Phillips Edison & Company Inc. (PECO), an internally-managed real estate investment trust that invests in grocery-anchored shopping centers, has increased its estimated net asset value per share to $11.10 as of March 31, 2019.
The current valuation is an approximate 0.5 percent increase compared to the company’s previous NAV per share of $11.05 as of March 31, 2018.
Last November, PECO completed its merger with Phillips Edison Grocery Center REIT II Inc., a public non-traded REIT that it advises and manages, creating a combined company with a total enterprise value of approximately $6 billion.
“The performance of our real estate during the past 12 months, coupled with our successful merger with REIT II, led our board of directors to increase our estimated value per share to $11.10, which represents an 11.0 percent increase from our original offering price of $10.00 per share,” commented Jeff Edison, chairman and chief executive officer of PECO.
The valuation is based on the estimated value of the company’s assets less the estimated value of its liabilities, divided by the number of shares outstanding. Independent third-party firm Duff & Phelps LLC assisted with the process and provided a NAV per share range of $10.07 to $11.48.
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 manages a portfolio of 338 properties, including 300 wholly-owned properties totaling approximately 34.1 million square feet across 32 states, as of March 31, 2019. 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.