NEW YORK, Oct. 27, 2014 /PRNewswire/ -- Brixmor Property Group Inc. (NYSE: BRX) today provided an update on its ongoing program to maximize value in its shopping center portfolio. These initiatives involve upgrading its centers' merchandise mix with strong, best-in-class anchors to drive higher sales, traffic and small shop leasing, while elevating center appeal to improve rent levels and shopping center net operating income.

Since July of 2011 and continuing through its initial public offering in late 2013 to today, the Company has intensified its focus on enhancing the quality of its assets and improving the customer experience through a unified organizational effort known as "Raising the Bar." These strategic leasing, anchor space repositioning and redevelopment initiatives are illustrated in a series of case studies in a presentation entitled "Raising the Bar – An Organizational Focus on Shopping Center Transformation."  The presentation can be accessed at www.brixmor.com in the Investors section and includes examples of both transformative anchor leasing and of the follow-on leasing resulting from upgrades to an asset's merchandise mix. 

During that time period, the Company executed 285 new anchor leases, which in turn accelerated follow-on small shop leasing at 179 of its properties.  The results of the program to date have been reflected in strong rent levels for new lease signings at $20.35 per square foot as compared with in-place rents of $12.10 per square foot.  These actions have significantly transformed the property merchandise mix and tenant quality, driving improvement in net operating income and asset value.  The Company estimates that capitalization rates have improved by as much as 250 basis points for these assets.  An additional 160 shopping centers offering similar rent spread opportunities have been identified as candidates for the "Raising the Bar" initiative over the next five years.

Michael Carroll, Brixmor's Chief Executive Officer, stated, "The continuous efforts of our "Raising the Bar" campaign serve as the primary catalyst for transforming our asset base, increasing both operating cash flow and the value assigned to that cash flow though improvements in tenant and merchandise mix.  We believe the significant embedded value creation opportunities in our portfolio position us well for further growth and value creation into the next decade."

Some of the properties featured in the aforementioned presentation include:

Transformative Anchor Leasing

• Esplanade Shopping Center, Oxnard, California – remerchandised anchor vacancies with Walmart Neighborhood Market and Dick's Sporting Goods. As a result, new leases are being signed at $38.00 per square foot, above the in-place rents of $19.00 per square foot.
• Dalewood Shopping Center, New York, New York – remerchandised center with specialty grocers H-Mart and Mrs. Green's Natural Market. As a result, new leases are being signed at $42.00 per square foot, above the in-place rents of $31.00 per square foot.

Follow-On Leasing

• Hampton Village Centre, Detroit, Michigan – following the addition of DSW and Ulta, follow-on leases executed with American Eagle Factory, Charming Charlie, Christopher & Banks, Five Below, Justice / Brothers combination store, Kirkland's and, most recently, Old Navy. As a result, new leases are being signed at $22.00 per square foot, above the in-place rents of $16.00 per square foot.
• Roosevelt Mall, Philadelphia, Pennsylvania – following the addition of Ross Dress for Less, 13 follow-on leases executed with retailers including Chipotle, DXL Destination XL, The Vitamin Shoppe, Verizon and Xfinity (Comcast). As a result, new leases are being signed at $51.00 per square foot, above the in-place rents of $31.00 per square foot.

About Brixmor Property Group
Brixmor owns and operates the nation's largest wholly owned portfolio of grocery-anchored community and neighborhood shopping centers, with 522 properties aggregating approximately 87 million square feet of gross leasable area located primarily across the top 50 U.S. metro markets.  Brixmor leverages its national footprint, local market knowledge and operational expertise to support the growth of its retail tenants. The Company is focused on maximizing the value of its portfolio through its extensive leasing capabilities and anchor space repositioning / redevelopment platform. Headquartered in New York City, the Company is the largest landlord to The TJX Companies and The Kroger Company.  For additional information, please visit www.brixmor.com.

Safe Harbor Language
This press release 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, 2013, 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.

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SOURCE Brixmor Property Group Inc.