Brixmor Property Group, Everview Partners to Acquire Slate Grocery REIT in $2.34B Deal

Brixmor Property Group Inc. (NYSE: BRX) and Everview Partners have entered into definitive agreements to acquire Slate Grocery REIT in a transaction valued at approximately $2.34 billion, Brixmor announced on Sept. 28, 2026. The deal encompasses 115 grocery-anchored properties and is expected to close in the first quarter of 2027, subject to customary closing conditions, including approval by Slate Grocery REIT unitholders.

Brixmor detailed the transaction further in its third-quarter earnings release on Oct. 26, 2026, which also reported record occupancy, a dividend increase of more than 7% and a raised full-year outlook.

Slate Grocery REIT Transaction Structure

Under the agreement, Brixmor Property Group will acquire a 23-property grocery-anchored portfolio from Slate Grocery REIT for approximately $636 million. The 23 centers total approximately 3 million square feet and are concentrated in Brixmor's existing operating footprint, particularly Florida, Georgia and the Carolinas.

Brixmor will also hold a 20% common equity interest and an approximately $174 million preferred equity investment in a joint venture with Everview Partners, which holds the remaining 80% of common equity. The joint venture will acquire an additional 92 properties, totaling approximately 12 million square feet, for approximately $1.71 billion.

The 115 properties together comprise roughly 15.7 million square feet of grocery-anchored, open-air retail space. Based on the combined figures, the deal implies approximately $149 per square foot across the full portfolio and approximately $212 per square foot for the 23 properties Brixmor will acquire directly.

Brixmor has secured a commitment letter for up to $988.0 million of senior unsecured term loan financing in connection with the transaction. That commitment is separate from the $1.5 billion of liquidity the company reported as of Sept. 30, 2026.

Everview Partners Joint Venture

The partnership with Everview Partners allows Brixmor to expand its exposure to grocery-anchored retail without funding the full purchase price directly. Brixmor will acquire the 23-property portfolio directly, while holding a minority common equity position and a preferred equity investment in the 92-property venture.

The structure limits Brixmor's direct capital deployment while providing exposure to the joint venture's assets and potential operating upside.

Brixmor Third-Quarter Results Provide Context

Brixmor announced the transaction details alongside operating results for the three and nine months ended Sept. 30, 2026. In the third quarter, the company executed 1.6 million square feet of new and renewal leases, with rent spreads on comparable space of 25.3%. New lease spreads were 42.6% and renewal spreads were 19.4%.

Total leased occupancy rose to a record 95.6%, anchor leased occupancy reached 97.0%, and small shop leased occupancy hit a record 92.8%. The leased-to-billed occupancy spread totaled 420 basis points. The company's signed but not yet commenced new lease population represented 3.1 million square feet and $68.9 million of annualized base rent.

Same property net operating income increased 6.6% for the quarter, including a 480-basis-point contribution from base rent. For the nine months, same property NOI rose 6.2%.

Nareit FFO was $184.6 million, or $0.60 per diluted share, compared with $172.3 million, or $0.56 per diluted share, a year earlier. For the nine months, Nareit FFO was $542.7 million, or $1.76 per diluted share, versus $514.9 million, or $1.67 per diluted share. Net income attributable to Brixmor was $87.8 million, or $0.28 per diluted share, compared with $94.2 million, or $0.31 per diluted share, in the third quarter of 2025.

Brixmor said its net principal debt to adjusted EBITDA was 5.2x on a current-quarter annualized basis and 5.3x on a trailing twelve-month basis.

Dividend Increase and Raised Outlook

Brixmor's board declared a quarterly cash dividend of $0.3300 per common share, or $1.32 annually, a 7.3% increase. The dividend represents an annualized yield of approximately 4.7% as of Oct. 23, 2026, and is payable Jan. 15, 2027 to stockholders of record on Jan. 5, 2027.

The company raised its 2026 Nareit FFO per diluted share expectations to $2.36 to $2.38 from $2.35 to $2.37. It also updated its 2026 same property NOI growth expectations to 5.50% to 5.75% from 5.00% to 5.75%.

"Our third quarter results were highlighted by continued leasing momentum, strong same property NOI growth, and record occupancy," said Brian T. Finnegan, chief executive officer and president of Brixmor. "These results reinforce the strength of our operating platform, while the growth embedded in our signed but not yet commenced pipeline and reinvestment program provide exceptional visibility into future earnings and cash flow growth. We are excited to build on this momentum through the Slate Transaction by expanding our opportunity set and creating additional avenues to drive long-term shareholder value."

Reinvestment, Acquisition and Disposition Activity

Brixmor added six new reinvestment projects totaling $36.7 million to its in-process pipeline during the quarter at an expected average incremental NOI yield of 11%, including a Publix redevelopment in Port St. Lucie, Florida. The company stabilized four projects with a total net cost of approximately $54.6 million at an average incremental NOI yield of 10%. The in-process pipeline totaled $331.8 million across 46 projects at an expected average yield of 10%.

The company acquired Village West Shopping Center, a 195,862-square-foot grocery-anchored community center in the Inland Empire trade area of California, for $49.5 million. The center is anchored by Stater Bros. During the quarter, Brixmor also sold two shopping centers for approximately $42.8 million in gross proceeds. Over the nine months, it acquired five shopping centers for $213.8 million and disposed of eight for approximately $165.8 million.

Market Context

Grocery-anchored open-air centers generate recurring, necessity-oriented traffic that supports smaller tenants such as restaurants, service businesses and medical users. Brixmor's leasing spreads and occupancy levels indicate continued demand for well-located neighborhood retail space.

The Slate Grocery REIT transaction expands Brixmor's presence in Sun Belt markets, particularly Florida and the Carolinas, and combines direct portfolio expansion with a joint-venture channel for the larger set of assets. The deal remains subject to Slate Grocery REIT unitholder approval, with closing expected in the first quarter of 2027.

Sources

Brixmor Property Group press release: https://investors.brixmor.com/news-events/press-releases/detail/371/brixmor-property-group-announces-third-quarter-results-with-strong-leasing-demand-driving-occupancy-to-record-highs-increases-dividend-over-7-and-raises-outlook