Phillips Edison & Company, Inc. (PECO) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy PECO?
Source: SeekingAlpha
NAREIT FFO per share $0.64 per diluted share in Q4 2025, reflecting a 7.2% year-over-year growth. This growth is attributed to the strong performance of the grocery-anchored and necessity-based portfolio.
Core FFO per share $0.66 per diluted share in Q4 2025, reflecting a 7% year-over-year growth. The increase is driven by strong leasing activity and high occupancy rates.
Same-center NOI growth 3.8% year-over-year growth in 2025. This growth is due to strong rent escalations, high retention rates, and robust leasing spreads.
Portfolio occupancy 97.3% at year-end 2025, with anchor occupancy at 98.7% and in-line leased occupancy at a record high of 95.1%. The high occupancy rates are driven by strong demand for necessity-based retail and grocery-anchored centers.
Comparable renewal rent spreads 20% in Q4 2025. This reflects the strong pricing power and demand for PECO's high-quality portfolio.
Comparable new leasing rent spreads 34.3% in Q4 2025. This is attributed to the positive retail environment and strong demand for PECO's centers.
Development and redevelopment projects 20 projects under active construction with a total investment of approximately $70 million, yielding between 9% and 12%. Additionally, 23 projects were stabilized in 2025, delivering incremental NOI of approximately $6.8 million annually.
Bad debt Approximately 78 basis points of revenue in 2025, expected to remain consistent in 2026. This is due to the diversified neighbor mix and strong retailer demand.
Liquidity Approximately $925 million as of December 31, 2025, supporting acquisition plans and growth initiatives.
Net debt to adjusted EBITDA 5.2x at year-end 2025, reflecting a stable financial position.
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Analyst Views on PECO
Wall Street analysts forecast PECO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PECO is 39.29 USD with a low forecast of 36.00 USD and a high forecast of 43.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
2 Buy
6 Hold
0 Sell
Hold
Current: 37.820
Low
36.00
Averages
39.29
High
43.00
Current: 37.820
Low
36.00
Averages
39.29
High
43.00
About PECO
Phillips Edison & Company, Inc. is a real estate investment trust (REIT). The Company's business is conducted through Phillips Edison Grocery Center Operating Partnership I, L.P. It invests primarily in omnichannel grocery-anchored neighborhood and community shopping centers that have a mix of creditworthy national, regional, and local retailers that sell necessity-based goods and services in demographic markets throughout the United States. Its portfolio primarily consists of neighborhood centers anchored by the #1 or #2 grocer tenants by sales within their respective formats by trade area. The Company manages approximately 329 shopping centers, including 303 wholly owned shopping centers and 26 shopping centers owned through joint ventures, which comprise approximately 36.8 million square feet in 31 states.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Phillips Edison & Company Q4 2025 Earnings Call Highlights
- Strong Financial Performance: In Q4 2025, Phillips Edison reported a 7.2% increase in NAREIT FFO per share and a 7% rise in core FFO per share, alongside a 3.8% growth in same-center NOI, reflecting robust market performance and profitability.
- High Demand Leasing Activity: The company executed 1,026 leases totaling approximately 6 million square feet in 2025, ending the year with a portfolio occupancy of 97.3%, including a strong anchor occupancy of 98.7%, indicating strong demand for necessity-based retail.
- Liquidity and Acquisition Plans: As of December 31, 2025, the company had approximately $925 million in liquidity to support its acquisition plans of $400 million to $500 million in 2026, demonstrating flexibility in capital allocation and strategic foresight.
- Optimistic Future Outlook: The company anticipates a 5.5% increase in NAREIT FFO per share for 2026, with same-center NOI growth projected between 3% and 4%, indicating management's confidence in maintaining a competitive edge in the necessity retail sector.
See More
Phillips Edison Q4 Earnings Exceed Expectations
- Strong Financial Performance: Phillips Edison (PECO) reported a Q4 FFO of $0.66, beating expectations by $0.01, indicating robust profitability in the current market environment.
- Significant Revenue Growth: The company achieved $187.9 million in revenue for Q4, an 8.6% year-over-year increase, surpassing market expectations by $5.85 million, reflecting solid growth and sustained demand in the retail sector.
- 2026 Guidance Outlook: PECO projects a net income per share of $0.74 to $0.77 for 2026, with Nareit FFO per share expected to be between $2.65 and $2.71, showcasing the company's optimistic outlook based on current market conditions.
- Investment and Expense Planning: The company plans acquisitions ranging from $400,000 to $500,000 in 2026, with interest expenses projected at $117,000 to $127,000 and G&A expenses at $49,000 to $53,000, indicating a strategic focus on business expansion and cost control.
See More
Phillips Edison to Announce Q4 Earnings on February 5
- Earnings Announcement: Phillips Edison (PECO) is set to release its Q4 earnings after market close on February 5, with consensus EPS estimates at $0.15 and revenue expectations at $182.05 million, reflecting a 5.2% year-over-year growth.
- Earnings Estimate Changes: Over the last three months, EPS estimates have seen one upward revision with no downward adjustments, while revenue estimates have experienced two upward revisions and three downward adjustments, indicating mixed market sentiment regarding the company's future performance.
- Long-Term Growth Strategy: Phillips Edison focuses on grocery-anchored retail properties and has discussed its long-term growth strategy and performance, suggesting the company aims for sustained development in a stable market environment.
- Rating Upgrade Impact: The recent upgrade in Phillips Edison’s rating highlights market recognition of its defensive investment characteristics, potentially attracting more investors seeking stable returns.
See More
Phillips Edison (PECO) Announces 2025 Tax Reporting with $0.1025 Per Share Distribution
- Dividend Distribution Info: PECO announced a total distribution of $0.1025 per share for 2025, with ordinary dividends at $0.084002, reflecting the company's ongoing cash flow strength and commitment to shareholder returns.
- Capital Gain Distribution: PECO reported no capital gain distributions for 2025, indicating a stable tax position without additional capital gains tax liabilities, which enhances investor confidence.
- Operational Scale: As of September 30, 2025, PECO manages 328 shopping centers encompassing 34 million square feet, demonstrating its strong presence and operational capacity in the U.S. market.
- Market Positioning: PECO focuses on delivering grocery-anchored shopping experiences, partnering with major retailers like Kroger and Publix, ensuring its competitive edge and customer base in the retail sector.
See More
RBC Initiates Coverage on Nvidia with $240 Price Target
- Nvidia's Positive Outlook: RBC initiates coverage on Nvidia with a price target of $240, citing a backlog exceeding $500 billion and surging enterprise AI demand as key drivers for stock upside, indicating strong market potential.
- Amazon Price Target Cut: Raymond James lowers Amazon's price target from $275 to $260, yet remains optimistic heading into Q4, believing robust holiday trends and advertising performance will support earnings, with the AI narrative likely influencing stock performance.
- Cautious Netflix Outlook: Wedbush reduces Netflix's price target from $140 to $115 due to disappointing Q3 results and Q4 guidance, reflecting market concerns about its future growth trajectory.
- Boeing Price Target Increase: Bernstein raises Boeing's price target from $277 to $298, expressing increasing confidence in the company's growth path for 2026, highlighting its strong position in the aerospace and defense sector.
See More
PECO to Announce Q4 2025 Earnings on February 5, 2026
- Earnings Announcement: PECO will release its Q4 2025 earnings results on February 5, 2026, after market close, providing detailed financial data and supplemental information aimed at keeping investors informed about the company's latest operational status.
- Conference Call Details: The company's executives will host an earnings conference call on February 6, 2026, at 12:00 p.m. ET, allowing participants to dial in via a toll-free number to receive timely insights into the earnings report and future outlook.
- Investor Relations Website: PECO will post the earnings report and webcast link on its investor relations website, facilitating easy access to information for investors and demonstrating the company's commitment to transparency and disclosure.
- Company Overview: PECO is one of the largest operators of high-quality grocery-anchored neighborhood shopping centers in the U.S., managing 328 centers across 31 states as of September 30, 2025, showcasing its strong influence and market position in the retail sector.
See More
Phillips Edison & Company Q4 2025 Earnings Call Highlights
- Strong Financial Performance: In Q4 2025, Phillips Edison reported a 7.2% increase in NAREIT FFO per share and a 7% rise in core FFO per share, alongside a 3.8% growth in same-center NOI, reflecting robust market performance and profitability.
- High Demand Leasing Activity: The company executed 1,026 leases totaling approximately 6 million square feet in 2025, ending the year with a portfolio occupancy of 97.3%, including a strong anchor occupancy of 98.7%, indicating strong demand for necessity-based retail.
- Liquidity and Acquisition Plans: As of December 31, 2025, the company had approximately $925 million in liquidity to support its acquisition plans of $400 million to $500 million in 2026, demonstrating flexibility in capital allocation and strategic foresight.
- Optimistic Future Outlook: The company anticipates a 5.5% increase in NAREIT FFO per share for 2026, with same-center NOI growth projected between 3% and 4%, indicating management's confidence in maintaining a competitive edge in the necessity retail sector.
See More
Phillips Edison Q4 Earnings Exceed Expectations
- Strong Financial Performance: Phillips Edison (PECO) reported a Q4 FFO of $0.66, beating expectations by $0.01, indicating robust profitability in the current market environment.
- Significant Revenue Growth: The company achieved $187.9 million in revenue for Q4, an 8.6% year-over-year increase, surpassing market expectations by $5.85 million, reflecting solid growth and sustained demand in the retail sector.
- 2026 Guidance Outlook: PECO projects a net income per share of $0.74 to $0.77 for 2026, with Nareit FFO per share expected to be between $2.65 and $2.71, showcasing the company's optimistic outlook based on current market conditions.
- Investment and Expense Planning: The company plans acquisitions ranging from $400,000 to $500,000 in 2026, with interest expenses projected at $117,000 to $127,000 and G&A expenses at $49,000 to $53,000, indicating a strategic focus on business expansion and cost control.
See More
Phillips Edison to Announce Q4 Earnings on February 5
- Earnings Announcement: Phillips Edison (PECO) is set to release its Q4 earnings after market close on February 5, with consensus EPS estimates at $0.15 and revenue expectations at $182.05 million, reflecting a 5.2% year-over-year growth.
- Earnings Estimate Changes: Over the last three months, EPS estimates have seen one upward revision with no downward adjustments, while revenue estimates have experienced two upward revisions and three downward adjustments, indicating mixed market sentiment regarding the company's future performance.
- Long-Term Growth Strategy: Phillips Edison focuses on grocery-anchored retail properties and has discussed its long-term growth strategy and performance, suggesting the company aims for sustained development in a stable market environment.
- Rating Upgrade Impact: The recent upgrade in Phillips Edison’s rating highlights market recognition of its defensive investment characteristics, potentially attracting more investors seeking stable returns.
See More
Phillips Edison (PECO) Announces 2025 Tax Reporting with $0.1025 Per Share Distribution
- Dividend Distribution Info: PECO announced a total distribution of $0.1025 per share for 2025, with ordinary dividends at $0.084002, reflecting the company's ongoing cash flow strength and commitment to shareholder returns.
- Capital Gain Distribution: PECO reported no capital gain distributions for 2025, indicating a stable tax position without additional capital gains tax liabilities, which enhances investor confidence.
- Operational Scale: As of September 30, 2025, PECO manages 328 shopping centers encompassing 34 million square feet, demonstrating its strong presence and operational capacity in the U.S. market.
- Market Positioning: PECO focuses on delivering grocery-anchored shopping experiences, partnering with major retailers like Kroger and Publix, ensuring its competitive edge and customer base in the retail sector.
See More
RBC Initiates Coverage on Nvidia with $240 Price Target
- Nvidia's Positive Outlook: RBC initiates coverage on Nvidia with a price target of $240, citing a backlog exceeding $500 billion and surging enterprise AI demand as key drivers for stock upside, indicating strong market potential.
- Amazon Price Target Cut: Raymond James lowers Amazon's price target from $275 to $260, yet remains optimistic heading into Q4, believing robust holiday trends and advertising performance will support earnings, with the AI narrative likely influencing stock performance.
- Cautious Netflix Outlook: Wedbush reduces Netflix's price target from $140 to $115 due to disappointing Q3 results and Q4 guidance, reflecting market concerns about its future growth trajectory.
- Boeing Price Target Increase: Bernstein raises Boeing's price target from $277 to $298, expressing increasing confidence in the company's growth path for 2026, highlighting its strong position in the aerospace and defense sector.
See More
PECO to Announce Q4 2025 Earnings on February 5, 2026
- Earnings Announcement: PECO will release its Q4 2025 earnings results on February 5, 2026, after market close, providing detailed financial data and supplemental information aimed at keeping investors informed about the company's latest operational status.
- Conference Call Details: The company's executives will host an earnings conference call on February 6, 2026, at 12:00 p.m. ET, allowing participants to dial in via a toll-free number to receive timely insights into the earnings report and future outlook.
- Investor Relations Website: PECO will post the earnings report and webcast link on its investor relations website, facilitating easy access to information for investors and demonstrating the company's commitment to transparency and disclosure.
- Company Overview: PECO is one of the largest operators of high-quality grocery-anchored neighborhood shopping centers in the U.S., managing 328 centers across 31 states as of September 30, 2025, showcasing its strong influence and market position in the retail sector.
See More
