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| Statement |
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| We feel really good about our ability to backfill that space accretively should we get a handful of boxes back |
| Again, all with the point of view that what we're delivering is still incredibly strong, with that top line provision |
| We are very pleased to report yet another strong quarter and year reflecting not only the strength of our value-added execution, but the depth of tenant demand to be in our transform portfolio |
| That transformation is evident in every observable stat from our record occupancy to record rate to sector leading new and renewal spreads to outperformance in growth |
| So that gives us really good visibility in terms of our ability to continue to drive rate |
| We also achieved record retention of 86% and renewal spreads of 13.3% for the year, once again demonstrating the mark-to-market opportunity within our portfolio |
| We signed anchor leases last year at the highest rates that we ever have |
| As we continue to make improvements across the portfolio, as the environment continues to be strong, we expect to be able to drive renewals higher |
| With our all weather strategy for growth, we once again demonstrated an ability to deliver consistent growth and an always dynamic retail industry |
| We have proven given our attractive rent basis that tenant disruption is an opportunity to create value |
| Look, we're proud of what the team has been able to do |
| It's lower risk, shorter duration, and attractive incremental returns |
| We've now impacted 40% of the portfolio, also creating tremendous value not only on delivery, but follow-on value down the road, as we benefit from higher rates and occupancy and also highly accretive future phases |
| And again, we're really benefited by the velocity with which that income delivers |
| It's a trend and a track record that we're very proud of |
| It's good look through in terms of our team's ability to capitalize on it |
| So we're actually pretty pleased with how that pipeline continues to grow |
| Our team addressed the 2023 bankruptcies very quickly with better tenants at higher rents, compelling accretive returns |
| And it really gives pretty darn good visibility on how we're going to grow, not only through '24, but '25 and beyond |
| As Jim highlighted in his remarks, our team ended 2023 with another outstanding quarter on the leasing front, as demand for space to be in our centers remains incredibly robust |
| The work our team has done in transforming our portfolio is enabling us to capitalize on that demand, leading to record occupancy rate and retention, while upgrading the underlying merchandising mix and credit profile of our tenancy |
| This activity led to record occupancy of 94.7%, a record 80 basis point sequential gain and a 90 basis points year-over-year gain despite a drag of 120 basis points from space we recaptured during the year due to tenant disruption |
| The strength of the bricks more portfolio in the broader leasing environment is not only evident in the speed in which our team is addressing the space, but the rents we have been able to achieve |
| Bankruptcy is proving to be an opportunity across our portfolio, as our team delivered rent growth of 60% on the recaptured space we executed leases on in 2023 |
| And while we don't expect the bulk of this income to come online until late 2024, later, we are encouraged by the quality of the retailers we have been able to quickly re merchandise these spaces with |
| In addition, even with the record overall and small shop occupancy results during the year, we still have more room to run with a strong pipeline of reinvestment projects projected to open over the next several quarters, including a new Whole Foods opening in suburban Philadelphia, a new Sprouts Farmers Market outside of Los Angeles, and a new Trader Joe's in the New York metro area |
| As we look forward this year, we remain encouraged by the overall strength of the retail environment and the demand from great operators to be in our centers |
| We're grateful for the efforts of the entire Brixmor team to position our portfolio to take advantage of this environment and to continue to find the opportunity and disruption to make our centers the centers of the communities we serve |
| I'm pleased to report on the strong 2023 as we continue to deliver on our value added business plan and set the stage for long-term growth |
| So the strength of that pipeline demonstrates itself in terms of how we drive outperformance in growth, how we deliver more revenue per quarter successively |
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| But a lot of the commentary this quarter on the strips have been sort of looking to '25, given some of the drag from Bed Bath and some other tenant issues that happened in '23 that create some downside |
| One is at the top line, which at the midpoint of the range, we've assumed about 100 basis points of potential tenant disruption |
| That's down from where we were pre-pandemic |
| I can get the exact number, but it's going to be down from where we were |
| If you look at overall, that Big Lots exposure, it's down 20% from where we were pre-pandemic |
| Whether there were supply chain delays a few years ago, tenants really had to hit that store opening pipeline |
| And again, those rents are below $8 |
| Ki Bin Kim When I look at your '24 lease expirations, the average rent is a little bit lower than other years |
| Typically, you see a dip both in build and lease occupancy due to seasonal move outs |
| Base rent growth contributed 280 basis points of same property NOI growth this quarter, overcoming a top line revenue drag of approximately 150 basis points related to recent bankruptcies |
| As it relates to just tenant disruption as a whole, we continue to monitor our watch list |
| You may see some fluctuations with that due to tenant disruption as we saw last year as well |
| It's not going to prevent us though from being opportunistic to take space back |
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