Company Overview - PECO focuses on high-quality, grocery-anchored neighborhood shopping centers[6, 10] - The company has 303 wholly-owned shopping centers[5, 22] - Total enterprise value is $7.3 billion[7, 49] - 95% of ABR (Annual Base Rent) comes from grocery-anchored shopping centers[5, 11, 22] Financial Performance - Year-to-date same-center NOI (Net Operating Income) increased 4.1% to $229.6 million[14] - Net income attributable to stockholders was $39.1 million year-to-date[14] - Full year 2025 gross acquisition guidance is $350 million to $450 million, with $302 million acquired to date[14] Strategy and Operations - 70% of ABR comes from necessity-based goods and services[7, 11, 14] - Portfolio occupancy is 97% leased[5, 11, 14] - 85% of ABR is from 1 or 2 grocery anchor by sales[7, 11] Dividend and Returns - Current dividend yield is 3.7%[7, 26] - Current annualized dividend distribution is $1.30 per share[9, 26]

Core Viewpoint - Phillips Edison & Company, Inc. (PECO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which are crucial for stock price movements [1][4][6]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2][5]. - The recent upgrade reflects an improvement in Phillips Edison & Company's earnings outlook, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Institutional Investors - Changes in earnings estimates significantly influence stock price movements, as institutional investors use these estimates to determine the fair value of shares, leading to buying or selling actions that affect stock prices [5][6]. Historical Performance of Zacks Ratings - The Zacks Rank stock-rating system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988, highlighting the effectiveness of tracking earnings estimate revisions for investment decisions [8][10]. Current Earnings Estimates for Phillips Edison & Company - For the fiscal year ending December 2025, Phillips Edison & Company is expected to earn $2.58 per share, with a 0.9% increase in the Zacks Consensus Estimate over the past three months [9][11]. Positioning within Zacks Ratings - The upgrade to Zacks Rank 2 places Phillips Edison & Company in the top 20% of Zacks-covered stocks based on estimate revisions, suggesting potential for market-beating returns in the near term [10][11].

Core Insights - Phillips Edison & Company, Inc. (PECO) is hosting a PECO GROW Update for financial advisors and retail investors on September 24, 2025, at 12:00 p.m. ET to discuss business developments and answer questions [1][2] Company Overview - PECO is one of the largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers in the United States, founded in 1991 [4] - As of June 30, 2025, PECO managed 327 shopping centers, including 303 wholly-owned centers totaling 34.0 million square feet across 31 states [4] - The company focuses on creating omni-channel shopping experiences and improving communities through its shopping centers, which feature national and regional retailers [4] Webcast Details - The PECO GROW webcast will be hosted by Chairman and CEO Jeff Edison, President Bob Myers, and CFO John Caulfield [2] - The webcast will be accessible via a toll-free dial-in number and an international dial-in number, with a conference ID provided for participants [3] - An audio replay of the webcast will be available approximately one hour after the presentation [3]

Core Insights - The company aims to achieve 3% to 4% growth in Net Operating Income (NOI) annually, which is expected to translate into mid- to high single-digit growth in Funds From Operations (FFO) per share [2] - For the current year, the company anticipates delivering 3% to 4% NOI growth, with FFO growth projected between 6% and 7% [3] - The company has recently increased its dividend by nearly 6% [3]

Core Insights - The company aims to achieve 3% to 4% growth in Net Operating Income (NOI) annually, which is expected to translate into mid- to high single-digit growth in Funds From Operations (FFO) per share [2] - For the current year, the company anticipates delivering 3% to 4% NOI growth and FFO growth between 6% and 7%, whether measured by NAREIT or core metrics [3] - The company has recently increased its dividend by nearly 6% [3]

Summary of Phillips Edison & Company Conference Call Company Overview - **Company**: Phillips Edison & Company (NasdaqGS:PECO) - **Industry**: Grocery-anchored neighborhood shopping centers - **Portfolio**: Over 300 shopping centers across 31 states, approximately 32 to 33 million square feet [5][7] Key Financial Metrics - **NOI Growth**: Expected annual growth of 3% to 4% [4] - **FFO Growth**: Projected growth between 6% and 7% for the current year [4] - **Dividend Increase**: Recently raised dividend by almost 6% [4] - **Occupancy Rates**: - Overall occupancy: 97.4% - Anchor occupancy: 98.9% - Inline occupancy: 94.8% [5][18] - **Retention Rate**: 94% [5] Leasing and Market Dynamics - **Leasing Spreads**: - New leasing spreads: 30% to 35% - Renewal spreads: approximately 20% with a 3% compound annual growth rate [5][11] - **Market Adaptation**: Retailers have adapted to tariff uncertainties, maintaining expansion plans [10][11] - **Necessity-based Rent Roll**: 70% of rent roll is necessity-based, indicating stability [5][13] Competitive Landscape - **Amazon's Grocery Delivery**: Challenges in profitability for Amazon's grocery delivery; expansion of Whole Foods stores planned [14][15] - **Walmart's Progress**: Walmart is making strides in the grocery business, but the transition from online to bricks-and-mortar remains complex [15] Growth Strategies - **Occupancy Growth Potential**: Inline occupancy expected to increase to 96.5% over the next 18 to 24 months [18] - **Active Development Programs**: - Outparcel development and redevelopment programs expected to contribute 100 to 120 basis points of growth annually [20] - Annual spending of about $50 million on these programs [20] - **Acquisition Strategy**: - Year-to-date acquisitions of $303 million; focus on grocery-anchored centers [23][24] - Targeting unlevered IRR above 9% for acquisitions [23] - Competitive pricing environment noted, with cap rates ranging from 5.75% to 6.6% [25] Financial Management - **Leverage**: Current leverage at 5.4 times, with a long-term target of about 5.5 times [26][40] - **Balance Sheet Strength**: BBB flat rating, with no significant maturities until 2027 [40] Redevelopment Insights - **Redevelopment Yields**: Current yields on redevelopment projects range from 9% to 12% cash-on-cash [42][43] - **Teardown Rebuilds**: Focus on projects for Publix, with significant returns expected [42] Conclusion Phillips Edison & Company is positioned for steady growth through its focus on grocery-anchored shopping centers, strong occupancy rates, and strategic acquisitions. The company is navigating market challenges while maintaining a robust financial profile and development pipeline.

Core Viewpoint - Phillips Edison & Company, Inc. announced a 5.7% increase in monthly dividend distributions, reflecting strong operational performance and cash flow growth [1][3]. Dividend Distribution - The Board approved a monthly dividend rate of $0.1083 per share, which annualizes to $1.30 per share, up from the previous $1.23 per share [2]. - This marks the fifth consecutive annual increase in dividend distributions and the second consecutive increase exceeding 5% [3]. Company Performance - Jeff Edison, Chairman and CEO, highlighted the company's ability to deliver solid growth through various economic cycles, emphasizing the favorable balance of defense, offense, and growing cash flow for shareholders [3]. - As of June 30, 2025, the company managed 327 shopping centers, including 303 wholly-owned centers totaling 34.0 million square feet across 31 states [4]. Company Overview - Phillips Edison & Company is one of the largest owners and operators of grocery-anchored neighborhood shopping centers in the U.S., focusing on necessity-based goods and services [4]. - The company features a mix of national and regional retailers, with top grocery anchors including Kroger, Publix, Albertsons, and Ahold Delhaize [4].

Core Viewpoint - Phillips Edison & Company, Inc. (PECO) is set to present at the BofA Securities 2025 Global Real Estate Conference on September 10, 2025, highlighting its position as a leading owner and operator of grocery-anchored neighborhood shopping centers [1][2]. Company Overview - PECO is one of the largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers in the United States, founded in 1991 [3]. - The company has a vertically-integrated operating platform and a national footprint, managing 327 shopping centers, including 303 wholly-owned centers totaling 34.0 million square feet across 31 states [3]. - PECO's grocery anchors include major retailers such as Kroger, Publix, Albertsons, and Ahold Delhaize, providing necessity-based goods and services [3]. Event Details - The presentation at the BofA Securities 2025 Global Real Estate Conference will feature Chairman and CEO Jeff Edison, President Bob Myers, and CFO John Caulfield [2]. - The event is scheduled for September 10, 2025, at 3:00 p.m. Eastern Time, with a live webcast available [2].

Core Insights - The Zacks REIT and Equity Trust - Retail industry is well-positioned to leverage favorable market conditions, with strong consumer spending and limited new development supporting healthy fundamentals [1] - The industry is experiencing a rebound driven by renewed consumer interest in in-store shopping, despite facing challenges from e-commerce expansion and macroeconomic pressures [2][5] Industry Overview - The industry comprises REITs that own, develop, manage, and lease various retail properties, including regional malls and grocery-anchored shopping venues [2] - Key demand drivers include geographic location and demographics, with a positive shift in the retail landscape noted [2] Future Trends - Experiential retail and omnichannel integration are revitalizing the sector, with physical stores transforming into immersive destinations that enhance customer engagement [3] - Solid leasing demand from consumer service providers and cross-border entrants is diversifying the tenant base and driving long-term occupancy stability [3] Supply and Demand Dynamics - Retail REITs benefit from a constrained supply pipeline, with limited new construction due to high building costs and labor shortages, leading to historically tight national vacancy rates [4] - Many REITs are redeveloping underperforming assets and adding non-traditional tenants, enhancing portfolio durability [4] Macroeconomic Challenges - High interest rates, inflation, and tariff changes are pressuring retailers, leading to delayed leasing decisions and increased store closures [5] - E-commerce penetration is dampening demand for traditional retail space, particularly in commodity-driven segments [5] Industry Performance - The Zacks REIT and Equity Trust - Retail industry has underperformed the broader Zacks Finance sector and the S&P 500 over the past year, declining 5.5% compared to the S&P 500's rise of 19.4% [10] - The industry is currently trading at a forward 12-month price-to-FFO of 14.62X, below the S&P 500's forward P/E of 22.54X [13] Stock Recommendations - **Brixmor Property Group Inc. (BRX)** focuses on open-air shopping centers with a balanced tenant base, currently has a Zacks Rank 2, and its FFO per share estimate has been revised upward to $2.23, indicating a 4.7% year-over-year increase [17][19] - **Phillips Edison & Company, Inc. (PECO)** specializes in grocery-anchored shopping centers, managing 327 centers with a Zacks Rank 2, and its FFO per share estimate for 2025 has been revised to $2.58, reflecting a bullish outlook [21][24] - **Urban Edge Properties (UE)** operates in densely populated regions with a focus on essential retailers, holding a Zacks Rank 2, and its FFO per share estimate has been raised to $1.40, indicating a 3.7% year-over-year increase [26][28]

Core Insights - The company reported a 4.2% growth in Same Center Net Operating Income (NOI) for Q2 2025, leading to an increase in full-year guidance [2][11] - Core Funds From Operations (FFO) per share rose 8.5% to $0.64, while NAREIT FFO per diluted share increased 8.8% year-over-year to $0.62 [3][11] - Total portfolio occupancy reached 97.4%, with anchor occupancy at 98.9%, reflecting strong demand for grocery-anchored locations [3][29] Leasing and Retention - Comparable renewal rent spreads were 19.1%, and new leasing rent spreads reached 34.6%, indicating significant pricing power [4][28] - Neighbor retention rate was 94%, which minimizes downtime and capital expenditure for tenant improvements [4][32] Acquisition and Development - The company completed $133 million in acquisitions during Q2 2025, totaling $287 million year-to-date, with a full-year acquisition guidance of $350 million to $450 million [5][11] - There are 21 active development projects with estimated yields of 9%-12%, and nine projects have stabilized, contributing approximately $3.7 million in annual incremental NOI [5][10] Financial Position - As of Q2 2025, liquidity stood at $972 million, with a net debt to trailing twelve-month annualized adjusted EBITDAR ratio of 5.4 times [6][34] - 95% of total debt was fixed rate, with a weighted average interest rate of 4.4% and a maturity of 5.7 years [6][36] Guidance and Market Outlook - The company raised its guidance for same center NOI growth to 3.1%-3.6% for 2025, with NAREIT FFO per share growth expected at 6.3% at the midpoint [7][37] - Approximately 85% of neighbors are expected to experience limited impact from tariffs, with 70% of ABR attributed to necessity-based goods and services [8][20] Portfolio Characteristics - The three-mile trade area averages a population of 68,000 and a median household income of $92,000, which is 15% above the US median [8][30] - The top 10 "watch list" tenants represent only about 2% of ABR, indicating low concentration risk [9][31]