NASDAQ$PECO

Phillips Edison & Company Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Phillips Edison reported third quarter results with net income of $13.4 million. Rent and recovery collections totaled 94% of monthly billings.

Phillips Edison & Company reported a net income of $13.4 million for the third quarter of 2020. Rent and recovery collections reached 94% of monthly billings. The company intends to repurchase up to 4.5 million shares of common stock at $5.75 per share in December 2020 and resume monthly distribution in January 2021 at an annualized rate of $0.34 per share.

  • Same-center NOI decreased 4.1% to $83.5 million.
  • Rent and recovery collections totaled 94% of monthly billings for the quarter.
  • Leased portfolio occupancy totaled 95.3%, an increase from 95.0% at September 30, 2019.
  • Core funds from operations (Core FFO) increased 1.1% to $59.7 million; Core FFO per diluted share was unchanged at $0.18.

Headline financials

Total Revenue

$127M

Previous: $136M-6.8%
EPS (adj)

$0.16

No prior period
Leased Portfolio Occupancy

95.3%

No prior period
Wholly-Owned Properties

283

No prior period
GLA (Square Feet)

31.7M

No prior period
Capital Expenditures

-$23M

Previous: -$98M+76.5%
Free Cash Flow

-$11.2M

Previous: -$124M+90.9%
Net Income

$11.8M

Previous: -$25.9M+145.5%
Operating Income

-$163M

Previous: -$34.7M-370.0%
Gross Profit

$22.9M

Previous: $113M-79.7%
Cash & Equivalents

$104M

Previous: $29.5M+252.0%
Total Assets

$4.72B

Previous: $4.89B-3.5%
Stock-Based Comp

$1.85M

No prior period

Revenue & EPS history

Phillips Edison · Revenue · Quarterly

$127M

Q3 2020-6.8%vs Q3 2019

Revenue by segment

Phillips Edison · $127M total across 3 segments · Q3 2020

  • Rental Income
    $123M
  • Fees and Management Income
    $2.58M
  • Other Property Income
    $816K

Forward guidance

PECO intends to commence a voluntary fixed price tender offer on November 10, 2020 for up to 4.5 million shares of its outstanding common stock at $5.75 per share. Effective January 2021, the Company expects to recommence repurchases under the DDI portion of its amended and restated SRP.

Tailwinds

  • Reinstating distributions for December 2020 to stockholders of record at the close of business on December 28, 2020 equal to a monthly amount of $0.02833333 per share, or $0.34 on an annualized basis.
  • The December 2020 distribution is expected to be made on January 7, 2021.
  • The Dividend Reinvestment Plan has been reinstated by the Board effective January 7, 2021.
  • SRP repurchases are projected to be made at the current tender offer price of $5.75.
  • The tender offer provides liquidity for stockholders.

Headwinds

  • The tender offer price of $5.75 is 34% lower than the Company’s current EVPS of $8.75.
  • The Board makes no recommendation to stockholders as to whether to tender or refrain from tendering their shares.
  • If more than 4.5 million shares are properly tendered and not properly withdrawn, PECO will purchase the shares on a pro rata basis.
  • The Tender Offer will be subject to other conditions, and PECO will reserve the right, subject to applicable laws, to withdraw or amend the Tender Offer if, at any time prior to the payment of deposited shares, certain events occur.
  • Future distributions are not guaranteed; however, the Board intends to evaluate distributions on a monthly basis throughout 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports

Historical avg

+0.3%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.2%

Avg return

30 days after

43%

9 / 21 earnings

Positive

+5.7%

Q2 2021

Best reaction

-4.0%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%+2.0%+3.2%
Q4 2025-0.8%-0.3%+2.4%
Q3 2025+0.6%-1.0%+2.5%
Q2 2025-0.3%+0.9%+5.0%
Q1 2025-0.4%-1.5%-3.6%
Q3 2024-1.9%+0.4%+6.3%
Q2 2024-0.1%+5.2%+7.1%
Q1 2024-1.9%-1.6%-5.4%
Q4 2023+0.7%-0.7%+3.6%
Q3 2023+0.9%+2.6%+3.0%
Q2 2023+1.6%+0.6%-4.1%
Q1 2023-3.0%-1.8%-7.4%
Q4 2022+2.1%+3.6%-4.9%
Q3 2022+5.0%+3.5%+9.9%
Q2 2022+0.4%+0.9%-0.4%
Q1 2022-4.0%-8.8%-1.3%
Q4 2021-1.7%+0.2%+3.6%
Q3 2021+4.4%+3.4%+2.0%
Q2 2021+5.7%+8.0%+7.6%
Q1 2021+0.0%+0.0%+17.9%
Q4 2020+0.0%+0.0%+0.0%
Q3 2020
Q2 2020
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q3 2017
Q2 2017
Q1 2017
Q3 2016
Q2 2016
Q1 2016
Q2 2015
Q1 2015
Q4 2012
Q3 2012
Q2 2012
Q3 2011
Q2 2011

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