Urban Edge Properties(US:UE)2024-10-30 11:00Financial Performance - Net income for Q3 2024 was $9.5 million, a decrease from $37.5 million in Q3 2023, reflecting a significant year-over-year decline [103]. - Total revenue increased by $10.6 million to $112.4 million in Q3 2024 from $101.8 million in Q3 2023, primarily due to property acquisitions and rental increases [104]. - Funds From Operations (FFO) applicable to diluted common shareholders for Q3 2024 was $43.9 million, down from $64.2 million in Q3 2023 [102]. - Net Operating Income (NOI) for Q3 2024 was $69.5 million, compared to $63.4 million in Q3 2023, indicating a year-over-year increase [102]. - Same-property NOI for Q3 2024 was $54.4 million, up from $51.9 million in Q3 2023, reflecting improved performance in existing properties [102]. - Net income for the nine months ended September 30, 2024, was $43.9 million, compared to $28.0 million for the same period in 2023, showing overall growth [106]. - Total revenue increased by $28.3 million to $328.6 million for the nine months ended September 30, 2024, compared to $300.3 million for the same period in 2023 [107]. - Same-property NOI increased by $5.6 million, or 3.6%, for the nine months ended September 30, 2024, compared to the same period in 2023 [110]. - Funds From Operations (FFO) applicable to diluted common shareholders was $141.4 million for the nine months ended September 30, 2024, compared to $138.8 million for the same period in 2023 [112]. - Net income attributable to common shareholders for the three months ended September 30, 2024, was $9.08 million, a decrease from $36.12 million in the same period of 2023 [114]. Expenses and Costs - Depreciation and amortization expenses increased by $7.7 million to $34.7 million in Q3 2024, primarily due to property acquisitions [104]. - Real estate tax expenses rose by $1.5 million to $17.7 million in Q3 2024, driven by property acquisitions [104]. - General and administrative expenses increased by $0.5 million to $9.4 million in Q3 2024, attributed to higher employment costs [104]. - Interest and debt expense increased by $0.5 million to $19.5 million in Q3 2024, influenced by outstanding borrowings for property acquisitions [104]. - Depreciation and amortization rose by $35.4 million to $112.9 million for the nine months ended September 30, 2024, from $77.5 million in the same period of 2023 [107]. - Interest and debt expense increased by $9.6 million to $62.0 million for the nine months ended September 30, 2024, compared to $52.4 million for the same period in 2023 [108]. - Income tax expense decreased by $16.1 million to $1.7 million for the nine months ended September 30, 2024, from $17.8 million in the same period of 2023 [108]. Cash Flow and Investments - Cash and cash equivalents, including restricted cash, decreased to $89.6 million as of September 30, 2024, from $174.2 million at December 31, 2023 [116]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $100.74 million, a decrease of $2.11 million from $102.85 million in the same period of 2023 [117]. - Net cash used in investing activities increased to $146.34 million for the nine months ended September 30, 2024, compared to $86.48 million in the same period of 2023, primarily due to increased real estate acquisitions [118]. - Total capital expenditures for the nine months ended September 30, 2024, were $65.65 million, down from $84.55 million in the same period of 2023 [120]. Debt and Financing - The company has an $800 million revolving credit agreement with a remaining balance of $769.9 million available as of September 30, 2024 [115]. - As of September 30, 2024, the balance of variable rate debt was $51.3 million with a weighted average interest rate of 5.26% [125]. - The fixed rate debt amounted to $1.5 billion with a weighted average interest rate of 5.03% [125]. - An increase of 1% in the weighted average interest rate of fixed rate debt would result in an annualized interest expense increase of approximately $14.7 million [125]. - The estimated fair value of consolidated debt as of September 30, 2024, was $1.5 billion [126]. - The fixed rate debt excludes a $44.4 million mortgage classified as held for sale [125]. - The company was a counterparty to two interest rate derivative agreements designated as cash flow hedges as of September 30, 2024 [125]. - The variable rate mortgage on Plaza at Woodbridge is hedged with an interest rate cap limiting the maximum SOFR to 3.0% [125]. - The company does not enter into financial instrument agreements for speculation or trading purposes [125]. Gains and Losses - A real estate impairment loss of $34.1 million was recognized in the first quarter of 2023, impacting the carrying value of a property in Brooklyn, NY [107]. - The company reported a $15.3 million gain on the sale of real estate during the nine months ended September 30, 2024, compared to a gain of $0.4 million in the same period of 2023 [107]. - The company recognized a $21.7 million gain on extinguishment of debt for the nine months ended September 30, 2024, compared to a $42.5 million gain in the same period of 2023 [108]. Dividends - The company declared a quarterly dividend of $0.17 per common share for the first three quarters of 2024, resulting in an annual rate of $0.68 [115]. Development Projects - The company has 22 active development projects with total estimated costs of $159.2 million, of which $64.0 million has been incurred as of September 30, 2024 [118].