Phillips Edison & Company, Inc.PECO
Phillips Edison & Company, Inc. Debt Disclosure
| 8. DEBT OBLIGATIONS | ||
The following is a summary of the outstanding principal balances and interest rates, which includes the effect of derivative financial instruments, for our debt obligations as of December 31, 2025 and 2024 (dollars in thousands):
Interest Rate(1) | 2025 | 2024 | |||||||||||||||
| Revolving credit facility | SOFR + 0.8% | $ | 92,000 | $ | 40,000 | ||||||||||||
Term loans(2) | 4.5% - 4.9% | 484,750 | 584,750 | ||||||||||||||
| Senior unsecured notes due 2031 | 2.625% | 350,000 | 350,000 | ||||||||||||||
| Senior unsecured notes due 2032 | 5.250% | 350,000 | — | ||||||||||||||
| Senior unsecured notes due 2034 | 5.750% | 350,000 | 350,000 | ||||||||||||||
| Senior unsecured notes due 2035 | 4.950% | 350,000 | 350,000 | ||||||||||||||
| Secured loan facilities | 3.4% - 3.5% | 395,000 | 395,000 | ||||||||||||||
| Mortgages | 3.5% - 6.2% | 29,915 | 67,555 | ||||||||||||||
| Finance lease liability | 480 | 31 | |||||||||||||||
| Discount on notes payable | (23,633) | (22,211) | |||||||||||||||
| Assumed market debt adjustments, net | 259 | 84 | |||||||||||||||
| Deferred financing expenses, net | (3,443) | (5,666) | |||||||||||||||
| Total | $ | 2,375,328 | $ | 2,109,543 | |||||||||||||
Weighted-average interest rate(3) | 4.5 | % | 4.3 | % | |||||||||||||
(1)Interest rates are as of December 31, 2025.
(2)Our term loans carry an interest rate of the Secured Overnight Financing Rate (“SOFR”) plus a spread. While some of the rates are fixed through the use of swaps, a portion of these loans are not subject to a swap, and thus are still indexed to SOFR.
(3)Includes the effects of derivative financial instruments (see Notes 9 and 16).
2025 Debt Activity— In June 2025, we issued $350 million of 5.250% senior notes due 2032 at an issue price of 99.832% in an underwritten offering. The offering resulted in gross proceeds of $347.2 million, which were used to pay down our revolving credit facility.
The 2025 senior notes are fully and unconditionally guaranteed by us.
In December 2025, we repaid the $100 million outstanding term loan balance that was set to mature in July 2026.
During the year ended December 31, 2025, we repaid $37.6 million in mortgage debt.
2024 Debt Activity—In May 2024, we issued $350 million of 5.750% senior notes due 2034 at an issue price of 98.576% in an underwritten offering. The offering resulted in gross proceeds of $345.0 million, which were used to pay down $202 million of our revolving credit facility and $135 million of our $240 million term loan that was set to mature in November 2025.
In September 2024, we issued $350 million of 4.950% senior notes due 2035 at an issue price of 98.458% in an underwritten offering. The offering resulted in gross proceeds of $344.6 million, which were used to pay down $90 million of our revolving credit facility and $140 million of our $240 million term loan that was set to mature in July 2026. Additionally, we paid in full our $105 million term loan that was set to mature in November 2025.
The 2024 senior notes are fully and unconditionally guaranteed by us.
During the year ended December 31, 2024, we repaid $28.1 million in mortgage debt.
Revolving Credit Facility—In January 2025, we amended our senior unsecured revolving credit facility. The amendment increased the aggregate borrowing capacity of the facility to $1 billion and extended the maturity date to January 2029, with options to extend the maturity for two additional six-month periods.
As of December 31, 2025, we had availability of $881.8 million on our senior unsecured revolving credit facility, which was net of outstanding letters of credit. We pay a facility fee of 0.15% on the total amount under the facility.
Term Loans—We have three unsecured term loans with maturities ranging from 2026 to 2027. Our term loans have interest rates of SOFR plus interest rate spreads based on our investment grade rating. We have utilized interest rate swaps to fix the rates on a portion of our term loans, with $284.8 million in term loans not fixed through such swaps.
As of December 31, 2025 and 2024, the weighted-average interest rate, including the impact of swaps, on our term loans was 4.7% and 4.6%, respectively.
In January 2026, we extended the maturity of our $161.8 million term loan from January 2026 to January 2027.
Secured Debt—Our secured debt includes two facilities secured by certain properties in our portfolio, mortgage loans secured by individual properties, and finance leases. The interest rates on our secured debt are fixed. As of December 31, 2025 and 2024, our weighted average interest rate for our secured debt was 3.6%.
Debt Allocation—The allocation of total debt between fixed-rate and variable-rate as well as between secured and unsecured, excluding market debt adjustments, discount on senior notes, and deferred financing expenses, net, and including the effects of derivative financial instruments as of December 31, 2025 and 2024 is summarized below (in thousands):
| 2025 | 2024 | ||||||||||
As to interest rate(1): | |||||||||||
| Fixed-rate debt | $ | 2,025,395 | $ | 1,987,586 | |||||||
| Variable-rate debt | 376,750 | 149,750 | |||||||||
| Total | $ | 2,402,145 | $ | 2,137,336 | |||||||
| As to collateralization: | |||||||||||
| Unsecured debt | $ | 1,976,750 | $ | 1,674,750 | |||||||
| Secured debt | 425,395 | 462,586 | |||||||||
| Total | $ | 2,402,145 | $ | 2,137,336 | |||||||
(1)Fixed-rate debt includes, and variable-rate debt excludes, the portion of such debt that has been hedged by interest rate derivatives. As of December 31, 2025, $200 million in variable rate debt was hedged to a fixed rate for a period of 0.7 years (see Notes 9 and 16).
Maturity Schedule—Below is our maturity schedule with the respective principal payment obligations, excluding finance lease liabilities, market debt adjustments, discount on senior notes, and deferred financing expenses, net (in thousands):
| 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Unsecured debt(1)(2) | $ | 161,750 | $ | 323,000 | $ | — | $ | 92,000 | $ | — | $ | 1,400,000 | $ | 1,976,750 | |||||||||||||||||||||||||||
| Secured debt | 1,904 | 200,595 | 17,367 | 805 | 200,844 | 3,400 | 424,915 | ||||||||||||||||||||||||||||||||||
| Total | $ | 163,654 | $ | 523,595 | $ | 17,367 | $ | 92,805 | $ | 200,844 | $ | 1,403,400 | $ | 2,401,665 | |||||||||||||||||||||||||||
(1)Includes our revolving credit facility, term loans, and senior notes.
(2)In January 2026, we extended the maturity of our $161.8 million term loan from January 2026 to January 2027. We have an additional option to extend the maturity until January 2028.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 10, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
| 2023 | Feb 12, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 12, 2020 | |
| 2018 | Mar 13, 2019 | |
| 2017 | Mar 30, 2018 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.