To reduce the risk that any one geographic or economic event can negatively impact the cash flow or value of the portfolio, we will target acquisitions with a diversity of:
- Anchor tenants
- Geographic locations
- Tenant mix
- Lease expirations
Phillips Edison-ARC is focused on providing an investment vehicle that will allow our shareholders to take advantage of an opportunity to participate in a carefully selected and professionally managed retail real estate portfolio. Our investment goals are to acquire a portfolio of neighborhood and community shopping centers with the following attributes:
- Well-located shopping centers in more densely populated growth markets in the United States
- Necessity-based retail typically with 80% or greater occupancy
- Diversified portfolio of anchor tenants, geographic locations, tenant mix, and lease expirations
- Purchased at a discount to replacement cost with potential for appreciation
- Financed at a target leverage of not more than 50% loan to value of the portfolio, calculated once we have invested substantially all of the proposed funds. However, our charter permits a maximum leverage of 75% of the cost of our investments.
- Generating monthly distributions covered by cash flow from operations
- Maximizing total returns through day-to-day property focus and exit strategy within three to five years after the termination of the offering period, which will be August 12, 2012 or, if extended, February 12, 2014.
We will be prudent in investing capital and focus on acquiring higher quality assets with strong anchors in established or growing markets. We will acquire centers where significant opportunities exist to create value through leasing and intensive property management. Careful selection and professional management of the shopping centers will allow us to maintain and enhance the centers’ cash flows. Phillips Edison-ARC's national platform, reputation, and extensive knowledge and expertise in the retail real estate industry will contribute to a sustained and successful execution of the investment strategy.