third quarter 2026
Filed Oct 26, 2026Brixmor Property Group Announces Third Quarter Results With Strong Leasing Demand Driving Occupancy to Record Highs; Increases Dividend Over 7% and Raises Outlook
Record 95.6% leased occupancy, 6.6% same property NOI growth, higher Nareit FFO, a raised 2026 outlook and a 7.3% dividend increase outweighed lower GAAP net income attributable to Brixmor Property Group Inc. in the quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026 total revenuesGAAP | $359,598 | – | – |
| Three months ended September 30, 2026 rental incomeGAAP | $358,546 | – | – |
| Three months ended September 30, 2026 other revenuesGAAP | $1,052 | – | – |
| Three months ended September 30, 2026 operating costsGAAP | $40,921 | – | – |
| Three months ended September 30, 2026 real estate taxesGAAP | $46,290 | – | – |
| Three months ended September 30, 2026 depreciation and amortizationGAAP | $106,427 | – | – |
| Three months ended September 30, 2026 impairment of real estate assetsGAAP | $683 | – | – |
| Three months ended September 30, 2026 general and administrativeGAAP | $27,297 | – | – |
| Three months ended September 30, 2026 total operating expensesGAAP | $221,618 | – | – |
| Three months ended September 30, 2026 interest expenseGAAP | $(59,176) | – | – |
| Three months ended September 30, 2026 gain on sale of real estate assetsGAAP | $8,863 | – | – |
| Three months ended September 30, 2026 net incomeGAAP | $88,142 | – | – |
| Three months ended September 30, 2026 net income attributable to Brixmor Property Group Inc.GAAP | $87,754 | – | – |
| Three months ended September 30, 2026 net income attributable to Brixmor Property Group Inc. per diluted shareGAAP | $0.28 | – | – |
| Three months ended September 30, 2026 Nareit FFOnon-GAAP | $184.6M | – | – |
| Three months ended September 30, 2026 Nareit FFO per diluted sharenon-GAAP | $0.60 | – | – |
| Three months ended September 30, 2026 same property NOInon-GAAP | $249,837 | – | 6.6% |
| Three months ended September 30, 2026 same property NOI marginnon-GAAP | 74.8 % | – | – |
| Three months ended September 30, 2026 same property expense recovery rationon-GAAP | 95.3 % | – | – |
| Three months ended September 30, 2026 same property percent leasedother | 95.6 % | – | 1.2 % |
| Three months ended September 30, 2026 same property percent billedother | 91.3 % | – | 0.8 % |
| Three months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $246,394 | – | – |
| Three months ended September 30, 2026 Cash Adjusted EBITDAnon-GAAP | $235,686 | – | – |
| Nine months ended September 30, 2026 total revenuesGAAP | $1,068,616 | – | – |
| Nine months ended September 30, 2026 net income attributable to Brixmor Property Group Inc.GAAP | $289,015 | – | – |
| Nine months ended September 30, 2026 net income attributable to Brixmor Property Group Inc. per diluted shareGAAP | $0.94 | – | – |
| Nine months ended September 30, 2026 Nareit FFOnon-GAAP | $542,743 | – | – |
| Nine months ended September 30, 2026 Nareit FFO per diluted sharenon-GAAP | $1.76 | – | – |
| Nine months ended September 30, 2026 same property NOInon-GAAP | $733,975 | – | 6.2% |
| September 30, 2026 cash and cash equivalentsGAAP | $164,428 | – | – |
| September 30, 2026 restricted cashGAAP | $19,050 | – | – |
| September 30, 2026 debt obligations, netGAAP | $5,322,955 | – | – |
| September 30, 2026 net principal debtnon-GAAP | $5,164,781 | – | – |
| September 30, 2026 net principal debt to Adjusted EBITDA, current quarter annualizednon-GAAP | 5.2x | – | – |
| September 30, 2026 net principal debt to Adjusted EBITDA, trailing twelve monthsnon-GAAP | 5.3x | – | – |
2026 outlook
- NoteNareit FFO per diluted share: $2.36 - $2.38
- NoteSame property NOI growth: 5.50% - 5.75%
- NoteRevenues deemed uncollectible: 60 - 85 basis points of total expected revenues
- NoteNet income attributable to Brixmor Property Group Inc.: $368 - $374
- NoteNet income attributable to Brixmor Property Group Inc. per diluted share: $1.20 - $1.22
- NoteDepreciation and amortization related to real estate: 423
- NoteGain on sale of real estate assets: (71)
- NoteImpairment of real estate assets: 7
- NoteNareit FFO: $727 - $733
Capital returns
- Quarterly cash dividend declared: $0.3300 per common share
- Dividend equivalent to $1.32 per annum
- Dividend represents a 7.3% increase
- Dividend payable on January 15, 2027 to stockholders of record on January 5, 2027
- Three months ended September 30, 2026 dividends declared: $94,363
- Nine months ended September 30, 2026 dividends declared: $283,078
- Three months ended September 30, 2026 dividend payout ratio: 51.1 % of Nareit FFO
What drove it
- Executed 1.6 million square feet of new and renewal leases, with rent spreads on comparable space of 25.3%.
- New lease rent spreads on comparable space were 42.6% and renewal lease rent spreads on comparable space were 19.4%.
- Commenced $17.7 million of annualized base rent.
- Signed but not yet commenced new leases represented 3.1 million square feet and $68.9 million of annualized base rent.
- Base rent contributed 480 basis points to third-quarter same property NOI performance.
- The in-process reinvestment pipeline totaled $331.8 million at an expected average incremental NOI yield of 10%.
- During the quarter, the Company stabilized $54.6 million of reinvestment projects at an average incremental NOI yield of 10% and added $36.7 million of projects at an expected average incremental NOI yield of 11%.
Concerns
- Third-quarter net income attributable to Brixmor Property Group Inc. was $87,754, compared with $94,235 in the prior-year period.
- Third-quarter gain on sale of real estate assets was $8,863, compared with $40,018 in the prior-year period.
- Interest expense was $(59,176), compared with $(56,680) in the prior-year period.
- The Slate Transaction is expected to close in the first quarter of 2027 and remains subject to customary closing conditions, including approval by Slate Grocery REIT unitholders.
- 2026 expectations exclude items that impact FFO comparability, including gain or loss on extinguishment of debt, net, transaction expenses, net, and other one-time items.
What to watch
- Conversion of the 3.1 million square feet and $68.9 million of annualized base rent in signed but not yet commenced leases.
- Progress in narrowing the 420 basis point leased-to-billed occupancy spread.
- Execution and closing of the Slate Transaction, including the acquisition of a 23-property portfolio for approximately $636 million and the Everview JV investments.
- Delivery of the 46-project, $331.8 million in-process reinvestment pipeline.
- Achievement of updated 2026 Nareit FFO per diluted share expectations of $2.36 - $2.38 and same property NOI growth expectations of 5.50% - 5.75%.
Balance sheet and cash flow
- At September 30, 2026, liquidity was $1.5 billion, excluding a commitment letter for up to $988.0 million of senior unsecured term loan financing available in connection with the Slate Transaction.
- September 30, 2026 total assets were $9,022,841 and total liabilities were $5,972,133.
- September 30, 2026 total stockholders' equity was $3,019,645.
- No operating cash flow or free cash flow was reported in the filing.
Analysis
Brixmor reported strong underlying property operations in the third quarter. Same property NOI increased 6.6% to $249,837, with base rent contributing 480 basis points to performance. Total leased occupancy reached a record 95.6%, anchor leased occupancy reached 97.0%, and small shop leased occupancy reached a record 92.8%. Leasing activity was substantial, with 1.6 million square feet of new and renewal leases executed and 25.3% rent spreads on comparable space.
Quarterly GAAP earnings were lower than the prior-year period. Net income attributable to Brixmor Property Group Inc. was $87,754, or $0.28 per diluted share, compared with $94,235, or $0.31 per diluted share. The prior-year quarter included $40,018 of gain on sale of real estate assets, compared with $8,863 in the current quarter. In contrast, Nareit FFO increased to $184,616, or $0.60 per diluted share, from $172,287, or $0.56 per diluted share.
Portfolio cash flow visibility is supported by $17.7 million of commenced annualized base rent and 3.1 million square feet of signed but not yet commenced new leases representing $68.9 million of annualized base rent. The 420 basis point leased-to-billed occupancy spread also identifies additional potential commencement activity. The Company stabilized $54.6 million of reinvestment projects and added $36.7 million of new projects, while the in-process pipeline stood at $331.8 million across 46 projects.
Capital activity included $49.5 million of acquisitions and approximately $42.8 million of gross disposition proceeds during the quarter. Liquidity was $1.5 billion at September 30, 2026, while net principal debt to Adjusted EBITDA was 5.2x on a current-quarter annualized basis and 5.3x on a trailing-twelve-month basis. The announced Slate Transaction would add a 23-property grocery-anchored portfolio and a joint-venture investment, but it is expected to close in the first quarter of 2027 and is subject to closing conditions.
Management raised 2026 Nareit FFO per diluted share expectations to $2.36 - $2.38 from $2.35 - $2.37 and raised the lower end of same property NOI growth expectations to 5.50% - 5.75% from 5.00% - 5.75%. The Board also declared a quarterly cash dividend of $0.3300 per common share, a 7.3% increase. The release therefore pairs continued operating momentum and higher earnings outlook with an increased cash return to shareholders.
Management, verbatim
Our third quarter results were highlighted by continued leasing momentum, strong same property NOI growth, and record occupancy.
Brian T. Finnegan, Chief Executive Officer and President
These results reinforce the strength of our operating platform, while the growth embedded in our signed but not yet commenced pipeline and reinvestment program provide exceptional visibility into future earnings and cash flow growth.
Brian T. Finnegan, Chief Executive Officer and President
We are excited to build on this momentum through the Slate Transaction by expanding our opportunity set and creating additional avenues to drive long-term shareholder value.
Brian T. Finnegan, Chief Executive Officer and President
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Segment revenue was not reported.
- Revenue guidance was not reported.
- Operating-expense guidance was not reported.
- Tax-rate guidance was not reported.
- Prior-quarter comparisons were not reported for the listed income-statement, FFO and same-property metrics.
- A previous outlook document was not provided, so no actual-versus-prior-guidance comparison is included.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.