CINCINNATI—The Phillips Edison-ARC Shopping Center REIT Inc. was one of the fastest acquirers of shopping centers in 2013, and during the first quarter of this year, it has continued at roughly the same pace, snapping up 17 centers across the US for a total of $285.7 million, company officials say. Its long-term strategy has been to assemble a safe portfolio of neighborhood and community shopping centers anchored by the #1 or #2 grocers in its targeted markets.
“We are pleased to report another active quarter of acquisitions, adding 17 properties to our portfolio for a total of 100 grocery-anchored shopping centers owned representing an aggregate purchase price of approximately $1.5 billion,” says Jeff Edison, chief executive officer of the company. “Our portfolio now includes shopping centers in 23 states anchored by 31 different grocery store anchors and totaling over 10.5-million-square-feet.”
As of March 31, 2014, the company reported leased portfolio occupancy of 94.8%. It generated a net loss of $0.4 million and MFFO of $18.7 million for the first three months of the year. Finally, it paid distributions totaling $28.9 million for the first quarter.
Phillips Edison & Company and AR Capital, LLC sponsor the Cincinnati-based company. Edison says that they are now raising equity for another non-traded REIT, called Phillips Edison-ARC Grocery Center REIT II. In March 2014, it bought Bethany Village, an 81,674-square-foot shopping center anchored by a Publix in Alpharetta, GA. And just recently it made its second acquisition—Staunton Plaza, an 80,265-square-foot shopping center, also in Staunton, and anchored by a Martin’s.