grow with peco - phillipsedison.gcs-web.com

GROW with PECOSeptember 2021

Phillips Edison & Company, Inc. (“PECO”) is one of the

nation’s largest owners and operators of omni-channel

grocery-anchored neighborhood shopping centers.

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PECO

www.PhillipsEdison.com/Investors www.PhillipsEdison.com/Investors Page 2

Certain statements contained in this Phillips Edison & Company, Inc. (the “Company”) presentation, including statements relating to the Company’s expectations, performance, distributions, and guidance, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such forward-looking statements can generally be identified by the Company’s use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” “seek,” “objective,” “goal,” “strategy,” “plan,” “focus,” “priority,” “should,” “could,” “potential,” “possible,” “look forward,” “optimistic,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Such statements are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. These risks include, without limitation: (i) changes in national, regional, or local economic climates; (ii) local market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in the Company’s portfolio; (iii) vacancies, changes in market rental rates, and the need to periodically repair, renovate, and re-let space; (iv) changes in interest rates and the availability of permanent mortgage financing; (v) competition from other available properties and the attractiveness of properties in the Company’s portfolio to its tenants; (vi) the financial stability of tenants, including the ability of tenants to pay rent; (vii) changes in tax, real estate, environmental, and zoning laws; (viii) the concentration of the Company’s portfolio in a limited number of industries, geographies, or investments; (ix) the economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic, including its potential or expected impact on the Company’s tenants, the Company’s business and the Company’s view on forward trends; and (x) any of the other risks included in the Company’s SEC filings. Therefore, such statements are not intended to be a guarantee of the Company’s performance in future periods. Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statements contained in this release.

See Part I, Item 1A. Risk Factors of the Company’s 2020 Annual Report on Form 10-K, filed with the SEC on March 12, 2021, and any subsequent filings, for a discussion of some of the risks and uncertainties, although not all of the risks and uncertainties, that could cause actual results to differ materially from those presented in the Company’s forward-looking statements. Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statements contained in this release.

GROW with PECO

GROCERY

ANCHORED

REGULAR INCOME;

STRONG RETURNS

OMNI-CHANNEL

LANDLORD

WELL-ALIGNED

& EXPERIENCED

investors.phillipsedison.com |

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PECO

SHOPPING CENTERS (1)

TOTAL ENTERPRISE VALUE (2)

TOTAL LEASED OCCUPANCY (3)

PECO’S #1 AND #2 NEIGHBORS:

KROGER’S LARGEST LANDLORD

PUBLIX’S SECOND LARGEST

LANDLORD (1)

GROCERY-ANCHORED

1. As of June 30, 2021, includes properties partially owned through joint ventures.

2. Total Enterprise Value (“TEV”) calculation includes as adjusted total net debt reported on June 30, 2021 and market capitalization as of August 31, 2021.

3. As of June 30, 2021 investors.phillipsedison.com |

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PECOREGULAR INCOME; STRONG RETURNS (1)

“REIT I” refers to investors that originally invested in Phillips Edison Grocer Center REIT I, Inc.

1. Data as of market close on September 7, 2021.

2. Adjusted for the one-for-three reverse stock split during July 2021.

TOTAL RETURN FOR REIT I

INVESTORS RANGE FROM:


TOTAL CASH DISTRIBUTIONS PER

REIT I SHARE (2) RANGE FROM: CURRENT DIVIDEND YIELD

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PECO

TOTAL RETURN FOR REIT II

INVESTORS RANGE FROM:

REGULAR INCOME; STRONG RETURNS (1)

“REIT II” refers to investors that originally invested in Phillips Edison Grocer Center REIT II, Inc.

1. Data as of market close on September 7, 2021.

2. Adjusted for the one-for-three reverse stock split during July 2021 and the merger into PECO in November 2018.investors.phillipsedison.com |

TOTAL CASH DISTRIBUTIONS PER

REIT II SHARE (2) RANGE FROM: CURRENT DIVIDEND YIELD

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PECO

PECO’s brick-and-mortar assets are the future of retail real estate.

OUR CENTERS FACILITATE BUY

ONLINE PICK UP IN STORE OR

“BOPIS”

SITUATED NEAR THE CUSTOMERS,

FACILITATING LAST MILE DELIVERY

FRONT ROW TO GO® PARKING

SPACES

0MNI-CHANNEL LANDLORD


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PECO

OF EXPERIENCE

INSIDER OWNERSHIP

OF MANAGEMENT’S CAPITAL INVESTED

ALONGSIDE YOUR CLIENTS

TOTAL STOCKHOLDER DISTRIBUTIONS (1)

NO THIRD-PARTY ASSET MANAGEMENT

FEES ARE PAID

WELL-ALIGNED & EXPERIENCED

1. Includes all PECO Funds investors.phillipsedison.com |

PECO is committed to being a responsible corporate citizen including environmental, social

and governance (“ESG”) initiatives

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PECO

PORTFOLIO

Exclusively focused on grocery-

anchored centers

____________

Diverse geographic and

Neighbor exposure

____________

$5.6 billion national portfolio –

one of the largest in the U.S.

STRATEGY

Centers anchored by the #1 or

#2 grocer in market

____________

Vertically-integrated, locally-

smart, in-house platform

____________

Small format centers located in

the neighborhood

+ RESULTS & OPPORTUNITIES

Strong financial performance

through all cycles

____________

Consistent track record of

adding stockholder value

____________

Great long-term investment

opportunity

=

How we GROW: Our Value Proposition


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PECO

• July 2021: Closed IPO including 100%

of the over allotment issuing 19.55

million shares at $28.00 per share

• IPO generated a total of $547.4

million of gross proceeds

• PECO’s Common Stock began trading

on the Nasdaq on July 15, 2021

• PECO is the performing stock among

peers since IPO*

• Stockholders include high-quality,

long-only institutional investors:

• MFS, Fidelity, Vanguard, Wellington,

and Prudential

Next Phase of GROWTH: PECO’s Successful IPO

0.0 M

8.0 M

$26

$27

$28

$29

$30

$31

Sept. 7, 2021

Closing price:

$29.80

July 15,

2021

August 31,

2021

Tra

din

g V

olu

me

SINCE IPO

investors.phillipsedison.com | * June 15, 2021 through September 7, 2021, per Yahoo! Finance. Peers include AKR, BRX, KIM, KRG, REG, ROIC and RPT.

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PECO

• PECO will leverage its industry relationships to

continue to build its institutional investor audience.

• Nine institutional research analysts currently write

research on PECO’s common stock:

• Full slate of institutional investor relations events

scheduled before year-end.

Next Phase of GROWTH: Research Analyst Coverage


CONSENSUS PRICE

TARGET

• BMO

• Bank of America

• Green Street

• Goldman Sachs

• JP Morgan

• KeyBanc

• Mizuho

• Morgan Stanley

• Wells Fargo

Analyst consensus price targets are sourced from reports of independent analysts produced as of various dates

prior to the date of this presentation and reflect the views of such analysts based on their respective

assumptions and pricing methodologies. The Company makes no assurances as to such assumptions or pricing

methodologies. Analyst consensus price targets may not reflect the actual value of our common stock as of the

date of this presentation or the trading price our common stock may achieve in the future.

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PECO

Next Phase of GROWTH: Index Inclusion

• The average REIT has 42% of its shares held by index

funds (1)

• PECO’s peers (2) have, on average, 43% of their shares

held by index funds

• PECO expects to be included in at least 11 indices

beginning in 2022

• $1.0 billion of potential buying demand for PECO’s

common stock from index funds during the 12 months

following the expiration of the holding period (1)

Index

42%

Long Only

13%

REIT

Dedicated

35%

Hedge

Fund

5%

Retail

5%

1. Source: BofA index desk, Bloomberg and FactSet as of July 29, 2021, and Q1 2021 filings.

2. Peers include REG, KIM, BRX, RPAI, ROIC, KRG, and RPT, as of Q1 2021 filings. investors.phillipsedison.com |

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PECO

• Distributions from REITs are typically not 100% taxable

because a portion of the distributions is considered

“return of capital”

• For non-qualified accounts, these distributions are

generally not taxable for the investor upon receipt

• As a result, the cost basis is lowered by the same amount

of the “return of capital” (or non-dividend) distribution

• Therefore, REIT I and REIT II investors likely have a cost

basis that is lower than their original purchase amount by

the amount of the dividend paid that was return of capital

www.PhillipsEdison.com/Investors

Next Phase of GROWTH: Cost Basis Considerations*

ESTIMATED AVERAGE COST

BASIS PER SHARE FOR REIT I

INVESTORS (1)

ESTIMATED AVERAGE COST

BASIS PER SHARE FOR REIT II

INVESTORS (2)

* For illustrative purposes only. Please consult your tax professional for any tax-related advice. Each investor is responsible for tracking their own basis.

1. Reflects the one for three reverse stock split that took place on July 2, 2021; assumes all distributions taken in cash.

2. Reflects REIT II’s merger into REIT I that closed in November 2018 and the one for three reverse stock split that took place on July 2, 2021; assumes all distributions taken in cash.investors.phillipsedison.com | Page 13

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Next Phase of GROWTH: Valuation

investors.phillipsedison.com | investors.phillipsedison.com | Page 14

• We believe our stock price is not fully valued(1)

• PECO’s share price has traded at a 6% discount to our

pre-IPO split adjusted estimated value per share

• PECO’s share price has traded at an 8% discount to our

covering research analysts’ consensus price target

• PECO’s share price has traded at a 13% discount to our

targeted peers when using the 2021 Nareit FFO implied

multiple of our targeted peers’ guidance

$29.80

$31.65

$32.23

Share Price

as of

9/07/2021

Pre IPO

Split

Adjusted

Estimated

Value per

Share

Analyst

Consensus

Targeted

Peers (2)

1. As of September 7, 2021.

2. Analyzes the Nareit FFO per share multiple of Regency Centers (Nasdaq: REG) and Retail Opportunity Investments Corp. (Nasdaq: ROIC) based on their 2021 Nareit FFO per

share guidance; then applied to PECO’s 2021 Nareit FFO per share guidance.

GROW with PECO

GROCERY

ANCHORED

REGULAR INCOME;

STRONG RETURNS

OMNI-CHANNEL

LANDLORD

WELL-ALIGNED

& EXPERIENCED


GROWwith

PECO

If you are logged into the webcast, you can submit a question by typing it in the text box and clicking “Submit Question”

Question & Answer Session

Please visit our website for

advisor and investor resources

including frequently asked

questions:

investors.phillipsedison.com


https://investors.phillipsedison.com/

Thank you

[email protected]

INVESTORS.PHILLIPSEDISON.COM

INVESTORS AND NIGO SERVICING: (888) 518-8073

PECO ADVISOR SERVICES: (833) 347-5717

mailto:[email protected]

https://investors.phillipsedison.com/

grow with peco - phillipsedison.gcs-web.com

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