Phillips Edison & Company, Inc. · NASDAQ:PECO
Phillips Edison & — Phillips Edison Grocery Center REIT I — FY2016 Earnings Presentation
17 slides from Phillips Edison &'s earnings presentation, Mar 27, 2017
Slide 1: Year End 2016 Results
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 1 Phillips Edison Grocery Center REIT I, Inc. Year End 2016 Results www.grocerycenterREITI.com DST: 888-518-8073 Griffin Capital Securities: 866-788-8614
Slide 2: Agenda
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 2 Agenda • Portfolio & Results • Financials • Share Repurchase Program R. Mark Addy - President and COO
Slide 3: Forward-Looking Statement Disclosure
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 3 Forward-Looking Statement Disclosure This presentation and the corresponding call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934
Slide 4: Year End 2016 Portfolio Highlights
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 4 Year End 2016 Portfolio Highlights 153 properties 28 states 24 leading grocery anchors 16.7 million square feet 95.6% leased occupancy 78.9% of rents from grocer, national, and regional tenants Information as of 12/31/2016.
Slide 5: Year End 2016 Portfolio Results
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 5 Year End 2016 Portfolio Results Grocer % of ABR # ofLocations Kroger 8.5% 38 Publix 7.6% 31 Albertsons-Safeway 4.3% 14 Ahold Delhaize 4.2% 10 Giant Eagle 2.7% 7 Top 5 Grocers by % of Annualized Base Rent Annualized Base Rent by Tenant Type
Slide 6: Q4 2016 Acquisition Highlights
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 6 Q4 2016 Acquisition Highlights Name Location Grocer GLA Southern Palms Tempe, AZ Sprouts 257,979 Golden Eagle Village Clermont, FL Publix 64,050 Georgesville Square Columbus, OH Kroger 270,045 Southern Palms Golden Eagle Village Georgesvil
Slide 7: 2016 Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 7 2016 Financials Year Ended December 31, (in 000s) 2016 2015 Net Income Attributable to Stockholders $ 8,932 $ 13,360 Funds from Operations (FFO) 108,782 113,357 Modified Funds from Operations (MFFO) 106,256 112,671 Adjusting for the change
Slide 8: 2016 Same-Center Net Operating Income (NOI)
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 8 2016 Same-Center(1) Net Operating Income (NOI) Year Ended December 31, (in 000s) 2016 2015 $ Change % Change Revenues: Rental income(2) $ 164,622 $ 160,515 $ 4,107 Tenant recovery income 56,142 53,737 2,405 Other property income 773 1,111
Slide 9: Year End Debt Profile
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 9 Year End Debt Profile • Debt to Total Enterprise Value: 35.5%(1) • Weighted-Average Interest Rate: 3.0% • Weighted-Average Years to Maturity: 4.0 • Fixed-Rate Debt: 82.1%(2) • Variable-Rate Debt: 17.9% • Includes a $255 million variable-ra
Slide 10: Share Repurchase Program
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 10 Share Repurchase Program Our Share Repurchase Program (SRP) states that the cash available for repurchases on any particular date will generally be limited to the proceeds from the DRIP during the preceding four fiscal quarters, less any
Slide 11: Thank You
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 11 Thank You www.grocerycenterREITI.com DST: 888-518-8073 Griffin Capital Securities: 866-788-8614
Slide 12: Appendix
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 12 Appendix
Slide 13: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 13 Reconciliation of Non-GAAP Financials We present Same-Center NOI as a supplemental measure of our performance. We define NOI as total operating revenues, adjusted to exclude lease buy-out income and non-cash revenue items, less property o
Slide 14: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 14 Reconciliation of Non-GAAP Financials Below is a reconciliation of net income to NOI and Same-Center NOI for the years ended December 31, 2016 and 2015 (in thousands): 2016 2015(1) Net income $ 9,043 $ 13,561 Adjusted to exclude: Lease bu
Slide 15: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 15 Reconciliation of Non-GAAP Financials Funds from Operations and Modified Funds from Operations Funds from operations (“FFO”) is a non-GAAP performance financial measure that is widely recognized as a measure of REIT operating performance.
Slide 16: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 16 Reconciliation of Non-GAAP Financials Many of the adjustments in arriving at MFFO are not applicable to us. Nevertheless, as explained below, management’s evaluation of our operating performance may also exclude items considered in the ca
Slide 17: Reconciliation of Non-GAAP Financials
The Grocery REITPhillips Edison-ARC Grocery Center REIT II 17 Reconciliation of Non-GAAP Financials Year Ended December 31, (in 000s except for per share amounts) 2016 2015(1) 2014 Calculation of FFO Net income (loss) attributable to stockholders $ 8,932 $ 13,360 $ (22,635) Adjustments: Depreciation
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