Open the filing on EDGARPhillips Edison & Company Reports Fourth Quarter
and Full Year 2025 Results
CINCINNATI - February 5, 2026 - 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 fourth quarter and full year ended December 31, 2025 and provided guidance for 2026. For the fourth quarter and full year ended December 31, 2025, net income attributable to stockholders was $47.5 million, or $0.38 per diluted share, and $111.3 million, or $0.89 per diluted share, respectively.
Highlights for the Fourth Quarter, Full Year and Subsequent
- Reported Nareit FFO of $88.8 million, or $0.64 per diluted share, for the fourth quarter
- Reported Core FFO of $91.1 million, or $0.66 per diluted share, for the fourth quarter
- Generated Nareit FFO per share of $2.54 for the full year, or 7.2% growth over 2024
- Generated Core FFO per share of $2.60 for the full year, or 7.0% growth over 2024
- Increased same-center NOI year-over-year by 3.2% for the fourth quarter, and increased same-center NOI by 3.8% for the full year
- Reported strong leased portfolio occupancy of 97.3% and same-center leased portfolio occupancy of 97.6%
- Increased leased inline occupancy and same-center leased inline occupancy to a record-high 95.1%
- Executed portfolio comparable new leases at a rent spread of 34.3% and inline comparable new leases at a rent spread of 27.5% during the fourth quarter
- Executed portfolio comparable renewal leases at a rent spread of 20.0% and inline comparable renewal leases at a rent spread of 19.8% during the fourth quarter
- Acquired $395.5 million in assets at PECO’s total prorated share for the full year, which included 18 shopping centers, an outparcel and land for future development
- Sold $145.4 million in assets at PECO’s total prorated share for the full year, which included nine shopping centers and development land
- Subsequent to quarter end, acquired $77.0 million in assets, which included two shopping centers and land for future development
Management Commentary
Jeff Edison, Chairman and Chief Executive Officer of PECO stated: “2025 was a strong year for PECO, and we enter 2026 with good momentum. Retailer demand remains strong for well-located, grocery-anchored shopping centers. In 2025, the PECO team delivered Nareit FFO per share growth of 7.2%, Core FFO per share growth of 7.0% and Same-Center NOI growth of 3.8%. Our strong 2026 guidance is consistent with our long-term targets for Same-Center NOI growth in a range of 3% to 4% and Nareit FFO per share and Core FFO per share growth in the mid-to-high single digits. We are excited about 2026 and are confident in our ability to deliver solid growth well beyond 2026.”
Financial Results
Net Income
Fourth quarter 2025 net income attributable to stockholders totaled $47.5 million, or $0.38 per diluted share, compared to net income of $18.1 million, or $0.15 per diluted share, during the fourth quarter of 2024.
For the year ended December 31, 2025, net income attributable to stockholders totaled $111.3 million, or $0.89 per diluted share, compared to $62.7 million, or $0.51 per diluted share, during the year ended December 31, 2024.
Nareit FFO
Fourth quarter 2025 funds from operations attributable to stockholders and operating partnership (“OP”) unit holders as defined by Nareit (“Nareit FFO”) increased 5.9% to $88.8 million, or $0.64 per diluted share, compared to $83.8 million, or $0.61 per diluted share, during the fourth quarter of 2024.
For the year ended December 31, 2025, Nareit FFO increased 9.1% to $353.1 million, or $2.54 per diluted share, compared to $323.8 million, or $2.37 per diluted share, during the year ended December 31, 2024.
Core FFO
Fourth quarter 2025 core funds from operations attributable to stockholders and OP unit holders (“Core FFO”) increased 6.2% to $91.1 million, or $0.66 per diluted share, compared to $85.8 million, or $0.62 per diluted share, during the fourth quarter of 2024.
For the year ended December 31, 2025, Core FFO increased 8.7% to $360.7 million, or $2.60 per diluted share, compared to $331.8 million, or $2.43 per diluted share, during the year ended December 31, 2024.
Same-Center NOI
Fourth quarter 2025 same-center net operating income (“NOI”) increased 3.2% to $115.9 million, compared to $112.3 million during the fourth quarter of 2024.
For the year ended December 31, 2025, same-center NOI increased 3.8% to $454.7 million, compared to $438.1 million during the year ended December 31, 2024.
Portfolio Overview
Portfolio Statistics
As of December 31, 2025, PECO’s wholly-owned portfolio consisted of 297 properties, totaling approximately 33.5 million square feet. This compared to 294 properties, totaling approximately 33.3 million square feet, as of December 31, 2024.
Leased portfolio occupancy remained high at 97.3% at December 31, 2025, compared to 97.7% at December 31, 2024. Same-center leased portfolio occupancy remained strong at 97.6% as of December 31, 2025, compared to 97.8% as of December 31, 2024.
Leased anchor occupancy remained strong at 98.7% as of December 31, 2025, compared to 99.1% at December 31, 2024. Same-center leased anchor occupancy was 99.0% as of December 31, 2025, compared to 99.3% as of December 31, 2024.
Leased inline occupancy increased to a record-high 95.1% as of December 31, 2025, compared to 95.0% at December 31, 2024. Same-center leased inline occupancy increased to a record-high 95.1% as of December 31, 2025, compared to 95.0% as of December 31, 2024.
Leasing Activity
During the fourth quarter of 2025, 246 leases were executed totaling approximately 1.4 million square feet. This compared to 231 leases executed totaling approximately 1.4 million square feet during the fourth quarter of 2024.
For the year ended December 31, 2025, 1,026 leases were executed totaling approximately 6.0 million square feet. This compared to 1,021 leases executed totaling approximately 6.0 million square feet during the same period in 2024.
During the fourth quarter of 2025, comparable rent spreads, which compare the percentage increase of new or renewal leases to the expiring lease of a unit that was occupied within the past twelve months, were 34.3% for new leases, 20.0% for renewal leases and 24.5% combined.
Comparable rent spreads during the year ended December 31, 2025 were 30.9% for new leases, a record-high 20.7% for renewal leases and 23.3% combined.
Transaction Activity - Wholly-Owned
During the fourth quarter of 2025, the Company acquired $76.1 million in assets, which included two shopping centers, an outparcel 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. During the same period, the Company sold $111.2 million in assets, which included seven shopping centers. The fourth quarter 2025 acquisitions consisted of:
- Bel Air Town Center, a 77,817 square foot Everyday Retail 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.
During the year ended December 31, 2025, the Company acquired $356.9 million in assets, which included 13 shopping centers, an outparcel and land for future development. During the same period, $145.3 million in assets were sold, which included nine shopping centers and one land parcel.
Subsequent to quarter end, the Company acquired $77.0 million in assets, which included two shopping centers and land for future development. Acquisitions completed 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 Green, a 74,641 square foot shopping center anchored by H-E-B located in a Houston, Texas suburb.
Transaction Activity - Joint Ventures
During the fourth quarter of 2025, the Company acquired $17.7 million in assets at PECO’s total prorated share, which included two shopping centers. The fourth quarter 2025 acquisitions consisted of:
- Rio Hill Shopping Center, a 286,195 square foot shopping center anchored by Kroger located in a Richmond, Virginia suburb, acquired through Necessity Retail Venture LLC.
- Springs Plaza, a 195,353 square foot shopping center anchored by ALDI located in a Fort Myers, Florida suburb, acquired through Necessity Retail Venture LLC.
During the year ended December 31, 2025, the Company acquired $38.6 million in assets at PECO’s total prorated share, which included five shopping centers purchased through its joint ventures. During the same period, the Company, through Grocery Retail Partners I LLC, sold land for development for $0.1 million at PECO’s total prorated share.
Balance Sheet Highlights
As of December 31, 2025, the Company had approximately $925.1 million of total liquidity, comprised of $43.3 million of cash, cash equivalents and restricted cash, plus $881.8 million of borrowing capacity available on its $1.0 billion revolving credit facility.
As of December 31, 2025, the Company’s net debt to annualized adjusted EBITDAre was 5.2x. This compared to 5.0x at December 31, 2024. As of December 31, 2025, the Company’s outstanding debt had a weighted-average interest rate of 4.5% and a weighted-average maturity of 5.3 years when including all extension options. As of December 31, 2025, 84.7% of the Company’s total debt was fixed-rate debt, which includes PECO’s total prorated share of debt for its joint ventures.
2026 Guidance
The following guidance is based upon PECO’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) | 2026 Full Year Guidance |
| Net income per share | $0.74 - $0.77 |
| Nareit FFO per share | $2.65 - $2.71 |
| Core FFO per share | $2.71 - $2.77 |
| Same-Center NOI growth | 3.00% - 4.00% |
| Portfolio Activity: | |
| Acquisitions, gross | $400,000 - $500,000 |
| Other: | |
| Interest expense, net | $117,000 - $127,000 |
| G&A expense | $49,000 - $53,000 |
| Non-cash revenue items | $19,000 - $21,000 |
| Adjustments for collectibility | $5,000 - $8,000 |
Includes the prorated portion owned through the Company’s unconsolidated joint ventures.
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 | $0.74 | $0.77 |
| Depreciation and amortization of real estate assets | 1.87 | 1.89 |
| Adjustments related to unconsolidated joint ventures | 0.04 | 0.05 |
| Nareit FFO per common share | $2.65 | $2.71 |
| Depreciation and amortization of corporate assets | 0.01 | 0.01 |
| Transaction costs and other | 0.05 | 0.05 |
| Core FFO per common share | $2.71 | $2.77 |
Conference Call and Webcast Details
PECO will host a conference call and webcast on Friday, February 6, 2026 at 12:00 p.m. Eastern Time to discuss fourth quarter and full year 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.
Fourth Quarter and Full Year 2025 Earnings Conference Call and Webcast Details:
Date: Friday, February 6, 2026
Time: 12:00 p.m. Eastern Time
Toll-Free Dial-In Number: (800) 715-9871
International Dial-In Number: (646) 307-1963
Conference ID: 4551083
Webcast: Fourth Quarter and Full Year 2025 Webcast Link
An audio replay of the webcast will be available approximately one hour after the conclusion of the conference call using the webcast link above.
For more information on the Company’s financial results, please refer to the Company’s 2025 Annual Report on Form 10-K, to be filed with the SEC on or around February 10, 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 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.
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 DECEMBER 31, 2025 AND 2024
(In thousands, except per share amounts)
| 2025 | 2024 |
|---|
| ASSETS | | |
| Investment in real estate: | | |
| Land and improvements | $1,963,735 | | $1,867,227 | |
| Building and improvements | 4,305,174 | | 4,085,713 | |
| In-place lease assets | 538,324 | | 523,209 | |
| Above-market lease assets | 77,551 | | 76,359 | |
| Total investment in real estate assets | 6,884,784 | | 6,552,508 | |
| Accumulated depreciation and amortization | (1,957,569) | | (1,771,052) | |
| Net investment in real estate assets | 4,927,215 | | 4,781,456 | |
| Investment in unconsolidated joint ventures | 42,561 | | 31,724 | |
| Total investment in real estate assets, net | 4,969,776 | | 4,813,180 | |
| Cash and cash equivalents | 3,544 | | 4,881 | |
| Restricted cash | 39,768 | | 3,768 | |
| Goodwill | 29,066 | | 29,066 | |
| Other assets, net | 244,284 | | 195,328 | |
| Total assets | $5,286,438 | | $5,046,223 | |
| LIABILITIES AND EQUITY | | |
| Liabilities: | | |
| Debt obligations, net | $2,375,328 | | $2,109,543 | |
| Below-market lease liabilities, net | 118,356 | | 116,096 | |
| Accounts payable and other liabilities | 180,332 | | 163,692 | |
| Deferred income | 23,044 | | 22,907 | |
| Total liabilities | 2,697,060 | | 2,412,238 | |
| Commitments and contingencies | - | | - | |
| Equity: | | |
| Preferred stock, $0.01 par value per share, 10,000 shares authorized, zero shares issued and outstanding at December 31, 2025 and 2024 | - | | - | |
| Common stock, $0.01 par value per share, 1,000,000 shares authorized, 125,788 and 125,120 shares issued and outstanding at December 31, 2025 and 2024, respectively | 1,258 | | 1,251 | |
| Additional paid-in capital | 3,664,205 | | 3,646,801 | |
| Accumulated other comprehensive income | 358 | | 4,305 | |
| Accumulated deficit | (1,379,252) | | (1,332,435) | |
| Total stockholders’ equity | 2,286,569 | | 2,319,922 | |
| Noncontrolling interests | 302,809 | | 314,063 | |
| Total equity | 2,589,378 | | 2,633,985 | |
| Total liabilities and equity | $5,286,438 | | $5,046,223 | |
PHILLIPS EDISON & COMPANY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2025 AND 2024
(In thousands, except per share amounts)
| Three Months Ended December 31, | Year Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Revenues: | | | | |
| Rental income | $183,243 | | $169,455 | | $709,186 | | $647,589 | |
| Fees and management income | 3,378 | | 2,788 | | 12,751 | | 10,731 | |
| Other property income | 1,240 | | 805 | | 4,657 | | 3,072 | |
| Total revenues | 187,861 | | 173,048 | | 726,594 | | 661,392 | |
| Operating Expenses: | | | | |
| Property operating | 34,194 | | 31,172 | | 123,649 | | 112,633 | |
| Real estate taxes | 21,503 | | 19,787 | | 86,087 | | 77,684 | |
| General and administrative | 13,878 | | 11,551 | | 51,638 | | 45,611 | |
| Depreciation and amortization | 64,294 | | 63,310 | | 266,374 | | 253,016 | |
| Total operating expenses | 133,869 | | 125,820 | | 527,748 | | 488,944 | |
| Other: | | | | |
| Interest expense, net | (28,403) | | (25,036) | | (110,338) | | (96,990) | |
| Gain (loss) on disposal of property, net | 28,992 | | 4 | | 38,790 | | (30) | |
| Other expense, net | (1,986) | | (2,015) | | (4,330) | | (5,732) | |
| Net income | 52,595 | | 20,181 | | 122,968 | | 69,696 | |
| Net income attributable to noncontrolling interests | (5,070) | | (2,039) | | (11,665) | | (7,011) | |
| Net income attributable to stockholders | $47,525 | | $18,142 | | $111,303 | | $62,685 | |
| Earnings per share of common stock: | | | | |
| Net income per share attributable to stockholders - basic and diluted | $0.38 | | $0.15 | | $0.89 | | $0.51 | |
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 months and years ended December 31, 2025 and 2024, Same-Center NOI represents the NOI for the 272 properties that were wholly-owned 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 for our same-center portfolio. 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 December 31, | Favorable (Unfavorable) | Year Ended December 31, | Favorable (Unfavorable) |
|---|
| 2025 | 2024 | $ Change | % Change | 2025 | 2024 | $ Change | % Change |
|---|
| Revenues: | | | | | | | | |
| Rental income | $119,933 | | $116,091 | | $3,842 | | $475,261 | | $460,618 | | $14,643 | |
| Tenant recovery income | 40,978 | | 39,407 | | 1,571 | | 154,059 | | 147,687 | | 6,372 | |
| Reserves for uncollectibility | (1,433) | | (876) | | (557) | | (4,939) | | (4,844) | | (95) | |
| Other property income | 1,197 | | 760 | | 437 | | 3,793 | | 2,842 | | 951 | |
| Total revenues | 160,675 | | 155,382 | | 5,293 | 3.4% | 628,174 | | 606,303 | | 21,871 | 3.6% |
| Operating expenses: | | | | | | | | |
| Property operating expenses | 25,493 | | 24,626 | | (867) | | 96,540 | | 93,699 | | (2,841) | |
| Real estate taxes | 19,260 | | 18,435 | | (825) | | 76,955 | | 74,533 | | (2,422) | |
| Total operating expenses | 44,753 | | 43,061 | | (1,692) | (3.9)% | 173,495 | | 168,232 | | (5,263) | (3.1)% |
| Total Same-Center NOI | $115,922 | | $112,321 | | $3,601 | 3.2% | $454,679 | | $438,071 | | $16,608 | 3.8% |
Excludes straight-line rental income, net amortization of above- and below-market leases, and lease buyout income.
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 December 31, | Year Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Net income | $52,595 | | $20,181 | | $122,968 | | $69,696 | |
| Adjusted to exclude: | | | | |
| Fees and management income | (3,378) | | (2,788) | | (12,751) | | (10,731) | |
| Straight-line rental income | (2,852) | | (3,061) | | (10,705) | | (9,646) | |
| Net amortization of above- and below-market leases | (2,367) | | (1,855) | | (8,643) | | (6,587) | |
| Lease buyout income | (455) | | (23) | | (2,517) | | (867) | |
| General and administrative expenses | 13,878 | | 11,551 | | 51,638 | | 45,611 | |
| Depreciation and amortization | 64,294 | | 63,310 | | 266,374 | | 253,016 | |
| Interest expense, net | 28,403 | | 25,036 | | 110,338 | | 96,990 | |
| (Gain) loss on disposal of property, net | (28,992) | | (4) | | (38,790) | | 30 | |
| Other expense, net | 1,986 | | 2,015 | | 4,330 | | 5,732 | |
| Property operating expenses related to fees and management income | 1,219 | | 995 | | 4,111 | | 3,323 | |
| NOI for real estate investments | 124,331 | | 115,357 | | 486,353 | | 446,567 | |
| Less: Non-same-center NOI | (8,409) | | (3,036) | | (31,674) | | (8,496) | |
| Total Same-Center NOI | $115,922 | | $112,321 | | $454,679 | | $438,071 | |
| Period-end Same-Center Leased Occupancy % | | | 97.6% | | 97.8% | |
Includes straight-line rent adjustments for Neighbors for whom revenue is being recorded on a cash basis.
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 December 31, | Year Ended December 31, |
|---|
| 2025 | 2024 | 2025 | | 2024 |
|---|
| Calculation of Nareit FFO Attributable to Stockholders and OP Unit Holders | | | | | |
| Net income | $52,595 | | $20,181 | | $122,968 | | | $69,696 | |
| Adjustments: | | | | | |
| Depreciation and amortization of real estate assets | 63,926 | | 62,876 | | 264,834 | | | 251,250 | |
| (Gain) loss on disposal of property, net | (28,992) | | (4) | | (38,790) | | | 30 | |
| Adjustments related to unconsolidated joint ventures | 1,242 | | 740 | | 4,076 | | | 2,795 | |
| Nareit FFO attributable to stockholders and OP unit holders | $88,771 | | $83,793 | | $353,088 | | | $323,771 | |
| Calculation of Core FFO Attributable to Stockholders and OP Unit Holders | | | | | |
| Nareit FFO attributable to stockholders and OP unit holders | $88,771 | | $83,793 | | $353,088 | | | $323,771 | |
| Adjustments: | | | | | |
| Depreciation and amortization of corporate assets | 368 | | 434 | | 1,540 | | | 1,766 | |
| Transaction and acquisition expenses | 1,519 | | 1,492 | | 5,523 | | | 4,993 | |
| Loss on extinguishment or modification of debt and other, net | 89 | | 60 | | 90 | | - | 1,290 | |
| Adjustments related to unconsolidated joint ventures | 424 | | 5 | | 469 | | | 13 | |
| Realized performance income | (30) | | - | | (30) | | | - | |
| Core FFO attributable to stockholders and UP unit holders | $91,141 | | $85,784 | | $360,680 | | | $331,833 | |
| Nareit FFO/Core FFO Attributable to Stockholders and OP Unit Holders per diluted share | | | | | |
| Weighted-average shares of common stock outstanding - diluted | 138,845 | | 137,437 | | 138,899 | | | 136,821 | |
| Nareit FFO attributable to stockholders and OP unit holders per share - diluted | $0.64 | | $0.61 | | $2.54 | | | $2.37 | |
| Core FFO attributable to stockholders and OP unit holders per share - diluted | $0.66 | | $0.62 | | $2.60 | | | $2.43 | |
Realized performance income includes fees received related to the achievement of certain performance targets in the Company’s NRP joint venture, which was dissolved in December 2025.
EBITDAre and Adjusted EBITDAre - The following table presents the Company’s calculation of EBITDAre and Adjusted EBITDAre (in thousands):
| Three Months Ended December 31, | Year Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Calculation of EBITDAre | | | | |
| Net income | $52,595 | | $20,181 | | $122,968 | | $69,696 | |
| Adjustments: | | | | |
| Depreciation and amortization | 64,294 | | 63,310 | | 266,374 | | 253,016 | |
| Interest expense, net | 28,403 | | 25,036 | | 110,338 | | 96,990 | |
| (Gain) loss on disposal of property, net | (28,992) | | (4) | | (38,790) | | 30 | |
| Federal, state, and local tax expense | 708 | | 774 | | 1,307 | | 1,821 | |
| Adjustments related to unconsolidated joint ventures | 1,904 | | 1,088 | | 6,200 | | 4,025 | |
| EBITDAre | $118,912 | | $110,385 | | $468,397 | | $425,578 | |
| Calculation of Adjusted EBITDAre | | | | |
| EBITDAre | $118,912 | | $110,385 | | $468,397 | | $425,578 | |
| Adjustments: | | | | |
| Transaction and acquisition expenses | 1,519 | | 1,492 | | 5,523 | | 4,993 | |
| Adjustments related to unconsolidated joint ventures | 15 | | 5 | | 60 | | 13 | |
| Realized performance income | (30) | | - | | (30) | | - | |
| Adjusted EBITDAre | $120,416 | | $111,882 | | $473,950 | | $430,584 | |
Realized performance income includes fees received related to the achievement of certain performance targets in the Company’s NRP joint venture, which was dissolved in December 2025.
Financial Leverage Ratios - The Company believes its net debt to Adjusted EBITDAre, net debt to total enterprise value, and debt covenant compliance as of December 31, 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 December 31, 2025 and 2024 (in thousands):
| 2025 | 2024 |
|---|
| Net debt: | | |
| Total debt, excluding discounts, market adjustments, and deferred financing expenses | $2,456,933 | | $2,166,326 | |
| Less: Cash and cash equivalents | 5,124 | | 5,470 | |
| Total net debt | $2,451,809 | | $2,160,856 | |
| Enterprise value: | | |
| Net debt | $2,451,809 | | $2,160,856 | |
| Total equity market capitalization(1)(2) | 4,926,872 | | 5,175,286 | |
| Total enterprise value | $7,378,681 | | $7,336,142 | |
Total equity market capitalization is calculated as diluted shares multiplied by the closing market price per share, which includes 138.5 million and 138.2 million diluted shares as of December 31, 2025 and 2024, respectively, and the closing market price per share of $35.57 and $37.46 as of December 31, 2025 and 2024, respectively.
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 December 31, 2025 and 2024 (dollars in thousands):
| 2025 | 2024 |
|---|
| Net debt to Adjusted EBITDAre - annualized: | | |
| Net debt | $2,451,809 | $2,160,856 |
| Adjusted EBITDAre - annualized | 473,950 | 430,584 |
| Net debt to Adjusted EBITDAre - annualized | 5.2x | 5.0x |
| Net debt to total enterprise value: | | |
| Net debt | $2,451,809 | $2,160,856 |
| Total enterprise value | 7,378,681 | 7,336,142 |
| Net debt to total enterprise value | 33.2% | 29.5% |
Adjusted EBITDAre is based on a trailing twelve month period.
Forward-Looking Statements
Forward-looking statements notice
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; and (xx) 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, to be filed with the SEC on or around 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.
Contacts
Kimberly Green, Head of Investor Relations
(513) 692-3399 kgreen@phillipsedison.com
Hannah Harper, Director of Investor Relations
(513) 824-7122 hharper@phillipsedison.com