Phillips Edison installs pandemic mitigation plan

Though sales are booming at grocery anchors such as Kroger, Publix, and Walmart in the Phillips Edison portfolio, many other tenants have closed, forcing the company to institute an emergency plan.

Some of the key provisions:

• All capital projects undertaken by Phillips Edison & Company are being delayed.
• The company is drawing $200 million on its $500 million revolving credit facility.
• Expense reductions are being implemented at the property and corporate level.
• Executive compensation will be greatly affected by the pandemic, since compensation for CEO Jeff Edison and his executive management team is more than 60% based on company performance.

“We are implementing key measures to mitigate the negative financial and operational impact of COVID-19, including cutting internal costs and limiting and deferring capital expenditures at our properties,” Edison said.

Adding that more than 20% of non-grocery and non-drug tenants have closed, Edison said that the company has been aiding them in applying for recovery funds made available at federal and state levels.