Phillips Edison & Company, Inc. (PECO): Marketing Mix Analysis [Dec-2025 Updated]

You're trying to figure out what makes a necessity-focused real estate player like Phillips Edison & Company, Inc. tick in this environment, and the numbers from late 2025 show their strategy is definitely paying off. Their core Product-grocery-anchored centers where 70% of Annual Base Rent comes from essential services-is incredibly stable, keeping anchor occupancy at 99.2% as of Q3. That stability translates directly into Price power, evidenced by record renewal rent spreads of 23.2% and a raised FFO guidance of $2.57-$2.61 per share. Keep reading; we'll break down exactly how their Place and Promotion efforts support this high-performing mix.

Phillips Edison & Company, Inc. (PECO) - Marketing Mix: Product

You're looking at the core offering of Phillips Edison & Company, Inc. (PECO), which is fundamentally about the real estate product itself. This isn't about widgets; it's about high-quality, well-located physical assets designed for stable, long-term income.

The product is defined by its anchor tenant mix. Phillips Edison & Company, Inc. focuses on grocery-anchored neighborhood shopping centers. Top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. These centers are designed to provide necessity-based goods and services, which is a key differentiator for product resilience.

Here are the key statistics defining the scale and quality of the product as of late 2025, based on the third quarter results:

• Grocery-anchored neighborhood shopping centers are the core asset.
• Portfolio includes 303 wholly-owned properties across 34.0 million square feet.
• 70% of Annual Base Rent (ABR) is from necessity-based goods and services.
• Anchor occupancy remains robust at 99.2% leased as of Q3 2025.
• Active redevelopment pipeline with 22 projects totaling $75.9 million investment.

The leasing performance speaks directly to the desirability and quality of the physical product spaces. For the third quarter of 2025, comparable new leasing rent spreads hit 24.5%, and comparable renewal rent spreads were 23.2%. Leases executed during that quarter achieved average annual rent bumps of 2.6%.

To give you a clearer picture of the portfolio composition and leasing strength, look at these numbers from the third quarter of 2025:

The development pipeline is an extension of the product strategy, focusing on enhancing existing assets or creating new ones in high-demand areas. The active redevelopment pipeline stands at 22 projects, with a total expected investment of $75.9 million. Management targets average yields between 9% and 12% on these projects. Also, year-to-date acquisitions through September 30, 2025, totaled $280.8 million, including eleven shopping centers and two land parcels.

The overall product strategy is about owning essential real estate. The company has approximately $977 million of liquidity available to support acquisition plans, which feeds directly back into growing and improving the product offering. Finance: draft 13-week cash view by Friday.

Phillips Edison & Company, Inc. (PECO) - Marketing Mix: Place

Phillips Edison & Company, Inc. (PECO) executes its distribution strategy by maintaining a focused, national footprint managed through a fully internal structure.

Properties are strategically located in 31 US states. As of September 30, 2025, the wholly-owned portfolio comprised 303 properties, totaling approximately 34.0 million square feet. This geographic spread is concentrated in what management views as top-tier Metropolitan Statistical Areas (MSAs) and growing suburban markets, aligning with the necessity-based retail focus.

The company employs a vertically integrated model, managing all centers in-house. As of September 30, 2025, Phillips Edison & Company, Inc. managed a total of 328 shopping centers, which included the 303 wholly-owned centers and 25 shopping centers owned in three institutional joint ventures. This in-house platform covers leasing, property management, acquisitions, development, and financing functions.

The acquisition strategy targets centers below replacement cost, aiming for unlevered Internal Rates of Return (IRRs) exceeding 9%. The company affirmed its full-year 2025 gross acquisition guidance to be between $350 million and $450 million.

Here's a look at the scale and deployment of capital in the distribution network:

The operational focus on essential retail drives high utilization of the existing physical assets. The leased portfolio occupancy remained high.

• Leased portfolio occupancy: 97.6% as of September 30, 2025.
• Same-center leased portfolio occupancy: 97.9% as of September 30, 2025.
• Leased anchor occupancy: 99.2% as of September 30, 2025.

Phillips Edison & Company, Inc. (PECO) - Marketing Mix: Promotion

Promotion for Phillips Edison & Company, Inc. centers on reinforcing the stability and quality of its necessity-based retail portfolio to both tenants and investors. This communication strategy is heavily data-driven, using operational excellence as the core message.

The company's leasing success directly supports its promotional narrative of tenant satisfaction and strong property demand. For the third quarter of 2025, the neighbor retention rate stood at a high of 94%, which directly translates to minimized re-leasing costs and operational continuity. This high retention supported record-high comparable renewal rent spreads of 23.2% during the same period. New leasing activity was also robust, achieving comparable new leasing rent spreads of 24.5%. The average annual rent bump across executed new and renewal leases for the quarter was 2.6%.

Investor relations is a key promotional pillar, ensuring the investment community understands the portfolio's resilience. Phillips Edison & Company, Inc. maintains a consistent cadence of communication, including hosting the Q3 2025 Earnings Conference Call on October 24, 2025, and a PECO GROW Update for Financial Advisors and Retail Investors on September 24, 2025. Further engagement included participation in the BofA Securities 2025 Global Real Estate Conference on September 10, 2025, and the release of a November 2025 Investor Presentation.

The marketing message consistently emphasizes the stability derived from the portfolio's composition. The focus is squarely on grocery-anchored neighborhood shopping centers, which account for 95% of the company's Annual Base Rent (ABR). Furthermore, 84% of ABR is derived from properties anchored by the #1 or #2 grocery anchor by sales, signaling top-tier tenant quality.

Leasing efforts are strategically directed toward high-demand concepts that benefit from the necessity-based traffic flow. While the overall portfolio occupancy was strong at 97.6% at the end of Q3 2025, anchor occupancy was even higher at 99.2%, with same-store inline occupancy at 95%. This environment supports attracting and retaining tenants in high-demand categories, such as Quick Service Restaurants (QSRs) and fast-casual dining, which benefit from the consistent foot traffic.

The promotional material highlights the sheer volume of consumer engagement across the portfolio:

• Total trips made to Phillips Edison & Company, Inc. centers in the last 12 months (as of Q1 2025) reached approximately 520 million.
• Average total trips per week to each center was approximately 31,000.
• Grocer sales per square foot reached $737 as of Q1 2025, representing 41% growth since 2019.

The leasing performance metrics, which serve as promotional evidence of pricing power and demand, are detailed below for the third quarter of 2025:

The operational stability metrics reinforce the low-risk profile being promoted to investors:

Phillips Edison & Company, Inc. (PECO) - Marketing Mix: Price

You're looking at how Phillips Edison & Company, Inc. (PECO) is setting the price for its real estate product-the grocery-anchored neighborhood shopping centers. This isn't about setting a sticker price on a widget; it's about maximizing rental income through lease structuring, which is where their pricing power really shows.

The evidence of strong pricing strategy is clear in the latest leasing activity. For the third quarter of 2025, Phillips Edison & Company, Inc. (PECO) achieved record-high comparable renewal rent spreads of 23.2%. That's a significant increase over expiring leases for tenants choosing to stay put. Furthermore, new leasing spreads are also strong at 24.5%, reflecting pricing power in securing new tenants or expanding existing ones.

This ability to command higher rents directly supports the forward-looking financial targets. Phillips Edison & Company, Inc. (PECO) raised its full-year 2025 Core FFO guidance to $2.57-$2.61 per share. This upward revision suggests management is confident that the current pricing environment is sustainable enough to drive higher core funds from operations (FFO) per share.

To give you a clearer picture of the pricing execution across different lease types in Q3 2025, here's a quick breakdown of the spreads achieved:

Beyond the immediate lease-up, the structure of new agreements is set for long-term value capture. New leases executed include average annual rent bumps of 2.6% for long-term growth. This built-in escalation is a key component of the pricing strategy, ensuring that the revenue stream grows predictably over the life of the lease, which is crucial for a REIT.

The capital deployment strategy also reflects confidence in the pricing of their assets. Phillips Edison & Company, Inc. (PECO) has set its acquisition guidance at $350 million to $450 million for 2025. Securing this level of investment implies that the expected unlevered returns on these new properties meet or exceed their internal hurdle rates, which are benchmarked against the strong rental rate growth seen in the existing portfolio.

You can see the operational strength underpinning these pricing decisions through a few key metrics from the same period:

• Portfolio occupancy ended Q3 2025 at 97.6% leased.
• Third quarter NAREIT FFO was $0.64 per diluted share.
• Third quarter Core FFO was $0.65 per diluted share.
• Year-to-date gross acquisitions reached $376 million at PECO's share.