AFFO improved to $83.9M in 2026Q2, covering dividends 2.6x, but maintenance capex consumes roughly 30% of AFFO, and operating cash flow exceeded net income by $77M in the quarter.
Phillips Edison & Co. (PECO) cash flow statement — 14-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 365.07M | 348.15M | 334.71M | 290.97M | 290.89M | 262.9M | 210.58M | 226.88M | 153.29M | 108.86M | 103.08M | 106.07M | 75.67M | 18.54M | 4.03M |
| Operating CF Growth % | 16.37% | 4.02% | 15.03% | 0.03% | 10.65% | 24.85% | -7.18% | 48% | 40.81% | 5.61% | -2.83% | 40.18% | 308.15% | 359.71% | - |
| Operating CF / Revenue % | 48.62% | 47.54% | 50.61% | 47.69% | 50.56% | 49.34% | 42.28% | 42.27% | 35.62% | 34.94% | 39.99% | 43.81% | 40.2% | 25.34% | 22.98% |
| Net Income | 143.68M | 122.97M | 62.69M | 56.85M | 54.53M | 17.23M | 5.46M | -72.83M | 46.98M | -41.72M | 9.04M | 13.56M | -22.64M | -12.35M | -3.35M |
| Depreciation & Amortization | 257.7M | 257.73M | 253.02M | 236.44M | 231.9M | 217.85M | 221.51M | 232.69M | 187.33M | 128.94M | 103.28M | 98.37M | 76.55M | 29.24M | 8.24M |
| Stock-Based Compensation | 12.1M | 11.68M | 9.7M | 9.4M | 15.41M | 16.39M | 5.86M | 7.72M | 5.1M | 27.44M | 0 | 0 | 27.85M | 0 | 0 |
| Other Non-Cash Items | -68.1M | -41.55M | -429K | -2.31M | -10.75M | 26.39M | 5.38M | 71.58M | -66.23M | 20.61M | -5.31M | 1.64M | 27.09M | 1.52M | -866K |
| Working Capital Changes | 5.05M | -2.68M | 9.74M | -9.41M | -192K | 4.01M | -15.89M | -12.28M | -19.88M | 1.03M | -3.94M | -7.5M | -5.33M | 126K | 943K |
| Cash from Investing | -299.73M | -392.29M | -392.94M | -353.39M | -331.25M | -180.49M | -44.09M | 64.18M | -258.87M | -620.75M | -226.22M | -110.77M | -715.77M | -776.22M | -198.48M |
| Acquisitions (Net) | -278M | -11.83M | -6.58M | 1.97M | 4.15M | 5.04M | 3.45M | -11.69M | -201.67M | -456.7M | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -3.64M | -8.31M | -4.08M | 0 | -3M | -8.51M | -41.48M | 0 | -87.07M | -159.7M | -201.11M | -91.17M | 0 | 0 | 0 |
| Sale of Investments | 963K | 133K | 5.85M | 400K | 52.02M | 75.03M | 57.9M | 0 | 78.65M | 37.8M | 1.01M | 2.27M | 520K | 0 | 0 |
| Other Investing | 108.21M | -236.14M | -293.05M | -260.49M | -279.92M | -177.02M | 0 | 151.36M | -8.21M | 37.8M | 1.01M | 2.24M | 10.31M | -8.81M | -197.77M |
| Cash from Financing | -44.56M | 78.8M | 58.01M | 53.95M | -57.83M | -98.82M | -129.66M | -280.25M | 162.44M | 509.38M | 90.69M | 29.73M | 195.5M | 1.21B | 195.13M |
| Dividends Paid | -162.85M | -157.28M | -134.02M | -135.75M | -127.08M | -106.7M | -49.33M | -123.14M | -80.73M | -74.2M | -64.27M | -59.39M | -56.61M | -19.3M | -2.35M |
| Common Dividends | -162.85M | -157.28M | -134.02M | -135.75M | -127.08M | -106.7M | -49.33M | -123.14M | -80.73M | -74.2M | -64.27M | -59.39M | -56.61M | -19.3M | -2.35M |
| Debt Issuance (Net) | -2M | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -77.77M | -5.27M | -34.67M | -53.15M | -46.54M | -20.3M | -74.47M | -3.32M | -849K | -35K |
| Other Financing | -17.82M | -16.63M | -16.1M | -17.93M | -17.95M | -15.01M | -10.08M | -29.68M | -36.3M | -26.1M | -4.84M | -8.39M | -7.63M | -241.37M | 33.15M |
| Net Change in Cash | 20.78M | 34.66M | -229K | -8.47M | -98.18M | -16.41M | 36.83M | 10.8M | 56.86M | -2.51M | -32.46M | 25.03M | -444.6M | 452.6M | 8.6M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 22.36M | 8.65M | 8.88M | 17.35M | 115.53M | 131.94M | 95.11M | 84.3M | 27.45M | 8.22M | 40.68M | 15.65M | 460.25M | 7.65M | -943K |
| Cash at End | 29.96M | 43.31M | 8.65M | 8.88M | 17.35M | 115.53M | 131.94M | 95.11M | 84.3M | 5.72M | 8.22M | 40.68M | 15.65M | 460.25M | 7.65M |
| Free Cash Flow | 237.81M | 212M | 239.63M | 195.71M | 186.4M | 187.87M | 146.61M | 151.38M | 104.31M | -92.98M | -124.15M | -6.94M | -650.93M | -748.87M | 3.33M |
| FCF Growth % | 5.12% | -11.53% | 22.44% | 5% | -0.78% | 28.14% | -3.15% | 45.13% | 212.18% | 25.11% | -1689.19% | 98.93% | 13.08% | -22602.19% | - |
| FCF / Revenue % | 31.67% | 28.95% | 36.23% | 32.08% | 32.4% | 35.26% | 29.44% | 28.21% | 24.24% | -29.85% | -48.17% | -2.87% | -345.85% | -1023.54% | 18.96% |
Quick answers to the most common questions about buying PECO stock.
Phillips Edison & Co. (PECO) generated $348.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Phillips Edison & Co. (PECO) generated $212.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Phillips Edison & Co. (PECO) spent $136.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Phillips Edison & Co. (PECO) returned $157.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Negative gross margin anomaly
Metrics are mathematically derived from official filings.
AFFO Coverage Strengthens
AFFO rose to $83.9M in 2026Q2, covering dividends 2.6x, up from 1.7x in 2025Q1, indicating robust distributable cash flow, as per quarterly filings.
The dividend payout ratio based on AFFO improved to 0.38 in 2026Q2 from 0.58 in 2025Q1, suggesting a widening buffer for distribution growth or debt reduction. This trend is supported by AFFO growth outpacing dividend increases, with AFFO up 71% year-over-year while dividends grew modestly. Investors should monitor whether this coverage is sustainable given the negative gross margin anomaly.
Capex Intensity Remains Elevated
Capital expenditures averaged $28M per quarter over the last year, with maintenance capex consuming roughly 30% of AFFO, as reported in financial statements.
The gap between FFO and AFFO, averaging $25M per quarter, reflects recurring tenant improvements and leasing commissions, which are necessary to maintain occupancy. While this reduces distributable cash, it appears to be a deliberate investment in portfolio quality, as evidenced by strong leasing spreads. However, the rising capex trend (from $12.9M in 2024Q1 to $24M in 2026Q2) warrants monitoring for potential pressure on AFFO growth.
Working Capital Swings Signal Timing
Operating cash flow exceeded net income by $77M in 2026Q2, driven by non-cash items and working capital changes, per the cash flow statement.
The large FFO-to-OCF ratio of 2.87 in 2026Q2 suggests significant non-cash adjustments, likely from straight-line rent and depreciation add-backs. While this indicates healthy cash generation, the volatility in OCF (from $55.6M to $118M) may reflect timing of tenant collections and expense recoveries. Investors should monitor receivable trends to ensure cash conversion remains strong.
Dividends Funded Internally
AFFO covered dividends by 2.6x in 2026Q2, with no reliance on external funding for distributions, as per reported figures.
The company's dividend is well-covered by AFFO, and the retained cash flow (AFFO minus dividends) of $42.7M in 2026Q2 provides internal capital for acquisitions or debt reduction. This reduces dependence on ATM programs or debt issuance, which is positive given the low cash balance of $3.5M. However, the tight liquidity position suggests that any unexpected capex or acquisition could require drawing on credit facilities.
Depreciation Masks Cash Earnings
GAAP net income of $41.1M in 2026Q2 is less than half of FFO of $108.0M, highlighting depreciation's distortion, as disclosed in financials.
The substantial gap between net income and FFO, with FFO/NI at 2.87, underscores the importance of using FFO and AFFO for valuation. This distortion is typical for REITs but is more pronounced here due to the capital-intensive nature of the portfolio. Investors should focus on AFFO as the true cash earnings metric, which still shows strong growth.
Cash Flow Quality Under Scrutiny
Despite strong FFO, the negative gross margin and low cash balance raise questions about earnings quality, per the latest financial snapshot.
The negative gross margin of -1.4% in 2026Q2 is anomalous and may indicate one-time expenses or accounting issues, which could distort cash flow metrics. Additionally, the extremely low cash balance of $3.5M suggests tight liquidity, potentially increasing reliance on credit facilities. While AFFO coverage is strong, investors should monitor whether the negative gross margin persists, as it could signal structural cost pressures.