Phillips Edison & Company (PECO) Citi’s Miami Global Property CEO Conference 2026 summary

Business strategy and portfolio overview

• Focus on necessity-based, grocery-anchored neighborhood shopping centers, with 95% of ABR from such assets and 83% from centers anchored by the #1 or #2 grocer in each market.

• Portfolio includes 324–330 centers across 31 states, with high occupancy rates: 97%–97.3% overall, 95.1% inline, and 98.7% anchor occupancy.

• 70% of ABR comes from necessity-based goods and services, supporting resilience and stable cash flows.

• Strong demographic alignment, with average 3-mile median household income 15% above U.S. average and above-average population growth in core markets.

• Acquisition strategy is disciplined, targeting assets that fit strict return thresholds and leveraging market fragmentation.

Growth, acquisitions, and capital allocation

• Targeting $400–$500 million in acquisitions for the year, with $300 million achievable without new equity; 2025 acquisitions totaled $395.5M, with early 2026 acquisitions at $77M.

• Acquisition pipeline is strong, with a 70% increase in opportunities year-over-year and $150–$200 million in the pipeline.

• Grocery-anchored assets are acquired at a 9% unlevered IRR, Everyday Retail at 10%, with cap rates averaging 6.6% in 2023.

• Dispositions focus on stabilized or lower-growth assets, with $145 million sold last year and $100–$200 million targeted for this year; 2025 dispositions totaled $145.4M.

• Everyday Retail segment offers significant growth potential, with plans to invest $1 billion over 3–5 years.

Financial performance and risk management

• 2026 guidance projects Nareit FFO per share of $2.65–$2.71, representing 5.5% growth at midpoint; Core FFO per share of $2.71–$2.77, up 5.4%.

• Same-store/center NOI growth guidance is 3%–4% annually, with 4% projected for next year and for 2026.

• Maintains a strong balance sheet with $925M in liquidity, net debt to adjusted EBITDAre of 5.2x, and 99% fixed-rate debt; targets 5%–5.5% debt-to-EBITDA.

• Dividend yield stands at 3.7% as of year-end 2025, with a 3%–4% dividend target.

• Minimal tenant concentration risk, with only 8 tenants representing more than 1% of ABR and largest non-grocery tenant at 1.3% of rent.