Phillips Edison & Company Delivers Strong Q3 2026 Earnings Amid Economic Uncertainty
Phillips Edison & Company (PECO), a leading grocery-anchored neighborhood shopping center REIT, reported strong third-quarter earnings for 2026, with same-center Net Operating Income (NOI) increasing by 5.3% and core Funds From Operations (FFO) per share growing 9.2%. Despite the continued uncertainty in the broader economy, PECO's fundamentals remain solid.
"The consumer remains resilient, PECO's grocers and necessity-based neighbors continue to drive strong traffic, and we are not seeing any signs of weakness as we look towards 2027," said Jeff Edison, Chairman and CEO of PECO. "Our portfolio's essential nature, with 74% of our Annualized Base Rent (ABR) coming from necessity-based goods and services, provides consistent demand and supports durable cash flow through economic cycles."
The company's grocery-anchored neighborhood centers continued to perform well, driven by strong leasing activity and disciplined acquisitions. PECO's active development and redevelopment pipeline is nearly $90 million today, with opportunities to grow it beyond $100 million while maintaining attractive returns.
"We renew the right neighbors at higher rents, increase contractual rent bumps, improve lease terms, and create new space through outparcels and redevelopment," said Jeff Edison. "Our internal growth engine remains strong, even at high occupancy levels."
PECO also highlighted its expansion into Everyday Retail, which expands its opportunity set while staying close to what it knows: necessity-based retail, neighborhood locations, and markets where its operating engine can create value.
The company's investment strategy remains disciplined and focused on allocating capital where it believes PECO can generate the best long-term growth and returns. This approach allows PECO to be opportunistic while investing in dependable long-term growth.
As PECO looks to 2027, it has increased visibility from leasing, development and redevelopment, its pipeline of acquisitions, and its investment management business. The company's core FFO per share growth target remains a mid to high single-digit range, and same-center NOI growth is expected to continue at 3%-4%.
