Phillips Edison & Co Inc at Bank of America Global Real Estate Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jeffrey Spector - Bank of America - Analyst : Jeff, over those 30 years, did you ever dabble and try to buy a big box or a mall or an outlet center or anything else? Are you -- over the 30 years, you really stuck with this formula?

Question: Jeffrey Spector - Bank of America - Analyst : And in terms of the strategy of owning one or two in a market, I think one of the big surprises that we've seen since we've covered you and our former retail guru, Craig Schmidt, would see -- observed was that how sticky that one or two is. I mean, we admit we thought that maybe it's easy for a competitor to try to steal that one or two, to develop around the corner or down the street in some of these markets, but it's been fairly sticky.

Question: Jeffrey Spector - Bank of America - Analyst : By the way, that's -- it's a great point on the one or two stay ranked one or two. I was also thinking that the one or two stay in your center that they're not stolen by a new developer, right, they've stayed in your center.

Question: Jeffrey Spector - Bank of America - Analyst : And let's talk a little bit more about your markets. Again, the strategy is owning the number-one or number-two grocer in that market. Can you talk a little bit about your geographic diversity and the decision to be in your markets? We focus a lot as analysts on demographics. And what are

Question: Jeffrey Spector - Bank of America - Analyst : And I know you already touched on this, but I guess let's talk a little bit further, because it's come up in other retail meetings today on the demographics and cycles. I guess, demographics cycles, you talked about the world financial crisis, a loss in occupancy. I guess the risk around the small shop tenants.

Question: Jeffrey Spector - Bank of America - Analyst : And then on -- I guess, to just finalize the topic on markets and positioning, I guess, thinking about the next five years and some of the trends we've seen with migration, our BofA Institute this morning talked about that continue to move to the Sunbelt away from the coast. How are you thinking about the PECO portfolio in markets over the next 5 to 10 years?

Question: Jeffrey Spector - Bank of America - Analyst : And maybe just one more follow-up on the demographics. As you mentioned, household income. Again, we focus a lot on demographics, maybe too much of demographics, density, household income, is there something in particular that you do feel is important? Or again, as long as you're above these -- like you said Publix, I think, and you say Kroger, yes, which is strong, that's the clearing, and that's good enough. And it's -- again,

Question: Jeffrey Spector - Bank of America - Analyst : In terms of -- you mentioned -- and again, I know it's been a theme for a long time now, limited, no new construction, but you did mention that you did ground up in the past. As you said, you do development on parcels, et cetera. I mean, would you consider doing ground up again on -- I think you said it would take 2 times -- rents to increase 2 times, but --

Question: Jeffrey Spector - Bank of America - Analyst : Not resting on your laurels.

Question: Jeffrey Spector - Bank of America - Analyst : Can we talk about grocer brick-and-mortar, e-commerce, grocery today in the United States? Where do we stand in terms of percentages and where do you see it going from here, the importance of brick-and-mortar for grocer and what your retailers are saying and doing? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 6:15PM, PECO.OQ - Phillips Edison & Co Inc at Bank of America Global Real Estate Conference

Question: Jeffrey Spector - Bank of America - Analyst : I know we're running out of time. Can we turn to the balance sheet and your recent unsecured raise?

Question: Jeffrey Spector - Bank of America - Analyst : Great. I know we're out of time, but we are doing three rapid fire questions. Rapid responses.

Question: Jeffrey Spector - Bank of America - Analyst : Okay. First, do you expect real estate transactions to increase once the Fed starts to cut, yes or no?

Question: Jeffrey Spector - Bank of America - Analyst : Okay. Well, the second part of the question is: when do you expect them to pick up between 4Q this year first half next year or second half of next year?

Question: Jeffrey Spector - Bank of America - Analyst : Second, how would you characterize demand for space today, a, improving; b, steady; or c, weakening?

Question: Jeffrey Spector - Bank of America - Analyst : Okay. And finally, how would you characterize your AI spending plans over the next year? Higher, flat? Or lower?

Question: Jeffrey Spector - Bank of America - Analyst : Great. Thanks so much for the PECO team. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 6:15PM, PECO.OQ - Phillips Edison & Co Inc at Bank of America Global Real Estate Conference