Slides
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March 2025 Citi's 2025 Global Property CEO Conference
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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 Source: Company data as of December 31, 2024; Dividend yield as of December 31, 2024 and is based on an annualized rate of $1.23 per share 1. For non-GAAP reconciliations, refer to the Company’s latest quarterly financial supplement or Form 10 -K 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 GROC ERY C ENTERED . C O M M U N I T YFOC USE D | 4 ✓ ✓ ✓ ✓ ✓ ✓ Source: Company data as of December 31, 2024 1. For non-GAAP reconciliations, refer to the Company’s latest quarterly financial supplement or Form 10 -K ✓ ✓ ✓ ✓ ✓ ✓ 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 | 5 PECO Continues to Deliver Market-Leading Operating and Financial Results • • • • • • • • • • Note: Unless otherwise noted peers include BRX, KIM, KRG, REG, FRT and AKR Sources: As reported in PECO and Peer company filings unless otherwise noted 1. Other companies may define/calculate differently than PECO. Accordingly, such data for these companies and PECO may not be comparable 2. Includes exercise of options 3. As of March 31, 2024 4. Excludes M&A activity 5. Peer group include REG, BRX, KIM and KRG 6. Peer group includes 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 | 6 . . Note: Unless otherwise noted peers include BRX, KIM, KRG, REG, FRT and AKR Sources: As reported in December 31, 2024 PECO and Peer company filings unless otherwise noted 1. Includes exercise of options 2. Other companies may define/calculate differently than PECO. Accordingly, such data for these companies and PECO may not be comparable 3. Peer group includes BRX, KRG and IVT 4. Company filings as of December 31, 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 | 7 PECO’s Cycle-Tested Management Team 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 • • • | 7
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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 How PECO Defines Quality 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 | 9 PECO Delivers Regular Income and Strong Returns Sources: 1. Guidance provided as of February 6, 2025 2. Company filings as of December 31, 2024 3. Calculated from June 2021 through December 2024 4. For non-GAAP reconciliations, refer to the Company’s latest quarterly financial supplement or Form 10 -K 5. Multiple is based on share price at market close on December 31, 2024 6. Dividend yield as of December 31, 2024 and is based on an annualized rate of $1.23 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 $1.02 $1.08 $1.12 $1.17 $1.23 2021 2022 2023 2024 2025 | 10 PECO’s Delivers Sustainable Dividend Growth Source: 1. Annualized dividend rates are calculated based on the dividend rates effective from September to September for each year pres ented, except for 2021, which is calculated from October to October 2. Projection assumes a continuation of the current dividend and remains subject to various factors, including approval by the B oard Historical and Projected Dividend Distributions(1)
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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 11 Grocery-Anchored Portfolio
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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 • ‒ • • • • • • • • ‒ ‒ • • Sources: 1. % of ABR as of December 31, 2024 2. The Food Industry Association U.S. Grocery Shopper Trends 2023 3. According to Placer.ai, twelve months ended December 31, 2024 4. Estimate as of December 31, 2024 5. Brick Meets Click / Mercatus Grocery Survey January 11, 2024 6. Brick Meets Click January 30, 2023: 2023 5 -year Forecast Grocery-Anchored Centers Benefit from Macroeconomic Trends that Provide Strong Tailwinds for PECO | 12
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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 | 13 • • • • Strategic Presence in Suburban Markets Sources: 1. Based on total ABR in market for wholly-owned portfolio as of December 31, 2024 2. Placer.ai based on population growth in U.S. cities since 2018
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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 $88 $81 $76 67 63 58 | 14 AVERAGE 3 -MILE POPULATION (thousands) AVERAGE 3 -MILE MEDIAN HOUSEHOLD INCOME (thousands) PECO Aligns with Leading Grocer Demographics Sources: Synergos Technologies, Inc, Calculated using KLI Retrieval as of December 31, 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 2019 2020 2021 2022 2023 2024 | 15 PECO GROCER SALES PSF GROWTH (4) Sources: 1. Based on the most recently reported sales data available 2. Company data as of December 31, 2024 3. Most recently reported sales data reported by neighbors and 3rd party data sources 4. Includes PECO grocers who reported sales PSF in both 2023 through December 31, 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 | 16 • • • • 73% 27% 9% 4% 35% 27% 13% 12% Source: Company data as of December 31, 2024 Total portfolio ABR; Includes the prorated portion owned through the Company’s unconsolidated joint ventures. Local Neighbors
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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 Math Behind Local Neighbors • • • • Source: Company data as of December 31, 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 | 18 Strong Local Neighbors
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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 Retailers Growing with PECO
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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 Suburban Market Advantage • • • • • Source: Placer.ai
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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 Suburban Market Advantage • • • Source: Placer.ai – updated as of January 31, 2025 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 Note: Trailing twelve months visits per month by market size (February 2024 – January 2025)
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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 Highly Diversified Neighbor Mix Led by Top Grocers and Necessity-Based Retailers Grocer Investment Grade(2) Sources: 1. % of ABR as of December 31, 2024 2. Investment Grade ratings represent the credit rating of the Company’s Neighbors, their subsidiaries or affiliated companies. Actual ratings based on S&P or Moody’s are used • • • • •
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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 23 Investments
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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 | 24 Strong Acquisition Volume Source: Company data as of December 31, 2024 1. Acquisition through the Company’s Necessity Retail Venture LLC joint venture. Contract price shown at PECO 20% share 2. Acquisition through the Company’s Neighborhood Grocery Catalyst Fund LLC joint venture. Contract price shown at PECO 31% shar e
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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 | 25 Strong Acquisition Volume Source: Company data as of February 25, 2025 1. Acquisition through the Company’s Necessity Retail Venture LLC joint venture. Contract price 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 | 26 Ground-Up Development and Repositioning Activity • • • Source: 1. As of December 31, 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 27 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 • • • • | 28 PECO is Among the Lowest Levered Shopping Center REITs Sources: 1. As reported in December 31, 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. For non -GAAP reconciliations, refer to the Company’s latest quarterly financial supplement or Form 10-K 2. Long-term issuer ratings, as of February 26, 2025 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 | 29 PECO’s Strong and Flexible Balance Sheet Position • • • • Source: 1. Pro forma as of December 31, 2024. Revolver capacity is net of letters of credit. Reflects the amended revolver and includes options to extend both the revolver and term loans 2. For non-GAAP reconciliations, refer to the Company’s latest quarterly financial supplement or Form 10 -K • • • • • • $37.6 $1.9 $200.6 $17.4 $0.8 $200.8 $3.4 $100.0 $323.0 $161.8 $40.0 $21.1 $350.0 $350.0 $350.0 $938.9 $0.0 $250.0 $500.0 $750.0 $1,000.0 $1,250.0 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
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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 30 2025 Earnings Guidance
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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 | 31 2025 Earnings Guidance Summary 2025 Guidance Net Income / Share $0.54 - $0.59 Nareit FFO / Share $2.47 - $2.54 Core FFO / Share $2.52 - $2.59 Same-Center NOI Growth 3.00% - 3.50% Acquisitions, gross(1) $350.0 - $450.0 Interest expense, net $111.0 - $121.0 G&A expense $45.0 - $49.0 Non-cash revenue items(2) $18.0 - $20.0 Adjustments for collectibility $4.0 - $8.0 PECO’s Full Year 2025 Earnings Guidance – Provided as of February 6, 2025 All figures in millions, except per share data FFO / Share Reconciliation The following table provides a reconciliation of the range of PECO’s 2025 estimated net income to estimated Nareit FFO and Core FFO: • Nareit FFO / share growth of 5.7% at the midpoint • Core FFO / share growth of 5.1% at the midpoint • We expect same-center NOI growth to be aided by PECO’s 2024 leasing activity, favorable rent spreads and PECO’s development and redevelopment activity Updated Guidance (Unaudited) Low End High End Net income per common share $0.54 $0.59 Depreciation and amortization of real estate assets $1.90 $1.92 Adjustments related to unconsolidated joint ventures $0.03 $0.03 Nareit FFO per common share $2.47 $2.54 Depreciation and amortization of corporate assets $0.01 $0.01 Transaction costs and other $0.04 $0.04 Core FFO per common share $2.52 $2.59 The Company does not provide a reconciliation for same-center NOI estimates on a forward-looking basis because it is unable to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to our results without unreasonable effort. 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 32 Performance and Long-Term Growth
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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 | 33 PECO’s Cycle-Tested Performance 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 LEADING PERFORMANCE • • • Sources: Company data | 33
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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 | 34| 34 PECO’s Cycle-Tested Performance 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 LEADING PERFORMANCE • • Sources: 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 | 35| 35GROC 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 Strong Operating Environment LEADING PERFORMANCE Source: Company data as of December 31, 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 Long Term Growth Beyond Occupancy | 36 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 | 37 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 | 38 PECO’s Investments Enhance Long-Term Value
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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 | 39 PECO Delivers Higher Same-Center NOI Growth Over Time with Lower Capex Sources: 1. As reported in annual filings. Other companies may define/calculate differently than PECO. Accordingly, such data for these c ompanies and PECO may not be comparable 2. For non-GAAP reconciliations, refer to the Company’s quarterly financial supplement or Form 10 -K 3. Green Street Strip Center Insights - April 2024 Note: Unless otherwise noted 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 | 40 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| 41 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 | 42 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 43 Corporate Responsibility
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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 | 44 Corporate Responsibility and Sustainability Source: www.phillipsedison.com/corporate-responsibility
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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 45 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 | 46 Glossary of Terms