GROW with PECO September 2021 - Phillips Edison & Company, Inc. ("PECO") is one of the nation's largest owners and operators of omni-channel
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GROW with PECO
September 2021
Phillips Edison & Company, Inc. (“PECO”) is one of the
nation’s largest owners and operators of omni-channel
grocery-anchored neighborhood shopping centers.
GROW
with
PECO
Certain statements contained in this Phillips Edison & Company, Inc. (the “Company”) presentation, including statements relating to the Company’s
expectations, performance, distributions, and guidance, may be considered 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 for all such forward-
looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. 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 press release. Such statements are subject to certain risks and uncertainties, including known and unknown risks, 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) changes in
interest rates and the availability of permanent mortgage financing; (v) competition from other available properties and the attractiveness of properties
in the Company’s portfolio to its tenants; (vi) the financial stability of tenants, including the ability of tenants to pay rent; (vii) changes in tax, real estate,
environmental, and zoning laws; (viii) the concentration of the Company’s portfolio in a limited number of industries, geographies, or investments; (ix)
the economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic, including its potential or expected impact on the
Company’s tenants, the Company’s business and the Company’s view on forward trends; and (x) 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. Except as required by law, the
Company does not undertake any obligation to update or revise any forward-looking statements contained in this release.
See Part I, Item 1A. Risk Factors of the Company’s 2020 Annual Report on Form 10-K, filed with the SEC on March 12, 2021, and any subsequent filings,
for a discussion of some of the risks and uncertainties, although not all of the risks and uncertainties, that could cause actual results to differ materially
from those presented in the Company’s forward-looking statements. Except as required by law, the Company does not undertake any obligation to
update or revise any forward-looking statements contained in this release.
www.PhillipsEdison.com/Investors Page 2 Page 2
www.PhillipsEdison.com/Investors
GROW with PECO
GROCERY REGULAR INCOME; OMNI-CHANNEL WELL-ALIGNED
ANCHORED STRONG RETURNS LANDLORD & EXPERIENCED
investors.phillipsedison.com | Page 3
GROW
GROCERY-ANCHORED with
PECO
(1)
SHOPPING CENTERS
TOTAL ENTERPRISE VALUE (2)
TOTAL LEASED OCCUPANCY (3)
PECO’S #1 AND #2 NEIGHBORS:
KROGER’S LARGEST LANDLORD
PUBLIX’S SECOND LARGEST
LANDLORD (1)
1. As of June 30, 2021, includes properties partially owned through joint ventures.
2. Total Enterprise Value (“TEV”) calculation includes as adjusted total net debt reported on June 30, 2021 and market capitalization as of August 31, 2021. investors.phillipsedison.com | Page 4
3. As of June 30, 2021
REGULAR INCOME; STRONG RETURNS (1)
GROW
with
PECO
TOTAL RETURN FOR REIT I TOTAL CASH DISTRIBUTIONS PER
INVESTORS RANGE FROM: REIT I SHARE (2) RANGE FROM: CURRENT DIVIDEND YIELD
“REIT I” refers to investors that originally invested in Phillips Edison Grocer Center REIT I, Inc.
1. Data as of market close on September 7, 2021. investors.phillipsedison.com | Page 5
2. Adjusted for the one-for-three reverse stock split during July 2021.
REGULAR INCOME; STRONG RETURNS (1)
GROW
with
PECO
TOTAL RETURN FOR REIT II TOTAL CASH DISTRIBUTIONS PER
INVESTORS RANGE FROM: REIT II SHARE (2) RANGE FROM: CURRENT DIVIDEND YIELD
“REIT II” refers to investors that originally invested in Phillips Edison Grocer Center REIT II, Inc.
1. Data as of market close on September 7, 2021. investors.phillipsedison.com | Page 6
2. Adjusted for the one-for-three reverse stock split during July 2021 and the merger into PECO in November 2018.
GROW
0MNI-CHANNEL LANDLORD with
PECO
PECO’s brick-and-mortar assets are the
future of retail real estate.
OUR CENTERS FACILITATE BUY
ONLINE PICK UP IN STORE OR
“BOPIS”
SITUATED NEAR THE CUSTOMERS,
FACILITATING LAST MILE DELIVERY
FRONT ROW TO GO® PARKING
SPACES
investors.phillipsedison.com | Page 7
GROW
WELL-ALIGNED & EXPERIENCED with
PECO
PECO is committed to being a responsible
corporate citizen including environmental, social
OF EXPERIENCE
and governance (“ESG”) initiatives
INSIDER OWNERSHIP
OF MANAGEMENT’S CAPITAL INVESTED
ALONGSIDE YOUR CLIENTS
TOTAL STOCKHOLDER DISTRIBUTIONS (1)
NO THIRD-PARTY ASSET MANAGEMENT
FEES ARE PAID
investors.phillipsedison.com | Page 8
1. Includes all PECO FundsHow we GROW: GROW
with
Our Value Proposition PECO
STRATEGY + PORTFOLIO = RESULTS & OPPORTUNITIES
Centers anchored by the #1 or Exclusively focused on grocery- Strong financial performance
#2 grocer in market anchored centers through all cycles
____________ ____________ ____________
Vertically-integrated, locally- Diverse geographic and Consistent track record of
smart, in-house platform Neighbor exposure adding stockholder value
____________ ____________ ____________
Small format centers located in $5.6 billion national portfolio – Great long-term investment
the neighborhood one of the largest in the U.S. opportunity
investors.phillipsedison.com | Page 9Next Phase of GROWTH: GROW
with
PECO’s Successful IPO PECO
• July 2021: Closed IPO including 100%
of the over allotment issuing 19.55
million shares at $28.00 per share
$31 8.0 M
• IPO generated a total of $547.4
million of gross proceeds
$30
SINCE IPO
• PECO’s Common Stock began trading
Trading Volume
on the Nasdaq on July 15, 2021
$29
• PECO is the performing stock among
peers since IPO* Sept. 7, 2021
$28
Closing price:
• Stockholders include high-quality, $29.80
long-only institutional investors: $27
• MFS, Fidelity, Vanguard, Wellington,
and Prudential
$26 0.0 M
July 15, August 31,
2021 2021
investors.phillipsedison.com | Page 10
* June 15, 2021 through September 7, 2021, per Yahoo! Finance. Peers include AKR, BRX, KIM, KRG, REG, ROIC and RPT.Next Phase of GROWTH: GROW
with
Research Analyst Coverage PECO
• PECO will leverage its industry relationships to
continue to build its institutional investor audience.
• Nine institutional research analysts currently write
research on PECO’s common stock:
• BMO • KeyBanc
• Bank of America • Mizuho
CONSENSUS PRICE
• Green Street • Morgan Stanley TARGET
• Goldman Sachs • Wells Fargo
• JP Morgan
• Full slate of institutional investor relations events
scheduled before year-end.
Analyst consensus price targets are sourced from reports of independent analysts produced as of various dates
prior to the date of this presentation and reflect the views of such analysts based on their respective
assumptions and pricing methodologies. The Company makes no assurances as to such assumptions or pricing
methodologies. Analyst consensus price targets may not reflect the actual value of our common stock as of the
date of this presentation or the trading price our common stock may achieve in the future. investors.phillipsedison.com | Page 11Next Phase of GROWTH: GROW
with
Index Inclusion PECO
• The average REIT has 42% of its shares held by index
funds (1)
• PECO’s peers (2) have, on average, 43% of their shares
held by index funds Retail
5%
Hedge
• PECO expects to be included in at least 11 indices Fund
beginning in 2022 5%
Index
42%
• $1.0 billion of potential buying demand for PECO’s REIT
common stock from index funds during the 12 months Dedicated
following the expiration of the holding period (1) 35%
Long Only
13%
1. Source: BofA index desk, Bloomberg and FactSet as of July 29, 2021, and Q1 2021 filings. investors.phillipsedison.com | Page 12
2. Peers include REG, KIM, BRX, RPAI, ROIC, KRG, and RPT, as of Q1 2021 filings.Next Phase of GROWTH: GROW
with
Cost Basis Considerations* PECO
• Distributions from REITs are typically not 100% taxable
because a portion of the distributions is considered
“return of capital”
• For non-qualified accounts, these distributions are
generally not taxable for the investor upon receipt ESTIMATED AVERAGE COST
BASIS PER SHARE FOR REIT I
• As a result, the cost basis is lowered by the same amount INVESTORS (1)
of the “return of capital” (or non-dividend) distribution
• Therefore, REIT I and REIT II investors likely have a cost
basis that is lower than their original purchase amount by
the amount of the dividend paid that was return of capital
ESTIMATED AVERAGE COST
BASIS PER SHARE FOR REIT II
INVESTORS (2)
* For illustrative purposes only. Please consult your tax professional for any tax-related advice. Each investor is responsible for tracking their own basis.
1. Reflects the one for three reverse stock split that took place on July 2, 2021; assumes all distributions taken in cash. www.PhillipsEdison.com/Investors
investors.phillipsedison.com | Page 13
2. Reflects REIT II’s merger into REIT I that closed in November 2018 and the one for three reverse stock split that took place on July 2, 2021; assumes all distributions taken in cash. Page 13Next Phase of GROWTH: GROW
with
Valuation PECO
• We believe our stock price is not fully valued(1)
• PECO’s share price has traded at a 6% discount to our
pre-IPO split adjusted estimated value per share
$32.23
• PECO’s share price has traded at an 8% discount to our $31.65
covering research analysts’ consensus price target
• PECO’s share price has traded at a 13% discount to our
targeted peers when using the 2021 Nareit FFO implied $29.80
multiple of our targeted peers’ guidance
Share Price Pre IPO Analyst Targeted
as of Split Consensus Peers (2)
9/07/2021 Adjusted
Estimated
Value per
Share
1. As of September 7, 2021.
2. Analyzes the Nareit FFO per share multiple of Regency Centers (Nasdaq: REG) and Retail Opportunity Investments Corp. (Nasdaq: ROIC) based on their 2021 Nareit FFO per investors.phillipsedison.com | Page 14
share guidance; then applied to PECO’s 2021 Nareit FFO per share guidance.GROW with PECO
GROCERY REGULAR INCOME; OMNI-CHANNEL WELL-ALIGNED
ANCHORED STRONG RETURNS LANDLORD & EXPERIENCED
investors.phillipsedison.com | Page 15GROW
Question & Answer Session with
PECO
If you are logged into the webcast, you can submit a question
by typing it in the text box and clicking “Submit Question”
Please visit our website for
advisor and investor resources
including frequently asked
questions:
investors.phillipsedison.com
investors.phillipsedison.com | Page 16Thank you
INVESTORRELATIONS@PHILLIPSEDISON.COM
INVESTORS.PHILLIPSEDISON.COM
INVESTORS AND NIGO SERVICING: (888) 518-8073
PECO ADVISOR SERVICES: (833) 347-5717You can also read
