Brixmor Property Group Inc (NYSE:BRX) Q2 2020 Earnings Conference Call - Final Transcript
Aug 04, 2020 • 10:00 am ET
Greetings and welcome to the Brixmor Property Group Second Quarter 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host Stacy Slater. Please go ahead Stacy.
Thank you, operator, and thank you all for joining Brixmor's second quarter conference call. With me on the call today are Jim Taylor, Chief Executive Officer and President; and Angela Aman, Executive Vice President and Chief Financial Officer; as well as Mark Horgan, Executive Vice President and Chief Investment Officer; and Brian Finnegan, Executive Vice President Chief Revenue Officer who will be available for Q&A. Before we begin, let me remind everyone that some of our comments today may contain forward-looking statements that are based on certain assumptions and are subject to inherent risks and uncertainties as described in our SEC filings and actual future results may differ materially. We assume no obligation to update any forward-looking statements. Also, we will refer today to certain non-GAAP financial measures. Further information regarding our use of these measures and reconciliations of these measures to our GAAP results are available in the earnings release and supplemental disclosure on the Investor Relations portion of our website. Given the number of participants on the call, we kindly ask that you limit your questions to one or two per person. If you have additional questions regarding the quarter, please recap. At this time, it's my pleasure to introduce Jim Taylor.
James M. Taylor Jr
Thanks Stacy and thanks to each of you for joining our second quarter call. I trust that each of you and your families are safe and well. Let me begin my remarks by stating how pleased I am with the durability and resilience of both our portfolio and our team as is evident in our response and performance during this COVID-19 crisis. At the height of the regional closure orders in mid-April, more than 40% of our tenancy by revenue was closed and we saw a similar drop in traffic levels. Yet our teams had already jumped into action in early March with targeted reductions of 15% in CAM to alleviate tenant expense burdens without sacrificing service levels, additional signage and curbside pickup areas for tenants that remained open, relief in terms of deferment for those tenants forced to close, and assistance in accessing PPP and other government programs. We've received universally positive feedback from our tenants for the partnership approach we took. Today, approximately 94% of our tenants are open and we've seen a corresponding recovery in traffic levels versus last year. Tenants that do remain closed are heavily concentrated in categories such as bars, restaurants, and entertainment uses, some of which have been impacted by re-closure orders in jurisdictions like California. For those tenants that have reopened, we are getting largely positive feedback including reports of larger basket sizes and higher conversion rates versus last year.