Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO” or the
“Company”), one of the nation’s largest owners and
operators of omni-channel grocery-anchored shopping centers, today
announced that it has acquired Lake Pointe Market, a
96.7%-occupied, 40,600-square-foot grocery-anchored neighborhood
shopping center located in Rowlett, Texas. The center is shadow
anchored by a Tom Thumb, the #1 grocer by sales in its three-mile
trade area and one of the state’s top-ranking grocers. The
acquisition marks PECO’s 12th shopping center in the greater
Dallas/Fort Worth Metroplex.
Lake Pointe Market’s dynamic merchandising mix
features a blend of leading national, regional and local retailers,
of which more than 70% provide necessity-based goods and services
including H&R Block, Bank of America, Supercuts and OneMain
Financial, as well as a variety of local shops which include
personal services, restaurants and medical uses. Optimally located
at the high-traffic intersection of Dalrock Road and Lakeview
Parkway, Lake Pointe Market benefits from more than two million
annual visits. The center is situated in a three-mile trade area
with an estimated population of over 52,500 residents and an
average household income of $119,300.
Jeff Edison, Chairman and Chief Executive at
PECO, stated, “We remain focused on our goal of accretively growing
our grocery-anchored neighborhood shopping center portfolio – at
the right price – while achieving our acquisition hurdle of a 9%
unlevered IRR. As previously announced, we plan to acquire $200 to
$300 million in net acquisitions this year. In addition, we still
have one of the lowest levered balance sheets in the shopping
center space, which gives us the financial capacity to meet our
acquisition objectives.”
David Wik, Senior Vice President of Acquisitions
at PECO, added, “Lake Pointe Market presented an excellent
opportunity to expand our presence in the highly attractive
Dallas/Fort Worth market, which benefits from strong demographics
and economic fundamentals. This acquisition presents a variety of
growth prospects, including the potential to develop ground-up
outparcel retail spaces, increase occupancy and enhance the
existing merchandising mix through the recapture of below market
leases. We remain well-positioned to continue to gain share through
future acquisitions of grocery-anchored shopping centers in densely
populated suburban neighborhoods around the U.S.”
PECO has identified a large, addressable market
of more than 5,800 grocery-anchored neighborhood shopping centers
anchored by the #1 or #2 grocer by sales in the market. These
centers meet the Company’s disciplined investment criteria and have
the potential to provide continued opportunities for external
growth. PECO’s experienced, in-house acquisitions team focuses on
growing suburban and Sun Belt markets that are diversified by
grocer, geography and merchandising mix, which drives
high-recurring foot traffic and strong retailer demand.
Connect with PECOFor additional
information, please visit https://www.phillipsedison.com/
Follow PECO on:Twitter at
https://twitter.com/PhillipsEdison Facebook at
https://www.facebook.com/phillipsedison.co Instagram at
https://www.instagram.com/phillips.edison/; andFind PECO on
LinkedIn at
https://www.linkedin.com/company/phillipsedison&company
About Phillips Edison & Company,
Inc.Phillips Edison & Company, Inc. (“PECO”) is one of
the nation’s largest owners and operators of omni-channel
grocery-anchored shopping centers. Founded in 1991, PECO has
generated strong results through its vertically-integrated
operating platform and national footprint of well-occupied shopping
centers. PECO’s centers feature a mix of national and regional
retailers providing necessity-based goods and services in
fundamentally strong markets throughout the United States. PECO’s
top grocery anchors include Kroger, Publix, Albertsons and Ahold
Delhaize. As of June 30, 2023, PECO managed 294 shopping centers,
including 274 wholly-owned centers comprising 31.4 million square
feet across 31 states and 20 shopping centers owned in one
institutional joint venture. PECO is exclusively focused on
creating great omni-channel, grocery-anchored shopping experiences
and improving communities, one neighborhood shopping center at a
time.
PECO uses, and intends to continue to use, its
Investors website, which can be found at
https://investors.phillipsedison.com, as a means of disclosing
material nonpublic information and for complying with its
disclosure obligations under Regulation FD.
Forward-Looking StatementsThis
press release contains certain 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 such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995 and includes this statement for purposes of complying
with the safe harbor provisions. 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 earnings release. Such statements
include, but are not limited to (a) statements about the Company’s
plans, strategies, initiatives, and prospects, (b) statements about
the Company’s acquisitions, acquisition strategy and objectives and
potential benefits from such acquisitions and (c) statements about
the Company’s Unlevered IRR. Such statements are subject to known
and unknown risks and uncertainties, which could cause actual
results to differ materially from those projected or anticipated,
including, 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) competition from other
available shopping centers and the attractiveness of properties in
the Company’s portfolio to its tenants; (v) the financial stability
of the Company’s tenants, including, without limitation, their
ability to pay rent; (vi) the Company’s ability to pay down,
refinance, restructure, or extend its indebtedness as it becomes
due; (vii) increases in the Company’s borrowing costs as a result
of changes in interest rates and other factors; (viii) potential
liability for environmental matters; (ix) damage to the Company’s
properties from catastrophic weather and other natural events, and
the physical effects of climate change; (x) the Company’s ability
and willingness to maintain its qualification as a REIT in light of
economic, market, legal, tax, and other considerations; (xi)
changes in tax, real estate, environmental, and zoning laws; (xii)
information technology security breaches; (xiii) the Company’s
corporate responsibility initiatives; (xiv) loss of key executives;
(xv) the concentration of the Company’s portfolio in a limited
number of industries, geographies, or investments; (xvi) the
economic, political, and social impact of, and uncertainty relating
to, pandemics or other health crises; (xvii) the Company’s ability
to re-lease its properties on the same or better terms, or at all,
in the event of non-renewal or in the event the Company exercises
its right to replace an existing tenant; (xviii) the loss or
bankruptcy of the Company’s tenants; (xix) to the extent the
Company is seeking to dispose of properties, the Company’s ability
to do so at attractive prices or at all; and (xx) the impact of
inflation on the Company and on its tenants. Additional important
factors that could cause actual results to differ are described in
the filings made from time to time by the Company with the SEC and
include the risk factors and other risks and uncertainties
described in the Company’s 2022 Annual Report on Form 10-K, filed
with the SEC on February 21, 2023, as updated from time to time in
the Company’s periodic and/or current reports filed with the SEC,
which are accessible on the SEC’s website at www.sec.gov.
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 statement,
whether as a result of new information, future events, or
otherwise.
Media
Contacts: |
Cherilyn Megill |
|
Mallory Cohen |
Phillips Edison & Company,
Inc. |
|
ICR |
801-415-4373 |
|
203-682-8282 |
cmegill@phillipsedison.com |
|
PECOPR@icrinc.com |
|
|
|
Investor
Contact: |
Kimberly Green |
|
|
Phillips Edison & Company,
Inc. |
|
|
513-538-4380 |
|
|
kgreen@phillipsedison.com |
|
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