Brixmor Property Group raised its quarterly dividend by 7.3% and lifted its full-year outlook Monday as strong leasing demand pushed occupancy at its shopping centers to record highs.
The retail-property owner said total leased occupancy reached 95.6% in the third quarter, while leased occupancy for small shops rose to a record 92.8%. It signed 1.6 million square feet of new and renewal leases during the period.
In its third-quarter results announcement, Brixmor reported a 25.3% increase in rents on comparable space covered by those leases. New-lease rent spreads were 42.6%, compared with 19.4% for renewals.
Property income rises while net income per share falls
Same-property net operating income increased 6.6%, including a 4.8-percentage-point contribution from base rent. The measure tracks property operating performance rather than the company’s total profit.
Net income attributable to Brixmor was $0.28 per diluted share, down from $0.31 a year earlier. Nareit funds from operations, a measure commonly used by real estate investment trusts, was $184.6 million, or $0.60 per diluted share. FFO is not the same as net income.
The company had 3.1 million square feet of signed new leases that had not yet begun, representing $68.9 million in annualized base rent. That pipeline separates space already leased from space generating billed occupancy.
Higher dividend and outlook
Brixmor declared a quarterly dividend of $0.33 per common share. It is payable January 15, 2027, to shareholders of record January 5.
The company raised its 2026 Nareit FFO outlook to $2.36 to $2.38 per diluted share, from $2.35 to $2.37. It also increased the lower end of its same-property NOI growth forecast to 5.50% from 5.00%, keeping the upper end at 5.75%.
During the quarter, Brixmor completed $49.5 million of acquisitions and $42.8 million of property sales. It added $36.7 million of reinvestment projects to its active pipeline and stabilized $54.6 million of projects.
The company plans to discuss the results on a conference call Tuesday, October 27, at 10 a.m. Eastern time.
JBizNews Desk | New York
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