Home Alts News Phillips Edison Amends Share Repurchases, Approves Distributions for January 2021

Phillips Edison Amends Share Repurchases, Approves Distributions for January 2021

Phillips Edison & Company, Inc., an internally managed real estate investment trust focused on grocery-anchored shopping centers, has resumed share repurchases upon a stockholder’s death, disability, or incompetency (DDI).

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Phillips Edison & Company, Inc., an internally managed real estate investment trust focused on grocery-anchored shopping centers, has resumed share repurchases upon a stockholder’s death, disability, or incompetency (DDI).

The repurchase price will be equal to the lesser of $5.75 and the company’s most recent estimated net asset value per share of common stock. The REIT’s most recent net asset value per share was $8.75, as of March 31, 2020.

The board also approved distributions for January 2021 to stockholders of record at the close of business on January 15, 2021 equal to a monthly amount of $0.02833333 per share, or $0.34 per share annualized. The January 2021 distribution is expected to be paid on February 1, 2021.

In 2019, the board suspended standard repurchases under the company’s share repurchase program, but continued DDI repurchases. In March 2020, the board also suspended DDI repurchases under the share repurchase program.

Earlier this month, Phillips Edison released the final results of its tender offer to purchase up to 17.4 million shares of common stock at $5.75 per share. A total of 13.5 million shares were tendered for a total cost of $77.6 million.

The number of shares accepted for purchase represent approximately 4.1 percent of the fully diluted share count. Following the settlement of the tender offer, the REIT will have approximately 319.7 million shares of common stock and OP units outstanding.

In November 2020, the Phillips Edison board approved a one-for-four reverse stock split, reinstated monthly distributions and announced plans for the aforementioned voluntary tender offer.

The reverse stock split is expected to take place around March 9, 2021, and as a result, every four shares of issued and outstanding common stock will be automatically combined and converted into one share of common stock. A corresponding reverse split of the outstanding OP units will also be effective at that time.

After the split, the REIT’s common stock and OP units will have an initial net asset value per share of $35.00. The common stock will have a new CUSIP number, which will be provided closer to the split date, the company said.

Phillips Edison & Company Inc. (formerly known as Phillips Edison Grocery Center REIT I Inc.) is one of the nation’s largest owners and operators of grocery-anchored shopping centers. The company oversees a portfolio of 309 properties. The company’s offering was declared effective by the SEC in August 2010 and raised approximately $1.8 billion in investor equity before closing in February 2014.

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