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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's Q4 2025 Earnings: A Strong Performance

Phillips Edison reported a strong financial performance in Q4 2025, with NAREIT FFO per share growth of 7.2% and core FFO per share growth of 7%. The company's same-center NOI growth was 3.8%, driven by high demand for necessity-based retail. However, the actual EPS came out at $0.38, below estimates of $0.66. Revenue growth is expected to be 2.5% next year. The company's portfolio occupancy was 97.3%, with anchor occupancy at 98.7%. The company's liquidity stood at approximately $925 million, supporting its acquisition plans.

Publication Date: Feb -15

📋 Highlights
  • FFO & NOI Growth:: NAREIT FFO per share up 7.2%, core FFO up 7%, same-center NOI growth of 3.8% in 2025.
  • Leasing Performance:: Executed 1,026 leases (6M sq ft), achieving 97.3% portfolio occupancy and 98.7% anchor occupancy.
  • Liquidity & Guidance:: $925M liquidity, 2026 net income guidance of $0.74–$0.77/share, same-center NOI growth of 3–4%.
  • Acquisition Strategy:: 70% increase in opportunities reviewed, 67% rise in underwritten deals, targeting $1B+ in everyday retail assets by 2028.
  • Capital Deployment:: $70M allocated for ground-up development in 2026, 90% fixed-rate debt target, and $100–150M in asset dispositions planned.

Financial Highlights

The company's fourth-quarter results demonstrate a high-performing grocery-anchored and necessity-based portfolio that generates reliable, high-quality cash flows. As John Caulfield noted, "Our fourth quarter results demonstrate a high-performing grocery-anchored and necessity-based portfolio that generates reliable, high-quality cash flows." The company's net income guidance for 2026 is in the range of $0.74 to $0.77 per share, with same-center NOI growth in a range of 3% to 4%.

Valuation Metrics

To understand what's priced into Phillips Edison's stock, we can look at its valuation metrics. The company's P/E Ratio is 42.91, indicating a relatively high valuation. The P/B Ratio is 2.09, and the P/S Ratio is 6.61. Additionally, the EV/EBITDA ratio is 15.85. These metrics suggest that the company's stock may be trading at a premium to its earnings and book value.

Growth Prospects

The company is well-positioned for growth, with a disciplined investment strategy and a strong pipeline of acquisition opportunities. The company aims to invest $70 million in ground-up development this year, with a target of $50-70 million going forward. The company's acquisition plans remain on track to deliver attractive long-term IRRs, with targets of north of 9% for core acquisitions and north of 10% for Everyday Retail.

Dividend Yield and Cash Flow

The company's Dividend Yield is 3.3%, providing a relatively attractive return for income investors. Additionally, the Free Cash Flow Yield is 4.18%, indicating a healthy cash flow generation. The company's ROIC is 31.61%, and ROE is 4.86%, suggesting a strong return on investment.

3. NewsRoom

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3 Stocks That Cut You a Check Each Month

Feb -14

Source: fool.com

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Ameritas Advisory Services LLC Sells 18,860 Shares of Phillips Edison & Company, Inc. $PECO

Feb -14

Source: defenseworld.net

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Phillips Edison & Company Declares Monthly Dividends

Feb -12

Source: globenewswire.com

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Phillips Edison & Company, Inc. Q4 Earnings Call Highlights

Feb -08

Source: defenseworld.net

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Phillips Edison & Company, Inc. (PECO) Q4 2025 Earnings Call Transcript

Feb -06

Source: seekingalpha.com

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Why Phillips Edison & Company, Inc. (PECO) is a Top Dividend Stock for Your Portfolio

Feb -06

Source: zacks.com

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Here's What Key Metrics Tell Us About Phillips Edison & Company (PECO) Q4 Earnings

Feb -06

Source: zacks.com

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Phillips Edison & Company, Inc. (PECO) Matches Q4 FFO Estimates

Feb -05

Source: zacks.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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Phillips Edison

A-Score: 6.0/10

Value: 2.9

Growth: 5.7

Quality: 7.1

Yield: 7.0

Momentum: 3.5

Volatility: 10.0

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Quality: 6.0

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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

38.2$

Current Price

38.2$

Potential

-0.00%

Expected Cash-Flows