Phillips Edison & Company, Inc. · NASDAQ:PECO
Phillips Edison & — Q1 2021 Earnings Presentation
27 slides from Phillips Edison &'s earnings presentation, May 19, 2021
Slide 1: First Quarter 2021 Results & Estimated Value Per Share Update Presentation
First Quarter 2021 Results & Estimated Value Per Share Update Presentation May 19, 2021 1 Phillips Edison & Company, Inc. (“PECO”), an internally- managed REIT, is one of the nation’s largest owners and operators of omni-channel grocery-anchored neighborhood shopping centers.
Slide 2: Our Agenda
www.PhillipsEdison.com/Investors 2 Prepared Remarks Jeff Edison - Chairman and CEO Q1 2021 Highlights Estimated Value Per Share Update Portfolio Overview John Caulfield - CFO Financial Results Balance Sheet Jeff Edison - Chairman and CEO Historical Performance Proxy Update Our Agenda
Slide 3: Forward Looking Statements
www.PhillipsEdison.com/Investors 3 Forward Looking Statements Certain statements contained in this presentation for Phillips Edison & Company, Inc. (the “Company,” or “PECO”) other than historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities
Slide 4: Q1 2021 Highlights
www.PhillipsEdison.com/Investors 4 • Leased portfolio occupancy totaled 94.8%, an increase from 94.7% at December 31, 2020 • Rent and recovery collections totaled over 95% of monthly billings for the quarter • As of March 31, 2021, 100% of our occupied spaces were open for business • Executed a reco
Slide 5: Estimated Value Per Share Update
www.PhillipsEdison.com/Investors 5 Please note that the EVPS is not intended to represent an enterprise, trading, or liquidation value of PECO. It is important to remember that the EVPS may not reflect the amount you would obtain if you were to sell your shares or if we liquidated our assets. Furthe
Slide 6: Constructive Environment and Improved Economic Backdrop
www.PhillipsEdison.com/Investors 6 MACROMICRO • Our Neighbors, particularly our grocers, have demonstrated strong resilience throughout the difficult economic conditions caused by the COVID-19 pandemic • Foot traffic for March 2021 was 104% compared to the average monthly levels during 2019 • Leased
Slide 7: Portfolio Overview
www.PhillipsEdison.com/Investors 7 Portfolio Overview
Slide 8: PECO's National Portfolio
www.PhillipsEdison.com/Investors 8 Our national footprint of 278 wholly-owned shopping centers in 31 states is complemented by our local market expertise. 96.4% GROCERY-ANCHORED 31.3 million SQUARE FEET OF GLA 94.8% TOTAL LEASED OCCUPANCY 89.8% INLINE OCCUPANCY $13.06 / sq ft TOTAL PORTFOLIO ABR* $2
Slide 9: Diversified Necessity- and Service-Based Neighbors
www.PhillipsEdison.com/Investors 9 6.6% 5.6% 4.4% 4.3% 2.3% Diversified Necessity- and Service-Based Neighbors TOP 5 GROCERY ANCHORS AND % OF TOTAL ABR* TOP 5 INLINE NEIGHBORS AND % OF INLINE ABR* *Includes wholly-owned properties and pro rata ownership through joint ventures. 1.4% 1.3% 1.0% 0.9% 0.
Slide 10: First Quarter Leasing Activity
www.PhillipsEdison.com/Investors 10 Q1 2021 LEASES EXECUTED AND SQUARE FEET LEASED WERE BOTH RECORDS 1,121 1,445 Square Feet (in thousands) 214 316 Leases Executed First Quarter Leasing Activity Comparable Combined Leasing Spreads* *Comparable leasing spreads compare the percentage increase (or decr
Slide 11: Financials
www.PhillipsEdison.com/Investors 11 Financials
Slide 12: Collections - Q1 2021 Results
www.PhillipsEdison.com/Investors 12 Collections - Q1 2021 Results 1. Including collections received through April 20, 2021. 95% Q1 2021 95% 96% Q4 2020 94% 96% Q3 2020 86% 93% Q2 2020 Rent and Recoveries Collected As a % of monthly billings Originally Reported Current(1) • As of March 31, 2021, 100%
Slide 13: Same-Center NOI
www.PhillipsEdison.com/Investors 13 Three Months Ended March 31, Favorable (Unfavorable) (dollars in thousands) 2021 2020 $ Change % Change Revenues: Rental income(2) $ 92,641 $ 93,322 $ (681) (0.7) % Tenant recovery income 31,072 31,265 (193) (0.6) % Reserves for uncollectibility(3) (1,731) (2,510)
Slide 14: Net Income, FFO and Core FFO
www.PhillipsEdison.com/Investors 14 Three Months Ended March 31, Favorable (Unfavorable) (dollars in thousands, except per share amounts) 2021 2020 $ Change % Change Net income $ 117 $ 11,199 $ (11,082) (99.0) % Adjustments(1) 44,863 57,048 (12,185) (21.4) % FFO attributable to stockholders and OP u
Slide 15: Debt Profile and Maturity Ladder
www.PhillipsEdison.com/Investors 15 Note: Data as of March 31, 2021 (unless otherwise noted). (1) Net debt is calculated as the Company’s total debt, excluding market adjustments and deferred financing expenses, of $2,322.1 million and $2,345.6 million, less cash and cash equivalents of $20.7 millio
Slide 16: Investment Performance
www.PhillipsEdison.com/Investors 16 Investment Performance
Slide 17: Distributions and Estimated Value Per Share
www.PhillipsEdison.com/Investors 17 $10.00 $10.00 $10.00 $10.00 $10.00 $10.20 $10.20 $11.00 $11.05 $11.10 $8.75 $10.55 $0.54 $1.21 $1.88 $2.55 $3.22 $3.89 $4.11 $4.22 $0.05 $0.70 $1.35 $2.02 $2.69 $3.36 $4.03 $4.70 $5.37 $6.04 $6.26 $6.37 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 YTD 1. Chart
Slide 18: Company & Stockholder Alignment
www.PhillipsEdison.com/Investors 18 Company & Stockholder Alignment • In 2017, we merged with our external advisor to become a fully internally- managed REIT • No asset management fees, or any other management fees, are being paid to a third- party • Management is collectively PECO’s largest shareho
Slide 19: Proxy Voting Instructions and Proposals
www.PhillipsEdison.com/Investors 19 VOTE BY INTERNET - We will be emailing investors Visit www.proxyvote.com/peco - Follow the instructions to obtain your records and vote online. VOTE BY PHONE - We will be calling for votes 1-800-690-6903 (with control number*) 1-855-835-8312 (without control numbe
Slide 20: Thank you for joining us!
www.PhillipsEdison.com/Investors 20 Thank you for joining us! INVESTORRELATIONS@PHILLIPSEDISON.COM WWW.PHILLIPSEDISON.COM/INVESTORS INVESTORS AND NIGO SERVICING: (888) 518-8073 PECO ADVISOR SERVICES: (833) 347-5717 PECO uses, and intends to continue to use, its Investors website, which can be found
Slide 21: Appendix
www.PhillipsEdison.com/Investors 21 Appendix
Slide 22: Same-Center NOI
www.PhillipsEdison.com/Investors 22 Same-Center NOI The Company presents Same-Center NOI as a supplemental measure of its performance. The Company defines NOI as total operating revenues, adjusted to exclude non-cash revenue items, less property operating expenses and real estate taxes. For the thre
Slide 23: Reconciliation of Net Income to NOI and Same-Center NOI
www.PhillipsEdison.com/Investors 23 Below is a reconciliation of Net Income to NOI for real estate investments and Same-Center NOI (in thousands): Three Months Ended March 31, 2021 2020 Net income $ 117 $ 11,199 Adjusted to exclude: Fees and management income (2,286) (2,165) Straight-line rental inc
Slide 24: Funds from Operations and Core Funds from Operations
www.PhillipsEdison.com/Investors 24 Funds from Operations and Core Funds from Operations FFO is a non-GAAP performance financial measure that is widely recognized as a measure of REIT operating performance. The National Association of Real Estate Investment Trusts (“Nareit”) defines FFO as net incom
Slide 25: Calculation of FFO and Core FFO
www.PhillipsEdison.com/Investors 25 The table below presents the Company’s calculation of FFO, FFO Attributable to Stockholders and OP Unit Holders, and Core FFO and provides additional information related to its operations (in thousands, except per share amounts): Three Months Ended March 31, 2021
Slide 26: EBITDAre and Adjusted EBITDAre
www.PhillipsEdison.com/Investors 26 Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (“EBITDAre”) and Adjusted EBITDAre Nareit defines EBITDAre as net income (loss) computed in accordance with GAAP before (i) interest expense, (ii) income tax expense, (iii) depreciatio
Slide 27: Calculation of EBITDAre and Adjusted EBITDAre
www.PhillipsEdison.com/Investors 27 The following table presents the Company’s calculation of EBITDAre and Adjusted EBITDAre and provides additional information related to its operations (in thousands): Three Months Ended March 31, Year Ended December 31, 2021 2020 2020 Calculation of EBITDAre Net i
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