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Articles Tagged with Phillips Edison & Co.

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Investors in Phillips Edison & Company, Inc. (“PECO”) may have FINRA arbitration claims, if their investment was recommended by a financial advisor who lacked a reasonable basis for the recommendation, or if the nature of the investment was misrepresented by the stockbroker or advisor.

Money Maze
PECO was formed in Maryland in October 2009 as a non-traded real estate investment trust (or “REIT”), to acquire grocery-anchored shopping centers. In November 2018, PECO officially merged with Phillips Edison Grocery Center REIT II (“Phillips Edison II), a move that caused significant loss to its investors. Investors who purchased shares in PECO at the initial offering acquired shares at $10.00 per share, and while PECO’s sponsor has said that it currently has an estimated net asset value (“NAV”) of $8.75 per share, shares on the limited private secondary market have reportedly traded between $4.50 and $5.50 per share in recent months.

Making matters worse, in March 2020 PECO announced that it would suspended monthly distributions, as well as share repurchases or redemptions, albeit indicating that these  suspensions will be temporary.  As measures to guard against liquidity issues, PECO also reportedly borrowed $200 million from a revolving credit facility and announced plans to reduce expenses.

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Investors in Phillips Edison & Co. (“PECO”, formerly known as Phillips Edison Grocery Center REIT I) got bad news when PECO announced its plans to suspend monthly distributions, share repurchases, and its distribution reinvestment plan, indicating that the suspensions will be temporary.  PECO also reportedly borrowed $200 million on its $500 million revolving credit facility in order to increase its liquidity.

Money Maze
Monthly distributions and the distribution reinvestment plan were suspended after the March 2020 distribution,  which PECO paid in cash on April 1, 2020. The share repurchase program, including death, qualifying disability or determination of incompetence (DDI) requests, was also suspended.

PECO began selling shares in or about August 2010 as a publicly registered, non-traded REIT. and raised approximately $1.8 billion from investors.  PECO owns grocery store-based shopping centers and oversees a portfolio of 317 properties.

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