Phillips Edison & Company (PECO) Q1 2025 earnings summary

Executive summary

• Net income attributable to stockholders rose 48.9% year-over-year to $26.3 million for Q1 2025, driven by higher rental income and portfolio growth.

• Delivered strong first quarter growth with same-center NOI up 3.9% year-over-year and robust leasing momentum.

• Portfolio occupancy remained strong at 97.1%, with a 91% retention rate and average remaining lease term of 4.5 years.

• Portfolio is focused on necessity-based retail, with 71% of ABR from such tenants and 95% from grocery-anchored centers.

• Affirmed full-year 2025 guidance for FFO and acquisition targets, with management confident in long-term growth and risk mitigation.

Financial highlights

• Q1 2025 Nareit FFO was $89 million ($0.64/share), up 11.2% year-over-year; Core FFO was $90.8 million ($0.65/share), up 11.2% year-over-year, both including a one-time lease termination fee of $0.01/share.

• Rental income grew 10.2% year-over-year to $174.2 million, with $8.2 million from acquisitions and $7.8 million from same-center growth.

• Same-center NOI increased 3.9% to $115.1 million, with occupancy steady at 97.2%.

• Adjusted EBITDAre for Q1 2025 was $117.0 million, up 11% year-over-year.

• $146 million in acquisitions completed in Q1.

Outlook and guidance

• Full-year 2025 Nareit FFO guidance: $2.47–$2.54 per share, up 5.7% at midpoint; Core FFO guidance: $2.52–$2.59 per share, up 5.1% at midpoint.

• 2025 same-center NOI growth guidance of 3.0%–3.5%.

• Gross acquisitions guidance of $350–$450 million for 2025.

• No equity issuance assumed in 2025; leverage expected to remain in low to mid-5x net debt/EBITDA.

• Capital improvements, redevelopment, and development obligations to be met with operating cash flows, asset sales, or credit facility borrowings.