Phillips Edison & Company (PECO)
NASDAQ:PECO
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Phillips Edison & Company
(NASDAQ:PECO)
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Rating:71Outperform
Price Target:
$43.00
▲(16.72% Upside)
Action:UpgradedDate:02/27/26
PECO scores well primarily due to solid fundamentals (strong margins, improving profitability, and durable cash generation) and a positive forward outlook from management’s guidance and operating metrics (NOI/FFO growth, high occupancy, strong leasing). The overall score is held back by balance-sheet leverage and a relatively expensive earnings multiple, while technicals remain supportive but somewhat stretched.
Positive Factors
High portfolio occupancy & retention
Sustained ultra‑high occupancy and retention materially reduce downtime, tenant improvement costs and vacancy risk. For a grocery-anchored REIT this underpins stable rental cash flows, predictable NOI and resilience versus cyclic retail weakness, supporting durable distributable cash.
Negative Factors
Elevated leverage and rating constraints
Material leverage increases sensitivity to rising interest rates and credit markets, constraining rating upside and borrowing cost improvements. At ~5.2x net debt/EBITDA, capital flexibility for large bolt-on deals, buybacks or aggressive growth is limited without adding equity or extending maturities.
Read all positive and negative factors
Positive Factors
Negative Factors
High portfolio occupancy & retention
Sustained ultra‑high occupancy and retention materially reduce downtime, tenant improvement costs and vacancy risk. For a grocery-anchored REIT this underpins stable rental cash flows, predictable NOI and resilience versus cyclic retail weakness, supporting durable distributable cash.
Read all positive factors
Phillips Edison & Company (PECO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.10B
Dividend Yield3.52%
Average Volume (3M)898.37K
Price to Earnings (P/E)23.4
Beta (1Y)0.28
Revenue Growth10.58%
EPS Growth37.97%
CountryUS
Employees300
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.38
Shares Outstanding125,800,000
10 Day Avg. Volume972,616
30 Day Avg. Volume898,369
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)1.93
Price to Sales (P/S)6.03
P/FCF Ratio20.84
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue9.80
Enterprise Value/Gross Profit13.78
Enterprise Value/Ebitda14.47
Forecast
1Y Price Target
$40.60Price Target Upside10.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)0.71
Revenue Forecast (FY)$757.77M
Phillips Edison & Company Business Overview & Revenue Model
Company Description
Phillips Edison & Company, Inc. (PECO), an internally-managed REIT, is one of the nation's largest owners and operators of grocery-anchored shopping centers. PECO's diversified portfolio of well-occupied neighborhood shopping centers features a mi...
How the Company Makes Money
PECO generates revenue primarily through rental income from its portfolio of grocery-anchored shopping centers. The company leases space to a variety of retailers, with a focus on essential services that maintain high foot traffic. Key revenue str...
Phillips Edison & Company Key Performance Indicators (KPIs)
Phillips Edison & Company Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: robust FFO and NOI growth in 2025, strong leasing results, high occupancy and retention, substantial liquidity, disciplined acquisition targets and an actionable pipeline that supports 2026 guidance. Headwinds include heightened acquisition competition, a modest uptick in bad debt to ~78 bps (expected to remain stable), leverage/credit rating scale limitations, and macro retail risks. Overall, management conveyed confidence in executing growth plans while remaining disciplined on underwriting and capital allocation.Positive Updates
Strong FFO and Core FFO Growth
Fiscal 2025 NAREIT FFO per share grew 7.2% and core FFO per share grew 7.0%; fourth quarter NAREIT FFO was $88.8M ($0.64 per diluted share) and fourth quarter core FFO was $91.1M ($0.66 per diluted share). 2026 guidance implies mid-single digit growth for NAREIT and core FFO, with NAREIT FFO per share guidance up ~5.5% and core FFO per share up ~5.4% year-over-year at the midpoint.
Negative Updates
Competition in Acquisition Market
Management noted intensified competition for high-quality grocery-anchored assets though they also report a large influx of product; underwriting discipline remains essential to hit target unlevered IRRs of 9%–10%.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong FFO and Core FFO Growth
Fiscal 2025 NAREIT FFO per share grew 7.2% and core FFO per share grew 7.0%; fourth quarter NAREIT FFO was $88.8M ($0.64 per diluted share) and fourth quarter core FFO was $91.1M ($0.66 per diluted share). 2026 guidance implies mid-single digit growth for NAREIT and core FFO, with NAREIT FFO per share guidance up ~5.5% and core FFO per share up ~5.4% year-over-year at the midpoint.
Read all positive updates
Company Guidance
PECO’s 2026 guidance calls for net income of $0.74–$0.77 per share, same-center NOI growth of 3%–4%, NAREIT FFO per share up roughly 5.5% (mid‑single digits) and core FFO per share up ~5.4% (mid‑single digits) at the midpoint; management expects bad debt roughly in line with 2025 (~78 bps of revenue) and the guidance assumes no equity issuance. Capital deployment plans include $400M–$500M of gross acquisitions (PECO share), $100M–$200M of dispositions (Bob cited $100M–$150M), funding from existing liquidity (~$925M), free cash flow (>$120M available after distributions), dispositions and opportunistic debt, with net debt/TTM adjusted EBITDA ~5.2x (5.1x last quarter annualized) and 85% fixed‑rate debt versus a ~90% target. Longer term, PECO reiterated 3%–4% same‑center NOI and mid‑ to high‑single‑digit core FFO per‑share growth with potential upside to AFFO as renewals skew heavier.Phillips Edison & Company Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 732.30M | 661.39M | 610.12M | 575.37M | 532.85M |
| Gross Profit | -10.19M | 471.07M | 435.00M | 412.15M | 374.55M |
| EBITDA | 505.75M | 410.97M | 380.33M | 355.62M | 322.15M |
| Net Income | 111.30M | 62.69M | 56.85M | 48.32M | 15.12M |
Balance Sheet | |||||
| Total Assets | 5.29B | 5.05B | 4.87B | 4.74B | 4.67B |
| Cash, Cash Equivalents and Short-Term Investments | 19.90M | 4.88M | 13.44M | 13.27M | 98.14M |
| Total Debt | 2.49B | 2.11B | 2.08B | 2.01B | 2.00B |
| Total Liabilities | 2.70B | 2.41B | 2.21B | 2.14B | 2.19B |
| Stockholders Equity | 2.29B | 2.32B | 2.31B | 2.24B | 2.15B |
Cash Flow | |||||
| Free Cash Flow | 212.00M | 239.63M | 195.71M | 186.40M | 187.87M |
| Operating Cash Flow | 348.15M | 334.71M | 290.97M | 290.89M | 262.90M |
| Investing Cash Flow | -392.29M | -392.94M | -353.39M | -331.25M | -180.49M |
| Financing Cash Flow | 78.80M | 58.01M | 53.95M | -57.83M | -98.82M |
Phillips Edison & Company Technical Analysis
Neutral
36.84
Price Trends
37.28
Negative
35.95
Positive
34.92
Positive
Market Momentum
-0.18
Positive
34.34
Neutral
13.25
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PECO, the sentiment is Neutral. The current price of 36.84 is below the 20-day moving average (MA) of 38.34, below the 50-day MA of 37.28, and above the 200-day MA of 34.92, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 34.34 is Neutral, neither overbought nor oversold. The STOCH value of 13.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PECO.
Phillips Edison & Company Risk Analysis
Phillips Edison & Company disclosed 50 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $8.08B | 19.50 | 8.88% | 6.04% | 4.53% | -3.46% | |
79 Outperform | $9.09B | 39.03 | 3.49% | 4.28% | 14.67% | -5.17% | |
73 Outperform | $8.81B | 20.85 | 13.01% | 4.41% | 6.07% | -0.28% | |
71 Outperform | $5.10B | 23.40 | 4.86% | 3.52% | 10.58% | 37.97% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $5.06B | 17.20 | 9.31% | 4.55% | 3.67% | ― | |
58 Neutral | $4.94B | -24.03 | -7.72% | 3.61% | 8.06% | 74.26% |
* Real Estate Sector Average
PECO
Phillips Edison & Company
36.83
2.12
6.10%
ADC
Agree Realty
74.22
1.50
2.07%
MAC
Macerich
18.81
2.06
12.30%
NNN
NNN REIT
41.99
2.38
6.02%
KRG
Kite Realty Group
24.26
2.84
13.25%
BRX
Brixmor Property
28.71
3.52
13.96%
Phillips Edison & Company Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Phillips Edison Completes $350 Million Senior Notes Offering
Positive
Feb 26, 2026
On February 26, 2026, Phillips Edison Grocery Center Operating Partnership I, L.P., a subsidiary of Phillips Edison Company, completed an underwritten public offering of $350 million of 4.750% senior unsecured notes due 2033, fully and unconditio...
Dividends
Phillips Edison Declares Monthly Dividends Through May 2026
Positive
Feb 12, 2026
On February 12, 2026, Phillips Edison Company, Inc., a major U.S. owner and operator of grocery-anchored neighborhood shopping centers, reported that its board approved monthly dividends for March, April and May 2026. The distributions are set at...
Business Operations and StrategyFinancial Disclosures
Phillips Edison Reports Strong Q4 and Full-Year 2025 Results
Positive
Feb 5, 2026
On February 5, 2026, Phillips Edison Company reported strong financial and operating results for the fourth quarter and full year ended December 31, 2025, highlighted by net income attributable to stockholders of $47.5 million for the quarter and...
Business Operations and StrategyFinancial Disclosures
Phillips Edison Updates 2025 Financial Guidance Amid Growth
Positive
Dec 17, 2025
Phillips Edison Company has announced updates to its 2025 financial guidance and introduced preliminary guidance for 2026 in alignment with its upcoming virtual Business Update on December 17, 2025. The updated 2025 guidance reflects slight adjus...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.