Brixmor Property Group Reports Second Quarter 2014 Results

Brixmor delivered another quarter of strong results driven by continued growth in revenues and momentum in operating fundamentals. Same property NOI increased 3.8% in the second quarter, marking the eighth consecutive quarter of growth over 3.5%. Funds from operations (“FFO”) per diluted share growth accelerated during the quarter, increasing 12.2% over 2013. Additionally, the Company’s operating partnership, Brixmor Operating Partnership, L.P., received an investment grade rating from Moody’s Investors Service during the quarter.

The positive trajectory of the Company’s operating metrics was driven by record leasing activity, with new lease volume of 1.1 million square feet during the quarter, the highest in three years and driven by strong anchor and small shop leasing. In addition, as part of its continued efforts to maximize the potential of its shopping centers, the Company commenced eight new anchor space repositioning projects with high quality retailers including Walmart, WinCo Foods, Fresh Thyme Farmers Market (Meijer), CVS and REI.

The Company presents FFO and FFO attributable to stockholders and non-controlling interests convertible into common stock as it considers them important supplemental measures of its operating performance and the Company believes they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. FFO and FFO attributable to stockholders and non-controlling interests convertible into common stock should not be considered as alternatives to net income (determined in accordance with GAAP) as indicators of financial performance and are not alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of liquidity. Non-GAAP financial 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 to financial results presented in accordance with GAAP. Computation of FFO and FFO attributable to stockholders and non-controlling interests convertible into common stock 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 FFO and FFO attributable to stockholders and non-controlling interests convertible into common stock are significant components in understanding and addressing financial performance.

A reconciliation of FFO and FFO attributable to non-controlling interests not convertible into common stock to Net income (loss) is presented in the attached table.

Same property NOI is a supplemental, non-GAAP financial measure utilized to evaluate the operating performance of real estate companies and is frequently used by securities analysts, investors and other interested parties in understanding business and operating results regarding the underlying economics of Brixmor’s business operations. It includes only the net operating income of properties owned for the full period presented, which eliminates disparities in net income due to the acquisition or disposition of properties during the period presented, and therefore, provides a more consistent metric for comparing the performance of properties. Management uses same property NOI to review operating results for comparative purposes with respect to previous periods or forecasts, and also to evaluate future prospects. Same property NOI is not intended to be a performance measure that should be regarded as an alternative to, or more meaningful than, net income (determined in accordance with GAAP) or other GAAP financial measures. Non-GAAP financial 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 to financial results presented in accordance with GAAP. Computation of same property NOI may differ in certain respects from the methodology utilized by other REITs and, therefore, may not be comparable to such other REITs.

SOURCE Brixmor Property Group Inc.