Phillips Edison & Company, Inc. reported a net income of $69.7 million for the fiscal year ending December 31, 2024, marking a 9.3% increase from the previous year's net income of $63.8 million. The company's total revenues rose to $661.4 million, an 8.4% increase from $610.1 million in 2023, primarily driven by a $50.1 million increase in rental income. The company’s same-center net operating income (NOI) improved by 3.8% to $430.4 million, reflecting strong operational performance and effective management of its grocery-anchored shopping centers.
In terms of strategic developments, Phillips Edison acquired $294 million in wholly-owned assets and $11.6 million in assets through unconsolidated joint ventures during 2024. The company also reported a significant increase in its annualized base rent (ABR), which reached $510 million, up from $471 million in 2023. The portfolio's occupancy rate improved to 97.7%, up 30 basis points from the previous year, indicating continued demand for its properties. Approximately 69% of the ABR was generated from tenants providing necessity-based goods and services, underscoring the company's focus on essential retail.
Operationally, Phillips Edison managed a portfolio of 316 shopping centers, including 294 wholly-owned properties, totaling approximately 35.7 million square feet across 31 states. The company reported a 35.7% comparable rent spread for new leases signed in 2024, indicating strong pricing power in its leasing activities. The average remaining lease term across its portfolio was 4.4 years, with a retention rate of 89% for expiring leases, reflecting effective tenant management strategies.
Looking ahead, Phillips Edison aims to continue its growth trajectory through disciplined acquisitions and strategic investments, targeting an annual acquisition volume of $350 million to $450 million. The company has also amended its revolving credit facility to increase its borrowing capacity to $1 billion, enhancing its financial flexibility. Despite potential challenges from rising interest rates and inflation, Phillips Edison remains optimistic about its operational resilience and the ongoing demand for grocery-anchored shopping centers, which are well-positioned to adapt to evolving consumer preferences.