Phillips Edison & Company’s operating partnership, Phillips Edison Grocery Center Operating Partnership I, L.P., priced a $350 million aggregate principal amount of 4.750% senior unsecured notes due March 15 2033 on February 24 2026. The notes were priced at 99.920% of principal and are fully guaranteed by PECO.
The offering is expected to settle on February 26 2026. Proceeds will be used for general corporate purposes, including repayment of existing borrowings, acquisition of additional properties, capital expenditures, redevelopment, and working capital. The notes will be held in short‑term securities until maturity.
The financing provides PECO with additional liquidity while maintaining its low leverage profile. Net debt to annualized adjusted EBITDA was 5.2× as of December 31 2025, and the $350 million will support the company’s capital recycling strategy and its 2026 acquisition target of $400–$500 million.
Q4 2025 earnings demonstrated strong performance, with Nareit FFO per share up 7.2% and core FFO per share up 7%. Occupancy reached 97.3%, underscoring robust cash flow that can support the new debt.
The 2033 maturity and 4.75% coupon provide long‑term financing at a competitive rate in the current low‑rate environment, reducing near‑term refinancing risk and allowing PECO to refinance existing debt on favorable terms.
The issuance aligns with PECO’s strategy of owning grocery‑anchored neighborhood centers, a resilient sector. The proceeds will fund acquisitions and redevelopment to strengthen the portfolio and support continued growth.
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