Phillips Edison & Company, Inc. · NASDAQ:PECO
Phillips Edison & — Phillips Edison Grocery Center REIT I — Q3 2015 Earnings Presentation
17 slides from Phillips Edison &'s earnings presentation, Dec 16, 2015
Slide 1: Phillips Edison Grocery Center REIT I, Inc. Q3 2015 Results
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 0 Phillips Edison Grocery Center REIT I, Inc. Q3 2015 Results
Slide 2: Agenda
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 1 Agenda • Portfolio & Results • Financials • Strategy R. Mark Addy - Co-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 2 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 3 Portfolio Highlights • 147 properties • 28 states • 24 leading grocery anchors • $2.2 billion purchase price • 15.5 million square feet • 95.7% occupied • 80.2% of rents from grocer, national and regional tenants
Slide 5: Q3 2015 Portfolio Results
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 4 Q3 2015 Portfolio Results Grocer AER # of Locations Kroger 8.3% 35 Publix 8.1% 31 Albertsons-Safeway 4.6% 12 Ahold USA 3.5% 6 Giant Eagle 3.0% 7 Top 5 Grocers by Annualized Effective Rent Tenant Type by Annualized Effective Rent Grocery 42
Slide 6: Event Highlights
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 5 Event Highlights • Declared estimated value per share of $10.20 • Share Repurchase Program: Exceeded funding available
Slide 7: Q3 2015 Financials Strong Growth
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 6 Q3 2015 Financials Strong Growth Three Months Ended September 30, Nine Months Ended September 30, In thousands 2015 2014 2015 2014 Net Income $5,183 $2,143 $15,524 ($159) Funds from Operations (FFO) $30,548 $23,573 $90,180 $55,872 Modified
Slide 8: Q3 2015 Financials Prudent Debt Strategy
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 7 Q3 2015 Financials Prudent Debt Strategy • Leverage: 33.2%* • Weighted-Average Interest Rate: 3.7%** • Weighted-Average Years to Maturity: 4.2 years** • Fixed rate debt: 91.0% • Variable rate debt: 9.0% *Calculated as total debt, less cash
Slide 9: Q3 2015 Financials $400 MM Unsecured Term Loan Facility
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 8 Q3 2015 Financials $400 MM Unsecured Term Loan Facility • Three tranches with average term of 4.4 years, or 5.4 years with extension options, as of September 30, 2015 • Proceeds used to pay down the unsecured revolving credit facility • Se
Slide 10: Strategy Update
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 9 Strategy Update • Independent Company with Independent Board of Directors • Best in class portfolio of grocery-anchored shopping centers • Commitment to maximize value for shareholders
Slide 11: Same-Center Net Operating Income definition
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 10 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 12: Reconciliation of net income to Same-Center NOI; FFO definition
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 11 Reconciliation of Non-GAAP Financials Below is a reconciliation of net income (loss) to Same-Center NOI for the nine months ended September 30, 2015 and 2014 (in thousands): Funds from operations (“FFO”) is a non-GAAP performance financia
Slide 13: MFFO definition and adjustments
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 12 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 14: MFFO adjustments explained
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 13 Reconciliation of Non-GAAP Financials Many of the adjustments in arriving at MFFO are not applicable to us. Nevertheless, as explained below, management’s evaluation of our operating performance may also exclude items considered in the ca
Slide 15: MFFO rationale
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 14 Reconciliation of Non-GAAP Financials By providing MFFO, we believe we are presenting useful information that also assists investors and analysts to better assess the sustainability of our operating performance. We also believe that MFFO
Slide 16: The Grocery REITPhillips Edison-ARC Grocery Center REIT II 15 Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 15 Reconciliation of Non-GAAP Financials
Slide 17: Thank You
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 16 Thank You www.grocerycenterREIT1.com
Phillips Edison Grocery Center REIT I — Q3 2015 Earnings Presentation on 6ix