Phillips Edison & Company Reports Third Quarter 2026 Results
Phillips Edison & Company, Inc. (PECO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Phillips Edison & Company Reports Third Quarter 2026 Results CINCINNATI - October 26, 2026 - 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,
How this was made
The 30-second read
Why it matters
The updated guidance reflects strong operational performance and may attract new capital.
Market read
First‑report earnings and guidance update for PECO, a material REIT, likely to move the stock.
What to watch
Potential headwinds from higher interest rates could offset growth.
Phillips Edison & Company Reports Third Quarter 2026 Results
Third quarter Nareit FFO per diluted share grew 7.8%, Core FFO per diluted share grew 9.2%, same-center NOI increased 5.3%, and the Company increased the midpoint of its full-year 2026 Nareit FFO, Core FFO, and same-center NOI guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $193.1M | – | – |
| Rental income, three months ended September 30, 2026GAAP | $188.9M | – | – |
| Fees and management income, three months ended September 30, 2026GAAP | $3.46M | – | – |
| Other property income, three months ended September 30, 2026GAAP | $680K | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $135.3M | – | – |
| Property operating expenses, three months ended September 30, 2026GAAP | $31.19M | – | – |
| Real estate taxes, three months ended September 30, 2026GAAP | $23.34M | – | – |
| General and administrative expenses, three months ended September 30, 2026GAAP | $11.91M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $68.86M | – | – |
| Interest expense, net, three months ended September 30, 2026GAAP | −$28.12M | – | – |
| Gain on disposal of property, net, three months ended September 30, 2026GAAP | $40.60M | – | – |
| Net income attributable to stockholders, three months ended September 30, 2026GAAP | $62.7M | – | – |
| Net income per share attributable to stockholders - diluted, three months ended September 30, 2026GAAP | $0.49 per diluted share | – | – |
| Nareit FFO attributable to stockholders and OP unit holders, three months ended September 30, 2026non-GAAP | $98M | – | 9.8% |
| Nareit FFO attributable to stockholders and OP unit holders per share - diluted, three months ended September 30, 2026non-GAAP | $0.69 per diluted share | – | 7.8% |
| Core FFO attributable to stockholders and OP unit holders, three months ended September 30, 2026non-GAAP | $100.7M | – | 11.3% |
| Core FFO attributable to stockholders and OP unit holders per share - diluted, three months ended September 30, 2026non-GAAP | $0.71 per diluted share | – | 9.2% |
| Same-Center NOI, three months ended September 30, 2026non-GAAP | $122.4M | – | 5.3% |
| Total revenues, nine months ended September 30, 2026GAAP | $573.4M | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $402.8M | – | – |
| Net income attributable to stockholders, nine months ended September 30, 2026GAAP | $134.2M | – | – |
| Net income per share attributable to stockholders - diluted, nine months ended September 30, 2026GAAP | $1.05 per diluted share | – | – |
| Nareit FFO attributable to stockholders and OP unit holders, nine months ended September 30, 2026non-GAAP | $284.6M | – | 7.7% |
| Nareit FFO attributable to stockholders and OP unit holders per share - diluted, nine months ended September 30, 2026non-GAAP | $2.03 per diluted share | – | 7.7% |
| Core FFO attributable to stockholders and OP unit holders, nine months ended September 30, 2026non-GAAP | $292.6M | – | 8.6% |
| Core FFO attributable to stockholders and OP unit holders per share - diluted, nine months ended September 30, 2026non-GAAP | $2.09 per diluted share | – | 8.6% |
| Same-Center NOI, nine months ended September 30, 2026non-GAAP | $361.8M | – | 4.3% |
| Adjusted EBITDAre, three months ended September 30, 2026non-GAAP | $129.9M | – | – |
| Adjusted EBITDAre, nine months ended September 30, 2026non-GAAP | $381.9M | – | – |
| Leased portfolio occupancy as of September 30, 2026other | 97.5% | – | – |
| Same-center leased portfolio occupancy as of September 30, 2026other | 97.8% | – | – |
| Leased anchor occupancy as of September 30, 2026other | 99.0% | – | – |
| Leased inline occupancy as of September 30, 2026other | 95.1% | – | – |
| Comparable portfolio combined rent spreads, third quarter 2026other | 25.5% | – | – |
| Comparable portfolio new lease rent spreads, third quarter 2026other | 26.3% | – | – |
| Comparable portfolio renewal lease rent spreads, third quarter 2026other | 25.2% | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Updated Full Year 2026 Guidance and Expectations outlook
- NoteNet income per share - diluted: $1.21 - $1.24
- NoteNareit FFO per share - diluted: $2.68 - $2.72
- NoteCore FFO per share - diluted: $2.75 - $2.79
- NoteSame-Center NOI growth: 3.50% - 4.00%
- NoteAcquisitions, gross: $600,000 - $700,000 (in thousands)
- NoteDispositions: $175,000 - $210,000 (in thousands)
- NoteContributions to joint ventures, net: $200,000 - $250,000 (in thousands)
- NoteInterest expense, net: $116,000 - $120,000 (in thousands)
- NoteG&A expense: $51,000 - $53,000 (in thousands)
- NoteNon-cash revenue items: $22,000 - $24,000 (in thousands)
- NoteAdjustments for collectibility: $4,500 - $6,000 (in thousands)
Capital returns
- During the third quarter of 2026, the Company generated net proceeds of $6.4 million through the issuance of 0.2 million common shares at a gross weighted average price of $42.20 per common share through PECO’s ATM program.
- For the nine months ended September 30, 2026, the Company generated net proceeds of $91.7 million through the issuance of 2.2 million common shares at a gross weighted average price of $42.07 per common share through PECO’s ATM program.
What drove it
- Third quarter same-center NOI increased 5.3% to $122.4 million.
- Comparable portfolio renewal rent spreads were a record-high 25.2%, new lease rent spreads were 26.3%, and combined rent spreads were 25.5%.
- Leased portfolio occupancy was 97.5%, same-center leased portfolio occupancy was 97.8%, and leased anchor occupancy was 99.0%.
- The Company acquired $181.8 million in assets during the third quarter, including three shopping centers and land parcels, and sold $87.1 million in assets.
- Subsequent to quarter end, PECO expanded and extended its Northwestern Mutual joint venture partnership by 10 years to 2036 to acquire 13 grocery-anchored shopping centers.
Concerns
- Leased portfolio occupancy was 97.5% as of September 30, 2026, compared to 97.6% as of September 30, 2025.
- Leased anchor occupancy was 99.0% as of September 30, 2026, compared to 99.2% as of September 30, 2025.
- During the third quarter of 2026, 238 leases totaling approximately 1.1 million square feet were executed, compared to 270 leases totaling approximately 1.7 million square feet during the third quarter of 2025.
- The Company expects 2026 dispositions of $175,000 - $210,000 (in thousands), compared with previous full-year guidance of $200,000 - $250,000 (in thousands).
What to watch
- Delivery against updated full-year 2026 Nareit FFO per diluted share guidance of $2.68 - $2.72 and Core FFO per diluted share guidance of $2.75 - $2.79.
- Same-center NOI growth against updated full-year guidance of 3.50% - 4.00%.
- Execution of $600,000 - $700,000 (in thousands) of gross acquisitions, $175,000 - $210,000 (in thousands) of dispositions, and $200,000 - $250,000 (in thousands) of net contributions to joint ventures.
- The contribution of the expanded Grocery Retail Partners I LLC joint venture, for which subsequent-to-quarter-end contributions were $138.6 million.
- Occupancy, rent spreads, interest expense, and the use of the remaining $175 million available under the new unsecured term loan facility.
Balance sheet and cash flow
- As of September 30, 2026, the Company had approximately $762 million of total liquidity, comprised of $17.9 million of cash, cash equivalents and restricted cash, plus $744.3 million of borrowing capacity available on its $1.0 billion revolving credit facility.
- Pro forma for the new $350 million unsecured term loan, the Company had approximately $950 million of total liquidity.
- As of September 30, 2026, debt obligations, net were $2,521,454 (in thousands), compared to $2,375,328 (in thousands) as of December 31, 2025.
- As of September 30, 2026, the Company’s net debt to adjusted EBITDAre was 5.2x on a trailing twelve month basis and 5.0x on a current quarter annualized basis, compared to 5.2x and 5.1x, respectively, as of December 31, 2025.
- As of September 30, 2026, the Company’s outstanding debt had a weighted-average interest rate of 4.5% and a weighted-average maturity of 5.3 years when including all extension options, and 85.2% of the Company’s total debt was fixed-rate debt.
- Subsequent to quarter end, the Company closed on a new $350 million unsecured term loan facility with a three-year term maturing on October 23, 2029. The Borrower borrowed $175 million at closing, with the remaining $175 million available to draw on or before April 21, 2027.
Analysis
PECO reported strong third-quarter operating and FFO growth. Net income attributable to stockholders was $62.7 million, or $0.49 per diluted share, compared with $24.7 million, or $0.20 per diluted share, in the third quarter of 2025. The increase in reported net income coincided with a $40,605 (in thousands) gain on disposal of property, net, versus $4,255 (in thousands) a year earlier. Nareit FFO increased 9.8% to $98.0 million and Core FFO increased 11.3% to $100.7 million, while per-share results reached $0.69 and $0.71, respectively.
Internal growth remained the central operating driver. Same-center NOI increased 5.3% to $122.4 million, supported by 97.8% same-center leased portfolio occupancy. The Company recorded a 26.3% comparable new-lease rent spread, a record-high 25.2% renewal rent spread, and a 25.5% combined rent spread. Inline occupancy improved to 95.1% from 94.8%, while overall leased portfolio occupancy and leased anchor occupancy were modestly below their September 30, 2025 levels at 97.5% and 99.0%, respectively.
External growth and dispositions were meaningful during the period. PECO acquired $181.8 million in assets during the third quarter and sold $87.1 million in assets. For the nine months ended September 30, 2026, the Company acquired $448.7 million in wholly owned assets, acquired $11.0 million at PECO’s total prorated share through joint ventures, and sold $174.0 million in assets. Subsequent to quarter end, the Company added assets through wholly owned and joint-venture acquisitions, extended the Northwestern Mutual partnership by 10 years to 2036, and stated that this expanded venture will acquire 13 grocery-anchored shopping centers.
The balance sheet reflected new financing capacity and a stable leverage ratio. PECO reported approximately $762 million of total liquidity as of September 30, 2026, or approximately $950 million pro forma for the new $350 million unsecured term loan. Trailing-twelve-month net debt to adjusted EBITDAre was 5.2x, unchanged from December 31, 2025. The Company also issued 0.2 million common shares through its ATM program during the quarter, generating net proceeds of $6.4 million.
Guidance was updated higher at the midpoint for earnings and same-center NOI. Full-year Nareit FFO per diluted share guidance is $2.68 - $2.72, Core FFO per diluted share guidance is $2.75 - $2.79, and same-center NOI growth guidance is 3.50% - 4.00%. PECO maintained gross acquisitions guidance at $600,000 - $700,000 (in thousands), reduced dispositions guidance to $175,000 - $210,000 (in thousands), and lowered interest expense, net guidance to $116,000 - $120,000 (in thousands).
Management, verbatim
PECO delivered another quarter of strong financial results, and the operating environment remains solid. Our record renewal rent spreads and high occupancy showcase the strength of PECO’s operating engine. PECO combines right-sized and well-located, grocery-anchored neighborhood shopping centers that support successful necessity-based retailers with a team that converts retailer demand into durable internal growth.
Jeff Edison, Chairman and Chief Executive Officer of PECO
We continue to match fund our external growth by selling stabilized centers and investing in centers with greater growth potential. Our leasing relationships, operating platform and market data give us a meaningful advantage when executing acquisitions. The embedded growth, together with our disciplined approach to investing, position PECO well for 2027 and beyond.
Jeff Edison, Chairman and Chief Executive Officer of PECO
Not in the filing
stated, not guessed- Gross profit and gross margin
- Operating income
- Operating cash flow
- Free cash flow
- Capital expenditures
- Share repurchases
- Dividend declaration or dividend payment
- Revenue guidance
- Previous-release outlook section for a formal actual-versus-prior-guidance comparison
- Reportable segment revenue disclosure
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
PECO is a Nasdaq‑listed REIT focused on grocery‑anchored neighborhood shopping centers.
Ticker impact
PECO issued updated 2026 earnings guidance with higher midpoint FFO and NOI guidance.
likely upside as investors price in higher FFO and NOI guidance
Guidance revisions are material and fresh, indicating stronger earnings outlook.
Market effects
reinforces positive outlook for grocery‑anchored retail REIT sector
supports broader US real‑estate market sentiment
limited to US REIT investors
Counterpoint
If guidance is already priced in, the stock may face a pull‑back.
Key entities
- ExecutiveJeff Edison
Chairman and CEO of PECO, provided commentary on results.
