Phillips Edison & Company (PECO) Q2 2026 earnings summary

Executive summary

• Net income attributable to stockholders rose to $41.1 million for Q2 2026, up from $12.8 million in Q2 2025, with total revenues for Q2 2026 increasing 6.7% year-over-year to $189.6 million, driven by higher rental income and management fees.

• Nareit FFO per share grew 8.1% year-over-year to $0.67, Core FFO per share rose 7.8% to $0.69, and same-center NOI increased 3.8% year-over-year.

• Portfolio consists of 330 grocery-anchored neighborhood centers, 97% leased, with $8.4B enterprise value as of June 30, 2026, and record-high leased inline occupancy of 95.5%.

• High demand for necessity-based retail drove occupancy gains, rent spreads, and operational excellence, with 304 leases executed in Q2 2026.

• Raised $92 million in equity during June and July to fund long-term growth.

Financial highlights

• Q2 2026 net income: $41.1 million ($0.33/share) vs. $12.8 million ($0.10/share) in Q2 2025; Nareit FFO: $93.7 million ($0.67/share), Core FFO: $95.5 million ($0.69/share).

• Same-center NOI increased 3.8% year-over-year, driven by higher average rents and economic occupancy.

• Leased portfolio occupancy at 97.3%, anchor occupancy at 98.4%, and record in-line occupancy at 95.5%.

• Comparable renewal rent spreads at 21.2%; new rent spreads at 33.7%.

• Rental income for Q2 2026 was $184.5 million, up 6.3% year-over-year.

Outlook and guidance

• Raised full-year 2026 guidance: Nareit FFO per share up 6.3% at midpoint, Core FFO per share up 6.2%, and same-center NOI growth guidance midpoint to 3.7%.

• Full-year 2026 net income per share guidance raised to $0.95–$0.97; Nareit FFO per share guidance: $2.67–$2.72; Core FFO per share: $2.73–$2.79.

• Gross acquisitions guidance increased to $500 million–$600 million; dispositions targeted at $100 million–$200 million.

• No additional equity issuance assumed in current guidance.

• Management notes macroeconomic uncertainty from interest rate volatility, inflation, and geopolitical risks.