Phillips Edison Trades at 54.24 P/E with 3.6% Yield and 0.53 Beta
Phillips Edison & Company reported $661.39 million revenue and $62.69 million net income, trading at a 54.24 price/earnings ratio compared to peer Federal Realty’s 26.32. With a 0.53 beta, 80.7% institutional ownership and a 3.6% dividend yield, PECO underperforms Federal Realty on 15 of 18 metrics.
1. Analyst Consensus and Price Targets
Nine brokerages currently cover Phillips Edison & Company, Inc., assigning an average recommendation of Hold. Of these, five maintain Hold ratings while four issue Buy ratings. The consensus 12-month price objective stands at $38.86, reflecting an implied upside of approximately 8.5% from recent levels. Notable recent updates include Barclays reaffirming a Positive view with a $41.00 target, Morgan Stanley raising its objective from $36.00 to $37.00 alongside an Equal Weight rating, and Mizuho setting a $39.00 target in its January note.
2. Recent Quarterly Results and Guidance
In its latest quarterly report, Phillips Edison & Company delivered revenue of $182.7 million, a 10.4% increase year-over-year, while reporting earnings per share of $0.20, falling short of analysts’ consensus of $0.64. The mismatch was driven by higher operating expenses tied to acquisition integration. Management has issued full-year 2025 EPS guidance of $0.62 to $0.65, and the current sell-side consensus projects $2.55 in EPS for the year, implying mid-single-digit growth versus 2024 results.
3. Dividend Profile and Payout Sustainability
Phillips Edison & Company pays a monthly dividend that annualizes to $1.30 per share, yielding approximately 3.6%. The payout represents roughly 197% of last year’s reported earnings, indicating that the distribution exceeds current net income and relies on external financing or asset sales to maintain the dividend. The company initiated its dividend growth streak one year ago, reflecting a more nascent track record compared to peers in the grocery-anchored REIT space.
4. Institutional and Insider Ownership Trends
Institutional investors hold 80.7% of Phillips Edison & Company’s outstanding shares, underscoring strong interest from pension funds, mutual funds, and endowments. Recent 3rd-quarter filings show significant position increases by firms such as Jones Financial Companies LLC (up 2,590%) and Hantz Financial Services Inc. (up 418%), while new stakes emerged from Quantbot Technologies LP and Caitong International Asset Management. Insider ownership remains modest at 8.0%, suggesting limited insider selling pressure but potentially restrained insider buying activity.