CINCINNATI, Feb. 05, 2026 (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 reported financial and operating results for the fourth quarter and full year ended December 31, 2025 and provided guidance for 2026. For the fourth quarter and full year ended December 31, 2025, net income attributable to stockholders was $47.5 million, or $0.38 per diluted share, and $111.3 million, or $0.89 per diluted share, respectively.
Highlights for the Fourth Quarter, Full Year and Subsequent
-- Reported Nareit FFO of $88.8 million, or $0.64 per diluted share, for the
fourth quarter
-- Reported Core FFO of $91.1 million, or $0.66 per diluted share, for the
fourth quarter
-- Generated Nareit FFO per share of $2.54 for the full year, or 7.2% growth
over 2024
-- Generated Core FFO per share of $2.60 for the full year, or 7.0% growth
over 2024
-- Increased same-center NOI year-over-year by 3.2% for the fourth quarter,
and increased same-center NOI by 3.8% for the full year
-- Reported strong leased portfolio occupancy of 97.3% and same-center
leased portfolio occupancy of 97.6%
-- Increased leased inline occupancy and same-center leased inline occupancy
to a record-high 95.1%
-- Executed portfolio comparable new leases at a rent spread of 34.3% and
inline comparable new leases at a rent spread of 27.5% during the fourth
quarter
-- Executed portfolio comparable renewal leases at a rent spread of 20.0%
and inline comparable renewal leases at a rent spread of 19.8% during the
fourth quarter
-- Acquired $395.5 million in assets at PECO's total prorated share for the
full year, which included 18 shopping centers, an outparcel and land for
future development
-- Sold $145.4 million in assets at PECO's total prorated share for the full
year, which included nine shopping centers and development land
-- Subsequent to quarter end, acquired $77.0 million in assets, which
included two shopping centers and land for future development
Management Commentary
Jeff Edison, Chairman and Chief Executive Officer of PECO, stated: "2025 was a strong year for PECO, and we enter 2026 with good momentum. Retailer demand remains strong for well-located, grocery-anchored shopping centers. In 2025, the PECO team delivered Nareit FFO per share growth of 7.2%, Core FFO per share growth of 7.0% and Same-Center NOI growth of 3.8%. Our strong 2026 guidance is consistent with our long-term targets for Same-Center NOI growth in a range of 3% to 4% and Nareit FFO per share and Core FFO per share growth in the mid-to-high single digits. We are excited about 2026 and are confident in our ability to deliver solid growth well beyond 2026."
Financial Results
Net Income
Fourth quarter 2025 net income attributable to stockholders totaled $47.5 million, or $0.38 per diluted share, compared to net income of $18.1 million, or $0.15 per diluted share, during the fourth quarter of 2024.
For the year ended December 31, 2025, net income attributable to stockholders totaled $111.3 million, or $0.89 per diluted share, compared to $62.7 million, or $0.51 per diluted share, during the year ended December 31, 2024.
Nareit FFO
Fourth quarter 2025 funds from operations attributable to stockholders and operating partnership ("OP") unit holders as defined by Nareit ("Nareit FFO") increased 5.9% to $88.8 million, or $0.64 per diluted share, compared to $83.8 million, or $0.61 per diluted share, during the fourth quarter of 2024.
For the year ended December 31, 2025, Nareit FFO increased 9.1% to $353.1 million, or $2.54 per diluted share, compared to $323.8 million, or $2.37 per diluted share, during the year ended December 31, 2024.
Core FFO
Fourth quarter 2025 core funds from operations attributable to stockholders and OP unit holders ("Core FFO") increased 6.2% to $91.1 million, or $0.66 per diluted share, compared to $85.8 million, or $0.62 per diluted share, during the fourth quarter of 2024.
For the year ended December 31, 2025, Core FFO increased 8.7% to $360.7 million, or $2.60 per diluted share, compared to $331.8 million, or $2.43 per diluted share, during the year ended December 31, 2024.
Same-Center NOI
Fourth quarter 2025 same-center net operating income ("NOI") increased 3.2% to $115.9 million, compared to $112.3 million during the fourth quarter of 2024.
For the year ended December 31, 2025, same-center NOI increased 3.8% to $454.7 million, compared to $438.1 million during the year ended December 31, 2024.
Portfolio Overview
Portfolio Statistics
As of December 31, 2025, PECO's wholly-owned portfolio consisted of 297 properties, totaling approximately 33.5 million square feet. This compared to 294 properties, totaling approximately 33.3 million square feet, as of December 31, 2024.
Leased portfolio occupancy remained high at 97.3% at December 31, 2025, compared to 97.7% at December 31, 2024. Same-center leased portfolio occupancy remained strong at 97.6% as of December 31, 2025, compared to 97.8% as of December 31, 2024.
Leased anchor occupancy remained strong at 98.7% as of December 31, 2025, compared to 99.1% at December 31, 2024. Same-center leased anchor occupancy was 99.0% as of December 31, 2025, compared to 99.3% as of December 31, 2024.
Leased inline occupancy increased to a record-high 95.1% as of December 31, 2025, compared to 95.0% at December 31, 2024. Same-center leased inline occupancy increased to a record-high 95.1% as of December 31, 2025, compared to 95.0% as of December 31, 2024.
Leasing Activity
During the fourth quarter of 2025, 246 leases were executed totaling approximately 1.4 million square feet. This compared to 231 leases executed totaling approximately 1.4 million square feet during the fourth quarter of 2024.
For the year ended December 31, 2025, 1,026 leases were executed totaling approximately 6.0 million square feet. This compared to 1,021 leases executed totaling approximately 6.0 million square feet during the same period in 2024.
During the fourth quarter of 2025, comparable rent spreads, which compare the percentage increase of new or renewal leases to the expiring lease of a unit that was occupied within the past twelve months, were 34.3% for new leases, 20.0% for renewal leases and 24.5% combined.
Comparable rent spreads during the year ended December 31, 2025 were 30.9% for new leases, a record-high 20.7% for renewal leases and 23.3% combined.
Transaction Activity - Wholly-Owned
During the fourth quarter of 2025, the Company acquired $76.1 million in assets, which included two shopping centers, an outparcel and land for future development. The Company expects to drive value in these assets through occupancy increases and rent growth, as well as potential future development of ground-up outparcel retail spaces. During the same period, the Company sold $111.2 million in assets, which included seven shopping centers. The fourth quarter 2025 acquisitions consisted of:
-- Bel Air Town Center, a 77,817 square foot Everyday Retail center located
in a Baltimore, Maryland suburb.
-- Surprise Lake Square, a 132,616 square foot shopping center anchored by
Safeway located in a Seattle, Washington suburb.
During the year ended December 31, 2025, the Company acquired $356.9 million in assets, which included 13 shopping centers, an outparcel and land for future development. During the same period, $145.3 million in assets were sold, which included nine shopping centers and one land parcel.
Subsequent to quarter end, the Company acquired $77.0 million in assets, which included two shopping centers and land for future development. Acquisitions completed included:
-- The Village at Indian Wells, a 105,177 square foot shopping center
anchored by Sprouts located in a Palm Springs, California suburb.
-- Creekside Park Village Green, a 74,641 square foot shopping center
anchored by H-E-B located in a Houston, Texas suburb.
Transaction Activity - Joint Ventures
During the fourth quarter of 2025, the Company acquired $17.7 million in assets at PECO's total prorated share, which included two shopping centers. The fourth quarter 2025 acquisitions consisted of:
-- Rio Hill Shopping Center, a 286,195 square foot shopping center anchored
by Kroger located in a Richmond, Virginia suburb, acquired through
Necessity Retail Venture LLC.
-- Springs Plaza, a 195,353 square foot shopping center anchored by ALDI
located in a Fort Myers, Florida suburb, acquired through Necessity
Retail Venture LLC.
During the year ended December 31, 2025, the Company acquired $38.6 million in assets at PECO's total prorated share, which included five shopping centers purchased through its joint ventures. During the same period, the Company, through Grocery Retail Partners I LLC, sold land for development for $0.1 million at PECO's total prorated share.
Balance Sheet Highlights
As of December 31, 2025, the Company had approximately $925.1 million of total liquidity, comprised of $43.3 million of cash, cash equivalents and restricted cash, plus $881.8 million of borrowing capacity available on its $1.0 billion revolving credit facility.
As of December 31, 2025, the Company's net debt to annualized adjusted EBITDAre was 5.2x. This compared to 5.0x at December 31, 2024. As of December 31, 2025, the Company's outstanding debt had a weighted-average interest rate of 4.5% and a weighted-average maturity of 5.3 years when including all extension options. As of December 31, 2025, 84.7% of the Company's total debt was fixed-rate debt, which includes PECO's total prorated share of debt for its joint ventures.
2026 Guidance
The following guidance is based upon PECO's current view of existing market conditions and assumptions for the year ending December 31, 2026. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under "Forward-Looking Statements" below.
(in thousands, except per share amounts) 2026 Full Year Guidance ----------------------------------------- ----------------------- Net income per share $0.74 - $0.77 Nareit FFO per share $2.65 - $2.71 Core FFO per share $2.71 - $2.77 Same-Center NOI growth 3.00% - 4.00% Portfolio Activity: Acquisitions, gross(1) $400,000 - $500,000 Other: Interest expense, net $117,000 - $127,000 G&A expense $49,000 - $53,000 Non-cash revenue items(2) $19,000 - $21,000 Adjustments for collectibility $5,000 - $8,000
(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.
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 the Company's results without unreasonable effort.
The following table provides a reconciliation of the range of the Company's 2026 estimated net income to estimated Nareit FFO and Core FFO:
(Unaudited) Low End High End
----------------------------------------------------- --------- ----------
Net income per common share $ 0.74 $ 0.77
Depreciation and amortization of real estate
assets 1.87 1.89
Adjustments related to unconsolidated joint
ventures 0.04 0.05
----- ------
Nareit FFO per common share $ 2.65 $ 2.71
Depreciation and amortization of corporate assets 0.01 0.01
Transaction costs and other 0.05 0.05
----- ------
Core FFO per common share $ 2.71 $ 2.77
===== ======
Conference Call and Webcast Details
PECO will host a conference call and webcast on Friday, February 6, 2026 at 12:00 p.m. Eastern Time to discuss fourth quarter and full year 2025 results and provide further business updates. Chairman and Chief Executive Officer Jeff Edison, President Bob Myers and Chief Financial Officer John Caulfield will host the conference call and webcast. Dial-in and webcast information is below.
Fourth Quarter and Full Year 2025 Earnings Conference Call and Webcast Details:
Date: Friday, February 6, 2026
Time: 12:00 p.m. Eastern Time
Toll-Free Dial-In Number: (800) 715-9871
International Dial-In Number: (646) 307-1963
Conference ID: 4551083
Webcast: Fourth Quarter and Full Year 2025 Webcast Link
An audio replay of the webcast will be available approximately one hour after the conclusion of the conference call using the webcast link above.
For more information on the Company's financial results, please refer to the Company's 2025 Annual Report on Form 10-K, to be filed with the SEC on or around February 10, 2026.
Connect with PECO
For additional information, please visit https://www.phillipsedison.com/
Follow PECO on:
-- X at https://x.com/PhillipsEdison -- Facebook at https://www.facebook.com/phillipsedison.co -- Instagram at https://www.instagram.com/phillips.edison/; and -- Find PECO on LinkedIn at https://www.linkedin.com/company/phillipsedison&company
About Phillips Edison & Company
Phillips Edison & Company, Inc. ("PECO") is one of the nation's largest owners and operators of high-quality, 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 December 31, 2025, PECO managed 324 shopping centers, including 297 wholly-owned centers comprising 33.5 million square feet across 31 states and 27 shopping centers owned in three 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.
PHILLIPS EDISON & COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2025 AND 2024
(In thousands, except per share amounts)
2025 2024
---------------------------------------- ---------- ----------
ASSETS
Investment in real estate:
Land and improvements $ 1,963,735 $ 1,867,227
Building and improvements 4,305,174 4,085,713
In-place lease assets 538,324 523,209
Above-market lease assets 77,551 76,359
---------- ----------
Total investment in real estate
assets 6,884,784 6,552,508
Accumulated depreciation and
amortization (1,957,569) (1,771,052)
---------- ----------
Net investment in real estate
assets 4,927,215 4,781,456
Investment in unconsolidated joint
ventures 42,561 31,724
---------- ----------
Total investment in real estate
assets, net 4,969,776 4,813,180
Cash and cash equivalents 3,544 4,881
Restricted cash 39,768 3,768
Goodwill 29,066 29,066
Other assets, net 244,284 195,328
---------- ----------
Total assets $ 5,286,438 $ 5,046,223
========== ==========
LIABILITIES AND EQUITY
Liabilities:
Debt obligations, net $ 2,375,328 $ 2,109,543
Below-market lease liabilities, net 118,356 116,096
Accounts payable and other
liabilities 180,332 163,692
Deferred income 23,044 22,907
---------- ----------
Total liabilities 2,697,060 2,412,238
Commitments and contingencies -- --
Equity:
Preferred stock, $0.01 par value
per share, 10,000 shares
authorized, zero shares issued and
outstanding at December 31, 2025
and 2024 -- --
Common stock, $0.01 par value per
share, 1,000,000 shares
authorized, 125,788 and 125,120
shares issued and outstanding at
December 31, 2025 and 2024,
respectively 1,258 1,251
Additional paid-in capital 3,664,205 3,646,801
Accumulated other comprehensive
income 358 4,305
Accumulated deficit (1,379,252) (1,332,435)
---------- ----------
Total stockholders' equity 2,286,569 2,319,922
Noncontrolling interests 302,809 314,063
---------- ----------
Total equity 2,589,378 2,633,985
---------- ----------
Total liabilities and equity $ 5,286,438 $ 5,046,223
========== ==========
PHILLIPS EDISON & COMPANY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31,
2025 AND 2024
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
-------------------- -----------------------
2025 2024 2025 2024
------------------ ------- ------- -------- -------
Revenues:
Rental income $183,243 $169,455 $ 709,186 $647,589
Fees and
management
income 3,378 2,788 12,751 10,731
Other property
income 1,240 805 4,657 3,072
------- ------- -------- -------
Total revenues 187,861 173,048 726,594 661,392
Operating
Expenses:
Property
operating 34,194 31,172 123,649 112,633
Real estate
taxes 21,503 19,787 86,087 77,684
General and
administrative 13,878 11,551 51,638 45,611
Depreciation
and
amortization 64,294 63,310 266,374 253,016
Total operating
expenses 133,869 125,820 527,748 488,944
Other:
Interest
expense, net (28,403) (25,036) (110,338) (96,990)
Gain (loss) on
disposal of
property, net 28,992 4 38,790 (30)
Other expense,
net (1,986) (2,015) (4,330) (5,732)
------- ------- -------- -------
Net income 52,595 20,181 122,968 69,696
Net income
attributable to
noncontrolling
interests (5,070) (2,039) (11,665) (7,011)
------- ------- -------- -------
Net income
attributable to
stockholders $ 47,525 $ 18,142 $ 111,303 $ 62,685
======= ======= ======== =======
Earnings per share
of common stock:
Net income per
share
attributable
to
stockholders -
basic and
diluted $ 0.38 $ 0.15 $ 0.89 $ 0.51
======= ======= ======== =======
Discussion and Reconciliation of Non-GAAP Measures
Same-Center Net Operating Income
The Company presents Same-Center NOI as a supplemental measure of its performance. The Company defines NOI as total operating revenues, adjusted to exclude non-cash revenue items, less property operating expenses and real estate taxes. For the three months and years ended December 31, 2025 and 2024, Same-Center NOI represents the NOI for the 272 properties that were wholly-owned for the entirety of both calendar year periods being compared. The Company believes Same-Center NOI provides useful information to its investors about its financial and operating performance because it provides a performance measure of the revenues and expenses directly involved in owning and operating real estate assets and provides a perspective not immediately apparent from net income (loss). Because Same-Center NOI excludes the change in NOI from properties acquired or disposed of after December 31, 2023, it highlights operating trends such as occupancy levels, rental rates, and operating costs for our same-center portfolio. Other REITs may use different methodologies for calculating Same-Center NOI, and accordingly, PECO's Same-Center NOI may not be comparable to other REITs.
Same-Center NOI should not be viewed as an alternative measure of the Company's financial performance as it does not reflect the operations of its entire portfolio, nor does it reflect the impact of general and administrative expenses, depreciation and amortization, interest expense, other income (expense), or the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company's properties that could materially impact its results from operations.
Nareit Funds from Operations and Core Funds from Operations
Nareit FFO is a non-GAAP financial performance measure that is widely recognized as a measure of REIT operating performance. The National Association of Real Estate Investment Trusts ("Nareit") defines FFO as net income (loss) computed in accordance with GAAP, excluding: (i) gains (or losses) from sales of property and gains (or losses) from change in control; (ii) depreciation and amortization related to real estate; and (iii) impairment losses on real estate and impairments of in-substance real estate investments in investees that are driven by measurable decreases in the fair value of the depreciable real estate held by the unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect Nareit FFO on the same basis. The Company calculates Nareit FFO in a manner consistent with the Nareit definition.
Core FFO is an additional financial performance measure used by the Company as Nareit FFO includes certain non-comparable items that affect its performance over time. The Company believes that Core FFO is helpful in assisting management and investors with the assessment of the sustainability of operating performance in future periods, and that it is more reflective of its core operating performance and provides an additional measure to compare PECO's performance across reporting periods on a consistent basis by excluding items that may cause short-term fluctuations in net income (loss). To arrive at Core FFO, the Company adjusts Nareit FFO to exclude certain recurring and non-recurring items including, but not limited to: (i) depreciation and amortization of corporate assets; (ii) changes in the fair value of the earn-out liability; (iii) adjustments related to our investments in unconsolidated joint ventures; (iv) gains or losses on the extinguishment or modification of debt and other; (v) other impairment charges; (vi) transaction and acquisition expenses; and (vii) realized performance income.
Nareit FFO and Core FFO should not be considered alternatives to net income (loss) under GAAP, as an indication of the Company's liquidity, nor as an indication of funds available to cover its cash needs, including its ability to fund distributions. Core FFO may not be a useful measure of the impact of long-term operating performance on value if the Company does not continue to operate its business plan in the manner currently contemplated.
Accordingly, Nareit FFO and Core FFO should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. The Company's Nareit FFO and Core FFO, as presented, may not be comparable to amounts calculated by other REITs.
Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate and Adjusted EBITDAre
Nareit defines Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate ("EBITDAre") as net income (loss) computed in accordance with GAAP before: (i) interest expense; (ii) income tax expense; (iii) depreciation and amortization; (iv) gains or losses from disposition of depreciable property; and (v) impairment write-downs of depreciable property. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect EBITDAre on the same basis.
Adjusted EBITDAre is an additional performance measure used by the Company as EBITDAre includes certain non-comparable items that affect the Company's performance over time. To arrive at Adjusted EBITDAre, the Company excludes certain recurring and non-recurring items from EBITDAre, including, but not limited to: (i) changes in the fair value of the earn-out liability; (ii) other impairment charges; (iii) adjustments related to our investments in unconsolidated joint ventures; (iv) transaction and acquisition expenses; and (v) realized performance income.
The Company uses EBITDAre and Adjusted EBITDAre as additional measures of operating performance which allow it to compare earnings independent of capital structure, determine debt service and fixed cost coverage, and measure enterprise value. Additionally, the Company believes they are a useful indicator of its ability to support its debt obligations. EBITDAre and Adjusted EBITDAre should not be considered as alternatives to net income (loss), as an indication of the Company's liquidity, nor as an indication of funds available to cover its cash needs, including its ability to fund distributions. Accordingly, EBITDAre and Adjusted EBITDAre should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. The Company's EBITDAre and Adjusted EBITDAre, as presented, may not be comparable to amounts calculated by other REITs.
Same-Center Net Operating Income--The table below compares Same-Center NOI (dollars in thousands):
Three Months Ended Favorable Year Ended Favorable
December 31, (Unfavorable) December 31, (Unfavorable)
-------------------- -------------------- -------------------- --------------------
2025 2024 $ Change % Change 2025 2024 $ Change % Change
----------------------- ------- ------- -------- ---------- ------- ------- -------- ----------
Revenues:
Rental income(1) $119,933 $116,091 $ 3,842 $475,261 $460,618 $14,643
Tenant recovery
income 40,978 39,407 1,571 154,059 147,687 6,372
Reserves for
uncollectibility(2) (1,433) (876) (557) (4,939) (4,844) (95)
Other property
income 1,197 760 437 3,793 2,842 951
------- ------- ------ ------- ------- ------
Total revenues 160,675 155,382 5,293 3.4% 628,174 606,303 21,871 3.6%
Operating expenses:
Property operating
expenses 25,493 24,626 (867) 96,540 93,699 (2,841)
Real estate taxes 19,260 18,435 (825) 76,955 74,533 (2,422)
------- ------- ------ ------- ------- ------
Total operating
expenses 44,753 43,061 (1,692) (3.9)% 173,495 168,232 (5,263) (3.1)%
------- ------- ------ ------- ------- ------
Total Same-Center NOI $115,922 $112,321 $ 3,601 3.2% $454,679 $438,071 $16,608 3.8%
======= ======= ====== ======= ======= ======
(1) Excludes straight-line rental income, net amortization of above- and below-market leases, and lease buyout income.
(2) Includes billings that will not be recognized as revenue until cash is collected or the Neighbor resumes regular payments and/or the Company deems it appropriate to resume recording revenue on an accrual basis, rather than on a cash basis.
Same-Center Net Operating Income Reconciliation--Below is a reconciliation of Net Income to NOI and Same-Center NOI (in thousands):
Three Months Ended
December 31, Year Ended December 31,
-------------------- --------------------------
2025 2024 2025 2024
------- ------- ------- -------
Net income $ 52,595 $ 20,181 $122,968 $ 69,696
Adjusted to
exclude:
Fees and
management
income (3,378) (2,788) (12,751) (10,731)
Straight-line
rental
income(1) (2,852) (3,061) (10,705) (9,646)
Net
amortization
of above- and
below-market
leases (2,367) (1,855) (8,643) (6,587)
Lease buyout
income (455) (23) (2,517) (867)
General and
administrative
expenses 13,878 11,551 51,638 45,611
Depreciation
and
amortization 64,294 63,310 266,374 253,016
Interest
expense, net 28,403 25,036 110,338 96,990
(Gain) loss on
disposal of
property, net (28,992) (4) (38,790) 30
Other expense,
net 1,986 2,015 4,330 5,732
Property
operating
expenses
related to
fees and
management
income 1,219 995 4,111 3,323
------- ------- ------- -------
NOI for real
estate
investments 124,331 115,357 486,353 446,567
Less:
Non-same-center
NOI(2) (8,409) (3,036) (31,674) (8,496)
------- ------- ------- -------
Total Same-Center
NOI $115,922 $112,321 $454,679 $438,071
======= ======= ======= =======
Period-end
Same-Center
Leased Occupancy
% 97.6% 97.8%
(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.
Nareit FFO and Core FFO--The following table presents the Company's calculation of Nareit FFO and Core FFO and provides additional information related to its operations (in thousands, except per share amounts):
Three Months Ended
December 31, Year Ended December 31,
-------------------- ------------------------
2025 2024 2025 2024
------------------ ------- ------- ------- --------
Calculation of
Nareit FFO
Attributable to
Stockholders and
OP Unit Holders
Net income $ 52,595 $ 20,181 $122,968 $ 69,696
Adjustments:
Depreciation
and
amortization
of real estate
assets 63,926 62,876 264,834 251,250
(Gain) loss on
disposal of
property, net (28,992) (4) (38,790) 30
Adjustments
related to
unconsolidated
joint
ventures 1,242 740 4,076 2,795
------- ------- ------- --------
Nareit FFO
attributable to
stockholders and
OP unit holders $ 88,771 $ 83,793 $353,088 $ 323,771
======= ======= ======= ========
Calculation of
Core FFO
Attributable to
Stockholders and
OP Unit Holders
Nareit FFO
attributable to
stockholders and
OP unit holders $ 88,771 $ 83,793 $353,088 $ 323,771
Adjustments:
Depreciation
and
amortization
of corporate
assets 368 434 1,540 1,766
Transaction and
acquisition
expenses 1,519 1,492 5,523 4,993
Loss on
extinguishment
or
modification
of debt and
other, net 89 60 90 -- 1,290
Adjustments
related to
unconsolidated
joint
ventures 424 5 469 13
Realized
performance
income(1) (30) -- (30) --
------- ------- ------- --------
Core FFO
attributable to
stockholders and
UP unit holders $ 91,141 $ 85,784 $360,680 $ 331,833
======= ======= ======= ========
Nareit FFO/Core
FFO Attributable
to Stockholders
and OP Unit
Holders per
diluted share
Weighted-average
shares of common
stock outstanding
- diluted 138,845 137,437 138,899 136,821
Nareit FFO
attributable to
stockholders and
OP unit holders
per share -
diluted $ 0.64 $ 0.61 $ 2.54 $ 2.37
Core FFO
attributable to
stockholders and
OP unit holders
per share -
diluted $ 0.66 $ 0.62 $ 2.60 $ 2.43
(1) Realized performance income includes fees received related to the achievement of certain performance targets in the Company's NRP joint venture, which was dissolved in December 2025.
EBITDAre and Adjusted EBITDAre--The following table presents the Company's calculation of EBITDAre and Adjusted EBITDAre (in thousands):
Three Months Ended Year Ended
December 31, December 31,
-------------------- -------------------
2025 2024 2025 2024
------- ------- ------- -------
Calculation of
EBITDAre
Net income $ 52,595 $ 20,181 $122,968 $ 69,696
Adjustments:
Depreciation
and
amortization 64,294 63,310 266,374 253,016
Interest
expense, net 28,403 25,036 110,338 96,990
(Gain) loss on
disposal of
property, net (28,992) (4) (38,790) 30
Federal, state,
and local tax
expense 708 774 1,307 1,821
Adjustments
related to
unconsolidated
joint
ventures 1,904 1,088 6,200 4,025
------- ------- ------- -------
EBITDAre $118,912 $110,385 $468,397 $425,578
======= ======= ======= =======
Calculation of
Adjusted EBITDAre
EBITDAre $118,912 $110,385 $468,397 $425,578
Adjustments:
Transaction and
acquisition
expenses 1,519 1,492 5,523 4,993
Adjustments
related to
unconsolidated
joint
ventures 15 5 60 13
Realized
performance
income(1) (30) -- (30) --
------- ------- ------- -------
Adjusted EBITDAre $120,416 $111,882 $473,950 $430,584
======= ======= ======= =======
(1) Realized performance income includes fees received related to the achievement of certain performance targets in the Company's NRP joint venture, which was dissolved in December 2025.
Financial Leverage Ratios--The Company believes its net debt to Adjusted EBITDAre, net debt to total enterprise value, and debt covenant compliance as of December 31, 2025 allow it access to future borrowings as needed in the near term. The following table presents the Company's calculation of net debt and total enterprise value, inclusive of its prorated portion of net debt and cash and cash equivalents owned through its unconsolidated joint ventures, as of December 31, 2025 and 2024 (in thousands):
2025 2024
------------------------------------------------ --------- ---------
Net debt:
Total debt, excluding discounts, market
adjustments, and deferred financing
expenses $2,456,933 $2,166,326
Less: Cash and cash equivalents 5,124 5,470
--------- ---------
Total net debt $2,451,809 $2,160,856
========= =========
Enterprise value:
Net debt $2,451,809 $2,160,856
Total equity market capitalization(1)(2) 4,926,872 5,175,286
--------- ---------
Total enterprise value $7,378,681 $7,336,142
========= =========
(1) Total equity market capitalization is calculated as diluted shares multiplied by the closing market price per share, which includes 138.5 million and 138.2 million diluted shares as of December 31, 2025 and 2024, respectively, and the closing market price per share of $35.57 and $37.46 as of December 31, 2025 and 2024, respectively.
(2) Fully diluted shares include common stock and OP units.
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February 05, 2026 16:05 ET (21:05 GMT)