Phillips Edison & Company (PECO) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares shares in Millions	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016
Entity Registrant Name	Phillips Edison Grocery Center REIT I, Inc.
Entity Central Index Key	1,476,204
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		184.3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investment in real estate:
Land and improvements	$ 769,726	$ 719,430
Building and improvements	1,484,875	1,397,050
Acquired in-place lease assets	206,543	194,242
Acquired above-market lease assets	41,709	39,311
Total investment in real estate assets	2,502,853	2,350,033
Accumulated depreciation and amortization	(311,954)	(232,102)
Total investment in real estate assets, net	2,190,899	2,117,931
Cash and cash equivalents	21,362	40,680
Restricted cash	6,439	6,833
Other assets, net	65,874	60,804
Total assets	2,284,574	2,226,248
Liabilities:
Mortgages and loans payable, net	946,042	845,515
Acquired below-market lease intangibles, net of accumulated amortization of $19,122 and $14,259, respectively	41,232	39,782
Accounts payable – affiliates	4,225	5,278
Accounts payable and other liabilities	58,847	43,881
Total liabilities	1,050,346	934,456
Commitments and contingencies (Note 6)	0	0
Equity:
Preferred stock, $0.01 par value per share, 10,000 shares authorized, zero shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	0	0
Common stock, $0.01 par value per share, 1,000,000 shares authorized, 184,943 and 181,308 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	1,850	1,813
Additional paid-in capital	1,625,965	1,588,541
Accumulated other comprehensive (loss) income	(6,813)	22
Accumulated deficit	(410,625)	(323,761)
Total stockholders’ equity	1,210,377	1,266,615
Noncontrolling interests	23,851	25,177
Total equity	1,234,228	1,291,792
Total liabilities and equity	$ 2,284,574	$ 2,226,248

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Acquired below-market lease intangibles, accumulated amortization	$ 19,122	$ 14,259
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued and outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued and outstanding	184,943,000	181,308,000

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Rental income	$ 48,828	$ 45,859	$ 143,023	$ 135,898
Tenant recovery income	16,199	15,610	47,652	43,003
Other property income	243	353	730	1,062
Total revenues	65,270	61,822	191,405	179,963
Expenses:
Property operating	10,030	9,645	29,978	28,003
Real estate taxes	9,104	9,902	27,745	26,629
General and administrative	7,722	2,871	23,736	7,742
Acquisition expenses	870	836	2,392	4,058
Depreciation and amortization	26,583	25,746	78,266	75,747
Total expenses	54,309	49,000	162,117	142,179
Other:
Interest expense, net	(8,504)	(7,818)	(23,837)	(22,155)
Other income (expense), net	33	242	(125)	117
Net income	2,490	5,246	5,326	15,746
Net income attributable to noncontrolling interests	(26)	(63)	(83)	(222)
Net income attributable to stockholders	$ 2,464	$ 5,183	$ 5,243	$ 15,524
Earnings per common share:
Net income per share attributable to stockholders - basic and diluted	$ 0.01	$ 0.03	$ 0.03	$ 0.08
Weighted-average common shares outstanding:
Basic	184,639	185,271	183,471	184,209
Diluted	187,428	188,057	186,260	186,902
Comprehensive income (loss):
Net income	$ 2,490	$ 5,246	$ 5,326	$ 15,746
Other comprehensive income (loss):
Unrealized gain (loss) on derivatives	1,950	(7,644)	(9,597)	(6,253)
Reclassification of derivative loss to interest expense	888	1,188	2,762	1,981
Comprehensive income (loss)	5,328	(1,210)	(1,509)	11,474
Comprehensive income attributable to noncontrolling interests	(26)	(63)	(83)	(222)
Comprehensive income (loss) attributable to stockholders	$ 5,302	$ (1,273)	$ (1,592)	$ 11,252

Consolidated Statements of Equi

Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total Stockholders' Equity	Noncontrolling Interest
Balance, value at Dec. 31, 2014	$ 1,378,262	$ 1,820	$ 1,567,653	$ 0	$ (213,975)	$ 1,355,498	$ 22,764
Balance, shares at Dec. 31, 2014		182,131
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share repurchases, value	(31,022)	$ (31)	(30,991)			(31,022)
Share repurchases, shares		(3,275)
Change in redeemable common stock	(436)		(436)			(436)
Dividend reinvestment plan (DRIP), value	48,185	$ 66	48,119			48,185
Dividend reinvestment plan (DRIP), shares		5,033
Change in unrealized loss on interest rate swaps	(4,272)			(4,272)		(4,272)
Common distributions declared, $0.50 per share	(92,323)				(92,323)	(92,323)
Issuance of partnership units	4,047						4,047
Distributions to noncontrolling interests	(1,360)						(1,360)
Net income	15,746				15,524	15,524	222
Balance, value at Sep. 30, 2015	1,316,827	$ 1,855	1,584,345	(4,272)	(290,774)	1,291,154	25,673
Balance, shares at Sep. 30, 2015		183,889
Accumulated other comprehensive (loss) income	22
Balance, value at Dec. 31, 2015	1,291,792	$ 1,813	1,588,541		(323,761)	1,266,615	25,177
Balance, shares at Dec. 31, 2015		181,308
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share repurchases, value	(7,280)	$ (7)	(7,273)			(7,280)
Share repurchases, shares		(752)
Dividend reinvestment plan (DRIP), value	44,731	$ 44	44,687			44,731
Dividend reinvestment plan (DRIP), shares		4,387
Change in unrealized loss on interest rate swaps	(6,835)			(6,835)		(6,835)
Common distributions declared, $0.50 per share	(92,107)				(92,107)	(92,107)
Distributions to noncontrolling interests	(1,409)						(1,409)
Share-based compensation	10		10			10
Net income	5,326				5,243	5,243	83
Balance, value at Sep. 30, 2016	1,234,228	$ 1,850	$ 1,625,965	$ (6,813)	$ (410,625)	$ 1,210,377	$ 23,851
Balance, shares at Sep. 30, 2016		184,943
Accumulated other comprehensive (loss) income	$ (6,813)

Consolidated Statements of Equ6

Consolidated Statements of Equity (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Statement of Stockholders' Equity [Abstract]
Common distributions declared, per share	$ 0.50	$ 0.50

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 5,326	$ 15,746
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	76,293	73,502
Net amortization of above- and below-market leases	(936)	(560)
Amortization of deferred financing expense	3,757	3,815
Straight-line rental income	(2,793)	(3,716)
Other	189	40
Changes in operating assets and liabilities:
Other assets	(4,339)	(4,851)
Accounts payable – affiliates	(1,206)	1,209
Accounts payable and other liabilities	8,888	5,590
Net cash provided by operating activities	85,179	90,775
CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate acquisitions	(132,266)	(87,755)
Capital expenditures	(16,936)	(14,944)
Proceeds from sale of real estate	0	1,027
Change in restricted cash	394	(1,236)
Net cash used in investing activities	(148,808)	(102,908)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in credit facility	(23,531)	165,300
Payments on mortgages and loans payable	(103,622)	(64,300)
Proceeds from mortgages and loans payable	230,000	0
Payments of deferred financing expenses	(2,461)	(6,654)
Distributions paid, net of DRIP	(47,535)	(44,291)
Distributions to noncontrolling interests	(1,260)	(1,211)
Repurchases of common stock	(7,280)	(32,535)
Other	0	(75)
Net cash provided by financing activities	44,311	16,234
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(19,318)	4,101
CASH AND CASH EQUIVALENTS:
Beginning of period	40,680	15,649
End of period	21,362	19,750
SUPPLEMENTAL CASH FLOW DISCLOSURE, INCLUDING NON-CASH INVESTING AND FINANCING ACTIVITIES:
Cash paid for interest	22,234	20,116
Fair value of assumed debt	0	31,743
Accrued capital expenditures	1,834	2,361
Change in distributions payable	(159)	(153)
Change in distributions payable - noncontrolling interests	149	149
Change in accrued share repurchase obligation	0	(1,513)
Distributions reinvested	$ 44,731	$ 48,185

Organization

Organization	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	ORGANIZATION Phillips Edison Grocery Center REIT I, Inc., (“we,” the “Company,” “our,” or “us”) was formed as a Maryland corporation in October 2009. Substantially all of our business is conducted through Phillips Edison Grocery Center Operating Partnership I, L.P., (the “Operating Partnership”), a Delaware limited partnership formed in December 2009. We are a limited partner of the Operating Partnership, and our wholly owned subsidiary, Phillips Edison Grocery Center OP GP I LLC, is the sole general partner of the Operating Partnership. Our advisor is Phillips Edison NTR LLC (“PE-NTR”), which is directly or indirectly owned by Phillips Edison Limited Partnership (the “Phillips Edison sponsor”). Under the terms of the advisory agreement between PE-NTR and us (the “PE-NTR Agreement”), PE-NTR is responsible for the management of our day-to-day activities and the implementation of our investment strategy. We invest primarily in well-occupied, grocery-anchored neighborhood and community shopping centers having a mix of creditworthy national and regional retailers selling necessity-based goods and services in strong demographic markets throughout the United States. As of September 30, 2016 , we owned fee simple interests in 150 real estate properties acquired from third parties unrelated to us or PE-NTR.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Set forth below is a summary of the significant accounting estimates and policies that management believes are important to the preparation of our consolidated interim financial statements. Certain of our accounting estimates are particularly important for an understanding of our financial position and results of operations and require the application of significant judgment by management. As a result, these estimates are subject to a degree of uncertainty. There have been no changes to our significant accounting policies during the nine months ended September 30, 2016 , except for the items discussed below. For a full summary of our accounting policies, refer to our 2015 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 3, 2016. Basis of Presentation and Principles of Consolidation —The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Readers of this Quarterly Report on Form 10-Q should refer to the audited consolidated financial statements of Phillips Edison Grocery Center REIT I, Inc. for the year ended December 31, 2015 , which are included in our 2015 Annual Report on Form 10-K. In the opinion of management, all normal and recurring adjustments necessary for the fair presentation of the unaudited consolidated financial statements for the periods presented have been included in this Quarterly Report. Our results of operations for the three and nine months ended September 30, 2016 , are not necessarily indicative of the operating results expected for the full year. The accompanying consolidated financial statements include our accounts and those of our majority-owned subsidiaries. All intercompany balances and transactions are eliminated upon consolidation. Share-based Compensation —We account for our share-based compensation plan based on the Financial Accounting Standards Board (“FASB”) guidance which requires that compensation expense be recognized based on the fair value of the stock awards less estimated forfeitures. Our restricted stock grants vest based upon the completion of a service period (“service-based grants”). Service-based grants are valued according to the determined value per share for our common stock at the date of grant. Awards of service-based grants of stock are expensed as compensation on a straight-line basis over the vesting period. Reclassifications —The following line item on our consolidated balance sheets as of December 31, 2015 , was reclassified to conform to the current year presentation: • Acquired Intangible Lease Assets was separated into Acquired Above-Market Lease Assets and Acquired In-Place Lease Assets. The following line item on our consolidated statement of cash flows for the nine months ended September 30, 2015 was reclassified to conform to the current year presentation: • Change in Fair Value of Derivative was reclassified to Other. Newly Adopted and Recently Issued Accounting Pronouncements —In April 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-03, Interest - Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). This update amends existing guidance to require the presentation of certain debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”). This update provides guidance regarding the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. We adopted ASU 2015-03 and ASU 2015-15 on January 1, 2016, and retrospectively applied the guidance for all periods presented. Unamortized debt issuance costs of $9.0 million and $8.6 million are included in Mortgages and Loans Payable, Net as of September 30, 2016 and December 31, 2015, respectively, which were previously included in Deferred Financing Expense, Net on our consolidated balance sheets. The remaining amounts included in Other Assets, Net on our consolidated balance sheets were related to our revolving credit facility. The adoption did not have an impact on our results of operations (see Note 5 ). In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis to ASC Topic 810 Consolidation (“ASU 2015-02”). ASU 2015-02 includes all reporting entities within the scope of Subtopic 810-10 Consolidation - Overall , including limited partnerships and similar legal entities, unless a scope exception applies. Overall the amendments in this update are to simplify the codification and reduce the number of consolidation models and place more emphasis on risk of loss when determining controlling financial interests. ASU 2015-02 was effective beginning in the first quarter of the year ending December 31, 2016. We have evaluated the impact of the adoption of ASU 2015-02 on our consolidated financial statements and have determined under ASU 2015-02 that the Operating Partnership is considered a variable interest entity (“VIE”). We are the primary beneficiary of the VIE and our partnership interest is considered a majority voting interest. As such, this standard did not have a material impact on our consolidated financial statements. The following table provides a brief description of recent accounting pronouncements that could have a material effect on our financial statements: Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers This update outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU 2014-09 states that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” While ASU 2014-09 specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate or equipment. In 2015, the FASB provided for a one-year deferral of the effective date for ASU 2014-09, making it effective for annual reporting periods beginning after December 15, 2017. January 1, 2018 We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements. ASU 2016-02, Leases (Topic 842) This update amends existing guidance by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. It is effective for annual reporting periods beginning after December 15, 2018, but early adoption is permitted. January 1, 2019 We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurement (“ASC 820”) defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. ASC 820 emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement. Fair value is defined by ASC 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows: Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). Level 3—Unobservable inputs, only used to the extent that observable inputs are not available, reflect our assumptions about the pricing of an asset or liability. Considerable judgment is necessary to develop estimated fair values of financial and non-financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we did or could actually realize upon disposition of the financial assets and liabilities previously sold or currently held. The following describes the methods we use to estimate the fair value of our financial and non-financial assets and liabilities: Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, and Accounts Payable and Other Liabilities —We consider the carrying values of these financial instruments to approximate fair value because of the short period of time between origination of the instruments and their expected realization. Real Estate Investments —The purchase prices of the investment properties, including related lease intangible assets and liabilities, were allocated at estimated fair value based on Level 3 inputs, such as discount rates, capitalization rates, comparable sales, replacement costs, income and expense growth rates, and current market rents and allowances as determined by management. Real estate assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the individual property may not be recoverable, or at least annually. In such an event, a comparison will be made of the projected operating cash flows of each property on an undiscounted basis to the carrying amount of such property. Such carrying amount would be adjusted, if necessary, to estimated fair values to reflect impairment in the value of the asset. Mortgages and Loans Payable —We estimate the fair value of our debt by discounting the future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturities by our lenders using Level 3 inputs. The discount rate used approximates current lending rates for loans or groups of loans with similar maturities and credit quality, assuming the debt is outstanding through maturity and considering the debt’s collateral (if applicable). We have utilized market information, as available, or present value techniques to estimate the amounts required to be disclosed. The following is a summary of discount rates and borrowings as of September 30, 2016 and December 31, 2015 (dollars in thousands): September 30, 2016 December 31, 2015 Discount rates: Unsecured variable-rate debt 1.88% - 2.23% 1.66 % Secured fixed-rate debt 3.05 % 2.75 % Secured variable-rate debt 2.78 % 2.36 % Borrowings: Fair value $ 970,056 $ 880,854 Recorded value (1) 955,029 854,079 (1) Recorded value does not include deferred financing costs of $9.0 million and $8.6 million as of September 30, 2016 and December 31, 2015 , respectively. Derivative Instruments — In April 2015, we entered into three interest rate swap agreements with a notional amount of $387 million that are measured at fair value on a recurring basis. These interest rate swap agreements effectively fix the LIBOR portion of the interest rate on $387 million of outstanding debt under our existing unsecured term loan facility. These swaps qualify and have been designated as cash flow hedges. As of September 30, 2016 and December 31, 2015 , we were party to an interest rate swap agreement with a notional amount of $11.1 million and $11.3 million , respectively. The interest rate swap was assumed as part of an acquisition and is measured at fair value on a recurring basis. The interest rate swap agreement, in effect, fixes the variable interest rate of one of our secured variable-rate mortgage notes at an annual interest rate of 5.22% through June 2018. The fair values of the interest rate swap agreements as of September 30, 2016 and December 31, 2015 , were based on the estimated amount we would receive or pay to terminate the contract at the reporting date and were determined using interest rate pricing models and interest rate-related observable inputs. Although we determined that the significant inputs used to value our derivatives fell within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our counterparties and our own credit risk utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of September 30, 2016 and December 31, 2015 , we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative position and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. We record derivative liabilities in Accounts Payable and Other Liabilities and derivative assets in Other Assets, Net on our consolidated balance sheets. The fair value measurements of our financial liability and asset as of September 30, 2016 and December 31, 2015 , are as follows (in thousands): September 30, 2016 December 31, 2015 Derivative liability (asset) designated as hedging instruments: Interest rate swaps - unsecured term loan facility $ 6,813 $ (22 ) Derivative liability not designated as hedging instrument: Interest rate swap - mortgage note 376 442

Real Estate Acquisitions

Real Estate Acquisitions	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Real Estate Acquisitions	REAL ESTATE ACQUISITIONS During the nine months ended September 30, 2016 , we acquired three grocery-anchored shopping centers and additional real estate adjacent to previously acquired shopping centers for an aggregate purchase price of approximately $130.9 million . During the nine months ended September 30, 2015 , we acquired nine grocery-anchored shopping centers and additional real estate adjacent to a previously acquired shopping center for an aggregate purchase price of approximately $119.6 million , including $30.5 million of assumed debt with a fair value of $ 31.7 million . The following tables present certain additional information regarding our acquisitions of properties during the nine months ended September 30, 2016 and 2015 . For the nine months ended September 30, 2016 and 2015 , we allocated the purchase price of acquisitions to the fair value of the assets acquired and liabilities assumed as follows (in thousands): 2016 2015 Land and improvements $ 47,834 $ 37,369 Building and improvements 74,709 73,778 Acquired in-place leases 12,300 11,121 Acquired above-market leases 2,398 1,241 Acquired below-market leases (6,313 ) (3,901 ) Total assets and lease liabilities acquired 130,928 119,608 Less: Fair value of assumed debt at acquisition (1) — 31,743 Net assets acquired $ 130,928 $ 87,865 (1) Debt assumed for the nine months ended September 30, 2015 relates to five grocery-anchored shopping centers and the additional real estate adjacent to a previously acquired grocery-anchored shopping center. The weighted-average amortization periods for in-place, above-market, and below-market lease intangibles acquired during the nine months ended September 30, 2016 and 2015 , are as follows (in years): 2016 2015 Acquired in-place leases 12 14 Acquired above-market leases 6 9 Acquired below-market leases 22 19 The amounts recognized for revenues, acquisition expenses, and net loss from each respective acquisition date to September 30, 2016 and 2015 , related to the operating activities of our acquisitions are as follows (in thousands): 2016 2015 Revenues $ 2,733 $ 5,680 Acquisition expenses 1,942 2,078 Net loss 1,339 1,406 The following unaudited pro forma information summarizes selected financial information from our combined results of operations as if all of our acquisitions for 2016 and 2015 had been acquired on January 1, 2015 . Acquisition expenses related to each respective acquisition are not expected to have a continuing impact and, therefore, have been excluded from these pro forma results. This pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of the period, nor does it purport to represent the results of future operations. Three Months Ended Nine Months Ended (in thousands) 2016 2015 2016 2015 Pro forma revenues $ 66,074 $ 61,720 $ 198,011 $ 191,798 Pro forma net income attributable to stockholders 3,227 5,884 8,768 21,401

Mortgages and Loans Payable

Mortgages and Loans Payable	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Mortgages and Loans Payable	MORTGAGES AND LOANS PAYABLE Our credit agreement provides access to an unsecured revolving credit facility and an unsecured term loan facility. The revolving credit facility has a capacity of $500 million with a current interest rate of LIBOR plus 1.3% . The revolving credit facility matures in December 2017 with additional options to extend the maturity to December 2018. The unsecured term loans include three tranches with an interest rate of LIBOR plus 1.25% . The first tranche has a principal amount of $100 million and matures in February 2019 , with two 12 -month options to extend the maturity to February 2021. The second tranche has a principal amount of $175 million and matures in February 2020 , with an option to extend the maturity to February 2021. The third tranche has a principal amount of $125 million and matures in February 2021 . A maturity date extension for the first or second tranche requires the payment of an extension fee of 0.15% of the outstanding principal amount of the corresponding tranche. In September 2016, we entered into a new credit agreement, which provides for a new unsecured term loan facility with an interest rate of LIBOR plus 1.70% . This term loan has a principal amount of $230 million and matures in September 2023 . On October 20, 2016, we amended this term loan facility to increase the aggregate lender commitments from $230 million to $255 million . On October 20, 2016, we entered into a forward starting interest rate swap agreement to fix LIBOR under this term loan beginning July 1, 2017. The swap has a notional amount of $255 million and fixes the LIBOR at 1.329% with a maturity date of September 16, 2023. As of September 30, 2016 and December 31, 2015 , the weighted-average interest rate for all of our mortgages and loans payable was 3.0% and 3.5% , respectively. The following is a summary of our debt obligations as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Unsecured term loans - fixed-rate (1) $ 387,000 $ 387,000 Unsecured term loans - variable-rate 243,000 13,000 Unsecured revolving credit facility - variable-rate (2) 117,469 141,000 Fixed-rate mortgages payable (3)(4) 202,813 306,435 Assumed below-market debt adjustment, net (5) 4,747 6,644 Deferred financing costs, net (6) (8,987 ) (8,564 ) Total $ 946,042 $ 845,515 (1) As of September 30, 2016 and December 31, 2015 , the interest rate on $387 million outstanding under our term loans was, effectively, fixed at various interest rates by three interest rate swap agreements with maturities ranging from February 2019 to February 2021 (see Notes 3 and 7 ). (2) The gross borrowings under our revolving credit facility were $480.8 million during the nine months ended September 30, 2016 . The gross payments under our credit facility were $504.3 million during the nine months ended September 30, 2016 . (3) Due to the non-recourse nature of our fixed-rate mortgages, the assets and liabilities of the properties securing such mortgages are neither available to pay the debts of the consolidated property-holding limited liability companies nor do they constitute obligations of such consolidated limited liability companies as of September 30, 2016 and December 31, 2015 . (4) As of September 30, 2016 and December 31, 2015 , the interest rate on one of our variable-rate mortgage notes payable was, in effect, fixed at 5.22% by an interest rate swap agreement (see Notes 3 and 7 ). (5) Net of accumulated amortization of $5.6 million and $6.5 million as of September 30, 2016 and December 31, 2015 , respectively. (6) Net of accumulated amortization of $3.3 million and $2.8 million as of September 30, 2016 and December 31, 2015 , respectively. Deferred financing costs related to the revolving credit facility were $2.8 million and $4.7 million , as of September 30, 2016 and December 31, 2015 , respectively, which is net of accumulated amortization of $6.2 million and $4.8 million , respectively, and are included in Other Assets, Net.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Litigation In the ordinary course of business, we may become subject to litigation or claims. There are no material legal proceedings pending, or known to be contemplated, against us. Environmental Matters In connection with the ownership and operation of real estate, we may be potentially liable for costs and damages related to environmental matters. We record liabilities as they arise related to environmental obligations. We have not been notified by any governmental authority of any material non-compliance, liability or other claim, nor are we aware of any other environmental condition that we believe will have a material impact on our consolidated financial statements.

Derivatives and Hedging Activit

Derivatives and Hedging Activities	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Hedging Activities	DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposure to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of our debt funding and the use of derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to our investments and borrowings. Cash Flow Hedges of Interest Rate Risk Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for our making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive (Loss) Income (“AOCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the nine months ended September 30, 2016 , such derivatives were used to hedge the variable cash flows associated with certain variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. As of September 30, 2016 , we had three interest rate swaps with a notional amount of $387.0 million that were designated as cash flow hedges of interest rate risk. Amounts reported in AOCI related to these derivatives will be reclassified to Interest Expense, Net as interest payments are made on the variable-rate debt. During the next 12 months, we estimate that an additional $2.8 million will be reclassified from Other Comprehensive Loss as an increase to Interest Expense, Net. Derivatives Not Designated as Hedging Instruments Derivatives not designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other identified risks, but do not meet the strict hedge accounting requirements to be classified as hedging instruments. Changes in the fair value of these derivative instruments, as well as any payments, are recorded directly in Other Expense, Net and resulted in a gain of $34,000 and a loss of $112,000 for the three months ended September 30, 2016 and 2015 , respectively. Changes in the fair value of these derivative instruments, as well as any payments, resulted in losses of $127,000 and $239,000 for the nine months ended September 30, 2016 and 2015 , respectively. Tabular Disclosure of the Effect of Derivative Instruments on AOCI and the Consolidated Statements of Operations and Comprehensive Income (Loss) The table below presents the changes in AOCI and the effect of our derivative financial instruments on the consolidated statements of operations and comprehensive income (loss) for the nine months ended September 30, 2016 and 2015 (in thousands): Balance in AOCI as of January 1, 2015 $ — Amount of loss recognized in other comprehensive income on derivative $ (6,253 ) Amount of loss reclassified from AOCI into interest expense 1,981 Current-period other comprehensive loss (4,272 ) Balance in AOCI as of September 30, 2015 $ (4,272 ) Balance in AOCI as of January 1, 2016 $ 22 Amount of loss recognized in other comprehensive income on derivative $ (9,597 ) Amount of loss reclassified from AOCI into interest expense 2,762 Current-period other comprehensive loss (6,835 ) Balance in AOCI as of September 30, 2016 $ (6,813 ) Credit-risk-related Contingent Features We have agreements with our derivative counterparties that contain provisions where, if we either default or are capable of being declared in default on any of our indebtedness, we could also be declared to be in default on our derivative obligations. As of September 30, 2016 and December 31, 2015 , the fair value of our derivatives excluded any adjustment for nonperformance risk related to this agreement. As of September 30, 2016 and December 31, 2015 , we had not posted any collateral related to this agreement.

Equity

Equity	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
Equity	EQUITY On April 14, 2016 , our board of directors reaffirmed its estimated value per share of our common stock of $10.20 based substantially on the estimated market value of our portfolio of real estate properties as of March 31, 2016 . We engaged a third party valuation firm to provide a calculation of the range in estimated value per share of our common stock as of March 31, 2016 , which reflected certain balance sheet assets and liabilities as of that date. Tender Offer — On April 25, 2016, in order to deter an unsolicited tender offer by a third party and to deter other potential future bidders that may try to exploit the illiquidity of shares of our common stock and acquire them from stockholders at prices substantially below their value, we launched a self-tender offer to purchase up to 9.3 million shares of our common stock. The tender offer expired on June 7, 2016, and in connection therewith, we repurchased 69,271 shares of common stock at a price of $6.00 per share, for an aggregate purchase price of approximately $416,000 . Dividend Reinvestment Plan —We have adopted a dividend reinvestment plan (the “DRIP”) that allows stockholders to invest distributions in additional shares of our common stock. For the three and nine months ended September 30, 2016 , shares were issued under the DRIP at a price of $10.20 per share. Share Repurchase Program —Our share repurchase program provides an opportunity for stockholders to have shares of common stock repurchased, subject to certain restrictions and limitations. Our share repurchase program was temporarily suspended during the tender offer as required by SEC rules. No repurchases were made under the share repurchase program during the tender offer and for ten business days thereafter. Redemption requests that were submitted through the share repurchase program during the tender offer were not accepted for consideration. The share repurchase program was reinstated on June 22, 2016. During the first three quarters of 2016, repurchase requests continued to surpass the funding limits under the share repurchase program. Due to the program’s funding limits, the funds available for repurchases during the fourth quarter of 2016 will be insufficient to meet all requests. Because we are unable to fulfill all repurchase requests in any month, we will honor requests on a pro rata basis to the extent possible. We continue to fulfill repurchases sought upon a stockholder’s death, determination of incompetence or qualifying disability in accordance with the terms of the share repurchase program. On April 14, 2016, our board of directors amended and restated the share repurchase program. The amendment provides that the board of directors reserves the right, in its sole discretion, at any time and from time to time, to reject any request for repurchase, and clarifies that the cash available for repurchases on any particular date will generally be limited to the proceeds from the DRIP during the preceding four fiscal quarters, less amounts already used for repurchases since the beginning of that period. The amendment was effective as of May 15, 2016. As a result of this amendment, we no longer record amounts that are redeemable under the share repurchase program as redeemable common stock on our consolidated balance sheets. Since the program’s funding limits were surpassed as of the effective date of the amendment, there was no impact to redeemable stock on the consolidated balance sheets at the date of the amendment. Class B and Operating Partnership Units —The Operating Partnership issues limited partnership units that are designated as Class B units and Operating Partnership units (“OP units”) for asset management services provided by PE-NTR. The vesting of the Class B units is contingent upon a market condition and service condition. OP units may be exchanged at the election of the holder for cash or, at the option of the Operating Partnership, for shares of our common stock, under the terms of exchange rights agreements to be prepared at a future date, provided, however, that the OP units have been outstanding for at least one year. PE-NTR has agreed under the PE-NTR Agreement not to exchange any OP units it may hold until the listing of our common stock or the liquidation of our portfolio occurs. As the form of the redemptions for the OP units is within our control, the OP units issued as of September 30, 2016 are classified as Noncontrolling Interests within permanent equity on our consolidated balance sheets. Additionally, the cumulative distributions that have been paid on these OP units are included in Distributions to Noncontrolling Interests on the consolidated statements of equity. Below is a summary of our outstanding OP units and unvested Class B units as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 OP units 2,785 2,785 Class B units 2,473 2,083

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE We use the two-class method of computing earnings per share (“EPS”), which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared (whether paid or unpaid). Under the two-class method, basic EPS is computed by dividing the sum of distributed earnings to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity. Class B units and OP units held by limited partners other than us are considered to be participating securities because they contain non-forfeitable rights to dividends or dividend equivalents and they have the potential to be exchanged for shares of our common stock in accordance with the terms of the Operating Partnership’s Second Amended and Restated Agreement of Limited Partnership, as amended (the “Partnership Agreement”). The impact of these Class B units and OP units on basic and diluted EPS has been calculated using the two-class method whereby earnings are allocated to the Class B units and OP units based on dividends declared and the units’ participation rights in undistributed earnings. The effects of the two-class method on basic and diluted EPS were immaterial to the consolidated financial statements as of September 30, 2016 and 2015 . Since the OP units are fully vested, they were included in the diluted net income per share computations for the three and nine months ended September 30, 2016 and 2015 . The vesting of the Class B units is contingent upon a market condition and service condition. Since the satisfaction of both conditions was not probable as of September 30, 2016 and 2015 , the Class B units remained unvested and thus were not included in the diluted net income per share computations. There were 2.5 million and 1.4 million unvested Class B units outstanding as of September 30, 2016 and 2015 , respectively, which had no effect on EPS. In the third quarter of 2016, we awarded shares of restricted stock to our independent directors under our Amended and Restated 2010 Independent Director Stock Plan. Approximately 9,800 shares of restricted stock were granted and are potentially dilutive for the three and nine months ended September 30, 2016 . The following table provides a reconciliation of the numerator and denominator of the earnings per unit calculations for the three and nine months ended September 30, 2016 and 2015 (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator for basic and diluted earnings per share: Net income attributable to stockholders $ 2,464 $ 5,183 $ 5,243 $ 15,524 Denominator: Denominator for basic earnings per share - weighted-average shares 184,639 185,271 183,471 184,209 Effect of dilutive OP units/Class B units 2,785 2,786 2,785 2,693 Effect of restricted stock awards 4 — 4 — Denominator for diluted earnings per share - adjusted weighted-average shares 187,428 188,057 186,260 186,902 Earnings per common share: Net income attributable to stockholders - basic and diluted $ 0.01 $ 0.03 $ 0.03 $ 0.08

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS Economic Dependency —We are dependent on PE-NTR, Phillips Edison & Company Ltd. (the “Property Manager”), and their respective affiliates for certain services that are essential to us, including asset acquisition and disposition decisions, asset management, operating and leasing of our properties, and other general and administrative responsibilities. In the event that PE-NTR, the Property Manager, and/or their respective affiliates are unable to provide such services, we would be required to find alternative service providers, which could result in higher costs and expenses. As of September 30, 2016 and December 31, 2015 , PE-NTR owned 176,509 shares of our common stock, or approximately 0.1% of our outstanding common stock issued during our initial public offering period, which closed in February 2014. PE-NTR may not sell any of these shares while serving as our advisor. Advisory Agreement —Pursuant to the PE-NTR Agreement effective as of December 3, 2014, PE-NTR is entitled to specified fees for certain services, including managing our day-to-day activities and implementing our investment strategy. PE-NTR manages our day-to-day affairs and our portfolio of real estate investments subject to the board’s supervision. Expenses are reimbursed to PE-NTR based on amounts incurred on our behalf. In October 2015, we entered into amended agreements to revise certain fees that are paid to PE-NTR in consideration for the advisory services that PE-NTR provides to us. Beginning October 1, 2015, we no longer pay a 0.75% financing fee to PE-NTR. The asset management fee remains at 1% of the cost of our assets but is paid 80% in cash and 20% in Class B units of the Operating Partnership. The cash portion is paid on a monthly basis in arrears, in the amount of 0.06667% multiplied by the cost of our assets as of the last day of the preceding monthly period. Acquisition Fee —We pay PE-NTR an acquisition fee related to services provided in connection with the selection and purchase or origination of real estate and real estate-related investments. The acquisition fee is equal to 1% of the cost of investments we acquire or originate, including any debt attributable to such investments. Acquisition Expenses —We reimburse PE-NTR for direct expenses incurred related to selecting, evaluating, and acquiring assets on our behalf, including certain personnel costs. Asset Management Subordinated Participation —Within 60 days after the end of each calendar quarter (subject to the approval of our board of directors), we will pay an asset management subordinated participation partially by issuing a number of restricted operating partnership units designated as Class B Units to PE-NTR and American Realty Capital II Advisors, LLC (“ARC”), equal to: (i) the product of (x) the cost of our assets multiplied by (y) 0.05% (0.25% prior to October 1, 2015); divided by (ii) the most recent primary offering price for a share of our common stock as of the last day of such calendar quarter less any selling commissions and dealer manager fees that would have been payable in connection with that offering. PE-NTR and ARC are entitled to receive distributions on the Class B units (and OP units converted from previously issued and vested Class B units) at the same rate as distributions are paid to common stockholders. Such distributions are in addition to the incentive compensation that PE-NTR, ARC, and their affiliates may receive from us. We continue to issue Class B units to PE-NTR and ARC in connection with the asset management services provided by PE-NTR under our current advisory agreement. These Class B units will not vest until the economic hurdle is met in conjunction with (i) a termination of the PE-NTR Agreement by our independent directors without cause, (ii) a listing event, or (iii) a liquidity event; provided that PE-NTR serves as our advisor at the time of any of the foregoing events. During the nine months ended September 30, 2016 and 2015 , the Operating Partnership issued 0.4 million and 1.4 million Class B units, respectively, to PE-NTR and ARC under the PE-NTR Agreement for asset management services performed by PE-NTR. Disposition Fee —We pay PE-NTR for substantial assistance by PE-NTR or any of its affiliates in connection with the sale of properties or other investments 2% of the contract sales price of each property or other investment sold. The conflicts committee of our board of directors determines whether PE-NTR or its affiliates have provided substantial assistance to us in connection with the sale of an asset. Substantial assistance in connection with the sale of a property includes PE-NTR or its affiliates’ preparation of an investment package for the property (including an investment analysis, rent rolls, tenant information regarding credit, a property title report, an environmental report, a structural report and exhibits) or such other substantial services performed by PE-NTR or its affiliates in connection with a sale. However, if we sold an asset to an affiliate, our organizational documents would prohibit us from paying a disposition fee to PE-NTR or its affiliates. General and Administrative Expenses —As of September 30, 2016 and December 31, 2015 , we owed PE-NTR $83,000 and $124,000 , respectively, for general and administrative expenses paid on our behalf. Summarized below are the fees earned by and the expenses reimbursable to PE-NTR and ARC, except for unpaid general and administrative expenses, which we disclose above, for the three and nine months ended September 30, 2016 and 2015 , and any related amounts unpaid as of September 30, 2016 and December 31, 2015 (in thousands): Three Months Ended Nine Months Ended Unpaid Amount as of September 30, September 30, September 30, December 31, 2016 2015 2016 2015 2016 2015 Acquisition fees (1) $ 367 $ 102 $ 1,307 $ 1,185 $ — $ — Acquisition expenses (1) 73 18 228 180 — — Asset management fees (2) 4,852 — 14,182 — 1,635 1,538 OP units distribution (3) 470 452 1,398 1,350 153 159 Class B units distribution (4) 408 200 1,144 311 136 119 Financing fees (5) — 3,048 — 3,228 — — Disposition fees (6) — 21 — 21 — — Total $ 6,170 $ 3,841 $ 18,259 $ 6,275 $ 1,924 $ 1,816 (1) The acquisition fees and expenses are presented as Acquisition Expenses on the consolidated statements of operations. (2) Asset management fees are presented in General and Administrative on the consolidated statements of operations. (3) The distributions paid to holders of OP units are presented as Distributions to Noncontrolling Interests on the consolidated statements of equity. (4) The distributions paid to holders of unvested Class B units are presented in General and Administrative on the consolidated statements of operations. (5) Financing fees are presented in Other Assets, Net or Mortgages and Loans Payable, Net, on the consolidated balance sheets and amortized over the term of the related loan. As of October 1, 2015, we are no longer required to pay financing fees. (6) Disposition fees are presented as Other Income (Expense), Net on the consolidated statements of operations. Property Manager —All of our real properties are managed and leased by the Property Manager. The Property Manager is wholly owned by our Phillips Edison sponsor. The Property Manager also manages real properties acquired by Phillips Edison affiliates and other third parties. Property Management Fee —We pay to the Property Manager a monthly property management fee of 4% of the monthly gross cash receipts from the properties it manages. Leasing Commissions —In addition to the property management fee, if the Property Manager provides leasing services with respect to a property, we pay the Property Manager leasing fees in an amount equal to the leasing fees charged by unaffiliated persons rendering comparable services based on national market rates. The Property Manager shall be paid a leasing fee in connection with a tenant’s exercise of an option to extend an existing lease, and the leasing fees payable to the Property Manager may be increased by up to 50% in the event that the Property Manager engages a co-broker to lease a particular vacancy. Construction Management Fee —If we engage the Property Manager to provide construction management services with respect to a particular property, we pay a construction management fee in an amount that is usual and customary for comparable services rendered to similar projects in the geographic market of the property. Expenses and Reimbursements —The Property Manager hires, directs, and establishes policies for employees who have direct responsibility for the operations of each real property it manages, which may include, but is not limited to, on-site managers and building and maintenance personnel. Certain employees of the Property Manager may be employed on a part-time basis and may also be employed by PE-NTR or certain of its affiliates. The Property Manager also directs the purchase of equipment and supplies and supervises all maintenance activity. We reimburse the costs and expenses incurred by the Property Manager on our behalf, including employee compensation, legal, travel, and other out-of-pocket expenses that are directly related to the management of specific properties and corporate matters, as well as fees and expenses of third-party accountants. Summarized below are the fees earned by and the expenses reimbursable to the Property Manager for the three and nine months ended September 30, 2016 and 2015 , and any related amounts unpaid as of September 30, 2016 and December 31, 2015 (in thousands): Three Months Ended Nine Months Ended Unpaid Amount as of September 30, September 30, September 30, December 31, 2016 2015 2016 2015 2016 2015 Property management fees (1) $ 2,457 $ 2,272 $ 7,456 $ 6,864 $ 782 $ 755 Leasing commissions (2) 1,828 992 5,570 5,012 609 729 Construction management fees (2) 251 345 664 756 106 155 Other fees and reimbursements (3) 1,499 1,334 4,064 3,355 721 1,699 Total $ 6,035 $ 4,943 $ 17,754 $ 15,987 $ 2,218 $ 3,338 (1) The property management fees are included in Property Operating on the consolidated statements of operations. (2) Leasing commissions paid for leases with terms less than one year are expensed immediately and included in Depreciation and Amortization on the consolidated statements of operations. Leasing commissions paid for leases with terms greater than one year, and construction management fees, are capitalized and amortized over the life of the related leases or assets. (3) Other fees and reimbursements are included in Property Operating and General and Administrative on the consolidated statements of operations based on the nature of the expense.

Operating Leases

Operating Leases	9 Months Ended
	Sep. 30, 2016
Leases, Operating [Abstract]
Operating Leases	OPERATING LEASES The terms and expirations of our operating leases with our tenants vary. The lease agreements frequently contain options to extend the terms of leases and other terms and conditions as negotiated. We retain substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Approximate future rentals to be received under non-cancelable operating leases in effect as of September 30, 2016 , assuming no new or renegotiated leases or option extensions on lease agreements, are as follows (in thousands): Year Amount October 1 to December 31, 2016 $ 49,147 2017 187,310 2018 169,454 2019 145,491 2020 122,599 2021 and thereafter 428,057 Total $ 1,102,058 No single tenant comprised 10% or more of our aggregate annualized base rent as of September 30, 2016 .

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Distributions to Stockholders Distributions equal to a daily amount of $0.00183060 per share of common stock outstanding were paid subsequent to September 30, 2016 , to the stockholders of record from September 1, 2016, through October 31, 2016, as follows (in thousands): Distribution Period Date Distribution Paid Gross Amount of Distribution Paid Distribution Reinvested through the DRIP Net Cash Distribution September 1, 2016, through September 30, 2016 10/1/2016 $ 10,161 $ 4,683 $ 5,478 October 1, 2016, through October 31, 2016 11/1/2016 10,518 4,822 5,696 On November 1, 2016, our board of directors authorized distributions to the stockholders of record at the close of business each day in the period commencing December 1, 2016, through December 31, 2016 equal to a daily amount of $0.00183060 per share of common stock. The board of directors also authorized distributions to stockholders for January 1, 2017 through February 28, 2017 equal to a daily amount of $0.00183562 per share of common stock. Acquisitions Subsequent to September 30, 2016 , we acquired the following properties (dollars in thousands): Property Name Location Anchor Tenant Acquisition Date Purchase Price Square Footage Leased % of Rentable Square Feet at Acquisition Oak Mill Plaza Niles, IL Jewel-Osco 10/3/2016 $ 22,225 152,786 96.1 % Southern Palms Tempe, AZ Sprouts 10/26/2016 36,300 257,979 85.9 % Golden Eagle Village Clermont, FL Publix 10/27/2016 11,200 64,050 88.4 % The supplemental purchase accounting disclosures required by GAAP relating to the recent acquisitions of the aforementioned properties have not been presented as the initial accounting for these acquisitions was incomplete at the time this Quarterly Report on Form 10-Q was filed with the SEC. Share Repurchase Program In October 2016, approximately $11.2 million was available for repurchases under our Share Repurchase Program. Investors who had submitted share repurchase requests by October 24, 2016 and that were in good order had their shares repurchased on a prorata basis. The 7.4 million shares of unfulfilled repurchase requests, as well as requests that were not in good order, will be treated as requests for repurchase during future months until satisfied or withdrawn.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation —The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Readers of this Quarterly Report on Form 10-Q should refer to the audited consolidated financial statements of Phillips Edison Grocery Center REIT I, Inc. for the year ended December 31, 2015 , which are included in our 2015 Annual Report on Form 10-K. In the opinion of management, all normal and recurring adjustments necessary for the fair presentation of the unaudited consolidated financial statements for the periods presented have been included in this Quarterly Report. Our results of operations for the three and nine months ended September 30, 2016 , are not necessarily indicative of the operating results expected for the full year. The accompanying consolidated financial statements include our accounts and those of our majority-owned subsidiaries. All intercompany balances and transactions are eliminated upon consolidation.
Share-based Compensation, Option and Incentive Plans Policy	Share-based Compensation —We account for our share-based compensation plan based on the Financial Accounting Standards Board (“FASB”) guidance which requires that compensation expense be recognized based on the fair value of the stock awards less estimated forfeitures. Our restricted stock grants vest based upon the completion of a service period (“service-based grants”). Service-based grants are valued according to the determined value per share for our common stock at the date of grant. Awards of service-based grants of stock are expensed as compensation on a straight-line basis over the vesting period.
Reclassifications	Reclassifications —The following line item on our consolidated balance sheets as of December 31, 2015 , was reclassified to conform to the current year presentation: • Acquired Intangible Lease Assets was separated into Acquired Above-Market Lease Assets and Acquired In-Place Lease Assets. The following line item on our consolidated statement of cash flows for the nine months ended September 30, 2015 was reclassified to conform to the current year presentation: • Change in Fair Value of Derivative was reclassified to Other.
Impact of Recently Issued Accounting Pronouncements	Newly Adopted and Recently Issued Accounting Pronouncements —In April 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-03, Interest - Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). This update amends existing guidance to require the presentation of certain debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”). This update provides guidance regarding the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. We adopted ASU 2015-03 and ASU 2015-15 on January 1, 2016, and retrospectively applied the guidance for all periods presented. Unamortized debt issuance costs of $9.0 million and $8.6 million are included in Mortgages and Loans Payable, Net as of September 30, 2016 and December 31, 2015, respectively, which were previously included in Deferred Financing Expense, Net on our consolidated balance sheets. The remaining amounts included in Other Assets, Net on our consolidated balance sheets were related to our revolving credit facility. The adoption did not have an impact on our results of operations (see Note 5 ). In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis to ASC Topic 810 Consolidation (“ASU 2015-02”). ASU 2015-02 includes all reporting entities within the scope of Subtopic 810-10 Consolidation - Overall , including limited partnerships and similar legal entities, unless a scope exception applies. Overall the amendments in this update are to simplify the codification and reduce the number of consolidation models and place more emphasis on risk of loss when determining controlling financial interests. ASU 2015-02 was effective beginning in the first quarter of the year ending December 31, 2016. We have evaluated the impact of the adoption of ASU 2015-02 on our consolidated financial statements and have determined under ASU 2015-02 that the Operating Partnership is considered a variable interest entity (“VIE”). We are the primary beneficiary of the VIE and our partnership interest is considered a majority voting interest. As such, this standard did not have a material impact on our consolidated financial statements. The following table provides a brief description of recent accounting pronouncements that could have a material effect on our financial statements: Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers This update outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU 2014-09 states that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” While ASU 2014-09 specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate or equipment. In 2015, the FASB provided for a one-year deferral of the effective date for ASU 2014-09, making it effective for annual reporting periods beginning after December 15, 2017. January 1, 2018 We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements. ASU 2016-02, Leases (Topic 842) This update amends existing guidance by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. It is effective for annual reporting periods beginning after December 15, 2018, but early adoption is permitted. January 1, 2019 We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.

Fair Value Measurements Fair Va

Fair Value Measurements Fair Value Measurements (Policies)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurement, Policy	ASC 820, Fair Value Measurement (“ASC 820”) defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. ASC 820 emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement. Fair value is defined by ASC 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows: Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). Level 3—Unobservable inputs, only used to the extent that observable inputs are not available, reflect our assumptions about the pricing of an asset or liability.

Earnings Per Share Earnings Per

Earnings Per Share Earnings Per Share (Policies)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share, Policy	We use the two-class method of computing earnings per share (“EPS”), which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared (whether paid or unpaid). Under the two-class method, basic EPS is computed by dividing the sum of distributed earnings to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity. Class B units and OP units held by limited partners other than us are considered to be participating securities because they contain non-forfeitable rights to dividends or dividend equivalents and they have the potential to be exchanged for shares of our common stock in accordance with the terms of the Operating Partnership’s Second Amended and Restated Agreement of Limited Partnership, as amended (the “Partnership Agreement”). The impact of these Class B units and OP units on basic and diluted EPS has been calculated using the two-class method whereby earnings are allocated to the Class B units and OP units based on dividends declared and the units’ participation rights in undistributed earnings.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The following table provides a brief description of recent accounting pronouncements that could have a material effect on our financial statements: Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers This update outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU 2014-09 states that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” While ASU 2014-09 specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate or equipment. In 2015, the FASB provided for a one-year deferral of the effective date for ASU 2014-09, making it effective for annual reporting periods beginning after December 15, 2017. January 1, 2018 We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements. ASU 2016-02, Leases (Topic 842) This update amends existing guidance by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. It is effective for annual reporting periods beginning after December 15, 2018, but early adoption is permitted. January 1, 2019 We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Inputs, Liabilities, Quantitative Information	The following is a summary of discount rates and borrowings as of September 30, 2016 and December 31, 2015 (dollars in thousands): September 30, 2016 December 31, 2015 Discount rates: Unsecured variable-rate debt 1.88% - 2.23% 1.66 % Secured fixed-rate debt 3.05 % 2.75 % Secured variable-rate debt 2.78 % 2.36 % Borrowings: Fair value $ 970,056 $ 880,854 Recorded value (1) 955,029 854,079 (1) Recorded value does not include deferred financing costs of $9.0 million and $8.6 million as of September 30, 2016 and December 31, 2015 , respectively.
Fair Value, Liabilities Measured on a Recurring Basis	We record derivative liabilities in Accounts Payable and Other Liabilities and derivative assets in Other Assets, Net on our consolidated balance sheets. The fair value measurements of our financial liability and asset as of September 30, 2016 and December 31, 2015 , are as follows (in thousands): September 30, 2016 December 31, 2015 Derivative liability (asset) designated as hedging instruments: Interest rate swaps - unsecured term loan facility $ 6,813 $ (22 ) Derivative liability not designated as hedging instrument: Interest rate swap - mortgage note 376 442

Real Estate Acquisitions (Table

Real Estate Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	For the nine months ended September 30, 2016 and 2015 , we allocated the purchase price of acquisitions to the fair value of the assets acquired and liabilities assumed as follows (in thousands): 2016 2015 Land and improvements $ 47,834 $ 37,369 Building and improvements 74,709 73,778 Acquired in-place leases 12,300 11,121 Acquired above-market leases 2,398 1,241 Acquired below-market leases (6,313 ) (3,901 ) Total assets and lease liabilities acquired 130,928 119,608 Less: Fair value of assumed debt at acquisition (1) — 31,743 Net assets acquired $ 130,928 $ 87,865 (1) Debt assumed for the nine months ended September 30, 2015 relates to five grocery-anchored shopping centers and the additional real estate adjacent to a previously acquired grocery-anchored shopping center.
Schedule of Finite-lived Intangible Assets Acquired as Part of Business Combination	The weighted-average amortization periods for in-place, above-market, and below-market lease intangibles acquired during the nine months ended September 30, 2016 and 2015 , are as follows (in years): 2016 2015 Acquired in-place leases 12 14 Acquired above-market leases 6 9 Acquired below-market leases 22 19
Real Estate Acquisitions, Operating Activities Since Acquisition Date	The amounts recognized for revenues, acquisition expenses, and net loss from each respective acquisition date to September 30, 2016 and 2015 , related to the operating activities of our acquisitions are as follows (in thousands): 2016 2015 Revenues $ 2,733 $ 5,680 Acquisition expenses 1,942 2,078 Net loss 1,339 1,406
Business Acquisition, Pro Forma Information	The following unaudited pro forma information summarizes selected financial information from our combined results of operations as if all of our acquisitions for 2016 and 2015 had been acquired on January 1, 2015 . Acquisition expenses related to each respective acquisition are not expected to have a continuing impact and, therefore, have been excluded from these pro forma results. This pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of the period, nor does it purport to represent the results of future operations. Three Months Ended Nine Months Ended (in thousands) 2016 2015 2016 2015 Pro forma revenues $ 66,074 $ 61,720 $ 198,011 $ 191,798 Pro forma net income attributable to stockholders 3,227 5,884 8,768 21,401

Mortgages and Loans Payable (Ta

Mortgages and Loans Payable (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Debt Obligations	The following is a summary of our debt obligations as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Unsecured term loans - fixed-rate (1) $ 387,000 $ 387,000 Unsecured term loans - variable-rate 243,000 13,000 Unsecured revolving credit facility - variable-rate (2) 117,469 141,000 Fixed-rate mortgages payable (3)(4) 202,813 306,435 Assumed below-market debt adjustment, net (5) 4,747 6,644 Deferred financing costs, net (6) (8,987 ) (8,564 ) Total $ 946,042 $ 845,515 (1) As of September 30, 2016 and December 31, 2015 , the interest rate on $387 million outstanding under our term loans was, effectively, fixed at various interest rates by three interest rate swap agreements with maturities ranging from February 2019 to February 2021 (see Notes 3 and 7 ). (2) The gross borrowings under our revolving credit facility were $480.8 million during the nine months ended September 30, 2016 . The gross payments under our credit facility were $504.3 million during the nine months ended September 30, 2016 . (3) Due to the non-recourse nature of our fixed-rate mortgages, the assets and liabilities of the properties securing such mortgages are neither available to pay the debts of the consolidated property-holding limited liability companies nor do they constitute obligations of such consolidated limited liability companies as of September 30, 2016 and December 31, 2015 . (4) As of September 30, 2016 and December 31, 2015 , the interest rate on one of our variable-rate mortgage notes payable was, in effect, fixed at 5.22% by an interest rate swap agreement (see Notes 3 and 7 ). (5) Net of accumulated amortization of $5.6 million and $6.5 million as of September 30, 2016 and December 31, 2015 , respectively. (6) Net of accumulated amortization of $3.3 million and $2.8 million as of September 30, 2016 and December 31, 2015 , respectively. Deferred financing costs related to the revolving credit facility were $2.8 million and $4.7 million , as of September 30, 2016 and December 31, 2015 , respectively, which is net of accumulated amortization of $6.2 million and $4.8 million , respectively, and are included in Other Assets, Net.

Derivatives and Hedging Activ27

Derivatives and Hedging Activities (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The table below presents the changes in AOCI and the effect of our derivative financial instruments on the consolidated statements of operations and comprehensive income (loss) for the nine months ended September 30, 2016 and 2015 (in thousands): Balance in AOCI as of January 1, 2015 $ — Amount of loss recognized in other comprehensive income on derivative $ (6,253 ) Amount of loss reclassified from AOCI into interest expense 1,981 Current-period other comprehensive loss (4,272 ) Balance in AOCI as of September 30, 2015 $ (4,272 ) Balance in AOCI as of January 1, 2016 $ 22 Amount of loss recognized in other comprehensive income on derivative $ (9,597 ) Amount of loss reclassified from AOCI into interest expense 2,762 Current-period other comprehensive loss (6,835 ) Balance in AOCI as of September 30, 2016 $ (6,813 )

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
Outstanding OP Units and Unvested Class B Units	Below is a summary of our outstanding OP units and unvested Class B units as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 OP units 2,785 2,785 Class B units 2,473 2,083

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table provides a reconciliation of the numerator and denominator of the earnings per unit calculations for the three and nine months ended September 30, 2016 and 2015 (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator for basic and diluted earnings per share: Net income attributable to stockholders $ 2,464 $ 5,183 $ 5,243 $ 15,524 Denominator: Denominator for basic earnings per share - weighted-average shares 184,639 185,271 183,471 184,209 Effect of dilutive OP units/Class B units 2,785 2,786 2,785 2,693 Effect of restricted stock awards 4 — 4 — Denominator for diluted earnings per share - adjusted weighted-average shares 187,428 188,057 186,260 186,902 Earnings per common share: Net income attributable to stockholders - basic and diluted $ 0.01 $ 0.03 $ 0.03 $ 0.08

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Advisor Transactions	Summarized below are the fees earned by and the expenses reimbursable to PE-NTR and ARC, except for unpaid general and administrative expenses, which we disclose above, for the three and nine months ended September 30, 2016 and 2015 , and any related amounts unpaid as of September 30, 2016 and December 31, 2015 (in thousands): Three Months Ended Nine Months Ended Unpaid Amount as of September 30, September 30, September 30, December 31, 2016 2015 2016 2015 2016 2015 Acquisition fees (1) $ 367 $ 102 $ 1,307 $ 1,185 $ — $ — Acquisition expenses (1) 73 18 228 180 — — Asset management fees (2) 4,852 — 14,182 — 1,635 1,538 OP units distribution (3) 470 452 1,398 1,350 153 159 Class B units distribution (4) 408 200 1,144 311 136 119 Financing fees (5) — 3,048 — 3,228 — — Disposition fees (6) — 21 — 21 — — Total $ 6,170 $ 3,841 $ 18,259 $ 6,275 $ 1,924 $ 1,816 (1) The acquisition fees and expenses are presented as Acquisition Expenses on the consolidated statements of operations. (2) Asset management fees are presented in General and Administrative on the consolidated statements of operations. (3) The distributions paid to holders of OP units are presented as Distributions to Noncontrolling Interests on the consolidated statements of equity. (4) The distributions paid to holders of unvested Class B units are presented in General and Administrative on the consolidated statements of operations. (5) Financing fees are presented in Other Assets, Net or Mortgages and Loans Payable, Net, on the consolidated balance sheets and amortized over the term of the related loan. As of October 1, 2015, we are no longer required to pay financing fees. (6) Disposition fees are presented as Other Income (Expense), Net on the consolidated statements of operations.
Property Manager Transactions	Summarized below are the fees earned by and the expenses reimbursable to the Property Manager for the three and nine months ended September 30, 2016 and 2015 , and any related amounts unpaid as of September 30, 2016 and December 31, 2015 (in thousands): Three Months Ended Nine Months Ended Unpaid Amount as of September 30, September 30, September 30, December 31, 2016 2015 2016 2015 2016 2015 Property management fees (1) $ 2,457 $ 2,272 $ 7,456 $ 6,864 $ 782 $ 755 Leasing commissions (2) 1,828 992 5,570 5,012 609 729 Construction management fees (2) 251 345 664 756 106 155 Other fees and reimbursements (3) 1,499 1,334 4,064 3,355 721 1,699 Total $ 6,035 $ 4,943 $ 17,754 $ 15,987 $ 2,218 $ 3,338 (1) The property management fees are included in Property Operating on the consolidated statements of operations. (2) Leasing commissions paid for leases with terms less than one year are expensed immediately and included in Depreciation and Amortization on the consolidated statements of operations. Leasing commissions paid for leases with terms greater than one year, and construction management fees, are capitalized and amortized over the life of the related leases or assets. (3) Other fees and reimbursements are included in Property Operating and General and Administrative on the consolidated statements of operations based on the nature of the expense.

Operating Leases (Tables)

Operating Leases (Tables)	9 Months Ended
	Sep. 30, 2016
Leases, Operating [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Approximate future rentals to be received under non-cancelable operating leases in effect as of September 30, 2016 , assuming no new or renegotiated leases or option extensions on lease agreements, are as follows (in thousands): Year Amount October 1 to December 31, 2016 $ 49,147 2017 187,310 2018 169,454 2019 145,491 2020 122,599 2021 and thereafter 428,057 Total $ 1,102,058

Subsequent Events (Tables)

Subsequent Events (Tables)	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Distributions to Stockholders	Distributions equal to a daily amount of $0.00183060 per share of common stock outstanding were paid subsequent to September 30, 2016 , to the stockholders of record from September 1, 2016, through October 31, 2016, as follows (in thousands): Distribution Period Date Distribution Paid Gross Amount of Distribution Paid Distribution Reinvested through the DRIP Net Cash Distribution September 1, 2016, through September 30, 2016 10/1/2016 $ 10,161 $ 4,683 $ 5,478 October 1, 2016, through October 31, 2016 11/1/2016 10,518 4,822 5,696
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	Subsequent to September 30, 2016 , we acquired the following properties (dollars in thousands): Property Name Location Anchor Tenant Acquisition Date Purchase Price Square Footage Leased % of Rentable Square Feet at Acquisition Oak Mill Plaza Niles, IL Jewel-Osco 10/3/2016 $ 22,225 152,786 96.1 % Southern Palms Tempe, AZ Sprouts 10/26/2016 36,300 257,979 85.9 % Golden Eagle Village Clermont, FL Publix 10/27/2016 11,200 64,050 88.4 %

Organization (Details)

Organization (Details)	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of real estate properties owned	150

Summary of Significant Accoun34

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Unamortized debt issuance costs reclassified	$ 9	$ 8.6

Fair Value Measurements (Detail

Fair Value Measurements (Details) Mortgages and Loans Payable - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Fair Value Inputs, Liabilities, Quantitative Information
Recorded value	$ 955,029	$ 854,079
Unamortized debt issuance costs	8,987	8,564
Fair Value, Level 3 Inputs
Fair Value Inputs, Liabilities, Quantitative Information
Fair value	$ 970,056	$ 880,854
Unsecured variable-rate debt | Fair Value, Level 3 Inputs
Fair Value Inputs, Liabilities, Quantitative Information
Fair value inputs, discount rate		1.66%
Secured fixed-rate debt | Fair Value, Level 3 Inputs
Fair Value Inputs, Liabilities, Quantitative Information
Fair value inputs, discount rate	3.05%	2.75%
Secured variable-rate debt | Fair Value, Level 3 Inputs
Fair Value Inputs, Liabilities, Quantitative Information
Fair value inputs, discount rate	2.78%	2.36%
Minimum [Member] | Unsecured variable-rate debt | Fair Value, Level 3 Inputs
Fair Value Inputs, Liabilities, Quantitative Information
Fair value inputs, discount rate	1.88%
Maximum [Member] | Unsecured variable-rate debt | Fair Value, Level 3 Inputs
Fair Value Inputs, Liabilities, Quantitative Information
Fair value inputs, discount rate	2.23%

Fair Value Measurements (Deta36

Fair Value Measurements (Details) - Derivative Instruments - Interest Rate Swap - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Designated as Hedging Instrument
Fair Value, (Assets) Liabilities Measured on Recurring Basis
Number of interest rate swap agreements	3
Derivative, notional amount	$ 387,000
Portion of hedged debt	387,000	$ 387,000
Derivative (Assets) Liabilities, at Fair Value, Net	6,813	(22)
Not Designated as Hedging Instrument
Fair Value, (Assets) Liabilities Measured on Recurring Basis
Derivative, notional amount	$ 11,100	11,300
Swap agreement interest rate	5.22%
Derivative (Assets) Liabilities, at Fair Value, Net	$ 376	$ 442

Real Estate Acquisitions (Detai

Real Estate Acquisitions (Details) - Series of individually immaterial business acquisitions $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)acquisition	Sep. 30, 2015USD ($)acquisition
Business Acquisition [Line Items]
Number of Businesses Acquired | acquisition	3	9
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed	$ 130,928	$ 119,608
Business acquisition, cost of acquired entity, debt assumed		30,466
Fair value of assumed debt at acquisition	$ 0	$ 31,743

Real Estate Acquisitions (Det38

Real Estate Acquisitions (Details) - Allocation - Series of individually immaterial business acquisitions $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Business Acquisition [Line Items]
Land and improvements	$ 47,834	$ 37,369
Building and improvements	74,709	73,778
Acquired below-market leases	(6,313)	(3,901)
Total assets and liabilities acquired	130,928	119,608
Less: Fair value of assumed debt at acquisition	0	31,743
Net assets acquired	$ 130,928	87,865
Number of business acquired with debt assumed	5
Acquired in-place leases
Business Acquisition [Line Items]
Acquired finite-lived intangibles	$ 12,300	11,121
Acquired above-market leases
Business Acquisition [Line Items]
Acquired finite-lived intangibles	$ 2,398	$ 1,241

Real Estate Acquisitions (Deta

Real Estate Acquisitions (Details) - Weighted-average amortization - Series of individually immaterial business acquisitions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Acquired in-place leases
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	12 years	14 years
Acquired above-market leases
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	6 years	9 years
Acquired below-market leases
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	22 years	19 years

Real Estate Acquisitions (Det40

Real Estate Acquisitions (Details) - Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Business Acquisition [Line Items]
Acquisition expenses	$ 870	$ 836	$ 2,392	$ 4,058
Series of individually immaterial business acquisitions
Business Acquisition [Line Items]
Revenues			2,733	5,680
Acquisition expenses			1,942	2,078
Net loss			$ 1,339	$ 1,406

Real Estate Acquisitions (Det41

Real Estate Acquisitions (Details) - Pro Forma - Series of individually immaterial business acquisitions - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Business Acquisition [Line Items]
Pro forma revenues	$ 66,074	$ 61,720	$ 198,011	$ 191,798
Pro forma net income attributable to stockholders	$ 3,227	$ 5,884	$ 8,768	$ 21,401

Mortgages and Loans Payable (De

Mortgages and Loans Payable (Details)	Oct. 20, 2016USD ($)	Sep. 16, 2016USD ($)	Sep. 30, 2016USD ($)loan_trancheoption	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
Outstanding principal balance			$ 955,029,000	$ 854,079,000
Weighted-average interest rate on debt			3.00%	3.50%
Revolving Credit Facility | Unsecured debt
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity			$ 500,000,000
Term Loan Facility
Debt Instrument [Line Items]
Maturity date extension fee, percent			0.15%
Term Loan Facility | Unsecured debt
Debt Instrument [Line Items]
Number of term loan tranches | loan_tranche			3
Long-term Debt, Percentage Bearing Variable Interest, Amount		$ 230,000,000	$ 243,000,000	$ 13,000,000
Term Loans Tranche One | Term Loan Facility
Debt Instrument [Line Items]
Debt Instrument, Number of Extension Options | option			2
Term Loans Tranche One | Term Loan Facility | Unsecured debt
Debt Instrument [Line Items]
Outstanding principal balance			$ 100,000,000
Term Loans Tranche Two | Term Loan Facility | Unsecured debt
Debt Instrument [Line Items]
Outstanding principal balance			175,000,000
Term Loans Tranche Three | Term Loan Facility | Unsecured debt
Debt Instrument [Line Items]
Outstanding principal balance			$ 125,000,000
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Unsecured debt
Debt Instrument [Line Items]
Basis spread on variable rate			1.30%
London Interbank Offered Rate (LIBOR) | Term Loan Facility | Unsecured debt
Debt Instrument [Line Items]
Basis spread on variable rate		1.70%	1.25%
Interest Rate Swap | Designated as Hedging Instrument
Debt Instrument [Line Items]
Derivative, Amount of Hedged Item			$ 387,000,000	$ 387,000,000
Derivative, notional amount			$ 387,000,000
Subsequent Event | Term Loan Facility | Unsecured debt
Debt Instrument [Line Items]
Long-term Debt, Percentage Bearing Variable Interest, Amount	$ 255,000,000
Subsequent Event | Interest Rate Swap | Designated as Hedging Instrument
Debt Instrument [Line Items]
Basis spread on variable rate	1.329%
Derivative, notional amount	$ 255,000,000

Mortgages and Loans Payable (43

Mortgages and Loans Payable (Details) - Debt Obligations - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 16, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Outstanding principal balance	$ 955,029		$ 854,079
Assumed below-market debt adjustment, net	4,747		6,644
Deferred financing costs, net	(8,987)		(8,564)
Total mortgages and loans payable, net	946,042		845,515
Accumulated amortization, assumed below-market debt adjustment	5,600		6,500
Accumulated amortization, deferred finance costs	3,300		2,800
Interest Rate Swap | Designated as Hedging Instrument
Debt Instrument [Line Items]
Portion of hedged debt	387,000		387,000
Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding principal balance	117,469		141,000
Gross borrowings	480,800
Gross payments	504,300
Fixed-rate mortgages payable
Debt Instrument [Line Items]
Outstanding principal balance	$ 202,813		$ 306,435
Fixed-rate mortgages payable | Interest Rate Swap
Debt Instrument [Line Items]
Swap agreement interest rate	5.22%		5.22%
Term Loan Facility [Member] | Unsecured debt
Debt Instrument [Line Items]
Fixed rate debt instrument carrying amount	$ 387,000		$ 387,000
Variable rate debt instrument carrying amount	243,000	$ 230,000	13,000
Revolving Credit Facility | Unsecured debt
Debt Instrument [Line Items]
Deferred financing costs, line of credit arrangements, net	2,800		4,700
Accumulated amortization of deferred financing costs, line of credit arrangements	$ 6,200		$ 4,800

Commitments and Contingencies N

Commitments and Contingencies Narrative (Details)	Sep. 30, 2016claim
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency, Pending Claims, Number	0

Derivatives and Hedging Activ45

Derivatives and Hedging Activities (Details) - Interest Rate Swap	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)agreement	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)agreement	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, number of instruments held | agreement	3		3
Derivative, notional amount	$ 387,000,000		$ 387,000,000
Amount estimated to be reclassified from AOCI into interest expense over the next 12 months			2,800,000
Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	11,100,000		11,100,000		$ 11,300,000
Gain (loss) on derivative not designated as hedges	$ 34,000	$ (112,000)	$ (127,000)	$ (239,000)

Derivatives and Hedging Activ46

Derivatives and Hedging Activities (Details) - Tabular Disclosure - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance in AOCI as of January 1	$ 22
Balance in AOCI as of September 30	(6,813)
Interest Rate Swap | Designated as Hedging Instrument
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance in AOCI as of January 1	22	$ 0
Amount of loss recognized in other comprehensive income on derivative	(9,597)	(6,253)
Amount of loss reclassified from AOCI into interest expense	2,762	1,981
Current-period other comprehensive loss	(6,835)	(4,272)
Balance in AOCI as of September 30	$ (6,813)	$ (4,272)

Equity (Details)

Equity (Details) - USD ($)	Jun. 21, 2016	Jun. 07, 2016	Sep. 30, 2016	Sep. 30, 2015	Apr. 25, 2016	Apr. 14, 2016	Dec. 31, 2015
Class of Stock [Line Items]
Share price						$ 10.20
Share repurchase program blackout period	10 days
Stock redeemed or called during period, value			$ 7,280,000	$ 31,022,000
OP units			2,785,000				2,785,000
Class B units			2,473,000	1,400,000			2,083,000
Share Repurchase Program - Tender Offer
Class of Stock [Line Items]
Stock repurchase program, number of shares authorized to be repurchased					9,300,000
Stock redeemed or called during period, shares		69,271
Tender offer shares repurchased, price per share		$ 6
Stock redeemed or called during period, value		$ 416,000
Dividend Reinvestment Plan
Class of Stock [Line Items]
Share price			$ 10.20

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Earnings Per Share [Abstract]
Class B units unvested	2,473,000	1,400,000	2,473,000	1,400,000	2,083,000
Stock issued during period, shares, restricted stock award, gross			9,800
Net income attributable to stockholders	$ 2,464	$ 5,183	$ 5,243	$ 15,524
Denominator for basic earnings per share - weighted-average shares	184,639,000	185,271,000	183,471,000	184,209,000
Effect of dilutive OP units/Class B units	2,785,000	2,786,000	2,785,000	2,693,000
Effect of restricted stock awards	4,000	0	4,000	0
Denominator for diluted earnings per share - adjusted weighted-average shares	187,428,000	188,057,000	186,260,000	186,902,000
Net income per share attributable to stockholders - basic and diluted	$ 0.01	$ 0.03	$ 0.03	$ 0.08

Related Party Transactions Rela

Related Party Transactions Related Party (Details) - Economic Dependency - shares	Sep. 30, 2016	Dec. 31, 2015
Related Party Transactions [Abstract]
Shares owned by sub-advisor	176,509	176,509
Percentage of shares owned by sub-advisor	0.10%	0.10%

Related Party Transactions Re50

Related Party Transactions Related Party Transactions (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Accounts payable – affiliates	$ 4,225		$ 4,225		$ 5,278
Advisory Agreement
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	6,170	$ 3,841	18,259	$ 6,275
Accounts payable – affiliates	1,924		$ 1,924		1,816
Advisory Agreement | Asset management fee, portion paid in cash, monthly payment
Related Party Transaction [Line Items]
Related Party Transaction, Rate			0.06667%
Advisory Agreement | Asset management subordination agreement
Related Party Transaction [Line Items]
Class B Units Issuance Due Date			60 days
Class B units of operating partnership, issued in connection with asset management services			390	1,400
Advisory Agreement | General and administrative reimbursements
Related Party Transaction [Line Items]
Accounts payable – affiliates	83		$ 83		124
Advisory Agreement | Acquisition fee
Related Party Transaction [Line Items]
Related Party Transaction, Rate			1.00%
Related Party Transaction, Expenses from Transactions with Related Party	367	102	$ 1,307	$ 1,185
Accounts payable – affiliates	0		0		0
Advisory Agreement | Acquisition expense reimbursement
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	73	18	228	180
Accounts payable – affiliates	0		$ 0		0
Advisory Agreement | Asset management fee
Related Party Transaction [Line Items]
Related Party Transaction, Rate			1.00%
Related Party Transaction, Expenses from Transactions with Related Party	4,852	0	$ 14,182	0
Accounts payable – affiliates	1,635		1,635		1,538
Advisory Agreement | Operating partnership units distribution
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	470	452	1,398	1,350
Accounts payable – affiliates	153		153		159
Advisory Agreement | Class B units distribution
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	408	200	1,144	311
Accounts payable – affiliates	136		136		119
Advisory Agreement | Financing fee
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	0	3,048	0	3,228
Accounts payable – affiliates	0		$ 0		0
Advisory Agreement | Disposition fee
Related Party Transaction [Line Items]
Related Party Transaction, Rate			2.00%
Related Party Transaction, Expenses from Transactions with Related Party	0	$ 21	$ 0	$ 21
Accounts payable – affiliates	$ 0		$ 0		$ 0
Cash | Advisory Agreement | Asset management fee
Related Party Transaction [Line Items]
Related Party Transaction, Rate			80.00%
Unit Distribution | Advisory Agreement | Asset management fee
Related Party Transaction [Line Items]
Related Party Transaction, Rate			20.00%

Related Party Transactions Prop

Related Party Transactions Property Management Transactions (Details) Property Management Transactions - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Accounts payable – affiliates	$ 4,225		$ 4,225		$ 5,278
Property Manager [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	6,035	$ 4,943	17,754	$ 15,987
Accounts payable – affiliates	2,218		$ 2,218		3,338
Property Manager [Member] | Property management fee
Related Party Transaction [Line Items]
Property Management Fee, Percent Fee			4.00%
Related Party Transaction, Expenses from Transactions with Related Party	2,457	2,272	$ 7,456	6,864
Accounts payable – affiliates	782		$ 782		755
Property Manager [Member] | Leasing commissions
Related Party Transaction [Line Items]
Allowed Percentage Increase to Leasing Fee Payable			50.00%
Related Party Transaction, Expenses from Transactions with Related Party	1,828	992	$ 5,570	5,012
Accounts payable – affiliates	609		609		729
Property Manager [Member] | Construction management fee
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	251	345	664	756
Accounts payable – affiliates	106		106		155
Property Manager [Member] | Other fees and reimbursements
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	1,499	$ 1,334	4,064	$ 3,355
Accounts payable – affiliates	$ 721		$ 721		$ 1,699

Operating Leases Future Minimum

Operating Leases Future Minimum Rents(Details) $ in Thousands	Sep. 30, 2016USD ($)
Future rentals to be received under non-cancelable operating leases:
October 1 to December 31, 2016	$ 49,147
2,017	187,310
2,018	169,454
2,019	145,491
2,020	122,599
2021 and thereafter	428,057
Total	$ 1,102,058

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, ft² in Thousands, $ in Thousands, shares in Millions	Nov. 01, 2016USD ($)	Oct. 27, 2016USD ($)ft²	Oct. 26, 2016USD ($)ft²	Oct. 03, 2016USD ($)ft²	Oct. 01, 2016USD ($)	Dec. 31, 2016$ / shares	Feb. 28, 2017$ / shares	Oct. 31, 2016USD ($)$ / sharesshares	Sep. 30, 2016USD ($)$ / shares	Sep. 30, 2015USD ($)$ / shares
Subsequent Event [Line Items]
Common stock, dividends, per share, declared | $ / shares									$ 0.50	$ 0.50
Distributions reinvested									$ 44,731	$ 48,185
Net cash distribution									$ 47,535	$ 44,291
Subsequent Event
Subsequent Event [Line Items]
Share repurchase program amount available								$ 11,200
Share repurchase program, outstanding requests | shares								7.4
Oak Mill Plaza [Member] | Subsequent Event
Subsequent Event [Line Items]
Payments to acquire businesses, gross				$ 22,225
Area of real estate property | ft²				152,786
Leased percentage				96.10%
Southern Palms [Member] | Subsequent Event
Subsequent Event [Line Items]
Payments to acquire businesses, gross			$ 36,300
Area of real estate property | ft²			257,979
Leased percentage			85.90%
Golden Eagle Village [Member] | Subsequent Event
Subsequent Event [Line Items]
Payments to acquire businesses, gross		$ 11,200
Area of real estate property | ft²		64,050
Leased percentage		88.40%
Dividend Paid | Subsequent Event
Subsequent Event [Line Items]
Common stock, dividends, per share, declared | $ / shares						$ 0.00183060	$ 0.00183562	$ 0.00183060
Gross amount of distribution paid	$ 10,518				$ 10,161
Distributions reinvested	4,822				4,683
Net cash distribution	$ 5,696				$ 5,478