Phillips Edison & Company, Inc. (NASDAQ:PECO) Q2 2023 Earnings Conference Call August 2, 2023 12:00 PM ET Company Participants Kim Green - VP, IR Jeffrey Edison - Chairman & CEO Devin Murphy - President John Caulfield - CFO, EVP & Treasurer Conference Call Participants Caitlin Burrows - Goldman Sachs Group Jeffrey Spector - Bank of America Merrill Lynch Ronald Kamdem - Morgan Stanley Ravi Vaidya - Mizuho Securities Juan Sanabria - BMO Capital Markets Dori Kesten - Wells Fargo Securities Todd Thomas - KeyBan ...

Phillips Edison & Company, Inc. (NASDAQ:PECO) Q1 2023 Earnings Conference Call May 3, 2023 12:00 PM ET Company Participants Kimberly Green - Head, IR Jeff Edison - Chairman & CEO Devin Murphy - President John Caulfield - CFO Conference Call Participants Craig Schmidt - Bank of America Caitlin Burrows - Goldman Sachs Tayo Okusanya - Credit Suisse Mike Mueller - JP Morgan Haendel St. Juste - Mizuho Ronald Kamdem - Morgan Stanley Juan Sanabria - BMO Capital Markets Todd Thomas - KeyBanc Capital Markets Floris ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 000-54691 PHILLIPS EDISON & COMPANY, INC. (Exact name of registrant as specified in its charter) Maryland 27-1106076 (S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 000-54691 PHILLIPS EDISON & COMPANY, INC. (Exact name of registrant as specified in its charter) Maryland 27-1106076 (State o ...

Financial Data and Key Metrics Changes - The company reported a 22% increase in fourth quarter core FFO to $74 million or $0.56 per diluted share, driven by increased revenue from higher occupancy levels and strong leasing spreads [130] - Same-center NOI increased by 4.5% in 2022, with fourth quarter same-center NOI reaching $91 million, up 2.8% from a year ago [107][134] - The company ended the year with over $700 million of borrowing capacity available on its $800 million credit facility, with no significant debt maturity until the second quarter of 2024 [135] Business Line Data and Key Metrics Changes - The leasing portfolio occupancy increased by 30 basis points sequentially from the third quarter and by 110 basis points year-over-year, reaching an all-time high of 97.4% [112] - The fourth quarter retention rate was 92%, ahead of the historical average of 87% over the last five years [113] - Rental growth is expected to contribute 100 to 125 basis points through new and renewal leasing spreads and contractual rent increases, with redevelopment and development activity adding 75 to 125 basis points [110] Market Data and Key Metrics Changes - The company observed strong demand across all geographic regions, particularly in medical, quick-serve restaurants, and health and beauty sectors [113] - The demographic strength of trade areas is reinforced by continued demand from retailers for space at the centers, with median household incomes of $77,000, approximately 9% higher than the U.S. median [127] - The company has minimal exposure to distressed retailers, with the top 10 neighbors on the watch list representing just 2% of ABR [116] Company Strategy and Development Direction - The company is conservatively guiding to $200 million to $300 million in net acquisitions for the year, with the capability to acquire more if attractive opportunities arise [102] - The company plans to invest $50 million to $60 million in ground-up outparcel development and repositioning opportunities, with average estimated cash-on-cash yields between 9% and 11% [114][120] - The company has increased its targeted return for new acquisitions to an unlevered IRR of 9% or above, focusing on finding opportunities that meet this return objective [122] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the health of neighbors and the strength and diversity of the neighbor mix, highlighting the necessity-based focus of the portfolio [99] - The company believes it can deliver mid-to-high single-digit FFO per share growth on a long-term basis, supported by strong internal and external growth drivers [111] - Management noted that the current strong operating environment and positive momentum across leasing, redevelopment, and development are expected to continue [133] Other Important Information - The company continues to benefit from positive macroeconomic trends, including hybrid work, migration to the Sunbelt, and population shifts favoring suburban markets [107] - The company has a strong credit neighbor mix, with over 70% of rents coming from necessity-based goods and services [115] - The proposed Kroger and Albertsons merger is viewed positively by the company, with potential impacts on 33 stores within 3 miles of its centers [103] Q&A Session Summary Question: Can you discuss your decision to buy an asset with relatively lower occupancy? - The company is looking for properties with more growth potential and has adjusted its unlevered IRR from 8% to 9% as the cost of capital increases [8] Question: What are your thoughts on interest rates and swaps coming due? - Management is addressing debt maturities in 2024 and anticipates refinancing those maturities later this year with incremental long-term funding [18] Question: How do you view the acquisition market and pricing? - The company noted that volume is down due to a shift in the cost of capital, but they are finding select opportunities and are excited about potential acquisitions [32] Question: How is the composition of your small shop changing? - The company is seeing growth in medical retail, health and wellness, and quick-service restaurant concepts, indicating a shift in demand [70] Question: What is the outlook for 2023 given the macroeconomic environment? - Management believes that 98% of 2023 is already baked in based on historical renewal rates, providing confidence in their guidance [71][74]

PHILLIPS EDISON & COMPANY® Supplemental Disclosure Quarter Ended December 31, 2022 Grocery Centered. Community Focused. FINANCIAL RESULTS Consolidated Statements of Operations 14 EBITDAre Metrics (Quarterly) 19 Supplemental Statement of Operations Detail 23 Summary of Outstanding Debt 28 Disposition and Acquisition Summary 32 Glossary of Terms 61 | --- | --- | |----------------------------------------|-------| | | | | Wholly-Owned Portfolio Summary | 34 | | ABR by Neighbor Category | 35 | | Occupancy and AB ...

| --- | --- | --- | |-------|-----------------------------------------------------------------------------------------------------|-------| | | Nareit REITworld – November 2022 Investor Presentation Grocery Centered. Community Focused. | | | | | | | | | | | | | | Safe Harbor and Non-GAAP Disclosures Nasdag Listed PECO's Safe Harbor Statement Certain statements contained in this presentation ("we," the "Company," "our," or "us") other than historical facts may be considered forward-looking statements within ...

Financial Data and Key Metrics Changes - Third quarter 2022 Nareit FFO increased by 26.4% to $72 million or $0.55 per diluted share, benefiting from increased rental income and reduced interest expense [42] - Core FFO increased by 15.4% to $76.6 million, driven by higher occupancy levels and strong leasing spreads [42] - Same-center NOI increased to $92.5 million, up 4.3% from a year ago, primarily due to higher occupancy and increased average base rent per square foot [43] Business Line Data and Key Metrics Changes - Record occupancy level reached 97.1%, driving measurable growth in financial results [19] - Over 70% of rents come from necessity-based goods and services, with grocery sales in the U.S. growing by 8.4% year-to-date [20] - Average in-line neighbor health ratio stands at 10%, with expectations for incremental growth [60] Market Data and Key Metrics Changes - Suburban markets are gaining at the expense of urban markets, with retailers experiencing higher visits per location in suburban areas [30][28] - Migration trends since 2018 have made secondary markets more appealing for retailers, leading to increased demand in these areas [28][30] Company Strategy and Development Direction - The company focuses on owning grocery-anchored neighborhood shopping centers, capitalizing on structural and macroeconomic trends [9] - Future organic growth is expected from increased occupancy, contractual rent increases, and redevelopment activities [12] - The company is targeting an unlevered IRR of 9% and above for new acquisitions, reflecting a cautious approach in the current market [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges inflationary impacts and higher interest rates but believes the portfolio is well-positioned for a recession [10] - The company has a strong balance sheet, low leverage, and is located in growing markets, providing a competitive advantage [15] - Management remains optimistic about the grocery sector's performance, with grocers expected to continue driving foot traffic to centers [56] Other Important Information - The proposed merger between Kroger and Albertsons is viewed positively, as it strengthens the largest neighbor and enhances profitability [16] - The company has 17 projects under active construction, with an estimated total investment of $55 million and expected yields between 10% and 12% [36] Q&A Session Summary Question: Broader transaction market and cap rates - Management noted that the market is shifting to a buyer's market, with cap rates expanding and a focus on IRR rather than cap rates [52][53] Question: Impact of food inflation on grocer tenants - Foot traffic remains constant, but average spend per visit is higher, with grocers seeing sales increases and holding margins [55][56] Question: Health ratio for in-line tenants - The health ratio has held consistently at 10%, with potential for growth to around 12% as sales continue to grow [60][61] Question: Competition in the acquisition market - Competition has decreased significantly, with fewer active buyers compared to a year ago, making it more favorable for the company [78][81] Question: Impact of propco deal on the portfolio - Management is closely monitoring the situation, emphasizing the importance of having strong operators for grocery stores [84][85] Question: Out of period collections and bad debt - The company is back to normal levels of collections, with bad debt expected to return to historical levels in 2023 [90][91] Question: Assumptions for IRR calculations - IRR calculations are project-specific, with a focus on operational performance and maintaining or expanding cap rates [94][96] Question: $1 billion investment plan - The company is on track to meet its $1 billion acquisition target, with sufficient balance sheet capacity to pursue opportunities [110]

| --- | --- | --- | |-------|---------------------------------------------------|-------| | | | | | | | | | | Q3 2022 Investor Presentation Grocery Centered. | | | | Community Focused. | | | | | | | | | | | | | | | | | | Safe Harbor and Non-GAAP Disclosures Nasdag Listed PECO's Safe Harbor Statement Certain statements contained in this presentation ("we," the "Company," "our," or "us") other than historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securitie ...

Phillips Edison & Company Inc. (NASDAQ:PECO) Q2 2022 Earnings Conference Call August 5, 2022 12:00 PM ET Company Participants Kimberly Green - VP, IR Jeff Edison - Chairman and CEO Devin Murphy - President John Caulfield - CFO Conference Call Participants Craig Schmidt - Bank of America Hyoung Jhang - JPMorgan Floris van Dijkum - Compass Point Tayo Okusanya - Credit Suisse Operator Good morning, and welcome to Phillips Edison & Company’s Second Quarter 2022 Results Presentation. My name is Tanya and I will ...