Phillips Edison & Company (NASDAQ:PECO) Raises Full-Year Guidance After Strong Q3 2025 Earnings

Phillips Edison & Company (NASDAQ:PECO), a leading owner and operator of grocery-anchored neighborhood shopping centers, reported financial results for the third quarter of 2025 that demonstrated solid operational performance, leading the company to raise its full-year earnings guidance.

Earnings and Revenue Performance

The company’s key funds from operations metrics, critical for assessing REIT performance, showed healthy growth. Core FFO, which adjusts for certain non-comparable items, reached $0.65 per diluted share for the quarter. This figure substantially exceeded analyst estimates, which had projected a non-GAAP EPS of $0.1377.

On the top line, PECO reported total revenues of $182.67 million, surpassing the analyst consensus estimate of $180.56 million. This represents a continuation of the company's ability to grow its income streams.

The performance against estimates can be summarized as follows:

• Core FFO Per Share: Reported $0.65 vs. Estimated $0.1377
• Total Revenue: Reported $182.67M vs. Estimated $180.56M

Market Reaction and Price Action

Following the earnings release, the market's immediate reaction appears measured. The stock showed no movement in after-hours trading. Over recent periods, the stock has experienced modest gains:

• Last week: +1.15%
• Last two weeks: +2.05%
• Last month: +0.47%

The significant outperformance on the bottom-line Core FFO figure, coupled with the guidance increase, may have been anticipated by the market given the positive price trend in the preceding weeks. The lack of a dramatic after-hours move suggests the results were largely in line with or slightly better than market expectations that had been building.

Operational Highlights and Increased Guidance

Beyond the headline earnings and revenue figures, the press release highlighted several strong operational metrics that underpin the company's performance. Leased portfolio occupancy remained robust at 97.6%, and the company achieved record-high rent spreads on renewal leases of 23.2%, indicating strong pricing power for its properties.

Perhaps the most significant takeaway for investors was the increase in full-year 2025 guidance. PECO raised the midpoint of its Core FFO per share guidance to a range of $2.57 to $2.61, up from the previous range of $2.55 to $2.60. This updated outlook implies a year-over-year growth of 6.6% at the midpoint.

The company's acquisition activity remains active, with $376 million of acquisitions completed year-to-date at its share, and it maintained its full-year gross acquisition guidance of $350 million to $450 million.

Forward Outlook and Analyst Estimates

While PECO provided an increased earnings outlook, it is instructive to compare its trajectory with broader market expectations. The company's raised guidance reflects internal confidence. Analyst estimates for the full year 2025, prior to this report, projected a revenue of $727.33 million and an EPS of $0.626. Investors will be watching to see if this strong quarterly report leads analysts to revise their future estimates upward.

For a detailed breakdown of historical earnings and future analyst estimates for Phillips Edison & Company, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for an investment decision.