PECO Strengthens National Grocery-Anchored Shopping Center Platform with Key Transactions in 2018
CINCINNATI--(BUSINESS WIRE)--Mar 4, 2019--Phillips Edison & Company, Inc. (“PECO” or the “Company”), an internally-managed real estate investment trust (“REIT”) and one of the nation’s largest owners and operators of grocery-anchored shopping centers, is pleased to announce that it enjoyed a banner year in 2018, completing a series of strategic transactions that are expected to materially strengthen the Company’s portfolio and financial growth profile. Moreover, the Company launched a number of initiatives to fuel the professional development of its talented workforce, further ingrain its shopping centers within the communities they serve, and advance its position as a leader in tech innovation. As a result of these activities, PECO is even better positioned to meet the demands of growing national, regional and local retailers.
Most notably in 2018, PECO executed a 100 percent stock-for-stock merger with Phillips Edison Grocery Center REIT II, creating a $6 billion internally-managed REIT with increased market prominence, a more diversified portfolio and increased financial strength. Additionally, the Company sponsored a new REIT that launched a $1.7 billion initial public offering. Finally, PECO and the new REIT announced the formation of two joint ventures with Northwestern Mutual – Grocery Retail Partners I and Grocery Retail Partners II, respectively. Together, the two partnerships total $414.5 million in asset value and comprise 20 high-quality grocery-anchored shopping centers, representing the largest shopping center recapitalization of the year and illustrating the strength of the grocery-anchored retail segment, as well as validating PECO’s leading position in the space.
“PECO remains nimble in a competitive retail environment. Our team’s ability to adapt to shifting market conditions and changing technologies allows us to lead the way in all facets of the business, which is critical to our continued growth,” said Jeff Edison, Chairman, President and Chief Executive Officer of PECO. “To support ongoing development both externally and internally, we remain focused on harnessing innovation and developing our talented team of professionals.”
Additionally, PECO continues to focus on growing its national footprint of market-leading grocery-anchored shopping centers, having completed a series of strategic acquisitions in 2018, including recent transactions involving Cinco Ranch in Houston, Texas, and Atlantic Plaza in North Reading, Massachusetts.
- Cinco Ranch, a 97,761-square-foot shopping center in an affluent suburb of Houston anchored by HomeGoods and shadow anchored by Target, is located at the heavily trafficked intersection of Commercial Center Boulevard and Westheimer Parkway and features a dynamic roster of national and regional tenants, including OfficeMax, Michaels, Which Wich, Marco’s Pizza, Supercuts and Massage Envy.
- Atlantic Plaza is a 126,384-square-foot shopping center anchored by a 64,492-square-foot Shop & Shop. Located in North Reading, Massachusetts, Atlantic Plaza sits in a highly affluent area that boasts an average household income greater than $146,500. Atlantic Plaza’s dynamic mix of tenants includes Massage Envy, Orangetheory, Starbucks, Supercuts, Weight Watchers, and Winter Hill Bank.
“Year after year, our outstanding acquisitions team does an excellent job executing on our strategy of acquiring well-located shopping centers in markets with strong long-term economic fundamentals,” said David Wik, PECO Senior Vice President of Acquisitions. “With an active acquisitions pipeline heading into 2019 and a more robust platform than ever, we believe we are well positioned to continue executing on our strategy, further positioning PECO as the leading force in grocery-anchored retail.”
Internally, PECO continues to focus on evolving PECO Networking Opportunity for Women (“PECO NOW”), which seeks to support the growth of female associates and bolster the number of women in leadership positions. The Company’s IT team remains a dominant force in advancing PECO’s role as a leader in innovation, harnessing the transformative power of robotics, machine learning and data science to optimize decision-making procedures, enhance cross-functional data sharing, heighten analytical precision, and increase productivity through automation of labor-intensive processes.
About Phillips Edison & Company
Phillips Edison & Company, Inc. (“PECO”), an internally-managed REIT, is one of the nation’s largest owners and operators of grocery-anchored shopping centers. PECO’s diversified portfolio of well-occupied neighborhood shopping centers features a mix of national and regional retailers selling necessity-based goods and services in fundamentally strong markets throughout the United States. Through its vertically-integrated operating platform, the company manages a portfolio of 339 shopping centers, including 304 wholly-owned centers comprising approximately 34.4 million square feet across 32 states (as of November 16, 2018). PECO has generated strong operating results over its 27+ year history and has partnered with leading institutional commercial real estate investors including TPG Real Estate and the Northwestern Mutual Life Insurance Company. The company remains exclusively focused on creating great grocery-anchored shopping experiences and improving the communities it serves one center at a time.
Forward Looking Statements
Certain statements contained in this press release may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). PECO intends for all such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such statements include, in particular, statements about PECO’s plans, strategies, and prospects and are subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of PECO’s performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “expect,” “strategy,” “believe,” “continue,” “seeks,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. PECO makes no representation or warranty (express or implied) about the accuracy of any such forward-looking statements contained in this release, and does not intend, and undertakes no obligation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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Phillips Edison & Company
KEYWORD: UNITED STATES NORTH AMERICA OHIO
INDUSTRY KEYWORD: DEPARTMENT STORES DISCOUNT/VARIETY RESTAURANT/BAR HOME GOODS OFFICE PRODUCTS REIT RETAIL FASHION SPECIALTY CONSTRUCTION & PROPERTY SUPERMARKET COMMERCIAL BUILDING & REAL ESTATE
SOURCE: Phillips Edison & Company, Inc.
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PUB: 03/04/2019 09:43 AM/DISC: 03/04/2019 09:43 AM