Phillips Edison & Company, Inc. · NASDAQ:PECO
Phillips Edison & — Phillips Edison Grocery Center REIT I — FY2015 Earnings Presentation
18 slides from Phillips Edison &'s earnings presentation, Mar 28, 2016
Slide 1: Phillips Edison Grocery Center REIT I, Inc. Year End 2015 Results
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 1 Phillips Edison Grocery Center REIT I, Inc. Year End 2015 Results
Slide 2: Agenda
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 2 Agenda • Portfolio & Results • Financials • Strategy R. Mark Addy - President and COO Devin Murphy - CFO Jeff Edison - Chairman and CEO
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: Portfolio Highlights
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 4 Portfolio Highlights • 147 properties • 28 states • 23 leading grocery anchors • 15.6 million square feet • 95.9% occupied • 80.0% of rents from grocer, national and regional tenants Information as of 12/31/2015.
Slide 5: 2015 Portfolio Results
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 5 2015 Portfolio Results Grocer AER # ofLocations Kroger 8.9% 37 Publix 8.1% 31 Albertsons-Safeway 4.5% 13 Ahold USA 3.5% 6 Giant Eagle 3.0% 7 Top 5 Grocers by Annualized Effective Rent Annualized Effective Rent by Tenant Type Annualized Eff
Slide 6: 2015 Same-Center Net Operating Income
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 6 2015 Same-Center Net Operating Income (in 000s) 2015 2014 $ Change % Change Revenues: Rental income(1) $ 101,740 $ 99,428 $ 2,312 Tenant recovery income 33,593 32,993 600 Other property income 625 706 (81) 135,958 133,127 2,831 2.1 % Opera
Slide 7: Share Repurchase Program and FINRA Rule 15-02 Updates
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 7 Share Repurchase Program and FINRA Rule 15-02 Updates • Declared estimated value per share of $10.20 as of July 31, 2015* • Share Repurchase Program Status • FINRA Rule 15-02 Update: will continue to be in compliance * Please note that the
Slide 8: Year End 2015 Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 8 Year End 2015 Financials Growth in Income and MFFO Consistent with Portfolio Growth Year Ended December 31 (In 000s) 2015 2014 Net Income (Loss) Attributable to Stockholders $ 13,360 $ (22,635) Funds from Operations (FFO) $ 113,400 $ 56,51
Slide 9: 2015 Financials Prudent Debt Strategy
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 9 2015 Financials Prudent Debt Strategy • Leverage: 35.1%* • Weighted-Average Interest Rate: 3.5% • Weighted-Average Years to Maturity: 3.5 • Fixed-rate debt: 81.8% • Variable-rate debt: 18.2% *Calculated as total debt, less cash and cash eq
Slide 10: 2015 Financials Appropriately Laddered Maturities
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 10 2015 Financials Appropriately Laddered Maturities Flexibility from Unsecured Credit Facility Maturity Schedule 400,000 300,000 200,000 100,000 0 $ (T ho us an ds ) 2016 2017 2018 2019 2020 Period Ending
Slide 11: Investment Objectives
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 11 Investment Objectives • Capital Preservation • Distributions • Growth Our commitment to our investors:
Slide 12: Appendix
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 12 Appendix
Slide 13: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 13 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 14: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 14 Reconciliation of Non-GAAP Financials Below is a reconciliation of net income (loss) to Same-Center NOI for the year ended December 31, 2015 and 2014 (in thousands): Funds from Operations and Modified Funds from Operations Funds from oper
Slide 15: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 15 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 16: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 16 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 17: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 17 Reconciliation of Non-GAAP Financials (in 000s) 2015 2014 2013 Calculation of FFO Net income (loss) attributable to stockholders $ 13,360 $ (22,635) $ (12,404) Add: Depreciation and amortization of real estate assets 101,522 79,160 30,512
Slide 18: Thank You
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 18 Thank You www.grocerycenterREIT1.com
Phillips Edison Grocery Center REIT I — FY2015 Earnings Presentation on 6ix