Education
About Us
Working with TipRanks
Follow Us
Phillips Edison & Company (PECO)
NASDAQ:PECO
RESEARCH TOOLSreports
Top Page
Phillips Edison & Company
(NASDAQ:PECO)
70Outperform
Positive Factors
Acquisitions
The acquisition guidance was increased, indicating potential for future growth and expansion.
Earnings
Phillips Edison & Company reported Core FFO of $0.62, which exceeded market expectations.
Financial Performance
The upgrade of Phillips Edison & Co Inc (PECO) to Outperform from Peer Perform reflects a positive outlook on the company's performance and potential returns.
Negative Factors
Acquisition Cap Rates
1Q25 acquisition cap rates are below expectations.
Earnings Guidance
'25 earnings guidance was reiterated below the Street expectations.
Occupancy
There was a sequential dip in billed occupancy and lower tenant retention.
Phillips Edison & Company (PECO) vs. S&P 500 (SPY)
Market Cap
$4.85B
Dividend Yield3.44%
Average Volume (3M)926.97K
Price to Earnings (P/E)62.5
Beta (1Y)0.42
Revenue Growth9.05%
EPS Growth19.51%
CountryUS
Employees300
SectorReal Estate
Sector Strength77
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.56
Shares Outstanding125,371,925
10 Day Avg. Volume836,648
30 Day Avg. Volume926,972
Financial Highlights & Ratios
PEG Ratio3.20
Price to Book (P/B)N/A
Price to Sales (P/S)6.61
Price to Cash Flow (P/CF)13.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.60
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit16.47
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$38.00Price Target Upside8.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Phillips Edison & Company Business Overview & Revenue Model
Company DescriptionPhillips Edison & Company (PECO) is a real estate investment trust (REIT) specializing in the ownership and management of grocery-anchored shopping centers. With a focus on necessity-based retail, the company operates a diversified portfolio of properties across the United States, providing essential retail space for supermarkets and other convenience-oriented retailers. PECO leverages its expertise in property management and leasing to deliver value for its tenants and shareholders.
How the Company Makes MoneyPhillips Edison & Company primarily generates revenue through leasing space in its portfolio of grocery-anchored shopping centers. The company earns rental income from its tenants, which include grocery stores, discount retailers, and various service providers. Additionally, PECO benefits from long-term leases with built-in rent escalations, providing a stable and predictable revenue stream. The company may also engage in property acquisitions and dispositions to optimize its portfolio and increase returns. Furthermore, PECO's focus on essential retail tenants helps ensure consistent demand, contributing to its financial stability and growth.
Phillips Edison & Company Financial Statement Overview
Summary
Phillips Edison & Company demonstrates strong operational efficiency and financial stability, highlighted by consistent revenue growth, a robust cash flow, and a solid balance sheet with no debt reported. However, recent net income challenges indicate potential cost management issues or external market conditions that need addressing.Income Statement
Phillips Edison & Company shows a steady growth trajectory with a consistent increase in total revenue over recent years. The gross profit margin and EBITDA margin remain strong, reflecting efficient operations. However, the net profit margin has fluctuated, with a notable negative net income in the latest year, which suggests potential challenges in managing costs or external factors affecting profitability.72
Positive
Balance Sheet
The company exhibits a solid balance sheet with zero total debt reported in the latest year, significantly reducing financial risk. The equity ratio is stable, indicating a strong equity base relative to total assets. Return on equity has been positive in previous years, although the recent negative net income could impact ROE. Overall, the balance sheet reflects financial stability and prudent management.80
Positive
Cash Flow
The cash flow statements reveal robust operating cash flow, consistently covering capital expenditures, leading to positive free cash flow. The free cash flow growth rate is positive, indicating effective cash management. The operating cash flow to net income ratio is strong, highlighting efficient conversion of earnings into cash, despite recent net income challenges.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 661.39M | 610.12M | 575.37M | 532.85M | 498.02M | Gross Profit |
| 471.07M | 435.00M | 412.15M | 374.55M | 343.51M | EBIT |
| 170.63M | 154.20M | 118.53M | 69.94M | 86.69M | EBITDA |
| 418.41M | 390.64M | 354.75M | 315.04M | 315.44M | Net Income Common Stockholders |
| -7.01M | 56.85M | 48.32M | 15.12M | 4.77M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.88M | 4.87M | 5.48M | 92.58M | 104.30M | Total Assets |
| 6.55B | 4.87B | 4.74B | 4.67B | 4.68B | Total Debt |
| 2.23B | 2.08B | 1.90B | 2.00B | 2.39B | Net Debt |
| -4.88M | 2.07B | 1.89B | 1.91B | 2.29B | Total Liabilities |
| 2.41B | 2.21B | 2.14B | 2.19B | 2.66B | Stockholders Equity |
| 2.32B | 2.31B | 2.24B | 2.15B | 1.69B |
| Cash Flow | Free Cash Flow | |||
| 239.63M | 195.71M | 186.40M | 187.87M | 146.61M | Operating Cash Flow |
| 334.71M | 290.97M | 290.89M | 262.90M | 210.58M | Investing Cash Flow |
| -392.94M | -353.39M | -331.25M | -180.49M | -44.09M | Financing Cash Flow |
| 58.01M | 53.95M | -57.83M | -98.82M | -129.66M |
Phillips Edison & Company Technical Analysis
Negative
35.08
Price Trends
35.54
Negative
36.28
Negative
36.15
Negative
Market Momentum
-0.03
Negative
47.25
Neutral
51.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PECO, the sentiment is Negative. The current price of 35.08 is below the 20-day moving average (MA) of 35.44, below the 50-day MA of 35.54, and below the 200-day MA of 36.15, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 51.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PECO.
Phillips Edison & Company Risk Analysis
Phillips Edison & Company disclosed 55 risk factors in its most recent earnings report. Phillips Edison & Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Phillips Edison & Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.77B | 25.94 | 7.43% | 5.05% | 6.96% | -0.41% | |
72 Outperform | $7.48B | 21.95 | 11.61% | 4.29% | 3.41% | 10.54% | |
70 Outperform | $4.85B | 62.53 | 3.09% | 3.44% | 9.05% | 19.51% | |
67 Neutral | $4.80B | 1,180.54 | 0.52% | 4.72% | 2.42% | -91.46% | |
66 Neutral | $3.63B | 36.27 | 16.02% | 3.43% | 13.29% | -4.51% | |
59 Neutral | $2.72B | 11.58 | 0.11% | 8770.69% | 5.44% | -16.36% | |
53 Neutral | $3.89B | ― | -7.50% | 4.58% | 4.88% | -66.88% |
* Real Estate Sector Average
Performance Comparison
PECO
Phillips Edison & Company
35.08
3.49
11.05%
MAC
Macerich
14.83
-0.55
-3.58%
SKT
Tanger
32.09
4.21
15.10%
KRG
Kite Realty Group
21.84
1.13
5.46%
BRX
Brixmor Property
25.78
4.57
21.55%
FCPT
Four Corners Property
27.71
5.21
23.16%
Phillips Edison & Company Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -0.40%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call showcased strong operational performance with high occupancy and robust leasing spreads. Despite macroeconomic uncertainties and potential tariff impacts, PECO maintained a positive outlook with strong acquisition activity and affirmed full-year guidance. The presence of a significant one-time lease termination fee and concerns over increasing variable rate debt exposure were noted but did not overshadow the positive aspects.Q1-2025 Updates
Positive Updates
Strong Same-Center NOI Growth
The PECO team delivered a strong quarter of growth with same-center NOI increasing by 3.9%.
High Occupancy and Leasing Performance
Portfolio occupancy remained high at 97.1%, with anchor occupancy at 98.4%. In-line renewal rent spreads reached a record high of 21.7%, and comparable new leasing rent spreads were 28.1%.
Robust Acquisition Activity
During the first quarter, PECO purchased $146 million in assets with a strong pipeline and affirmed acquisition guidance of $350 million to $450 million for 2025.
Full-Year Guidance Affirmed
PECO affirmed its 2025 guidance for Nareit FFO per share increase of 5.7% over 2024 at the mid-point and Core FFO per share increase of 5.1% at the mid-point.
Record In-Line Renewal Rent Spreads
The first quarter saw record high in-line renewal rent spreads of 21.7%, reflecting strong leasing and retention environment.
Negative Updates
Concerns Over Tariffs and Economic Uncertainty
There is uncertainty about the macroeconomic environment and potential impacts of tariffs, though no immediate signs of slowing demand.
Lease Termination Impact
First-quarter FFO benefited from a one-time lease termination fee, which was highlighted as non-recurring.
Increased Variable Rate Debt Exposure
PECO's variable rate debt exposure is expected to increase from 14% to about 25-26% later this year due to swap expirations.
Company Guidance
During the first quarter of 2025 earnings call for Phillips Edison & Company, the company provided several key metrics and affirmed its guidance for the year. The company reported a same-center net operating income (NOI) growth of 3.9% and maintained high portfolio occupancy at 97.1%, with anchor occupancy at 98.4%. Lease renewal rent spreads reached a record high of 21.7%, while new leasing rent spreads were 28.1%. Phillips Edison confirmed its guidance for 2025, projecting a Nareit FFO per share increase of 5.7% over 2024 at the mid-point and a Core FFO per share increase of 5.1% at the mid-point. The company aims for a 3% to 3.5% same-center NOI growth for the year. Additionally, they expect to acquire $350 million to $450 million in assets, targeting an unlevered internal rate of return (IRR) of 9%. The company emphasized its focus on grocery-anchored centers, with 71% of its annual base rent (ABR) derived from necessity-based goods and services, providing insulation against potential tariff disruptions.Phillips Edison & Company Corporate Events
Business Operations and StrategyFinancial Disclosures
Phillips Edison Reports Strong Q1 2025 Financial Results
Positive
Apr 24, 2025
On April 24, 2025, Phillips Edison & Company reported its financial results for the first quarter of 2025, showing strong performance with a net income of $26.3 million and significant growth in funds from operations. The company affirmed its full-year earnings guidance, highlighting a 3.9% increase in same-center net operating income and strong leasing activity. The company acquired six shopping centers and extended its revolving credit facility, positioning itself for continued growth and stability in the grocery-anchored retail sector.
Spark’s Take on PECO Stock
According to Spark, TipRanks’ AI Analyst, PECO is a Outperform.
Phillips Edison & Company is well-positioned with strong operational and financial fundamentals, reflected in its solid financial performance and positive earnings call guidance. Technical indicators suggest moderate stability, while valuation metrics indicate high earnings multiples, posing a risk of overvaluation. Overall, the company’s strengths in leasing performance and strategic acquisitions drive a favorable outlook, but careful attention to cost management and external challenges is warranted.
To see Spark’s full report on PECO stock, click here.
Dividends
Phillips Edison & Co. Declares Upcoming Monthly Dividends
Positive
Feb 12, 2025
Phillips Edison & Company announced that its Board of Directors declared monthly dividend distributions of $0.1025 per share for March and April 2025, payable on April 1 and May 1 respectively. This decision reflects the company’s ongoing commitment to returning value to its stockholders and maintaining its financial stability, with operating partnership unit holders receiving distributions at the same rate as common stockholders.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Phillips Edison Reports Strong 2024 Financial Growth
Positive
Feb 6, 2025
On February 6, 2025, Phillips Edison & Company announced its financial results for the fourth quarter and full year of 2024, demonstrating significant growth. The company reported a net income of $62.7 million for the year and highlighted a 5.3% growth in Nareit FFO per share and a 3.8% growth in Core FFO per share compared to 2023. The company also announced the acquisition of fourteen shopping centers and four land parcels for a total of $305.7 million in 2024, with plans to continue expansion in 2025. The occupancy rates remained high, and leasing activity was robust, with significant rent spreads for new and renewal leases, positioning the company strongly within its industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.