Phillips Edison & Company (PECO) BofA Securities 2025 Global Real Estate Conference summary

Opening remarks and business overview

• Leadership team highlighted consistent execution on strategy and strong platform performance.

• Portfolio targets 3%-4% NOI growth annually, translating to 6%-7% FFO per share growth this year and similar expectations for next year.

• Dividend was recently raised by almost 6%, with a 3.5% yield and 20.6% dividend per share growth since IPO.

• Portfolio consists of over 300 grocery-anchored shopping centers in 31 states, with high occupancy and retention rates, and 85% of ABR from #1 or #2 grocers.

• Strong presence in Sun Belt states and growing U.S. cities, with 50% of ABR from these regions.

Portfolio performance and leasing trends

• Overall occupancy is 97.4%, with anchor occupancy at 98.9% and inline at 94.8%.

• New leasing spreads are 30%-35%, renewal spreads about 20% with 3% CAGR, and retention rate is 94%.

• 70% of ABR is necessity-based, supporting portfolio stability and resilience.

• Leasing and renewal pipelines remain strong, with no slowdown in spreads or retention.

• Retail occupancy at all-time highs, with strong retailer demand and limited new construction starts.

Growth drivers and strategy

• NOI growth is driven by renewal and new leasing spreads, contractual rent bumps, and redevelopment/outparcel programs.

• Inline occupancy is expected to rise from 94.8% to 96.5% over 18-24 months.

• Contractual rent bumps currently at 110 bps, expected to reach 125-150 bps in 2-3 years.

• Redevelopment and outparcel investments add 100-120 bps of growth annually, with $50 million spent per year.

• Roadmap to growth includes occupancy increases, rent growth, redevelopment, and contractual rent bumps.