Urban Edge Properties(UE) - 2025 Q1 - Quarterly Report

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]