PECOMEDIUM SIGNALOPERATIONAL10-K

PECO expanded its portfolio from 294 to 297 wholly-owned shopping centers while shifting strategic focus toward "everyday retail" unanchored centers to complement its core grocery-anchored properties.

The portfolio expansion and strategic pivot toward everyday retail centers suggests management is actively seeking growth opportunities beyond traditional grocery-anchored properties. This diversification could enhance returns but may also introduce different risk profiles and market dynamics. The company appears to be evolving its investment thesis while maintaining its core community-focused mission.

Comparing 2026-02-10 vs 2025-02-11View on EDGAR →
FINANCIAL ANALYSIS

PECO's financial profile shows mixed signals with net income substantially higher year-over-year, while operating income remained modestly negative at -$2.0M versus -$1.3M previously. The company increased its debt load by 12.6% to $2.4B and grew dividend payments by 14.8% to $38.7M, suggesting confidence in cash generation despite the modest operating loss. The overall picture indicates a company investing for growth while maintaining shareholder returns.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+77.6%
$62.7M→$111.3M

Net income grew 77.6% — bottom-line growth signals improving overall business health.

Operating Income
P&L
-61%
-$1.3M→-$2.0M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Cash & Equivalents
Balance Sheet
-27.4%
$4.9M→$3.5M

Cash decreased 27.4% — monitor burn rate and upcoming capital needs.

Dividends Paid
Cash Flow
+14.8%
$33.7M→$38.7M

Dividend payments increased 14.8% — management confidence in sustained cash generation.

Total Debt
Balance Sheet
+12.6%
$2.1B→$2.4B

Debt rose 12.6% — additional borrowing for investment or operations; monitor coverage ratios.

Total Liabilities
Balance Sheet
+11.8%
$2.4B→$2.7B

Liabilities increased 11.8% — monitor debt-to-equity ratio and interest coverage.

LANGUAGE CHANGES
NEW — 2026-02-10
PRIOR — 2025-02-11
ADDED
As of February 2, 2026, there were approximately 125.8 million outstanding shares of common stock of the registrant.
As of December 31, 2025, we wholly-owned 297 shopping centers.
( Cohen Steers ), which owned four shopping centers, and (iii) a 31.25% interest in Neighborhood Grocery Catalyst Fund LLC ( NGCF ), a joint venture with certain investors, including LS BDC Holdings, LLC, a subsidiary of Lafayette Square USA, Inc., and Northwestern Mutual, which owned three shopping centers.
Additionally, we are seeking growth opportunities to complement our core grocery-anchored portfolio with incremental initiatives, such as everyday retail, often referred to as unanchored centers, to enhance our portfolio returns.
Everyday retail centers are located in the same trade areas as our grocery-anchored centers, growing suburban markets with strong median household incomes.
We remain focused on creating great grocery-anchored shopping experiences and improving our communities, one center at a time.
Our goal is to merchandise our shopping centers with the most effective array of goods and services for local consumers and to offer a safe and welcoming shopping experience that contributes to, and enhances, the vitality of each neighborhood.
Differentiated and Focused Strategy We believe quality drives growth.
Our high-quality portfolio is based on our differentiated strategy which focuses on SOAR - S preads, O ccupancy, A dvantages of the Market, and R etention.
Spreads Our strong new and renewal leasing spreads highlight the demand for our properties by Neighbors who provide necessity-based goods and services that serve the essential needs of our communities.
REMOVED
As of February 3, 2025, there were approximately 125.2 million outstanding shares of common stock of the registrant.
As of December 31, 2024, we wholly-owned 294 shopping centers.
( Cohen Steers ), which owned one shopping center, (iii) a 31.25% interest in Neighborhood Grocery Catalyst Fund LLC ( NGCF ), a joint venture with certain investors, including LS BDC Holdings, LLC, a subsidiary of Lafayette Square USA, Inc.
and Northwestern Mutual, which owned one property, and (iv) a 20% equity interest in Necessity Retail Partners ( NRP ), a joint venture with an affiliate of TPG Real Estate, which sold its final property in May 2022 and is set to expire in 2025.
Our goal is to create great grocery-anchored shopping experiences and improve our communities, one center at a time.
Differentiated and Focused Strategy We believe our differentiated strategy drives strong financial and operational performance and future growth, including showing resiliency during economic down cycles.
Omni-Channel Grocery-Anchored Neighborhood Shopping Centers We focus on investing in omni-channel shopping centers anchored by the #1 or #2 grocer by sales within their respective trade area.
As of December 31, 2024, for our wholly-owned shopping centers, 84% of our annualized base rent ( ABR ) was generated from shopping centers anchored by such grocers.
These centers provide an attractive last-mile solution to residents of our communities by providing Buy Online, Pick-Up in Store , curbside pick-up, and grocery delivery options.
We target investments with attractive going-in yields and growth potential in markets with demographic profiles that support necessity-based retail concepts.
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