cik0001476204-20230801
000147620400014762042023-08-012023-08-01

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 1, 2023

https://cdn.kscope.io/13b79b7eb85deecb2e4a6219d65f212a-pecohorizontallogobluea26.jpg
Phillips Edison & Company, Inc.
(Exact name of registrant as specified in its charter)


Maryland000-5469127-1106076
(State or other jurisdiction
of incorporation)
(Commission File Number)(IRS Employer
Identification No.)
11501 Northlake Drive
Cincinnati, Ohio
45249
(Address of principal executive offices)(Zip Code)
(513) 554-1110
(Registrant’s telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock
$0.01 par value per share
PECOThe Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.






Item 2.02   Results of Operations and Financial Condition.

Item 7.01 Regulation FD Disclosure.

On August 1, 2023, Phillips Edison & Company, Inc. (the “Company”) issued a press release announcing its results for the quarter ended June 30, 2023. A copy of that press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. A copy of the Company’s Second Quarter 2023 Supplemental Disclosure is attached hereto as Exhibit 99.2 and incorporated herein by reference. The Company will host a conference call on Wednesday, August 2, 2023, at 12:00 p.m. Eastern Time to discuss the second quarter results and provide commentary on its business performance and guidance. The conference call can be accessed by dialing (888) 210-4659 (domestic) or (646) 960-0383 (international). A live webcast of the presentation can be accessed by visiting https://events.q4inc.com/attendee/973116130, and a replay of the webcast will be available approximately one hour after the conclusion of the live webcast at the webcast link above.

The information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, are being furnished to the Securities and Exchange Commission (“SEC”), and shall not be deemed to be “filed” with the SEC for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any other filing with the SEC except as expressly set forth by specific reference in such filing.
Item  9.01   Financial Statements and Exhibits.
(d) Exhibits.
Exhibit NumberDescription of Exhibit
99.1
99.2
104Cover Page Interactive Data File (formatted as inline XBRL)




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. 
   
 PHILLIPS EDISON & COMPANY, INC.
   
Dated: August 1, 2023By:/s/ Jennifer L. Robison
  Jennifer L. Robison
  Chief Accounting Officer and Senior Vice President
(Principal Accounting Officer)



Document

Phillips Edison & Company Reports
Second Quarter 2023 Results and
Raises Full Year Earnings Guidance

CINCINNATI - August 1, 2023 - Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO” or the “Company”), one of the nation’s largest owners and operators of grocery-anchored omni-channel neighborhood shopping centers, today reported financial and operating results for the period ended June 30, 2023 and provided updated 2023 earnings guidance. For the three and six months ended June 30, 2023, net income attributable to stockholders was $14.5 million, or $0.12 per diluted share, and $31.1 million, or $0.26, per diluted share, respectively.

Highlights for the Second Quarter Ended June 30, 2023
Reported Nareit FFO of $75.9 million, or $0.58 per diluted share
Reported Core FFO of $77.7 million, or $0.59 per diluted share
Raised 2023 Nareit FFO and Core FFO guidance to a range of $2.27 to $2.32 per diluted share and $2.30 to $2.36 per diluted share, respectively
Increased same-center NOI year-over-year by 5.3%
Raised 2023 same-center NOI guidance to a range of 3.75% to 4.50%
Increased leased portfolio occupancy by 100 basis points year-over-year to a record-high 97.8%
Executed comparable renewal leases during the quarter at a record-high rent spread of 17.7%
Executed comparable new leases during the quarter at a rent spread of 25.1%
Closed on amendments to extend the maturities on its 2024 term loans

Management Commentary
Jeff Edison, Chairman and Chief Executive Officer of PECO stated: “The PECO team delivered another solid quarter of growth with same-center NOI increasing by 5.3%, and our portfolio reached new record highs in occupancy and renewal rent spreads. The continued strength of our operating performance is attributed to our differentiated and focused strategy of exclusively owning grocery-anchored neighborhood shopping centers and our ability to drive results at the property level through our integrated and cycle-tested operating platform, as evidenced by our Neighbor retention rate of 94% during the second quarter. We continue to see strong retailer demand, which we are converting into higher rents, with no current signs of slowing.”

Financial Results for the Second Quarter and Six Months Ended June 30, 2023
Net Income
Second quarter 2023 net income attributable to stockholders totaled $14.5 million, or $0.12 per diluted share, compared to net income of $13.5 million, or $0.12 per diluted share, during the second quarter of 2022.
For the six months ended June 30, 2023, net income attributable to stockholders totaled $31.1 million, or $0.26 per diluted share, compared to net income of $23.6 million, or $0.21 per diluted share, for the same period in 2022.

Nareit FFO
Second quarter 2023 funds from operations attributable to stockholders and operating partnership (“OP”) unit holders as defined by Nareit (“Nareit FFO”) increased 6.7% to $75.9 million, or $0.58 per diluted share, compared to $71.1 million, or $0.55 per diluted share, during the second quarter of 2022.
For the six months ended June 30, 2023, Nareit FFO increased 10.2% to $152.2 million, or $1.15 per diluted share, compared to $138.2 million, or $1.07 per diluted share, during the same period a year ago.



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Core FFO
Second quarter 2023 core funds from operations attributable to stockholders and OP unit holders (“Core FFO”) increased 8.2% to $77.7 million, or $0.59 per diluted share, compared to $71.8 million, or $0.56 per diluted share, during the second quarter of 2022.
For the six months ended June 30, 2023, Core FFO increased 7.9% to $155.9 million, or $1.18 per diluted share, compared to $144.4 million, or $1.12 per diluted share, for the same period in 2022.

Same-Center NOI
Second quarter 2023 same-center net operating income (“NOI”) increased 5.3% to $99.0 million, compared to $94.0 million during the second quarter of 2022.
For the six months ended June 30, 2023, same-center NOI increased 5.1% to $197.5 million, compared to $187.9 million during the same period a year ago.

Portfolio Overview for the Second Quarter and Six Months Ended June 30, 2023
Portfolio Statistics
As of June 30, 2023, PECO’s wholly-owned portfolio consisted of 274 properties, totaling approximately 31.4 million square feet, located in 31 states. This compared to 269 properties, totaling approximately 30.9 million square feet located in 31 states as of June 30, 2022.
Leased portfolio occupancy increased to 97.8% at June 30, 2023, compared to 96.8% at June 30, 2022.
Anchor occupancy increased to 99.4% at June 30, 2023, compared to 98.7% at June 30, 2022, and inline occupancy increased to 94.8% at June 30, 2023, compared to 93.2% at June 30, 2022.

Leasing Activity
During the second quarter of 2023, 285 leases (new, renewal and options) were executed totaling 1.6 million square feet. This compared to 265 leases executed totaling 1.6 million square feet during the second quarter of 2022.
During the six months ended June 30, 2023, 548 leases (new, renewal and options) were executed totaling 2.6 million square feet. This compared to 509 leases executed totaling 2.4 million square feet during the same period in 2022.
Comparable rent spreads during the second quarter of 2023, which compare the percentage increase (or decrease) of new or renewal leases to the expiring lease of a unit that was occupied within the past twelve months, were 25.1% for new leases, 17.7% for renewal leases (excluding options) and 18.9% combined (new and renewal leases only, excluding options).
Comparable rent spreads during the six months ended June 30, 2023 were 26.1% for new leases, 17.0% for renewal leases (excluding options) and 18.5% combined (new and renewal leases only, excluding options).

Transaction Activity
During the second quarter of 2023, one property and two outparcels were sold for $6.3 million. No properties were acquired during the quarter.
During the six months ended June 30, 2023, the Company acquired four properties for $78.7 million.

Balance Sheet Highlights
As of June 30, 2023, PECO had $629.1 million of total liquidity, comprised of $9.9 million of cash, cash equivalents and restricted cash, plus $619.2 million of borrowing capacity available on its $800 million revolving credit facility.
As of June 30, 2023, PECO’s net debt to annualized adjusted EBITDAre was 5.2x. This compared to 5.3x at December 31, 2022.
Following the July 31, 2023 term loan amendments, PECO’s outstanding debt had a weighted-average interest rate of 3.9% and a weighted-average maturity of 4.6 years when including all extension options, and 81.3% of total debt was fixed-rate debt.
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Extension of Term Loans
On July 31, 2023, PECO amended three senior unsecured term loans with a total notional amount of $475.0 million scheduled to mature during 2024. The amended three senior unsecured term loans will have a total notional amount of $484.8 million. The $161.8 million unsecured term loan is scheduled to mature on January 31, 2026, extendable with two one year options to 2028, subject to certain prepayment and other terms and conditions. The $158.0 million and $165.0 million unsecured term loans are scheduled to mature on January 31, 2027. Based on PECO’s current investment grade credit ratings, the term loans are priced at SOFR plus 1.35%, representing no change in pricing from the previous term loan tranches. Through the amendments, PECO has enhanced its already strong liquidity position and extended its well-laddered debt maturity profile.
John Caulfield, Chief Financial Officer of PECO stated: "With no meaningful maturities until 2025, these term loan extensions improve our debt maturity profile while maintaining maximum financial flexibility and our low cost of capital. We appreciate the continued support of our banking partners."
Additional information regarding the amended term loans may be found in the Company’s Form 10-Q for the quarter ended June 30, 2023, which will be filed with the U.S. Securities and Exchange Commission (the “SEC”).

2023 Guidance
PECO has updated its 2023 earnings guidance, as summarized in the table below, which is based upon the Company’s current view of existing market conditions and assumptions for the year ending December 31, 2023. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under "Forward-Looking Statements" below.
(in thousands, except per share amounts)2Q YTD
Updated Full Year
2023 Guidance
Previous Full Year
2023 Guidance
Results:
Net income per share$0.26$0.51 - $0.55$0.47 - $0.52
Nareit FFO per share$1.15$2.27 - $2.32$2.23 - $2.29
Core FFO per share$1.18$2.30 - $2.36$2.28 - $2.34
Same-Center NOI growth5.1%3.75% - 4.50%3.00% - 4.00%
Portfolio Activity:
Acquisitions (net of dispositions)$72,400$200,000 - $300,000$200,000 - $300,000
Development and redevelopment spend$20,444$35,000 - $45,000$50,000 -$60,000
Other:
Interest expense, net$40,141$85,000 - $90,000$85,000 - $90,000
G&A expense$23,219$44,000 - $48,000$44,000 - $48,000
Non-cash revenue items(1)
$8,314$16,000 - $19,000$14,000 - $19,000
Adjustments for collectibility$1,313$3,000 - $4,000$3,500 - $4,500
(1)Represents straight-line rental income and net amortization of above- and below-market leases.
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The Company does not provide a reconciliation for same-center NOI estimates on a forward-looking basis because it is unable to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to our results without unreasonable effort.
The following table provides a reconciliation of the range of the Company's 2023 estimated net income to estimated Nareit FFO and Core FFO:
(Unaudited)Low EndHigh End
Net income $0.51 $0.55 
Depreciation and amortization of real estate assets1.74 1.75 
Adjustments related to unconsolidated joint ventures0.02 0.02 
Nareit FFO$2.27 $2.32 
Depreciation and amortization of corporate assets0.01 0.02 
Transactions and other0.02 0.02 
Core FFO$2.30 $2.36 

Conference Call Details
PECO plans to host a conference call and webcast on Wednesday, August 2, 2023 at 12:00 p.m. Eastern Time to discuss second quarter 2023 results and provide further business updates. Chairman and Chief Executive Officer Jeff Edison, President Devin Murphy and Chief Financial Officer John Caulfield will host the conference call and webcast. Dial-in and webcast information is below.
Second Quarter 2023 Earnings Conference Call Details:
Date: Wednesday, August 2, 2023
Time: 12:00 p.m. ET
Toll-Free Dial-In Number: (888) 210-4659
International Dial-In Number: (646) 960-0383
Conference ID: 2035308
Webcast: Second Quarter 2023 Webcast Link
An audio replay will be available approximately one hour after the conclusion of the conference call using the webcast link above.
For more information on the Company’s financial results, please refer to the Company’s Form 10-Q for the quarter ended June 30, 2023.

Connect with PECO
For additional information, please visit https://www.phillipsedison.com/
Follow PECO on:
Twitter at https://twitter.com/PhillipsEdison
Facebook at https://www.facebook.com/phillipsedison.co
Instagram at https://www.instagram.com/phillips.edison/; and
Find PECO on LinkedIn at https://www.linkedin.com/company/phillipsedison&company

About Phillips Edison & Company
Phillips Edison & Company, Inc. (“PECO”) is one of the nation’s largest owners and operators of omni-channel grocery-anchored shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO’s centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO’s top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of June 30, 2023, PECO managed 294 shopping centers, including 274 wholly-owned centers comprising 31.4 million square feet across 31 states and 20 shopping centers owned in one institutional joint
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venture. PECO is exclusively focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.

PECO uses, and intends to continue to use, its Investors website, which can be found at https://investors.phillipsedison.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.
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PHILLIPS EDISON & COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2023 AND DECEMBER 31, 2022
(Condensed and Unaudited)
(In thousands, except per share amounts)
  June 30, 2023December 31, 2022
ASSETS    
Investment in real estate:    
Land and improvements$1,703,349 $1,674,133 
Building and improvements3,653,088 3,572,146 
In-place lease assets477,974 471,507 
Above-market lease assets72,350 71,954 
Total investment in real estate assets5,906,761 5,789,740 
Accumulated depreciation and amortization(1,429,070)(1,316,743)
Net investment in real estate assets4,477,691 4,472,997 
Investment in unconsolidated joint ventures26,064 27,201 
Total investment in real estate assets, net4,503,755 4,500,198 
Cash and cash equivalents5,564 5,478 
Restricted cash4,352 11,871 
Goodwill29,066 29,066 
Other assets, net198,274 188,879 
Total assets$4,741,011 $4,735,492 
LIABILITIES AND EQUITY    
Liabilities:    
Debt obligations, net$1,951,186 $1,896,594 
Below-market lease liabilities, net108,190 109,799 
Accounts payable and other liabilities98,187 113,185 
Deferred income21,700 18,481 
Total liabilities2,179,263 2,138,059 
Equity:    
Preferred stock, $0.01 par value per share, 10,000 shares authorized, zero shares issued and outstanding at June 30, 2023 and December 31, 2022
— — 
Common stock, $0.01 par value per share, 1,000,000 shares authorized, 117,443 and 117,126 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively
1,174 1,171 
Additional paid-in capital3,387,764 3,383,978 
Accumulated other comprehensive income21,059 21,003 
Accumulated deficit(1,204,714)(1,169,665)
Total stockholders’ equity2,205,283 2,236,487 
Noncontrolling interests356,465 360,946 
Total equity2,561,748 2,597,433 
Total liabilities and equity$4,741,011 $4,735,492 










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PHILLIPS EDISON & COMPANY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022
(Condensed and Unaudited)
(In thousands, except per share amounts)
Three Months Ended June 30,Six Months Ended June 30,
  2023202220232022
Revenues:
Rental income$148,980 $137,230 $296,708 $275,978 
Fees and management income2,546 4,781 5,024 7,242 
Other property income611 505 1,469 1,459 
Total revenues152,137 142,516 303,201 284,679 
Operating Expenses:
Property operating24,674 22,852 49,736 46,172 
Real estate taxes18,397 16,473 36,453 33,964 
General and administrative11,686 11,376 23,219 22,908 
Depreciation and amortization59,667 60,769 118,165 117,995 
Total operating expenses114,424 111,470 227,573 221,039 
Other:
Interest expense, net(20,675)(17,127)(40,141)(35,326)
Gain on disposal of property, net75 2,793 1,017 4,161 
Other expense, net(904)(1,457)(1,659)(5,822)
Net income16,209 15,255 34,845 26,653 
Net income attributable to noncontrolling interests(1,758)(1,727)(3,775)(3,046)
Net income attributable to stockholders$14,451 $13,528 $31,070 $23,607 
Earnings per share of common stock:
Net income per share attributable to stockholders - basic and diluted
$0.12 $0.12 $0.26 $0.21 


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Discussion and Reconciliation of Non-GAAP Measures
Same-Center Net Operating Income
The Company presents Same-Center NOI as a supplemental measure of its performance. The Company defines NOI as total operating revenues, adjusted to exclude non-cash revenue items, less property operating expenses and real estate taxes. For the three and six months ended June 30, 2023 and 2022, Same-Center NOI represents the NOI for the 262 properties that were wholly-owned and operational for the entire portion of all comparable reporting periods. The Company believes Same-Center NOI provides useful information to its investors about its financial and operating performance because it provides a performance measure of the revenues and expenses directly involved in owning and operating real estate assets and provides a perspective not immediately apparent from net income (loss). Because Same-Center NOI excludes the change in NOI from properties acquired or disposed of after December 31, 2021, it highlights operating trends such as occupancy levels, rental rates, and operating costs on properties that were operational for all comparable periods. Other REITs may use different methodologies for calculating Same-Center NOI, and accordingly, PECO’s Same-Center NOI may not be comparable to other REITs.
Same-Center NOI should not be viewed as an alternative measure of the Company’s financial performance as it does not reflect the operations of its entire portfolio, nor does it reflect the impact of general and administrative expenses, depreciation and amortization, interest expense, other income (expense), or the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company’s properties that could materially impact its results from operations.
Nareit Funds from Operations and Core Funds from Operations
Nareit FFO is a non-GAAP financial performance measure that is widely recognized as a measure of REIT operating performance. The National Association of Real Estate Investment Trusts (“Nareit”) defines FFO as net income (loss) computed in accordance with GAAP, excluding: (i) gains (or losses) from sales of property and gains (or losses) from change in control; (ii) depreciation and amortization related to real estate; and (iii) impairment losses on real estate and impairments of in-substance real estate investments in investees that are driven by measurable decreases in the fair value of the depreciable real estate held by the unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect Nareit FFO on the same basis. The Company calculates Nareit FFO in a manner consistent with the Nareit definition.
Core FFO is an additional financial performance measure used by the Company as Nareit FFO includes certain non-comparable items that affect its performance over time. The Company believes that Core FFO is helpful in assisting management and investors with the assessment of the sustainability of operating performance in future periods, and that it is more reflective of its core operating performance and provides an additional measure to compare PECO’s performance across reporting periods on a consistent basis by excluding items that may cause short-term fluctuations in net income (loss). To arrive at Core FFO, the Company adjusts Nareit FFO to exclude certain recurring and non-recurring items including, but not limited to: (i) depreciation and amortization of corporate assets; (ii) changes in the fair value of the earn-out liability; (iii) amortization of unconsolidated joint venture basis differences; (iv) gains or losses on the extinguishment or modification of debt and other; (v) other impairment charges; (vi) transaction and acquisition expenses; and (vii) realized performance income.
Nareit FFO and Core FFO should not be considered alternatives to net income (loss) under GAAP, as an indication of the Company’s liquidity, nor as an indication of funds available to cover its cash needs, including its ability to fund distributions. Core FFO may not be a useful measure of the impact of long-term operating performance on value if the Company does not continue to operate its business plan in the manner currently contemplated.
Accordingly, Nareit FFO and Core FFO should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. The Company’s Nareit FFO and Core FFO, as presented, may not be comparable to amounts calculated by other REITs.
Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate and Adjusted EBITDAre
Nareit defines Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (“EBITDAre”) as net income (loss) computed in accordance with GAAP before: (i) interest expense; (ii) income tax expense; (iii) depreciation and amortization; (iv) gains or losses from disposition of depreciable property; and (v) impairment write-downs of depreciable property. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect EBITDAre on the same basis.
Adjusted EBITDAre is an additional performance measure used by the Company as EBITDAre includes certain non-comparable items that affect the Company’s performance over time. To arrive at Adjusted EBITDAre, the Company excludes certain recurring and non-recurring items from EBITDAre, including, but not limited to: (i)
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changes in the fair value of the earn-out liability; (ii) other impairment charges; (iii) amortization of basis differences in the Company’s investments in its unconsolidated joint ventures; (iv) transaction and acquisition expenses; and (v) realized performance income.
The Company uses EBITDAre and Adjusted EBITDAre as additional measures of operating performance which allow it to compare earnings independent of capital structure, determine debt service and fixed cost coverage, and measure enterprise value. Additionally, the Company believes they are a useful indicator of its ability to support its debt obligations. EBITDAre and Adjusted EBITDAre should not be considered as alternatives to net income (loss), as an indication of the Company’s liquidity, nor as an indication of funds available to cover its cash needs, including its ability to fund distributions. Accordingly, EBITDAre and Adjusted EBITDAre should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. The Company’s EBITDAre and Adjusted EBITDAre, as presented, may not be comparable to amounts calculated by other REITs.
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Same-Center Net Operating Income—The table below compares Same-Center NOI (dollars in thousands):
Three Months Ended June 30,Favorable (Unfavorable)Six Months Ended June 30,Favorable (Unfavorable)
20232022$ Change% Change20232022$ Change% Change
Revenues:
Rental income(1)
$102,927 $98,497 $4,430 $206,508 $197,183 $9,325 
Tenant recovery income33,567 30,063 3,504 67,461 63,210 4,251 
Reserves for uncollectibility(2)
(357)177 (534)(1,269)(661)(608)
Other property income568 466 102 1,368 1,366 
Total revenues136,705 129,203 7,502 5.8 %274,068 261,098 12,970 5.0 %
Operating expenses:
Property operating expenses20,396 19,186 (1,210)41,934 39,866 (2,068)
Real estate taxes17,341 16,054 (1,287)34,670 33,333 (1,337)
Total operating expenses37,737 35,240 (2,497)(7.1)%76,604 73,199 (3,405)(4.7)%
Total Same-Center NOI$98,968 $93,963 $5,005 5.3 %$197,464 $187,899 $9,565 5.1 %
(1)Excludes straight-line rental income, net amortization of above- and below-market leases, and lease buyout income.
(2)Includes billings that will not be recognized as revenue until cash is collected or the Neighbor resumes regular payments and/or the Company deems it appropriate to resume recording revenue on an accrual basis, rather than on a cash basis.
Same-Center Net Operating Income Reconciliation—Below is a reconciliation of Net Income to NOI and Same-Center NOI (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Net income
$16,209 $15,255 $34,845 $26,653 
Adjusted to exclude:
Fees and management income(2,546)(4,781)(5,024)(7,242)
Straight-line rental income(1)
(3,284)(3,319)(5,864)(5,128)
Net amortization of above- and below- market leases(1,262)(1,078)(2,490)(2,080)
Lease buyout income(74)(176)(429)(2,141)
General and administrative expenses11,686 11,376 23,219 22,908 
Depreciation and amortization59,667 60,769 118,165 117,995 
Interest expense, net20,675 17,127 40,141 35,326 
Gain on disposal of property, net(75)(2,793)(1,017)(4,161)
Other expense, net904 1,457 1,659 5,822 
Property operating expenses related to fees and management income711 1,287 1,026 2,357 
NOI for real estate investments102,611 95,124 204,231 190,309 
Less: Non-same-center NOI(2)
(3,643)(1,161)(6,767)(2,410)
Total Same-Center NOI$98,968 $93,963 $197,464 $187,899 
(1)Includes straight-line rent adjustments for Neighbors for whom revenue is being recorded on a cash basis.
(2)Includes operating revenues and expenses from non-same-center properties which includes properties acquired or sold and corporate activities.


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Nareit FFO and Core FFO—The following table presents the Company’s calculation of Nareit FFO and Core FFO and provides additional information related to its operations (in thousands, except per share amounts):
  Three Months Ended June 30,Six Months Ended June 30,
  2023202220232022
Calculation of Nareit FFO Attributable to Stockholders and OP Unit Holders
Net income
$16,209 $15,255 $34,845 $26,653 
Adjustments:
Depreciation and amortization of real estate assets59,115 59,849 117,068 116,169 
Gain on disposal of property, net(75)(2,793)(1,017)(4,161)
Adjustments related to unconsolidated joint ventures645 (1,186)1,343 (481)
Nareit FFO attributable to stockholders and OP unit holders$75,894 $71,125 $152,239 $138,180 
Calculation of Core FFO Attributable to Stockholders and OP Unit Holders
Nareit FFO attributable to stockholders and OP unit holders$75,894 $71,125 $152,239 $138,180 
Adjustments:
Depreciation and amortization of corporate assets552 920 1,097 1,826 
Change in fair value of earn-out liability— — — 1,809 
Transaction and acquisition expenses1,261 2,035 2,599 4,080 
(Gain) loss on extinguishment or modification of debt and other, net(9)129 (9)1,029 
Amortization of unconsolidated joint venture basis differences175 219 
Realized performance income(1)
— (2,546)(75)(2,742)
Core FFO attributable to stockholders and OP unit holders$77,705 $71,838 $155,859 $144,401 
Nareit FFO/Core FFO Attributable to Stockholders and OP Unit Holders per Diluted Share
Weighted-average shares of common stock outstanding - diluted131,887 129,117 132,004 128,857 
Nareit FFO attributable to stockholders and OP unit holders per share - diluted$0.58 $0.55 $1.15 $1.07 
Core FFO attributable to stockholders and OP unit holders per share - diluted$0.59 $0.56 $1.18 $1.12 
(1)Realized performance income includes fees received related to the achievement of certain performance targets in the Company’s NRP joint venture.
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EBITDAre and Adjusted EBITDAre—The following table presents the Company’s calculation of EBITDAre and Adjusted EBITDAre (in thousands):
Three Months Ended
 June 30,
Six Months Ended
 June 30,
Year Ended December 31,
20232022202320222022
Calculation of EBITDAre
Net income
$16,209 $15,255 $34,845 $26,653 $54,529 
Adjustments:
Depreciation and amortization59,667 60,769 118,165 117,995 236,224 
Interest expense, net20,675 17,127 40,141 35,326 71,196 
Gain on disposal of property, net(75)(2,793)(1,017)(4,161)(7,517)
Impairment of real estate assets— — — — 322 
Federal, state, and local tax expense119 97 237 194 806 
Adjustments related to unconsolidated joint ventures918 (885)1,884 134 1,987 
EBITDAre
$97,513 $89,570 $194,255 $176,141 $357,547 
Calculation of Adjusted EBITDAre
EBITDAre
$97,513 $89,570 $194,255 $176,141 $357,547 
Adjustments:
Change in fair value of earn-out liability— — — 1,809 1,809 
Transaction and acquisition expenses1,261 2,035 2,599 4,080 10,551 
Amortization of unconsolidated joint venture basis differences175 219 220 
Realized performance income(1)
— (2,546)(75)(2,742)(2,742)
Adjusted EBITDAre
$98,781 $89,234 $196,787 $179,507 $367,385 
(1)Realized performance income includes fees received related to the achievement of certain performance targets in the Company’s NRP joint venture.
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Financial Leverage Ratios—The Company believes its net debt to Adjusted EBITDAre, net debt to total enterprise value, and debt covenant compliance as of June 30, 2023 allow it access to future borrowings as needed in the near term. The following table presents the Company’s calculation of net debt and total enterprise value, inclusive of its prorated portion of net debt and cash and cash equivalents owned through its unconsolidated joint ventures, as of June 30, 2023 and December 31, 2022 (in thousands):
June 30, 2023December 31, 2022
Net debt:
Total debt, excluding discounts, market adjustments, and deferred financing expenses$1,990,378 $1,937,142 
Less: Cash and cash equivalents5,863 5,740 
Total net debt$1,984,515 $1,931,402 
Enterprise value:
Net debt$1,984,515 $1,931,402 
Total equity market capitalization(1)(2)
4,484,144 4,178,204 
Total enterprise value$6,468,659 $6,109,606 
(1)Total equity market capitalization is calculated as diluted shares multiplied by the closing market price per share, which includes 131.6 million and 131.2 million diluted shares as of June 30, 2023 and December 31, 2022, respectively, and the closing market price per share of $34.08 and $31.84 as of June 30, 2023 and December 31, 2022, respectively.
(2)Fully diluted shares include common stock and OP units.
The following table presents the Company’s calculation of net debt to Adjusted EBITDAre and net debt to total enterprise value as of June 30, 2023 and December 31, 2022 (dollars in thousands):
June 30, 2023December 31, 2022
Net debt to Adjusted EBITDAre - annualized:
Net debt$1,984,515$1,931,402
Adjusted EBITDAre - annualized(1)
384,665367,385
Net debt to Adjusted EBITDAre - annualized
5.2x5.3x
Net debt to total enterprise value:
Net debt$1,984,515$1,931,402
Total enterprise value6,468,6596,109,606
Net debt to total enterprise value30.7%31.6%
(1)Adjusted EBITDAre is based on a trailing twelve month period.


Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Phillips Edison & Company, Inc. (the “Company”) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Such forward-looking statements can generally be identified by the Company’s use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” “seek,” “objective,” “goal,” “strategy,” “plan,” “focus,” “priority,” “should,” “could,” “potential,” “possible,” “look forward,” “optimistic,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this earnings release. Such statements include, but are not limited to: (a) statements about the Company’s plans, strategies, initiatives, and prospects; (b) statements about the Company’s underwritten incremental yields; and (c) statements about the Company’s future results of operations, capital expenditures, and liquidity. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation: (i) changes in national, regional, or local economic climates; (ii) local market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in the Company’s portfolio; (iii) vacancies, changes in market rental rates, and the need to periodically repair, renovate, and re-let space; (iv) competition from other available shopping centers and the attractiveness of properties in the
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Company’s portfolio to its tenants; (v) the financial stability of the Company’s tenants, including, without limitation, their ability to pay rent; (vi) the Company’s ability to pay down, refinance, restructure, or extend its indebtedness as it becomes due; (vii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors; (viii) potential liability for environmental matters; (ix) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (x) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax, and other considerations; (xi) changes in tax, real estate, environmental, and zoning laws; (xii) information technology security breaches; (xiii) the Company’s corporate responsibility initiatives; (xiv) loss of key executives; (xv) the concentration of the Company’s portfolio in a limited number of industries, geographies, or investments; (xvi) the economic, political, and social impact of, and uncertainty relating to, pandemics or other health crises; (xvii) the Company’s ability to re-lease its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant; (xviii) the loss or bankruptcy of the Company’s tenants; (xix) to the extent the Company is seeking to dispose of properties, the Company’s ability to do so at attractive prices or at all; and (xx) the impact of inflation on the Company and on its tenants. Additional important factors that could cause actual results to differ are described in the filings made from time to time by the Company with the SEC and include the risk factors and other risks and uncertainties described in the Company’s 2022 Annual Report on Form 10-K, filed with the SEC on February 21, 2023, as updated from time to time in the Company’s periodic and/or current reports filed with the SEC, which are accessible on the SEC’s website at www.sec.gov. Therefore, such statements are not intended to be a guarantee of the Company’s performance in future periods.
Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Investors:

Kimberly Green, Head of Investor Relations
(513) 692-3399
kgreen@phillipsedison.com

Curt Siegmeyer, Director of Investor Relations
(513) 338-2751
csiegmeyer@phillipsedison.com


###
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Document


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Table of Contents
Earnings Release
EBITDAre Metrics
Joint Venture Summary and Financials
Summary of Outstanding Debt
Covenant Disclosures
INVESTOR INFORMATION


Phillips Edison & Company
2



Introductory Notes
SUPPLEMENTAL INFORMATION
Phillips Edison & Company, Inc. (“we,” the “Company,” “our,” “us,” or "PECO") is one of the nation’s largest owners and operators of omni-channel grocery-anchored neighborhood shopping centers. The enclosed information should be read in conjunction with our filings with the U.S. Securities and Exchange Commission (“SEC”), including, but not limited to, our Form 10-Qs filed quarterly and Form 10-Ks filed annually. Additionally, the enclosed information does not purport to disclose all items required under Generally Accepted Accounting Principles (“GAAP”).

CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS
This supplemental disclosure contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Such forward-looking statements can generally be identified by the Company’s use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” “seek,” “objective,” “goal,” “strategy,” “plan,” “focus,” “priority,” “should,” “could,” “potential,” “possible,” “look forward,” “optimistic,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this supplemental disclosure. Such statements include, in particular, statements about the Company’s plans, strategies, and prospects, are based on the current beliefs and expectations of the Company’s management, and are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated. These risks include, without limitation: (i) changes in national, regional, or local economic climates; (ii) local market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in the Company’s portfolio; (iii) vacancies, changes in market rental rates, and the need to periodically repair, renovate, and re-let space; (iv) competition from other available properties and the attractiveness of properties in the Company’s portfolio to its tenants; (v) the financial stability of tenants, including, without limitation, the ability of tenants to pay rent; (vi) the Company’s ability to pay down, refinance, restructure, or extend its indebtedness as it becomes due; (vii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors; (viii) potential liability for environmental matters; (ix) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (x) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax, and other considerations; (xi) changes in tax, real estate, environmental, and zoning laws; (xii) information technology security breaches; (xiii) the Company’s corporate responsibility initiatives; (xiv) the loss of key executives; (xv) the concentration of the Company’s portfolio in a limited number of industries, geographies, or investments; (xvi) the economic, political, and social impact of, and uncertainty relating to, pandemics or other health crises; (xvii) the Company's ability to re-lease its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant; (xviii) the loss or bankruptcy of the Company’s tenants; (xix) to the extent the Company is seeking to dispose of properties, its ability to do so at attractive prices or at all; (xx) the impact of inflation on the Company and its tenants; and (xxi) any of the other risks included in the Company’s SEC filings. Therefore, such statements are not intended to be a guarantee of the Company’s performance in future periods.

Additional important factors that could cause actual results to differ are described in the filings made from time to time by the Company with the SEC and include the risk factors and other risks and uncertainties described in the Company’s 2022 Annual Report on Form 10-K, filed with the SEC on February 21, 2023, which is accessible on the SEC’s website at www.sec.gov. Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statements contained in this supplement to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting such forward-looking statements.

NOTICE REGARDING NON-GAAP FINANCIAL MEASURES
In addition to GAAP measures, this supplemental disclosure contains and refers to certain non-GAAP measures. We do not consider our non-GAAP measures included in our Glossary of Terms to be alternatives to measures required in accordance with GAAP. Certain non-GAAP measures should not be viewed as an alternative measure of our financial performance as they may not reflect the operations of our entire portfolio, and they may not reflect the impact of general and administrative expenses, depreciation and amortization, interest expense, other income (expense), or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties that could materially impact our results from operations. Additionally, certain non-GAAP measures should not be considered as an indication of our liquidity, nor as an indication of funds available to cover our cash needs, including our ability to fund distributions, and may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate our business in the manner currently contemplated. Accordingly, non-GAAP measures should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. Other REITs may use different methodologies for calculating similar non-GAAP measures, and accordingly, our non-GAAP measures may not be comparable to other REITs. Reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures are included in this supplemental disclosure on pages 15-20 and definitions of our non-GAAP measures are included in our Glossary of Terms on page 61.




Phillips Edison & Company
3



Introductory Notes
PRO RATA FINANCIAL INFORMATION
We may present our consolidated financial information inclusive of our prorated portion owned through unconsolidated joint ventures. The presentation of pro rata financial information has limitations as an analytical tool, which include but are not limited to: (i) amounts shown on individual line items were calculated by applying our overall economic ownership interest percentage determined when applying the equity method of accounting, and may not represent our legal claim to the assets and liabilities, or the revenues and expenses; and (ii) other REITs may use different methodologies for calculating their pro-rata interest. Accordingly, pro-rata financial information should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP.



Phillips Edison & Company
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FINANCIAL RESULTS
Quarter Ended June 30, 2023




Earnings Release
Unaudited
Phillips Edison & Company Reports
Second Quarter 2023 Results and
Raises Full Year Earnings Guidance

CINCINNATI - August 1, 2023 - Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO” or the “Company”), one of the nation’s largest owners and operators of grocery-anchored omni-channel neighborhood shopping centers, today reported financial and operating results for the period ended June 30, 2023 and provided updated 2023 earnings guidance. For the three and six months ended June 30, 2023, net income attributable to stockholders was $14.5 million, or $0.12 per diluted share, and $31.1 million, or $0.26, per diluted share, respectively.

Highlights for the Second Quarter Ended June 30, 2023
Reported Nareit FFO of $75.9 million, or $0.58 per diluted share
Reported Core FFO of $77.7 million, or $0.59 per diluted share
Raised 2023 Nareit FFO and Core FFO guidance to a range of $2.27 to $2.32 per diluted share and $2.30 to $2.36 per diluted share, respectively
Increased same-center NOI year-over-year by 5.3%
Raised 2023 same-center NOI guidance to a range of 3.75% to 4.50%
Increased leased portfolio occupancy by 100 basis points year-over-year to a record-high 97.8%
Executed comparable renewal leases during the quarter at a record-high rent spread of 17.7%
Executed comparable new leases during the quarter at a rent spread of 25.1%
Closed on amendments to extend the maturities on its 2024 term loans

Management Commentary
Jeff Edison, Chairman and Chief Executive Officer of PECO stated: “The PECO team delivered another solid quarter of growth with same-center NOI increasing by 5.3%, and our portfolio reached new record highs in occupancy and renewal rent spreads. The continued strength of our operating performance is attributed to our differentiated and focused strategy of exclusively owning grocery-anchored neighborhood shopping centers and our ability to drive results at the property level through our integrated and cycle-tested operating platform, as evidenced by our Neighbor retention rate of 94% during the second quarter. We continue to see strong retailer demand, which we are converting into higher rents, with no current signs of slowing.”

Financial Results for the Second Quarter and Six Months Ended June 30, 2023
Net Income
Second quarter 2023 net income attributable to stockholders totaled $14.5 million, or $0.12 per diluted share, compared to net income of $13.5 million, or $0.12 per diluted share, during the second quarter of 2022.
For the six months ended June 30, 2023, net income attributable to stockholders totaled $31.1 million, or $0.26 per diluted share, compared to net income of $23.6 million, or $0.21 per diluted share, for the same period in 2022.

Nareit FFO
Second quarter 2023 funds from operations attributable to stockholders and operating partnership (“OP”) unit holders as defined by Nareit (“Nareit FFO”) increased 6.7% to $75.9 million, or $0.58 per diluted share, compared to $71.1 million, or $0.55 per diluted share, during the second quarter of 2022.
For the six months ended June 30, 2023, Nareit FFO increased 10.2% to $152.2 million, or $1.15 per diluted share, compared to $138.2 million, or $1.07 per diluted share, during the same period a year ago.



Phillips Edison & Company
6


Earnings Release
Unaudited

Core FFO
Second quarter 2023 core funds from operations attributable to stockholders and OP unit holders (“Core FFO”) increased 8.2% to $77.7 million, or $0.59 per diluted share, compared to $71.8 million, or $0.56 per diluted share, during the second quarter of 2022.
For the six months ended June 30, 2023, Core FFO increased 7.9% to $155.9 million, or $1.18 per diluted share, compared to $144.4 million, or $1.12 per diluted share, for the same period in 2022.

Same-Center NOI
Second quarter 2023 same-center net operating income (“NOI”) increased 5.3% to $99.0 million, compared to $94.0 million during the second quarter of 2022.
For the six months ended June 30, 2023, same-center NOI increased 5.1% to $197.5 million, compared to $187.9 million during the same period a year ago.

Portfolio Overview for the Second Quarter and Six Months Ended June 30, 2023
Portfolio Statistics
As of June 30, 2023, PECO’s wholly-owned portfolio consisted of 274 properties, totaling approximately 31.4 million square feet, located in 31 states. This compared to 269 properties, totaling approximately 30.9 million square feet located in 31 states as of June 30, 2022.
Leased portfolio occupancy increased to 97.8% at June 30, 2023, compared to 96.8% at June 30, 2022.
Anchor occupancy increased to 99.4% at June 30, 2023, compared to 98.7% at June 30, 2022, and inline occupancy increased to 94.8% at June 30, 2023, compared to 93.2% at June 30, 2022.

Leasing Activity
During the second quarter of 2023, 285 leases (new, renewal and options) were executed totaling 1.6 million square feet. This compared to 265 leases executed totaling 1.6 million square feet during the second quarter of 2022.
During the six months ended June 30, 2023, 548 leases (new, renewal and options) were executed totaling 2.6 million square feet. This compared to 509 leases executed totaling 2.4 million square feet during the same period in 2022.
Comparable rent spreads during the second quarter of 2023, which compare the percentage increase (or decrease) of new or renewal leases to the expiring lease of a unit that was occupied within the past twelve months, were 25.1% for new leases, 17.7% for renewal leases (excluding options) and 18.9% combined (new and renewal leases only, excluding options).
Comparable rent spreads during the six months ended June 30, 2023 were 26.1% for new leases, 17.0% for renewal leases (excluding options) and 18.5% combined (new and renewal leases only, excluding options).

Transaction Activity
During the second quarter of 2023, one property and two outparcels were sold for $6.3 million. No properties were acquired during the quarter.
During the six months ended June 30, 2023, the Company acquired four properties for $78.7 million.

Balance Sheet Highlights
As of June 30, 2023, PECO had $629.1 million of total liquidity, comprised of $9.9 million of cash, cash equivalents and restricted cash, plus $619.2 million of borrowing capacity available on its $800 million revolving credit facility.
As of June 30, 2023, PECO’s net debt to annualized adjusted EBITDAre was 5.2x. This compared to 5.3x at December 31, 2022.

Phillips Edison & Company
7


Earnings Release
Unaudited
Following the July 31, 2023 term loan amendments, PECO’s outstanding debt had a weighted-average interest rate of 3.9% and a weighted-average maturity of 4.6 years when including all extension options, and 81.3% of total debt was fixed-rate debt.

Extension of Term Loans
On July 31, 2023, PECO amended three senior unsecured term loans with a total notional amount of $475.0 million scheduled to mature during 2024. The amended three senior unsecured term loans will have a total notional amount of $484.8 million. The $161.8 million unsecured term loan is scheduled to mature on January 31, 2026, extendable with two one year options to 2028, subject to certain prepayment and other terms and conditions. The $158.0 million and $165.0 million unsecured term loans are scheduled to mature on January 31, 2027. Based on PECO’s current investment grade credit ratings, the term loans are priced at SOFR plus 1.35%, representing no change in pricing from the previous term loan tranches. Through the amendments, PECO has enhanced its already strong liquidity position and extended its well-laddered debt maturity profile.
John Caulfield, Chief Financial Officer of PECO stated: "With no meaningful maturities until 2025, these term loan extensions improve our debt maturity profile while maintaining maximum financial flexibility and our low cost of capital. We appreciate the continued support of our banking partners."
Additional information regarding the amended term loans may be found in the Company’s Form 10-Q for the quarter ended June 30, 2023, which will be filed with the U.S. Securities and Exchange Commission (the “SEC”).

2023 Guidance
PECO has updated its 2023 earnings guidance, as summarized in the table below, which is based upon the Company’s current view of existing market conditions and assumptions for the year ending December 31, 2023. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under "Forward-Looking Statements" below.
(in thousands, except per share amounts)2Q YTD
Updated Full Year
2023 Guidance
Previous Full Year
2023 Guidance
Results:
Net income per share$0.26$0.51 - $0.55$0.47 - $0.52
Nareit FFO per share$1.15$2.27 - $2.32$2.23 - $2.29
Core FFO per share$1.18$2.30 - $2.36$2.28 - $2.34
Same-Center NOI growth5.1%3.75% - 4.50%3.00% - 4.00%
Portfolio Activity:
Acquisitions (net of dispositions)$72,400$200,000 - $300,000$200,000 - $300,000
Development and redevelopment spend$20,444$35,000 - $45,000$50,000 -$60,000
Other:
Interest expense, net$40,141$85,000 - $90,000$85,000 - $90,000
G&A expense$23,219$44,000 - $48,000$44,000 - $48,000
Non-cash revenue items(1)
$8,314$16,000 - $19,000$14,000 - $19,000
Adjustments for collectibility$1,313$3,000 - $4,000$3,500 - $4,500
(1)Represents straight-line rental income and net amortization of above- and below-market leases.

Phillips Edison & Company
8


Earnings Release
Unaudited
The Company does not provide a reconciliation for same-center NOI estimates on a forward-looking basis because it is unable to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to our results without unreasonable effort.
The following table provides a reconciliation of the range of the Company's 2023 estimated net income to estimated Nareit FFO and Core FFO:
(Unaudited)Low EndHigh End
Net income $0.51 $0.55 
Depreciation and amortization of real estate assets1.74 1.75 
Adjustments related to unconsolidated joint ventures0.02 0.02 
Nareit FFO$2.27 $2.32 
Depreciation and amortization of corporate assets0.01 0.02 
Transactions and other0.02 0.02 
Core FFO$2.30 $2.36 

Conference Call Details
PECO plans to host a conference call and webcast on Wednesday, August 2, 2023 at 12:00 p.m. Eastern Time to discuss second quarter 2023 results and provide further business updates. Chairman and Chief Executive Officer Jeff Edison, President Devin Murphy and Chief Financial Officer John Caulfield will host the conference call and webcast. Dial-in and webcast information is below.
Second Quarter 2023 Earnings Conference Call Details:
Date: Wednesday, August 2, 2023
Time: 12:00 p.m. ET
Toll-Free Dial-In Number: (888) 210-4659
International Dial-In Number: (646) 960-0383
Conference ID: 2035308
Webcast: Second Quarter 2023 Webcast Link
An audio replay will be available approximately one hour after the conclusion of the conference call using the webcast link above.
For more information on the Company’s financial results, please refer to the Company’s Form 10-Q for the quarter ended June 30, 2023.

Connect with PECO
For additional information, please visit https://www.phillipsedison.com/
Follow PECO on:
Twitter at https://twitter.com/PhillipsEdison
Facebook at https://www.facebook.com/phillipsedison.co
Instagram at https://www.instagram.com/phillips.edison/; and
Find PECO on LinkedIn at https://www.linkedin.com/company/phillipsedison&company

About Phillips Edison & Company
Phillips Edison & Company, Inc. (“PECO”) is one of the nation’s largest owners and operators of omni-channel grocery-anchored shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO’s centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO’s top grocery anchors include Kroger, Publix, Albertsons and Ahold

Phillips Edison & Company
9


Earnings Release
Unaudited
Delhaize. As of June 30, 2023, PECO managed 294 shopping centers, including 274 wholly-owned centers comprising 31.4 million square feet across 31 states and 20 shopping centers owned in one institutional joint venture. PECO is exclusively focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.

PECO uses, and intends to continue to use, its Investors website, which can be found at https://investors.phillipsedison.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.
















Phillips Edison & Company
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Overview of Results
Unaudited, in thousands (excluding per share and per square foot amounts)
Three Months Ended
 June 30,
Six Months Ended
 June 30,
2023202220232022
SUMMARY FINANCIAL RESULTS
Total revenues (page 14)
$152,137 $142,516 $303,201 $284,679 
Net income attributable to stockholders (page 14)
14,451 13,528 31,070 23,607 
Net income per share - basic and diluted (page 14)
$0.12 $0.12 $0.26 $0.21 
Same-Center NOI (page 20)
98,968 93,963 197,464 187,899 
Adjusted EBITDAre (page 18)
98,781 89,234 196,787 179,507 
Nareit FFO (page 16)
75,894 71,125 152,239 138,180 
Nareit FFO per share - diluted (page 16)
$0.58 $0.55 $1.15 $1.07 
Core FFO (page 16)
77,705 71,838 155,859 144,401 
Core FFO per share - diluted (page 16)
$0.59 $0.56 $1.18 $1.12 
 
SUMMARY OF FINANCIAL AND OPERATING RATIOS
Same-Center NOI margin (page 20)
72.4 %72.7 %72.0 %72.0 %
Same-Center NOI change (page 20)(1)
5.3 %4.3 %5.1 %5.5 %
LEASING RESULTS
Comparable rent spreads - new leases (page 40)(2)
25.1 %39.0 %26.1 %36.6 %
Comparable rent spreads - renewals (page 40)(2)
17.7 %14.4 %17.0 %14.6 %
Portfolio retention rate93.8 %92.1 %94.4 %90.6 %
As of June 30,
20232022
OUTSTANDING STOCK AND PARTNERSHIP UNITS
Common stock outstanding117,443115,782
Operating Partnership (OP) units outstanding14,13414,560
SUMMARY PORTFOLIO STATISTICS(2)
Number of properties274 269 
GLA (page 42)
31,378 30,935 
Leased occupancy (page 36)
97.8 %96.8 %
Economic occupancy (page 36)
97.2 %96.2 %
Leased ABR PSF (page 36)
$14.64 $14.06 
Leased Anchor ABR PSF (page 36)
$9.97 $9.83 
Leased Inline ABR PSF (page 36)
$23.95 $22.66 
(1)Reflects Same-Center NOI change as initially reported for the specified period.
(2)Statistics represent our wholly-owned properties.


Phillips Edison & Company
11











https://cdn.kscope.io/13b79b7eb85deecb2e4a6219d65f212a-image8a.jpg
FINANCIAL SUMMARY
Quarter Ended June 30, 2023
























Consolidated Balance Sheets
Condensed and Unaudited, in thousands (excluding per share amounts)
June 30, 2023December 31, 2022
ASSETS  
Investment in real estate:    
Land and improvements$1,703,349 $1,674,133 
Building and improvements3,653,088 3,572,146 
In-place lease assets477,974 471,507 
Above-market lease assets72,350 71,954 
Total investment in real estate assets5,906,761 5,789,740 
Accumulated depreciation and amortization(1,429,070)(1,316,743)
Net investment in real estate assets4,477,691 4,472,997 
Investment in unconsolidated joint ventures26,064 27,201 
Total investment in real estate assets, net4,503,755 4,500,198 
Cash and cash equivalents5,564 5,478 
Restricted cash4,352 11,871 
Goodwill29,066 29,066 
Other assets, net198,274 188,879 
Total assets$4,741,011 $4,735,492 
LIABILITIES AND EQUITY    
Liabilities:    
Debt obligations, net$1,951,186 $1,896,594 
Below-market lease liabilities, net108,190 109,799 
Accounts payable and other liabilities98,187 113,185 
Deferred income21,700 18,481 
Total liabilities2,179,263 2,138,059 
Equity:    
Preferred stock, $0.01 par value per share, 10,000 shares authorized as of June 30, 2023 and December 31, 2022
— — 
Common stock, $0.01 par value per share, 1,000,000 shares authorized,
117,443 and 117,126 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively
1,174 1,171 
Additional paid-in capital3,387,764 3,383,978 
Accumulated other comprehensive income21,059 21,003 
Accumulated deficit(1,204,714)(1,169,665)
Total stockholders’ equity2,205,283 2,236,487 
Noncontrolling interests356,465 360,946 
Total equity2,561,748 2,597,433 
Total liabilities and equity$4,741,011 $4,735,492 

Phillips Edison & Company
13




Consolidated Statements of Operations
Condensed and Unaudited, in thousands (excluding per share amounts)
  Three Months Ended June 30,Six Months Ended June 30,
  2023202220232022
REVENUES        
Rental income$148,980 $137,230 $296,708 $275,978 
Fees and management income2,546 4,781 5,024 7,242 
Other property income611 505 1,469 1,459 
Total revenues152,137 142,516 303,201 284,679 
OPERATING EXPENSES        
Property operating24,674 22,852 49,736 46,172 
Real estate taxes18,397 16,473 36,453 33,964 
General and administrative11,686 11,376 23,219 22,908 
Depreciation and amortization59,667 60,769 118,165 117,995 
Total operating expenses114,424 111,470 227,573 221,039 
OTHER        
Interest expense, net(20,675)(17,127)(40,141)(35,326)
Gain on disposal of property, net75 2,793 1,017 4,161 
Other expense, net
(904)(1,457)(1,659)(5,822)
Net income
16,209 15,255 34,845 26,653 
Net income attributable to noncontrolling interests
(1,758)(1,727)(3,775)(3,046)
Net income attributable to stockholders
$14,451 $13,528 $31,070 $23,607 
EARNINGS PER SHARE OF COMMON STOCK        
Net income per share attributable to stockholders - basic and diluted
$0.12 $0.12 $0.26 $0.21 

Phillips Edison & Company
14




Consolidated Statements of Operations
Condensed and Unaudited, in thousands (excluding per share amounts)
  Three Months Ended
   June 30,
2023
 March 31,
2023
December 31, 2022 September 30,
2022
 June 30,
2022
REVENUES
Rental income$148,980 $147,728 $141,703 $142,857 $137,230 
Fees and management income2,546 2,478 2,218 2,081 4,781 
Other property income611 858 1,118 716 505 
Total revenues152,137 151,064 145,039 145,654 142,516 
OPERATING EXPENSES
Property operating24,674 25,062 26,098 23,089 22,852 
Real estate taxes18,397 18,056 15,859 18,041 16,473 
General and administrative11,686 11,533 11,484 10,843 11,376 
Depreciation and amortization59,667 58,498 58,216 60,013 60,769 
Impairment of real estate assets— — 322 — — 
Total operating expenses114,424 113,149 111,979 111,986 111,470 
OTHER  
Interest expense, net(20,675)(19,466)(18,301)(17,569)(17,127)
Gain (loss) on disposal of property, net75 942 3,366 (10)2,793 
Other expense, net(904)(755)(2,422)(3,916)(1,457)
Net income16,209 18,636 15,703 12,173 15,255 
Net income attributable to noncontrolling interests(1,758)(2,017)(2,025)(1,135)(1,727)
Net income attributable to stockholders$14,451 $16,619 $13,678 $11,038 $13,528 
EARNINGS PER SHARE OF COMMON STOCK  
Net income per share attributable to stockholders - basic and diluted$0.12 $0.14 $0.12 $0.09 $0.12 













































Phillips Edison & Company
15



Nareit FFO, Core FFO, and Adjusted FFO
Unaudited, in thousands (excluding per share amounts)
  Three Months Ended
 June 30,
Six Months Ended
 June 30,
  2023202220232022
CALCULATION OF NAREIT FFO ATTRIBUTABLE TO STOCKHOLDERS AND OP UNIT HOLDERS
Net income
$16,209 $15,255 $34,845 $26,653 
Adjustments:
Depreciation and amortization of real estate assets59,115 59,849 117,068 116,169 
Gain on disposal of property, net(75)(2,793)(1,017)(4,161)
Adjustments related to unconsolidated joint ventures645 (1,186)1,343 (481)
Nareit FFO attributable to stockholders and OP unit holders$75,894 $71,125 $152,239 $138,180 
CALCULATION OF CORE FFO ATTRIBUTABLE TO STOCKHOLDERS AND OP UNIT HOLDERS
Nareit FFO attributable to stockholders and OP unit holders$75,894 $71,125 $152,239 $138,180 
Adjustments:        
Depreciation and amortization of corporate assets552 920 1,097 1,826 
Change in fair value of earn-out liability— — — 1,809 
Transaction and acquisition expenses1,261 2,035 2,599 4,080 
(Gain) loss on extinguishment or modification of debt and other,
   net
(9)129 (9)1,029 
Amortization of unconsolidated joint venture basis differences175 219 
Realized performance income(1)
— (2,546)(75)(2,742)
Core FFO attributable to stockholders and OP unit holders$77,705 $71,838 $155,859 $144,401 
CALCULATION OF ADJUSTED FFO ATTRIBUTABLE TO STOCKHOLDERS AND OP UNIT HOLDERS
Core FFO attributable to stockholders and OP unit holders$77,705 $71,838 $155,859 $144,401 
Adjustments:
Net amortization of above-market contracts(125)— (250)— 
Straight-line rent and above- and below-market leases(4,520)(4,406)(8,314)(7,226)
Non-cash debt adjustments1,632 1,443 3,195 2,831 
Capital expenditures and leasing commissions(2)
(15,533)(11,898)(28,674)(25,674)
Non-cash share-based compensation expense2,700 2,005 4,705 4,238 
Adjustments related to unconsolidated joint ventures(256)(139)(394)(231)
Adjusted FFO attributable to stockholders and OP unit holders$61,603 $58,843 $126,127 $118,339 
NAREIT FFO/CORE FFO ATTRIBUTABLE TO STOCKHOLDERS AND OP UNIT HOLDERS PER DILUTED SHARE
Weighted-average shares of common stock outstanding - diluted131,887 129,117 132,004 128,857 
Nareit FFO attributable to stockholders and OP unit holders per share - diluted$0.58 $0.55 $1.15 $1.07 
Core FFO attributable to stockholders and OP unit holders per share - diluted$0.59 $0.56 $1.18 $1.12 
(1)Realized performance income includes fees received related to the achievement of certain performance targets in our NRP joint venture.
(2)Excludes development and redevelopment projects.
Phillips Edison & Company
16



Nareit FFO, Core FFO, and Adjusted FFO
Unaudited, in thousands (excluding per share amounts)
Three Months Ended
   June 30,
2023
 March 31,
2023
 December 31,
 2022
 September 30,
2022
 June 30,
 2022
CALCULATION OF NAREIT FFO ATTRIBUTABLE TO STOCKHOLDERS AND OP UNIT HOLDERS
Net income$16,209 $18,636 $15,703 $12,173 $15,255 
Adjustments:
Depreciation and amortization of real estate assets59,115 57,953 57,266 59,136 59,849 
Impairment of real estate assets— — 322 — — 
(Gain) loss on disposal of property, net(75)(942)(3,366)10 (2,793)
Adjustments related to unconsolidated joint ventures645 698 661 662 (1,186)
Nareit FFO attributable to stockholders and OP unit holders$75,894 $76,345 $70,586 $71,981 $71,125 
CALCULATION OF CORE FFO ATTRIBUTABLE TO STOCKHOLDERS AND OP UNIT HOLDERS
Nareit FFO attributable to stockholders and OP unit holders$75,894 $76,345 $70,586 $71,981 $71,125 
Adjustments:
Depreciation and amortization of corporate assets552 545 950 877 920 
Transaction and acquisition expenses1,261 1,338 2,731 3,740 2,035 
(Gain) loss on extinguishment or modification of debt and other, net(9)— — (4)129 
Amortization of unconsolidated joint venture basis differences— 175 
Realized performance income(1)
— (75)— — (2,546)
Core FFO attributable to stockholders and OP unit holders$77,705 $78,154 $74,267 $76,595 $71,838 
CALCULATION OF ADJUSTED FFO ATTRIBUTABLE TO STOCKHOLDERS AND OP UNIT HOLDERS
Core FFO attributable to stockholders and OP unit holders$77,705 $78,154 $74,267 $76,595 $71,838 
Adjustments:
Net amortization of above-market contracts(125)(125)— — — 
Straight-line rent and above- and below-market leases(4,520)(3,794)(4,377)(5,022)(4,406)
Non-cash debt adjustments1,632 1,563 1,529 1,524 1,443 
Capital expenditures and leasing commissions(2)
(15,533)(13,141)(13,512)(17,296)(11,898)
Non-cash share-based compensation expense2,700 2,005 2,488 2,502 2,005 
Adjustments related to unconsolidated joint ventures(256)(138)(146)(236)(139)
Adjusted FFO attributable to stockholders and OP unit holders$61,603 $64,524 $60,249 $58,067 $58,843 
NAREIT FFO/CORE FFO ATTRIBUTABLE TO STOCKHOLDERS AND OP UNIT HOLDERS PER DILUTED SHARE
Weighted-average shares of common stock outstanding - diluted131,887 131,943 131,781 131,593 129,117 
Nareit FFO attributable to stockholders and OP unit holders per share - diluted$0.58 $0.58 $0.54 $0.55 $0.55 
Core FFO attributable to stockholders and OP unit holders per share - diluted$0.59 $0.59 $0.56 $0.58 $0.56 
(1)Realized performance income includes fees received related to the achievement of certain performance targets in our NRP joint venture.
(2)Excludes development and redevelopment projects.

Phillips Edison & Company
17



EBITDAre Metrics
Unaudited, in thousands
Three Months Ended
 June 30,
Six Months Ended
 June 30,
2023202220232022
CALCULATION OF EBITDAre
Net income
$16,209 $15,255 $34,845 $26,653 
Adjustments:
Depreciation and amortization59,667 60,769 118,165 117,995 
Interest expense, net20,675 17,127 40,141 35,326 
Gain on disposal of property, net(75)(2,793)(1,017)(4,161)
Federal, state, and local tax expense119 97 237 194 
Adjustments related to unconsolidated joint ventures918 (885)1,884 134 
EBITDAre
$97,513 $89,570 $194,255 $176,141 
CALCULATION OF ADJUSTED EBITDAre
EBITDAre
$97,513 $89,570 $194,255 $176,141 
Adjustments:
Change in fair value of earn-out liability— — — 1,809 
Transaction and acquisition expenses1,261 2,035 2,599 4,080 
Amortization of unconsolidated joint venture basis differences175 219 
Realized performance income(1)
— (2,546)(75)(2,742)
Adjusted EBITDAre
$98,781 $89,234 $196,787 $179,507 
(1)Realized performance income includes fees received related to the achievement of certain performance targets in our NRP joint venture.

Phillips Edison & Company
18



EBITDAre Metrics
Unaudited, in thousands
Three Months Ended
 June 30,
2023
 March 31,
 2023
 December 31,
 2022
 September 30,
 2022
 June 30,
 2022
CALCULATION OF EBITDAre
Net income$16,209 $18,636 $15,703 $12,173 $15,255 
Adjustments:
Depreciation and amortization59,667 58,498 58,216 60,013 60,769 
Interest expense, net20,675 19,466 18,301 17,569 17,127 
(Gain) loss on disposal of property, net(75)(942)(3,366)10 (2,793)
Impairment of real estate assets— — 322 — — 
Federal, state, and local tax expense 119 118 433 179 97 
Adjustments related to unconsolidated joint ventures918 966 926 927 (885)
EBITDAre
$97,513 $96,742 $90,535 $90,871 $89,570 
CALCULATION OF ADJUSTED EBITDAre
EBITDAre
$97,513 $96,742 $90,535 $90,871 $89,570 
Adjustments:
Transaction and acquisition expenses1,261 1,338 2,731 3,740 2,035 
Amortization of unconsolidated joint venture basis differences— 175 
Realized performance income(1)
— (75)— — (2,546)
Adjusted EBITDAre
$98,781 $98,006 $93,266 $94,612 $89,234 
(1)Realized performance income includes fees received related to the achievement of certain performance targets in our NRP joint venture.
Phillips Edison & Company
19



Same-Center Net Operating Income
Unaudited, in thousands
Three Months Ended
 June 30,
Favorable (Unfavorable)
% Change
Six Months Ended
 June 30,
Favorable (Unfavorable)
% Change
2023202220232022
SAME-CENTER NOI(1)
Revenues:
Rental income(2)
$102,927$98,497$206,508$197,183
Tenant recovery income33,56730,06367,46163,210
Reserves for uncollectibility(3)
(357)177(1,269)(661)
Other property income5684661,3681,366
Total revenues136,705129,2035.8%274,068261,0985.0 %
Operating expenses:
Property operating expenses20,39619,18641,93439,866
Real estate taxes17,34116,05434,67033,333
Total operating expenses37,73735,240(7.1)%76,60473,199(4.7)%
Total Same-Center NOI$98,968$93,9635.3%$197,464$187,8995.1 %
Same-Center NOI margin72.4%72.7%72.0%72.0%
(1)Same-Center NOI represents the NOI for the 262 properties that were wholly-owned and operational for the entire portion of all comparable reporting periods.
(2)Excludes straight-line rental income, net amortization of above- and below-market leases, and lease buyout income.
(3)Includes billings that will not be recognized as revenue until cash is collected or the Neighbor resumes regular payments and/or we deem it appropriate to resume recording revenue on an accrual basis, rather than on a cash basis.
Three Months Ended
 June 30,
Six Months Ended
 June 30,
2023202220232022
RECONCILIATION OF NET INCOME TO NOI AND SAME-CENTER NOI
Net income
$16,209 $15,255 $34,845 $26,653 
Adjusted to exclude:
Fees and management income(2,546)(4,781)(5,024)(7,242)
Straight-line rental income(1)
(3,284)(3,319)(5,864)(5,128)
Net amortization of above- and below-market leases(1,262)(1,078)(2,490)(2,080)
Lease buyout income(74)(176)(429)(2,141)
General and administrative expenses11,686 11,376 23,219 22,908 
Depreciation and amortization59,667 60,769 118,165 117,995 
Interest expense, net20,675 17,127 40,141 35,326 
Gain on disposal of property, net(75)(2,793)(1,017)(4,161)
Other expense, net
904 1,457 1,659 5,822 
Property operating expenses related to fees and management income711 1,287 1,026 2,357 
NOI for real estate investments102,611 95,124 204,231 190,309 
Less: Non-same-center NOI(2)
(3,643)(1,161)(6,767)(2,410)
Total Same-Center NOI$98,968 $93,963 $197,464 $187,899 
(1)Includes straight-line rent adjustments for Neighbors for whom revenue is being recorded on a cash basis.
(2)Includes operating revenues and expenses from non-same-center properties which includes properties acquired or sold and corporate activities.
Phillips Edison & Company
20



Joint Venture Portfolio and Financial Summary
Unaudited, dollars and square feet in thousands
UNCONSOLIDATED JOINT VENTURE PORTFOLIO SUMMARY
As of June 30, 2023
Joint VentureInvestment PartnerOwnership PercentageNumber of Shopping CentersABRGLA
 Grocery Retail Partners I LLC ("GRP I")The Northwestern Mutual Life Insurance Company14%20$31,3502,213


UNCONSOLIDATED JOINT VENTURE FINANCIAL SUMMARY
As of June 30, 2023
GRP I
NRP(1)
Total assets$370,558 $628 
Gross debt174,026 — 
Pro rata share of debt24,358 — 
Six Months Ended
 June 30, 2023
GRP I
NRP(1)
Pro rata share of Nareit FFO(2)
$1,425 $(15)
Pro rata share of NOI(2)
2,046 — 
(1)During the second quarter of 2022, the final property in the NRP joint venture was sold, and the outstanding debt balance was repaid. PECO's ownership percentage of the joint venture is 20%.
(2)PECO's shares of our unconsolidated joint ventures' Nareit FFO and NOI results are all calculated based upon the respective ownership percentages presented in Unconsolidated Joint Venture Portfolio Summary table above.

Phillips Edison & Company
21



Supplemental Balance Sheets Detail
Unaudited, in thousands
June 30, 2023December 31, 2022
OTHER ASSETS, NET
Deferred leasing commissions and costs$51,652 $49,687 
Deferred financing expenses(1)
8,984 8,984 
Office equipment, capital lease assets, and other23,385 23,051 
Corporate intangible assets6,685 6,692 
Total depreciable and amortizable assets90,706 88,414 
Accumulated depreciation and amortization(50,473)(47,483)
Net depreciable and amortizable assets40,233 40,931 
Accounts receivable, net(2)
43,017 37,274 
Accounts receivable - affiliates798 513 
Deferred rent receivable, net(3)
57,954 52,141 
Derivative assets25,231 25,853 
Prepaid expenses and other12,638 14,575 
Investment in third parties9,901 9,800 
Investment in marketable securities8,502 7,792 
Total other assets, net$198,274 $188,879 
ACCOUNTS PAYABLE AND OTHER LIABILITIES
Accounts payable trade and other accruals$29,380 $34,431 
Accrued real estate taxes29,037 30,979 
Security deposits 14,500 14,170 
Distribution accrual1,062 1,048 
Accrued compensation 8,349 14,210 
Accrued interest9,138 8,192 
Capital expenditure accrual 6,684 9,834 
Accrued income taxes and deferred tax liabilities, net37 321 
Total accounts payable and other liabilities$98,187 $113,185 
(1)Deferred financing expenses per the above table are related to our revolving credit facility, and as such we have elected to classify them as an asset rather than as a contra-liability.
(2)Net of $3.2 million and $3.0 million of general reserves for uncollectible amounts as of June 30, 2023 and December 31, 2022, respectively. Receivables that were removed for Neighbors considered to be non-creditworthy were $6.5 million and $6.2 million as of June 30, 2023 and December 31, 2022, respectively.
(3)Net of $4.1 million and $4.2 million of receivables removed as of June 30, 2023 and December 31, 2022, respectively, related to straight-line rent for Neighbors previously or currently considered to be non-creditworthy.

Phillips Edison & Company
22



Supplemental Statements of Operations Detail
Unaudited, in thousands
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
REVENUES
Rental income(1)
$109,149 $101,395 $218,032 $202,527 
Recovery income(1)
35,760 31,199 71,504 65,044 
Straight-line rent amortization 3,148 3,170 5,591 4,865 
Amortization of lease assets1,249 1,062 2,465 2,054 
Lease buyout income74 177 429 2,141 
Adjustments for collectibility(2)(3)
(400)227