Phillips Edison & Company, Inc. · NASDAQ:PECO
Phillips Edison & — Corporate Update (December 2024)
52 slides from Phillips Edison &'s corporate update, Dec 19, 2024
Slide 1: PECO Business Update
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D PECO | N A S D A Q L I S T E D December 2024 PECO Business Update
Slide 2: Safe Harbor and Non-GAAP Disclosures
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 2 PECO | N A S D A Q L I S T E D Safe Harbor and Non-GAAP Disclosures
Slide 3: PECO's Mission
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 3 PECO | N A S D A Q L I S T E D PECO’s Mission GROCERY CENTERED. NEIGHBORHOOD FOCUSED.
Slide 4: PECO Business Update
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 4 PECO | N A S D A Q L I S T E D PECO Business Update
Slide 5: PECO is a Growth Company
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 5 PECO | N A S D A Q L I S T E D PECO is a Growth Company Our Vision: Grow PECO’s Total Enterprise Value to Over $10B
Slide 6: PECO's Long Term Targets
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 6 PECO | N A S D A Q L I S T E D PECO’s Long Term Targets Same-Center NOI $350M to $450M in Growth of 3% to 4% Acquisitions Annually Mid-to-High-Single-Digit Core FFO per Share Growth and Higher AFFO Growth
Slide 7: Why Now?
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 7 PECO | N A S D A Q L I S T E D Why Now?
Slide 8: Macro Tailwinds Benefiting PECO Long Term
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 8 PECO | N A S D A Q L I S T E D Macro Tailwinds Benefiting PECO Long Term
Slide 9: Lack of New Supply
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 9 PECO | N A S D A Q L I S T E D Lack of New Supply STRIP CENTER SUPPLY GROWTH (AS A % OF EXISTING STOCK) 4.0% 3.0% 19 9 9 -2 02 3 A V G: 1. 4 % 2.0% 1.0% 0.0% Source: Green Street Strip Center Sector Update
Slide 10: PECO's Focused and Differentiated Strategy
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D| 1 0 PECO | N A S D A Q L I S T E D PECO’s Focused and Differentiated Strategy ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Source: Company data as of September 30, 2024
Slide 11: PECO's Grocery-Anchored Advantage
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D| 1 1 PECO | N A S D A Q L I S T E D PECO’s Grocery- Anchored Advantage PECO GROCER SALES PSF GROWTH (4) 2019 2020 2021 2022 2023 Q3 2024 Sources: 1. Based on the most recently reported sales data available 2. Company data as of September 30
Slide 12: PECO's Leading Grocer Relationships
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D| 1 2 PECO | N A S D A Q L I S T E D PECO’s Leading Grocer Relationships
Slide 13: How PECO Defines Quality
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 1 3 PECO | N A S D A Q L I S T E D How PECO Defines Quality PECO’s focus on the #1 or #2 PECO retains a healthy and grocer is well-positioned in the diverse mix of National, market with a Locally Smart® Regional and Local Neighbors mercha
Slide 14: PECO Continues to Deliver Market-Leading Operating and Financial Results
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 1 4 PECO | N A S D A Q L I S T E D PECO Continues to Deliver Market-Leading Operating and Financial Results • • • • • • • • • • 1. Excludes exercise of options. Other companies may define/calculate 3. Excludes M&A activity Note: different
Slide 15: PECO Continues to Deliver Market-Leading Operating and Financial Results
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 1 5 PECO | N A S D A Q L I S T E D PECO Continues to Deliver Market-Leading Operating and Financial Results . . Note: 1. Excludes exercise of options. Other companies may 2. Peer group includes ROIC, BRX, KRG and IVT Unless otherwise note
Slide 16: Strong Acquisition Volume that Drives External Growth
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 1 6 PECO | N A S D A Q L I S T E D Strong Acquisition Volume that Drives External Growth Source: Company data as of December 19, 2024 1. Acquisition through the Company’s Necessity Retail Venture LLC joint venture. Shown at PECO 20% share
Slide 17: Long Term Targets: External Growth
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 1 7 PECO | N A S D A Q L I S T E D Long Term Targets: External Growth $350M to $450M in acquisitions per year on-balance-sheet 9%+ Unlevered IRR
Slide 18: Strong and Flexible Balance Sheet
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 1 8 PECO | N A S D A Q L I S T E D Strong and Flexible Balance Sheet LIQUIDITY STRENGTH (1) INVESTMENT GRADE BALANCE $9M SHEET HIGHLIGHTS (1)(2) • • • $752M • $743M • • • Cash, Cash Equivalents • & Restricted Cash $9M Revolver Capacity $7
Slide 19: Well-Laddered Debt Maturity Profile ($M)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 1 9 PECO | N A S D A Q L I S T E D Well-Laddered Debt Maturity Profile ($M)(1) $1,500.0 $1,250.0 $1,000.0 $742.9 $750.0 $36.0 $21.1 $500.0 $323.0 $250.0 $350.0 $350.0 $350.0 $100.0 $200.6 $161.8 $200.8 $3 $0.0 $0.6 $37.6 $1.9 $17.4 $0.8 $
Slide 20: Preliminary 2025 Guidance
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 2 0 PECO | N A S D A Q L I S T E D Preliminary 2025 Guidance PRELIMINARY FULL YEAR 2025 GUIDANCE RANGE Net Income Per Share $0.54 - $0.59 Nareit FFO Per Share $2.47 - $2.54 Core FFO Per Share $2.52 - $2.59 Same-Center NOI Growth 3.00% - 3
Slide 21: PECO is Among the Lowest Levered Shopping Center REITs
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 2 1 PECO | N A S D A Q L I S T E D PECO is Among the Lowest Levered Shopping Center REITs • • • • Sources: 1. As reported in September 30, 2024 quarterly filings (mix of TTM and LQA leverage); data based on Company filings. Other companie
Slide 22: Long Term Targets
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 2 2 PECO | N A S D A Q L I S T E D Long Term Targets Target Net-Debt-to- Repeat Issuer in Adjusted EBITDAre the Unsecured in the low-to-mid 5x Debt Market range
Slide 23: Long Term Growth Beyond Occupancy
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 2 3 PECO | N A S D A Q L I S T E D Long Term Growth Beyond Occupancy Source: Company data
Slide 24: Roadmap to Our Long Term Growth
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 2 4 PECO | N A S D A Q L I S T E D Roadmap to Our Long Term Growth MID-TO-HIGH SINGLE-DIGIT CORE FFO PER SHARE Source: Company data
Slide 25: PECO's Investments Enhance Long Term Value
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 2 5 PECO | N A S D A Q L I S T E D PECO’s Investments Enhance Long Term Value
Slide 26: Maximizing AFFO Growth and Free Cash Flow Generation
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 2 6 PECO | N A S D A Q L I S T E D Maximizing AFFO Growth and Free Cash Flow Generation • • • • • • • Source: As reported in S&P Global Capital IQ Pro Note: Peers include REG, ROIC, BRX, KIM, KRG, FRT and AKR
Slide 27: PECO Business Update
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 2 7 PECO | N A S D A Q L I S T E D PECO Business Update
Slide 28: Appendix
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D PECO | N A S D A Q L I S T E D Appendix 28
Slide 29: PECO at a Glance
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 2 9 PECO | N A S D A Q L I S T E D PECO at a Glance Source: Company data as of September 30, 2024; Dividend yield as of September 30, 2024 and is based on an annualized rate of $1.23 per share
Slide 30: PECO's Focus on Corporate Responsibility and Sustainability
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 3 0 PECO | N A S D A Q L I S T E D PECO’s Focus on Corporate Responsibility and Sustainability ✓
Slide 31: Glossary of Terms
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 3 1 PECO | N A S D A Q L I S T E D Glossary of Terms Notes: 1. Supplemental, non-GAAP performance measures. See the "Introductory Notes" section in our Q3 2024 Supplemental for more information on the limitations of non-GAAP performance m
Slide 32: Non-GAAP Reconciliations
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D PECO | N A S D A Q L I S T E D Appendix Non-GAAP Reconciliations 32
Slide 33: Non-GAAP Measures
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 3 3 PECO | N A S D A Q L I S T E D Non-GAAP Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Measures Net income $ 12,903 $ 13,729 $ 49,515 $ 48,574 Adjusted to exclude: Fees and management income (2,85
Slide 34: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 3 4 PECO | N A S D A Q L I S T E D Non-GAAP Three Months Ended June 30, Measures Net income $ 2024 16,986 $ 2023 16,209 (Cont’d) Adjusted to exclude: Fees and management income (2,522) (2,546) Straight-line rental income(1) (2,072) (3,284
Slide 35: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 3 5 PECO | N A S D A Q L I S T E D Non-GAAP Year Ended December 31, Measures Net income 2023 $ 63,762 $ 2022 54,529 (Cont’d) Adjusted to exclude: Fees and management income (9,646) (11,541) Straight-line rental income(1) (10,185) (12,265)
Slide 36: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 3 6 PECO | N A S D A Q L I S T E D Non-GAAP Year Ended December 31, Measures 2022 2021 Net income $ 54,529 $ 17,233 (Cont’d) Adjusted to exclude: Fees and management income (11,541) (10,335) Straight-line rental income(1) (12,265) (9,404)
Slide 37: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 3 7 PECO | N A S D A Q L I S T E D Non-GAAP Year Ended December 31, Measures 2021 2020 (Cont’d) Net income $ 17,233 $ 5,462 Adjusted to exclude: Fees and management income (10,335) (9,820) Straight-line rental income(1) (9,404) (3,356) Ne
Slide 38: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 3 8 PECO | N A S D A Q L I S T E D Year Ended December 31, Non-GAAP 2020 2019 Measures Net income (loss) $ 5,462 $ (72,826) (Cont’d) Adjusted to exclude: Fees and management income (9,820) (11,680) Straight-line rental income(1) (3,356) (
Slide 39: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 3 9 PECO | N A S D A Q L I S T E D Year Ended December 31, Non-GAAP 2019 2018 Measures Net (loss) income $ (72,826) $ 46,975 (Cont’d) Adjusted to exclude: Fees and management income (11,680) (32,926) Straight-line rental income (9,079) (5
Slide 40: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 4 0 PECO | N A S D A Q L I S T E D Non-GAAP Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Measures Calculation of Nareit FFO Attributable to Stockholders and OP Unit Holders (Cont’d) Net income $ 12,
Slide 41: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 4 1 PECO | N A S D A Q L I S T E D Non-GAAP Three Months Ended June 30, 2024 2023 Measures Calculation of Nareit FFO Attributable to Stockholders and OP Unit Holders (Cont’d) Net income $ 16,986 $ 16,209 Adjustments: Depreciation and amor
Slide 42: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 4 2 PECO | N A S D A Q L I S T E D Year Ended December 31, Non-GAAP 2023 2022 Measures Calculation of Nareit FFO Attributable to Stockholders and OP Unit Holders Net income $ 63,762 $ 54,529 (Cont’d) Adjustments: Depreciation and amortiza
Slide 43: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 4 3 PECO | N A S D A Q L I S T E D Non-GAAP Year Ended December 31, 2022 2021 Measures Calculation of Nareit FFO Attributable to Stockholders and OP Unit Holders (Cont’d) Net income $ 54,529 $ 17,233 Adjustments: Depreciation and amortiza
Slide 44: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 4 4 PECO | N A S D A Q L I S T E D Non-GAAP Measures Three Months Ended September 30, 2024 2023 Nine Months Ended September 30, 2024 2023 (Cont’d) Calculation of EBITDAre Net income $ 12,903 $ 13,729 $ 49,515 $ 48,574 Adjustments: Depreci
Slide 45: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 4 5 PECO | N A S D A Q L I S T E D Non-GAAP Measures 2024 Three Months Ended June 30, 2023 (Cont’d) Calculation of EBITDAre Net income $ 16,986 $ 16,209 Adjustments: Depreciation and amortization 61,172 59,667 Interest expense, net 23,621
Slide 46: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 4 6 PECO | N A S D A Q L I S T E D Non-GAAP Year Ended December 31, 2023 Year Ended December 31, 2022 Measures Calculation of EBITDAre (Cont’d) Net income Adjustments: $ 63,762 $ 54,529 Depreciation and amortization 236,443 236,224 Intere
Slide 47: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 4 7 PECO | N A S D A Q L I S T E D September 30, 2024 December 31, 2023 Non-GAAP Net debt: Measures Total debt, excluding discounts, market adjustments, and deferred financing expenses $ 2,162,993 $ 2,011,093 (Cont’d) Less: Cash and cash
Slide 48: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 4 8 PECO | N A S D A Q L I S T E D June 30, 2024 December 31, 2023 Non-GAAP Net debt: Measures Total debt, excluding discounts, market adjustments, and deferred financing expenses $ 2,090,144 $ 2,011,093 (Cont’d) Less: Cash and cash equiv
Slide 49: Non-GAAP Measures (Cont'd)
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 4 9 PECO | N A S D A Q L I S T E D December 31, 2023 December 31, 2022 Non-GAAP Net debt: Measures Total debt, excluding discounts, market adjustments, and deferred financing expenses $ 2,011,093 $ 1,937,142 (Cont’d) Less: Cash and cash e
Slide 50: Reconciliation of Net Income to Nareit FFO Per Share and Core FFO Per Share
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 5 0 PECO | N A S D A Q L I S T E D Reconciliation of Full Year 2024 Guidance Preliminary Full Year 2025 Guidance Net Income to Nareit FFO Per (Unaudited) Low End High End Low End High End Share and Core Net income per share $0.48 $0.50 $0
Slide 51: Full Year 2024 Earnings Guidance Exhibit
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 5 1 PECO | N A S D A Q L I S T E D Full Year 2024 Full Year 2024 Guidance(1) Earnings Guidance (in thousands, except per share amounts Low End High End Exhibit Results: Net income per share $0.48 $0.50 Nareit FFO per share $2.35 $2.39 Cor
Slide 52: Preliminary Full Year 2025 Earnings Guidance Exhibit
G R O C E RY C E N T ERED . C O M M U N I T Y F O C U S E D | 5 2 PECO | N A S D A Q L I S T E D Preliminary Full Preliminary Full Year 2025 Guidance Year 2025 Earnings (in thousands, except per share amounts Low End High End Guidance Exhibit Results: Net income per share $0.54 $0.59 Nareit FFO per
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