Phillips Edison Closes $350 Million Unsecured Loan Due in 2029
Key Facts
Phillips Edison closed a three-year, $350 million unsecured term loan due on October 23, 2029, according to a summary of the company’s statement published via GlobeNewswire on October 26, 2026. The loan’s initial interest rate is SOFR plus 0.80%. The summary said pricing may later be adjusted according to the company’s credit ratings and leverage ratio. This places the borrowing cost associated with the new loan under variable pricing affected by those two factors. The company’s shares, listed under the ticker PECO, closed at $38.36 on October 23.
The new loan matures in October 2029, while the company had disclosed total liquidity of about $857.3 million as of June 30, 2026. At the time, liquidity comprised $30.0 million in cash, cash equivalents and restricted cash, along with $827.3 million of available borrowing capacity under a $1.0 billion revolving credit facility. These figures provide a picture of the company’s disclosed resources about four months before the new loan closed. They also show that a large share of the liquidity disclosed in June was available borrowing capacity, alongside cash. The weighted average interest rate on outstanding debt was 4.4% on the same date, and 95.9% of total debt was fixed-rate.
According to the company’s published debt schedule, total debt obligations were $2,478.111 million as of June 30, 2026, including $2,053.750 million of unsecured debt. The schedule included unsecured note issuances of $350 million each, maturing between 2031 and 2035. The new loan has a shorter term than those listed maturities, coming due on October 23, 2029. The comparison shows differing maturities between the debt instruments in the schedule and the new loan. Its initial rate, linked to SOFR, may change according to credit ratings and leverage, according to the summary of its terms.
In an update issued on October 1, Phillips Edison said it had acquired $459.7 million of assets from the beginning of 2026 through September 30 and sold $174.0 million of assets during the same period. The company raised its target range for gross acquisitions for fiscal 2026 to $600–700 million. The update places the loan within a period in which the company reported acquisitions and asset sales, as well as a target range for acquisitions through year-end. The loan terms summary does not say these moves were the reason for entering into it. The summary also does not describe the interest rate as competitive; it specifies its initial spread and the mechanism for later adjustments.
In its second-quarter 2026 results, the company reported core funds from operations of $0.69 per diluted share, an annual increase of 8.3% from $0.64 in the second quarter of 2025. Net income attributable to shareholders was $41.1 million, compared with $12.8 million in the same period a year earlier. The results provide financial background for the period before the loan announcement, alongside the liquidity and debt data the company reported on June 30. Phillips Edison was scheduled to hold its third-quarter results call on October 27, 2026, at 12:00 p.m. Eastern time. The call is scheduled for the day after the loan closing announcement, with the company’s fiscal-year acquisition guidance at $600–700 million, according to the October 1 update.