UBS Starts Brixmor Property (BRX) at Buy

UBS analyst Michael Goldsmith initiates coverage on Brixmor Property (NYSE: BRX) with a Buy rating and a price target of $29.00.

The analyst comments: "Our Buy on Brixmor reflects visibility into mid-single digit FFO growth at an attractive valuation. We are confident in BRX's trajectory as its elevated Signed Not Opened pipeline of 410 bps (peer avg of 320 bps) provides line of sight into future rent growth. Further, BRX is leasing at rates above existing 2026 expirations by 16% & 2027 by 13%. This is complemented by a robust redevelopment pipeline with 37 ongoing projects totaling $391 mm generating returns of 10%+. These factors drive our forecasted same property NOI growth over the next 3 years of 4.5% (peer avg of 3.8%) & modeled FFO/sh in 2026 of $2.36 (cons. $2.33) and 2027 of $2.48 (cons. $2.43). A regression of Retail REIT FFO earnings growth on a 2-yr stack vs. valuation (r=0.64) suggests BRX's expected FFO growth deserves a multiple of 13.5x, above its current valuation of 11.1x. BRX's shares trade at a discount to Shopping Center peers of -15% (5-yr avg of -18%) despite faster growth. We see valuation upside as BRX's earnings model is upheld."

For an analyst ratings summary and ratings history on Brixmor Property click here. For more ratings news on Brixmor Property click here.

Shares of Brixmor Property closed at $25.61 yesterday.

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