Phillips Edison & Company, Inc. (Nasdaq: PECO) delivered strong first-quarter results, reporting steady revenue growth, expanded leasing activity, and strategic portfolio moves. The company’s focus on necessity-based retail continues to drive performance, positioning it for further growth in 2025.

Steady Revenue Growth and Improved Income

Phillips Edison brought in $178.3 million in total revenue for the quarter ending March 31, up 10.5% compared to last year. Rental income rose by $16.1 million, backed by higher base rents, additional lease buyout income, and stronger tenant recoveries. Acquisitions made over the past year also contributed to the increase.

Expenses grew in line with expansion, reaching $128.4 million, mainly due to property operations, taxes, and depreciation tied to new properties. Net income climbed nearly 47% to $28.9 million. Income attributable to common stockholders rose to $26.3 million, up from $17.7 million a year earlier.

The company’s Same-Center Net Operating Income (NOI) rose 3.9% year-over-year, reinforcing the strength of its core real estate portfolio.

Leasing Activity and Portfolio Highlights

Leased occupancy across Phillips Edison’s portfolio stayed high at 97.1%. Inline spaces, which are smaller retail spaces, reached a 94.6% leased rate. Retention remained solid, with 91.4% of tenants choosing to renew.

New lease signings totaled 326,000 square feet, and renewal and extension deals covered more than 1.2 million square feet. Comparable new leases recorded an average 28.1% rent increase, while renewals delivered a 20.8% rent lift. These results reflect the company’s ability to drive pricing even in a competitive environment.

Diversification across tenants also remained a key strength. No tenant accounted for more than 6% of total rent, and about 71% of annualized rent came from businesses offering day-to-day necessities.