Phillips Edison & Company, Inc. 10-K

ITEM 9A. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures As required by Rule 13a-15(b) and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), our management, with the participation of our Principal Executive Officer and Principal Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) as of December 31, 2023. Based on that evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) were effective as of December 31, 2023, at a reasonable assurance level. Management’s Annual Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Exchange Act Rule 13a-15(f) and Rule 15d-15(f). Our system of internal control over financial reporting is designed to provide reasonable assurance regarding the preparation and fair presentation of the consolidated financial statements for external purposes in accordance with GAAP. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can only provide reasonable assurance with respect to financial statement preparation and presentation. Also, because of changes in conditions, the effectiveness of an internal control system may vary over time. Under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on our evaluation under the framework in Internal Control - Integrated Framework (2013) issued by the COSO, our management concluded that our internal control over financial reporting was effective as of December 31, 2023. Deloitte & Touche LLP, an independent registered public accounting firm that audited our financial statements, which are included in Item 8 of this Annual Report on Form 10-K, has issued an attestation report on management’s internal control over financial reporting, which is included in this Item 9A under the caption "Report of Independent Registered Public Accounting Firm”. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K 45 Changes in Internal Control over Financial Reporting During the quarter ended December 31, 2023, there were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K 46 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of Phillips Edison & Company, Inc. Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of Phillips Edison & Company, Inc. and subsidiaries (the “Company”) as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2023, of the Company and our report dated February 12, 2024, expressed an unqualified opinion on those financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Deloitte & Touche LLP Cincinnati, Ohio February 12, 2024 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K 47 ITEM 9B. OTHER INFORMATION Not applicable . ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable. w PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE The information required by this Item is included under the caption “Information about our Executive Officers” in Part I hereof or will be included in our definitive proxy statement to be filed with the U.S. Securities and Exchange Commission (“SEC”) within 120 days after December 31, 2023 in connection with the Company's 2024 Annual Meeting of Stockholders, and is hereby incorporated by reference into this Form 10-K. ITEM 11. EXECUTIVE COMPENSATION The information required by this Item will be included in our definitive proxy statement to be filed with the SEC within 120 days after December 31, 2023 in connection with the Company's 2024 Annual Meeting of Stockholders, and is hereby incorporated by reference into this Form 10-K. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The information required by this Item will be included in our definitive proxy statement to be filed with the SEC within 120 days after December 31, 2023 in connection with the Company's 2024 Annual Meeting of Stockholders, and is hereby incorporated by reference into this Form 10-K. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE The information required by this Item will be included in our definitive proxy statement to be filed with the SEC within 120 days after December 31, 2023 in connection with the Company's 2024 Annual Meeting of Stockholders, and is hereby incorporated by reference into this Form 10-K. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES The information required by this Item will be included in our definitive proxy statement to be filed with the SEC within 120 days after December 31, 2023 in connection with the Company's 2024 Annual Meeting of Stockholders, and is hereby incorporated by reference into this Form 10-K. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K 48 w PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a) Financial Statement Schedules See the Index to Consolidated Financial Statements on page F-1 of this report. (b) Exhibits Ex. Description Reference 2.1 Contribution Agreement, dated as of May 18, 2017, between Phillips Edison Grocery Center REIT I, Inc., Phillips Edison Grocery Center Operating Partnership I, L.P., and the Contributors Listed Therein Form 8-K, filed May 23, 2017, Exhibit 2.1 2.2 Amendment to Contribution Agreement, between Phillips Edison & Company, Inc. (f/k/a Phillips Edison Grocery Center REIT I, Inc.), Phillips Edison Grocery Center Operating Partnership I, L.P., and the Contributors listed therein, dated as of March 12, 2019 Form 10-K, filed March 13, 2019, Exhibit 2.2 3.1 Fifth Articles of Amendment and Restatement of Phillips Edison & Company, Inc., as amended Form 10-Q, filed May 5, 2022, Exhibit 3.1 3.2 Fifth Amended and Restated Bylaws of Phillips Edison & Company, Inc. Form 8-K, filed July 19, 2021, Exhibit 3.1 4.1 Statement regarding restrictions on transferability of shares of common stock (to appear on stock certificate or to be sent upon request and without charge to stockholders issued shares without certificates) Form S-11, filed March 1, 2010, Exhibit 4.2 4.2 Third Amended and Restated Dividend Reinvestment Plan Form S-3, filed October 31, 2019, Exhibit 4.7 4.3 Phillips Edison & Company, Inc. Fourth Amended and Restated Share Repurchase Program, dated January 14, 2021 Form 8-K, filed January 14, 2021, Exhibit 99.1 4.4 Fourth Amended and Restated Agreement of Limited Partnership of Phillips Edison Grocery Center Operating Partnership I, L.P. Form 10-K, filed March 30, 2018, Exhibit 4.4 4.5 Description of Phillip s Edison & Company, Inc.’s Securities Registered Under Section 12 of the Securities Exchange Act of 1934 Form 10-K, filed March 12, 2021, Exhibit 4.5 4.6 Indenture, dated as of October 6, 2021, by and among Phillips Edison Grocery Center Operating Partnership I, L.P., as issuer, Phillips Edison & Company, Inc., as guarantor, and U.S. Bank National Association, as trustee Form 8-K, filed October 6, 2021, Exhibit 4.1 4.7 First Supplemental Indenture, dated as of October 6, 2021, by and among Phillips Edison Grocery Center Operating Partnership I, L.P., as issuer, Phillips Edison & Company, Inc., as guarantor, and U.S. Bank National Association, as trustee Form 8-K, filed October 6, 2021, Exhibit 4.2 10.1 Tax Protection Agreement dated as of October 4, 2017 by and among Phillips Edison Grocery Center REIT I, Inc., Phillips Edison Grocery Center Operating Partnership I, L.P. and each Protected Partner identified as a signatory on Schedule I, as amended from time to time Form 8-K, filed October 11, 2017, Exhibit 10.2 10.2 Tax Protection Agreement by and among Phillips Edison & Company, Inc., Phillips Edison Grocery Center Operating Partnership I, L.P., and each Protected Partner identified as a signatory on Schedule I Form 8-K, filed July 19, 2021, Exhibit 10.1 10.3 Equityholder Agreement dated October 4, 2017 by and among Phillips Edison Grocery Center REIT I, Inc., Phillips Edison Grocery Center Operating Partnership I, L.P. and each of the individuals signatory thereto Form 8-K, filed October 11, 2017, Exhibit 10.3 10.4 Credit Agreement among Phillips Edison Grocery Center Operating Partnership I, L.P., Phillips Edison & Company, Inc., the lenders party thereto, and PNC Bank, National Association as administrative agent, dated July 2, 2021 Form 8-K, filed July 2, 2021, Exhibit 10.1 10.5 First Amendment to the Credit Agreement among Phillips Edison Grocery Center Operating Partnership I, L.P., Phillips Edison & Company, Inc., the lenders party thereto, and PNC Bank, National Association as administrative agent, dated May 20, 2022 Form 8-K, filed May 20, 2022, Exhibit 10.1 10.6 Loan Agreement by and among the Borrowers and Teachers Insurance and Annuity Association of America, dated October 4, 2017 Form 10-Q, filed November 9, 2017, Exhibit 10.10 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K 49 Ex. Description Reference 10.7 Form of Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing Form 10-Q, filed November 9, 2017, Exhibit 10.11 10.8 Phillips Edison & Company, Inc. 2020 Omnibus Incentive Plan* Schedule 14A, filed April 7, 2020, Appendix A 10.9 First Amendment to Phillips Edison & Company, Inc. 2020 Omnibus Incentive Plan * Schedule 14A, filed April 9, 2021, Appendix A 10.10 Amended and Restated 2010 Independent Director Stock Plan* Form S-11/A, filed August 11, 2010, Exhibit 10.3 10.11 Amended and Restated 2010 Long-Term Incentive Plan* Form 10-Q, filed November 9, 2017, Exhibit 10.14 10.12 Phillips Edison and Company, Inc. Amended & Restated Executive Severance and Change in Control Plan dated March 11, 2020* Form S-11/A, filed July 7, 2021, Exhibit 10.19 10.13 Equity Vesting Agreement with Devin Murphy dated October 2, 2017* Form 10-Q, filed November 9, 2017, Exhibit 10.15 10.14 Participation Agreement for Jeffrey Edison dated October 4, 2017* Form 10-Q, filed November 9, 2017, Exhibit 10.16 10.15 Participation Agreement for Devin Murphy dated October 4, 2017* Form 10-Q, filed November 9, 2017, Exhibit 10.17 10.16 Participation Agreement for Robert Myers dated October 4, 2017* Form 10-Q, filed November 9, 2017, Exhibit 10.18 10.17 Participation Agreement for Tanya Brady dated March 12, 2019* Form 10-K, filed March 13, 2019, Exhibit 10.23 10.18 Participation Agreement for John Caulfield dated August 7, 2019* Form 10-Q, filed August 12, 2019, Exhibit 10.1 10.19 2019 Performance LTIP Unit Award Agreement for Jeffrey S. Edison, dated March 12, 2019* Form 10-K, filed March 13, 2019, Exhibit 10.26 10.20 Amendment to 2019 Performance LTIP Unit Award Agreement for Jeffrey S. Edison, dated March 11, 2020* Form 10-K, filed March 12, 2020, Exhibit 10.22 10.21 2019 Performance LTIP Unit Award Agreement for Devin I. Murphy, dated March 12, 2019* Form 10-K, filed March 13, 2019, Exhibit 10.27 10.22 Amendment to 2019 Performance LTIP Unit Award Agreement for Devin I. Murphy, dated March 11, 2020* Form 10-K, filed March 12, 2020, Exhibit 10.24 10.23 Form of LTIP Listing Equity Grant* Form S-11/A, filed July 7, 2021, Exhibit 10.32 10.24 Form of LTIP Listing Equity Grant (Murphy)* Form S-11/A, filed July 7, 2021, Exhibit 10.33 10.25 Form of RSU Listing Equity Grant* Form S-11/A, filed July 7, 2021, Exhibit 10.34 10.26 Form of Restricted Stock Listing Equity Grant* Form S-11/A, filed July 7, 2021, Exhibit 10.35 10.27 Form of Performance LTIP Unit Award Agreement (2022)* Form 8-K, filed March 4, 2022, Exhibit 10.1 10.28 Form of Performance LTIP Unit Award Agreement (2022 - Murphy)* Form 8-K, filed March 4, 2022, Exhibit 10.2 10.29 Form of Time-Based LTIP Unit Award Agreement (2022)* Form 8-K, filed March 4, 2022, Exhibit 10.3 10.30 Form of Time-Based LTIP Unit Award Agreement (2022 - Murphy)* Form 8-K, filed March 4, 2022, Exhibit 10.4 10.31 Second Amended and Restated Credit Agreement, dated as of July 31, 2023, among Phillips Edison Grocery Center Operating Partnership I, L.P., Phillips Edison & Company, Inc., the lenders party thereto, and Bank of America, N.A., as administrative agent Form 10-Q, filed August 2, 2023, Exhibit 10.1 10.32 Amended and Restated Credit Agreement, dated as of July 31, 2023, among Phillips Edison Grocery Center Operating Partnership I, L.P., Phillips Edison & Company, Inc., the lenders party thereto and Capital One, National Association, as administrative agent Form 10-Q, filed August 2, 2023, Exhibit 10.2 10.33 Amended and Restated Credit Agreement, dated as of July 31, 2023, among Phillips Edison Grocery Center Operating Partnership I, L.P., Phillips Edison & Company, Inc., the lenders party thereto and KeyBank National Association, as administrative agent Form 10-Q, filed August 2, 2023, Exhibit 10.3 21.1 Subsidiaries of the Company** 22.1 List of Issuers of Guaranteed Securities** 23.1 Consent of Deloitte & Touche LLP** 31.1 Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002** PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K 50 Ex. Description Reference 31.2 Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002** 32.1 Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002*** 32.2 Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002*** 97 Phillips Edison & Company, Inc. Policy for Recovery of Erroneously Awarded Compensation** 101.1 The following information from the Company’s annual report on Form 10-K for the year ended December 31, 2023, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations and Comprehensive Income; (iii) Consolidated Statements of Equity; and (iv) Consolidated Statements of Cash Flows 101.INS Inline XBRL Instance Document 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) * Management Contract or Compensatory Plan ** Filed herewith *** Furnished herewith ITEM 16. FORM 10-K SUMMARY Not applicable. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K 51 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Financial Statements Page Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34 ) F- 2 Consolidated Balance Sheets as of December 31, 2023 and 2022 F- 4 Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2023, 2022, and 2021 F- 5 Consolidated Statements of Equity for the Years Ended December 31, 2023, 2022, and 2021 F- 6 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2022, and 2021 F- 7 Notes to Consolidated Financial Statements F- 9 Schedule III - Real Estate Assets and Accumulated Depreciation * F- 33 * All schedules other than the one listed in the index have been omitted as the required information is either not applicable or the information is already presented in the consolidated financial statements or the related notes. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of Phillips Edison & Company, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Phillips Edison & Company, Inc. and subsidiaries (the “Company”) as of December 31, 2023 and 2022, the related consolidated statements of operations and comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 12, 2024, expressed an unqualified opinion on the Company's internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Allocation of Purchase Price for Investment in Real Estate Assets — Refer to Notes 2 and 4 to the financial statements Critical Audit Matter Description During the year ended December 31, 2023, the Company acquired eleven properties and three outparcels for an aggregate purchase price of $278 million. The Company accounted for the acquisitions as asset acquisitions. Accordingly, the purchase price paid for assets acquired and liabilities assumed was allocated, based on their relative fair values, to building and building improvements, land and land improvements, furniture, fixtures, and equipment, in-place leases, and other intangible assets and assumed liabilities. Estimates of fair values were based upon assumptions that the Company believes are similar to those used by independent appraisers. Valuation assumptions utilized include comparable sales transactions, costs to replace certain assets, market rents, discount rates, and terminal capitalization rates. We identified the acquisitions as a critical audit matter because of the significant estimates management makes to determine the fair values of assets acquired and liabilities assumed. This required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists, when performing audit procedures to evaluate the reasonableness of management’s assumptions. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to allocation of purchase price for investment in real estate assets included the following, among others: • We tested the effectiveness of controls over the purchase price allocation, including management’s controls over the identification of real estate assets, and the valuation methodology for estimating the fair value of assets acquired and liabilities assumed. • For each acquisition: ◦ We obtained and evaluated the third-party purchase price allocation report, along with relevant supporting documentation, such as the executed purchase and sale agreement, property condition assessment, executed closing statement, and recorded journal entry in order to corroborate our understanding of the substance of the acquisition obtained through inquiry with the Company’s management, as well as assess the completeness of the assets acquired and liabilities assumed as part of the acquisition. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-2 ◦ We tested the fair value estimates allocated to the assets acquired and liabilities assumed by comparing the estimates to average historical allocations determined by the Company to identify outliers for further investigation. • With the assistance of our fair value specialists, for those acquisitions that we deemed to possess characteristics of additional audit interest, we: ◦ Evaluated the reasonableness of the valuation and allocation methodology and related inputs, including comparable sales transactions, costs to replace certain assets, market rents, discount rates, and terminal capitalization rates. ◦ Tested the mathematical accuracy of the calculations and compared the key inputs used in the projections to external market sources. /s/ Deloitte & Touche LLP Cincinnati, Ohio February 12, 2024 We have served as the Company's auditor since 2009. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-3 PHILLIPS EDISON & COMPANY, INC. CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2023 AND 2022 (In thousands, except per share amounts) 2023 2022 ASSETS Investment in real estate: Land and improvements $ 1,768,487 $ 1,674,133 Building and improvements 3,818,184 3,572,146 In-place lease assets 495,525 471,507 Above-market lease assets 74,446 71,954 Total investment in real estate assets 6,156,642 5,789,740 Accumulated depreciation and amortization ( 1,540,551 ) ( 1,316,743 ) Net investment in real estate assets 4,616,091 4,472,997 Investment in unconsolidated joint ventures 25,220 27,201 Total investment in real estate assets, net 4,641,311 4,500,198 Cash and cash equivalents 4,872 5,478 Restricted cash 4,006 11,871 Goodwill 29,066 29,066 Other assets, net 186,411 188,879 Total assets $ 4,865,666 $ 4,735,492 LIABILITIES AND EQUITY Liabilities: Debt obligations, net $ 1,969,272 $ 1,896,594 Below-market lease liabilities, net 108,223 109,799 Accounts payable and other liabilities 116,461 113,185 Deferred income 18,359 18,481 Total liabilities 2,212,315 2,138,059 Commitments and contingencies (see Note 11) — — Equity: Preferred stock, $ 0.01 par value per share, 10,000 shares authorized, zero shares issued and outstanding at December 31, 2023 and 2022 — — Common stock, $ 0.01 par value per share, 1,000,000 shares authorized, 122,024 and 117,126 shares issued and outstanding at December 31, 2023 and 2022, respectively 1,220 1,171 Additional paid-in capital (“APIC”) 3,546,838 3,383,978 Accumulated other comprehensive income (“AOCI”) 10,523 21,003 Accumulated deficit ( 1,248,273 ) ( 1,169,665 ) Total stockholders’ equity 2,310,308 2,236,487 Noncontrolling interests 343,043 360,946 Total equity 2,653,351 2,597,433 Total liabilities and equity $ 4,865,666 $ 4,735,492 See notes to consolidated financial statements. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-4 PHILLIPS EDISON & COMPANY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023, 2022, AND 2021 (In thousands, except per share amounts) 2023 2022 2021 Revenues: Rental income $ 597,501 $ 560,538 $ 519,495 Fees and management income 9,646 11,541 10,335 Other property income 2,977 3,293 3,016 Total revenues 610,124 575,372 532,846 Operating Expenses: Property operating 102,303 95,359 92,914 Real estate taxes 72,816 67,864 65,381 General and administrative 44,366 45,235 48,820 Depreciation and amortization 236,443 236,224 221,433 Impairment of real estate assets — 322 6,754 Total operating expenses 455,928 445,004 435,302 Other: Interest expense, net ( 84,232 ) ( 71,196 ) ( 76,371 ) Gain on disposal of property, net 1,110 7,517 30,421 Other expense, net ( 7,312 ) ( 12,160 ) ( 34,361 ) Net income 63,762 54,529 17,233 Net income attributable to noncontrolling interests ( 6,914 ) ( 6,206 ) ( 2,112 ) Net income attributable to stockholders $ 56,848 $ 48,323 $ 15,121 Earnings per share of common stock: Net income per share attributable to stockholders - basic and diluted (see Note 14) $ 0.48 $ 0.42 $ 0.15 Comprehensive income: Net income $ 63,762 $ 54,529 $ 17,233 Other comprehensive (loss) income: Change in unrealized value on interest rate swaps ( 11,816 ) 51,285 32,000 Comprehensive income 51,946 105,814 49,233 Net income attributable to noncontrolling interests ( 6,914 ) ( 6,206 ) ( 2,112 ) Change in unrealized value on interest rate swaps attributable to noncontrolling interests 1,265 ( 5,736 ) ( 4,500 ) Reallocation of comprehensive income (loss) upon conversion of noncontrolling interests 71 273 ( 13 ) Comprehensive income attributable to stockholders $ 46,368 $ 94,145 $ 42,608 See notes to consolidated financial statements. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-5 PHILLIPS EDISON & COMPANY, INC. CONSOLIDATED STATEMENTS OF EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023, 2022, AND 2021 (In thousands, except per share amounts) Common Stock Class B Common Stock APIC AOCI Accumulated Deficit Total Stockholders’ Equity Noncontrolling Interests Total Equity Shares Amount Shares Amount Balance at January 1, 2021 — $ — 93,279 $ 2,798 $ 2,739,358 $ ( 52,306 ) $ ( 999,491 ) $ 1,690,359 $ 325,570 $ 2,015,929 Issuance of common stock 19,550 196 — — 547,205 — — 547,401 — 547,401 Offering costs, discounts, and commissions — — — — ( 39,048 ) — — ( 39,048 ) — ( 39,048 ) Dividend reinvestment plan (“DRIP”) — — 280 8 7,360 — — 7,368 — 7,368 Share repurchases — — ( 24 ) — ( 123 ) — — ( 123 ) — ( 123 ) Change in unrealized value on interest rate swaps — — — — — 27,500 — 27,500 4,500 32,000 Common distributions declared, $ 1.035 per share — — — — — — ( 106,467 ) ( 106,467 ) — ( 106,467 ) Distributions to noncontrolling interests — — — — — — — — ( 14,332 ) ( 14,332 ) Share-based compensation — — 102 1 6,753 — — 6,754 9,640 16,394 Conversion of noncontrolling interests — — 28 — 691 ( 13 ) — 678 ( 678 ) — Impact of reverse stock split — — — ( 1,871 ) 1,871 — — — — — Other — — — — ( 29 ) — — ( 29 ) — ( 29 ) Net income — — — — — — 15,121 15,121 2,112 17,233 Balance at December 31, 2021 19,550 196 93,665 936 3,264,038 ( 24,819 ) ( 1,090,837 ) 2,149,514 326,812 2,476,326 Conversion of Class B common stock 93,665 936 ( 93,665 ) ( 936 ) — — — — — — Issuance of common stock 2,633 26 — — 90,098 — — 90,124 — 90,124 Offering costs, discounts, and commissions — — — — ( 1,090 ) — — ( 1,090 ) — ( 1,090 ) Change in unrealized value on interest rate swaps — — — — — 45,549 — 45,549 5,736 51,285 Common distributions declared, $ 1.0932 per share — — — — — — ( 127,151 ) ( 127,151 ) — ( 127,151 ) Distributions to noncontrolling interests — — — — — — — — ( 16,241 ) ( 16,241 ) Share-based compensation 109 1 — — 5,528 — — 5,529 9,877 15,406 Conversion of noncontrolling interests 1,169 12 — — 25,404 273 — 25,689 ( 25,689 ) — Settlement of earn-out liability — — — — — — — — 54,245 54,245 Net income — — — — — — 48,323 48,323 6,206 54,529 Balance at December 31, 2022 117,126 1,171 — — 3,383,978 21,003 ( 1,169,665 ) 2,236,487 360,946 2,597,433 Issuance of common stock 4,170 42 — — 150,793 — — 150,835 — 150,835 Offering costs, discounts, and commissions — — — — ( 1,939 ) — — ( 1,939 ) — ( 1,939 ) Change in unrealized value on interest rate swaps — — — — — ( 10,551 ) — ( 10,551 ) ( 1,265 ) ( 11,816 ) Common distributions declared, $ 1.1364 per share — — — — — — ( 135,456 ) ( 135,456 ) — ( 135,456 ) Distributions to noncontrolling interests — — — — — — — — ( 16,334 ) ( 16,334 ) Share-based compensation 211 2 — — 1,164 — — 1,166 5,700 6,866 Conversion of noncontrolling interests 517 5 — — 12,842 71 — 12,918 ( 12,918 ) — Net income — — — — — — 56,848 56,848 6,914 63,762 Balance at December 31, 2023 122,024 $ 1,220 — $ — $ 3,546,838 $ 10,523 $ ( 1,248,273 ) $ 2,310,308 $ 343,043 $ 2,653,351 See notes to consolidated financial statements. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-6 PHILLIPS EDISON & COMPANY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023, 2022, AND 2021 (In thousands) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 63,762 $ 54,529 $ 17,233 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of real estate assets 234,260 232,571 217,564 Impairment of real estate assets — 322 6,754 Depreciation and amortization of corporate assets 2,183 3,653 3,869 Net amortization of above- and below-market leases ( 5,178 ) ( 4,324 ) ( 3,581 ) Amortization of deferred financing expenses 4,237 3,410 4,416 Amortization of debt and derivative adjustments 2,884 2,473 1,846 Loss (gain) on extinguishment or modification of debt, net 368 ( 95 ) 1,996 Gain on disposal of property, net ( 1,110 ) ( 7,517 ) ( 30,421 ) Impairment of investment in third parties 3,000 — — Change in fair value of earn-out liability — 1,809 30,436 Straight-line rent ( 10,145 ) ( 12,301 ) ( 9,427 ) Share-based compensation 6,866 15,406 16,394 Return on investment in unconsolidated joint ventures 271 1,253 2,696 Other ( 1,018 ) ( 107 ) ( 883 ) Changes in operating assets and liabilities: Other assets, net ( 11,524 ) ( 10,147 ) ( 4,498 ) Accounts payable and other liabilities 2,112 9,955 8,508 Net cash provided by operating activities 290,968 290,890 262,902 CASH FLOWS FROM INVESTING ACTIVITIES: Real estate acquisitions ( 270,262 ) ( 282,000 ) ( 308,358 ) Capital expenditures ( 95,262 ) ( 104,495 ) ( 75,035 ) Proceeds from sale of real estate, net 7,208 52,019 206,377 Investment in third parties — — ( 3,000 ) Return of investment in unconsolidated joint ventures 1,969 4,151 5,039 Investment in marketable securities — ( 3,000 ) ( 5,514 ) Proceeds from sale of marketable securities 400 — — Insurance proceeds for property damage claims 2,561 2,080 — Net cash used in investing activities ( 353,386 ) ( 331,245 ) ( 180,491 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the issuance of common stock 149,135 90,124 547,401 Payment of offering costs ( 1,939 ) ( 1,090 ) ( 39,048 ) Repurchases of Class B common stock — — ( 77,765 ) Proceeds from revolving credit facility 503,000 376,000 9,000 Payments on revolving credit facility ( 401,000 ) ( 297,000 ) ( 9,000 ) Proceeds from notes and loans payable 58,000 — 822,018 Payments on mortgages and loans payable ( 101,504 ) ( 81,920 ) ( 1,229,715 ) Distributions paid, net of DRIP ( 135,749 ) ( 127,083 ) ( 106,699 ) Distributions to noncontrolling interests ( 15,996 ) ( 16,856 ) ( 14,982 ) Other — — ( 29 ) Net cash provided by (used in) financing activities 53,947 ( 57,825 ) ( 98,819 ) NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH ( 8,471 ) ( 98,180 ) ( 16,408 ) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: Beginning of year 17,349 115,529 131,937 End of year $ 8,878 $ 17,349 $ 115,529 RECONCILIATION TO CONSOLIDATED BALANCE SHEETS Cash and cash equivalents $ 4,872 $ 5,478 $ 92,585 Restricted cash 4,006 11,871 22,944 Cash, cash equivalents, and restricted cash at end of year $ 8,878 $ 17,349 $ 115,529 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-7 PHILLIPS EDISON & COMPANY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) FOR THE YEARS ENDED DECEMBER 31, 2023, 2022, AND 2021 (In thousands) 2023 2022 2021 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for interest $ 76,479 $ 65,096 $ 68,092 Cash paid for income taxes, net 689 194 559 SUPPLEMENTAL SCHEDULE OF NON-CASH ACTIVITIES: Settlement of earn-out liability — 54,245 — Right-of-use (“ROU”) assets obtained in exchange for new lease liabilities 887 36 902 Accrued capital expenditures 9,892 9,834 6,443 Receivable from issuance of common stock 1,700 — — Investment in third party — 6,800 — Contribution of corporate assets — ( 4,304 ) — Assumed debt obligations, net 9,614 — — Assumed below-market debt 444 — — Above-market contract — ( 2,496 ) — Change in distributions payable ( 293 ) 68 ( 7,600 ) Change in distributions payable - noncontrolling interests 338 ( 615 ) ( 650 ) Distributions reinvested — — 7,368 See notes to consolidated financial statements. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-8 Phillips Edison & Company, Inc. Notes to Consolidated Financial Statements 1. ORGANIZATION Phillips Edison & Company, Inc. (“we,” the “Company,” “PECO,” “our,” or “us”) was formed as a Maryland corporation in October 2009. Substantially all of our business is conducted through Phillips Edison Grocery Center Operating Partnership I, L.P. (the “Operating Partnership”), a Delaware limited partnership formed in December 2009. We are a limited partner of the Operating Partnership, and our wholly-owned subsidiary, Phillips Edison Grocery Center OP GP I LLC, is the sole general partner of the Operating Partnership. We are a real estate investment trust (“REIT”) that invests primarily in omni-channel grocery-anchored neighborhood and community shopping centers that have a mix of creditworthy national, regional, and local retailers that sell necessity-based goods and services in strong demographic markets throughout the United States. In addition to managing our own shopping centers, our third-party investment management business provides comprehensive real estate and asset management services to two unconsolidated institutional joint ventures, in which we have partial ownership interests, and one private fund (collectively, the “Managed Funds”). As of December 31, 2023, we wholly-owned 281 real estate properties. Additionally, we owned a 14 % interest in Grocery Retail Partners I LLC (“GRP I”), which owned 20 properties. On July 19, 2021, we closed our underwritten initial public offering (“underwritten IPO”), through which we issued 19.6 million shares, including the underwriters’ overallotment election, of a new class of common stock, $ 0.01 par value per share, at an initial price to the public of $ 28.00 per share. As a result of the underwritten IPO, we received gross proceeds of $ 547.4 million. The basis of presentation of our shares of common stock is described as follows: • Reverse Stock Split—On July 2, 2021, our board of directors (the “Board”) approved an amendment to our charter to effect a one-for-three reverse stock split. Concurrent with the reverse split, the Operating Partnership enacted a one-for-three reverse split of its outstanding Operating Partnership units (“OP units”). Unless otherwise indicated, the information in this Form 10-K gives effect to the reverse stock and OP unit splits (see Note 12). • Recapitalization—On June 18, 2021, our stockholders approved an amendment to our charter (the “Articles of Amendment”) that effected a change of each share of our common stock outstanding at the time the amendment became effective into one share of a newly created class of Class B common stock (the “Recapitalization”). The Articles of Amendment became effective upon filing with, and acceptance by, the State Department of Assessments and Taxation of Maryland on July 2, 2021. Unless otherwise indicated, all information in this Form 10-K gives effect to the Recapitalization and references to “shares” and per share metrics refer to our common stock and Class B common stock, collectively. Our Class B common stock automatically converted into our publicly traded common stock on January 18, 2022 (see Note 12). Prior to the conversion, we have presented common stock and Class B common stock as separate classes within our consolidated balance sheets and consolidated statements of equity. On May 5, 2022, we filed Articles Supplementary to our charter with the Maryland State Department of Assessments and Taxation in order to reclassify and designate all of the 350 million authorized shares of our Class B common stock, $ 0.01 par value per share, all of which were unissued at such time, as shares of our common stock, $ 0.01 par value per share. We no longer have Class B common stock authorized for issue. • In October 2021, the Operating Partnership completed the registered offering of $ 350 million aggregate principal amount of 2.625 % senior notes (“2021 Bond Offering”) priced at 98.692 % of the principal amount and maturing in November 2031. The 2021 Bond Offering resulted in gross proceeds of $ 345.4 million. The notes are fully and unconditionally guaranteed by us. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Set forth below is a summary of the significant accounting estimates and policies that management believes are important to the preparation of our consolidated financial statements. Certain of our accounting estimates are particularly important for an understanding of our financial position and results of operations and require the application of significant judgment by management. For example, significant estimates and assumptions have been made with respect to the useful lives of assets, remaining hold periods of assets, recoverable amounts of receivables, and other fair value measurement assessments required for the preparation of the consolidated financial statements. As a result, these estimates are subject to a degree of uncertainty. Basis of Presentation and Principles of Consolidation —The accompanying consolidated financial statements include our accounts and the accounts of the Operating Partnership and its wholly-owned subsidiaries (over which we exercise financial and operating control). The financial statements of the Operating Partnership are prepared using accounting policies consistent with our accounting policies. All intercompany balances and transactions are eliminated upon consolidation. Use of Estimates —The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. For example, significant estimates and assumptions have been made with respect to the useful lives of assets; remaining hold periods of assets; recoverable amounts of receivables; initial valuations of tangible and intangible assets and liabilities, including goodwill, and PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-9 related amortization periods of deferred costs and intangibles, particularly with respect to property acquisitions; the valuation and nature of derivatives and their effectiveness as hedges; valuations of contingent consideration; and other fair value measurement assessments required for the preparation of the consolidated financial statements. Actual results could differ from those estimates. Stock Issuance Costs —Stock issuance costs are offset against stock issuance proceeds and capitalized as a component of APIC on the consolidated balance sheets. We had stock issuance costs of approximately $ 1.9 million, $ 1.1 million, and $ 39.0 million for the years ended December 31, 2023, 2022, and 2021, respectively. Other costs and expenses indirectly related to stock issuance activities are not capitalized and are included as expense on our consolidated statements of operations and comprehensive income (“consolidated statements of operations”). For the year ended December 31, 2021, we incurred other indirect costs and expenses related to our underwritten IPO of $ 4.3 million, which included grants of restricted stock units (“RSUs”), that were expensed and included as transaction costs in Other Expense, Net on our consolidated statements of operations. Partially-Owned Entities —If we determine that we are an owner in a variable-interest entity (“VIE”), and we hold a controlling financial interest, then we will consolidate the entity as the primary beneficiary. For a partially-owned entity determined not to be a VIE, we analyze rights held by each partner to determine which would be the consolidating party. We will generally consolidate entities (in the absence of other factors when determining control) when we have over a 50% ownership interest in the entity. We will assess our interests in VIEs on an ongoing basis to determine whether or not we are the primary beneficiary. However, we will also evaluate who controls the entity even in circumstances in which we have greater than a 50% ownership interest. If we do not control the entity due to the lack of decision-making abilities, we will not consolidate the entity. We have determined that the Operating Partnership is considered a VIE. We are the primary beneficiary of the VIE, and our partnership interest is considered a majority voting interest. As such, we have consolidated the Operating Partnership and its wholly-owned subsidiaries. Further, as we hold a majority voting interest in the Operating Partnership, we qualify for the exemption from providing certain of the disclosure requirements associated with variable interest entities. Additionally, a Section 1031 like-kind exchange (“Section 1031 Exchange”) pursuant to the Internal Revenue Code of 1986, as amended (the “IRC”), entails selling one property and reinvesting the proceeds in one or more properties that are similar in nature, character, or class within 180 days. A reverse Section 1031 Exchange occurs when one or more properties is purchased prior to selling one property to be matched in the like-kind exchange, during which time legal title to the purchased property is held by an intermediary. Because we retain essentially all of the legal and economic benefits and obligations related to the acquisition, we consider the purchased property in a reverse Section 1031 Exchange to be a VIE, and therefore, we will consolidate the entity as the primary beneficiary in these instances. Noncontrolling Interests —Noncontrolling interests represent the portion of equity that we do not own in the entities we consolidate. We classify noncontrolling interests within permanent equity on our consolidated balance sheets. The amounts of consolidated net earnings attributable to us and to the noncontrolling interests are presented separately on our consolidated statements of operations. For additional information regarding noncontrolling interests, refer to Note 12. Cash and Cash Equivalents —We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Short-term investments are stated at cost, which approximates fair value and may consist of investments in money market accounts and money market funds. From time to time, the cash and cash equivalent balances at one or more of our financial institutions may exceed the Federal Depository Insurance Corporation coverage. Restricted Cash —Restricted cash primarily consists of cash restricted for the purpose of facilitating a Section 1031 Exchange, escrowed tenant improvement funds, real estate taxes, capital improvement funds, insurance premiums, and other amounts required to be escrowed pursuant to loan agreements. During 2023, we did not sell any properties as part of facilitating a Section 1031 Exchange that remained open at the end of the year. During 2022, we sold two properties as part of facilitating a Section 1031 Exchange that remained open at the end of the year. The net proceeds of these sales were held as restricted cash with a qualified intermediary totaling $ 1.7 million. Investment in Property and Lease Intangibles —We apply Accounting Standards Codification (“ASC”) Topic 805: Business Combinations (“ASC 805”) when evaluating any purchases of real estate. Under this guidance, our real estate acquisition activity is not generally considered a business combination and is instead classified as an asset acquisition. As a result, most acquisition-related costs are capitalized and amortized over the life of the related assets, and there is no recognition of goodwill. None of our real estate acquisitions in 2023 and 2022 met the definition of a business; therefore, we accounted for all as asset acquisitions. Real estate assets are stated at cost less accumulated depreciation. The majority of acquisition-related costs are capitalized and allocated to the various classes of assets acquired. These costs are then depreciated over the estimated useful lives associated with the assets acquired. Depreciation is computed using the straight-line method. The estimated useful lives for computing depreciation are generally not to exceed 5 - 7 years for furniture, fixtures, and equipment, 15 years for land improvements, and 30 years for buildings and building improvements. Tenant improvements are amortized over the shorter of the respective lease term or the expected useful life of the asset. Major replacements that extend the useful lives of the assets are capitalized, and maintenance and repair costs are expensed as incurred. We assess the acquisition-date fair values of all tangible assets, identifiable intangibles, and assumed liabilities using methods similar to those used by independent appraisers (e.g., discounted cash flow analysis, sales comparison approach, and replacement cost approach) that utilize appropriate discount and/or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The fair values of buildings and improvements are determined on an as-if-vacant basis. The estimated fair value of acquired in-place leases is the cost we would have incurred to lease the properties to the occupancy level of the properties at the date PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-10 of acquisition. Such estimates include leasing commissions, legal costs, and other direct costs that would be incurred to lease the properties to such occupancy levels. Additionally, we evaluate the time period over which such occupancy levels would be achieved. Such evaluation includes an estimate of the net market-based rental revenues and net operating costs (primarily consisting of real estate taxes, insurance, and utilities) that would be incurred during the lease-up period. Acquired in-place leases as of the date of acquisition are amortized over the remaining lease terms. Acquired above- and below-market lease values are recorded based on the present value (using discount rates that reflect the risks associated with the leases acquired) of the difference between the contractual amounts to be paid pursuant to the in-place leases and management’s estimate of the market lease rates for the corresponding in-place leases. The capitalized above- and below-market lease values are amortized as adjustments to rental income over the remaining terms of the respective leases. We also consider fixed-rate renewal options in our calculation of the fair value of below-market leases and the periods over which such leases are amortized. If a tenant has a unilateral option to renew a below-market lease and we determine that the tenant has a financial incentive to exercise such option, we include such option in the calculation of the fair value of such lease and the period over which the lease is amortized. We estimate the value of tenant origination and absorption costs by considering the estimated carrying costs during hypothetical expected lease-up periods, considering current market conditions. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses, and estimates of lost rentals at market rates during the expected lease-up periods. We estimate the fair value of assumed loans payable based upon indications of then-current market pricing for similar types of debt with similar maturities. Assumed loans payable are initially recorded at their estimated fair value as of the assumption date, and the difference between such estimated fair value and the loan’s outstanding principal balance is amortized over the life of the loan as an adjustment to interest expense. Our accumulated amortization of above- and below-market debt was $ 1.8 million and $ 0.3 million as of December 31, 2023 and 2022, respectively. Real estate assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the individual property may not be recoverable. In such an event, a comparison will be made of the projected operating cash flows of each property on an undiscounted basis to the carrying amount of such property. If deemed unrecoverable on an undiscounted basis, such carrying amount would be adjusted, if necessary, to estimated fair values to reflect impairment in the value of the asset. For additional information regarding real estate asset impairments, refer to our fair value measurement accounting policy below. Goodwill and Other Intangibles —In the case of an acquisition of a business, after identifying all tangible and intangible assets and liabilities, the excess consideration paid over the fair value of the assets and liabilities acquired represents goodwill. We allocate goodwill to the respective reporting units in which such goodwill arises. We evaluate goodwill for impairment when an event occurs or circumstances change that indicate the carrying value may not be recoverable, or at least annually. Our annual testing date is November 30. The goodwill impairment evaluation is completed using either a qualitative or quantitative approach. Under a qualitative approach, the impairment review for goodwill consists of an assessment of whether it is more-likely-than-not that the reporting unit’s fair value is less than its carrying value, including goodwill. If a qualitative approach indicates it is more likely-than-not that the estimated carrying value of a reporting unit (including goodwill) exceeds its fair value, or if we choose to bypass the qualitative approach for any reporting unit, we perform the quantitative approach described below. When we perform a quantitative test of goodwill for impairment, we compare the carrying value of a reporting unit with its fair value. If the fair value of the reporting unit exceeds its carrying amount, we do not consider goodwill to be impaired and no further analysis would be required. If the fair value is determined to be less than its carrying value, the amount of goodwill impairment equals the amount by which the reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. If impairment indicators arise with respect to non-real estate intangible assets with finite useful lives, we evaluate impairment by comparing the carrying amount of the asset to the estimated future undiscounted cash flows expected to be generated by the asset. If estimated future undiscounted cash flows are less than the carrying amount of the asset, then we estimate the fair value of the asset and compare the estimated fair value to the intangible asset’s carrying value. We recognize the shortfall from carrying value as an impairment loss in the current period. Estimates of fair value used in our evaluation of goodwill and intangible assets are based upon discounted future cash flow projections, relevant competitor multiples, or other acceptable valuation techniques. These techniques are based, in turn, upon all available evidence including level three inputs (see fair value measurement policy below), such as revenue and expense growth rates, estimates of future cash flows, capitalization rates, discount rates, general economic conditions and trends, or other available market data. Our ability to accurately predict future operating results and cash flows and to estimate and determine fair values impacts the timing and recognition of impairments. While we believe our assumptions are reasonable, changes in these assumptions may have a material impact on our financial results. Based on the results of our analysis, we concluded that goodwill was not impaired for the years ended December 31, 2023 and 2022. Held for Sale Assets —We consider assets to be held for sale when management believes that a sale is probable within a year. This generally occurs when a sales contract is executed with no substantive contingencies, and the prospective buyer has significant funds at risk. Assets that are classified as held for sale are recorded at the lower of their carrying amount or fair value less cost to sell. As of December 31, 2023 and 2022, there were no properties classified as held for sale. Deferred Financing Expenses —Deferred financing expenses are capitalized and amortized on a straight-line basis over the term of the related financing arrangement, which approximates the effective interest method. Deferred financing expenses related to our term loan facilities and mortgages are in Debt Obligations, Net, while deferred financing expenses related to our revolving credit facility are in Other Assets, Net, on our consolidated balance sheets. The accumulated amortization of deferred financing expenses in Debt Obligations, Net was $ 15.9 million and $ 14.7 million as of December 31, 2023 and 2022, respectively. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-11 Fair Value Measurement —ASC Topic 820, Fair Value Measurement (“ASC 820”) defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. ASC 820 emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement. Fair value is defined by ASC 820 as the price that would be received at sale for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows: Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). Level 3—Unobservable inputs, only used to the extent that observable inputs are not available, reflect our assumptions about the pricing of an asset or liability. Considerable judgment is necessary to develop estimated fair values of financial and non-financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we did or could actually realize upon disposition of the financial assets and liabilities previously sold or currently held. On a quarterly basis, we employ a multi-step approach to assess our real estate assets for possible impairment and record any impairment charges identified. The first step is the identification of potential triggering events, such as significant decreases in occupancy or the presence of large dark or vacant spaces. If we observe any of these indicators for a shopping center, we then perform an additional screen test consisting of a years-to-recover analysis to determine if we will recover the net book value of the property over its remaining economic life based upon net operating income (“NOI”) as forecasted for the current year. In the event that the results of this first step indicate a triggering event for a center, we proceed to the second step, utilizing an undiscounted cash flow model for the center to identify potential impairment. If the undiscounted cash flows are less than the net book value of the center as of the balance sheet date, we record an impairment charge based on the fair value determined in the third step. In performing the third step, we utilize market data such as capitalization rates and sales price per square foot on comparable recent real estate transactions to estimate the fair value of the real estate assets. We also utilize expected net sales proceeds to estimate the fair value of any centers that are actively being marketed for sale. In addition to these procedures, we also review undeveloped or unimproved land parcels that we own for evidence of impairment and record any impairment charges as necessary. Primary impairment triggers for these land parcels are changes to our plans or intentions with regards to such properties, or planned dispositions at prices that are less than the current carrying values. Investments in Unconsolidated Joint Ventures —We account for our investments in unconsolidated joint ventures using the equity method of accounting as we exercise significant influence over, but do not control, these entities. These investments were initially recorded at cost and are subsequently adjusted for contributions made to and distributions received from the joint ventures. Earnings or losses from our investments are recognized in accordance with the terms of the applicable joint venture agreements, generally through a pro rata allocation. Under a pro rata allocation, net income or loss is allocated between the partners in the joint ventures based on their respective stated ownership percentages. We utilize the cumulative-earnings approach for purposes of determining whether distributions should be classified as either a return on investment, which would be included in operating activities, or a return of investment, which would be included in investing activities on the consolidated statements of cash flows. Under this approach, distributions are presumed to be returns on investment unless cumulative returns on investment exceed our cumulative equity in earnings. When such an excess occurs, the current-period distribution up to this excess is considered a return of investment and classified as cash flows from investing activities. On a periodic basis, management assesses whether there are indicators, including the operating performance of the underlying real estate and general market conditions, that the value of our investments in our unconsolidated joint ventures may be impaired. An investment’s value is impaired only if management’s estimate of the fair value of the investment is less than its carrying value and such difference is deemed to be other-than-temporary. To the extent impairment has occurred, the loss is measured as the excess of the carrying amount of the investment over its estimated fair value. Management’s estimates of fair value are based upon a discounted cash flow model for each specific investment that includes all estimated cash inflows and outflows over a specified holding period. Where applicable, any estimated debt premiums, capitalization rates, discount rates, and credit spreads used in these models are based upon rates we believe to be within a reasonable range of current market rates. For additional information regarding our unconsolidated joint ventures, refer to Note 6. Leases —We are party to a number of lease agreements, both as a lessor as well as a lessee of various types of assets. Lessor —The majority of our revenue is lease revenue derived from our real estate assets, which is accounted for under ASC Topic 842, Leases (“ASC 842”). We record lease and lease-related revenue as Rental Income on the consolidated statements of operations, in accordance with ASC 842. We enter into leases primarily as a lessor as part of our real estate operations, and leases represent the majority of our revenue. We lease space in our properties generally in the form of operating leases. Our leases typically provide for reimbursements from tenants for common area maintenance, insurance, and real estate tax expenses. Common area maintenance reimbursements can be fixed, with revenue earned on a straight-line basis over the term of the lease, or variable, with revenue recognized as services are performed for which we will be reimbursed. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-12 The lease agreements frequently contain fixed-price renewal options to extend the terms of leases and other terms and conditions as negotiated. In calculating the term of our leases, we consider whether these options are reasonably certain to be exercised. Our determination involves a combination of contract-, asset-, entity-, and market-based factors and involves considerable judgment. We retain substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Currently, our tenants have no options to purchase at the end of the lease term, although in a small number of leases, a tenant, usually the anchor tenant, may have the right of first refusal to purchase one of our properties if we elect to sell the center. We evaluate whether a lease is an operating, sales-type, or direct financing lease using the criteria established in ASC 842. Leases will be considered either sales-type or direct financing leases if any of the following criteria are met: • if the lease transfers ownership of the underlying asset to the lessee by the end of the term; • if the lease grants the lessee an option to purchase the underlying asset that is reasonably certain to be exercised; • if the lease term is for the major part of the remaining economic life of the underlying asset; or • if the present value of the sum of the lease payments and any residual value guaranteed by the lessee equals or exceeds substantially all of the fair value of the underlying asset. We utilize substantial judgment in determining the fair value of the leased asset, the economic life of the leased asset, and the relevant borrowing rate in performing our lease classification analysis. If none of the criteria listed above are met, the lease is classified as an operating lease. Currently, all of our leases are classified as operating leases, and we expect that the majority, if not all, of our leases will continue to be classified as operating leases based upon our typical lease terms. We commence revenue recognition on our leases based on a number of factors. In most cases, revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. The determination of when revenue recognition under a lease begins, as well as the nature of the leased asset, is dependent upon our assessment of who is the owner, for accounting purposes, of any related tenant improvements. If we are the owner, for accounting purposes, of the tenant improvements, then the leased asset is the finished space, and revenue recognition begins when the lessee takes possession of the finished space, typically when the improvements are substantially complete. If we conclude that we are not the owner, for accounting purposes, of the tenant improvements (i.e., the lessee is the owner), then the leased asset is the unimproved space and any tenant allowances funded under the lease are treated as lease incentives, which reduce revenue recognized over the term of the lease. In these circumstances, we begin revenue recognition when the lessee takes possession of the unimproved space to construct their own improvements. We consider a number of different factors in evaluating whether the lessee or we are the owner of the tenant improvements for accounting purposes. These factors include: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements; • the uniqueness of the improvements; • the expected economic life of the tenant improvements relative to the length of the lease; and • who constructs or directs the construction of the improvements. The majority of our leases provide for fixed rental escalations, and we recognize rental income on a straight-line basis over the term of each lease in such instances. The difference between rental income earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent receivable and is included as a component of Other Assets, Net. Due to the impact of the straight-line adjustments, rental income generally will be greater than the cash collected in the early years and will be less than the cash collected in the later years of a lease. Reimbursements from tenants for recoverable real estate taxes and operating expenses that are fixed per the terms of the applicable lease agreements are recorded on a straight-line basis, as described above. The majority of our lease agreements with tenants, however, provide for tenant reimbursements that are variable depending upon the applicable expenses incurred. These reimbursements are accrued as revenue in the period in which the applicable expenses are incurred. We make certain assumptions and judgments in estimating the reimbursements at the end of each reporting period. We do not expect the actual results to materially differ from the estimated reimbursements. Both fixed and variable tenant reimbursements are recorded as Rental Income in the consolidated statements of operations. In certain cases, the lease agreement may stipulate that a tenant make a direct payment for real estate taxes to the relevant taxing authorities. In these cases, we do not record any revenue or expense related to these tenant expenditures. Although we expect such cases to be rare, in the event that a direct-paying tenant failed to make their required payment to the taxing authorities, we would potentially be liable for such amounts, although they are not recorded as a liability in our consolidated balance sheets per the requirements of ASC 842. We have made a policy election to exclude amounts collected from customers for all sales tax and other similar taxes from the transaction price in our recognition of lease revenue. We record such taxes on a net basis in our consolidated statements of operations. Additionally, we record an immaterial amount of variable revenue in the form of percentage rental income. Our policy for percentage rental income is to defer recognition of contingent rental income until the specified target (i.e., breakpoint) that triggers the contingent rental income is achieved. In some instances, as part of our negotiations, we may offer lease incentives to our tenants. These incentives usually take the form of payments made to or on behalf of the tenant, and such incentives will be deducted from the lease payment and recorded on a straight-line basis over the term of the new lease. We record lease termination income if there is a signed termination agreement, all of the conditions of the agreement have been met, collectibility is reasonably assured, and the tenant is no longer occupying the property. Upon early lease termination, we provide for losses related to unrecovered tenant-specific intangibles and other assets. We record lease termination income as Rental Income in the consolidated statements of operations. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-13 Lease receivables are reviewed continually to determine whether or not it is probable that we will realize substantially all remaining lease payments for each of our tenants (i.e., whether a tenant is deemed to be a credit risk). Additionally, we record a general reserve based on our review of operating lease receivables at a company level to ensure they are properly valued based on analysis of historical bad debt, outstanding balances, and the current economic climate. If we determine it is not probable that we will collect substantially all of the remaining lease payments from a tenant, revenue for that tenant is recorded on a cash basis (“cash-basis tenant”), including any amounts relating to straight-line rent receivables and/or receivables for recoverable expenses. We will resume recording lease income on an accrual basis for cash-basis tenants once we believe the collection of rent for the remaining lease term is probable, which will generally be after a period of regular payments. Under ASC 842, the aforementioned adjustments as well as any reserve for disputed charges are recorded as a reduction of Rental Income on the consolidated statements of operations. As of December 31, 2023 and 2022, the reserve in accounts receivable for uncollectible amounts was $ 1.9 million and $ 3.0 million, respectively. Receivables on our consolidated balance sheets exclude amounts removed related to tenants considered to be non-creditworthy, which were $ 10.7 million and $ 10.4 million as of December 31, 2023 and 2022, respectively. Lessee —We enter into leases as a lessee as part of our real estate operations in the form of ground leases of land for certain properties, and as part of our corporate operations in the form of office space and office equipment leases. Ground leases typically contain one or more options to renew for additional terms and may include options that grant us, as the lessee, the right to terminate the lease, without penalty, in advance of the full lease term. Our office space leases generally have no renewal options. Office equipment leases typically have options to extend the term for a year or less, but contain minimal termination rights. In calculating the term of our leases, we consider whether we are reasonably certain to exercise renewal and/or termination options. Our determination involves a combination of contract-, asset-, entity-, and market-based factors and involves considerable judgment. Currently, neither our operating leases nor our finance leases have residual value guarantees or other restrictions or covenants, but a small number may contain non-lease components which have been deemed not material and are not separated from the leasing component. We evaluate whether a lease is a finance or operating lease using the criteria established in ASC 842. The criteria we use to determine whether a lease is a finance lease are the same as those we use to determine whether a lease is sales-type lease as a lessor. If none of the finance lease criteria is met, we classify the lease as an operating lease. We record ROU assets and liabilities in the consolidated balance sheets based upon the terms and conditions of the applicable lease agreement. We use discount rates to calculate the present value of lease payments when determining lease classification and measuring our lease liability. We use the rate implicit in the lease as our discount rate unless that rate cannot be readily determined, in which case we consider various factors, including our incremental secured borrowing rate, in selecting an appropriate discount rate. This requires the application of judgment, and we consider the length of the lease as well as the length and securitization of our outstanding debt agreements in selecting an appropriate rate. Refer to Note 3 for further detail. Revenue Recognition —In addition to our lease-related revenue, we also earn fee revenues by providing services to the Managed Funds. These fees are accounted for within the scope of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), and are recorded as Fees and Management Income on the consolidated statements of operations. We provide services to the Managed Funds, all of which are considered related parties. These services primarily include asset acquisition and disposition services, asset management, operating and leasing of properties, construction management, and other general and administrative responsibilities. These services are currently provided under various combinations of advisory agreements, property management agreements, and other service agreements (the “Management Agreements”). The wide variety of duties within the Management Agreements makes determining the performance obligations within the contracts a matter of judgment. We have concluded that each of the separately disclosed fee types in the below table represents a separate performance obligation within the Management Agreements. Fee Performance Obligation Satisfied Form and Timing of Payment Description Asset Management Over time In cash, monthly Because each increment of service is distinct, although substantially the same, revenue is recognized at the end of each reporting period based upon invested equity and the applicable rate. Property Management Over time In cash, monthly Because each increment of service is distinct, although substantially the same, revenue is recognized at the end of each month based on a percentage of the properties’ cash receipts. Leasing Commissions Point in time (upon close of a transaction) In cash, upon completion Revenue is recognized in an amount equal to the fees charged by unaffiliated persons rendering comparable services in the same geographic location. Construction Management Point in time (upon close of a project) In cash, upon completion Revenue is recognized in an amount equal to the fees charged by unaffiliated persons rendering comparable services in the same geographic location. Due to the nature of the services being provided under our Management Agreements, each performance obligation has a variable component. Therefore, when we determine the transaction price for the contracts, we are required to constrain our estimate to an amount that is not probable of significant revenue reversal. For most of these fee types, such as leasing commissions, compensation only occurs if a transaction takes place and the amount of compensation is dependent upon the terms of the transaction. For our property and asset management fees, due to the large number and broad range of possible consideration amounts, we calculate the amount earned at the end of each month. Sales or transfers to non-customers of non-financial assets or in substance non-financial assets that do not meet the definition of a business are accounted for within the scope of ASC Topic 610-20, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (“ASC 610-20”). Generally, our sales of real estate would be considered a sale of a non- PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-14 financial asset as defined by ASC 610-20. Under ASC 610-20, if we determine we do not have a controlling financial interest in the entity that holds the asset and the arrangement meets the criteria to be accounted for as a contract, we would derecognize the asset and recognize a gain or loss on the sale of the real estate when control of the underlying asset transfers to the buyer. Further, we may defer a tax gain through a Section 1031 Exchange by purchasing another property within a specified time period. For additional information regarding gain on sale of assets, refer to Note 4. Share-Based Compensation —We account for equity awards in accordance with ASC Topic 718, Compensation—Stock Compensation , which requires that all share-based payments to employees and non-employee directors be recognized in the consolidated statements of operations over the requisite service period based on their fair value. Prior to our underwritten IPO, fair value was based on the estimated value per share (“EVPS”) of our stock. Subsequent to our underwritten IPO, fair value for certain of our equity awards is based on our Nasdaq closing stock price at the date of the grant. Beginning in 2022, fair value for our performance-based awards is calculated using the Monte Carlo method, which is intended to estimate the fair value of the awards using dividend yields, expected volatilities that are primarily based on available implied data and peer group companies’ historical data, and post-vesting restriction periods. Share-based compensation expense for all awards is included in General and Administrative and Property Operating in our consolidated statements of operations, excluding the expense related to RSUs awarded in connection with our underwritten IPO, which is included in Other Expense, Net. For more information about our stock-based compensation program, see Note 13. Share Repurchase Programs —Shares repurchased pursuant to a share repurchase program are immediately retired upon purchase. Repurchased common stock is reflected as a reduction of stockholders’ equity. Our accounting policy related to share repurchases is to reduce common stock based on the par value of the shares and to reduce capital surplus for the excess of the repurchase price over the par value. Starting in August 2010, we offered a share repurchase program which allowed stockholders who participated to have their shares repurchased subject to approval and certain limitations and restrictions. Prior to its termination in August 2021, we had an accumulated deficit balance; therefore, the excess over the par value has historically been applied to additional paid-in capital. On August 3, 2022, our Board approved a new share repurchase program of up to $ 250 million of common stock. The program may be suspended or discontinued at any time, and does not obligate us to repurchase any dollar amount or particular number of shares. No share repurchases have been made to date under this program. Segments —Our principal business is the ownership and operation of community and neighborhood shopping centers. We do not distinguish our principal business, or group our operations, by geography or size for purposes of measuring performance. Accordingly, we have presented our results as a single reportable segment. Income Taxes —We have elected to be taxed as a REIT under the IRC. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement to annually distribute to our stockholders at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding net capital gains. We intend to continue to adhere to these requirements and to maintain our REIT status. As a REIT, we are entitled to a deduction for some or all of the distributions we pay to our stockholders. Accordingly, we are generally subject to U.S. federal income taxes on any taxable income that is not currently distributed to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income taxes and may not be able to qualify as a REIT until the fifth subsequent taxable year. Notwithstanding our qualification as a REIT, we may be subject to certain state and local taxes on our income or properties. In addition, our consolidated financial statements include the operations of wholly-owned subsidiaries that have jointly elected to be treated as taxable REIT subsidiary (“TRS”) entities and are subject to U.S. federal, state, and local income taxes at regular corporate tax rates. As a REIT, we may also be subject to certain U.S. federal excise taxes if we engage in certain types of transactions. We recognized an insignificant amount of federal, state, and local income tax expense for the years ended December 31, 2023, 2022, and 2021, and we retain a full valuation allowance for our net deferred tax asset. All income tax amounts are included in Other Expense, Net on our consolidated statements of operations. For more information regarding our income taxes, see Note 10. Recently Issued Accounting Pronouncements —In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires, among other updates, enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. The ASU also clarifies that entities with a single reportable segment are subject to both new and existing reporting requirements under Topic 280. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. We are evaluating the impact of this guidance on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 updates income tax disclosures related to the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The ASU also makes several other changes to income tax disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2024. The guidance should be applied prospectively; however, retrospective application is permitted. Early adoption is permitted. We are evaluating the impact of this guidance on our consolidated financial statements and related disclosures. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-15 3. LEASES Lessor —The majority of our leases are largely similar in that the leased asset is retail space within our properties, and the lease agreements generally contain similar provisions and features, without substantial variations. All of our leases are currently classified as operating leases. Lease income related to our operating leases was as follows for the years ended December 31, 2023, 2022, and 2021 (in thousands): 2023 2022 2021 Rental income related to fixed lease payments (1) $ 446,576 $ 416,865 $ 382,667 Rental income related to variable lease payments (1)(2) 138,691 127,316 119,077 Straight-line rent amortization (3) 9,539 11,668 9,005 Amortization of lease assets 5,126 4,266 3,539 Lease buyout income 1,222 2,414 3,485 Adjustments for collectibility (4) ( 3,653 ) ( 1,991 ) 1,722 Total rental income $ 597,501 $ 560,538 $ 519,495 (1) Includes rental income related to lease payments before assessing for collectibility. (2) Variable payments are primarily related to tenant recovery income. (3) Includes revenue adjustments to straight-line rent for tenants considered non-creditworthy. (4) Includes general reserves as well as adjustments for tenants considered non-creditworthy for which we are recording revenue on a cash basis, per ASC 842. Approximate future fixed contractual lease payments to be received under non-cancelable operating leases in effect as of December 31, 2023, assuming no new or renegotiated leases or option extensions on lease agreements, and including the impact of rent abatements and tenants who have been moved to the cash basis of accounting for revenue recognition purposes, are as follows (in thousands): Year Amount 2024 $ 458,756 2025 410,401 2026 344,405 2027 277,629 2028 206,567 Thereafter 534,910 Total $ 2,232,668 No single tenant comprised 10% or more of our aggregate annualized base rent (“ABR”) as of December 31, 2023. As of December 31, 2023, our wholly-owned real estate investments in Florida and California represented 12.0 % and 11.0 % of our ABR, respectively. As a result, the geographic concentration of our portfolio makes it particularly susceptible to adverse weather or economic events in the Florida (see “Hurricane Ian” in Note 4) and California real estate markets. Lessee —Lease assets and liabilities, grouped by balance sheet line where they are recorded, consisted of the following as of December 31, 2023 and 2022 (in thousands): Balance Sheet Information Balance Sheet Location 2023 2022 ROU assets, net - operating leases Investment in Real Estate $ 3,734 $ 3,832 ROU assets, net - operating and finance leases Other Assets, Net 1,323 1,022 Operating lease liability Accounts Payable and Other Liabilities 5,094 4,705 Finance lease liability Debt Obligations, Net 308 585 As of December 31, 2023, the weighted-average remaining lease term was approximately 1.2 years for finance leases and 20.5 years for operating leases. The weighted-average discount rate was 3.6 % for finance leases and 4.7 % for operating leases. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-16 Future undiscounted payments for fixed lease charges by lease type, inclusive of options reasonably certain to be exercised, are as follows as of December 31, 2023 (in thousands): Undiscounted Year Operating Finance 2024 $ 650 $ 295 2025 423 16 2026 363 9 2027 366 — 2028 377 — Thereafter 5,772 — Total undiscounted cash flows from leases 7,951 320 Total lease liabilities recorded at present value 5,094 308 Difference between undiscounted cash flows and present value of lease liabilities $ 2,857 $ 12 4. REAL ESTATE ACTIVITY Acquisitions —The following table summarizes our real estate acquisition activity for the years ended December 31, 2023, 2022, and 2021 (dollars in thousands): 2023 2022 2021 Number of properties acquired 11 7 9 Number of outparcels acquired (1) 3 4 5 Contract price $ 278,480 $ 280,515 $ 307,551 Total price of acquisitions (2) 270,262 282,000 308,358 (1) Outparcels acquired are adjacent to shopping centers that we own. (2) Total price of acquisitions includes closing costs less credits and assumed debt obligations. The aggregate purchase price of the assets acquired during the years ended December 31, 2023 and 2022 were allocated as follows (in thousands): 2023 2022 ASSETS Land and improvements $ 80,701 $ 87,762 Building and improvements 180,155 180,365 In-place lease assets 26,690 24,408 Above-market lease assets 2,688 3,903 Below-market debt 444 — Total assets 290,678 296,438 LIABILITIES Debt obligations, net 9,614 — Below-market lease liabilities 10,802 14,438 Total liabilities 20,416 14,438 Net assets acquired $ 270,262 $ 282,000 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-17 The weighted-average amortization periods for in-place, above-market, and below-market lease intangibles and below-market debt acquired during the years ended December 31, 2023 and 2022 are as follows (in years): 2023 2022 Acquired in-place leases 12 12 Acquired above-market leases 9 8 Acquired below-market leases 18 21 Assumed below-market debt 2 — Property Dispositions —The following table summarizes our real estate disposition activity for the years ended December 31, 2023, 2022, and 2021 (dollars in thousands): 2023 2022 2021 Number of properties sold (1) 1 4 24 Number of outparcels sold (2)(3) 2 4 4 Contract price $ 6,250 $ 53,987 $ 216,052 Proceeds from sale of real estate, net (4)(5) 7,208 52,019 206,377 Gain on sale of property, net (5)(6) 1,110 7,517 34,309 (1) We retained one outparcel related to a property sale during the year ended December 31, 2021 and therefore the sale did not result in a reduction in our total property count. (2) During the year ended December 31, 2021, our outparcel sales included: (i) the only remaining portion of one of our properties, which resulted in a reduction in our total property count; and (ii) an undeveloped parcel of land, as well as two outparcels adjacent to two of our centers, none of which resulted in a reduction in our total property count. (3) In addition to the four outparcels sold during the year ended December 31, 2021, a tenant at one of our properties exercised a bargain purchase option to acquire a parcel of land that we previously owned. This generated minimal proceeds for us. (4) Total proceeds from sale of real estate, net includes closing costs less credits. (5) Activity for the year ended December 31, 2023 includes land acquired from us by local authorities. (6) During the year ended December 31, 2021, Gain on Disposal of Property, Net on the consolidated statements of operations includes miscellaneous write-off activity, which is not included in gain on sale of property, net, presented above. Hurricane Ian - On September 28, 2022, Hurricane Ian struck the southeast United States and caused various amounts of damage to our properties located in the region. During 2022, we recorded gross cumulative accelerated depreciation of $ 2.7 million for damages sustained to the properties, which was reduced by insurance recoveries $ 1.0 million (net of deductibles and self-insurance of $ 1.7 million) collected in 2023. As of December 31, 2022, we had a receivable balance of $ 1.0 million, which was recorded in Other Assets, Net on our consolidated balance sheets. 5. INTANGIBLE ASSETS AND LIABILITIES Goodwill —During the years ended December 31, 2023, 2022, and 2021, we recorded no impairments to goodwill. Other Intangible Assets and Liabilities — Other intangible assets and liabilities consisted of the following as of December 31, 2023 and 2022 (in thousands): 2023 2022 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Corporate intangible assets $ 6,686 $ ( 5,994 ) $ 6,692 $ ( 5,636 ) In-place leases 495,525 ( 295,957 ) 471,507 ( 262,650 ) Above-market leases 74,446 ( 57,964 ) 71,954 ( 52,230 ) Below-market lease liabilities ( 182,689 ) 74,466 ( 173,878 ) 64,079 Above-market contract (1) ( 2,496 ) 499 ( 2,496 ) — (1) Recorded in Accounts Payable and Other Liabilities on our consolidated balance sheets. Summarized below is the amortization recorded on other intangible assets and liabilities for the years ended December 31, 2023, 2022, and 2021 (in thousands): PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-18 2023 2022 2021 Corporate intangible assets $ 361 $ 364 $ 372 In-place leases 34,380 36,851 34,221 Above-market leases 5,865 6,485 6,319 Below-market lease liabilities ( 11,044 ) ( 10,809 ) ( 9,900 ) Above-market contract ( 499 ) — — Estimated future amortization of the respective other intangible assets and liabilities as of December 31, 2023, excluding estimated amounts related to properties classified as held for sale, for each of the next five years is as follows (in thousands): Corporate Intangible Assets In-Place Leases Above-Market Leases Below-Market Lease Liabilities Above-Market Contract 2024 $ 360 $ 32,970 $ 4,928 $ ( 10,689 ) $ ( 499 ) 2025 325 28,281 3,561 ( 9,873 ) ( 499 ) 2026 5 23,959 2,418 ( 9,122 ) ( 499 ) 2027 1 20,805 1,691 ( 8,699 ) ( 499 ) 2028 — 17,473 1,160 ( 8,227 ) — 6. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES Grocery Retail Partners I and II —In November 2018, through our direct and indirect subsidiaries, we entered into a joint venture with Northwestern Mutual Life Insurance Company (“Northwestern Mutual”). We acquired a 15 % ownership interest in the new joint venture, GRP I, and Northwestern Mutual acquired the remaining 85 % ownership interest. The joint venture is set to expire ten years after the date of the agreement, unless otherwise extended by the members. In connection with a 2019 merger, we assumed a 10 % equity interest in Grocery Retail Partners II LLC (“GRP II”) with a fair value of $ 5.4 million at acquisition. GRP II was initially formed in November 2018 pursuant to the terms of a joint venture agreement and is set to expire ten years after the date of the joint venture contribution agreement unless otherwise extended by the members. In October 2020, GRP I acquired GRP II. As a part of the transaction, the carrying amount of our investment in GRP II was contributed to GRP I as consideration for an additional interest in GRP I. Our ownership interest in GRP I upon consummation of the transaction was adjusted to approximately 14 % as a result of the acquisition. Necessity Retail Partners —As of December 31, 2023, we owned a 20 % equity interest in Necessity Retail Partners (“NRP”). NRP was initially formed in March 2016 pursuant to the terms of a joint venture agreement, as amended, between Phillips Edison Grocery Center REIT II, Inc. and an affiliate of TPG Real Estate and is set to expire in 2024 unless otherwise extended by the members. In May 2022, we sold the final property in the joint venture. With the monetization of the joint venture, we exceeded the targeted return and as such were paid compensation of $ 0.1 million, $ 2.7 million, and $ 0.7 million for the years ended December 31, 2023, 2022, and 2021, respectively, which is recorded in Fees and Management Income on our consolidated statements of operations. The following table summarizes balances on the consolidated balance sheets related to our unconsolidated joint ventures as of December 31, 2023 and 2022 (dollars in thousands): 2023 2022 Joint Venture Ownership Percentage Number of Shopping Centers Investment Balance Ownership Percentage Number of Shopping Centers Investment Balance GRP I 14 % 20 $ 24,701 14 % 20 $ 26,576 NRP 20 % — 519 20 % — 625 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-19 The following table summarizes the activity on the consolidated statements of operations related to our unconsolidated joint ventures as of December 31, 2023, 2022, and 2021 (in thousands): 2023 2022 2021 Distributions to PECO After Formation or Assumption GRP I $ 2,156 $ 2,295 $ 2,598 NRP 84 3,109 5,137 Gain (Loss) from Unconsolidated Joint Ventures (1) GRP I $ 281 $ 246 $ 162 NRP ( 21 ) 1,253 2,695 Amortization and Write-Off of Basis Differences (1) NRP $ — $ 219 $ 1,162 (1) Recorded in Other Expense, Net in the consolidated statements of operations. 7. OTHER ASSETS, NET The following is a summary of Other Assets, Net outstanding as of December 31, 2023 and 2022 (in thousands): 2023 2022 Other assets, net: Deferred leasing commissions and costs $ 53,379 $ 49,687 Deferred financing expenses (1) 8,984 8,984 Office equipment, including capital lease assets, and other 24,073 23,051 Corporate intangible assets 6,686 6,692 Total depreciable and amortizable assets 93,122 88,414 Accumulated depreciation and amortization ( 53,205 ) ( 47,483 ) Net depreciable and amortizable assets 39,917 40,931 Accounts receivable, net (2) 44,548 37,274 Accounts receivable - affiliates 803 513 Deferred rent receivable, net (3) 62,288 52,141 Derivative assets 12,669 25,853 Prepaid expenses and other 10,745 14,575 Investment in third parties (4) 6,875 9,800 Investment in marketable securities 8,566 7,792 Total other assets, net $ 186,411 $ 188,879 (1) Deferred financing expenses per the above table are related to our revolving credit facility, and as such we have elected to classify them as an asset rather than as a contra-liability. (2) Net of $ 1.9 million and $ 3.0 million of general reserves for uncollectible amounts as of December 31, 2023 and 2022, respectively. Receivables that were removed for tenants considered to be non-creditworthy were $ 6.0 million and $ 6.2 million as of December 31, 2023 and 2022, respectively. (3) Net of $ 4.6 million and $ 4.2 million of receivables removed as of December 31, 2023 and 2022, respectively, related to straight-line rent for tenants previously or currently considered to be non-creditworthy. (4) We recorded an impairment of our investment in a third-party company of $ 3.0 million in Other Expense, Net on our consolidated statement of operations for the year ended December 31, 2023 (see Note 15). PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-20 8. DEBT OBLIGATIONS The following is a summary of the outstanding principal balances and interest rates, which includes the effect of derivative financial instruments, for our debt obligations as of December 31, 2023 and 2022 (dollars in thousands): Interest Rate (1) 2023 2022 Revolving credit facility SOFR + 1.1 % $ 181,000 $ 79,000 Term loans (2) 3.3 % - 6.7 % 964,750 955,000 Senior unsecured notes due 2031 2.6 % 350,000 350,000 Secured loan facilities 3.4 % - 3.5 % 395,000 395,000 Mortgages 3.5 % - 6.4 % 95,677 133,199 Finance lease liability 308 585 Discount on notes payable ( 6,302 ) ( 7,001 ) Assumed market debt adjustments, net ( 858 ) ( 1,226 ) Deferred financing expenses, net ( 10,303 ) ( 7,963 ) Total $ 1,969,272 $ 1,896,594 Weighted-average interest rate (3) 4.2 % 3.6 % (1) Interest rates are as of December 31, 2023. (2) Our term loans carry an interest rate of the Secured Overnight Financing Rate (“SOFR”) plus a spread. While most of the rates are fixed through the use of swaps, a portion of these loans are not subject to a swap, and thus are still indexed to SOFR. (3) Includes the effects of derivative financial instruments (see Notes 9 and 16). 2023 Debt Activity —On July 31, 2023, we amended three senior unsecured term loans with a total notional amount of $ 475 million scheduled to mature during 2024. The three senior unsecured term loans, as amended, have a total notional amount of $ 484.8 million. The $ 161.8 million unsecured term loan is priced based on a leverage grid, which is currently at SOFR plus 1.35 % and is scheduled to mature on January 31, 2026 extendable with two one -year options to 2028. The $ 158 million and $ 165 million unsecured term loans are priced based on a leverage grid, which is currently at SOFR plus 1.35 % and mature on January 31, 2027. During the year ended December 31, 2023, we repaid $ 47.3 million in mortgage debt. 2022 Debt Activity —In May 2022, we amended our credit facility agreement (the “Amendment”) to, among other things, increase the total amount available under our unsecured revolving credit facility from $ 500 million to $ 800 million. The unsecured revolving credit facility also includes an accordion feature that permits us to increase our aggregate borrowing capacity thereunder to up to $ 1 billion, subject to the satisfaction of certain conditions. The unsecured revolving credit facility is scheduled to mature in January 2026, extendable at our option to January 2027. In addition to expanding the borrowing capacity, the Amendment replaced the London Interbank Offered Rate (“LIBOR”) with SOFR as the benchmark interest rate for the unsecured revolving credit facility and the two $ 240 million senior unsecured term loan tranches, maturing in November 2025 and July 2026. In August 2022, we amended two of our interest rate swaps with a total notional amount of $ 430 million to replace LIBOR with SOFR as the benchmark interest rate in conjunction with the Amendment (see Note 9 ) . In November 2022, we amended our three remaining LIBOR term loans with a notional amount of $ 475 million to replace LIBOR with SOFR as the benchmark interest rate. In December 2022, our two remaining LIBOR swaps with a total notional amount of $ 325 million were amended to transition from LIBOR to SOFR as the benchmark interest rate (see Note 9 ) . During the year ended December 31, 2022, we repaid $ 80.1 million in mortgage debt. Revolving Credit Facility —We have an $ 800 million senior unsecured revolving credit facility with availability of $ 606.6 million, which is net of current letters of credit, as of December 31, 2023. The maturity date is January 2026, and we pay a facility fee of 0.25 % on the total amount under the facility. Term Loans —We have five unsecured term loans with maturities ranging from 2025 to 2027. Our term loans have interest rates of SOFR plus interest rate spreads based on our investment grade rating. We have utilized interest rate swaps to fix the rates on the majority of our term loans, with $ 264.8 million in term loans not fixed through such swaps. As of December 31, 2023 and 2022, the weighted-average interest rate, including the impact of swaps, on our term loans was 4.7 % and 3.8 %, respectively. Secured Debt —Our secured debt includes two facilities secured by certain properties in our portfolio, mortgage loans secured by individual properties, and finance leases. The interest rates on our secured debt are fixed. As of December 31, 2023 and 2022, our weighted average interest rate for our secured debt was 3.7 % and 3.8 %, respectively. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-21 Debt Allocation — The allocation of total debt between fixed-rate and variable-rate as well as between secured and unsecured, excluding market debt adjustments, discount on senior notes, and deferred financing expenses, net, and including the effects of derivative financial instruments as of December 31, 2023 and 2022, is summarized below (in thousands): 2023 2022 As to interest rate: Fixed-rate debt (1) $ 1,540,985 $ 1,633,784 Variable-rate debt 445,750 279,000 Total $ 1,986,735 $ 1,912,784 As to collateralization: Unsecured debt $ 1,495,750 $ 1,384,000 Secured debt 490,985 528,784 Total $ 1,986,735 $ 1,912,784 (1) Fixed-rate debt includes, and variable-rate debt excludes, the portion of such debt that has been hedged by interest rate derivatives. As of December 31, 2023, $ 700 million in variable rate debt is hedged to a fixed rate for a weighted-average period of 1.5 years (see Notes 9 and 16). Maturity Schedule — Below is our maturity schedule with the respective principal payment obligations, excluding finance lease liabilities, market debt adjustments, discount on senior notes, and deferred financing expenses, net (in thousands): 2024 2025 2026 2027 2028 Thereafter Total Unsecured debt (1) $ — $ 240,000 $ 582,750 $ 323,000 $ — $ 350,000 $ 1,495,750 Secured debt 28,123 37,636 1,908 200,595 17,367 205,048 490,677 Total $ 28,123 $ 277,636 $ 584,658 $ 523,595 $ 17,367 $ 555,048 $ 1,986,427 (1) Includes our revolving credit facility, term loans, and senior notes. 9. DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives —We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposure to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of our debt funding, and through the use of derivative financial instruments. Specifically, we enter into interest rate swaps to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to our investments and borrowings. Cash Flow Hedges of Interest Rate Risk —Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for our making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The changes in the fair value of derivatives designated, and that qualify, as cash flow hedges are recorded in AOCI and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the years ended December 31, 2023 and 2022, such derivatives were used to hedge the variable cash flows associated with certain variable-rate debt. Amounts reported in AOCI related to these derivatives will be reclassified to Interest Expense, Net as interest payments are made on the variable-rate debt. During the next twelve months, we estimate that an additional $ 11.5 million will be reclassified from AOCI as a decrease to Interest Expense, Net. In May 2022, we replaced LIBOR with SOFR as the benchmark interest rate for the two $ 240 million senior unsecured term loan tranches, maturing in November 2025 and July 2026. In November 2022, we replaced LIBOR with SOFR as the benchmark interest rate for our three remaining LIBOR term loans, which had a notional amount of $ 475 million. In accordance with ASC Topic 848, Reference Rate Reform (“ASC 848”), we elected not to dedesignate our LIBOR denominated interest rate swaps related to this hedged debt. As a result of these changes in the benchmark rate of the LIBOR term loans, we amended all of our interest rate swaps with a total notional amount of $ 755 million to change the benchmark interest rate from LIBOR to SOFR. As a result of these amendments, we elected to apply practical expedients in accordance with ASC 848 related to contract modifications, changes in critical terms, and updates to the designated hedged risks as qualifying changes have been made to applicable debt and derivative contracts. In March 2023, we entered into an interest rate swap which has a notional amount of $ 200 million and swaps SOFR for a fixed rate of approximately 3.36 % which became effective in September 2023 and matures in September 2026. In January 2024, we entered into an interest rate swap which has a notional amount of $ 150 million and swaps SOFR for a fixed rate of approximately 3.45 % effective September 2024 and maturing December 2025. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-22 The following is a summary of our interest rate swaps that were designated as cash flow hedges of interest rate risk as of December 31, 2023 and 2022 (notional amounts in thousands): 2023 2022 Count 4 4 Notional amount $ 700,000 $ 755,000 Fixed SOFR 2.1 % - 3.4 % 1.2 % - 2.8 % Maturity date 2024 - 2026 2023 - 2025 Weighted-average term (in years) 1.5 1.6 The table below details the nature of the gain and loss recognized on interest rate derivatives designated as cash flow hedges in the consolidated statements of operations for the years ended December 31, 2023, 2022, and 2021 (in thousands): 2023 2022 2021 Amount of gain recognized in Other Comprehensive (Loss) Income $ 8,586 $ 46,839 $ 12,501 Amount of (gain) loss reclassified from AOCI into Interest Expense, Net ( 20,402 ) 4,446 19,499 Credit-risk-related Contingent Features —We have agreements with our derivative counterparties that contain provisions where, if we default, or are capable of being declared in default, on any of our indebtedness, we could also be declared to be in default on our derivative obligations. As of December 31, 2023, there were no derivatives with a fair value in a net liability position, which would include accrued interest but exclude any adjustment for nonperformance risk related to these agreements . 10. INCOME TAXES General —We have elected to be taxed as a REIT under the IRC. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement to annually distribute to our stockholders at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding net capital gains. We intend to continue to adhere to these requirements and to maintain our REIT status. As a REIT, we are entitled to a deduction for some or all of the distributions we pay to our stockholders. Accordingly, we are generally subject to U.S. federal income taxes on any taxable income that is not currently distributed to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income taxes and may not be able to qualify as a REIT until the fifth taxable year following the year of disqualification. Notwithstanding our qualification as a REIT, we may be subject to certain state and local taxes on our income or properties. In addition, our consolidated financial statements include the operations of certain wholly-owned entities that have jointly elected to be treated as TRS entities and are subject to U.S. federal, state, and local incomes taxes at regular corporate tax rates. As a REIT, we may also be subject to certain U.S. federal excise taxes if we engage in certain types of transactions. Income tax benefits from uncertain tax positions are recognized in the consolidated financial statements only if we believe it is more likely than not that the uncertain tax position will be sustained based solely on the technical merits of the tax position and consideration of the relevant taxing authority's widely understood administrative practices and precedents. We do not believe that we have any uncertain tax positions at December 31, 2023 and 2022. The statute of limitations for the federal income tax returns remain open for the 2020 through 2022 tax years. The statute of limitations for state income tax returns remain open in accordance with each state's statute. Our accounting policy is to classify interest and penalties as a component of income tax expense. We accrued an insignificant amount of interest and penalties as of December 31, 2023. We accrued an insignificant amount of interest and no penalties as of December 31, 2022. Deferred Tax Assets and Liabilities —Deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year in which these temporary differences are expected to reverse. Deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of available evidence, including future reversal of existing taxable temporary differences, the magnitude and timing of future projected taxable income, and tax planning strategies. We believe, based on available evidence, it is not more likely than not that our net deferred tax asset will be realized in future periods and, therefore, have recorded a valuation allowance equal to the net deferred tax asset balance. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-23 The following is a summary of our deferred tax assets and liabilities as of December 31, 2023 and 2022 (in thousands): 2023 2022 Deferred tax assets: Equity compensation $ 1,934 $ 2,749 Accrued compensation 1,706 1,531 Net operating loss (“NOL”) carryforward 1,031 1,669 Reserves 300 300 Other 94 362 Gross deferred tax asset 5,065 6,611 Less: valuation allowance ( 1,143 ) ( 2,879 ) Total deferred tax asset 3,922 3,732 Deferred tax liabilities: Real estate and capitalized salaries ( 3,150 ) ( 3,239 ) Investment in third parties ( 563 ) ( 443 ) Other ( 209 ) ( 50 ) Total deferred tax liabilities ( 3,922 ) ( 3,732 ) Net deferred tax asset $ — $ — Our deferred tax assets and liabilities result from the activities of our TRS entities. The TRS entities have a federal NOL carryforward of approximately $ 4.0 million. The federal NOL carryforward can be carried forward indefinitely. As of December 31, 2023, the TRS entities have state NOL carryforwards of approximately $ 4.1 million, which will expire as determined under each state's statute. Differences between the net income or loss presented on the consolidated statements of operations and taxable income are primarily related to the timing of the recognition of gain on the sale of investment properties for financial reporting purposes and tax reporting, the recognition of impairment expense for financial reporting purposes which is not deductible for tax reporting purposes, and differences in the recognition of rental income and depreciation and amortization expense for both financial reporting and tax reporting. Distributions — The following table reconciles Net Income Attributable to Stockholders to REIT taxable income before the dividends paid deduction for the years ended December 31, 2023, 2022, and 2021 (in thousands): 2023 2022 2021 Net income attributable to stockholders $ 56,848 $ 48,323 $ 15,121 Net (income) loss from TRS entities ( 9,768 ) 968 ( 533 ) Net income attributable to REIT operations 47,080 49,291 14,588 Book/tax differences 54,311 47,730 69,943 REIT taxable income 101,391 97,021 84,531 Less: Capital gains ( 96 ) — ( 19,765 ) REIT taxable income subject to 90% dividend requirement $ 101,295 $ 97,021 $ 64,766 Total gross distributions to our stockholders exceeded 100% of REIT taxable income for the years ended December 31, 2023, 2022, and 2021. The tax characterization of our distributions declared for the years ended December 31, 2023, 2022, and 2021 was as follows: 2023 2022 2021 Common stock: Ordinary dividends 75.9 % 77.4 % 62.8 % Non-dividend distributions 24.0 % 22.6 % 18.1 % Capital gain distributions (1) 0.1 % — % 19.1 % Total distributions per share of common stock 100.0 % 100.0 % 100.0 % (1) Pursuant to U.S. Treasury Regulation §1.1061-6(c) and §1061 of the IRC, the One Year Amounts and Three Year Amounts disclosures are both zero with respect to direct and indirect holders of “applicable partnership interests” for us and our subsidiary REIT, Phillips Edison Institutional REIT, LLC for all years presented. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-24 11. COMMITMENTS AND CONTINGENCIES Litigation —We are involved in various claims and litigation matters arising in the ordinary course of business, some of which involve claims for damages. Many of these matters are covered by insurance, although they may nevertheless be subject to deductibles or retentions. Although the ultimate liability for these matters cannot be determined, based upon information currently available, we believe the resolution of such claims and litigation will not have a material adverse effect on our consolidated financial statements. Environmental Matters —In connection with the ownership and operation of real estate, we may potentially be liable for costs and damages related to environmental matters. In addition, we may own or acquire certain properties that are subject to environmental remediation. Depending on the nature of the environmental matter, the seller of the property, a tenant of the property, and/or another third party may be responsible for environmental remediation costs related to a property. Additionally, in connection with the purchase of certain properties, the respective sellers and/or tenants may agree to indemnify us against future remediation costs. We also carry environmental liability insurance on our properties that provides limited coverage for any remediation liability and/or pollution liability for third-party bodily injury and/or property damage claims for which we may be liable. We are not currently aware of any environmental matters that we believe are reasonably likely to have a material effect on our consolidated financial statements. Captive Insurance —Our captive insurance company, Silver Rock Insurance, Inc. (“Silver Rock”), provides general liability insurance, wind, reinsurance, and other coverage to us and our GRP I joint venture. We capitalize Silver Rock in accordance with applicable regulatory requirements. Silver Rock establishes annual premiums based on the past loss experience of the insured properties. An independent third party was engaged to perform an actuarial estimate of projected future claims, related deductibles, and projected future expenses necessary to fund associated risk management programs. Premiums paid to Silver Rock may be adjusted based on this estimate. Premiums paid to Silver Rock may be reimbursed by tenants pursuant to specific lease terms. As of December 31, 2023, we had four letters of credit outstanding totaling approximately $ 12.5 million to provide security for our obligations under Silver Rock’s insurance and reinsurance contracts. The following is a summary of the activity in the liability for unpaid losses, which is recorded in Accounts Payable and Other Liabilities on our consolidated balance sheets, for the years ended December 31, 2023 and 2022 (in thousands): 2023 2022 Beginning balances $ 9,607 $ 8,606 Incurred related to: Current year 3,369 2,512 Prior years ( 195 ) 366 Total incurred 3,174 2,878 Paid related to: Current year 136 293 Prior years 3,235 1,584 Total paid 3,371 1,877 Liabilities for unpaid losses as of December 31 $ 9,410 $ 9,607 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-25 12. EQUITY General —The holders of common stock are entitled to one vote per share on all matters voted on by stockholders, including one vote per nominee in the election of the Board. Our charter does not provide for cumulative voting in the election of directors. At-the-Market Offering (“ATM”) —On February 10, 2022, we and the Operating Partnership entered into a sales agreement relating to the potential sale of shares of common stock pursuant to a continuous offering program. In accordance with the terms of the sales agreement, we may offer and sell shares of our common stock having an aggregate offering price of up to $ 250 million from time to time through our sales agents, or, if applicable, as forward sellers. During the three months ended December 31, 2023, we issued 2.2 million shares of our common stock at a gross weighted average price of $ 35.92 per share under the ATM program for net proceeds of $ 77.5 million, after approximately $ 0.8 million in commissions. During the year ended December 31, 2023, we issued 4.2 million shares of our common stock at a gross weighted average price of $ 35.76 per share under the ATM program for net proceeds of $ 147.6 million, after approximately $ 1.5 million in commissions. During the three months ended December 31, 2022, no shares were issued under the ATM program. During the year ended December 31, 2022, we issued 2.6 million shares of our common stock at a gross weighted average price of $ 34.23 per share under the ATM program for net proceeds of $ 89.2 million, after approximately $ 0.9 million in commissions. As of December 31, 2023, approximately $ 10.8 million of common stock remained available for issuance under the ATM program. Subsequent to December 31, 2023, we issued approximately 46,000 additional shares of our common stock at a gross weighted average price of $ 37.05 per share under the ATM program for net proceeds of $ 1.7 million, after approximately $ 17,000 in commissions. Class B Common Stock —On June 18, 2021, our stockholders approved the Articles of Amendment that effected the Recapitalization, wherein each share of our common stock outstanding at the time the amendment became effective was converted into one share of a newly created class of Class B common stock. Our Class B common stock was identical to our common stock, except that it was not listed on a national securities exchange. Per the terms of the Recapitalization, on January 18, 2022, each share of our Class B common stock automatically converted into one share of our listed common stock. On May 5, 2022, we filed Articles Supplementary to our charter with the Maryland State Department of Assessments and Taxation in order to reclassify and designate all of the 350 million authorized shares of our Class B common stock, $ 0.01 par value per share, all of which were unissued at such time, as shares of our common stock, $ 0.01 par value per share. We no longer have Class B common stock authorized for issue. Reverse Stock Split —On July 2, 2021, we effected a one-for-three reverse stock split. Concurrent with the reverse split, the Operating Partnership enacted a one-for-three reverse split of its outstanding OP units. Neither the number of authorized shares nor the par value of the common stock were impacted. As a result of the reverse split, every three shares of our common stock or OP units were automatically combined and converted into one issued and outstanding share of common stock or OP unit rounded to the nearest 1/100th share. The reverse stock split impacted all common stock and OP units proportionately and had no impact on any stockholder’s percentage ownership of common stock. In connection with the reverse stock split, the number of shares of common stock and OP units underlying the outstanding share-based awards was also proportionately reduced. All references to shares of common stock, number of OP units, and per share data for all periods presented in our consolidated financial statements and notes have been adjusted to reflect the reverse split on a retroactive basis. Underwritten IPO —On July 19, 2021, we completed our underwritten IPO and issued 17.0 million shares of common stock at an offering price to the public of $ 28.00 per share. We used a portion of the net proceeds to reduce our leverage and used the remaining amount to fund external growth with property acquisitions and for other general corporate uses. As part of the underwritten IPO, underwriters were granted an option exercisable within 30 days from July 14, 2021 to purchase up to an additional 2.6 million shares of common stock at the underwritten IPO price, less underwriting discounts and commissions. On July 29, 2021, the underwriters exercised their option. The underwritten IPO, including the underwriters’ overallotment election, resulted in gross proceeds of $ 547.4 million. Distributions —In 2023, we declared and paid monthly distributions of $ 0.0933 per share and OP unit, or $ 1.12 annualized, for each month beginning January 2023 through August 2023. On September 1, 2023, the Board authorized a 4.5 % increase of our monthly distribution rate to $ 0.0975 per common share and OP unit. We declared and paid monthly distributions of $ 0.0975 per share and OP unit, or $ 1.17 annualized, for each month beginning September 2023 through December 2023. Distributions paid to stockholders and OP unit holders of record subsequent to December 31, 2023 were as follows (dollars in thousands, excluding per share amounts): Month Date of Record Date Distribution Paid Monthly Distribution Rate Cash Distribution December 12/15/2023 1/2/2024 $ 0.0975 $ 13,154 January 1/16/2024 2/1/2024 0.0975 13,223 Convertible Noncontrolling Interests —As of December 31, 2023 and 2022, we had approximately 13.8 million and 14.1 million outstanding non-voting OP units, respectively. Additionally, certain of our outstanding restricted share and performance share awards will result in the issuance of OP units upon vesting in future periods. These are included in the outstanding unvested award totals disclosed in Note 13. Under the terms of the Fourth Amended and Restated Agreement of Limited Partnership, OP unit holders may elect to cause the Operating Partnership to redeem their OP units. The Operating Partnership controls the form of the redemption, and may PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-26 elect to redeem OP units for shares of our common stock, provided that the OP units have been outstanding for at least one year, or for cash. As the form of redemption for OP units is within our control, the OP units outstanding as of December 31, 2023 and 2022 are classified as Noncontrolling Interests within permanent equity on our consolidated balance sheets. On January 18, 2022, we issued approximately 1.6 million OP units in full settlement of the earn-out liability (see note 16). The table below is a summary of our OP unit activity for the years ended December 31, 2023 and 2022 (dollars and shares in thousands): 2023 2022 OP units converted into shares of common stock (1) 517 1,169 Distributions declared on OP units (2) $ 16,334 $ 16,241 (1) Prior to the Recapitalization, OP units were converted to shares of common stock at a 1 :1 ratio. From the Recapitalization through January 18, 2022, OP units were converted into shares of our Class B common stock at a 1 :1 ratio. On January 18, 2022, each share of our Class B common stock automatically converted into one share of our listed common stock, and going forward, OP units will be converted into shares of our common stock at a 1 :1 ratio. (2) Distributions declared on OP units are included in Distributions to Noncontrolling Interests on the consolidated statements of equity. Dividend Reinvestment Plan and Share Repurchase Programs —On August 4, 2021, as a result of our underwritten IPO, our Board approved the termination of the DRIP and the original share repurchase program. On August 3, 2022, our Board approved a new share repurchase program of up to $ 250 million of common stock. The program may be suspended or discontinued at any time, and does not obligate us to repurchase any dollar amount or particular number of shares. No share repurchases have been made to date under this program. 13. COMPENSATION Employee Long Term Incentive Plan— We issue stock awards that vest based upon the completion of a service period (“service-based awards”) under our 2020 Omnibus Incentive Plan (“2020 Incentive Plan”), which became effective in June 2020. Awards to employees are typically granted and vest during the first quarter of each year. Service-based awards typically follow a four-year graded vesting schedule and will vest in the form of common stock or OP units. We recognize expense for awards with graded vesting under the accelerated recognition method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. We account for forfeitures as they occur. Expense amounts are recorded in General and Administrative or Property Operating on our consolidated statements of operations. Prior to our underwritten IPO, the awards were valued according to the EVPS for our common stock at the date of grant. Subsequent to our underwritten IPO, awards are valued according to the Nasdaq closing stock price at the date of the grant. Holders of unvested service-based awards are entitled to dividend and distribution rights, but are not entitled to voting rights. Additionally, we issue performance-based awards that are earned based on the achievement of specified performance metrics measured at the end of the three-year performance period. The maximum number of performance-based awards earned cannot exceed two times the target number. Half of the earned performance-based awards vest when earned at the end of the three-year performance period and the second half of the earned performance-based awards vest one year later, subject to continued employment. Beginning in 2022, our Compensation Committee approved a change to our performance-based long-term incentive program such that the performance-based component of awards under the program will be based on a single metric, total shareholder return relative to the FTSE Nareit Equity Shopping Center Index. Prior to 2022, our performance-based equity grants were based on two separate, equally-weighted performance metrics: (i) three-year average Same-Center NOI growth measured against a peer group of public retail REITs; and (ii) three-year Core Funds From Operations (“FFO”) per share growth measured against the same peer group. Same-Center NOI and Core FFO are both non-GAAP measures. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-27 The fair value of the 2023 and 2022 performance-based awards on the date of grant was $ 6.0 million and $ 5.4 million, respectively, using a Monte Carlo simulation to estimate the fair value through a risk-neutral premise. The following is a summary of the significant assumptions used to value the performance-based awards granted during the years ended December 31, 2023 and 2022: 2023 2022 Expected volatility 38.0 % 54.0 % Dividend yield 3.20 % 3.25 % Risk-free interest rate 4.63 % 1.52 % In addition to the applicable performance metrics, a net asset value (“NAV”) modifier will be applied to the calculation of earned performance-based awards if the NAV per share at the end of the performance period is less than the value at issuance. Subsequent to our underwritten IPO, the NAV per share is measured by the Nasdaq closing stock price at the end of the performance period. Specifically, to the extent performance above the target level is achieved at the end of the performance period, yet our NAV per share at the end of the performance period is less than the value at issuance, the amount of earned awards will be capped at the target amount. The remaining amount of awards (the difference between those that would have otherwise been earned based on actual performance and the target level) may become earned, and thereafter vested, if our NAV per share exceeds the NAV per share at the beginning of the performance period for 20 consecutive trading days up to five years following the completion of the performance period, assuming continued employment on such date. The performance period for the performance-based awards granted in 2018 and 2019 ended on December 31, 2020 and 2021, respectively. Based on our performance through December 31, 2020 and 2021, these awards would have been earned at maximum, but because our NAV per share growth for that same performance period was negative, the amount of earned awards was capped at the target amount. Based on the performance of common stock closing prices throughout the fourth quarter of 2021, we believed it was more than probable that we would achieve positive NAV per share growth for 20 consecutive trading days prior to December 31, 2025 and 2026. As such, we recognized approximately $ 4.2 million of expense associated with achieving the maximum award for both of these grants during the year ended December 31, 2021, of which $ 3.2 million was recorded in General and Administrative and $ 1.0 million was recorded in Property Operating on our consolidated statements of operations. During the year ended December 31, 2022, the unearned portion in excess of target and up to the maximum vested as our NAV per share growth became positive. Underwritten IPO Grants —In connection with our underwritten IPO, we issued a total of 0.5 million RSUs, inclusive of 0.3 million OP units, and restricted stock awards in the form of time-based stock compensation awards with expenses included within Other Expense, Net on our consolidated statements of operations. Included in the restricted stock awards were 24,000 RSUs granted to our independent directors. The shares have a grant price of $ 28.00 per share and, with the exception of one individual whose award is subject to accelerated vesting provisions, 50 % of the shares vested after 18 months and the remaining 50 % will vest after 36 months. Independent Director Stock Plan— The Board approves restricted stock awards pursuant to our Amended and Restated 2010 Independent Director Stock Plan. The awards are granted to our independent directors as service-based awards. As of December 31, 2023 and 2022, there were approximately 27,000 and 24,000 outstanding unvested awards granted to independent directors, respectively, in connection with the 2010 Independent Director Stock Plan. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-28 Share-Based Compensation Award Activity— As of December 31, 2023, the fair value for certain of our equity awards is based on our Nasdaq closing stock price at the date of the grant and the fair value for our 2023 and 2022 performance-based awards is calculated using the Monte Carlo method, as described above. All share-based compensation awards, regardless of the form of payout upon vesting, are presented in the following table, which summarizes our stock-based award activity (number of units in thousands): Restricted Stock Awards (1) Performance Stock Awards (1) Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2021 349 905 $ 33.06 Granted 663 131 27.55 Vested ( 151 ) ( 62 ) 32.52 Forfeited ( 24 ) — 29.35 Nonvested at December 31, 2021 837 974 30.71 Granted 152 344 27.41 Vested ( 164 ) ( 181 ) 32.55 Forfeited ( 55 ) ( 1 ) 29.04 Nonvested at December 31, 2022 770 1,136 29.60 Granted 162 308 27.27 Vested ( 393 ) ( 129 ) 29.99 Forfeited ( 10 ) — 30.75 Nonvested at December 31, 2023 529 1,315 $ 28.89 (1) The maximum number of award units that could be issued under all outstanding grants was 1.8 million as of December 31, 2023. The number of award units expected to vest was 1.1 million as of December 31, 2023. The expense for all stock-based awards during the years ended December 31, 2023, 2022, and 2021 was $ 9.4 million, $ 14.9 million, and $ 16.8 million, respectively. We had $ 11.5 million of unrecognized compensation costs related to these awards that we expect to recognize over a weighted average period of approximately two years . The fair value at the vesting date for stock-based awards that vested during the year ended December 31, 2023 was $ 19.5 million. 401(k) Plan —We sponsor a 401(k) plan that provides benefits for qualified employees. Our match of the employee contributions is discretionary and has a five-year vesting schedule. The cash contributions to the plan for the years ended December 31, 2023, 2022, and 2021 were approximately $ 1.1 million, $ 1.0 million, and $ 1.0 million, respectively. All employees who have attained the age of 21 are eligible to participate starting the first day of the month following their date of hire. Employees are vested immediately with respect to employee contributions. 14. EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed by dividing Net Income Attributable to Stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity. The following table provides a reconciliation of the numerator and denominator of the earnings per share calculations for the years ended December 31, 2023, 2022, and 2021 (in thousands, except per share amounts): 2023 2022 2021 Numerator: Net income attributable to stockholders - basic $ 56,848 $ 48,323 $ 15,121 Net income attributable to convertible OP units (1) 6,914 6,206 2,112 Net income - diluted $ 63,762 $ 54,529 $ 17,233 Denominator: Weighted-average shares - basic (2) 118,278 115,403 102,403 OP units (1)(3) 14,096 14,355 14,071 Dilutive restricted stock awards 596 574 198 Adjusted weighted-average shares - diluted 132,970 130,332 116,672 Earnings per common share: Basic and diluted income per share $ 0.48 $ 0.42 $ 0.15 (1) OP units include units that are convertible into common stock or cash, at the Operating Partnership’s option. The Operating Partnership income or loss attributable to these OP units, which is included as a component of Net Income Attributable to Noncontrolling Interests on the consolidated statements of operations, has been added back in the numerator as these OP units were included in the denominator for PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-29 all years presented. OP units are allocated income on a consistent basis with the common stockholder and therefore have no dilutive impact to earnings per share of common stock. (2) Includes 4.4 million and 93.6 million weighted-average shares of Class B common stock and 111.0 million and 8.8 million weighted-average shares of common stock during the years ended December 31, 2022 and 2021, respectively. (3) For the year ended December 31, 2021, diluted weighted-average shares include 0.7 million OP units awarded as a result of the full settlement of the earn-out in January 2022 (see Note 16). 15. RELATED PARTY TRANSACTIONS Revenue —We have entered into agreements with the Managed Funds related to certain advisory, management, and administrative services we provide to their real estate assets in exchange for fees and reimbursement of certain expenses. Summarized below are amounts included in Fees and Management Income. The revenue includes the fees and reimbursements earned by us from the Managed Funds and other revenues that are not in the scope of ASC 606 but are included in this table for the purpose of disclosing all related party revenues during the years ended December 31, 2023, 2022, and 2021 (in thousands): 2023 2022 2021 Recurring fees (1) $ 3,894 $ 3,962 $ 4,345 Realized performance income (2) 75 2,742 675 Transactional revenue and reimbursements (3) 2,249 1,605 2,166 Insurance premiums (4) 3,428 3,232 3,149 Total fees and management income $ 9,646 $ 11,541 $ 10,335 (1) Recurring fees include asset management fees and property management fees. (2) Realized performance income includes fees received related to the achievement of certain performance targets in our NRP joint venture. (3) Transactional revenue includes items such as leasing commissions and construction management fees. (4) Insurance premium income includes amounts for reinsurance from third parties not affiliated with us. Tax Protection Agreement —Through our Operating Partnership, we are currently party to a tax protection agreement (the “2017 TPA”) with certain partners that contributed property to our Operating Partnership on October 4, 2017, among them certain of our executive officers, including Jeffrey S. Edison, our Chairman and Chief Executive Officer, under which the Operating Partnership agreed to indemnify such partners for tax liabilities that could accrue to them personally related to our potential disposition of certain properties within our portfolio. The 2017 TPA will expire on October 4, 2027. On July 19, 2021, we entered into an additional tax protection agreement (the “2021 TPA”) with certain of our executive officers, including Mr. Edison. The 2021 TPA carries a term of four years and will become effective upon the expiration of the 2017 TPA. As of December 31, 2023, the potential “make-whole amount” on the estimated aggregate amount of built-in gain subject to protection under the agreements is approximately $ 122.7 million. The protection provided under the terms of the 2021 TPA will expire in 2031. We have not recorded any liability related to the 2017 TPA or the 2021 TPA on our consolidated balance sheets for any periods presented, nor recognized any expense since the inception of the 2017 TPA, owing to the fact that any potential liability under the agreements is controlled by us and we believe we will either (i) continue to own and operate the protected properties or (ii) be able to successfully complete Section 1031 Exchanges (unless there is a change in applicable law) or complete other tax-efficient transactions to avoid any liability under the agreements. Other Related Party Matters —As of December 31, 2023, we were the limited guarantor of a $ 175 million mortgage loan secured by GRP I properties. Our guaranty for the GRP I debt is limited to being the non-recourse carveout guarantor and the environmental indemnitor. Further, we are also party to an agreement with GRP I in which any potential liability under such guarantee will be apportioned between us and GRP I based on our respective ownership percentages in the joint venture. We have no liability recorded on our consolidated balance sheets for the guaranty as of December 31, 2023 and 2022. In December 2022, we contributed certain assets to a third-party company in exchange for a warrant representing a 15 % equity interest in the company, subject to certain conditions. This non-cash investment had a fair market value of $ 6.8 million, was accounted for as an equity method investment, and was recorded in Other Assets, Net. In connection with the transaction, we entered into a services contract for the use of these assets with the third-party company for a term of five years , with a required minimum annual payment by us of $ 1.2 million. For the year ended December 31, 2023, we paid service fees of $ 1.9 million and recorded equity income of $ 0.1 million. During 2021, we made a cash investment of $ 3.0 million into a third-party company in exchange for preferred shares of their stock. As part of the investment agreement, the third-party company entered into leases at two of our properties. During 2023, we determined that the investment in the third-party company was fully impaired due to the value of the investment being significantly reduced, which is not deemed to be temporary, indicated by the company’s inability to pay rent. As a result, we recorded impairment expense of $ 3.0 million in Other Expense, Net on our consolidated statement of operations for the year ended December 31, 2023 and reserved tenant receivables of $ 0.2 million as of December 31, 2023 as the company is considered to be non-creditworthy. PECO Air L.L.C. (“PECO Air”), an entity in which Mr. Edison, our Chairman and Chief Executive Officer, owns a 50 % interest, owns an airplane that we use for business purposes in the course of our operations. We paid approximately $ 0.9 million, $ 0.9 million, and $ 0.8 million to PECO Air for use of its airplane per the terms of our contractual agreements for the years ended December 31, 2023, 2022, and 2021, respectively. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-30 16. FAIR VALUE MEASUREMENTS The following describes the methods we use to estimate the fair value of our financial and nonfinancial assets and liabilities: Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, and Accounts Payable —We consider the carrying values of these financial instruments to approximate fair value because of the short period of time between origination of the instruments and their expected realization. Real Estate Investments —The purchase prices of the investment properties, including related lease intangible assets and liabilities, are allocated at estimated fair value based on Level 3 inputs, such as discount rates, capitalization rates, comparable sales, replacement costs, income and expense growth rates, and current market rents and allowances as determined by management. Debt Obligations —We estimate the fair value of our revolving credit facility, term loans, secured portfolio of loans, and mortgages by discounting the future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturities by our lenders using Level 3 inputs. The discount rates used approximate current lending rates for loans or groups of loans with similar maturities and credit quality, assuming the debt is outstanding through maturity and considering the debt’s collateral (if applicable). We have utilized market information, as available, or present value techniques to estimate the amounts required to be disclosed. We estimate the fair value of our senior unsecured notes by using quoted prices in active markets, which are considered Level 1 inputs. The following is a summary of borrowings as of December 31, 2023 and 2022 (in thousands): 2023 2022 Recorded Principal Balance (1) Fair Value Recorded Principal Balance (1) Fair Value Revolving credit facility $ 181,000 $ 181,714 $ 79,000 $ 79,299 Term loans 956,132 970,238 948,429 959,319 Senior unsecured notes due 2031 343,698 284,865 342,999 257,446 Secured portfolio loan facilities 392,575 351,339 392,093 343,921 Mortgages (2) 95,867 94,966 134,073 132,563 Total $ 1,969,272 $ 1,883,122 $ 1,896,594 $ 1,772,548 (1) As of December 31, 2023 and 2022, respectively, recorded principal balances include: (i) net deferred financing fees of $ 10.3 million and $ 8.0 million; (ii) assumed market debt adjustments of $ 0.9 million and $ 1.2 million; and (iii) notes payable discounts of $ 6.3 million and $ 7.0 million. (2) Our finance lease liability is included in the mortgages line item, as presented. Recurring and Nonrecurring Fair Value Measurements —Our marketable securities, earn-out liability, and interest rate swaps are measured and recognized at fair value on a recurring basis, while certain real estate assets and liabilities are measured and recognized at fair value as needed. Fair value measurements that occurred as of and during the years ended December 31, 2023 and 2022 were as follows (in thousands): 2023 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Recurring Marketable securities (1) $ 8,566 $ — $ — $ 7,792 $ — $ — Derivative assets (1)(2) — 12,669 — — 25,853 — Nonrecurring Impaired real estate assets, net (3) $ — $ — $ — $ — $ 5,225 $ — (1) We record marketable securities and derivative assets in Other Assets, Net on our consolidated balance sheets. (2) The fair values of the derivative assets exclude associated accrued interest receivable of $ 1.7 million and $ 1.4 million as of December 31, 2023 and 2022, respectively. (3) The carrying value of impaired real estate assets may have subsequently increased or decreased after the measurement date due to capital improvements, depreciation, or sale. Marketable Securities —We estimate the fair value of marketable securities using Level 1 inputs. We utilize unadjusted quoted prices for identical assets in active markets that we have the ability to access. Derivative Instruments —As of December 31, 2023 and 2022, we had interest rate swaps that fixed SOFR on portions of our unsecured term loan facilities. All interest rate swap agreements are measured at fair value on a recurring basis. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-31 To comply with the provisions of ASC 820, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although we determined that the significant inputs used to value our derivatives fell within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our counterparties and our own credit risk utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counterparties. However, as of December 31, 2023 and 2022, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Earn-out —As part of our acquisition of Phillips Edison Limited Partnership (“PELP”) in 2017, an earn-out structure was established which gave PELP the opportunity to earn additional OP units based upon the potential achievement of certain performance targets subsequent to the acquisition. On January 11, 2022, we finalized the fair value of the earn-out liability based on our share price and issued approximately 1.6 million OP units in full settlement of the liability with a value of $ 54.2 million. Changes in the fair value of the earn-out liability were recorded to Other Expense, Net in the consolidated statements of operations. We recorded no expense during the year ended December 31, 2023. We recorded expense of $ 1.8 million and $ 30.4 million for the years ended December 31, 2022 and 2021, respectively. Real Estate Asset Impairment —Our real estate assets are measured and recognized at fair value, less costs to sell held-for-sale properties, on a nonrecurring basis dependent upon when we determine an impairment has occurred. We impair assets that are under contract at a disposition price that is less than carrying value, or that have other operational impairment indicators. The valuation technique used for the fair value of all impaired real estate assets was the expected net sales proceeds, which we consider to be a Level 2 input in the fair value hierarchy. We recorded the following expense upon impairment of real estate assets for the years ended December 31, 2023, 2022, and 2021 (in thousands): 2023 2022 2021 Impairment of real estate assets $ — $ 322 $ 6,754 17. SUBSEQUENT EVENTS In preparing the audited consolidated financial statements, we have evaluated subsequent events through the date of filing of this report on Form 10-K for recognition and/or disclosure purposes. Based on this evaluation, we have determined that there were no events that have occurred that require recognition or disclosure, other than certain events and transactions that have been disclosed elsewhere in these consolidated financial statements. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-32 SCHEDULE III—REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION December 31, 2023 (in thousands) Initial Cost Costs Capitalized Subsequent to Acquisition (2) Gross Amount Carried at End of Period (3) Property Name City, State Encumbrances (1) Land and Improvements Buildings and Improvements Land and Improvements Buildings and Improvements Total Accumulated Depreciation Date Constructed/ Renovated Date Acquired Snow View Plaza Parma, OH $ — $ 4,104 $ 6,432 $ 1,449 $ 4,490 $ 7,495 $ 11,985 $ 4,490 1981 12/15/2010 Lakeside Plaza Salem, VA — 3,344 5,247 1,066 3,591 6,066 9,657 3,539 1988 11/23/2011 St. Charles Plaza Davenport, FL — 4,090 4,399 829 4,437 4,881 9,318 3,622 2007 11/23/2011 Burwood Village Center Glen Burnie, MD — 5,448 10,167 714 5,809 10,520 16,329 6,336 1971 11/23/2011 Centerpoint Easley, SC — 2,750 4,361 1,627 3,441 5,297 8,738 3,162 2002 11/23/2011 Southampton Village Tyrone, GA — 3,046 5,788 1,559 3,439 6,954 10,393 3,496 2003 11/23/2011 Cureton Town Center Waxhaw, NC — 6,569 6,197 2,726 5,954 9,538 15,492 5,640 2006/2018 12/29/2011 Tramway Crossing Sanford, NC — 2,016 3,071 1,081 2,650 3,518 6,168 2,555 1996 2/23/2012 Village At Glynn Place Brunswick, GA — 5,812 7,368 1,878 6,078 8,980 15,058 5,123 1992/2009 4/27/2012 Meadowthorpe Manor Shoppes Lexington, KY — 4,093 4,185 2,209 4,636 5,851 10,487 2,953 1989/2022 5/9/2012 Brentwood Commons Bensenville, IL — 6,105 8,024 2,525 6,350 10,304 16,654 5,376 1981/2015 7/5/2012 Sidney Towne Center Sidney, OH — 1,429 3,802 1,748 2,209 4,770 6,979 3,382 1981/2007 8/2/2012 Broadway Plaza Tucson, AZ — 4,979 7,169 2,992 6,187 8,953 15,140 5,196 1982/2003 8/13/2012 Baker Hill Glen Ellyn, IL — 7,068 13,738 10,185 7,731 23,260 30,991 11,588 1998/2018 9/6/2012 New Prague Commons New Prague, MN — 3,248 6,604 3,149 3,447 9,554 13,001 5,576 2008/2019 10/12/2012 Heron Creek Towne Center North Port, FL — 4,062 4,082 966 4,359 4,751 9,110 2,719 2001 12/17/2012 Quartz Hill Towne Centre Lancaster, CA 11,740 6,689 13,529 1,285 7,317 14,186 21,503 6,850 1991/2012 12/27/2012 Village One Plaza Modesto, CA 17,700 5,166 18,752 980 5,533 19,365 24,898 8,736 2007 12/28/2012 Hilfiker Shopping Center Salem, OR — 2,879 4,750 166 3,004 4,791 7,795 2,311 1984/2011 12/28/2012 Butler Creek Acworth, GA — 3,925 6,129 3,745 4,377 9,422 13,799 4,251 1989 1/15/2013 Fairview Oaks Ellenwood, GA 6,430 3,563 5,266 1,408 3,931 6,306 10,237 3,245 1996 1/15/2013 Grassland Crossing Alpharetta, GA — 3,680 5,791 1,305 3,864 6,912 10,776 3,477 1996 1/15/2013 Hamilton Ridge Buford, GA — 4,772 7,168 2,868 5,122 9,686 14,808 4,498 2002 1/15/2013 Mableton Crossing Mableton, GA — 4,426 6,413 1,481 4,913 7,407 12,320 4,039 1997 1/15/2013 Shops at Westridge McDonough, GA — 2,788 3,901 2,123 2,973 5,839 8,812 2,903 2006/2020 1/15/2013 Fairlawn Town Centre Fairlawn, OH 20,000 10,398 29,005 5,155 11,658 32,900 44,558 16,684 1962/2012 1/30/2013 Macland Pointe Marietta, GA — 3,493 5,364 1,470 3,975 6,352 10,327 3,691 1992 2/13/2013 Kleinwood Center Spring, TX — 11,478 18,954 1,341 11,797 19,976 31,773 10,386 2003 3/21/2013 Murray Landing Columbia, SC 6,750 3,221 6,856 2,335 3,804 8,608 12,412 4,095 2003/2016 3/21/2013 Vineyard Shopping Center Tallahassee, FL — 2,761 4,221 642 3,062 4,562 7,624 2,618 2002 3/21/2013 Lutz Lake Crossing Lutz, FL — 2,636 6,600 1,066 3,031 7,271 10,302 3,358 2002 4/4/2013 Publix at Seven Hills Spring Hill, FL — 2,171 5,642 1,378 2,518 6,673 9,191 3,110 1991/2006 4/4/2013 Hartville Centre Hartville, OH — 2,069 3,691 1,963 2,493 5,230 7,723 2,770 1988/2008 4/23/2013 Sunset Shopping Center Corvallis, OR 15,410 7,933 14,939 3,128 8,246 17,754 26,000 7,583 1998/2023 5/31/2013 Savage Town Square Savage, MN 9,000 4,106 9,409 481 4,422 9,574 13,996 4,910 2003 6/19/2013 Glenwood Crossings Kenosha, WI — 1,872 9,914 1,289 2,418 10,657 13,075 4,734 1992/2018 6/27/2013 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-33 SCHEDULE III—REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION December 31, 2023 (in thousands) Initial Cost Costs Capitalized Subsequent to Acquisition (2) Gross Amount Carried at End of Period (3) Property Name City, State Encumbrances (1) Land and Improvements Buildings and Improvements Land and Improvements Buildings and Improvements Total Accumulated Depreciation Date Constructed/ Renovated Date Acquired Shiloh Square Shopping Center Kennesaw, GA — 4,685 8,729 2,474 4,864 11,024 15,888 4,835 1996/2003 6/27/2013 Pavilions at San Mateo Albuquerque, NM — 6,470 18,726 2,486 7,024 20,658 27,682 9,264 1997/2012 6/27/2013 Boronda Plaza Salinas, CA 14,750 9,027 11,870 728 9,374 12,251 21,625 5,744 2003/2021 7/3/2013 Westwoods Shopping Center Arvada, CO — 3,706 11,115 1,340 4,594 11,567 16,161 5,530 2003/2011 8/8/2013 Paradise Crossing Lithia Springs, GA — 2,204 6,064 1,044 2,535 6,777 9,312 3,178 2000 8/13/2013 Contra Loma Plaza Antioch, CA — 3,018 3,926 2,036 3,758 5,222 8,980 2,269 1989/2022 8/19/2013 South Oaks Plaza St. Louis, MO — 1,938 6,634 2,680 2,186 9,066 11,252 3,483 1969/2021 8/21/2013 Yorktown Centre Millcreek Township, PA — 3,736 15,396 2,995 4,590 17,537 22,127 8,851 1989/2020 8/30/2013 Dyer Town Center Dyer, IN 8,071 6,017 10,214 912 6,499 10,644 17,143 5,354 2004/2005 9/4/2013 East Burnside Plaza Portland, OR — 2,484 5,422 186 2,601 5,491 8,092 2,068 1955/1999 9/12/2013 Red Maple Village Tracy, CA 20,584 9,250 19,466 783 9,656 19,843 29,499 7,876 2009 9/18/2013 Crystal Beach Plaza Palm Harbor, FL 6,360 2,334 7,918 794 2,488 8,558 11,046 3,945 2010 9/25/2013 CitiCentre Plaza Carroll, IA — 770 2,530 605 1,071 2,834 3,905 1,343 1991/2018 10/2/2013 Duck Creek Plaza Bettendorf, IA — 4,612 13,007 1,866 5,239 14,246 19,485 5,860 2005/2022 10/8/2013 Cahill Plaza Inver Grove Heights, MN — 2,587 5,114 979 2,990 5,690 8,680 2,824 1995/2020 10/9/2013 College Plaza Normal, IL — 4,460 17,772 6,054 5,151 23,135 28,286 8,049 1983/2018 10/22/2013 Courthouse Marketplace Virginia Beach, VA 11,650 6,130 8,061 1,746 6,403 9,534 15,937 4,368 2005 10/25/2013 Hastings Marketplace Hastings, MN — 3,980 10,045 1,220 4,532 10,713 15,245 5,026 2002 11/6/2013 Coquina Plaza Southwest Ranches, FL — 9,458 11,770 1,359 9,798 12,789 22,587 5,363 1998 11/7/2013 Shoppes of Paradise Lakes Miami, FL — 5,811 6,020 1,103 6,156 6,778 12,934 3,182 1999 11/7/2013 Collington Plaza Bowie, MD — 12,207 15,142 2,162 12,605 16,906 29,511 7,123 1996 11/21/2013 Golden Town Center Golden, CO 14,711 7,065 10,166 2,016 7,721 11,526 19,247 5,630 1993/2003 11/22/2013 Northstar Marketplace Ramsey, MN — 2,810 9,204 3,662 3,023 12,653 15,676 4,487 2004/2023 11/27/2013 Bear Creek Plaza Petoskey, MI — 5,677 17,611 1,737 5,894 19,131 25,025 8,770 1998/2018 12/18/2013 East Side Square Springfield, OH — 394 963 187 412 1,132 1,544 540 2007 12/18/2013 Flag City Station Findlay, OH — 4,685 9,630 3,699 4,993 13,021 18,014 5,240 1992/2020 12/18/2013 Town & Country Shopping Center Noblesville, IN 13,480 7,361 16,269 505 7,456 16,679 24,135 7,746 1998/2023 12/18/2013 Sulphur Grove Huber Heights, OH — 553 2,142 789 611 2,873 3,484 1,145 2004 12/18/2013 Southgate Shopping Center Des Moines, IA — 2,434 8,358 1,795 2,977 9,610 12,587 $ 4,604 1972/2014 12/20/2013 Sterling Pointe Center Lincoln, CA 24,073 7,039 20,822 2,196 7,733 22,324 30,057 8,784 2004/2017 12/20/2013 Arcadia Plaza Phoenix, AZ — 5,774 6,904 3,274 6,118 9,834 15,952 4,312 1980/2018 12/30/2013 Stop & Shop Plaza Enfield, CT — 8,892 15,028 1,448 9,401 15,967 25,368 7,373 1988/1998 12/30/2013 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-34 SCHEDULE III—REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION December 31, 2023 (in thousands) Initial Cost Costs Capitalized Subsequent to Acquisition (2) Gross Amount Carried at End of Period (3) Property Name City, State Encumbrances (1) Land and Improvements Buildings and Improvements Land and Improvements Buildings and Improvements Total Accumulated Depreciation Date Constructed/ Renovated Date Acquired Fairacres Shopping Center Oshkosh, WI — 3,543 5,189 1,315 4,057 5,990 10,047 3,126 1992/2016 1/21/2014 Savoy Plaza Savoy, IL — 4,304 10,895 946 4,789 11,356 16,145 5,742 1999/2015 1/31/2014 The Shops of Uptown Park Ridge, IL — 7,744 16,884 2,135 8,182 18,581 26,763 6,919 2006 2/25/2014 Chapel Hill North Center Chapel Hill, NC 5,746 4,776 10,189 1,897 5,173 11,689 16,862 5,537 1998 2/28/2014 Coppell Market Center Coppell, TX — 4,870 12,236 511 5,142 12,475 17,617 5,301 2008 3/5/2014 Winchester Gateway Winchester, VA — 9,342 23,468 2,436 9,658 25,588 35,246 10,856 2006 3/5/2014 Stonewall Plaza Winchester, VA — 7,929 16,642 1,164 8,137 17,598 25,735 7,675 2007 3/5/2014 Town Fair Center Louisville, KY — 8,108 14,411 5,576 8,957 19,138 28,095 8,703 1988/2019 3/12/2014 Villages at Eagles Landing Stockbridge, GA — 2,824 5,515 1,240 3,365 6,214 9,579 3,368 1995 3/13/2014 ChampionsGate Village Davenport, FL — 1,814 6,060 1,107 2,075 6,906 8,981 2,995 2001 3/14/2014 Towne Centre at Wesley Chapel Wesley Chapel, FL — 2,466 5,553 1,012 2,776 6,255 9,031 2,623 2000 3/14/2014 Statler Square Staunton, VA — 4,108 9,072 1,288 4,695 9,773 14,468 4,566 1989/1997 3/21/2014 Burbank Plaza Burbank, IL — 2,972 4,546 3,965 3,705 7,778 11,483 3,644 1972/2018 3/25/2014 Hamilton Village Chattanooga, TN — 12,682 19,103 5,816 13,293 24,308 37,601 10,968 1989/2021 4/3/2014 Waynesboro Plaza Waynesboro, VA — 5,597 8,334 332 5,814 8,449 14,263 4,243 2005 4/30/2014 Southwest Marketplace Las Vegas, NV — 16,018 11,270 3,251 16,337 14,202 30,539 6,660 2008/2017 5/5/2014 Hampton Village Taylors, SC — 5,456 7,254 4,432 6,081 11,061 17,142 5,521 1959/2019 5/21/2014 Central Station Louisville, KY 12,095 6,143 6,932 3,077 6,723 9,429 16,152 4,282 2005/2018 5/23/2014 Kirkwood Market Place Houston, TX — 5,786 9,697 1,760 6,054 11,189 17,243 4,569 1979/2012 5/23/2014 Fairview Plaza New Cumberland, PA — 2,786 8,500 638 3,174 8,750 11,924 3,380 1992/1999 5/27/2014 Broadway Promenade Sarasota, FL — 3,831 6,795 1,092 4,239 7,479 11,718 2,853 2007 5/28/2014 Townfair Center Indiana, PA — 7,007 13,233 1,432 7,357 14,315 21,672 7,026 1995/2016 5/29/2014 Heath Brook Commons Ocala, FL 6,930 3,470 8,352 1,140 3,759 9,203 12,962 3,836 2002 5/30/2014 The Orchards Yakima, WA — 5,425 8,743 647 5,819 8,996 14,815 4,111 2002 6/3/2014 Shaw's Plaza Hanover Hanover, MA — 2,826 5,314 10 2,826 5,324 8,150 2,200 1994/2000 6/23/2014 Shaw's Plaza Easton Easton, MA — 5,520 7,173 967 5,897 7,763 13,660 3,481 1984/2004 6/23/2014 Lynnwood Place Jackson, TN — 3,341 4,826 1,150 3,814 5,503 9,317 2,751 1986/2013 7/28/2014 Thompson Valley Towne Center Loveland, CO — 5,758 17,387 2,870 6,432 19,583 26,015 7,826 1999 8/1/2014 Lumina Commons Wilmington, NC 5,812 2,008 11,249 1,647 2,131 12,773 14,904 4,561 1974/2007 8/4/2014 Driftwood Village Ontario, CA — 6,811 12,993 1,794 7,617 13,981 21,598 5,632 1985 8/7/2014 French Golden Gate Bartow, FL — 2,599 12,877 2,479 2,923 15,032 17,955 5,209 1960/2011 8/28/2014 Orchard Square Washington Township, MI — 1,361 11,550 895 1,638 12,168 13,806 4,748 1999/2011 9/8/2014 Trader Joe's Center Dublin, OH 6,745 2,338 7,922 3,558 2,941 10,877 13,818 4,214 1986 9/11/2014 Palmetto Pavilion North Charleston, SC — 2,509 8,526 1,421 3,583 8,873 12,456 3,546 2003 9/11/2014 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-35 SCHEDULE III—REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION December 31, 2023 (in thousands) Initial Cost Costs Capitalized Subsequent to Acquisition (2) Gross Amount Carried at End of Period (3) Property Name City, State Encumbrances (1) Land and Improvements Buildings and Improvements Land and Improvements Buildings and Improvements Total Accumulated Depreciation Date Constructed/ Renovated Date Acquired Five Town Plaza Springfield, MA — 8,912 19,635 7,580 10,497 25,630 36,127 12,429 1970/2019 9/24/2014 Fairfield Crossing Beavercreek, OH — 3,572 10,026 283 3,722 10,159 13,881 4,290 1994 10/24/2014 Beavercreek Towne Center Beavercreek, OH — 14,055 30,799 4,853 15,335 34,372 49,707 15,283 1994/2019 10/24/2014 Grayson Village Loganville, GA — 3,952 5,620 2,482 4,290 7,764 12,054 4,129 2002/2019 10/24/2014 The Fresh Market Commons Pawleys Island, SC — 2,442 4,941 228 2,535 5,076 7,611 2,268 2011/2014 10/28/2014 Claremont Village Everett, WA — 5,635 10,544 1,776 6,344 11,611 17,955 4,815 1994/2012 11/6/2014 Cherry Hill Marketplace Westland, MI — 4,641 10,137 3,068 5,321 12,525 17,846 6,122 1992/2017 12/17/2014 Nor'Wood Shopping Center Colorado Springs, CO — 5,358 6,684 950 5,607 7,385 12,992 3,857 2003/2007 1/8/2015 Sunburst Plaza Glendale, AZ — 3,435 6,041 3,095 4,380 8,191 12,571 3,701 1970/2022 2/11/2015 Rivermont Station Johns Creek, GA — 6,876 8,916 5,098 7,270 13,620 20,890 6,446 1996/2022 2/27/2015 Breakfast Point Marketplace Panama City Beach, FL — 5,578 12,052 902 6,112 12,420 18,532 5,369 2009/2010 3/13/2015 Falcon Valley Lenexa, KS — 3,131 6,873 418 3,495 6,927 10,422 3,287 2008/2009 3/13/2015 Kohl's Onalaska Onalaska, WI — 2,670 5,648 300 2,670 5,948 8,618 2,760 1992/2021 3/13/2015 Coronado Center Santa Fe, NM 11,560 4,396 16,460 5,230 4,885 21,201 26,086 7,254 1964/2019 5/1/2015 West Creek Plaza Coconut Creek, FL — 3,459 6,131 807 3,654 6,743 10,397 2,469 2006/2013 7/10/2015 Northwoods Crossing Taunton, MA — 10,092 14,437 394 10,194 14,729 24,923 8,735 2003/2022 5/24/2016 Murphy Marketplace Murphy, TX — 28,651 33,122 5,083 29,449 37,407 66,856 12,284 2008/2021 6/24/2016 Harbour Village Jacksonville, FL — 5,630 16,727 4,117 6,146 20,328 26,474 6,548 2006/2021 9/22/2016 Oak Mill Plaza Niles, IL — 6,843 13,692 6,843 7,617 19,761 27,378 7,344 1977/2023 10/3/2016 Southern Palms Tempe, AZ 21,760 10,025 24,346 4,812 10,495 28,688 39,183 11,201 1982/2018 10/26/2016 Golden Eagle Village Clermont, FL 6,678 3,746 7,735 911 3,988 8,404 12,392 3,059 2011 10/27/2016 Atwater Marketplace (4) Atwater, CA — 6,116 7,597 ( 11,465 ) 417 1,831 2,248 132 2023 2/10/2017 Rocky Ridge Town Center Roseville, CA 19,098 5,449 29,207 1,105 5,686 30,075 35,761 7,991 1996/2015 4/18/2017 Greentree Centre Racine, WI — 2,955 8,718 510 3,076 9,107 12,183 2,998 1989/2018 5/5/2017 Sierra Del Oro Towne Centre Corona, CA — 9,011 17,989 2,365 9,481 19,884 29,365 6,165 1991/2017 6/20/2017 Birdneck Shopping Center Virginia Beach, VA — 1,900 3,253 1,023 2,091 4,085 6,176 1,878 1987/2017 10/4/2017 Crossroads Plaza Asheboro, NC — 1,722 2,720 815 2,216 3,041 5,257 1,590 1984/2016 10/4/2017 Dunlop Village Colonial Heights, VA — 2,420 4,892 2,386 2,735 6,963 9,698 2,273 1987/2012 10/4/2017 Edgecombe Square Tarboro, NC — 1,412 2,258 515 1,493 2,692 4,185 1,811 1990/2013 10/4/2017 Forest Park Square Cincinnati, OH — 4,007 5,877 1,288 4,501 6,671 11,172 3,066 1988/2018 10/4/2017 Goshen Station Goshen, OH 3,605 1,555 4,621 181 1,800 4,557 6,357 2,426 1973/2003 10/4/2017 The Village Shopping Center Mooresville, IN — 2,059 8,325 944 2,323 9,005 11,328 3,099 1965/2019 10/4/2017 Hickory Plaza Nashville, TN — 2,927 5,099 2,455 3,008 7,473 10,481 2,208 1974/2020 10/4/2017 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-36 SCHEDULE III—REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION December 31, 2023 (in thousands) Initial Cost Costs Capitalized Subsequent to Acquisition (2) Gross Amount Carried at End of Period (3) Property Name City, State Encumbrances (1) Land and Improvements Buildings and Improvements Land and Improvements Buildings and Improvements Total Accumulated Depreciation Date Constructed/ Renovated Date Acquired Highland Fair Gresham, OR — 3,263 7,979 693 3,411 8,524 11,935 2,563 1984/2013 10/4/2017 Mayfair Village Hurst, TX 16,398 15,343 16,522 4,103 15,874 20,094 35,968 7,081 1981/2022 10/4/2017 LaPlata Plaza La Plata, MD 17,860 8,434 22,855 2,397 8,749 24,937 33,686 6,975 2003/2019 10/4/2017 Lafayette Square Lafayette, IN — 5,387 5,636 1,162 5,422 6,763 12,185 4,896 1963/2022 10/4/2017 Commerce Square Brownwood, TX — 6,027 8,341 745 5,844 9,269 15,113 1,926 1969/2022 10/4/2017 Monfort Heights Cincinnati, OH 4,216 2,357 3,545 9 2,357 3,554 5,911 1,481 1987/2015 10/4/2017 Mountain Park Plaza Roswell, GA — 6,118 6,652 945 6,230 7,485 13,715 2,458 1988/2003 10/4/2017 Nordan Shopping Center Danville, VA — 1,911 6,751 975 2,063 7,574 9,637 2,782 1961/2015 10/4/2017 Northside Plaza Clinton, NC — 1,406 5,471 789 1,541 6,125 7,666 2,386 1982/2015 10/4/2017 Park Place Plaza Port Orange, FL — 2,347 8,458 ( 2,201 ) 1,956 6,648 8,604 1,699 1984/2012 10/4/2017 Parsons Village Seffner, FL — 3,465 10,864 ( 3,964 ) 2,481 7,884 10,365 2,141 1983/1994 10/4/2017 Hillside - West Hillside, UT — 691 1,739 3,870 4,561 1,739 6,300 832 2006 10/4/2017 South Oaks Shopping Center Live Oak, FL — 1,742 5,119 1,864 1,943 6,782 8,725 3,067 1976/2022 10/4/2017 Summerville Galleria Summerville, SC — 4,104 8,668 1,473 4,651 9,594 14,245 3,302 1989/2014 10/4/2017 The Oaks Hudson, FL — 3,876 6,668 11,966 4,726 17,784 22,510 3,106 1981/2022 10/4/2017 Riverplace Centre Noblesville, IN 5,175 3,890 4,044 1,025 4,008 4,951 8,959 2,609 1992/2020 10/4/2017 Towne Crossing Shopping Center Mesquite, TX — 5,358 15,584 2,595 5,507 18,030 23,537 5,717 1984/2016 10/4/2017 Village at Waterford Midlothian, VA — 2,702 5,194 992 3,019 5,869 8,888 2,119 1991/2016 10/4/2017 Windsor Center Dallas, NC — 2,488 5,186 639 2,643 5,670 8,313 2,566 1974/2015 10/4/2017 12 West Marketplace Litchfield, MN — 835 3,538 186 1,007 3,552 4,559 1,931 1989/2010 10/4/2017 Willowbrook Commons Nashville, TN — 5,384 6,002 824 5,767 6,443 12,210 2,450 2005 10/4/2017 Edgewood Towne Center Edgewood, PA — 10,029 22,535 3,359 10,852 25,071 35,923 9,683 1990/2021 10/4/2017 Everson Pointe Snellville, GA 7,734 4,222 8,421 537 4,377 8,803 13,180 3,058 1999 10/4/2017 Village Square of Delafield Delafield, WI 8,257 6,206 6,869 498 6,526 7,047 13,573 2,941 2007/2017 10/4/2017 Shoppes of Lake Village Leesburg, FL — 7,193 3,795 7,108 7,581 10,515 18,096 3,682 1987/2021 2/26/2018 Sierra Vista Plaza Murrieta, CA — 9,824 11,669 2,572 10,472 13,593 24,065 3,665 1991/2021 9/28/2018 Wheat Ridge Marketplace Wheat Ridge, CO — 7,926 8,393 1,410 8,490 9,239 17,729 3,024 1996/2019 10/3/2018 Atlantic Plaza North Reading, MA — 12,341 12,699 2,276 12,667 14,649 27,316 4,674 1959/2014 11/9/2018 Staunton Plaza Staunton, VA — 4,818 14,380 102 4,883 14,417 19,300 3,245 2006 11/16/2018 Bethany Village Alpharetta, GA — 6,138 8,355 837 6,246 9,084 15,330 2,430 2001 11/16/2018 Northpark Village Lubbock, TX — 3,087 6,047 388 3,242 6,280 9,522 1,540 1990 11/16/2018 Kings Crossing Sun City Center, FL 10,467 5,654 11,225 571 5,887 11,563 17,450 2,889 2000/2018 11/16/2018 Lake Washington Crossing Melbourne, FL — 4,222 13,553 3,192 4,369 16,598 20,967 3,499 1987/2023 11/16/2018 Kipling Marketplace Littleton, CO — 4,020 10,405 622 4,201 10,846 15,047 3,155 1983/2009 11/16/2018 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-37 SCHEDULE III—REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION December 31, 2023 (in thousands) Initial Cost Costs Capitalized Subsequent to Acquisition (2) Gross Amount Carried at End of Period (3) Property Name City, State Encumbrances (1) Land and Improvements Buildings and Improvements Land and Improvements Buildings and Improvements Total Accumulated Depreciation Date Constructed/ Renovated Date Acquired MetroWest Village Orlando, FL — 6,841 15,333 1,539 7,164 16,549 23,713 4,087 1990 11/16/2018 Spring Cypress Village Houston, TX — 9,579 14,567 1,939 9,792 16,293 26,085 3,972 1982/2012 11/16/2018 Commonwealth Square Folsom, CA — 9,955 12,586 1,432 10,129 13,844 23,973 4,862 1987 11/16/2018 Point Loomis Milwaukee, WI — 4,171 4,901 2,183 4,171 7,084 11,255 2,812 1965/2022 11/16/2018 Shasta Crossroads Redding, CA — 9,598 18,643 ( 2,455 ) 8,462 17,324 25,786 3,498 1989/2016 11/16/2018 Milan Plaza Milan, MI — 925 1,974 329 1,064 2,164 3,228 1,396 1960/2018 11/16/2018 Hilander Village Roscoe, IL — 2,571 7,461 2,329 2,667 9,694 12,361 3,284 1994/2022 11/16/2018 Laguna 99 Plaza Elk Grove, CA — 5,422 16,952 247 5,444 17,177 22,621 4,000 1992/2015 11/16/2018 Southfield Center St. Louis, MO — 5,612 13,643 1,929 6,535 14,649 21,184 4,074 1987/2021 11/16/2018 Waterford Park Plaza Plymouth, MN — 4,935 19,543 417 5,149 19,746 24,895 5,032 1989/2023 11/16/2018 Colonial Promenade Winter Haven, FL — 12,403 22,097 893 12,464 22,929 35,393 6,858 1986/2008 11/16/2018 Willimantic Plaza Willimantic, CT — 3,596 8,859 388 3,792 9,051 12,843 3,432 1968/2024 11/16/2018 Quivira Crossings Overland Park, KS — 7,512 10,729 1,684 8,251 11,674 19,925 3,870 1996/2015 11/16/2018 Spivey Junction Stockbridge, GA — 4,083 10,414 238 4,204 10,531 14,735 2,768 1998 11/16/2018 Plaza Farmington Farmington, NM — 6,322 9,619 485 6,711 9,715 16,426 2,874 2004 11/16/2018 Harvest Plaza Akron, OH — 2,693 6,083 282 2,865 6,193 9,058 1,803 1974/2015 11/16/2018 Oakhurst Plaza Seminole, FL — 2,782 4,506 540 2,974 4,854 7,828 1,569 1974/2001 11/16/2018 Old Alabama Square Johns Creek, GA — 10,782 17,359 1,446 10,885 18,702 29,587 4,503 2000 11/16/2018 North Point Landing Modesto, CA 20,061 8,040 28,422 1,186 8,230 29,418 37,648 6,453 1964/2008 11/16/2018 Glenwood Crossing Cincinnati, OH — 4,581 3,922 178 4,607 4,074 8,681 1,803 1999/2015 11/16/2018 Rosewick Crossing La Plata, MD — 8,252 23,507 1,006 8,360 24,405 32,765 5,742 2008 11/16/2018 Vineyard Center Templeton, CA 4,943 1,753 6,406 202 1,796 6,565 8,361 1,473 2007 11/16/2018 Ocean Breeze Plaza Ocean Breeze, FL — 6,416 9,986 951 6,513 10,840 17,353 2,941 1993/2010 11/16/2018 Central Valley Marketplace Ceres, CA 15,526 6,163 17,535 83 6,180 17,601 23,781 4,019 2005 11/16/2018 51st & Olive Square Glendale, AZ — 2,236 9,038 480 2,593 9,161 11,754 2,448 1975/2007 11/16/2018 West Acres Shopping Center Fresno, CA — 4,866 5,627 635 5,091 6,037 11,128 2,556 1990/2015 11/16/2018 Meadows on the Parkway Boulder, CO — 23,953 32,744 1,800 24,340 34,157 58,497 7,840 1989 11/16/2018 Wyandotte Plaza Kansas City, KS — 5,204 17,566 774 5,343 18,201 23,544 4,394 1961/2015 11/16/2018 Broadlands Marketplace Broomfield, CO — 7,434 9,459 1,125 8,002 10,016 18,018 2,921 2002 11/16/2018 Village Center Racine, WI — 6,051 26,473 1,211 6,253 27,482 33,735 7,205 2002/2021 11/16/2018 Shoregate Town Center Willowick, OH — 7,152 16,282 6,979 7,386 23,027 30,413 7,508 1958/2022 11/16/2018 Plano Market Street Plano, TX — 14,837 33,178 1,973 15,166 34,822 49,988 7,640 2009 11/16/2018 Island Walk Shopping Center Fernandina Beach, FL — 8,190 19,992 1,301 8,297 21,186 29,483 5,758 1987/2012 11/16/2018 Normandale Village Bloomington, MN 10,777 8,390 11,407 2,113 8,977 12,933 21,910 4,996 1973/2017 11/16/2018 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-38 SCHEDULE III—REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION December 31, 2023 (in thousands) Initial Cost Costs Capitalized Subsequent to Acquisition (2) Gross Amount Carried at End of Period (3) Property Name City, State Encumbrances (1) Land and Improvements Buildings and Improvements Land and Improvements Buildings and Improvements Total Accumulated Depreciation Date Constructed/ Renovated Date Acquired North Pointe Plaza North Charleston, SC — 10,232 26,348 1,393 10,817 27,156 37,973 8,129 1989/2022 11/16/2018 Palmer Town Center Easton, PA — 7,331 23,525 1,768 7,390 25,234 32,624 6,113 2005 11/16/2018 Alico Commons Fort Myers, FL — 4,670 16,557 638 4,965 16,900 21,865 4,008 2009/2020 11/16/2018 Windover Square Melbourne, FL 11,048 4,115 13,309 472 4,225 13,671 17,896 3,207 1984/2010 11/16/2018 Rockledge Square Rockledge, FL — 3,477 4,469 4,208 3,761 8,393 12,154 1,651 1985/2022 11/16/2018 Fairfield Commons Lakewood, CO — 8,802 29,946 2,085 8,924 31,909 40,833 6,878 1985/2014 11/16/2018 Cocoa Commons Cocoa, FL — 4,838 8,247 1,454 4,915 9,624 14,539 3,177 1986/2000 11/16/2018 Hamilton Mill Village Dacula, GA — 7,059 9,734 550 7,193 10,150 17,343 2,918 1996/2016 11/16/2018 Sheffield Crossing Sheffield Village, OH — 8,841 10,232 360 9,051 10,382 19,433 3,469 1989/2013 11/16/2018 The Shoppes at Windmill Place Batavia, IL — 8,186 16,005 885 8,344 16,732 25,076 4,317 1991/1997 11/16/2018 Stone Gate Plaza Crowley, TX — 5,261 7,007 1,260 5,423 8,105 13,528 2,231 2003 11/16/2018 Everybody's Plaza Cheshire, CT — 2,520 10,096 683 2,568 10,731 13,299 2,377 1960/2014 11/16/2018 Lakewood City Center Lakewood, OH — 1,593 10,308 406 1,685 10,622 12,307 2,331 1991/2011 11/16/2018 Carriagetown Marketplace Amesbury, MA — 7,084 15,492 1,107 7,171 16,512 23,683 4,499 2000 11/16/2018 Crossroads of Shakopee Shakopee, MN — 8,869 20,320 1,212 9,062 21,339 30,401 6,252 1998 11/16/2018 Broadway Pavilion Santa Maria, CA — 8,512 20,427 788 8,591 21,136 29,727 5,311 1987 11/16/2018 Sanibel Beach Place Fort Myers, FL — 3,918 7,043 2,441 4,434 8,968 13,402 2,195 2003/2022 11/16/2018 Shoppes at Glen Lakes Weeki Wachee, FL — 4,662 7,473 618 4,780 7,973 12,753 2,230 2008 11/16/2018 Bartow Marketplace Cartersville, GA 19,305 11,944 24,610 841 12,080 25,315 37,395 8,851 1995 11/16/2018 Bloomingdale Hills Riverview, FL — 4,384 5,179 429 4,479 5,513 9,992 2,212 2002/2012 11/16/2018 University Plaza Amherst, NY — 6,402 9,800 1,056 6,452 10,806 17,258 4,128 1980/2020 11/16/2018 McKinney Market Street McKinney, TX 244 10,941 16,061 1,714 11,085 17,631 28,716 5,044 2003/2017 11/16/2018 Montville Commons Montville, CT — 12,417 11,091 609 12,549 11,568 24,117 4,183 2007 11/16/2018 Shaw's Plaza Raynham Raynham, MA — 8,378 26,829 1,103 8,428 27,882 36,310 7,391 1965/2022 11/16/2018 Suntree Square Southlake, TX — 6,335 15,642 671 6,424 16,224 22,648 3,667 2000 11/16/2018 Green Valley Plaza Henderson, NV — 7,284 16,879 605 7,358 17,410 24,768 4,292 1978/1982 11/16/2018 Crosscreek Village St. Cloud, FL — 3,821 9,604 598 3,984 10,039 14,023 2,731 2008 11/16/2018 Market Walk Savannah, GA — 20,678 31,836 3,827 20,919 35,422 56,341 8,675 2014/2022 11/16/2018 Livonia Plaza Livonia, MI — 4,118 17,037 870 4,288 17,737 22,025 4,570 1988/2014 11/16/2018 Franklin Centre Franklin, WI — 6,353 5,482 615 6,480 5,970 12,450 3,517 1994/2018 11/16/2018 Plaza 23 Pompton Plains, NJ — 11,412 40,145 5,648 11,907 45,298 57,205 9,386 1963/2021 11/16/2018 Shorewood Crossing Shorewood, IL — 9,468 20,993 2,882 9,651 23,692 33,343 6,388 2001/2020 11/16/2018 Herndon Place Fresno, CA — 7,148 10,071 ( 611 ) 6,881 9,727 16,608 2,729 2005 11/16/2018 Windmill Marketplace Clovis, CA — 2,775 7,299 ( 170 ) 2,827 7,077 9,904 1,345 2001 11/16/2018 Riverlakes Village Bakersfield, CA — 8,567 15,242 2,897 8,950 17,756 26,706 3,964 1997/2022 11/16/2018 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-39 SCHEDULE III—REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION December 31, 2023 (in thousands) Initial Cost Costs Capitalized Subsequent to Acquisition (2) Gross Amount Carried at End of Period (3) Property Name City, State Encumbrances (1) Land and Improvements Buildings and Improvements Land and Improvements Buildings and Improvements Total Accumulated Depreciation Date Constructed/ Renovated Date Acquired Evans Towne Centre Evans, GA — 4,018 7,013 389 4,145 7,275 11,420 2,134 1995/2017 11/16/2018 Mansfield Market Center Mansfield, TX — 4,672 13,154 498 4,851 13,473 18,324 3,074 2015 11/16/2018 Ormond Beach Mall Ormond Beach, FL — 4,954 7,006 1,054 5,088 7,926 13,014 2,555 1967/2018 11/16/2018 Heritage Plaza Carol Stream, IL — 6,205 16,507 939 6,320 17,331 23,651 4,320 1988/2018 11/16/2018 Mountain Crossing Dacula, GA 2,794 6,602 6,835 37 6,303 7,171 13,474 2,081 1997 11/16/2018 Seville Commons Arlington, TX — 4,689 12,602 1,025 4,859 13,457 18,316 3,327 1987/2022 11/16/2018 Cinco Ranch at Market Center Katy, TX — 5,553 14,063 645 5,711 14,550 20,261 3,299 2007/2023 12/12/2018 Naperville Crossings Naperville, IL 25,380 15,765 30,881 4,474 16,612 34,508 51,120 8,545 2007/2021 4/26/2019 Orange Grove Shopping Center North Fort Myers, FL — 2,637 7,340 571 3,124 7,424 10,548 1,798 1999 10/31/2019 Sudbury Crossing Sudbury, MA — 6,483 12,933 5,931 6,516 18,831 25,347 2,752 1984/2021 10/31/2019 Ashburn Farm Market Center Ashburn, VA — 14,035 16,648 555 14,090 17,148 31,238 3,394 2000 10/31/2019 Alameda Crossing Avondale, AZ — 7,785 19,875 4,903 8,074 24,489 32,563 6,155 2005/2021 11/16/2019 Del Paso Marketplace Sacramento, CA — 5,722 12,242 1,345 6,102 13,207 19,309 2,562 2006/2016 12/12/2019 Hickory Flat Commons Canton, GA — 6,976 11,786 1,030 7,389 12,403 19,792 2,677 2008/2020 8/17/2020 Roxborough Marketplace Littleton, CO — 4,105 12,668 2,193 4,753 14,213 18,966 2,270 2005/2021 10/5/2020 Cinco Ranch Station II Katy, TX — 1,045 — 2,742 1,051 2,736 3,787 109 2023 1/26/2021 West Village Center Chanhassen, MN — 10,860 11,281 1,552 11,268 12,425 23,693 2,071 1994/2021 2/4/2021 Hickory Creek Plaza Denton, TX — 5,370 2,710 324 5,542 2,862 8,404 561 2007 2/25/2021 Foxridge Plaza Centennial, CO — 3,740 11,636 1,664 4,465 12,575 17,040 1,381 1983/2022 8/20/2021 Valrico Commons Valrico, FL — 7,522 26,480 896 8,113 26,785 34,898 2,560 1986/2021 8/25/2021 Market Place at Pabst Farms Oconomowoc, WI — 6,204 17,199 421 6,519 17,305 23,824 1,972 2005/2020 10/13/2021 Arapahoe Marketplace Greenwood Village, CO — 13,779 49,330 1,756 14,870 49,995 64,865 4,428 1977/2022 10/19/2021 Loganville Town Center Loganville, GA — 5,309 7,920 2,170 5,447 9,952 15,399 2,447 1997/2023 11/5/2021 Town & Country Village Sacramento, CA — 21,894 35,793 2,106 22,199 37,594 59,793 3,468 1950/2022 11/12/2021 Sprouts Plaza Las Vegas, NV — 5,104 22,622 1,396 5,472 23,650 29,122 1,951 1995/2022 12/3/2021 Rainbow Plaza Las Vegas, NV — 7,158 30,171 1,209 7,897 30,641 38,538 2,574 1989/2022 12/3/2021 Cascades Overlook Sterling, VA — 16,241 41,449 1,930 16,442 43,178 59,620 2,838 2016 1/14/2022 Oak Meadows Marketplace Georgetown, TX — 4,847 15,848 440 5,047 16,088 21,135 1,038 2018 2/1/2022 Shoppes at Avalon Spring Hill, FL — 9,184 7,740 1,061 9,805 8,180 17,985 810 2009/2022 2/14/2022 Centennial Lakes Plaza Edina, MN — 13,582 51,052 1,860 13,943 52,551 66,494 2,934 1989/2022 5/13/2022 Crossroads Towne Center North Las Vegas, NV — 25,226 27,638 723 25,665 27,922 53,587 3,130 2007/2021 8/15/2022 Chinoe Center Lexington, KY — 3,841 14,001 957 4,111 14,688 18,799 1,026 1984/2023 11/21/2022 PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-40 SCHEDULE III—REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION December 31, 2023 (in thousands) Initial Cost Costs Capitalized Subsequent to Acquisition (2) Gross Amount Carried at End of Period (3) Property Name City, State Encumbrances (1) Land and Improvements Buildings and Improvements Land and Improvements Buildings and Improvements Total Accumulated Depreciation Date Constructed/ Renovated Date Acquired Sunridge Plaza Rancho Cordova, CA — 12,004 21,375 365 12,261 21,483 33,744 1,080 2017 12/20/2022 Providence Commons Mt. Juliet, TN — 7,425 18,665 979 7,652 19,417 27,069 822 2009 1/19/2023 Village Shoppes at Windermere Suwanee, GA 9,754 5,747 12,698 355 5,948 12,852 18,800 497 2008 3/16/2023 Town Center at Jensen Beach Jensen Beach, FL — 6,042 10,731 960 6,372 11,361 17,733 636 2000 3/27/2023 Shops at Sunset Lakes Miramar, FL — 5,872 7,775 284 6,056 7,875 13,931 467 1999 3/27/2023 Lake Pointe Market Rowlett, TX — 3,490 9,410 424 3,764 9,560 13,324 180 2002 8/16/2023 Contra Loma Station OP L.P. Antioch, CA — 224 — 63 224 63 287 21 - 8/29/2023 Mansell Village Roswell, GA — 4,470 11,624 — 4,470 11,624 16,094 138 2003/2013 10/30/2023 Riverpark Shopping Center Sugar Land, TX — 24,270 49,449 5 24,270 49,454 73,724 442 2003 11/13/2023 Apache Shoppes Rochester, MN — 1,807 3,709 — 1,807 3,709 5,516 37 2005 12/4/2023 Maple View Grayslake, IL — 5,256 9,767 — 5,256 9,767 15,023 55 1999 12/4/2023 Maple View Grayslake, IL — 1,621 3,307 — 1,621 3,307 4,928 14 1999 12/4/2023 Quail Pointe Fair Oaks, CA — 7,492 33,594 — 7,492 33,594 41,086 103 1987 12/5/2023 Glenbrook Marketplace Glenview, IL — 3,152 8,807 — 3,152 8,807 11,959 34 1992/2014 12/11/2023 Northlake Station LLC (5) Cincinnati, OH — 2,327 11,806 1,663 2,763 13,033 15,796 3,264 1985 10/6/2006 Corporate Adjustments (6) — 6 2,734 ( 5,301 ) ( 3,580 ) 1,019 ( 2,561 ) 1,143 Totals $ 490,677 $ 1,685,276 $ 3,458,965 $ 442,430 $ 1,768,487 $ 3,818,184 $ 5,586,671 $ 1,186,630 (1) Encumbrances do not include our finance leases. (2) Reductions to costs capitalized subsequent to acquisition are generally attributable to parcels/outparcels sold, impairments, and assets held-for-sale. (3) The aggregate basis of properties for federal income tax purposes is approximately $ 5.5 billion at December 31, 2023. (4) The main shopping center at this location was sold and we currently only own an outparcel. (5) Amounts consist of corporate building and land. (6) Amounts consist of elimination of intercompany construction management fees charged by the property manager to the real estate assets. PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-41 Reconciliation of real estate assets at cost: 2023 2022 Balance at January 1 $ 5,246,279 $ 4,942,426 Additions during the year: Real estate acquisitions 260,856 268,126 Net additions to/improvements of real estate 94,446 103,656 Deductions during the year: Real estate dispositions ( 14,910 ) ( 65,882 ) Impairment of real estate — ( 2,047 ) Balance at December 31 $ 5,586,671 $ 5,246,279 Reconciliation of accumulated depreciation: 2023 2022 Balance at January 1 $ 1,001,863 $ 834,123 Additions during the year: Depreciation expense 188,913 182,119 Deductions during the year: Accumulated depreciation of real estate dispositions ( 4,146 ) ( 12,644 ) Impairment of real estate — ( 1,735 ) Balance at December 31 $ 1,186,630 $ 1,001,863 * * * * * PHILLIPS EDISON & COMPANY DECEMBER 31, 2023 FORM 10-K F-42 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized this 12th day of February 2024. PHILLIPS EDISON & COMPANY, INC. By: /s/ JEFFREY S. EDISON Jeffrey S. Edison Chairman of the Board and Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /S/ JEFFREY S. EDISON Chairman of the Board and Chief Executive Officer (Principal Executive Officer) February 12, 2024 Jeffrey S. Edison /S/ JOHN P. CAULFIELD Executive Vice President, Chief Financial Officer, and Treasurer (Principal Financial Officer) February 12, 2024 John P. Caulfield /S/ JENNIFER L. ROBISON Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) February 12, 2024 Jennifer L. Robison /S/ LESLIE T. CHAO Director February 12, 2024 Leslie T. Chao /S/ ELIZABETH FISCHER Director February 12, 2024 Elizabeth Fischer /S/ STEPHEN R. QUAZZO Director February 12, 2024 Stephen R. Quazzo /S/ JANE SILFEN Director February 12, 2024 Jane Silfen /S/ JOHN A. STRONG Director February 12, 2024 John A. Strong /S/ ANTHONY TERRY Director February 12, 2024 Anthony Terry /S/ PARILEE EDISON WANG Director February 12, 2024 Parilee Edison Wang /S/ GREGORY S. WOOD Director February 12, 2024 Gregory S. Wood