Phillips Edison & Company (PECO) investor relations material

Executive summary

• Net income attributable to stockholders rose 15.5% year-over-year to $30.4 million for Q1 2026, with total revenues up 7.0% to $190.7 million, driven by higher rental income and acquisitions.

• NAREIT FFO per share increased 4.7% to $0.67, Core FFO per share rose 6.2% to $0.69, and same-center NOI grew 3.5% year-over-year.

• Portfolio consists of 326 grocery-anchored neighborhood centers, 97.1% leased, with necessity-based tenants driving resilience and steady growth.

• Leasing activity was robust, with 246 new and renewal leases executed, and comparable rent spreads of 36.2% for new leases and 21.2% for renewals.

• Strategic focus on necessity-based retail, with 74% of ABR from such tenants and strong presence in Sun Belt and high-growth U.S. cities.

Financial highlights

• Q1 2026 NAREIT FFO: $92.9M ($0.67/share); Core FFO: $96.4M ($0.69/share); net income per share: $0.24.

• Same-center NOI increased 3.5% year-over-year to $122.3 million, driven by higher rents and occupancy.

• Dividend yield of 3.5% as of March 31, 2026, based on an annualized rate of $1.30 per share.

• Rental income increased by $12.1 million (6.9%) year-over-year, with $6.4 million from same-center growth and $5.7 million from acquisitions.

• Interest expense increased by $4.1 million due to higher debt balances and a loss on extinguishment of debt.

Outlook and guidance

• Raised full-year 2026 NAREIT FFO guidance midpoint to $2.69 per share (up 5.9%), and Core FFO to $2.75 per share (up 5.8%).

• Full-year 2026 net income per share guidance: $0.79–$0.81.

• Same-center NOI growth for 2026 expected between 3.0% and 4.0%.

• Projected 2026 acquisitions between $400 million and $500 million.

• Long-term targets: 3%-4% same-center NOI growth and mid to high single-digit core FFO per share growth.