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

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].