Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Was there any exposure to Big Lots or Party City at quarter end, and what is the expectation for JOANN spaces? A: Brian Finnegan, Chief Operating Officer: We had 140 basis points of bankruptcy impact in the quarter, primarily from Big Lots and Party City. We expect to get the JOANN boxes back in May and are pleased with the backfill progress, addressing 75% of Big Lots spaces at over 50% spreads.
Q: Can you walk us through the growth expectations for the rest of the year and any risks to hitting your midpoint guidance? A: James Taylor, CEO: We have great visibility with our signed but not commenced pipeline, which is contractual. Most growth will come in the second half of the year, and we have appropriate conservatism in our outlook.
Q: How has leasing activity trended post-April 2, and are there concerns about supply chain disruptions affecting tenancy? A: Brian Finnegan, Chief Operating Officer: Leasing discussions are encouraging, with April activity ahead of last year. While tariffs could impact some retailers, our portfolio's strong grocery and off-price exposure positions us well.
Q: What are the expected capital expenditures for re-tenanting spaces vacated by Party City, Big Lots, and JOANN? A: Brian Finnegan, Chief Operating Officer: Costs are in line with previous backfills, around $50 per square foot. We've been able to keep costs down and are seeing strong demand for these spaces.
Q: How do you expect tariffs and material costs to impact tenant improvements and redevelopment yields? A: James Taylor, CEO: We don't commit capital until costs are nailed down. Tariffs may push us to increase rents to maintain accretive returns, but we're encouraged by tenant demand and rent levels.
Q: What is the outlook for lease termination income for the rest of the year? A: Steven Gallagher, Interim CFO: Lease termination fees are part of our business, and we expect them to occur in the normal course. The impact on occupancy is negligible as most spaces already have leases.
Q: How do you view the transaction market given current uncertainties, and has there been a change in buyer or seller behavior? A: Mark Horgan, Chief Investment Officer: The market has slowed due to volatility, but demand remains strong. We expect the pipeline to build, and Brixmor is well-positioned to capitalize on opportunities.
Q: How do you expect tariffs to impact your tenants, and what measures are they taking to mitigate this? A: James Taylor, CEO: Retailers are adjusting sourcing and accelerating purchases. The impact on pricing is not fully known, but off-price retailers may benefit from inventory disruptions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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