Phillips Edison & Company Announces Pricing of Offering of $350 Million Aggregate Principal Amount of 4.750% Senior Unsecured Notes Due 2033
Rhea-AI Summary
Phillips Edison & Company (Nasdaq: PECO) priced $350 million aggregate principal of 4.750% senior unsecured notes due March 15, 2033, at 99.920% of principal. The offering is expected to settle on February 26, 2026, and the notes will be unconditionally guaranteed by PECO.
The Operating Partnership intends to use net proceeds for general corporate purposes, including repayment of revolving credit borrowings, term loans, acquisition funding, capital expenditures, redevelopments and working capital; proceeds may be invested short-term pending use.
Positive
- $350 million debt proceeds available to fund corporate needs
- Use of proceeds targets debt repayment and property acquisitions
- Long-term tenor — maturity on March 15, 2033 provides financing stability
Negative
- New fixed interest cost at 4.750% increases long-term interest obligations
- Incremental leverage could raise debt levels until proceeds retire other borrowings
- Issued at slight discount (priced at 99.920%), modestly reducing net proceeds
Key Figures
Market Reality Check
Peers on Argus
PECO slipped 0.25% while key retail REIT peers showed mixed moves: MAC -1.22%, KRG -0.8%, SKT -0.73%, EPRT +0.64%, BRX +0.17%, suggesting a mostly stock-specific response to the debt offering.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | Dividend declaration | Positive | +0.9% | Announced monthly cash dividends of $0.1083 per share for three months. |
| Feb 05 | Earnings results | Positive | -0.8% | Reported 2025 results with higher net income and FFO plus 2026 guidance. |
| Jan 20 | Tax reporting info | Neutral | -0.3% | Provided 2025 Form 1099-DIV breakdown of distributions and return of capital. |
| Jan 06 | Earnings call invite | Neutral | +0.9% | Announced schedule and access details for Q4 and full-year 2025 call. |
| Dec 08 | JV acquisition | Positive | -1.1% | Disclosed JV acquisition of a 195,000-square-foot ALDI-anchored center. |
Recent positive fundamental updates (earnings, acquisitions) have twice coincided with modest next-day declines, while dividends and neutral notices often saw small gains or muted moves.
Over the past few months, PECO has focused on steady income and growth. A Feb 12 dividend declaration of $0.1083 per share for three months saw a modest gain. Earlier, on Feb 5, strong 2025 results with Nareit FFO per share of $2.54 and 3.8% same-center NOI growth were followed by a slight pullback. Tax reporting details in January and an earnings call invite in early February both produced limited moves. A December joint-venture acquisition announcement also aligned with a small decline, suggesting occasional profit-taking on positive news.
Market Pulse Summary
This announcement details a $350 million offering of 4.750% senior unsecured notes due 2033, guaranteed by PECO and aimed at general corporate purposes, including refinancing existing borrowings and funding property activity. In context of recent results showing higher Nareit FFO per share of $2.54 and substantial liquidity of $925.1M, the transaction fits an ongoing balance sheet and growth strategy. Investors may watch future leverage levels, interest costs, and deployment of proceeds into acquisitions or redevelopment.
Key Terms
senior unsecured notes financial
revolving credit facility financial
prospectus supplement regulatory
AI-generated analysis. Not financial advice.
CINCINNATI, Feb. 24, 2026 (GLOBE NEWSWIRE) -- Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO” or the “Company”), one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers, today announced that its operating partnership, Phillips Edison Grocery Center Operating Partnership I, L.P. (the “Operating Partnership”), has priced a public offering of
The Operating Partnership intends to use the net proceeds from the offering for general corporate purposes, including to repay borrowings under its revolving credit facility, to repay its term loans and other outstanding indebtedness, to acquire additional properties, for capital expenditures, expansion and working capital, to redevelop and/or improve properties and for other general corporate purposes. Pending application of the net proceeds from the offering for the foregoing purposes, such proceeds may initially be invested in short-term securities.
Wells Fargo Securities, BMO Capital Markets, BofA Securities, Mizuho, PNC Capital Markets LLC, Capital One Securities, Fifth Third Securities, J.P. Morgan, KeyBanc Capital Markets, Morgan Stanley, Regions Securities LLC and US Bancorp acted as joint book-running managers of the offering. Ramirez and Co., Inc. acted as co-manager of the offering.
The notes are being offered pursuant to an effective shelf registration statement filed by PECO and the Operating Partnership with the Securities and Exchange Commission (“SEC”). The offering will be made only by means of the prospectus supplement and accompanying prospectus. The preliminary prospectus supplement and accompanying prospectus related to the offering have been filed with the SEC and are available on the SEC’s website at http://www.sec.gov. A copy of the final prospectus supplement and accompanying prospectus related to the offering may be obtained, when available, by contacting: Wells Fargo Securities, LLC, Attention: WFS Customer Service, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, at 1-800-645-3751 or email: wfscustomerservice@wellsfargo.com; BMO Capital Markets Corp., Attention: IG Syndicate, 151 W 42nd Street, 9th Floor, New York, NY 10036, or by telephone at +1 (888) 200-0266; BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255, Attention: Prospectus Department or by email at dg.prospectus_requests@bofa.com or by telephone at 1-800-294-1322; Mizuho Securities USA LLC, Toll free: 1-866-271-7403; or PNC Capital Markets LLC, 300 Fifth Avenue, 10th Floor, Pittsburgh, PA 15222, toll-free at 1-855-881-0697 or by emailing pnccmprospectus@pnc.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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 December 31, 2025, PECO managed 324 shopping centers, including 297 wholly-owned centers comprising 33.5 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.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Phillips Edison & Company, Inc. (the “Company”) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Such forward-looking statements can generally be identified by the Company’s use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” “seek,” “objective,” “goal,” “strategy,” “plan,” “focus,” “priority,” “should,” “could,” “potential,” “possible,” “look forward,” “optimistic,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Such statements include, but are not limited to: (a) statements about the Company’s plans, strategies, initiatives, and prospects, including the use of the proceeds from the offering; (b) statements about the Company’s underwritten incremental yields; and (c) statements about the Company’s future results of operations, capital expenditures, and liquidity. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation: (i) the risk that the offering may not be completed on the proposed terms or at all; (ii) changes in national, regional, or local economic climates; (iii) local market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in the Company’s portfolio; (iv) vacancies, changes in market rental rates, and the need to periodically repair, renovate, and re-let space; (v) competition from other available shopping centers and the attractiveness of properties in the Company’s portfolio to its tenants; (vi) the financial stability of the Company’s tenants, including, without limitation, their ability to pay rent; (vii) the Company’s ability to pay down, refinance, restructure, or extend its indebtedness as it becomes due; (viii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors; (ix) potential liability for environmental matters; (x) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (xi) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax, and other considerations; (xii) changes in tax, real estate, environmental, and zoning laws; (xiii) information technology security breaches; (xiv) the Company’s corporate responsibility initiatives; (xv) loss of key executives; (xvi) the concentration of the Company’s portfolio in a limited number of industries, geographies, or investments; (xvii) the economic, political, and social impact of, and uncertainty relating to, pandemics or other health crises; (xviii) the Company’s ability to re-lease its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant; (xix) the loss or bankruptcy of the Company’s tenants; (xx) to the extent the Company is seeking to dispose of properties, the Company’s ability to do so at attractive prices or at all; and (xxi) the impact of tariffs and global trade disruptions on the Company, its tenants, and consumers, including the impact on inflation, supply chains, and consumer sentiment. Additional important factors that could cause actual results to differ are described in the filings made from time to time by the Company with the SEC and include the risk factors and other risks and uncertainties described in the Company’s 2025 Annual Report on Form 10-K, filed with the SEC on February 10, 2026, as updated from time to time in the Company’s periodic and/or current reports filed with the SEC, which are accessible on the SEC’s website at www.sec.gov. Therefore, such statements are not intended to be a guarantee of the Company’s performance in future periods. Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Investors
Kimberly Green, Head of Investor Relations
(513) 692-3399, kgreen@phillipsedison.com
FAQ
What did Phillips Edison & Company (PECO) announce about the $350 million notes on February 24, 2026?
How will PECO use the net proceeds from the $350 million offering (Nasdaq: PECO)?
What is the interest rate and maturity for the notes Phillips Edison priced (PECO)?
When will the $350 million offering by PECO settle and who guarantees the notes?
Does the $350 million notes offering affect PECO’s immediate cash management?
Who managed the public offering of PECO’s 4.750% notes due 2033?
