Phillips Edison Raises 2026 Guidance After NOI Growth Accelerates

The Tip Desk · October 27, 2026 · 4 min read

Same-center NOI rose 5.3% in the third quarter, and the company lifted full-year Core FFO guidance to $2.75–$2.79 a share.

Phillips Edison & Company (PECO), one of the nation’s largest owners of grocery-anchored neighborhood shopping centers, reported that same-center net operating income growth accelerated to 5.3% in the third quarter, after 3.8% in the second quarter and 3.5% in the first.

Same-center NOI was $122.4 million, compared with $116.2 million a year earlier. Core funds from operations attributable to stockholders and operating partnership unit holders increased 11.3% to $100.7 million, or $0.71 a share, from $90.6 million, or $0.65 a share, in the third quarter of 2025. Nareit FFO rose 9.8% to $98.0 million, or $0.69 a share. Net income attributable to stockholders was $62.7 million, or $0.49 a share, versus $24.7 million, or $0.20 a share, a year earlier. The third quarter of 2026 included a $40.6 million gain on property disposals.

The company raised its full-year 2026 outlook. Core FFO per diluted share guidance moved to $2.75–$2.79 from $2.73–$2.79, a midpoint of $2.77 that the company said represents 6.5% year-over-year growth. Nareit FFO guidance moved to $2.68–$2.72 from $2.67–$2.72, with a $2.70 midpoint the company said represents 6.3% growth. Same-center NOI growth guidance moved to 3.50%–4.00% from 3.40%–4.00%. Net income per diluted share guidance was raised to $1.21–$1.24 from $0.95–$0.97. Gross acquisitions guidance was $600 million–$700 million. Dispositions guidance was lowered to $175 million–$210 million from $200 million–$250 million.

Chairman and Chief Executive Officer Jeff Edison said the company delivered another quarter of strong financial results and that the operating environment remains solid. He said record renewal rent spreads and high occupancy showcase the strength of PECO’s operating engine, and that the company continues to match fund external growth by selling stabilized centers and investing in centers with greater growth potential.

Comparable portfolio renewal leases were executed at a record rent spread of 25.2% in the third quarter, versus 21.2% in both the second and first quarters. New comparable leases were executed at a 26.3% spread. Combined comparable spreads were 25.5%. During the quarter, 238 leases totaling about 1.1 million square feet were executed.

Leased portfolio occupancy was 97.5% at September 30, 2026. Same-center leased portfolio occupancy was 97.8%. Leased anchor occupancy was 99.0% and same-center leased anchor occupancy was 99.2%. Leased inline occupancy was 95.1% and same-center leased inline occupancy was 95.4%.

The wholly-owned portfolio consisted of 300 properties totaling about 33.9 million square feet in 31 states. In the third quarter the company acquired $181.8 million of assets, including South Shore Commons in Staten Island, Alafaya Square in an Orlando suburb and Easton Commons in a Houston suburb, and sold $87.1 million in assets. For the nine months ended September 30, it acquired $448.7 million and sold $174.0 million. Year to date through October 26, it had acquired $519.1 million at its total prorated share and sold $174.8 million.

Net debt to adjusted EBITDAre was 5.2x on a trailing-12-month basis at September 30, 2026, unchanged from 5.2x at December 31, 2025. Outstanding debt had a weighted-average interest rate of 4.5% and a weighted-average maturity of 5.3 years including extension options; 85.2% of total debt was fixed-rate. Total liquidity was about $762 million at quarter-end.

After quarter-end, the company closed a $350 million unsecured term loan maturing October 23, 2029, initially at SOFR plus 0.80%, and used $175 million of proceeds to pay down a $161.8 million term loan due January 2027 and revolving balances, lowering the interest rate by about 30 basis points. Pro forma for the new facility, liquidity was about $950 million. It also expanded and extended by 10 years its Grocery Retail Partners I joint venture with Northwestern Mutual to acquire 13 grocery-anchored centers valued at about $377.5 million, with Northwestern Mutual and PECO retaining about 86% and 14%, respectively.