Phillips Edison & Co Inc (PECO) Q2 2025 Earnings Call Highlights: Strong Growth in Core FFO, Strategic Acquisitions, and Heavily Focused Portfolio on Necessity-Based Goods and Services

Phillips Edison & Co Inc (PECO) reported a 4.2% increase in same-center NOI and an 8.5% increase in Core FFO per share, demonstrating strong financial performance. The company raised its full-year 2025 earnings guidance and has a strong acquisition strategy, having purchased $287 million in assets year-to-date. However, there is a noted deceleration in same-store NOI growth expected in the second half of the year and increased bad debt levels compared to the previous year.

Phillips Edison & Co Inc (PECO) reported robust financial performance for the second quarter of 2025, with a 4.2% increase in same-center net operating income (NOI) and an 8.5% increase in core funds from operations (Core FFO) per share. The company's strong operational results were driven by high retailer demand and effective leasing strategies, as reflected in the reported Nareit FFO of $86.0 million, or $0.62 per diluted share.

PECO's acquisition strategy has been particularly notable, with $287 million in assets purchased year-to-date. The company acquired six shopping centers during the second quarter for a total of $133.3 million, and one additional center for $7.6 million subsequent to the quarter end. These acquisitions are expected to drive value through increased occupancy and rent growth.

However, the company acknowledged a deceleration in same-store NOI growth expected in the second half of the year and an increase in bad debt levels compared to the previous year. Despite these challenges, PECO's strong balance sheet and experienced team position the company well to continue driving earnings growth and market-leading operating metrics.

The company has also raised its full-year 2025 earnings guidance, with the midpoint of the increased Nareit FFO guidance representing 6.3% year-over-year growth and the midpoint of the increased Core FFO guidance representing 6.0% year-over-year growth.

References:
[1] https://investors.phillipsedison.com/news-releases/news-release-details/phillips-edison-company-reports-second-quarter-2025-results-and