Urban Edge Properties(US:UE)2025-10-29 10:59Financial 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].