Phillips Edison & Company, Inc. · NASDAQ:PECO
Phillips Edison & — Phillips Edison Grocery Center REIT I — Q1 2017 Earnings Presentation
18 slides from Phillips Edison &'s earnings presentation, May 12, 2017
Slide 1: Q1 2017 Results Presentation
Q1 2017 Results Presentation InvestorRelations@PhillipsEdison.com www.grocerycenterREIT1.com DST: (888) 518-8073 Griffin Capital Securities: (866) 788-8614
Slide 2: Agenda
2www.grocerycenterREIT1.com Agenda R. Mark Addy - President and COO • Portfolio & Results • Financials • Estimated value per share update
Slide 3: Forward-Looking Statement Disclosure
3www.grocerycenterREIT1.com 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. These statements include, but a
Slide 4: Q1 2017 Portfolio Highlights
4www.grocerycenterREIT1.com Q1 2017 Portfolio Highlights • 154 total properties • 24 leading grocery anchors • 28 states • 16.8 million sq. ft. • 96.0% leased • 79.1% of rents from grocer, national and regional tenants
Slide 5: Q1 2017 Portfolio Results
5www.grocerycenterREIT1.com Q1 2017 Portfolio Results Grocer % of ABR # ofLocations Kroger 8.4% 38 Publix 7.4% 31 Albertsons-Safeway 4.3% 14 Ahold Delhaize 4.2% 10 Giant Eagle 2.7% 7 Top 5 Grocers by % of Annualized Base Rent Annualized Base Rent by Tenant Type Annualized Base Rent by Tenant Industr
Slide 6: Q1 2017 Acquisition Highlights
6www.grocerycenterREIT1.com Q1 2017 Acquisition Highlights Name Location Grocer GLA Atwater Marketplace Atwater, California Save Mart 96,224 sq. ft. Atwater Marketplace
Slide 7: Q1 2017 Financials
7www.grocerycenterREIT1.com Q1 2017 Financials Three Months Ended March 31, (in 000s) 2017 2016 $ Change % Change Net Income Attributable to Stockholders $ 1,106 $ 2,219 $ (1,113) (50.2)% Funds from Operations (FFO) $ 28,310 $ 27,538 $ 772 2.8 % Modified Funds from Operations (MFFO) $ 28,286 $ 25,84
Slide 8: Q1 2017 Same-Center Net Operating Income (NOI)
8www.grocerycenterREIT1.com Q1 2017 Same-Center(1) Net Operating Income (NOI) Three Months Ended March 31, (in 000s) 2017 2016 $ Change % Change Revenues: Rental income(2) $ 42,677 $ 41,374 $ 1,303 Tenant recovery income 14,051 14,468 (417) Other property income 204 151 53 56,932 55,993 939 1.7 % Op
Slide 9: Q1 2017 Debt Profile
9www.grocerycenterREIT1.com Q1 2017 Debt Profile • Debt to Enterprise Value: 36.2%* • Weighted-Average Interest Rate: 3.0% • Weighted-Average Years to Maturity: 3.2 • Fixed-Rate Debt: 77.1%** • Variable-Rate Debt: 22.9% *Calculated as net debt (total debt, excluding below-market debt adjustments and
Slide 10: Share Repurchase Program
10www.grocerycenterREIT1.com Share Repurchase Program Our Share Repurchase Program (SRP) states that the cash available for repurchases on any particular date will generally be limited to the proceeds from the DRIP during the preceding four fiscal quarters, less any cash already used for repurchases
Slide 11: Company Updates
11www.grocerycenterREIT1.com Company Updates • Duff & Phelps, a third-party valuation firm, produced an estimated value per share in the range of $9.97 to $11.24 as of March 31, 2017 • The Board of Directors reaffirmed the estimated value per share of $10.20* ◦ Above the offering price of $10.00 per
Slide 12: For More Information: Thank You
For More Information: Thank You InvestorRelations@PhillipsEdison.com www.grocerycenterREIT1.com DST: (888) 518-8073 Griffin Capital Securities: (866) 788-8614
Slide 13: Appendix
Appendix
Slide 14: Same-Center Net Operating Income definition
14www.grocerycenterREIT1.com 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, adjusted to exclude lease buy-out income and non-cash revenue items, less property operating
Slide 15: Reconciliation of Non-GAAP Financials
15www.grocerycenterREIT1.com Below is a reconciliation of net income to NOI and Same-Center NOI for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016(1) Net income $ 1,134 $ 2,253 Adjusted to exclude: Straight-line rental income (493) (899) Net amo
Slide 16: Funds from Operations and Modified Funds from Operations
16www.grocerycenterREIT1.com Funds from Operations and Modified Funds from Operations Funds from operations (“FFO”) is a non-GAAP performance financial measure that is widely recognized as a measure of REIT operating performance. We use FFO as defined by the National Association of Real Estate Inves
Slide 17: MFFO adjustments explanation
17www.grocerycenterREIT1.com 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 calculation of MFFO based on the following economic considerations. • Adj
Slide 18: Calculation of FFO and MFFO
18www.grocerycenterREIT1.com Three Months Ended March 31, (in 000s) 2017 2016 Calculation of FFO Net income attributable to stockholders $ 1,106 $ 2,219 Adjustments: Depreciation and amortization of real estate assets 27,624 25,706 Noncontrolling interest (420) (387) FFO attributable to common stock
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