Brixmor Property Group NYSE: BRX highlighted what executives repeatedly described as a year of “record” operating momentum on its fourth-quarter 2025 earnings call, while also introducing 2026 guidance that reflects expectations for continued same-property growth and a normalization in certain non-recurring income items.
Leadership transition and strategic focus
CEO and President Brian Finnegan, speaking on his first call as permanent chief executive after more than two decades with the company, thanked outgoing CEO Jim Taylor and said the company does not anticipate near-term changes to its operating model. Finnegan noted several leadership updates, including Stacy Slater’s promotion to Executive Vice President of Capital Markets, Corporate Strategy and Investor Relations, and Matt Ryan expanding responsibilities to include National Property Operations.
Finnegan emphasized continued focus on operations and redevelopment, describing favorable fundamentals for open-air, grocery-anchored retail amid resilient consumers, tenant expansion, and “historic lows” in new retail supply. He also pointed to increased use of technology, saying early initiatives in AI and automation have produced “positive results” in areas such as lease abstraction and summarization, tenant health analyses, and leasing prospecting tools.
2025 operating performance: occupancy, leasing, and rent growth
Management said results for 2025 were “exceptional.” Same-property NOI grew 4.2% for the year, even as the company recaptured 1.5 million square feet of anchor space. NAREIT FFO for the year was $2.25 per share, at the high end of guidance and up 5.6% year over year.
The company reported a record leasing year, including $70 million of new rent executed and more than 3 million square feet of new leases signed. Small shop occupancy increased to 92.2%, and overall occupancy rose 100 basis points sequentially to 95.1%, which management called the largest sequential overall occupancy gain in company history.
Finnegan said demand from “high-quality tenants” remained robust, noting that Brixmor signed eight new grocer leases with operators including Publix, Sprouts, and Big Y, and executed multiple leases with leading off-price retailers. He also said the company continues to attract higher-caliber small shop tenants, particularly in health and wellness, quick service restaurants, and services.
Management highlighted significant “mark-to-market” upside: new lease rent growth for 2025 was 39% and renewal rent growth was 15%, marking the third consecutive year of mid-teens renewal growth. The year-end retention rate was 87%, up 180 basis points from the prior year.
Capital spending, expense recovery, and redevelopment pipeline
Executives described improved efficiency in capital deployment. Overall capital expenditures were down 14% year over year and were the lowest since 2021, while maintenance capex was at the lowest level since 2016 outside of the pandemic year. The company also reported a record expense recovery ratio of 92.3% at year-end.
On redevelopment, Brixmor said it stabilized $183 million of projects in 2025 at a 10% incremental yield. Finnegan cited The Davis Collection as an example, describing the teardown of an “obsolescent” anchor and delivery of new tenants including Nordstrom Rack, Ulta, J.Crew Factory, Mendocino Farms, and Urban Plates.
At year-end, the company had $336 million in its active redevelopment pipeline. Management also referenced Rockland Plaza, added to the active pipeline during the quarter, which includes plans featuring Nordstrom Rack, Ross Dress for Less, Burlington, new out-parcel buildings, and additional shop tenants. Finnegan said the company’s “shadow pipeline” includes multiple additional projects, including several with Publix.
Transactions, balance sheet, and 2026 outlook
Brixmor said it was a net acquirer in four of the last five years, with 2025 being its most active year as a public company at approximately $420 million of asset value acquired in Houston, Southern California, and Denver. In the fourth quarter, it acquired two grocery-anchored centers in Denver and Southern California and completed $170 million of dispositions, including the company’s last asset in Alabama.
On the acquisition environment, Chief Investment Officer Mark Horgan said cap rates have compressed across open-air retail, driven by increased private and pension fund capital. He noted that smaller grocery-anchored and unanchored strip deals in high-demand markets have been trading “down into the fives,” while larger deals can see smaller bid lists and may fit Brixmor’s “operating nature” strengths.
Regarding dispositions, Horgan said 2025 sales blended to a low-7% cap rate and characterized buyer demand as strong, including pension funds, high net worth capital, and local groups. He said the company remains focused on recycling proceeds from lower-growth assets into higher-growth opportunities.
In the fourth quarter, same-property NOI increased 6%, supported by 360 basis points from base rent growth and 200 basis points from ancillary and other income, which CFO Steve Gallagher said reflected proactive asset management initiatives. NAREIT FFO was $0.58 per share in the quarter, benefiting from strong same-property NOI and elevated lease termination income tied to proactive recaptures, including a large transaction in the Bay Area.
Gallagher said Brixmor commenced a record $70 million of ABR in 2025 and replenished that by executing another $70 million of net new rent. The signed-but-not-yet commenced (SNO) pipeline totaled $62 million at an average of $23 per square foot and included $50 million of net new rent. Management expects approximately $43 million of that pipeline to commence “rapidly” throughout 2026.
For 2026, the company guided to 4.5% to 5.5% same-property NOI growth, driven by more than 450 basis points of expected base rent contribution. Gallagher also introduced 2026 NAREIT FFO guidance of $2.33 to $2.37 per share, representing 4.4% growth at the midpoint, while absorbing headwinds of $0.03 from lower lease termination income returning to historical levels and $0.03 from higher interest expense.
Management reiterated improving tenant credit trends and guided to revenues deemed uncollectable of 75 to 100 basis points of total revenues. Executives attributed the outlook to tenant mix improvements and what they described as limited future disruption identified in budgeting.
On the balance sheet, Brixmor ended the period with $1.6 billion of available liquidity, including $360 million in cash from a September 2025 4.85% issuance that pre-funded a June 2026 $600 million 4.125% maturity. Debt to EBITDA was 5.4x, and Gallagher said the company is comfortable in the “mid-fives” range.
Finnegan closed by saying the company entered 2026 with “tremendous momentum,” pointing to improving occupancy, a stronger tenant credit profile, and continued visibility from its redevelopment and leasing pipelines.
About Brixmor Property Group NYSE: BRX
Brixmor Property Group is a publicly traded real estate investment trust (REIT) focused on the ownership, management and development of open-air shopping centers across the United States. The company acquires and leases retail properties that feature everyday, necessity-based tenants such as grocery stores, discount retailers, and service providers. Brixmor's core strategy centers on generating stable, long-term income streams through tenant relationships and targeted property enhancements.
The company's main business activities include proactive leasing, property upkeep and capital improvement projects designed to maximize occupancy and tenant satisfaction.
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