Phillips Edison & Company Reports Third Quarter 2025 Results and Increases Full Year Earnings Guidance
Phillips Edison & Company (Nasdaq: PECO) reported third quarter 2025 results and raised full‑year earnings guidance. Q3 Nareit FFO was $89.3M, $0.64 per diluted share (+9.4% YoY) and Core FFO was $90.6M, $0.65 per diluted share (+7.3% YoY). The company increased 2025 guidance midpoints, implying ~6.8% Nareit FFO and ~6.6% Core FFO year‑over‑year growth and a full‑year same‑center NOI midpoint of 3.35%.
Operating metrics remained strong: leased portfolio occupancy 97.6%, same‑center leased occupancy 97.9%, and inline leased occupancy 94.8%. PECO executed record rent spreads (renewals 23.2%, new 24.5%) and completed ~$376M of acquisitions to date at its share. Balance sheet liquidity was ~$977M and trailing net debt/EBITDAre was 5.3x.
Phillips Edison & Company (Nasdaq: PECO) ha riportato i risultati del terzo trimestre 2025 e ha alzato le previsioni di utile per l'intero anno. Q3 Nareit FFO è stato di 89,3 mln di dollari, 0,64 dollari per azione diluita (+9,4% su base annua) e Core FFO è stato di 90,6 mln di dollari, 0,65 dollari per azione diluita (+7,3% su base annua). L'azienda ha aumentato i midpoint delle previsioni 2025, implicando una crescita anno su anno di circa 6,8% per Nareit FFO e circa 6,6% per Core FFO e un middle-of-the-year NOI a parità di centro del 2025 di 3,35%.
Le metriche operative sono rimaste robuste: l'occupazione del portafoglio in locazione è stata 97,6%, l'occupazione in parità di centro è stata 97,9%, e l'occupazione in locazione inline è stata 94,8%. PECO ha registrato spread record sui canoni ( rinnovi 23,2%, nuovi 24,5%) e ha completato circa 376 milioni di dollari di acquisizioni ad oggi in linea con la propria struttura azionaria. La liquidità del bilancio era di circa 977 milioni di dollari e il rapporto tra debito netto e EBITDA trailing era di 5,3x.
Phillips Edison & Company (Nasdaq: PECO) informó los resultados del tercer trimestre de 2025 y elevó la guía de ganancias para el año completo. Q3 Nareit FFO fue de 89,3 millones de dólares, 0,64 por acción diluida (+9,4% interanual) y Core FFO fue de 90,6 millones de dólares, 0,65 por acción diluida (+7,3% interanual). La compañía aumentó los puntos medios de la guía 2025, implicando un crecimiento interanual de aproximadamente 6,8% en Nareit FFO y 6,6% en Core FFO, y un punto medio de NOI en mismo centro para el año completo de 3,35%.
Las métricas operativas se mantuvieron fuertes: ocupación de la cartera arrendada 97,6%, ocupación en el mismo centro 97,9%, y ocupación arrendada inline 94,8%. PECO registró spreads de alquiler récord (renovaciones 23,2%, nuevos 24,5%) y ha completado ~376 millones de USD en adquisiciones hasta la fecha en línea con su acción. La liquidez del balance fue de ~977 millones de USD y la deuda neta/EBITDA trailing fue de 5,3x.
Phillips Edison & Company (Nasdaq: PECO) 2025년 3분기 실적을 발표했고 연간 순이익 가이던스를 상향 조정했습니다. Q3 Nareit FFO는 8,930만 달러, 주당 희석이익 0.64달러(+전년 대비 9.4%)이며 Core FFO는 9,060만 달러, 주당 희석이익 0.65달러(+전년 대비 7.3%)였습니다. 회사는 2025년 가이던스의 중간치를 상향 조정했고, 연간 Nareit FFO가 약 6.8%, Core FFO가 약 6.6% 증가하는 것을 시사하며, 연간 같은 센터 NOI 중간값은 3.35%였습니다.
운영 지표는 여전히 양호했습니다: 임대 포트폴리오 점유율 97.6%, 같은 센터 점유율 97.9%, 임대 점유율 inline 94.8%. PECO는 기록적인 임대료 스프레드(갱신 23.2%, 신규 24.5%)를 기록했고 현재까지 주주 가치에 따라 약 3.76억 달러의 인수를 완료했습니다. 대차대조표의 유동성은 약 9.77억 달러였고, trailing 순부채/EBITDA는 5.3x였습니다.
Phillips Edison & Company (Nasdaq : PECO) a publié les résultats du troisième trimestre 2025 et a relevé les prévisions de bénéfices pour l'année complète. Q3 Nareit FFO a été de 89,3 M$, 0,64 $ par action diluée (+9,4 % en glissement annuel) et Core FFO a été de 90,6 M$, 0,65 $ par action diluée (+7,3 % en glissement annuel). La société a relevé les points médianes des prévisions 2025, impliquant une croissance annuelle d'environ 6,8 % pour Nareit FFO et 6,6 % pour Core FFO, et un point médian d'NOI sur le même centre pour l'année complète de 3,35 %.
Les indicateurs opérationnels sont restés solides : le taux d'occupation du portefeuille loué est de 97,6 %, l'occupation au même centre est de 97,9 %, et l'occupation locative en ligne est de 94,8 %. PECO a enregistré des marges de loyer records (renouvellements 23,2 %, nouveaux 24,5 %) et a réalisé environ 376 M$ d'acquisitions à ce jour en nombre d'actions. La liquidité du bilan était d'environ 977 M$ et le ratio dette nette/EBITDA trailing était de 5,3x.
Phillips Edison & Company (Nasdaq: PECO) berichtete die Ergebnisse des dritten Quartals 2025 und hob die Gewinnprognose für das Gesamtjahr an. Q3 Nareit FFO betrug 89,3 Mio. $, 0,64 $ pro verwässerter Aktie (+9,4 % YoY) und Core FFO betrug 90,6 Mio. $, 0,65 $ pro verwässerter Aktie (+7,3 % YoY). Das Unternehmen erhöhte die Zielgrößen für 2025, was ein YoY-Wachstum von ca. 6,8 % bei Nareit FFO und 6,6 % bei Core FFO impliziert, sowie einen volldimensionalen NOI-Mittelwert pro Center von 3,35 % für das Gesamtjahr.
Betriebskennzahlen blieben stark: Vermietungsportfolio-Belegung 97,6 %, Belegung am selben Center 97,9 %, und belegte Belegung 94,8 %. PECO verzeichnete Rekordmietspannen (Verlängerungen 23,2 %, Neuverträge 24,5 %) und schloss bislang ca. 376 Mio. USD an Akquisitionen ab. Die Bilanzliquidität betrug ca. 977 Mio. USD und das trailing Net Debt/EBITDA-Verhältnis lag bei 5,3x.
Phillips Edison & Company (بورصة ناسداك: PECO) أعلنت عن نتائج الربع الثالث من 2025 ورفعت توجيهات الأرباح للسنة المالية بالكامل. Q3 Nareit FFO بلغ 89.3 مليون دولار، 0.64 دولار للسهم المخفف (+9.4% على أساس سنوي) و Core FFO بلغ 90.6 مليون دولار، 0.65 دولار للسهم المخفف (+7.3% على أساس سنوي). زادت الشركة نقاط منتصف التوجيهات لعام 2025، ما يوحي بنمو سنوي يقرب من 6.8% في Nareit FFO و 6.6% في Core FFO وإطار NOI للمركز نفسه للسنة الكاملة عند 3.35%.
استمرت مقاييس التشغيل في القوة: إشغال المحفظة المؤجرة 97.6%، إشغال المركز نفسه 97.9%، والإشغال المؤجر inline 94.8%. حققت PECO فروق إيجار قياسية (التجديدات 23.2%، الجديدة 24.5%) وأتمت حتى الآن صفقات استحواذ بنحو ~376 مليون دولار مقارنة بحجم أسهمها. سيولة الميزانية بلغت نحو ~977 مليون دولار وكانت نسبة الدين الصافي/Ebitda trailing هي 5.3x.
Phillips Edison & Company (纳斯达克股票代码：PECO) 披露了2025年第三季度业绩并提高全年盈利指引。Q3 Nareit FFO 为 8,93,000,000 美元，摊薄每股收益 0.64 美元（同比 +9.4%），Core FFO 为 9,06,000,000 美元，摊薄每股收益 0.65 美元（同比 +7.3%）。公司提高了 2025 年的中点指引，暗示同比约增长 6.8% 的 Nareit FFO 和 6.6% 的 Core FFO，以及全年同中心 NOI 中点为 3.35%。
运营指标保持强劲：租赁组合入住率 97.6%，同中心入住率 97.9%，租赁入住率 94.8%。PECO 实现了创纪录的租金差额（续租 23.2%，新租 24.5%），迄今为止按股本完成约 3.76 亿美元 的收购。资产负债表流动性约为 9.77 亿美元，Trailing 净债务/EBITDA 为 5.3x。
- Nareit FFO +9.4% to $89.3M in Q3 2025
- Core FFO +7.3% to $90.6M in Q3 2025
- Full‑year 2025 guidance midpoints imply ~6.8% Nareit FFO growth
- Same‑center NOI guidance midpoint of 3.35% for 2025
- Completed ~$376M acquisitions to date at PECO's share
- Leased portfolio occupancy at 97.6% as of Sept 30, 2025
- Trailing net debt to annualized adjusted EBITDAre increased to 5.3x
- Leased inline occupancy slipped to 94.8% from 95.0% year ago
- G&A guidance raised to $48M–$52M for full year 2025
Insights
PECO reported solid Q3 2025 results and raised full‑year guidance, showing upward FFO and rent spreads.
Net income rose to
Operationally, leased portfolio occupancy held at
Balance sheet liquidity totaled approximately
CINCINNATI, Oct. 23, 2025 (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 reported financial and operating results for the period ended September 30, 2025 and increased full year 2025 earnings guidance. For the three and nine months ended September 30, 2025, net income attributable to stockholders was
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 of97.9% - Reported strong leased inline occupancy of
94.8% and same-center leased inline occupancy of95.0% - 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 of23.4% 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
Financial Results
Net Income
Third quarter 2025 net income attributable to stockholders totaled
For the nine months ended September 30, 2025, net income attributable to stockholders totaled
Nareit FFO
Third quarter 2025 funds from operations attributable to stockholders and operating partnership (“OP”) unit holders as defined by Nareit (“Nareit FFO”) increased
For the nine months ended September 30, 2025, Nareit FFO increased
Core FFO
Third quarter 2025 core funds from operations attributable to stockholders and OP unit holders (“Core FFO”) increased
For the nine months ended September 30, 2025, Core FFO increased
Same-Center NOI
Third quarter 2025 same-center net operating income (“NOI”) increased
For the nine months ended September 30, 2025, same-center NOI increased
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
Leased anchor occupancy was
Leased inline occupancy was
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
Comparable rent spreads during the nine months ended September 30, 2025 were
Transaction Activity - Wholly-Owned
During the third quarter of 2025, the Company acquired
- 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
Subsequent to quarter end, the Company acquired
- 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
During the nine months ended September 30, 2025, the Company acquired
Balance Sheet Highlights
As of September 30, 2025, the Company had approximately
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
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 Year 2025 Guidance | Previous Full Year 2025 Guidance | ||
| Net income per share | |||||
| Nareit FFO per share | |||||
| Core FFO per share | |||||
| Same-Center NOI growth | |||||
| Portfolio Activity: | |||||
| Acquisitions, gross(1) | |||||
| Other: | |||||
| Interest expense, net | |||||
| G&A expense | |||||
| Non-cash revenue items(2) | |||||
| Adjustments for collectibility |
(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, 2025
Time: 12:00 p.m. ET
Toll-Free Dial-In Number: (800) 715-9871
International Dial-In Number: (646) 307-1963
Conference ID: 4551083
Webcast: 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 SHEETS
AS 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, | — | — | |||||
| Common stock, | 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 OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Condensed and Unaudited)
(In thousands, except per share amounts)
| Three Months Ended September 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 | 165,527 | 538,733 | 488,344 | |||||||||||
| Operating Expenses: | |||||||||||||||
| Property operating | 30,197 | 27,528 | 89,455 | 81,461 | |||||||||||
| Real estate taxes | 22,226 | 19,569 | 64,584 | 57,897 | |||||||||||
| General and administrative | 12,752 | 11,114 | 37,760 | 34,060 | |||||||||||
| Depreciation and amortization | 65,603 | 68,328 | 202,080 | 189,706 | |||||||||||
| Total operating expenses | 130,778 | 126,539 | 393,879 | 363,124 | |||||||||||
| Other: | |||||||||||||||
| Interest expense, net | (28,544 | ) | (24,998 | ) | (81,935 | ) | (71,954 | ) | |||||||
| Gain (loss) on disposal of property, net | 4,255 | (19 | ) | 9,798 | (34 | ) | |||||||||
| Other expense, net | (374 | ) | (1,068 | ) | (2,344 | ) | (3,717 | ) | |||||||
| Net income | 27,228 | 12,903 | 70,373 | 49,515 | |||||||||||
| Net income attributable to noncontrolling interests | (2,543 | ) | (1,301 | ) | (6,595 | ) | (4,972 | ) | |||||||
| Net income attributable to stockholders | $ | 24,685 | $ | 11,602 | $ | 63,778 | $ | 44,543 | |||||||
| Earnings per share of common stock: | |||||||||||||||
| Net income per share attributable to stockholders - basic and diluted | $ | 0.20 | $ | 0.09 | $ | 0.51 | $ | 0.36 | |||||||
Discussion and Reconciliation of Non-GAAP Measures
Same-Center Net Operating Income
The Company presents Same-Center NOI as a supplemental measure of its performance. The Company defines NOI as total operating revenues, adjusted to exclude non-cash revenue items, less property operating expenses and real estate taxes. For the three and nine months ended September 30, 2025 and 2024, Same-Center NOI represents the NOI for the 279 properties that were wholly-owned and operational for the entirety of both calendar year periods being compared. The Company believes Same-Center NOI provides useful information to its investors about its financial and operating performance because it provides a performance measure of the revenues and expenses directly involved in owning and operating real estate assets and provides a perspective not immediately apparent from net income (loss). Because Same-Center NOI excludes the change in NOI from properties acquired or disposed of after December 31, 2023, it highlights operating trends such as occupancy levels, rental rates, and operating costs on properties that were operational for all comparable periods. Other REITs may use different methodologies for calculating Same-Center NOI, and accordingly, PECO’s Same-Center NOI may not be comparable to other REITs.
Same-Center NOI should not be viewed as an alternative measure of the Company’s financial performance as it does not reflect the operations of its entire portfolio, nor does it reflect the impact of general and administrative expenses, depreciation and amortization, interest expense, other income (expense), or the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company’s properties that could materially impact its results from operations.
Nareit Funds from Operations and Core Funds from Operations
Nareit FFO is a non-GAAP financial performance measure that is widely recognized as a measure of REIT operating performance. The National Association of Real Estate Investment Trusts (“Nareit”) defines FFO as net income (loss) computed in accordance with GAAP, excluding: (i) gains (or losses) from sales of property and gains (or losses) from change in control; (ii) depreciation and amortization related to real estate; and (iii) impairment losses on real estate and impairments of in-substance real estate investments in investees that are driven by measurable decreases in the fair value of the depreciable real estate held by the unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect Nareit FFO on the same basis. The Company calculates Nareit FFO in a manner consistent with the Nareit definition.
Core FFO is an additional financial performance measure used by the Company as Nareit FFO includes certain non-comparable items that affect its performance over time. The Company believes that Core FFO is helpful in assisting management and investors with the assessment of the sustainability of operating performance in future periods, and that it is more reflective of its core operating performance and provides an additional measure to compare PECO’s performance across reporting periods on a consistent basis by excluding items that may cause short-term fluctuations in net income (loss). To arrive at Core FFO, the Company adjusts Nareit FFO to exclude certain recurring and non-recurring items including, but not limited to: (i) depreciation and amortization of corporate assets; (ii) changes in the fair value of the earn-out liability; (iii) adjustments related to our investments in unconsolidated joint ventures; (iv) gains or losses on the extinguishment or modification of debt and other; (v) other impairment charges; (vi) transaction and acquisition expenses; and (vii) realized performance income.
Nareit FFO and Core FFO should not be considered alternatives to net income (loss) under GAAP, as an indication of the Company’s liquidity, nor as an indication of funds available to cover its cash needs, including its ability to fund distributions. Core FFO may not be a useful measure of the impact of long-term operating performance on value if the Company does not continue to operate its business plan in the manner currently contemplated.
Accordingly, Nareit FFO and Core FFO should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. The Company’s Nareit FFO and Core FFO, as presented, may not be comparable to amounts calculated by other REITs.
Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate and Adjusted EBITDAre
Nareit defines Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (“EBITDAre”) as net income (loss) computed in accordance with GAAP before: (i) interest expense; (ii) income tax expense; (iii) depreciation and amortization; (iv) gains or losses from disposition of depreciable property; and (v) impairment write-downs of depreciable property. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect EBITDAre on the same basis.
Adjusted EBITDAre is an additional performance measure used by the Company as EBITDAre includes certain non-comparable items that affect the Company’s performance over time. To arrive at Adjusted EBITDAre, the Company excludes certain recurring and non-recurring items from EBITDAre, including, but not limited to: (i) changes in the fair value of the earn-out liability; (ii) other impairment charges; (iii) adjustments related to our investments in unconsolidated joint ventures; (iv) transaction and acquisition expenses; and (v) realized performance income.
The Company uses EBITDAre and Adjusted EBITDAre as additional measures of operating performance which allow it to compare earnings independent of capital structure, determine debt service and fixed cost coverage, and measure enterprise value. Additionally, the Company believes they are a useful indicator of its ability to support its debt obligations. EBITDAre and Adjusted EBITDAre should not be considered as alternatives to net income (loss), as an indication of the Company’s liquidity, nor as an indication of funds available to cover its cash needs, including its ability to fund distributions. Accordingly, EBITDAre and Adjusted EBITDAre should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. The Company’s EBITDAre and Adjusted EBITDAre, as presented, may not be comparable to amounts calculated by other REITs.
Same-Center Net Operating Income—The table below compares Same-Center NOI (dollars in thousands):
| Three Months Ended September 30, | Favorable (Unfavorable) | Nine Months Ended September 30, | Favorable (Unfavorable) | ||||||||||||||||||||||||||
| 2025 | 2024 | $ Change | % Change | 2025 | 2024 | $ Change | % Change | ||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Rental income(1) | $ | 120,982 | $ | 117,679 | $ | 3,303 | $ | 361,630 | $ | 351,128 | $ | 10,502 | |||||||||||||||||
| Tenant recovery income | 38,619 | 37,123 | 1,496 | 115,582 | 110,651 | 4,931 | |||||||||||||||||||||||
| Reserves for uncollectibility(2) | (1,144 | ) | (1,514 | ) | 370 | (3,494 | ) | (3,949 | ) | 455 | |||||||||||||||||||
| Other property income | 896 | 768 | 128 | 2,711 | 2,130 | 581 | |||||||||||||||||||||||
| Total revenues | 159,353 | 154,056 | 5,297 | 3.4 | % | 476,429 | 459,960 | 16,469 | 3.6 | % | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||
| Property operating expenses | 23,779 | 23,172 | (607 | ) | 72,680 | 70,703 | (1,977 | ) | |||||||||||||||||||||
| Real estate taxes | 20,096 | 19,102 | (994 | ) | 58,943 | 57,153 | (1,790 | ) | |||||||||||||||||||||
| Total operating expenses | 43,875 | 42,274 | (1,601 | ) | (3.8 | )% | 131,623 | 127,856 | (3,767 | ) | (2.9 | )% | |||||||||||||||||
| Total Same-Center NOI | $ | 115,478 | $ | 111,782 | $ | 3,696 | 3.3 | % | $ | 344,806 | $ | 332,104 | $ | 12,702 | 3.8 | % | |||||||||||||
(1) Excludes straight-line rental income, net amortization of above- and below-market leases, and lease buyout income.
(2) Includes billings that will not be recognized as revenue until cash is collected or the Neighbor resumes regular payments and/or the Company deems it appropriate to resume recording revenue on an accrual basis, rather than on a cash basis.
Same-Center Net Operating Income Reconciliation—Below is a reconciliation of Net Income to NOI and Same-Center NOI (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income | $ | 27,228 | $ | 12,903 | $ | 70,373 | $ | 49,515 | |||||||
| Adjusted to exclude: | |||||||||||||||
| Fees and management income | (3,274 | ) | (2,856 | ) | (9,373 | ) | (7,943 | ) | |||||||
| Straight-line rental income(1) | (2,899 | ) | (2,148 | ) | (7,853 | ) | (6,585 | ) | |||||||
| Net amortization of above- and below-market leases | (2,204 | ) | (1,743 | ) | (6,276 | ) | (4,732 | ) | |||||||
| Lease buyout income | (144 | ) | (393 | ) | (2,062 | ) | (844 | ) | |||||||
| General and administrative expenses | 12,752 | 11,114 | 37,760 | 34,060 | |||||||||||
| Depreciation and amortization | 65,603 | 68,328 | 202,080 | 189,706 | |||||||||||
| Interest expense, net | 28,544 | 24,998 | 81,935 | 71,954 | |||||||||||
| (Gain) loss on disposal of property, net | (4,255 | ) | 19 | (9,798 | ) | 34 | |||||||||
| Other expense, net | 374 | 1,068 | 2,344 | 3,717 | |||||||||||
| Property operating expenses related to fees and management income | 989 | 983 | 2,892 | 2,328 | |||||||||||
| NOI for real estate investments | 122,714 | 112,273 | 362,022 | 331,210 | |||||||||||
| Less: Non-same-center NOI(2) | (7,236 | ) | (491 | ) | (17,216 | ) | 894 | ||||||||
| Total Same-Center NOI | $ | 115,478 | $ | 111,782 | $ | 344,806 | $ | 332,104 | |||||||
| Period-end Same-Center Leased Occupancy % | 97.9 | % | 97.8 | % | |||||||||||
(1) Includes straight-line rent adjustments for Neighbors for whom revenue is being recorded on a cash basis.
(2) Includes operating revenues and expenses from non-same-center properties, which includes properties acquired or sold, and corporate activities.
Nareit FFO and Core FFO—The following table presents the Company’s calculation of Nareit FFO and Core FFO and provides additional information related to its operations (in thousands, except per share amounts):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Calculation of Nareit FFO Attributable to Stockholders and OP Unit Holders | |||||||||||||||
| Net income | $ | 27,228 | $ | 12,903 | $ | 70,373 | $ | 49,515 | |||||||
| Adjustments: | |||||||||||||||
| Depreciation and amortization of real estate assets | 65,205 | 67,887 | 200,908 | 188,374 | |||||||||||
| (Gain) loss on disposal of property, net | (4,255 | ) | 19 | (9,798 | ) | 34 | |||||||||
| Adjustments related to unconsolidated joint ventures | 1,075 | 745 | 2,834 | 2,055 | |||||||||||
| Nareit FFO attributable to stockholders and OP unit holders | $ | 89,253 | $ | 81,554 | $ | 264,317 | $ | 239,978 | |||||||
| Calculation of Core FFO Attributable to Stockholders and OP Unit Holders | |||||||||||||||
| Nareit FFO attributable to stockholders and OP unit holders | $ | 89,253 | $ | 81,554 | $ | 264,317 | $ | 239,978 | |||||||
| Adjustments: | |||||||||||||||
| Depreciation and amortization of corporate assets | 398 | 441 | 1,172 | 1,332 | |||||||||||
| Transaction and acquisition expenses | 893 | 1,181 | 4,004 | 3,501 | |||||||||||
| Loss on extinguishment or modification of debt and other, net | — | 1,231 | 1 | 1,230 | |||||||||||
| Adjustments related to unconsolidated joint ventures | 13 | 3 | 45 | 8 | |||||||||||
| Core FFO attributable to stockholders and OP unit holders | $ | 90,557 | $ | 84,410 | $ | 269,539 | $ | 246,049 | |||||||
| Nareit FFO/Core FFO Attributable to Stockholders and OP Unit Holders per Diluted Share | |||||||||||||||
| Weighted-average shares of common stock outstanding - diluted | 138,860 | 136,578 | 138,927 | 136,458 | |||||||||||
| Nareit FFO attributable to stockholders and OP unit holders per share - diluted | $ | 0.64 | $ | 0.60 | $ | 1.90 | $ | 1.76 | |||||||
| Core FFO attributable to stockholders and OP unit holders per share - diluted | $ | 0.65 | $ | 0.62 | $ | 1.94 | $ | 1.80 | |||||||
EBITDAre and Adjusted EBITDAre—The following table presents the Company’s calculation of EBITDAre and Adjusted EBITDAre (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2024 | ||||||||||||
| Calculation of EBITDAre | ||||||||||||||||
| Net income | $ | 27,228 | $ | 12,903 | $ | 70,373 | $ | 49,515 | $ | 69,696 | ||||||
| Adjustments: | ||||||||||||||||
| Depreciation and amortization | 65,603 | 68,328 | 202,080 | 189,706 | 253,016 | |||||||||||
| Interest expense, net | 28,544 | 24,998 | 81,935 | 71,954 | 96,990 | |||||||||||
| (Gain) loss on disposal of property, net | (4,255 | ) | 19 | (9,798 | ) | 34 | 30 | |||||||||
| Federal, state, and local tax expense | 219 | 446 | 599 | 1,047 | 1,821 | |||||||||||
| Adjustments related to unconsolidated joint ventures | 1,652 | 1,075 | 4,296 | 2,937 | 4,025 | |||||||||||
| EBITDAre | $ | 118,991 | $ | 107,769 | $ | 349,485 | $ | 315,193 | $ | 425,578 | ||||||
| Calculation of Adjusted EBITDAre | ||||||||||||||||
| EBITDAre | $ | 118,991 | $ | 107,769 | $ | 349,485 | $ | 315,193 | $ | 425,578 | ||||||
| Adjustments: | ||||||||||||||||
| Transaction and acquisition expenses | 893 | 1,181 | 4,004 | 3,501 | 4,993 | |||||||||||
| Adjustments related to unconsolidated joint ventures | 13 | 3 | 45 | 8 | 13 | |||||||||||
| Adjusted EBITDAre | $ | 119,897 | $ | 108,953 | $ | 353,534 | $ | 318,702 | $ | 430,584 | ||||||
Financial Leverage Ratios—The Company believes its net debt to Adjusted EBITDAre, net debt to total enterprise value, and debt covenant compliance as of September 30, 2025 allow it access to future borrowings as needed in the near term. The following table presents the Company’s calculation of net debt and total enterprise value, inclusive of its prorated portion of net debt and cash and cash equivalents owned through its unconsolidated joint ventures, as of September 30, 2025 and December 31, 2024 (in thousands):
| September 30, 2025 | December 31, 2024 | ||||
| Net debt: | |||||
| Total debt, excluding discounts, market adjustments, and deferred financing expenses | $ | 2,457,419 | $ | 2,166,326 | |
| Less: Cash and cash equivalents | 5,723 | 5,470 | |||
| Total net debt | $ | 2,451,696 | $ | 2,160,856 | |
| Enterprise value: | |||||
| Net debt | $ | 2,451,696 | $ | 2,160,856 | |
| Total equity market capitalization(1)(2) | 4,752,062 | 5,175,286 | |||
| Total enterprise value | $ | 7,203,758 | $ | 7,336,142 | |
(1) Total equity market capitalization is calculated as diluted shares multiplied by the closing market price per share, which includes 138.4 million and 138.2 million diluted shares as of September 30, 2025 and December 31, 2024, respectively, and the closing market price per share of
(2) Fully diluted shares include common stock and OP units.
The following table presents the Company’s calculation of net debt to Adjusted EBITDAre and net debt to total enterprise value as of September 30, 2025 and December 31, 2024 (dollars in thousands):
| September 30, 2025 | December 31, 2024 | ||||
| Net debt to Adjusted EBITDAre - annualized: | |||||
| Net debt | $ | 2,451,696 | $ | 2,160,856 | |
| Adjusted EBITDAre - annualized(1) | 465,416 | 430,584 | |||
| Net debt to Adjusted EBITDAre - annualized | 5.3x | 5.0x | |||
| Net debt to total enterprise value: | |||||
| Net debt | $ | 2,451,696 | $ | 2,160,856 | |
| Total enterprise value | 7,203,758 | 7,336,142 | |||
| Net debt to total enterprise value | |||||
(1) Adjusted EBITDAre is based on a trailing twelve month period.
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 earnings release. Such statements include, but are not limited to: (a) statements about the Company’s plans, strategies, initiatives, and prospects; (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) changes in national, regional, or local economic climates; (ii) local market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in the Company’s portfolio; (iii) vacancies, changes in market rental rates, and the need to periodically repair, renovate, and re-let space; (iv) competition from other available shopping centers and the attractiveness of properties in the Company’s portfolio to its tenants; (v) the financial stability of the Company’s tenants, including, without limitation, their ability to pay rent; (vi) the Company’s ability to pay down, refinance, restructure, or extend its indebtedness as it becomes due; (vii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors; (viii) potential liability for environmental matters; (ix) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (x) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax, and other considerations; (xi) changes in tax, real estate, environmental, and zoning laws; (xii) information technology security breaches; (xiii) the Company’s corporate responsibility initiatives; (xiv) loss of key executives; (xv) the concentration of the Company’s portfolio in a limited number of industries, geographies, or investments; (xvi) the economic, political, and social impact of, and uncertainty relating to, pandemics or other health crises; (xvii) 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; (xviii) the loss or bankruptcy of the Company’s tenants; (xix) to the extent the Company is seeking to dispose of properties, the Company’s ability to do so at attractive prices or at all; (xx) the effects of the U.S. government shutdown on financial markets and macroeconomic conditions; 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 2024 Annual Report on Form 10-K, filed with the SEC on February 11, 2025, 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
Hannah Harper, Senior Manager of Investor Relations
(513) 824-7122
hharper@phillipsedison.com
FAQ
What were Phillips Edison (PECO) Q3 2025 Nareit FFO results?
How did PECO revise full‑year 2025 earnings guidance (PECO)?
What is PECO's same‑center NOI growth outlook for 2025?
What occupancy levels did PECO report for Q3 2025?
How much liquidity and leverage did PECO report at Sept 30, 2025?
