Phillips Edison & Company, Inc. · NASDAQ:PECO
Phillips Edison & — Q1 2018 Earnings Presentation
22 slides from Phillips Edison &'s earnings presentation, May 10, 2018
Slide 1: First Quarter 2018 Results Presentation
First Quarter 2018 Results Presentation Thursday, May 10, 2018
Slide 2: Agenda
Agenda Prepared Remarks R. Mark Addy - Executive Vice President • Intro & Portfolio Update Jeff Edison - Chairman and CEO • Estimated Value per Share Update & Market Commentary Devin Murphy - CFO • Financial Results R. Mark Addy - Executive Vice President • Share Repurchase Program & Liquidity Quest
Slide 3: Forward-Looking Statement Disclosure
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 not limited to, statement
Slide 4: Portfolio Highlights
Portfolio Highlights March 31, 2018 Total Properties 237 Leading Grocery Anchors 34 States 32 26.4 Square Feet million Leased Occupancy 93.6% Rent from grocer, national and regional tenants 77.2% www.phillipsedison.com/investors 4
Slide 5: Q1 2018 Portfolio Results
Q1 2018 Portfolio Results Annualized Base Rent by Tenant Type Annualized Base Rent by Tenant Industry Top 5 Grocers by % of Annualized Base Rent Grocer % of ABR # of Locations Kroger 9.2% 55 Publix Super Markets 6.1% 37 Ahold Delhaize 3.6% 19 Albertsons Companies 3.4% 17 Giant Eagle 2.4% 9 We calcul
Slide 6: Q1 2018 Highlights
Q1 2018 Highlights First Quarter 2018 Highlights (vs. First Quarter 2017) • Acquired one grocery-anchored shopping center for $8.4 million • Net loss totaled $1.8 million • Pro forma same-center net operating income (NOI)1 increased 4.3% to $61.3 million • Funds from operations (FFO) increased 40.4%
Slide 7: Estimated Value per Share
Estimated Value per Share • Duff & Phelps, an independent third-party valuation firm, produced an estimated value per share in the range of $10.35 to $11.75 as of March 31, 2018 • On May 9, 2018, the company’s board of directors established the estimated value per share of its common stock and opera
Slide 8: Shopping Center Real Estate Market Update
Shopping Center Real Estate Market Update • Publicly traded peers continue to trade at a discount to NAV As of April 30, our publicly traded peers were trading at an average discount to NAV of approximately 29%* ⦁ We believe this is a disconnect between the public and private valuations of retail re
Slide 9: Q1 2018 Pro Forma Same-Center NOI Results
Q1 2018 Pro Forma Same-Center NOI(1) Results Three Months Ended March 31, (in thousands) 2018 2017 $ Change % Change Revenues: Rental income(2) $ 65,453 $ 64,521 $ 932 Tenant recovery income 21,181 21,127 54 Other property income 570 474 96 Total Revenues 87,204 86,122 1,082 1.3% Operating expenses:
Slide 10: Q1 2018 Financials Results
Q1 2018 Financials Results Three Months Ended March 31, (in thousands) 2018 2017 $ Change % Change Net (Loss) Income $ (1,837) $ 1,134 $ (2,971) NM Adjustments(1) 42,202 27,624 14,578 52.8% FFO Attributable to Stockholders and Convertible Noncontrolling Interests 40,365 28,758 11,607 40.4% Adjustmen
Slide 11: Debt Profile and Maturity Ladder
Debt Profile and Maturity Ladder March 31, 2018 Net Debt to Enterprise Value* 41.9% Weighted-Average Interest Rate 3.4% Weighted-Average Years to Maturity 5.2 Fixed-Rate Debt 87.1% Variable-Rate Debt 12.9% www.phillipsedison.com/investors *See Appendix for a complete calculation of Net debt to enter
Slide 12: Share Repurchase Program
Share Repurchase Program • Repurchased $37.4M in April 2018 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 repur
Slide 13: Liquidity
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 incentivizes future performan
Slide 14: 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. www.phillipsedison.com/investors 14
Slide 15: For More Information
For More Information: InvestorRelations@PhillipsEdison.com www.phillipsedison.com/investors DST: (888) 518-8073 Griffin Capital Securities: (866) 788-8614
Slide 16: Appendix
Appendix
Slide 17: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 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 c
Slide 18: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Below is a reconciliation of Net (Loss) Income to NOI and Same-Center NOI for the three months ended March 31, 2018 and 2017 (in thousands): Three Months Ended March 31, 2018 2017 Net (loss) income $ (1,837) $ 1,134 Adjusted to exclude: Fees and management incom
Slide 19: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials NOI from the PELP properties acquired prior to the PELP transaction was obtained from the accounting records of PELP without adjustment. The accounting records were subject to internal review by the company. The table below provides Same-Center NOI detail for th
Slide 20: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Funds from Operations and Modified 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
Slide 21: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Three Months Ended March 31, (in thousands, except per share amounts) 2018 2017(1) Calculation of FFO Attributable to Stockholders and Convertible Noncontrolling Interests Net (loss) income $ (1,837) $ 1,134 Adjustments: Depreciation and amortization of real est
Slide 22: Net Debt to Total Enterprise Value
Net Debt to Total Enterprise Value The following table presents the company’s calculation of debt to total enterprise value as of March 31, 2018 and December 31, 2017 (dollars in thousands): 2018 2017 Net debt: Total debt, excluding below-market adjustments and deferred financing costs $ 1,844,879 $
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