Brixmor Property Group Inc.
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Item 1. Business
Brixmor Property Group Inc. and subsidiaries (collectively, "BPG") is an internally-managed corporation that has elected to be taxed as a real estate investment trust ("REIT"). Brixmor Operating Partnership LP and subsidiaries (collectively, the "Operating Partnership") is the entity through which BPG conducts substantially all of its operations and owns substantially all of its assets. BPG owns 100% of the limited liability company interests of BPG Subsidiary LLC ("BPG Sub"), which, in turn, is the sole member of Brixmor OP GP LLC (the "General Partner"), the sole general partner of the Operating Partnership. Unless stated otherwise or the context otherwise requires, "we," "our," and "us" mean BPG and the Operating Partnership, collectively. We own and operate one of the largest publicly traded open-air retail portfolios by gross leasable area ("GLA") in the United States ("U.S."), comprised primarily of grocery-anchored community and neighborhood shopping centers. As of December 31, 2025, our portfolio was comprised of 348 shopping centers (the "Portfolio") totaling approximately 63 million square feet of GLA. Our high-quality national Portfolio is primarily located within established trade areas in the top 50 Core-Based Statistical Areas ("CBSAs") in the U.S., and our shopping centers are primarily anchored by non-discretionary and value-oriented retailers, as well as consumer-oriented service providers. As of December 31, 2025, our three largest tenants by annualized base rent ("ABR") were The TJX Companies, Inc., The Kroger Co., and Burlington Stores, Inc. In the opinion of our management, no material part of our business is dependent upon a single tenant, the loss of which would have a material adverse effect on us, and no single tenant or shopping center accounted for 5% or more of our consolidated revenues during 2025.
As of December 31, 2025, BPG beneficially owned, through its direct and indirect interest in BPG Sub and the General Partner, 100% of the outstanding partnership common units (the "OP Units") in the Operating Partnership. The number of OP Units in the Operating Partnership beneficially owned by BPG is equivalent to the number of outstanding shares of BPG’s common stock, and the entitlement of all OP Units to quarterly distributions and payments in liquidation is substantially the same as those of BPG’s common stockholders. BPG’s common stock is publicly traded on the New York Stock Exchange ("NYSE") under the ticker symbol "BRX."
Management operates BPG and the Operating Partnership as one business. Because the Operating Partnership is managed by BPG, and BPG conducts substantially all of its operations through the Operating Partnership, BPG’s executive officers are the Operating Partnership’s executive officers, and although, as a partnership, the Operating Partnership does not have a board of directors, we refer to BPG’s board of directors as the Operating Partnership’s board of directors.
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Our Shopping Centers
The following table provides summary information regarding our Portfolio as of December 31, 2025:
| Number of Shopping Centers | 348 | ||||
GLA (square feet)(1) | 62.7 million | ||||
Percent Billed(2) | 91.6% | ||||
Percent Leased(3) | 95.1% | ||||
ABR Per Square Foot ("PSF")(4) | $18.77 | ||||
New Lease Volume (square feet)(5) | 3.0 million | ||||
New and Renewal Lease Volume (square feet)(5) | 6.0 million | ||||
New, Renewal and Option Lease Volume (square feet)(5) | 9.5 million | ||||
New Rent Spread(5)(6) | 38.7% | ||||
New and Renewal Rent Spread(5)(6) | 21.7% | ||||
New, Renewal and Option Rent Spread(5)(6) | 16.4% | ||||
| Percent of ABR Derived from Grocery-Anchored Shopping Centers | 81% | ||||
| Percent of ABR in Top 50 U.S. CBSAs | 72% |
(1) GLA represents the total amount of leasable property square footage.
(2) Billed GLA as a percentage of total GLA. Billed GLA represents the aggregate GLA of all commenced leases with an initial term of one year or greater, as of a specified date.
(3) Leased GLA as a percentage of total GLA. Leased GLA represents the aggregate GLA of all signed or commenced leases with an initial term of one year or greater, as of a specified date, excluding all signed leases on space that will be vacated by existing tenants in the near term.
(4) ABR PSF is calculated as ABR divided by leased GLA, excluding the GLA of lessee-owned leasehold improvements. For purposes of calculating ABR, all signed or commenced leases with an initial term of one year or greater are included and all signed leases on space that will be vacated by existing tenants in the near term are excluded. ABR represents contractual monthly base rent as of a specified date, under leases that have been signed or commenced as of the specified date, multiplied by 12.
(5) During the year ended December 31, 2025.
(6) Represents the percentage change in contractual ABR PSF in the first year of the new lease relative to contractual ABR PSF in the last year of the old lease. For purposes of calculating rent spreads, ABR PSF includes the GLA of lessee-owned leasehold improvements. Based on comparable leases only, which consist of new leases signed on units that were occupied within the prior 12 months, renewal leases signed with the same tenant in all or a portion of the same location or that include the expansion into space that was occupied within the prior 12 months, and contractual renewal options exercised by tenants in the same location to extend the term of an expiring lease. New leases signed on units that have been vacant for longer than 12 months, new leases signed on first generation space, and new leases that are ancillary in nature regardless of term are deemed non-comparable and excluded from rent spreads. Renewals that include the expansion of an existing tenant into space that has been vacant for longer than 12 months and renewals that are ancillary in nature regardless of term are deemed non-comparable and excluded from rent spreads.
Business Objectives and Strategies
Our primary objective is to maximize total returns to our stockholders through consistent, sustainable growth in cash flow. Our key strategies to achieve this objective include proactively managing our Portfolio to drive internal growth, pursuing value-enhancing reinvestment opportunities, and prudently executing on acquisition and disposition activity, while also maintaining a flexible capital structure positioned for growth. In addition, as we execute on our key strategies, we do so guided by our Corporate Responsibility ("CR") strategy.
Driving Internal Growth. Our primary drivers of internal growth include (i) embedded contractual rent escalations, (ii) below-market rents that may be reset to market as leases expire, (iii) occupancy growth, and (iv) prudent expense management, including proactively navigating inflationary pressure. Ongoing strong new leasing productivity, with a key focus on thoughtful merchandising and our rigorous underwriting processes, have also enabled us to consistently improve the credit of our tenancy and the vibrancy and relevancy of our Portfolio to retailers and consumers. During 2025, we executed 512 new leases representing approximately 3.0 million square feet and 1,453 total leases, including new leases, renewals, and options, representing approximately 9.5 million square feet.
We believe that rents across our Portfolio are below market, which provides us with a key competitive advantage in attracting and retaining tenants. During 2025, we achieved rent spreads on new leases of 38.7% and blended rent spreads on new and renewal leases of 21.7% excluding options or 16.4% including options. Looking forward, the weighted average expiring ABR PSF of anchor lease expirations through 2028, assuming no remaining renewal options are exercised, is $11.37 compared to a weighted average ABR PSF of $17.84 for new anchor leases signed during 2025.
Our high-quality, nationally diversified Portfolio of community and neighborhood shopping centers continues to benefit from robust, broad-based leasing demand for physical locations. We believe there is opportunity for
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occupancy gains in our Portfolio, particularly for spaces less than 10,000 square feet, as such spaces will continue to benefit from our value-enhancing reinvestment initiatives. As of December 31, 2025, leased occupancy was 92.2% for spaces less than 10,000 square feet, while our total leased occupancy was 95.1%. The spread between our total leased occupancy and our total billed occupancy was 350 basis points and our total signed but not yet commenced lease population, which includes 90 basis points of GLA related to space that will be vacated by existing tenants in the near term, represented 2.7 million square feet and $62.3 million of ABR, providing strong visibility on our future growth.
Pursuing value-enhancing reinvestment opportunities. We believe that we have significant opportunities to realize attractive risk-adjusted returns by investing capital in the repositioning and/or redevelopment of certain assets in our Portfolio. Such initiatives are tenant driven and focus on upgrading our centers with strong, best-in-class retailers. During 2025, we stabilized 27 anchor space repositioning, outparcel development, and redevelopment projects, with a weighted average incremental net operating income ("NOI") yield of 10% and an aggregate cost of $183.3 million. As of December 31, 2025, we had 33 projects in process with an expected weighted average incremental NOI yield of 10% and an aggregate anticipated cost of $336.4 million. In addition, we have identified a pipeline of future reinvestment projects, which we expect to execute over the next several years at NOI yields that are generally consistent with those that we have recently realized.
Prudently executing on acquisition and disposition activity. We actively pursue acquisition and disposition opportunities in order to further concentrate our Portfolio in attractive retail submarkets and optimize the quality and long-term growth rate of our asset base. In general, our acquisition strategy focuses on buying assets with strong growth potential that are located in our existing markets and will allow us to leverage our operational platform and expertise to create value, while our disposition strategy focuses on selling assets when we believe value has been maximized, where there may be future downside risk, or where we have limited ability or desire to build critical mass in a particular submarket. Our acquisition activity may include acquisitions of open-air shopping centers and non-owned anchor spaces or outparcels at, or adjacent to, our shopping centers and the timing of acquisition and disposition activity is often dependent on the transactions and capital markets environments.
During 2025, we acquired $420.6 million of assets, including transaction costs and closing credits, and generated aggregate net proceeds of $289.2 million from property dispositions. Acquisitions were funded through a combination of net proceeds from property dispositions and available cash. Proceeds from dispositions were used primarily to fund acquisitions and our value-enhancing reinvestment opportunities and other corporate purposes.
Maintaining a Flexible Capital Structure Positioned for Growth. We believe our capital structure provides us with the financial and operational flexibility and capacity to fund our current capital needs, as well as future growth opportunities. We have access to multiple forms of capital, including secured property level debt, potential joint ventures, unsecured corporate level debt, preferred equity, and common equity, which will allow us to efficiently execute on our strategic and operational objectives. We have investment grade credit ratings from all three major credit rating agencies.
During 2025, we amended and restated our unsecured credit facility (the "Unsecured Credit Facility"), which is comprised of a $1.25 billion revolving credit facility (the "Revolving Facility") and a $500.0 million term loan (the "Term Loan Facility"). The Unsecured Credit Facility amendment extended the maturities of the Revolving Facility and Term Loan Facility to April 2029 and April 2030, respectively, while also improving pricing and adding the ability to obtain more favorable pricing in certain circumstances when our leverage ratio meets defined targets. We also renewed our $400.0 million share repurchase program and our $400.0 million at-the-market equity offering program, which together with well-staggered scheduled debt maturities, provide us with maximum flexibility to capitalize on a wide range of potential capital markets environments and support the long-term execution of our balanced business plan.
During 2025, we issued $400.0 million aggregate principal amount of 5.200% Senior Notes due 2032 and $400.0 million aggregate principal amount of 4.850% Senior Notes due 2033. We have used or intend to use the net proceeds for general corporate purposes, including the repayment of indebtedness. In addition, we repaid $632.3 million principal amount of our outstanding 3.850% Senior Notes due 2025 (the "2025 Notes"), representing all of the outstanding 2025 Notes. We funded the 2025 Notes repayment with available cash, proceeds from the Revolving Credit Facility, and net proceeds from dispositions. As of December 31, 2025, we had $1.61 billion of
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available liquidity, including $1.25 billion under our Revolving Facility and $361.5 million of cash and cash equivalents and restricted cash. We have $607.5 million of debt maturities in 2026.
Operating in a Socially Responsible Manner. We believe that operating in a socially responsible manner is critical to delivering consistent, sustainable growth. As such, our CR strategy is integrated throughout our organization and is focused on creating partnerships that improve the social, economic, and environmental well-being of all our stakeholders including our communities, employees, tenants, suppliers and vendors, and investors. Our strong commitment to CR directly aligns with our core values and our vision to be the center of the communities we serve.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and the accompanying notes thereto. Historical results and percentage relationships set forth in the unaudited Condensed Consolidated Financial Statements and accompanying notes, including trends which might appear, should not be taken as indicative of future operations.
Executive Summary
Our Company
Brixmor Property Group Inc. and subsidiaries (collectively, "BPG") is an internally-managed corporation that has elected to be taxed as a real estate investment trust ("REIT"). Brixmor Operating Partnership LP and subsidiaries (collectively, the "Operating Partnership") is the entity through which BPG conducts substantially all of its operations and owns substantially all of its assets. BPG owns 100% of the limited liability company interests of BPG Subsidiary LLC ("BPG Sub"), which, in turn, is the sole member of Brixmor OP GP LLC (the "General Partner"), the sole general partner of the Operating Partnership. Unless stated otherwise or the context otherwise requires, "we," "our," and "us" mean BPG and the Operating Partnership, collectively. We own and operate one of the largest publicly traded open-air retail portfolios by gross leasable area ("GLA") in the United States ("U.S."), comprised primarily of grocery-anchored community and neighborhood shopping centers. As of March 31, 2026, our portfolio was comprised of 344 shopping centers (the "Portfolio") totaling approximately 62 million square feet of GLA. Our high-quality national Portfolio is primarily located within established trade areas in the top 50 Core-Based Statistical Areas in the U.S., and our shopping centers are primarily anchored by non-discretionary and value-oriented retailers, as well as consumer-oriented service providers. As of March 31, 2026, our three largest tenants by annualized base rent ("ABR") were The TJX Companies, Inc. ("TJX"), The Kroger Co. ("Kroger"), and Burlington Stores, Inc. ("Burlington"). BPG has been organized and operated in conformity with the requirements for qualification and taxation as a REIT under U.S. federal income tax laws, commencing with our taxable year ended December 31, 2011, has maintained such requirements through our taxable year ended December 31, 2025, and intends to satisfy such requirements for subsequent taxable years.
Our primary objective is to maximize total returns to our stockholders through consistent, sustainable growth in cash flow. Our key strategies to achieve this objective include proactively managing our Portfolio to drive internal growth, pursuing value-enhancing reinvestment opportunities, and prudently executing on acquisition and disposition activity, while also maintaining a flexible capital structure positioned for growth. In addition, as we execute on our key strategies, we do so guided by our Corporate Responsibility strategy.
We believe the following set of competitive advantages positions us to successfully execute on our key strategies:
•Expansive Retailer Relationships – We believe that the scale of our asset base and our nationwide footprint represent competitive advantages in supporting the growth objectives of the nation’s largest and most successful retailers. We believe that we are one of the largest landlords by GLA to TJX, Kroger, and Burlington, as well as a key landlord to most major grocers and retail category leaders. We believe that our strong relationships with leading retailers afford us unique insight into their strategies and priority access to their expansion plans.
•Fully-Integrated Operating Platform – We manage a fully-integrated operating platform, leveraging our national scope and demonstrating our commitment to operating with a strong regional and local presence. We provide our tenants with dedicated service through both our national accounts leasing team based in New York and our network of three regional offices in Atlanta, Philadelphia, and San Diego, as well as our 10 leasing and property management satellite offices throughout the country. We believe that this structure enables us to obtain critical national market intelligence, while also benefiting from the regional and local expertise of our leasing and operations teams.
•Experienced Management – Senior members of our management team are seasoned real estate operators with extensive public company leadership experience. Our management team has deep industry knowledge and well-established relationships with retailers, brokers, and vendors through many years of operational and transactional experience, as well as significant capital markets capabilities and expertise in executing value-enhancing reinvestment opportunities.
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Factors That May Influence Our Future Results
We derive our rental income primarily from base rent and expense reimbursements paid by tenants to us under existing leases at each of our properties. Expense reimbursements primarily consist of payments made by tenants to us for a portion of property operating expenses, such as common area expenses, utilities, insurance, and real estate taxes, and certain capital expenditures related to the maintenance of our properties.
Our ability to maintain or increase rental income is primarily dependent on our ability to maintain or increase rental rates, renew expiring leases, and/or lease available space. Increases in our property operating expenses, including repairs and maintenance, landscaping, snow removal, security, ground rent related to properties for which we are the lessee, utilities, insurance, real estate taxes, and various other costs, to the extent they are not reimbursed by tenants or offset by increases in rental income, will adversely impact our overall performance.
See "Forward-Looking Statements" included elsewhere in this Quarterly Report on Form 10-Q for the factors that could affect our rental income and/or property operating expenses.
Leasing Highlights
As of March 31, 2026, billed and leased occupancy were 91.4% and 95.1%, respectively, as compared to 90.0% and 94.1%, respectively, as of March 31, 2025.
The following table summarizes our executed leasing activity for the three months ended March 31, 2026 and 2025 (dollars in thousands, except for per square foot ("PSF") amounts):
| For the Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||||||||||
| Leases | GLA | New ABR PSF(2) | Tenant Improvements and Allowances PSF | Third Party Leasing Commissions PSF | Rent Spread(1) | ||||||||||||||||||||||||||||||
| New, renewal and option leases | 285 | 1,994,943 | $ | 20.92 | $ | 4.12 | $ | 2.86 | 19.0 | % | |||||||||||||||||||||||||
| New and renewal leases | 233 | 1,271,112 | 23.47 | 6.46 | 4.49 | 27.0 | % | ||||||||||||||||||||||||||||
| New leases | 108 | 672,792 | 23.67 | 11.36 | 8.43 | 41.8 | % | ||||||||||||||||||||||||||||
| Renewal leases | 125 | 598,320 | 23.25 | 0.96 | 0.06 | 21.3 | % | ||||||||||||||||||||||||||||
| Option leases | 52 | 723,831 | 16.45 | — | — | 8.2 | % | ||||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||
| Leases | GLA | New ABR PSF(2) | Tenant Improvements and Allowances PSF | Third Party Leasing Commissions PSF | Rent Spread(1) | ||||||||||||||||||||||||||||||
| New, renewal and option leases | 334 | 2,247,394 | $ | 18.96 | $ | 2.42 | $ | 1.71 | 15.0 | % | |||||||||||||||||||||||||
| New and renewal leases | 269 | 1,294,992 | 22.31 | 4.20 | 2.97 | 20.5 | % | ||||||||||||||||||||||||||||
| New leases | 104 | 535,386 | 22.75 | 9.63 | 7.16 | 47.5 | % | ||||||||||||||||||||||||||||
| Renewal leases | 165 | 759,606 | 22.00 | 0.38 | 0.02 | 14.0 | % | ||||||||||||||||||||||||||||
| Option leases | 65 | 952,402 | 14.41 | — | — | 7.1 | % | ||||||||||||||||||||||||||||
(1) Based on comparable leases only, which consist of new leases signed on units that were occupied within the prior 12 months and renewal or option leases signed with the same tenant in all or a portion of the same location or that include the expansion into space that was occupied within the prior 12 months.
Excludes leases executed for terms of less than one year.
ABR PSF includes the GLA of lessee-owned leasehold improvements.
Acquisition Activity
•During the three months ended March 31, 2026, we did not acquire any assets.
•During the three months ended March 31, 2025, we acquired one land parcel for an aggregate purchase price of $3.1 million, including transaction costs and closing credits.
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Disposition Activity
•During the three months ended March 31, 2026, we disposed of four shopping centers for aggregate net proceeds of $105.7 million, resulting in aggregate gain of $52.1 million.
•During the three months ended March 31, 2025, we disposed of two shopping centers and two partial shopping centers for aggregate net proceeds of $21.6 million, resulting in aggregate gain of $3.1 million.
Results of Operations
The results of operations discussion is combined for BPG and the Operating Partnership because there are no material differences in the results of operations between the two reporting entities.
Comparison of the Three Months Ended March 31, 2026 to the Three Months Ended March 31, 2025
Revenues (in thousands)
| Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | $ Change | ||||||||||||||
| Revenues | ||||||||||||||||
| Rental income | $ | 354,337 | $ | 337,241 | $ | 17,096 | ||||||||||
| Other revenues | 482 | 271 | 211 | |||||||||||||
| Total revenues | $ | 354,819 | $ | 337,512 | $ | 17,307 | ||||||||||
Rental income
The increase in rental income for the three months ended March 31, 2026 of $17.1 million, as compared to the corresponding period in 2025, was due to a $15.6 million increase for assets owned for the full period, in addition to a $1.5 million increase due to net transaction activity. The increase for assets owned for the full period was due to: (i) a $9.3 million increase in base rent; (ii) a $3.3 million increase in expense reimbursements; (iii) a $2.5 million increase in ancillary and other rental income; (iv) a $1.0 million increase in percentage rents; (v) a $0.8 million increase in rental income associated with revenues deemed uncollectible; and (vi) a $0.6 million increase in accretion of below-market leases, net of amortization of above-market leases and tenant inducements; partially offset by (vii) a $1.7 million decrease in lease termination fees; and (viii) a $0.2 million decrease in straight-line rental income, net. The $9.3 million increase in base rent for assets owned for the full period was primarily due to contractual rent increases, positive rent spreads for new and renewal leases and option exercises of 19.0% during the three months ended March 31, 2026 and 16.4% during the year ended December 31, 2025, and an increase in weighted average billed occupancy.
Other revenues
Other revenues remained generally consistent for the three months ended March 31, 2026, as compared to the corresponding period in 2025.
Operating Expenses (in thousands)
| Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | $ Change | ||||||||||||||
| Operating expenses | ||||||||||||||||
| Operating costs | $ | 41,914 | $ | 39,211 | $ | 2,703 | ||||||||||
| Real estate taxes | 45,403 | 44,893 | 510 | |||||||||||||
| Depreciation and amortization | 105,202 | 105,597 | (395) | |||||||||||||
| General and administrative | 28,192 | 28,173 | 19 | |||||||||||||
| Total operating expenses | $ | 220,711 | $ | 217,874 | $ | 2,837 | ||||||||||
Operating costs
The increase in operating costs for the three months ended March 31, 2026 of $2.7 million, as compared to the corresponding period in 2025, was due to a $2.2 million increase in operating costs for assets owned for the full period in addition to a $0.5 million increase due to net transaction activity. The $2.2 million increase for assets owned for the full period was primarily due to an increase in utilities, repairs and maintenance, and insurance.
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Real estate taxes
The increase in real estate taxes for the three months ended March 31, 2026 of $0.5 million, as compared to the corresponding period in 2025, was due to a $0.3 million increase in real estate taxes for assets owned for the full period in addition to a $0.2 million increase due to net transaction activity. The $0.3 million increase for the assets owned for the full period was primarily due to an increase in current year assessments, partially offset by a decrease in unfavorable adjustments related to prior year assessments.
Depreciation and amortization
The decrease in depreciation and amortization for the three months ended March 31, 2026 of $0.4 million, as compared to the corresponding period in 2025, was due to a $6.1 million decrease for assets owned for the full period, partially offset by a $5.7 million increase due to net transaction activity. The $6.1 million decrease for assets owned for the full period was primarily due to a decrease in accelerated depreciation and amortization due to higher tenant move outs in the prior period, partially offset by an increase from capital expenditures.
General and administrative
General and administrative costs remained generally consistent for the three months ended March 31, 2026, as compared to the corresponding period in 2025.
During the three months ended March 31, 2026 and 2025, construction compensation costs of $4.0 million and $4.5 million, respectively, were capitalized to building and improvements and leasing legal costs of $0.4 million and $0.3 million, respectively, and leasing commission costs of $2.2 million and $1.8 million, respectively, were capitalized to deferred charges and prepaid expenses, net.
Other Income and Expenses (in thousands)
| Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | $ Change | ||||||||||||||
| Other income (expense) | ||||||||||||||||
| Dividends and interest | $ | 3,205 | $ | 1,706 | $ | 1,499 | ||||||||||
| Interest expense | (59,392) | (54,084) | (5,308) | |||||||||||||
| Gain on sale of real estate assets | 52,097 | 3,070 | 49,027 | |||||||||||||
| Other | (2,261) | (593) | (1,668) | |||||||||||||
| Total other expense | $ | (6,351) | $ | (49,901) | $ | 43,550 | ||||||||||
Dividends and interest
The increase in dividends and interest for the three months ended March 31, 2026 of $1.5 million, as compared to the corresponding period in 2025, was primarily due to an increase in interest income associated with higher average cash and cash equivalent balances partially offset by a lower weighted average interest rate return.
Interest expense
The increase in interest expense for the three months ended March 31, 2026 of $5.3 million, as compared to the corresponding period in 2025, was primarily due to higher weighted average debt obligations and weighted average interest rate.
Gain on sale of real estate assets
During the three months ended March 31, 2026, four shopping centers were disposed of, resulting in aggregate gain of $52.1 million. During the three months ended March 31, 2025, two shopping centers and two partial shopping centers were disposed of, resulting in aggregate gain of $3.1 million.
Other
The increase in other expense for the three months ended March 31, 2026 of $1.7 million, as compared to the corresponding period in 2025, was primarily due to an increase in anticipated environmental remediation costs.
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Liquidity and Capital Resources
We anticipate that our cash flows from the sources listed below will provide adequate capital for the next 12 months and beyond for all anticipated uses, including all scheduled payments on our outstanding debt, current and anticipated tenant and other capital improvements, stockholder distributions to maintain our qualification as a REIT, and other obligations associated with conducting our business.
Our primary expected sources and uses of capital are as follows:
Sources
•cash and cash equivalent balances;
•operating cash flow;
•available borrowings under the Unsecured Credit Facility (defined hereafter);
•issuance of long-term debt;
•dispositions; and
•issuance of equity securities, including any settlement of forward sale contracts.
Uses
•debt repayments;
•maintenance capital expenditures;
•leasing capital expenditures;
•dividend/distribution payments;
•value-enhancing reinvestment capital expenditures;
•acquisitions; and
•repurchases of equity securities.
We believe our capital structure provides us with the financial flexibility and capacity to fund our current capital needs as well as future growth opportunities. We generate significant operating cash flow and have access to multiple forms of external capital, including secured property level debt, unsecured corporate level debt, preferred equity, and common equity, which will allow us to efficiently execute on our strategic and operational objectives. We have investment grade credit ratings from all three major credit rating agencies. Our Unsecured Credit Facility is comprised of a $1.25 billion revolving loan facility (the "Revolving Facility") and a $500.0 million term loan facility (the "Term Loan Facility"). As of March 31, 2026, we had $1.79 billion of available liquidity, including $1.25 billion available under our Revolving Facility, $424.6 million of cash, cash equivalents and restricted cash, and $115.1 million anticipated net proceeds available under unsettled forward equity contracts. We intend to continue to enhance our financial and operational flexibility through periodic extensions of the duration of our debt.
Material Cash Requirements
Our expected material cash requirements for the twelve months ended March 31, 2027 and thereafter are comprised of (i) contractually obligated expenditures; (ii) other essential expenditures; and (iii) opportunistic expenditures.
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Contractually Obligated Expenditures
The following table summarizes our debt maturities (excluding extension options), interest payment obligations, and obligations under non-cancelable operating leases (excluding renewal options), as of March 31, 2026 (dollars in millions):
| Contractually Obligated Expenditures | Twelve Months Ended March 31, 2027 | Thereafter | ||||||||||
Debt maturities (1) | $ | 1,007.5 | $ | 4,510.9 | ||||||||
Interest payments (1)(2) | 221.3 | 899.1 | ||||||||||
| Operating leases | 6.0 | 121.3 | ||||||||||
| Total | $ | 1,234.8 | $ | 5,531.3 | ||||||||
(1) Amounts presented do not assume the issuance of new debt upon maturity of existing debt.
(2) Scheduled interest payments for variable rate loans are presented using rates (including the impact of interest rate swaps), as of March 31, 2026. See Item 7A. "Quantitative and Qualitative Disclosures about Market Risk" in our Annual Report on Form 10-K for the year ended December 31, 2025 for a further discussion of these and other factors that could impact interest payments.
Other Essential Expenditures
We incur certain essential expenditures in the ordinary course of business, such as common area expenses, utilities, insurance, real estate taxes, capital expenditures related to the maintenance of our properties, leasing capital expenditures, and corporate level expenses. The amount of common area expenses, utilities, and capital expenditures related to the maintenance of our properties that we incur depends on the scope of services that we provide, prevailing market rates, and the size and composition of our Portfolio. We carry comprehensive insurance to protect our Portfolio against various losses. The amount of insurance expense that we incur depends on the assessed values of our properties, prevailing market rates, and the size and composition of our Portfolio. We incur real estate taxes in the various jurisdictions in which we operate. The amount of real estate taxes that we incur depends on the assessed values of our properties, the tax rates assessed by various jurisdictions, and the size and composition of our Portfolio. Leasing capital expenditures represent tenant specific costs incurred to lease or renew space, including tenant improvements, tenant allowances, and external leasing commissions. The amount of leasing capital expenditures that we incur depends on the volume and nature of leasing activity. We incur corporate level expenses such as employee compensation costs, professional fees, corporate office rents, and other platform expenses. The amount of corporate level expenses that we incur depends on the size and composition of our Portfolio and platform and prevailing market wages and rates. Leases typically provide for the reimbursement of property operating expenses such as common area expenses, utilities, insurance, and real estate taxes, and certain capital expenditures related to the maintenance of our properties. However, costs that we incur generally do not decrease if revenue or occupancy decrease, and certain costs that we incur, such as corporate level expenses, are not typically reimbursed.
In order to continue to qualify as a REIT for federal income tax purposes, we must meet several organizational and operational requirements, including a requirement that we annually distribute to our stockholders at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains. We intend to continue to satisfy these requirements and maintain our REIT status. Our board of directors evaluates our dividend on a quarterly basis, taking into account a variety of relevant factors, including REIT taxable income. The following table summarizes our dividend activity for the first and second quarters of 2026:
| First Quarter 2026 | Second Quarter 2026 | |||||||||
| Dividend declared per common share | $ | 0.3075 | $ | 0.3075 | ||||||
| Dividend declaration date | February 4, 2026 | April 22, 2026 | ||||||||
| Dividend record date | April 2, 2026 | July 2, 2026 | ||||||||
| Dividend payable date | April 15, 2026 | July 15, 2026 | ||||||||
Opportunistic Expenditures
We also utilize cash for opportunistic expenditures such as value-enhancing reinvestment and acquisition activity.
The amount of value-enhancing reinvestment capital expenditures that we incur depends on a variety of factors that
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may change from period to period, such as the number, total expected cost, and nature of value-enhancing reinvestment projects that are underway. See "Improvements to and investments in real estate assets" below for further information regarding our in-process reinvestment projects and our pipeline of future redevelopment projects.
The amount of future acquisition expenditures depends on the availability of opportunities that further concentrate our Portfolio in attractive retail submarkets and optimize the quality and long-term growth rate of our asset base. Our acquisition strategy focuses on buying assets with strong growth potential that are located in our existing markets and will allow us to leverage our operational platform and expertise to create value. Our acquisition activity may include acquisitions of open-air shopping centers or non-owned anchor spaces, retail buildings, and/or outparcels at, or adjacent to, our existing shopping centers.
Our cash flow activities are summarized as follows (dollars in thousands):
Brixmor Property Group Inc.
| Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | $ Change | ||||||||||||||
| Net cash provided by operating activities | $ | 141,184 | $ | 130,088 | $ | 11,096 | ||||||||||
| Net cash provided by (used in) investing activities | 35,387 | (63,459) | 98,846 | |||||||||||||
| Net cash used in financing activities | (113,534) | (337,893) | 224,359 | |||||||||||||
| Net change in cash, cash equivalents and restricted cash | 63,037 | (271,264) | 334,301 | |||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 361,530 | 378,692 | (17,162) | |||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 424,567 | $ | 107,428 | $ | 317,139 | ||||||||||
Brixmor Operating Partnership LP
| Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | $ Change | ||||||||||||||
| Net cash provided by operating activities | $ | 141,184 | $ | 130,088 | $ | 11,096 | ||||||||||
| Net cash provided by (used in) investing activities | 35,387 | (63,459) | 98,846 | |||||||||||||
| Net cash used in financing activities | (113,533) | (338,317) | 224,784 | |||||||||||||
| Net change in cash, cash equivalents and restricted cash | 63,038 | (271,688) | 334,726 | |||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 360,996 | 378,032 | (17,036) | |||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 424,034 | $ | 106,344 | $ | 317,690 | ||||||||||
Operating Activities
Net cash provided by operating activities primarily consists of cash inflows from tenant rental payments and expense reimbursements and cash outflows for property operating costs, real estate taxes, general and administrative expenses, and interest expense.
During the three months ended March 31, 2026, our net cash provided by operating activities increased $11.1 million as compared to the corresponding period in 2025. The increase was primarily due to (i) an increase in same property net operating income; (ii) a decrease in cash outflows for interest expense; and (iii) an increase in cash inflows for dividends and interest income; partially offset by (iv) a decrease in cash from net working capital; (v) a decrease in lease termination fees; (vi) an increase in cash outflows for G&A expense; and (vii) a decrease in net operating income due to net transaction activity and other non-same property net operating income.
Investing Activities
Net cash provided by (used in) investing activities is primarily impacted by the nature, timing, and magnitude of acquisition and disposition activity and improvements to and investments in our shopping centers, including capital expenditures associated with our value-enhancing reinvestment activity.
During the three months ended March 31, 2026, our net cash provided by (used in) investing activities increased $98.8 million as compared to the corresponding period in 2025. The increase was primarily due to (i) an increase of $84.0 million in net proceeds from sales of real estate assets; (ii) a decrease of $11.5 million in improvements to and investments in real estate assets; (iii) a decrease of $3.1 million in acquisitions of real estate assets; and (iv) a
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decrease of $0.2 million in purchases of marketable securities, net of sales.
Improvements to and investments in real estate assets
During the three months ended March 31, 2026 and 2025, we expended $71.0 million and $82.5 million, respectively, on improvements to and investments in real estate assets. Included in these amounts are insurance proceeds of $0.5 million and $0.6 million, respectively, which were received during the three months ended March 31, 2026 and 2025.
Maintenance capital expenditures represent costs to fund major replacements and betterments to our properties. Leasing related capital expenditures represent tenant specific costs incurred to lease or renew space, including tenant improvements, tenant allowances, and external leasing commissions. In addition, we evaluate our Portfolio on an ongoing basis to identify value-enhancing reinvestment opportunities. Such initiatives are tenant driven and focus on upgrading our centers with strong, best-in-class retailers. As of March 31, 2026, we had 39 in-process anchor space repositioning, redevelopment, and outparcel development projects with an aggregate anticipated cost of $302.4 million, of which $110.1 million had been incurred as of March 31, 2026. In addition, we have identified a pipeline of future redevelopment projects, which we expect to execute over the coming years. We expect to fund these projects with cash and cash equivalents, net cash provided by operating activities, proceeds from sales of real estate assets, and/or proceeds from capital markets transactions.
Acquisitions of and proceeds from sales of real estate assets
We continue to evaluate the market for acquisition opportunities, and we may acquire individual shopping centers or portfolios of shopping centers when we believe strategic opportunities exist, to further concentrate our Portfolio in attractive retail submarkets and optimize the quality and long-term growth rate of our asset base. During the three months ended March 31, 2026, we did not acquire any assets. During the three months ended March 31, 2025, we acquired one land parcel for an aggregate purchase price of $3.1 million, including transaction costs and closing credits.
We may also dispose of properties when we believe value has been maximized, where there is downside risk, or where we have limited ability or desire to build critical mass in a particular submarket. During the three months ended March 31, 2026, we disposed of four shopping centers for aggregate net proceeds of $105.7 million. During the three months ended March 31, 2025, we disposed of two shopping centers and two partial shopping centers for aggregate net proceeds of $21.6 million.
Financing Activities
Net cash used in financing activities is primarily impacted by the nature, timing, and magnitude of issuances and repurchases of debt and equity securities, as well as borrowings or principal payments associated with our outstanding indebtedness, including our Unsecured Credit Facility, and distributions made to our common stockholders.
During the three months ended March 31, 2026, our net cash used in financing activities decreased $224.4 million as compared to the corresponding period in 2025. The decrease was primarily due to (i) a $233.0 million decrease in debt repayments, net of borrowings; and (ii) a $3.5 million decrease in deferred financing costs; partially offset by (iii) a $7.4 million increase in distributions to our common stockholders; and (iv) a $4.7 million increase in repurchases of common stock.
Non-GAAP Performance Measures
We present the non-GAAP performance measures set forth below. These measures should not be considered as alternatives to, or more meaningful than, net income (calculated in accordance with GAAP) or other GAAP financial measures, as an indicator of financial performance and are not alternatives to, or more meaningful than, cash flow from operating activities (calculated in accordance with GAAP) as a measure of liquidity. Non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results to those calculated in accordance with GAAP. Our computation of these non-GAAP performance measures may differ in certain respects from the methodology utilized by other REITs and, therefore, may not be comparable to similarly titled measures presented by such other REITs. Investors are cautioned that items excluded from these non-GAAP performance measures are relevant to understanding and addressing financial performance.
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Funds From Operations
Nareit FFO (defined hereafter) is a supplemental, non-GAAP performance measure utilized to evaluate the operating and financial performance of real estate companies. Nareit defines funds from operations ("FFO") as net income (calculated in accordance with GAAP) excluding (i) depreciation and amortization related to real estate, (ii) gains and losses from the sale of certain real estate assets, (iii) gains and losses from change in control, (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and (v) after adjustments for unconsolidated joint ventures calculated to reflect FFO on the same basis.
Considering the nature of our business as a real estate owner and operator, we believe that Nareit FFO is useful to investors in measuring our operating and financial performance because the definition excludes items included in net income that do not relate to or are not indicative of our operating and financial performance, such as depreciation and amortization related to real estate, and items which can make periodic and peer analyses of operating and financial performance more difficult, such as gains and losses from the sale of certain real estate assets and impairment write-downs of certain real estate assets.
Our reconciliation of net income (calculated in accordance with GAAP) to Nareit FFO for the three months ended March 31, 2026 and 2025 is as follows (in thousands, except per share amounts):
| Three Months Ended March 31, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| Net income attributable to Brixmor Property Group Inc. | $ | 127,750 | $ | 69,729 | |||||||||||||||
| Depreciation and amortization related to real estate | 103,919 | 104,448 | |||||||||||||||||
| Gain on sale of real estate assets | (52,097) | (3,070) | |||||||||||||||||
| Nareit FFO | $ | 179,572 | $ | 171,107 | |||||||||||||||
| Nareit FFO per diluted share | $ | 0.58 | $ | 0.56 | |||||||||||||||
| Weighted average diluted shares outstanding | 307,679 | 307,252 | |||||||||||||||||
Same Property Net Operating Income
Same property net operating income ("NOI") is a supplemental, non-GAAP performance measure utilized to evaluate the operating performance of real estate companies. Same property NOI is calculated (using properties owned for the entirety of both periods and excluding properties under development and completed new development properties that have been stabilized for less than one year) as total property revenues (base rent, expense reimbursements, adjustments for revenues deemed uncollectible, ancillary and other rental income, percentage rents, and other revenues) less direct property operating expenses (operating costs and real estate taxes). Same property NOI excludes (i) lease termination fees, (ii) straight-line rental income, net, (iii) accretion of below-market leases, net of amortization of above-market leases and tenant inducements, (iv) straight-line ground rent expense, net, (v) income or expense associated with our captive insurance company, (vi) depreciation and amortization, (vii) impairment of real estate assets, (viii) general and administrative expense, and (ix) other income and expense (including interest expense and gain on sale of real estate assets).
Considering the nature of our business as a real estate owner and operator, we believe that NOI is useful to investors in measuring the operating performance of our portfolio because the definition excludes various items included in net income that do not relate to, or are not indicative of, the operating performance of our properties, such as lease termination fees, straight-line rental income, net, accretion of below-market leases, net of amortization of above-market leases and tenant inducements, straight-line ground rent expense, net, income or expense associated with our captive insurance company, depreciation and amortization, impairment of real estate assets, general and administrative expense, and other income and expense (including interest expense and gain on sale of real estate assets). We believe that same property NOI is also useful to investors because it further eliminates disparities in NOI by only including NOI of properties owned for the entirety of both periods presented and excluding properties under development and completed new development properties that have been stabilized for less than one year and therefore provides a more consistent metric for comparing the operating performance of our real estate between periods.
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Comparison of the Three Months Ended March 31, 2026 to the Three Months Ended March 31, 2025
| Three Months Ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||||||||||
| Number of properties | 338 | 338 | — | |||||||||||||||||||||||||
| Percent billed | 91.3 | % | 90.0 | % | 1.3 | % | ||||||||||||||||||||||
| Percent leased | 95.0 | % | 94.3 | % | 0.7 | % | ||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||
| Rental income | $ | 328,254 | $ | 311,156 | $ | 17,098 | ||||||||||||||||||||||
| Other revenues | 482 | 271 | 211 | |||||||||||||||||||||||||
| 328,736 | 311,427 | 17,309 | ||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||
| Operating costs | (39,614) | (37,490) | (2,124) | |||||||||||||||||||||||||
| Real estate taxes | (43,648) | (43,325) | (323) | |||||||||||||||||||||||||
| (83,262) | (80,815) | (2,447) | ||||||||||||||||||||||||||
| Same property NOI | $ | 245,474 | $ | 230,612 | $ | 14,862 | ||||||||||||||||||||||
The following table provides a reconciliation of net income to same property NOI for the periods presented (in thousands):
| Three Months Ended March 31, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| Net income attributable to Brixmor Property Group Inc. | $ | 127,750 | $ | 69,729 | |||||||||||||||
| Adjustments: | |||||||||||||||||||
| Non-same property NOI | (8,510) | (8,823) | |||||||||||||||||
| Lease termination fees | (1,630) | (4,111) | |||||||||||||||||
| Straight-line rental income, net | (7,939) | (7,481) | |||||||||||||||||
| Accretion of below-market leases, net of amortization of above-market leases and tenant inducements | (4,109) | (2,515) | |||||||||||||||||
| Straight-line ground rent expense, net | 160 | 134 | |||||||||||||||||
| Depreciation and amortization | 105,202 | 105,597 | |||||||||||||||||
| General and administrative | 28,192 | 28,173 | |||||||||||||||||
| Total other expense | 6,351 | 49,901 | |||||||||||||||||
| Net income attributable to non-controlling interests | 7 | 8 | |||||||||||||||||
| Same property NOI | $ | ||||||||||||||||||
Next expected filings
- ~2026-07-27 10-Q expected by 2026-08-07 (in 1 day)
- ~2026-10-26 10-Q expected by 2026-11-06 (in 92 days)
- ~2027-02-08 10-K expected by 2027-02-26 (in 197 days)
- ~2027-04-26 10-Q expected by 2027-05-07 (in 274 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-05-05 8-K Material Agreement Entered; Material Financial Obligation; Other Events; Financial Statements and Exhibits
- 2026-04-27 10-Q Quarterly Report
- 2026-04-27 8-K Earnings Release; Financial Statements and Exhibits
- 2026-02-09 10-K Annual Report
- 2026-02-09 8-K Earnings Release; Financial Statements and Exhibits
- 2025-11-24 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-10-29 8-K Other Events; Financial Statements and Exhibits
- 2025-10-27 10-Q Quarterly Report
- 2025-10-27 8-K Earnings Release; Financial Statements and Exhibits
- 2025-10-16 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-09-09 8-K Material Agreement Entered; Material Financial Obligation; Other Events; Financial Statements and Exhibits
- 2025-07-28 10-Q Quarterly Report
- 2025-07-28 8-K Earnings Release; Financial Statements and Exhibits
- 2025-04-28 10-Q Quarterly Report
- 2025-04-28 8-K Earnings Release; Financial Statements and Exhibits