Advertisement
Singapore markets open in 5 hours 24 minutes

  • Straits Times Index

    3,292.93
    -3.96 (-0.12%)
     

  • S&P 500

    5,127.79
    +63.59 (+1.26%)
     

  • Dow

    38,675.68
    +449.98 (+1.18%)
     

  • Nasdaq

    16,156.33
    +315.33 (+1.99%)
     

  • Bitcoin USD

    63,981.79
    +317.48 (+0.50%)
     

  • CMC Crypto 200

    1,331.45
    +54.47 (+4.27%)
     

  • FTSE 100

    8,213.49
    +41.34 (+0.51%)
     

  • Gold

    2,310.10
    +1.50 (+0.06%)
     

  • Crude Oil

    77.99
    -0.12 (-0.15%)
     

  • 10-Yr Bond

    4.5000
    -0.0710 (-1.55%)
     

  • Nikkei

    38,236.07
    -38.03 (-0.10%)
     

  • Hang Seng

    18,475.92
    +268.82 (+1.48%)
     

  • FTSE Bursa Malaysia

    1,589.59
    +9.29 (+0.59%)
     

  • Jakarta Composite Index

    7,134.72
    -7,117.42 (-49.94%)
     

  • PSE Index

    6,615.55
    -31.00 (-0.47%)
     

Phillips Edison & Co Inc (PECO) Q1 2024 Earnings: Exceeds Net Income Expectations, Aligns ...

GuruFocus Research
·4-min read

  • Net Income: Reported at $17.7 million for Q1 2024, surpassing estimates of $16.63 million.

  • Earnings Per Share (EPS): Achieved $0.14 per diluted share, exceeding the estimated $0.13.

  • Revenue: Totalled $158.07 million, slightly above the forecast of $157.80 million.

  • Same-Center Net Operating Income (NOI): Increased by 3.7% year-over-year to $106.7 million.

  • Portfolio Occupancy: Reported at 97.2%, with same-center leased portfolio occupancy at 97.5%.

  • Acquisitions: Acquired two shopping centers and one land parcel for a total of $55.9 million.

  • 2024 Full Year Guidance: Affirmed, with Nareit FFO per share expected to range from $2.34 to $2.41 and Core FFO per share from $2.37 to $2.45.

On April 25, 2024, Phillips Edison & Co Inc (NASDAQ:PECO), a leading real estate investment trust specializing in grocery-anchored shopping centers, disclosed its financial results for the first quarter ended March 31, 2024. The company reported a net income of $17.7 million, or $0.14 per diluted share, surpassing the analyst's net income estimate of $16.63 million. This performance aligns with the estimated earnings per share (EPS) of $0.13, demonstrating a robust operational stance. For detailed insights, refer to the company's 8-K filing.

Company Overview

Phillips Edison & Co Inc is a real estate investment trust that invests primarily in grocery-anchored neighborhood and community shopping centers. With a portfolio that includes properties across 31 states, PECO leverages its integrated in-house operating platform to optimize property value and deliver a superior shopping experience.

Financial Highlights and Performance Metrics

The first quarter of 2024 saw PECO achieve a net income attributable to stockholders of $17.7 million, or $0.14 per diluted share, a slight increase from the $16.6 million reported in the same period last year. The company's revenue for the quarter stood at $158.07 million, closely aligning with the estimated $157.80 million, reflecting consistent operational efficiency.

ADVERTISEMENT

Significant growth was noted in the company's Nareit Funds from Operations (FFO), which increased by 4.9% to $80.1 million, or $0.59 per diluted share. Core FFO also saw a rise of 4.5%, amounting to $81.7 million, or $0.60 per diluted share. These metrics are critical for REITs as they provide a clearer picture of the company's operational performance excluding the effects of depreciation and property sales.

PECO's portfolio occupancy remains robust at 97.2%, with a notable increase in leased inline occupancy which rose 50 basis points year-over-year to 94.8%. The company's focus on leasing to leading grocers in their respective markets has contributed to this high occupancy rate and underscores the resilience of PECOs business model amidst varying economic conditions.

Operational and Strategic Developments

During the quarter, PECO executed 245 leases covering 1.3 million square feet. This leasing activity includes remarkable rent spreads, with new leases and renewal leases reporting increases of 29.1% and 16.9%, respectively. Additionally, the company expanded its portfolio by acquiring two shopping centers and one land parcel for a total investment of $55.9 million, aimed at driving future growth through increased occupancy and rent escalations.

From a financial structure perspective, PECO reported approximately $571 million in total liquidity, maintaining a stable leverage with a net debt to adjusted EBITDAre ratio of 5.1x. This financial stability is crucial for sustaining growth and capitalizing on market opportunities.

Outlook and Guidance

Looking ahead, PECO has affirmed its full-year 2024 guidance, projecting a net income per share in the range of $0.51 to $0.55 and maintaining its Nareit FFO per share forecast between $2.34 and $2.41. These projections reflect the company's confidence in its operational strategy and market positioning.

In conclusion, Phillips Edison & Co Inc's first-quarter results demonstrate a solid start to 2024, marked by financial growth and strategic portfolio expansions. As the company continues to navigate the retail real estate market with a focus on grocery-anchored shopping centers, it remains well-positioned to deliver value to its stakeholders.

For further information and updates, investors and interested parties are encouraged to visit PECO's investor relations website.

Explore the complete 8-K earnings release (here) from Phillips Edison & Co Inc for further details.

This article first appeared on GuruFocus.