Phillips Edison & Company Raises Monthly Dividend by 6.2%

Ebube Jones Wed, September 9, 2026 at 4:30 PM PDT 5 min read

Retail REITs have been one of the steadier income plays in 2026. Grocery-anchored and strip-center landlords are benefiting from limited new supply and strong tenant demand, with many properties holding high occupancy and pushing rents higher as retailers compete for space.

Phillips Edison & Company (PECO) is now adding to that dividend-growth trend. On Sept. 1, the board raised its monthly dividend by 6.2%, to $0.115 per share from $0.1083. That brings the annualized payout to $1.38 from $1.30. Shareholders of record as of Sept. 15 will receive the first payment at the new rate on Oct. 1.

At recent prices, Phillips Edison offers a forward dividend yield of about 3.5%. This is the REIT's sixth straight annual dividend increase and its third consecutive raise of more than 5%.

So, what is driving the higher payout, and can Phillips Edison sustain its dividend-growth streak into 2027? Let's find out.

The Numbers Behind the Dividend Hike

Phillips Edison & Company owns grocery-anchored neighborhood shopping centers and collects rent from tenants that sell everyday goods and services. Its shares are up 8.8% over the past 52 weeks and 9.4% so far this year.

At about 14.1x forward earnings, PECO stock also trades well below the real estate sector average of 30.5x.

On Sept. 1, Phillips Edison raised its monthly dividend by 6.2%, to $0.115 per share from $0.1083. The new rate equals $1.38 annually, up from $1.30, and gives the stock a forward yield of about 3.5% at recent prices. Investors who owned PECO stock as of Sept. 15 will receive the first payment at the higher rate on Oct. 1. This was Phillips Edison's sixth straight annual dividend increase and its third straight raise above 5%. Its forward payout ratio was 113.4% before the increase, so continued FFO growth will be important for supporting the larger dividend.

The latest quarterly results point in the right direction:

• Second-quarter Nareit FFO rose 8.1% year-over-year (YoY) to $0.67 per diluted share
• Core FFO increased 7.8% to $0.69
• Same-center NOI grew 3.8%, showing that existing properties are producing more income
• Phillips Edison signed a record 304 leases covering about 1.2 million square feet
• New leases carried rent spreads of 33.7%, while renewal spreads reached 21.2%
• Portfolio occupancy was 97.3%, and inline occupancy hit a record 95.5%

Management also lifted its 2026 guidance midpoint for Nareit FFO, Core FFO, and same-center NOI growth to 6.3%, 6.2%, and 3.7%, respectively.

What Could Fuel Future Growth

Phillips Edison & Company's grocery-anchored centers benefit from steady traffic because shoppers regularly visit them for everyday needs. That makes its properties less dependent on discretionary spending than many other retail centers.

In the second quarter, Phillips Edison signed a record 304 leases covering about 1.2 million square feet. New leases were signed at rents 33.7% above the expiring rates, while renewal rents rose 21.2%. Inline occupancy reached a record 95.5%, and total portfolio occupancy stood at 97.3%.

Property acquisitions offer another growth path. Phillips Edison bought $266.9 million of assets in the first half of 2026, including five grocery-anchored centers in the second quarter. Those properties were anchored by Safeway, Kroger (KR), Lunds & Byerlys, and Cub Foods and are located in markets including Seattle, Minneapolis, and Dallas. Management raised its full-year gross acquisition target to $500 million to $600 million, which is $100 million above its original plan.

Phillips Edison also uses three institutional joint ventures to manage 28 additional centers. In the second quarter, its Necessity Retail Venture LLC joint venture bought Oracle Crossing, a 265,148-square-foot shopping center anchored by Sprouts Farmers Market (SFM) in a Tucson suburb. This setup helps the company grow while earning management fees.

PECO Stock's Outlook Through

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