Mar 31, 2023

Phillips Edison Q1 2023 Earnings Report

Reported solid first quarter 2023 results, with same-center NOI increasing and leased portfolio occupancy reaching a record high.

Key Takeaways

Phillips Edison & Company reported a strong first quarter in 2023, marked by a 4.9% increase in same-center NOI and a record-high leased portfolio occupancy of 97.5%. The company acquired four Publix-anchored neighborhood shopping centers for $78.7 million and executed a forward-starting interest rate swap to manage interest rate exposure.

Nareit FFO was reported at $76.3 million, or $0.58 per diluted share.

Core FFO reached $78.2 million, or $0.59 per diluted share.

Same-center NOI increased by 4.9% year-over-year.

Leased portfolio occupancy increased to a record-high 97.5%.

Total Revenue
$151M
Previous year: $142M
+6.3%
EPS
$0.14
Previous year: $0.09
+55.6%
Leased Occupancy
97.5%
Previous year: 96.2%
+1.4%
Number of Properties
275
Previous year: 269
+2.2%
GLA
31.5M
Previous year: 30.8M
+2.3%
Gross Profit
$151M
Previous year: $142M
+6.3%
Cash and Equivalents
$6.41M
Previous year: $5.06M
+26.5%
Total Assets
$4.79B
Previous year: $4.64B
+3.2%

Phillips Edison

Phillips Edison

Phillips Edison Revenue by Segment

Forward Guidance

The company reaffirmed its full-year earnings guidance based on current market conditions and assumptions, with revisions to net interest expense and non-cash revenue items.

Positive Outlook

  • Net income per share is projected to be $0.47 - $0.52.
  • Nareit FFO per share is expected to be $2.23 - $2.29.
  • Core FFO per share is anticipated to be $2.28 - $2.34.
  • Same-Center NOI growth is forecasted at 3.0% - 4.0%.
  • Acquisitions (net of dispositions) are planned for $200 million - $300 million.

Challenges Ahead

  • Net interest expense is expected to be $85 million - $90 million.
  • G&A expense is projected to be $44 million - $48 million.
  • Non-cash revenue items are estimated at $14 million - $19 million.
  • Adjustments for collectibility are forecasted at $3.5 million - $4.5 million.
  • The forward-looking statements are subject to market conditions and other factors that could cause actual results to differ materially.

Revenue & Expenses

Visualization of income flow from segment revenue to net income