Phillips Edison & Company, Inc. · NASDAQ:PECO
Phillips Edison & — FY2017 Earnings Presentation
24 slides from Phillips Edison &'s earnings presentation, Mar 14, 2018
Slide 1: Fourth Quarter and Full Year 2017 Results Presentation
Fourth Quarter and Full Year 2017 Results Presentation Thursday, March 15, 2018
Slide 2: Agenda
2 www.phillipsedison.com Agenda Prepared Remarks R. Mark Addy - Executive Vice President • Intro & Portfolio Update Jeff Edison - Chairman and CEO • Market Commentary & Outlook Devin Murphy - CFO • Financial Results R. Mark Addy - Executive Vice President • Share Repurchase Program & Liquidity Quest
Slide 3: Forward-Looking Statement Disclosure
3 www.phillipsedison.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 are
Slide 4: Portfolio Highlights
4 www.phillipsedison.com Portfolio Highlights December 31, 2017 Total Properties 236 Leading Grocery Anchors 34 States 32 Square Feet 26.3 million Leased Occupancy 93.9% Rent from grocer, national and regional tenants 77.3%
Slide 5: Portfolio Results
5 www.phillipsedison.com Portfolio Results at December 31, 2017 Grocer % of ABR # of Locations Kroger 9.2% 55 Publix 6.1% 36 Ahold Delhaize 3.7% 19 Albertsons-Safeway 3.4% 17 Giant Eagle 2.4% 9 Subtotal 24.8% 136 Top 5 Grocers by % of Annualized Base Rent Annualized Base Rent by Tenant Type Annualiz
Slide 6: Fourth Quarter and Full Year 2017 Highlights
6 www.phillipsedison.com Fourth Quarter and Full Year 2017 Highlights Fourth Quarter 2017 Highlights (vs. Fourth Quarter 2016) • Completed the acquisition of 76 shopping centers and the investment management business from PELP • Net Loss totaled $33.3 million • Modified Funds From Operations (MFFO)
Slide 7: Market Update: Leading Grocers Continue to Invest
7 www.phillipsedison.com Market Update: Leading Grocers Continue to Invest • Kroger gained market share for 13th consecutive year in 2017; grew digital sales by 90% · Expanded click-n-pick service to over 1,091 locations out of 2,782 total • Publix opened 44 new stores and remodeled 132 stores out o
Slide 8: Market Update: Real Estate Fundamentals are Strong
8 www.phillipsedison.com Market Update: Real Estate Fundamentals are Strong • 15.7 million sq. ft. of retail space closed in 2017 due to store closures - across all types of retail real estate including malls, power centers, strip centers, etc.(1) • However, there was 23.5 million sq. ft. of retail
Slide 9: Spotlight: National Accounts Team
9 www.phillipsedison.com Spotlight: National Accounts Team • Our National Accounts team has long-standing relationships with retailers that have multiple locations across the U.S. • Our fully integrated operating platform allows us to efficiently execute the lease, prepare the space, and service the
Slide 10: Q4 2017 Pro Forma Same-Center NOI Results
10 www.phillipsedison.com Q4 2017 Pro Forma Same-Center NOI(1) Results Three Months Ended December 31, (in thousands) 2017 2016 $ Change % Change Revenues: Rental income(2) $ 55,370 $ 54,365 $ 1,005 1.8 % Tenant recovery income 18,470 16,331 2,139 13.1 % Other property income 432 298 134 45.0 % Tota
Slide 11: Twelve Months Pro Forma Same-Center NOI Results
11 www.phillipsedison.com Twelve Months Ended December 31, (in thousands) 2017 2016 $ Change % Change Revenues: Rental income(2) $ 220,081 $ 215,398 $ 4,683 2.2 % Tenant recovery income 69,965 69,066 899 1.3 % Other property income 1,565 1,048 517 49.3 % 291,611 285,512 6,099 2.1 % Operating expense
Slide 12: Q4 2017 Financial Results
12 www.phillipsedison.com Q4 2017 Financial Results Three Months Ended December 31, (in thousands) 2017 2016 $ Change % Change Net (Loss) Income $ (33,255 ) $ 3,717 $ (36,972 ) NM Adjustments(1) 41,387 23,097 18,290 79.2 % Funds from Operations (FFO) Attributable to Stockholders and Convertible Nonc
Slide 13: 2017 Full Year Financial Results
13 www.phillipsedison.com 2017 Full Year Financial Results Twelve Months Ended December 31, (in thousands) 2017 2016 $ Change % Change Net (Loss) Income $ (41,718 ) $ 9,043 $ (50,761 ) NM Adjustments(1) 125,868 101,363 24,505 24.2 % Funds from Operations (FFO) Attributable to Stockholders and Conver
Slide 14: Debt Profile & Maturity Ladder
14 www.phillipsedison.com Debt Profile & Maturity Ladder Debt Maturity Ladder assumes the delayed draw on the five-year term loan had been executed as of 12/31/2017. 1) Net debt to total enterprise value was 41.8% at December 31, 2017. The company defines net debt as total debt of $1.8 billion, excl
Slide 15: Share Repurchase Program
15 www.phillipsedison.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 si
Slide 16: Liquidity
16 www.phillipsedison.com Liquidity • The acquisition of PELP was a positive step towards a potential liquidity event • Management is now the Company’s largest stockholder, currently owning over 9% of the combined company, with a long term view of increasing shareholder value • Earn-out structure in
Slide 17: Question and Answer Session
17 www.phillipsedison.com Question and Answer Session If you are logged in to the webcast presentation, you can submit a question by typing it into the text box, and clicking submit.
Slide 18: For More Information: Thank You
For More Information: Thank You InvestorRelations@PhillipsEdison.com www.phillipsedison.com DST: (888) 518-8073 Griffin Capital Securities: (866) 788-8614
Slide 19: Appendix
Appendix
Slide 20: Same-Center NOI Definition
20 www.phillipsedison.com Same-center NOI represents the NOI for the properties that were owned and operational for the entire portion of both comparable reporting periods, except for the properties we currently classify as redevelopment. For purposes of evaluating Same-center NOI on a comparative b
Slide 21: Reconciliation of Net Income to NOI
21 www.phillipsedison.com Below is a reconciliation of Net (loss) income to Owned Real Estate NOI and Pro Forma Same-Center NOI for the three and twelve months ended December 31, 2017 and 2016 (in thousands): Three Months Ended December 31, Twelve Months Ended December 31, 2017 2016 2017 2016 Net (l
Slide 22: Reconciliation of Non-GAAP Financials
22 www.phillipsedison.com Reconciliation of Non-GAAP Financials NOI from PELP prior to the PELP transaction was obtained from the accounting records of PELP without adjustment. The accounting records were subject to internal review by us. The table below provides Same-Center NOI detail for the non-o
Slide 23: FFO and MFFO Definitions
23 www.phillipsedison.com 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 income (loss) attributable to common shareholders computed in accord
Slide 24: Reconciliation of Non-GAAP Financials
24 Reconciliation of Non-GAAP Financials (1) Certain prior period amounts have been restated to conform with current year presentation. (2) OP units and restricted stock awards were dilutive to FFO/MFFO for the three and twelve months ended December 31, 2017 and 2016 and, accordingly, were included
Phillips Edison & Company — FY2017 Earnings Presentation on 6ix