Phillips Edison & Company Reports Fourth Quarter and Full Year 2025 Results

Core Insights - Phillips Edison & Company, Inc. (PECO) reported strong financial results for the fourth quarter and full year ended December 31, 2025, with net income attributable to stockholders of $47.5 million for Q4 and $111.3 million for the full year, reflecting significant growth compared to the previous year [1][4]. Financial Results - For Q4 2025, net income attributable to stockholders was $47.5 million, or $0.38 per diluted share, compared to $18.1 million, or $0.15 per diluted share in Q4 2024 [4]. - For the full year 2025, net income attributable to stockholders totaled $111.3 million, or $0.89 per diluted share, up from $62.7 million, or $0.51 per diluted share in 2024 [4]. Nareit FFO - Nareit FFO for Q4 2025 increased by 5.9% to $88.8 million, or $0.64 per diluted share, compared to $83.8 million, or $0.61 per diluted share in Q4 2024 [5][6]. - For the full year 2025, Nareit FFO rose 9.1% to $353.1 million, or $2.54 per diluted share, compared to $323.8 million, or $2.37 per diluted share in 2024 [6]. Core FFO - Core FFO for Q4 2025 increased by 6.2% to $91.1 million, or $0.66 per diluted share, compared to $85.8 million, or $0.62 per diluted share in Q4 2024 [7]. - For the full year 2025, Core FFO increased by 8.7% to $360.7 million, or $2.60 per diluted share, compared to $331.8 million, or $2.43 per diluted share in 2024 [7]. Same-Center NOI - Same-center NOI for Q4 2025 increased by 3.2% to $115.9 million, compared to $112.3 million in Q4 2024 [8]. - For the full year 2025, same-center NOI increased by 3.8% to $454.7 million, compared to $438.1 million in 2024 [8]. Portfolio Overview - As of December 31, 2025, PECO's portfolio consisted of 297 properties totaling approximately 33.5 million square feet, an increase from 294 properties totaling approximately 33.3 million square feet as of December 31, 2024 [9]. - The leased portfolio occupancy remained high at 97.3% as of December 31, 2025, compared to 97.7% at the end of 2024 [10]. Leasing Activity - In Q4 2025, 246 leases were executed totaling approximately 1.4 million square feet, compared to 231 leases totaling approximately 1.4 million square feet in Q4 2024 [12]. - For the full year 2025, 1,026 leases were executed totaling approximately 6.0 million square feet, compared to 1,021 leases totaling approximately 6.0 million square feet in 2024 [12]. 2026 Guidance - PECO provided guidance for 2026, projecting net income per share to be in the range of $0.74 to $0.77, Nareit FFO per share between $2.65 and $2.71, and Core FFO per share between $2.71 and $2.77 [19][22]. - The company anticipates same-center NOI growth of 3.00% to 4.00% for 2026 [22]. Balance Sheet Highlights - As of December 31, 2025, PECO had approximately $925.1 million of total liquidity, including $43.3 million in cash and cash equivalents, and $881.8 million of borrowing capacity on its revolving credit facility [16]. - The company's net debt to annualized adjusted EBITDAre was 5.2x as of December 31, 2025, compared to 5.0x at the end of 2024 [17].