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]

CINCINNATI, July 24, 2025 (GLOBE NEWSWIRE) -- Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO” or the “Company”), one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers, today reported financial and operating results for the period ended June 30, 2025 and increased full year 2025 earnings guidance. For the three and six months ended June 30, 2025, net income attributable to stockholders was $12.8 million, or $0.10 per diluted share, and $39.1 m ...