Phillips Edison & Company (PECO)
NASDAQ:PECO
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Phillips Edison & Company
(NASDAQ:PECO)
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Rating:73Outperform
Price Target:
$44.00
â–²(11.14% Upside)
Action:ReiteratedDate:04/25/26
The score is driven primarily by solid financial performance (improving revenue/profitability and generally healthy cash generation) and a constructive earnings update (raised 2026 FFO outlook, strong occupancy, and ample liquidity). Technicals are supportive with the stock above major moving averages. Offsetting factors are a high P/E valuation and balance-sheet/cash-flow concerns, including meaningful leverage and recent free-cash-flow slowdown alongside some reporting inconsistencies that lower confidence.
Positive Factors
Necessity-anchored portfolio
A portfolio concentrated in grocery-anchored, necessity-based centers produces durable, defensive cash flows. High retention and documented pricing power (strong renewal/new rent spreads) reduce vacancy and revenue cyclicality, supporting stable rents and predictable FFO over the medium term.
Negative Factors
Elevated leverage metrics
Leverage at this level constrains balance-sheet flexibility if macro or property fundamentals weaken. While manageable for a REIT, modestly elevated net leverage increases refinancing and covenant risk during rate volatility and could limit ability to pursue opportunistic acquisitions without de-levering.
Read all positive and negative factors
Positive Factors
Negative Factors
Necessity-anchored portfolio
A portfolio concentrated in grocery-anchored, necessity-based centers produces durable, defensive cash flows. High retention and documented pricing power (strong renewal/new rent spreads) reduce vacancy and revenue cyclicality, supporting stable rents and predictable FFO over the medium term.
Read all positive factors
Phillips Edison & Company (PECO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.51B
Dividend Yield3.52%
Average Volume (3M)813.85K
Price to Earnings (P/E)38.5
Beta (1Y)0.30
Revenue Growth9.06%
EPS Growth59.27%
CountryUS
Employees300
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.92
Shares Outstanding126,000,000
10 Day Avg. Volume801,373
30 Day Avg. Volume813,853
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 Cap1.39
Enterprise Value/Revenue10.32
Enterprise Value/Gross Profit19.33
Enterprise Value/Ebitda15.03
Forecast
1Y Price Target
$41.18Price Target Upside4.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)0.74
Revenue Forecast (FY)$756.64M
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 makes money primarily through real estate rental income generated by leasing space in its grocery-anchored shopping centers to tenants. Its key revenue streams generally include (1) base rent paid under long-term lease agreements, typically b...
Phillips Edison & Company Key Performance Indicators (KPIs)
Phillips Edison & Company Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operating and financial picture: solid growth in NAREIT and core FFO per share, healthy same-center NOI growth, high occupancy, strong leasing spreads, active accretive acquisitions and development, improved liquidity and a lower-than-expected Q1 bad debt result. Management raised FFO guidance and reaffirmed NOI and acquisitions targets, signaling confidence. The primary negatives are macro and market risks (rate volatility, public vs private valuation spread), modestly elevated leverage metrics to monitor, and execution risk tied to expansion into non-core everyday retail and development. Overall, the positives from operating performance, liquidity and raised guidance outweigh the manageable risks discussed on the call.Positive Updates
FFO and Core FFO Growth
NAREIT FFO per share grew 4.7% in Q1; core FFO per share grew 6.2% year-over-year. Updated 2026 guidance implies NAREIT FFO per share growth of ~5.9% and core FFO per share growth of ~5.8% at the midpoint vs 2025.
Negative Updates
Macro Uncertainty and Interest Rate Volatility
Management highlighted ongoing macro risks including interest rate volatility, shifting global trade, geopolitical conflicts, election cycle uncertainty, and high energy costs which could affect markets and capital decisions.
Read all updates
Q1-2026 Updates
Positive
Negative
FFO and Core FFO Growth
NAREIT FFO per share grew 4.7% in Q1; core FFO per share grew 6.2% year-over-year. Updated 2026 guidance implies NAREIT FFO per share growth of ~5.9% and core FFO per share growth of ~5.8% at the midpoint vs 2025.
Read all positive updates
Company Guidance
Phillips Edison raised its 2026 outlook: updated guidance implies 2026 NAREIT FFO per share up ~5.9% vs. 2025 at the midpoint and 2026 core FFO per share up ~5.8% at the midpoint, with management targeting mid‑to‑high single‑digit NAREIT/core FFO growth consistent with long‑term targets; the company reiterated 2026 same‑center NOI growth of 3%–4% and $400M–$500M in gross acquisitions (company share). The raise is supported by Q1 results and balance‑sheet strength — Q1 NAREIT FFO $92.9M ($0.67/sh), Q1 core FFO $96.4M ($0.69/sh), same‑center NOI +3.5% in the quarter, Q1 bad debt ~60 bps (2025 full‑year 78 bps; 2026 expected in line), YTD acquisitions $185M with ~$150M under contract, $810M liquidity, net debt/TTM adjusted EBITDAR 5.3x, 94% fixed‑rate debt, weighted average interest 4.4%, weighted average maturity 5.8 years, and a $350M 4.75% senior note issued; collectibility adjustments guidance remains $5M–$8M, and long‑term targets remain 3%–4% same‑center NOI and mid‑to‑high single‑digit core FFO per‑share growth (AFFO upside as renewals increase).Phillips Edison & Company Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 740.17M | 732.30M | 661.39M | 610.12M | 575.37M | 532.85M |
| Gross Profit | 395.33M | -10.19M | 471.07M | 435.00M | 412.15M | 374.55M |
| EBITDA | 508.52M | 505.75M | 410.97M | 380.33M | 355.62M | 322.15M |
| Net Income | 115.35M | 111.30M | 62.69M | 56.85M | 48.32M | 15.12M |
Balance Sheet | ||||||
| Total Assets | 5.35B | 5.29B | 5.05B | 4.87B | 4.74B | 4.67B |
| Cash, Cash Equivalents and Short-Term Investments | 3.14M | 19.90M | 4.88M | 13.44M | 13.27M | 98.14M |
| Total Debt | 2.61B | 2.49B | 2.11B | 2.08B | 2.01B | 2.00B |
| Total Liabilities | 2.77B | 2.70B | 2.41B | 2.21B | 2.14B | 2.19B |
| Stockholders Equity | 2.28B | 2.29B | 2.32B | 2.31B | 2.24B | 2.15B |
Cash Flow | ||||||
| Free Cash Flow | 206.92M | 212.00M | 239.63M | 195.71M | 186.40M | 187.87M |
| Operating Cash Flow | 343.16M | 348.15M | 334.71M | 290.97M | 290.89M | 262.90M |
| Investing Cash Flow | -356.58M | -392.29M | -392.94M | -353.39M | -331.25M | -180.49M |
| Financing Cash Flow | 27.92M | 78.80M | 58.01M | 53.95M | -57.83M | -98.82M |
Phillips Edison & Company Technical Analysis
Positive
39.59
Price Trends
38.01
Positive
36.52
Positive
35.11
Positive
Market Momentum
0.36
Negative
71.71
Negative
93.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PECO, the sentiment is Positive. The current price of 39.59 is above the 20-day moving average (MA) of 37.66, above the 50-day MA of 38.01, and above the 200-day MA of 35.11, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 71.71 is Negative, neither overbought nor oversold. The STOCH value of 93.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $9.17B | 17.30 | 14.86% | 4.41% | 5.92% | 37.44% | |
73 Outperform | $5.51B | 38.49 | 5.05% | 3.52% | 9.06% | 59.27% | |
72 Outperform | $5.33B | 110.80 | 9.22% | 4.55% | -3.59% | 1197.42% | |
70 Outperform | $9.13B | 36.30 | 3.65% | 4.28% | 17.67% | 3.73% | |
70 Outperform | $8.38B | 21.14 | 8.81% | 6.04% | 5.77% | -4.61% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
58 Neutral | $5.83B | -63.13 | -7.72% | 3.61% | 2.43% | 72.99% |
* Real Estate Sector Average
PECO
Phillips Edison & Company
39.70
5.54
16.20%
ADC
Agree Realty
76.00
2.52
3.43%
MAC
Macerich
21.50
7.22
50.60%
NNN
NNN REIT
44.06
4.40
11.09%
KRG
Kite Realty Group
26.23
5.25
25.04%
BRX
Brixmor Property
29.88
5.82
24.19%
Phillips Edison & Company Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Phillips Edison Posts Strong Q1 2026 Results, Lifts Outlook
Positive
Apr 23, 2026
On April 23, 2026, Phillips Edison Company reported first-quarter 2026 results showing net income attributable to stockholders of $30.4 million, or $0.24 per diluted share, alongside Nareit FFO of $0.67 and Core FFO of $0.69 per diluted share, re...
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...
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.