Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - REITs are currently undervalued, presenting opportunities for value and income investors to build diversified portfolios [2] Group 2 - The article emphasizes the importance of due diligence and independent decision-making for investors [4][5]

Urban Edge Properties (UE) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Company Participants Areeba Ahmed - Investor Relations & ESG AssociateJeffrey Olson - Chairman & CEOJeffrey Mooallem - Executive VP & COOMark Langer - Executive VP & CFOMichael Griffin - DirectorFloris van Dijkum - Managing DirectorRonald Kamdem - Managing Director & Head of US REITs and CRE Research Conference Call Participants Paulina Rojas Schmidt - Senior Analyst Operator Greetings, and welcome to the Urban Edge Properties First ...

Urban Edge Properties (UE) came out with quarterly funds from operations (FFO) of $0.35 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to FFO of $0.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 2.94%. A quarter ago, it was expected that this real estate investment trust that owns and manages shopping centers would post FFO of $0.34 per share when it actually produced FFO of $0.34, delivering ...

Urban Edge Properties (UE) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Speaker0 Greetings, and welcome to the Urban Edge Properties First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeff Olson. Please go ahead. Speaker1 Good morning, and welcome to Urban Edge Properties First Quarter twe ...

Urban Edge Properties (UE) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Company Participants Areeba Ahmed - Investor Relations & ESG AssociateJeffrey Olson - Chairman & CEOJeffrey Mooallem - Executive VP & COOMark Langer - Executive VP & CFOMichael Griffin - DirectorFloris van Dijkum - Managing DirectorRonald Kamdem - Managing Director & Head of US REITs and CRE Research Conference Call Participants Paulina Rojas Schmidt - Senior Analyst Operator Greetings, and welcome to the Urban Edge Properties First ...

Financial Performance - For the three months ended March 31, 2025, net income was $8.4 million, a significant increase from $2.4 million in the same period of 2024, representing a growth of 245%[142] - Total revenue increased by $8.5 million to $118.2 million in Q1 2025 from $109.6 million in Q1 2024, reflecting a growth of approximately 7.8%[142] - Funds From Operations (FFO) applicable to diluted common shareholders rose to $45.5 million in Q1 2025, compared to $39.1 million in Q1 2024, marking an increase of 16.5%[141] - Net Operating Income (NOI) for the same period was $71.6 million, up from $66.7 million in Q1 2024, indicating a growth of 7.0%[141] - Same-property NOI increased by $2.1 million, or 3.6%, for the three months ended March 31, 2025, compared to the same period in 2024[149] Cash Flow and Liquidity - Cash and cash equivalents, including restricted cash, increased to $98.1 million at March 31, 2025, from $90.6 million at December 31, 2024[160] - Net cash provided by operating activities was $32.6 million for the three months ended March 31, 2025, an increase of $9.7 million from $22.9 million in the same period in 2024[162] - The company believes current cash flows, cash on hand, and access to capital markets will be sufficient to finance operations and obligations[170] Expenses and Costs - Property operating expenses increased by $2.2 million to $22.7 million in Q1 2025, compared to $20.5 million in Q1 2024, an increase of approximately 10.7%[142] - Interest and debt expense decreased by $0.8 million to $19.8 million in Q1 2025 from $20.6 million in Q1 2024, a reduction of about 3.9%[144] - Total capital expenditures for the three months ended March 31, 2025, were $20.7 million, compared to $20.2 million in the same period in 2024[164] Debt and Financing - As of March 31, 2025, the outstanding balance on the line of credit was $75 million, which was repaid by $25 million subsequent to the quarter[140] - As of March 31, 2025, the estimated fair value of consolidated debt was $1.6 billion[175] - Variable rate debt outstanding was $125.6 million with a weighted average interest rate of 5.38%[173] - A 1% increase in the weighted average interest rate of fixed rate debt would increase annualized interest expense by approximately $15.3 million[173] - The company has exposure to fluctuations in interest rates, particularly for variable rate debt indexed to SOFR[172] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.19 per common share for the first quarter of 2025, equating to an annual rate of $0.76[154] - The company did not issue any common shares under the ATM Program during the three months ended March 31, 2025[157] Development Projects - The company had 23 active development, redevelopment, or anchor repositioning projects with total estimated costs of $156.4 million as of March 31, 2025[163] Risk Management - The company continues to monitor inflation impacts, with interest rates remaining elevated compared to pre-2021 levels[140] - As of March 31, 2025, the company had no material exposure to foreign currency exchange risk or commodity price risk[176] - The company is a counterparty to two interest rate derivative agreements designated as cash flow hedges as of March 31, 2025[174]

Financial Performance - Funds from Operations (FFO) as Adjusted increased by 6.0% to $45.9 million, with FFO per diluted share at $0.35, compared to $0.33 in the same quarter last year[9]. - Net income for the three months ended March 31, 2025, was $8,382,000, compared to $2,445,000 for the same period in 2024, representing a significant increase[34]. - FFO applicable to diluted common shareholders for the three months ended March 31, 2025, was $45,458,000, compared to $39,050,000 in 2024, reflecting an increase of about 16.3%[34]. - The company’s FFO per diluted common share for the three months ended March 31, 2025, was $0.35, compared to $0.32 for the same period in 2024, marking an increase of 9.4%[34]. - Total revenue for the three months ended March 31, 2025, was $118,165,000, with general and administrative expenses amounting to $9,531,000[46]. - Total revenue for the three months ended March 31, 2025, was $118,165, an increase of 7.0% from $109,626 in 2024[48]. - Net income attributable to common shareholders for Q1 2025 was $8,198, compared to $2,603 in Q1 2024, representing a significant increase of 215.5%[48]. - Adjusted EBITDAre for the same period was $66,414,000, up from $60,803,000 in 2024, reflecting an increase of 9%[38]. Property and Leasing Activity - Same-property Net Operating Income (NOI) grew by 3.8%, driven by rent commencements and higher net recovery revenue[10]. - The Company executed 42 new leases totaling 434,000 square feet, with new leases generating an average cash spread of 34.3%[11]. - The company reported a same-property NOI including properties in redevelopment of $66,162,000 for the three months ended March 31, 2025, compared to $63,725,000 in 2024, showing a growth of approximately 6.4%[36]. - The company has signed leases not yet commenced that are expected to generate an additional $25.1 million in future annual gross rent, representing approximately 9% of current annualized NOI[12]. - The company executed 18 new leases in Q1 2025, covering 118,457 square feet, with a new rent per square foot of $45.49[57]. - The weighted average lease term for same space leases in Q1 2025 was 4.7 years, indicating stability in lease agreements[57]. - As of March 31, 2025, the top twenty-five tenants represent 49.9% of total square feet and 47.0% of annualized base rent (ABR), with total ABR amounting to $153.9 million[56]. Occupancy and Market Metrics - Consolidated portfolio leased occupancy was reported at 96.4%, a slight increase of 30 basis points year-over-year, but a decrease of 40 basis points from the previous quarter[11]. - The company reported a same-property physical occupancy rate of 94.1% for Q1 2025, up from 93.6% in Q1 2024[49]. - The retail portfolio's lease expiration schedule indicates a strategic opportunity for Urban Edge Properties to renegotiate leases and potentially increase rental income[63]. - The company owns 74 properties with a total gross leasable area of 17.3 million square feet[41]. - The total market capitalization is approximately $4.17 billion, with a net debt to total market capitalization ratio of 37%[20]. Debt and Liquidity - Total liquidity stands at approximately $791 million, including $98 million in cash and $693 million available under a revolving credit agreement[20]. - The total mortgage debt balance is reported at $1,580,602,000[67]. - The company has $75 million outstanding on its unsecured $800 million line of credit, with a maturity date of February 9, 2027[73]. - The weighted average interest rate on total debt remains at 5.05% as of March 31, 2025[72]. - The net debt to total market capitalization ratio stood at 37.3%, reflecting the company's leverage position[46]. Future Outlook and Guidance - The Company updated its 2025 full-year guidance for net income per diluted share to a range of $0.40 to $0.45, while maintaining FFO guidance of $1.36 to $1.41 per diluted share[21]. - The company anticipates same-property NOI growth, including redevelopment, to be between $0.06 and $0.07 per diluted share for 2025[24]. - The company is focusing on expanding its retail footprint, with properties like Tonnelle Commons and Ledgewood Commons showing high occupancy rates of 100% and 99.3% respectively[66]. - Future outlook includes maintaining high occupancy rates and exploring new leasing opportunities to further enhance revenue streams[66]. Development and Redevelopment Projects - Active redevelopment projects total $156.4 million, with an expected yield of approximately 14%[16]. - The estimated unleveraged yield for total active projects is 14%, based on total estimated project costs and incremental NOI[69]. - The company is redeveloping multiple properties, including Bruckner Commons and Hudson Mall, with significant tenant additions planned[69]. - Completed projects have incurred costs totaling $49,800,000, with stabilization achieved in Q1 2025 for several properties[70].

Company Overview - Urban Edge Properties (UE) is headquartered in New York and has experienced a price change of -14.98% this year [3] - The company currently pays a dividend of $0.19 per share, resulting in a dividend yield of 4.16%, which is lower than the REIT and Equity Trust - Retail industry's yield of 4.64% but higher than the S&P 500's yield of 1.69% [3] Dividend Performance - The current annualized dividend of Urban Edge Properties is $0.76, reflecting an 11.8% increase from the previous year [4] - Over the last 5 years, the company has increased its dividend 3 times year-over-year, with an average annual increase of 11.83% [4] - The current payout ratio is 51%, indicating that the company paid out 51% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Urban Edge Properties' earnings in 2025 is $1.40 per share, with an expected increase of 3.70% from the previous year [5] Investment Considerations - Urban Edge Properties is considered a compelling investment opportunity due to its strong dividend play and current Zacks Rank of 3 (Hold) [7]

Company Overview - Urban Edge Properties (UE) shares increased by 7.8% to close at $17.57, following a notable trading volume, contrasting with a 14.6% loss over the past four weeks [1] - The anticipated quarterly funds from operations (FFO) for Urban Edge Properties is projected at $0.35 per share, reflecting a year-over-year increase of 6.1% [2] - Expected revenues for the upcoming report are $113.88 million, which is a 3.9% increase compared to the same quarter last year [2] Market Sentiment - The recent rally in UE's stock price is linked to increased investor optimism, partly due to President Trump's announcement of a 90-day pause on reciprocal tariffs for most countries [1] - The consensus FFO per share estimate for Urban Edge Properties has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without revisions in FFO estimates [4] Industry Context - Urban Edge Properties operates within the Zacks REIT and Equity Trust - Retail industry, where another company, Saul Centers (BFS), saw a 4.1% increase in its stock price, closing at $33.52, despite a -12.6% return over the past month [4] - Saul Centers has a consensus FFO per share estimate of $0.73, which represents an 8.8% decrease from the previous year [5]

Company Overview - Urban Edge Properties (UE) is a real estate investment trust based in New York, focusing on owning and managing shopping centers [3] - The company has experienced a share price decline of 14.19% this year [3] Dividend Information - Urban Edge Properties currently pays a dividend of $0.19 per share, resulting in a dividend yield of 4.12%, which is slightly below the industry yield of 4.17% and significantly above the S&P 500 yield of 1.61% [3] - The annualized dividend of $0.76 represents an 11.8% increase from the previous year [4] - Over the past five years, the company has increased its dividend three times, averaging an annual increase of 5.97% [4] - The current payout ratio is 51%, indicating that the company pays out 51% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Urban Edge Properties anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $1.40 per share, reflecting a 3.70% increase from the previous year [5] Investment Appeal - Urban Edge Properties is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [7]