Summary
- Brixmor is the largest “pure play”, wholly-owned, grocery-anchored shopping center REIT.
- Around 70% of Brixmor’s revenue is generated from grocery-anchored assets.
- “People have to eat”. I know that sounds funny, but that’s one of the main reasons I’m recommending shares in Brixmor.
- Brixmor has the lowest payout ratio (of all shopping center REITs), so it has the strongest potential to outperform.
Last March (2014), I wrote an article on Brixmor Property Group (NYSE:BRX) and suggested that investors “could benefit from the liquidity generated as Blackstone (the Fund Manager) ultimately monetizes shares in the Brixmor REIT”. As announced last week, that’s happening:
Brixmor said recently it was pricing a secondary offering of 17,500,000 shares of common stock affiliated with Blackstone Real Estate Partners, which is expected to result in gross proceeds of approximately $458 million. Upon the consummation of the offering, Blackstone will cease to own a majority of the shares of Brixmor.
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