What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2023-02-21 compared with 2022-02-16 · 22 added, 25 removed, 72 unchanged (39% of the section changed)

REAL ESTATE INVESTMENTS —The following table details information for our wholly-owned properties and those owned through our unconsolidated joint ventures as of December 31, 2021, which is the basis for determining the prorated information included in the subsequent tables (dollars and square feet in thousands):

REAL ESTATE INVESTMENTS —The following table details information for our wholly-owned properties and those owned through our unconsolidated joint venture as of December 31, 2022, which is the basis for determining the prorated information included in the subsequent tables (dollars and square feet in thousands):

Ownership Percentage Number of Properties ABR GLA

Wholly-owned properties 100% 271 $ 435,712 31,093

Grocery Retail Partners I 14% 20 29,516 2,211

Necessity Retail Partners 20% 1 2,268 116

The following table presents information regarding the geographic location of our properties, including wholly-owned and the prorated portion of those owned through our unconsolidated joint ventures, by ABR as of December 31, 2021.

GRP I 14% 20 30,542 2,209

In May 2022, we sold the final property in our NRP joint venture.

For additional portfolio information, refer to “Schedule III - Real Estate Assets and Accumulated Depreciation” (dollars and square feet in thousands):

10 unchanged sentences

Virginia 21,980 5.0 % 16.80 1,363 4.3 % 96.0 % 13

Massachusetts 15,856 3.9 % 14.17 1,145 3.7 % 97.8 % 9

Minnesota 17,971 4.1 % 14.65 1,265 4.0 % 96.9 % 12

Massachusetts 16,259 3.7 % 14.72 1,146 3.7 % 96.4 % 9

Nevada 13,124 3.0 % 21.93 623 2.0 % 96.0 % 5

Pennsylvania 12,068 2.7 % 12.27 1,001 3.2 % 98.3 % 6

3 unchanged sentences

South Carolina 9,329 2.1 % 11.19 867 2.8 % 96.2 % 8

Nevada 8,580 2.1 % 18.62 475 1.5 % 97.1 % 4

North Carolina 8,184 1.9 % 12.49 659 2.1 % 99.5 % 10

Michigan 6,783 1.7 % 9.44 724 2.3 % 99.4 % 5

Indiana 6,981 1.6 % 8.71 832 2.7 % 96.2 % 5

Michigan 6,903 1.6 % 9.58 723 2.3 % 99.7 % 5

Kentucky 6,511 1.5 % 10.67 616 2.0 % 99.1 % 4

Tennessee 5,896 1.3 % 8.61 692 2.2 % 99.0 % 4

1 unchanged sentence

New Mexico 5,591 1.3 % 14.52 404 1.3 % 95.3 % 3

Kentucky 4,915 1.2 % 10.05 502 1.6 % 97.5 % 3

Oregon 4,724 1.1 % 15.48 314 1.0 % 97.2 % 4

1 unchanged sentence

New Jersey 4,152 0.9 % 24.50 169 0.5 % 100.0 % 1

Iowa 2,885 0.7 % 9.05 359 1.2 % 88.9 % 3

Washington 2,741 0.6 % 16.16 173 0.6 % 98.1 % 2

Iowa 2,623 0.6 % 7.67 360 1.1 % 95.2 % 3

Missouri 2,577 0.6 % 11.91 222 0.7 % 97.6 % 2

3 unchanged sentences

(1) We calculate ABR as monthly contractual base rent as of December 31, 2022, multiplied by twelve months.

(2) GLA is defined as the total occupied and unoccupied square footage of a building that is available for Neighbors to lease.

(2) Gross leasable area (“GLA”) is defined as the total occupied and unoccupied square footage of a building that is available for Neighbors to lease.

PHILLIPS EDISON & COMPANY

DECEMBER 31, 2022 FORM 10-K

LEASE EXPIRATIONS —The following chart shows the aggregate scheduled lease expirations, excluding our Neighbors who are occupying space on a temporary basis, after December 31, 2021 for each of the next ten years and thereafter for our wholly-owned properties and the prorated portion of those owned through our unconsolidated joint ventures:

LEASE EXPIRATIONS —The following chart shows the aggregate scheduled lease expirations, excluding our Neighbors who are occupying space on a temporary basis, after December 31, 2022 for each of the next ten years and thereafter for our wholly-owned properties and the prorated portion of those owned through our unconsolidated joint venture:

Our ability to create rental rate growth generally depends on our leverage during new and renewal lease negotiations with prospective and existing Neighbors, which typically occurs when occupancy at our centers is high or during periods of economic growth and recovery.

Conversely, we may experience rental rate decline when occupancy at our centers is low or during periods of economic recession, as the leverage during new and renewal lease negotiations may shift to prospective and existing Neighbors.

For our wholly-owned properties and those owned through our unconsolidated joint ventures, during the 2022 fiscal year, we have a total of 639 leases expiring, representing 2.3 million square feet of GLA.

For our wholly-owned properties and those owned through our unconsolidated joint venture, during the 2023 fiscal year, we have a total of 595 leases expiring, representing 2.3 million square feet of GLA.

For our wholly-owned properties, during the 2023 fiscal year, we have 547 leases expiring, representing 2.2 million square feet of GLA.

8 unchanged sentences

Regional Neighbors are defined as those Neighbors that have at least three locations in fewer than three states.

The following charts present the composition of our portfolio, including our wholly-owned properties and the prorated portion of those owned through our unconsolidated joint ventures, by Neighbor type as of December 31, 2021:

The following charts present the composition of our portfolio by Neighbor industry as of December 31, 2022:

2 unchanged sentences

NECESSITY-BASED GOODS AND SERVICES —We define “necessity-based goods and services” as goods and services that are indispensable, necessary, or common for day-to-day living, or that tend to be inelastic (i.e., those for which the demand does not change based on a consumer’s income level).

We estimate that approximately 72% of our ABR, including the pro rata portion attributable to properties owned through our unconsolidated joint ventures, is generated from Neighbors providing necessity-based goods and services.

Additionally, within Necessity-based goods and services, we estimate that approximately 49% of our ABR is generated from retail and service businesses generally deemed essential under most state and local mandates issued in response to the COVID-19 pandemic, including those that may have temporarily closed at various points during the pandemic due to decreases in foot traffic and customer patronage as a result of “stay-at-home” mandates and social distancing guidelines implemented in response to the pandemic.

TOP TWENTY NEIGHBORS —The following table presents our top twenty Neighbors by ABR, including our wholly-owned properties and the prorated portion of those owned through our unconsolidated joint ventures, as of December 31, 2021 (dollars and square feet in thousands):

We estimate that approximately 71% of our ABR, including the pro rata portion attributable to properties owned through our unconsolidated joint venture, is generated from Neighbors providing necessity-based goods and services.

TOP TWENTY NEIGHBORS —The following table presents our top 20 Neighbors by ABR, including our wholly-owned properties and the prorated portion of those owned through our unconsolidated joint venture, as of December 31, 2022 (dollars and square feet in thousands):

ABR % of ABR Leased

2 unchanged sentences

Publix 24,125 5.5 % 2,321 7.6 % 57

Albertsons-Safeway 17,253 4.2 % 1,648 5.5 % 30

Albertsons 18,232 4.1 % 1,709 5.6 % 31

Ahold Delhaize 17,738 4.0 % 1,249 4.1 % 23

6 unchanged sentences

SUPERVALU 3,244 0.7 % 336 1.1 % 5

Lowe's 2,470 0.6 % 369 1.2 % 4

Subway Group 2,415 0.5 % 93 0.3 % 65

Starbucks Corporation 2,369 0.5 % 53 0.2 % 32

Anytime Fitness, Inc.

2,308 0.5 % 140 0.5 % 29

Schnucks 2,571 0.6 % 249 0.8 % 4

Lowe's 2,469 0.6 % 369 1.2 % 4

Kohl's Corporation 2,241 0.6 % 365 1.2 % 4

Food 4 Less (PAQ) 2,305 0.5 % 118 0.4 % 2

Kohl's Corporation 2,241 0.5 % 365 1.2 % 4

Office Depot 2,237 0.5 % 179 0.6 % 8

United Parcel Service 2,211 0.5 % 83 0.3 % 65

Save Mart 2,174 0.5 % 258 0.8 % 5

Petco Animal Supplies, Inc.

2,136 0.5 % 127 0.4 % 11

Franchise Group, Inc.

2,057 0.5 % 146 0.6 % 24

Total $ 148,969 33.7 % 14,782 48.5 % 488

1 unchanged sentence

(2) Number of locations excludes auxiliary leases with grocery anchors such as fuel stations, pharmacies, and liquor stores.

Additionally, in the event that a parent company has multiple subsidiaries or banners in a shopping center, those subsidiaries are included as one location.

Additionally, if a parent company has multiple subsidiaries or banners in a single shopping center, those subsidiaries are included as one location.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties