Phillips Edison Grocery Center REIT I Reports First Quarter 2016 Results
Phillips Edison Grocery Center REIT I Inc., a publicly registered, non-traded real estate investment trust, released its operating results for the quarter ended March 31, 2016.
For the quarter ended March 31, 2016, the REIT generated net income of $2.3 million, compared to a net income of $5 million for the 2015 comparable period. Modified funds from operations totaled $25.8 million during the quarter, compared to MFFO of $29.2 million in 2015. The difference in net income and MFFO for the comparable reporting periods is primarily related to a $4.6 million increase in asset management fees resulting from changes to the advisory fee structure, the company indicated.
As of March 31, 2016, the REIT’s portfolio consisted of 147 properties, totaling approximately 15.6 million square feet located in 28 states.
Same-center net operating income increased 5.3 percent for the quarter, compared to the same quarter in 2015. Same-center NOI represents the net operating income for the 133 properties that were owned and operational for the entire portion of both comparable reporting periods, except for those properties classified as redevelopment properties. The company said that the positive growth was primarily due to growth in minimum rent, an improvement in occupancy of 1 percent, and an increase in tenant recovery income.
Phillips Edison Grocery Center REIT I reported leased portfolio occupancy of 95.8 percent, compared to leased portfolio occupancy of 95.3 percent in the first quarter of 2015.
The board of directors reaffirmed an estimated value of $10.20 per share of its common stock.
The company’s debt to enterprise value was 29.8 percent. Debt to total enterprise value is calculated as net debt (total debt, excluding below-market debt adjustments and deferred financing costs, less cash and cash equivalents) as a percentage of enterprise value (equity value, calculated as total common shares and OP units outstanding multiplied by the estimated value per share of $10.20, plus net debt).
The debt had a weighted-average interest rate of 3.5 percent, and a weighted-average maturity of 3.5 years. 82.2 percent of the debt was fixed-rate, and 17.8 percent was variable-rate.
Gross distributions of approximately $30.3 million were paid, including $15.3 million of distributions reinvested through the dividend reinvestment plan, for net cash distributions of $15.1 million.
Operating cash flow for the quarter was $25 million.
Phillips Edison Grocery Center REIT I focuses on investing in grocery-anchored neighborhood shopping centers that have a mix of national and regional retailers selling necessity-based goods and services, in strong demographic markets throughout the United States.
