Conor Peaks

Conor Peaks asked about the planned volume of refurbishment and remodeling for 2026 compared to 2025, inquiring about a potential drop in activity, and also questioned the company's strategy regarding interest rate swaps for 2026.

Answer

EVP and Chief Investment Officer Matt McGraner clarified the renovation numbers, stating the plan is for approximately 1,700 units (300 full, 400 partial, 600 washer/dryer installs), similar to 2025, with potential for 1,500 additional bespoke upgrades if market conditions improve. CFO and EVP-Finance Paul Richards explained that the company is currently holding off on additional swaps due to a divided Fed dot plot and expectations of more rate cuts than the swap market is pricing, continuously re-evaluating rates.

Conor Peaks with Deutsche Bank inquired about the projected volume of refurbishment and remodeling units for 2026 compared to 2025, and the company's strategy regarding interest rate swaps given current market conditions and expected rate cuts.

Answer

Executive Vice President and Chief Investment Officer Matt McGraner clarified the 2026 plan includes 300 full and 400 partial upgrades, totaling around 1,700 units, with potential for 1,500 additional bespoke upgrades if market conditions improve. CFO and Executive Vice President Paul Richards explained the company is currently holding off on new interest rate swaps due to a divided Fed dot plot and market pricing not fully reflecting expected rate cuts.

Conor Peaks asked about the potential impact of the terminated Capri and Tapestry merger and whether it has caused any adjustments to Tanger's real estate strategy.

Answer

President & CEO Stephen Yalof stated that their relationship with Tapestry remains strong and that they see the sale of Stuart Weitzman to Caleres as a potential growth opportunity. He also noted Capri's positive outlook from its recent investor day and affirmed their importance as a key tenant, indicating no change in strategy due to the merger's termination.

Conor Peaks asked for specifics on the Big Lots bankruptcy, how it pertains to Brixmor's portfolio, and the company's outlook for the recaptured spaces.

Answer

COO Brian Finnegan expressed satisfaction with the progress, noting that 7 of the 10 boxes being returned are already resolved with rent spreads exceeding 50%. He framed it as a significant opportunity, given the low in-place rents of around $7.50/sq ft and historic low vacancy for box spaces. CEO Jim Taylor added that the team was prepared for this and is excited to create value by remerchandising the spaces with better tenants at higher rents.

Conor Peaks asked for specifics on the Big Lots situation, including how the bankruptcy announcement affects Brixmor's portfolio and the outlook for re-leasing those spaces.

Answer

President & COO Brian Finnegan expressed satisfaction with the re-leasing progress, noting that 7 of the 10 boxes they will get back are already resolved at rent spreads exceeding 50%. He highlighted strong demand from specialty grocery, off-price, and fitness tenants. CEO James Taylor added that the team had anticipated this situation, enabling a swift resolution, and would welcome more boxes back due to their low in-place rents.