UBS has begun coverage of Brixmor (BRX, Financial) with a favorable outlook, assigning a Buy rating and a target price of $29. The investment firm highlights the company's promising prospects for mid-single digit growth in funds from operations, which is paired with an appealing valuation. UBS expresses confidence in Brixmor’s strategic direction, noting that the company's robust pipeline of signed yet-to-open leases indicates potential for future rental income expansion.
Moreover, Brixmor's current leasing activities are achieving rates significantly higher than those maturing in 2026 and 2027, with increases of 16% and 13% respectively. These factors contribute to a positive assessment from UBS, underpinning their belief that Brixmor is well-positioned for continued growth and profitability.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Brixmor Property Group Inc (BRX, Financial) is $30.16 with a high estimate of $39.00 and a low estimate of $26.00. The average target implies an upside of 17.75% from the current price of $25.61. More detailed estimate data can be found on the Brixmor Property Group Inc (BRX) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Brixmor Property Group Inc's (BRX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Brixmor Property Group Inc (BRX, Financial) in one year is $24.79, suggesting a downside of 3.2% from the current price of $25.61. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Brixmor Property Group Inc (BRX) Summary page.
BRX Key Business Developments
Release Date: April 29, 2025
- Debt-to-EBITDA: Reduced to 5.5 times.
- Available Liquidity: $1.4 billion.
- FFO (Funds From Operations): $0.56 per share in Q1 2025.
- Same-Property NOI Growth: 2.8% despite tenant disruption.
- Leasing Activity: 1.3 million square feet of new and renewal leases at a blended cash spread of 21%.
- Occupancy Rate: Declined to 94.1% due to recaptured space.
- Reinvestment Pipeline: $391 million at a weighted average 10% return.
- Signed but Not Yet Commenced Pool: $60 million, with $48 million expected to commence in 2025.
- Bond Issuance: $400 million issued in March at 5.2%.
- FFO Guidance: $2.19 to $2.24 for 2025.
- Same-Property NOI Growth Guidance: 3.5% to 4.5% for 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Brixmor Property Group Inc (BRX, Financial) reported strong leasing activity with 1.3 million square feet of new and renewal leases at a blended cash spread of 21%, indicating robust tenant demand.
- The company successfully backfilled 75% of its Big Lots locations at spreads of more than 50%, showcasing effective management of tenant disruptions.
- Brixmor Property Group Inc (BRX) maintained a strong financial position with a debt-to-EBITDA ratio of 5.5 times and over $1.3 billion in revolver capacity and cash on hand.
- The company has a significant signed but not commenced (SNO) pipeline of $60 million, providing visibility into future growth.
- Brixmor Property Group Inc (BRX) continues to deliver reinvestment projects on time and on budget, with a weighted average return of 10% on its $391 million reinvestment pipeline.
Negative Points
- The company experienced a decline in occupancy to 94.1% due to tenant bankruptcies, including Big Lots and Party City.
- Brixmor Property Group Inc (BRX) anticipates additional occupancy pressure in the second quarter as it recaptures space from JOANN.
- The company faces potential risks from tariff uncertainties and economic slowdown, which could impact tenant performance and leasing activity.
- Revenues deemed uncollectible detracted from same-property NOI growth due to a difficult comparison with the prior year.
- The transaction market has slowed due to recent volatility, which may impact Brixmor Property Group Inc (BRX)'s ability to capitalize on growth opportunities.
