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Sep 30, 2020
Phillips Edison Q3 2020 Earnings Report
Phillips Edison reported third quarter results with net income of $13.4 million. Rent and recovery collections totaled 94% of monthly billings.
Key Takeaways
Phillips Edison & Company reported a net income of $13.4 million for the third quarter of 2020. Rent and recovery collections reached 94% of monthly billings. The company intends to repurchase up to 4.5 million shares of common stock at $5.75 per share in December 2020 and resume monthly distribution in January 2021 at an annualized rate of $0.34 per share.
Same-center NOI decreased 4.1% to $83.5 million.
Rent and recovery collections totaled 94% of monthly billings for the quarter.
Leased portfolio occupancy totaled 95.3%, an increase from 95.0% at September 30, 2019.
Core funds from operations (Core FFO) increased 1.1% to $59.7 million; Core FFO per diluted share was unchanged at $0.18.
Phillips Edison
Phillips Edison
Phillips Edison Revenue by Segment
Revenue by Segment
Rental Income Revenue
CapyFin.comFees and Management Income Revenue
CapyFin.comOther Property Income Revenue
CapyFin.com Forward Guidance
PECO intends to commence a voluntary fixed price tender offer on November 10, 2020 for up to 4.5 million shares of its outstanding common stock at $5.75 per share. Effective January 2021, the Company expects to recommence repurchases under the DDI portion of its amended and restated SRP.
Positive Outlook
- Reinstating distributions for December 2020 to stockholders of record at the close of business on December 28, 2020 equal to a monthly amount of $0.02833333 per share, or $0.34 on an annualized basis.
- The December 2020 distribution is expected to be made on January 7, 2021.
- The Dividend Reinvestment Plan has been reinstated by the Board effective January 7, 2021.
- SRP repurchases are projected to be made at the current tender offer price of $5.75.
- The tender offer provides liquidity for stockholders.
Challenges Ahead
- The tender offer price of $5.75 is 34% lower than the Company’s current EVPS of $8.75.
- The Board makes no recommendation to stockholders as to whether to tender or refrain from tendering their shares.
- If more than 4.5 million shares are properly tendered and not properly withdrawn, PECO will purchase the shares on a pro rata basis.
- The Tender Offer will be subject to other conditions, and PECO will reserve the right, subject to applicable laws, to withdraw or amend the Tender Offer if, at any time prior to the payment of deposited shares, certain events occur.
- Future distributions are not guaranteed; however, the Board intends to evaluate distributions on a monthly basis throughout 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income