Core Viewpoint - Phillips Edison & Company, Inc. (PECO) is set to announce its Second Quarter 2025 earnings results on July 24, 2025, after market close, with a conference call scheduled for July 25, 2025, at 12:00 p.m. ET [1][2][6] Company Overview - PECO is one of the largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers in the United States, founded in 1991 [4] - As of March 31, 2025, PECO managed 321 shopping centers, including 298 wholly-owned centers totaling 33.5 million square feet across 31 states [4] - The company focuses on creating omni-channel shopping experiences and improving communities through its shopping centers [4] Earnings Conference Call Details - The earnings conference call will be hosted by Chairman and CEO Jeff Edison, President Bob Myers, and CFO John Caulfield [1] - A webcast replay will be available approximately one hour after the presentation [3] - Investors can access the call via a toll-free dial-in number and a toll dial-in number, with a specific conference ID provided [6]

Core Viewpoint - Phillips Edison & Company, Inc. (PECO) has announced a public offering of $350 million in senior unsecured notes with a 5.250% interest rate, maturing in 2032, to support various corporate purposes [1][2]. Group 1: Offering Details - The public offering is priced at 99.832% of the principal amount and is expected to settle on June 17, 2025, pending customary closing conditions [1]. - The notes will be fully and unconditionally guaranteed by PECO [1]. Group 2: Use of Proceeds - The net proceeds from the offering will be used for general corporate purposes, including repaying borrowings, acquiring additional properties, capital expenditures, and property improvements [2]. Group 3: Underwriters - The offering is managed by a consortium of financial institutions including J.P. Morgan, Fifth Third Securities, and Morgan Stanley, among others [3]. Group 4: Company Overview - PECO is one of the largest owners and operators of grocery-anchored neighborhood shopping centers in the U.S., managing 321 shopping centers as of March 31, 2025, with a total of 33.5 million square feet across 31 states [6]. - The company focuses on providing necessity-based goods and services through a mix of national and regional retailers, with top grocery anchors including Kroger and Publix [6].

Summary of Phillips Edison & Company (PECO) 2025 Conference Call Company Overview - **Company**: Phillips Edison & Company (PECO) - **Industry**: Real Estate Investment Trusts (REITs), specifically focused on necessity-based retail properties Key Points and Arguments Market Environment - The market has experienced significant volatility, particularly influenced by tariff updates [3][4] - PECO emphasizes a long-term business approach, focusing on stability rather than short-term fluctuations [5][6] Portfolio and Business Strategy - PECO operates in the necessity-based retail sector, which is less volatile compared to discretionary retail [6][7] - The company has a strong position due to its focus on essential services, such as grocery stores and health and beauty retailers [6][14] - PECO's strategy includes maintaining relationships with top grocers to drive foot traffic and support tenant success [14][20] Retailer Sentiment and Demand - At the recent ICSC conference, 85% of PECO's retailers reported low to minimal impact from tariffs, leading to a generally positive outlook [11][12] - The company had over 400 meetings at ICSC, indicating strong engagement with retailers and a positive sentiment towards expansion [9][10] Leasing Environment - New leasing spreads were reported at 28.1%, with renewal spreads at 20% and retention rates around 90% [16][17] - The occupancy rate is at its highest level, driven by strong demand and a lack of new construction in the sector [20][21] - PECO anticipates continued growth in occupancy and leasing activity, with a strong pipeline for the remainder of the year [17][22] Financial Metrics - Foot traffic in April increased by 6% year-over-year, indicating strong consumer engagement [28] - Renewal spreads are among the highest in the industry, with potential for further growth in rental rates [29][31] Challenges and Opportunities - PECO has limited exposure to larger box retailers, focusing instead on necessity-based retail [33][34] - The company is actively managing its portfolio to address potential headwinds from specific retailers like Party City and Big Lots, with plans for replacement and reopening [32][35] Acquisition Strategy - PECO aims for $350 million to $450 million in acquisitions, targeting properties with a 9% unlevered IRR [51][53] - The company has already closed on approximately $267 million in acquisitions this year, with a focus on grocery-anchored projects [53][54] Redevelopment Initiatives - PECO invests $40 million to $50 million annually in redevelopment, focusing on smaller buildings in existing shopping centers [60][61] - The company has a strong partnership with Publix for store rebuilds, enhancing its portfolio's value [62] Financial Health and Future Outlook - PECO maintains a strong balance sheet and flexibility in accessing debt and equity markets [57][58] - The company is optimistic about achieving 3% to 4% same-center NOI growth in the coming years [55] Conclusion - PECO is well-positioned to navigate market uncertainties due to its focus on necessity-based retail, strong tenant relationships, and strategic acquisition and redevelopment plans [65][66]

28 May 2025 | 6:30AM EDT Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Americas Real Estate: REITs: June 2025 question book: NAREIT meet ...

Core Viewpoint - Phillips Edison & Company, Inc. (PECO) is one of the largest owners and operators of grocery-anchored neighborhood shopping centers in the United States, and it will present at Nareit REITweek on June 3, 2025 [1][2]. Company Overview - PECO was founded in 1991 and has established a strong operating platform with a national footprint of well-occupied shopping centers [3]. - As of March 31, 2025, PECO manages 321 shopping centers, including 298 wholly-owned centers totaling 33.5 million square feet across 31 states [3]. - The company focuses on necessity-based goods and services, featuring top grocery anchors such as Kroger, Publix, Albertsons, and Ahold Delhaize [3]. Presentation Details - The presentation at Nareit REITweek will take place on June 3, 2025, from 8:45 a.m. to 9:15 a.m. ET, featuring Chairman and CEO Jeff Edison, President Bob Myers, and CFO John Caulfield [2]. - A webcast replay will be available approximately one hour after the presentation [2]. Investor Relations - For further information, PECO encourages investors to visit its investor website [4]. - The Head of Investor Relations is Kimberly Green, who can be contacted at (513) 692-3399 or via email [7].

Core Points - Phillips Edison & Company, Inc. (PECO) announced monthly dividend distributions of $0.1025 per share for June, July, and August 2025 [1] - PECO held its annual stockholders meeting, where all directors were re-elected and the appointment of Deloitte & Touche LLP as the independent auditor for 2025 was ratified [3] Company Overview - PECO is one of the largest owners and operators of grocery-anchored neighborhood shopping centers in the U.S., managing 321 shopping centers as of March 31, 2025, with a total of 33.5 million square feet across 31 states [4] - The company focuses on necessity-based goods and services, featuring top grocery anchors such as Kroger, Publix, Albertsons, and Ahold Delhaize [4] - PECO aims to enhance community experiences through its omni-channel shopping centers [4]

Group 1 - The article provides a buy rating for Phillips Edison (NASDAQ: PECO), highlighting its strong positioning in the current uncertain environment, with 71% of its rent derived from necessity-driven tenants [1] - The investment approach focuses on fundamental and valuation-driven analysis, emphasizing the importance of understanding a business's core economics, competitive moat, unit economics, reinvestment runway, and management quality [1] - The author aims to share investment insights and foster feedback from fellow investors, emphasizing the importance of long-term equity value drivers [1]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a Free Two-Week Trial for potential investors to explore top ideas across exclusive income-focused portfolios [1] Group 2 - There is a potential for initiating a beneficial Long position in PECO through stock or call options within the next 72 hours [2] - The article expresses the author's own opinions and does not involve compensation from any mentioned companies [2] Group 3 - The article is intended for informational purposes and does not constitute financial advice, encouraging readers to perform due diligence [3] - Seeking Alpha clarifies that past performance does not guarantee future results and that no specific investment recommendations are provided [4]

Portfolio Overview - As of March 31, 2025, the company owned equity interests in 321 shopping centers, comprising approximately 36.0 million square feet across 31 states[85]. - The total square footage of the wholly-owned portfolio increased to 33,512 thousand square feet as of March 31, 2025, up from 32,350 thousand square feet in 2024, representing a growth of 3.6%[86]. - The leased occupancy rate for the total portfolio was 97.1% as of March 31, 2025, slightly down from 97.2% in 2024[86]. - The average remaining lease term increased to 4.5 years as of March 31, 2025, compared to 4.3 years in 2024[86]. - The percentage of ABR from omni-channel grocery-anchored shopping centers was 95.3% as of March 31, 2025, down from 96.8% in 2024[86]. - The company has a portfolio of over 3,500 unique neighbors, with a focus on maintaining high occupancy rates to drive rental rate growth[90]. Financial Performance - The company's ABR (Annual Base Rent) reached $518,115 thousand as of March 31, 2025, compared to $479,159 thousand in 2024, indicating an increase of 8.1%[86]. - Rental income for the three months ended March 31, 2025, increased by $16.1 million, or 10.2%, compared to the same period in 2024, reaching $174.2 million[102]. - Total revenues for the same period rose to $178.3 million, reflecting a $17.0 million increase, or 10.5% year-over-year[102]. - Net income attributable to stockholders for the three months ended March 31, 2025, was $26.3 million, a 48.9% increase from $17.7 million in the same period of 2024[102]. - Operating expenses decreased by 9.3% year-over-year, totaling $128.4 million, primarily due to effective cost management strategies[102]. - Nareit FFO attributable to stockholders and OP unit holders increased to $89.05 million in Q1 2025 from $80.06 million in Q1 2024[114]. - Core FFO attributable to stockholders and OP unit holders rose to $90.77 million in Q1 2025 compared to $81.66 million in Q1 2024[114]. Leasing Activity - The number of new leases decreased from 84 in 2024 to 78 in 2025, while the square footage increased from 255,000 to 326,000[105]. - Average Base Rent (ABR) per square foot for new leases dropped from $25.24 in 2024 to $19.30 in 2025[105]. - The portfolio retention rate improved to 91.4% in 2025 from 87.9% in 2024[105]. - The weighted-average lease term for new leases was 8.3 years in 2025, slightly down from 8.5 years in 2024[105]. - The cost per square foot of executing new leases decreased from $34.09 in 2024 to $20.84 in 2025[105]. Debt and Liquidity - The net debt to adjusted EBITDAre ratio provides insight into the company's leverage rate based on earnings, which is not impacted by fluctuations in equity price[87]. - As of March 31, 2025, total debt obligations increased to $2,304,162 thousand from $2,137,336 thousand as of December 31, 2024, reflecting a growth of approximately 7.8%[122]. - The weighted-average interest rate on debt slightly increased to 4.4% as of March 31, 2025, compared to 4.3% as of December 31, 2024[122]. - Net debt to Adjusted EBITDAre increased to 5.3x as of March 31, 2025, up from 5.0x as of December 31, 2024[125]. - The company expects its current sources of liquidity to be sufficient to meet both short- and long-term cash demands[118]. Capital Expenditures and Investments - Total capital expenditures for real estate reached $24,382 thousand for the three months ended March 31, 2025, compared to $9,810 thousand for the same period in 2024, representing a significant increase of 148.5%[127]. - The company acquired 5 properties for a total contract price of $138,425 thousand during the three months ended March 31, 2025, compared to 2 properties for $55,902 thousand in the same period of 2024[130]. - Real estate acquisitions totaled $139.1 million for the three months ended March 31, 2025, compared to $56.2 million in the same period of 2024, reflecting a significant increase[137]. - Capital expenditures amounted to $26.4 million for the three months ended March 31, 2025, an increase of $13.4 million from $13.0 million in the same period of 2024[137]. - The company sold one property during the three months ended March 31, 2025, resulting in a net cash inflow of $6.5 million, while no properties were sold in the same period of 2024[137]. - Investment in unconsolidated joint ventures reached $3.5 million during the three months ended March 31, 2025[137]. Cash Flow and Distributions - Net cash provided by operating activities was $60,542 thousand for the three months ended March 31, 2025, a decrease of 4.1% from $63,138 thousand in the same period of 2024[134]. - The company reported a net cash decrease of $0.8 million during the three months ended March 31, 2025, with cash and cash equivalents totaling $7.9 million[134]. - Cash distributions to common stockholders and OP unit holders increased by $17.1 million for the three months ended March 31, 2025, primarily due to timing and an increase in shares outstanding[137]. - The company declared and paid monthly distributions of $0.1025 per common share and OP unit from January 2025 through March 2025[130]. Economic Outlook - The company estimates that inflation and economic uncertainties could negatively impact consumer spending and overall business performance[100]. - The company anticipates that obligations related to capital improvements and redevelopment in 2025 can be met with cash flows from operations, cash flows from dispositions, or borrowings on the unsecured revolving credit facility[127]. - The company expects development and redevelopment projects to stabilize within 24 months, with expected unlevered yields ranging between 9%-12%[128].

Financial Data and Key Metrics Changes - Same-center NOI increased by 3.9% in Q1 2025 [7][35] - Nareit FFO rose to $89 million or $0.64 per diluted share, reflecting year-over-year share growth of 8.5% [33] - Core FFO increased to $90.8 million or $0.65 per diluted share, with year-over-year per share growth of 8.3% [33] Business Line Data and Key Metrics Changes - Comparable renewal rent spreads were 20.8%, with in-line renewal rent spreads reaching a record high of 21.7% [19] - Comparable new leasing rent spreads for Q1 were 28.1%, and in-line new rent spreads remained strong at 27.5% [19] - Portfolio occupancy ended the quarter at 97.1% leased, with anchor occupancy at 98.4% [21] Market Data and Key Metrics Changes - 71% of the company's ABR comes from necessity-based goods and services, providing insulation from potential tariff disruptions [10] - The average population in PECO's 3-mile trade area is 68,000, with a median household income of $92,000, which is 12% higher than the U.S. median [24] Company Strategy and Development Direction - The company aims for gross acquisitions in the range of $350 million to $450 million for the year, targeting an unlevered IRR of 9% [13][14] - PECO's strategy focuses on grocery-anchored and necessity-based formats, which have historically outperformed during economic uncertainty [14][15] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the company's ability to deliver long-term growth despite macroeconomic uncertainties [15] - The company does not anticipate a recession but is prepared for potential impacts on discretionary spending [132][146] Other Important Information - The company has approximately $760 million of liquidity to support its acquisition plans and no meaningful debt maturity until 2027 [35] - 86% of PECO's total debt is fixed rate, aligning with the company's target of 90% [37] Q&A Session Summary Question: Can you provide insights on leasing seasonality and expectations for May ICSC? - Management noted that while there is typical first-quarter seasonality, leasing activity remains strong with more leases out for signature than last year [50][51] Question: What factors could lead to higher or lower FFO guidance? - Management indicated that improvements in capital markets could push FFO towards the higher end of guidance, while uncertainty may necessitate a conservative approach [58] Question: How is the company managing variable rate exposure? - The company is comfortable with its current variable rate exposure and plans to maintain a fixed balance sheet with a long-term goal of 90% fixed rate [66] Question: Are there any signs of slowing rent payments from retailers? - Management reported a decline in bad debt year-over-year and noted consistent rent payment receipts across categories [92] Question: What is the company's approach to acquisitions in the current market? - The company remains focused on acquiring assets with a target unlevered IRR of 9% and is optimistic about the acquisition pipeline despite market volatility [99][100]