Phillips Edison & Company, Inc. Q1 FY2026 earnings call

Jeff Edison mentioned strong first quarter results reflecting the strength of the high-quality portfolio and consistency of execution. PICO offers resilience in necessity-based retail. Bob Myers talked about solid leasing activity, high retailer demand, low bad debt, development and redevelopment projects with 19 under active construction and $74 million investment, and stabilized projects delivering incremental NOI. John Caulfield discussed balance sheet strength, increased 2026 guidance, and plans for acquisitions and dispositions

PICO team delivered NAREIT FFO per share growth of 4.7 percent, core FFO per share growth of 6.2 percent, and same-center NOI growth of 3.5 percent. 74% of PECOS rents come from necessity-based goods and services. Lease portfolio occupancy remained high at 97.1%, leased anchor occupancy at 98.4%, and leased inline occupancy at 95%. Comparable renewal rent spreads were 21.2%, comparable new rent spreads at 36.2%, and in-line leasing deals achieved average annual rent bumps of 2.7%

Increased full-year 2026 guidance with NAREIT FFO and core FFO per share in mid to high single digits. Reiterated 3% to 4% same-center NOI growth. Full-year 2026 gross acquisitions target of $400 to $500 million at PicoShare

Ongoing uncertainties including volatile interest rates, shifting global trade, overseas conflicts, active election cycle, high energy costs, and gap between private and public market pricing of assets

Q: Andrew Reel asks about conversations with discretionary or off-price mom-and-pop tenants.

A: Bob Myers says visibility shows best renewal and leasing pipeline, 28 deals approved in 9 days, strong retention and spreads.

Q: Handel St. Juice asks about transactions.

A: Jeff Edison and Bob Myers say ample supply of product, strong appetite from buyers, 185 million in deals year-to-date, $150 million under negotiation.

Q: Michael Griffin asks about leasing pipeline renewals.

A: Bob Myers talks about bounty targeted space approach, 28 deals executed in April, 24 at LOI or lease out.

Q: Caitlin Burrows asks about development and redevelopment.

A: Bob Myers says about $70 million of development work, purchased land near grocers with pre-lease.

Q: Ronald Camden asks about in-line occupancy and local neighbor exposure.

A: Bob Myers says 95% in-line occupancy, targeted space approach to increase, local neighbor exposure 25%-26% static.

Q: Cooper Clark asks about retention.

A: Bob Myers says retention rate 88% due to one large box vacating, excluding it 92.4% retention.

Q: Michael Goldsmith asks about FFO guidance drivers.

A: John Caulfield says strong operating environment, year-to-date acquisitions, bond offering, lower bad debt and interest rate.

Q: Todd Thomas asks about private and public market valuations.

A: Jeff Edison says 50-75 basis points difference, focus on cheapest capital source.

Q: Floris Van Dijkum asks about unanchored centers.

A: Jeff Edison and Bob Myers say excited about everyday retail opportunities, exceptional demos, 5% CAGRs.

Q: Ron Senebria asks about new greenfield development.

A: Bob Myers says small amount, specific grocery store growth in Sunbelt.

Q: Sydney Rome asks about collectability adjustments.

A: John Caulfield says diversification, lower volume, positive sign.

Q: Paulina Rojas asks about health ratio.

A: Bob Myers says health ratio varies by retailer type, 10% static with renewal spreads, room to increase.

Q: Mike Mueller asks about JV investments.

A: Jeff Edison says JV strategy to expand buying, not highly sensitive to equity cost change