Phillips Edison & Company, Inc. (PECO): Analyse du Pestle [Jan-2025 Mise à jour]

Dans le paysage dynamique de l'immobilier commercial, Phillips Edison & Company, Inc. (PECO) navigue dans un réseau complexe de défis et d'opportunités qui s'étendent bien au-delà des stratégies d'investissement immobilier traditionnelles. This comprehensive PESTLE analysis unveils the intricate factors shaping PECO's business ecosystem, revealing how political regulations, economic fluctuations, societal shifts, technological innovations, legal frameworks, and environmental considerations converge to influence the company's strategic decision-making and long-term sustainability in the competitive Marché immobilier au détail.

Phillips Edison & Company, Inc. (PECO) - Analyse du pilon: facteurs politiques

Investissement immobilier au détail touché par les réglementations de zonage locales et les politiques de développement municipal

En 2024, les réglementations de zonage locales influencent considérablement les investissements immobiliers de la vente au détail de PECO dans différentes municipalités. La société opère dans 17 États avec différentes politiques de développement locales.

État	Indice de complexité de zonage	Niveau de restriction réglementaire
Californie	8.7	Haut
Texas	4.2	Modéré
Ohio	6.5	Modéré

Changements potentiels dans les incitations fiscales du gouvernement pour les investissements immobiliers commerciaux

Paysage incitatif fiscal actuel pour les investissements immobiliers commerciaux:

• Échange de l'article 1031: permet le report de la taxe sur les gains en capital
• Investissements sur zone d'opportunité: avantages fiscaux dans des zones de détresse économiquement
• Déductions d'amortissement potentielles: jusqu'à 1 050 000 $ pour les améliorations de la propriété admissibles

Tensions géopolitiques affectant la stabilité du marché des propriétés commerciales

Les incertitudes économiques mondiales ont un impact sur les stratégies d'investissement immobilier commercial.

Région géopolitique	Évaluation des risques d'investissement	Indice de volatilité du marché
Amérique du Nord	Faible	3.2
Europe	Modéré	5.6
Asie-Pacifique	Haut	7.1

Changements dans les dépenses fédérales sur les infrastructures influençant le développement immobilier de la vente au détail

Projections d'investissement fédérales sur les infrastructures pour 2024-2026:

• Dépenses totales d'infrastructure: 1,2 billion de dollars
• Potentiel de développement immobilier commercial: 350 milliards de dollars estimés
• Investissements liés aux infrastructures immobilières de détail: prévu 85,6 millions de dollars

Métriques à impact politique clés pour PECO:

Métrique	2024 projection
Coût de conformité réglementaire	12,3 millions de dollars
Budget d'atténuation des risques politiques	5,7 millions de dollars
Économies d'incitation fiscale potentielles	22,4 millions de dollars

Phillips Edison & Company, Inc. (PECO) - Analyse du pilon: facteurs économiques

Sensibilité aux fluctuations des taux d'intérêt affectant l'investissement immobilier et le financement

Au quatrième trimestre 2023, le taux des fonds fédéraux s'élevait à 5,33%, ce qui concerne directement les coûts de financement de PECO. La dette totale de la société était de 1,78 milliard de dollars, avec un taux d'intérêt moyen pondéré de 4,7% au 30 septembre 2023.

Métrique de la dette	Valeur
Dette totale	1,78 milliard de dollars
Taux d'intérêt moyen pondéré	4.7%
Taux des fonds fédéraux (Q4 2023)	5.33%

Récupération économique continue post-pandemic impacte la performance du centre de vente au détail

Le taux d'occupation du portefeuille de PECO était de 96,5% au 30 septembre 2023, avec des centres ancrés d'épicerie maintenant 97,4% d'occupation. Les ventes au détail des centres ancrés d'épicerie ont augmenté de 4,2% en glissement annuel en 2023.

Métrique de performance	Valeur
Occupation totale du portefeuille	96.5%
Occupation des centres ancrés d'épicerie	97.4%
Croissance des ventes au détail (ancré d'épicerie)	4.2%

Dynamique de l'inflation et du marché du travail influençant les évaluations des propriétés commerciales

Le taux d'inflation américain était de 3,4% en décembre 2023.

Indicateur économique	Valeur
Taux d'inflation aux États-Unis (décembre 2023)	3.4%
Valeur totale du portefeuille	4,9 milliards de dollars
Croissance NOI du même centre	3.6%

Les tendances des dépenses de consommation ont un impact direct sur les performances des locataires de détail

Les ventes au détail aux États-Unis ont augmenté de 4,1% en 2023. Les ventes de locataires de PECO par pied carré ont été en moyenne de 436 $, les épiceries obtenant le plus de 638 $ par pied carré.

Métrique de dépenses	Valeur
Croissance des ventes au détail aux États-Unis (2023)	4.1%
Ventes de locataires PECO par pied carré	$436
Ventes d'épicerie par pied carré	$638

Phillips Edison & Company, Inc. (PECO) - Analyse du pilon: facteurs sociaux

Changer les préférences d'achat des consommateurs vers les expériences de vente au détail omnicanal

Selon la National Retail Federation, 73% des acheteurs utilisent plusieurs canaux au cours de leur parcours commercial en 2023. Les ventes de détail omnicanal ont atteint 491,4 milliards de dollars aux États-Unis.

Métrique de vente au détail omnicanal	2023 données
Consommateurs de magasinage multicanal	73%
Ventes totales de vente au détail omnicanal	491,4 milliards de dollars
Pourcentage d'achat mobile	44.2%

Chart démographique dans les emplacements des centres commerciaux de banlieue et urbaine

Les données du Bureau du recensement américain indiquent une croissance de la population suburbaine de 2,1% entre 2020-2022, les milléniaux représentant 21,9% des résidents de banlieue.

Métrique démographique	Pourcentage
Croissance démographique suburbaine (2020-2022)	2.1%
Représentation de banlieue millénaire	21.9%
Changement de densité de population urbaine	1.6%

Demande croissante des consommateurs pour des environnements de vente au détail expérientiels

Le Conseil international des centres commerciaux rapporte que 72% des consommateurs préfèrent les centres commerciaux offrant des expériences uniques, avec 65% disposés à dépenser plus dans des environnements de vente au détail interactifs.

Métrique de vente au détail expérientiel	Pourcentage
Les consommateurs préférant la vente au détail expérientiel	72%
Les consommateurs sont prêts à dépenser plus	65%

Tendances de travail à distance affectant les modèles d'utilisation de l'immobilier commercial

Cushman & Wakefield Research indique que 35% des travailleurs maintiennent des modèles de travail hybrides en 2023, ce qui concerne les taux d'occupation immobilière commerciaux.

Métrique de travail à distance	2023 données
Adoption du modèle de travail hybride	35%
Taux de vacance immobilier commercial	17.2%
Utilisation de l'espace de bureau	47.5%

Phillips Edison & Company, Inc. (PECO) - Analyse du pilon: facteurs technologiques

Transformation numérique des espaces de vente au détail avec des solutions technologiques intégrées

Phillips Edison & La société a investi 12,4 millions de dollars dans les mises à niveau des infrastructures numériques au cours de 2023. La société a mis en œuvre des capteurs compatibles IoT dans 87% de ses propriétés de vente au détail, permettant la surveillance et la gestion en temps réel des environnements centraux.

Catégorie d'investissement technologique	2023 dépenses	Pourcentage de couverture
Capteurs IoT	4,2 millions de dollars	87%
Signalisation numérique	3,7 millions de dollars	65%
Infrastructure Wi-Fi	2,5 millions de dollars	72%

Investissement dans les technologies de construction intelligente pour l'efficacité énergétique

PECO a déployé des systèmes de gestion des bâtiments intelligents dans 62 propriétés, réduisant la consommation d'énergie de 24,3% par rapport aux mesures de référence 2022. L'investissement total dans les technologies économes en énergie a atteint 8,6 millions de dollars en 2023.

Métrique de l'efficacité énergétique	Performance de 2023
Propriétés avec des systèmes intelligents	62
Réduction de la consommation d'énergie	24.3%
Investissement technologique	8,6 millions de dollars

Stratégies d'intégration du commerce électronique pour les lieux de vente au détail physiques

Phillips Edison a développé des stratégies omnicanal, avec 45 propriétés mettant en œuvre des services de clic et de collecte. L'intégration de la plate-forme numérique a augmenté les ventes de locataires de 17,6% en 2023.

Métrique d'intégration du commerce électronique	2023 données
Propriétés avec clic et collecte	45
Augmentation des ventes de locataires	17.6%
Investissement de plate-forme numérique	6,3 millions de dollars

Analyse avancée des données pour le mélange de locataires et l'optimisation des performances des propriétés

PECO a mis en œuvre des plateformes d'analyse prédictive avancées, analysant les données de 129 propriétés. Les algorithmes d'apprentissage automatique ont amélioré la précision de la sélection des locataires de 32,5% et augmenté l'optimisation des revenus des biens de 14,2 millions de dollars en 2023.

Performance d'analyse des données	2023 métriques
Propriétés analysées	129
Amélioration de la précision de la sélection des locataires	32.5%
Optimisation des revenus	14,2 millions de dollars

Phillips Edison & Company, Inc. (PECO) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations commerciales d'investissement immobilier et de divulgation

Métriques de la conformité réglementaire:

Catégorie de réglementation	Statut de conformité	Fréquence de rapport
Conformité au RPE	100% conforme	Trimestriel
Acte de Sarbanes-Oxley	Complexe	Annuel
Divulgation d'investissement immobilier	Transparence complète	Trimestriel

Litiges et défis réglementaires en cours

Procédure judiciaire active:

Type de cas	Nombre de cas actifs	Dépenses juridiques estimées
Litige de litige des biens	3	1,2 million de dollars
Enquêtes réglementaires	1	$450,000

Exigences de conformité environnementale

Métriques de la conformité environnementale:

• Taux de conformité EPA: 98,7%
• Certifications de construction verte: 42 propriétés
• Réduction des émissions de carbone: 22% depuis 2020

Obligations de déclaration de la Commission des valeurs mobilières

Détails de rapport de la SEC:

Type de rapport	Dépôt de fréquence	Taux de conformité
Rapport annuel de 10 K	Annuellement	100%
Rapport trimestriel 10-Q	Trimestriel	100%
Événements matériels 8-K	Au besoin	100%

Phillips Edison & Company, Inc. (PECO) - Analyse du pilon: facteurs environnementaux

Accent croissant sur les pratiques de construction durables et les certifications vertes

Depuis 2024, Phillips Edison & La société a mis en œuvre des stratégies de construction vertes à travers son portefeuille. Certification LEED Les réalisations comprennent:

Niveau de certification	Nombre de propriétés	Total en pieds carrés
Argenté	12	378 500 pieds carrés
Or de LEED	5	156 200 pieds carrés

Initiatives d'efficacité énergétique dans le portefeuille immobilier commercial

Mesures de réduction de la consommation d'énergie pour les propriétés PECO:

Métrique de l'efficacité énergétique	2024 performance	Réduction d'une année à l'autre
Économies d'énergie totales	2,4 millions de kWh	14.6%
Réduction des émissions de carbone	1 680 tonnes métriques CO2	12.3%

Stratégies d'adaptation du changement climatique pour les investissements immobiliers

Répartition des investissements en résilience climatique:

Stratégie d'adaptation	Montant d'investissement	Propriétés affectées
Infrastructure d'atténuation des inondations	4,2 millions de dollars	18 propriétés
Gestion améliorée des eaux pluviales	3,7 millions de dollars	22 propriétés

Intégration d'énergie renouvelable dans le développement du centre de vente au détail

Déploiement d'énergie renouvelable sur le portefeuille PECO:

Type d'énergie renouvelable	Capacité installée	Nombre de propriétés
Installations de panneaux solaires	2,1 MW	9 propriétés
Partenariats d'énergie éolienne	1,5 MW	4 propriétés

Phillips Edison & Company, Inc. (PECO) - PESTLE Analysis: Social factors

The social factors influencing Phillips Edison & Company, Inc. (PECO) are overwhelmingly positive, driven by persistent consumer demand for convenience and essential retail in suburban neighborhoods. You're seeing a clear flight to necessity-based shopping, which makes PECO's grocery-anchored model highly resilient, even with inflation concerns.

This focus on the essentials translates directly into rock-solid operational metrics. As of September 30, 2025, the company's leased portfolio occupancy stood at a very strong 97.6%, showing that retailers want to be where the consumers already are.

Sociological

The core of PECO's stability lies in its commitment to necessity-based goods and services (non-discretionary retail). This is a defensive strategy that insulates the portfolio from the sharper swings of the economic cycle, unlike malls or centers focused on luxury or purely discretionary items. Honestly, people still need milk and a haircut, regardless of what the stock market is doing.

A massive portion of the company's revenue is tied to these essential consumer habits. Specifically, 70% of Phillips Edison & Company's Annualized Base Rent (ABR) is derived from retailers providing necessity-based goods and services. This high percentage provides predictable, high-quality cash flows, which is exactly what a seasoned financial analyst looks for in a volatile market.

Key Metric (as of Q3 2025)	Value	Implication for Social Stability
Necessity-Based ABR	70%	High revenue defense against economic downturns and consumer spending shifts.
Leased Portfolio Occupancy	97.6%	Strong retailer demand for space in grocery-anchored centers.
Anchor Occupancy	99.2%	Near-perfect retention of primary foot-traffic drivers (grocers).
Same-Center NOI Growth (2025 Midpoint)	3.35%	Demonstrates organic growth in a stable, essential retail environment.

The tenant mix is defintely evolving to reflect broader societal trends in well-being and indulgence, a classic consumer bifurcation. The modern neighborhood center is becoming a holistic health and convenience hub, not just a place to buy groceries.

This evolution includes a significant push into holistic health services and specialty food concepts. You see this in the leasing of space to tenants like Pacific Dental Services, which focuses on the mouth/body wellness connection, and the rise of specialty sweets and treats like Crumbl Cookies and Swig Drinks, which cater to the consumer's desire for an affordable indulgence.

The entire model is anchored by the consistent flow of shoppers drawn by the grocer. Grocery anchors benefit from high average foot traffic because they are a non-negotiable part of the weekly routine, driving customers past the inline tenants. This consistency is quantifiable:

• Grocery anchors drive high foot traffic.
• The average foot traffic for grocery anchors is approximately 1.6 visits per American family per week. [cite: 17, Search 1]
• Traditional grocery chains still command over 70.0% of total grocery store foot traffic.

Here's the quick math: that high-frequency foot traffic, even for a short trip, creates a built-in customer base for the 303 wholly-owned properties and 34.0 million square feet that Phillips Edison & Company manages as of September 30, 2025. This persistent, non-discretionary traffic is the engine for the smaller, inline tenants.

Phillips Edison & Company, Inc. (PECO) - PESTLE Analysis: Technological factors

Company-wide mandate in 2025 to adopt an AI solution in every department

You can't talk about 2025 strategy without talking about Artificial Intelligence (AI), and Phillips Edison & Company is defintely leaning into it. PECO's leadership has issued a clear, company-wide mandate: every single department must adopt an AI solution this year. This isn't just about buzzwords; it's a push for tangible efficiency gains, starting with back-office functions like Human Resources (HR) and Legal.

The immediate goal is to streamline operations. Honestly, in a capital-intensive business like real estate, every basis point of efficiency matters. But the more strategic play is how AI will be used to support smarter acquisition and broader operational improvements across the portfolio. What this investment hides, however, is the associated risk. The rapid evolution of generative AI (Artificial Intelligence that can create new content) carries technological and legal challenges, including the risk of inaccurate outputs leading to impaired decision-making or potential legal liabilities.

• AI Focus Areas (2025):
• Start with efficiency gains in HR and Legal.
• Transition to smarter acquisition strategies.
• Target broader operational improvements.

Properties function as critical last-mile delivery solutions for omni-channel retail

The physical store is not dying; it's evolving into a logistics hub, and PECO's grocery-anchored centers are at the epicenter of this shift. They are a critical component of the omni-channel retail model, essentially solving the costly and complex problem of last-mile delivery. Retailers have incorporated technology into their models, creating a new equilibrium where the store is re-centered in the consumer journey.

Because these centers are anchored by necessity-based grocers, they generate consistent, high foot traffic-around 31,000 average total trips per week to each center. This constant flow of customers makes them ideal locations for retailers to manage online orders and returns, which is why PECO's properties are seen as an essential part of the modern supply chain. This is a huge competitive advantage in the retail Real Estate Investment Trust (REIT) sector.

85% of grocers in the portfolio offer Buy Online, Pick-up In Store (BOPIS) services

The high adoption rate of Buy Online, Pick-up In Store (BOPIS) services within PECO's portfolio is a key technological differentiator. As of late 2025, approximately 85% of the grocers in the portfolio offer BOPIS options. This means the physical space is actively being used for digital fulfillment, making the real estate more valuable and sticky for the tenants.

This high rate of digital integration directly supports the portfolio's resilience. It ensures that the properties remain vital to the grocers' revenue streams, whether the sale originates online or in-store. It's a clear sign that PECO's centers are not just selling space, but providing essential infrastructure for modern retailing.

PECO Portfolio Technology & Retail Integration (FY 2025)

Metric	Value / Status	Strategic Implication
Grocers Offering BOPIS	Approximately 85%	High digital-to-physical integration; enhances tenant value.
AI Mandate	Company-wide adoption in every department	Focus on operational efficiency and data-driven strategy.
Average Weekly Foot Traffic (per center)	Approximately 31,000 trips	Physical properties are critical last-mile fulfillment points.

Leveraging data-driven insights for smarter acquisition and asset management strategies

PECO is using data-driven insights to maintain a disciplined and highly profitable acquisition strategy. Their target is to acquire assets that achieve an unlevered Internal Rate of Return (IRR) above 9%. They don't just buy centers; they use data to identify centers with strong growth profiles that they believe will exceed this threshold.

Here's the quick math on their external growth: The company affirmed its full-year 2025 gross acquisition guidance to be between $350 million and $450 million. As of Q3 2025, they had already closed $376 million in gross acquisitions, putting them firmly within that target range. This aggressive, yet disciplined, pace is only possible with a robust technology platform that can quickly underwrite and evaluate a high volume of deals. In fact, activity based on their underwriting process was up 50% over the previous year, showing the scale of their data-driven pipeline.

Phillips Edison & Company, Inc. (PECO) - PESTLE Analysis: Legal factors

The legal landscape for Phillips Edison & Company (PECO) in late 2025 is characterized by a mix of federal tax simplification, state-level efforts to repurpose commercial real estate, and local zoning adjustments attempting to keep pace with modern retail logistics. For a grocery-anchored REIT like PECO, these changes present both clear opportunities for asset optimization and new operational risks.

State-level laws are shifting to encourage adaptive reuse (commercial to residential) of properties.

The trend of converting underutilized commercial properties-especially vacant office space-into multifamily housing is being actively supported by new state legislation. This is a potential long-term opportunity for PECO to dispose of or redevelop non-core, non-grocery-anchored assets, or even to add a residential component to existing centers in urban infill areas.

Texas Senate Bill 840 (SB 840), effective September 1, 2025, is a prime example. This law forces municipalities in larger cities (population over 150,000 in counties over 300,000) to allow mixed-use and multifamily residential development 'by right' in areas zoned for office, commercial, retail, or warehouse use. This eliminates the time-consuming and expensive rezoning process.

Key provisions of Texas SB 840 for developers include:

• Allowing multifamily development (three or more units) or mixed-use (at least 65% residential) by right in commercial zones.
• Prohibiting density restrictions lower than 36 units per acre or the city's highest allowed residential density.
• Limiting parking requirements to no more than one space per dwelling unit.

This legislative push, also seen in states like Missouri with proposed tax credits of 25%-30% for commercial-to-residential conversions, increases the underlying value of PECO's land portfolio by expanding its potential use cases beyond just retail.

New state laws are streamlining the process for commercial unlawful occupant removal.

The efficiency of regaining possession of a commercial property significantly impacts a REIT's net operating income (NOI). While some states are increasing tenant protections, a counter-trend is emerging to streamline the removal of true unlawful occupants, which is a net positive for property owners.

For instance, Tennessee's House Bill 216 (introduced in April 2025) aims to expedite the process for property owners to reclaim commercial real estate from unauthorized occupants, seeking to deter criminal activity and squatting. Similarly, Illinois's Senate Bill 1563 (signed July 2025, effective January 1, 2026) amends the Forcible Entry and Detainer Act to give law enforcement clearer authority to remove re-entering unlawful occupants without requiring a new, costly eviction process.

However, the trend is not uniform. In California, new laws effective January 1, 2025, actually increase the time a commercial tenant has to respond to an unlawful detainer complaint from five to 10 days, which can extend the time and cost for a landlord to regain possession.

State Law/Regulation	Effective/Proposed Date	Impact on Commercial Landlords (PECO)	Risk/Opportunity
TN House Bill 216 (Commercial Unlawful Occupant Removal)	April 2025 (Introduced)	Streamlines the process for immediate removal of unauthorized occupants.	Opportunity: Reduces time and cost of regaining possession.
CA AB 2347 (Unlawful Detainer Response Time)	January 1, 2025	Increases tenant response time in eviction cases from 5 to 10 days.	Risk: Extends the eviction timeline, increasing lost rent/legal costs.
IL Senate Bill 1563 (Unlawful Re-entry)	September 4, 2025 (Signed)	Allows law enforcement to remove re-entering unlawful occupants without a new eviction.	Opportunity: Eliminates the need for a second, months-long eviction process.

Proposed Treasury regulations (October 2025) simplify the 'domestically controlled REIT' test for foreign investors.

In a significant development for all U.S. REITs, including PECO, the Treasury Department and the IRS issued proposed regulations on October 20, 2025, that simplify the 'domestically controlled qualified investment entity' (DREIT) test. This is defintely a boon for attracting foreign capital.

The proposed regulations repeal the controversial 'look-through' rule, which previously required a REIT to trace the foreign ownership of certain domestic C corporation shareholders. Under the new proposal, all domestic C corporations are simply treated as U.S. persons for the DREIT test, regardless of their underlying foreign ownership.

This change reduces administrative complexity and legal uncertainty for foreign investors, which should make investment in publicly traded REITs like Phillips Edison & Company more attractive. Given the company's portfolio of 303 wholly-owned properties across 31 states as of September 30, 2025, a simpler path for foreign investment could improve stock liquidity and support a higher valuation.

Local zoning regulations must be updated to accommodate new retail logistics like curbside pickup and delivery.

PECO's grocery-anchored centers are essential components of the omni-channel strategy for its tenants, serving as critical last-mile delivery solutions. However, the physical infrastructure for this-curbside pickup, dedicated parking for delivery drivers, and staging areas-often clashes with outdated local zoning codes.

Local municipalities across the country are now actively amending their zoning codes to address this reality. For example, a retail conversion in East Cobb, Georgia, in late 2025 was approved to include double drive-through service and dedicated infrastructure for curbside pickup and delivery. This is a micro-level, but critical, legal hurdle that PECO must navigate across its 34.0 million square feet of retail space. The key is ensuring local codes are updated to allow these operational necessities without triggering lengthy, discretionary review processes.

The failure to update local zoning to accommodate these modern retail needs creates a legal bottleneck that directly impacts tenant operations and, subsequently, PECO's ability to maximize rent spreads. You need to proactively engage with planning commissions in your key markets.

Phillips Edison & Company, Inc. (PECO) - PESTLE Analysis: Environmental factors

You're looking at Phillips Edison & Company, Inc. (PECO) and need to know how environmental factors-like climate change and resource scarcity-will actually impact the bottom line. The takeaway is clear: PECO is ahead of schedule on its primary carbon reduction goal, having already hit a 38% cut in its operational carbon footprint, but it still has a long way to go to meet its ambitious on-site solar target.

The company is defintely treating climate risk as investment risk, which is the right move for a large Real Estate Investment Trust (REIT) focused on physical assets. Their strategy is built on hitting clear, measurable targets for emissions, renewable energy, and property resilience, all based on a 2020 baseline for a 2030 achievement goal. Honestly, hitting the GHG target early is a strong sign of operational discipline.

Achieved a 38% reduction in Scope 1 and 2 GHG Emissions toward a 46% target

PECO has made significant progress in reducing its direct operational emissions, which are Scope 1 (direct from owned or controlled sources) and Scope 2 (indirect from purchased energy). As of the latest reporting in 2024, the company achieved a 38% reduction in these emissions. This puts them ahead of schedule for their goal of a 46% reduction, which is benchmarked against their 2020 baseline. This is a big win because it shows they are actively managing energy use and transitioning to cleaner sources for their landlord-controlled spaces, which helps manage utility costs.

Here's the quick math on their progress against other key environmental metrics, all based on the same 2020 baseline for a 2030 target:

Environmental Metric	2030 Target	2024 Performance	Status
Scope 1 & 2 GHG Emissions Reduction	46%	38%	Ahead of Schedule
Hosted On-Site Renewable Energy	25 MW	3.5 MW	In Focus
Landfill Diversion	30%	22%	On Target
Properties with EV Charging Stations	35%	19%	On Track
Landlord-Controlled Water Use Intensity	10.5 gal/sqft	11.1 gal/sqft	On Target

Installed 3.5 MW of hosted on-site solar, progressing toward a 25 MW goal

The push for renewable energy is a major capital expenditure area. PECO's goal is to install 25 MW (megawatts) of hosted on-site renewable energy, primarily solar, across its neighborhood shopping centers. The current performance stands at 3.5 MW of hosted solar capacity installed. This is a clear opportunity for growth, but it's also a capital-intensive target that will require substantial investment over the next few years to meet the remaining 21.5 MW goal. The status is listed as 'In Focus,' meaning it's a priority, but the pace needs to accelerate.

This solar strategy helps the company hedge against rising electricity prices, plus it makes their properties more attractive to tenants and investors who prioritize sustainability.

19% of properties are equipped with electric vehicle (EV) charging stations

The shift to electric vehicles (EVs) is a major consumer trend, and PECO is positioning its properties to capture that traffic. Currently, 19% of their properties are equipped with EV charging stations, which is a good start but still far from their 35% target. This is a smart move, as grocery-anchored centers are ideal locations for EV charging-people shop for 30-60 minutes, which is a perfect charging window.

The installation of these stations is a direct response to consumer demand and helps future-proof the assets. The goal of reaching 35% of properties is listed as 'On Track,' suggesting a steady rollout is planned to meet this mark by 2030.

Climate-related risk assessment is integrated into the Enterprise Risk Management (ERM) framework

For a REIT, physical climate risk-like increased flooding, extreme heat, or severe storms-is a material financial risk. PECO has integrated a comprehensive climate-related risk assessment into its Enterprise Risk Management (ERM) framework. This isn't just a compliance exercise; it's about protecting asset value.

This integration means they are actively doing the following:

• Conducting climate risk scenario analysis across the portfolio.
• Aligning disclosures with globally recognized frameworks, such as the International Sustainability Standards Board (ISSB).
• Using the analysis to inform long-term investment and portfolio management decisions.
• Seeking to mitigate the impact of environmental risks (both physical and transitional).

What this estimate hides is the cost of capital improvements needed to harden properties against these risks, but the fact they are using frameworks like ISSB shows a commitment to transparency and managing risk for the long haul. This is a critical step for maintaining a competitive cost of capital.