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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.
Revenue by Segment
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.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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