Portfolio Highlights - The portfolio is concentrated in the DC to Boston corridor, the most densely populated region in the U S, with an average 3-mile population density of 200,000 people[1] - Grocers anchor 80% of the assets, generating sales of $900/ft[1,30] - Leased occupancy is 96 6%[7,10] - 90% of portfolio NOI is generated from properties situated in the D C to Boston corridor[19] Financial Performance and Growth - Targeting a long-term, annual growth rate of 4-5% per share in Funds from Operations as Adjusted[1] - A sector-leading pipeline of signed but not opened leases accounting for 9% of net operating income[4,68] - Redevelopment initiatives totaling $156 million, expected to deliver a 14% return[4,15,74,77] - Same-property NOI Growth with Redevelopment was 3 8% in 1Q25[9,15] - The company projects FFO as Adjusted to be between $1 37 and $1 42 per diluted common share for 2025[16,138] Strategic Capital Recycling - Since October 2023, the company acquired $552 million of high-quality shopping centers at a 7 2% cap rate and sold $452 million of non-core, low growth assets at a 5 2% cap rate[4,80,99]

Core Insights - Urban Edge Properties has signed a lease with TruGolf Links for a flagship location in Cherry Hill, New Jersey, which will feature a premium "eatertainment" experience and is set to open by the end of 2025 [1][3] - TruGolf, a Nasdaq-listed company, is transitioning from selling high-tech golf simulators to opening brick-and-mortar TruGolf Links Centers, offering a high-end entertainment experience [2][4] - The new TruGolf Links Center will include five premium golf simulators, an upscale food and beverage menu, and a full bar, aiming to attract a diverse audience [4][5] Company Overview - TruGolf has been innovating in the golf industry since 1983, focusing on making golf more accessible through technology and offering products like award-winning video games and e-sports platforms [6] - Urban Edge Properties is a real estate investment trust that manages and develops retail real estate in urban areas, owning 73 properties with a total of 17.2 million square feet of gross leasable area [9] Strategic Development - The flagship TruGolf Links Center will be located in a prime area of the Plaza at Cherry Hill, which is anchored by national brands and adjacent to a highly trafficked mall, enhancing its visibility and accessibility [3][4] - The collaboration between TruGolf and Urban Edge aims to create a compelling retail destination that meets community needs and enhances the overall shopping experience [4][5]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - REITs are currently undervalued, presenting opportunities for value and income investors to build diversified portfolios [2] Group 2 - The article emphasizes the importance of due diligence and independent decision-making for investors [4][5]

Core Insights - The article highlights the disconnect between the strong operational performance of shopping center REITs and their market pricing, suggesting potential investment opportunities in the sector [1][5][9] Performance Metrics - Shopping center REITs reported high occupancy rates, rising rents, and same-store NOI growth of 3% to 6% over the past six quarters, yet their market performance has been poor [2][5] - As of June 6, 2025, equity REITs had a YTD return of approximately 1.0%, while shopping center REITs significantly lagged behind [5][6] Valuation Comparisons - Shopping center REITs trade at an average AFFO multiple of 16.1x, which is lower than other sectors like Multifamily (17.4x), Manufactured Housing (20.8x), and Industrial (18.0x), indicating potential mispricing [8][9] - The average trading price of shopping center REITs is 81.3% of their consensus Net Asset Value (NAV), compared to 80.8% for Multifamily, 87.8% for Manufactured Housing, and 83.9% for Industrial [9][10] Upside Potential - On average, shopping center REITs are trading at prices that suggest a 20% upside to their 52-week highs, indicating potential for capital appreciation if economic conditions improve [12][13] - Specific companies like Acadia Realty Trust and Brixmor Property Group have notable upside potentials of 34.48% and 19.85% to their 52-week highs, respectively [13] Market Sentiment - Despite high interest rates and poor market performance, companies like Kimco Realty have been actively buying back shares, reflecting confidence in their investment value [14][15]

Financial Data and Key Metrics Changes - The company reported FFO as adjusted of $0.35 per share, a 6% increase over the first quarter of last year, marking the highest quarterly earnings result in the company's ten-year history [4] - Same property NOI increased by 3.8% compared to the first quarter of last year, benefiting from improved recovery ratios and better-than-expected collections [4][18] - The company has approximately $800 million of total liquidity, including $98 million in cash, with a manageable debt maturity profile [19] Business Line Data and Key Metrics Changes - The company executed 42 leases totaling 434,000 square feet, including 18 new leases amounting to 118,000 square feet with same space cash leasing spreads of 34% [4][13] - Tenant retention ratio remains high at 95%, and SHOP occupancy grew to a record 92.4% [5][14] - The same property lease rate stands at 96.6%, reflecting a 50 basis point decrease over the previous quarter [13] Market Data and Key Metrics Changes - The investment sales market is showing early signs of slowing down, with limited CMBS issuance since April [6] - Transactions with private buyers remain active, highlighted by a successful $25 million sale of land approved for residential units [7] - The company plans to reinvest capital from property dispositions into accretive acquisitions to enhance portfolio quality and growth rate [8] Company Strategy and Development Direction - The company is reiterating its 2025 full-year guidance of achieving FFO as adjusted of $1.37 to $1.42 per share, reflecting growth of 4% at the midpoint [8][20] - The company has a large redevelopment pipeline totaling $156 million, expected to generate a 14% return [10][15] - The company is focused on capital recycling, having acquired over $550 million in assets at a 7.2% cap rate while selling approximately $450 million at a 5.2% cap rate [11] Management's Comments on Operating Environment and Future Outlook - Management expressed a more conservative outlook for the back half of the year due to economic volatility, despite a stronger start to the year [9][21] - The company is confident in its ability to navigate economic cycles, emphasizing the strength of its tenant roster and balance sheet [22] - Management noted that the overall health of retailer balance sheets is strong, with no significant bankruptcy risks anticipated [48] Other Important Information - The company has no corporate debt other than $50 million currently drawn on its line of credit, isolating market risk to individual assets [11] - The company has built in more conservative assumptions for the remainder of the year, incorporating contingencies for potential volatility in rent collections [21] Q&A Session Summary Question: Impact of macro uncertainty on leasing timelines - Management has not seen any slowdown from retailers, with ongoing strong demand across the portfolio [26][27] Question: Details on dispositions and acquisition opportunities - The company has successfully announced $66 million in dispositions at a 5% cap rate, with plans to pursue acquisitions [28][29] Question: Caution in guidance due to market volatility - Management has added to contingency measures in guidance but did not specify any particular tenant concerns [35][36] Question: Rent growth context and impact of bankruptcies - Management indicated a 5% to 10% increase in market rents, with no significant impact from recent bankruptcies on overall demand [44][46] Question: Performance of the portfolio in recessionary environments - Management believes the portfolio is well-positioned to perform better than typical grocery-anchored centers during economic downturns [51][52] Question: Bad debt assumptions and exposure to Kohl's - The company reiterated bad debt guidance of 75 to 100 basis points of gross rents, with no near-term bankruptcy risk for Kohl's [60]

Core Viewpoint - Urban Edge Properties reported quarterly funds from operations (FFO) of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and up from $0.33 per share a year ago [1][2] Financial Performance - The company achieved revenues of $118.09 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.42%, compared to $109.63 million in the same quarter last year [3] - Urban Edge Properties has exceeded consensus revenue estimates two times over the last four quarters [3] Stock Performance - The stock has declined approximately 15.4% since the beginning of the year, while the S&P 500 has decreased by 5.5% [4] - The current consensus FFO estimate for the upcoming quarter is $0.34 on revenues of $114.51 million, and for the current fiscal year, it is $1.38 on revenues of $446.2 million [8] Industry Context - The REIT and Equity Trust - Retail industry is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which can impact stock performance [6]

Financial Data and Key Metrics Changes - The company reported FFO as adjusted of $0.35 per share, a 6% increase over the first quarter of last year, marking the highest quarterly earnings result in the company's ten-year history [5] - Same property NOI increased by 3.8% compared to the first quarter of last year, benefiting from improved recovery ratios and better-than-expected collections [5][17] - The company reiterated its 2025 full-year guidance of achieving FFO as adjusted of $1.37 to $1.42 per share, reflecting growth of 4% at the midpoint [8][19] Business Line Data and Key Metrics Changes - The company executed 42 leases totaling 434,000 square feet in the first quarter, including 18 new leases amounting to 118,000 square feet with same-space cash leasing spreads of 34% [5][13] - The tenant retention ratio remained high at 95%, and SHOP occupancy grew to a record 92.4%, a 150 basis point increase since the last quarter [6][14] Market Data and Key Metrics Changes - The investment sales market is showing early signs of slowing down, with limited CMBS issuance since April [7] - The company successfully sold eight acres of land for $25 million and is under contract to sell two more properties for $41 million, bringing total dispositions to $66 million this year at a 5% weighted average cap rate [8] Company Strategy and Development Direction - The company plans to reinvest capital from dispositions into accretive acquisitions to enhance portfolio quality and growth rate [8] - The company has a large redevelopment pipeline totaling $156 million of projects expected to generate a 14% return [10][15] - The company is focused on capital recycling, having acquired over $550 million in assets at a 7.2% cap rate while selling approximately $450 million at a 5.2% cap rate [11] Management's Comments on Operating Environment and Future Outlook - Management expressed a more conservative outlook for the back half of the year due to economic volatility, despite a stronger start to the year than expected [9][19] - The company remains confident in its ability to navigate economic cycles and drive sector-leading growth [21] Other Important Information - The company has approximately $800 million of total liquidity, including $98 million in cash, and a manageable debt maturity profile with only 8% of outstanding debt maturing through 2026 [18] - The company has built in conservative assumptions for the remainder of the year, incorporating contingencies for potential volatility in rent collections and tenant fallout [20] Q&A Session Summary Question: How does macro uncertainty affect leasing timelines? - Management noted that there has been no observed slowdown in retailer demand, with ongoing negotiations for numerous leases [25][26] Question: Can you provide more details on the dispositions and cap rates? - Management indicated that the recent dispositions were at attractive cap rates, and they are actively seeking acquisitions [27][28] Question: What specific factors led to a more cautious outlook? - Management stated that the decision to maintain conservative guidance was prudent, without specific tenant concerns driving the change [34][35] Question: How does the company view its portfolio in a recessionary environment? - Management expressed confidence in the portfolio's resilience, highlighting strong tenant balance sheets and a focus on well-capitalized anchors [50][52] Question: What are the bad debt assumptions for the year? - Management reiterated guidance for bad debt to be 75 to 100 basis points of gross rents, with a slight contingency built in for the second half of the year [59]

Financial Data and Key Metrics Changes - The company reported FFO as adjusted of $0.35 per share, a 6% increase over the first quarter of last year, marking the highest quarterly earnings result in the company's ten-year history [4] - Same property NOI increased by 3.8% compared to the first quarter of last year, benefiting from improved recovery ratios and better-than-expected collections [4][16] - The company reiterated its 2025 full-year guidance of achieving FFO as adjusted of $1.37 to $1.42 per share, reflecting growth of 4% at the midpoint [7][19] Business Line Data and Key Metrics Changes - The company executed 42 leases totaling 434,000 square feet, including 18 new leases amounting to 118,000 square feet with same space cash leasing spreads of 34% [4][12] - The tenant retention ratio remains high at 95%, and SHOP occupancy grew to a new record of 92.4% [5][13] - The same property lease rate now stands at 96.6%, a 50 basis point decrease over the previous quarter [12] Market Data and Key Metrics Changes - The investment sales market is showing early signs of slowing down, with limited CMBS issuance since April [6] - The company has successfully sold eight acres of land for $25 million and is under contract to sell two more properties for $41 million, bringing total dispositions to $66 million this year at a 5% weighted average cap rate [7] Company Strategy and Development Direction - The company plans to reinvest capital from dispositions into accretive acquisitions to enhance portfolio quality and growth rate [7] - The company has a large redevelopment pipeline totaling $156 million of projects expected to generate a 14% return [9][14] - The company emphasizes its properties' concentration in densely populated regions, which is expected to drive growth [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed a more conservative outlook for the back half of the year due to economic volatility, despite a stronger start to the year [8][20] - The company is focused on executing its business plan to drive leasing and occupancy while carefully managing costs [20] - Management noted that the overall health of retailer balance sheets is strong, and they do not foresee significant bankruptcy risks among major tenants [46] Other Important Information - The company has approximately $800 million of total liquidity, including $98 million in cash, and a manageable debt maturity profile [17] - The net debt to annualized EBITDA stands at 5.9 times, indicating a strong balance sheet position [18] Q&A Session Summary Question: How does macro uncertainty affect leasing decisions? - Management noted that there has been no slowdown in retailer demand, with ongoing negotiations for numerous leases without material changes [25] Question: Can you provide more details on the dispositions and cap rates? - Management confirmed that the recent dispositions were at a 5% cap rate, which is attractive compared to previous acquisitions [26][28] Question: What specific factors led to a more cautious outlook? - Management indicated that they added to the contingency in their guidance due to overall economic uncertainty, rather than specific tenant issues [34] Question: How do 1031 exchanges impact taxable income and dividends? - Management clarified that 1031 exchanges defer gains and do not pressure dividends, allowing for more strategic capital deployment [38] Question: What is the outlook for rent growth and bankruptcy risks? - Management reported a 5% to 10% increase in market rents and does not view recent bankruptcies as indicative of broader market issues [44][46] Question: How does the company view its portfolio in a recessionary environment? - Management expressed confidence in the portfolio's resilience, highlighting strong tenant quality and balance sheet strength [50]

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]

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].