Evercore ISI Highlights Necessity-Based Tenants as Key Strength for Phillips Edison & Company, Inc. (PECO)

Phillips Edison & Company, Inc. (NASDAQ:PECO) is included among 10 Best Monthly Dividend Stocks to Buy Now.

On January 15, Evercore ISI started coverage of Phillips Edison & Company, Inc. (NASDAQ:PECO) with an Outperform rating and a $41 price target. The firm highlighted the company’s focus on grocery-anchored shopping centers and its concentration in necessity-based tenants, which tend to hold up well across economic cycles. With solid fundamentals and ongoing leasing opportunities, Evercore believes PECO is positioned for continued growth.

In its business update and investor presentation, Phillips Edison pointed to portfolio occupancy of 98%, supported by steady demand from its tenant base, which the company refers to as “Neighbors.” Management emphasized the experience of its team, noting decades of operating through different market cycles and deep local knowledge built through long-standing tenant relationships. PECO also outlined a growing pipeline of ground-up outparcel developments and repositioning projects.

The company also stressed its more than 30 years in the grocery-anchored shopping center space, saying that experience shapes how it evaluates quality and long-term performance at the property level. PECO’s centers are located in markets with an average median household income of $92K within a three-mile radius, about 15% above the national average. Population growth in these markets has outpaced the US average by roughly 5% over the past three years. Management believes these demographic trends support rent growth and long-term value creation, with portfolio income projected to rise 26% over the next five years.

Phillips Edison & Company, Inc. (NASDAQ:PECO) is one of the largest owners and operators of grocery-anchored shopping centers in the U.S.

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