Slides
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D December 2024 PECO Business Update
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 2 Safe Harbor and Non-GAAP Disclosures
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 3 GROCERY CENTERED. NEIGHBORHOOD FOCUSED. PECO’s Mission
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 4 PECO Business Update
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO is a Growth Company | 5 Our Vision: Grow PECO’s Total Enterprise Value to Over $10B
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 6 PECO’s Long Term Targets Mid-to-High-Single-Digit Core FFO per Share Growth and Higher AFFO Growth $350M to $450M in Acquisitions Annually Same-Center NOI Growth of 3% to 4%
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 7 Why Now?
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 8 Macro Tailwinds Benefiting PECO Long Term
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 9 STRIP CENTER SUPPLY GROWTH (AS A % OF EXISTING STOCK) 0.0% 1.0% 2.0% 3.0% 4.0% 1999 -2023 AVG: 1.4% Lack of New Supply Source: Green Street Strip Center Sector Update
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D| 10 ✓ ✓ ✓ ✓ ✓ ✓ Source: Company data as of September 30, 2024 ✓ ✓ ✓ ✓ ✓ ✓ PECO’s Focused and Differentiated Strategy
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D 2019 2020 2021 2022 2023 Q3 2024 | 11 PECO GROCER SALES PSF GROWTH (4) Sources: 1. Based on the most recently reported sales data available 2. Company data as of September 30, 2024 3. Most recently reported sales data reported by neighbors and 3rd party data sources 4. Includes PECO grocers who reported sales PSF in 2023 and through September 30, 2024 5. Brick Meets Click 2023 5-year Forecast PECO’s Grocery- Anchored Advantage GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 12 PECO’s Leading Grocer Relationships
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D How PECO Defines Quality | 13 PECO’s focus on the #1 or #2 grocer is well-positioned in the market with a Locally Smart® merchandising mix and ~50% of ABR in the Sun Belt states and growing U.S. cities. PECO retains a healthy and diverse mix of National, Regional and Local Neighbors who run successful businesses and support our ability to grow rents at attractive rates.
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 14 PECO Continues to Deliver Market-Leading Operating and Financial Results • • • • • • • • • • Note: Unless otherwise noted peers include BRX, KIM, KRG, REG, ROIC, FRT and AKR Sources: As reported in PECO and Peer company filings unless otherwise noted 1. Excludes exercise of options. Other companies may define/calculate differently than PECO. Accordingly, such data for these companies and PECO may not be comparable 2. As reported in the 2024 proxy statement 3. Excludes M&A activity 4. Peer group include REG, ROIC, BRX, KIM and KRG 5. Peer group includes ROIC, BRX, KRG and IVT
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D PECO Continues to Deliver Market-Leading Operating and Financial Results | 15 . . Note: Unless otherwise noted peers include BRX, KIM, KRG, REG, ROIC, FRT and AKR Sources: As reported in December 31, 2023 PECO and Peer company filings unless otherwise noted 1. Excludes exercise of options. Other companies may define/calculate differently than PECO. Accordingly, such data for these companies and PECO may not be comparable 2. Peer group includes ROIC, BRX, KRG and IVT 3. Company filings as of September 30, 2024
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 16 Strong Acquisition Volume that Drives External Growth Source: Company data as of December 19, 2024 1. Acquisition through the Company’s Necessity Retail Venture LLC joint venture. Shown at PECO 20% share.
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 17 Long Term Targets: External Growth 9%+ Unlevered IRR $350M to $450M in acquisitions per year on-balance-sheet
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 18 Strong and Flexible Balance Sheet Sources: 1. As of September 30, 2024. Revolver capacity is net of letters of credit 2. Includes options to extend revolver and term loans INVESTMENT GRADE BALANCE SHEET HIGHLIGHTS (1)(2) • • • • • • • • • LIQUIDITY STRENGTH (1) Cash, Cash Equivalents & Restricted Cash $9M Revolver Capacity $743M $743M $9M $752M
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 19 $3 Well-Laddered Debt Maturity Profile ($M)(1) $0.6 $37.6 $1.9 $200.6 $17.4 $0.8 $200.8 $3.4 $100.0 $323.0 $161.8 $36.0 $21.1 $350.0 $350.0 $350.0 $742.9 $0.0 $250.0 $500.0 $750.0 $1,000.0 $1,250.0 $1,500.0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Secured Property Debt Unsecured Term Loans Revolver Balance Letters of Credit Bonds Revolver Capacity Source: 1. As of September 30, 2024. Revolver capacity is net of letters of credit. Includes options to extend revolver and term loans.
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 20 PRELIMINARY FULL YEAR 2025 GUIDANCE RANGE Net Income Per Share $0.54 - $0.59 Nareit FFO Per Share $2.47 - $2.54 Core FFO Per Share $2.52 - $2.59 Same-Center NOI Growth 3.00% - 3.50% PORTFOLIO ACTIVITY: Acquisitions(1) $350M - $450M OTHER: Interest Expense, Net $111M - $121M G&A Expense $45M - $49M Non-Cash Revenue Items(2) $18M - $20M Adjustments for Collectibility $4M - $8M Preliminary 2025 Guidance Note: A reconciliation of the range of the Company's Preliminary Full Year 2025 estimated net income to estimated Nareit FFO and Core FFO is available in the Appendix of this presentation. 1. Includes the prorated portion owned through the Company’s unconsolidated joint ventures. 2. Represents straight-line rental income and net amortization of above- and below-market leases.
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D • • • • | 21 PECO is Among the Lowest Levered Shopping Center REITs Sources: 1. As reported in September 30, 2024 quarterly filings (mix of TTM and LQA leverage); data based on Company filings. Other companies may define/calculate net debt / EBITDA differently than PECO. Accordingly, such data for these companies and PECO may not be comparable. Please see Appendix at the back of this presentation for definitions, explanations and non-GAAP reconciliations 2. Long-term issuer ratings, as of September 30, 2024 GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 22 Long Term Targets Target Net-Debt-to- Adjusted EBITDAre in the low-to-mid 5x range Repeat Issuer in the Unsecured Debt Market
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Long Term Growth Beyond Occupancy | 23 Source: Company data
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Roadmap to Our Long Term Growth | 24 Source: Company data MID-TO-HIGH SINGLE-DIGIT CORE FFO PER SHARE
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO’s Investments Enhance Long Term Value | 25
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 26 Maximizing AFFO Growth and Free Cash Flow Generation • • • • • • • Source: As reported in S&P Global Capital IQ Pro Note: Peers include REG, ROIC, BRX, KIM, KRG, FRT and AKR
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 27 PECO Business Update
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D 28 Appendix
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 29 Source: Company data as of September 30, 2024; Dividend yield as of September 30, 2024 and is based on an annualized rate of $1.23 pe r share PECO at a Glance
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D PECO’s Focus on Corporate Responsibility and Sustainability | 30 ✓
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Glossary of Terms | 31 Notes: 1. Supplemental, non-GAAP performance measures. See the "Introductory Notes" section in our Q3 2024 Supplemental for more informati on on the limitations of non-GAAP performance measures.
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D 32 Appendix Non-GAAP Reconciliations
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Non-GAAP Measures Notes: 1. Includes straight-line rent adjustments for Neighbors for whom revenue is being recorded on a cash basis. 2. Includes operating revenues and expenses from non -same-center properties, which includes properties acquired or sold, and corporate activities. | 33 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income $ 12,903 $ 13,729 $ 49,515 $ 48,574 Adjusted to exclude: Fees and management income (2,856) (2,168) (7,943) (7,192) Straight-line rental income(1) (2,148) (2,265) (6,585) (8,129) Net amortization of above- and below-market leases (1,743) (1,294) (4,732) (3,784) Lease buyout income (393) (587) (844) (1,016) General and administrative expenses 11,114 10,385 34,060 33,604 Depreciation and amortization 68,328 58,706 189,706 176,871 Interest expense, net 24,998 21,522 71,954 61,663 Loss (gain) on disposal of property, net 19 (53) 34 (1,070) Other expense, net 1,068 4,883 3,717 6,542 Property operating expenses related to fees and management income 983 649 2,328 1,675 NOI FOR REAL ESTATE INVESTMENTS $ 112,273 $ 103,507 $ 331,210 $ 307,738 Less: Non-same-center NOI(2) (4,549) 883 (11,179) 3,179 TOTAL SAME-CENTER NOI $ 107,724 $ 104,390 $ 320,031 $ 310,917
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Three Months Ended June 30, 2024 2023 Net income $ 16,986 $ 16,209 Adjusted to exclude: Fees and management income (2,522) (2,546) Straight-line rental income(1) (2,072) (3,284) Net amortization of above- and below-market leases (1,570) (1,262) Lease buyout income (205) (74) General and administrative expenses 11,133 11,686 Depreciation and amortization 61,172 59,667 Interest expense, net 23,621 20,675 Loss (gain) on disposal of property, net 10 (75) Other expense, net 1,720 904 Property operating expenses related to fees and management income 319 711 NOI FOR REAL ESTATE INVESTMENTS $ 108,592 $ 102,611 Less: Non-same-center NOI(2) (3,027) 1,027 TOTAL SAME-CENTER NOI $ 105,565 $ 103,638 Notes: 1. Includes straight-line rent adjustments for Neighbors for whom revenue is being recorded on a cash basis. 2. Includes operating revenues and expenses from non -same-center properties, which includes properties acquired or sold, and corporate activities. | 34 Non-GAAP Measures (Cont’d)
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Year Ended December 31, 2023 2022 Net income $ 63,762 $ 54,529 Adjusted to exclude: Fees and management income (9,646) (11,541) Straight-line rental income(1) (10,185) (12,265) Net amortization of above- and below-market leases (5,178) (4,324) Lease buyout income (1,222) (2,414) General and administrative expenses 44,366 45,235 Depreciation and amortization 236,443 236,224 Impairment of real estate assets - 322 Interest expense, net 84,232 71,196 Gain on disposal of property, net (1,110) (7,517) Other expense, net 7,312 12,160 Property operating expenses related to fees and management income 2,059 3,046 NOI FOR REAL ESTATE INVESTMENTS $ 410,833 $ 384,651 Less: Non-same-center NOI(2) (14,217) (4,186) TOTAL SAME-CENTER NOI $ 396,616 $ 380,465 Notes: 1. Includes straight-line rent adjustments for Neighbors for whom revenue is being recorded on a cash basis. 2. Includes operating revenues and expenses from non -same-center properties, which includes properties acquired or sold, and corporate activities. Non-GAAP Measures (Cont’d) | 35
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Year Ended December 31, 2022 2021 Net income $ 54,529 $ 17,233 Adjusted to exclude: Fees and management income (11,541) (10,335) Straight-line rental income(1) (12,265) (9,404) Net amortization of above- and below-market leases (4,324) (3,581) Lease buyout income (2,414) (3,485) General and administrative expenses 45,235 48,820 Depreciation and amortization 236,224 221,433 Impairment of real estate assets 322 6,754 Interest expense, net 71,196 76,371 Gain on disposal of property, net (7,517) (30,421) Other expense, net 12,160 34,361 Property operating expenses related to fees and management income 3,046 4,855 NOI FOR REAL ESTATE INVESTMENTS $ 384,651 $ 352,601 Less: Non-same-center NOI(2) (23,408) (6,917) TOTAL SAME-CENTER NOI $ 361,243 $ 345,684 Non-GAAP Measures (Cont’d) Notes: 1. Includes straight-line rent adjustments for Neighbors for whom revenue is being recorded on a cash basis. 2. Includes operating revenues and expenses from non -same-center properties, which includes properties acquired or sold, and corporate activities. | 36
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Year Ended December 31, 2021 2020 Net income $ 17,233 $ 5,462 Adjusted to exclude: Fees and management income (10,335) (9,820) Straight-line rental income(1) (9,404) (3,356) Net amortization of above- and below-market leases (3,581) (3,173) Lease buyout income (3,485) (1,237) General and administrative expenses 48,820 41,383 Depreciation and amortization 221,433 224,679 Impairment of real estate assets 6,754 2,423 Interest expense, net 76,371 85,303 Gain on disposal of property, net (30,421) (6,494) Other expense (income), net 34,361 (9,245) Property operating expenses related to fees and management income 4,855 6,098 NOI FOR REAL ESTATE INVESTMENTS $ 352,601 $ 332,023 Less: Non-same-center NOI(2) (5,833) (11,646) TOTAL SAME-CENTER NOI $ 346,768 $ 320,377 Non-GAAP Measures (Cont’d) Notes: 1. Includes straight-line rent adjustments for Neighbors for whom revenue is being recorded on a cash basis. 2. Includes operating revenues and expenses from non -same-center properties, which includes properties acquired or sold, and corporate activities. | 37
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Year Ended December 31, 2020 2019 Net income (loss) $ 5,462 $ (72,826) Adjusted to exclude: Fees and management income (9,820) (11,680) Straight-line rental income(1) (3,356) (9,079) Net amortization of above- and below-market leases (3,173) (4,185) Lease buyout income (1,237) (1,166) General and administrative expenses 41,383 48,525 Depreciation and amortization 224,679 236,870 Impairment of real estate assets 2,423 87,393 Interest expense, net 85,303 103,174 Gain on disposal of property, net (6,494) (28,170) Other (income) expense, net (9,245) 676 Property operating expenses related to fees and management income 6,098 6,264 NOI FOR REAL ESTATE INVESTMENTS $ 332,023 $ 355,796 Less: Non-same-center NOI(2) (4,036) (13,674) TOTAL SAME-CENTER NOI $ 327,987 $ 342,122 Non-GAAP Measures (Cont’d) Notes: 1. Includes straight-line rent adjustments for Neighbors for whom revenue is being recorded on a cash basis. 2. Includes operating revenues and expenses from non -same-center properties, which includes properties acquired or sold, and corporate activities. | 38
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Year Ended December 31, 2019 2018 Net (loss) income $ (72,826) $ 46,975 Adjusted to exclude: Fees and management income (11,680) (32,926) Straight-line rental income (9,079) (5,173) Net amortization of above- and below-market leases (4,185) (3,949) Lease buyout income (1,166) (519) General and administrative expenses 48,525 50,412 Depreciation and amortization 236,870 191,283 Impairment of real estate assets 87,393 40,782 Interest expense, net 103,174 72,642 Gain on sale or contribution of property, net (28,170) (109,300) Other expense, net 676 4,720 Property operating expenses related to fees and management income 6,264 17,503 NOI FOR REAL ESTATE INVESTMENTS $ 355,796 $ 272,450 Less: Non-same-center NOI(1) (16,175) (44,194) NOI from same-center properties acquired in the Merger, prior to acquisition - 99,387 TOTAL SAME-CENTER NOI (ADJUSTED FOR TRANSACTIONS) $ 339,621 $ 327,643Notes: 1. Includes operating revenues and expenses from non -same-center properties, which includes properties acquired, sold, or contributed, and corporate activities. Non-GAAP Measures (Cont’d) | 39
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D 11 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Calculation of Nareit FFO Attributable to Stockholders and OP Unit Holders Net income $ 12,903 $ 13,729 $ 49,515 $ 48,574 Adjustments: Depreciation and amortization of real estate assets 67,887 58,144 188,374 175,212 Loss (gain) on disposal of property, net 19 (53) 34 (1,070) Adjustments related to unconsolidated joint ventures 745 646 2,055 1,989 Nareit FFO attributable to stockholders and OP unit holders $ 81,554 $ 72,466 $ 239,978 $ 224,705 Calculation of Core FFO Attributable to Stockholders and OP Unit Holders Nareit FFO attributable to stockholders and OP unit holders $ 81,554 $ 72,466 $ 239,978 $ 224,705 Adjustments: Depreciation and amortization of corporate assets 441 562 1,332 1,659 Impairment of investment in third parties - 3,000 - 3,000 Transaction and acquisition expenses 1,181 580 3,501 3,179 Loss on extinguishment or modification of debt and other, net 1,231 375 1,230 366 Amortization of unconsolidated joint venture basis differences 3 4 8 12 Realized performance income (1) - - - (75) Core FFO attributable to stockholders and OP unit holders $ 84,410 $ 76,987 $ 246,049 $ 232,846 Notes: 1. Realized performance income includes fees received related to the achievement of certain performance targets in the Company’s NRP joint venture. Non-GAAP Measures (Cont’d) | 40
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D 11 Three Months Ended June 30, 2024 2023 Calculation of Nareit FFO Attributable to Stockholders and OP Unit Holders Net income $ 16,986 $ 16,209 Adjustments: Depreciation and amortization of real estate assets 60,711 59,115 Loss (gain) on disposal of property, net 10 (75) Adjustments related to unconsolidated joint ventures 661 645 Nareit FFO attributable to stockholders and OP unit holders $ 78,368 $ 75,894 Calculation of Core FFO Attributable to Stockholders and OP Unit Holders Nareit FFO attributable to stockholders and OP unit holders $ 78,368 $ 75,894 Adjustments: Depreciation and amortization of corporate assets 461 552 Transaction and acquisition expenses 1,146 1,261 Gain on extinguishment or modification of debt and other, net (1) (9) Amortization of unconsolidated joint venture basis differences 2 7 Core FFO attributable to stockholders and OP unit holders $ 79,976 $ 77,705 Non-GAAP Measures (Cont’d) | 41
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Year Ended December 31, 2023 2022 Calculation of Nareit FFO Attributable to Stockholders and OP Unit Holders Net income $ 63,762 $ 54,529 Adjustments: Depreciation and amortization of real estate assets 234,260 232,571 Impairment of real estate assets - 322 Gain on disposal of property, net (1,110) (7,517) Adjustments related to unconsolidated joint ventures 2,636 842 Nareit FFO attributable to stockholders and OP unit holders $ 299,548 $ 280,747 Calculation of Core FFO Attributable to Stockholders and OP Unit Holders Nareit FFO attributable to stockholders and OP unit holders $ 299,548 $ 280,747 Adjustments: Depreciation and amortization of corporate assets 2,183 3,653 Change in fair value of earn-out liability - 1,809 Impairment of investment in third parties 3,000 - Transaction and acquisition expenses 5,675 10,551 Loss on extinguishment or modification of debt and other, net 368 1,025 Amortization of unconsolidated joint venture basis differences 17 220 Realized performance income (1) (75) (2,742) Core FFO attributable to stockholders and OP unit holders $ 310,716 $ 295,263 Notes: 1. Realized performance income includes fees received related to the achievement of certain performance targets in PECO’s NRP joint venture. Non-GAAP Measures (Cont’d) | 42
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Year Ended December 31, 2022 2021 Calculation of Nareit FFO Attributable to Stockholders and OP Unit Holders Net income $ 54,529 $ 17,233 Adjustments: Depreciation and amortization of real estate assets 232,571 217,564 Impairment of real estate assets 322 6,754 Gain on disposal of property, net (7,517) (30,421) Adjustments related to unconsolidated joint ventures 842 72 Nareit FFO attributable to stockholders and OP unit holders $ 280,747 $ 211,202 Core FFO attributable to stockholders and OP unit holders Nareit FFO attributable to stockholders and OP unit holders $ 280,747 $ 211,202 Adjustments: Depreciation and amortization of corporate assets 3,653 3,869 Change in fair value of earn-out liability 1,809 30,436 Transaction and acquisition expenses 10,551 5,363 Loss on extinguishment or modification of debt and other, net 1,025 3,592 Amortization of unconsolidated joint venture basis differences 220 1,167 Realized performance income (1) (2,742) (675) Core FFO attributable to stockholders and OP unit holders $ 295,263 $ 254,954 Notes: 1. Realized performance income includes fees received related to the achievement of certain performance targets in PECO’s NRP joint venture. Non-GAAP Measures (Cont’d) | 43
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Calculation of EBITDAre Net income $ 12,903 $ 13,729 $ 49,515 $ 48,574 Adjustments: Depreciation and amortization 68,328 58,706 189,706 176,871 Interest expense, net 24,998 21,522 71,954 61,663 Loss (gain) on disposal of property, net 19 (53) 34 (1,070) Federal, state, and local tax expense 446 120 1,047 357 Adjustments related to unconsolidated joint ventures 1,075 918 2,937 2,802 EBITDAre $ 107,769 $ 94,942 $ 315,193 $ 289,197 Calculation of Adjusted EBITDAre EBITDAre $ 107,769 $ 94,942 $ 315,193 $ 289,197 Adjustments: Impairment of investment in third parties - 3,000 - 3,000 Transaction and acquisition expenses 1,181 580 3,501 3,179 Amortization of unconsolidated joint venture basis differences 3 4 8 12 Realized performance income(1) — — — (75) ADJUSTED EBITDAre $ 108,953 $ 98,526 $ 318,702 $ 295,313 Notes: 1. Realized performance income includes fees received related to the achievement of certain performance targets in PECO’s NRP joint venture. Non-GAAP Measures (Cont’d) | 44
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Three Months Ended June 30, 2024 2023 Calculation of EBITDAre Net income $ 16,986 $ 16,209 Adjustments: Depreciation and amortization 61,172 59,667 Interest expense, net 23,621 20,675 Loss (gain) on disposal of property, net 10 (75) Federal, state, and local tax expense 464 119 Adjustments related to unconsolidated joint ventures 934 918 EBITDAre $ 103,187 $ 97,513 Calculation of Adjusted EBITDAre EBITDAre $ 103,187 $ 97,513 Adjustments: Transaction and acquisition expenses 1,146 1,261 Amortization of unconsolidated joint venture basis differences 2 7 ADJUSTED EBITDAre $ 104,335 $ 98,781 Non-GAAP Measures (Cont’d) | 45
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Year Ended December 31, Year Ended December 31, 2023 2022 Calculation of EBITDAre Net income $ 63,762 $ 54,529 Adjustments: Depreciation and amortization 236,443 236,224 Interest expense, net 84,232 71,196 Gain on disposal of property, net (1,110) (7,517) Impairment of real estate assets - 322 Federal, state, and local tax expense 438 806 Adjustments related to unconsolidated joint ventures 3,721 1,987 EBITDAre $ 387,486 $ 357,547 Calculation of Adjusted EBITDAre EBITDAre $ 387,486 $ 357,547 Adjustments: Impairment of investment in third parties 3,000 — Change in fair value of earn-out liability — 1,809 Transaction and acquisition expenses 5,675 10,551 Amortization of unconsolidated joint venture basis differences 17 220 Realized performance income(1) (75) (2,742) ADJUSTED EBITDAre $ 396,103 $ 367,385 Notes: 1. Realized performance income includes fees received related to the achievement of certain performance targets in PECO’s NRP joint venture. Non-GAAP Measures (Cont’d) | 46
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D September 30, 2024 December 31, 2023 Net debt: Total debt, excluding discounts, market adjustments, and deferred financing expenses $ 2,162,993 $ 2,011,093 Less: Cash and cash equivalents 6,950 5,074 TOTAL NET DEBT $ 2,156,043 $ 2,006,019 Enterprise value: Net debt $ 2,156,043 $ 2,006,019 Total equity market capitalization(1)(2) 5,138,063 4,955,480 TOTAL ENTERPRISE VALUE $ 7,294,106 $ 6,961,499 FINANCIAL LEVERAGE RATIOS September 30, 2024 December 31, 2023 Net debt to Adjusted EBITDAre - annualized: Net debt $ 2,156,043 $ 2,006,019 Adjusted EBITDAre - annualized(1) 419,492 396,103 NET DEBT TO ADJUSTED EBITDAre - ANNUALIZED 5.1x 5.1x Net debt to total enterprise value: Net debt $ 2,156,043 $ 2,006,019 Total enterprise value 7,294,106 6,961,499 NET DEBT TO TOTAL ENTERPRISE VALUE 29.6% 28.8% Notes: Top 1. Total equity market capitalization is calculated as diluted shares multiplied by the closing market price per share, which includes 136.3 million and 135.8 million diluted shares as of September 30, 2024 and December 31, 2023, respectively, and the closing market price per share of $37.71 and $36.48 as of September 30, 2024 and December 31, 2023, respectively. 2. Fully diluted shares include common stock and OP units. Notes: Bottom 1. Adjusted EBITDAre is based on a trailing twelve month period. Non-GAAP Measures (Cont’d) | 47
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D June 30, 2024 December 31, 2023 Net debt: Total debt, excluding discounts, market adjustments, and deferred financing expenses $ 2,090,144 $ 2,011,093 Less: Cash and cash equivalents 7,267 5,074 TOTAL NET DEBT $ 2,082,877 $ 2,006,019 Enterprise value: Net debt $ 2,082,877 $ 2,006,019 Total equity market capitalization(1)(2) 4,451,504 4,955,480 TOTAL ENTERPRISE VALUE $ 6,534,381 $ 6,961,499 FINANCIAL LEVERAGE RATIOS June 30, 2024 December 31, 2023 Net debt to Adjusted EBITDAre - annualized: Net debt $ 2,082,877 $ 2,006,019 Adjusted EBITDAre - annualized(1) 409,065 396,103 NET DEBT TO ADJUSTED EBITDAre - ANNUALIZED 5.1x 5.1x Net debt to total enterprise value: Net debt $ 2,082,877 $ 2,006,019 Total enterprise value 6,534,381 6,961,499 NET DEBT TO TOTAL ENTERPRISE VALUE 31.9% 28.8% Notes: Top 1. Total equity market capitalization is calculated as diluted shares multiplied by the closing market price per share, which includes 136.1 million and 135.8 million diluted shares as of June 30, 2024 and December 31, 2023, respectively, and the closing market price per share of $32.71 and $36.48 as of June 30, 2024 and December 31, 2023, respectively. 2. Fully diluted shares include common stock and OP units. Notes: Bottom 1. Adjusted EBITDAre is based on a trailing twelve month period. Non-GAAP Measures (Cont’d) | 48
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D December 31, 2023 December 31, 2022 Net debt: Total debt, excluding discounts, market adjustments, and deferred financing expenses $ 2,011,093 $ 1,937,142 Less: Cash and cash equivalents 5,074 5,740 TOTAL NET DEBT $ 2,006,019 $ 1,931,402 Enterprise value: Net debt $ 2,006,019 $ 1,931,402 Total equity market capitalization(1)(2) 4,955,480 4,178,204 TOTAL ENTERPRISE VALUE $ 6,961,499 $ 6,109,606 FINANCIAL LEVERAGE RATIOS December 31, 2023 December 31, 2022 Net debt to Adjusted EBITDAre - annualized: Net debt $ 2,006,019 $ 1,931,402 Adjusted EBITDAre - annualized(1) 396,103 367,385 NET DEBT TO ADJUSTED EBITDAre - ANNUALIZED 5.1x 5.3x Net debt to total enterprise value: Net debt $ 2,006,019 $ 1,931,402 Total enterprise value 6,961,499 6,109,606 NET DEBT TO TOTAL ENTERPRISE VALUE 28.8% 31.6% Notes: Top 1. Total equity market capitalization is calculated as diluted shares multiplied by the closing market price per share, which includes 135.8 million and 131.2 million diluted shares as of December 31, 2023 and 2022, respectively, and the closing market price per share of $36.48 and $31.84 as of December 31, 2023 and 2022, respectively. 2. Fully diluted shares include common stock and OP units Notes: Bottom 1. Adjusted EBITDAre is based on a trailing twelve month period. Non-GAAP Measures (Cont’d) | 49
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 50 Reconciliation of Net Income to Nareit FFO Per Share and Core FFO Per Share Full Year 2024 Guidance Preliminary Full Year 2025 Guidance (Unaudited) Low End High End Low End High End Net income per share $0.48 $0.50 $0.54 $0.59 Depreciation and amortization of real estate assets $1.85 $1.87 $1.90 $1.92 Adjustments related to unconsolidated joint ventures $0.02 $0.02 $0.03 $0.03 NAREIT FFO / SHARE $2.35 $2.39 $2.47 $2.54 Depreciation and amortization of corporate assets $0.01 $0.01 $0.01 $0.01 Loss on extinguishment or modification of debt and other, net $0.01 $0.01 $0.00 $0.00 Transaction costs and other $0.03 $0.03 $0.04 $0.04 CORE FFO / SHARE $2.40 $2.44 $2.52 $2.59
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Full Year 2024 Earnings Guidance Exhibit Sources: 1. The Company provided updated Full Year 2024 guidance in conjunction with its Q3 2024 earnings press release. 2. Includes the prorated portion owned through the Company’s unconsolidated joint ventures. 3. Represents straight-line rental income and net amortization of above- and below-market leases. | 51 Full Year 2024 Guidance(1) (in thousands, except per share amounts Low End High End Results: Net income per share $0.48 $0.50 Nareit FFO per share $2.35 $2.39 Core FFO per share $2.40 $2.44 Same-Center NOI growth 3.50% 4.00% Portfolio Activity: Acquisitions (net of dispositions) (2) $275,000 $325,000 Other: Interest expense, net $96,000 $99,000 G&A expense $45,000 $47,000 Non-cash revenue items(3) $15,000 $19,000 Adjustments for collectibility $4,000 $5,000
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GROC ERY C ENTERED . C O M M U N I T YFOC USE D PECO | N A S D A Q L I S T E D GROC ERY C ENTERED . C O M M U N I T YFOC USE D Preliminary Full Year 2025 Earnings Guidance Exhibit Sources: 1. Includes the prorated portion owned through the Company’s unconsolidated joint ventures. 2. Represents straight-line rental income and net amortization of above- and below-market leases. | 52 Preliminary Full Year 2025 Guidance (in thousands, except per share amounts Low End High End Results: Net income per share $0.54 $0.59 Nareit FFO per share $2.47 $2.54 Core FFO per share $2.52 $2.59 Same-Center NOI growth 3.00% 3.50% Portfolio Activity: Acquisitions(1) $350,000 $450,000 Other: Interest expense, net $111,000 $121,000 G&A expense $45,000 $49,000 Non-cash revenue items(2) $18,000 $20,000 Adjustments for collectibility $4,000 $8,000