Core Insights - Exelon Corporation reported strong operational and financial performance for the third quarter of 2025, with adjusted operating earnings of $0.86 per share, up from $0.71 per share in the same quarter of 2024 [2][3][5] - The company reaffirmed its full-year earnings guidance of $2.64 to $2.74 per share and projected a compounded annual growth rate of 5-7% in operating EPS from 2024 to 2028 [5][12] - Exelon plans to invest $38 billion in critical infrastructure over the next four years to enhance service reliability and affordability for customers [2][5] Financial Performance - Exelon's GAAP net income for Q3 2025 increased to $0.86 per share from $0.70 per share in Q3 2024 [3][5] - Adjusted operating earnings for Q3 2025 also rose to $0.86 per share from $0.71 per share in Q3 2024 [3][5] - The increase in earnings was primarily driven by higher utility earnings due to improved distribution and transmission rates at ComEd and PHI, as well as lower storm costs at PECO and BGE [4][6] Business Unit Performance - ComEd's GAAP net income for Q3 2025 rose to $373 million from $360 million in Q3 2024, attributed to higher distribution and transmission rates [7] - PECO's GAAP net income significantly increased to $250 million from $117 million in Q3 2024, driven by updated recovery of investments and lower storm costs [8] - BGE's GAAP net income grew to $82 million from $45 million in Q3 2024, mainly due to updated distribution rates and lower storm costs [10] - PHI's GAAP net income increased to $291 million from $278 million in Q3 2024, supported by improved distribution and transmission rates [11] Recent Developments - Exelon's Board of Directors declared a quarterly dividend of $0.40 per share, payable on December 15, 2025 [12][14] - Pepco filed an application for a $133 million increase in its electric distribution rates to support infrastructure investments and state climate goals [17] - Pepco completed a $75 million bond issuance to repay existing debt and for general corporate purposes [17]

Core Insights - The article posits that the value of shopping centers is expected to rise significantly due to low vacancy rates and high incremental demand for retail space [1][25][38] - Current construction costs are prohibitively high, making new developments unfeasible until rental rates increase substantially [12][24][27] Vacancy and Demand - National shopping center vacancy is at 4.1%, close to historical lows, indicating near full occupancy [3][6] - Incremental demand for retail space remains high, with strong lease signings reported at industry conferences [7][11] - Existing shopping centers are experiencing minimal vacancy, necessitating new space for additional demand [8][11] Construction Costs - The cost to build new shopping centers ranges from $300 to $500 per square foot, with an average reported cost of $394 per square foot [12][17][18] - Current net operating income (NOI) per square foot is insufficient to support these construction costs, with average rent at $20.33 per square foot [20][22] Rental Rate Dynamics - Shopping center REITs are experiencing rental rate increases of over 20% on new leases, indicating a strong upward trend in rental rates [26][27] - The estimated rental rate needed to justify new construction is around $45 per square foot, which is approximately double the current rates [26][27] Valuation and Investment Opportunities - The average shopping center REIT trades at 15.9 times the current year estimated adjusted funds from operations (AFFO), suggesting the sector is undervalued [28][30] - Shopping center REITs are trading at a significant discount to replacement costs, which are estimated between $400 and $450 per square foot [37][36] - There is strong private investor demand for shopping centers, as new construction is not viable, leading to potential acquisitions of existing properties [39]