James Taylor Jr., president and CEO of Brixmor Property Group (NYSE: BRX), participated in a video interview at Nareit’s REITworld: 2018 Annual Conference in San Francisco.
Taylor said that Brixmor was happy with its efforts in disposing of non-core assets in 2018.
“We exceeded the volume that we expected to transact [in 2018] by about 30 to 40 percent, as we found a really strong private bid for the types of assets that we own,” he said.
Taylor said the REIT focuses on disposing of assets that are in the bottom quartile of its portfolio, as they relate to anchor sales productivity, rents, and demography. “Having sold almost 15 percent of the company over the last 18 months through the private markets, it really does position the balance of our portfolio to grow on a more consistent and sustainable basis,” he said.
Taylor said that demand in the open-air shopping center sector “has never been better.”
“Despite what the general headlines are saying, the retailers who are thriving in this environment are looking to grow their bricks and mortar presence [and] looking to relocate stores as well,” he said.
In discussing the balance between Brixmor’s acquisitions and redevelopment, Taylor said returns have been attractive. “We’re achieving returns of 9…to 11 percent on an incremental basis,” he said.