Mizuho upgraded Brixmor Property from Neutral to Outperform with a $29 price target, pointing to the company’s increasingly defensive tenant portfolio and stable lease dynamics. Brixmor has demonstrated a notable strength in its leasing spreads, particularly due to tenants locked into affordable rents and a solid pipeline of signed but unopened stores, providing clarity around future earnings. The upgrade reflects confidence that potential tenant bankruptcies will present more opportunity than risk for Brixmor, allowing the REIT to release space at higher rates and further boost income.
Brixmor shares have already beaten the broader real estate sector by roughly 300 basis points year-to-date, yet still trade at attractive valuation levels compared to industry peers. The firm’s focus on necessity-driven retail properties, combined with disciplined capital allocation, positions it favorably heading into the next market cycle.
🏅 Dividend Fundamentals:
🏷️ Quarterly dividend: $0.29 per share
💰 Annual dividend: approximately 1.15 per share, yielding around 4.4%-4.5%
🔄 Payout ratio: 50%-55% of earnings, providing sufficient coverage
📈 Dividend growth: consistent increases in recent years, supported by strong property-level earnings growth and occupancy rates near 94%
With this upgrade, Brixmor Property appears increasingly attractive to investors seeking both reliable dividend income and potential for capital appreciation, backed by its resilient tenant base and strategic growth initiatives.