Highlights for the First Quarter and Subsequent
Reported Nareit FFO of $0.67 per diluted share, representing a 4.7% year-over-year increase
Reported Core FFO of $0.69 per diluted share, representing a 6.2% year-over-year increase
Increased same-center NOI year-over-year by 3.5%
The increased midpoint of full year 2026 Nareit FFO guidance represents 5.9% year-over-year growth
The increased midpoint of full year 2026 Core FFO guidance represents 5.8% year-over-year growth
Reported strong leased portfolio occupancy of 97.1% and same-center leased portfolio occupancy of 97.3%
Reported strong leased inline occupancy and same-center leased inline occupancy of 95.0%
Executed comparable portfolio renewal leases and comparable inline renewal leases at a rent spread of 21.2% during the quarter
Executed comparable portfolio new leases at a rent spread of 36.2% and comparable inline new leases at a record-high rent spread of 37.9% during the quarter
Acquired $125.5 million in assets, which included five shopping centers and land for future development
As previously announced, completed a public debt offering of $350 million aggregate principal amount of 4.750% senior notes due 2033
Subsequent to quarter end, acquired $59.1 million in assets at PECO's total prorated share, which included three shopping centers and one outparcel
Management Commentary
Jeff Edison, Chairman and Chief Executive Officer of PECO stated: "We are pleased to report another quarter of solid results, including Core FFO per share growth of 6.2%, reflecting the strength of our high-quality portfolio. Our grocery-anchored and necessity-based shopping centers are driving steady traffic and market-leading pricing power. While the macroeconomic environment remains uncertain, PECO is positioned to provide both stability and continued growth. Our disciplined execution and the continued strength of the operating environment give us confidence in our ability to increase guidance for Core FFO per share, which reflects year-over-year growth of 5.8% at the midpoint."
Financial Results
Net Income
First quarter 2026 net income attributable to stockholders totaled $30.4 million, or $0.24 per diluted share, compared to net income of $26.3 million, or $0.21 per diluted share, during the first quarter of 2025.
Nareit FFO
First quarter 2026 funds from operations attributable to stockholders and operating partnership ("OP") unit holders as defined by Nareit ("Nareit FFO") increased 4.4% to $92.9 million, or $0.67 per diluted share, compared to $89.0 million, or $0.64 per diluted share, during the first quarter of 2025.
Core FFO
First quarter 2026 core funds from operations attributable to stockholders and OP unit holders ("Core FFO") increased 6.2% to $96.4 million, or $0.69 per diluted share, compared to $90.8 million, or $0.65 per diluted share, during the first quarter of 2025.
Same-Center NOI
First quarter 2026 same-center net operating income ("NOI") increased 3.5% to $122.3 million, compared to $118.1 million during the first quarter of 2025.
Portfolio Overview
Portfolio Statistics
As of March 31, 2026, PECO's wholly-owned portfolio consisted of 299 properties, totaling approximately 33.7 million square feet, located in 31 states. This compared to 298 properties, totaling approximately 33.5 million square feet, located in 31 states as of March 31, 2025.
Leased portfolio occupancy was 97.1% as of March 31, 2026 and 2025. Same-center leased portfolio occupancy was 97.3% as of March 31, 2026, compared to 97.2% as of March 31, 2025.
Leased anchor occupancy was 98.4% as of March 31, 2026 and 2025. Same-center leased anchor occupancy was 98.6% as of March 31, 2026, compared to 98.5% as of March 31, 2025.
Leased inline occupancy was 95.0% as of March 31, 2026, compared to 94.6% as of March 31, 2025. Same-center leased inline occupancy was at 95.0% as of March 31, 2026, compared to 94.9% as of March 31, 2025.
Leasing Activity
During the first quarter of 2026, 246 leases were executed totaling approximately 1.6 million square feet. This compared to 234 leases executed totaling approximately 1.5 million square feet during the first quarter of 2025.
During the first quarter of 2026, comparable rent spreads, which represent the percentage increase of a lease to the expiring lease of a unit that was occupied within the past twelve months, were 21.2% for renewal leases, 36.2% for new leases and 24.3% combined.
Transaction Activity - Wholly-Owned
During the first quarter of 2026, the Company acquired $125.5 million in assets, which included five shopping centers and land for future development. 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.
The first quarter 2026 acquisitions included:
The Village at Indian Wells, a 105,177 square foot shopping center anchored by Sprouts located in a Palm Springs, California suburb.
Creekside Park Village, a 74,641 square foot shopping center anchored by H-E-B located in a Houston, Texas suburb.
Plaza West Covina, a 46,406 square foot Everyday Retail™ center located in a Los Angeles, California suburb.
Ridgeview Marketplace, a 20,410 square foot shopping center anchored by King Soopers located in a Colorado Springs, Colorado suburb.
The Shops at Hamilton Mill, a 43,518 square foot Everyday Retail™ center located in an Atlanta, Georgia suburb.
During the same period, the Company sold $22.3 million in assets, which included two shopping centers.
Subsequent to quarter end, the Company acquired $58.9 million in assets, which included:
Renton Highlands Shopping Center, a 54,008 square foot shopping center anchored by Safeway located in a Seattle, Washington suburb.
Prairieview Center, a 118,171 square foot shopping center anchored by Lunds & Byerlys located in a Minneapolis, Minnesota suburb.
Firethorne Plaza, a 29,986 square foot Everyday Retail™ center located in a Houston, Texas suburb.
Subsequent to quarter end, the Company sold one parcel of land for $6.7 million.
Transaction Activity - Joint Venture
Subsequent to quarter end, the Company, through Grocery Retail Partners I LLC, acquired one outparcel for future development for $0.2 million at PECO's total prorated share.
Balance Sheet Highlights
As of March 31, 2026, the Company had approximately $810.2 million of total liquidity, comprised of $22.4 million of cash, cash equivalents and restricted cash, plus $787.9 million of borrowing capacity available on its $1.0 billion revolving credit facility.
As of March 31, 2026, the Company's trailing twelve month net debt to annualized adjusted EBITDAre was 5.3x. This compared to 5.2x at December 31, 2025. As of March 31, 2026, the Company's outstanding debt had a weighted-average interest rate of 4.4% and a weighted-average maturity of 5.8 years when including all extension options, and 94.4% of the Company's total debt was fixed-rate debt, which includes PECO's total prorated share of debt for its joint ventures.
As previously announced, in February 2026, the Company completed a public debt offering of $350 million aggregate principal amount of 4.750% senior notes due 2033. The notes were priced at 99.920% of the principal amount and will mature in March 2033.
2026 Guidance
PECO updated its 2026 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, 2026. 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)
Q1 2026 YTD
Updated Full Year2026 Guidance
Previous Full Year2026 Guidance
Net income per share
$0.24
$0.79 - $0.81
$0.74 - $0.77
Nareit FFO per share
$0.67
$2.66 - $2.71
$2.65 - $2.71
Core FFO per share
$0.69
$2.72 - $2.78
$2.71 - $2.77
Same-Center NOI growth
3.5%
3.00% - 4.00%
3.00% - 4.00%
Portfolio Activity:
Acquisitions, gross(1)
$125,502
$400,000 - $500,000
$400,000 - $500,000
Other:
Interest expense, net
$29,772
$117,000 - $127,000
$117,000 - $127,000
G&A expense
$11,943
$49,000 - $53,000
$49,000 - $53,000
Non-cash revenue items(2)
$5,330
$19,000 - $21,000
$19,000 - $21,000
Adjustments for collectibility
$1,151
$5,000 - $8,000
$5,000 - $8,000
(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 2026 estimated net income to estimated Nareit FFO and Core FFO:
(Unaudited)
Low End
High End
Net income per common share
$
0.79
$
0.81
Depreciation and amortization of real estate assets
1.88
1.90
Gain on disposal of property, net
(0.05
)
(0.05
)
Adjustments related to unconsolidated joint ventures
0.04
0.05
Nareit FFO per common share
$
2.66
$
2.71
Depreciation and amortization of corporate assets
0.01
0.01
Loss on extinguishment or modification of debt and other, net
0.01
0.01
Transaction costs and other
0.04
0.05
Core FFO per common share
$
2.72
$
2.78
Conference Call and Webcast Details
PECO will host a conference call and webcast on Friday, April 24, 2026 at 12:00 p.m. Eastern Time to discuss first quarter 2026 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.
First Quarter 2026 Earnings Conference Call and Webcast Details:
Date: Friday, April 24, 2026Time: 12:00 p.m. ETToll-Free Dial-In Number: (800) 715-9871International Dial-In Number: (646) 307-1963Conference ID: 4551083Webcast: First Quarter 2026 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 March 31, 2026.
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 March 31, 2026, PECO managed 326 shopping centers, including 299 wholly-owned centers comprising 33.7 million square feet across 31 states and 27 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 MARCH 31, 2026 AND DECEMBER 31, 2025 (Condensed and Unaudited)(In thousands, except per share amounts)
March 31, 2026
December 31, 2025
ASSETS
Investment in real estate:
Land and improvements
$
1,992,077
$
1,963,735
Building and improvements
4,401,481
4,305,174
In-place lease assets
546,454
538,324
Above-market lease assets
78,786
77,551
Total investment in real estate assets
7,018,798
6,884,784
Accumulated depreciation and amortization
(2,009,942
)
(1,957,569
)
Net investment in real estate assets
5,008,856
4,927,215
Investment in unconsolidated joint ventures
43,008
42,561
Total investment in real estate assets, net
5,051,864
4,969,776
Cash and cash equivalents
3,141
3,544
Restricted cash
19,218
39,768
Goodwill
29,066
29,066
Other assets, net
247,695
244,284
Total assets
$
5,350,984
$
5,286,438
LIABILITIES AND EQUITY
Liabilities:
Debt obligations, net
$
2,489,365
$
2,375,328
Below-market lease liabilities, net
123,115
118,356
Accounts payable and other liabilities
135,294
180,332
Deferred income
23,245
23,044
Total liabilities
2,771,019
2,697,060
Equity:
Preferred stock, $0.01 par value per share, 10,000 shares authorized, zero shares issued and outstanding at March 31, 2026 and December 31, 2025
—
—
Common stock, $0.01 par value per share, 1,000,000 shares authorized, 125,966 and 125,788 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively
1,259
1,258
Additional paid-in capital
3,667,019
3,664,205
Accumulated other comprehensive income
416
358
Accumulated deficit
(1,389,918
)
