5 unchanged sentences
Credit risk is the failure of the counterparty to perform under the terms of the derivative contract.
−Removed: If the fair value of a derivative contract is positive, the counterparty will owe us,
+Added: If the fair value of a derivative contract is positive, the counterparty will owe us, which creates credit risk for us.
+Added: If the fair value of a derivative contract is negative, we will owe the counterparty and,
PHILLIPS EDISON & COMPANY
DECEMBER 31, 2025 FORM 10-K
−Removed: which creates credit risk for us.
−Removed: If the fair value of a derivative contract is negative, we will owe the counterparty and, therefore, do not have credit risk.
+Added: therefore, do not have credit risk.
We seek to minimize the credit risk in derivative instruments by entering into transactions with high-quality counterparties.
1 unchanged sentence
The market risk associated with interest-rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.
−Removed: As of December 31, 2024, we had three interest rate swaps that fixed SOFR on $475 million of our unsecured term loan facilities.
−Removed: 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.
+Added: As of December 31, 2025, we had one interest rate swap that fixed SOFR on $200 million of our unsecured term loan facilities.
+Added: In January 2024, we entered into an interest rate swap which had a notional amount of $150 million and swapped SOFR for a fixed rate of approximately 3.45% which became effective in September 2024 and matured in December 2025.
As of December 31, 2025, we had not fixed the interest rate on $376.8 million of our unsecured debt through derivative financial instruments, and as a result, we are subject to the potential impact of rising interest rates, which could negatively impact our profitability and cash flows.
5 unchanged sentences
As a result, the ultimate realized gain or loss with respect to interest rate fluctuations will depend on the exposures that arise during the period, the hedging strategies at the time, and the related interest rates.
−Removed: See further discussion on interest amounts on our variable rate debt in Note 8 and discussion on the swap rate for our interest rate swaps in Note 9.
+Added: See further discussion on interest amounts on our variable rate debt in Note 8 and discussion on the swap rate for our interest rate swap in Note 9.
FOREIGN CURRENCY EXCHANGE RISK —We do not have any foreign operations, and thus, we are not exposed to foreign currency fluctuations.
+Added: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
+Added: See the Index to Consolidated Financial Statements on page F-1 of this report.
+Added: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
+Added: Not applicable.
+Added: PHILLIPS EDISON & COMPANY
+Added: DECEMBER 31, 2025 FORM 10-K
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.