Phillips Edison & Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to stockholders for the three months ended September 30, 2026, was $62.7 million ($0.49 per diluted share), compared to $24.7 million ($0.20 per diluted share) in the same period in 2025.
• Net income attributable to stockholders for the nine months ended September 30, 2026, was $134.2 million ($1.05 per diluted share), compared to $63.8 million ($0.51 per diluted share) in the same period in 2025.
• Nareit FFO for the three months ended September 30, 2026, increased 9.8% to $98.0 million ($0.69 per diluted share), compared to $89.3 million ($0.64 per diluted share) in 2025.
• Nareit FFO for the nine months ended September 30, 2026, increased 7.7% to $284.6 million ($2.03 per diluted share), compared to $264.3 million ($1.90 per diluted share) in 2025.
• Core FFO for the three months ended September 30, 2026, increased 11.3% to $100.7 million ($0.71 per diluted share), compared to $90.6 million ($0.65 per diluted share) in 2025.
• Core FFO for the nine months ended September 30, 2026, increased 8.6% to $292.6 million ($2.09 per diluted share), compared to $269.5 million ($1.94 per diluted share) in 2025.
• Same-center NOI for the three months ended September 30, 2026, increased 5.3% to $122.4 million, compared to $116.2 million in 2025.
• Same-center NOI for the nine months ended September 30, 2026, increased 4.3% to $361.8 million, compared to $346.9 million in 2025.
• Total revenues for the three months ended September 30, 2026, were $193.1 million, compared to $182.7 million in 2025.
• Total revenues for the nine months ended September 30, 2026, were $573.4 million, compared to $538.7 million in 2025.
• Trailing 12-month net debt to annualized adjusted EBITDAre was 5.2x as of September 30, 2026.
• Net debt to total enterprise value was 33.0% as of September 30, 2026, compared to 33.2% as of December 31, 2025.
• Total liquidity was approximately $762 million as of September 30, 2026, comprised of $17.9 million in cash and $744.3 million in borrowing capacity on a $1.0 billion revolving credit facility.
• Pro forma total liquidity was approximately $950 million following the closing of a new $350 million unsecured term loan.
• The weighted-average interest rate on outstanding debt was 4.5% as of September 30, 2026, with 85.2% of total debt being fixed-rate.

Guidance and Future Outlook:

• Updated full-year 2026 Nareit FFO per diluted share guidance midpoint increased to $2.70, representing 6.3% year-over-year growth.
• Updated full-year 2026 Core FFO per diluted share guidance midpoint increased to $2.77, representing 6.5% year-over-year growth.
• Updated full-year 2026 same-center NOI guidance midpoint increased to 3.75% year-over-year growth.
• Full-year 2026 net income per share guidance updated to a range of $1.21 to $1.24, compared to a previous range of $0.95 to $0.97.
• Full-year 2026 Nareit FFO per share guidance updated to a range of $2.68 to $2.72, compared to a previous range of $2.67 to $2.72.
• Full-year 2026 Core FFO per share guidance updated to a range of $2.75 to $2.79, compared to a previous range of $2.73 to $2.79.
• Full-year 2026 same-center NOI growth guidance updated to a range of 3.50% to 4.00%, compared to a previous range of 3.40% to 4.00%.
• Full-year 2026 gross acquisitions guidance remains at $600 million to $700 million.
• Full-year 2026 dispositions guidance updated to a range of $175 million to $210 million, compared to a previous range of $200 million to $250 million.
• Full-year 2026 interest expense, net guidance updated to $116 million to $120 million, compared to a previous range of $117 million to $127 million.
• Full-year 2026 G&A expense guidance updated to $51 million to $53 million, compared to a previous range of $49 million to $53 million.
• Full-year 2026 non-cash revenue items guidance updated to $22 million to $24 million, compared to a previous range of $21 million to $23 million.
• Full-year 2026 adjustments for collectibility guidance updated to $4.5 million to $6.0 million, compared to a previous range of $4.0 million to $7.0 million.

Business Segments and Product Lines:

• The portfolio consists of 300 wholly-owned properties totaling approximately 33.9 million square feet located in 31 states as of September 30, 2026.
• Leased portfolio occupancy was 97.5% as of September 30, 2026, compared to 97.6% in 2025.
• Same-center leased portfolio occupancy was 97.8% as of September 30, 2026, matching the 2025 level.
• Leased anchor occupancy was 99.0% as of September 30, 2026, compared to 99.2% in 2025.
• Leased inline occupancy was 95.1% as of September 30, 2026, compared to 94.8% in 2025.
• Comparable portfolio new leases executed at a rent spread of 26.3% during the quarter.
• Comparable portfolio renewal leases executed at a record rent spread of 25.2% during the quarter.
• Comparable inline renewal leases executed at a record-high rent spread of 24.2% during the quarter.
• Acquired three shopping centers and land parcels for $181.8 million in the third quarter, including South Shore Commons (Staten Island, NY), Alafaya Square (Orlando, FL), and Easton Commons (Houston, TX).
• Sold $87.1 million in assets during the third quarter, including five shopping centers and a land parcel.
• Year-to-date acquisitions totaled $448.7 million, and year-to-date dispositions totaled $174.0 million.
• Subsequent to quarter end, acquired two grocery-anchored shopping centers for $59.4 million and sold a land parcel for $0.9 million.
• Year-to-date acquisitions through October 26, 2026, totaled $519.1 million at PECO's total prorated share, and dispositions totaled $174.8 million.
• Executed 238 leases totaling 1.1 million square feet in the third quarter of 2026, compared to 270 leases totaling 1.7 million square feet in the same period in 2025.
• Executed 788 leases totaling 3.9 million square feet for the nine months ended September 30, 2026, compared to 780 leases totaling 4.6 million square feet in 2025.
• Expanded and extended the joint venture partnership with Northwestern Mutual to acquire 13 high-quality, grocery-anchored shopping centers valued at approximately $377.5 million.

Market and Competitive Landscape:

• PECO operates one of the nation's largest portfolios of high-quality, grocery-anchored neighborhood shopping centers.
• Top grocery anchors include Kroger, Publix, Albertsons, and Ahold Delhaize.
• The company focuses on necessity-based retailers in fundamentally strong markets.
• Management stated the operating environment remains solid with strong demand for grocery-anchored centers.

Risks and Challenges:

• Risks include changes in national, regional, or local economic climates and local market conditions such as oversupply or reduced demand.
• Potential risks include vacancies, changes in market rental rates, and the need for periodic repairs, renovations, and re-leasing.
• Competition from other shopping centers, the impact of e-commerce, and the attractiveness of properties to tenants are cited as risks.
• Financial stability of tenants and their ability to pay rent are identified as risks.
• Risks related to the ability to pay down, refinance, or extend indebtedness as it becomes due, and increases in borrowing costs due to interest rate changes.
• Potential liability for environmental matters, damage from catastrophic weather, and physical effects of climate change.
• Risks associated with maintaining REIT qualification, changes in laws and regulations, cybersecurity incidents, and loss of key executives.
• Concentration of the portfolio in limited industries, geographies, or investments, and the economic, political, and social impact of pandemics or health crises.
• Risks regarding the ability to re-lease properties on favorable terms or at all, tenant loss or bankruptcy, and the ability to dispose of properties at attractive prices.
• Impact of geopolitical instability, international conflicts, tariffs, and global trade disruptions on the company, tenants, and consumers.

Management Commentary and Tone:

• Jeff Edison, Chairman and CEO, stated the company delivered another quarter of strong financial results and the operating environment remains solid.
• Edison highlighted record renewal rent spreads and high occupancy as evidence of the strength of PECO's operating engine.
• Management emphasized combining right-sized, well-located grocery-anchored centers with a team that converts retailer demand into durable internal growth.
• Edison noted the strategy of matching funding external growth by selling stabilized centers and investing in centers with greater growth potential.
• Management expressed confidence that leasing relationships, operating platform, and market data provide a meaningful advantage in executing acquisitions.
• The tone indicates a disciplined approach to investing and a positive outlook for 2027 and beyond.

Other Key Points:

• Closed on a new $350 million unsecured term loan facility maturing on October 23, 2029, with an initial interest rate of SOFR plus 0.80%.
• Proceeds from the initial $175 million borrowing were used to pay down the $161.8 million term loan due January 2027 and outstanding balances on the $1 billion revolving credit facility.
• The new term loan includes an uncommitted accordion feature allowing borrowing up to an additional $450 million.
• Generated net proceeds of $6.4 million through the issuance of 0.2 million common shares at a gross weighted average price of $42.20 per share via the ATM program in the third quarter.
• Generated net proceeds of $91.7 million through the issuance of 2.2 million common shares at a gross weighted average price of $42.07 per share via the ATM program for the nine months ended September 30, 2026.
• The interest rate swap with a notional value of $200 million and a fixed rate of 3.359% expired on September 1, 2026.
• The joint venture with Northwestern Mutual, Grocery Retail Partners I LLC, has been extended by 10 years to 2036, with Northwestern Mutual retaining approximately 86% and PECO retaining 14% interest.
• PECO will continue to provide leasing, asset management, and property management services for the joint venture, earning recurring fees.
• Conference call and webcast scheduled for October 27, 2026, at 12:00 p.m. Eastern Time.