Phillips Edison Raises 2026 Acquisitions to $700 Million, Targets $1 Billion Portfolio
Key Facts
On October 1, Phillips Edison raised its expected gross acquisitions for 2026 to $600–700 million, from $500–600 million previously, expanding its asset purchase plan for the year. The company said the updated outlook reflects the higher range, while it had acquired assets worth $459.7 million on a pro rata basis through September 30. The company sold assets worth $174.0 million over the same period. Third-quarter results came on October 26, separate from the acquisitions update published at the start of the month. On the October 27 earnings call, management presented a parallel target to grow its Everyday Retail portfolio to $1 billion over 24 months.
Third-quarter results showed net income attributable to shareholders of $62.7 million, or $0.49 per diluted share. Core FFO per diluted share was $0.71, up 9.2% year over year. Same-center net operating income also rose 5.3% compared with the same period a year earlier. Management said higher rents were the main driver of same-center NOI growth. The metric had recorded growth of 3.3% in the third quarter of 2025, putting the latest quarter's performance above its level a year earlier.
Comparable new lease spreads rose to 26.3% in the third quarter, while comparable renewal leases reached a record 25.2%, the company's president said on the earnings call. Portfolio leased occupancy was 97.5%, while occupancy of inline spaces reached 95.1%. In the second quarter, portfolio leased occupancy was 97.3%, compared with 97.4% a year earlier, and inline occupancy was then at a record 95.5%. The company said 74% of annual base rent comes from needs-based goods and services, describing the consumer as resilient. These indicators provide an operating snapshot of centers anchored by grocery stores and everyday services, alongside plans to increase acquisitions.
Alongside raising its acquisition range, the company maintained its outlook at $600–700 million in its October 26 results update and raised its full-year same-center NOI growth range to 3.50%–4.00% from 3.40%–4.00%. It also forecast net contributions to joint ventures of $200–250 million and raised its dispositions range to $175–210 million. Management said its current plan does not assume issuing shares, and that it is funding investments through a mix of retained cash flows, dispositions, joint venture proceeds and debt. In October, the company closed a $350 million unsecured three-year term loan at an initial spread of 80 basis points over SOFR, 30 basis points below the loan it repaid. On October 1, it had announced an expansion of its joint venture with Northwestern Mutual in a $377.5 million transaction.
The company scheduled a business update for December 16, 2026, to provide more details on its growth plan. The chief financial officer said the company expects rent growth to continue in the fourth quarter, while the NOI growth rate will be affected by the timing of recovery revenue recognition compared with the same quarter a year earlier. In trading cited on October 27, the stock was at $38.11, down 1.27% from its previous close of $38.60 on October 26. The stock had closed at $38.14 on October 20, $37.27 on October 21, $38.29 on October 22, and $38.36 on October 23. The December update places the acquisitions plan and portfolio growth among the company's upcoming milestones announced to investors.