Phillips Edison & Company, Inc. · NASDAQ:PECO
Phillips Edison & — Phillips Edison Grocery Center REIT I — Q2 2016 Earnings Presentation
17 slides from Phillips Edison &'s earnings presentation, Aug 15, 2016
Slide 1: Phillips Edison Grocery Center REIT I, Inc. Second Quarter 2016 Results
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 1 Phillips Edison Grocery Center REIT I, Inc. Second Quarter 2016 Results www.grocerycenterREIT1.com DST: 888.518.8073 Griffin Capital Services: 866.788.8614
Slide 2: Agenda
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 2 Agenda • Portfolio & Results • Financial Performance • Other Updates R. Mark Addy - President and COO
Slide 3: Forward-Looking Statement Disclosure
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 3 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
Slide 4: Q2 2016 Portfolio Highlights
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 4 Q2 2016 Portfolio Highlights • 149 properties • 28 states • 25 leading grocery anchors • 16 million square feet • 96.1% occupied • 79.3% of rents from grocer, national and regional tenants Information as of 6/30/2016.
Slide 5: Q2 2016 Portfolio Highlights
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 5 Q2 2016 Portfolio Highlights Grocer % of ABR # ofLocations Kroger 8.5% 37 Publix 7.8% 31 Albertsons-Safeway 4.4% 13 Ahold USA 3.4% 6 Giant Eagle 2.8% 7 Top 5 Grocers by % of Annualized Base Rent Annualized Base Rent by Tenant Type Annualiz
Slide 6: Q2 2016 Acquisition Highlights
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 6 Name Location Grocer GLA Northwoods Crossing Taunton, MA BJ's Wholesale Club 159,562 Murphy Marketplace Murphy, TX Sprouts 217,832 Thompson Valley Outparcel Loveland, CO King Soopers 11,920 Q2 2016 Acquisition Highlights
Slide 7: Year to Date 2016 Same-Center Net Operating Income
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 7 Year to Date 2016 Same-Center(1) Net Operating Income Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2016 2015 $ Change % Change 2016 2015 $ Change % Change Revenues: Rental income(2) $ 41,794 $ 40,516 $ 1,278 $ 83,86
Slide 8: Q2 2016 Financial Performance
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 8 Q2 2016 Financial Performance Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2016 2015 $ Change(1) % Change 2016 2015 $ Change(1) % Change Net Income Attributable to Stockholders $ 560 $ 5,370 $ (4,810) (89.6)% $ 2,77
Slide 9: Debt Profile as of June 30, 2016
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 9 Debt Profile as of June 30, 2016 • Debt to Total Enterprise Value: 31.9%* • Weighted-Average Interest Rate: 3.2% • Weighted-Average Years to Maturity: 3.1 • Fixed-rate debt: 71.0% • Variable-rate debt: 29.0% *Calculated as net debt (total
Slide 10: Company Updates
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 10 Company Updates • Reaffirmed estimated net asset value per share of $10.20 as of March 31, 2016* • Completed Tender Offer • Share Repurchase Program Status • Partnered with Griffin Capital Corporation * Please note that the estimated valu
Slide 11: Appendix
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 11 Appendix
Slide 12: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 12 Reconciliation of Non-GAAP Financials 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 less property operating
Slide 13: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 13 Reconciliation of Non-GAAP Financials Below is a reconciliation of net income (loss) to Same-Center NOI for the six months ended June 30, 2016 and 2015 (in thousands): Funds from Operations and Modified Funds from Operations Funds from op
Slide 14: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 14 Reconciliation of Non-GAAP Financials Since the definition of FFO was promulgated by NAREIT, GAAP has expanded to include several new accounting pronouncements, such that management and many investors and analysts have considered the pres
Slide 15: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 15 Reconciliation of Non-GAAP Financials Neither FFO nor MFFO should be considered as an alternative to net income (loss) or income (loss) from continuing operations under GAAP, nor as an indication of our liquidity, nor is either of these m
Slide 16: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 16 Reconciliation of Non-GAAP Financials Three Months Ended June 30, Six Months Ended June 30, (in 000s) 2016 2015 2016 2015 Calculation of FFO Net income attributable to stockholders $ 560 $ 5,370 $ 2,779 $ 10,341 Adjustments: Depreciation
Slide 17: Thank You
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 17 Thank You www.grocerycenterREIT1.com DST: 888.518.8073 Griffin Capital Services: 866.788.8614
Phillips Edison Grocery Center REIT I — Q2 2016 Earnings Presentation on 6ix