Urban Edge Properties(US:UE)2025-10-29 11:00Financial Performance - Net income for the three months ended September 30, 2025, was $15.5 million, a 64.8% increase from $9.5 million in the same period of 2024[160] - Total revenue for the nine months ended September 30, 2025, increased by $23.8 million to $352.4 million compared to $328.6 million for the same period in 2024[162] - Funds From Operations (FFO) applicable to diluted common shareholders for the three months ended September 30, 2025, was $51.9 million, up from $43.9 million in the same period of 2024[159] - Same-property Net Operating Income (NOI) for the three months ended September 30, 2025, was $62.6 million, compared to $60.2 million for the same period in 2024, reflecting a 4.0% increase[159] - Same-property NOI increased by $2.5 million, or 4.1%, for the three months ended September 30, 2025, compared to the same period in 2024, and increased by $8.0 million, or 4.6%, for the nine months ended September 30, 2025[174] - FFO applicable to diluted common shareholders was $52.0 million for the three months ended September 30, 2025, compared to $43.9 million for the same period in 2024[176] - Same-property NOI including properties in redevelopment increased by $3.1 million, or 4.7%, for the three months ended September 30, 2025, compared to the same period in 2024[174] Expenses and Costs - General and administrative expenses decreased by $0.4 million to $9.0 million in the third quarter of 2025 from $9.4 million in the third quarter of 2024, primarily due to lower employment expenses[161] - Interest and debt expense decreased by $0.2 million to $19.4 million in the third quarter of 2025 from $19.5 million in the third quarter of 2024[161] - Real estate tax expense decreased by $0.9 million to $16.8 million in the third quarter of 2025 from $17.7 million in the third quarter of 2024[160] - Depreciation and amortization decreased by $6.3 million to $106.6 million for the nine months ended September 30, 2025, compared to $112.9 million for the same period in 2024[163] - General and administrative expenses increased by $2.4 million to $30.2 million for the nine months ended September 30, 2025, from $27.8 million in the same period of 2024, primarily due to severance expenses[166] - Interest and debt expense decreased by $3.3 million to $58.7 million for the nine months ended September 30, 2025, from $62.0 million in the same period of 2024[168] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025 was $131.7 million, up $31.0 million from $100.7 million for the same period in 2024[187] - Net cash used in investing activities decreased to $11.1 million for the nine months ended September 30, 2025, down $135.2 million from $146.3 million in the same period of 2024[188] - Net cash used in financing activities increased to $66.4 million for the nine months ended September 30, 2025, up $27.4 million from $39.0 million in the same period of 2024[191] - As of September 30, 2025, the company had cash and cash equivalents of $144.8 million, an increase of $54.2 million from $90.6 million at December 31, 2024[185] Debt and Financing - The estimated fair value of the company's consolidated debt was $1.6 billion as of September 30, 2025[199] - The company has an $800 million revolving credit agreement with $767.8 million available as of September 30, 2025, with no outstanding balance[181] - The company has approximately $23.3 million of debt maturing within the next 12 months related to a mortgage loan[183] - The company recognized a $0.5 million gain on extinguishment of debt for the nine months ended September 30, 2025, related to the return of escrow funds[168] Real Estate Transactions - A gain on the sale of real estate was recognized at $49.7 million during the nine months ended September 30, 2025, compared to $15.3 million for the same period in 2024[167] - Interest expense decreased by $2.8 million due to mortgage debt forgiven in connection with the foreclosure of Kingswood Center[172] - Capitalized interest expense increased by $1.0 million due to the commencement of development and redevelopment projects[164] - The company had 22 active development projects with total estimated costs of $149.1 million, of which $76.6 million had been incurred as of September 30, 2025[188] Market Conditions - The Federal Reserve cut its benchmark interest rate by 25 basis points in September 2025, influenced by moderated economic growth and increased unemployment levels[158] - The company continues to monitor inflation impacts, with inflation levels remaining elevated compared to the Federal Reserve's target of 2%[158] Dividends - The company declared a quarterly dividend of $0.19 per common share for the first three quarters of 2025, resulting in an annual rate of $0.76[179]