On July 25, 2024, Phillips Edison & Co Inc (PECO, Financial) released its 8-K filing detailing its financial results for the second quarter of 2024. Phillips Edison & Co Inc is a real estate investment trust (REIT) that invests in well-occupied, grocery-anchored neighborhood and community shopping centers. The company reported net income attributable to stockholders of $15.3 million, or $0.12 per diluted share, for the quarter ended June 30, 2024.
Key Financial Highlights
Phillips Edison & Co Inc (PECO, Financial) reported Nareit FFO of $78.4 million, or $0.57 per diluted share, and Core FFO of $80.0 million, or $0.59 per diluted share, for the second quarter of 2024. The company reaffirmed its full-year 2024 guidance ranges for Nareit FFO and Core FFO per diluted share, which are expected to be between $2.34 to $2.41 and $2.37 to $2.45, respectively.
Income Statement and Balance Sheet Insights
For the three months ended June 30, 2024, PECO's total revenues were $161.5 million, up from $152.1 million in the same period of 2023. Operating expenses for the quarter totaled $119.2 million, resulting in a net income of $17.0 million. The company’s net income attributable to stockholders was $15.3 million, or $0.12 per diluted share, compared to $14.5 million, or $0.12 per diluted share, in the second quarter of 2023.
As of June 30, 2024, PECO's total assets were $4.91 billion, with total liabilities of $2.29 billion. The company had approximately $743 million of total liquidity, including $10.9 million in cash and cash equivalents and $731.6 million in borrowing capacity on its revolving credit facility.
Operational Metrics and Leasing Activity
PECO reported a leased portfolio occupancy of 97.5% and same-center leased portfolio occupancy of 97.8% as of June 30, 2024. The company executed 277 leases totaling 1.7 million square feet during the quarter, with a record-high rent spread of 20.5% for renewal leases.
Acquisitions and Joint Ventures
During the second quarter, PECO acquired two shopping centers and one land parcel for a total of $59.5 million. The company also announced a new joint venture with Cohen & Steers Income Opportunities REIT, targeting $300 million in equity for acquiring grocery-anchored shopping centers.
Management Commentary
Jeff Edison, Chairman and Chief Executive Officer of PECO, stated: "The PECO team delivered another solid quarter of growth and market-leading operating metrics. Year to date, same-center NOI increased by 2.8%, Nareit FFO increased 4.1% and Core FFO increased 3.7%. The continued strength of our operating performance is attributable to our differentiated and focused strategy of owning right-sized, 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."
Financial Summary Table
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income Attributable to Stockholders | $15.3 million | $14.5 million |
| Nareit FFO | $78.4 million | $75.9 million |
| Core FFO | $80.0 million | $77.7 million |
| Total Revenues | $161.5 million | $152.1 million |
| Leased Portfolio Occupancy | 97.5% | 97.8% |
Analysis and Conclusion
Phillips Edison & Co Inc (PECO, Financial) has demonstrated consistent performance with a slight increase in net income and strong FFO metrics. The reaffirmation of its full-year guidance indicates confidence in its operational strategy and market conditions. The company's focus on grocery-anchored shopping centers continues to provide stability and growth opportunities, as evidenced by its high occupancy rates and successful leasing activities.
For more detailed insights and the complete earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Phillips Edison & Co Inc for further details.
