Highlights for the Third Quarter and Subsequent
Reported Nareit FFO of $89.3 million, or $0.64 per diluted share
Reported Core FFO of $90.6 million, or $0.65 per diluted share
The increased midpoint of full year 2025 Nareit FFO guidance represents 6.8% year-over-year growth
The increased midpoint of full year 2025 Core FFO guidance represents 6.6% year-over-year growth
The midpoint of full year 2025 same-center NOI guidance represents 3.35% year-over-year growth
Reported strong leased portfolio occupancy of 97.6% and same-center leased portfolio occupancy of 97.9%
Reported strong leased inline occupancy of 94.8% and same-center leased inline occupancy of 95.0%
Total portfolio retention remained strong at 93.9% in the quarter
Executed portfolio comparable renewal leases at a record-high rent spread of 23.2% and inline comparable renewal leases at a record-high rent spread of 23.4% during the quarter
Executed portfolio comparable new leases and inline comparable new leases at a rent spread of 24.5% during the quarter
Acquired $21.9 million in assets at PECO's total prorated share, which included two shopping centers and two land parcels
Sold $9.2 million in assets at PECO's total prorated share, which included one shopping center and one land parcel
Subsequent to quarter end, acquired $74.2 million in assets, which included two shopping centers and land for future development
Full year 2025 gross acquisitions guidance reflects a range of $350 million to $450 million
Management Commentary
Jeff Edison, Chairman and Chief Executive Officer of PECO stated: "PECO continues to drive solid earnings growth, which is reflected in third quarter 2025 Nareit FFO and Core FFO per share growth of 6.7% and 4.8%, respectively. Retailer demand remains strong for grocery-anchored, neighborhood shopping centers, and this momentum is clear in our operating results again this quarter. We continue to capture a meaningful portion of the transaction market with $376 million of acquisitions completed to date at our share. Operating from a position of strength and stability, PECO is well-positioned to continue to deliver solid earnings growth."
Financial Results
Net Income
Third quarter 2025 net income attributable to stockholders totaled $24.7 million, or $0.20 per diluted share, compared to net income of $11.6 million, or $0.09 per diluted share, during the third quarter of 2024.
For the nine months ended September 30, 2025, net income attributable to stockholders totaled $63.8 million, or $0.51 per diluted share, compared to net income of $44.5 million, or $0.36 per diluted share, for the same period in 2024.
Nareit FFO
Third quarter 2025 funds from operations attributable to stockholders and operating partnership ("OP") unit holders as defined by Nareit ("Nareit FFO") increased 9.4% to $89.3 million, or $0.64 per diluted share, compared to $81.6 million, or $0.60 per diluted share, during the third quarter of 2024.
For the nine months ended September 30, 2025, Nareit FFO increased 10.1% to $264.3 million, or $1.90 per diluted share, compared to $240.0 million, or $1.76 per diluted share, during the same period a year ago.
Core FFO
Third quarter 2025 core funds from operations attributable to stockholders and OP unit holders ("Core FFO") increased 7.3% to $90.6 million, or $0.65 per diluted share, compared to $84.4 million, or $0.62 per diluted share, during the third quarter of 2024.
For the nine months ended September 30, 2025, Core FFO increased 9.5% to $269.5 million, or $1.94 per diluted share, compared to $246.0 million, or $1.80 per diluted share, for the same period in 2024.
Same-Center NOI
Third quarter 2025 same-center net operating income ("NOI") increased 3.3% to $115.5 million, compared to $111.8 million during the third quarter of 2024.
For the nine months ended September 30, 2025, same-center NOI increased 3.8% to $344.8 million, compared to $332.1 million during the same period a year ago.
Portfolio Overview
Portfolio Statistics
As of September 30, 2025, PECO's wholly-owned portfolio consisted of 303 properties, totaling approximately 34.0 million square feet, located in 31 states. This compared to 290 properties, totaling approximately 32.9 million square feet, located in 31 states as of September 30, 2024.
Leased portfolio occupancy was 97.6% as of September 30, 2025, compared to 97.8% as of September 30, 2024. Same-center leased portfolio occupancy was 97.9% as of September 30, 2025, compared to 97.8% as of September 30, 2024.
Leased anchor occupancy was 99.2% as of September 30, 2025, compared to 99.4% as of September 30, 2024. Same-center leased anchor occupancy was 99.4% as of September 30, 2025, compared to 99.3% as of September 30, 2024.
Leased inline occupancy was 94.8% as of September 30, 2025, compared to 95.0% as of September 30, 2024. Same-center leased inline occupancy was at 95.0% as of September 30, 2025 and 2024.
Leasing Activity
During the third quarter of 2025, 270 leases were executed totaling approximately 1.7 million square feet. This compared to 268 leases executed totaling approximately 1.6 million square feet during the third quarter of 2024.
For the nine months ended September 30, 2025, 780 leases were executed totaling approximately 4.6 million square feet. This compared to 790 leases executed totaling approximately 4.6 million square feet during the same period in 2024.
During the third quarter of 2025, comparable rent spreads, which represent the percentage increase of new or renewal leases to the expiring lease of a unit that was occupied within the past twelve months, were 23.2% for renewal leases, 24.5% for new leases and 23.5% combined.
Comparable rent spreads during the nine months ended September 30, 2025 were 20.9% for renewal leases, 29.5% for new leases and 22.9% combined.
Transaction Activity - Wholly-Owned
During the third quarter of 2025, the Company acquired $14.3 million in assets, which included one shopping center and two land parcels. The Company expects to drive value in these assets through occupancy increases and rent growth, as well as potential future development of ground-up outparcel retail spaces. During the same period, the Company sold $9.2 million in assets, which included one shopping center and one land parcel. The third quarter 2025 acquisitions consisted of:
Shops at Butler Crossing, a 56,910 square foot shopping center located in an Atlanta, Georgia suburb.
During the nine months ended September 30, 2025, the Company acquired $280.8 million in assets, which included eleven shopping centers and two land parcels. During the same period, $34.1 million in assets were sold, which included two shopping centers and one land parcel.
Subsequent to quarter end, the Company acquired $74.2 million in assets, which included two shopping centers and land for future development. During the same period, the Company sold $9.6 million in assets, which included one shopping center. Acquisitions completed included:
Bel Air Town Center, a 77,817 square foot shopping center located in a Baltimore, Maryland suburb.
Surprise Lake Square, a 132,616 square foot shopping center anchored by Safeway located in a Seattle, Washington suburb.
Transaction Activity - Joint Ventures
During the third quarter of 2025, the Company acquired $7.6 million in assets at PECO's total prorated share, which included Village at Sandhill, a grocery-anchored shopping center located in a Columbia, South Carolina suburb, through Neighborhood Grocery Catalyst Fund LLC.
During the nine months ended September 30, 2025, the Company acquired $20.9 million in assets at PECO's total prorated share, which included three shopping centers through its joint ventures. During the same period, the Company sold $0.1 million in assets at PECO's total prorated share, which included one outparcel, through Grocery Retail Partners I LLC.
Balance Sheet Highlights
As of September 30, 2025, the Company had approximately $977 million of total liquidity, comprised of $5.8 million of cash, cash equivalents and restricted cash, plus $970.8 million of borrowing capacity available on its $1.0 billion revolving credit facility.
As of September 30, 2025, the Company's trailing twelve month net debt to annualized adjusted EBITDAre was 5.3x. This compared to 5.0x at December 31, 2024. As of September 30, 2025, the Company's outstanding debt had a weighted-average interest rate of 4.4% and a weighted-average maturity of 5.4 years when including all extension options, and 95.3% of the Company's total debt was fixed-rate debt.
2025 Guidance
PECO increased its 2025 earnings guidance, as summarized in the table below, which is based upon the Company's current view of existing market conditions and assumptions for the year ending December 31, 2025. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under "Forward-Looking Statements" below.
(in thousands, except per share amounts)
Q3 2025 YTD
Updated Full Year2025 Guidance
Previous Full Year2025 Guidance
Net income per share
$0.51
$0.62 - $0.65
$0.61 - $0.64
Nareit FFO per share
$1.90
$2.51 - $2.55
$2.50 - $2.54
Core FFO per share
$1.94
$2.57 - $2.61
$2.55 - $2.60
Same-Center NOI growth
3.8%
3.10% - 3.60%
3.10% - 3.60%
Portfolio Activity:
Acquisitions, gross(1)
$301,647
$350,000 - $450,000
$350,000 - $450,000
Other:
Interest expense, net
$81,935
$108,000 - $116,000
$110,000 - $120,000
G&A expense
$37,760
$48,000 - $52,000
$46,000 - $51,000
Non-cash revenue items(2)
$14,118
$19,000 - $21,000
$19,000 - $21,000
Adjustments for collectibility
$4,101
$5,000 - $7,000
$4,500 - $7,500
(1) Includes the prorated portion owned through the Company's unconsolidated joint ventures.(2) Represents straight-line rental income and net amortization of above- and below-market leases.
The Company does not provide a reconciliation for same-center NOI estimates on a forward-looking basis because it is unable to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to the Company's results without unreasonable effort.
The following table provides a reconciliation of the range of the Company's 2025 estimated net income to estimated Nareit FFO and Core FFO:
(Unaudited)
Low End
High End
Net income per common share
$
0.62
$
0.65
Depreciation and amortization of real estate assets
1.93
1.94
Gain on disposal of property, net
(0.07
)
(0.07
)
Adjustments related to unconsolidated joint ventures
0.03
0.03
Nareit FFO per common share
$
2.51
$
2.55
Depreciation and amortization of corporate assets
0.01
0.01
Transaction costs and other
0.05
0.05
Core FFO per common share
$
2.57
$
2.61
Conference Call and Webcast Details
PECO will host a conference call and webcast on Friday, October 24, 2025 at 12:00 p.m. Eastern Time to discuss third quarter 2025 results and provide further business updates. Chairman and Chief Executive Officer Jeff Edison, President Bob Myers and Chief Financial Officer John Caulfield will host the conference call and webcast. Dial-in and webcast information is below.
Third Quarter 2025 Earnings Conference Call and Webcast Details:
Date: Friday, October 24, 2025Time: 12:00 p.m. ETToll-Free Dial-In Number: (800) 715-9871International Dial-In Number: (646) 307-1963Conference ID: 4551083Webcast: Third Quarter 2025 Webcast Link
Replay:
An audio replay will be available approximately one hour after the conclusion of the conference call using the webcast link above. The replay will be archived on PECO's Investor Relations website under Events & Presentations.
For more information on the Company's financial results, please refer to the Company's Form 10-Q for the quarter ended September 30, 2025.
Connect with PECO
For additional information, please visit https://www.phillipsedison.com/
Follow PECO on:
X at https://x.com/PhillipsEdison
Facebook at https://www.facebook.com/phillipsedison.co
Instagram at https://www.instagram.com/phillips.edison/; and
Find PECO on LinkedIn at https://www.linkedin.com/company/phillipsedison&company
About Phillips Edison & Company
Phillips Edison & Company, Inc. ("PECO") is one of the nation's largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO's centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO's top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of September 30, 2025, PECO managed 328 shopping centers, including 303 wholly-owned centers comprising 34.0 million square feet across 31 states and 25 shopping centers owned in three institutional joint ventures. PECO is focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.
PECO uses, and intends to continue to use, its Investors website, which can be found at https://investors.phillipsedison.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.
PHILLIPS EDISON & COMPANY, INC.CONSOLIDATED BALANCE SHEETSAS OF SEPTEMBER 30, 2025 AND DECEMBER 31, 2024 (Condensed and Unaudited)(In thousands, except per share amounts)
September 30, 2025
December 31, 2024
ASSETS
Investment in real estate:
Land and improvements
$
1,952,657
$
1,867,227
Building and improvements
4,293,614
4,085,713
In-place lease assets
540,571
523,209
Above-market lease assets
77,587
76,359
Total investment in real estate assets
6,864,429
6,552,508
Accumulated depreciation and amortization
(1,928,005
)
(1,771,052
)
Net investment in real estate assets
4,936,424
4,781,456
Investment in unconsolidated joint ventures
36,594
31,724
Total investment in real estate assets, net
4,973,018
4,813,180
Cash and cash equivalents
4,076
4,881
Restricted cash
1,735
3,768
Goodwill
29,066
29,066
Other assets, net
246,209
195,328
Real estate investment and other assets held for sale
8,250
—
Total assets
$
5,262,354
$
5,046,223
LIABILITIES AND EQUITY
Liabilities:
Debt obligations, net
$
2,385,326
$
2,109,543
Below-market lease liabilities, net
117,316
116,096
Accounts payable and other liabilities
156,805
163,692
Deferred income
22,722
22,907
Liabilities of real estate investment held for sale
461
—
Total liabilities
2,682,630
2,412,238
Equity:
Preferred stock, $0.01 par value per share, 10,000 shares authorized, zero shares issued and outstanding at September 30, 2025 and December 31, 2024
—
—
Common stock, $0.01 par value per share, 1,000,000 shares authorized, 125,710 and 125,120 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively
1,257
1,251
Additional paid-in capital
3,661,270
3,646,801
Accumulated other comprehensive income
980
4,305
Accumulated deficit
(1,385,714
)
(1,332,435
)
Total stockholders' equity
2,277,793
2,319,922
Noncontrolling interests
301,931
314,063
Total equity
2,579,724
2,633,985
Total liabilities and equity
$
5,262,354
$
5,046,223
PHILLIPS EDISON & COMPANY, INC.CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (Condensed and Unaudited)(In thousands, except per share amounts)
Three Months EndedSeptember 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Revenues:
Rental income
$
178,293
$
161,780
$
525,943
$
478,134
Fees and management income
3,274
2,856
9,373
7,943
Other property income
1,102
891
3,417
2,267
Total revenues
182,669
