Phillips Edison Lifts Full-Year Outlook
Robust leasing activity, rising occupancy, and over $287 million in acquisitions anchor PECO’s momentum.
July 25, 2025
Growth That’s Measurable—and Ongoing
Phillips Edison & Company (PECO) is pushing forward with confidence. After a strong second quarter, the company has raised its full-year 2025 earnings guidance, citing consistent demand across its grocery-anchored retail centers and continued expansion across key U.S. markets.
In Q2, PECO reported net income of $12.8 million, or $0.10 per diluted share. Core metrics told a clearer story of performance:
- Nareit FFO rose to $86.0 million, up nearly 10% from the prior year.
- Core FFO climbed to $88.2 million, an increase of over 10% year-over-year.
That strength is showing up in the updated guidance. PECO now expects:
- Full-year Nareit FFO per share to grow 6.3% year-over-year at the midpoint.
- Core FFO per share to increase by 6.0%.
- Same-center NOI growth between 3.10% and 3.60%.
Leasing Activity and Portfolio Momentum
PECO is staying active in the market, locking in 276 leases during the quarter across roughly 1.4 million square feet. Rent spreads were notably strong— 34.6% for new leases and 19.1% for renewals—signaling sustained tenant demand across its footprint.
Occupancy remains high:
- Total leased occupancy: 97.4%
- Inline leased occupancy: 94.8%
- Same-center leased occupancy followed similar trends
On the acquisition front, PECO closed six property deals totaling $133.3 million during Q2. It added another $7.6 million shopping center shortly after quarter-end. Altogether, the company has completed $287 million in acquisitions at its share so far this year—moving steadily toward its $350 million to $450 million annual target.
Financial Position and Liquidity
As of June 30, PECO had $972 million in liquidity, supported by a nearly untapped $1 billion credit facility. Debt remained 95% fixed-rate, helping shield the balance sheet from interest rate volatility. The company’s net debt to adjusted EBITDAre landed at 5.4x, providing a strong base for continued expansion.
In June, PECO completed a $350 million debt offering maturing in 2032. This move extended its average debt maturity to 5.7 years and added long-term capital at a fixed 5.250% rate.
What’s Next
PECO’s results reflect a business executing with consistency. With strong leasing trends, disciplined acquisitions, and clear earnings visibility, the company is in position to meet its upgraded 2025 targets. Its footprint now includes more than 300 wholly-owned centers and continued growth is underway.
Looking ahead, PECO appears focused on delivering long-term performance, backed by stable market demand and a portfolio built for resilience.
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