Phillips Edison & Company (NASDAQ: PECO) is the grocery purist: virtually every property anchored by a top grocer (Kroger and Publix above all), nothing else, no malls, no power centers, no experiments, producing the most defensive tenant sales base in retail REITs.
| Phillips Edison & Company (PECO) Snapshot | |
|---|---|
| Share Price (delayed) | $41.61 -1.40% |
| Market Cap | $5.4B |
| Annualized Dividend | $1.29 (Quarterly) |
| Dividend Yield | 3.10% |
| Sector | Retail ยท Grocery-Anchored Shopping Centers |
Market data updates automatically several times daily. Last price refresh: Aug 04, 2026.
Business Model
PECO owns hundreds of neighborhood centers where the grocer drives multiple weekly visits and the small shops (nail salons, quick food, medical, services) monetize the traffic. Necessity retail at its most literal: tenant sales barely noticed the pandemic, occupancy runs in the high 90s, and same-center NOI compounds in the 3-4% range with metronomic consistency since its 2021 IPO.
Dividend Safety Analysis
Monthly-adjacent reliability in quarterly form: conservative FFO coverage, investment-grade credit, and steady growth since listing. The payout profile matches the portfolio: unspectacular, dependable, defensively built.
The Honest Risk Section
Grocer concentration cuts both ways: Kroger and Publix are superb anchors and dominant negotiators, and any grocer consolidation or format shift (delivery economics, smaller stores) touches most of the portfolio at once. Small shops carry local-business credit risk in recessions, and the stock’s defensive premium caps upside.
Frequently Asked Questions
What makes PECO different from other retail REITs?
Grocery purity: essentially the entire portfolio is anchored by top grocers, making it the most necessity-weighted tenant base in the sector.
Is PECO’s dividend safe?
Yes: conservative coverage, investment-grade credit, and the most recession-tested tenant demand profile in retail real estate.
Analysis based on company disclosures through Q1 2026. Live market data updates automatically. Independent research, not investment advice.
Why buy the REIT when you can own the asset?
Net lease REITs typically yield 4.5% to 6.5%. Direct ownership of a single-tenant NNN property leased to the same investment-grade tenants historically trades at 6% to 7.5% cap rates, plus depreciation benefits and 1031 exchange eligibility that REIT shareholders never receive.
Compare Direct NNN Ownership