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1. Company Snapshot

1.a. Company Description

Phillips Edison & Company, Inc.(“PECO”), an internally-managed REIT, is one of the nation's largest owners and operators of grocery-anchored shopping centers.PECO's diversified portfolio of well-occupied neighborhood shopping centers features a mix of national and regional retailers selling necessity-based goods and services in fundamentally strong markets throughout the United States.


Through its vertically-integrated operating platform, the Company manages a portfolio of 309 properties, including 283 wholly-owned properties comprising approximately 31.7 million square feet across 31 states (as of September 30, 2020).PECO has generated strong operating results over its 29+ year history and has partnered with leading institutional commercial real estate investors, including TPG Real Estate and The Northwestern Mutual Life Insurance Company.The Company remains exclusively focused on creating great grocery-anchored shopping experiences and improving the communities it serves one center at a time.

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1.b. Last Insights on PECO

Phillips Edison & Company's recent performance was driven by strong Q3 2024 earnings, with net income attributable to stockholders reaching $11.6 million, or $0.09 per diluted share. The company beat FFO and revenue estimates, with FFO of $0.62 per share, surpassing the Zacks Consensus Estimate of $0.61 per share. Additionally, the company declared a monthly dividend distribution of $0.1025 per share, providing a current forward yield of 3.12%. The company's strong earnings and dividend payout are likely to attract investors, making it an attractive option in the REIT space.

1.c. Company Highlights

2. Phillips Edison & Company's Q3 2025 Earnings: Solid Growth and Strategic Asset Recycling

Phillips Edison & Company's (PECO) third-quarter 2025 earnings report showcased a strong financial performance, with NAREIT FFO increasing to $89.3 million or $0.64 per diluted share, reflecting year-over-year per share growth of 6.7%. The actual EPS was $0.2, which is lower than the estimated $0.64. The company's revenue growth was driven by its grocery-anchored neighborhood centers and necessity-based tenant mix, providing predictable cash flows and downside protection.

Publication Date: Oct -27

📋 Highlights
  • Growth Guidance Increase:: NAREIT and core FFO per share guidance midpoints rose 6.8% and 6.6% year-over-year, respectively.
  • Portfolio Composition:: 70% of assets are necessity-based tenants (grocery-anchored), ensuring stable cash flows and downside protection.
  • Transactions Activity:: Year-to-date acquisitions reached $472 million ($376M + $96M post-quarter), with $44 million in dispositions to date.
  • Debt Leverage:: Net debt to EBITDAR stood at 5.3x, below the long-term target of 5.5x, supporting acquisition capacity.
  • Occupancy & Rent Growth:: 94% retention rate and 23.3% renewal spread, with 125-150 bps occupancy upside potential in inline spaces.

Financial Highlights

The company's net debt to trailing twelve-month annualized adjusted EBITDAR was 5.3 times as of September 30, 2025. PECO's same-center NOI growth is expected to be between 1-2% in 2025, and the company anticipates delivering mid to high single-digit core FFO per share growth on an annual basis. Analysts estimate next year's revenue growth at 6.0%.

Asset Recycling and Redevelopment

PECO is focused on recycling lower IRR properties into higher IRR properties to drive strong earnings growth. The company acquired 34 acres of land in Ocala, Florida, for a grocery-anchored retail development, expected to deliver a 10.5% unlevered return. The redevelopment pipeline is a key area of focus, with a target size of $50 million to $60 million per year for the next three years, expected to contribute 100-125 basis points to same-store NOI growth.

Valuation and Growth Prospects

With a P/E Ratio of 58.2 and an EV/EBITDA of 10.77, the market is pricing in significant growth expectations. The company's ROE is 3.75%, and ROIC is 57.48%, indicating efficient capital allocation. The Dividend Yield is 3.58%, providing a relatively stable return for investors. PECO's long-term NOI growth target is 3% to 4% on an occupancy-neutral basis, driven by rent bumps and strong leasing spreads.

Outlook and Strategy

PECO plans to continue growing same-center NOI and is excited about the opportunity set, particularly in unanchored centers, expecting higher yields and over 10% unlevered returns. The company targets a leverage ratio of 5.5 times and currently stands at 5.1 times, indicating capacity for further acquisitions. As John P. Caulfield noted, the company focuses on forward NOI growth and doesn't solely emphasize cap rates, targeting inefficiencies in the market to deliver mid to high single-digit core FFO per share growth annually.

3. NewsRoom

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Edgestream Partners L.P. Decreases Stock Holdings in Phillips Edison & Company, Inc. $PECO

Dec -04

Source: defenseworld.net

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PECO or REG: Which Is the Better Value Stock Right Now?

Nov -27

Source: zacks.com

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B&I Capital AG Reduces Stock Position in Phillips Edison & Company, Inc. $PECO

Nov -27

Source: defenseworld.net

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Creative Planning Purchases 3,371 Shares of Phillips Edison & Company, Inc. $PECO

Nov -26

Source: defenseworld.net

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2 Best Monthly Paying Dividend Stocks in the Nasdaq Composite

Nov -21

Source: 247wallst.com

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Envestnet Asset Management Inc. Buys 1,797 Shares of Phillips Edison & Company, Inc. $PECO

Nov -17

Source: defenseworld.net

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3 Monthly Dividend Stocks With Big Upside Potential

Nov -14

Source: 247wallst.com

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Phillips Edison & Company Declares Monthly Dividends

Nov -05

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.51%)

6. Segments

Rental

Expected Growth: 6.5%

Phillips Edison & Company's 6.5% rental growth is driven by increasing demand for grocery-anchored shopping centers, strategic acquisitions, and rent escalations. Additionally, the company's focus on essential retail and necessity-based tenants has contributed to its resilience and growth. Effective asset management and capital recycling also support the company's ability to drive rental income growth.

Fees and Management

Expected Growth: 6.8%

Phillips Edison & Company's 6.8% growth in Fees and Management is driven by increasing same-store net operating income, strategic acquisitions, and expansion of its third-party management business. Additionally, the company's focus on grocery-anchored shopping centers and its ability to maintain high occupancy rates also contribute to its growth.

Other Property

Expected Growth: 7.2%

Phillips Edison & Company's 7.2% growth in Other Property is driven by strategic acquisitions, increasing occupancy rates, and rent growth. Additionally, the company's focus on necessity-based retail and grocery-anchored centers has insulated it from e-commerce headwinds, while its value-add initiatives and capital recycling program have enhanced property values and driven NOI growth.

7. Detailed Products

Net Lease Properties

Phillips Edison & Company, Inc. acquires and manages a diversified portfolio of net lease properties, providing a steady income stream to investors.

Grocery-Anchored Shopping Centers

The company develops, owns, and operates grocery-anchored shopping centers, providing essential goods and services to local communities.

Power Centers

Phillips Edison & Company, Inc. develops and manages power centers, offering a mix of retail, dining, and entertainment options.

Retail Services

The company provides a range of retail services, including property management, leasing, and redevelopment, to enhance the value of its properties.

Investment Management

Phillips Edison & Company, Inc. offers investment management services, providing access to a diversified portfolio of net lease properties.

8. Phillips Edison & Company, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Phillips Edison & Company, Inc. operates in the real estate investment trust (REIT) industry, which has a moderate threat of substitutes. While there are alternative investment options available, such as stocks and bonds, REITs offer a unique combination of income and diversification benefits that make them an attractive option for investors.

Bargaining Power Of Customers

Phillips Edison & Company, Inc. has a diversified portfolio of properties, which reduces the bargaining power of individual customers. Additionally, the company's properties are primarily leased to national and regional retailers, which have limited negotiating power.

Bargaining Power Of Suppliers

Phillips Edison & Company, Inc. has a moderate level of bargaining power with its suppliers, including contractors, architects, and engineers. While the company has some negotiating power due to its size and scale, suppliers may still have some bargaining power due to the specialized nature of their services.

Threat Of New Entrants

The REIT industry has significant barriers to entry, including high capital requirements and regulatory hurdles. Additionally, Phillips Edison & Company, Inc. has a established track record and a strong brand, making it difficult for new entrants to compete.

Intensity Of Rivalry

The REIT industry is highly competitive, with many established players competing for a limited number of investment opportunities. Phillips Edison & Company, Inc. faces intense competition from other REITs, private equity firms, and institutional investors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.35%
Debt Cost 4.55%
Equity Weight 52.65%
Equity Cost 5.52%
WACC 5.06%
Leverage 89.92%

11. Quality Control: Phillips Edison & Company, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.88$

Current Price

34.88$

Potential

-0.00%

Expected Cash-Flows