Phillips Edison & Company (PECO) Q4 2024 earnings summary

Executive summary

• Delivered market-leading operating results in 2024, with Core FFO per share growth of 3.8%-4% and high occupancy, driven by necessity-based, grocery-anchored centers across 294 properties and 33.3M square feet.

• Demonstrated resilience through economic cycles, with rapid recovery in occupancy and NOI after downturns.

• Strategic acquisitions exceeded guidance, totaling $305.7M in 2024, with a strong pipeline for 2025.

• Focused on disciplined capital allocation, low leverage, and match funding investments for long-term value creation.

• Strong, diversified tenant base with 98% leased occupancy and 84% of ABR from top grocers.

Financial highlights

• Q4 2024 NAREIT FFO: $83.8M ($0.61/share), up 8.9%-12% year-over-year; Core FFO: $85.8M ($0.62/share), up 6.9%-10.2%.

• Full-year NAREIT FFO: $323.8M ($2.37/share), up 8.1%; Core FFO: $331.8M ($2.43/share), up 6.8%.

• Same-center NOI growth: 6.5% in Q4, 3.8% for 2024.

• Net debt to adjusted EBITDA: 5.0x; liquidity of $948M; 93% fixed-rate debt; weighted average interest rate: 4.3%; average debt maturity: 5.8 years.

• Dividend per share increased 20.6% since IPO, with a current annualized dividend of $1.23 and a yield of 3.3%.

Outlook and guidance

• 2025 net income guidance: $0.54-$0.59/share; NAREIT FFO: $2.47-$2.54/share (up 5.7% at midpoint); Core FFO: $2.52-$2.59/share (up 5.1% at midpoint).

• 2025 same-center NOI growth projected at 3%-3.5%.

• Gross acquisition target: $350M-$450M; $150M+ already under contract for early 2025.