INVESTOR PRESENTATION Q U A RT E R E N D E D J U N E 3 0 , 2 0 1 8 450 Lexington Ave New York, NY 10017 800.468.7526 BRIXMOR.COM
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WHO IS BRIXMOR ? PORTFOLIO QUICK FACTS We are one of the largest open-air retail landlords in the US • Number of shopping centers 471 We strive to own properties that are the “centers of the communities” we serve • GLA 80M SF Non-discretionary, value-oriented retail mix with strong service component • Average shopping center size 170K SF o ~70% of centers are grocery-anchored Percent billed 89.4% Percent leased 92.5% High quality, well-diversified portfolio with 5,000+ national, regional, local tenants • Percent leased – Anchors ( ≥ 10K SF) 95.6% Percent leased – Small shops (< 10K SF) 85.1% TOP RETAILERS BY ABR % of % of Credit Rating Average grocer sales PSF 1 ~$550 Retailer Stores GLA ABR ABR PSF (S&P/Moody’s) Average grocer occupancy cost 1 < 2% 89 3.5% 3.2% $10.74 A+ / A2 61 5.1% 3.0% 7.07 BBB / Baa1 FLEXIBLE RETAIL FORMAT 2 149 2.1% 1.9% 10.54 BBB- / Baa2 25 1.7% 1.5% 10.47 BBB / Baa1 74% Community / 31 1.7% 1.4% 9.41 NR Neighborhood 13% Power center 23 3.5% 1.4% 4.59 AA / Aa2 11% Grocery-anchored 23 1.9% 1.3% 8.50 BB / Baa2 regional center 20 1.4% 1.3% 10.50 B / Ba2 2% Other 33 1.1% 1.1% 11.46 A- / A3 31 1.0% 1.0% 12.84 BBB- / Baa2 TOP 10 485 23.0% 17.1% $8.78 3
2Q 2018 HIGHLIGHTS Executing on all facets of balanced & self-funded business plan ABR PSF Trajectory New Lease Rent Spreads Stable Lease TIs / Duration (comparable only) 10.2 9.6 $13.73 9.2 $35.0 9.0 8.8 42.7% 10.0 $13.61 36.7% 36.1% $30.0 $13.47 8.0 $23.52 28.7% $23.39 $21.48 $25.0 $13.28 $21.11 $20.62 6.0 $13.21 20.7% $20.0 4.0 $15.0 2.0 0.0 $10.0 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 New Lease TI PSF Weighted Avg. Lease Term (years) Delivering Reinvestment Prudent Capital Allocation Visible Tailwinds Value Now 310 bps $36 M 12 % $246 M of dispositions YTD at Spread between leased and billed Delivered YTD 1 Incremental $185 M of debt reduction YTD returns 1,2 occupancy, widest since IPO $43 M ~$34 M $33 M of share repurchases YTD Value creation 3 Record level of leases signed but not yet commenced 4
WHY BRIXMOR ? POSITIONED TO DRIVE SUSTAINABLE GROWTH • We are a leading landlord to retailers who thrive in today’s environment • We are the most productive leasing platform in the industry • We have unmatched visibility on growth • We have an unparalleled opportunity to invest in our assets and drive future growth • We have a self-funded business plan and disciplined approach to capital allocation • We have an attractive, well-covered dividend • We have a strong balance sheet providing maximum flexibility 5
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WHY BRIXMOR ? CAPTURING RETAILER MARKET SHARE Trusted partner Brixmor’s Share of New Store Opening Plans ( 2018) 1 • One of the largest landlords to thriving retailers including: BRX Share of New Stores 20% BRX Share of Existing Retailer Fleet 13% 11% 11% 8% 6% 6% • Proven national relationships driving outsized market share 4% 4% 4% 4% 3% 3% 2% 2% 2% 2% 1% 1% 1% 1% • Recognizing the importance of our tenants’ success Ross Burlington TJX Sprouts Fitness Party City Panera Fitness Local sharpshooter approach • Focused on targeting and developing relationships with successful local merchants… “The Local Anchor” • Harvesting valuable local market insight • Best-in-class leasing and operational service 7
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WHY BRIXMOR ? LEASING OUTPERFORMANCE Sector leading leasing New lease productivity – TTM 1 New ABR created – TTM 2 33% 35% 4,500 6% 60 4.8% 4,000 30% 5% 50 25% 24% 3,500 3.9% 3.7% 21% 25% 3.4% 3,000 4% 40 19% 2.9% 20% 16% 2,500 3% 30 2,000 15% 1.7% 9% 1,500 2% 20 10% 1,000 1% 10 5% 500 1,211 11 574 730 1,199 2,772 72 3,652 $12 $13 $18 $31 1 $36 $45 325 325 0% 0 0% 0 RPAI WRI FRT REG DDR KIM BRX FRT RPAI DDR REG KIM BRX New Lease GLA (K SF) New Lease Spreads New ABR Created ($M) % of Portfolio ABR Better tenants, better rent 9
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WHY BRIXMOR ? VISIBILITY ON GROWTH More Upside Less Downside Significant revenue growth opportunity Lower relative retailer watchlist exposure (by GLA) • Historic under-investment and under-management • Below-market rent profile • Unmatched mark-to-market opportunity 10.3% 31% 9.0% $11.31 upside 7.8% 6.6% 5.8% 5.5% 5.1% $8.66 GLA (K SF) 4,449 2,304 Expiring anchor ABR PSF TTM new anchor WRI REG BRX FRT KIM DDR RPAI 2018 - 2021 with no lease ABR PSF remaining options Source: ISI 1 11
WHY BRIXMOR ? VISIBILITY ON GROWTH More Upside Less Downside Tailwinds from executed leasing Proactive risk reduction • $43 M of ABR from leases signed but not yet commenced Sears / Kmart Exposure Office Supply Exposure Commencing in period 1.3% Previously commenced 2.1% 29 77 ($M) $8 1.5% $36 55 $13 100% 0.5% $23 $23 10 83% 52% $0 2018 1H 2019 2H 2019+ 2018 1H 2019 2H 2019+ Number of Stores % of ABR Number of Stores % of ABR Expected Commencement At IPO Pro Forma 12
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WHY BRIXMOR ? HIGHLY ACCRETIVE REINVESTMENT OPPORTUNITIES Over $1 B of identified reinvestment opportunities • Multiple years of reinvestment at highly accretive yields Actively underway on Effectively pre-leased $330 M 1 Average incremental returns of 9% 1 → Over $180 M of value creation 2 of reinvestment projects Ramping to active pipeline of Will support annual reinvestment delivery of $150M - $200 M $400 - 450 M Represents an additional 150 – 250 bps of growth by 2019 → Annual value creation of $100 M 2 14
WHY BRIXMOR ? INVEST IN OUR ASSETS & DRIVE FUTURE GROWTH Substantial value creation At lower risk Effectively pre-leased Highly accretive returns Representative BRX Representative Redevelopment vs. Small project sizes / shorter timelines Redevelopment Ground-up Ground-up Only Development Development Incremental follow-on growth impact ~1/3 /3 the amount Total investment $200M $600M invested Small percent of TEV in program Yield ~9% ~7% Follow-on growth impact Residual cap-rate 6.0% 6.0% Same Value creation $100M $100M value creation 600 600 – 800 800 bps bps ↗ small shop occupancy improvement following reinvestment Risk of value destruction 78.4% Residual cap-rate 6% - 8% 6% - 8% Value creation $50 - $133M ($75) - $100M Small Shop Occupancy Potential Small Shop At Future Occupancy Following Redevelopments Reinvestment 15
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WHY BRIXMOR ? SELF-FUNDED PLAN & DISCIPLINED CAPITAL ALLOCATION Free cash flow Strategic investments • Free cash flow of $100 M funds $175 M of Reinvestment pipeline Leverage reduction accretive reinvestment while further reducing leverage Stock repurchase program initiated December 2017 Dispositions o To date, repurchased $39M, excluding commissions Selective acquisitions • Taking advantage of current liquidity in the transaction market to capture NAV o Execute on opportunities to build critical mass in attractive existing markets • Disciplined execution focused on maximizing risk- adjusted hold IRRs $600 M Exiting single asset markets Dispositions • 18 exited since January 2017 since January Elevating the efficiency and long-term 2017 growth profile of the Company Demographics below portfolio averages • Population (5-mile) ~35% below • Avg. HH income (5-mile) ~15% below 17
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WHY BRIXMOR ? ATTRACTIVE, WELL-COVERED DIVIDEND One of the highest yields in the sector with the best coverage Dividend yield and FFO payout ratio Annual dividend growth 10% 140% $1.10 6.7% 6.2% 8% $1.04 120% 5.3% 5.2% $0.98 6% 100% 3.5% $0.90 3.2% 80% 4% 75% $0.80 60% 66% 66% 63% 63% 61% 2% 56% 56% 54% 40% 0% 20% -2% 0% BRX REG FRT RPAI WRI KIM 2014 2015 2016 2017 2018E Payout Ratio Dividend Yield Source: Citi Research as of 7/31/2018 19
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WHY BRIXMOR ? BALANCE SHEET PROVIDING MAXIMUM FLEXIBILITY Attractive leverage profile Manageable near-term debt maturities ($M) $1,250 Secured Mortgages Term Loans Unsecured Notes Net debt + preferred / forward cash EBITDA $1,000 7.4 7.3 800% 6.9 $807 6.6 700% $700 5.8 $686 $750 $658 5.5 5.5 5.4 600% $608 $600 $500 $500 500% $500 $400 400% 300% $250 200% $11 100% $0 $0 0% 1 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+ RPAI REG WRI FRT BRX KRG DDR KIM Source: Citi Research as of 3/31/2018 Debt Statistics Leverage & Coverage Ratios Credit Ratings Weighted avg. stated interest rate 3.8% Net principal debt to Adjusted EBITDA 6.4x Fitch BBB- Stable Weighted avg. maturity 4.8 years Net principal debt to Cash Adjusted EBITDA 6.7x Moody’s Baa3 Stable Fixed / Variable 100% / 0% Fixed charge coverage 3.6x S&P BBB- Stable Unencumbered ABR 80.9% 21
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