Urban Edge Properties(US:UE)2026-02-11 11:59Financial Performance - Urban Edge Properties reported a net income of $12.4 million for Q4 2025, down from $30.1 million in Q4 2024, and a full-year net income of $93.5 million, up from $72.6 million in 2024[10]. - Funds from Operations (FFO) for FY 2025 were $186.4 million, slightly down from $186.7 million in FY 2024, while FFO as Adjusted increased to $187.1 million from $169.7 million[10]. - Same-property Net Operating Income (NOI) growth was 4.3% for FY 2025, with a quarterly growth of 2.4%[11]. - Net income for the quarter ended December 31, 2025, was $12,794,000, a decrease of 59.3% compared to $31,506,000 for the same quarter in 2024[38]. - Funds from Operations (FFO) applicable to diluted common shareholders for the quarter was $45,191,000, slightly down from $45,350,000 in the previous year[38]. - Same-property Net Operating Income (NOI) for the year ended December 31, 2025, was $241,597,000, an increase of 4.3% from $231,610,000 in 2024[40]. - Adjusted EBITDAre for the quarter ended December 31, 2025, was $66,935,000, compared to $64,478,000 for the same quarter in 2024, reflecting a growth of 3.8%[42]. - NOI for the year ended December 31, 2025, was $289,637,000, up from $273,268,000 in 2024, marking a 6.0% increase[40]. - Total revenue for the quarter ended December 31, 2025, was $119,560,000, representing an increase from $116,367,000 in the same quarter of 2024[50]. - Adjusted EBITDAre for the year ended December 31, 2025, was $268,575,000, up from $244,000,000 in 2024, indicating a growth of 10.1%[50]. - Funds from operations (FFO) for the quarter ended December 31, 2025, was $45,191,000, compared to $44,000,000 in the same quarter of 2024, showing a slight increase of 2.7%[50]. Leasing and Occupancy - The company signed over 360,000 square feet of new leases in 2025, achieving a record cash spread of 32% and a shop occupancy rate of 92.6%[9]. - The consolidated portfolio leased occupancy at the end of the period was 96.7%, consistent with the previous year, indicating strong demand for retail space[50]. - Same-property physical occupancy increased to 95.4% in Q4 2025 from 94.7% in Q4 2024[53]. - The total number of leases executed for the year ended December 31, 2025, was 162, covering 1,500,050 square feet, with a new rent per square foot of $38.12[61]. - The company executed 33 renewals and options in the fourth quarter of 2025, totaling 165,157 square feet, with a new rent per square foot of $37.63, reflecting a 19.4% rent spread[61]. - The retail portfolio lease expiration schedule indicates that 18.6% of total square feet will expire in 2029, with a weighted average annual base rent of $21.59 per square foot[67]. - Approximately 93% of the leased but not yet rent commenced pipeline consists of national and regional tenants[62]. - The weighted average remaining term of leases for the top 25 tenants is 5.5 years[60]. Development and Acquisitions - Urban Edge Properties acquired Brighton Mills for $39 million at a 5.4% capitalization rate and sold non-core assets for $66.2 million at a 4.9% capitalization rate during 2025[13]. - The company has $165.5 million in active development and redevelopment projects, with an expected yield of approximately 14%[22]. - The Company plans acquisitions totaling $54 million for properties currently under contract[29]. - The company plans to continue focusing on acquiring, developing, and redeveloping retail real estate in urban communities[45]. - Future redevelopment opportunities include locations such as Hudson Mall and Sunrise Mall, with potential for new pad developments and renovations[75]. Financial Outlook - For 2026, the company anticipates net income per diluted share between $0.49 and $0.54, and FFO per diluted share between $1.47 and $1.52, reflecting a 4.5% growth at the midpoint compared to 2025[23]. - Same-property NOI growth is projected to be between 2.75% and 3.75%[29]. - FFO applicable to diluted common shareholders is estimated to be $192.2 million to $198.7 million for 2026[28]. - Recurring general and administrative expenses are expected to range from $34.5 million to $36.5 million[29]. - Interest and debt expenses are forecasted to be between $78.9 million and $80.9 million[29]. Capital Structure and Debt - Total liquidity is approximately $849 million, including $79 million in cash and $770 million available under the unsecured line of credit[27]. - The company has a total market capitalization of approximately $4.17 billion, with a net debt to total market capitalization ratio of 37%[27]. - The company reported a net debt of $1,540,523,000, with a net debt to annualized Adjusted EBITDAre ratio of 5.8x[56]. - The total mortgage debt as of December 31, 2025, was $1,619,388, with a weighted average interest rate of 5.03%[78]. - The debt maturity schedule indicates that the company has $1,555,170 in total payments due by 2030, with 22.4% of the debt maturing in 2029[79]. - The company’s revolving credit agreement was amended on January 22, 2026, reducing the applicable margin to 1.00% over SOFR and an annual facility fee of 0.15%[80]. Tenant and Portfolio Information - The top 25 tenants represent 50.2% of total square footage, with annualized base rent (ABR) totaling $157.214 million[60]. - The TJX Companies is the largest tenant, accounting for 5.6% of total ABR at $18.664 million[60]. - Major tenants across various properties include HomeSense, Lowe's, and Walmart, contributing to high occupancy rates[71]. - The retail portfolio includes major tenants such as Costco, Target, and Best Buy, contributing to a diverse tenant mix across various states[69]. - The company has a total of 103 vacant spaces, comprising 532,000 square feet, which represents 3.3% of the total portfolio[68].