PresentationGood day, and welcome to Phillips Edison & Company's webcast for its financial advisers and investors. My name is Christa, and I will be your operator today. Please note that today's webcast is being recorded.Kimberly GreenSenior Vice President & Head of Investor Relations Thank you, operator. Thank you for joining us for our September PECO GROW update. I'm joined on today's webcast by our Chairman and Chief Executive Officer, Jeff Edison; President, Bob Myers; and Chief Financial Officer, John ...

PresentationGood day, and welcome to Phillips Edison & Company's webcast for its financial advisers and investors. My name is Christa, and I will be your operator today. Please note that today's webcast is being recorded.Kimberly GreenSenior Vice President & Head of Investor Relations Thank you, operator. Thank you for joining us for our September PECO GROW update. I'm joined on today's webcast by our Chairman and Chief Executive Officer, Jeff Edison; President, Bob Myers; and Chief Financial Officer, John ...

Summary of Phillips Edison & Company Update - September 24, 2025 Company Overview - **Company**: Phillips Edison & Company (NasdaqGS:PECO) - **Industry**: Grocery-anchored neighborhood shopping centers Key Points and Arguments Macroeconomic Environment - Current inflation rate is 2.9%, near the 30-year average, indicating economic resilience despite inflation concerns [3][4] - Unemployment rate in August was 4.3%, which is low compared to long-term averages [3][4] - Phillips Edison & Company has limited exposure to heavily imported retail categories, mitigating tariff impacts [3][4] Business Performance and Growth - Increased full-year 2025 guidance due to strong retailer demand and higher rents [4][5] - Dividend distribution rate raised by 5.7%, marking the fifth consecutive annual increase [5][6] - Stock price is approximately 6% lower year-to-date, attributed to macroeconomic concerns and elevated interest rates [6][7] - Total return of approximately 47.3% since IPO through June 30, 2025 [7] Portfolio and Investment Strategy - Focus on necessity-based retail, with 70% of total rent from necessity-based goods and services [13][41] - Same-center NOI growth projected between 3% and 4% annually [9][14] - Strong acquisition pipeline with $302 million in acquisitions closed to date, targeting $350 million to $450 million for the year [8][9] - Low leverage at approximately 32% loan-to-value, providing financial capacity for growth [9][10] Resilience and Risk Management - Historical occupancy loss during economic downturns was minimal, with only 60 basis points during the pandemic [27][28] - Limited exposure to at-risk retailers, focusing on essential services [41][42] - Confidence in the ability to deliver strong earnings growth even in potential recession scenarios [26][27] Technological Advancements - Engaging in 20 active artificial intelligence projects aimed at improving operational efficiency [29][33] - Recognized with a Digital Innovation Award for best use of AI, highlighting commitment to technological advancements [33] Future Outlook - Management believes current stock price offers a favorable entry point for investors [19][49] - Commitment to increasing dividends as cash flow grows, maintaining a low payout ratio [46][47] - Potential for mergers or acquisitions if favorable opportunities arise [44][45] Community and Customer Focus - Emphasis on building community through tenant relationships, referring to tenants as "neighbors" [15][16] - Centers are strategically located in suburban markets with strong demographics, enhancing foot traffic [13][15] Additional Important Insights - The company is well-aligned with its investors, with management owning 8% of the company [17] - The focus on omnichannel retailing positions Phillips Edison & Company favorably in the evolving retail landscape [12][16] - The company’s strategy is designed to provide a balance of stability and growth, appealing to both retail and institutional investors [5][19]

September 2025 GROW with PECO GROCERY CENTERED. NEIGHBORHOOD FOCUSED. | 1 GROCERY CENTERED. NEIGHBORHOOD FOCUSED. | 2 Safe Harbor and Non-GAAP Disclosures PECO's Safe Harbor Statement This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking state ...

Core Viewpoint - Phillips Edison & Company, Inc. (PECO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which are crucial for stock price movements [1][4][6]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2][5]. - The recent upgrade reflects an improvement in Phillips Edison & Company's earnings outlook, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Institutional Investors - Changes in earnings estimates significantly influence stock price movements, as institutional investors use these estimates to determine the fair value of shares, leading to buying or selling actions that affect stock prices [5][6]. Historical Performance of Zacks Ratings - The Zacks Rank stock-rating system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988, highlighting the effectiveness of tracking earnings estimate revisions for investment decisions [8][10]. Current Earnings Estimates for Phillips Edison & Company - For the fiscal year ending December 2025, Phillips Edison & Company is expected to earn $2.58 per share, with a 0.9% increase in the Zacks Consensus Estimate over the past three months [9][11]. Positioning within Zacks Ratings - The upgrade to Zacks Rank 2 places Phillips Edison & Company in the top 20% of Zacks-covered stocks based on estimate revisions, suggesting potential for market-beating returns in the near term [10][11].

Core Insights - Phillips Edison & Company, Inc. (PECO) is hosting a PECO GROW Update for financial advisors and retail investors on September 24, 2025, at 12:00 p.m. ET to discuss business developments and answer questions [1][2] 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 June 30, 2025, PECO managed 327 shopping centers, including 303 wholly-owned centers totaling 34.0 million square feet across 31 states [4] - The company focuses on creating omni-channel shopping experiences and improving communities through its shopping centers, which feature national and regional retailers [4] Webcast Details - The PECO GROW webcast will be hosted by Chairman and CEO Jeff Edison, President Bob Myers, and CFO John Caulfield [2] - The webcast will be accessible via a toll-free dial-in number and an international dial-in number, with a conference ID provided for participants [3] - An audio replay of the webcast will be available approximately one hour after the presentation [3]

Core Insights - The company aims to achieve 3% to 4% growth in Net Operating Income (NOI) annually, which is expected to translate into mid- to high single-digit growth in Funds From Operations (FFO) per share [2] - For the current year, the company anticipates delivering 3% to 4% NOI growth, with FFO growth projected between 6% and 7% [3] - The company has recently increased its dividend by nearly 6% [3]

Core Insights - The company aims to achieve 3% to 4% growth in Net Operating Income (NOI) annually, which is expected to translate into mid- to high single-digit growth in Funds From Operations (FFO) per share [2] - For the current year, the company anticipates delivering 3% to 4% NOI growth and FFO growth between 6% and 7%, whether measured by NAREIT or core metrics [3] - The company has recently increased its dividend by nearly 6% [3]

Summary of Phillips Edison & Company Conference Call Company Overview - **Company**: Phillips Edison & Company (NasdaqGS:PECO) - **Industry**: Grocery-anchored neighborhood shopping centers - **Portfolio**: Over 300 shopping centers across 31 states, approximately 32 to 33 million square feet [5][7] Key Financial Metrics - **NOI Growth**: Expected annual growth of 3% to 4% [4] - **FFO Growth**: Projected growth between 6% and 7% for the current year [4] - **Dividend Increase**: Recently raised dividend by almost 6% [4] - **Occupancy Rates**: - Overall occupancy: 97.4% - Anchor occupancy: 98.9% - Inline occupancy: 94.8% [5][18] - **Retention Rate**: 94% [5] Leasing and Market Dynamics - **Leasing Spreads**: - New leasing spreads: 30% to 35% - Renewal spreads: approximately 20% with a 3% compound annual growth rate [5][11] - **Market Adaptation**: Retailers have adapted to tariff uncertainties, maintaining expansion plans [10][11] - **Necessity-based Rent Roll**: 70% of rent roll is necessity-based, indicating stability [5][13] Competitive Landscape - **Amazon's Grocery Delivery**: Challenges in profitability for Amazon's grocery delivery; expansion of Whole Foods stores planned [14][15] - **Walmart's Progress**: Walmart is making strides in the grocery business, but the transition from online to bricks-and-mortar remains complex [15] Growth Strategies - **Occupancy Growth Potential**: Inline occupancy expected to increase to 96.5% over the next 18 to 24 months [18] - **Active Development Programs**: - Outparcel development and redevelopment programs expected to contribute 100 to 120 basis points of growth annually [20] - Annual spending of about $50 million on these programs [20] - **Acquisition Strategy**: - Year-to-date acquisitions of $303 million; focus on grocery-anchored centers [23][24] - Targeting unlevered IRR above 9% for acquisitions [23] - Competitive pricing environment noted, with cap rates ranging from 5.75% to 6.6% [25] Financial Management - **Leverage**: Current leverage at 5.4 times, with a long-term target of about 5.5 times [26][40] - **Balance Sheet Strength**: BBB flat rating, with no significant maturities until 2027 [40] Redevelopment Insights - **Redevelopment Yields**: Current yields on redevelopment projects range from 9% to 12% cash-on-cash [42][43] - **Teardown Rebuilds**: Focus on projects for Publix, with significant returns expected [42] Conclusion Phillips Edison & Company is positioned for steady growth through its focus on grocery-anchored shopping centers, strong occupancy rates, and strategic acquisitions. The company is navigating market challenges while maintaining a robust financial profile and development pipeline.

Core Viewpoint - Phillips Edison & Company, Inc. announced a 5.7% increase in monthly dividend distributions, reflecting strong operational performance and cash flow growth [1][3]. Dividend Distribution - The Board approved a monthly dividend rate of $0.1083 per share, which annualizes to $1.30 per share, up from the previous $1.23 per share [2]. - This marks the fifth consecutive annual increase in dividend distributions and the second consecutive increase exceeding 5% [3]. Company Performance - Jeff Edison, Chairman and CEO, highlighted the company's ability to deliver solid growth through various economic cycles, emphasizing the favorable balance of defense, offense, and growing cash flow for shareholders [3]. - As of June 30, 2025, the company managed 327 shopping centers, including 303 wholly-owned centers totaling 34.0 million square feet across 31 states [4]. Company Overview - Phillips Edison & Company is one of the largest owners and operators of grocery-anchored neighborhood shopping centers in the U.S., focusing on necessity-based goods and services [4]. - The company features a mix of national and regional retailers, with top grocery anchors including Kroger, Publix, Albertsons, and Ahold Delhaize [4].