Phillips Edison & Company (PECO) Q4 2025 earnings summary

Executive summary

• Reported strong 2025 results with Nareit FFO per share growth of 7.2%, Core FFO per share up 7%, and same-center NOI growth of 3.8% year-over-year.

• Operates 324 grocery-anchored neighborhood centers across 31 states, with 95% of ABR from such centers and 97% portfolio occupancy as of December 31, 2025.

• Focuses on necessity-based retail, with 70% of ABR from essential goods and services and 83% from #1 or #2 grocers by sales in each market.

• Portfolio occupancy ended 2025 at 97.3%, with anchor occupancy at 98.7% and inline occupancy at a record 95.1%.

• Retention rate remained high at 93%, supporting strong economics and low tenant improvement costs.

Financial highlights

• Fourth quarter Nareit FFO: $88.8 million ($0.64 per diluted share); Core FFO: $91.1 million ($0.66 per diluted share).

• 2025 acquisitions totaled $395.5 million across 1.9 million sq. ft. at 92.5% occupancy; 2025 dispositions totaled $145.4 million across 947K sq. ft.

• Net debt to trailing 12-month adjusted EBITDA was 5.2x at year-end.

• Liquidity at year-end 2025 was approximately $925 million.

• Grocer sales PSF grew 4.9% in 2025 to $750, up 43% since 2019.

Outlook and guidance

• 2026 Nareit FFO per share guidance: $2.65–$2.71 (5.5% growth at midpoint); Core FFO per share: $2.71–$2.77 (5.4% growth at midpoint).

• Net income guidance for 2026: $0.74–$0.77 per share; same-center NOI growth projected at 3–4%.

• Targeting $400–$500 million in gross acquisitions and $100–$200 million in dispositions for 2026.

• 2026 guidance assumes no equity issuance; growth plans not dependent on equity capital markets.