Phillips Edison & Company Upgraded by S&P to ‘BBB’ with Stable Outlook
Phillips Edison & Company (PECO) has received a credit rating upgrade from S&P Global Ratings to 'BBB' from 'BBB-' with a stable outlook. This upgrade reflects PECO's solid operating performance, conservative balance sheet management, and reduced exposure to floating-rate debt. S&P expects PECO's fixed-charge coverage ratio to improve due to anticipated interest rate cuts.
PECO's financial policy is supported by a prudent investment strategy, with annual net acquisitions between $200-300 million and redevelopment spending of $40-50 million. The company has funded investments in a leverage-neutral manner using free cash flow, dispositions, equity, and debt. PECO's CEO, Jeff Edison, attributes the company's success to its focused strategy of owning high-quality, grocery-anchored neighborhood shopping centers in suburban markets.
Phillips Edison & Company (PECO) ha ricevuto un upgrade del rating creditizio da S&P Global Ratings, passando da 'BBB-' a 'BBB' con un outlook stabile. Questo upgrade riflette la solida performance operativa di PECO, una gestione prudente del bilancio e una ridotta esposizione a debito a tasso variabile. S&P si aspetta che il rapporto di copertura dei costi fissi di PECO migliori grazie ai previsti tagli ai tassi d'interesse.
La politica finanziaria di PECO è supportata da una strategia di investimento prudente, con acquisizioni nette annuali comprese tra 200 e 300 milioni di dollari e spese di riqualificazione tra 40 e 50 milioni di dollari. L'azienda ha finanziato gli investimenti in modo neutro rispetto al leverage, utilizzando il flusso di cassa libero, cessioni, equity e debito. Il CEO di PECO, Jeff Edison, attribuisce il successo della compagnia alla sua strategia mirata di possedere centri commerciali di alta qualità ancorati a negozi di alimentari nei mercati suburbani.
Phillips Edison & Company (PECO) ha recibido una mejora en su calificación crediticia de parte de S&P Global Ratings, pasando de 'BBB-' a 'BBB' con una perspectiva estable. Esta mejora refleja el sólido desempeño operativo de PECO, la gestión conservadora de su balance y una menor exposición a deuda a tasa variable. S&P espera que el ratio de cobertura de costos fijos de PECO mejore debido a los recortes anticipados en las tasas de interés.
La política financiera de PECO está respaldada por una estrategia de inversión prudente, con adquisiciones netas anuales entre 200 y 300 millones de dólares y gastos de reurbanización de entre 40 y 50 millones de dólares. La compañía ha financiado las inversiones de manera neutral en cuanto a apalancamiento, utilizando flujo de caja libre, disposiciones, capital y deuda. El CEO de PECO, Jeff Edison, atribuye el éxito de la compañía a su estrategia enfocada en poseer centros comerciales de alta calidad anclados a supermercados en mercados suburbano.
필립스 에디슨 & 컴퍼니(PECO)는 S&P 글로벌 레이팅스에서 'BBB-'에서 'BBB'로 신용 등급이 상향 조정되었고, 안정적인 전망을 받았습니다. 이번 등급 상향은 PECO의 탄탄한 운영 성과, 보수적인 재무 관리, 변동금리 부채에 대한 노출 감소를 반영합니다. S&P는 예상되는 금리 인하로 인해 PECO의 고정비 보장 비율이 개선될 것으로 기대하고 있습니다.
PECO의 재무 정책은 연간 2억에서 3억 달러의 순 인수와 4000만에서 5000만 달러의 재개발 지출을 포함한 신중한 투자 전략에 의해 뒷받침되고 있습니다. 이 회사는 유동자금, 처분, 지분 및 부채를 사용하여 레버리지 중립적인 방식으로 투자를 자금 조달했습니다. PECO의 CEO인 제프 에디슨은 회사 성공의 비결을 고품질 식료품 상점이 중심에 있는 지역 상업 센터를 소유하는 집중적인 전략으로 돌리고 있습니다.
Phillips Edison & Company (PECO) a reçu une mise à niveau de sa note de crédit par S&P Global Ratings, passant de 'BBB-' à 'BBB' avec une perspective stable. Cette amélioration reflète la solide performance opérationnelle de PECO, une gestion prudente de son bilan et une exposition réduite à la dette à taux variable. S&P s'attend à ce que le ratio de couverture des coûts fixes de PECO s'améliore en raison des baisses de taux d'intérêt anticipées.
La politique financière de PECO est soutenue par une stratégie d'investissement prudente, avec des acquisitions nettes annuelles comprises entre 200 et 300 millions de dollars et des dépenses de réaménagement de 40 à 50 millions de dollars. L'entreprise a financé ses investissements de manière neutre en matière de levier, en utilisant le flux de trésorerie libre, les cessions, les capitaux propres et la dette. Le PDG de PECO, Jeff Edison, attribue le succès de l'entreprise à sa stratégie ciblée qui consiste à posséder des centres commerciaux de quartier de haute qualité, ancrés par des supermarchés, sur des marchés suburbains.
Phillips Edison & Company (PECO) hat von S&P Global Ratings ein Upgrade der Kreditbewertung von 'BBB-' auf 'BBB' mit einem stabilen Ausblick erhalten. Dieses Upgrade spiegelt die solide operative Leistung von PECO, das konservative Management der Bilanz und die reduzierte Exposition gegenüber variabel verzinslichen Schulden wider. S&P erwartet, dass das Verhältnis der festen Kostenabdeckung von PECO aufgrund geplanter Zinssenkungen verbessert wird.
Die Finanzpolitik von PECO wird durch eine umsichtige Investitionsstrategie gestützt, mit jährlichen Nettoakquisitionen zwischen 200 und 300 Millionen Dollar und Ausgaben für die Neugestaltung von 40 bis 50 Millionen Dollar. Das Unternehmen hat die Investitionen in einer leverage-neutralen Weise finanziert, wobei es auf freien Cashflow, Veräußerungen, Eigenkapital und Schulden zurückgreift. Der CEO von PECO, Jeff Edison, führt den Erfolg des Unternehmens auf die fokussierte Strategie zurück, hochwertige, lebensmitteldominierte Nachbarschaftszentren in Vorstadtmärkten zu besitzen.
- Credit rating upgrade from S&P to 'BBB' from 'BBB-'
- Reduced exposure to floating-rate debt (approximately 9% of total debt)
- Expected improvement in fixed-charge coverage ratio
- Prudent investment strategy with $200-300 million annual net acquisitions
- Leverage-neutral funding approach for investments
- None.
Insights
S&P's upgrade of PECO's credit rating to 'BBB' from 'BBB-' is a significant positive development for the company. This upgrade reflects PECO's improved financial stability and conservative balance sheet management. The reduction in floating-rate debt exposure to
The expected improvement in PECO's fixed-charge coverage ratio, coupled with their disciplined investment strategy of
PECO's focus on grocery-anchored neighborhood shopping centers in suburban markets is a strategic advantage in the current retail landscape. These centers have proven resilient, offering essential services and daily necessities, which provide a stable tenant base and consistent foot traffic. The company's ability to maintain solid operating performance and market-leading metrics in this niche suggests a robust business model.
The emphasis on right-sized, high-quality centers aligns well with evolving consumer preferences and the trend towards localized shopping experiences. This positioning, combined with PECO's operational expertise, could provide a competitive edge in attracting and retaining tenants, potentially leading to higher occupancy rates and stronger rental income compared to peers in the broader retail real estate sector.
CINCINNATI, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO” or the “Company”), one of the nation’s largest owners and operators of grocery-anchored neighborhood shopping centers, today announced that S&P Global Ratings (“S&P”) upgraded its issuer credit rating for PECO and the Company’s operating partnership, Phillips Edison Grocery Center Operating Partnership I L.P., to ‘BBB’ from ‘BBB-’, with a stable outlook.
In its public announcement, S&P noted: “We expect Phillips Edison's operating performance will remain solid over the next two years supported by its grocery-anchored portfolio and healthy retail fundamentals. Phillips Edison has demonstrated a commitment to maintaining a conservative balance sheet. The Company has significantly reduced its exposure to floating-rate debt (approximately
S&P added: “The Company's financial policy is supported by its prudent investment strategy, with net acquisitions of between
Jeff Edison, Chairman and Chief Executive Officer of PECO stated: “The PECO team is pleased to see S&P acknowledge our commitment to operational excellence and balance sheet strength. The continued strength of our operating performance is attributable to our differentiated and focused strategy of owning right-sized, high-quality, grocery-anchored neighborhood shopping centers, the PECO team’s ability to drive results at the property level and the many advantages of the suburban markets where we operate our centers. The PECO team is well positioned to continue to deliver solid 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 was Phillips Edison & Company's (PECO) new credit rating from S&P Global Ratings?
How much is PECO's exposure to floating-rate debt as of June 30, 2024?
What is PECO's annual net acquisition target according to the press release?
How much does PECO plan to spend annually on redevelopment?
