Participants

Samantha Strong; Investor Relations; Brixmor Property Group Inc

James Taylor; Chief Executive Officer; Brixmor Property Group Inc

Brian Finnegan; President and Chief Operating Officer; Brixmor Property Group Inc

Steven Gallagher; Executive Vice President and Chief Financial Officer; Brixmor Property Group Inc

Mark Horgan; Executive Vice President and Chief Investment Officer; Brixmor Property Group Inc

Juan Sanabria; Participant; BMO Capital Markets

Todd Thomas; Participant; KeyBanc Capital Markets

Jeff Spector; Participant; Bank of America

Floris Van Dijkum; Participant; Compass Point

Ki Bin Kim; Participant; Truist Securities

Craig Melman; Participant; Citi

Alexander Goldfarb; Participant; Piper Sandler

Samir Khanal; Participant; Evercore ISI

Dori Camson; Participant; Wells Fargo

Hanal St. Juste; Participant; Mizuho Securities

Caitlin Burrows; Participant; Goldman Sachs

Mike Mueller; Participant; JP Morgan

Paulina Rohas; Participant; Green Street

Conor Peaks; Participant; Deutsche Bank

Presentation

Operator

Yes. Okay. Ladies and gentlemen, good morning, and welcome to the Brixmor Property Group, Inc. third quarter 2024 earnings conference call.
At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Samantha strong from Investor Relations. Please go ahead, ma'am.

Samantha Strong

Thank you, operator, and thank you all for joining us for Brixmor Third Quarter Conference Call.
With me on the call today are James Taylor, Chief Executive Officer, Brian Finnegan, President and Chief Operating Officer, and Steven Gallagher, Executive Vice President and Chief Financial Officer.
Mark Horgan, Executive Vice President and Chief Investment Officer, will also 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 that we are what we will refer today to certain non-GAAP 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 per person. You have additional questions. Please re-queue at this time. It's my pleasure to introduce James Taylor.

James Taylor

Thanks, Sam, and good morning, everyone.
This third quarter was yet another quarter of outstanding performance with increased expectations for 24 and importantly, excellent visibility on continued growth in 25 and beyond. Collectively, these results and Steve and Brian will talk about in more detail to reflect the momentum and durability of our proven plan.
The transformation of our portfolio and the strength of our teams are outstanding. Performance is reflected across every observable metric from record occupancy and rate continue to strengthen customer traffic sector leading leasing spreads, continued delivery of accretive reinvestments and ramping external growth product pipeline that continues to cluster our portfolio while we efficiently harvest and redeploy capital from centers where we see limited upside.
We also have proven again, as Brian will discuss our ability to capitalize on tenant disruption as an opportunity to drive value by bringing in better tenants at better rents. And of course, we continue to deliver strong bottom line FFO growth, which we expect to be 5% for the second consecutive year.
As noted in our earnings release last night, during the quarter, we implemented a regional realignment that combines our North and Midwest regions and moves Texas into our South region. These changes to enable us to realize the benefits of our clustering strategy and the efficiencies of scale across these markets while also investing in talent closer to the real estate in conjunction with realignment. And we recognized a one-time severance cost of about $2.5 million, which we expect to more than offset in the annual savings as we move forward.
We are very pleased with the acceleration of our capital recycling efforts. Our patients over the last few years have positioned us to now pivot and take advantage of our improved cost of capital in the dry powder we have build, including through $143 million of dispositions year to date. During the quarter, we completed $64 million of acquisitions, with $81 million completed year to date.
In addition to Fresh Market shops in Hilton Head, which closed during the quarter, we also closed on the acquisition of Act and Plaza, which is located in a very affluent suburb of Boston and our portfolio there to seven assets act and is anchored by a highly productive Roche, others grocer, and we are confident we can leverage our position in the market to drive NOI growth at that asset.
Importantly, we also have an additional $250 million of value-add acquisitions under control, but for us to share more about these exciting acquisition opportunities in the coming quarters.
At the same time, we've continued our focus on driving value through accretive reinvestment, delivering $33 million at a 10% yield in the quarter with our in-process pipeline over $500 million at a 9% expected yield. Importantly, these projects highlight our valuable tenant partnerships as we bring in best in our centers alongside thriving grocers, including Trader Joe's, Whole Foods, Aldi and Sprouts.
We are even more excited as we look to the future are signed but not yet commenced pipeline sits at $59 million, even with the commencement of $18 million of AVR in the quarter, which will see the full benefit in the coming quarters. These stacking rent commencements, of which we've commenced $47 million year to date, combined with improving contractual rent steps, accretive reinvestment deliveries, a robust forward leasing pipeline, and of course, our attractive rent basis provide us unparalleled visibility on continued growth and value creation and 25 and beyond.
With that, I'll turn the call over to Brian for a more detailed discussion of our operating results. Brian?

Brian Finnegan

Thanks, James, and good morning, everyone. Our results this quarter once again demonstrate how our team continues to capitalize on positive environment for Open-air retail, our transformed portfolio and industry leading platform.
Supply remains as tight as it's ever been while demand from a broad range of retailers to be in our centers remained strong. This supply demand imbalances, enabling our team to not only drive rents across our portfolio, but to upgrade our merchandising mix with the best operators that are looking to expand their open air footprint. But it's the unique combination of the lower rent basis across this portfolio and the track record of our team that truly sets bricks more partner.
It is once again evident in our results that begins with leasing as our team executed 1.1 million square feet of new and renewal leases at a blended cash spread of 22%, including record new small shop base rent of $31 per square foot. For new leasing activity, along with low move outs, led to another quarter of record overall anchor and small shop occupancy at 95.6%, 97.7% and 91.1%, respectively.
The best-in-class tenants that drove these results during the quarter included three new grocery stores highlighted by Trader Joe's backfilling of former Bed Bath box and suburban Denver, increasing our percentage of ABR from grocery-anchored centers to 81%.
We also added new locations with Aldi, Burlington Boot Barn, Skechers and Ulta Beauty, while continuing to capitalize on great demand from outparcel tenants like Chase Bank. Fifth Third Bank, Shake Shack company. The team is also well on its way to accretively backfilling space, we're in the process of recapturing, including from the loss was seven boxes already resolved in markets like Nashville, Houston and Fort Lauderdale, as spreads have more than 50% with great tenants in the grocery value, value apparel, fitness and Home Furnishing segments.
The recapture of these spaces has long been anticipated and a focus internally. And our team is welcoming the opportunity to upgrade merchandising and do it at much higher rents. And while we may see some short-term fluctuation in occupancy as we recapture the space, we're excited with the traffic driving tenants, we are adding to the center over the next several quarters many of which we expect to start paying rent in late 25 or 26.
Switching to reinvestment included within the $36 million of new projects we added during the quarter was the expanded scope of the Company's first Whole Foods redevelopment at the Philadelphia suburbs. Where we were able to capitalize on Basilea's at a New Barnes & Noble that opened last month to add a new multi-tenant outparcel, which I pull came first Swatch driving rents in the mid 70s.
On the stabilization front, we were excited to open another Sprouts Farmers Market location in suburban Tampa and a former Bed Bath box, which we executed last year at close to 3.5 times the prior rent. As we approach the end of the year, we remain as confident as we ever have in our business plan. The list of retailers that want to grow with us continues to expand, which not only gives us good forward visibility on growth but acknowledges the work our team has done in transforming this portfolio.
With that, I'll turn the call over to Steve for a more detailed review of our financial results. Steven?

Steven Gallagher

Thanks, Brian. I'm pleased to report another quarter of strong execution across our platform as we continue to position the Company for long-term sustainable growth.
They read FFO was $0.52 per share in the third quarter, driven by the same property NOI growth of 4.1%. Base rent group contribution to same-property NOI growth accelerated from 380 basis points last quarter to 520 basis points this quarter, reflecting strong commencement activity, continue strong leasing spreads and growth and build occupancy. In addition, net expense reimbursements contributed 80 basis points, driven by our growth and build occupancy.
As discussed in the last call, we expected revenues deemed uncollectible to be a headwind to same property NOI growth in the second half of the year due to lower out of period cash collections and the impact of current quarter bankruptcies. Accordingly, during the quarter, revenue was deemed uncollectible contracted 200 basis points from growth.
We still expect revenues deemed uncollectible to end the year of 50 to 75 basis points of total revenues, reflecting the continued improvement in credit strength of our tenants. We continue to capitalize on the strong leasing environment as we ended the quarter with a 370 basis point spread between leased and build occupancy. A 30 basis point decrease from last quarter despite commencing approximately $18 million of annualized base rent in the quarter.
Our signed document pool totaled $59 million, which includes $52 million of net new rent. The size of our signed document full over the last years provides a strong foundation for growth. We expect that growth to continue into 2025 as this rent commences ratably over the next year at an average rent per square foot of $22.12, which is 27% higher than our current in-place rent.
From a balance sheet perspective, we took advantage of our improved cost of capital and transacted under our ATM for them first time since 2022, raising $20 million in equity at an average gross price of $27.92. At September 30th, we had total liquidity of $1.7 billion and adjusted EBITDA on a current quarter annualized basis was 5.7 times, leaving us well positioned to execute on our business plan.
In terms of our forward outlook, we have increased our same property NOI growth range of 4.75% to 5.25%, comprised of a 450 to 500 basis point contribution from base right. In conjunction with the increase in our same property NOI expectation we have raised our guidance for 2024, and they've read FFO to a range of $2.13 to $2.15 per share.
Our continued outperformance has positioned us to raise our dividend to an annual rate of $1.15, an increase of 5.5% while maintaining a conservative payout ratio. Looking forward to 2025, we expect same property NOI growth to exceed 4%, driven by the cumulative impact of 2024 in 2025, rent commencements embedded rent growth and continued strong renewal spreads.
We are excited about the visibility we have into our future growth as our transformation has positioned us with significant sign the documents, pipeline and value accretive reinvestments that will stabilize in the coming year. And with that, I'll turn the call over to the operator for Q&A.

Question and Answer Session

Operator

Thank you. Ladies and gentlemen, we will now be conducting a Q&A session. If you'd like to ask a question, please press star and one on your telephone keypad. (Operator Instructions)
Ladies and gentlemen, as a reminder, we request you to restrict to one question and rejoin the queue.
Our first question comes from the line of Juan Sanabria from BMO Capital Markets. Please go ahead.

Juan Sanabria

Hi, good morning and thank you for the time. Just hoping you could comment a little bit about the investments market and (inaudible), like you said, for the first time since 22. So just curious if that is a sign that you're seeing more opportunities or just if you could talk a little bit more about the rationale for raising some equity at this point if it's not for future acquisitions. Thanks.

James Taylor

Thank you, Juan. We do see an improving outlook in terms of external growth. We, as I mentioned in my remarks, of about $250 million of assets under control that are accretive on importantly, that further cluster our investments in our key markets far.
Yes, as far as the overall market is very healthy, broken out, restyled currently have certainly seen some core buyers stretch into the fives for certain assets, but it doesn't really feel like the new that market. It went well into the sixes fortunately, for the assets that we've been looking at assets that we've been transacting on.
I think what was most striking about the market today is that you're certainly seeing a lot more institutional interest in open air retail today. And I think that's really driven by the performance of platforms like brings more in the last few years. And institutional investors kind of missed the boat early open-air retail on that, and they're rushing into trying to get additional access. And I think that's a very healthy for our space today.
Yes. And I think what's also important to recognize is the investments we're looking at really do leverage our platform to drive continued growth and outperformance. And so as we look at that, we see some very accretive opportunities, including through issuance under our ATM.

Operator

Thank you. The next question is from the line of Greg McGinniss from Scotia Bank. Please go ahead.

Hello. This is Victor, in for Greg McGinniss, I just wanted to ask a follow-up question. You are a sign that provide pipeline contribution and in general, kind of weather tenants are pushing out their expected lease commitment. So in terms of 2025, is the contribution from China to identify pipeline evenly distributed to 25 or more back half-weighted? Thank you.

Brian Finnegan

Hey, this is Brian. Just first of all, I guess in the second part of your question, we're not seeing tenants really push things out. If anything, we're seeing kind of more demand, particularly in that box category. In terms of store openings, 2025 is getting fairly full for tenants at this point on the deals we're talking about, which is really encouraging, and you're starting for 2026 on the box sites.
You look as it relates to the signed, the documents pool was $59 million at the end of the quarter despite commencing $18 million a quarter. I mean that speaks to the leasing that we continue to add to that. And as James touched on, gives us really good visibility on future growth.
So in terms of the overall environment and two conversations with tenants, we remain really encouraged, but also good to see the growth in the same time in documents pool.

Thank you.

Operator

Thank you. The next question is from the line of Todd Thomas from KeyBanc Capital Markets. Please go ahead.

Todd Thomas

Good morning. Hi, thanks. Good morning. I just wanted to go back to the questions around the investment environment and the ATM issuance. Again, I'm just curious, you know, should we expect the Company to keep utilizing the ATM at current levels?
And then relative to the comments about having $250 million tied up or in advanced negotiations, should we assume an increase in net acquisition activity, a more balanced position that we've seen over the last number of years? Or should we expect from an increase in disposition activity to match those acquisitions as you further look toward your clustering strategy?

James Taylor

Yes. I mean, I think our prime community capital recycling and we look to opportunities under the ATM to match fund acquisitions that we, nonetheless believe will be it accretive given our cost of equity. So you know, it's going to vary quarter by quarter, but expect over several quarters for us to be relatively balanced.
Obviously, we've gone into the year being a net seller of about $150 million of assets with $80 million of acquisitions. But we do expect to see a ramp-up in acquisition activity that will be funded again through a mix of dispositions and is appropriate and ATM issuance.

Operator

Thank you. The next question is from the line of Jeff Spector from Bank of America. Please go ahead.

Jeff Spector

Great, thank you. Just one follow up on the transaction market, with rates rising potentially less cuts going forward, do you think that puts a damper on the transaction market or has something really changed here?
That is sparking sellers to come to the market or again, that buyer seller gap has narrowed, and we expect that to continue.

James Taylor

Yes. What I'd say about the overall market today, you're seeing a little slower market, but that's really not driven by rate was not necessarily driven by the elections. I think a lot of folks wanted to be in the market earlier this year and the how the market right now. And certainly, as we as we build towards, for example, the December ICSC, we're getting tons and tons of inbounds on get ready assets are coming.
How do you think you're going to continue to see a pretty healthy investment market going forward, particularly for smaller assets, right, that that's really where we've been able to take advantage of selling assets into the smallest market and recycling assets pretty attractively. So we're not really seeing a slowdown today in the market other than again that fall off and on the election of the expected.

Jeff Spector

Thank you.

Operator

Thank you. The next question is from the line of Floris van Dijkum from Compass Point. Please go ahead.

Floris Van Dijkum

Thanks, morning, guys. My question is on capital raising and sort of been addressed a couple of times. But let me let me ask you a question on the leasing front and on the operations front, you've obviously you still have a pretty substantial SNO pipeline. Maybe you can talk about the split between the sea anchor and shop in that in that pipeline.
And also, where do you see how much more room for everybody is pushing occupancy to record levels and beyond how much more room do you see in your occupancy, particularly in your shop side where your occupancies probably a little bit lower than some of some of your peers?

James Taylor

Yes, floors, thank you. We continue to see the opportunity for upside and occupancy. I think a key differentiator of our growth strategy is that we're also driving spreads. So we're bringing in a lot of new AB. are not just simply through again and occupancy, but by replacing lower rents with better right ends and better tenants that continues to drive, importantly, the momentum that we're seeing in the small shop space, and we fully expect that to continue to grow and have great visibility on its growth because of the drag of while we have in our reinvestment pipeline.
The other thing I would just highlight with respect to that's no pipeline is stacking growth. You know, as I mentioned in my remarks, we commenced $47 million of new ABR, in the first three quarters. We expect that trend to continue in the fourth quarter, which we won't see the full benefit from a growth perspective until 25 and 26.
So, you know it's both elements it's not only driving better occupancy, but even more importantly, driving better rate. It's part of what gives us confidence in being able to outperform over the long term, not simply through lease-up alone.

Steven Gallagher

Yes, for us. And I would just add to your question on the breakout and still pipeline. About $27 million of the $59 is an anchor. It's even more encouraging is our anchor rents at $16 of slots, which would be a record in terms of where we sign those over the last year and is well in excess of nine and change that or it's anchors that are expiring with out of options over the next three years.
So we remain encouraged in terms of that overall snow pipeline, but even more so the quality, the tenants and the rents which were similar.

Floris Van Dijkum

Thank you.

Operator

Thank you. The next question is from the line of Ki Bin Kim from Truist Securities. Please go ahead.

Ki Bin Kim

Thank you. Good morning. Jame, can you talk? I in terms of your total redevelopment pipeline of 500 million, what is the total previous percentage?
And second question today is that, what does a sustainable level of redevelopment pipeline going forward?

James Taylor

Yes, I'll let Brian take the first part, but the second part, you know, we see great visibility on $150 to $200 million of reinvestment over the next several years. We have $500 million and underway today, which is going to take us through a good part of 26.
But as Brian highlighted in his remarks, we're backfilling the pipeline with incredibly exciting reinvestment projects such as the addition of Whole Foods and Byron Plaza. So we have several years of reinvestment opportunity in that, as we've talked about many times before, is really driven by that lease for a pipeline which limits the amount that we can get at any one year.

Brian Finnegan

Yeah Ki Bin, we're generally at 80% pre-leased before we bring those projects onto the pipeline, it's even more encouraging. It was we brought some of these bigger projects on the last years, like Naperville in the Chicago suburbs, Davis, California, and Rosa volt even on those larger projects we've had some pre-lease with great tenants.
So we've been really excited in terms of our ability to get those projects going on with the leasing activity to ultimately bring them forward.

Operator

Thank you. The next question from the line of Craig Melman from Citi. Please go ahead.

Craig Melman

Hey, good morning. I just want to go back, Steve, maybe your commentary on same store growth being above 4% for next year. I appreciate you guys aren't giving guidance yet here, but that's a pretty even if it's closer to four, then where you are today kind of a 5%, we just feel like the market to anticipate an acceleration for the group next year.
Could you just kind of talk about the puts and takes at this point on maybe commencement timing and states coming offline that where you are this year and maybe see that next year is just no pipeline starts to deliver?

Steven Gallagher

Yes. I mean, we expect to be above that we're not going to give guidance for 25, but it just all points to the rents that are commencing as you talked about, the reinvestment deliveries. The rent steps and the occupancy gains, we think put us above that long-term growth rate, which we've highlighted before a 4% or better.
So, we don't see any slowdown if to the contrary, we see good strength and it's highly visible strengths in terms of signed leases, redevelopments that are delivering. And the continued improvement in the intrinsic terms of our leases as we have increase in the embedded rent steps.
So when you look collectively, we feel pretty confident not just in our growth and 25 but in 26 and beyond, given the signed leases, given the pickup in occupancy and given the better rents was better tenants.

Brian Finnegan

I think I'm going to add the other thing just to think about it, and there is that for the first nine months is well below our historical run rate of 59 basis points of total revenues or a as you're thinking into 25. Obviously, that could prove to be a headwind depending on where we ultimately expect that to come out as well.

Operator

Thank you. The next question is from the line of Alexander Goldfarb with Piper Sandler. Please go ahead.

Alexander Goldfarb

Good morning and feels that could drive through express line with the Q with the questions this morning. Just on would be on the bad debt. Steve, can you just walk through and clarify the 200 bps headwind in same store and versus the 59?
I think you said basically 66 year to date, and I think you said still expect the previous range I think was 75 to 100. Is the 200 just the year-over-year comp and what it just seems like the tenant credit market remains healthy as ever.
So just trying to understand better the 200 bps headwind in the same store versus the comments that you just mentioned year to date and then holistically, as we think into next last year, bad get back to the historic range or that's really just sort of a plug. But right now on your watch list, you don't really see that happening.

Steven Gallagher

Yes. I think the most important way to think about it and how we often talk about a in our guidance rate is just to think about the bad debt as a percentage of total revenue. That takes some of the comparability from year over year. And as of nine 30 were sitting at right around 60 basis points of total revenue.
Our historical run rate on our expectations coming into the year was 75 to one 10, right. So well, south of that and as I as I said in my prepared remarks of, we still believe that we would end the year at the 50 to 75 basis points that we updated on the last call.
So I think that hopefully just help frame like where we are with embedded in the year. And we are, as you know, historically lower levels than what we've seen. I think you're right on.
And when you think about the 200 basis points of headwind that you're seeing in the same property NOI growth is really to do is an anomaly in the prior year due to some added period cash collections associated with two of the larger sort of paydowns headed back all during the COVID period.
So that really just created a difficult comp in that year but you know, so far, we're still very impressed with the overall credit worthiness of the portfolio and then you will of the sort of our expectations on where we think that'll end and 25 when we issue guidance next quarter.

James Taylor

Yes, I would just add, we continue to see fundamental improvement in credit quality. The portfolio and the recent bankruptcies have really proven to be an opportunity for us to recapture space. And one of the greatest demand environments we've ever seen. So it's a source of growth for us going forward.

Operator

Thank you. The next question is from the line of Samir Khanal from Evercore ISI. Please go ahead.

Samir Khanal

Hey, good morning, everybody. And maybe on this sort of this preliminary 4% NOI growth.
I know you gave some building blocks there but help us understand the flow through the at over the course of next year.

Brian Finnegan

Yes. I think Jame said on earlier, sort of the building blocks of and where we think that growth is going to come in, right, isn't start with your embedded rent growth in your existing leases.
And I think most importantly, what you're starting to see engine just mentioned it does the compounding impact of thus no pipeline coming online, right? So sort of 47 million we've commenced the year to date, along with the 18 million we expect to commence in Q4. That's only really benefiting your growth for partial court point of this year. When you head into next year, you're going to see growth on top of that along with the snow pipeline that's going to commence in that you are right.
So that's where you get the layering impact of that slow with no pipeline that's been higher for really about a year now coming into the contribution. So that's why we feel really comfortable that, you know, we're going to be in excess of the 4%. And then obviously the significant Rita pipeline that we have and the contribution that that provides us well into the last line item.
So I mean, is generally the pieces of the embedded rent bumps, the snow pipeline and commencing and then the readout pipeline as well.

Operator

Thank you. The next question is from the line of Dori camson from Wells Fargo. Please go ahead.

Dori Camson

Thanks. Good morning. You can see that in a few answers. But the rent on your 25 lease expirations, there's no version of the remainder of the portfolio and opening a new small shop side, Cincinnati setting you up from particularly strong year first brands next year?
Or is there something can you just give some credit for that group and expansion of note?

James Taylor

Dori, I would just say broadly, I mean, our team has consistently demonstrated the ability to take advantage of low rent basis across this portfolio. We're going on just three years now of renewal growth over 10% on you mentioned those expiries.
We've been signing those anchor deals around $16 a square foot. And as we look out at liberty to go in and it really goes to not just the environment. But what we've done to this portfolio, the tenants that we've added to this portfolio, the percentage of grocers that we added to this portfolio were driving traffic at the top of the peer group.
So you put all that together as well as the work our team has been able to do in terms of capturing that upsides gives us really good visibility going forward, not just into 25 but beyond.

Operator

Thank you. The next question is from the line of Hanal St. Juste from Mizuho Securities. Please go ahead.

Hanal St. Juste

Hey, guys, good morning. Good morning. Good evening.
So I guess my question is just stepping back on and thinking about the near term and intermediate term opportunity within the portfolio core portfolio, right. I guess curious how we should read them the dynamics from the quarterly results here in leasing was robust a bit slower than prior quarters.
There is no pipeline is still sizable, but it's down a few quarters in a row here. And your portfolio sitting here at an all-time high. So I guess curious how we should interpret this perhaps suggest that your core growth potential is peaking this year?
And then on the 4% you mentioned for next year, that base case and more the low end of have an expected range. Thank you.

James Taylor

Yes. So the 4% handle. Thank you. Is not guidance, and we've seen said we're not going to be better than that and we'll provide more detail as we provide detailed guidance.
But the bottom line is the business continues to fire on all cylinders and as you look at the leasing, you would expect leasing volumes to moderate a bit as a portfolio approach is total occupancy. But the benefit of delay leasing, importantly, is going to be felt in 25 and 26.
As you look at the compounding effect of the stacking rent commence just over $18 million of new run in the quarter, we commenced over almost $50 million year to date. You're going to see the full benefit of that, plus the $50 million that we have haven't signed, but not commenced, plus what we have in legal continuing to provide tremendous visibility along with the delivering of reinvestment for growth into 26 and beyond.
So we're very confident in our business model being able to continue to outperform because that growth is not dependent only on growth and occupancy. The biggest driver of it is growth in rate and we expect, as Doreen mentioned in her question, to have pretty attractive rent basis from which to grow and 25, 26 and beyond.
Particularly as we've transformed the portfolio and also connect menu to set new records in terms of rent and occupancy. So on, we actually like our position and we like how we will continue to outperform.

Steven Gallagher

It has a I would just add, can Jame alluded to it that legal Play plus yield today is the highest it's been in a year and we're starting and to address some of the boxes that we're taking back here at the end of the year.
So to Jame's point, has occupancy approaches are continues to hit all-time highs you'd expect that new lease volume to moderate a bit. But with the activity that we see in that legal pipeline, we are expected to grow here the next few quarters.

Operator

Thank you. The next question is from the line of Caitlin Burrows from Goldman Sachs. Please go ahead.

Caitlin Burrows

Hi, everyone. Good morning.
And I did have a follow-up on that last point, I think you were mentioning the term quote legal pipeline, which I'm not familiar. I was wondering if you could clarify that.
But my real question was on if you could go through the acquisition of acting Plaza on maybe some details behind it on the upside and how quickly you could have key that and how competitive the process outlays on how the deal was sourced and those sorts of details?
And maybe what's specific to that property or anything we could take for like the broader market?

Steven Gallagher

Caitlin real quick. That's legal pipeline for us as leases that we have out for signature actual leases versus otherwise.

James Taylor

And it continues to remain robust. Mark, do you want to talk about act.

Mark Horgan

Yeah Sure, your actions that we have an excellent operating platform up in Boston, and we've come a market that have now the office we'd like to buy in that market. This one was down by well-known institution, it came to market through a broker.
And we thought we had some unique opportunities to drive both near and long-term growth through the rents we saw there and again, we're really leveraging a very active arm operating platform and Boston market that is tight and performed very well.
We did want to have some exposure there that's really how I came from a competitive perspective it was a competitively bought asset.
Ultimately, one of the benefits we can take the seller one with us because we are an all-cash buyer, and that is the great benefits market because buyers don't worry about us having the fun stuff through the CMBS market or other otherwise. And when we say we can close on a day, we do.

Brian Finnegan

And similar to our existing portfolio, a lot of below market rents that we believe we capitalize on and as well some opportunities to add density.

Operator

Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one.

Mike Mueller

The next question comes from the line of Mike Mueller from JP Morgan. Please go ahead.
Yes, hi, good morning. Build occupancy moving higher, when do you think the lease to the economic occupancy spread can be at normalized levels?
Do you think that some point in 2026?

James Taylor

I think so it's out there ways when you look at the delivery of what we've signed and are commencing. I think that's fair.

Operator

Thank you. The next question is from the line of Paulina Rohas from Green Street. Please go ahead.

Paulina Rohas

Good morning, and we'll talk to you about asking.
You mentioned that you wanted to increase your exposure to Boston. So as you see from your clusters, are there any markets where you'd like to increase your exposure?
And related to that is having some comments in the areas where you are seeing the same the most demand from containers or is it largely Genius across geographies and segments?

James Taylor

We've been very pleased with the demand from retailers are thriving today, but the in our portfolio across nearly all of our markets, and we continue to focus on clustering in those markets to capitalize on what we know the demand to be from retailers, a common theme to our investment strategy.
He is finding assets that are under rented under lease under reinvested and But nonetheless, very well located where we can capitalize on the platform to drive real long-term value. So as you look ahead and think about some of the acquisitions we have under control there in March markets that we have great presence in and no extraordinarily well such as Florida coastal Carolinas, the upper Northeast and California and Texas.

Operator

Thank you. We have a follow up question from Caitlin Burrows from Goldman Sachs. Please go ahead.

Caitlin Burrows

For high again. And just on the acquisitions and dispositions, sounds like you guys are expecting to generally be balanced going forward.
So I was wondering on just from like a cap rate perspective and what it means for earnings impact, do you think we're at a point where the acquisition cap rates can be higher than the dispositions?
And if so, by how much or is the opportunity there more of like longer term on higher growth from the acquisitions versus the destinations?

Brian Finnegan

Well, I'd say well for whole year to date and you think about what we've sold, we have had a positive spread between acquisitions and dispositions given that we sold more than 63 for an extremely low cap rate. So year to date has been a positive contributor.
As we look forward, what we really focus on as a whole IRRs from an investment perspective, we are we tried to sell assets where we think the whole IRRs low and buy assets for the whole IRRs higher. I would expect that may be a slight cap rate differences between those two but not material.
So effectively, we look at that on a near-term basis is neutral.

Operator

Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one.
The next question comes from the line of Alexander Goldfarb from Piper Sandler. Please go ahead.

Alexander Goldfarb

Hey, thanks for taking the follow-up.
Brian's question on leasing and on store performance. Obviously, the past few years since COVID have been great for mark to market rents and boosting of occupancy and retail performance.
But as we get into a more normalized invite, Simon, do you see that the mark to market of rents is more driven by just simply rolling old, lower rents to where the market is today?
Where do you guys have confidence in the store productivity such that tenancy, this stores continuing to outperform, let's say, inflation such that we can continue to see healthy mark-to-market on rents?

Brian Finnegan

Alex, it's a great question, and it's both. We have a we do have a low rent basis across the portfolio that we expect to be able to take advantage of as we continue to deliver reinvestments as we continue to add great traffic-driving tenants in our tenants are performing.
You look at the tenants in the specialty grocery space, operators like Sprouts and Aldi and Whole Foods and Trader Joe's, you looked at the off-price operators would continue to have very strong performance, quick serve restaurant operators, the expansion of wellness and how people think about wellness today and fitness operators are very strong.
So you look at that on a whole and then you look at the traffic that we're driving to our shopping centers, we expect to be able to continue to drive rent as our content Our tenants continue to succeed.
But then we also have a very low rent base just to take advantage of as well. So you put that together, I think it puts us in a very good position going forward.

Steven Gallagher

Yes. What we're also really encouraged by from a productivity standpoint is traffic by banner, which we think compares very favorably across the marketplace, particularly when you think about the in-place rents.
So as Brian mentioned, and it's really both it's the right basis as well as the productivity of the tenants, which we're excited about driving even further productivity in the years ahead.

Operator

Thank you. The next question comes from the line of Floris van Dijkum from Compass Point. Please go ahead.

Floris Van Dijkum

Hey, guys, thanks for taking my follow-up. Tom, going back to the capital allocation, you obviously you raised a tiny bit of equity in the quarter.
And you're still trading at a marginal discount to where we think your NAV is. But you're getting closer as you think about your equity as a source of capital. Now I think beyond your peers are in that same. Some of them already exceeded NAV by the way. But as you start to be able to consider equity due to how much of an opportunity do you see for you to replicate what you've done your own portfolio on new acquisitions?
And how big of a pipeline of potential pipeline is they're out there for you guys, too, to potentially acquire? And would you get more constructive on some of that as your share price continues to move higher?

James Taylor

We always are very careful with our equity and recognize that it's pressures. And so when we think about the issuance of equity, it's really with the mine towards what you are saying, which we're seeing, which is attractive acquisition opportunities that can be accretive.
We've in terms of a net value add. And as we look at the pipeline going forward, we're encouraged by some of the opportunities that we're seeing that at readable, then national accounts in leasing and operating strengths that we have as a platform where we see as we bring these asset, it's into our platform, we actually outperform our underwriting.
So we're excited about, as Mark was talking about the volume of new opportunities that we're seeing currently we have under control as well as what we see coming forward.

Mark Horgan

Yes, in terms of that pipeline, I think it's important to note about the vast majority of open air retail is not owned institutionally it's probably 80% to 85% is not only institutionally.
And so when we look at our current pipeline, for example, we're buying from two institutions that we think we can operate better than that and clearly, there were also Mountain to families unhealthy assets for a very long time that we think will generate some very interesting growth because they called them for, however, long times that are not first in class operators, they were just great real estate buyers 50 years ago.
So we're really excited about the future pipeline and believe we can continue to backfill acquisitions when we think account markets correct.

James Taylor

Yeah, we would like to say it's more coal for our growth furnace. So we're excited about what we see ahead. But again, florists to your point equity is precious and will always be very disciplined.
Thank you. The next question is from the line of Conor peaks from Deutsche Bank. Please go ahead.

Conor Peaks

Thank you. On the uncollectible lease income on has been talked about plenty on this call, but if I could ask about the Big Lots specifically and how the announcement pertains to your portfolio and what you see going forward there.

Brian Finnegan

Yes, Conor, it's a good questions. We're very pleased with the activity that we've seen on the Big Lots spaces. These boxes are coming back at a time of historic box, low box vacancies across the entire industry as well as the portfolio.
But we've got 10 that are going to be in our possession by the end of the month. seven of those are already resolved with great tenants have rent spreads are again, excess of 50% on a right kind of remains to be seeing bankruptcies, a fluid process in terms of how many more we ultimately will get back.
I would just say on the whole, though, we're seeing great demand from the boxes with tenants that we've continued to execute a lot of deals with the specialty grocery off-price apparel fitness earlier than opportunity for us. The rents on those boxes are seven, 15. We've been signing anchors at 16 box.
So we're pleased with the progress that we're making out of the gate and look forward to being able to remerchandise these boxes quickly with better tenants at higher rents.

Steven Gallagher

And the team really has been playing towards us for a while. It hasn't been a surprise, which is part of why for already resolved on seven of the 10 boxes. So we're excited about the potential to get back more because with that low rent base, as we know, we're going to deliver a lot of value and accretion.

Operator

Thank you. As there are no further questions, I now hand the conference over to Samantha Strong for closing comments.

Samantha Strong

Thanks, everyone of the red area and happy Halloween.

Operator

Thank you. The conference of Brixmor Property Group has now concluded. Thank you for your participation. You may now disconnect your lines.