Phillips Edison & Company, Inc. · NASDAQ:PECO
Phillips Edison & — Q1 2019 Earnings Presentation
22 slides from Phillips Edison &'s earnings presentation, May 9, 2019
Slide 1: First Quarter 2019 Results Presentation
First Quarter 2019 Results Presentation Thursday, May 9, 2019
Slide 2: Agenda
Agenda Prepared Remarks Jeff Edison - Chairman and CEO • Highlights • Estimated Value Per Share Update • Portfolio Update Devin Murphy - CFO • Financial Results • Balance Sheet • Share Repurchase Program Jeff Edison - Chairman and CEO • Update on 2019 Initiatives Question and Answer Session www.phil
Slide 3: Forward-Looking Statement Disclosure
Forward-Looking Statement Disclosure Certain statements contained in this presentation of Phillips Edison & Company, Inc. (“we,” the “Company,” “our,” or “us”) other than historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
Slide 4: Highlights
Highlights First Quarter 2019 Highlights • Net loss totaled $5.8 million • FFO per diluted share increased 5.6% to $0.19 • FFO represented 111.3% of total distributions made during the quarter • Pro forma same-center net operating income (“NOI”)* increased 2.5% to $87.3 million • Comparable new leas
Slide 5: Estimated Value Per Share Increase
Estimated Value Per Share Increase • Duff & Phelps, an independent third-party valuation firm, produced an estimated value per share (“EVPS”) range of $10.07 to $11.48 as of March 31, 2019 • On May 8, 2019, the Company’s board of directors increased the estimated value per share of its common stock
Slide 6: History of Adding Stockholder Value
History of Adding Stockholder Value Estimated Value Per Share Annualized Distributions PECO Equity Multiple • Offering price: $10.00 • Current: $0.67/sh (6.7% of • Investors have received • May 2019: $11.10 offering price)1 returns of 68% and 96% on • FFO covered 111.3% of their original investment2
Slide 7: Portfolio Overview
Portfolio Overview March 31, 2019 Wholly-owned Properties 300 Leading Grocery Anchors 37 States 32 Square Feet 34.1 million Total Leased Occupancy 93.0% In-line Leased Occupancy 85.7% Rent from grocer, national and 77.0% regional tenants Joint Venture-owned Properties 30 Joint Venture (“JV”) Relatio
Slide 8: Portfolio Composition at Annualized Base Rent
Portfolio Composition at March 31, 2019 Annualized Base ABR by Tenant Rent (“ABR”) by Local Industry: Restaurants Tenant Type: 14.7% 23.0% Grocery Grocery 36.3% 36.3% Services National and 25.5% Regional 40.7% Retail 23.5% Top 5 Grocers by ABR Top 5 Grocer Brand Logos Grocer % of ABR # of Locations
Slide 9: Pro Forma Same-Center NOI
Pro Forma Same-Center NOI Three Months Ended March 31, 2019 Three Months Ended Favorable March 31, (Unfavorable) (in thousands) 2019 2018 $ Change % Change Revenues:(1) Rental income(2) $ 92,270 $ 91,451 $ 819 0.9 % Tenant recovery income 29,980 31,737 (1,757) (5.5)% Other property income 620 689 (6
Slide 10: Financial Results
Financial Results Three Months Ended March 31, 2019 Three Months Ended Favorable March 31, (Unfavorable) (in thousands) 2019 2018 $ Change % Change Net Loss $ (5,788) $ (1,837) $ (3,951) NM Adjustments(1) 66,803 42,202 24,601 58.3 % FFO Attributable to Stockholders and Convertible 61,015 40,365 20,6
Slide 11: Debt Profile and Maturity Ladder
Debt Profile and Maturity Ladder March 31, 2019 Net Debt to Total Enterprise Value* 40.8% Weighted-Average Interest Rate 3.5% Weighted-Average Years to Maturity 4.8 Fixed-Rate Debt 86.8% Variable-Rate Debt 13.2% www.phillipsedison.com/investors *See Appendix for a complete calculation of net debt to
Slide 12: Share Repurchase Program
Share Repurchase Program • During the first quarter of 2019, PECO repurchased 605,000 shares totaling $6.7 million. • The Company fulfilled all repurchases sought upon a stockholder’s death, qualifying disability, or determination of incompetence in accordance with the terms of the SRP. • All standa
Slide 13: 2019 Initiatives
2019 Initiatives Important strategies to maximize our potential future valuation in the public equity markets: 1. Focus on growth, operating fundamentals, and NOI at the property level a. Driving occupancy, leasing spreads and merchandising b. Investment in redevelopment and repositioning projects t
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 Investor Services: (888) 518-8073 Advisor Services - Griffin Capital Securities: (866) 788-8614
Slide 16: Appendix
Appendix
Slide 17: 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 18: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Three Months Ended March 31, (in thousands, except per share amounts) 2019 2018 Calculation of FFO Attributable to Stockholders and Convertible Noncontrolling Interests Net loss $ (5,788) $ (1,837) Adjustments: Depreciation and amortization of real estate assets
Slide 19: 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. For purposes of evaluating Same-Center NOI on a comparative basis, we are presenting Pro Forma Same-Center NOI, whi
Slide 20: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials NOI from the REIT II properties acquired prior to the Merger was obtained from the accounting records of REIT II without adjustment. The accounting records were subject to internal review by us. The table below provides Same-Center NOI detail for the non-ownersh
Slide 21: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials Below is a reconciliation of Net Loss to NOI for owned real estate investments and Pro Forma Same-Center NOI (in thousands): Three Months Ended March 31, 2019 2018 Net loss $ (5,788) $ (1,837) Adjusted to exclude: Fees and management income (3,261) (8,712) Strai
Slide 22: Net Debt to Total Enterprise Value
Net Debt to Total Enterprise Value Our debt is subject to certain covenants and, as of March 31, 2019, we were in compliance with the restrictive covenants of our outstanding debt obligations. We expect to continue to meet the requirements of our debt covenants over the short- and long-term. Our deb
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