Phillips Edison

To be the leading owner of grocery-anchored centers by creating a premier portfolio essential to communities.

Phillips Edison SWOT Analysis

Updated: October 6, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Phillips Edison was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Phillips Edison SWOT analysis reveals a company executing at a high level, capitalizing on its focused strategy. Strengths like record occupancy and strong leasing are undeniable and directly support its mission to lead the grocery-anchored space. However, the analysis also highlights key vulnerabilities, particularly external threats from the macroeconomic environment, such as persistent high interest rates that could stifle its acquisition-led growth. The primary challenge is to leverage its strong operational foundation and balance sheet (Strengths) to seize acquisition opportunities in a slow market (Opportunities) while mitigating the clear and present danger of rising capital costs (Threats). The path forward requires disciplined capital allocation and doubling down on the data-driven operational efficiencies that differentiate PECO from its peers. This strategic focus will be critical to navigating the current market uncertainty and solidifying its leadership position for the long term.

Kimco Realty Regency Centers Federal Realty Investment Trust Brixmor Property Group Site Centers

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be the leading owner of grocery-anchored centers by creating a premier portfolio essential to communities.

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Strengths

OCCUPANCY: Record 97.8% portfolio occupancy shows immense tenant demand
LEASING: Executed 1.1M sq ft of new/renewal leases in Q4 '23 alone
NOI GROWTH: Achieved 3.8% Same-Center NOI growth, beating expectations
BALANCE SHEET: Investment-grade rating provides access to cheaper capital
FOCUS: Singular strategy on grocery-anchored centers creates expertise

Weaknesses

DEBT: Net debt to Adjusted EBITDAre of 5.1x is manageable but monitored
SCALE: Smaller market cap vs. diversified REITs like Kimco or Regency
INNOVATION: Pace of integrating new tech like AI into operations is unclear
GEOGRAPHY: High concentration in Sun Belt states poses hurricane/climate risk
TENANT CONCENTRATION: Top tenants like Kroger/Publix have significant leverage

Opportunities

ACQUISITIONS: $400M+ liquidity to acquire assets in a buyer's market
REDEVELOPMENT: Unlock value through targeted redevelopments of owned assets
PINE: Commercialize or expand PINE data services for ancillary revenue
SUBURBAN GROWTH: Capitalize on population shifts to target Sun Belt markets
NON-TRADITIONAL: Lease space to growing medical, fitness, and QSR tenants

Threats

INTEREST RATES: Higher-for-longer rates increase debt service costs
TRANSACTION MARKET: Slowdown in property sales limits disposition/recycling
COMPETITION: Increased bidding from private equity for grocery assets
CONSUMER SPENDING: A sharp recession could impact even necessity-based retail
CONSTRUCTION COSTS: Inflation in materials/labor impacts redevelopment budgets

Key Priorities

LEASING: Capitalize on record demand to drive rental rate growth further
ACQUISITIONS: Use balance sheet strength to acquire high-quality assets
OPERATIONS: Deepen PINE integration to optimize tenant mix and NOI
RISK: Proactively manage interest rate exposure and tenant concentration

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Phillips Edison OKR

Updated: October 6, 2025 • 2025-Q4 Analysis

The Phillips Edison OKR plan is a masterclass in focus, translating strategic priorities into tangible outcomes. The objectives are concise, powerful, and directly aligned with the core mission. This plan avoids vanity metrics, focusing instead on the fundamental drivers of value in real estate: leasing, growth, and operational efficiency. By linking a bold objective like 'FORTIFY PORTFOLIO' directly to disciplined acquisitions and AI-driven underwriting, the plan creates a clear path from strategy to execution. This is not just a to-do list; it's a framework for disciplined execution that empowers teams to make decisions that compound value and solidify PECO's leadership in the grocery-anchored space for years to come.

Kimco Realty Regency Centers Federal Realty Investment Trust Brixmor Property Group Site Centers

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be the leading owner of grocery-anchored centers by creating a premier portfolio essential to communities.

DRIVE NOI GROWTH

Capitalize on record demand to maximize portfolio income.

SPREADS: Achieve blended rent spreads of 15-20% on all new and renewal leases executed this period
OCCUPANCY: Increase portfolio-wide leased occupancy from 97.8% to a new record high of 98.2%
RETENTION: Maintain a tenant retention rate above 90% through proactive relationship management
ANCILLARY: Grow non-rental income streams like EV charging and paid parking by 25% across 50 centers

FORTIFY PORTFOLIO

Use balance sheet strength to acquire high-quality assets.

ACQUISITIONS: Deploy $200M of capital to acquire 4-6 grocery-anchored centers in target growth markets
DISPOSITIONS: Recycle $50M in capital by selling 3-5 non-core or slow-growth assets above book value
UNDERWRITING: Decrease average underwriting time by 20% by integrating new data sources into our models
PIPELINE: Identify and rank a target list of 50 off-market acquisition opportunities via broker networks

OPTIMIZE OPERATIONS

Deepen data integration to enhance property performance.

PINE: Launch PINE 2.0 dashboard with predictive tenant mix modeling for the national leasing team
MAINTENANCE: Reduce reactive maintenance work orders by 15% via a predictive analytics pilot at 25 centers
ENERGY: Lower utility costs by 5% across the portfolio through smart meter and AI-driven HVAC retrofits
TALENT: Hire 2 new data scientists to build and refine machine learning models for leasing and operations

MITIGATE RISK

Proactively manage financial and tenant-related risks.

DEBT: Extend or refinance 100% of debt maturing in the next 18 months, locking in favorable terms
TENANTS: Reduce exposure to any single non-grocery tenant to less than 2.0% of annual base rent
WATCHLIST: Resolve 75% of leases on the internal tenant 'watchlist' through proactive renewal or backfilling
INSURANCE: Complete a full portfolio insurance review to ensure adequate coverage for climate-related risks

METRICS

Same-Center NOI Growth: Achieve 3.5-4.5% for FY2025
Core FFO per Share: Grow by 4-6% YoY
Portfolio Occupancy: Maintain >97.5%

VALUES

Do the Right Thing
Have a Vested Interest
Be a Great Citizen
Focus on a Winning Strategy
Never Be Satisfied

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Phillips Edison Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Phillips Edison & Co. Q4 2023 Earnings Release and Supplemental Report
Phillips Edison & Co. Investor Relations Website
Company 10-K Filings with the SEC
Yahoo Finance for market data and financials
NAREIT and ICSC for industry context and competitor analysis

Kimco Realty Regency Centers Federal Realty Investment Trust Brixmor Property Group Site Centers

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be the leading owner of grocery-anchored centers by creating a premier portfolio essential to communities.

Toggle Theme

What Went Well

LEASING: Same-center NOI growth of 3.8% exceeded the high end of guidance
OCCUPANCY: Anchor and in-line occupancy both reached record highs in Q4 '23
BALANCE SHEET: Successfully extended debt maturities, mitigating near-term risk
DISPOSITIONS: Sold non-core assets at attractive pricing, recycling capital
GUIDANCE: Issued strong 2024 guidance, signaling confidence in the business

Not So Well

TRANSACTIONS: Overall acquisition volume was slower due to market conditions
G&A EXPENSE: General and administrative expenses saw a slight uptick YoY
TENANT BANKRUPTCIES: Monitored fallout from Rite Aid and Bed Bath & Beyond
INTEREST EXPENSE: Higher interest rates are a growing headwind on earnings
STOCK PERFORMANCE: Share price has been relatively flat despite strong ops

Learnings

STRATEGY: The grocery-anchored strategy is highly resilient in this economy
OPERATIONS: A focus on operations can drive growth even in a slow mkt
DEMAND: Demand for well-located retail space remains exceptionally strong
CAPITAL: A strong balance sheet is a critical competitive advantage now
RISK: Proactive management of tenant risk (e.g., Rite Aid) pays off

Action Items

LEASING: Push renewal spreads aggressively while demand is high
ACQUISITIONS: Remain disciplined but be ready to act on quality opportunities
DEBT: Continue to monitor the capital markets for refinancing opportunities
TENANTS: Backfill any potential vacancies from at-risk tenants proactively
INVESTORS: Enhance communication of operational success to the stock market

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Phillips Edison Market

AI-Powered Insights

Claude

Gemini

GPT

Phillips Edison & Co. Q4 2023 Earnings Release and Supplemental Report
Phillips Edison & Co. Investor Relations Website
Company 10-K Filings with the SEC
Yahoo Finance for market data and financials
NAREIT and ICSC for industry context and competitor analysis

Founded: 1991
Market Share: Largest U.S. owner of solely grocery-anchored centers by GLA
Customer Base: National & regional grocers, retailers, service providers
Category:
Retail REIT
SIC Code: 6798 Real Estate Investment Trusts
NAICS Code: 525930 Finance and InsuranceT
Location: Cincinnati, Ohio
Zip Code: 45242
Congressional District: OH-1 CINCINNATI
Employees: 300

Competitors

Kimco Realty Request Analysis

Regency Centers Request Analysis

Federal Realty Investment Trust Request Analysis

Brixmor Property Group Request Analysis

Site Centers View Analysis

Products & Services

No products or services data available

Distribution Channels

Phillips Edison Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Phillips Edison & Co. Q4 2023 Earnings Release and Supplemental Report
Phillips Edison & Co. Investor Relations Website
Company 10-K Filings with the SEC
Yahoo Finance for market data and financials
NAREIT and ICSC for industry context and competitor analysis

Problem

Retailers need stable, high-traffic locations
Communities need convenient access to goods/svcs
Investors seek resilient, income-producing assets

Solution

Well-located, grocery-anchored shopping centers
Professional property management and leasing
A diversified portfolio of necessity-based retail

Key Metrics

Same-Center NOI Growth
Portfolio Occupancy Rate
Core Funds From Operations (FFO) per Share

Unique

Singular focus on grocery-anchored centers
Proprietary PINE data platform for leasing
Strong relationships with leading US grocers

Advantage

Recession-resistant business model
Deep operational expertise in a specific niche
Scale and access to capital as a public REIT

Channels

Internal National Accounts Team
Regional Leasing Directors
External Broker Network

Customer Segments

National Grocers (e.g., Kroger, Publix)
National Retailers (e.g., TJX, Ross)
Local/Regional small business tenants

Costs

Property operating expenses (CAM, taxes)
Interest expense on debt
General & Administrative (G&A) salaries

Phillips Edison Product Market Fit Analysis

Updated: October 6, 2025

Phillips Edison provides retailers with access to America's most essential consumers by operating the nation's largest portfolio of exclusively grocery-anchored shopping centers. Its data-driven platform ensures a thriving tenant mix and consistent foot traffic in high-growth suburban markets, delivering stability and growth for its partners through any economic cycle. This singular focus creates resilient, community-centric retail hubs.

DRIVING TRAFFIC: We deliver consistent, necessity-driven foot traffic to your storefront daily.

OPERATIONAL EXCELLENCE: Our data-driven approach ensures an optimal tenant mix and well-managed centers.

STRATEGIC PARTNERSHIP: We invest in high-growth suburban markets to align our success with yours.

Before State

Unreliable foot traffic for retailers
Fragmented, inconsistent property mgmt
High risk from non-essential retail mix

After State

Stable, predictable consumer traffic
Professional, data-driven management
Resilient, necessity-focused tenant mix

Negative Impacts

Volatile sales and store closures
Poor tenant experience, high turnover
Vulnerability to economic downturns

Positive Outcomes

Consistent retailer revenue and growth
High tenant retention and satisfaction
Strong performance through economic cycles

Key Metrics

Portfolio Occupancy

97.8% (Q4 '23)

Same-Center NOI Growth

3.8% (Q4 '23)

Lease Renewal Rate

~95%

G2 Reviews

N/A (B2B Real Estate)

Net Promoter Score (NPS)

Not publicly disclosed

Requirements

Prime locations in suburban markets
Strong grocery anchor tenant
Best-in-class property operations

Why Phillips Edison

Disciplined acquisitions in growth MSAs
Leveraging PINE for optimal tenant mix
Proactive leasing and mgmt teams

Phillips Edison Competitive Advantage

Our singular focus on grocery anchors
Proprietary data drives leasing decisions
Scale provides access to best tenants

Proof Points

Industry-leading 97.8% occupancy rate
15 consecutive quarters of NOI growth
Investment grade rated balance sheet

Phillips Edison Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Phillips Edison & Co. Q4 2023 Earnings Release and Supplemental Report
Phillips Edison & Co. Investor Relations Website
Company 10-K Filings with the SEC
Yahoo Finance for market data and financials
NAREIT and ICSC for industry context and competitor analysis

Strategic pillars derived from our vision-focused SWOT analysis

Focus exclusively on necessity-based retail centers

Target high-growth, affluent suburban markets

Leverage PINE data for superior leasing/ops

Maintain investment-grade balance sheet

What You Do

Owns and operates grocery-anchored shopping centers

Target Market

Necessity-based retailers and local service providers

Differentiation

Exclusive focus on grocery-anchored centers
Proprietary data platform (PINE) for leasing
Strong balance sheet and operational scale

Revenue Streams

Rental income from tenants
Expense reimbursements (CAM)
Fee income from unconsolidated JVs

Phillips Edison Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Phillips Edison & Co. Q4 2023 Earnings Release and Supplemental Report
Phillips Edison & Co. Investor Relations Website
Company 10-K Filings with the SEC
Yahoo Finance for market data and financials
NAREIT and ICSC for industry context and competitor analysis

Company Operations

Organizational Structure: Functional structure with regional leasing/ops teams
Supply Chain: Partnerships with construction, maintenance, and mgmt vendors
Tech Patents: Proprietary PINE data analytics platform
Website: https://www.phillipsedison.com/

Top Clients

Board Members

Phillips Edison Competitive Forces

Threat of New Entry

MODERATE: High capital requirements to build a portfolio are a barrier, but smaller players can acquire individual assets.

Supplier Power

LOW: PECO is the 'supplier' of space. For vendors (construction, services), power is low due to the scale of PECO's portfolio.

Buyer Power

MODERATE: Large national tenants (Kroger) have significant negotiating power. However, high demand for prime space mitigates this.

Threat of Substitution

MODERATE: E-commerce is a long-term substitute, but PECO's focus on services/necessity goods provides a strong defense.

Competitive Rivalry

HIGH: Fragmented market but intense competition from large public REITs (Kimco, Regency) and private equity for quality assets.

Analysis of AI Strategy

Updated: October 6, 2025 • 2025-Q4 Analysis

The Phillips Edison AI SWOT analysis underscores a significant, untapped opportunity. PECO's greatest asset for AI is its proprietary PINE dataset—a rare advantage in the real estate sector. This positions the company to build powerful predictive models for leasing and operations, directly accelerating its core mission. The primary obstacles are internal: securing elite AI talent and integrating advanced technology with potentially legacy systems. The strategic imperative is clear: PECO must treat its data as a core asset and invest in the talent and infrastructure to refine it with AI. By focusing AI development on enhancing its leasing decisions and optimizing property operations, PECO can create a durable competitive moat that is difficult for less-focused competitors to replicate, transforming its operational expertise into a formidable, technology-driven advantage.

Kimco Realty Regency Centers Federal Realty Investment Trust Brixmor Property Group Site Centers

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be the leading owner of grocery-anchored centers by creating a premier portfolio essential to communities.

Strengths

DATA: Possesses a massive, proprietary dataset on leasing via PINE
FOCUS: Niche focus simplifies AI model training vs diversified REITs
SCALE: National portfolio provides diverse data for robust AI analysis
LEADERSHIP: Management's data-first mindset is conducive to AI adoption
TENANTS: Direct relationships with thousands of tenants for data gathering

Weaknesses

TALENT: Potential shortage of in-house AI/ML engineering expertise
SYSTEMS: Legacy real estate software may hinder advanced AI integration
BUDGET: AI development costs compete with acquisitions for capital
CULTURE: Risk of cultural resistance from traditional leasing/ops teams
DATA STRUCTURE: Data may not yet be fully structured for optimal AI use

Opportunities

LEASING: AI to predict tenant success, optimize rent, and reduce vacancy
OPERATIONS: AI for predictive maintenance and optimizing energy consumption
MARKETING: Hyper-personalize marketing to shopping center customers
ACQUISITIONS: AI models to identify undervalued assets and submarkets
RISK: Use AI to model tenant credit risk and macroeconomic impacts

Threats

COMPETITION: Larger REITs with bigger budgets may outpace PECO in AI
PRIVACY: Navigating complex data privacy laws (CCPA, etc.) is a risk
COST: High cost of AI talent and infrastructure could impact FFO
BIAS: AI models could perpetuate biases in tenant selection or marketing
RELIANCE: Over-reliance on flawed AI models could lead to poor decisions

Key Priorities

PINE: Evolve the PINE platform with predictive AI leasing capabilities
OPERATIONS: Pilot AI for energy management and predictive maintenance
ACQUISITIONS: Develop AI models to enhance underwriting and market selection
TALENT: Invest in hiring or training a dedicated AI/data science team

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Phillips Edison Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Phillips Edison & Co. Q4 2023 Earnings Release and Supplemental Report
Phillips Edison & Co. Investor Relations Website
Company 10-K Filings with the SEC
Yahoo Finance for market data and financials
NAREIT and ICSC for industry context and competitor analysis

Profit: $42.2 million Net Income (FY 2023)

Market Cap: $4.1 Billion (as of early 2024)

Stock Performance

Annual Report: View Report

Debt: $2.3 Billion total debt (end of 2023)

ROI Impact: Higher rates increase cost of capital, potentially slowing acquisition ROI

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

PECO scores as a strong Market Leader. Its North Star is category-defining, not world-shaping, capping its ambition. Achievability is high due to strong OKR alignment with its SWOT. The SWOT itself shows more upside than downside, reflecting operational strength against market headwinds. The AI leverage potential via its PINE dataset is a significant, yet-to-be-fully-tapped asset. The growth multiplier is constrained by market maturity but reflects a high probability of continued, steady execution.

SWOT Factors

Upside: 83.3 Risk: 60.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Evolve PINE into a predictive AI leasing engine

Leverage balance sheet for disciplined, accretive acquisitions

Deepen operational efficiencies to drive organic NOI growth

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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