Phillips Edison Reports 10.1% Revenue Growth in Q2 2025, Net Income Declines

Phillips Edison & Company, Inc. reported its financial results for the second quarter and first half of 2025, showing a total revenue of $177.8 million for the three months ended June 30, 2025, a 10.1% increase from $161.5 million in the same period last year. For the six months, revenue rose to $356.1 million, up 10.3% from $322.8 million in 2024. The increase in revenue was primarily driven by a $15.2 million rise in rental income, which reached $173.5 million, and a $0.8 million increase in fees and management income, totaling $3.3 million. However, net income attributable to stockholders decreased to $12.8 million, or $0.10 per share, down from $15.3 million, or $0.12 per share, in the prior year.

The company experienced significant changes in its financial position compared to the previous fiscal period. Total assets increased to $5.3 billion as of June 30, 2025, from $5.0 billion at the end of 2024, primarily due to a rise in real estate investments, which grew to $6.8 billion from $6.6 billion. Total liabilities also increased to $2.7 billion, up from $2.4 billion, largely attributed to higher debt obligations, which rose to $2.4 billion from $2.1 billion. The company’s equity decreased to $2.6 billion from $2.6 billion, reflecting a decline in accumulated other comprehensive income and an increase in accumulated deficit.

Strategically, Phillips Edison has been active in expanding its portfolio, acquiring 10 properties for a total of $268.1 million during the first half of 2025, compared to four properties for $116.2 million in the same period last year. The company also sold one property for $24.9 million, resulting in a gain of $5.5 million. As of June 30, 2025, the company owned 303 wholly-owned properties and had interests in additional properties through joint ventures, totaling approximately 36.6 million square feet across 31 states.

Operationally, the company reported a leased occupancy rate of 97.4% across its portfolio, slightly down from 97.5% a year earlier. The average remaining lease term remained stable at 4.4 years. Phillips Edison’s total cash and cash equivalents increased to $9.2 million, up from $8.6 million at the beginning of the year. The company’s net cash provided by operating activities was $156.7 million, a 10.6% increase from $141.6 million in the prior year, indicating strong operational cash flow.

Looking ahead, Phillips Edison remains focused on its growth strategy, emphasizing the acquisition of grocery-anchored shopping centers in strong demographic markets. The company anticipates that its current sources of liquidity will be sufficient to meet its short- and long-term cash demands, including capital expenditures and distributions to stockholders. The company’s management expressed optimism about its ability to navigate potential economic challenges while continuing to enhance its portfolio and operational performance.