Core Viewpoint - Phillips Edison & Company, Inc. (PECO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade reflects an improvement in the earnings outlook for Phillips Edison & Company, which could positively affect its stock price [4][6]. Impact of Earnings Estimate Revisions - Changes in future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant price movements based on their buying or selling activities [5]. Current Earnings Estimates for Phillips Edison & Company - The company is projected to earn $2.58 per share for the fiscal year ending December 2025, with no year-over-year change [9]. - Over the past three months, the Zacks Consensus Estimate for Phillips Edison & Company has increased by 0.4% [9]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks averaging an annual return of +25% since 1988 [8]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [10][11].

Core Insights - The Nasdaq Composite Index includes stocks that provide monthly dividends, appealing to investors seeking regular passive income [2][3] Company Summaries AGNC Investment Corp. - AGNC Investment Corp. reported Q3 revenue of $836 million and net income of $0.72 per share, with a portfolio valued at $90.8 billion [4][7] - The company offers a high dividend yield of 14.30% and has a stock price of $10, which has increased by 8.5% in 2025, nearing its 52-week high of $10.63 [5][6] - AGNC exclusively invests in U.S. government agency mortgage securities and employs leverage through repurchase agreements to enhance returns [6][7] - The company has a payout ratio of 93.51% and announced a monthly dividend of $0.12, having consistently paid dividends since its inception in 2008 [6][8] Phillips Edison - Phillips Edison reported a 97.6% occupancy rate and raised its 2025 net income guidance to a range of $0.62-$0.65 per share [4]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Viewpoint - Phillips Edison & Company, Inc. (PECO) announced monthly dividend distributions of $0.1083 per share for its common stock, payable from December 2025 to March 2026, indicating a commitment to returning value to shareholders [1]. Company Overview - PECO is one of the largest owners and operators of grocery-anchored neighborhood shopping centers in the United States, founded in 1991 [3]. - As of September 30, 2025, PECO managed 328 shopping centers, including 303 wholly-owned centers totaling 34.0 million square feet across 31 states [3]. - The company focuses on necessity-based goods and services, featuring top grocery anchors such as Kroger, Publix, Albertsons, and Ahold Delhaize [3]. Dividend Information - The monthly dividend of $0.1083 per share will be payable on December 2, 2025; January 6, 2026; February 3, 2026; and March 3, 2026 [1]. - Stockholders of record will be those as of November 17, 2025; December 15, 2025; January 15, 2026; and February 17, 2026 [1]. - Operating partnership unit holders will receive distributions at the same rate as common stockholders, subject to tax withholding [2].

Core Insights - Phillips Edison & Company (NASDAQ: PECO) is a significant player in the REIT sector, focusing on grocery-anchored neighborhood shopping centers and went public in 2021 after 30 years of operation [1] Company Overview - The company operates grocery-anchored neighborhood shopping centers, which are essential for community retail [1] - PECO has established itself as one of the largest REITs in its niche, indicating a strong market presence and operational expertise [1] Investment Perspective - The analyst expresses a potential interest in initiating a long position in PECO within the next 72 hours, suggesting a favorable outlook on the stock [2] - The article reflects the author's independent opinions and does not involve any compensation from the company, ensuring an unbiased perspective [2]

Core Insights - Phillips Edison & Company (NASDAQ: PECO) is a significant player in the REIT sector, focusing on grocery-anchored neighborhood shopping centers and went public in 2021 after 30 years of operation [1] Company Overview - The company operates grocery-anchored neighborhood shopping centers, which are essential for community retail [1] - It has established itself as one of the largest REITs in its niche, indicating a strong market presence and operational expertise [1] Investment Perspective - The analyst expresses a potential interest in initiating a long position in PECO within the next 72 hours, suggesting a favorable outlook on the stock [2] - The article reflects the author's independent opinions and insights based on extensive research experience in various sectors, including REITs [1][2]

Core Insights - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] Group 1 - The service offers a free two-week trial for potential investors to explore top ideas across exclusive income-focused portfolios [1] Group 2 - The analyst has over 14 years of investment experience and an MBA in Finance, focusing on defensive stocks with a medium- to long-term investment horizon [2]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Portfolio Overview - As of September 30, 2025, the company owned equity interests in 328 shopping centers, comprising approximately 36.7 million square feet across 31 states[88]. - The total square footage of the wholly-owned portfolio increased to 34,035 thousand square feet in 2025 from 32,902 thousand square feet in 2024, representing a growth of 3.4%[89]. - Leased occupancy for the total portfolio was 97.6% as of September 30, 2025, slightly down from 97.8% in the previous year[89]. - The average remaining lease term increased to 4.5 years in 2025 from 4.4 years in 2024[89]. - The percentage of ABR from omni-channel grocery-anchored shopping centers was 95.1% in 2025, down from 96.6% in 2024[89]. - Approximately 70% of the company's ABR is generated from neighbors providing necessity-based goods and services[101]. - The top 20 neighbors by ABR accounted for 30.4% of total ABR, with Kroger being the largest at $29.998 million, representing 5.5% of total ABR[102]. Financial Performance - The company's ABR (Annual Base Rent) rose to $537,067 thousand in 2025, up from $497,082 thousand in 2024, indicating an increase of 8.1%[89]. - Rental income for the three months ended September 30, 2025, increased by $16.5 million, or 10.2%, to $178.3 million compared to $161.8 million in 2024[105]. - Total revenues rose by $17.1 million, or 10.4%, to $182.7 million for the three months ended September 30, 2025[105]. - Net income attributable to stockholders increased by $13.1 million, or 112.8%, to $24.7 million for the three months ended September 30, 2025[105]. - Total revenues for the nine months ended September 30, 2025, increased by $50.4 million, or 10.3%, to $538.7 million compared to $488.3 million in 2024[111]. - Net income attributable to stockholders increased by $19.2 million, or 43.2%, reaching $63.8 million for the nine months ended September 30, 2025, compared to $44.5 million in 2024[111]. Expenses and Costs - Operating expenses decreased by $4.2 million, or 3.3%, to $130.8 million for the three months ended September 30, 2025[105]. - Operating expenses totaled $393.9 million, an increase of $30.8 million, or 8.5%, driven by higher property operating expenses and real estate taxes[111]. - General and administrative expenses increased by $3.7 million, or 10.9%, primarily due to growth initiatives and higher performance-based compensation[112]. - Total operating expenses for the three months ended September 30, 2025, were $43,875, an increase of $1,601, or 3.8%, from $42,274 in 2024[121]. Debt and Financing - The company issued $350 million of 5.250% senior notes due 2032 in June 2025, enhancing its capital structure[89]. - Interest expense, net increased by $3.5 million, or 14.2%, to $28.5 million due to increased debt outstanding[108]. - The weighted-average interest rate as of the end of the period was 4.4%[108]. - The company has a weighted-average term of debt of 5.3 years as of the end of the period[110]. - As of September 30, 2025, total debt obligations increased to $2,413.7 million from $2,137.3 million as of December 31, 2024, reflecting a growth of approximately 12.9%[133]. - Net debt as of September 30, 2025, was $2,451.7 million, up from $2,160.9 million as of December 31, 2024, representing a 13.4% increase[138]. - The net debt to Adjusted EBITDAre ratio increased to 5.3x as of September 30, 2025, compared to 5.0x as of December 31, 2024[138]. Capital Expenditures and Investments - Total capital expenditures for real estate during the nine months ended September 30, 2025, were $89.3 million, significantly higher than $48.7 million in the same period of 2024, marking an increase of 83.5%[140]. - The company acquired 11 properties for a total contract price of $280.8 million during the nine months ended September 30, 2025, compared to 8 properties for $203.4 million in 2024[143]. - Real estate acquisitions totaled $282.0 million for the nine months ended September 30, 2025, up from $205.0 million in the same period of 2024[153]. - Capital expenditures increased to $95.7 million during the nine months ended September 30, 2025, a rise of $40.1 million compared to the same period in 2024, primarily due to development activities[153]. Cash Flow and Liquidity - Cash and cash equivalents decreased by $2.8 million to $5.8 million as of September 30, 2025[150]. - Net cash provided by operating activities was $252.1 million for the nine months ended September 30, 2025, a slight increase of 0.5% from $250.7 million in 2024[150]. - The company expects its current sources of liquidity to be sufficient to meet short- and long-term cash demands[129]. - The company entered into an ATM program allowing for the potential sale of up to $250 million in common stock, with approximately $1.7 million raised from the issuance of shares[130]. Other Notable Metrics - The company reported a portfolio retention rate that provides insight into its ability to retain tenants as leases approach expiration[84]. - The portfolio retention rate improved to 92.8% for the nine months ended September 30, 2025, compared to 89.3% in 2024[116]. - Same-Center NOI for the nine months ended September 30, 2025, reflects operating trends for 279 properties, highlighting occupancy levels and rental rates[118]. - Same-Center NOI for the three months ended September 30, 2025, was $115,478, reflecting a $3,696 increase, or 3.3%, from $111,782 in 2024[122]. - Nareit FFO attributable to stockholders and OP unit holders for the three months ended September 30, 2025, was $89,253, an increase from $81,554 in 2024[125]. - Core FFO attributable to stockholders and OP unit holders for the three months ended September 30, 2025, was $90,557, compared to $84,410 in 2024[125].

Financial Data and Key Metrics Changes - Third quarter NAIRI FFO increased to $89.3 million, or $0.64 per diluted share, reflecting year-over-year per share growth of 6.7% [12] - Third quarter Core FFO increased to $90.6 million, or $0.65 per diluted share, reflecting year-over-year per share growth of 4.8% [12] - The company has approximately $977 million of liquidity to support acquisition plans, with a net debt to trailing 12-month annualized adjusted EBITDA of 5.3 times as of September 30, 2025 [12][13] Business Line Data and Key Metrics Changes - Neighbor retention remained high at 94% in the third quarter, with record-high comparable renewal rent spreads of 23.2% [9] - Comparable new leasing rent spreads for the quarter were strong at 24.5%, with average annual rent bumps of 2.6% [9] - Portfolio occupancy remained high at 97.6% leased, with anchor occupancy at 99.2% and same-store inline occupancy at 95% [10] Market Data and Key Metrics Changes - The market for grocery-anchored shopping centers remains competitive, with the company being selective in acquisitions due to economic stability concerns [5][45] - The company has acquired 18 assets this year for $376 million, with plans to sell $50 million to $100 million of assets in 2025 [15][61] Company Strategy and Development Direction - The company is focused on recycling lower IRR properties into higher IRR properties to drive strong earnings growth [16] - The development and redevelopment pipeline includes 22 projects with an estimated total investment of $75.9 million, targeting average estimated yields between 9% and 12% [11] - The company plans to share more details on its long-term growth strategy during a business update on December 17 [6][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the grocery-anchored portfolio, noting that 70% of annual base rent comes from necessity-based goods and services, providing predictable cash flows [3][4] - The company expects same-center NOI growth between 3% and 4% annually on a long-term basis, with a forecast for the fourth quarter of 2025 reflecting same-center NOI growth between 1% and 2% [13][14] - Management remains optimistic about the resilience of grocers and their ability to pass on cost increases to consumers [53] Other Important Information - The company has a healthy pipeline for development and redevelopment, including a grocery-anchored retail development in Ocala, Florida [8] - The company is actively expanding its joint ventures, with a recent acquisition of a grocery-anchored shopping center in Columbia, South Carolina [7] Q&A Session Summary Question: Can you share more on acquiring development land at this point in the cycle? - Management highlighted a partnership with a national grocer interested in the growth aspects of Southern Ocala, with 10,000 new homes expected in the next five years [19][20] Question: Can you provide more detail on the current acquisition pipeline? - Management indicated they are comfortable being at the bottom end of their acquisition guidance range, with $376 million in acquisitions year-to-date and plans for more before year-end [21][22] Question: What is the upper level on leverage and how do you think about it as a funding source? - Management aims to maintain net debt to EBITDA at 5.5 times or below, with a willingness to adjust if clear opportunities arise [26][27] Question: What is your view on grocery-anchored cap rates? - Management noted that the supply-demand dynamic for grocery-anchored properties is stabilized, with no major compression in cap rates expected [78] Question: How do you think about funding your acquisition pipeline for next year? - Management emphasized maintaining a strong balance sheet and using a mix of free cash flow and dispositions to fund acquisitions [85]