Phillips Edison & Company (PECO) Q3 2024 earnings summary

Executive summary

• Reported strong Q3 2024 performance with 97.8% leased occupancy, 4.4 years average remaining lease term, and 290 properties across 31 states.

• Nareit FFO for Q3 2024 was $81.6 million ($0.60/share), up 12.5% year-over-year; Core FFO was $84.4 million ($0.62/share), up 9.6% year-over-year.

• Rental income grew 8.2% year-over-year for Q3 2024, driven by same-center rent growth and acquisitions.

• Increased monthly distribution rate by 5.1% to $0.1025 per share in September 2024.

• Portfolio is anchored by top grocers in favorable suburban markets, supporting steady long-term earnings growth.

Financial highlights

• Q3 2024 revenues rose to $165.5 million, up 8.6% from Q3 2023; net income attributable to stockholders was $11.6 million ($0.09/share), down 5.3% year-over-year.

• Same-center NOI for Q3 2024 grew 3.2% year-over-year to $107.7 million.

• Core FFO per diluted share was $0.62 for Q3 2024 and $1.80 for the nine months, both up from prior year periods.

• Adjusted EBITDAre for Q3 2024 was $109.0 million, up 10.6% year-over-year.

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

Outlook and guidance

• Updated 2024 Nareit FFO guidance to $2.35–$2.39/share; Core FFO guidance to $2.40–$2.44/share.

• Raised 2024 same-center NOI growth guidance to 3.50%–4.00% (midpoint 3.75%).

• Increased full-year 2024 acquisitions guidance to $275–$325 million.

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

• Management expects current liquidity to be sufficient for both short- and long-term cash demands.