Q2 2024 Phillips Edison & Co Inc Earnings Call Transcript
Key Points
- Phillips Edison & Co Inc (PECO) achieved a record high inline leased occupancy of 95.1% during the second quarter.
- The company reported strong leasing spreads, with new lease spreads at 34.4% and renewal rent spreads at 20.5%.
- PECO's portfolio occupancy remained high at 97.5%, with anchor occupancy increasing to 98.8%.
- The company reaffirmed its guidance for $200 million to $300 million of net acquisitions for the year, with a targeted unlevered IRR of over 9%.
- PECO's balance sheet remains strong with approximately $743 million of liquidity and no meaningful debt maturities until 2027.
- Higher year-over-year interest expenses impacted the company's financial results.
- Same-center NOI growth was 1.9% for the quarter, partially offset by lower tenant recovery income and higher property level expenses.
- The company faces challenges from high inflation, high interest rates, and global conflict.
- PECO's reserves for uncollectibility remain at the high end of their guidance range, indicating potential issues with tenant payments.
- The market still gives a low probability of the Kroger-Albertsons merger occurring, which could impact PECO's portfolio.
Good day, and welcome to Phillips Edison & Company's second-quarter 2024 earnings call. Please note that this call is being recorded. I will now turn the call over to Kimberly Green, Head of Investor Relations. Kimberly, you may begin.
Thank you, operator. I'm joined on this call by our Chairman and Chief Executive Officer, Jeff Edison; President, Bob Myers; and Chief Financial Officer, John Caulfield. Once we conclude our prepared remarks, we will open the call to Q&A. After today's call, an archived version will be published on our website.
As a reminder, today's discussion may contain forward-looking statements about the company's view of future business and financial performance, including forward earnings guidance and future market conditions. These are based on management's current beliefs and expectations and are subject to various risks and uncertainties as described in our SEC filings, specifically in our most recent Form 10-K and 10-Q.
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