Maryland | 000-54691 | 27-1106076 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Exhibit Number | Description of Exhibit | |
99.1 | Letter to Stockholders dated June 15, 2017 |
PHILLIPS EDISON GROCERY CENTER REIT I, INC. | ||
Date: June 15, 2017 | By: | /s/ R. Mark Addy |
R. Mark Addy | ||
President and Chief Operating Officer |
• | On May 9, 2017, our Board reaffirmed its estimated value per share (the “EVPS”) For important information regarding the methodologies, assumptions and limitations of the EVPS as well as “funds from operations,” including non-GAAP reconciliations, please see PECO I’s Quarterly Report on Form 10-Q, filed with the SEC on 5/11/17, and its’ Current Report on Form 8-K, filed with the SEC on 5/19/17, which are available on the SEC’s website at www.sec.gov. of the REIT’s common stock of $10.20. The EVPS range was $9.97 to $11.24, based substantially on the estimated market value of PECO I’s portfolio of real estate properties in various geographic locations in the United States as of March 31, 2017. |
• | On May 18, 2017, PECO I entered into a contribution agreement to acquire real estate assets and the third party asset management business of its sponsor, Phillips Edison Limited Partnership, in a stock and cash transaction valued at approximately $1.0 billion (subject to closing adjustments). The contribution agreement is subject to certain closing conditions, among other items, the approval by PECO I stockholders, regulatory approvals and other customary conditions of closing (the “Transaction”). We expect the proposed Transaction to be accretive to PECO I’s earnings, and that the estimated pro forma funds from operations1 for the first quarter of 2017 would increase by approximately 8-10% relative to the performance of stand-alone PECO I. We also believe that it will position PECO I well for future capital market opportunities, including potential liquidity alternatives. |
• | We believe that the Bidder’s offer is meant to take advantage of the illiquidity of our shares by buying your shares at a price significantly below their fair value in order to make a significant profit. |
• | According to MacKenzie’s website, its “core strategy” is to purchase securities “at significant discounts to estimated net asset value” and “invest at prices we estimate to be significantly below current market value of the underlying asset.” MacKenzie has acknowledged that, in establishing the purchase price of $6.39 per share, it is motivated to establish the lowest price which might be acceptable to stockholders, consistent with MacKenzie’s objectives. |
• | PECO I currently pays monthly distributions in an annualized amount of $.67 per share, which equates to an annualized yield equal to 6.57% per share based on the most recent EVPS. Although the Board cannot provide a guarantee that PECO I will maintain its rate of distributions in the future, if you sell your shares, you will no longer receive monthly distributions or otherwise have any rights with respect to the shares that you sell, including any appreciation in the value of the stock. |
• | None of PECO I’s directors, executive officers, subsidiaries or other affiliates who hold shares intend to tender shares of stock to MacKenzie. |
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