On February 17, 2026, Sophron Capital Management disclosed selling 202,175 shares of Phillips Edison & Company (NASDAQ:PECO), an estimated $7.02 million trade based on quarterly average pricing.
According to a filing with the Securities and Exchange Commission dated February 17, 2026, Sophron Capital Management sold 202,175 shares of Phillips Edison & Company during the fourth quarter. The estimated transaction value was $7.02 million, based on the average unadjusted close in the period. The fund’s quarter-end position in PECO decreased in value by $6.48 million, a figure reflecting both the sale and underlying price movement.
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Sophron Capital Management reduced its PECO holding, now representing 4.2% of 13F AUM, down from 6.1% the prior quarter.
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Top five holdings after the filing:
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NYSE:ADC: $21,737,357 (7.0% of AUM)
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NYSE:ESS: $20,172,650 (6.5% of AUM)
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NYSE:EQR: $18,144,488 (5.8% of AUM)
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NYSE:MTH: $15,997,559 (5.1% of AUM)
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NYSE:FCPT: $15,526,413 (5.0% of AUM)
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As of February 17, 2026, shares of Phillips Edison & Company were priced at $38.38, up 9% over the past year and solidly underperforming the S&P 500’s roughly 16% gain in the same period.
|
Metric |
Value |
|---|---|
|
Revenue (TTM) |
$726.59 million |
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Net Income (TTM) |
$111.28 million |
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Dividend Yield |
3.56% |
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Price (as of market close February 17, 2026) |
$38.38 |
Phillips Edison & Company operates and manages grocery-anchored shopping centers, generating revenue primarily from leasing retail space to national and regional tenants. The company employs a vertically integrated real estate investment trust (REIT) model, focusing on necessity-based retail properties to drive consistent rental income and long-term asset appreciation. It serves a diverse mix of retailers and consumers in strong U.S. markets, with a portfolio designed to attract tenants offering essential goods and services.
Portfolio construction matters just as much as stock picking, and when a fund already carries heavy exposure to real estate investment trusts, even modest adjustments can say more about allocation strategy than about a company’s outlook.
That appears to be the case here. The portfolio’s largest positions remain firmly rooted in real estate, including major holdings in Agree Realty, Essex Property Trust, and Equity Residential. Those names collectively anchor the strategy around income-producing real estate assets, ranging from single-tenant retail properties to large apartment portfolios. Trimming one retail-focused REIT simply brings the exposure more in line with the rest of the portfolio rather than signaling a wholesale exit from the sector.
Fundamentally, Phillips Edison continues to operate from a position of strength. The company reported $111.3 million in net income for 2025, up from $62.7 million one year earlier, with Nareit funds from operations reaching $353.1 million, reflecting steady growth from the prior year. Its portfolio of grocery-anchored shopping centers remains highly leased, with occupancy hovering around 97%.
For long-term investors, the bigger takeaway is how necessity-based retail real estate behaves in uncertain markets. Grocery-anchored centers tend to generate durable cash flows because tenants sell essential goods. That stability is precisely why funds often keep the sector as a core holding, even while trimming individual positions along the way.
