Brixmor Property: An Under-The-Radar Inflation Hedge

Summary

  • BRX currently enjoys a trifecta of organic rent growth: high demand for retail space, plenty of available space in its portfolio, and below-average in-place rent rates.
  • While the market has turned down this year in the face of high inflation, BRX has stayed roughly flat.
  • BRX's rents are growing rapidly, which is leading to high-single-digit FFO per share growth as well.
  • FFO per share growth is expected to beat inflation over the next few years, and dividend growth is more than capable of doing the same given a very low payout ratio.
  • Looking for more investing ideas like this one? Get them exclusively at High Yield Landlord. Learn More »

Kroger Supermarket. The Kroger Co. is One of the World"s Largest Grocery Retailers.

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Thesis: Value-Add Approach Is Beating Inflation

In a December 2021 article, I described Brixmor Property Group's (NYSE:BRX) transformation over the last five years after a management shakeup in 2016. Here's the link to that

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This article was written by

20.43K Followers

Austin Rogers is a REIT specialist with a professional background in commercial real estate. He writes about high-quality dividend growth stocks with the goal of generating the safest growing passive income stream possible. Since his ideal holding period is "lifelong," his focus is on portfolio income growth rather than total returns.

Austin is a contributing author for the investing group High Yield Landlord, one of the largest real estate investment communities on Seeking Alpha, with thousands of members. It offers exclusive research on the global REIT sector, multiple real money portfolios, an active chat room, and direct access to the analysts. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in BRX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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