Phillips Edison's grocery-anchored retail REIT generates strong cash flow conversion of 161% and is in a golden cross technical pattern, but 83% of net operating income is concentrated in top-1 or top-2 grocer anchor tenants and the stock is priced above resistance targets, leaving no margin of safety.
Thesis pillars
- Grocer Anchor Concentration↓Deteriorating
- Fcf Conversion Quality↓Deteriorating
- Price Above Resistance↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 10, 2026· older than 90 days
Phillips Edison & Company, Inc. (PECO) Stock Analysis
Momentum Cont setup
Real Estate · REIT - Retail
Sell if holding. At $39.58, A.R:R is negative (-0.7) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: REIT tenant concentration cliff: 83% of NOI from #1 or #2 grocer anchors (≥40% threshold). Single-tenant churn risk dominates spot FFO.; Concentration risk — Property Type: grocery-anchored shopping centers (95.0%).
Phillips Edison & Company owns and manages 297 wholly-owned grocery-anchored shopping centers totaling approximately 36.7 million square feet across 31 states, plus partial interests in three unconsolidated joint ventures. Revenue is primarily lease-based from a portfolio that... Read more
Sell if holding. At $39.58, A.R:R is negative (-0.7) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: REIT tenant concentration cliff: 83% of NOI from #1 or #2 grocer anchors (≥40% threshold). Single-tenant churn risk dominates spot FFO.; Concentration risk — Property Type: grocery-anchored shopping centers (95.0%). Chart setup: Trend continuation, RSI 66, MACD bullish. Score 5.6/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 92d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and reit tenant cliff hard block. Suitability: moderate.
About Phillips Edison & Company, Inc.
About Phillips Edison & Company, Inc.
Phillips Edison & Company's managed portfolio of 297 wholly-owned grocery-anchored neighborhood shopping centers and interests in three unconsolidated joint ventures encompassed approximately 36.7 million square feet in 31 states at December 31, 2025, with the wholly-owned portfolio 97.3% leased. Grocery anchors ranking #1 or #2 by sales in their respective trade areas generated 83.3% of annualized base rent; approximately 70% of ABR derived from necessity-based goods and services tenants.
PECO generates revenue through leases with a diverse mix of national, regional, and local tenants it refers to as "Neighbors," targeting small-format centers averaging 112,000 square feet where retailer demand concentrates in inline spaces under 10,000 square feet of GLA. For the year ended December 31, 2025, combined comparable rent spreads of 23.3% — 30.9% on new leases and 20.7% on renewals — reflect below-market rent recapture as leases expire. The balance sheet carries $2.4 billion in total debt ($2.0 billion unsecured, $0.4 billion secured), supported by investment-grade ratings of Baa2 (Moody's, Stable) and BBB (S&P, Stable) and $925.1 million in total liquidity at year-end, including $881.8 million available on a $1 billion revolving credit facility.
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Geographic concentration represents a distinct risk: Florida and California accounted for 12.3% and 10.5%, respectively, of PECO's ABR in 2025 (including joint venture properties), making them the two largest state exposures in the 31-state portfolio. The 10-K explicitly identifies these states as concentration risks subject to local economic conditions, oversupply, insurance costs, and weather events. While neither state alone exceeds 25% of ABR, their combined approximately 22.8% share means a sustained market dislocation in either could weigh on consolidated NOI and occupancy rates.
See also: Real Estate · REIT - Retail
From Phillips Edison & Company, Inc.'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated Oct 27, 2026Recent Developments — Phillips Edison & Company, Inc.
Latest news
- NEWS Does Strong Earnings And Dividend Growth Change The Bull Case For Phillips Edison Stock (PECO)? - Simply Wall Street — Simply Wall Street Oct 27, 2026 positive
- NEWS Phillips Edison & Company, Inc. (NASDAQ:PECO) Announces Quarterly Earnings Results, Beats Estimates By $0.02 EPS - Marke — MarketBeat Oct 26, 2026 positive
- NEWS Small Changes, Smarter Savings: PECO Marks Energy Awareness Month with Tips for Homeowners - VISTA.Today — VISTA.Today Oct 22, 2026 neutral
- NEWS Unveiling Phillips Edison & Company (PECO) Q3 Outlook: Wall Street Estimates for Key Metrics - Yahoo Finance — Yahoo Finance Oct 21, 2026 neutral
- NEWS Phillips Edison & Company, Inc. (PECO) - What Are Brokerages Saying About This Stock? - MarketBeat — MarketBeat Oct 20, 2026 neutral
Latest item Oct 27, 2026 · Generated 2026-11-04T11:49:37Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHPropertygrocery-anchored shopping centers95%10-K Item 1: '95.0% of our annualized ... base rent ("ABR") was generated from shopping centers anchored by such grocers'
- HIGHTenant#1 or #2 grocer anchors83%10-K Item 1: '83.3% of our ABR was generated from shopping centers anchored by the #1 or #2 grocer by sales within their respective trade area'
- LOWGeographicFlorida12%10-K Item 1A: 'our holdings in Florida and California accounted for 12.3% and 10.5%, respectively, of our ABR'
- LOWGeographicCalifornia11%10-K Item 1A: 'our holdings in Florida and California accounted for 12.3% and 10.5%, respectively, of our ABR'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $39.58, A.R:R is negative (-0.7) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: REIT tenant concentration cliff: 83% of NOI from #1 or #2 grocer anchors (≥40% threshold). Single-tenant churn risk dominates spot FFO.; Concentration risk — Property Type: grocery-anchored shopping centers (95.0%). Chart setup: Trend continuation, RSI 66, MACD bullish. Prior stop was $37.96. Score 5.6/10, moderate confidence.
Analyst target $37.54 reached (−5.1% from $39.58); no take-profit level is published. Prior stop was $37.96. Stop-loss: $37.96.
REIT tenant concentration cliff: 83% of NOI from #1 or #2 grocer anchors (≥40% threshold). Single-tenant churn risk dominates spot FFO.; Concentration risk — Property Type: grocery-anchored shopping centers (95.0%); Concentration risk — Tenant: #1 or #2 grocer anchors (83.3%).
Phillips Edison & Company, Inc. trades at a P/E of 27.7 (forward 52.3). TrendMatrix value score: 4.3/10. Verdict: Sell.
20 analysts rate PECO, with a consensus score of 3.9/5. 13 analysts publish price targets averaging $43.
What does Phillips Edison & Company, Inc. do?Phillips Edison & Company owns and manages 297 wholly-owned grocery-anchored shopping centers totaling approximately...
Phillips Edison & Company owns and manages 297 wholly-owned grocery-anchored shopping centers totaling approximately 36.7 million square feet across 31 states, plus partial interests in three unconsolidated joint ventures. Revenue is primarily lease-based from a portfolio that was 97.3% leased at year-end 2025, with approximately 70% of ABR from necessity-based retailers and 83.3% from centers anchored by the #1 or #2 grocer.