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Phillips Edison & Company Releases Preliminary Results of Tender Offer

Phillips Edison & Company, Inc., an internally managed real estate investment trust focused on grocery-anchored shopping centers, has released the preliminary results of its tender offer.

Phillips Edison & Company, Inc., an internally managed real estate investment trust focused on grocery-anchored shopping centers, has released the preliminary results of its tender offer to purchase up to 17.4 million shares of common stock at $5.75 per share. The offer expired on December 29, 2020.

Based on the preliminary count, approximately 13.5 million shares were tendered, and the REIT expects to purchase 100 percent of the tendered shares for approximately $77.7 million. Payments for the shares expected to be initiated on January 7, 2021.

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, 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.

As previously reported, the dividend reinvestment plan was also reinstated by the board. Stockholders participating in the DRIP can reinvest their monthly distributions at the current NAV per share of $8.75, starting with the upcoming distribution.

The company’s board adjusted the dates for the upcoming distribution. The record date is the close of business on December 31, 2020 and the payment date is January 12, 2021.

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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