Phillips Edison & Company (PECO) Q3 2024 earnings summary

Executive summary

• Delivered strong Q3 2024 growth with same-center NOI up 3.2%, NAREIT FFO per share up 12.5%, and core FFO per share up 9.6% year-over-year.

• Portfolio consists of 290 high-quality, grocery-anchored neighborhood shopping centers across 31 states, with 97.8% leased occupancy and a 92% retention rate.

• Rental income grew 8.2% year-over-year for Q3 2024, supported by acquisitions and robust leasing spreads.

• Management remains optimistic about continued growth, supported by high occupancy, strong tenant retention, and market-leading returns.

• Issued $700 million in senior notes in 2024 to refinance debt and extend maturities, supporting liquidity and growth.

Financial highlights

• Q3 2024 NAREIT FFO was $81.6 million ($0.60 per diluted share), up from $72.5 million in Q3 2023; Core FFO was $84.4 million ($0.62 per diluted share), up from $77.0 million.

• Q3 2024 net income attributable to stockholders was $11.6 million ($0.09 per diluted share), down from $12.2 million ($0.10 per diluted share) in Q3 2023.

• Same-center NOI for Q3 2024 was $107.7 million, up from $104.4 million in Q3 2023.

• Adjusted EBITDAre for Q3 2024 was $109.0 million, up from $98.5 million in Q3 2023.

• Net debt as of September 30, 2024 was $2.16 billion, with total enterprise value at $7.29 billion.

Outlook and guidance

• 2024 NAREIT FFO/share guidance is $2.35–$2.39; Core FFO/share guidance is $2.40–$2.44, reflecting 5.3% and 3.4% growth at midpoints.

• 2024 same-center NOI growth guidance is 3.5%–4.0% (midpoint 3.75%).

• Net income/share guidance for 2024 is $0.48–$0.50.

• Full-year 2024 acquisitions guidance increased to $275–$325 million.

• Management expects current liquidity to be sufficient for all cash demands, including acquisitions and distributions.