Phillips Edison & Company Upgraded by Moody’s to ‘Baa2’ with Stable Outlook
Phillips Edison & Company (Nasdaq: PECO) has received a credit rating upgrade from Moody's Ratings. The company's issuer credit rating has been raised to 'Baa2' from 'Baa3', with a stable outlook. Moody's cited PECO's high-quality portfolio of grocery-anchored shopping centers, resilient operating cash flows, and moderate leverage metrics as key factors in the upgrade.
The rating agency highlighted PECO's consistently high portfolio lease rate, averaging 97.5% in the last four quarters, and solid leasing spreads of 28% during the same period. Moody's expects PECO to maintain strong operating performance despite the slowing macroeconomic environment, due to its portfolio mix.
Phillips Edison & Company (Nasdaq: PECO) ha ricevuto un aggiornamento del rating creditizio da parte di Moody's Ratings. Il rating creditizio dell'emittente è stato innalzato a 'Baa2' da 'Baa3', con un outlook stabile. Moody's ha citato il portafoglio di alta qualità di PECO di centri commerciali ancorati a negozi di alimentari, flussi di cassa operativi resilienti e metriche di indebitamento moderate come fattori chiave per l'aggiornamento.
L'agenzia di rating ha evidenziato il tasso di locazione costantemente elevato del portafoglio di PECO, con una media del 97,5% negli ultimi quattro trimestri, e solidità degli spreads di locazione del 28% nello stesso periodo. Moody's si aspetta che PECO mantenga forti performance operative nonostante il rallentamento dell'ambiente macroeconomico, grazie alla sua composizione di portafoglio.
Phillips Edison & Company (Nasdaq: PECO) ha recibido una actualización de su calificación crediticia por parte de Moody's Ratings. La calificación crediticia del emisor ha sido elevada a 'Baa2' desde 'Baa3', con una perspectiva estable. Moody's citó el portafolio de alta calidad de PECO de centros comerciales anclados a supermercados, flujos de caja operativos resilientes y métricas de apalancamiento moderadas como factores clave para la mejora.
La agencia de calificación destacó el tasa de ocupación consistentemente alta del portafolio de PECO, que promedió un 97.5% en los últimos cuatro trimestres, y spreads de arrendamiento sólidos del 28% durante el mismo período. Moody's espera que PECO mantenga un fuerte rendimiento operativo a pesar del entorno macroeconómico en desaceleración, gracias a su mezcla de portafolio.
필립스 에디슨 & 회사 (Nasdaq: PECO)는 무디스 등급 기관으로부터 신용 등급 상향 조정을 받았습니다. 회사의 발행자 신용 등급은 'Baa3'에서 'Baa2'로 상향 조정되었으며, 전망은 안정적으로 유지됩니다. 무디스는 PECO의 고품질 포트폴리오인 식료품 매장이 있는 쇼핑 센터, 견고한 운영 현금 흐름, 중간 수준의 레버리지 지표를 이 등급 상향 조정의 핵심 요소로 언급했습니다.
신용 평가 기관은 PECO의 일관되게 높은 포트폴리오 임대율을 강조했으며, 이는 지난 4분기 평균 97.5%에 달하고, 같은 기간 동안 견고한 임대 스프레드가 28%라고 밝혔습니다. 무디스는 PECO가 포트폴리오 구성 덕분에 둔화되는 거시 경제 환경에도 불구하고 강력한 운영 성과를 유지할 것으로 기대하고 있습니다.
Phillips Edison & Company (Nasdaq: PECO) a reçu une mise à niveau de sa note de crédit par Moody's Ratings. La note de crédit de l'émetteur a été relevée à 'Baa2' depuis 'Baa3', avec une perspective stable. Moody's a cité le portefeuille de haute qualité de PECO de centres commerciaux ancrés par des épiceries, des flux de trésorerie d'exploitation résilients et des indicateurs d'endettement modérés comme des éléments clés de cette mise à niveau.
L'agence de notation a mis en avant le taux de location constamment élevé du portefeuille de PECO, qui a atteint une moyenne de 97,5% au cours des quatre derniers trimestres, et des spreads de location solides de 28% pendant la même période. Moody's s'attend à ce que PECO maintienne une forte performance opérationnelle malgré le ralentissement de l'environnement macroéconomique, grâce à la composition de son portefeuille.
Phillips Edison & Company (Nasdaq: PECO) hat von Moody's Ratings eine Heraufstufung der Kreditbewertung erhalten. Die Emittenten-Kreditbewertung des Unternehmens wurde von 'Baa3' auf 'Baa2' mit stabiler Aussicht angehoben. Moody's nannte das hochwertige Portfolio von PECO mit lebensmittelgeführten Einkaufszentren, resiliente Betriebs-Cashflows und moderate Verschuldungskennzahlen als Schlüsselfaktoren für die Heraufstufung.
Die Ratingagentur hob die ständig hohe Mietquote des Portfolios von PECO von durchschnittlich 97,5% in den letzten vier Quartalen sowie solide Mietspreads von 28% im gleichen Zeitraum hervor. Moody's erwartet, dass PECO trotz des verlangsamten makroökonomischen Umfelds eine starke operative Leistung aufrechterhalten wird, dank der Zusammensetzung ihres Portfolios.
- Credit rating upgraded to 'Baa2' from 'Baa3' by Moody's
- High portfolio lease rate averaging 97.5% in the last four quarters
- Solid leasing spreads averaging 28% in the last four quarters
- Expectation of continued strong operating performance despite slowing macroeconomic environment
- None.
Insights
Moody's upgrade of PECO's credit rating to 'Baa2' from 'Baa3' is a significant positive development for the company. This upgrade reflects PECO's strong financial position and resilient business model. The stable outlook suggests confidence in PECO's ability to maintain its performance even in a challenging economic environment. Key factors supporting this upgrade include:
- High-quality portfolio of grocery-anchored centers
- Consistently high portfolio lease rate (
97.5% ) - Impressive leasing spreads (
28% ) - Moderate leverage and sound fixed charge coverage
This upgrade could potentially lead to lower borrowing costs for PECO, enhancing its financial flexibility and profitability. Investors should view this as a strong indicator of PECO's financial health and management effectiveness.
PECO's success in maintaining high occupancy rates and strong leasing spreads amidst a challenging retail environment is noteworthy. The
Despite Moody's acknowledgment of a slowing macroeconomic environment, their stable outlook for PECO is telling. It suggests that grocery-anchored retail centers may serve as a defensive play in economic downturns. Consumer staples, particularly groceries, tend to be less affected by economic cycles compared to discretionary retail. However, investors should remain cautious. While PECO's portfolio appears resilient, broader economic pressures could still impact consumer spending and, consequently, PECO's tenants. The company's ability to maintain its strong performance metrics in the face of these headwinds will be crucial. Keep an eye on future earnings reports for any signs of weakness in tenant sales or occupancy rates as leading indicators of potential challenges.
CINCINNATI, Sept. 09, 2024 (GLOBE NEWSWIRE) -- Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO” or the “Company”), one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers, today announced that Moody's Ratings ("Moody's") upgraded its issuer credit rating for PECO and the Company’s operating partnership, Phillips Edison Grocery Center Operating Partnership I L.P., to ‘Baa2’ from ‘Baa3’, with a stable outlook.
In its public announcement, Moody’s noted: “PECO's Baa2 ratings reflect its high-quality portfolio of open-air neighborhood and community shopping centers, the resilient operating cash flows generated by its grocery-anchored centers, moderate leverage metrics, sound fixed charge coverage and good liquidity.”
Moody’s added: “PECO's portfolio lease rate has been consistently high, averaging
Jeff Edison, Chairman and Chief Executive Officer of PECO stated: “The PECO team is pleased with the recent upgrades from both Moody’s and S&P, which speak to the continued strength of our operating performance. The PECO team is well positioned to continue to deliver strong earnings growth, market-leading operating metrics and long-term value creation.”
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 grocery-anchored neighborhood 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, 2024, PECO managed 306 shopping centers, including 286 wholly-owned centers comprising 32.6 million square feet across 31 states and shopping centers owned in two institutional joint ventures. PECO is 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
FAQ
What is Phillips Edison & Company's new credit rating from Moody's as of September 2024?
What factors contributed to PECO's credit rating upgrade by Moody's in 2024?
What was PECO's average portfolio lease rate in the last four quarters before September 2024?
How does Moody's expect PECO (Nasdaq: PECO) to perform in the near future despite the slowing macroeconomic environment?
