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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from_____ to_____
Commission File Number: 001-36160 (Brixmor Property Group)
Commission File Number: 333-256637-01 (Brixmor Operating Partnership LP)

Brixmor Property Group Inc.
Brixmor Operating Partnership LP
(Exact Name of Registrant as Specified in Its Charter)
Maryland(Brixmor Property Group Inc.)45-2433192
Delaware(Brixmor Operating Partnership LP)80-0831163
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.)
450 Lexington Avenue, New York, New York 10017
(Address of Principal Executive Offices) (Zip Code)
212-869-3000
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareBRXNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Brixmor Property Group Inc. Yes No Brixmor Operating Partnership LP Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Brixmor Property Group Inc. Yes No Brixmor Operating Partnership LP Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Brixmor Property Group Inc.Brixmor Operating Partnership LP
Large accelerated filer
Non-accelerated filer Large accelerated filer Non-accelerated filer
Smaller reporting companyAccelerated filer Smaller reporting companyAccelerated filer
Emerging growth companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Brixmor Property Group Inc. Brixmor Operating Partnership LP

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Brixmor Property Group Inc. Yes No Brixmor Operating Partnership LP Yes No

(APPLICABLE ONLY TO CORPORATE ISSUERS)
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.
As of July 1, 2022, Brixmor Property Group Inc. had 299,669,016 shares of common stock outstanding.



EXPLANATORY NOTE
This report combines the quarterly reports on Form 10-Q for the period ended June 30, 2022 of Brixmor Property Group Inc. and Brixmor Operating Partnership LP. Unless stated otherwise or the context otherwise requires, references to the “Parent Company” or “BPG” mean Brixmor Property Group Inc. and its consolidated subsidiaries, and references to the “Operating Partnership” mean Brixmor Operating Partnership LP and its consolidated subsidiaries. Unless the context otherwise requires, the terms “the Company,” “Brixmor,” “we,” “our,” and “us” mean the Parent Company and the Operating Partnership, collectively.
The Parent Company is a real estate investment trust (“REIT”) that owns 100% of the limited liability company interests of BPG Subsidiary LLC (“BPG Sub”), which, in turn, is the sole member of Brixmor OP GP LLC (the “General Partner”), the sole general partner of the Operating Partnership. As of June 30, 2022, the Parent Company beneficially owned, through its direct and indirect interest in BPG Sub and the General Partner, 100% of the outstanding partnership common units (the “OP Units”) in the Operating Partnership.
The Company believes combining the quarterly reports on Form 10-Q of the Parent Company and the Operating Partnership into this single report:

Enhances investors’ understanding of the Parent Company and the Operating Partnership by enabling investors to view the business as a whole, in the same manner as management views and operates the business;
Eliminates duplicative disclosure and provides a more streamlined and readable presentation; and
Creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.
Management operates the Parent Company and the Operating Partnership as one business. Because the Operating Partnership is managed by the Parent Company, and the Parent Company conducts substantially all of its operations through the Operating Partnership, the Parent Company’s executive officers are the Operating Partnership’s executive officers, and although, as a partnership, the Operating Partnership does not have a board of directors, we refer to the Parent Company’s board of directors as the Operating Partnership’s board of directors.
We believe it is important to understand the few differences between the Parent Company and the Operating Partnership in the context of how the Parent Company and the Operating Partnership operate as a consolidated company. The Parent Company is a REIT, whose only material asset is its indirect interest in the Operating Partnership. As a result, the Parent Company does not conduct business itself other than issuing public equity from time to time. The Parent Company does not incur any material indebtedness. The Operating Partnership holds substantially all of our assets. Except for net proceeds from public equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for OP Units, the Operating Partnership generates all capital required by the Company’s business. Sources of this capital include the Operating Partnership’s operations and its direct or indirect incurrence of indebtedness.
Equity, capital, and non-controlling interests are the primary areas of difference between the unaudited Condensed Consolidated Financial Statements of the Parent Company and those of the Operating Partnership. The Operating Partnership’s capital currently includes OP Units owned by the Parent Company through BPG Sub and the General Partner and has in the past, and may in the future, include OP Units owned by third parties. OP Units owned by third parties, if any, are accounted for in capital in the Operating Partnership’s financial statements and outside of equity in non-controlling interests in the Parent Company’s financial statements.
The Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have material assets other than its indirect interest in the Operating Partnership. Therefore, while equity, capital, and non-controlling interests may differ as discussed above, the assets and liabilities of the Parent Company and the Operating Partnership are materially the same on their respective financial statements.
In order to highlight the differences between the Parent Company and the Operating Partnership, there are sections of this report that separately discuss the Parent Company and the Operating Partnership, including separate financial statements (but combined footnotes), separate controls and procedures sections, separate certification of periodic report under Section 302 of the Sarbanes-Oxley Act of 2002, and separate certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. In the sections that combine disclosure for the Parent Company and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the Company.
i


TABLE OF CONTENTS
Item No.Page
Part I - FINANCIAL INFORMATION
1.
Financial Statements
Brixmor Property Group Inc. (unaudited)
Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021
Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2022 and 2021
Condensed Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, 2022 and 2021
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021
Brixmor Operating Partnership LP (unaudited)
Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021
Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2022 and 2021
Condensed Consolidated Statements of Changes in Capital for the Three and Six Months Ended June 30, 2022 and 2021
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021
Brixmor Property Group Inc. and Brixmor Operating Partnership LP (unaudited)
Notes to Condensed Consolidated Financial Statements
2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
3.
Quantitative and Qualitative Disclosures about Market Risk
4.
Controls and Procedures
Part II - OTHER INFORMATION
1.
Legal Proceedings
1A.
Risk Factors
2.
Unregistered Sales of Equity Securities and Use of Proceeds
3.
Defaults Upon Senior Securities
4.
Mine Safety Disclosures
5.
Other Information
6.
Exhibits



ii



Forward-Looking Statements

This report 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 our expectations regarding the performance of our business, our financial results, our 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,” “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. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to those described under the sections entitled “Risk Factors” in our Form 10-K for the year ended December 31, 2021 and in this report, as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at https://www.sec.gov. These factors include (1) changes in national, regional, and local economies, due to global events such as international military conflicts, international trade disputes, a foreign debt crisis, or foreign currency volatility, or due to domestic issues, such as government policies and regulations, tariffs, energy prices, market dynamics, rising interest rates, inflation, or unemployment, or limited growth in consumer income or spending; (2) local real estate market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in our Portfolio; (3) competition from other available properties or e-commerce, and the attractiveness of properties in our Portfolio to our tenants; (4) disruption and/or consolidation in the retail sector, the financial stability of our tenants, and the overall financial condition of large retailing companies, including their ability to pay rent and/or expense reimbursements that are due to us; (5) in the case of percentage rents, the sales volume of our tenants; (6) increases in property operating expenses, including common area expenses, utilities, insurance, and real estate taxes, which are relatively inflexible and generally do not decrease if revenue or occupancy decrease; (7) increases in the costs to repair, renovate, and re-lease space; (8) earthquakes, wildfires, tornadoes, hurricanes, damage from rising sea levels due to climate change, other natural disasters, epidemics and/or pandemics, including the current pandemic of the novel coronavirus (“COVID-19”), civil unrest, terrorist acts, or acts of war, any of which may result in uninsured or underinsured losses; and (9) changes in laws and governmental regulations, including those governing usage, zoning, the environment, and taxes. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report and in our other periodic filings. The forward-looking statements speak only as of the date of this report, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except to the extent otherwise required by law.
iii


PART I - FINANCIAL INFORMATION

Item 1.    Financial Statements

BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited, in thousands, except share information)
June 30,
2022
December 31,
2021
Assets
Real estate
Land$1,834,558 $1,773,448 
Buildings and improvements8,992,989 8,654,966 
10,827,547 10,428,414 
Accumulated depreciation and amortization(2,885,202)(2,813,329)
Real estate, net7,942,345 7,615,085 
Cash and cash equivalents16,828 296,632 
Restricted cash11,928 1,111 
Marketable securities19,661 20,224 
Receivables, net245,459 234,873 
Deferred charges and prepaid expenses, net151,897 143,503 
Real estate assets held for sale23,201 16,131 
Other assets58,406 49,834 
Total assets$8,469,725 $8,377,393 
Liabilities
Debt obligations, net$5,148,480 $5,164,518 
Accounts payable, accrued expenses and other liabilities518,252 494,529 
Total liabilities5,666,732 5,659,047 
Commitments and contingencies (Note 15)  
Equity
Common stock, $0.01 par value; authorized 3,000,000,000 shares; 308,796,008 and 306,337,045
   shares issued and 299,669,016 and 297,210,053 shares outstanding
2,997 2,972 
Additional paid-in capital3,279,775 3,231,732 
Accumulated other comprehensive income (loss)2,298 (12,674)
Distributions in excess of net income(482,077)(503,684)
Total equity2,802,993 2,718,346 
Total liabilities and equity$8,469,725 $8,377,393 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


1


BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Revenues
Rental income$305,898 $286,933 $604,260 $563,394 
Other revenues233 91 500 3,376 
Total revenues306,131 287,024 604,760 566,770 
Operating expenses
Operating costs34,497 28,755 69,293 60,140 
Real estate taxes42,304 42,257 83,944 85,145 
Depreciation and amortization85,137 81,212 169,359 164,632 
Impairment of real estate assets7 431 4,597 1,898 
General and administrative29,702 26,461 57,702 51,106 
Total operating expenses191,647 179,116 384,895 362,921 
Other income (expense)
Dividends and interest35 104 110 191 
Interest expense(47,886)(49,689)(95,208)(98,683)
Gain on sale of real estate assets22,988 32,603 44,899 38,367 
Loss on extinguishment of debt, net(221)(32)(221)(1,229)
Other(1,609)(466)(2,148)304 
Total other expense(26,693)(17,480)(52,568)(61,050)
Net income$87,791 $90,428 $167,297 $142,799 
Net income per common share:
Basic$0.29 $0.30 $0.56 $0.48 
Diluted$0.29 $0.30 $0.56 $0.48 
Weighted average shares:
Basic299,992 297,216 299,246 297,196 
Diluted301,094 298,277 300,360 298,222 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2


BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited, in thousands)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Net income$87,791 $90,428 $167,297 $142,799 
Other comprehensive income (loss)
Change in unrealized gain on interest rate swaps, net (Note 6)4,100 2,832 15,381 8,498 
Change in unrealized loss on marketable securities(80)(59)(409)(153)
Total other comprehensive income4,020 2,773 14,972 8,345 
Comprehensive income$91,811 $93,201 $182,269 $151,144 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


3


BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited, in thousands, except per share data)
Common Stock
NumberAmountAdditional Paid-in Capital
Accumulated
Other
Comprehensive
Loss
Distributions in Excess of Net IncomeTotal
Beginning balance, January 1, 2021296,494 $2,965 $3,213,990 $(28,058)$(508,196)$2,680,701 
Common stock dividends ($0.215 per common share)
— — — — (65,120)(65,120)
Equity based compensation expense— — 2,792 — — 2,792 
Other comprehensive income— — — 5,572 — 5,572 
Issuance of common stock452 4 (4)— —  
Share-based awards retained for taxes— — (5,113)— — (5,113)
Net income— — — — 52,371 52,371 
Ending balance, March 31, 2021296,946 2,969 3,211,665 (22,486)(520,945)2,671,203 
Common stock dividends ($0.215 per common share)
— — — — (64,344)(64,344)
Equity based compensation expense— — 4,543 — — 4,543 
Other comprehensive income— — — 2,773 — 2,773 
Issuance of common stock32 1 (1)— —  
Share-based awards retained for taxes— — (259)— — (259)
Net income— — — — 90,428 90,428 
Ending balance, June 30, 2021296,978 $2,970 $3,215,948 $(19,713)$(494,861)$2,704,344 
Beginning balance, January 1, 2022297,210 $2,972 $3,231,732 $(12,674)$(503,684)$2,718,346 
Common stock dividends ($0.240 per common share)
— — — — (73,156)(73,156)
Equity based compensation expense— — 4,620 — — 4,620 
Other comprehensive income— — — 10,952 — 10,952 
Issuance of common stock2,278 23 43,825 — — 43,848 
Share-based awards retained for taxes— — (10,458)— — (10,458)
Net income— — — — 79,506 79,506 
Ending balance, March 31, 2022299,488 2,995 3,269,719 (1,722)(497,334)2,773,658 
Common stock dividends ($0.240 per common share)
— — — — (72,534)(72,534)
Equity based compensation expense— — 6,500 — — 6,500 
Other comprehensive income— — — 4,020 — 4,020 
Issuance of common stock181 2 3,558 — — 3,560 
Share-based awards retained for taxes— — (2)— — (2)
Net income— — — — 87,791 87,791 
Ending balance, June 30, 2022299,669 $2,997 $3,279,775 $2,298 $(482,077)$2,802,993 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


4


BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Six Months Ended June 30,
20222021
Operating activities:
Net income$167,297 $142,799 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization169,359 164,632 
Accretion of debt premium and discount, net(1,432)(1,435)
Deferred financing cost amortization3,505 3,764 
Accretion of above- and below-market leases, net(5,932)(7,125)
Tenant inducement amortization and other2,035 3,012 
Impairment of real estate assets4,597 1,898 
Gain on sale of real estate assets(44,899)(38,367)
Equity based compensation 10,343 6,791 
Loss on extinguishment of debt, net221 1,229 
Changes in operating assets and liabilities:
Receivables, net(10,503)8,706 
Deferred charges and prepaid expenses(22,800)(13,270)
Other assets(169)(208)
Accounts payable, accrued expenses and other liabilities2,494 2,436 
Net cash provided by operating activities274,116 274,862 
Investing activities:
Improvements to and investments in real estate assets(146,953)(135,253)
Acquisitions of real estate assets(409,688)(66,716)
Proceeds from sales of real estate assets139,981 99,748 
Purchase of marketable securities(14,321)(7,915)
Proceeds from sale of marketable securities14,404 9,100 
Net cash used in investing activities(416,577)(101,036)
Financing activities:
Repayment of borrowings under unsecured revolving credit facility(360,000) 
Proceeds from borrowings under unsecured revolving credit facility600,000  
Proceeds from unsecured notes 349,360 
Repayment of borrowings under unsecured term loans and notes(250,000)(350,000)
Deferred financing and debt extinguishment costs(8,223)(3,414)
Proceeds from issuances of common shares47,407  
Distributions to common stockholders (145,250)(129,101)
Repurchases of common shares in conjunction with equity award plans(10,460)(5,372)
Net cash used in financing activities(126,526)(138,527)
Net change in cash, cash equivalents and restricted cash(268,987)35,299 
Cash, cash equivalents and restricted cash at beginning of period297,743 370,087 
Cash, cash equivalents and restricted cash at end of period$28,756 $405,386 
Reconciliation to consolidated balance sheets:
Cash and cash equivalents$16,828 $404,144 
Restricted cash11,928 1,242 
Cash, cash equivalents and restricted cash at end of period$28,756 $405,386 
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amount capitalized of $1,432 and $1,817
$93,596 $95,523 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


5


BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited, in thousands, except unit information)
June 30,
2022
December 31,
2021
Assets
Real estate
Land$1,834,558 $1,773,448 
Buildings and improvements8,992,989 8,654,966 
10,827,547 10,428,414 
Accumulated depreciation and amortization(2,885,202)(2,813,329)
Real estate, net7,942,345 7,615,085 
Cash and cash equivalents16,639 281,474 
Restricted cash11,928 1,111 
Marketable securities19,661 20,224 
Receivables, net245,459 234,873 
Deferred charges and prepaid expenses, net151,897 143,503 
Real estate assets held for sale23,201 16,131 
Other assets58,406 49,834 
Total assets$8,469,536 $8,362,235 
Liabilities
Debt obligations, net$5,148,480 $5,164,518 
Accounts payable, accrued expenses and other liabilities518,252 494,529 
Total liabilities5,666,732 5,659,047 
Commitments and contingencies (Note 15)  
Capital
Partnership common units; 308,796,008 and 306,337,045 units issued and 299,669,016 and
   297,210,053 units outstanding
2,800,506 2,715,863 
Accumulated other comprehensive income (loss)2,298 (12,675)
Total capital2,802,804 2,703,188 
Total liabilities and capital$8,469,536 $8,362,235 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



6


BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Revenues
Rental income$305,898 $286,933 $604,260 $563,394 
Other revenues233 91 500 3,376 
Total revenues306,131 287,024 604,760 566,770 
Operating expenses
Operating costs34,497 28,755 69,293 60,140 
Real estate taxes42,304 42,257 83,944 85,145 
Depreciation and amortization85,137 81,212 169,359 164,632 
Impairment of real estate assets7 431 4,597 1,898 
General and administrative29,702 26,461 57,702 51,106 
Total operating expenses191,647 179,116 384,895 362,921 
Other income (expense)
Dividends and interest35 104 110 191 
Interest expense(47,886)(49,689)(95,208)(98,683)
Gain on sale of real estate assets22,988 32,603 44,899 38,367 
Loss on extinguishment of debt, net(221)(32)(221)(1,229)
Other(1,609)(466)(2,148)304 
Total other expense(26,693)(17,480)(52,568)(61,050)
Net income$87,791 $90,428 $167,297 $142,799 
Net income per common unit:
Basic$0.29 $0.30 $0.56 $0.48 
Diluted$0.29 $0.30 $0.56 $0.48 
Weighted average units:
Basic299,992 297,216 299,246 297,196 
Diluted301,094 298,277 300,360 298,222 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7


BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited, in thousands)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Net income$87,791 $90,428 $167,297 $142,799 
Other comprehensive income (loss)
Change in unrealized gain on interest rate swaps, net (Note 6)4,100 2,832 15,381 8,498 
Change in unrealized loss on marketable securities(80)(59)(409)(153)
Total other comprehensive income4,020 2,773 14,972 8,345 
Comprehensive income$91,811 $93,201 $182,269 $151,144 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

8


BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL
(Unaudited, in thousands)
Partnership Common Units
Accumulated
Other
Comprehensive
Loss
Total
Beginning balance, January 1, 2021$2,698,746 $(28,059)$2,670,687 
Distributions to partners(65,120)— (65,120)
Equity based compensation expense2,792 — 2,792 
Other comprehensive income— 5,572 5,572 
Issuance of OP Units —  
Share-based awards retained for taxes(5,113)— (5,113)
Net income52,371 — 52,371 
Ending balance, March 31, 20212,683,676 (22,487)2,661,189 
Distributions to partners(64,344)— (64,344)
Equity based compensation expense4,543 — 4,543 
Other comprehensive income— 2,773 2,773 
Issuance of OP Units —  
Share-based awards retained for taxes(259)— (259)
Net income90,428 — 90,428 
Ending balance, June 30, 2021$2,714,044 $(19,714)$2,694,330 
Beginning balance, January 1, 2022$2,715,863 $(12,675)$2,703,188 
Distributions to partners(64,527)— (64,527)
Equity based compensation expense4,620 — 4,620 
Other comprehensive income— 10,953 10,953 
Issuance of OP Units43,848 — 43,848 
Share-based awards retained for taxes(10,458)— (10,458)
Net income79,506 — 79,506 
Ending balance, March 31, 20222,768,852 (1,722)2,767,130 
Distributions to partners(66,195)— (66,195)
Equity based compensation expense6,500 — 6,500 
Other comprehensive income— 4,020 4,020 
Issuance of OP Units3,560 — 3,560 
Share-based awards retained for taxes(2)— (2)
Net income87,791 — 87,791 
Ending balance, June 30, 2022$2,800,506 $2,298 $2,802,804 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


9


BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Six Months Ended June 30,
20222021
Operating activities:
Net income$167,297 $142,799 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization169,359 164,632 
Accretion of debt premium and discount, net(1,432)(1,435)
Deferred financing cost amortization3,505 3,764 
Accretion of above- and below-market leases, net(5,932)(7,125)
Tenant inducement amortization and other2,035 3,012 
Impairment of real estate assets4,597 1,898 
Gain on sale of real estate assets(44,899)(38,367)
Equity based compensation 10,343 6,791 
Loss on extinguishment of debt, net221 1,229 
Changes in operating assets and liabilities:
Receivables, net(10,503)8,706 
Deferred charges and prepaid expenses(22,800)(13,270)
Other assets(169)(208)
Accounts payable, accrued expenses and other liabilities2,494 2,436 
Net cash provided by operating activities274,116 274,862 
Investing activities:
Improvements to and investments in real estate assets(146,953)(135,253)
Acquisitions of real estate assets(409,688)(66,716)
Proceeds from sales of real estate assets139,981 99,748 
Purchase of marketable securities(14,321)(7,915)
Proceeds from sale of marketable securities14,404 9,100 
Net cash used in investing activities(416,577)(101,036)
Financing activities:
Repayment of borrowings under unsecured revolving credit facility(360,000) 
Proceeds from borrowings under unsecured revolving credit facility600,000  
Proceeds from unsecured notes 349,360 
Repayment of borrowings under unsecured term loans and notes(250,000)(350,000)
Deferred financing and debt extinguishment costs(8,223)(3,414)
Proceeds from issuances of OP Units47,407  
Partner distributions and repurchases of OP Units(140,741)(134,473)
Net cash used in financing activities(111,557)(138,527)
Net change in cash, cash equivalents and restricted cash(254,018)35,299 
Cash, cash equivalents and restricted cash at beginning of period282,585 360,073 
Cash, cash equivalents and restricted cash at end of period$28,567 $395,372 
Reconciliation to consolidated balance sheets:
Cash and cash equivalents$16,639 $394,130 
Restricted cash11,928 1,242 
Cash, cash equivalents and restricted cash at end of period$28,567 $395,372 
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amount capitalized of $1,432 and $1,817
$93,596 $95,523 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



10


BRIXMOR PROPERTY GROUP INC. AND BRIXMOR OPERATING PARTNERSHIP LP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, dollars in thousands, unless otherwise stated)

1. Nature of Business and Financial Statement Presentation
Description of Business
Brixmor Property Group Inc. and subsidiaries (collectively, the “Parent Company”) is an internally-managed real estate investment trust (“REIT”). Brixmor Operating Partnership LP and subsidiaries (collectively, the “Operating Partnership”) is the entity through which the Parent Company conducts substantially all of its operations and owns substantially all of its assets. The Parent Company owns 100% of the limited liability company interests of BPG Subsidiary LLC (“BPG Sub”), which, in turn, is the sole member of Brixmor OP GP LLC (the “General Partner”), the sole general partner of the Operating Partnership. The Parent Company engages in the ownership, management, leasing, acquisition, disposition, and redevelopment of retail shopping centers through the Operating Partnership, and has no other substantial assets or liabilities other than through its investment in the Operating Partnership. The Parent Company, the Operating Partnership, and their controlled subsidiaries on a consolidated basis (collectively, the “Company” or “Brixmor”) owns and operates one of the largest publicly-traded open-air retail portfolios by gross leasable area (“GLA”) in the United States (“U.S.”), comprised primarily of community and neighborhood shopping centers. As of June 30, 2022, the Company’s portfolio was comprised of 379 shopping centers (the “Portfolio”) totaling approximately 67 million square feet of GLA. The Company’s high-quality national Portfolio is primarily located within established trade areas in the top 50 Metropolitan Statistical Areas in the U.S., and its shopping centers are primarily anchored by non-discretionary and value-oriented retailers, as well as consumer-oriented service providers.

The Company does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company has a single reportable segment for disclosure purposes in accordance with U.S. generally accepted accounting principles (“GAAP”).

Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the unaudited Condensed Consolidated Financial Statements for the periods presented have been included. The operating results for the periods presented are not necessarily indicative of the results that may be expected for a full fiscal year. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2021 and accompanying notes included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 7, 2022.

Principles of Consolidation
The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Parent Company, the Operating Partnership, each of their wholly owned subsidiaries, and all other entities in which they have a controlling financial interest. All intercompany transactions have been eliminated.

Income Taxes
Brixmor Property Group Inc. has elected to qualify as a REIT in accordance with the Internal Revenue Code of 1986, as amended (the “Code”). To qualify as a REIT, Brixmor Property Group Inc. must meet several organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains. Management intends to continue to satisfy these requirements and maintain Brixmor Property Group Inc.’s REIT status.

As a REIT, Brixmor Property Group Inc. generally will not be subject to U.S. federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income as defined under the Code. Brixmor Property Group Inc. conducts substantially all of its operations through the Operating Partnership, which is organized as a limited partnership and treated as a pass-through entity for U.S. federal tax purposes. Therefore, U.S.
11


federal income taxes do not materially impact the unaudited Condensed Consolidated Financial Statements of the Company.

If Brixmor Property Group Inc. fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal taxes at regular corporate rates and may not be able to qualify as a REIT for the four subsequent taxable years. Even if Brixmor Property Group Inc. qualifies for taxation as a REIT, Brixmor Property Group Inc. is subject to certain state and local taxes on its income and property, and to U.S. federal income and excise taxes on its undistributed taxable income as well as other income items, as applicable.

Brixmor Property Group Inc. has elected to treat certain of its subsidiaries as taxable REIT subsidiaries (each a “TRS”), and Brixmor Property Group Inc. may in the future elect to treat newly formed and/or other existing subsidiaries as TRSs. A TRS may participate in non-real estate related activities and/or perform non-customary services for tenants and is subject to certain limitations under the Code. A TRS is subject to U.S. federal, state, and local income taxes at regular corporate rates. Income taxes related to Brixmor Property Group Inc.’s TRSs do not materially impact the unaudited Condensed Consolidated Financial Statements of the Company.

The Company has considered the tax positions taken for the open tax years and has concluded that no provision for income taxes related to uncertain tax positions is required in the Company’s unaudited Condensed Consolidated Financial Statements as of June 30, 2022 and December 31, 2021. Open tax years generally range from 2018 through 2021 but may vary by jurisdiction and issue. The Company recognizes penalties and interest accrued related to unrecognized tax benefits as income tax expense, which is included in Other on the Company’s unaudited Condensed Consolidated Statements of Operations.

New Accounting Pronouncements
Any recently issued accounting standards or pronouncements have been excluded as they either are not relevant to the Company, or they are not expected to have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company.

2. Acquisition of Real Estate
During the six months ended June 30, 2022, the Company acquired the following assets, in separate transactions:
Description(1)
LocationMonth AcquiredGLA
Aggregate Purchase Price(2)
Brea GatewayBrea, CAJan-22181,819 $83,991 
Land at Cobblestone VillageSt. Augustine, FLJan-22N/A1,661 
Arboretum VillageDallas, TXJan-2295,354 46,330 
Ravinia PlazaOrland Park, ILFeb-22101,800 26,160 
Elmhurst CrossingElmhurst, ILApr-22347,503 75,096 
North Riverside PlazaBerwyn, ILApr-22383,884 60,114 
West U MarketplaceHouston, TXApr-2260,136 33,741 
Waterford Commons - Ruby TuesdayWaterford, CTMay-226,781 1,574 
Lake Pointe VillageSugarland, TXJun-22162,263 80,971 
Adjustments related to previously acquired assetsVariousVariousN/A50 
1,339,540 $409,688 
(1)No debt was assumed related to any of the listed acquisitions.
(2)Aggregate purchase price includes $2.0 million of transaction costs, offset by $2.9 million of closing credits.








12


During the six months ended June 30, 2021, the Company acquired the following assets, in separate transactions:
Description(1)
LocationMonth AcquiredGLA
Aggregate Purchase Price(2)
Land at Ellisville Square (3)
Ellisville, MOJan-21N/A$2,014 
Outparcel adjacent to Cobblestone VillageSt. Augustine, FLFeb-215,040 1,520 
Land associated with Westgate PlazaWestfield, MAMar-21N/A245 
Center of Bonita SpringsBonita Springs, FLApr-21281,394 48,061 
Champlin MarketplaceChamplin, MNJun-2191,970 14,876 
378,404 $66,716 
(1)No debt was assumed related to any of the listed acquisitions.
(2)Aggregate purchase price includes $0.5 million of transaction costs, offset by $1.4 million of closing credits.
(3)The Company terminated a ground lease and acquired a land parcel.

The aggregate purchase price of the assets acquired during the six months ended June 30, 2022 and 2021, respectively, has been allocated as follows:
Six Months Ended June 30,
Assets20222021
Land$84,361 $17,669 
Buildings294,241 38,082 
Building and tenant improvements33,352 7,128 
Above-market leases(1)
701 149 
In-place leases(2)
29,607 5,523 
Total assets acquired$442,262 $68,551 
Liabilities
Below-market leases(3)
$30,748 $1,835 
Other liabilities1,826  
Total liabilities32,574 1,835 
Net assets acquired$409,688 $66,716 
(1)The weighted average amortization period at the time of acquisition for above-market leases related to assets acquired during the six months ended June 30, 2022 was