# Phillips Edison & Company, Inc.

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Phillips Edison & Company, Inc.).

## Overview

Phillips Edison & Company, Inc. is a U.S.-based real estate investment trust focused on owning and operating grocery-anchored shopping centers. Its portfolio is concentrated in neighborhood centers across the United States, and it also runs a third-party property management and advisory business for select joint ventures and private funds.

## Products & services

• Grocery-anchored shopping center ownership
• Retail property leasing and tenant management
• Property management services
• Development and redevelopment projects
• Advisory services for managed funds

- **Shopping Center Ownership** (75%) — Ownership and operation of grocery-anchored neighborhood shopping centers.
- **Rental Income** (70%) — Base rent and related lease income from retail tenants.
- **Tenant Recovery Income** (24%) — Recoveries of common area maintenance, taxes, and other reimbursables.
- **Property Management Services** (4%) — Management services provided to joint ventures and private funds.
- **Other Property Income** (1%) — Ancillary property-level income such as fees and miscellaneous revenue.

- Grocery-anchored shopping center ownership
- Retail property leasing and tenant management
- Property management services
- Development and redevelopment projects
- Advisory services for managed funds

## Customers

Phillips Edison’s core customers are grocery operators and the national, regional, and local retailers that lease space in its shopping centers. The centers are designed to serve necessity-based shopping trips, so tenants typically sell food, pharmacy, household, and other everyday goods and services. Its third-party management business serves institutional joint ventures and a private fund that outsource property management and advisory functions.

- **Grocery anchor tenants** (primary) — Supermarket operators that anchor centers and generate traffic for the rest of the property.
- **Inline retail tenants** (primary) — National, regional, and local retailers leasing smaller spaces for necessity-based goods and services.
- **Outparcel tenants** (secondary) — Users of standalone pads and outparcels, often restaurants, banks, or service businesses.
- **Managed funds and joint ventures** (secondary) — Institutional owners that buy property management and advisory services.

- Grocery anchors that drive traffic and stabilize center occupancy
- National, regional, and local retailers leasing inline and outparcel space
- Necessity-based service tenants serving daily household needs
- Institutional joint ventures using outsourced property management
- Private fund investors seeking real estate management and advisory support

## Geography

The company’s real estate portfolio is concentrated in the United States, with properties in 31 states and a focus on suburban, demographically strong trade areas. Its business is tied to local shopping patterns, so geography matters through household income, population growth, and the strength of grocery trade areas rather than through international diversification.

- **United States** (100%) — All disclosed properties and operations are U.S.-based

- Portfolio spans 31 U.S. states
- Centers are concentrated in suburban trade areas
- Markets are chosen for household income and population growth
- Grocery-anchored locations benefit from recurring local traffic
- No material international operating footprint disclosed

## Strategy

Phillips Edison’s strategy centers on owning grocery-anchored centers, maintaining high occupancy, and using disciplined acquisitions to expand the portfolio. It also pursues selective development and redevelopment, while using its operating platform and balance sheet access to support external growth and recurring distributions.

- **Acquire grocery-anchored shopping centers** (medium-term) — These assets fit the company’s core model and support durable traffic and leasing demand.
- **Maximize occupancy and tenant retention** (short-term) — Stable occupancy supports rent collection, spreads, and lower downtime between leases.
- **Selective redevelopment and outparcel development** (medium-term) — Repositioning and ground-up projects can increase property value and future rent potential.
- **Maintain balance sheet flexibility** (long-term) — Access to multiple capital sources supports acquisitions and portfolio management.

- Acquire grocery-anchored centers in attractive suburban markets
- Maintain high occupancy through active leasing and tenant retention
- Use redevelopment and outparcel projects to create value
- Grow through disciplined acquisitions and joint ventures
- Preserve balance sheet flexibility to support capital access

## Risks

The business depends on the stability of grocery anchors and smaller tenants, so tenant failures, vacancies, or weak leasing demand can reduce revenue and occupancy. It also faces real estate-specific risks such as interest rate sensitivity, regulatory compliance, property-level operating costs, and cybersecurity exposure through both its own systems and those of its tenants.

- **Tenant concentration and tenant failure** [high] — Revenue depends on grocery anchors and a broad base of smaller tenants; losses can hurt occupancy and rent collection.
- **Interest rate and financing risk** [high] — REIT acquisition and refinancing economics are sensitive to debt costs and capital market access.
- **Regulatory and legal compliance** [medium] — ADA, fire, safety, and other property regulations can require capital spending and create liability.
- **Cybersecurity and IT disruption** [medium] — Operational systems and tenant data exposure can lead to service interruptions, remediation costs, and litigation.

- Anchor tenant loss can reduce traffic and leasing demand
- Small-tenant bankruptcies can raise vacancy and downtime
- Interest rates affect acquisition economics and financing costs
- ADA, fire, and safety compliance can create unexpected costs
- Cybersecurity incidents can disrupt operations and create liability

## Accounting

Revenue is driven mainly by lease income and tenant recoveries, so lease classification, straight-line rent, and collectability judgments can affect reported results. Real estate valuation, acquisition accounting, and impairment testing are important because property fair values and purchase price allocations influence depreciation, gains on sale, and balance-sheet carrying values.

- **Lease revenue recognition and straight-line rent** — Affects reported revenue and comparability across periods
- **Tenant recovery income and uncollectible reserves** — Affects operating revenue and NOI
- **Real estate valuation and purchase price allocation** — Affects balance sheet carrying values and earnings
- **Tax protection agreement liabilities** — Creates contingent tax-related exposure

- Lease revenue timing affects rental income recognition
- Straight-line rent and lease incentives affect reported revenue
- Tenant recovery income depends on recoverable operating costs
- Purchase price allocation affects property values and depreciation
- Fair value and impairment judgments affect real estate carrying values

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*Last updated: 2026-04-29T04:48:39.585160+00:00*