Ladenburg Thalmann raised its price objective on Phillips Edison & Co. (NASDAQ: PECO) to $42.00 from $40.00 on Monday while maintaining a Buy rating, citing the REIT's continued operational consistency in the grocery-anchored shopping center niche and its capacity to grow funds from operations.
Phillips Edison reported fourth-quarter NAREIT FFO of $0.64 per share and Core FFO of $0.66 per share, each figure exceeding Ladenburg Thalmann's estimate by $0.02. The REIT's Core FFO for the quarter was 6.5% higher than the same quarter a year earlier, and full-year 2025 Core FFO reached $2.60 per share, a 7.0% increase year over year.
Operational metrics showed same-store net operating income (NOI) growth of 3.2% for the quarter, with year-to-date underlying growth standing at 3.8%. The company also offers a dividend yield of 3.46% and has raised its dividend for six consecutive years.
Following the quarterly results, Ladenburg Thalmann nudged up its Core FFO estimates for 2026 and 2027 by $0.01 each, and the firm projects Phillips Edison will deliver 4.8% growth in 2026. The analyst shop attributed the higher price target to the REIT's steady performance in grocery-anchored shopping centers and its demonstrated ability to generate predictable FFO expansion.
In addition to the FFO results, Phillips Edison reported fourth-quarter earnings per share of $0.38, well ahead of the $0.15 consensus forecast, a surprise of 153.33%. Revenue for the quarter was $187.86 million versus an expected $171.69 million, a 9.42% upside. Despite those stronger-than-expected financials, the stock ticked down slightly in premarket trading.
The quarter's results and the analyst revisions underscore a degree of uncertainty between company performance and short-term market reaction. While the operational and cash-flow metrics supported Ladenburg Thalmann's decision to raise its price target, the market's initial response to the earnings beat was muted.
Summary of key figures
- NAREIT FFO (Q4): $0.64 per share
- Core FFO (Q4): $0.66 per share - $0.02 above Ladenburg Thalmann estimate
- Core FFO (Full-year 2025): $2.60 per share - 7.0% increase
- Same-store NOI (Q4): +3.2%; year-to-date underlying growth: 3.8%
- Fourth-quarter EPS: $0.38 vs $0.15 expected (153.33% surprise)
- Quarterly revenue: $187.86 million vs $171.69 million expected (9.42% surprise)
- Dividend yield: 3.46%; dividend increases sustained for six consecutive years
- Analyst revisions: 2026 and 2027 Core FFO estimates increased by $0.01 each; 2026 growth expectation of 4.8%
The data point to a REIT that is delivering steadier-than-expected cash-flow growth and incremental same-store NOI gains, supporting modest upward adjustments to near-term guidance from the covering analyst. At the same time, the muted market reaction after the beat highlights the disconnect that can exist between operational progress and immediate share price movement.