Phillips Edison & Company Declares Monthly Dividend Distributions
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Insights
The announcement of monthly dividend distributions by Phillips Edison & Company, Inc. (PECO) is a positive signal to investors, reflecting the company's current financial health and its ability to generate sufficient cash flow. Dividends are often seen as a sign of a company's stability and maturity, as well as management's confidence in the business's ongoing profitability. The declared amount of $0.0975 per share is a critical figure for investors as it influences the dividend yield, a key metric used to assess the return on investment for a stock.
It is important to analyze PECO's payout ratio, which is the percentage of earnings paid to shareholders in the form of dividends. A sustainable payout ratio indicates that the company can continue to pay dividends at the current rate without compromising its financial position. Additionally, investors should consider the dividend's growth rate, as a consistent increase could suggest a robust and expanding business model, particularly within the grocery-anchored neighborhood shopping centers sector, which tends to be resilient to economic downturns due to the essential nature of groceries.
PECO's focus on grocery-anchored neighborhood shopping centers is a strategic choice, as these properties are typically less volatile than other types of retail real estate. The presence of a grocery store serves as a natural anchor tenant that drives foot traffic and supports the performance of adjacent smaller retailers. From a real estate investment perspective, this can lead to more stable occupancy rates and potentially lower tenant turnover, which are crucial factors for the company's revenue stability.
Investors should consider the broader trends in retail real estate, such as the shift towards e-commerce and the impact of economic cycles on consumer spending. However, grocery-anchored centers may be somewhat insulated from these trends, which could make PECO's investment proposition more attractive. The announcement of dividends could also suggest that PECO's portfolio of properties is performing well, with effective management and a strong tenant mix contributing to reliable income streams.
For investors, understanding the tax implications of dividend distributions is essential. The fact that operating partnership unit holders receive distributions at the same rate as common stockholders, subject to the required tax withholding, is a notable detail. This indicates that PECO's structure includes a partnership component, which can have different tax considerations compared to common stock dividends.
Investors should be aware that dividends are typically taxed at a different rate than regular income, depending on various factors such as the investor's income bracket and the holding period of the stock. Additionally, the structure of the distribution to operating partnership unit holders may have implications for the filing of taxes, including the potential issuance of Schedule K-1 forms, which report income from partnerships. Consulting with a tax professional can help investors navigate these complexities and understand the after-tax return on their investment in PECO.
CINCINNATI, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO”), one of the nation’s largest owners and operators of grocery-anchored neighborhood shopping centers, today announced that its Board of Directors declared monthly dividend distributions of
Operating partnership unit holders receive distributions at the same rate as common stockholders, subject to the required tax withholding.
Connect with PECO
For additional information, please visit https://www.phillipsedison.com/
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About Phillips Edison & Company
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 December 31, 2023, PECO managed 301 shopping centers, including 281 wholly-owned centers comprising 32.2 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 Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 press release. 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 the risk factors and other risks and uncertainties described in the Company’s 2023 Annual Report on Form 10-K, filed with the SEC on February 12, 2024, 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. 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.
Investors
Kimberly Green, Head of Investor Relations
(513) 692-3399, kgreen@phillipsedison.com
Media
Cherilyn Megill, Chief Marketing Officer
(801) 415-4373, cmegill@phillipsedison.com
FAQ
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