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Phillips Edison & Company, Inc. (PECO) Q2 2026 Earnings Call July 24, 2026 12:00 PM EDT

Company Participants

Kimberly Green - Senior VP & Head of Investor Relations
Jeffrey Edison - Co-Founder, Chairman & CEO
Robert Myers - President
John Caulfield - Executive VP, CFO & Treasurer

Conference Call Participants

Andrew Reale - BofA Securities, Research Division
Haendel St. Juste - Mizuho Securities USA LLC, Research Division
Caitlin Burrows - Goldman Sachs Group, Inc., Research Division
Floris Gerbrand Van Dijkum - Ladenburg Thalmann & Co. Inc., Research Division
Michael Griffin - Evercore ISI Institutional Equities, Research Division
James Feldman - Wells Fargo Securities, LLC, Research Division
Todd Thomas - KeyBanc Capital Markets Inc., Research Division
Michael Goldsmith - UBS Investment Bank, Research Division
Richard Hightower - Barclays Bank PLC, Research Division
Ronald Kamdem - Morgan Stanley, Research Division
Michael Mueller - JPMorgan Chase & Co, Research Division

Presentation

Operator

Good day, and welcome to the Phillips Edison & Company's Second Quarter 2026 Earnings Call. Please note that this call is being recorded. I will now turn the call over to Kimberly Green, Head of Investor Relations. Kimberly, you may begin.

Kimberly Green
Senior VP & Head of Investor Relations

Thank you. I'm joined today by our Chairman and CEO, Jeff Edison; President, Bob Myers; and CFO, John Caulfield.

As a reminder, today's discussion may contain forward-looking statements about the company's view of future business and financial performance, including forward earnings guidance and future market conditions. These are based on management's current beliefs and expectations and are subject to various risks and uncertainties as described in our SEC filings. And our discussion today will reference certain non-GAAP financial measures. Information regarding our use of these measures and reconciliations of these measures to our GAAP results are available in our earnings press release and supplemental information packet, both of which have been posted to our website.

For the quarter ended June 2026, Phillips Edison & Company, Inc. (PECO - Free Report) reported revenue of $189.62 million, up 6.7% over the same period last year. EPS came in at $0.69, compared to $0.10 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $190.47 million, representing a surprise of -0.45%. The company delivered an EPS surprise of +1.47%, with the consensus EPS estimate being $0.68.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Phillips Edison & Company performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenues- Rental income: $184.45 million versus the three-analyst average estimate of $183.54 million. The reported number represents a year-over-year change of +6.3%.Revenues- Other property income: $1.11 million versus the three-analyst average estimate of $1.08 million. The reported number represents a year-over-year change of +14.9%.Revenues- Fees and management income: $4.05 million versus $3.51 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +22.3% change.Net income (loss) per share- diluted: $0.33 versus $0.19 estimated by two analysts on average.View all Key Company Metrics for Phillips Edison & Company here>>>

Shares of Phillips Edison & Company have returned +2.9% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

CINCINNATI, July 23, 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 reported financial and operating results for the period ended June 30, 2026 and provided updated 2026 earnings guidance. For the three and six months ended June 30, 2026, net income attributable to stockholders was $41.1 million, or $0.33 per diluted share, and $71.5 million, or $0.56 per diluted share, respectively.

Wall Street analysts expect Phillips Edison & Company, Inc. (PECO - Free Report) to post quarterly earnings of $0.68 per share in its upcoming report, which indicates a year-over-year increase of 6.3%. Revenues are expected to be $190.47 million, up 7.2% from the year-ago quarter.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

With that in mind, let's delve into the average projections of some Phillips Edison & Company metrics that are commonly tracked and projected by analysts on Wall Street.

Analysts expect 'Revenues- Rental income' to come in at $183.54 million. The estimate points to a change of +5.8% from the year-ago quarter.

According to the collective judgment of analysts, 'Revenues- Fees and management income' should come in at $3.51 million. The estimate suggests a change of +5.8% year over year.

Analysts forecast 'Depreciation and amortization' to reach $64.66 million.

View all Key Company Metrics for Phillips Edison & Company here>>>

Shares of Phillips Edison & Company have demonstrated returns of +4.3% over the past month compared to the Zacks S&P 500 composite's +0.3% change. With a Zacks Rank #2 (Buy), PECO is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

The Zacks REIT and Equity Trust - Retail industry is positioned for growth as demand for necessity-based shopping strengthens. Properties anchored by grocers, discount retailers, healthcare providers and other essential tenants benefit from steady traffic and leasing activity. Constrained new development supports occupancy, rental growth and asset values.

Physical stores remain vital as shopping venues, pickup and return locations, and fulfillment centers, increasing the appeal of well-located retail space. Phillips Edison & Company, Inc. (PECO - Free Report) , Tanger Inc. (SKT - Free Report) and American Assets Trust, Inc. (AAT - Free Report) could benefit from these trends. However, economic and geopolitical uncertainty may weigh on discretionary spending and leasing demand.

Industry Description The Zacks REIT and Equity Trust - Retail industry comprises REITs that own, develop, manage and lease various retail properties, including regional malls, outlet centers, grocery-anchored shopping venues and power centers with big-box retailers. Net lease REITs focus on freestanding properties, where tenants bear rent and most operating expenses. Retail REIT performance is significantly impacted by economic conditions, employment levels and consumer spending trends. Key drivers of demand include the geographic location of properties and the demographics of surrounding trade areas. While the industry faced significant challenges from declining foot traffic, store closures and retailer bankruptcies in the past, it is now experiencing a rebound, driven by renewed consumer interest in in-store shopping, signaling a positive shift in the retail landscape.

What's Shaping the Future of the REIT and Equity Trust - Retail Industry? Need-Based and Value Retail Will Lead Growth: Retail REITs are likely to benefit most from tenants that serve household needs. Grocery stores, discount chains, health and wellness businesses and other value-focused retailers attract customers because they offer useful products at practical prices. These businesses generate repeat visits, which helps shopping centers maintain traffic and supports nearby tenants. As retailers become careful about where they open new stores, landlords with the right tenant mix should remain in a stronger position. Properties anchored by essential and value-oriented businesses can offer stable leasing demand and are better protected when consumer confidence weakens. This trend gives landlords a chance to fill available space with tenants that match changing shopping habits. Retail REITs that focus on convenience, affordability, and everyday services should therefore be better placed to grow and maintain occupancy.

Limited New Supply Will Support Existing Properties: The limited amount of new retail construction is another positive force shaping the industry. With fewer projects entering the market, existing shopping centers face less competition for tenants. Retailers looking to expand have a limited choice of locations, which is helping landlords protect occupancy and maintain rental growth. This supply advantage is useful because the market is less likely to become oversupplied. Owners are also focused on improving properties, updating layouts and bringing in stronger tenants rather than competing with newly built centers. Well-located properties with flexible space and local traffic are expected to continue to hold their value. For retail REITs, limited construction creates a supportive operating environment and gives established landlords more control over how they improve and position their portfolios.

Consumer Pressure May Create Uneven Results: The main concern is that consumer spending may become less reliable as households face higher living costs and economic uncertainty. Shoppers may continue to spend, but they are likely to become more selective and place importance on essentials, discounts and clear value. This could create a wider gap between different types of retailers. Businesses that depend on optional purchases may delay expansion, close weaker stores, or ask for more flexible lease terms. As a result, retail REIT performance may become less even across the sector. Landlords with strong finances, adaptable properties and tenants that meet everyday needs should manage the pressure effectively. However, owners with greater exposure to discretionary retail may face slower leasing, weaker demand and a risk of vacancies if consumer caution continues.

Zacks Industry Rank Indicates Bright Prospects The Zacks REIT and Equity Trust - Retail industry is housed within the broader Zacks Finance sector. It carries a Zacks Industry Rank #95, which places it in the top 38% of 247 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates robust near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of the upward funds from operations (FFO) per share outlook for the constituent companies in aggregate. Looking at the aggregate FFO per share estimate revisions, it appears that analysts are gaining confidence in this group’s growth potential. Over the past year, the industry’s FFO per share estimates for 2026 and 2027 have moved 2.20% and 3.40% north, respectively.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.

Industry Outperforms Sector and S&P 500 The REIT and Equity Trust - Retail Industry has outperformed the broader Zacks Finance sector as well as the S&P 500 composite so far in the year.

The industry has risen 20.1% during this period compared with the S&P 500’s increase of 10.9% and the broader Finance sector’s growth of 7.1%.

Year-To-Date Price Performance

Industry's Current Valuation On the basis of the forward 12-month price-to-FFO, which is a commonly used multiple for valuing retail REITs, we see that the industry is currently trading at 16.84X compared with the S&P 500’s forward 12-month price-to-earnings (P/E) of 21.21X. The industry is trading marginally below the Finance sector’s forward 12-month P/E of 16.85X. These are shown in the chart below.

Forward 12 Month Price-to-FFO (P/FFO) Ratio

 
Over the last five years, the industry has traded as high as 18.72X and as low as 12.21X, with a median of 15.15X.

3 Retail REIT Stocks to Buy Phillips Edison & Company: This REIT, based in Cincinnati, OH, is focused on grocery-anchored neighborhood centers and complementary everyday retail. It owns 326 properties totaling 36.9 million square feet across 31 states. The portfolio is 97% leased, with 94% of annualized base rent from grocery-anchored centers and 74% from necessity-based retailers.

PECO presents a resilient growth story built on essential spending, retailer demand and disciplined capital allocation. For this retail REIT, 82% of rent comes from centers anchored by the number-one or number-two grocer by sales, while portfolio markets average $101,000 in three-mile household income. Strong occupancy supports pricing power, with comparable renewal and new-lease spreads of 21.2% and 36.2% in the first quarter of 2026. A mostly fixed-rate debt profile, liquidity and development yields near 9-12% support durable cash-flow growth.

PECO currently carries a Zacks Rank #2 (Buy). Over the past three months, the Zacks Consensus Estimate for its 2026 and 2027 FFO per share has been revised upward to $2.76 and $2.90, suggesting increases of 6.15% and 5.14% year over year, respectively. The stock has risen 8.8% over the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: PECO

Tanger: This Greensboro, N.C.-based REIT specializes in outlet and open-air retail destinations. With 45 years of experience, it operates 38 outlet centers and four lifestyle centers spanning nearly 17 million square feet across 22 U.S. states and Canada. Its properties host more than 3,000 stores, representing more than 800 brands and retail concepts, creating diversified shopping environments.

 Tanger combines resilient operations, leasing momentum and balance-sheet flexibility. Portfolio occupancy stands near 97%, while average tenant sales reached $482 per square foot and blended rent spreads were 10.5% in the first quarter of 2026. Tenant affordability remains supported by a 9.7% occupancy-cost ratio. With net debt to adjusted EBITDAre of 4.8 times, entirely fixed-rate debt and more than $1 billion of liquidity, Tanger has the capacity to reinvest, pursue acquisitions and support shareholder returns.

Tanger currently has a Zacks Rank #2. The Zacks Consensus Estimate for its 2026 FFO per share has been raised marginally over the past month to $2.48, indicating a 6.44% year-over-year increase. The stock has rallied 11% over the past three months.

Price and Consensus: SKT

American Assets Trust: This REIT, headquartered in San Diego, CA, has a diversified portfolio concentrated in high-barrier coastal markets. Its 31 properties span office, retail, multifamily and mixed-use assets across California, Washington, Oregon, Hawaii and Texas, totaling about 6.8 million square feet, 2,302 multifamily units and 369 hotel rooms. Its platform combines long-standing experience with in-house leasing, development and operations expertise.

AAT offers a compelling mix of asset quality, diversification and embedded upside. The portfolio benefits from locations with strong demographics, limited new supply and barriers to entry. An investment-grade balance sheet, 96% unsecured debt and roughly $618 million of liquidity provide flexibility, while no significant maturities until 2027 reduce refinancing pressure. Lease-up potential across the portfolio could add meaningful incremental FFO at stabilization.

American Assets Trust currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2026 and 2027 FFO per share has witnessed upward revisions to $2.03 and $2.11, indicating a 1.50% and 3.94% increase year over year, respectively. The stock has appreciated 24.1% over the past three months.

Price and Consensus: AAT

Note: Funds from operations (FFO) is a widely used metric to gauge the performance of REITs rather than net income as it indicates cash flow from their operations. FFO is obtained after adding depreciation and amortization to earnings and subtracting the gains on sales.

Investors looking for stocks in the REIT and Equity Trust - Retail sector might want to consider either Phillips Edison & Company, Inc. (PECO - Free Report) or Federal Realty Investment Trust (FRT - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Phillips Edison & Company, Inc. has a Zacks Rank of #2 (Buy), while Federal Realty Investment Trust has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PECO has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

PECO currently has a forward P/E ratio of 15.07, while FRT has a forward P/E of 16.42. We also note that PECO has a PEG ratio of 2.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FRT currently has a PEG ratio of 2.94.

Another notable valuation metric for PECO is its P/B ratio of 2.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FRT has a P/B of 3.31.

These metrics, and several others, help PECO earn a Value grade of B, while FRT has been given a Value grade of C.

PECO has seen stronger estimate revision activity and sports more attractive valuation metrics than FRT, so it seems like value investors will conclude that PECO is the superior option right now.

June 23, 2026 16:05 ET  | Source: Phillips Edison & Company, Inc.

CINCINNATI, June 23, 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, will announce its Second Quarter 2026 earnings results on Thursday, July 23, 2026, after the market closes. PECO’s earnings release and financial supplement will be posted on the Investor Relations section of the Company’s website at https://investors.phillipsedison.com/. Chairman and Chief Executive Officer Jeff Edison, President Bob Myers and Chief Financial Officer John Caulfield will host an earnings conference call, which will also be webcast, on Friday, July 24, 2026, at 12:00 p.m. ET.

Second Quarter 2026 Earnings Conference Call and Webcast Details:

Date: Friday, July 24, 2026Time: 12:00 p.m. Eastern TimeParticipant Toll-Free Dial-In Number: (800) 715-9871Participant Toll Dial-In Number: (646) 307-1963Conference ID: 4551083Webcast: Second Quarter 2026 Webcast Link A webcast replay will be available approximately one hour after the conclusion of the event using the same link. Webcasts are archived on PECO’s Investor Relations website.

Connect with PECO
For additional information, please visit https://www.phillipsedison.com/
Follow PECO on:
X at https://x.com/PhillipsEdison
Facebook at https://www.facebook.com/phillipsedison.co
Instagram at https://www.instagram.com/phillips.edison/; and
Find PECO on LinkedIn at https://www.linkedin.com/company/phillipsedison&company

About Phillips Edison & Company
Phillips Edison & Company, Inc. (“PECO”) is one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO’s centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO’s top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of March 31, 2026, PECO managed 326 shopping centers, including 299 wholly-owned centers comprising 33.7 million square feet across 31 states and 27 shopping centers owned in three institutional joint ventures. PECO is focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.

PECO uses, and intends to continue to use, its Investors website, which can be found at https://investors.phillipsedison.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. 

Investors:
Kimberly Green, Head of Investor Relations
(513) 692-3399, [email protected]

Phillips Edison & Company, Inc. (PECO - Free Report) came out with quarterly funds from operations (FFO) of $0.69 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to FFO of $0.65 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an FFO surprise of +2.92%. A quarter ago, it was expected that this company would post FFO of $0.66 per share when it actually produced FFO of $0.66, delivering no surprise.

Over the last four quarters, the company has surpassed consensus FFO estimates three times.

Phillips Edison & Company, which belongs to the Zacks REIT and Equity Trust - Retail industry, posted revenues of $190.74 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.72%. This compares to year-ago revenues of $178.31 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.

Phillips Edison & Company shares have added about 7.5% since the beginning of the year versus the S&P 500's gain of 4.3%.

What's Next for Phillips Edison & Company?While Phillips Edison & Company has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Phillips Edison & Company was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.68 on $188.74 million in revenues for the coming quarter and $2.74 on $763.2 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Retail is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Simon Property (SPG - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 11.

This shopping mall real estate investment trust is expected to post quarterly earnings of $2.98 per share in its upcoming report, which represents a year-over-year change of +1%. The consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level.

Simon Property's revenues are expected to be $1.57 billion, up 6.4% from the year-ago quarter.

Phillips Edison & Company, Inc. (PECO) Q1 2026 Earnings Call Transcript

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Based in Cincinnati, Phillips Edison & Company, Inc. (PECO - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 13.44%. Currently paying a dividend of $0.33 per share, the company has a dividend yield of 3.22%. In comparison, the REIT and Equity Trust - Retail industry's yield is 4%, while the S&P 500's yield is 1.39%.

Looking at dividend growth, the company's current annualized dividend of $1.30 is up 3.8% from last year. Over the last 5 years, Phillips Edison & Company, Inc. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.79%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Phillips Edison & Company's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, PECO expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $2.75 per share, which represents a year-over-year growth rate of 5.77%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PECO is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

May 14, 2026 16:05 ET  | Source: Phillips Edison & Company, Inc.

CINCINNATI, May 14, 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, will host its ICSC Recap webcast on Tuesday, May 26, 2026, at 2:00 p.m. Eastern Time. The event will be webcast only.

The PECO team will provide a recap of ICSC Las Vegas and discuss the current leasing environment. The webcast will feature PECO leaders from leasing, acquisitions and portfolio management.

ICSC is the member organization for the advancement of the shopping center industry. ICSC Las Vegas is a premier event that takes place annually in May. It is a two- to three-day gathering of dealmakers and industry experts who are driving innovation and evolution in commercial real estate.

Webcast Details: ICSC Recap with PECO

Date: Tuesday, May 26, 2026

Time: 2:00 p.m. Eastern Time

Webcast with Live Q&A: ICSC Recap with PECO 2026

A replay of the webcast will be posted within 24 hours after the conclusion of the live event to the Company’s website at https://investors.phillipsedison.com/.

Connect with PECO
For additional information, please visit https://www.phillipsedison.com/    
Follow PECO on:
X at https://x.com/PhillipsEdison
Facebook at https://www.facebook.com/phillipsedison.co
Instagram at https://www.instagram.com/phillips.edison/; and
Find PECO on LinkedIn at https://www.linkedin.com/company/phillipsedison&company/

About Phillips Edison & Company
Phillips Edison & Company, Inc. (“PECO”) is one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO’s centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO’s top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of March 31, 2026, PECO managed 326 shopping centers, including 299 wholly-owned centers comprising 33.7 million square feet across 31 states and 27 shopping centers owned in three institutional joint ventures. PECO is focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.

PECO uses, and intends to continue to use, its Investors website, which can be found at https://investors.phillipsedison.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.

Investors:
Kimberly Green, Head of Investor Relations
(513) 692-3399, [email protected]

Media:
Ben Williamson, Senior Vice President of Marketing
(513) 338-2899, [email protected]         

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Phillips Edison & Company, Inc. (PECO - Free Report) is headquartered in Cincinnati, and is in the Finance sector. The stock has seen a price change of 11.67% since the start of the year. The company is paying out a dividend of $0.33 per share at the moment, with a dividend yield of 3.27% compared to the REIT and Equity Trust - Retail industry's yield of 3.9% and the S&P 500's yield of 1.43%.

Looking at dividend growth, the company's current annualized dividend of $1.30 is up 3.8% from last year. Over the last 5 years, Phillips Edison & Company, Inc. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.79%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Phillips Edison & Company's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, PECO expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $2.75 per share, representing a year-over-year earnings growth rate of 5.77%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, PECO is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Phillips Edison & Company, Inc. (PECO) Discusses Insights and Key Takeaways From ICSC Recap With Focus on Leasing and Acquisitions Transcript

PECO Pullback Presents a Retail REIT Worth Shopping ForPhillips Edison & Company, Inc. NASDAQ: PECO executives said demand for grocery-anchored shopping centers remains strong following the company’s meetings at ICSC Las Vegas, citing robust retailer expansion plans, limited supply and continued opportunities for acquisitions.

During an ICSC recap webcast, Kimberly Green, senior vice president and head of investor relations, said the retail real estate conference drew nearly 35,000 attendees, more than 850 exhibitors and more than 5,000 retailers. Phillips Edison hosted more than 400 meetings over two days, using the event to negotiate leases, discuss pending deals, evaluate acquisition opportunities and strengthen retailer relationships.

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Vasili Lyhnakis, senior vice president of leasing and portfolio management, said the event reinforced that the company’s strategy is “working” and that the external environment continues to support it. He said retailers remain focused on grocery-anchored shopping centers in suburban markets with leading grocers, while limited supply has helped Phillips Edison maintain pricing power.

“The tone overall was very, very positive, and we feel like we're very well positioned going forward,” Lyhnakis said.

Retailers Continue to Seek Grocery-Anchored Space Lyhnakis said Phillips Edison’s portfolio is 97% occupied, with leasing rates at all-time highs and a high retention rate. He said the company is seeing no signs of slowing demand, particularly from retailers seeking necessity-based, suburban retail locations.

Addressing concerns about the consumer backdrop, including inflation, energy prices and credit conditions, Lyhnakis said the company benefits from its grocery-anchored focus. He said grocer sales per square foot in Phillips Edison’s portfolio have increased more than 46% since 2019, helping drive traffic to its centers.

He also said 74% of the company’s annualized base rent comes from necessity-based goods and services, and that the company’s demographics are above the U.S. median income level.

Lyhnakis said retailers are increasingly selective about real estate and are willing to wait for higher-quality locations rather than invest in weaker centers. He said the company did not hear from retailers at ICSC that they were slowing store-opening plans.

“I’ve been leasing here for over 20 years. I’ve never seen the demand this strong,” Lyhnakis said.

QSR, Fitness and Wellness Categories Drive Leasing Activity Marissa Visconsi, vice president of leasing, said retailers are expanding with a sharper focus on unit economics and site efficiency. She pointed to drive-thru-oriented quick-service restaurant concepts as an area of strong demand, citing 7 Brew’s growth from roughly 100 to more than 1,000 locations in a few years and average unit volumes of about $2.7 million.

Visconsi said 2025 has been productive from a leasing standpoint, with more than 60 new leases executed across fitness, QSR, service and medical users. She said retailers are still expanding, but growth is “increasingly disciplined.”

Ashley Casey, senior director of national accounts leasing, said fitness and salon suite concepts are changing how they use space in neighborhood centers. She said LA Fitness is targeting around 40 new deals in 2026, while Planet Fitness is planning roughly 180 openings. Casey said grocers have become more receptive to fitness tenants because they can drive repeat visits and increase dwell time.

Casey also cited salon suite operators such as Sola Salons and IMAGE Studios, which she said continue to expand in high-income suburban trade areas. She described the format as “leases within leases,” with one larger space housing multiple small beauty operators.

On restaurant demand, Casey said national accounts meetings with QSR users were growth-oriented and increasingly focused on 2027 and 2028. She said Dave’s Hot Chicken told the company it has 433 stores open, plans 43 more in 2026 and is targeting 145 new store openings in 2027, with average unit volumes near $3 million.

Acquisition Pipeline Remains Active Despite Competitive Pricing David Wik, senior vice president and head of acquisitions and dispositions, said retail is attracting significant capital, but Phillips Edison continues to find acquisition opportunities. He said the company recently affirmed its 2026 gross acquisition guidance of $400 million to $500 million.

Wik said Phillips Edison has acquired $185 million of assets year to date and has more than $200 million under contract. He said the company could end up above the midpoint of its acquisition guidance, though he emphasized it remains early.

Wik said pricing remains challenging and cap rates have compressed over the past 12 to 18 months, especially for high-quality grocery-anchored centers in growth markets. However, he said it is difficult to see cap rates compressing much further given interest rates, though larger deals, portfolio transactions and recapitalizations could see additional compression.

He said Phillips Edison’s national platform allows it to pivot among markets and grocer banners when pricing becomes too efficient in certain regions. The company’s typical acquisition “sweet spot” is the $20 million to $50 million range, where Wik said trades are less efficient than larger deals.

Wik also discussed Phillips Edison’s expansion into “everyday retail,” saying the company has built a portfolio of more than $220 million in that category over the past 24 months. He said the company targets a 9% unlevered internal rate of return for grocery-anchored acquisitions and 10% unlevered IRRs for everyday retail centers.

Everyday Retail and Grocer Relationships Highlighted Lyhnakis described everyday retail as an extension of the company’s existing leasing model, calling it “more neighbors” coming into the portfolio. He said those properties often include highly visible roadside spaces near existing grocery-anchored shopping centers, creating opportunities to mark rents to market.

Casey said the appeal of everyday retail acquisitions is the leasing upside embedded in the properties. She said the company looks for tenants that strengthen the broader ecosystem around daily needs traffic drivers, particularly grocers.

Visconsi cited Plaza West Covina in West Covina, California, which she said had two vacant spaces at closing. She said one space advanced to lease with a Mexican QSR concept, while business terms were finalized with LaserAway at ICSC for the second vacancy, with the asset expected to reach full occupancy within a few months of acquisition.

Lyhnakis said Phillips Edison held more than 30 grocer meetings during ICSC, including with Kroger, Publix, Albertsons, Safeway, Harris Teeter, Whole Foods and Walmart. He said grocer relationships remain central to both leasing and acquisitions, including diligence on potential purchases and value-creation opportunities.

Leasing Process Speeds Up Executives said speed has become a larger factor in leasing decisions. Visconsi said many retailers are prioritizing speed to open and speed to revenue, even as rent economics remain important. She said some concepts are bringing in construction support and permit expediters early, while others are targeting second-generation restaurant space to reduce build-out time.

Lyhnakis said lease turnaround times have shortened, with some leases now being signed in two weeks or less compared with the 30- to 60-day timelines the company had often seen previously.

Casey also said Phillips Edison is using artificial intelligence and data in leasing to process more information faster, including retailer targeting, void analysis, merchandising strategy, demographics, traffic patterns and category trends. She said AI is not replacing team judgment but is helping improve speed and precision in markets where quality space is scarce.

About Phillips Edison & Company, Inc. NASDAQ: PECOPhillips Edison & Company, Inc is a publicly traded real estate investment trust (REIT) that specializes in the acquisition, ownership and operation of grocery-anchored, necessity-based shopping centers. The company's investment strategy is centered on properties that benefit from everyday consumer demand, seeking to deliver stable cash flows through long-term, triple-net leases with national and regional tenants in the grocery, drugstore and essential retail sectors.

In addition to its core retail portfolio, Phillips Edison & Company provides integrated services covering property management, asset management, leasing, development and acquisition sourcing.

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