The company exhibits strong cash conversion with an FFO to Net Income ratio of 1.83 in 2026Q1, though liquidity remains constrained by a lean cash balance of only $3.1 million.
| 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 | 343.16M | 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 % | 16.09% | 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 % | 46.43% | 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 | 115.35M | 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 | 259.93M | 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 | 11.69M | 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 | -77.9M | -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 | 24.99M | -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 | -356.58M | -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) | -8.7M | -11.83M | 0 | 0 | 4.15M | 5.04M | 3.45M | -11.69M | -201.67M | -456.7M | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -6.81M | -8.31M | 0 | 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 | 0 | 52.02M | 75.03M | 57.9M | 0 | 78.65M | 37.8M | 1.01M | 2.27M | 520K | 0 | 0 |
| Other Investing | -205.79M | -236.14M | -303.71M | -258.12M | -279.92M | -177.02M | 0 | 151.36M | -8.21M | 37.8M | 1.01M | 2.24M | 10.31M | -8.81M | -197.77M |
| Cash from Financing | 27.92M | 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 | -105.73M | -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 | -105.73M | -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) | -1000K | 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 | 40.53M | -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 | 14.51M | 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 | 43.31M | 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 | 22.36M | 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 | 206.92M | 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 % | -7.46% | -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 % | 28% | 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% |
Tight liquidity and leverage
According to the provided quarterly data, the ratio of FFO to Net Income consistently exceeds 1.8x, with a peak of 9.4x in 2024Q3, suggesting that GAAP earnings significantly understate the actual cash-generating capacity of the underlying grocery-anchored real estate portfolio held by the company.
The substantial spread between FFO and GAAP Net Income highlights the heavy impact of non-cash depreciation charges inherent in the REIT structure. Investors should interpret this as evidence that GAAP metrics are insufficient for evaluating the company's ability to fund operations and dividends.
Based on reported financial statements, the dividend payout ratio relative to AFFO has remained consistently below 65% over the last ten quarters, with a low of 25% in 2025Q4, indicating a significant buffer for maintaining distributions even during periods of elevated capital expenditure.
This conservative payout ratio suggests that the company retains a meaningful portion of its recurring cash flow to reinvest in property improvements. The consistency of this coverage provides a degree of confidence in the sustainability of the current dividend policy.
As reported in the quarterly filings, recurring capital expenditures, including tenant improvements and leasing commissions, have fluctuated between $12.9 million and $40.4 million, reflecting the ongoing necessity of reinvesting in the portfolio to maintain occupancy levels and support long-term rental growth across the sites.
The variability in these expenditures suggests that the company must actively manage its asset base to remain competitive in the grocery-anchored niche. Analysts should monitor whether these costs trend upward, as they directly reduce the AFFO available for distribution to shareholders.
Data from the last ten quarters reveals that FFO consistently tracks well above Net Income, with the FFO/NI ratio frequently surpassing 5.0x, which implies that non-cash depreciation and amortization charges are masking the true economic profitability of the company's core retail operations.
This distortion is typical for the sector but remains critical for investors to adjust for when assessing valuation multiples. Relying on GAAP earnings would likely lead to an inaccurate perception of the company's financial health and its capacity for future capital deployment.
Quick answers to the most common questions about buying PECO stock.
Phillips Edison & Company, Inc. (PECO) generated $348.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Phillips Edison & Company, Inc. (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 & Company, Inc. (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 & Company, Inc. (PECO) returned $157.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.