Phillips Edison & Company Expands Northwestern Mutual Joint Venture With $377.5 Million Grocery-Anchored Portfolio

CINCINNATI, Oct. 1, 2026 — Phillips Edison & Company, Inc. (Nasdaq: PECO) announced an amended and restated joint venture partnership with Northwestern Mutual that will add 13 grocery-anchored shopping centers across eight states, valued at approximately $377.5 million, to an existing venture. The agreement extends the term of the venture, Grocery Retail Partners I LLC (GRP I), by 10 years to 2036.

The expanded venture will acquire the 13 centers, which are currently owned and operated by PECO. Northwestern Mutual and PECO will retain approximately 86% and 14% interests in the joint venture, respectively.

Deal Structure and Ownership

PECO will continue to provide leasing, asset management and property management services for the joint venture and will earn recurring fees for those services. The structure allows PECO to keep operating the properties and hold a minority interest while Northwestern Mutual takes the larger ownership position.

The portfolio value of $377.5 million equates to roughly $29.0 million per center on a simple average basis across the 13 properties.

The expansion will occur in stages. The initial stage will seed approximately half of the assets into the venture. Additional transfers under the existing agreement are expected to be completed by early 2027, and the timing and composition of future closings may change, PECO said.

Capital Allocation Strategy

PECO said the expansion creates incremental investment capacity to fund future acquisitions, development and redevelopment opportunities. The company characterized the transaction as a way to monetize value from stabilized assets and redeploy that capital into grocery-anchored and Everyday Retail opportunities with growth potential.

"Expanding our partnership with Northwestern Mutual, one of the country's largest and most experienced commercial real estate investors, demonstrates continued institutional demand for high-quality, grocery-anchored shopping centers," said Jeff Edison, Chairman and Chief Executive Officer of PECO.

Edison added: "In addition to the durable fee revenue generated, this expanded joint venture advances PECO's capital allocation strategy by monetizing value from high-quality, stabilized assets and redeploying that capital into grocery-anchored and Everyday Retail™ opportunities with strong growth potential." He said the company is pursuing this while maintaining balance sheet strength and a disciplined approach to investing.

PECO has also raised its expected 2026 gross acquisition target to a range of $600 million to $700 million, up from $500 million to $600 million. The press release itself states only that the transaction will generate capital for future acquisitions, development and redevelopment.

The Portfolio: Suburban, Necessity-Based Retail

The 13 assets are located in suburban neighborhoods and are merchandised with necessity-based goods and services, including dominant grocers, restaurants and medical retail, as well as health, wellness and personal service uses.

Following completion of the expanded venture, PECO's unconsolidated joint venture portfolio is expected to include more than 40 shopping centers across 17 states, with approximately $1.2 billion in assets under management.

PECO's Operating Footprint

Founded in 1991, PECO is one of the nation's largest owners and operators of grocery-anchored neighborhood shopping centers. As of June 30, 2026, the company managed 330 shopping centers, including 302 wholly owned centers totaling 33.9 million square feet across 31 states and 28 centers owned in three institutional joint ventures. Its top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize.

Northwestern Mutual's Role

Northwestern Mutual is one of the largest commercial real estate mortgage and equity investors in the U.S. The Milwaukee-based company manages more than $780 billion of total assets across its institutional portfolio and retail investment client portfolios, and ranked 109th on the 2026 Fortune 500.

Market Context

The transaction illustrates a capital-recycling approach in which a real estate investment trust contributes stabilized, operating assets to a venture with an institutional partner while retaining management responsibilities and a minority interest. Extending GRP I through 2036 lengthens the partners' ownership horizon for the portfolio. The expansion reflects continued institutional demand for grocery-anchored centers, a segment centered on necessity-based tenants.

Sources

• Phillips Edison & Company press release, Oct. 1, 2026: Phillips Edison & Company Announces $377.5 Million Expansion of Joint Venture with Northwestern Mutual