Phillips Edison & Company Files Q3 2024 10-Q

TL;DR

PECO's Q3 2024 10-Q is in. Check financials for grocery-anchored REIT.

AI Summary

Phillips Edison & Company, Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter of 2024 and provides financial updates for the company, which operates as a real estate investment trust focused on grocery-anchored shopping centers. Key financial details and operational highlights for the period are detailed within the report.

Why It Matters

This filing provides investors with crucial financial performance data for Phillips Edison & Company, Inc. during the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — As a real estate investment trust, Phillips Edison & Company, Inc. is subject to market fluctuations and economic conditions affecting the real estate sector.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the financial reporting period for this 10-Q.)
• 2024-10-25 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Phillips Edison & Company, Inc. (company) — Filer of the 10-Q
• 2024-09-30 (date) — End of the reporting period
• 2024-10-25 (date) — Filing date
• Cincinnati, OH (location) — Company headquarters

FAQ

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share PECO Nasdaq Global Select Mar

Filing Documents

• peco-20240930.htm (10-Q) — 1566KB
• pecoq32024ex-221.htm (EX-22.1) — 3KB
• peco_20240930-ex311.htm (EX-31.1) — 9KB
• peco_20240930-ex312.htm (EX-31.2) — 10KB
• peco_20240930-ex321.htm (EX-32.1) — 4KB
• peco_20240930-ex322.htm (EX-32.2) — 4KB
• peco-20240930_g1.jpg (GRAPHIC) — 330KB
• peco-20240930_g2.jpg (GRAPHIC) — 161KB
• peco-20240930_g3.jpg (GRAPHIC) — 47KB
• peco-20240930_g4.jpg (GRAPHIC) — 43KB
• peco-20240930_g5.jpg (GRAPHIC) — 52KB
• peco-20240930_g6.jpg (GRAPHIC) — 48KB
• 0001476204-24-000111.txt ( ) — 8051KB
• peco-20240930.xsd (EX-101.SCH) — 43KB
• peco-20240930_cal.xml (EX-101.CAL) — 82KB
• peco-20240930_def.xml (EX-101.DEF) — 201KB
• peco-20240930_lab.xml (EX-101.LAB) — 507KB
• peco-20240930_pre.xml (EX-101.PRE) — 356KB
• peco-20240930_htm.xml (XML) — 789KB

FINANCIAL STATEMENTS (CONDENSED AND UNAUDITED)

FINANCIAL STATEMENTS (CONDENSED AND UNAUDITED) 2 CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023 2 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 3 CONSOLIDATED STATEMENTS OF EQUITY FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 4 CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 6 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 ORGANIZATION 8 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 8 NOTE 3 LEASES 9 NOTE 4 REAL ESTATE ACTIVITY 10 NOTE 5 OTHER ASSETS, NET 11 NOTE 6 DEBT OBLIGATIONS 11 NOTE 7 DERIVATIVES AND HEDGING ACTIVITIES 12 NOTE 8 COMMITMENTS AND CONTINGENCIES 13 NOTE 9 EQUITY 13 NOTE 10 EARNINGS PER SHARE 14 NOTE 11 RELATED PARTY TRANSACTIONS 15 NOTE 12 FAIR VALUE MEASUREMENTS 15 NOTE 13 SUBSEQUENT EVENTS 17 ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 18 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 36 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 36 PART II. ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 37 ITEM 1A.

RISK FACTORS

RISK FACTORS 37 ITEM 2 . UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS , AND ISSUER PURCHASES OF EQUITY SECURITIES 37 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 37 ITEM 4. MINE SAFETY DISCLOSURES 37 ITEM 5. OTHER INFORMATION 38 ITEM 6. EXHIBITS 38

SIGNATURES

SIGNATURES 39 PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2024 FORM 10-Q 1 w PART I FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS PHILLIPS EDISON & COMPANY, INC. CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023 (Condensed and Unaudited) (In thousands, except per share amounts) September 30, 2024 December 31, 2023 ASSETS Investment in real estate: Land and improvements $ 1,842,671 $ 1,768,487 Building and improvements 3,977,380 3,818,184 In-place lease assets 515,014 495,525 Above-market lease assets 75,500 74,446 Total investment in real estate assets 6,410,565 6,156,642 Accumulated depreciation and amortization ( 1,713,033 ) ( 1,540,551 ) Net investment in real estate assets 4,697,532 4,616,091 Investment in unconsolidated joint ventures 27,294 25,220 Total investment in real estate assets, net 4,724,826 4,641,311 Cash and cash equivalents 6,446 4,872 Restricted cash 2,887 4,006 Goodwill 29,066 29,066 Other assets, net 187,033 186,411 Total assets $ 4,950,258 $ 4,865,666 LIABILITIES AND EQUITY Liabilities: Debt obligations, net $ 2,104,788 $ 1,969,272 Below-market lease liabilities, net 114,796 108,223 Accounts payable and other liabilities 129,517 116,461 Deferred income 22,099 18,359 Total liabilities 2,371,200 2,212,315 Commitments and contingencies (see Note 8) — — Equity: Preferred stock, $ 0.01 par value per share, 10,000 shares authorized, zero shares issued and outstanding at September 30, 2024 and December 31, 2023 — — Common stock, $ 0.01 par value per share, 1,000,000 shares authorized, 122,615 and 122,024 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 1,226 1,220 Additional paid-in capital ("APIC") 3,558,407 3,546,838 Accumulated other comprehensive income ("AOCI") 1,907 10,523 Accumulated deficit ( 1,312,303 ) ( 1,248,273 ) Total stockholders' equity 2,249,237 2,310,308 Noncontrolling interests 329,821 343,043 Total equity 2,579,058 2,653,351 Total liabilities and equity $ 4,950,258 $ 4,865,666 See notes to consolidated financial stateme

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Condensed and Unaudited) 1. ORGANIZATION Phillips Edison & Company, Inc. ("we," the "Company," "PECO," "our," or "us") was formed as a Maryland corporation in October 2009. Substantially all of our business is conducted through Phillips Edison Grocery Center Operating Partnership I, L.P. (the "Operating Partnership"), a Delaware limited partnership formed in December 2009. We are a limited partner of the Operating Partnership, and our wholly-owned subsidiary, Phillips Edison Grocery Center OP GP I LLC, is the sole general partner of the Operating Partnership. We are a real estate investment trust ("REIT") that invests primarily in omni-channel grocery-anchored neighborhood and community shopping centers that have a mix of creditworthy national, regional, and local retailers that sell necessity-based goods and services in strong demographic markets throughout the United States. In addition to managing our own shopping centers, our third-party investment management business provides comprehensive real estate and asset management services to three unconsolidated institutional joint ventures, Grocery Retail Partners I LLC ("GRP I"), Necessity Retail Venture LLC ("NRV"), and Necessity Retail Partners ("NRP"), in which we have partial ownership interests, and one private fund (collectively, the "Managed Funds") as of September 30, 2024. In July 2024, through a subsidiary, we entered into a joint venture agreement with an affiliate of Cohen & Steers Income Opportunities REIT, Inc. ("Cohen & Steers") targeting $ 300 million in total equity. We contributed $ 3.2 million for the purchase of one property at formation of the new joint venture, NRV, in exchange for a 20 % ownership interest in NRV. Cohen & Steers acquired an 80 % ownership interest in NRV by contributing $ 12.9 million for the purchase of the one property. In May 2024, we issued $ 350 million of 5.750 % senior notes due 2034 at an issue price of 98.576 % in an

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