Phillips Edison & Company, Inc. · NASDAQ:PECO
Phillips Edison & — Corporate Update (April 2020)
23 slides from Phillips Edison &'s corporate update, Apr 15, 2020
Slide 1: COVID-19 Mitigation Plan and Business Update
COVID-19 Mitigation Plan and Business Update Wednesday, April 15, 2020
Slide 2: Forward-Looking Statement Disclosure
Forward-Looking Statement Disclosure Certain of the matters and included in this presentation and the accompanying webcast that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange
Slide 3: PECO Portfolio Overview
PECO Portfolio Overview As of March 31, 2020* 312 Properties ABR by Neighbor Industry Retail 23.0% 77.0% of ABR Services comes from 26.0% Restaurants service and 15.3% Grocery necessity-based Anchor businesses 35.7% ABR by Neighbor Type • 32.4 million square feet across 31 states • ABR from grocery-
Slide 4: PECO Portfolio Neighbor Details
PECO Portfolio Neighbor Details As of March 31, 2020 by ABR Grocery 36% Dollar Stores 2% Essential Retail Pet Supply 2% & Services Banks 2% 51% Hardware / Auto 2% Medical 2% Other Essential 2% Wine, Beer & Liquor 1% Pharmacy 1% Entertainment 1% Office Supply 1% Fitness 3% Other Retail Restaurants &
Slide 5: Strong Track Record of Delivering Stockholder Value
Strong Track Record of Delivering Stockholder Value Cumulative Share Value + Distributions1 Distributions + Our most recent estimated value per share plus cumulative cash distributions totals Performance between $15.21 per share and $17.36 per share, depending on investment timing. • Total distribut
Slide 6: Fully Integrated Operating Platform has Driven Strong Performance
Fully Integrated Operating Platform has Driven Strong Performance Same Center Net Operating FULLY INTEGRATED Three-year Averages PECO: 3.6% Peers3: 2.7% PLATFORM Income (NOI) Growth1,2 3.5% 3.7% 3.7% 3.0% 2.6% 2.5% 29 YEAR HISTORY OF GROCERY FOCUS AND STRONG GROWTH 2017 2018 2019 Core FFO Growth per
Slide 7: COVID-19's Impact on Shopping Centers
COVID-19’s Impact on Shopping Centers • Unprecedented situation - mandatory closures Statewide Stay-at-home have created tremendous uncertainty for retail Orders businesses, particularly small businesses. • Our grocery anchors are seeing remarkable foot 3 additional states have enacted stay- 42 traf
Slide 8: COVID-19's Impact on PECO
COVID-19’s Impact on PECO • Our non-grocery neighbors have been severely impacted • As of April 13, 2020*: • 36% of neighbors closed temporarily • 25% of our total ABR • 20% of our total GLA • 1,850 rent relief requests out of 5,550 total neighbors (33%) • Collected 70% of April 2020 rent • Equity v
Slide 9: Working with our Neighbors
Working with our Neighbors Many of our inline and small shop neighbors are faced with mandated or voluntary closures and great uncertainty • We are working with our neighbors to fully understand their current financial position to ensure they are aware of and understand the available assistance prog
Slide 10: Business Continuity
Business Continuity Taking care of our associates so we can take care of our neighbors We are fully operational as a remote workforce IT infrastructure enabled us to fully deploy our workforce remotely • Cloud-based software systems • Microsoft video conference technology Communications team working
Slide 11: PECO's Response
PECO’s Response PECO has taken the following steps to maximize its financial flexibility and preserve cash given the uncertainty and fluidity of the COVID-19 pandemic: 1. Expense reductions have been implemented at the property and corporate levels. 2. Capital projects are being delayed to the exten
Slide 12: Alignment with Stockholders
Alignment with Stockholders • Compensation for PECO’s chief executive officer and executive management team is highly incentive based • 83% of CEO compensation and 65% of other executive officers’ compensation is based on Company performance; as such, we believe this pandemic will have a negative im
Slide 13: Debt and Liquidity Profile
Debt and Liquidity Profile • Our delevering strategy has given us flexibility and optionality • Revolving credit facility, maturing in October 2021, has extension options to October 2022 • Strong cash and liquidity position bolstered by recent draw on revolving credit facility • We have approximatel
Slide 14: Summary
Summary • Our strong performance and the execution of our strategic plans have improved our ability to handle this unprecedented situation • Best-in-class grocery anchored shopping center operators with 29 years of experience • Our investment thesis of owning well-located shopping centers anchored b
Slide 15: Investor Operations
Investor Operations • April 1, 2020: Monthly distributions were paid at the annualized rate of $0.67 per share • 100% distributions were paid in cash • Dividend Reinvestment Program (“DRP”) suspended – no reinvestments took place • Investors in the DRP will automatically reinvest future distribution
Slide 16: Question and Answer Session
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 Question”. www.phillipsedison.com/investors 16
Slide 17: For More Information
For More Information: InvestorRelations@PhillipsEdison.com www.phillipsedison.com/investors Investors and NIGO Servicing: (888) 518-8073 Phillips Edison Advisor Services: (833) 347-5717
Slide 18: Non-GAAP Reconciliations: Same-Center NOI
Non-GAAP Reconciliations Same-Center Net Operating Income (“NOI”) We present Pro Forma Same-Center NOI as a supplemental measure of our performance. We define NOI as total operating revenues, adjusted to exclude non-cash revenue items, less property operating expenses and real estate taxes. Same-cen
Slide 19: Non-GAAP Reconciliations: NOI 2019 and 2018
Non-GAAP Reconciliations Below is a reconciliation of Net (Loss) Income to NOI for real estate investments and Pro Forma Same-Center NOI for the years ended December 31, 2019 and 2018 (dollars in thousands): 2019 2018 Change $ Change % Net (loss) income $ (72,826) $ 46,975 Adjusted to exclude: Fees
Slide 20: Non-GAAP Reconciliations: NOI 2018 and 2017
Non-GAAP Reconciliations Below is a reconciliation of Net Income (Loss) to NOI for real estate investments and Pro Forma Same-Center NOI for the years ended December 31, 2018 and 2017 (dollars in thousands): 2018 2017 Change $ Change % Net income (loss) $ 46,975 $ (41,718) Adjusted to exclude: Fees
Slide 21: Non-GAAP Reconciliations: NOI 2017 and 2016
Non-GAAP Reconciliations Below is a reconciliation of Net (Loss) Income to NOI for real estate investments and Pro Forma Same-Center NOI for the years ended December 31, 2017 and 2016 (dollars in thousands): 2017 2016 Change $ Change % Net (loss) income $ (41,718) $ 9,043 Adjusted to exclude: Fees a
Slide 22: Non-GAAP Reconciliations: FFO and Core FFO
Non-GAAP Reconciliations Funds from Operations (“FFO”) and Core FFO 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) computed in
Slide 23: Non-GAAP Reconciliations: FFO Calculation
Non-GAAP Reconciliations The table below presents our calculation of FFO, FFO Attributable to Stockholders and Convertible Noncontrolling Interests, and Core FFO and provides additional information related to our operations (in thousands, except per share amounts): Year Ended December 31, (in thousa
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