Phillips Edison & Company (PECO) Investor presentation summary

Portfolio overview and strategy

• Operates 330 grocery-anchored neighborhood centers with 37.4M sq. ft. and 97% leased occupancy, focusing on markets where top grocers are most profitable.

• 94% of annualized base rent (ABR) comes from grocery-anchored centers, with 83% from centers anchored by the #1 or #2 grocer in each market.

• Portfolio is concentrated in high-income, high-growth areas, with a 3-mile median household income of $102K, 16% above the U.S. average.

• Everyday Retail™ initiative targets essential retail centers, aiming to scale to $700M–$1B over five years, complementing the core grocery-anchored business.

• Management and board own approximately 8% of the company, aligning interests with shareholders.

Operational performance and growth drivers

• High occupancy (97.3%) and strong leasing momentum, with 304 leases executed and a portfolio retention rate of 89.6%.

• Comparable renewal leasing spreads at 21.2% and new leasing spreads at 33.7% for Q2 2026, reflecting pricing power.

• Internal growth driven by contractual rent bumps, occupancy runway, and development/redevelopment projects.

• Long-term same-center NOI growth targeted at 3–4% annually.

• Core FFO per share growth guidance for 2026 is 6.2% at the midpoint.

Financial strength and capital allocation

• Total enterprise value of $8.4B and significant liquidity position of $857M.

• Net debt to annualized adjusted EBITDAre at 5.1x, with 88% of assets unencumbered and 96% of debt at fixed rates.

• Investment-grade credit ratings (BBB/Baa2) with a positive outlook from Moody’s.

• 2026 acquisition guidance increased to $500M–$600M, with $277.9M completed YTD and a strong pipeline.

• Portfolio recycling through disciplined dispositions, with $167.1M in asset sales YTD 2026.