Phillips Edison & Company Delivers Strong Q1 Results, Poised for Mid to High Single-Digit Growth in 2026
Phillips Edison & Company (PECO) recently released its first quarter 2026 earnings call transcript, showcasing another quarter of strong results and a solid outlook for the year. The company's Chairman and CEO, Jeff Edison, highlighted the strength of their high-quality portfolio and the consistency of their execution in delivering NAREIT FFO per share growth of 4.7%, core FFO per share growth of 6.2%, and same center NOI growth of 3.5%.
In a time marked by ongoing uncertainties, both domestically and globally, PECO's grocery-anchored, necessity-based retail portfolio has proven to be resilient, with the company maintaining its focus on driving value at the property level. Edison noted that PECO is well-positioned to deliver growth across changing economic cycles, citing the company's stable occupancy rates, high-quality retailers, and ability to access efficient capital.
"We're operating in a time where there are many ongoing uncertainties," Edison said. "Interest rates have been volatile, the global trade picture is shifting, and conflicts overseas continue to affect markets. But in times like this, the market tends to reward businesses that have stability, and that's exactly where PECO plays."
The company's focus on necessity-based retailers has proven successful, with 74% of its rents coming from such categories as quick service and fast casual restaurants, health and wellness, beauty, fitness, and medtail. Leasing activity remained strong in the first quarter, with occupancy rates remaining high at 97.1%, leased anchor occupancy at 98.4%, and leased inline occupancy at 95%.
"Our retailers are healthy and continue to look long-term," Edison said. "We're seeing a resilient consumer, and our top grocers and necessity-based retailers continue to drive solid foot traffic to our centers."
PECO's CEO emphasized the company's ability to access capital efficiently, citing its platform's capacity to raise funds in the public markets through institutional joint ventures and asset recycling. This discipline has allowed PECO to maintain a stable financial position amidst market volatility.
"We believe markets in 2026 will reward companies with a focused growth strategy and the ability to fund growth responsibly," Edison said. "PECO is well-positioned to continue to do both."
In conclusion, Phillips Edison & Company's Q1 results demonstrate the company's resilience and solid financial performance, making it an attractive opportunity for investors seeking mid to high single-digit annual earnings growth. With its stable portfolio, efficient capital access, and focus on driving value at the property level, PECO is poised to deliver strong returns in 2026."
