Brixmor third-quarter FFO rises to $0.60 per share and raises 2026 outlook

Brixmor Property Group Inc. (BRX) said Monday that net income attributable to the company was $87.8 million, or $0.28 per diluted share, for the quarter ended Sept. 30.

A year earlier the figure was $94.2 million, or $0.31 per diluted share, the company said in a regulatory filing.

The owner of open-air shopping centers also raised its 2026 outlook and increased its quarterly dividend by 7.3%.

Here's how the company did:

• Net income attributable to the company: $87.8 million, or $0.28 per diluted share, vs. $94.2 million, or $0.31 per diluted share, a year earlier
• Nareit FFO: $184.6 million, or $0.60 per diluted share, vs. $172.3 million, or $0.56 per diluted share, a year earlier
• Total revenues: $359.6 million vs. $340.8 million a year earlier

Nareit FFO, or funds from operations, is a non-GAAP measure that excludes real estate depreciation, gains on certain property sales and impairments.

On a per-share basis, Nareit FFO rose to $0.60 from $0.56 a year earlier.

For the first nine months, net income attributable to the company was $289.0 million, or $0.94 per diluted share, against $249.1 million, or $0.81, a year earlier.

Nareit FFO for the nine months was $542.7 million, or $1.76 per diluted share, compared with $514.9 million, or $1.67, a year earlier.

Leasing and occupancy

Same property net operating income, or NOI, rose 6.6% in the quarter from the comparable 2025 period. NOI is property revenue less direct property operating costs and real estate taxes.

Base rent contributed 480 basis points of that growth. For the nine months, same property NOI rose 6.2%.

The company executed 1.6 million square feet of new and renewal leases in the quarter. Rent spreads on comparable space were 25.3%, with new leases at 42.6% and renewals at 19.4%.

Total leased occupancy reached a record 95.6%, anchor leased occupancy was 97.0%, and small shop leased occupancy was a record 92.8%.

The company commenced $17.7 million of annualized base rent in the quarter. Leases signed but not yet commenced covered 3.1 million square feet and $68.9 million of annualized base rent.

"Our third quarter results were highlighted by continued leasing momentum, strong same property NOI growth, and record occupancy," said Chief Executive Officer and President Brian T. Finnegan. "These results reinforce the strength of our operating platform, while the growth embedded in our signed but not yet commenced pipeline and reinvestment program provide exceptional visibility into future earnings and cash flow growth."

Reinvestment and property activity

Reinvestment projects include anchor space repositioning, outparcel development and redevelopment. The company stabilized $54.6 million of these projects at an average incremental NOI yield of 10%.

It added $36.7 million to its in-process pipeline at an expected yield of 11%. The full in-process pipeline totals $331.8 million at an expected average yield of 10%.

The company bought Village West Shopping Center for $49.5 million in the quarter. The 195,862-square-foot center is in the Inland Empire, California trade area and is anchored by a Stater Bros. grocer.

For the first nine months, the company bought five shopping centers for $213.8 million. It sold two shopping centers in the quarter for $42.8 million of gross proceeds, and eight centers for $165.8 million in the nine months.

After the quarter ended, the company bought an outparcel at an existing shopping center for $4.8 million.

Dividend and balance sheet

The board declared a quarterly cash dividend of $0.3300 per common share, or $1.32 a year, which the company described as a 7.3% increase.

The dividend is payable Jan. 15, 2027, to stockholders of record on Jan. 5, 2027. The company put the annualized yield at about 4.7% as of Oct. 23.

At Sept. 30, the company had $1.5 billion of liquidity. That figure excludes a commitment letter for up to $988.0 million of senior unsecured term loan financing tied to the Slate Transaction.

Net principal debt to adjusted EBITDA, a measure of earnings before interest, taxes, depreciation and amortization with other items excluded, was 5.2x on a current-quarter annualized basis and 5.3x on a trailing 12-month basis.

Slate transaction and 2026 outlook

On Sept. 28, the company announced definitive agreements with Everview Partners to acquire Slate Grocery REIT in a transaction valued at about $2.34 billion.

Brixmor will buy a 23-property grocery-anchored portfolio for about $636 million. It will also hold a 20% common equity interest and an investment of about $174 million in preferred equity in a joint venture with Everview Partners.

The joint venture will acquire 92 more properties for about $1.71 billion. The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions, including approval by Slate Grocery REIT unitholders.

The company raised its 2026 Nareit FFO per diluted share outlook to $2.36 to $2.38 from $2.35 to $2.37. It also raised its same property NOI growth outlook to 5.50% to 5.75% from 5.00% to 5.75%.

The company expects uncollectible revenues to total 60 to 85 basis points of total expected revenues in 2026. The 2026 figures exclude items that affect FFO comparability, such as gains or losses on debt extinguishment and transaction expenses.

The company projects 2026 net income attributable to the company of $368 million to $374 million, or $1.20 to $1.22 per diluted share.

The company will host a teleconference on Tuesday to discuss the results, the release said.