On January 23, 2013, the board of directors of Phillips Edison - ARC Shopping Center REIT Inc. authorized distributions to the stockholders of record at the close of business each day in the period commencing February 1, 2013 through and including March 31, 2013. The declared distributions will equal an amount of $0.00183562 per share of common stock, par value $0.01 per share. This equates to an approximate 6.7% annualized yield when calculated on a $10.00 per share purchase price, which is an increase over the 6.5% annualized yield of all prior distributions.

A portion of each distribution is expected to constitute a return of capital for tax purposes. The February distributions will be paid on March 1, 2013, and the March distributions will be paid on April 1, 2013.