Item 2. Properties
ITEM 2. PROPERTIES
REAL ESTATE INVESTMENTS —The following table details information for our wholly-owned properties and those owned through our unconsolidated joint ventures as of December 31, 2024, which is the basis for determining the prorated information included in the subsequent tables (dollars and square feet in thousands):
Ownership Percentage Number of Properties ABR GLA
Wholly-owned properties 100% 294 $ 509,998 33,300
GRP I 14% 20 32,723 2,213
NRV 20% 1 2,796 121
NGCF 31% 1 1,042 49
The following table presents information regarding the geographic location of our properties, including wholly-owned and the prorated portion of those owned through our unconsolidated joint ventures, by ABR as of December 31, 2024. For additional portfolio information, refer to “Schedule III - Real Estate Assets and Accumulated Depreciation” (dollars and square feet in thousands):
State ABR (1)
% ABR ABR/Leased Square Foot GLA (2)
% GLA % Leased Number of Properties
Florida $ 62,739 12.2 % $ 15.48 4,162 12.4 % 97.4 % 53
California 54,764 10.6 % 22.17 2,504 7.4 % 98.6 % 26
Texas 52,203 10.1 % 19.27 2,766 8.2 % 97.9 % 24
Georgia 44,951 8.7 % 14.34 3,183 9.5 % 98.5 % 32
Illinois 30,362 5.9 % 16.69 1,934 5.7 % 94.1 % 17
Ohio 28,824 5.6 % 11.48 2,584 7.7 % 97.1 % 20
Colorado 28,528 5.5 % 19.66 1,480 4.4 % 98.0 % 14
Virginia 22,809 4.4 % 17.25 1,358 4.0 % 97.4 % 13
Minnesota 22,619 4.4 % 16.64 1,392 4.1 % 97.7 % 14
Massachusetts 17,658 3.4 % 15.66 1,148 3.4 % 98.2 % 9
Nevada 14,558 2.8 % 23.68 623 1.9 % 98.6 % 5
Pennsylvania 12,665 2.5 % 12.79 1,000 3.0 % 99.1 % 6
Wisconsin 12,157 2.4 % 11.70 1,057 3.1 % 98.3 % 9
Arizona 11,508 2.2 % 15.56 750 2.2 % 98.5 % 7
South Carolina 10,615 2.1 % 12.29 870 2.6 % 99.3 % 8
Maryland 10,037 1.9 % 21.78 463 1.4 % 99.6 % 4
North Carolina 8,497 1.6 % 13.59 659 2.0 % 94.9 % 10
Connecticut 8,418 1.6 % 16.95 522 1.6 % 95.1 % 5
Tennessee 8,290 1.6 % 10.38 802 2.4 % 99.6 % 5
Indiana 7,419 1.5 % 9.11 832 2.5 % 97.8 % 5
Kentucky 7,087 1.4 % 11.55 616 1.8 % 99.6 % 4
Michigan 6,919 1.3 % 9.92 724 2.2 % 96.4 % 5
New Mexico 6,035 1.2 % 15.27 404 1.2 % 97.9 % 3
Oregon 5,084 1.0 % 16.83 316 0.9 % 95.6 % 4
Kansas 4,844 0.9 % 12.96 374 1.1 % 100.0 % 3
New Jersey 4,352 0.8 % 25.68 169 0.5 % 100.0 % 1
Washington 3,480 0.7 % 20.13 173 0.5 % 100.0 % 2
Missouri 2,902 0.6 % 13.16 246 0.7 % 89.7 % 3
Iowa 2,851 0.6 % 8.19 360 1.1 % 96.8 % 3
New York 1,827 0.4 % 11.80 163 0.5 % 94.7 % 1
Utah 461 0.1 % 31.70 15 — % 100.0 % 1
Total $ 515,463 100.0 % $ 15.69 33,649 100.0 % 97.7 % 316
(1) We calculate ABR as monthly contractual base rent as of December 31, 2024 multiplied by twelve months.
(2) GLA is defined as the total occupied and unoccupied square footage of a building that is available for Neighbors to lease.
PHILLIPS EDISON & COMPANY
DECEMBER 31, 2024 FORM 10-K
23
TOP TEN CITIES —The following table presents the top ten city markets by ABR of our wholly-owned properties as of December 31, 2024 (dollars in thousands):
City ABR (1)
% ABR
Atlanta $ 37,741 7.4 %
Chicago 27,996 5.5 %
Dallas 25,337 5.0 %
Sacramento 22,443 4.4 %
Minneapolis 21,158 4.2 %
Houston 21,109 4.1 %
Denver 20,425 4.0 %
Washington, D.C. 15,062 3.0 %
Las Vegas 14,558 2.9 %
Tampa 14,358 2.8 %
Total $ 220,187 43.3 %
(1) We calculate ABR as monthly contractual base rent as of December 31, 2024 multiplied by twelve months.
LEASE EXPIRATIONS —The following chart shows the aggregate scheduled lease expirations for our over 3,000 Neighbors, excluding our Neighbors who are occupying space on a temporary basis, after December 31, 2024 for each of the next ten years and thereafter for our wholly-owned properties and the prorated portion of those owned through our unconsolidated joint ventures:
Our ability to create rental rate growth generally depends on our leverage during new and renewal lease negotiations with prospective and existing Neighbors, which typically occurs when occupancy at our centers is high or during periods of economic growth and recovery. Conversely, we may experience rental rate decline when occupancy at our centers is low or during periods of economic recession, as the leverage during new and renewal lease negotiations may shift to prospective and existing Neighbors.
PHILLIPS EDISON & COMPANY
DECEMBER 31, 2024 FORM 10-K
24
For our wholly-owned properties and those owned through our unconsolidated joint ventures, during the 2025 fiscal year, we have a total of 643 leases expiring, representing 2.9 million square feet of GLA. For our wholly-owned properties, during the 2025 fiscal year, we have 594 leases expiring, representing 2.8 million square feet of GLA. For our wholly-owned properties, the expiring leases have an ABR of $14.72 per square foot. While we cannot predict what rental rates we will achieve in 2025 as we renew or replace these expiring leases, the comparable rent spread of new leases signed during 2024 was 35.7%, and the comparable rent spread for lease renewals executed in 2024 was 19.4%. Further, during the 2024 fiscal year, our occupancy improved 30 basis points to 97.7%, indicating continued demand for leasing spaces at our centers.
See “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Overview - Leasing Activity” of this filing on Form 10-K for further discussion of leasing activity.
PORTFOLIO TENANCY —We define national Neighbors as those Neighbors that operate in at least three states. Regional Neighbors are defined as those Neighbors that have at least three locations in fewer than three states. The following charts present the composition of our portfolio, including our wholly-owned properties and the prorated portion of those owned through our unconsolidated joint ventures, by Neighbor type as of December 31, 2024:
The following charts present the composition of our portfolio by Neighbor industry as of December 31, 2024:
PHILLIPS EDISON & COMPANY
DECEMBER 31, 2024 FORM 10-K
25
NECESSITY-BASED GOODS AND SERVICES —We define “necessity-based goods and services” as goods and services that are indispensable, necessary, or common for day-to-day living, or that tend to be inelastic (i.e., those for which the demand does not change based on a consumer’s income level). We estimate that approximately 69% of our ABR, including the pro rata portion attributable to properties owned through our unconsolidated joint ventures, is generated from Neighbors providing necessity-based goods and services.
TOP 20 NEIGHBORS —The following table presents our top 20 Neighbors by ABR, including our wholly-owned properties and the prorated portion of those owned through our unconsolidated joint ventures, as of December 31, 2024 (dollars and square feet in thousands):
Neighbor (1)
ABR % of ABR Leased
Square Feet % of Leased Square Feet Number of Locations (2)
Kroger $ 29,112 5.7 % 3,546 10.8 % 64
Publix 26,623 5.2 % 2,520 7.7 % 61
Albertsons 19,734 3.8 % 1,780 5.4 % 32
Ahold Delhaize 17,905 3.5 % 1,249 3.8 % 23
Walmart 8,823 1.7 % 1,770 5.4 % 13
Giant Eagle 7,390 1.4 % 759 2.3 % 10
TJX Companies 7,147 1.4 % 597 1.8 % 20
Sprouts Farmers Market 6,732 1.2 % 421 1.3 % 14
Raley's 4,607 0.9 % 288 0.9 % 5
Dollar Tree 4,552 0.8 % 424 1.3 % 42
Starbucks Corporation 3,528 0.7 % 73 0.2 % 38
Big Y 3,487 0.7 % 167 0.5 % 3
UNFI (SuperValu) 3,476 0.7 % 336 1.0 % 5
Trader Joe's 2,798 0.5 % 122 0.4 % 9
Subway Group 2,785 0.5 % 96 0.3 % 65
Planet Fitness 2,766 0.5 % 214 0.7 % 10
Pet Supplies Plus 2,688 0.5 % 169 0.5 % 22
United Parcel Service 2,585 0.5 % 88 0.3 % 71
H&R Block, Inc. 2,532 0.5 % 98 0.3 % 58
Great Clips, Inc. 2,519 0.5 % 86 0.3 % 75
Total $ 161,789 31.2 % 14,803 45.2 % 640
(1) Neighbors are grouped by parent company and may represent multiple subsidiaries and banners.
(2) Number of locations excludes auxiliary leases with grocery anchors such as fuel stations, pharmacies, and liquor stores. Additionally, if a parent company has multiple subsidiaries or banners in a single shopping center, those subsidiaries are included as one location.