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Acquisitions Strategy

DISCIPLINED INVESTMENT APPROACH: THE MICRO MARKET

The Phillips Edison Acquisitions team sources deals nationwide through market expertise and industry relationships. The team executes detailed due diligence including on-site interviews with tenants, local municipalities and third party representatives, and also performs thorough financial reviews and property underwriting to evaluate risks, opportunities and achievable returns.

Primary focus on the three-mile trade area — the micro market — surrounding each shopping center with the following characteristics:

GENERAL

  • Geographically diverse, growing markets
  • Market-leading grocery anchor
  • 70-80% national and regional creditworthy tenants
  • Diversification by tenancy, industry and lease term
  • Least susceptible to online competition

TRADE AREA SPECIFIC

  • #1 or #2 grocer in market with favorable health ratio
  • Walmart effect established
  • Average population target of 55,000+ in three-mile radius
  • Average HHI target of $65,000+
  • Employment diversity

PROPERTY POWER SCORE*

  • Proprietary algorithm based on scorecard that ranks over 40 property criteria, including:
    • Grocer strength – sales, market share, health ratio**, lease term
    • Functionality of site design
    • Asset age/quality
    • Access and visibility from main roads
    • Tenant mix
*Proprietary scorecard that uses a series of algorithms to benchmark individual assets based on a defined set of characteristics including those features listed on this page.
**Health ratio is the amount of annual rent as a percentage of annual sales.



 

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PROSPECTUS. THIS SALES AND ADVERTISING LITERATURE MUST BE READ IN CONJUNCTION WITH THE PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. A COPY OF THE PROSPECTUS MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH THIS OFFERING. NO OFFERING IS MADE TO NEW YORK RESIDENTS EXCEPT BY A PROSPECTUS FILED WITH THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK. NEITHER THE SECURITIES AND EXCHANGE COMMISSION, THE ATTORNEY GENERAL OF THE STATE OF NEW YORK NOR ANY OTHER STATE SECURITIES REGULATOR HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THE PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN PHILLIPS EDISON GROCERY CENTER REIT III, INC. INVOLVES A HIGH DEGREE OF RISK AND THERE CAN BE NO ASSURANCE THAT THE INVESTMENT OBJECTIVES OF THIS PROGRAM WILL BE ATTAINED.

This material must be read in conjunction with the applicable prospectus in order to understand all the implications and risks of any offering of securities to which the material relates. If you have not previously reviewed a prospectus, click here.