Phillips Edison REIT | 8-K: FY2026 Q2 Revenue: USD 189.62 M

Revenue: As of FY2026 Q2, the actual value is USD 189.62 M.

EPS: As of FY2026 Q2, the actual value is USD 0.33, beating the estimate of USD 0.1816.

EBIT: As of FY2026 Q2, the actual value is USD 74.89 M.

Financial Performance Summary

Total Revenues

Phillips Edison & Company, Inc.’s total revenues were $189,619 thousand for the second quarter of 2026, an increase from $177,753 thousand in the second quarter of 2025. For the six months ended June 30, 2026, total revenues reached $380,360 thousand, compared to $356,064 thousand for the same period in 2025.

Net Income Attributable to Stockholders

Net income attributable to stockholders was $41.1 million for the second quarter of 2026, up from $12.8 million for the second quarter of 2025. For the six months ended June 30, 2026, net income attributable to stockholders was $71.5 million, compared to $39.1 million for the same period in 2025.

Nareit Funds From Operations (FFO)

Nareit FFO attributable to stockholders and operating partnership unit holders increased 9.0% year-over-year to $93.7 million in the second quarter of 2026, from $86.0 million in the second quarter of 2025. For the six months ended June 30, 2026, Nareit FFO rose 6.6% to $186.6 million, compared to $175.1 million for the same period in 2025.

Core FFO

Core FFO attributable to stockholders and operating partnership unit holders increased 8.3% year-over-year to $95.5 million in the second quarter of 2026, compared to $88.2 million in the second quarter of 2025. For the six months ended June 30, 2026, Core FFO grew 7.2% to $191.9 million, compared to $179.0 million for the same period in 2025.

Same-Center Net Operating Income (NOI)

Second quarter 2026 same-center NOI increased 3.8% to $120.6 million, up from $116.2 million during the second quarter of 2025. For the six months ended June 30, 2026, same-center NOI increased 3.7% to $242.1 million, compared to $233.6 million during the same period in 2025.

Operating Expenses

Total operating expenses were $135,011 thousand for the second quarter of 2026, compared to $134,726 thousand in the second quarter of 2025. For the six months ended June 30, 2026, total operating expenses were $267,542 thousand, compared to $263,101 thousand in the prior year period.

Interest Expense, Net

Net interest expense was -$29.394 million for the second quarter of 2026, compared to -$27.719 million for the second quarter of 2025. For the six months ended June 30, 2026, net interest expense was -$59.166 million, compared to -$53.391 million for the same period in 2025.

Gain (Loss) on Disposal of Property, Net

Phillips Edison & Company, Inc. reported a gain on disposal of property, net of $19.390 million for the second quarter of 2026, compared to a loss of -$0.066 million in the second quarter of 2025. For the six months ended June 30, 2026, the gain was $26.207 million, significantly higher than $5.543 million in the comparable 2025 period.

Other Income and Expenses

Other income, net, was $0.650 million for Q2 2026, compared to other expense, net, of -$0.990 million for Q2 2025. For the six months ended June 30, 2026, other expense, net, was -$1.363 million, compared to -$1.970 million for the same period in 2025.

EBITDAre and Adjusted EBITDAre

EBITDAre for the second quarter of 2026 was $124.490 million, compared to $114.840 million for the second quarter of 2025. For the six months ended June 30, 2026, EBITDAre was $248.508 million, compared to $230.494 million for the same period in 2025. Adjusted EBITDAre for the second quarter of 2026 was $125.937 million, compared to $116.636 million for the second quarter of 2025. For the six months ended June 30, 2026, Adjusted EBITDAre was $252.011 million, compared to $233.637 million for the same period in 2025.

Net Cash Provided by Operating Activities

Net cash provided by operating activities for the six months ended June 30, 2026, was $173,582 thousand, an increase from $156,662 thousand for the same period in 2025.

Capital Expenditures

Capital expenditures for the six months ended June 30, 2026, were -$50,471 thousand, compared to -$59,356 thousand for the same period in 2025.

Operational Metrics

Portfolio Statistics

As of June 30, 2026, Phillips Edison & Company, Inc.’s wholly-owned portfolio comprised 302 properties totaling approximately 33.9 million square feet, located in 31 states, compared to 303 properties totaling approximately 34.0 million square feet as of June 30, 2025. The total managed portfolio was 330 shopping centers as of June 30, 2026, including 302 wholly-owned centers and 28 centers owned in three institutional joint ventures.

Occupancy Rates

Leased portfolio occupancy was 97.3% as of June 30, 2026, compared to 97.4% as of June 30, 2025. Same-center leased portfolio occupancy was 97.5% as of June 30, 2026, compared to 97.6% as of June 30, 2025. Leased inline occupancy reached a record-high of 95.5% as of June 30, 2026, up from 94.8% as of June 30, 2025. Same-center leased inline occupancy was also a record-high of 95.5% as of June 30, 2026, compared to 95.0% as of June 30, 2025.

Leasing Activity

During the second quarter of 2026, Phillips Edison & Company, Inc. executed a record-high 304 leases totaling approximately 1.2 million square feet, compared to 276 leases totaling approximately 1.4 million square feet during the second quarter of 2025. For the six months ended June 30, 2026, 550 leases were executed totaling approximately 2.8 million square feet, compared to 510 leases totaling approximately 2.9 million square feet during the same period in 2025. Comparable rent spreads for the second quarter of 2026 were 21.2% for renewal leases, 33.7% for new leases, and 24.8% combined. For the six months ended June 30, 2026, comparable rent spreads were 34.5% for new leases, 21.2% for renewal leases, and 24.6% combined.

Transaction Activity

In the second quarter of 2026, Phillips Edison & Company, Inc. acquired $141.4 million in wholly-owned assets, including five shopping centers, and sold $64.6 million in assets. For the six months ended June 30, 2026, the Company acquired $266.9 million in wholly-owned assets and sold $86.9 million in assets. Real estate acquisitions, net, totaled -$268,389 thousand, while proceeds from the sale of real estate, net, were $83,380 thousand for the six months ended June 30, 2026. This compares to -$268,108 thousand in acquisitions and $6,438 thousand in dispositions for the six months ended June 30, 2025. Subsequent to quarter-end, the Company sold three shopping centers for $39.7 million. For joint ventures, $11.0 million in assets were acquired at Phillips Edison & Company, Inc.’s prorated share during the second quarter of 2026.

Liquidity and Debt

As of June 30, 2026, Phillips Edison & Company, Inc. had approximately $857.3 million in total liquidity, consisting of $30.0 million in cash, cash equivalents, and restricted cash, plus $827.3 million of borrowing capacity available on its $1.0 billion revolving credit facility. The Company’s trailing twelve-month net debt to annualized Adjusted EBITDAre was 5.1x as of June 30, 2026, down from 5.2x at December 31, 2025. The outstanding debt had a weighted-average interest rate of 4.4% and a weighted-average maturity of 5.6 years, with 95.9% being fixed-rate debt as of June 30, 2026. During the second quarter of 2026, Phillips Edison & Company, Inc. generated net proceeds of $85.3 million from the issuance of 2.0 million common shares through its ATM program. Subsequent to quarter-end, an additional $6.4 million in net proceeds were generated from the issuance of 0.2 million common shares through the ATM program.

Outlook / Guidance

Phillips Edison & Company, Inc. updated its full-year 2026 guidance, increasing the midpoint of Nareit FFO per diluted share guidance to represent 6.3% year-over-year growth and Core FFO per diluted share guidance to represent 6.2% year-over-year growth. The midpoint of full year 2026 same-center NOI guidance was also increased to reflect 3.7% year-over-year growth. Additionally, the Company increased its full year 2026 gross acquisitions guidance to a range of $500 million to $600 million.