Phillips Edison & Company, Inc. (PECO), a leading real estate investment trust (REIT) specializing in grocery-anchored shopping centers, reported a significant increase in financial performance for the fiscal year ending December 31, 2025. The company achieved a net income of $123.0 million, marking a $53.3 million increase from the previous year, primarily driven by gains from property disposals and strong operational performance. Total revenues rose by 9.9% to $726.6 million, with rental income contributing $709.2 million, a 9.5% increase compared to 2024. The company also reported a notable improvement in its Nareit Funds From Operations (FFO) per diluted share, which increased by $0.17 to $2.54, and Core FFO per diluted share, which also rose by $0.17 to $2.60.
In terms of strategic developments, PECO executed a robust acquisition strategy, acquiring $395.5 million in assets during the year, including $356.9 million in wholly-owned properties. The company disposed of nine properties and one outparcel for net proceeds of $121.7 million, which were reinvested into its portfolio. As of December 31, 2025, PECO's portfolio consisted of 324 shopping centers, with a leased occupancy rate of 97.3%. The company reported strong demand for its spaces, with comparable rent spreads of 30.9% for new leases and 20.7% for renewals.
Operationally, PECO's focus on necessity-based goods and services continued to pay off, with approximately 70% of its annualized base rent (ABR) derived from tenants providing essential products. The company maintained a high occupancy rate across its portfolio, with inline occupancy improving to 95.1%. PECO's strategic emphasis on smaller, grocery-anchored centers has positioned it well in suburban markets, where it benefits from strong demographic trends and consumer demand.
Looking ahead, PECO remains optimistic about its growth trajectory, targeting acquisitions of $400 million to $500 million annually. The company plans to continue leveraging its investment-grade balance sheet, which as of December 31, 2025, included $925.1 million in total liquidity and a well-structured debt maturity profile. PECO's management expressed confidence in its ability to navigate potential market challenges, including rising interest rates and inflation, while continuing to enhance shareholder value through disciplined capital allocation and operational excellence.
About Phillips Edison & Company, Inc.
Phillips Edison & Company, Inc. is a real estate investment trust specializing in owning and operating grocery-anchored shopping centers across the U.S. Its portfolio primarily includes neighborhood centers with necessity-based tenants, emphasizing omni-channel retail strategies. The company focuses on long-term growth through acquisitions, development, and redevelopment, leveraging an integrated platform, responsible management, and strong community engagement to deliver stable cash flows and value creation.
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