Phillips Edison prices $350 million in senior unsecured notes

Published 13/06/2025, 12:36
Phillips Edison prices $350 million in senior unsecured notes

CINCINNATI - Phillips Edison & Company, Inc. (Nasdaq: PECO) announced Friday that its operating partnership has priced a $350 million public offering of 5.250% senior unsecured notes due August 15, 2032.

The notes were priced at 99.832% of the principal amount, with settlement expected on June 17, according to a company press release. Phillips Edison will fully guarantee the notes issued by Phillips Edison Grocery Center Operating Partnership I, L.P.

The company plans to use the proceeds for general corporate purposes, including repaying borrowings under its revolving credit facility and term loans, acquiring additional properties, funding capital expenditures, and supporting expansion efforts.

J.P. Morgan, Fifth Third Securities, Mizuho, Morgan Stanley, and US Bancorp served as joint book-running managers for the offering, alongside seven other financial institutions.

Phillips Edison owns and operates grocery-anchored neighborhood shopping centers across the United States. As of March 31, the company managed 321 shopping centers, including 298 wholly-owned centers comprising 33.5 million square feet across 31 states.

The notes are being offered through an effective shelf registration statement filed with the Securities and Exchange Commission.

The announcement comes as the company continues to manage its debt portfolio in the current interest rate environment.

In other recent news, Phillips Edison & Co reported impressive financial results for the first quarter of 2025. The company’s earnings per share (EPS) reached $0.21, significantly surpassing the analyst forecast of $0.14. Revenue also exceeded expectations, coming in at $178.31 million compared to the anticipated $165.14 million. This strong performance was marked by an 8.5% year-over-year increase in NAREIT Funds From Operations (FFO) and an 8.3% rise in Core FFO. The company maintained high portfolio occupancy at 97.1%, reflecting robust demand for its retail centers.

Phillips Edison reaffirmed its full-year guidance, projecting a 5.7% growth in NAREIT FFO per share. The company plans to pursue acquisitions worth $350-$450 million, targeting an unlevered internal rate of return of 9%. Despite the positive earnings report, the stock experienced a slight decline in after-hours trading. In other developments, the management emphasized their confidence in the continued strong leasing environment, supported by high demand from retailers. The company remains focused on necessity-based goods and services, which constitute 71% of its annualized base rent, providing stability amid economic uncertainties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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