At a glance
Phillips Edison & Co Inc is worth $4.87B, about 42 times its fiscal 2025 earnings. Revenue grew 9.9% to $726.6M in fiscal 2025, with 15.3% kept as profit; over 5 years it has grown 7.8% a year. It pays a 3.55% dividend yield, raised every year for at least 5 years, and returned $738.6M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +14.0% over the past year with dividends reinvested and +7.7% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 23.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months after the low.
The business in plain English
Phillips Edison & Company (PECO) is a real estate investment trust, or REIT: a company that owns income-producing property and must pay out most of its taxable income as dividends. It is one of the largest US owners and operators of grocery-anchored neighborhood shopping centers. As of December 31, 2025, it owned 297 centers outright. Counting three joint ventures, its managed portfolio covered about 36.7 million square feet in 31 states. The portfolio was 97.3% leased.
Most revenue is rent. Tenants, which PECO calls “Neighbors,” are national, regional and local retailers that mainly sell everyday goods and services. As of December 31, 2025, about 70% of annualized base rent (the yearly contract rent) came from these necessity-based businesses. At centers it owns outright, 95.0% came from grocery-anchored centers and 83.3% from centers anchored by the #1 or #2 grocer in the area. In fiscal 2025, rents on comparable new leases were 30.9% above the expiring leases, and renewals were 20.7% higher.
PECO also earns fees managing properties for one private fund and three joint ventures, in which it owns stakes of 14% to 31.25%. Partners include Northwestern Mutual and an affiliate of Cohen & Steers. Its annual report gives no revenue split by segment or region. Total revenue was $726.6 million in fiscal 2025, up 9.9%.
Price history
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PECO +14.0% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $193.1M, up 5.7% from a year earlier, and net income was $62.7M (+153.9%).
- For fiscal 2025, revenue was $726.6M (+9.9% year over year; +7.8% a year from FY2020 to FY2025) with a 15.3% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +7.8% good |
|---|---|
| Return on equity (FY2025) | 4.9% weak |
| Return on assets (FY2025) | 2.1% weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $498.0M | $4.8M | — |
| FY2021 | $532.8M | $15.1M | — |
| FY2022 | $575.4M | $48.3M | — |
| FY2023 | $610.1M | $56.8M | — |
| FY2024 | $661.4M | $62.7M | — |
| FY2025 | $726.6M | $111.3M | — |
Valuation snapshot
| Market value | $4.87B |
|---|---|
| P/E ratio | 42.4 |
| Dividend yield | 3.55% |
Rank among 1514 US companies
Market value at each year end
Phillips Edison & Co’s market value went from $3.73B at the end of 2022 to $4.87B on Oct 28, 2026, up 31%; since the end of 2025 it is up 9%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $4.87B | +8.7% |
| 2025 | $4.47B | -2.6% |
| 2024 | $4.59B | +5.3% |
| 2023 | $4.36B | +17.0% |
| 2022 | $3.73B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PECO price data to Oct 28, 2026 | +9.1% | +14.0% | +7.6% | +7.7% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +9.1% |
| 2025 | -1.6% |
| 2024 | +6.2% |
| 2023 | +18.5% |
| 2022 | -0.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12.9% over that stretch · deepest drop along the way 23.1%, back to its old high 9.6 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| Vanguard Portfolio Management | 10.82% | Jan 30, 2026 |
| Vanguard Capital Management | 5.35% | Mar 31, 2026 |
| Wellington Management Group LLP | 4.1% | Mar 31, 2026 |
ETFs with the most weight in PECO
| HAPS Harbor Human Capital Factor US Small Cap ETF | 2.38% |
| PSCF Invesco S&P SmallCap Financials ETF | 1.35% |
| XSLV Invesco S&P SmallCap Low Volatility ETF | 1.11% |
| PSR Invesco Active U.S. Real Estate Fund | 1.11% |
| SMLV SPDR SSGA US Small Cap Low Volatility Index ETF | 0.76% |
| BBRE JPMorgan BetaBuilders MSCI US REIT ETF | 0.44% |
| XJR iShares ESG Select Screened S&P Small-Cap ETF | 0.43% |
| FRI First Trust S&P REIT Index Fund | 0.41% |
What could go wrong
- Losing a grocery anchor hurts whole centers. Anchors, generally tenants of 10,000 square feet or more, pay much of a center's rent and draw shoppers. If one closes, other tenants' leases may let them pay less or leave, and refilling is costly.
- Smaller shop tenants are more fragile. A significant portion of revenue comes from smaller tenants, some with limited finances. In a downturn, many could default or close, and bankrupt tenants can cancel leases, leaving empty space and unpaid rent.
- Growth relies on deals and new shares. PECO competes with other REITs and institutions for acquisitions, which can raise prices and cut returns. Selling new shares shrinks each holder's stake; the share count rose 13.8% from February 2022 to October 2026.
- Substantial debt and interest-rate exposure. Total debt was about $2.55 billion as of September 30, 2026. Higher interest rates can raise borrowing costs, and loan covenants, the rules lenders set, can limit operations and dividend payments.
- Online shopping could cut store demand. The annual report flags the continued shift of retail sales to e-commerce. The company says its centers help tenants fill online orders, but more online buying could reduce demand for store space and rents.
- The dividend is not guaranteed. As a REIT, PECO must pay out most of its taxable income. It warns it may need to borrow to fund distributions and that the dividend could change, which could hurt the share price.
Recent events
- Quarterly results released; Investor presentation or announcement
- Investor presentation or announcement; Other company announcement
- Investor presentation or announcement
- Other company announcement
- Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Shareholder vote results; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation; Other company announcement
- Investor presentation or announcement
For income and retirement investors
PECO has raised its dividend for 5 straight fiscal years, from $0.588 per share in 2020 to $1.2532 in 2025, with the biggest jump, to $1.035, in 2021. The yield was 3.55% as of October 28, 2026. Dividends equaled 141.3% of fiscal 2025 net income. Payouts above earnings are common for REITs because depreciation, a non-cash charge for wear on buildings, holds down their earnings. The company says it generates over $100 million a year in operating cash flow after maintenance spending and distributions. Buybacks totaled $77.8 million over fiscal 2021 to 2025, versus $660.8 million of dividends, and the share count rose 13.8% from February 2022 to October 2026.
In the 2022 market slump, the shares fell 23.1% from an April 21 peak to a September 29 low, and recovered by July 19, 2023, about 9.6 months later. Its trading history does not cover the 2008 or 2020 crashes. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Phillips Edison make money?
Mostly from rent. Phillips Edison & Company (PECO) owns neighborhood shopping centers anchored by grocery stores and leases space to national, regional and local retailers that sell everyday goods and services. As of December 31, 2025, it owned 297 centers outright, and its portfolio was 97.3% leased. It also earns fees managing properties for one private fund and three joint ventures, in which it owns partial stakes. Revenue was $726.6 million in fiscal 2025, up 9.9% from the year before.
What is a grocery-anchored shopping center?
It is a shopping center built around a supermarket, which draws frequent shoppers who also visit the smaller stores nearby. As of December 31, 2025, 95.0% of the annualized base rent (yearly contract rent) at PECO's wholly owned centers came from grocery-anchored centers. Another measure, 83.3%, came from centers anchored by the #1 or #2 grocer by sales in their trade area. PECO focuses on smaller centers averaging 112,000 square feet, where most leasing involves smaller shop spaces.
Does Phillips Edison raise its dividend every year?
It has for 5 straight fiscal years. Dividends per share rose from $0.588 in fiscal 2020 to $1.035 in 2021 and $1.2532 in 2025, and the yield was 3.55% as of October 28, 2026. As a real estate investment trust (REIT), PECO must pay out most of its taxable income. Its annual report warns that distributions may change, so past increases do not guarantee future ones.
How much debt does Phillips Edison have?
About $2.55 billion of total debt as of September 30, 2026, against $5.55 billion of total assets and $2.41 billion of shareholders' equity. Its fiscal 2025 annual report lists investment-grade credit ratings, meaning the agencies see relatively low default risk: Baa2 from Moody's and BBB from S&P, both with stable outlooks. As of December 31, 2025, it had $925.1 million available: $43.3 million of cash and $881.8 million of unused room on its $1 billion credit line.
How has PECO stock performed over five years?
It returned 7.7% a year, or 45% in total, over the five years to October 28, 2026, and 14% over the last of those years. Its deepest drop in its 5.3-year price history was 23.1%, from April to September 2022, and it was back at that peak by July 19, 2023. Its worst fall in the final year was 16.1%. Full calendar years ranged from a 1.63% loss in 2025 to an 18.47% gain in 2023.