Phillips Edison Reports $62.7 Million in Net Income, Raises 2026 Annual Outlook
Key Facts
Phillips Edison announced on October 26 that net income attributable to shareholders was $62.7 million, or $0.49 per diluted share, in the third quarter of 2026. In the same update, the company raised its annual diluted net income forecast to $1.21–$1.24 per share and set its Core FFO forecast at $2.75–$2.79 per share. The guidance update came weeks after it announced that it had raised its 2026 gross acquisition target to $600–$700 million. The company also announced on October 1 that it was expanding its asset disposition outlook and estimating net contributions to joint ventures. The quarterly results and updated annual guidance provide the latest picture of the company’s performance and real estate plans for the year.
The company’s annual net income forecast on October 1 was $0.95–$0.97 per diluted share, before it raised it to $1.21–$1.24 in its October 26 statement. In the latest update, the diluted Core FFO per-share range was $2.75–$2.79, compared with the $2.73–$2.79 range announced on October 1. The October guidance also included same-center net operating income growth of between 3.40% and 4.00%. The company said at the time that the midpoint of the Core FFO range implied annual growth of 6.2%, while the midpoint of same-center NOI growth equaled 3.7%. These figures show that the October guidance preceded the update following the third-quarter results.
On October 1, Phillips Edison raised its expected gross acquisitions range for 2026 to $600–$700 million, from $500–$600 million. It had raised the previous range in its second-quarter update from $400–$500 million to $500–$600 million, before the new increase in October. As of September 30, acquired assets totaled $459.7 million on the company’s gross pro rata share basis, while dispositions totaled $174.0 million. This figure is measured on a different basis from the gross acquisitions guidance, so comparing them does not provide a consistent measure of progress toward the annual range. The company also raised its 2026 disposition outlook to $200–$250 million, from $100–$200 million, and estimated net contributions to joint ventures at $200–$250 million.
As part of its portfolio management, the company announced an expansion of its joint venture with Northwestern Mutual to include 13 grocery-anchored shopping centers valued at approximately $377.5 million. The expanded venture is owned approximately 86% by Northwestern Mutual and 14% by Phillips Edison. Chief Executive Jeff Edison said the expansion “reflects continued institutional demand for high-quality grocery-anchored shopping centers.” The transaction provides a framework for transferring company-owned assets to a partnership with an institutional investor, alongside the company’s estimate of net contributions to joint ventures during the year. Phillips Edison said additional asset transfers to the joint venture are expected by early 2027, with the timing and composition of future closings subject to change.
The second-quarter results provide context for the company’s performance before it reported third-quarter figures: Core FFO grew 7.8% year over year per diluted share, and same-center NOI rose 3.8%. The midpoint of the company’s October guidance indicated annual growth of 6.2% in Core FFO and 3.7% in same-center NOI. The company said its third-quarter earnings call is scheduled for October 27, 2026, at 12 p.m. Eastern time. PECO shares closed at $38.36 on October 23, three days before the results were announced. That price therefore reflects trading before the announcement and does not represent the market’s response to the results published on October 26.