Jun 30, 2023

Phillips Edison Q2 2023 Earnings Report

Reported solid growth in Q2 2023, driven by same-center NOI increase and record-high occupancy and renewal rent spreads. The company raised full year earnings guidance.

Key Takeaways

Phillips Edison & Company reported a strong second quarter in 2023, with net income attributable to stockholders totaling $14.5 million, or $0.12 per diluted share. Same-center NOI increased by 5.3%, and the leased portfolio occupancy reached a record-high of 97.8%. The company raised its full year earnings guidance, reflecting confidence in continued performance.

Nareit FFO was reported at $75.9 million, or $0.58 per diluted share.

Core FFO was reported at $77.7 million, or $0.59 per diluted share.

Same-center NOI increased by 5.3% year-over-year.

Leased portfolio occupancy increased by 100 basis points year-over-year to 97.8%.

Total Revenue
$152M
Previous year: $143M
+6.8%
EPS
$0.12
Previous year: $0.12
+0.0%
Leased Occupancy
97.8%
Previous year: 96.8%
+1.0%
Number of Properties
274
Previous year: 269
+1.9%
GLA
31.4M
Previous year: 30.9M
+1.6%
Gross Profit
$152M
Previous year: $143M
+6.8%
Cash and Equivalents
$5.56M
Previous year: $24.7M
-77.4%
Total Assets
$4.74B
Previous year: $4.69B
+1.0%

Phillips Edison

Phillips Edison

Phillips Edison Revenue by Segment

Forward Guidance

PECO updated its 2023 earnings guidance, based on the Company’s current view of existing market conditions and assumptions for the year ending December 31, 2023.

Positive Outlook

  • Net income per share guidance updated to $0.51 - $0.55
  • Nareit FFO per share guidance updated to $2.27 - $2.32
  • Core FFO per share guidance updated to $2.30 - $2.36
  • Same-Center NOI growth guidance updated to 3.75% - 4.50%
  • Acquisitions (net of dispositions) guidance maintained at $200,000,000 - $300,000,000

Challenges Ahead

  • Development and redevelopment spend guidance lowered to $35,000,000 - $45,000,000
  • Interest expense, net guidance maintained at $85,000,000 - $90,000,000
  • G&A expense guidance maintained at $44,000,000 - $48,000,000
  • Non-cash revenue items guidance updated to $16,000,000 - $19,000,000
  • Adjustments for collectibility guidance updated to $3,000,000 - $4,000,000

Revenue & Expenses

Visualization of income flow from segment revenue to net income