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• Same-Center NOI Growth: Increased by 3.2%.

• NAREIT FFO per Share Growth: Increased by 9.1%.

• Core FFO per Share Growth: Increased by 6.9%.

• Portfolio Occupancy: Ended the quarter at 97.8%, a sequential increase of 30 basis points.

• Anchor Occupancy: Increased to 99.4%, a sequential increase of 60 basis points.

• In-line Occupancy: Ended the quarter at 95%.

• Comparable New Rent Spreads: 55% for the third quarter.

• In-line New Rent Spreads: 28.3% in the quarter.

• Comparable Renewal Rent Spreads: Increased by 19.8% in the third quarter.

• In-line Renewal Spreads: 19.6% in the quarter.

• Neighbor Retention: Remained high at 92%.

• Tenant Improvements for Renewals: $0.73 per square foot in the third quarter.

• NAREIT FFO: Increased 12.5% to $81.6 million or $0.60 per diluted share.

• Core FFO: Increased 9.6% to $84.4 million or $0.62 per diluted share.

• Rental Income Growth: 4.5% year-over-year.

• Liquidity: Approximately $752 million.

• Net Debt to Adjusted EBITDA: 5.1 times.

• Weighted Average Interest Rate: 4.4%.

• Weighted Average Maturity: Six years.

• Fixed Rate Debt: 93% of total debt.

• 2024 Guidance - Net Income per Share: $0.48 to $0.50.

• 2024 Guidance - NAREIT FFO per Share: $2.35 to $2.39.

• 2024 Guidance - Core FFO per Share: $2.40 to $2.44.

• Warning! GuruFocus has detected 8 Warning Signs with PECO.

Release Date: October 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Phillips Edison & Co Inc (NASDAQ:PECO) reported a 3.2% increase in same-center NOI and a 9.1% growth in NAREIT FFO per share.

• The company maintains a high occupancy rate of 97.8%, with anchor occupancy at 99.4%.

• PECO has a strong acquisition pipeline, having acquired nine shopping centers and several land parcels for $211 million year-to-date.

• The company has a robust balance sheet with $752 million in liquidity and no significant debt maturities until 2027.

• PECO achieved a 19.8% increase in comparable renewal rent spreads, reflecting strong leasing demand and pricing power.

Negative Points

• The company faces higher interest expenses, which partially offset revenue gains from higher occupancy levels.

• There is a potential risk associated with the Kroger-Albertsons merger, which could impact Albertsons-anchored centers.

• In-line occupancy slightly decreased to 95%, indicating potential challenges in maintaining tenant retention.

• The company anticipates being at the high end of its uncollectible reserves range, suggesting potential bad debt concerns.

• Despite strong acquisition activity, the company may need to raise additional equity if acquisitions exceed $250 million.