Brixmor Property Group Inc. (NYSE:BRX) Q4 2023 Earnings Call Transcript

So I think there’s a wide range of spaces. I gave a few there, but those are the three, I’d say where we’re seeing the most demand.

Linda Tsai: And then my second question is just on the transaction market. You mentioned the mid-6 cap rate for a recent transaction. How do cap rates vary across the format for the assets you would be considering to buy?

Mark Horgan: Yes. I think the most important part about that cap rate question is really size. So as you go down in size, cap rates are tighter. So if you look at that $15 million, $20 million, $30 million range, you’re certainly seeing tighter cap rates for net retail as you expand out to that 50 to 100 and higher, that’s where we’re seeing higher cap rates that could be more opportunistic for us.

Operator: Our next question comes from the line of Omotayo Okusanya with Deutsche Bank.

Omotayo Okusanya: In regards to dispositions, could you just talk a little bit about, you kind of talked about some of your lower-growth assets and kind of what you’re targeting? Can you just provide any commentary around that particular market you’re trying to get out, whether you can in one or two places where you may not have scale, that it makes sense to just kind of exit the market?

James Taylor: Yes. I mean our strategy has been pretty consistent and it’s one of clustering as we exit some of those single asset markets where we fix the asset and have an opportunity to harvest real value. That’s where you see us exiting. And we’ll always be balanced, evaluating that hold IRR against our cost of capital and looking for opportunities to monetize assets opportunistically. With that said, we’re going to be balanced, and we’re always going to look to what we can do on the other side.

Operator: This concludes our question-and-answer session. I’d like to hand it back to Stacy Slater for closing remarks.

Stacy Slater: Thanks everyone for joining us today.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.