Phillips Edison & Company (PECO) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Investment highlights and strategy

• Focus on necessity-based, grocery-anchored retail centers, providing defensive stability and consistent traffic flow.

• Portfolio includes 294–300 centers across 31 states, with 96% of rents from grocery-anchored centers and 84% of ABR from top grocers.

• Emphasis on external growth through $350M–$450M in annual acquisitions and internal growth via re-merchandising and leasing spreads.

• Targeting mid-to-high single-digit FFO per share growth annually, with a 3%-4% dividend for a 10% total return.

• Maintains a disciplined acquisition approach, underwriting to a 9% unlevered IRR and exceeding that in recent years.

Portfolio performance and growth drivers

• Long-term same-center NOI growth targeted at 3%-4%, with 2024 guidance at 3%-3.5%.

• Embedded rent bumps and strong leasing spreads contribute 110-150 basis points to growth.

• $40-$50 million in development and redevelopment opportunities add 100-125 basis points.

• Delivered 5.7% Nareit FFO/share growth and 5.1% Core FFO/share growth at 2025 guidance midpoint.

• Outperformed peers in Same-Center NOI growth and AFFO CAGR over the last five years.

Acquisition and capital strategy

• $150 million acquisition backlog and increased market product provide strong visibility toward $400 million target.

• Targeting $350M–$450M in annual acquisitions, with over $150M under contract or negotiation for early 2025.

• Average acquisition size is $35 million, with competition rising but more opportunities available.

• Strong access to capital, with $948M in liquidity and recent $700M bond offerings closed in 2024.

• Unanchored and shadow-anchored assets will remain less than 10% of the portfolio.