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Phillips Edison & Company
(NASDAQ:PECO)
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Rating:69Neutral
Price Target:
$43.00
â–²(8.37% Upside)
Action:Downgraded
Date:09/06/26
PECO scores well on financial performance and earnings-call fundamentals (rising guidance, strong occupancy/leasing and cash generation), which are partially offset by leverage/earnings-quality flags and weak current technical momentum (below key moving averages with negative MACD). Valuation is supported by the dividend but constrained by a high P/E.
Positive Factors
Occupancy and rent growth
High occupancy and substantial leasing spreads support durable same-center NOI growth by limiting vacancy loss and improving rents as leases renew. Record rent bumps further strengthen recurring revenue, while strong tenant demand indicates the portfolio retains meaningful operating resilience.
Negative Factors
Meaningful leverage
Meaningful leverage increases PECO’s sensitivity to refinancing costs, property values and changes in operating income. Although the debt profile is largely fixed rate, the capital structure can still constrain flexibility and leave less capacity to absorb weaker tenant performance or pursue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Occupancy and rent growth
High occupancy and substantial leasing spreads support durable same-center NOI growth by limiting vacancy loss and improving rents as leases renew. Record rent bumps further strengthen recurring revenue, while strong tenant demand indicates the portfolio retains meaningful operating resilience.
Read all positive factors
Phillips Edison & Company Key Performance Indicators (KPIs)
Any
Annualized Base Rent
Totals the contracted annual rent from all in-place leases, showing the predictable cash income the portfolio should produce before vacancies and expenses. Rising annualized base rent points to stronger lease terms or higher-quality tenants, while declines can signal lease expirations, concessions, or weakening local demand.
Totals the contracted annual rent from all in-place leases, showing the predictable cash income the portfolio should produce before vacancies and expenses. Rising annualized base rent points to stronger lease terms or higher-quality tenants, while declines can signal lease expirations, concessions, or weakening local demand.
Data provided by:
The Fly
The FlyPhillips Edison & Company (PECO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.50B
Dividend Yield3.34%
Average Volume (3M)807.10K
Price to Earnings (P/E)33.9
Beta (1Y)0.24
Revenue Growth8.07%
EPS Growth106.29%
CountryUS
Employees320
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)1.15
Shares Outstanding128,700,000
10 Day Avg. Volume725,925
30 Day Avg. Volume807,103
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$46.00Price Target Upside15.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.85
Revenue Forecast (FY)$764.68M
Phillips Edison & Company Business Overview & Revenue Model
Company Description
Phillips Edison & Company, Inc. is one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers. PECO has generated strong results through its vertically integrated operating platform and nationa...
How the Company Makes Money
PECO makes money primarily from real estate leasing and operations of its grocery-anchored shopping centers. Its core revenue stream is rental income paid by tenants under lease agreements, including anchor grocers and smaller shop tenants; these ...
Phillips Edison & Company Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized robust operating performance (FFO growth, same-center NOI growth, record occupancy metrics, strong rent spreads), strengthened liquidity and balance sheet (equity raise, $857M liquidity, Moody's positive outlook), an active and accretive acquisition and development pipeline, and disciplined capital recycling. Key risks discussed included a cautious grocer/consumer backdrop, a very competitive acquisition market, modest near-term incremental FFO guidance, some one-time income items, and limited remaining occupancy upside in the near term. Overall, positives (strong core operating results, balance sheet strength, and accretive growth pipeline) materially outweigh the discussed headwinds.Positive Updates
Strong FFO and Core FFO Growth
NAREIT FFO per share grew 8.1% in Q2; Core FFO per share grew 7.8% in Q2. Full-year 2026 guidance for NAREIT FFO per share was raised (midpoint now +6.3% vs. 2025) and Core FFO per share guidance was also increased (midpoint +6.2% vs. 2025).
Negative Updates
Modest FFO Guiding Increment
Analysts highlighted that the FFO guidance increase was modest (only ~$0.01 increase in the guide) despite multiple positive operating updates, which suggests limited near-term upside embedded in current guidance.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong FFO and Core FFO Growth
NAREIT FFO per share grew 8.1% in Q2; Core FFO per share grew 7.8% in Q2. Full-year 2026 guidance for NAREIT FFO per share was raised (midpoint now +6.3% vs. 2025) and Core FFO per share guidance was also increased (midpoint +6.2% vs. 2025).
Read all positive updates
Company Guidance
Management raised 2026 guidance: full‑year NAREIT FFO per share (midpoint +6.3% vs. 2025) and core FFO per share (midpoint +6.2% vs. 2025) were increased and same‑center NOI guidance was raised to a ~3.7% midpoint (Q2 same‑center NOI was +3.8%); gross acquisitions guidance was increased to $500–$600M (up $100M net) with dispositions targeted at $100–$200M, YTD acquisitions of $278M (PECO share) and >$225M in pipeline expected to close in H2; capital actions include raising just over $90M of equity in June/July, $857M liquidity, net debt/TTM adjusted EBITDAR ~5.1x (5.0x LQA), 95.9% fixed‑rate debt, weighted average rate 4.4% and maturity 5.6 years, and targeted unlevered IRRs of 9% for grocery‑anchored and 10% for everyday retail; development/redevelopment: 21 projects under construction (~$82M total, 9–12% average yields), and bad debt guidance tightened to be in line with or slightly better than 2025.Phillips Edison & Company Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 750.89M | 732.30M | 661.39M | 610.12M | 575.37M | 532.85M |
| Gross Profit | 533.12M | -10.19M | 471.07M | 435.00M | 412.15M | 374.55M |
| EBITDA | 537.91M | 505.75M | 410.97M | 380.33M | 355.62M | 322.15M |
| Net Income | 143.68M | 111.30M | 62.69M | 56.85M | 48.32M | 15.12M |
Balance Sheet | ||||||
| Total Assets | 5.44B | 5.29B | 5.05B | 4.87B | 4.74B | 4.67B |
| Cash, Cash Equivalents and Short-Term Investments | 7.13M | 19.90M | 4.88M | 13.44M | 13.27M | 98.14M |
| Total Debt | 2.58B | 2.49B | 2.11B | 2.08B | 2.01B | 2.00B |
| Total Liabilities | 2.78B | 2.70B | 2.41B | 2.21B | 2.14B | 2.19B |
| Stockholders Equity | 2.37B | 2.29B | 2.32B | 2.31B | 2.24B | 2.15B |
Cash Flow | ||||||
| Free Cash Flow | 237.81M | 212.00M | 239.63M | 195.71M | 186.40M | 187.87M |
| Operating Cash Flow | 365.07M | 348.15M | 334.71M | 290.97M | 290.89M | 262.90M |
| Investing Cash Flow | -299.73M | -392.29M | -392.94M | -353.39M | -331.25M | -180.49M |
| Financing Cash Flow | -44.56M | 78.80M | 58.01M | 53.95M | -57.83M | -98.82M |
Phillips Edison & Company Technical Analysis
Negative
39.68
Price Trends
41.16
Negative
40.50
Negative
38.24
Positive
Market Momentum
-0.61
Negative
36.81
Neutral
37.37
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 39.68 is above the 20-day moving average (MA) of 39.54, below the 50-day MA of 41.16, and above the 200-day MA of 38.24, indicating a neutral trend. The MACD of -0.61 indicates Negative momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 37.37 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 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.95B | 20.53 | 14.39% | 4.15% | 5.13% | 28.20% | |
73 Outperform | $9.03B | 39.04 | 3.61% | 4.36% | 18.06% | 10.08% | |
73 Outperform | $8.57B | 21.88 | 8.70% | 5.42% | 6.54% | -3.45% | |
69 Neutral | $5.50B | 33.88 | 6.24% | 3.34% | 8.07% | 106.29% | |
66 Neutral | $5.20B | 16.02 | 11.27% | 4.95% | -5.84% | 395.39% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
54 Neutral | $6.85B | -35.75 | -6.63% | 2.93% | 9.48% | 45.78% |
* Real Estate Sector Average
PECO
Phillips Edison & Company
38.96
4.58
13.33%
ADC
Agree Realty
72.62
3.31
4.78%
MAC
Macerich
23.24
5.62
31.87%
NNN
NNN REIT
44.63
4.28
10.60%
KRG
Kite Realty Group
25.96
4.37
20.25%
BRX
Brixmor Property
29.15
2.47
9.28%
Phillips Edison & Company Corporate Events
Business Operations and StrategyDividends
Phillips Edison Boosts Monthly Dividend, Highlights Shareholder Focus
Positive
Sep 1, 2026
Phillips Edison Company, Inc., a major owner and operator of grocery-anchored neighborhood shopping centers across the United States, reported that as of June 30, 2026 it managed 330 centers, including 302 wholly owned properties spanning 33.9 mi...
Business Operations and StrategyPrivate Placements and Financing
Phillips Edison Launches $400 Million Continuous Stock Offering
Positive
Aug 10, 2026
On August 10, 2026, Phillips Edison Company and its operating partnership entered into a sales agreement with a syndicate of major broker-dealers to launch a continuous offering of up to $400 million of common stock. Shares may be sold on Nasdaq ...
Business Operations and StrategyDividends
Phillips Edison Declares August 2026 Monthly Cash Dividend
Positive
Aug 5, 2026
On August 5, 2026, Phillips Edison Company, Inc. announced that its board approved a monthly cash dividend of $0.1083 per share for August 2026, reflecting the company’s ongoing capital return program to shareholders. The distribution will ...
Business Operations and StrategyFinancial Disclosures
Phillips Edison Reports Strong Q2 Results, Raises Guidance
Positive
Jul 23, 2026
On July 23, 2026, Phillips Edison Company reported strong financial and operating results for the quarter and six‑month period ended June 30, 2026, highlighted by net income of $41.1 million for the quarter and $71.5 million year‑to&#...
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.