CINCINNATI, April 25, 2024 (GLOBE NEWSWIRE) -- Phillips Edison & Company, Inc. (NASDAQ:PECO) ("PECO" or the "Company"), one of the nation's largest owners and operators of grocery-anchored neighborhood shopping centers, today reported financial and operating results for the period ended March 31, 2024 and affirmed full year 2024 earnings guidance. For the three months ended March 31, 2024, net income attributable to stockholders was $17.7 million, or $0.14 per diluted share. Highlights for the First Quarter Ended March 31, 2024 Reported Nareit FFO of $80.1 million, or $0.59 per diluted share Reported Core FFO of $81.7 million, or $0.60 per diluted share Affirmed 2024 Nareit FFO and Core FFO guidance ranges of $2.34 to $2.41 per diluted share and $2.37 to $2.45 per diluted share, respectively The midpoint of full year 2024 Nareit FFO guidance represents 6.0% year-over-year growth The midpoint of full year 2024 Core FFO guidance represents 3.0% year-over-year growth Increased same-center NOI year-over-year by 3.7% Reported leased portfolio occupancy of 97.2% and same-center leased portfolio occupancy of 97.5% Leased inline occupancy increased 50 basis points year-over-year to 94.8%; same-center leased inline occupancy increased 50 basis points year-over-year to 94.9% Executed portfolio comparable new leases at a rent spread of 29.1% and inline comparable new leases at a record-high rent spread of 37.4% during the quarter Executed portfolio comparable renewal leases at a rent spread of 16.9% and inline comparable renewal leases at a rent spread of 19.2% during the quarter Acquired two shopping centers and one land parcel for a total of $55.9 million Management Commentary Jeff Edison, Chairman and Chief Executive Officer of PECO stated: "The PECO team delivered another solid quarter of growth with same-center NOI increasing by 3.7%. Nareit FFO increased 4.9%, and Core FFO increased 4.5%. The continued strength of our operating performance is attributable to our differentiated and focused strategy of owning grocery-anchored neighborhood shopping centers anchored by the #1 or #2 grocer by sales in a market, the PECO team's ability to drive results at the property level and the many advantages of the suburban markets where we operate our centers. Based on the continued strong operating environment and health of our Neighbors, we are pleased to affirm our full year 2024 earnings guidance for Nareit and Core FFO, which represents year-over-year growth of 6% and 3% at the midpoints, respectively." Financial Results for the First Quarter Ended March 31, 2024 Net Income First quarter 2024 net income attributable to stockholders totaled $17.7 million, or $0.14 per diluted share, compared to net income of $16.6 million, or $0.14 per diluted share, during the first quarter of 2023. Nareit FFO First quarter 2024 funds from operations attributable to stockholders and operating partnership ("OP") unit holders as defined by Nareit ("Nareit FFO") increased 4.9% to $80.1 million, or $0.59 per diluted share, compared to $76.3 million, or $0.58 per diluted share, during the first quarter of 2023. Core FFO First quarter 2024 core funds from operations attributable to stockholders and OP unit holders ("Core FFO") increased 4.5% to $81.7 million, or $0.60 per diluted share, compared to $78.2 million, or $0.59 per diluted share, during the first quarter of 2023. Same-Center NOI First quarter 2024 same-center net operating income ("NOI") increased 3.7% to $106.7 million, compared to $102.9 million during the first quarter of 2023. Portfolio Overview for the First Quarter Ended March 31, 2024 Portfolio Statistics As of March 31, 2024, PECO's wholly-owned portfolio consisted of 284 properties, totaling approximately 32.4 million square feet, located in 31 states. This compares to 275 properties, totaling approximately 31.5 million square feet, located in 31 states as of March 31, 2023. Leased portfolio occupancy was 97.2% as of March 31, 2024, compared to 97.5% as of March 31, 2023. Same-center leased portfolio occupancy was 97.5% as of March 31, 2024, compared to 97.6% as of March 31, 2023. Leased anchor occupancy was 98.4% as of March 31, 2024, compared to 99.3% as of March 31, 2023. Leased inline occupancy increased 50 basis points to 94.8% as of March 31, 2024, compared to 94.3% as of March 31, 2023. Same-center leased anchor occupancy was 98.8% as of March 31, 2024, compared to 99.3% as of March 31, 2023. Same-center leased inline occupancy increased 50 basis points to 94.9% as of March 31, 2024, compared to 94.4% as of March 31, 2023. Leasing Activity During the first quarter of 2024, 245 leases were executed totaling 1.3 million square feet. This compared to 263 leases executed totaling 1.1 million square feet during the first quarter of 2023. Comparable rent spreads during the first quarter of 2024, which compare the percentage increase of new or renewal leases to the expiring lease of a unit that was occupied within the past twelve months, were 29.1% for new leases, 16.9% for renewal leases and 20.0% combined. Transaction Activity During the three months ended March 31, 2024, the Company acquired two shopping centers and one land parcel for a total of $55.9 million. The Company expects to drive growth in these assets through occupancy increases and rent growth, as well as potential future development of ground-up outparcel retail spaces. There were no dispositions in the quarter. The first quarter 2024 acquisitions consisted of: Shoppes at Lake Mary, a 74,234 square foot shopping center anchored by Publix located in an Orlando, Florida suburb. Memorial at Kirkwood, a 104,887 square foot shopping center located in a Houston, Texas suburb. Balance Sheet Highlights As of March 31, 2024, the company had approximately $571 million of total liquidity, comprised of $10.1 million of cash, cash equivalents and restricted cash, plus $560.6 million of borrowing capacity available on its $800 million revolving credit facility. PECO's net debt to annualized adjusted EBITDAre was unchanged from 5.1x at December 31, 2023. As of March 31, 2024, the Company's outstanding debt had a weighted-average interest rate of 4.3% and a weighted-average maturity of 3.8 years when including all extension options, and 75.8% of total debt was fixed-rate debt. 2024 Guidance PECO has updated its 2024 earnings guidance, as summarized in the table below, which is based upon the Company's current view of existing market conditions and assumptions for the year ending December 31, 2024. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under "Forward-Looking Statements" below. (in thousands, except per share amounts) Q1 YTD   Updated Full Year2024 Guidance   Previous Full Year2024 Guidance Net income per share $0.14   $0.51 - $0.55   $0.53 - $0.58 Nareit FFO per share $0.59   $2.34 - $2.41   $2.34 - $2.41 Core FFO per share $0.60   $2.37 - $2.45   $2.37 - $2.45 Same-Center NOI growth 3.7%   3.25% - 4.25%   3.25% - 4.25% Portfolio Activity:           Acquisitions, net $55,902   $200,000 - $300,000   $200,000 - $300,000 Other:           Interest expense, net $23,335   $98,000 - $106,000   $95,000 - $105,000 G&A expense $11,813   $45,000 - $49,000   $45,000 - $49,000 Non-cash revenue items(1) $3,785   $14,500 - $18,500   $14,500 - $18,500 Adjustments for collectibility $1,837   $4,000 - 5,000   $4,000 - 5,000             (1) Represents straight-line rental income and net amortization of above- and below-market leases. The Company does not provide a reconciliation for same-center NOI estimates on a forward-looking basis because it is unable to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to the Company's results without unreasonable effort. The following table provides a reconciliation of the range of the Company's 2024 estimated net income to estimated Nareit FFO and Core FFO: (Unaudited) Low End   High End Net income per share $ 0.51   $ 0.55 Depreciation and amortization of real estate assets   1.81     1.83 Gain on sale of real estate assets   —     — Adjustments related to unconsolidated joint ventures   0.02     0.03 Nareit FFO per share $ 2.34   $ 2.41 Depreciation and amortization of corporate assets   0.01     0.01 Transaction costs and other   0.02     0.03 Core FFO per share $ 2.37   $ 2.45             Conference Call Details PECO plans to host a conference call and webcast on Friday, April 26, 2024 at 12:00 p.m. Eastern Time to discuss first quarter 2024 results and provide further business updates. Chairman and Chief Executive Officer Jeff Edison, President Bob Myers and Chief Financial Officer John Caulfield will host the conference call and webcast. Dial-in and webcast information is below. First Quarter 2024 Earnings Conference Call Details: Date: Friday, April 26, 2024 Time: 12:00 p.m. ET Toll-Free Dial-In Number: (888) 210-4659 International Dial-In Number: (646) 960-0383 Conference ID: 2035308 Webcast: First Quarter 2024 Webcast Link An audio replay will be available approximately one hour after the conclusion of the conference call using the webcast link above. For more information on the Company's financial results, please refer to the Company's Form 10-Q for the quarter ended March 31, 2024. Connect with PECO For additional information, please visit https://www.phillipsedison.com/      Follow PECO on: Twitter at https://twitter.com/PhillipsEdison  Facebook at https://www.facebook.com/phillipsedison.co  Instagram at https://www.instagram.com/phillips.edison/; and Find PECO on LinkedIn at https://www.linkedin.com/company/phillipsedison&company  About Phillips Edison & Company Phillips Edison & Company, Inc. ("PECO") is one of the nation's largest owners and operators of omni-channel grocery-anchored shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO's centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO's top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of March 31, 2024, PECO managed 304 shopping centers, including 284 wholly-owned centers comprising 32.4 million square feet across 31 states and 20 shopping centers owned in one institutional joint venture. PECO is focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time. PECO uses, and intends to continue to use, its Investors website, which can be found at https://investors.phillipsedison.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. PHILLIPS EDISON & COMPANY, INC.CONSOLIDATED BALANCE SHEETSAS OF MARCH 31, 2024 AND DECEMBER 31, 2023 (Condensed and Unaudited)(In thousands, except per share amounts)    March 31, 2024   December 31, 2023 ASSETS         Investment in real estate:       Land and improvements $ 1,789,539     $ 1,768,487   Building and improvements   3,860,003       3,818,184   In-place lease assets   500,918       495,525   Above-market lease assets   74,499       74,446   Total investment in real estate assets   6,224,959       6,156,642   Accumulated depreciation and amortization   (1,598,743 )     (1,540,551 ) Net investment in real estate assets   4,626,216       4,616,091   Investment in unconsolidated joint ventures   24,656       25,220   Total investment in real estate assets, net   4,650,872       4,641,311   Cash and cash equivalents   5,631       4,872   Restricted cash   4,466       4,006   Goodwill   29,066       29,066   Other assets, net   196,474       186,411   Total assets $ 4,886,509     $ 4,865,666           LIABILITIES AND EQUITY       Liabilities:       Debt obligations, net $ 2,015,554     $ 1,969,272   Below-market lease liabilities, net   110,774       108,223   Accounts payable and other liabilities   102,162       116,461   Deferred income   20,621       18,359   Total liabilities   2,249,111       2,212,315   Equity:       Preferred stock, $0.01 par value per share, 10,000 shares authorized, zero shares issued and outstanding at March 31, 2024 and December 31, 2023   —       —   Common stock, $0.01 par value per share, 1,000,000 shares authorized, 122,323 and 122,024 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively   1,223       1,220   Additional paid-in capital   3,551,678       3,546,838   Accumulated other comprehensive income   13,144       10,523   Accumulated deficit   (1,266,541 )     (1,248,273 ) Total stockholders' equity   2,299,504       2,310,308   Noncontrolling interests   337,894       343,043