Financial Data and Key Metrics Changes - Same center NOI increased by 4.2% and core FFO per share increased by 8.5% year-over-year [5][26] - NAREIT FFO for the second quarter increased to $86 million or $0.62 per diluted share, reflecting year-over-year per share growth of 8.8% [26] - Core FFO for the second quarter increased to $88.2 million or $0.64 per diluted share, reflecting year-over-year per share growth of 8.5% [26] - The company raised its full-year 2025 earnings guidance for same center NOI, core FFO per share, and NAREIT FFO per share [5][29] Business Line Data and Key Metrics Changes - The company reported strong leasing momentum with comparable renewal rent spreads of 19.1% and comparable new leasing rent spreads of 34.6% for the second quarter [18][19] - Portfolio occupancy remained high at 97.4% leased, with anchor occupancy at 98.9% [19][20] - Bad debt increased from a year ago but remained within guidance range, indicating strong retailer demand [21] Market Data and Key Metrics Changes - Approximately 70% of the company's ABR comes from necessity-based goods and services, providing predictable cash flows [10] - The average population in the three-mile trade area is 68,000 with a median household income of $92,000, which is 15% above the US median [22] - The company has limited exposure to distressed retailers, with the top 10 neighbors on the watch list representing about 2% of ABR [23] Company Strategy and Development Direction - The company focuses on a grocery-anchored portfolio and necessity-based neighbor mix to drive growth and stability [6][17] - The acquisition strategy emphasizes disciplined buying and targeting high-quality centers below replacement costs [14][30] - The company aims for mid to high single-digit core FFO per share growth annually on a long-term basis [9][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the consumer and the portfolio's ability to outperform despite potential tariff impacts [15][72] - The company anticipates continued strong demand from retailers, particularly in grocery-anchored centers [12][99] - Management noted that while consumer sentiment appears negative, sales continue to grow, indicating strong foot traffic at their centers [99][100] Other Important Information - The company has approximately $972 million of liquidity to support acquisition plans and no meaningful debt maturities until 2027 [27] - The weighted average interest rate on debt is 4.4%, with 95% of total debt being fixed rate [28] - The company completed a bond offering of 5.25% senior notes due in 2032 to replenish liquidity [28] Q&A Session Summary Question: What has allowed the company to win transactions in a competitive market? - The company has been active in multiple markets, acquiring properties one at a time, which has contributed to strong acquisition volume [33][34] Question: When will the headwinds from tenant turnover be resolved? - The company has backfilled about 70% of vacancies and expects continued strong leasing demand, with rent coming online in 2026 [36][39] Question: What is the outlook for same store NOI growth in the second half? - The company projects consistent growth for the remainder of the year, with expectations for sequential improvement from Q2 [44][46] Question: How is the company managing variable rate debt? - The company maintains a target of 90% fixed rate debt and is cautious about increasing variable rate exposure [58][61] Question: What is the impact of tariffs on the company's portfolio? - The company has limited exposure to tariffs, with most tenants able to pass costs onto suppliers, resulting in minimal impact on leasing [72] Question: Are there any grocers expanding in the company's markets? - Grocers such as Sprouts, Kroger, Publix, Whole Foods, and Walmart are actively expanding, with Kroger's store closures being managed effectively [107][108]

Financial Data and Key Metrics Changes - Same center NOI increased by 4.2% and core FFO per share increased by 8.5% in Q2 2025 [4][22] - NAREIT FFO increased to $86 million or $0.62 per diluted share, reflecting year-over-year per share growth of 8.8% [22] - Core FFO increased to $88.2 million or $0.64 per diluted share, reflecting year-over-year per share growth of 8.5% [22] - The company raised its full-year 2025 earnings guidance for same center NOI, core FFO per share, and NAREIT FFO per share [4][25] Business Line Data and Key Metrics Changes - The company reported strong leasing momentum with comparable renewal rent spreads of 19.1% and new leasing rent spreads of 34.6% in Q2 [15][16] - Portfolio occupancy remained high at 97.4% leased, with anchor occupancy at 98.9% [16][17] - Bad debt increased from a year ago but remained within guidance range, indicating strong retailer demand [18] Market Data and Key Metrics Changes - Approximately 70% of the company's ABR comes from necessity-based goods and services, providing predictable cash flows [8] - The average population in the three-mile trade area is 68,000 with a median household income of $92,000, which is 15% above the US median [19] - The company has limited exposure to distressed retailers, with the top 10 neighbors on the watch list representing about 2% of ABR [20] Company Strategy and Development Direction - The company focuses on a grocery-anchored portfolio and necessity-based retail, which has created a resilient portfolio [5][6] - The acquisition strategy is disciplined, targeting high-quality centers below replacement costs with strong growth profiles [12][26] - The company aims for mid to high single-digit core FFO per share growth annually on a long-term basis [7][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the consumer and the company's ability to outperform as retailer demand remains strong [13] - The company anticipates continued strong leasing demand and a healthy development pipeline [10] - Management noted that while tariffs are a concern, approximately 85% of neighbors based on ABR will experience limited impact [8][68] Other Important Information - The company has approximately $972 million of liquidity to support acquisition plans and no meaningful maturities until 2027 [23] - The weighted average interest rate of the company's debt is 4.4%, with 95% of total debt being fixed rate [24] - The company completed $133 million in asset purchases during the quarter, bringing year-to-date gross acquisitions to $287 million [12] Q&A Session Summary Question: What has allowed PICO to win transactions in a competitive market? - Management attributed success to a disciplined acquisition strategy and active participation in multiple markets [29][30] Question: When will tenant replacement headwinds be resolved? - Management indicated that backfilling efforts are ongoing, with strong demand for junior boxes and inline spaces [32][35] Question: What is the outlook for same store NOI growth in the second half? - Management projected consistent growth for the remainder of the year, with expectations for sequential improvement [40][41] Question: How is the transaction market currently? - Management noted that while there is more product on the market, they remain disciplined in their acquisition strategy [49][50] Question: What is the company's stance on variable rate debt? - Management confirmed that 95% of debt is fixed and they will manage variable rate exposure opportunistically [51][54] Question: How does the company view consumer behavior amidst economic uncertainty? - Management observed strong foot traffic and sales growth despite negative consumer sentiment, attributing this to low unemployment rates [94][96] Question: Are there any impacts from Kroger's store closures? - Management confirmed one Kroger location on the closure list but noted a replacement grocer is already secured for that site [102][103]

Company Overview - PECO's total enterprise value is $7.3 billion[7] - The company's dividend yield is 3.5%, based on an annualized rate of $1.23 per share[7] - PECO retains 94% of its portfolio[7] Portfolio Composition & Strategy - 70% of PECO's ABR (Annual Base Rent) comes from necessity-based neighbors[7] - 85% of PECO's ABR is anchored by 1 or 2 grocery sales[7] - Grocery/Pharmacy/Liquor account for 23% of imported COGS (Cost of Goods Sold)[34] Financial Performance & Guidance - PECO's Q2 2025 Net Income per Share is $0.31[54] - The company's Core FFO (Funds From Operations) per share for Q2 2025 is $1.29[54] - PECO projects a full-year 2025 Core FFO per share between $2.55 and $2.60[54] - Same-Center NOI (Net Operating Income) growth is guided between 3.10% and 3.60% for full-year 2025[54] Acquisition Activity - PECO's 2025 YTD (Year-to-Date) acquisitions total $279.7 million[54] - The company anticipates total acquisitions between $350 million and $450 million for full-year 2025[54] - PECO has acquired 1,173,733 GLA (Gross Leasable Area) in 2025 YTD acquisitions[52]

Financial Performance - For the quarter ended June 2025, Phillips Edison & Company, Inc. (PECO) reported revenue of $177.75 million, reflecting a 10.1% increase year-over-year [1] - The earnings per share (EPS) for the quarter was $0.64, significantly up from $0.12 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $176.99 million, resulting in a surprise of +0.43% [1] - The company delivered an EPS surprise of +1.59%, with the consensus EPS estimate being $0.63 [1] Revenue Breakdown - Rental income was reported at $173.47 million, surpassing the average estimate of $172.41 million by two analysts, marking a year-over-year increase of +9.6% [4] - Other property income reached $0.97 million, exceeding the average estimate of $0.78 million, representing a year-over-year change of +37.2% [4] - Fees and management income amounted to $3.32 million, compared to the average estimate of $2.64 million, indicating a year-over-year increase of +31.5% [4] Stock Performance - Shares of Phillips Edison & Company have returned +1% over the past month, while the Zacks S&P 500 composite increased by +5.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

分组1 - Phillips Edison & Company reported quarterly funds from operations (FFO) of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, and up from $0.59 per share a year ago, representing an FFO surprise of +1.59% [1] - The company achieved revenues of $177.75 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.43%, compared to $161.51 million in the same quarter last year [2] - Over the last four quarters, Phillips Edison & Company has exceeded consensus FFO estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has underperformed the market, losing about 7.1% since the beginning of the year, while the S&P 500 gained 8.1% [3] - The current consensus FFO estimate for the coming quarter is $0.64 on revenues of $179.82 million, and for the current fiscal year, it is $2.55 on revenues of $718.36 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Retail is currently in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

F I N A N C I A L R E S U L T S Table of Contents INTRODUCTORY NOTES T R A N S A C T I O N A L S U M M A RY P O R T F O L I O S U M M A RY P hillip s E dis o n & C o m p a n y | W h olly - O w n e d P o r t f olio S u m m a r y | 3 4 | | --- | --- | | A B R b y N eig h b o r C a t e g o r y | 3 5 | | O c c u p a n c y a n d A B R | 3 6 | | To p 2 5 N eig h b o r s b y A B R | 3 7 | | N eig h b o r s b y Ty p e a n d I n d u s t r y | 3 8 | | P r o p e r tie s b y S t a t e | 3 9 | | N e w , R e n e w al, a ...

Core Viewpoint - Phillips Edison & Company, Inc. (PECO) reported solid financial and operational results for Q2 2025, with an increase in full-year earnings guidance, reflecting strong demand in its grocery-anchored portfolio [1][3][21]. Financial Results - For Q2 2025, net income attributable to stockholders was $12.8 million, or $0.10 per diluted share, compared to $15.3 million, or $0.12 per diluted share in Q2 2024 [4]. - For the six months ended June 30, 2025, net income attributable to stockholders totaled $39.1 million, or $0.31 per diluted share, up from $32.9 million, or $0.27 per diluted share in the same period of 2024 [4]. - Nareit FFO for Q2 2025 increased by 9.8% to $86.0 million, or $0.62 per diluted share, compared to $78.4 million, or $0.57 per diluted share in Q2 2024 [5][6]. - Core FFO for Q2 2025 rose by 10.3% to $88.2 million, or $0.64 per diluted share, compared to $80.0 million, or $0.59 per diluted share in Q2 2024 [7]. Operational Highlights - Same-center NOI grew by 4.2% to $114.5 million in Q2 2025, compared to $109.8 million in Q2 2024 [8]. - The company reported a strong leased portfolio occupancy of 97.4% as of June 30, 2025, slightly down from 97.5% a year earlier [10]. - The company executed 276 leases totaling approximately 1.4 million square feet in Q2 2025, compared to 277 leases totaling approximately 1.7 million square feet in Q2 2024 [12]. Portfolio Overview - As of June 30, 2025, PECO's wholly-owned portfolio consisted of 303 properties totaling approximately 34.0 million square feet, an increase from 286 properties totaling approximately 32.6 million square feet a year earlier [9]. - The company completed $287 million in acquisitions to date in 2025, with a full-year acquisition guidance range of $350 million to $450 million [3][5]. Balance Sheet Highlights - As of June 30, 2025, PECO had approximately $972 million in total liquidity, including $9.2 million in cash and cash equivalents [18]. - The company's outstanding debt had a weighted-average interest rate of 4.4% and 95.0% of total debt was fixed-rate [19]. 2025 Guidance - PECO increased its 2025 earnings guidance, projecting net income per share of $0.61 to $0.64, Nareit FFO per share of $2.50 to $2.54, and Core FFO per share of $2.55 to $2.60 [21][22].

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]