$PECO

Phillips Edison - ARC Shopping Center REIT Inc.

CIK:0001476204|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Rental income	$ 184,451	$ 173,467	$ 370,732	$ 347,650
Fees and management income	4,054	3,316	7,499	6,099
Other property income	1,114	970	2,129	2,315
Total revenues	189,619	177,753	380,360	356,064
Operating Expenses:
Property operating	32,083	29,322	65,073	59,258
Real estate taxes	22,513	21,279	44,580	42,358
General and administrative	13,575	12,922	25,518	25,008
Depreciation and amortization	66,840	71,203	132,371	136,477
Total operating expenses	135,011	134,726	267,542	263,101
Other:
Interest expense, net	(29,394)	(27,719)	(59,166)	(53,391)
Gain (loss) on disposal of property, net	19,390	(66)	26,207	5,543
Other income (expense), net	650	(990)	(1,363)	(1,970)
Net income	45,254	14,252	78,496	43,145
Net income attributable to noncontrolling interests	(4,137)	(1,468)	(7,001)	(4,052)
Net income attributable to stockholders	$ 41,117	$ 12,784	$ 71,495	$ 39,093
Earnings per share of common stock:
Net income per share attributable to stockholders - basic (in dollars per share)	$ 0.33	$ 0.10	$ 0.57	$ 0.31
Net income per share attributable to stockholders - diluted (in dollars per share)	$ 0.33	$ 0.10	$ 0.56	$ 0.31
Comprehensive income:
Net income	$ 45,254	$ 14,252	$ 78,496	$ 43,145
Other comprehensive loss:
Change in unrealized value on interest rate swaps	(145)	(795)	(81)	(2,562)
Comprehensive income	45,109	13,457	78,415	40,583
Net income attributable to noncontrolling interests	(4,137)	(1,468)	(7,001)	(4,052)
Change in unrealized value on interest rate swaps attributable to noncontrolling interests	14	75	8	242
Reallocation of comprehensive income upon conversion of noncontrolling interests	1	3	1	4
Comprehensive income attributable to stockholders	$ 40,987	$ 12,067	$ 71,423	$ 36,777

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 78,496	$ 43,145
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of real estate assets	131,653	135,703
Depreciation and amortization of corporate assets	718	774
Net amortization of above- and below-market leases	(5,083)	(4,072)
Amortization of deferred financing expenses	1,706	2,416
Amortization of debt and derivative adjustments	1,349	1,252
Loss on extinguishment or modification of debt, net	1,080	1
Gain on disposal of property, net	(26,207)	(5,543)
Straight-line rent, net	(6,135)	(4,947)
Share-based compensation	5,786	5,367
Return on investment in unconsolidated joint ventures	347	361
Other	(464)	(396)
Changes in operating assets and liabilities:
Other assets, net	(15,068)	(11,571)
Accounts payable and other liabilities	5,404	(5,828)
Net cash provided by operating activities	173,582	156,662
CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate acquisitions, net	(268,389)	(268,108)
Capital expenditures	(50,471)	(59,356)
Proceeds from sale of real estate, net	83,380	6,438
Proceeds from secured loan receivable	3,775	0
Investment in unconsolidated joint ventures	(6,079)	(3,550)
Return of investment in unconsolidated joint ventures	786	1,334
Investment in marketable securities	(1,329)	(6,002)
Proceeds from sale of marketable securities	963	0
Insurance proceeds for property damage claims	801	122
Net cash used in investing activities	(236,563)	(329,122)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	84,183	0
Payment of offering costs	(1,068)	0
Proceeds from revolving credit facility	333,000	488,000
Payments on revolving credit facility	(283,000)	(517,000)
Proceeds from notes and loans payable, net	346,500	346,164
Payments on mortgages and loans payable	(324,155)	(44,039)
Distributions paid	(95,892)	(90,312)
Distributions to noncontrolling interests	(9,943)	(9,826)
Net cash provided by financing activities	49,625	172,987
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(13,356)	527
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:
Beginning of period	43,312	8,649
End of period	29,956	9,176
RECONCILIATION TO CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents	7,132	5,591
Restricted cash	22,824	3,585
Cash, cash equivalents, and restricted cash at end of period	29,956	9,176
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	55,089	50,717
SUPPLEMENTAL SCHEDULE OF NON-CASH ACTIVITIES:
Right-of-use (“ROU”) assets obtained in exchange for new lease liabilities	0	1,091
Secured loan receivable	0	17,395
Accrued capital expenditures	11,655	8,252
Change in distributions payable	(13,633)	(12,826)
Change in distributions payable - noncontrolling interests	(1,721)	(1,599)
Receivable for issuance of common stock, net	$ 1,942	$ 0

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Investment in real estate:
Land and improvements	$ 1,997,878	$ 1,963,735
Building and improvements	4,437,900	4,305,174
In-place lease assets	549,076	538,324
Above-market lease assets	78,645	77,551
Total investment in real estate assets	7,063,499	6,884,784
Accumulated depreciation and amortization	(2,020,828)	(1,957,569)
Net investment in real estate assets	5,042,671	4,927,215
Investment in unconsolidated joint ventures	47,675	42,561
Total investment in real estate assets, net	5,090,346	4,969,776
Cash and cash equivalents	7,132	3,544
Restricted cash	22,824	39,768
Goodwill	29,066	29,066
Other assets, net	256,157	244,284
Real estate investments and other assets held for sale	39,388	0
Total assets	5,444,913	5,286,438
Liabilities:
Debt obligations, net	2,450,755	2,375,328
Below-market lease liabilities, net	134,020	118,356
Accounts payable and other liabilities	155,303	180,332
Deferred income	35,585	23,044
Liabilities of real estate investments held for sale	1,095	0
Total liabilities	2,776,758	2,697,060
Commitments and contingencies (see Note 8)	0	0
Equity:
Preferred stock, $0.01 par value per share, 10,000 shares authorized, zero shares issued and outstanding at June 30, 2026 and December 31, 2025	0	0
Common stock, $0.01 par value per share, 1,000,000 shares authorized, 128,425 and 125,788 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	1,284	1,258
Additional paid-in capital (“APIC”)	3,762,738	3,664,205
Accumulated other comprehensive income (“AOCI”)	286	358
Accumulated deficit	(1,390,016)	(1,379,252)
Total stockholders’ equity	2,374,292	2,286,569
Noncontrolling interests	293,863	302,809
Total equity	2,668,155	2,589,378
Total liabilities and equity	$ 5,444,913	$ 5,286,438