in the REIT industry.

Positive Factors

Growth Potential

Brixmor has a significant pipeline of projects that could fuel future growth, including potential earnings upside and multiple expansion.

Leasing Momentum

The company benefits from a strong leasing momentum driven by retailer demand, low rents, and an experienced management team.

Valuation

Brixmor Property Group's valuation is inexpensive, making it a compelling investment opportunity.

Negative Factors

Credit Reserve Concerns

There may be concerns regarding the 75-110bps credit reserve being light compared to expectations.

Revenue Challenges

Despite some unresolved tenant issues, the company faces challenges with tenant bankruptcies affecting revenues.

Tenant Risk

Concerns about increased bad debt have previously impacted stock performance due to Brixmor's higher tenant exposure compared to peers.

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

Market Cap

$7.48B

Dividend Yield4.29%

Average Volume (3M)2.47M

Price to Earnings (P/E)21.9

Beta (1Y)0.86

Revenue Growth3.41%

EPS Growth10.54%

CountryUS

Employees453

SectorReal Estate

Sector Strength76

IndustryREIT - Retail

Share Statistics

EPS (TTM)0.27

Shares Outstanding306,040,400

10 Day Avg. Volume2,627,780

30 Day Avg. Volume2,473,298

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)6.15

Price to Cash Flow (P/CF)12.40

P/FCF Ratio417.60

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$30.39

Price Target Upside18.30% 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 robust revenue growth, high profit margins, and a solid balance sheet free from debt. The cash flow position is strong, supporting business operations and growth. The company is well-positioned in the REITs industry with a focus on efficiency and profitability. However, attention is needed on improving EBIT margins to sustain long-term growth.

Income Statement

Positive

Brixmor Property has shown a consistent increase in total revenue over the years, with a revenue growth rate of 3.21% in the most recent year. The company maintains a strong gross profit margin of 87.21% and a solid net profit margin of 26.41%. However, the decline in EBIT margin from 64.89% to 35.73% indicates potential inefficiencies or increased costs. EBITDA margin remains robust at 65.39%.

Balance Sheet

Very Positive

The company exhibits a strong equity position with no total debt in the latest period, resulting in a debt-to-equity ratio of 0. The return on equity has improved to 11.37%, reflecting effective use of equity to generate profits. The equity ratio stands at 33.49%, indicating a balanced asset structure with significant shareholder equity.

Cash Flow

Very Positive

Operating cash flow is strong at $624.69M, supporting a healthy free cash flow position. The free cash flow growth rate surged by 6.09%, showcasing improved cash generation. The operating cash flow to net income ratio is 1.84, indicating efficient cash conversion. The free cash flow to net income ratio is also favorable at 1.84.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.29B	1.25B	1.22B	1.15B	1.05B
	Gross Profit
1.12B	925.05M	906.28M	854.49M	772.64M
	EBIT
459.04M	807.92M	440.69M	421.81M	333.78M
	EBITDA
936.67M	858.10M	785.42M	748.97M	669.37M
	Net Income Common Stockholders
339.27M	305.09M	161.77M	75.48M	-73.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
397.92M	20.78M	38.16M	316.86M	388.22M
	Total Assets
8.91B	8.33B	8.44B	8.38B	8.34B
	Total Debt
5.34B	4.93B	5.45B	5.20B	5.21B
	Net Debt
4.96B	4.93B	5.43B	4.90B	4.84B
	Total Liabilities
5.92B	5.48B	5.57B	5.66B	5.66B
	Stockholders Equity
2.98B	2.85B	2.87B	2.72B	2.68B
Cash Flow		Free Cash Flow
624.69M	588.79M	236.03M	243.66M	158.34M
	Operating Cash Flow
624.69M	588.79M	566.38M	552.24M	443.10M
	Investing Cash Flow
-437.02M	-163.08M	-462.45M	-331.00M	-167.25M
	Financing Cash Flow
172.12M	-428.07M	-380.41M	-293.58M	72.71M

Brixmor Property Technical Analysis

Technical Analysis Sentiment

Positive

Last Price25.69

Price Trends

50DMA

25.93

Negative

100DMA

26.45

Negative

200DMA

26.37

Negative

Market Momentum

MACD

-0.03

Negative

RSI

53.80

Neutral

STOCH

76.90

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 25.69 is above the 20-day moving average (MA) of 25.13, below the 50-day MA of 25.93, and below the 200-day MA of 26.37, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 53.80 is Neutral, neither overbought nor oversold. The STOCH value of 76.90 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 (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NNN	78 Outperform	$7.80B	19.27	9.32%	5.61%	4.97%	-0.26%
FRT	78 Outperform	$8.15B	27.92	9.58%	4.58%	6.21%	22.32%
ADC	77 Outperform	$8.49B	44.46	3.54%	3.96%	13.75%	5.67%
BRX	72 Outperform	$7.48B	21.95	11.61%	4.29%	3.41%	10.54%
PECO	70 Outperform	$4.87B	69.14	3.09%	3.37%	9.07%	19.51%
KRG	67 Neutral	$4.81B	1,182.70	0.52%	4.72%	2.42%	-91.46%
Sector *	59 Neutral	$2.73B	11.65	0.11%	8783.19%	5.45%	-17.32%

* Real Estate Sector Average

Performance Comparison

BRX

Brixmor Property

25.78

4.98

23.94%

ADC

Agree Realty

75.67

20.35

36.79%

NNN

National Retail Properties

40.85

2.23

5.77%

KRG

Kite Realty Group

21.84

1.55

7.64%

FRT

Federal Realty

94.38

-3.64

-3.71%

PECO

Phillips Edison & Company

35.08

3.56

11.29%

Brixmor Property Earnings Call Summary

Earnings Call Date: Feb 10, 2025 | % Change Since: -0.81% | Next Earnings Date: Apr 28, 2025

Earnings Call Sentiment Positive

The earnings call highlighted a strong financial performance with significant growth in NOI and FFO, alongside successful leasing activity and strategic acquisitions. However, there were concerns about the impact of tenant bankruptcies on occupancy and potential future disruptions. Overall, the positive aspects of growth and financial strength outweigh the challenges posed by tenant disruptions.

Highlights

Strong Financial Performance

Brixmor Property Group reported a 5% growth in both NOI and FFO, with NAREIT FFO per share reaching $2.13, representing an almost 5% increase from the previous year.

High Leasing Activity

Executed 1.5 million square feet of new and renewal leases at a blended cash spread of 21%, including 830,000 square feet of new leases, marking the highest quarterly output in two years.

Robust Same Property NOI Growth

Same property NOI grew 5% for the year, with a base rent growth contributing 600 basis points to same property NOI growth in Q4.

Successful Dispositions and Acquisitions

Completed $212 million of dispositions and $290 million of value-add acquisitions, including assets in core markets like Hartford, Tampa, and Boston.

Improved Balance Sheet

Credit rating upgraded to BAA2 by Moody's, with no debt maturities until June 2026 and total liquidity of $1.6 billion.

Record Occupancy Levels

Anchor occupancy reached 97.2% with a record 81% of ABR derived from grocery-anchored centers.

Lowlights

Impact of Bankruptcy Activity

Bankruptcy activity impacted occupancy by 70 basis points for the year, with specific challenges from tenants like Big Lots and Party City.

Short-term Occupancy Challenges

Overall occupancy grew 50 basis points year over year to 95.2%, but faced a 70 basis point impact from bankruptcy activity.

Tenant Disruption Concerns

Guidance for same property NOI growth includes a 200 basis point drag at the midpoint due to tenant disruptions, with potential for further lease rejections.

Company Guidance

During Brixmor Property Group Inc.'s fourth quarter 2024 earnings call, key financial metrics were highlighted, showcasing the company's solid performance and future outlook. The company reported a 5% year-over-year growth in both net operating income (NOI) and funds from operations (FFO), with FFO per share reaching $2.13 for the year. Same property NOI grew by 5%, contributing to a fourth-quarter FFO of $0.53 per share. Leasing activity was robust, with $118 million in new and renewal lease average base rent (ABR) signed during the year, including $32 million in the fourth quarter, and overall occupancy increased to 95.2%. Small shop occupancy reached record levels, and grocery-anchored centers accounted for 81% of ABR, reflecting strong tenant demand. The company's redevelopment efforts yielded $205 million of reinvestment at an average incremental return of 9%, with a future pipeline nearing $400 million at a 10% return. Looking ahead, Brixmor anticipates 2025 same property NOI growth between 3.5% and 4.5%, despite anticipated tenant disruptions. The company maintains strong liquidity with $1.6 billion available and a debt-to-EBITDA ratio of 5.7 times, positioning it well for continued growth and value creation.

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.