Phillips Edison & Company, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS PHILLIPS EDISON & COMPANY, INC. CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2025 AND DECEMBER 31, 2024 (Condensed and Unaudited) (In thousands, except per share amounts) September 30, 2025 December 31, 2024 ASSETS Investment in real estate: Land and improvements $ 1,952,657 $ 1,867,227 Building and improvements 4,293,614 4,085,713 In-place lease assets 540,571 523,209 Above-market lease assets 77,587 76,359 Total investment in real estate assets 6,864,429 6,552,508 Accumulated depreciation and amortization ( 1,928,005 ) ( 1,771,052 ) Net investment in real estate assets 4,936,424 4,781,456 Investment in unconsolidated joint ventures 36,594 31,724 Total investment in real estate assets, net 4,973,018 4,813,180 Cash and cash equivalents 4,076 4,881 Restricted cash 1,735 3,768 Goodwill 29,066 29,066 Other assets, net 246,209 195,328 Real estate investment and other assets held for sale 8,250 — Total assets $ 5,262,354 $ 5,046,223 LIABILITIES AND EQUITY Liabilities: Debt obligations, net $ 2,385,326 $ 2,109,543 Below-market lease liabilities, net 117,316 116,096 Accounts payable and other liabilities 156,805 163,692 Deferred income 22,722 22,907 Liabilities of real estate investment held for sale 461 — Total liabilities 2,682,630 2,412,238 Commitments and contingencies (see Note 8) — — Equity: Preferred stock, $ 0.01 par value per share, 10,000 shares authorized, zero shares issued and outstanding at September 30, 2025 and December 31, 2024 — — Common stock, $ 0.01 par value per share, 1,000,000 shares authorized, 125,710 and 125,120 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 1,257 1,251 Additional paid-in capital (“APIC”) 3,661,270 3,646,801 Accumulated other comprehensive income (“AOCI”) 980 4,305 Accumulated deficit ( 1,385,714 ) ( 1,332,435 ) Total stockholders’ equity 2,277,793 2,319,922 Noncontrolling interests 301,931 314,063 Total equity 2,579,724 2,633,985 Total liabilities and equity $ 5,262,354 $ 5,046,223 See notes to consolidated financial statements. PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 2 PHILLIPS EDISON & COMPANY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (Condensed and Unaudited) (In thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues: Rental income $ 178,293 $ 161,780 $ 525,943 $ 478,134 Fees and management income 3,274 2,856 9,373 7,943 Other property income 1,102 891 3,417 2,267 Total revenues 182,669 165,527 538,733 488,344 Operating Expenses: Property operating 30,197 27,528 89,455 81,461 Real estate taxes 22,226 19,569 64,584 57,897 General and administrative 12,752 11,114 37,760 34,060 Depreciation and amortization 65,603 68,328 202,080 189,706 Total operating expenses 130,778 126,539 393,879 363,124 Other: Interest expense, net ( 28,544 ) ( 24,998 ) ( 81,935 ) ( 71,954 ) Gain (loss) on disposal of property, net 4,255 ( 19 ) 9,798 ( 34 ) Other expense, net ( 374 ) ( 1,068 ) ( 2,344 ) ( 3,717 ) Net income 27,228 12,903 70,373 49,515 Net income attributable to noncontrolling interests ( 2,543 ) ( 1,301 ) ( 6,595 ) ( 4,972 ) Net income attributable to stockholders $ 24,685 $ 11,602 $ 63,778 $ 44,543 Earnings per share of common stock: Net income per share attributable to stockholders - basic and diluted (see Note 10) $ 0.20 $ 0.09 $ 0.51 $ 0.36 Comprehensive income: Net income $ 27,228 $ 12,903 $ 70,373 $ 49,515 Other comprehensive loss: Change in unrealized value on interest rate swaps ( 1,112 ) ( 10,505 ) ( 3,674 ) ( 9,596 ) Comprehensive income 26,116 2,398 66,699 39,919 Net income attributable to noncontrolling interests ( 2,543 ) ( 1,301 ) ( 6,595 ) ( 4,972 ) Change in unrealized value on interest rate swaps attributable to noncontrolling interests 103 1,059 345 967 Reallocation of comprehensive (loss) income upon conversion of noncontrolling interests — ( 3 ) 4 13 Comprehensive income attributable to stockholders $ 23,676 $ 2,153 $ 60,453 $ 35,927 See notes to consolidated financial statements. PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 3 PHILLIPS EDISON & COMPANY, INC. CONSOLIDATED STATEMENTS OF EQUITY FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (Condensed and Unaudited) (In thousands, except per share amounts) Three Months Ended September 30, 2025 and 2024 Common Stock APIC AOCI Accumulated Deficit Total Stockholders’ Equity Noncontrolling Interests Total Equity Shares Amount Balance at July 1, 2024 122,408 $ 1,224 $ 3,554,309 $ 11,356 $ ( 1,287,271 ) $ 2,279,618 $ 335,782 $ 2,615,400 Change in unrealized value on interest rate swaps — — — ( 9,446 ) — ( 9,446 ) ( 1,059 ) ( 10,505 ) Common distributions declared, $ 0.2975 per share — — — — ( 36,634 ) ( 36,634 ) — ( 36,634 ) Distributions to noncontrolling interests — — — — — — ( 4,265 ) ( 4,265 ) Share-based compensation 51 1 407 — — 408 1,751 2,159 Conversion of noncontrolling interests 156 1 3,691 ( 3 ) — 3,689 ( 3,689 ) — Net income — — — — 11,602 11,602 1,301 12,903 Balance at September 30, 2024 122,615 $ 1,226 $ 3,558,407 $ 1,907 $ ( 1,312,303 ) $ 2,249,237 $ 329,821 $ 2,579,058 Balance at July 1, 2025 125,611 $ 1,256 $ 3,657,722 $ 1,989 $ ( 1,370,828 ) $ 2,290,139 $ 304,083 $ 2,594,222 Change in unrealized value on interest rate swaps — — — ( 1,009 ) — ( 1,009 ) ( 103 ) ( 1,112 ) Common distributions declared, $ 0.3133 per share — — — — ( 39,571 ) ( 39,571 ) — ( 39,571 ) Distributions to noncontrolling interests — — — — — — ( 4,210 ) ( 4,210 ) Share-based compensation — — 1,177 — — 1,177 1,990 3,167 Conversion of noncontrolling interests 99 1 2,371 — — 2,372 ( 2,372 ) — Net income — — — — 24,685 24,685 2,543 27,228 Balance at September 30, 2025 125,710 $ 1,257 $ 3,661,270 $ 980 $ ( 1,385,714 ) $ 2,277,793 $ 301,931 $ 2,579,724 See notes to consolidated financial statements. PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 4 PHILLIPS EDISON & COMPANY, INC. CONSOLIDATED STATEMENTS OF EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (Condensed and Unaudited) (In thousands, except per share amounts) Nine Months Ended September 30, 2025 and 2024 Common Stock APIC AOCI Accumulated Deficit Total Stockholders’ Equity Noncontrolling Interests Total Equity Shares Amount Balance at January 1, 2024 122,024 $ 1,220 $ 3,546,838 $ 10,523 $ ( 1,248,273 ) $ 2,310,308 $ 343,043 $ 2,653,351 Issuance of common stock 46 — — — — — — — Change in unrealized value on interest rate swaps — — — ( 8,629 ) — ( 8,629 ) ( 967 ) ( 9,596 ) Common distributions declared, $ 0.8825 per share — — — — ( 108,573 ) ( 108,573 ) — ( 108,573 ) Distributions to noncontrolling interests — — — — — — ( 12,620 ) ( 12,620 ) Share-based compensation 137 2 1,687 — — 1,689 5,292 6,981 Conversion of noncontrolling interests 408 4 9,882 13 — 9,899 ( 9,899 ) — Net income — — — — 44,543 44,543 4,972 49,515 Balance at September 30, 2024 122,615 $ 1,226 $ 3,558,407 $ 1,907 $ ( 1,312,303 ) $ 2,249,237 $ 329,821 $ 2,579,058 Balance at January 1, 2025 125,120 $ 1,251 $ 3,646,801 $ 4,305 $ ( 1,332,435 ) $ 2,319,922 $ 314,063 $ 2,633,985 Change in unrealized value on interest rate swaps — — — ( 3,329 ) — ( 3,329 ) ( 345 ) ( 3,674 ) Common distributions declared, $ 0.9283 per share — — — — ( 117,057 ) ( 117,057 ) — ( 117,057 ) Distributions to noncontrolling interests — — — — — — ( 12,437 ) ( 12,437 ) Share-based compensation 85 1 2,458 — — 2,459 6,075 8,534 Conversion of noncontrolling interests 505 5 12,011 4 — 12,020 ( 12,020 ) — Net income — — — — 63,778 63,778 6,595 70,373 Balance at September 30, 2025 125,710 $ 1,257 $ 3,661,270 $ 980 $ ( 1,385,714 ) $ 2,277,793 $ 301,931 $ 2,579,724 See notes to consolidated financial statements. PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 5 PHILLIPS EDISON & COMPANY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (Condensed and Unaudited) (In thousands) Nine Months Ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 70,373 $ 49,515 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of real estate assets 200,908 188,374 Depreciation and amortization of corporate assets 1,172 1,332 Net amortization of above- and below-market leases ( 6,276 ) ( 4,732 ) Amortization of deferred financing expenses 3,651 3,566 Amortization of debt and derivative adjustments 1,841 2,453 Loss on extinguishment or modification of debt, net 1 1,230 (Gain) loss on disposal of property, net ( 9,798 ) 34 Straight-line rent, net ( 7,842 ) ( 6,588 ) Share-based compensation 8,534 6,981 Return on investment in unconsolidated joint ventures 505 206 Other ( 615 ) ( 610 ) Changes in operating assets and liabilities: Other assets, net ( 18,445 ) ( 12,156 ) Accounts payable and other liabilities 8,076 21,102 Net cash provided by operating activities 252,085 250,707 CASH FLOWS FROM INVESTING ACTIVITIES: Real estate acquisitions, net ( 282,038 ) ( 205,002 ) Capital expenditures ( 95,712 ) ( 55,640 ) Proceeds (payments) from sale of real estate, net 15,154 ( 26 ) Investment in unconsolidated joint ventures ( 6,987 ) ( 3,626 ) Return of investment in unconsolidated joint ventures 1,778 1,513 Investment in marketable securities ( 8,158 ) — Insurance proceeds for property damage claims 653 3,160 Net cash used in investing activities ( 375,310 ) ( 259,621 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from revolving credit facility 540,000 372,000 Payments on revolving credit facility ( 577,000 ) ( 517,000 ) Proceeds from notes payable, net 346,164 683,108 Payments on mortgages and loans payable ( 45,077 ) ( 407,745 ) Distributions paid ( 129,860 ) ( 108,585 ) Distributions to noncontrolling interests ( 13,840 ) ( 12,409 ) Net cash provided by financing activities 120,387 9,369 NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH ( 2,838 ) 455 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: Beginning of period 8,649 8,878 End of period $ 5,811 $ 9,333 RECONCILIATION TO CONSOLIDATED BALANCE SHEETS: Cash and cash equivalents $ 4,076 $ 6,446 Restricted cash 1,735 2,887 Cash, cash equivalents, and restricted cash at end of period $ 5,811 $ 9,333 PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 6 PHILLIPS EDISON & COMPANY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (Condensed and Unaudited) (In thousands) Nine Months Ended September 30, 2025 2024 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for interest $ 81,497 $ 57,627 SUPPLEMENTAL SCHEDULE OF NON-CASH ACTIVITIES: Right-of-use (“ROU”) assets obtained in exchange for new lease liabilities 1,089 57 Secured loan receivable 17,395 — Accrued capital expenditures 12,056 5,100 Assumed other liabilities — 225 Change in distributions payable ( 12,803 ) ( 12 ) Change in distributions payable - noncontrolling interests ( 1,403 ) 211 See notes to consolidated financial statements. PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 7 Phillips Edison & Company, Inc. Notes to Consolidated Financial Statements (Condensed and Unaudited) 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 three unconsolidated institutional joint ventures, Grocery Retail Partners I LLC (“GRP I”), Necessity Retail Venture LLC (“NRV”), and Neighborhood Grocery Catalyst Fund LLC (“NGCF”), in which we have partial ownership interests, and one private fund (collectively, the “Managed Funds”). As of September 30, 2025, we wholly-owned 303 real estate properties. Additionally, we owned a 14 % interest in GRP I, which owned 20 properties, a 20 % ownership interest in NRV, which owned two properties ( one of which was acquired in 2025), and a 31 % interest in NGCF, which owned three properties ( two of which were acquired in 2025). 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 condensed consolidated interim 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; initial valuations of tangible and intangible assets and liabilities, including goodwill, and related amortization periods of deferred costs and intangibles, particularly with respect to property acquisitions; and other fair value measurement assessments required for the preparation of the consolidated interim financial statements. As a result, these estimates are subject to a degree of uncertainty. There were no changes to our significant accounting policies during the nine months ended September 30, 2025. For a full summary of our significant accounting policies, refer to our 2024 Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (“SEC”) on February 11, 2025. Basis of Presentation and Principles of Consolidation —The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Readers of this Quarterly Report on Form 10-Q should refer to our audited consolidated financial statements for the year ended December 31, 2024, which are included in our 2024 Annual Report on Form 10-K. In the opinion of management, all normal and recurring adjustments necessary for the fair presentation of the unaudited consolidated financial statements for the periods presented have been included in this Quarterly Report. Our results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the operating results expected for the full year. 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. Income Taxes —Our consolidated financial statements include the operations of wholly-owned subsidiaries that have jointly elected to be treated as taxable REIT subsidiary entities and are subject to U.S. federal, state, and local income taxes at regular corporate tax rates. We recognized federal, state, and local income tax expense of $ 0.2 million and $ 0.4 million for the three months ended September 30, 2025 and 2024, respectively, and $ 0.6 million and $ 1.0 million for the nine months ended September 30, 2025 and 2024, respectively. All income tax amounts are included in Other Expense, Net on our consolidated statements of operations and comprehensive income (“consolidated statements of operations”). 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 operating and reportable segment. For more information about our single operating and reportable segment, see Note 13. Recently Issued or Adopted Accounting Pronouncements —There were no recently issued or adopted accounting pronouncements during the nine months ended September 30, 2025 that impacted the Company. PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 8 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 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Rental income related to fixed lease payments (1) $ 133,551 $ 122,617 $ 391,571 $ 360,899 Rental income related to variable lease payments (1)(2) 41,140 36,774 122,992 110,035 Straight-line rent amortization (3) 2,732 1,893 7,263 5,718 Amortization of lease assets 2,154 1,729 6,156 4,688 Lease buyout income 144 393 2,062 844 Adjustments for collectibility (4) ( 1,428 ) ( 1,626 ) ( 4,101 ) ( 4,050 ) Total rental income $ 178,293 $ 161,780 $ 525,943 $ 478,134 (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 Accounting Standards Codification (“ASC”) Topic 842, Leases . Approximate future fixed contractual lease payments to be received under non-cancelable operating leases in effect as of September 30, 2025, 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, were as follows (in thousands): Year Amount Remaining 2025 $ 123,428 2026 514,206 2027 456,364 2028 380,936 2029 298,664 Thereafter 794,865 Total $ 2,568,463 No single tenant comprised 10% or more of our aggregate annualized base rent (“ABR”) as of September 30, 2025. As of September 30, 2025, our wholly-owned real estate investments in Florida, California, and Texas represented 11.9 %, 11.1 %, and 10.2 % of our ABR, respectively. As a result, the geographic concentration of our portfolio makes it particularly susceptible to adverse natural or economic events in the Florida, California, and Texas real estate markets. PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 9 4. REAL ESTATE ACTIVITY Acquisitions — The following table summarizes our real estate acquisition activity (dollars in thousands): Nine Months Ended September 30, 2025 2024 Number of properties acquired 11 8 Number of outparcels and land for future development acquired (1)(2) 2 4 Contract price $ 280,784 $ 203,402 Total price of acquisitions (3) 282,038 205,002 (1) Outparcels acquired are adjacent to shopping centers that we own. (2) During the nine months ended September 30, 2024, we acquired an outparcel adjacent to a property that is owned by our unconsolidated joint venture, GRP I. Therefore, the outparcel was an addition to our total property count. (3) Total price of acquisitions includes closing costs less credits and assumed liabilities. Subsequent to September 30, 2025, we acquired two properties and one parcel of land for future development for $ 74.2 million. The land is intended for a future grocery-anchored development opportunity. The aggregate purchase price of the assets acquired during the nine months ended September 30, 2025 and 2024 was allocated as follows (in thousands): September 30, 2025 September 30, 2024 ASSETS Land and improvements $ 87,470 $ 68,403 Building and improvements 180,003 130,577 In-place lease assets 25,511 20,413 Above-market lease assets 2,045 1,168 Total assets 295,029 220,561 LIABILITIES Below-market lease liabilities 12,991 15,334 Other liabilities assumed — 225 Total liabilities 12,991 15,559 Net assets acquired $ 282,038 $ 205,002 The weighted-average amortization periods for in-place, above-market, and below-market lease intangibles acquired during the nine months ended September 30, 2025 and 2024 were as follows (in years): September 30, 2025 September 30, 2024 Acquired in-place leases 7 12 Acquired above-market leases 9 8 Acquired below-market leases 13 17 PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 10 Property Dispositions — The following table summarizes our real estate disposition activity for the nine months ended September 30, 2025 and 2024 (dollars in thousands): Nine Months Ended September 30, 2025 2024 Number of properties sold 2 — Number of outparcels sold 1 — Contract price $ 34,080 $ — Proceeds (payments) from sale of real estate, net (1)(2)(3) 15,154 ( 26 ) Gain (loss) on disposal of property, net (2) 9,798 ( 34 ) (1) Total proceeds from sale of real estate, net includes closing costs less credits and secured loans received. (2) We sold no properties during the nine months ended September 30, 2024, but we recognized a minimal loss on disposal of property due to miscellaneous write-off activity and expenses related to previous and future potential dispositions . (3) During the nine months ended September 30, 2025, one of our property sales included a seller financing component. We sold the property for $ 24.9 million and provided secured financing, receiving a note receivable of $ 17.4 million. Property Held for Sale —As of September 30, 2025, one property was classified as held for sale. As of December 31, 2024, there were no properties classified as held for sale. A property classified as held for sale is under contract to sell, with no substantive contingencies, and the prospective buyer has significant funds at risk. Subsequent to September 30, 2025, we sold the one property that was classified as held for sale for $ 9.6 million. A summary of assets and liabilities for the property classified as held for sale as of September 30, 2025 is below (in thousands): September 30, 2025 ASSETS Total investment in real estate assets, net $ 7,756 Other assets, net 494 Total assets $ 8,250 LIABILITIES Below-market lease liabilities, net $ 150 Accounts payable and other liabilities 311 Total liabilities $ 461 PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 11 5. OTHER ASSETS, NET The following is a summary of Other Assets, Net outstanding as of September 30, 2025 and December 31, 2024 (in thousands): September 30, 2025 December 31, 2024 Other assets, net: Deferred leasing commissions and costs $ 59,500 $ 55,266 Deferred financing expenses (1) 16,308 9,037 Office equipment, including capital lease assets, and other 29,149 26,557 Corporate intangible assets 6,703 6,703 Total depreciable and amortizable assets 111,660 97,563 Accumulated depreciation and amortization ( 57,948 ) ( 53,330 ) Net depreciable and amortizable assets 53,712 44,233 Accounts receivable, net (2) 52,723 46,099 Accounts receivable - affiliates 1,371 1,310 Secured loan receivable (3) 17,395 — Deferred rent receivable, net (4) 79,417 71,954 Derivative assets 856 4,510 Prepaid expenses and other 17,684 13,071 Investment in third parties 6,807 6,731 Investment in marketable securities 16,244 7,420 Total other assets, net $ 246,209 $ 195,328 (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 $ 3.5 million and $ 2.2 million of general reserves for uncollectible amounts as of September 30, 2025 and December 31, 2024, respectively. Receivables that were removed for tenants considered to be non-creditworthy were $ 6.5 million and $ 6.8 million as of September 30, 2025 and December 31, 2024, respectively. (3) Secured loan receivable relates to the financing provided for the sale of one of our properties during the nine months ended September 30, 2025. See Note 4 . (4) Net of $ 3.9 million and $ 4.4 million of receivables removed as of September 30, 2025 and December 31, 2024, respectively, related to straight-line rent for tenants previously or currently considered to be non-creditworthy. PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 12 6. 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 September 30, 2025 and December 31, 2024 (dollars in thousands): Interest Rate (1) September 30, 2025 December 31, 2024 Revolving credit facility SOFR + 0.8 % $ 3,000 $ 40,000 Term loans (2) 3.9 % - 5.3 % 584,750 584,750 Senior unsecured notes due 2031 2.625 % 350,000 350,000 Senior unsecured notes due 2032 5.250 % 350,000 — Senior unsecured notes due 2034 5.750 % 350,000 350,000 Senior unsecured notes due 2035 4.950 % 350,000 350,000 Secured loan facilities 3.4 % - 3.5 % 395,000 395,000 Mortgages 3.5 % - 6.2 % 30,377 67,555 Finance lease liability 526 31 Discount on notes payable ( 24,391 ) ( 22,211 ) Assumed market debt adjustments, net 289 84 Deferred financing expenses, net ( 4,225 ) ( 5,666 ) Total $ 2,385,326 $ 2,109,543 Weighted-average interest rate (3) 4.4 % 4.3 % (1) Interest rates are as of September 30, 2025. (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 is not subject to a swap, and thus is still indexed to SOFR. (3) Includes the effects of derivative financial instruments as of September 30, 2025 and December 31, 2024 (see Notes 7 and 12). 2025 Debt Activity— In June 2025, we issued $ 350 million of 5.250 % senior notes due 2032 at an issue price of 99.832 % in an underwritten offering. The offering resulted in gross proceeds of $ 347.2 million, which were used to pay down our revolving credit facility. The 2025 senior note issuance is fully and unconditionally guaranteed by us. Revolving Credit Facility —In January 2025, we amended our senior unsecured revolving credit facility. The amendment increased the aggregate borrowing capacity of the facility to $ 1 billion and extended the maturity date to January 2029, with options to extend the maturity for two additional six-month periods. 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 September 30, 2025 and December 31, 2024 is summarized below (in thousands): September 30, 2025 December 31, 2024 As to interest rate (1) : Fixed-rate debt $ 2,300,903 $ 1,987,586 Variable-rate debt 112,750 149,750 Total $ 2,413,653 $ 2,137,336 As to collateralization: Unsecured debt $ 1,987,750 $ 1,674,750 Secured debt 425,903 462,586 Total $ 2,413,653 $ 2,137,336 (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 September 30, 2025, $ 475 million in variable-rate debt is hedged to a fixed rate for a weighted-average period of 0.5 years (see Notes 7 and 12). Pursuant to the terms of our credit agreements, we are subject to, among other things, the maintenance of various financial covenants. We were in compliance with these covenants as of September 30, 2025. PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 13 7. 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 nine months ended September 30, 2025 and 2024, 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 $ 0.9 million will be reclassified from AOCI as a decrease to Interest Expense, Net. The following is a summary of our interest rate swaps that were designated as cash flow hedges of interest rate risk as of September 30, 2025 and December 31, 2024 (dollars in thousands): September 30, 2025 December 31, 2024 Count 3 3 Notional amount $ 475,000 $ 475,000 Fixed SOFR 2.8 % - 3.4 % 2.8 % - 3.4 % Maturity date 2025 - 2026 2025 - 2026 Weighted-average term (in years) 0.5 1.3 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 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Amount of gain (loss) recognized in Other Comprehensive Income $ 217 $ ( 6,031 ) $ 246 $ 3,947 Amount of gain reclassified from AOCI into Interest Expense, Net ( 1,329 ) ( 4,474 ) ( 3,920 ) ( 13,543 ) 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 September 30, 2025, 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. 8. 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 PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 14 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 adverse 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, NRV, and NGCF joint ventures. 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, and such premiums may be reimbursed by tenants pursuant to specific lease terms. As of September 30, 2025, we had four letters of credit outstanding totaling approximately $ 26.2 million to provide security for our obligations under Silver Rock’s insurance and reinsurance contracts. 9. 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 our Board of Directors (the “Board”). Our charter does not provide for cumulative voting in the election of directors. At-the-Market Offering (“ATM”) —In February 2022, we entered into a sales agreement relating to the potential sale of shares of common stock pursuant to a continuous offering program, allowing up to $ 250 million in offerings. During the nine months ended September 30, 2024, prior to the entry into the new program described below, we issued approximately 46,000 shares of our common stock at a gross weighted average price of $ 37.05 per share under this ATM program for net proceeds of $ 1.7 million, after approximately $ 17,000 in commissions. In February 2024, we entered into a new sales agreement relating to the potential sale of shares of common stock pursuant to a continuous offering program, which replaced the previous agreement. 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. We issued no shares of our common stock under this ATM program during the three and nine months ended September 30, 2025 and 2024. As of September 30, 2025, approximately $ 177 million of common stock remained available for issuance under the current ATM program. Distributions —For each month beginning January 2025 through August 2025, we declared and paid monthly distributions of $ 0.1025 per common share and Operating Partnership unit (“OP unit”). In September 2025, the Board authorized a 5.7 % increase of our monthly distribution rate to $ 0.1083 per common share and OP unit, and we declared a monthly distribution of $ 0.1083 per common share and OP unit for September 2025. Distributions paid to stockholders and OP unit holders of record subsequent to September 30, 2025 were as follows (dollars in thousands, excluding per share amounts): Month Date of Record Date Distribution Paid Monthly Distribution Rate Cash Distribution September 9/15/2025 10/1/2025 $ 0.1083 $ 14,954 Convertible Noncontrolling Interests —As of September 30, 2025 and December 31, 2024, we had approximately 12.7 million and 13.0 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. 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 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 September 30, 2025 and December 31, 2024 are classified as Noncontrolling Interests within permanent equity on our consolidated balance sheets. The table below is a summary of our OP unit activity for the three and nine months ended September 30, 2025 and 2024 (dollars and shares in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 OP units converted into shares of common stock (1) 99 156 505 408 Distributions declared on OP units (2) $ 4,210 $ 4,265 $ 12,437 $ 12,620 (1) OP units convert 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. Share Repurchase Program —We have a Board approved 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. PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 15 10. 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 (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Numerator: Net income attributable to stockholders - basic $ 24,685 $ 11,602 $ 63,778 $ 44,543 Net income attributable to convertible OP units (1) 2,543 1,301 6,595 4,972 Net income - diluted $ 27,228 $ 12,903 $ 70,373 $ 49,515 Denominator: Weighted-average shares - basic 125,649 122,527 125,471 122,380 OP units (1) 12,768 13,685 12,900 13,705 Dilutive restricted stock awards (2) 443 366 556 373 Adjusted weighted-average shares - diluted 138,860 136,578 138,927 136,458 Earnings per common share: Basic and diluted income per share $ 0.20 $ 0.09 $ 0.51 $ 0.36 (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 all periods 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) For the three and nine months ended September 30, 2025, our diluted adjusted weighted-average share count excluded the impact of approximately 86 ,000 shares and 13 ,000 shares, respectively, related to certain performance-based awards that are earned based on the achievement of specified performance metrics, which were anti-dilutive to the weighted-average share count based on the performance measurement at September 30, 2025. PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 16 11. 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 Topic 606, Revenue from Contracts with Customers, but that are included in this table for the purpose of disclosing all related party revenues (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Recurring fees (1) $ 1,208 $ 1,016 $ 3,484 $ 3,014 Transactional revenue and reimbursements (2) 815 847 2,189 2,147 Insurance premiums (3) 1,251 993 3,700 2,782 Total fees and management income $ 3,274 $ 2,856 $ 9,373 $ 7,943 (1) Recurring fees include asset management fees and property management fees. (2) Transactional revenue includes items such as leasing commissions and construction management fees. (3) 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 and board members, 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 September 30, 2025, the potential “make-whole amount” on the estimated aggregate amount of built-in gain subject to protection under the agreements is approximately $ 114.1 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 tax-deferred exchanges under Section 1031 of the Internal Revenue Code of 1986, as amended (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 September 30, 2025, we were the limited guarantor of $ 173.8 million, $ 47.5 million, and $ 31.8 million in mortgage loans secured, respectively, by GRP I, NRV, and NGCF properties. Our guaranties for the GRP I, NRV, and NGCF debt are limited to being the non-recourse carveout guarantor and the environmental indemnitor. Further, we are also party to agreements with GRP I, NRV, and NGCF in which any potential liability under such guaranties will be apportioned between us and GRP I, NRV, and NGCF based on our respective ownership percentages in the joint ventures. We had no liability recorded on our consolidated balance sheets for the guaranties as of September 30, 2025 and December 31, 2024. 12. 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. PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 17 The following is a summary of borrowings as of September 30, 2025 and December 31, 2024 (in thousands): September 30, 2025 December 31, 2024 Recorded Principal Balance (1) Fair Value Recorded Principal Balance (1) Fair Value Revolving credit facility $ 3,000 $ 3,023 $ 40,000 $ 40,088 Term loans 582,797 586,858 580,928 587,341 Senior unsecured notes due 2031 344,970 310,331 344,417 292,810 Senior unsecured notes due 2032 346,291 358,005 — — Senior unsecured notes due 2034 342,400 364,014 341,919 350,735 Senior unsecured notes due 2035 341,948 344,687 341,453 329,280 Secured portfolio loan facilities 392,859 369,164 393,056 359,194 Mortgages (2) 31,061 29,973 67,770 66,883 Total $ 2,385,326 $ 2,366,055 $ 2,109,543 $ 2,026,331 (1) As of September 30, 2025 and December 31, 2024, respectively, recorded principal balances include: (i) net deferred financing fees of $ 4.2 million and $ 5.7 million; (ii) assumed market debt adjustments of $ 0.3 million and $ 0.1 million; and (iii) notes payable discounts of $ 24.4 million and $ 22.2 million. (2) Our finance lease liability is included in the mortgages line item, as presented . Recurring and Nonrecurring Fair Value Measurements —Our marketable securities 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 nine months ended September 30, 2025 and the year ended December 31, 2024 were as follows (in thousands): September 30, 2025 December 31, 2024 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Recurring Marketable securities (1) $ 16,244 $ — $ — $ 7,420 $ — $ — Derivative assets (1)(2) — 856 — — 4,510 — (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 $ 0.4 million and $ 0.5 million as of September 30, 2025 and December 31, 2024, respectively. 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 September 30, 2025 and December 31, 2024, 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. To comply with the provisions of ASC Topic 820, Fair Value Measurement , 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 September 30, 2025 and December 31, 2024, 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. Real Estate Asset Impairment —Our real estate assets are measured and recognized at fair value, less costs to sell for held-for-sale properties, on a nonrecurring basis dependent upon when we determine an impairment has occurred. There were no impairment charges recorded during the three and nine months ended September 30, 2025 and 2024. 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 PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 18 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. 13. REPORTABLE SEGMENTS Our principal business is the ownership and operation of community and neighborhood shopping centers. We conduct our operations solely in the United States, and we do not distinguish our principal business, or group our operations, by geography or size for the purpose of measuring performance. We concluded that we have only one operating and reportable segment, Real Estate Properties. Our conclusion was determined on the basis of the way in which our chief operating decision maker (“CODM”) regularly reviews internally reported financial information to analyze financial performance, make decisions, and allocate resources at the consolidated level. Our Real Estate Properties segment derives a majority of its revenue from the lease contracts it enters into as a lessor, which are all in the form of operating leases. Further, our lease contracts typically provide for reimbursements from tenants for common area maintenance, insurance, and real estate tax expense. No single tenant comprised 10% or more of our aggregate ABR for the three and nine months ended September 30, 2025 and 2024. Our CODM is Mr. Edison, our Chairman and Chief Executive Officer. Our CODM assesses performance, makes decisions, and allocates operating and capital resources of the Real Estate Properties segment by utilizing net income (loss) on a consolidated basis. Our CODM evaluates net income (loss) by monitoring budget versus actual as well as variance analysis to prior periods to analyze the performance of the segment. Information about the net income (loss) of the Real Estate Properties segment that is regularly reviewed by our CODM, including revenue and significant expenses, was as follows for the three and nine months ended September 30, 2025 and 2024 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues: Rental income $ 178,293 $ 161,780 $ 525,943 $ 478,134 Fees and management income 3,274 2,856 9,373 7,943 Other property income 1,102 891 3,417 2,267 Total revenues 182,669 165,527 538,733 488,344 Operating Expenses: Property operating (1) 30,197 27,528 89,455 81,461 Real estate taxes 22,226 19,569 64,584 57,897 Employee-related expenses 8,972 7,109 25,606 21,288 Other general and administrative expenses (2) 3,780 4,005 12,154 12,772 Depreciation and amortization 65,603 68,328 202,080 189,706 Total operating expenses 130,778 126,539 393,879 363,124 Other: Interest expense, net (3) ( 28,544 ) ( 24,998 ) ( 81,935 ) ( 71,954 ) Gain (loss) on disposal of property, net 4,255 ( 19 ) 9,798 ( 34 ) Other expense, net ( 374 ) ( 1,068 ) ( 2,344 ) ( 3,717 ) Net income 27,228 12,903 70,373 49,515 Net income attributable to noncontrolling interests ( 2,543 ) ( 1,301 ) ( 6,595 ) ( 4,972 ) Net income attributable to stockholders $ 24,685 $ 11,602 $ 63,778 $ 44,543 PHILLIPS EDISON & COMPANY SEPTEMBER 30, 2025 FORM 10-Q 19 (1) Property operating is primarily made up of common area maintenance, compensation, insurance, and other costs related to the leasing of our real estate properties. Our CODM is not provided with further disaggregation and uses total property operating expenses to manage the business. (2) Other general and administrative expenses is primarily made up of professional fees, technology and communication expense, and insurance, taxes, and board costs. (3) Interest income is not a significant component of Interest Expense, Net. The measure of segment assets regularly reviewed by our CODM is reported on the consolidated balance sheets as Total Assets. 14. SUBSEQUENT EVENTS In preparing the condensed and unaudited consolidated financial statements, we have evaluated subsequent events through the date of filing of this report on Form 10-Q 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 SEPTEMBER 30, 2025 FORM 10-Q 20