Brixmor Property Group Inc. (NYSE:BRX) Q4 2022 Earnings Call Transcript

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So just the continued execution of the strategy continues to set-up well to – the glide path well to meet those target. In terms of the sign but not commenced timing, we do provide it in the supplemental on NAR page, you’ll see when looking at that about 76% of that $55 million comes online by the end of 2023. And I would just note that the contributions between first-half and second-half are roughly radiable as we move through ’23.

Operator: Our next question comes from Alexander Goldfarb with Piper Sandler. Please proceed.

Alexander Goldfarb: So quickly two questions. First Angela, on the potential to the prior question or you didn’t want to talk about specific future tenant issues. I guess, let me ask it from this perspective. The future potential tenant issues that you guys are contemplating in that generic bad debt guidance, do those tenants also have similar re-leasing upside that we are seeing from Bed Bath and some of the other tenants that 40% plus percent of single problem and 60% on Bed Bath or that future potential pool have re-leasing spreads that would be lower than that?

Brian Finnegan: Alex. Hi, this is Brian. Well, just if you think about the Tuesday Morning today which Angela highlighted. You look at what we’ve signed during the quarter, we took a space back-in suburban Cincinnati, we’ve doubled the rent. We’ve been signing leases on that size space in the high-teens with the likes of Five Below and Skechers and Boot Barn. So for those certainly and I’d say across-the-board, we benefit from low rent basis and we benefit from low rent basis in particular with these tenants. So we feel pretty good overall about the upside, is every space going to be 60%, no but we do think that that these spaces are going to be in-line with where we’ve been driving rents across the portfolio and we’ve been pretty encouraged by.

Alexander Goldfarb: Okay, the second question, Brian. One of the big issues out there just seems to be, it’s not the demand to backfill, it’s actually the time to reopen tenants. So what are ways, one I guess, are any tenants willing to take space as-is and if not, are there any ways to sort of accelerate the downtime to minimize that or it is what it is between getting the permits, building out the space, et-cetera?

Brian Finnegan: I’m really glad that you asked the question because our operating teams, led by high which Jim mentioned have done a fantastic job in terms of partnering with the operating teams on the tenant side. I point you an example last year, we just opened two alters in Metro New York and we got those stores open in less than six months and we have seen tenants from when we sign a lease. And so we have seen tenants take space as-is, but I think as we’ve mentioned on prior calls, what’s come out-of-the pandemic as a best practice has been retailers utilization of more existing conditions, right? They’re figuring out how to change their prototypes, so they can keep the bathrooms where they are, they’re figuring out how they can utilize the existing HVAC units.

And so they’re not – they’re doing that because we’re radically aligned in terms of getting them opened as quickly as possible. So we have done some work that has taken some time on the front-end, from a lease negotiation standpoint, but it certainly cut-down on the time from a buildout perspective. And the other thing is, a lot of these particularly on the spaces that we’ve been in front of. I mean, we’ve had our folks in this space had tenants representatives in this space to be able to understand plan, so that when we ultimately get those spaces back we’re already ahead of the game. So the team has done a fantastic job, really across-the-board and partnering with our tenants. I think some of the things that have come out-of-the last few years are going to remain going-forward in terms of the flexibility of how they’re able to utilize the spaces.

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