Phillips Edison Boosts 2025 Outlook After Strong Q3 Performance
Strategic acquisitions and record-high leasing spreads highlight PECO's continued growth momentum.
October 24, 2025
Phillips Edison Reports Strong Q3 Results and Raises Full-Year Guidance
Phillips Edison delivered another quarter of steady growth, reinforcing its strategy around grocery-anchored neighborhood centers. For Q3 2025, the company posted higher earnings and increased its full-year guidance—driven by rising lease spreads, stable occupancy, and continued acquisitions.
Net income attributable to stockholders came in at $24.7 million for the quarter, or $0.20 per diluted share. That’s more than double the figure from the same period last year. Through the first nine months of 2025, net income totaled $63.8 million, or $0.51 per share.
Nareit FFO for the quarter landed at $89.3 million( $0.64 per share), up 9.4% year-over-year. Core FFO was slightly higher at $90.6 million( $0.65 per share), reflecting a 7.3% increase. Both measures continue trending upward. Year-to-date Core FFO now stands at $269.5 million, a 9.5% jump compared to the same stretch in 2024.
Same-center NOI also moved higher. It grew 3.3% for the quarter and 3.8% year-to-date, supported by strong leasing performance across the portfolio. In Q3 alone, PECO executed 270 leases spanning 1.7 million square feet.
Key leasing metrics included:
- 23.2% renewal rent spreads
- 24.5% new lease rent spreads
- 93.9% tenant retention
- 97.6% total portfolio occupancy
The company continued to scale its portfolio. During the quarter, it acquired $21.9 million in assets, including shopping centers and land parcels. An additional $74.2 million in acquisitions closed shortly after the quarter ended. So far this year, gross acquisitions total $301.6 million, putting PECO in range of its full-year target of $350 to $450 million.
Balance sheet strength is a theme. At quarter-end, PECO had $977 million in liquidity, most of which was available borrowing capacity. Net debt to adjusted EBITDAre stood at 5.3x, and 95% of total debt was fixed-rate with a weighted average maturity of 5.4 years.
With these results in hand, PECO raised its full-year guidance:
- Nareit FFO: $2.51–$2.55 per share
- Core FFO: $2.57–$2.61 per share
- Same-center NOI growth: 3.10%–3.60% (unchanged)
As demand holds strong for grocery-anchored retail and leasing spreads hit record levels, PECO is staying focused on execution. The company’s current positioning supports further earnings growth, with disciplined acquisitions and high occupancy continuing to drive results through year-end.
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