Phillips Edison & Company (PECO) Q4 2025 earnings summary

Executive summary

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

• Net income attributable to stockholders was $111.3 million ($0.89 per diluted share) for 2025, significantly higher year-over-year.

• Maintained high occupancy rates: portfolio at 97.3%, anchor at 98.7%, and inline at a record 95.1%.

• 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.

Financial highlights

• Fourth quarter Nareit FFO: $88.8 million ($0.64/share); Core FFO: $91.1 million ($0.66/share); full year Nareit FFO: $353.1 million ($2.54/share), Core FFO: $360.7 million ($2.60/share).

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

• Executed 1,026 leases totaling 6 million sq ft in 2025, with strong rent spreads: 34.3% for new leases and 20% for renewals in Q4.

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

• 2025 development/redevelopment delivered 23 stabilized projects, 402K sq. ft., and $6.8M incremental NOI.

Outlook and guidance

• 2026 guidance: Nareit FFO/share $2.65–$2.71 (5.5% growth at midpoint), Core FFO/share $2.71–$2.77 (5.4% growth at midpoint), net income per share $0.74–$0.77.

• Same-center NOI growth projected at 3–4% for 2026.

• Gross acquisitions targeted at $400–$500 million; dispositions planned at $100–$200 million.

• Long-term expectation of 3–4% same-center NOI growth and mid to high single-digit Core FFO/share growth.