Phillips Edison & Company (PECO) Investor presentation summary

Portfolio overview and strategy

• Operates 330 grocery-anchored neighborhood centers with 37.4M sq. ft. and 97% occupancy, focusing on locations with top grocers and high necessity-based tenant mix.

• 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 markets with strong demographics, including a 3-mile median household income of $102K and above-average population growth.

• 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 89.6% retention rate as of June 2026.

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

• Internal growth driven by contractual rent bumps, occupancy runway, and development/redevelopment projects, supporting 3–4% same-center NOI growth.

• 21 development/redevelopment projects under construction with $82M investment and 9–12% estimated yields.

• Portfolio recycling through disciplined acquisitions ($460M in 2026) and dispositions ($174M in 2026) enhances quality and growth profile.

Financial strength and market positioning

• Total enterprise value of $8.4B, 3.1% dividend yield, and investment-grade balance sheet with net debt to EBITDAre of 5.1x.

• 88% of assets are unencumbered, $857M in liquidity, and 96% of debt is fixed rate with a 4.4% weighted average interest rate.

• Ranks #2 among peers in Nareit FFO per share growth and same-center NOI growth, and #1 in renewal lease spreads and management ownership.

• Among the lowest-levered shopping center REITs and a leading landlord for Kroger and Publix.