PRESENTATION Q U A R T E R E N D E D D E C E M B E R 3 1 , 2 0 1 - - PowerPoint PPT Presentation

INVESTOR

PRESENTATION

Q U A R T E R E N D E D D E C E M B E R 3 1 , 2 0 1 7

450 Lexington Ave New York, NY 10017 800.468.7526 BRIXMOR.COM

WHO IS BRIXMOR?

2

Highly visible internal growth with lower relative risk

• One of the largest open-air retail landlords in the US
• Fully integrated national platform focused on merchandising

centers to be relevant to communities served

• Core tenancy comprises highly productive retail partners

including grocers, value retailers and consumer oriented service providers

• Strong embedded internal growth potential in what is owned

and controlled

• Self-funded reinvestment pipeline with yields of ~10%
• Proven access to capital and flexible balance sheet
• Attractive, well-covered dividend yield

PORTFOLIO QUICK FACTS

Number of shopping centers 486 GLA 83M SF Average shopping center size 170K SF Percent billed 90.3% Percent leased 92.2% Percent leased – Anchors (≥ 10K SF) 95.5% Percent leased – Small shops (< 10K SF) 84.5% Average ABR PSF $13.47 4Q 2017 rent spread (new and renewal) 16.0% Average grocer sales PSF1 ~$550

FORWARD INTERNAL GROWTH

VISIBLE DRIVERS OF

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Sector leading leasing

353 353 612 773 1,188 1,541 2,920 3,195 29% 23% 19% 9% 11% 23% 34%

RPAI WRI FRT REG DDR KIM BRX New Lease GLA (K SF) New Lease Spreads

New lease productivity – TTM 1

$14 $15 $18 $31 $41 $42 3.9% 2.4% 2.8% 3.5% 4.1% 4.4%

RPAI FRT DDR REG KIM BRX New ABR Created ($M) % of Portfolio ABR

New ABR created – TTM 2

Visibility on future growth

• Rent basis and occupancy costs matter
• Historic under-investment and under-management has resulted in

below-market rent profile

• Significant mark-to-market opportunity across the portfolio,

particularly in anchor space – 5.0M SF of anchor leases expiring through 2021 with no remaining options at an ABR PSF at expiration of $8.78 – 2017 new anchor leases signed at an ABR PSF of $12.47

• Consistent new lease TI PSF costs

8.5% 14.1% 15.2% 13.2% $13.32 $11.72 $11.88 $12.14 2017 New Lease se ABR PSF $16.00

2018 2019 2020 2021 % of Leased GLA Expiring ABR PSF at Expiration

FORWARD INTERNAL GROWTH (CONTINUED)

VISIBLE DRIVERS OF

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Small shop occupancy opportunity

• Small shop occupancy at centers where a

redevelopment or repositioning has been completed in the past five years has improved 600 – 800bps – Creating $21M of incremental ABR

• Building value in small shop space by:

– Broadening tenant mix with strong local

• perators

– Leveraging new anchor leasing – Driving absorption through targeted marketing

• Future redevelopments are catalysts for improvement:

– Small shop occupancy in future redevelopment pipeline is 78.5%, 600bps below portfolio average

260 470 710 880

At completion 1yr after completion 2yrs after completion 3yrs after completion Small shop occupancy 1 year prior to completion vs.

Small shop occupancy change (bps) following reinvestment

78.5%

Small Shop Occupancy At Future Redevelopments Potential Small Shop Occupancy Following Reinvestment

↗

600 – 800bps

small shop occupancy improvement following reinvestment

RELEVANT TO CONSUMERS

Non-discretionary & value-oriented retail mix with strong

service component

• Well-suited for today’s consumer environment

Best-in-class retailers with significant growth plans Strong tenant credit profile with meaningful diversification

• 10 largest retailers account for only 17.6% of ABR
• Largest tenant, TJX, accounts for only 3.2% of ABR

PRODUCTIVE RETAILERS

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Increased Exposure Decreased Exposure

Proactive Tenant Management

TOP RETAILERS BY ABR

Retailer Stores % of GLA % of ABR ABR PSF Credit Rating (S&P/Moody’s) 90 3.4% 3.2% $10.68 A+ / A2 65 5.1% 3.1% 7.02 BBB / Baa1 155 2.1% 1.9% 10.40 BB+ / Ba1 37 2.0% 1.7% 9.38 NR 25 3.7% 1.4% 4.41 AA / Aa2 24 1.6% 1.4% 10.12 BBB/ Baa2 23 1.9% 1.4% 8.19 BB / Ba2 21 1.4% 1.3% 10.68 B+ / B1 35 1.2% 1.1% 11.01 A- / A3 33 1.0% 1.1% 12.87 BBB / Baa1

TOP 10 508 23.4% 17.6% $8.61

44 1.8% 1.0% 6.46 BBB / - 29 0.8% 1.0% 14.53 B / B1 13 0.7% 0.9% 15.73 B+ / B2 37 0.6% 0.9% 16.88 B / B2 15 0.7% 0.9% 13.47 BBB- / Baa1 32 0.8% 0.8% 11.16

• / B1

35 0.6% 0.8% 14.58 B+ / Ba3 14 0.7% 0.8% 13.77 NR 27 0.7% 0.7% 12.48 B+ / B1 26 0.7% 0.7% 11.77 BB+ / Baa2

TOP 20 780 31.5% 26.1% $9.51

Broad cross-section of retailers

• Non-discretionary & value-oriented retail with strong

complementary service component (by ABR)

THRIVING RETAILERS

GROWING TENANCY WITH

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BRX covers 200+ national & regional open-air retailers with plans to open ~13,000 net new stores

Dollar Store 3% Hobby & Party 4% Other Value Fashion 4% Home 6% Off-Price Apparel 6% General Merchandise… Health & Personal Care 8% Restaurants 13% Services 16% Grocery 17% Other (≤ 3%) 16%

Executing new leases with thriving retailers

• New leasing focused on thriving categories (by ABR)

Other Value Fashion 4% General Merchandise 5% Hobby & Party 6% Grocery 7% Restaurants 10% Off-Price Apparel 10% Home 12% Health & Personal Care 16% Services 17% Other (≤ 3%) 13%

50+ new national & regional retailers added to portfolio since May 2016

COMPETITIVE ADVANTAGES

PORTFOLIO COMPOSITION PROVIDES

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• ~70% of shopping centers are grocery-anchored

– 76% have an additional anchor

• Average sales of ~$550 PSF – 36% above the national average 1

– Average grocer occupancy costs below 2% 1

Flexible format, primarily grocery anchored (by ABR) 2 2%

Other

75%

Community / Neighborhood

13%

Power center

10%

Grocery-anchored regional center

Productive grocery anchors

National retailers account for 65% of portfolio ABR 19%

Local

65%

National

16%

Regional

Merchandise mix Retail format

Traditional Specialty Warehouse

Taking off-mall 8% 13% 10% 7% 7% 11% 10% 5% 2% 4% 4% 0% 1% < 1% 1% < 1%

Ross Burlington Lucky's Sprouts Fitness Kay Jewelers Panera Starbucks

BRX Share of New Stores BRX Share of Existing Retailer Fleet

CORE TENANCY

CAPTURING SHARE FROM

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Institutionalizing relationships

Brixmor’s Share of New Store Opening Plans (2018)

Fitness

REINVESTMENT

Breadth of opportunity

• Untapped potential to drive growth through reinvestment
• Future pipeline of > $1B; 45+ centers targeted
• Complimentary densification with 250+ outparcel opportunities

Attractive relative risk

• Low risk / high yield projects
• Substantially pre-leased
• Short execution timelines or multi-phased larger projects
• Funded primarily with free cash flow

Sustainable returns

• Expected annual spend run rate of $150 – 200M by 4Q 2018
• Requires active pipeline of ~$400M
• Expected incremental NOI yields of 9% - 11%
• Follow-on leasing enhances long-term growth rate

UNLOCKING VALUE THROUGH

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Value Creation Opportunity ($M)

Number Projects Net Estimated Costs1 Expected NOI Yield 1,2 In Process 47 $295 ~10% Completed YTD 26 $90 12% BRX Redevelopment Only Representative Ground-up Development Representative Redevelopment vs. Ground-up Development Total investment $200M $800M

1/4 the amount

invested Yield 10% 7% Residual cap-rate 6.0% 6.0% Value creation $133M $133M Same value creation Risk of value destruction Residual cap-rate 6% - 8% 6% - 8% Value creation $50 - $133M ($100) - $133M

Attractive redevelopment pipeline drives significant value creation & growth potential at lower risk

CAPITAL RECYCLING

PRUDENT & RESPONSIBLE

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Disciplined capital recycling to drive outperformance & create long-term value with attractive risk-adjusted returns

• Unlevered IRR focus
• Informed investment decisions based on

local market knowledge

Disciplined Capital Allocation

• 32 assets sold in 2017 for $356M
• Expect to continue to be a net seller in

2018

Accelerated Effort Significant Opportunity

• Lack of historical portfolio strategy
• Granular asset base: largest asset is <

2% of ABR

• Many vibrant markets not targeted by
• ther public REITs and large institutions

Holding an asset Buying the asset Underwriting

FINANCIAL

• Disciplined underwriting
• Risk-adjusted unlevered hold IRRs and

incremental returns

MARKET

• Operational and leasing advantages

when a significant landlord in a market

• Focus on exiting non-strategic markets

HUMAN CAPITAL

• Value of time spent versus value

created

STRATEGY

BALANCE SHEET

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Net debt + preferred / forward cash EBITDA1

5.1 5.3 5.5 6.3 6.8 6.9 7.6 7.8

REG RPAI WRI FRT BRX KRG DDR KIM

$185 $600 $658 $686 $500 $500 $807 $700 $608 $400 $11

$0 $250 $500 $750 $1,000 $1,250 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+

Secured Mortgages Term Loans Unsecured Notes

Debt Maturities ($M) Debt Statistics

Weighted avg. stated interest rate 3.8% Weighted avg. maturity 5.2 years Fixed / Variable 97% / 3% Unencumbered ABR 79.0%

Leverage & Coverage Ratios Credit Ratings

Net principal debt to Adjusted EBITDA 6.4x Net principal debt to Cash Adjusted EBITDA 6.8x Fixed charge coverage 3.6x Fitch BBB- Stable Moody’s Baa3 Stable S&P BBB- Stable

GUIDANCE

2017 2017 2018E 2019E 2019E Base rent 2.10% 1.75% – 2.25% 2.75% – 3.75% Provision for doubtful accounts 0.50% (0.50%) 0.00% Other 0.00% (0.25%) 0.25% Same Property NOI 2.60% 1.00% – 1.50% 3.00% – 4.00%

2018 8

• Base rent assumes 90bps of drag related to bankruptcies and

proactive terminations

• Redevelopment inflection point expected mid-year
• Provision for doubtful accounts reflects difficult year-over-year

comparison, primarily as a result of significant recoveries in 2017

• f previously reserved amounts
• “Other” reflects net recovery impact of lower average occupancy

driven by bankruptcies and proactive terminations

2019 2019

• Base rent assumes core growth of 2.25% – 2.75% and a

contribution from redevelopment of 0.50% – 1.00%

• “Other” reflects net recovery impact of higher average occupancy

Low High 2018E NAREIT FFO per diluted share, before prospective capital recycling 1 $1.99 $2.06 Prospective capital recycling (0.04) (0.02) 2018E NAREIT FFO per diluted share 1 $1.95 $2.04

Funds from operations guidance Same property NOI guidance

1. Does not include any expectations of additional one-time items, including, but not limited to, litigation, investigative and other non-routine legal expenses.

2018

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REDEVELOPMENTS

REPRESENTATIVE FUTURE

• Located directly across from UC Davis with 35K+ students
• 104K SF shopping center with potential to add 65K+ SF
• Merchandise with retailers relevant to student population &

enhance restaurant experience – Potential to add residential / student housing component → Net estimated costs of $40M → Expected NOI yield of 10% - 12% (including anticipated residential entitlement sales)

University Mall – Davis, CA

• Located in North Miami Beach with population density of 260K+
• 339K SF enclosed mall originally built in 1956
• De-mall center to drive rental rates with additional street

exposure

• Expand merchandise mix with potential addition of grocery,

fitness and entertainment & enhance restaurant experience → Net estimated costs of $60M → Expected NOI yield of ~9%

Mall at 163rd Street – Miami, FL

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COMMUNITIES

CENTERED ON

Committed & responsible employer

• 90% of Brixmor employees rated the

culture as ‘Positive’ in an Employee Satisfaction Survey

• Industry-leading benefits & perks
• Placed dedicated Facility Managers at

five key properties; all military veterans GREEN STAR RECIPIENT

Positive impact on local community

• Robust tenant engagement program
• Help retailers open quicker and operate

more efficiently

• Partner with local communities on events

and use of public spaces

Reduced environmental impact

• Solar: >10 MW renewable energy

installed or under development

• Smart irrigation: >40M gallons of water

saved annually

• Energy Efficiency: >100 LED projects

completed to-date

Delivering sustainable growth for our stakeholders through a relentless focus on the environmental, social and economic well-being of the communities we serve, our tenants and our employees

15

2014 2015 2016 2017

CAM electric consumption

CAM Electric Consumption vs Target

Target

GENERAL INFO & FUNDAMENTALS

REITs

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What is a REIT? A REIT, or Real Estate Investment Trust, is a company that owns, operates or finances income-producing real estate. Modeled after mutual funds, REITs give all investors access to the benefits of real estate investment along with the advantages of investing in a publicly traded stock. How to qualify as a REIT 1,2:  Invest at least 75% of total assets in real estate  Derive at least 75% of gross income from real estate investments  Must have a minimum of 100 shareholders and no more than 50% of shares held by five or fewer individuals

 Distribute at least 90% of taxable income to shareholders annually through dividends

– Nearly all REITs pay at least 100% to avoid taxation – Allows shareholders to share in a REITs cash flow growth

Key Metrics and Terminology 1

Earnings Metrics

Nareit FFO

• Most commonly accepted and reported measure of REIT operating performance
• Nareit FFO = Net income + Depreciation and Amortization -/+ gains/losses on depreciable property sales + JV adjustments

Operating Metrics

Same Property NOI

• Used to compare company’s core operations
• Typically includes properties that have had stable operations for at least one year, thereby excluding noise from development, redevelopment or other

value-add investment impacts Tenant Improvements

• Upon initiation of a new or renewal lease, landlords may offer potential tenants a build-out package to renovate or update the space to the tenant’s needs

Valuation Metrics

Value enhancing capital expenditures

• Total market value of a property, and all other real estate related income streams plus current assets and, if any, the development pipeline and land bank,

less total debt and preferred equity. To arrive at an estimated market value for the underlying real estate, the next four quarters of expected property NOI are capitalized using an appropriate “cap rate” which encapsulates growth, asset quality and risk. For valuation purposes, an investor can look at the current discount or premium that a stock is trading at relative to estimated NAV and can also compare NAV premium/discounts or absolute cap rates of peer companies. An “as of today” or “liquidation” metric, NAV has its fair share of shortcomings in that it typically excludes the expected value of future accretive investment opportunities as well as G&A impacts.

SOURCES

FOOTNOTES &

Page 2 Who is Brixmor? 1. Based on a combination of most recent tenant reported information and management estimates. Page 3 Visible Drivers of Forward Internal Growth 1. Data based on company filings as of 4Q 2017. Leasing spreads based on comparable leases/spaces only. FRT and REG comparable leases include those in which there was a former tenant. All other comparable leases include only those in which there was a former tenant within the prior year. 2. Data based on company filings as of 4Q 2017. Includes new, renewal and option leases executed in TTM and calculated as new ABR less old or prior ABR for comparable leases plus new ABR for non-comparable leases. FRT excludes options. Excludes WRI as data is not provided in company filings. Page 7 Portfolio Composition Provides Competitive Advantages 1. Based on a combination of most recent tenant reported information and management estimates. 2. Community Centers include properties with total GLA between 125K - 400K SF. Neighborhood Centers include properties with total GLA less than 125K SF. Grocery- Anchored Regional Centers include properties greater than 250K SF with small shop spaces accounting for less than 30% of total property GLA, and that have a traditional or specialty grocer at the property (either owned or non-owned). Power Centers include properties greater than 250K SF with small shop spaces accounting for less than 30% of total property GLA, and that do not have a traditional or specialty grocer at the property (either owned or non-owned). Other includes lifestyle centers, unanchored strip centers, and single tenant centers. Page 9 Unlocking Value Through Reinvestment 1. Represents gross project costs less any project specific credits (lease termination income or other ancillary credits). 2. NOI yield is calculated as the projected incremental NOI as a percentage of the incremental third party costs of a specified project, net of any project specific credits (i.e. lease termination income or other ancillary credits). Page 16 REITs – General Info & Fundamentals 1. Source: RBC Capital Markets. 2. Source: Nareit. 18 Page 11 Balance Sheet Strategy 1. Source: Citi Research.

DISCLAIMER

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Safe fe Harbor Langu nguage ge This document may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to the Company’s expectations regarding the performance of its business, its financial results, its liquidity and capital resources and other non-historical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.