Phillips Edison & Company reports over $300 million in acquisitions for 2024, enhancing their portfolio of grocery-anchored shopping centers.
Quiver AI Summary
Phillips Edison & Company, Inc. announced its transaction activities for the fourth quarter of 2024, highlighting over $300 million in acquisitions for the year, surpassing its revised guidance. CEO Jeff Edison emphasized PECO's strength in the grocery-anchored shopping center sector and its commitment to achieving a 9% unlevered IRR on acquisitions. Notable fourth quarter acquisitions include several shopping centers in Texas, Ohio, and Colorado, with plans to increase occupancy and rent. In total, PECO acquired 14 shopping centers and four land parcels in 2024 for approximately $306 million, indicating strong investment activity. The press release also reiterates PECO's focus on enhancing community shopping experiences and its robust market position in the grocery sector.
Potential Positives
- Completed over $300 million in acquisitions in 2024, exceeding previous guidance, indicating strong growth and investment activity.
- Acquired 14 shopping centers and four land parcels, demonstrating a focused strategy on expanding their portfolio in the grocery-anchored sector.
- Targeting an unlevered IRR of 9% for acquisitions, showing a disciplined and growth-oriented investment approach.
Potential Negatives
- Despite announcing over $300 million in acquisitions, there were no property dispositions during the quarter, which could indicate a lack of strategic portfolio optimization.
- The press release includes numerous cautionary statements regarding forward-looking events, highlighting significant uncertainties and risks that could adversely affect the company's performance.
- The company's ability to maintain its REIT status is noted as a potential risk, which may concern investors about future financial stability.
FAQ
What is Phillips Edison & Company known for?
Phillips Edison & Company is one of the largest owners and operators of grocery-anchored neighborhood shopping centers in the U.S.
How much did PECO invest in acquisitions in 2024?
PECO completed over $300 million in acquisitions in 2024, above its guidance midpoint.
What types of properties did PECO acquire in Q4 2024?
In Q4 2024, PECO acquired four shopping centers, including those anchored by Fresh Thyme and King Soopers.
How many shopping centers does PECO currently manage?
As of September 30, 2024, PECO managed 311 shopping centers across 31 states.
Who can I contact for more information about PECO?
Kimberly Green, Head of Investor Relations, can be contacted at 513-692-3399 or via email at kgreen@phillipsedison.com.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$PECO Hedge Fund Activity
We have seen 162 institutional investors add shares of $PECO stock to their portfolio, and 169 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- CENTERSQUARE INVESTMENT MANAGEMENT LLC added 1,088,604 shares (+2328.6%) to their portfolio in Q3 2024
- DUFF & PHELPS INVESTMENT MANAGEMENT CO added 492,160 shares (+50.1%) to their portfolio in Q3 2024
- AEW CAPITAL MANAGEMENT L P added 427,070 shares (+inf%) to their portfolio in Q3 2024
- THRIVENT FINANCIAL FOR LUTHERANS removed 411,075 shares (-67.4%) from their portfolio in Q3 2024
- BALYASNY ASSET MANAGEMENT L.P. removed 403,631 shares (-100.0%) from their portfolio in Q3 2024
- AMERICAN CENTURY COMPANIES INC removed 349,688 shares (-89.8%) from their portfolio in Q3 2024
- ADAGE CAPITAL PARTNERS GP, L.L.C. added 325,000 shares (+260.0%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
CINCINNATI, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO” or the “Company”), one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers, today announced transaction activity for the three months ended December 31, 2024.
Management Commentary
Jeff Edison, Chairman and Chief Executive Officer of PECO stated: “We are pleased to have completed over $300 million in acquisitions in 2024, which was above the midpoint of the upwardly revised guidance range PECO provided in October. We believe that PECO offers the best opportunity for external growth within the shopping center sector. These investments are core to PECO’s long-term growth plans. We continue to target an unlevered IRR of 9% for our acquisitions, and we remain focused on our disciplined approach to accretively grow our portfolio.”
Transaction Activity
Fourth quarter 2024 acquisitions included:
Shops at Cross Creek, a 24,188 square foot shopping center located in a Houston, Texas suburb;
Harpers Station, a 229,060 square foot shopping center anchored by Fresh Thyme located in a Cincinnati, Ohio suburb;
Lakeland Village Center, an 83,542 square foot shopping center located in a Houston, Texas suburb; and
Northpark Plaza, a 52,192 square foot shopping center anchored by King Soopers located in a Denver, Colorado suburb.
The Company expects to drive value 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.
During the twelve months ended December 31, 2024, the Company acquired 14 shopping centers and four land parcels for approximately $306 million. This includes the Company’s prorated share of assets purchased through joint ventures. This was above the midpoint of the upwardly revised guidance range PECO provided in its third quarter 2024 earnings press release.
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 high-quality, grocery-anchored neighborhood 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 September 30, 2024, PECO managed 311 shopping centers, including 290 wholly-owned centers comprising 32.9 million square feet across 31 states and 21 shopping centers owned in two institutional joint ventures. 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.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Phillips Edison & Company, Inc. (the “Company”) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Such forward-looking statements can generally be identified by the Company’s use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” “seek,” “objective,” “goal,” “strategy,” “plan,” “focus,” “priority,” “should,” “could,” “potential,” “possible,” “look forward,” “optimistic,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this earnings release. Such statements include, but are not limited to: (a) statements about the Company’s plans, strategies, initiatives, and prospects; (b) statements about the Company’s underwritten incremental yields; and (c) statements about the Company’s future results of operations, capital expenditures, and liquidity. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation: (i) changes in national, regional, or local economic climates; (ii) local market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in the Company’s portfolio; (iii) vacancies, changes in market rental rates, and the need to periodically repair, renovate, and re-let space; (iv) competition from other available shopping centers and the attractiveness of properties in the Company’s portfolio to its tenants; (v) the financial stability of the Company’s tenants, including, without limitation, their ability to pay rent; (vi) the Company’s ability to pay down, refinance, restructure, or extend its indebtedness as it becomes due; (vii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors; (viii) potential liability for environmental matters; (ix) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (x) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax, and other considerations; (xi) changes in tax, real estate, environmental, and zoning laws; (xii) information technology security breaches; (xiii) the Company’s corporate responsibility initiatives; (xiv) loss of key executives; (xv) the concentration of the Company’s portfolio in a limited number of industries, geographies, or investments; (xvi) the economic, political, and social impact of, and uncertainty relating to, pandemics or other health crises; (xvii) the Company’s ability to re-lease its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant; (xviii) the loss or bankruptcy of the Company’s tenants; (xix) to the extent the Company is seeking to dispose of properties, the Company’s ability to do so at attractive prices or at all; and (xx) the impact of inflation on the Company and on its tenants. Additional important factors that could cause actual results to differ are described in the filings made from time to time by the Company with the SEC and include the risk factors and other risks and uncertainties described in the Company’s 2023 Annual Report on Form 10-K, filed with the SEC on February 12, 2024, as updated from time to time in the Company’s periodic and/or current reports filed with the SEC, which are accessible on the SEC’s website at www.sec.gov. Therefore, such statements are not intended to be a guarantee of the Company’s performance in future periods.
Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Investors
Kimberly Green, Head of Investor Relations
(513) 692-3399,
kgreen@phillipsedison.com
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