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Investing.com -- Phillips Edison & Company, Inc. (NASDAQ:PECO), a major owner of grocery-anchored shopping centers, saw its shares fall 2.2% after reporting second quarter earnings that missed analyst expectations despite raising its full-year guidance.
The company reported second quarter earnings per share of $0.10, falling short of the $0.15 analyst estimate. Revenue came in at $177.75 million, exceeding the consensus estimate of $174.25 million and showing growth from the same period last year. The company also provided full-year EPS guidance of $0.61-$0.64, below the analyst consensus of $0.70.
PECO reported Core FFO (funds from operations) of $88.2 million, or $0.64 per diluted share, representing a 10.3% increase compared to $80.0 million, or $0.59 per diluted share, during the second quarter of 2024. Same-center net operating income increased 4.2% to $114.5 million.
"We are pleased to report another quarter of solid operating and financial results, with same-center NOI growth of 4.2% and Core FFO per share growth of 8.5%, reflecting the growth opportunity in our grocery-anchored portfolio," said Jeff Edison, Chairman and Chief Executive Officer of PECO. "Retailer demand remains strong, and PECO’s platform is driving meaningful earnings growth."
The company maintained strong occupancy metrics with portfolio leased occupancy at 97.4%, slightly down from 97.5% a year ago. Leased inline occupancy was 94.8%, compared to 95.1% in the same quarter last year.
PECO has been active on the acquisition front, purchasing five wholly-owned shopping centers for $128 million during the quarter, and maintaining its full-year acquisition guidance of $350-450 million.
The company increased its 2025 guidance for same-center NOI growth to 3.10%-3.60%, up from previous guidance of 3.00%-3.50%, and raised its Core FFO guidance to $2.55-$2.60 per share from $2.52-$2.59 previously.
As of June 30, PECO’s portfolio consisted of 303 properties totaling approximately 34 million square feet across 31 states.
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