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Carolina Jewelry’s new cart-style Styling Booth is on the first level of Plaza Las Américas between Macy’s and Casa Febus.Two new retail arrivals are coming to Puerto Rico shopping centers, with Carolina Jewelry opening its first physical location at Plaza Las Américas and Sephora preparing to launch a store at the Shops at Caguas early next year.The additions expand the island’s retail mix by bringing in both a local emerging brand and a global beauty retailer.Carolina Jewelry, founded in 2018 by Puerto Ri ...

Industry Overview - The Zacks REIT and Equity Trust - Retail industry is showing resilience as landlords adapt and reposition assets for long-term stability, focusing on necessity-based and experience-driven retailers [1][3] - The industry is experiencing a rebound driven by renewed consumer interest in in-store shopping, despite past challenges such as declining foot traffic and store closures [2] Key Drivers - Strategic re-tenanting and disciplined expansion are strengthening occupancy and cash flows, with limited new supply helping to preserve rent levels and investor confidence [1][4] - The lack of new construction activity has minimized competitive pressure on existing assets, allowing occupancy and rents to hold firm [4] Consumer Behavior - The outlook for retail REITs is closely linked to consumer behavior, with economic softness and rising costs making households more selective in their spending [5] - Wealthier consumers continue to support high-end demand, while middle-income shoppers are cutting back, leading to an uneven spending landscape [5] Industry Performance - The Zacks REIT and Equity Trust - Retail industry carries a Zacks Industry Rank 55, placing it in the top 23% of 243 Zacks industries, indicating robust near-term prospects [6][7] - The industry has underperformed the broader Zacks Finance sector and the S&P 500 over the past year, declining 5.6% compared to the S&P 500's rise of 22.3% [10] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-FFO of 14.98X, below the S&P 500's forward P/E of 23.77X and the Finance sector's forward P/E of 16.94X [12] - Over the last five years, the industry has traded as high as 18.89X and as low as 12.21X, with a median of 15.22X [15] Company Highlights - **Agree Realty Corporation (ADC)**: Specializes in retail net-lease properties with a portfolio of approximately 2,603 properties totaling around 53.7 million square feet. The company raised its full-year 2025 investment guidance to $1.50 billion-$1.65 billion, indicating confidence in its capital deployment strategy [16][17] - **Federal Realty Investment Trust (FRT)**: Focuses on high-quality retail properties in affluent markets, with a recent acquisition of Annapolis Town Center enhancing its portfolio. The Zacks Consensus Estimate for 2025 FFO per share has been revised upward to $7.22 [21][22][23] - **Urban Edge Properties (UE)**: Concentrates on retail properties in urban communities, with grocery tenants accounting for about 80% of its portfolio's value. The Zacks Consensus Estimate for its 2025 FFO per share has been raised to $1.42, indicating a 5.2% year-over-year increase [26][28][29]

Financial Data and Key Metrics Changes - FFO as adjusted increased by 4% year-over-year for Q3 2025, with year-to-date growth at 7% compared to the first nine months of the previous year [4] - Same property net operating income (NOI) rose by 4.7% for the quarter and 5.4% year-to-date [4] - The company raised its 2025 FFO as adjusted guidance to a new range of $1.42-$1.44 per share, representing 6% growth over 2024 at the midpoint [8][17] Business Line Data and Key Metrics Changes - Leasing activity totaled 31 deals aggregating 347,000 sq ft, including 20 renewals at a 9% spread and 11 new leases at a 61% spread [9] - Same property lease rate stands at 96.6%, a decline of 20 basis points from the previous quarter [10] - Shop occupancy rate remained flat at 92.5% [11] Market Data and Key Metrics Changes - The acquisition market remains competitive, driven by institutional capital and tighter spreads from traditional banks [7] - The company’s Boston portfolio now includes seven properties valued at nearly $500 million, representing about 10% of the company's total value [7] Company Strategy and Development Direction - The company is focused on capital recycling, having acquired nearly $600 million in high-quality shopping centers while disposing of approximately $500 million in non-core assets [7] - The active redevelopment pipeline totals $149 million with a projected yield of 15% [12] - The company aims to generate sustainable 3%+ growth in same property NOI [72] Management's Comments on Operating Environment and Future Outlook - Management expects shopping center fundamentals to remain strong due to favorable supply-demand dynamics and record low vacancy rates [8] - The company is optimistic about the leasing market, with national retailers in expansion mode and willing to pay necessary rents [14][56] - Management believes the supply-demand imbalance in retail will continue to favor their properties for the foreseeable future [68] Other Important Information - The company completed a $39 million acquisition of Brighton Mills, a grocery-anchored shopping center, funded by proceeds from the sale of other properties [4][5] - The company has a strong liquidity position of over $900 million, including $145 million in cash [16] Q&A Session Summary Question: Timeline for lease expirations at Brighton Mills - Management indicated that most leases at Brighton Mills expire in 22 years, with expected NOI growth exceeding 3% [22] Question: Breakdown of one-time items recognized in 2025 - Management highlighted about $2 million in one-time collections and $1.5 million related to CAM recovery billings as non-recurring items [24][25] Question: Opportunities at Shoppers World - Management discussed flexibility with the Kohl's parcel and potential mixed-use opportunities for redevelopment [32] Question: Rent spreads in the quarter - Management noted that the 60% rent spread was driven by unique anchor leases, with expectations for double-digit spreads going forward [34] Question: Creating more shop space in the portfolio - Management is actively studying opportunities to split anchor spaces into shop spaces, with high demand for shop tenants [40][41] Question: Acquisition environment and competition - Management acknowledged a competitive market with increased interest from institutional capital, but emphasized a disciplined approach to acquisitions [46][48] Question: Tenant demand and balance between restaurants and grocers - Management reported strong demand from both grocers and restaurants, with no significant push-pull tension between the two [56] Question: Institutional capital demand in the D.C. metro area - Management noted that while Boston and New York are more in demand, their D.C. centers are performing well [61] Question: Sustainability of high occupancy levels - Management attributed sustained high occupancy levels to a favorable supply-demand dynamic in the retail market [67]

Financial Data and Key Metrics Changes - FFO as adjusted increased by 4% year-over-year for Q3 2025, with year-to-date growth at 7% compared to the first nine months of the previous year [4] - Same property net operating income (NOI) rose by 4.7% for the quarter and 5.4% year-to-date [4] - The company raised its 2025 FFO as adjusted guidance to a new range of $1.42 to $1.44 per share, representing 6% growth over 2024 at the midpoint [8][17] Business Line Data and Key Metrics Changes - Leasing activity totaled 31 deals aggregating 347,000 square feet, including 20 renewals at a 9% spread and 11 new leases at a 61% spread [9] - Same property lease rate stands at 96.6%, with a 20 basis point decline from the previous quarter [10] - Shop occupancy rate remained flat at 92.5%, while the overall same property NOI growth, including redevelopment guidance, was increased to a new midpoint of 5.25% [11][17] Market Data and Key Metrics Changes - The acquisition market remains competitive, driven by institutional capital and tighter spreads from traditional banks [7] - The company’s Boston portfolio now includes seven properties valued at approximately $5,500 million, representing about 10% of the company's total value [7] - The overall leasing market shows strong demand, with year-to-date leasing spreads averaging 40% on new leases and nearly 10% on renewals [8] Company Strategy and Development Direction - The company is focused on capital recycling, having acquired nearly $600 million of high-quality shopping centers at an average 7% cap rate while disposing of approximately $500 million of non-core assets at a 5% cap rate [7] - The active redevelopment pipeline totals $149 million with a projected yield of 15% [12] - The company aims to generate sustainable 3% plus growth through strategic acquisitions and dispositions [72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of shopping center fundamentals, driven by favorable supply-demand dynamics and record low vacancy rates [8] - The company anticipates continued strong demand for retail space, particularly in the Northeast Corridor market [14] - Management highlighted the importance of maintaining a balance between restaurant and grocery tenants to ensure overall tenant success [56] Other Important Information - The company completed the acquisition of Brighton Mills, a grocery-anchored shopping center, for $39 million, expecting annual NOI growth to exceed 3% [4][5] - The company has a strong liquidity position of over $900 million, including $145 million in cash [16] Q&A Session Summary Question: Timeline for monetizing opportunities at Brighton Mills - Management indicated that most leases at Brighton Mills have terms extending over the next 10 to 22 years, with confidence in achieving over 3% NOI growth [22] Question: Breakdown of one-time items recognized in 2025 - Management highlighted approximately $2 million in one-time collections related to old receivables and about $1.5 million from CAM recovery billings as non-recurring items [24][25] Question: Opportunities at Shoppers World - Management discussed the flexibility to work with the Kohl's parcel separately and the potential for redevelopment or retenanting to enhance value [32] Question: Rent spreads in the quarter - Management noted that the 60% rent spread was driven by unique anchor leases with HomeGoods and Ross, and while double-digit spreads are expected, 60% is not sustainable every quarter [34][35] Question: Creating more shop space in the portfolio - Management is actively studying opportunities to split anchor spaces into shop spaces, with demand for shop space remaining strong [40][41] Question: Acquisition environment and funding - Management acknowledged a competitive acquisition market with increased interest from institutional capital, while maintaining a disciplined approach to bidding [46][48] Question: Institutional competition for nontraditional assets - Management noted that while there is interest in nontraditional shopping center assets, their platform allows them to differentiate and find value-add opportunities [52][53] Question: Balancing demand between restaurants and grocers - Management indicated that both sectors are in expansion mode, with no significant push-pull tension observed [56] Question: Shift in demand in the D.C. metro area - Management reported strong performance and demand in their D.C. centers, with no significant shifts in institutional capital interest noted [61] Question: Sustaining high occupancy levels - Management emphasized that supply-demand metrics favor sustained high occupancy levels due to limited new retail construction [67]

Financial Data and Key Metrics Changes - FFO as adjusted increased by 4% year-over-year for Q3 2025, with year-to-date growth reaching 7% compared to the first nine months of the previous year [3] - Same property net operating income (NOI) rose by 4.7% for the quarter and 5.4% year-to-date [3] - The company raised its 2025 FFO as adjusted guidance to a new range of $1.42 to $1.44 per share, reflecting a 6% growth over 2024 at the midpoint [6][14] Business Line Data and Key Metrics Changes - Leasing activity totaled 31 deals aggregating 347,000 square feet, including 20 renewals at a 9% spread and 11 new leases at a 61% spread [7] - The overall same property lease rate is at 96.6%, a decline of 20 basis points from the previous quarter [8] - Shop occupancy rate remained flat at 92.5%, while the company continues to explore creating new shop space [9] Market Data and Key Metrics Changes - The Boston portfolio now includes seven properties valued at approximately $5,500 million, representing about 10% of the company's total value [5] - The acquisition market remains competitive, driven by institutional capital and tighter spreads from traditional banks [5] Company Strategy and Development Direction - The company is focused on capital recycling, having acquired nearly $600 million in high-quality shopping centers at an average 7% cap rate while disposing of approximately $500 million in non-core assets at a 5% cap rate [5] - The active redevelopment pipeline totals $149 million with a projected yield of 15% [10] - The company aims to generate sustainable same property NOI growth of 3% or more [92] Management's Comments on Operating Environment and Future Outlook - Management expects shopping center fundamentals to remain strong, driven by favorable supply-demand dynamics and record low vacancy rates [6] - The company is optimistic about the leasing market, with national retailers in expansion mode and willing to pay necessary rents [11] - Management highlighted the importance of balancing the addition of restaurant spaces with grocery stores to avoid oversaturation [77] Other Important Information - The company secured a new $123.6 million four-year non-recourse mortgage at a fixed rate of 5.1% [12] - The liquidity position remains strong at over $900 million, including $145 million in cash [14] Q&A Session Summary Question: Can you provide a breakdown of one-time items recognized in 2025? - Management noted about $2 million in one-time collections related to old receivables and approximately $1.5 million from CAM recovery billings [29][30] Question: What is the opportunity set within Shoppers World? - Management expressed confidence in redeveloping the Kohl's parcel and exploring mixed-use opportunities [41][42] Question: How do you balance demand from restaurants and grocers? - Management indicated that both sectors are expanding, with no significant push-pull tension between them [77] Question: Is there a shift in demand in the D.C. metro area? - Management reported strong performance in D.C. centers, with continued demand for retail space [79] Question: What is the outlook for same property NOI growth? - Management aims for sustainable same property NOI growth of 3% or more, supported by the signed-not-open pipeline [92]

Financial Performance - Net income for the three months ended September 30, 2025, was $15.5 million, a 64.8% increase from $9.5 million in the same period of 2024[160] - Total revenue for the nine months ended September 30, 2025, increased by $23.8 million to $352.4 million compared to $328.6 million for the same period in 2024[162] - Funds From Operations (FFO) applicable to diluted common shareholders for the three months ended September 30, 2025, was $51.9 million, up from $43.9 million in the same period of 2024[159] - Same-property Net Operating Income (NOI) for the three months ended September 30, 2025, was $62.6 million, compared to $60.2 million for the same period in 2024, reflecting a 4.0% increase[159] - Same-property NOI increased by $2.5 million, or 4.1%, for the three months ended September 30, 2025, compared to the same period in 2024, and increased by $8.0 million, or 4.6%, for the nine months ended September 30, 2025[174] - FFO applicable to diluted common shareholders was $52.0 million for the three months ended September 30, 2025, compared to $43.9 million for the same period in 2024[176] - Same-property NOI including properties in redevelopment increased by $3.1 million, or 4.7%, for the three months ended September 30, 2025, compared to the same period in 2024[174] Expenses and Costs - General and administrative expenses decreased by $0.4 million to $9.0 million in the third quarter of 2025 from $9.4 million in the third quarter of 2024, primarily due to lower employment expenses[161] - Interest and debt expense decreased by $0.2 million to $19.4 million in the third quarter of 2025 from $19.5 million in the third quarter of 2024[161] - Real estate tax expense decreased by $0.9 million to $16.8 million in the third quarter of 2025 from $17.7 million in the third quarter of 2024[160] - Depreciation and amortization decreased by $6.3 million to $106.6 million for the nine months ended September 30, 2025, compared to $112.9 million for the same period in 2024[163] - General and administrative expenses increased by $2.4 million to $30.2 million for the nine months ended September 30, 2025, from $27.8 million in the same period of 2024, primarily due to severance expenses[166] - Interest and debt expense decreased by $3.3 million to $58.7 million for the nine months ended September 30, 2025, from $62.0 million in the same period of 2024[168] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025 was $131.7 million, up $31.0 million from $100.7 million for the same period in 2024[187] - Net cash used in investing activities decreased to $11.1 million for the nine months ended September 30, 2025, down $135.2 million from $146.3 million in the same period of 2024[188] - Net cash used in financing activities increased to $66.4 million for the nine months ended September 30, 2025, up $27.4 million from $39.0 million in the same period of 2024[191] - As of September 30, 2025, the company had cash and cash equivalents of $144.8 million, an increase of $54.2 million from $90.6 million at December 31, 2024[185] Debt and Financing - The estimated fair value of the company's consolidated debt was $1.6 billion as of September 30, 2025[199] - The company has an $800 million revolving credit agreement with $767.8 million available as of September 30, 2025, with no outstanding balance[181] - The company has approximately $23.3 million of debt maturing within the next 12 months related to a mortgage loan[183] - The company recognized a $0.5 million gain on extinguishment of debt for the nine months ended September 30, 2025, related to the return of escrow funds[168] Real Estate Transactions - A gain on the sale of real estate was recognized at $49.7 million during the nine months ended September 30, 2025, compared to $15.3 million for the same period in 2024[167] - Interest expense decreased by $2.8 million due to mortgage debt forgiven in connection with the foreclosure of Kingswood Center[172] - Capitalized interest expense increased by $1.0 million due to the commencement of development and redevelopment projects[164] - The company had 22 active development projects with total estimated costs of $149.1 million, of which $76.6 million had been incurred as of September 30, 2025[188] Market Conditions - The Federal Reserve cut its benchmark interest rate by 25 basis points in September 2025, influenced by moderated economic growth and increased unemployment levels[158] - The company continues to monitor inflation impacts, with inflation levels remaining elevated compared to the Federal Reserve's target of 2%[158] Dividends - The company declared a quarterly dividend of $0.19 per common share for the first three quarters of 2025, resulting in an annual rate of $0.76[179]

Financial Performance - Urban Edge Properties reported a net income attributable to common shareholders of $14.935 million for Q3 2025, up from $9.080 million in Q3 2024, representing a 64.5% increase[9]. - Funds from Operations (FFO) for Q3 2025 was $51.951 million, compared to $43.935 million in Q3 2024, reflecting an increase of 18.5%[9]. - Net income for Q3 2025 was $15,541,000, a 64.5% increase from $9,467,000 in Q3 2024[40]. - FFO applicable to diluted common shareholders for Q3 2025 was $51,951,000, up 18.5% from $43,935,000 in Q3 2024[40]. - Same-property NOI for Q3 2025 was $62,637,000, representing a 4.1% increase from $60,179,000 in Q3 2024[42]. - Adjusted EBITDAre for Q3 2025 was $67,640,000, compared to $64,919,000 in Q3 2024, reflecting a 4.2% increase[44]. - Total revenue for the three months ended September 30, 2025, was $120,126,000, representing an increase from $112,427,000 in the same period of 2024, a growth of approximately 6.2%[52]. - Net income attributable to common shareholders for the nine months ended September 30, 2025, was $81,111,000, compared to $42,442,000 for the same period in 2024, reflecting a significant increase of 91.3%[54]. - Funds from operations (FFO) for the nine months ended September 30, 2025, totaled $141,188,000, compared to $128,000,000 in the same period of 2024, marking an increase of 10.3%[52]. Guidance and Projections - The company raised its full-year 2025 FFO as Adjusted guidance by $0.01 per share, now estimating a mid-point of $1.43 per diluted share, which indicates a 6% expected annual growth[8][21]. - Net income attributable to common shareholders is projected to be between $91.8 million and $94.3 million for 2025, translating to a per diluted share of $0.70 to $0.72[28]. - Same-property NOI growth is expected to be between 5.0% and 5.5%, an increase from the previous estimate of 4.25% to 5.0%[29]. - FFO applicable to diluted common shareholders is projected to be between $186.2 million and $188.8 million for 2025, equating to a per diluted share of $1.43 to $1.45[28]. - Recurring G&A expenses are expected to range from $34.5 million to $35.0 million, reflecting a decrease from the previous high estimate[29]. - Interest and debt expense is projected to be between $78.5 million and $79.5 million, also showing a decrease from prior estimates[29]. - The company anticipates 2025 FFO per diluted share to be between $1.43 and $1.45, with adjustments for items impacting comparability[30]. Leasing and Occupancy - Urban Edge executed over 340,000 square feet of leasing transactions in Q3 2025, achieving cash spreads of 21%[8]. - The consolidated portfolio leased occupancy was 96.3% as of September 30, 2025, flat compared to the previous year[19]. - Same-property NOI growth for the three months ended September 30, 2025, was 4.1%, while including redevelopment properties, it was 4.7%[52]. - The company owns 73 properties totaling 17.2 million square feet of gross leasable area[47]. - The company has signed leases not yet commenced that are expected to generate an incremental $21.5 million in future annual gross rent, approximately 7% of annualized NOI as of September 30, 2025[64]. - The same-property gross rent expected to be recognized in 2026 is projected at $7.6 million, increasing to $12.4 million in 2027 and $13.5 million in 2028[67]. - The retail portfolio has a total of 15,795,000 square feet, with 2.8% vacant space[68]. - The average base rent per square foot for anchor tenants (SF>=10,000) is $17.68, while for shop tenants (SF<10,000) it is $39.72[68]. - The number of new leases executed in the nine months ended September 30, 2025, was 115, covering 1,262,323 square feet[63]. - The rent per square foot for new leases increased from $31.34 in the year ended December 31, 2024, to $32.02 in the three months ended September 30, 2025[63]. - The rent spread for renewals and options executed in the three months ended September 30, 2025, was 9.7%[63]. - As of September 30, 2025, Urban Edge Properties has a total retail portfolio of 15,795,000 square feet, with 97.2% leased[69]. Acquisitions and Dispositions - The company acquired Brighton Mills Shopping Center for $39 million, a 91,000 square foot grocery-anchored center, expanding its footprint in the Boston area, which now represents over 10% of its asset value[8][12]. - The company completed acquisitions totaling $39 million and dispositions of $66 million year-to-date[29]. - The company disposed of properties including Bergen Town Center East for $25,000 and Kennedy Commons for $23,200, totaling 106,000 square feet[75]. Debt and Liquidity - Total liquidity as of September 30, 2025, was approximately $913 million, including $145 million in cash and $768 million available under the revolving credit agreement[20]. - The company has $149.1 million of active redevelopment projects underway, expected to generate an approximate 15% yield[18]. - The total consolidated debt as of September 30, 2025, was $1,646,464,000, with a net debt of $1,501,670,000[58]. - The equity market capitalization as of September 30, 2025, was $2,713,967,000[58]. - Cash and cash equivalents increased to $77,796,000 as of September 30, 2025, up from $41,373,000 at the end of 2024, showing improved liquidity[53]. - The company has an unsecured $800 million line of credit with no outstanding borrowings as of September 30, 2025[79]. - The weighted average interest rate on secured mortgage debt is 5.03% as of September 30, 2025[78]. - The debt maturity schedule indicates that 21.9% of the total debt is maturing in 2029, amounting to $360,219,000[81]. Tenant Information - The top twenty-five tenants accounted for 50.4% of total square feet leased, with an annualized base rent (ABR) of $156,757,807, which is 47.8% of total ABR[62]. - The TJX Companies is the largest tenant, occupying 5.1% of total square feet and contributing $18,663,686 to annualized base rent[62]. - Major tenants include Walmart, Best Buy, and Aldi, with properties like Ledgewood Commons and Tonnelle Commons having significant occupancy rates of 80.0% and 100.0% respectively[71]. Development and Redevelopment - The company has a total of $1,646,464 in mortgage debt across its properties[72]. - The estimated unleveraged yield for total active projects is 15% based on total estimated project costs and incremental NOI[76]. - Completed projects have a total estimated gross cost of $48,600,000, with incurred costs of $46,900,000[77]. - The estimated unleveraged yield for completed projects is 17% based on total estimated project costs and incremental NOI[77].

Group 1 - The article does not provide any specific information or data regarding companies or industries [1]

Core Viewpoint - Urban Edge Properties (UE) is experiencing significant selling pressure, with a 9.5% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by positive earnings forecasts from Wall Street analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - UE's current RSI reading is 29.48, suggesting that the heavy selling may be exhausting itself, indicating a potential reversal towards a more balanced supply and demand [5]. Group 2: Fundamental Analysis - There is a consensus among sell-side analysts that UE's earnings estimates for the current year have increased by 1.4% over the last 30 days, which often correlates with price appreciation in the near term [7]. - UE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8].