Phillips Edison & Company, Inc. · NASDAQ:PECO
Phillips Edison & — Phillips Edison Grocery Center REIT I — Q1 2016 Earnings Presentation
17 slides from Phillips Edison &'s earnings presentation, May 13, 2016
Slide 1: First Quarter 2016 Results
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 1 Phillips Edison Grocery Center REIT I, Inc. First Quarter 2016 Results www.grocerycenterREIT1.com 888.518.8073 Exhibit 99.1
Slide 2: Agenda
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 2 Agenda • Portfolio & Results • Financials • Strategy R. Mark Addy - President and COO
Slide 3: Forward-Looking Statement Disclosure
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 3 Forward-Looking Statement Disclosure This presentation and the corresponding call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934
Slide 4: Q1 2016 Portfolio Highlights
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 4 Q1 2016 Portfolio Highlights • 147 properties • 28 states • 24 leading grocery anchors • 15.6 million square feet • 95.8% occupied • 80% of rents from grocer, national and regional tenants Information as of 3/31/2016.
Slide 5: Q1 2016 Portfolio Results
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 5 Q1 2016 Portfolio Results Grocer % of AER # ofLocations Kroger 8.9% 37 Publix 8.0% 31 Albertsons-Safeway 4.5% 13 Ahold USA 3.5% 6 Giant Eagle 3.0% 7 Top 5 Grocers by % of Annualized Effective Rent (AER) Annualized Effective Rent by Tenant
Slide 6: Q1 2016 Same-Center Net Operating Income
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 6 Q1 2016 Same-Center Net Operating Income Strong Same-Center NOI Growth* *Represents 133 properties that we owned and operational for the entire portion of both comparable reporting periods, excluding properties classified as redevelopment
Slide 7: Q1 2016 Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 7 Q1 2016 Financials Three Months Ended March 31, (In 000s) 2016 2015 $ Change Net Income Attributable to Stockholders $ 2,219 $ 4,971 $ (2,752) Funds from Operations (FFO) $ 27,538 $ 29,367 $ (1,829) Modified Funds from Operations (MFFO) $
Slide 8: Q1 2016 Financials: Prudent Debt Strategy
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 8 Q1 2016 Financials Prudent Debt Strategy • Debt to Enterprise Value: 29.8%* • Weighted-Average Interest Rate: 3.5% • Weighted-Average Years to Maturity: 3.5 • Fixed-rate debt: 82.2% • Variable-rate debt: 17.8% *Calculated as net debt (tota
Slide 9: Company Updates
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 9 Company Updates • Reaffirmed est. NAV/share of $10.20 as of March 31, 2016* • Tender Offer** • Share Repurchase Program Status * Please note that the estimated value per share is not intended to represent an enterprise or liquidation value
Slide 10: Summary
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 10 Summary • Strong start to 2016 • Strategic focus on property acquisitions • Value creation for shareholders
Slide 11: Appendix
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 11 Appendix
Slide 12: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 12 Reconciliation of Non-GAAP Financials We present Same-Center Net Operating Income (“Same-Center NOI”) as a supplemental measure of our performance. We define Net Operating Income (“NOI”) as total operating revenues less property operating
Slide 13: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 13 Reconciliation of Non-GAAP Financials Below is a reconciliation of net income (loss) to Same-Center NOI for the three months ended March 31, 2016 and 2015 (in thousands): Funds from Operations and Modified Funds from Operations Funds from
Slide 14: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 14 Reconciliation of Non-GAAP Financials Since the definition of FFO was promulgated by NAREIT, GAAP has expanded to include several new accounting pronouncements, such that management and many investors and analysts have considered the pres
Slide 15: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 15 Reconciliation of Non-GAAP Financials Many of the adjustments in arriving at MFFO are not applicable to us. Nevertheless, as explained below, management’s evaluation of our operating performance may also exclude items considered in the ca
Slide 16: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 16 Reconciliation of Non-GAAP Financials (in 000s) 2016 2015 Calculation of FFO Net income (loss) attributable to stockholders $ 2,219 $ 4,971 Adjustments: Depreciation and amortization of real estate assets 25,706 24,730 Noncontrolling inte
Slide 17: Thank You
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 17 Thank You www.grocerycenterREIT1.com 888.518.8073
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