PECO

Interested in Phillips Edison & Company, Inc.? Here are five stocks we like better. Phillips Edison reported a strong Q2, with higher FFO, Core FFO and same-center NOI, supported by record occupancy, strong leasing spreads and steady traffic at its grocery-anchored centers. The company raised its 2026 guidance for NAREIT FFO per share, Core FFO per share and same-center NOI growth, reflecting healthy operations and improved tenant credit trends. Management also boosted acquisition targets to $500 million-$600 million for 2026, while continuing to recycle capital through dispositions and develop/redevelop properties with attractive projected yields. PECO Pullback Presents a Retail REIT Worth Shopping For Phillips Edison & Company, Inc. (NASDAQ:PECO) reported higher second-quarter funds from operations and same-center net operating income, citing sustained demand for space at its grocery-anchored shopping centers, record in-line occupancy and strong leasing spreads. The company also raised its 2026 outlook for earnings, same-center NOI growth and acquisitions. Chairman and CEO Jeff Edison said the company generated 8.1% year-over-year growth in NAREIT FFO per share, 7.8% growth in Core FFO per share and 3.8% same-center NOI growth during the second quarter. He attributed the performance to occupancy gains, leasing activity, rent spreads and operating execution across the portfolio. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? “Our centers generated 2% year-over-year traffic growth in June and 2% traffic growth year-to-date,” Edison said, adding that consumers continued to make frequent trips to necessity-based retail destinations despite seeking value. President Bob Myers said second-quarter leasing activity reached a record number of leases, while retailer demand showed “no current signs of slowing.” Necessity-based categories such as quick-service and fast-casual restaurants, health and wellness, beauty, fitness, services and medical retail continued to drive activity. The company said 74% of its rent comes from necessity-based goods and services. Portfolio leased occupancy was 97.3%. Leased anchor occupancy was 98.4%. Leased in-line occupancy reached a record 95.5%. Economic in-line occupancy reached a record 94.8%. Comparable renewal rent spreads were 21.2%. Comparable new rent spreads were 33.7%. Annual rent bumps on in-line renewal leases averaged a record 3.1%. → GE Vernova Just Sent a Mixed AI Signal to Investors Myers said the company retained roughly 90% of its tenants and spent less than $1 per square foot to retain them. He said Phillips Edison expects it can increase in-line occupancy by another 100 basis points over time and lift anchor occupancy by 50 to 60 basis points by year-end. The company reported lower-than-expected bad debt of about 70 basis points of revenue in the quarter and reduced its full-year bad-debt outlook. Management now expects bad debt for 2026 to be in line with or slightly better than 2025. → D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? CFO John Caulfield said second-quarter NAREIT FFO rose to $93.7 million, or $0.67 per diluted share, while Core FFO increased to $95.5 million, or $0.69 per diluted share. Same-center NOI rose 3.8%, primarily because of higher average rents and economic occupancy. Phillips Edison raised its full-year 2026 guidance for NAREIT FFO per share, Core FFO per share and same-center NOI growth. At the midpoint, the updated outlook implies 6.3% growth in NAREIT FFO per share from 2025, 6.2% growth in Core FFO per share and 3.7% same-center NOI growth. Caulfield said the increased FFO outlook reflects strong first-half operations and healthy tenant credit trends. However, he noted that asset sales occurring ahead of reinvestment in acquisitions create a short-term cash-flow gap, while positioning the company for growth in 2027. The company ended the quarter with $857 million of liquidity. Net debt to trailing 12-month annualized adjusted EBITDAre was 5.1 times at quarter-end and 5.0 times on a last-quarter annualized basis. Its debt had a 4.4% weighted average interest rate and a 5.6-year weighted average maturity, including extension options. Fixed-rate debt represented 95.9% of total debt, including Phillips Edison’s share of joint-venture debt. Moody’s revised the company’s outlook to positive, which Caulfield said reflected operating performance, balance-sheet management and liquidity. Management raised 2026 gross acquisition guidance to $500 million to $600 million, an increase of $100 million. Caulfield confirmed in response to an analyst question that the net acquisition outlook also increased by $100 million. The company completed $278 million of acquisitions at its share year to date through the week of the call, including eight grocery-anchored shopping centers, three everyday retail centers, an outparcel and land for future development. It had more than $225 million of awarded or contracted assets expected to close in the second half. Management said acquisitions have been funded through dispositions, equity issuance and the company’s revolving credit facility. Phillips Edison raised $92 million of equity during June and July, though Caulfield said the full-year guidance does not assume additional equity issuance. The company continues to target unlevered internal rates of return of 9% for grocery-anchored centers and 10% for everyday retail centers. Myers said the acquisition pipeline consists of about 60% grocery-anchored properties and 40% everyday retail assets. He said the company has identified more than 50,000 potential everyday retail opportunities near leading grocers and has acquired 12 such assets to date, where it has increased occupancy by 450 basis points. Phillips Edison also maintained 2026 disposition guidance of $100 million to $200 million. Edison said the company had sold nearly $100 million of properties at a 6.3% capitalization rate and with an IRR below 7.5%, intending to redeploy that capital into higher-return opportunities. The company has 21 active development and redevelopment projects with estimated investment of about $82 million and estimated average yields of 9% to 12%. Eleven projects stabilized year to date, delivering more than 212,000 square feet and approximately $3.4 million of annual incremental NOI, according to Myers. Management also discussed grocer industry developments, including Kroger’s announced acquisition of Giant Eagle. Edison called the transaction positive for Phillips Edison, which has 10 Giant Eagle-anchored centers. He said Kroger’s investment in brick-and-mortar stores signaled confidence in physical grocery locations as a channel for sales and fulfillment. While Edison acknowledged that grocers are responding to consumer caution by investing in price and observing shifts toward private-label products, he said Phillips Edison has not seen a deterioration in portfolio traffic. The company plans to continue monitoring consumer behavior and retailer health while pursuing growth through leasing, development, acquisitions, joint ventures and portfolio recycling. Phillips Edison & Company, Inc is a publicly traded real estate investment trust (REIT) that specializes in the acquisition, ownership and operation of grocery-anchored, necessity-based shopping centers. The company's investment strategy is centered on properties that benefit from everyday consumer demand, seeking to deliver stable cash flows through long-term, triple-net leases with national and regional tenants in the grocery, drugstore and essential retail sectors. In addition to its core retail portfolio, Phillips Edison & Company provides integrated services covering property management, asset management, leasing, development and acquisition sourcing. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Phillips Edison & Company, Inc. Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Nareit FFO per Share Growth: 8.1% increase. Core FFO per Share Growth: 7.8% increase. Same-Center NOI Growth: 3% increase. Leased Portfolio Occupancy: 97.3%. Leased Anchor Occupancy: 98.4%. Leased In-Line Occupancy: Record high 95.5%. Comparable Renewal Rent Spreads: 21.2% increase. Comparable New Rent Spreads: 33.7% increase. Annual Rent Bumps on Renewals: Record high 3.1%. Bad Debt: Approximately 70 basis points of revenue, lower than expected. Development and Redevelopment Projects: 21 projects under active construction with a total investment of approximately $82 million. Year-to-Date Acquisition Activity: $278 million at PECO share. NAREIT FFO: $93.7 million or $0.67 per diluted share. Core FFO: $95.5 million or $0.69 per diluted share. Liquidity: $857 million at the end of the second quarter. Net Debt to Adjusted EBITDAre: 5.1 times at quarter end. Weighted Average Interest Rate on Debt: 4.4%. Full Year 2026 Guidance for NAREIT FFO per Share: 6.3% increase over 2025 at the midpoint. Full Year 2026 Guidance for Core FFO per Share: 6.2% increase over 2025 at the midpoint. Full Year 2026 Guidance for Same-Center NOI Growth: 3.7% growth at the midpoint. Full Year 2026 Guidance for Gross Acquisitions: $500 million to $600 million. Full Year 2026 Guidance for Dispositions: $100 million to $200 million in asset sales. Warning! GuruFocus has detected 7 Warning Signs with PECO. Is PECO fairly valued? Test your thesis with our free DCF calculator. Release Date: July 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Phillips Edison & Co Inc (NASDAQ:PECO) reported strong financial performance with Nareit FFO per share growth of 8.1% and core FFO per share growth of 7.8%. The company achieved high occupancy rates, with leased portfolio occupancy at 97.3% and record high in-line occupancy at 95.5%. PECO increased its full-year guidance for gross acquisitions to a range of $500 million to $600 million, reflecting confidence in future growth opportunities. The company maintained a strong balance sheet with an investment-grade profile and significant liquidity, recognized by Moody's positive outlook revision. PECO's strategy of focusing on grocery-anchored shopping centers and necessity-based retail continues to drive resilient traffic and demand, with a 2% year-over-year traffic growth in June. Despite strong performance, the increase in FFO guidance was modest at just $0.01, which may not fully reflect the positive updates in the quarter. The competitive acquisition market poses challenges, requiring PECO to be more disciplined and see more product to maintain desired returns. There is potential concern over consumer sentiment and spending, as indicated by some large grocers reinvesting in price due to perceived consumer weakness. Cap rates have not decreased despite higher interest rates, indicating a competitive market that may pressure acquisition yields. The company's growth plans are not dependent on a single source of capital, which could pose risks if market conditions change unfavorably. Q: Can you confirm if the net acquisition outlook is increasing by $100 million and explain the modest increase in FFO guidance despite positive updates? A: Yes, the net acquisition outlook is increasing by $100 million. We raised over $90 million at the end of the quarter, and our leverage is at 5 times on a debt to EBITDA basis. The modest increase in FFO guidance reflects our strong first-half performance and the opportunity to reinvest capital at higher spreads, positioning us well for 2027. (John Caulfield, CFO) Q: Is the increased acquisitions guidance a run rate beyond 2026 or a reflection of opportunistic asset sales? How do you view using equity for acquisitions? A: The increased guidance reflects a strong acquisition market and our ability to exceed acquisition targets. We have debt capacity and raised equity, but our guidance does not assume additional equity issuance. We aim to buy about $300 million on a net basis annually while remaining leverage neutral. (John Caulfield, CFO) Q: Can you discuss the most interesting acquisitions from the quarter and their potential upside? A: We acquired an asset in Renton, Washington, anchored by Safeway, with significant leasing opportunities and a potential un-levered return above 10%. We focus on assets with strong mark-to-market opportunities and maintain discipline on un-levered returns between 9% and 11%. (Robert F. Myers, President) Q: How do you view the Kroger-Giant Eagle merger and its impact on your portfolio? A: We are positive about the merger as Kroger invests in stores and pricing, benefiting our 10 Giant Eagle locations. Kroger's investment in brick-and-mortar retail underscores the strength of grocery-anchored centers. We expect improved credit and sales, which will positively impact rents. (Jeffrey Edison, CEO) Q: With in-line occupancy at a record high, what categories are driving this cycle, and what are you avoiding? A: Fast casual, health and wellness, beauty, fitness, services, and med tail are driving demand. We focus on necessity-based goods and services, maintaining health ratios around 10% to 10.5%. We aim to increase in-line occupancy by another 100 basis points over the next 24 months. (Robert F. Myers, President) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by high demand for grocery-anchored spaces, resulting in record in-line occupancy of 95.5% and strong rent spreads. Management attributes traffic resiliency to the necessity-based nature of the portfolio, noting 2% year-over-year traffic growth despite evolving macroeconomic headlines. The 'alpha with less beta' strategy focuses on converting healthy operating fundamentals into long-term earnings growth through a national vertically integrated platform. Strategic positioning is reinforced by leading grocers investing in brick-and-mortar footprints, exemplified by Kroger's acquisition of Giant Eagle. Operational efficiency is maintained through a 'Locally Smart' approach, utilizing local market knowledge to identify under-managed everyday retail centers for re-merchandising. Capital allocation remains disciplined, targeting un-levered IRRs of 9% for grocery-anchored centers and 10% for everyday retail centers. Management increased gross acquisition guidance to $500 million - $600 million for 2026, supported by a pipeline of over $225 million in assets under contract. The 2026 guidance assumes no additional equity issuance beyond the $92 million raised in June and July, prioritizing balance sheet preservation. Strategic building blocks for 2027 are becoming visible through current investments in development and redevelopment projects totaling $82 million. Management expects to achieve an additional 100 basis points of in-line occupancy lift over the next 24 months through targeted leasing incentives. Long-term growth targets remain focused on delivering mid-to-high single-digit core FFO per share growth through multiple economic cycles. Bad debt guidance was lowered following first-half strength, with expectations now in line or slightly better than 2025 levels at approximately 70 basis points of revenue. Portfolio recycling remains a key risk-mitigation tool, with $100 million to $200 million in targeted annual dispositions to exit maturing or lower-growth assets. Management is monitoring consumer 'sticker shock' and trading down to private labels, though current foot traffic remains resilient. Moody's revised PECO's outlook to positive, validating the company's disciplined balance sheet management and 5.0x net debt to EBITDA ratio. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that while operating fundamentals are strong, accelerated dispositions create a short-term cash flow gap. This timing friction is viewed as a strategic trade-off to reinvest capital into higher-yielding acquisitions that position the company for 2027 growth. Spreads are driven by a combination of embedded mark-to-market opportunities and intense incremental demand from necessity-based retailers. Management noted that high retention (90%) reduces downtime and tenant improvement costs, further enhancing the economics of these spreads. Everyday retail currently represents less than 10% of the portfolio but offers higher un-levered returns (10.5%) and significant occupancy upside. Management has identified 50,000 such opportunities near top-tier grocers where they can apply their national leasing and operations platform. Management clarified that Albertsons' specific challenges relate to their pending merger and price reinvestment strategies. PECO's portfolio is intentionally curated to avoid over-exposure to any single grocer, and current foot traffic data does not yet show the weakness reported by some tenants.

Earlier this week, Phillips Edison & Company, Inc. raised its 2026 diluted net income per share guidance to US$0.95–US$0.97 and reported second‑quarter revenue of US$189.62 million with net income of US$41.12 million, both higher than a year ago. The combination of upgraded full‑year earnings guidance and quarterly funds from operations above analyst expectations highlights stronger‑than‑projected profitability for the grocery‑anchored REIT. Next, we’ll examine how this upgraded full‑year earnings guidance influences Phillips Edison’s existing investment narrative around grocery‑anchored retail centers. We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. To own Phillips Edison, you need to believe that necessity based, grocery anchored strip centers can keep delivering steady cash flows despite e commerce pressure and rate uncertainty. The upgraded 2026 net income guidance, backed by stronger than expected funds from operations, supports the near term earnings catalyst but does not remove key risks around sector concentration or potential shifts in grocery tenant health. The most relevant update here is the sharp lift in 2026 diluted net income guidance to US$0.95 to US$0.97 per share, from US$0.79 to US$0.81 previously. Together with Q2 revenue of US$189.62 million and net income of US$41.12 million, this earnings backdrop feeds directly into the catalyst of resilient demand for grocery anchored centers and the company’s ability to keep monetizing that positioning. Yet investors should also be aware that concentrated exposure to grocery anchored centers could become a problem if... Read the full narrative on Phillips Edison (it's free!) Phillips Edison's narrative projects $856.7 million revenue and $121.4 million earnings by 2029. This requires 5.0% yearly revenue growth and about a $6.0 million earnings increase from $115.4 million today. Uncover how Phillips Edison's forecasts yield a $43.08 fair value, in line with its current price. One member of the Simply Wall St Community currently pegs fair value at US$43.08, underscoring how a single view can differ from market pricing. Set against PECO’s upgraded earnings guidance, this reminds you that performance drivers and risk concentration in grocery anchored centers can be interpreted in very different ways, so it is worth exploring multiple viewpoints. Explore another fair value estimate on Phillips Edison - why the stock might be worth just $43.08! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Phillips Edison research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. Our free Phillips Edison research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Phillips Edison's overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. Find 49 companies with promising cash flow potential yet trading below their fair value. The future of work is here. Discover the 34 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PECO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

CINCINNATI, July 23, 2026 (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, 2026 and provided updated 2026 earnings guidance. For the three and six months ended June 30, 2026, net income attributable to stockholders was $41.1 million, or $0.33 per diluted share, and $71.5 million, or $0.56 per diluted share, respectively. Highlights for the Second Quarter and Subsequent Reported Nareit FFO of $0.67 per diluted share, representing 8.1% year-over-year growth Reported Core FFO of $0.69 per diluted share, representing 7.8% year-over-year growth Increased same-center NOI year-over-year by 3.8% The increased midpoint of full year 2026 Nareit FFO per diluted share guidance represents 6.3% year-over-year growth The increased midpoint of full year 2026 Core FFO per diluted share guidance represents 6.2% year-over-year growth The increased midpoint of full year 2026 same-center NOI guidance represents 3.7% year-over-year growth Increased full year 2026 gross acquisitions guidance reflects a range of $500 million to $600 million Reported strong leased portfolio occupancy of 97.3% and same-center leased portfolio occupancy of 97.5% Reported record-high leased inline occupancy and record-high same-center leased inline occupancy of 95.5% Executed comparable portfolio new leases at a rent spread of 33.7% and comparable inline new leases at a rent spread of 32.2% during the quarter Executed comparable portfolio and inline renewal leases at a rent spread of 21.2% during the quarter Acquired six shopping centers and one outparcel for a total of $152.4 million at PECO’s total prorated share and sold $64.6 million in assets Generated net proceeds of $85.3 million through the issuance of 2.0 million common shares at a gross weighted average price of $42.06 per common share through PECO’s ATM program Subsequent to quarter end, sold $39.7 million in assets Subsequent to quarter end, generated net proceeds of $6.4 million through the issuance of 0.2 million common shares at a gross weighted average price of $42.20 per common share through PECO’s ATM program Management Commentary Jeff Edison, Chairman and Chief Executive Officer of PECO stated: “Our second quarter results demonstrate the strength of PECO’s high-quality portfolio and our ability to convert strong operating fundamentals into long-term earnings growth. We continue to generate Alpha through occupancy gains, acquisitions, rent spreads, retention, development, redevelopment and portfolio recycling. We are able to do this while maintaining balance sheet discipline and a thoughtful approach to investing that have always defined PECO.” Edison added: “Our confidence in our business is reflected in our increased guidance. The increased midpoint of 2026 Core FFO per diluted share guidance represents 6.2% year-over-year growth, and increased 2026 gross acquisitions guidance reflects a range of $500 million to $600 million. We are well positioned for strong growth in 2027 and beyond. We believe PECO offers investors a compelling opportunity for more Alpha with less Beta.” Financial Results Net Income Second quarter 2026 net income attributable to stockholders totaled $41.1 million, or $0.33 per diluted share, compared to net income of $12.8 million, or $0.10 per diluted share, during the second quarter of 2025. For the six months ended June 30, 2026, net income attributable to stockholders totaled $71.5 million, or $0.56 per diluted share, compared to net income of $39.1 million, or $0.31 per diluted share, for the same period in 2025. Nareit FFOSecond quarter 2026 funds from operations attributable to stockholders and operating partnership (“OP”) unit holders as defined by Nareit (“Nareit FFO”) increased 9.0% to $93.7 million, or $0.67 per diluted share, compared to $86.0 million, or $0.62 per diluted share, during the second quarter of 2025. For the six months ended June 30, 2026, Nareit FFO increased 6.6% to $186.6 million, or $1.34 per diluted share, compared to $175.1 million, or $1.26 per diluted share, during the same period in 2025. Core FFO Second quarter 2026 core funds from operations attributable to stockholders and OP unit holders (“Core FFO”) increased 8.3% to $95.5 million, or $0.69 per diluted share, compared to $88.2 million, or $0.64 per diluted share, during the second quarter of 2025. For the six months ended June 30, 2026, Core FFO increased 7.2% to $191.9 million, or $1.38 per diluted share, compared to $179.0 million, or $1.29 per diluted share, for the same period in 2025. Same-Center NOI Second quarter 2026 same-center net operating income (“NOI”) increased 3.8% to $120.6 million, compared to $116.2 million during the second quarter of 2025. For the six months ended June 30, 2026, same-center NOI increased 3.7% to $242.1 million, compared to $233.6 million during the same period in 2025. Portfolio Overview Portfolio Statistics As of June 30, 2026, PECO’s wholly-owned portfolio consisted of 302 properties, totaling approximately 33.9 million square feet, located in 31 states. This compared to 303 properties, totaling approximately 34.0 million square feet, located in 31 states as of June 30, 2025. Leased portfolio occupancy was 97.3% as of June 30, 2026, compared to 97.4% as of June 30, 2025. Same-center leased portfolio occupancy was 97.5% as of June 30, 2026, compared to 97.6% as of June 30, 2025. Leased anchor occupancy was 98.4% as of June 30, 2026, compared to 98.9% as of June 30, 2025. Same-center leased anchor occupancy was 98.5% as of June 30, 2026, compared to 99.0% as of June 30, 2025. Leased inline occupancy was a record-high 95.5% as of June 30, 2026, compared to 94.8% as of June 30, 2025. Same-center leased inline occupancy was a record-high of 95.5% as of June 30, 2026, compared to 95.0% as of June 30, 2025. Leasing Activity During the second quarter of 2026, a record-high 304 leases were executed totaling approximately 1.2 million square feet. This compared to 276 leases executed totaling approximately 1.4 million square feet during the second quarter of 2025. For the six months ended June 30, 2026, 550 leases were executed totaling approximately 2.8 million square feet. This compared to 510 leases executed totaling approximately 2.9 million square feet during the same period in 2025. During the second quarter of 2026, comparable rent spreads, which represent the percentage increase of a lease to the expiring lease of a unit that was occupied within the past twelve months, were 21.2% for renewal leases, 33.7% for new leases and 24.8% combined. Comparable rent spreads during the six months ended June 30, 2026 were 34.5% for new leases, 21.2% for renewal leases and 24.6% combined. Transaction Activity - Wholly-Owned During the second quarter of 2026, the Company acquired $141.4 million in assets, which included five shopping centers. The Company expects to drive value in these assets through occupancy increases and rent growth, as well as potential future development of ground-up outparcel retail spaces. The second quarter 2026 acquisitions included: Renton Highlands Shopping Center, a 54,008 square foot shopping center anchored by Safeway located in a Seattle, Washington suburb. Prairieview Center, a 118,171 square foot shopping center anchored by Lunds & Byerlys located in a Minneapolis, Minnesota suburb. Firethorne Plaza, a 29,986 square foot Everyday Retail™ center located in a Houston, Texas suburb. Shops at Prosper Trail, a 86,698 square foot shopping center anchored by Kroger located in a Dallas, Texas suburb. Chaska Commons, a 155,543 square foot shopping center anchored by Cub Foods located in a Minneapolis, Minnesota suburb. During the same period, the Company sold $64.6 million in assets, which included two shopping centers and one land parcel. For the six months ended June 30, 2026, the Company acquired $266.9 million in assets, which included ten shopping centers and one land parcel. During the same period, $86.9 million in assets were sold, which included four shopping centers and one land parcel. Subsequent to quarter end, the Company sold three shopping centers for $39.7 million. Transaction Activity - Joint Venture During the second quarter of 2026, the Company acquired $11.0 million in assets at PECO’s total prorated share, which included one shopping center and one outparcel. The second quarter 2026 acquisition included: Oracle Crossing, a 265,148 square foot shopping center anchored by Sprouts located in a Tucson, Arizona suburb, acquired through Necessity Retail Venture LLC. Balance Sheet Highlights As of June 30, 2026, the Company had approximately $857.3 million of total liquidity, comprised of $30.0 million of cash, cash equivalents and restricted cash, plus $827.3 million of borrowing capacity available on its $1.0 billion revolving credit facility. As of June 30, 2026, the Company’s trailing twelve month net debt to annualized adjusted EBITDAre was 5.1x. This compared to 5.2x at December 31, 2025. As of June 30, 2026, the Company’s outstanding debt had a weighted-average interest rate of 4.4% and a weighted-average maturity of 5.6 years when including all extension options, and 95.9% of the Company’s total debt was fixed-rate debt, which includes PECO’s total prorated share of debt for its joint ventures. During the second quarter of 2026, the Company generated net proceeds of $85.3 million after commissions through the issuance of 2.0 million common shares at a gross weighted average price of $42.06 per common share through its ATM program. Subsequent to quarter end, the Company generated net proceeds of $6.4 million after commissions through the issuance of 0.2 million common shares at a gross weighted average price of $42.20 per common share through its ATM program. 2026 Guidance PECO updated its 2026 earnings guidance, as summarized in the table below, which is based upon the Company’s current view of existing market conditions and assumptions for the year ending December 31, 2026. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under "Forward-Looking Statements" below. (1)   Includes the prorated portion owned through the Company’s unconsolidated joint ventures. (2)   Represents straight-line rental income and net amortization of above- and below-market leases. The Company does not provide a reconciliation for same-center NOI estimates on a forward-looking basis because it is unable to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to the Company’s results without unreasonable effort. The following table provides a reconciliation of the range of the Company's 2026 estimated net income to estimated Nareit FFO and Core FFO: Conference Call and Webcast Details PECO will host a conference call and webcast on Friday, July 24, 2026 at 12:00 p.m. Eastern Time to discuss second quarter 2026 results and provide further business updates. Chairman and Chief Executive Officer Jeff Edison, President Bob Myers and Chief Financial Officer John Caulfield will host the conference call and webcast. Dial-in and webcast information is below. Second Quarter 2026 Earnings Conference Call and Webcast Details: Date: Friday, July 24, 2026Time: 12:00 p.m. ETToll-Free Dial-In Number: (800) 715-9871International Dial-In Number: (646) 307-1963Conference ID: 4551083Webcast: Second Quarter 2026 Webcast Link Replay: An audio replay will be available approximately one hour after the conclusion of the conference call using the webcast link above. The replay will be archived on PECO’s Investor Relations website under Events & Presentations. For more information on the Company’s financial results, please refer to the Company’s Form 10-Q for the quarter ended June 30, 2026. Connect with PECO For additional information, please visit https://www.phillipsedison.com/ Follow PECO on: X at https://x.com/PhillipsEdison LinkedIn at https://www.linkedin.com/company/phillipsedison&company About Phillips Edison & Company Phillips Edison & Company, Inc. (“PECO”) is one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO’s centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO’s top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of June 30, 2026, PECO managed 330 shopping centers, including 302 wholly-owned centers comprising 33.9 million square feet across 31 states and 28 shopping centers owned in three institutional joint ventures. PECO is focused on creating great grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time. PECO uses, and intends to continue to use, its Investors website, which can be found at https://investors.phillipsedison.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. PHILLIPS EDISON & COMPANY, INC.CONSOLIDATED BALANCE SHEETSAS OF JUNE 30, 2026 AND DECEMBER 31, 2025 (Condensed and Unaudited)(In thousands, except per share amounts) PHILLIPS EDISON & COMPANY, INC.CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (Condensed and Unaudited)(In thousands, except per share amounts) Discussion and Reconciliation of Non-GAAP Measures Same-Center Net Operating Income The Company presents Same-Center NOI as a supplemental measure of its performance. The Company defines NOI as total operating revenues, adjusted to exclude non-cash revenue items and lease buyout income, less property operating expenses and real estate taxes. For the three and six months ended June 30, 2026 and 2025, Same-Center NOI represents the NOI for the 280 properties that were wholly-owned for the entirety of both calendar year periods being compared. The Company believes Same-Center NOI provides useful information to its investors about its financial and operating performance because it provides a performance measure of the revenues and expenses directly involved in owning and operating real estate assets and provides a perspective not immediately apparent from net income (loss). Because Same-Center NOI excludes the change in NOI from properties acquired or disposed of after December 31, 2024, it highlights operating trends such as occupancy levels, rental rates, and operating costs for the Company’s same center portfolio. Other REITs may use different methodologies for calculating Same-Center NOI, and accordingly, PECO’s Same-Center NOI may not be comparable to other REITs. Same-Center NOI should not be viewed as an alternative measure of the Company’s financial performance as it does not reflect the operations of its entire portfolio, nor does it reflect the impact of general and administrative expenses, depreciation and amortization, interest expense, other income (expense), or the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company’s properties that could materially impact its results from operations. Nareit Funds from Operations and Core Funds from Operations Nareit FFO is a non-GAAP financial performance measure that is widely recognized as a measure of REIT operating performance. The National Association of Real Estate Investment Trusts (“Nareit”) defines FFO as net income (loss) computed in accordance with GAAP, excluding: (i) gains (or losses) from sales of property and gains (or losses) from change in control; (ii) depreciation and amortization related to real estate; and (iii) impairment losses on real estate and impairments of in-substance real estate investments in investees that are driven by measurable decreases in the fair value of the depreciable real estate held by the unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect Nareit FFO on the same basis. The Company calculates Nareit FFO in a manner consistent with the Nareit definition. Core FFO is an additional financial performance measure used by the Company as Nareit FFO includes certain non-comparable items that affect its performance over time. The Company believes that Core FFO is helpful in assisting management and investors with the assessment of the sustainability of operating performance in future periods, and that it is more reflective of its core operating performance and provides an additional measure to compare PECO’s performance across reporting periods on a consistent basis by excluding items that may cause short-term fluctuations in net income (loss). To arrive at Core FFO, the Company adjusts Nareit FFO to exclude certain recurring and non-recurring items including, but not limited to: (i) depreciation and amortization of corporate assets; (ii) changes in the fair value of the earn-out liability; (iii) adjustments related to its investments in unconsolidated joint ventures; (iv) gains or losses on the extinguishment or modification of debt and other; (v) other impairment charges; (vi) transaction and acquisition expenses; and (vii) realized performance income. Nareit FFO and Core FFO should not be considered alternatives to net income (loss) under GAAP, as an indication of the Company’s liquidity, nor as an indication of funds available to cover its cash needs, including its ability to fund distributions. Core FFO may not be a useful measure of the impact of long-term operating performance on value if the Company does not continue to operate its business plan in the manner currently contemplated. Accordingly, Nareit FFO and Core FFO should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. The Company’s Nareit FFO and Core FFO, as presented, may not be comparable to amounts calculated by other REITs. Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate and Adjusted EBITDAre Nareit defines Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (“EBITDAre”) as net income (loss) computed in accordance with GAAP before: (i) interest expense; (ii) income tax expense; (iii) depreciation and amortization; (iv) gains or losses from disposition of depreciable property; and (v) impairment write-downs of depreciable property. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect EBITDAre on the same basis. Adjusted EBITDAre is an additional performance measure used by the Company as EBITDAre includes certain non-comparable items that affect the Company’s performance over time. To arrive at Adjusted EBITDAre, the Company excludes certain recurring and non-recurring items from EBITDAre, including, but not limited to: (i) changes in the fair value of the earn-out liability; (ii) other impairment charges; (iii) adjustments related to its investments in unconsolidated joint ventures; (iv) transaction and acquisition expenses; and (v) realized performance income. The Company uses EBITDAre and Adjusted EBITDAre as additional measures of operating performance which allow it to compare earnings independent of capital structure, determine debt service and fixed cost coverage, and measure enterprise value. Additionally, the Company believes they are a useful indicator of its ability to support its debt obligations. EBITDAre and Adjusted EBITDAre should not be considered as alternatives to net income (loss), as an indication of the Company’s liquidity, nor as an indication of funds available to cover its cash needs, including its ability to fund distributions. Accordingly, EBITDAre and Adjusted EBITDAre should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. The Company’s EBITDAre and Adjusted EBITDAre, as presented, may not be comparable to amounts calculated by other REITs. Same-Center Net Operating Income—The table below compares Same-Center NOI (dollars in thousands): (1)   Excludes straight-line rental income, net amortization of above- and below-market leases, and lease buyout income. (2)   Includes billings that will not be recognized as revenue until cash is collected or the Neighbor resumes regular payments and/or the Company deems it appropriate to resume recording revenue on an accrual basis, rather than on a cash basis. Same-Center Net Operating Income Reconciliation—Below is a reconciliation of Net Income to NOI and Same-Center NOI (in thousands): (1)   Includes straight-line rent adjustments for Neighbors for whom revenue is being recorded on a cash basis. (2)   Includes operating revenues and expenses from non-same-center properties, which includes properties acquired or sold, and corporate activities. Nareit FFO and Core FFO—The following table presents the Company’s calculation of Nareit FFO and Core FFO and provides additional information related to its operations (in thousands, except per share amounts): EBITDAre and Adjusted EBITDAre—The following table presents the Company’s calculation of EBITDAre and Adjusted EBITDAre (in thousands): (1)   Realized performance income includes fees received related to the achievement of certain performance targets in the Company’s Necessity Retail Partners joint venture, which was dissolved in December 2025. Financial Leverage Ratios—The Company believes its net debt to Adjusted EBITDAre, net debt to total enterprise value, and debt covenant compliance as of June 30, 2026 allow it access to future borrowings as needed in the near term. The following table presents the Company’s calculation of net debt and total enterprise value, inclusive of its prorated portion of net debt and cash and cash equivalents owned through its unconsolidated joint ventures, as of June 30, 2026 and December 31, 2025 (in thousands): (1)   Total equity market capitalization is calculated as diluted shares multiplied by the closing market price per share, which includes 140.8 million and 138.5 million diluted shares as of June 30, 2026 and December 31, 2025, respectively, and the closing market price per share of $41.62 and $35.57 as of June 30, 2026 and December 31, 2025, respectively. (2)   Fully diluted shares include common stock and OP units. The following table presents the Company’s calculation of net debt to Adjusted EBITDAre and net debt to total enterprise value as of June 30, 2026 and December 31, 2025 (dollars in thousands): (1)   Adjusted EBITDAre is based on a trailing twelve month period. Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Phillips Edison & Company, Inc. (the “Company”) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Such forward-looking statements can generally be identified by the Company’s use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” “seek,” “objective,” “goal,” “strategy,” “plan,” “focus,” “priority,” “should,” “could,” “potential,” “possible,” “look forward,” “optimistic,” “commit,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this earnings release. Such statements include, but are not limited to: (a) statements about the Company’s plans, strategies, initiatives, and prospects; (b) statements about the Company’s underwritten incremental yields; and (c) statements about the Company’s future results of operations, capital expenditures, and liquidity. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation: (i) changes in national, regional, or local economic climates; (ii) local market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in the Company’s portfolio; (iii) vacancies, changes in market rental rates, and the need to periodically repair, renovate, and re-let space; (iv) competition from other available shopping centers and the attractiveness of properties in the Company’s portfolio to its tenants; (v) the financial stability of the Company’s tenants, including, without limitation, their ability to pay rent; (vi) the Company’s ability to pay down, refinance, restructure, or extend its indebtedness as it becomes due; (vii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors; (viii) potential liability for environmental matters; (ix) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (x) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax, and other considerations; (xi) changes in tax, real estate, environmental, and zoning laws; (xii) information technology security breaches; (xiii) the Company’s corporate responsibility initiatives; (xiv) loss of key executives; (xv) the concentration of the Company’s portfolio in a limited number of industries, geographies, or investments; (xvi) the economic, political, and social impact of, and uncertainty relating to, pandemics or other health crises; (xvii) the Company’s ability to re-lease its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant; (xviii) the loss or bankruptcy of the Company’s tenants; (xix) to the extent the Company is seeking to dispose of properties, the Company’s ability to do so at attractive prices or at all; and (xx) the impact of heightened geopolitical instability, international conflicts, tariffs and global trade disruptions on the Company, its tenants, and consumers, including the impact on inflation, supply chains, and consumer sentiment. Additional important factors that could cause actual results to differ are described in the filings made from time to time by the Company with the SEC and include the risk factors and other risks and uncertainties described in the Company’s 2025 Annual Report on Form 10-K, filed with the SEC on February 10, 2026, as updated from time to time in the Company’s periodic and/or current reports filed with the SEC, which are accessible on the SEC’s website at www.sec.gov. Therefore, such statements are not intended to be a guarantee of the Company’s performance in future periods. Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Investors: Kimberly Green, Head of Investor Relations(513) [email protected] Hannah Harper, Director of Investor Relations(513) [email protected]

CINCINNATI, June 23, 2026 (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, will announce its Second Quarter 2026 earnings results on Thursday, July 23, 2026, after the market closes. PECO’s earnings release and financial supplement will be posted on the Investor Relations section of the Company’s website at https://investors.phillipsedison.com/. Chairman and Chief Executive Officer Jeff Edison, President Bob Myers and Chief Financial Officer John Caulfield will host an earnings conference call, which will also be webcast, on Friday, July 24, 2026, at 12:00 p.m. ET. Second Quarter 2026 Earnings Conference Call and Webcast Details: Date: Friday, July 24, 2026 Time: 12:00 p.m. Eastern Time Participant Toll-Free Dial-In Number: (800) 715-9871 Participant Toll Dial-In Number: (646) 307-1963 Conference ID: 4551083 Webcast: Second Quarter 2026 Webcast Link A webcast replay will be available approximately one hour after the conclusion of the event using the same link. Webcasts are archived on PECO’s Investor Relations website. Connect with PECOFor additional information, please visit https://www.phillipsedison.com/ Follow PECO on:X at https://x.com/PhillipsEdison Facebook at https://www.facebook.com/phillipsedison.co Instagram at https://www.instagram.com/phillips.edison/; andFind PECO on LinkedIn at https://www.linkedin.com/company/phillipsedison&company About Phillips Edison & CompanyPhillips Edison & Company, Inc. (“PECO”) is one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO’s centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO’s top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of March 31, 2026, PECO managed 326 shopping centers, including 299 wholly-owned centers comprising 33.7 million square feet across 31 states and 27 shopping centers owned in three institutional joint ventures. PECO is focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time. PECO uses, and intends to continue to use, its Investors website, which can be found at https://investors.phillipsedison.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Investors:Kimberly Green, Head of Investor Relations(513) 692-3399, [email protected]

CINCINNATI, May 12, 2026 (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 announced that its Board of Directors declared monthly dividend distributions of $0.1083 per share of the Company’s common stock payable on July 1, 2026 and August 4, 2026 to stockholders of record as of June 15, 2026 and July 15, 2026, respectively. Operating partnership unit holders receive distributions at the same rate as common stockholders, subject to the required tax withholding. Earlier in the day, PECO held its annual meeting of stockholders in a virtual-only format. At the annual meeting, PECO’s stockholders elected all of PECO’s directors: Jeffrey S. Edison; Leslie T. Chao; Elizabeth O. Fischer; Devin I. Murphy; Stephen R. Quazzo; Jane E. Silfen; John A. Strong; Anthony E. Terry; Parilee E. Wang; and Gregory S. Wood, to its Board of Directors for one-year terms. Stockholders also approved a non-binding, advisory resolution on the compensation of PECO’s named executive officers and ratified the appointment of Deloitte & Touche LLP as PECO’s independent registered public accounting firm for 2026. Connect with PECO For additional information, please visit https://www.phillipsedison.com/ Follow PECO on: X at https://x.com/PhillipsEdison Facebook at https://www.facebook.com/phillipsedison.co Instagram at https://www.instagram.com/phillips.edison/; and Find PECO on LinkedIn at https://www.linkedin.com/company/phillipsedison&company/ About Phillips Edison & Company Phillips Edison & Company, Inc. (“PECO”) is one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO’s centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO’s top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of March 31, 2026, PECO managed 326 shopping centers, including 299 wholly-owned centers comprising 33.7 million square feet across 31 states and 27 shopping centers owned in three institutional joint ventures. PECO is focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time. PECO uses, and intends to continue to use, its Investors website, which can be found at https://investors.phillipsedison.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Forward-Looking Statements This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally be identified by the Company’s use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” “seek,” “objective,” “goal,” “strategy,” “plan,” “focus,” “priority,” “should,” “could,” “potential,” “possible,” “look forward,” “optimistic,” “commit,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including the risk factors and other risks and uncertainties described in the Company’s 2025 Annual Report on Form 10-K, filed with the SEC on February 10, 2026, as updated from time to time in the Company’s periodic and/or current reports filed with the SEC, which are accessible on the SEC’s website at www.sec.gov. Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Investors Kimberly Green, Head of Investor Relations (513) 692-3399, [email protected]

Strong Q1 results and raised guidance: Phillips Edison reported NAREIT FFO of $92.9M ($0.67/share) and core FFO of $96.4M ($0.69/share) with same‑center NOI up 3.5%, and management raised full‑year 2026 FFO per‑share guidance to mid‑to‑high single‑digit growth. Robust leasing momentum: Portfolio occupancy remained elevated (97.1% overall; 95% inline) with hefty rent spreads (21.2% renewals, 36.2% new) driven by necessity‑based tenants and an active leasing pipeline. Active capital deployment and strong liquidity: PECO completed a $350M 4.75% senior note offering, held $810M of liquidity at quarter end, logged $185M of YTD acquisitions with $150M under contract, and is targeting $400M–$500M of full‑year acquisitions while planning $100M–$200M of dispositions. Interested in Phillips Edison & Company, Inc.? Here are five stocks we like better. PECO Pullback Presents a Retail REIT Worth Shopping For Phillips Edison & Company, Inc. (NASDAQ:PECO) reported first-quarter 2026 results that management described as another period of “strong results,” supported by leasing strength across its grocery-anchored and necessity-based shopping center portfolio. The company also raised its full-year 2026 outlook, citing operating momentum, acquisition activity, and the benefits of recent financing. Chairman and CEO Jeffrey Edison said the company generated “NAREIT FFO per share growth of 4.7%, core FFO per share growth of 6.2%, and same center NOI growth of 3.5%” in the first quarter. He added that Phillips Edison is “pleased to increase our full year 2026 guidance,” with growth rates for NAREIT FFO and core FFO per share “in the mid to high single digits,” which he said is consistent with the company’s long-term targets. → Pipelines and Automation: 2 Energy Plays Built for Any Oil Price CFO John Caulfield provided the quarterly figures, reporting first-quarter 2026 NAREIT FFO of $92.9 million, or $0.67 per diluted share, and core FFO of $96.4 million, or $0.69 per diluted share. Same-center NOI increased 3.5% in the quarter, which Caulfield said was “primarily due to higher revenue,” driven by “increases in average rents and economic occupancy.” On guidance, Caulfield said the updated 2026 NAREIT FFO per share outlook reflects a 5.9% increase over 2025 at the midpoint, while the updated core FFO per share guidance represents a 5.8% increase over 2025 at the midpoint. The company reiterated its expectation for 3% to 4% same-center NOI growth in 2026 and reaffirmed its full-year gross acquisitions guidance of $400 million to $500 million at PECO share. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank Asked why FFO guidance increased while underlying ranges were largely unchanged, Caulfield pointed to a “strong operating environment,” “strong year-to-date acquisition activity,” and the company’s “recent bond offering.” He also noted first-quarter bad debt came in “near the lower end” of the company’s range and said the bond offering priced at an interest rate “lower than we budgeted,” while adding the company is monitoring the SOFR curve, which he said is “higher than where we started the year.” President Robert Myers highlighted continued demand from necessity-based categories and said “74% of PECO’s rents come from necessity-based goods and services.” He said the company continues to see “high retailer demand with no current signs of slowing,” pointing to categories such as quick service and fast casual restaurants, health and wellness, beauty, fitness, and “medtail.” → Meta Platforms Earnings Preview: What to Watch in Q1 2026 Report Occupancy remained elevated in the first quarter, with Myers reporting: Lease portfolio occupancy of 97.1% Leased anchor occupancy of 98.4% Leased inline occupancy of 95% Myers also emphasized rent spread strength. Comparable renewal rent spreads were 21.2% in the first quarter, and comparable new rent spreads were 36.2%. He said in-line leasing deals executed during the quarter, both new and renewal, achieved average annual rent bumps of 2.7%. In response to a question about whether there were signs of softening among discretionary or smaller tenants, Myers said the company’s “best renewal pipeline and new leasing pipeline” has been as strong as what the company has seen over the past six to nine months. He cited that the company “just approved 28 deals in the last nine days,” and said the company is “not seeing any pullbacks” from local or national tenants. Myers also said occupancy costs “continue to remain very strong at 10%.” Addressing inline occupancy upside, Myers said the company implemented a “bounty targeted space approach” focused on its top 100 spaces by annual base rent opportunity. He said PECO had executed 28 deals on those spaces through April, with another 24 at LOI or lease out, describing the initiative as a “needle mover” for closing the gap toward higher inline occupancy. Myers said bad debt was lower than expected in the first quarter at “around 60 basis points of revenue.” He added the company continues to expect bad debt in 2026 to be in line with 2025, when it was “just 78 basis points of revenue for the year.” On collectability assumptions, Caulfield said the components of the company’s guidance were “pretty consistent” with prior periods, and he noted that the “absolute count of neighbors that we are focused on actually declined this quarter compared to last,” which he called a “very positive sign,” particularly given ongoing acquisitions. Myers and Edison also discussed tenant “health ratios” and occupancy costs. Edison said the 10% occupancy-cost figure is “such a generic number” because health varies by retail category, and he pointed to the benefit of inflation and sales growth in keeping the ratio steady while rents rise. Myers said the company has been able to hold the health ratio around 9.5% to 10% while still producing renewal increases, and he said he sees room over time to move toward 10% to 13% or 14%, depending on use and merchant type. On development and redevelopment, Myers said PECO has 19 projects under active construction, with total estimated investment of approximately $74 million and average estimated yields between 9% and 12%. During the first quarter, six projects were stabilized, delivering more than 87,000 square feet of space and reflecting incremental NOI of approximately $1.7 million annually. Myers said year-to-date acquisition activity “through this week” totaled $185 million, including five grocery-anchored shopping centers, three everyday retail centers, and land for future development. He added the company has approximately $150 million in awarded or under-contract assets expected to close by the end of the second quarter, including grocery-anchored centers, everyday retail centers, and joint venture opportunities. During Q&A, Edison and Myers described a transaction market with “ample supply of product” and continued buyer appetite, including “billion-plus” transactions returning to the space. Edison said PECO’s opportunities were up 70% year-over-year at the same point in time, while Myers said the company had reviewed 195 deals this year versus 115 last year. Myers also said PECO’s year-to-date acquisitions were being bought at “a cap rate of about 6.6%, 6.7%,” while still “solving for our unlevered returns above 9%,” and he said the pipeline cap rates were consistent in a 6.5% to 6.75% range. Management also discussed PECO’s “everyday retail” acquisitions, which are not necessarily grocery anchored. Edison said the company is pursuing “very specific opportunities” where it believes it can earn “outsized returns” in a more “inefficient” market. Myers said PECO has closed on 12 assets in the strategy over roughly two and a half years for about $221 million, describing purchases from “less sophisticated owners” where PECO can apply its leasing platform. He said the subset has “5% CAGRs,” with some assets at “8%-10% CAGRs,” and that PECO has improved occupancy by 310 basis points across those assets. He also cited new leasing spreads of 45% and renewal spreads of 27% in that category, adding that the company has acquired these assets at a “6.9 cap” while targeting “between 10% and 11% unlevered returns.” On new supply, Edison said greenfield development remains limited overall, with select pockets tied to specific grocer expansion, including Publix and H-E-B. He said PECO is “just not seeing much at all in our markets,” which he said is contributing to a favorable operating environment for occupancy and rent growth. Caulfield said the company extended weighted average debt maturity and increased its percentage of fixed-rate debt during the quarter. In February, PECO completed a public debt offering of $350 million aggregate principal amount of 4.75% senior notes due 2033, using proceeds to repay term loans maturing in 2027 and a portion of its revolver. At quarter-end, Caulfield said PECO had $810 million in liquidity. Net debt to trailing 12-month annualized adjusted EBITDA was 5.3 times at quarter end. Outstanding debt carried a weighted average interest rate of 4.4% and a weighted average maturity of 5.8 years including extension options, with 94% of total debt fixed rate (including PECO’s share of JV debt). On dispositions, Caulfield said PECO has sold $29 million of assets year to date at PECO share and plans to sell $100 million to $200 million in 2026. Edison said the company is closely watching the “gap between private and public market pricing of assets,” estimating a 50 to 75 basis point difference that he said currently makes private markets “a better source of capital.” He said public companies need to focus on “the cheapest source of capital,” pointing to tools including joint ventures, equity issuance, and asset sales. In response to a follow-up on dispositions and joint ventures, Edison said investors may see “a little bit more lean in” to dispositions because “it’s attractive.” On joint ventures, Edison said the JV strategy is primarily designed to “expand what we can buy,” adding that PECO is buying assets in JVs it “would not buy on the balance sheet,” and that the strategy helps reduce full exposure while also providing a “fee structure that’s complementary.” In closing remarks, Edison reiterated confidence in the company’s positioning, citing “solid foot traffic and market-leading pricing power,” and said that while the macro environment remains volatile, PECO is “well-positioned to perform through cycles.” Phillips Edison & Company, Inc is a publicly traded real estate investment trust (REIT) that specializes in the acquisition, ownership and operation of grocery-anchored, necessity-based shopping centers. The company's investment strategy is centered on properties that benefit from everyday consumer demand, seeking to deliver stable cash flows through long-term, triple-net leases with national and regional tenants in the grocery, drugstore and essential retail sectors. In addition to its core retail portfolio, Phillips Edison & Company provides integrated services covering property management, asset management, leasing, development and acquisition sourcing. The article "Phillips Edison & Company, Inc. Q1 Earnings Call Highlights" was originally published by MarketBeat.

Image source: The Motley Fool. Friday, April 24, 2026 at 12 p.m. ET Chief Executive Officer — Jeffrey S. Edison President & Chief Financial Officer — Robert F. Myers Chief Financial Officer — John P. Caulfield Operator Need a quote from a Motley Fool analyst? Email [email protected] Jeffrey S. Edison: Thank you, Kimberly, and thank you everyone for joining us today. We are pleased to report another quarter of strong results, which reflect the strength of our high-quality portfolio and the consistency of our execution. The Phillips Edison & Company, Inc. team delivered NAREIT FFO per share growth of 4.7%, core FFO per share growth of 6.2%, and same-center NOI growth of 3.5%. We are pleased to increase our full-year 2026 guidance. Our growth rates for NAREIT FFO and core FFO per share are in the mid to high single digits, consistent with our long-term targets. We are operating in a time where there are many ongoing uncertainties, both domestically and globally. Interest rates have been volatile. The global trade picture is shifting, and conflicts overseas continue to affect markets. Technology, especially AI, is changing how companies work. Add in an active election cycle and high energy costs, and it is no surprise that there is a general feeling of uncertainty. In times like this, the market tends to reward businesses that have stability. And that is exactly where Phillips Edison & Company, Inc. plays: grocer-anchored, necessity-based, everyday retail. Phillips Edison & Company, Inc. offers resilience while also offering steady growth. We believe Phillips Edison & Company, Inc. is built to deliver growth across changing economic cycles. Our long-term growth targets remain unchanged. We are maintaining our focus on driving value at the property level. Our retailers are healthy and continue to look long term. We are seeing a resilient consumer, and our top grocers and necessity-based retailers continue to drive solid foot traffic to our centers. One of the dynamics we are watching closely is the gap between private and public market pricing of assets. This influences our capital decisions, including how we fund growth and where we invest, and it is why the Phillips Edison & Company, Inc. team stays disciplined about accessing the most efficient capital. Our platform can raise capital in the public markets, through institutional joint ventures, and through asset recycling. We believe markets in 2026 will reward companies with a focused growth strategy and the ability to fund growth responsibly. Phillips Edison & Company, Inc. is well positioned to continue to do both. In summary, we are pleased with first quarter results and our outlook for 2026. We operate in a resilient part of retail. We are located in the neighborhood close to your home. We are disciplined about our investments. And most importantly, we have the best teams in the business. With our shares trading at a discount to our long-term growth profile, we believe Phillips Edison & Company, Inc. represents an attractive opportunity to invest in a leading operator that can deliver mid to high single-digit annual earnings growth. We will continue to drive more alpha with less beta. With that, I will turn the call over to Robert F. Myers. Bob? Robert F. Myers: Thank you, Jeff, and thank you for joining us, everyone. Our first quarter results were marked by solid leasing activity and success in growing cash flows. We continue to see high retailer demand with no current signs of slowing. Necessity-based categories, quick service and fast casual restaurants, health and wellness, beauty, fitness, and med tail continue to be excellent drivers of demand. Seventy-four percent of Phillips Edison & Company, Inc.'s rents come from necessity-based goods and services. Phillips Edison & Company, Inc.'s leasing team remains focused on capturing demand and driving continued high occupancy while pushing very impressive comparable rent spreads. Our pricing power remains market leading. During the first quarter, leased portfolio occupancy remained high at 97.1%. Leased anchor occupancy remained strong at 98.4%, and leased inline occupancy remained high at 95%. Our rent spreads reflect an extremely positive retailer environment. During the first quarter, Phillips Edison & Company, Inc. delivered comparable renewal rent spreads of 21.2%. Solid retention during the quarter means less downtime and lower tenant improvement costs, which translates to better economics for Phillips Edison & Company, Inc. Looking at comparable new rent spreads, they remained strong at 36.2% during the quarter. Inline leasing deals executed during the first quarter, both new and renewal, achieved average annual rent bumps of 2.7%. This is another important contributor to our long-term growth. As it relates to bad debt, we actively monitor the health of our neighbors. Bad debt was lower than expected in the first quarter at around 60 basis points of revenue. We continue to expect bad debt in 2026 to be in line with 2025, which came in at just 78 basis points of revenue for the year. Our retailers remain healthy. We have a highly diversified neighbor mix with no meaningful rent concentration outside of our grocers. Turning to development and redevelopment, Phillips Edison & Company, Inc. has 19 projects under active construction. Our total investment in this activity is estimated to be approximately $74 million with average estimated yields between 9% and 12%. During the first quarter, six projects were stabilized with over 87 thousand square feet of space delivered to our neighbors. This reflects incremental NOI of approximately $1.7 million annually. We are focused on growing Phillips Edison & Company, Inc.'s development and redevelopment pipelines, which is an important driver of growth. In addition, the Phillips Edison & Company, Inc. team continues to find accretive acquisitions that add long-term value to our portfolio. Our year-to-date acquisition activity through this week reflects $185 million. This includes five grocery-anchored shopping centers, three everyday retail centers, and land for future development. Currently in our pipeline, we have approximately $150 million in assets that we have been awarded or are under contract that we expect to close by the end of the second quarter. Our pipeline reflects a combination of grocery-anchored neighborhood shopping centers, everyday retail centers, and joint venture opportunities. I will now turn the call over to John. John? John P. Caulfield: Thank you, Bob, and good morning and good afternoon, everyone. Our strong first quarter results demonstrate what we have built at Phillips Edison & Company, Inc.: a high-performing grocery-anchored and necessity-based portfolio that generates reliable, high-quality cash flows. First quarter 2026 NAREIT FFO increased to $92.9 million, or $0.67 per diluted share. First quarter core FFO increased to $96.4 million, or $0.69 per diluted share. And same-center NOI increased 3.5% in the quarter, primarily due to higher revenue driven by increases in average rents and economic occupancy. Turning to our balance sheet, this quarter we extended our weighted average duration on our maturity and increased our percentage of fixed-rate debt, which is important in times of interest rate volatility. In February, we completed a public debt offering of $350 million aggregate principal amount of 4.75% senior notes due 2033. The proceeds were used to repay term loans that were maturing in 2027 and a portion of our revolver. With $810 million in liquidity at the end of the quarter, we have the capacity to execute our growth plan. Our net debt to trailing twelve-month annualized adjusted EBITDAR was 5.3x at quarter end and was 5.1x on a last quarter annualized basis. At the end of the first quarter, Phillips Edison & Company, Inc.'s outstanding debt had a weighted average interest rate of 4.4% and a weighted average maturity of 5.8 years when including all extension options, and 94% of our total debt is fixed-rate debt, which includes Phillips Edison & Company, Inc.'s share of debt for our JVs. We are pleased to increase our 2026 guidance. Key drivers of our increased guidance include a continued strong operating environment, strong year-to-date acquisitions activity, and our recent bond offering. Our updated guidance for 2026 NAREIT FFO per share reflects a 5.9% increase over 2025 at the midpoint, and our updated guidance for 2026 core FFO per share represents a 5.8% increase over 2025 at the midpoint. We are pleased with these strong growth rates. We are reiterating our full-year 2026 guidance of 3% to 4% same-center NOI growth, and we are pleased to reaffirm our full-year 2026 guidance of $400 million to $500 million in gross acquisitions at Phillips Edison & Company, Inc.'s share. The Phillips Edison & Company, Inc. team is not just maintaining a high-quality portfolio; we are building one. We continue to have one of the best balance sheets in the sector, which has us well positioned for continued external growth. As Jeff mentioned, we remain disciplined about accessing the most efficient capital. These sources include additional debt issuance, dispositions, joint ventures, and equity issuance when the markets are more favorable. Year to date, we have sold $29 million of assets at Phillips Edison & Company, Inc.'s share. We plan to sell between $102.1 billion in assets in 2026. In summary, we are very pleased with our results this quarter, and our ability to raise guidance for the remainder of the year. We continue to see a resilient consumer, and we believe our portfolio will outperform as necessity-based retailer demand remains strong. Looking beyond 2026, we continue to believe that Phillips Edison & Company, Inc. can consistently deliver 3% to 4% same-center NOI growth and achieve mid to high single-digit core FFO per share growth on a long-term basis. We also believe that our long-term AFFO growth can be higher as more of our leasing mix is weighted towards renewal activity. We believe our targets for core FFO per share and AFFO growth will allow Phillips Edison & Company, Inc. to outperform the growth of our shopping center peers on a long-term basis. We will now open the call for questions. Operator? Operator: Thank you. As a gentle reminder, please limit yourself to one question. You may re-queue. Your first question comes from Andrew Reel with Bank of America. Please go ahead. Andrew Reel: Good afternoon. Thanks for taking my question. We can appreciate your necessity-focused tenant base is positioned to weather some macro uncertainty, but just curious to hear any latest color on your conversations with some of these discretionary or off-price mom-and-pop tenants in the current environment—maybe any incremental changes in their tone or plans versus, say, six months ago—and how do those conversations compare to what you are hearing on the necessity side? Jeffrey S. Edison: Great question, Andrew, because it is one that we are very focused on as we try to read what kind of feedback we can get there. Bob, would you like to give a little color to that and what we are seeing? Robert F. Myers: Absolutely. Thank you for the question, Andrew. This is something that we monitor all the time, and probably our best indicator—not only are we on the ground, locally smart—we also have visibility that would suggest that we have the best renewal pipeline and new leasing pipeline in about the last six to nine months. An interesting fact is we just approved 28 deals in the last nine days. The feedback that we are getting—with high retention and leasing spreads at 21.2% this last quarter—reflects strength, and we are not seeing any pullbacks, even from the local tenants or from national retailer demand. All the retailers that we meet with at ICSC are looking for new sites in 2026, 2027, and 2028. Occupancy costs continue to remain very strong at 10%. We feel very good about where we are at currently. Operator: Thank you. Your next question comes from the line of Haendel St. Juste with Mizuho. Please go ahead. Haendel St. Juste: I wanted to ask about transactions. Obviously, you had a very active start to the year—$185 million in the quarter—and another $150 million in negotiation and under contract. What are you seeing or picking up in your conversations? Are there any changes in either the volume of buyers out there, underwriting, or competition that suggest people could be pulling back in light of the choppy macro? And thoughts on deployment of capital over the next few months—any willingness to scale back a bit to see if there are changes in pricing as a result of the choppy macro? Jeffrey S. Edison: Great question, Haendel. It is a simple supply-demand issue. We are seeing a very ample supply of product coming on the market. Yes, there are more buyers, and we have had some major transactions take place in the business that we have not seen for a while that are of substance—billion-plus kind of acquisitions. You continue to see a strong appetite, and it is all driven by what Bob was talking about in the last question: we are in a really good operating environment. In that operating environment, there continue to be a strong group of buyers out there. But we are also seeing a lot of product. Our opportunities year to date are up 70% over last year at this time. So we are seeing a lot of product, but we do have competition. Bob, anything else you want to add? Robert F. Myers: The only other thing I would add is we continue to sell our product. We have investment committee every week, and we are reviewing anywhere between five and ten new projects a week. We have reviewed 195 deals this year compared to 115 last year. The deals that we are underwriting are up about 26%, and the deals that have been presented to investment committee are up 40%. If anything, we are continuing to see more product hit the market than less. I think there are real sellers. Yes, there is more competition. There are more buyers out there. But you have seen the success we have had with the ten acquisitions that we acquired year to date—we are buying these at a cap rate of about 6.5% to 6.75%, and we are still solving for our unlevered returns above 9%. We do not see anything really slowing down. If you look at the $150 million pipeline and the $185 million that we have closed, we are in a great spot to be in the range of our guidance between $405.1 billion, if not more, based on the opportunity set that we see. Haendel St. Juste: And no change in the cap rate for the pipeline versus the $185 million already done? Robert F. Myers: It is consistent with that 6.5% to 6.75%. Haendel St. Juste: Got it. Thank you. Operator: Your next question comes from the line of Michael Griffin with Evercore ISI. Please go ahead. Michael Griffin: Thanks. On the leasing pipeline, particularly as it relates to renewals, it seems like you have really seen continued strong demand. In your conversations when leases are coming up for negotiation—thinking particularly about some bigger boxes and grocers—is there any opportunity to shorten the number of option periods or embed rent step-ups? I realize you are able to get those with the inline tenants, but with the bigger boxes, is there any way in those lease negotiations to get more leverage on the landlord side to drive earnings growth or rent bumps throughout the course of a new term? Robert F. Myers: Great question. Certainly, most of our grocers that we have inherited over the past 25 to 30 years already have embedded options for the next 30 years, and they are typically flat. Sometimes you get lucky and they might be 5%. If we ever have the opportunity to renegotiate with them—or in a case where they are paying percentage rent—where we can blend the rent together and reset the terms, or if we decide to give an anchor that is a grocer an inducement, in a lot of cases we are able to negotiate added term and some sort of bumps that go along with that. We are capitalizing on as much of that as we can. Probably the biggest value is just through consents on restrictions, no-build areas, or, given the relationships of being the number one grocer owner in the market, it gives us flexibility to create a lot of value. So we are picking up value in other places. And then, as you mentioned, with our inline tenants that we are negotiating new leases with, we limit the amount of options; if we do give options, we want to see, you know, 20% with good 3% to 4% CAGRs year after year. It is a combination of that and, during our renewals, cleaning up items that are nonmonetary clauses—think caps and restrictions, no-builds—where we are able to unlock value. I am glad we are doing it because we are 97.1% occupied, so we continue to find leverage through those avenues. Operator: Your next question comes from the line of Caitlin Burrows with Goldman Sachs. Please go ahead. Caitlin Burrows: Given the strong operating environment, your comments that you bought land, and that you want to increase development and redevelopment, what is your latest take on your own development and redevelopment and the industry more broadly? Jeffrey S. Edison: Thanks for the question, Caitlin. We have announced we have about $70 million of development work that we are on right now for this year, and we continue to be able to do that at very attractive returns. It is an important part of our business. It is not the major part of our business, but it is one that we are looking for opportunities in all the time. Bob, any other thoughts? Robert F. Myers: The only thing I would add is that we purchased two parcels so far this year, and they are right beside our grocers. A great example is one that we acquired in North Port, Florida. It is about 5.8 acres. We are going to create five different pads. Our center is Publix-anchored right across the street; it does $1 thousand a foot and it is full. There continues to be a tremendous amount of demand, and we already have a lot of this pre-leased. We continue to find those high-opportunity sites. The other land parcel that we acquired is an old bank, and banks are wonderful opportunities to repurpose and bring in a Starbucks or Chipotle or Swig—somebody that is hot and in demand. We are able to generate somewhere between 9% and 12% returns on those ground-up development opportunities, which is consistent with us. We have increased our development pipeline over the past few years from $40 million to $50 million to $74 million this year, as an example. We want to continue to lean into those opportunities and continue to look for ways to create value at each of our properties. Operator: Thank you. Your next question comes from the line of Ronald Kamden with Morgan Stanley. Please go ahead. Ronald Kamden: Just a quick two-parter. On the 95% inline occupancy, thoughts on getting to 96% to 97%? What sort of blocking and tackling needs to get done to get there? And then a quick follow-up: I think I see your local neighbors concentration ticked up to 26% versus 25% last quarter. Was that intentional, and where are you comfortable with that local neighbor exposure? Robert F. Myers: There has not been any real movement on the local side between 25% or 26%—that is right on top of each other. On the 95% inline question, one of the initiatives we put in place this past year was a bounty targeted space approach. We identified our top 100 spaces that would create the highest ABR on an annual basis. We put our leasing team on that and put different incentives in place. Through April, we have executed 28 deals on those particular spaces with another 24 at LOI or lease out, so we are almost 50% of the way there. That is your needle mover. With very high retention numbers of 90% to 93%, complemented by these targeted space initiatives, that is how you get the other 100 to 150 basis points. We are seeing a lot of success, and I am really excited about where we will finish the year. Operator: Your next question comes from the line of Cooper R. Clark with Wells Fargo. Please go ahead. Cooper R. Clark: Thanks for taking the question. Retention came down year over year while new rents were up significantly. How much of this was you proactively deciding to take back space and not renew certain tenants, given the ability to drive strong pricing power with potentially healthy operators? Any color on how to think about that dynamic and retention levels moving forward? Robert F. Myers: Great question. Our retention rate this quarter was 88%. That had 100% to do with a 64 thousand square foot box that we knew was going to vacate about three years ago. We already have three tenants lined up to backfill it at significantly higher levels of rent. If you exclude that one-time situation, our retention for the quarter would have been 92.4%. It is not a crack or an indication. A normal part of our business is capturing spaces where we see better opportunities to do mark-to-market rent adjustments. We will always be focused on merchandising and finding the right necessity-based goods and services retailer so we can continue to get attractive leasing spreads and drive consumer demand. Operator: Your next question comes from the line of Michael Goldsmith with UBS. Please go ahead. Michael Goldsmith: Good afternoon, and thanks for taking my question. You took up the FFO guidance, but none of the underlying components moved higher. Can you provide a little bit of context for what drove the higher earnings expectation? Is it acquisition timing, termination fee income, or anything else? Just trying to get a sense of what is driving the greater confidence in earnings here. Jeffrey S. Edison: Thanks for the question, Michael. It is a variety of things. John, do you want to go through the pieces? John P. Caulfield: Good afternoon, everyone. We started the year at a great pace, with a strong operating environment like Bob has been talking about, strong year-to-date acquisition activity, and our recent bond offering. In the quarter, our bad debt was near the lower end of our range, and we were pleased that the bond was at an interest rate lower than we budgeted. It is still early in the year, and one thing we are watching is the SOFR curve, which is higher than where we started the year. When we look at bad debt, we maintained that range. We considered each of the ranges. We like the ranges where they are. Overall, after a good first quarter, we are more optimistic about the year than where we started, and that gave us confidence to raise our ranges for FFO. It is early—it is Q1—we will have opportunities to refine, but we are very happy that our growth rates are in the mid to high single digits for 2026, which is consistent with our long-term growth targets. That gives us a good and more confident outlook for the year. Operator: Your next question comes from the line of Todd Michael Thomas with KeyBanc Capital Markets. Please go ahead. Todd Michael Thomas: Hi. Good afternoon. Jeff, you indicated in prepared remarks that you are closely watching private and public market valuations. Can you elaborate on that comment—what you see as the spread today relative to where you are trading, the acquisition cap rates you are achieving, and so forth? And what actions does the company take as a result? Jeffrey S. Edison: Great question, and one we have spent a fair amount of time looking at. Our view is that in the private markets today—there are some fairly major transactions that have taken place—there is a 50 to 75 basis point difference between where the public markets are and where the private markets are. That makes the private markets a better source of capital. If you look at the major transactions that have happened in our space this year, the winners are the private equity capital across the board. For the public companies, we have to continue to find the cheapest source of capital so we can continue to take advantage of the opportunities in the marketplace. That means you are always looking at everything: joint ventures, issuing equity, selling assets—all of which are part of figuring out where you can get the cheapest source of capital so you can continue to fund your growth going forward. That is what we are focused on. The market comes up and down and changes over time, but that is our focus. Todd Michael Thomas: You reiterated the disposition volume for the year. Do you lean into dispositions a little bit more as the year progresses, or lean a bit more on joint venture capital than you have year to date? Any changes around the edges given that spread you are seeing in the market? Jeffrey S. Edison: I think yes, there is a little bit more lean-in because it is attractive, and you will see some leaning in. Operator: Your next question comes from the line of Floris Van Dijkum with Ladenburg. Please go ahead. Floris Van Dijkum: Thanks for taking my question. Following up on the capital allocation, I noticed that you closed on two unanchored centers during the quarter, and you have one that has happened subsequent. Maybe talk a little bit more about the return expectations and why you think this makes sense for Phillips Edison & Company, Inc. to pursue these centers, and why investors should be excited about venturing away from your typical grocery anchors. Jeffrey S. Edison: Thanks, Floris, for the question. We have made it clear over the last twelve months that we are really excited about very specific opportunities to take advantage of everyday retail where we think we can get outsized returns. It is a much more inefficient market than our core market, and we think there is a place for that in our portfolio, where we can use our market knowledge and our locally smart ability to know markets to take advantage of that. We think it is a great opportunity for the company to get outsized returns for part of our portfolio, and we are going to continue to look for those opportunities. It is hard, and it is a big market—you have to find the inefficiencies—but that is what we are really good at. We are the best at taking those properties and turning them into really strong assets. In our buying, we are targeting properties where we can take the Phillips Edison & Company, Inc. machine and create a lot of value. The first two are great examples of what we will be able to show the market we can do with them. Bob? Robert F. Myers: Thanks, Floris. I am really excited about this strategy. Over the last two and a half years, we have closed on 12 assets for about $221 million. We are finding opportunities to buy properties from less sophisticated owners where we can put our national accounts team on them. The criteria we set: exceptional demographics—$110 thousand median incomes in three miles, 100 thousand people in three miles—plus configuration and sight lines. I like to see about 45% local tenants, 55% national, which gives us the opportunity to continue to increase spreads and rents. Looking at the subset of 12, they have 5% CAGRs, a great complement to our 3% to 4%. In some cases, we have acquired some that are 8% to 10% CAGRs. We have already moved the needle 310 basis points in occupancy on this subset of 12. Our new leasing spreads in this category have been 45%, and our renewal spreads are 27%. There are inefficiencies we have found while not overpaying for assets. In this space, we have acquired at a 6.9% cap and are solving for 10% to 11% unlevered returns. Our average purchase price is about $321 a foot. It allows us to lease it the Phillips Edison & Company, Inc. way, which we do exceptionally well with our operating results and the team on the ground. Operator: Your next question comes from the line of Juan Carlos Sanabria with BMO Capital Markets. Please go ahead. Juan Carlos Sanabria: Thanks. Only my best friends call me Juan, if that is okay. Just curious—going back to Caitlin's question on new supply—are there any pockets of the country where you are seeing new greenfield development? Maybe pockets of the Sunbelt that you would call out or are watching? Jeffrey S. Edison: Overall across the country, it is a really small amount. There are specific cases where grocery stores are looking for specific locations where you are seeing some growth. You are seeing Publix grow north from their existing platform; you are seeing H-E-B add additional stores in Texas. But they are specific and very small. Part of our business is to make sure that we know what is going on in every market we are in. Even if there is one being built in a specific market near one of our centers, if it is a competitor we have to beat it—we have to figure out how we are going to win. We are just not seeing much at all in our markets. I think that is creating the operating environment we have where there is a ton of opportunity to be aggressive on leasing, reach very high occupancy levels, and drive rents. That is what we are proving out with our performance. Operator: Your next question comes from the line of Analyst with Barclays. Please go ahead. Analyst: Thank you so much for taking the question. I noticed that you maintained $5 million to $8 million of collectibility adjustments guidance. Could you elaborate on the specific categories or tenant types driving that assumption today? Have you seen any early signs of stress in first quarter trends for 2026? Jeffrey S. Edison: Thank you for the question. John, do you want to take that? John P. Caulfield: Good morning. One of the advantages of our business model is the diversification that we have across our neighbors. The components are pretty consistent with what they have been, but the overall volume is a little lower. For us, when people ask about a watch list and look for national names, it is actually at every center. Especially when you are as highly occupied as we are, we are always looking for new leasing opportunities or places to get in there, and for that we have one in every center. The absolute count of neighbors that we are focused on actually declined this quarter compared to last. Considering the volumes of acquisition that we are adding every quarter, to see that number broadly come down was a very positive sign. I am still the cautious one of the group, but we feel really good about the year while still leaving those pieces. As Bob was talking about categories earlier, there is not any one particular space. We continue to see great demand and strong performance at each one of our assets. Operator: Your next question comes from the line of Paulina Alejandra Rojas-Schmidt with Green Street. Please go ahead. Paulina Alejandra Rojas-Schmidt: Good morning. You have indicated that your health ratio, or OCR, for your inline tenants sits at about 10%, and you have mentioned that you see room to gradually push that up to 13%. Walk us through the thinking behind that—whether it is anchored on prior high watermarks or other benchmarks. What does a shift like that mean downstream for tenants on an EBITDA basis for the average inline tenant? Jeffrey S. Edison: Great and very complicated question, Paulina. The 10% is a generic number because each specific retail category has a different health ratio that is healthy for them. We are using broad numbers here, but it is very specific to the type of retailer what a healthy number is. We also get the advantage of inflation and the growth in sales, which allows us to keep it at 10% while we are growing rents because of the growth in sales. Bob, would you like to talk a little about your views on the health ratio and how we are doing on the leasing side? Robert F. Myers: Absolutely. Most importantly, we want to make sure that our neighbors are profitable. We have seen a lot of success over the last two or three years with not only our retention rates, but also renewal increases being 18% to 21%. The visibility that we have, with 125 renewals out for signature, shows no slowdown or cracks. We have been able to hold that 9.5% to 10% health ratio pretty static over the last three years while maintaining those renewal spreads. I do think there is room to move to 10% to 13% or 14% over time, very merchant-specific, over the next several years. Another helpful factor is that we are starting with ABRs on average of our inline neighbors at $27. It is a lot different increasing rents at $50 than it is at $27. There is a combination of a lot of things that goes into that health ratio, but bottom line for us, it is about keeping our neighbors healthy, profitable, and being a good partner. Operator: Your next question comes from the line of Michael William Mueller with JPMorgan. Please go ahead. Michael William Mueller: Hi. Another quick JV question. How much are the investments being made in those programs going to be influenced by your equity cost—particularly if your equity cost improves a lot, where on-balance sheet looks much more attractive? Jeffrey S. Edison: Our JV strategy is primarily to expand what we can buy. We are buying things in our JVs that we would not buy on the balance sheet, and that is an important part of why we set this up. If our cost of equity changed dramatically, we would still be buying the same stuff with these particular JVs because that is the level of ownership we want in those properties, and we think we can add value there. We also get a fee structure that is complementary. For us, it is expanding where we can buy and what we can buy without putting the full 100% exposure from the balance sheet. That has worked out very well historically, and it is working out great in the JVs we have going right now. Operator: This concludes our question and answer session. I will now turn the conference back over to Jeffrey S. Edison for some closing remarks. Jeff? Jeffrey S. Edison: In closing, I want to reiterate how pleased we are with our first quarter results. Our grocery-anchored neighborhood shopping centers are driving solid foot traffic and market-leading pricing power. We continue to see a strong operating environment. While the macro environment remains volatile, Phillips Edison & Company, Inc. is well positioned to perform through cycles. We offer both stability and steady growth. Phillips Edison & Company, Inc.'s disciplined execution and operating strength reinforce our increased guidance for core FFO per share growth. With our shares trading at a discount to our long-term growth profile, we believe Phillips Edison & Company, Inc. represents an attractive opportunity to invest in a leading operator that can deliver mid to high single-digit annual earnings growth. The Phillips Edison & Company, Inc. team remains focused on executing our strategy and generating stable long-term value. We will continue to drive more alpha with less beta. I would like to thank our Phillips Edison & Company, Inc. associates for their continued hard work and also thank our shareholders and neighbors for their continued support. Thanks for being on the call today. Have a great day. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for joining, and you may now disconnect. Before you buy stock in Phillips Edison, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Phillips Edison wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $500,572!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,900!* Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 24, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Phillips Edison (PECO) Q1 2026 Earnings Transcript was originally published by The Motley Fool