Core Viewpoint - REITs are regaining favor as a safe haven investment, showing a year-to-date increase of 6.9% compared to a broader market decline [1] Group 1: Market Dynamics - The turning point for market sentiment occurred in early February, coinciding with a reversal of previously hot trades and a focus on significant capital expenditure (capex) by hyperscalers during earnings season [3] - Major tech companies like Microsoft, Google, and Amazon experienced declines of 5%, 10%, and 18% respectively, contributing to a 4% drop in the Nasdaq and a 2% drop in the S&P in the first two weeks of February [7][8] - Traditional safe havens, including gold and silver, have not performed well, leading investors to consider REITs as a more reliable option [9][11] Group 2: REITs' Fundamental Strength - REITs have demonstrated strong fundamental performance over the past five years, with metrics such as FFO (Funds From Operations) growth and improved margins [13][16] - The median REIT trades at 13.8X FFO, significantly lower than the S&P's 29.3X trailing earnings, indicating a divergence in valuation [21] - REITs currently offer an FFO yield of 7.24%, compared to the S&P's earnings yield of 3.4%, allowing for larger dividend payouts [24] Group 3: Cash Flow Reliability - REITs benefit from contractual revenue streams that can extend up to 30 years, providing visibility into future cash flows and supporting consistent dividend growth [17][19] - A forecast indicates that 36 REITs are expected to increase their dividends in the first quarter of 2026, reflecting their reliable cash flow structure [17] Group 4: Direct Benefits from Tech Capex - Many REITs are positioned to benefit directly from the trillions of dollars being spent on AI infrastructure, with companies like Equinix reporting accelerating growth in AFFO per share due to increased demand for data centers [29] - The demand for infrastructure related to AI is driving significant growth opportunities for REITs, contrasting with the challenges faced by hyperscalers [29] Group 5: Market Correction and Future Outlook - The current market correction is seen as a recalibration of previously inflated tech valuations, with capital shifting towards undervalued sectors like REITs [32][33] - The outperformance of REITs in 2026 is viewed as just the beginning, with expectations for further normalization of relative value as the market adjusts [33]

INVESTOR PRESENTATION FEBRUARY 2026 THE URBAN EDGE – POINTS OF DIFFERENTIATION Our 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 - the highest in the sector. Grocers anchor 80% of our assets, generating sales of ~$950/ft Achieved FFO as Adjusted 3-year CAGR of 6% through 2025. We are targeting a long-term, annual growth rate of 4-5% per share. Our growth drivers include: INVESTOR PRESENTATION ...

Economic Overview - The U.S. economic landscape remains resilient with major indexes moving higher, driven by strong earnings from large technology companies and steady consumer spending [1] - The Dow Jones Industrial Average closed above the 50,000 mark for the first time in February 2026 [1] - Market participants expect the Federal Reserve to begin cutting interest rates later this year, although there is uncertainty regarding new Fed leadership and future monetary policy [1] Inflation and Geopolitical Concerns - Inflation is currently above the Fed's long-term target of 2%, which may lead the central bank to maintain higher interest rates for an extended period [2] - Rising geopolitical tensions pose a significant concern, potentially impacting U.S. exports and corporate profits [2] Investment Trends - Investors are shifting towards steady industrial growth stocks due to concerns over high valuations in technology companies and the costs associated with sustaining the AI revolution [3] - Economic reports are being closely monitored, as even minor surprises could lead to significant market movements [3] Dividend-Paying Stocks - In the current market conditions, investors looking to diversify can consider dividend-paying stocks, which indicate a healthy business model [4] - Stocks that have recently increased dividends tend to exhibit a sound financial structure and can withstand market volatility [4] Company Highlights NetEase (NTES) - NetEase is an Internet technology company based in China, with a dividend of $1.16 per share declared for March 27, 2026, and a dividend yield of 1.9% [5] - Over the past five years, NTES has increased its dividend 10 times, with a payout ratio of 29% of earnings [6] Penske Automotive Group (PAG) - Penske Automotive Group operates automotive and commercial truck dealerships globally, declaring a dividend of $1.40 per share for March 5, 2026, with a dividend yield of 3.2% [7] - PAG has increased its dividend 20 times in the past five years, with a payout ratio of 38% of earnings [8] Urban Edge Properties (UE) - Urban Edge Properties is a real estate investment trust focused on shopping centers, declaring a dividend of 21 cents per share for March 31, 2026, with a dividend yield of 3.7% [9][11] - UE has increased its dividend five times over the past five years, with a payout ratio of 54% of earnings [11] Gilead Sciences (GILD) - Gilead Sciences specializes in developing drugs for HIV treatment, declaring a dividend of 82 cents per share for March 30, 2026, with a dividend yield of 2% [12] - GILD has increased its dividend six times in the past five years, with a payout ratio of 39% of earnings [12] Royal Caribbean Cruises (RCL) - Royal Caribbean Cruises operates multiple global cruise brands, declaring a dividend of $1.50 per share for April 3, 2026, with a dividend yield of 1.2% [13] - RCL has increased its dividend five times over the past five years, with a payout ratio of 26% of earnings [14]

Financial Data and Key Metrics Changes - The company generated FFO as adjusted of $1.43 per share in 2025, representing a 6% growth compared to 2024, driven by a 5% same-property NOI growth [4][17] - Same-property NOI, including redevelopment, increased by 2.9% in Q4 and 5% for the full year [17] - The company ended 2025 with a net debt to annualized EBITDA ratio of 5.8x, below the target of 6.5x, indicating a strong balance sheet [18] Business Line Data and Key Metrics Changes - The company executed 58 new leases at a record same-space cash rent spread of 32% and achieved a record shop occupancy of 92.6% [4][10] - The signed but not open pipeline is expected to generate an additional $22 million of annual gross rent, representing 8% of current NOI [5] - The company completed 14 projects totaling $55 million, generating unlevered yields of 19% [6] Market Data and Key Metrics Changes - Nationally, shopping center vacancy remains near historic lows, with supply constraints particularly pronounced in the Northeast [11] - The company noted that finding land and securing entitlements is extremely difficult in its markets, which supports expectations for healthy rent growth [12] Company Strategy and Development Direction - The company aims for FFO as adjusted growth of at least 4.5% in 2026 and same-property NOI growth above 3% [8] - The growth outlook is highly visible, with over 80% of same-property NOI growth expected from executed leases and contractual rent increases [9] - The company is focused on redevelopment and anchor repositioning projects, with significant investments planned for the future [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued demand for high-quality retail spaces and expects new lease spreads to remain above 20% in 2026 [4][5] - The company anticipates challenges in the acquisition market due to increased competition and lower cap rates, but remains optimistic about capital recycling opportunities [28][60] Other Important Information - The board approved an 11% increase in the annualized dividend to $0.84 per share, reflecting an FFO payout ratio of about 56% [21] - The company has $166 million of active redevelopment projects, with plans to spend about $70 million-$80 million during 2026 [21] Q&A Session Summary Question: Expectations for shop occupancy growth - Management expects to reach a steady state of 94%-96% occupancy, with potential for strategic leasing improvements [25][26] Question: Insights on capital recycling and acquisition pipeline - The acquisition market is competitive, with cap rates decreasing, but the company is optimistic about capital recycling opportunities [28][60] Question: Same-property NOI growth path - The deceleration in 2026 is attributed to tenant fallout and one-time benefits in 2025, while growth visibility from the signed but not open pipeline supports a rebound in 2027 [34][35] Question: Impact of snow removal costs on guidance - Guidance for 2026 accounts for snow removal costs incurred in January, with appropriate provisions made [43] Question: Opportunities in redevelopment projects - The company is focused on both small-scale and larger redevelopment projects, with significant potential for growth from completed projects [46][47]

Financial Data and Key Metrics Changes - The company generated FFO as adjusted of $1.43 per share for 2025, representing a 6% growth compared to 2024, driven by strong leasing activity and same-property NOI growth of 5% [5][18] - Full-year same-property NOI increased by 5%, while the fourth quarter saw a 2.9% increase, impacted by higher snow removal expenses [18] - The balance sheet remains strong with total liquidity of $849 million and no amounts drawn on the line of credit [19] Business Line Data and Key Metrics Changes - The company executed 58 new leases at a record same-space cash rent spread of 32%, with total new leases covering over 360,000 sq ft [5][10] - The signed but not open pipeline is expected to generate an additional $22 million of annual gross rent, representing 8% of current NOI [6] - The company completed 14 projects totaling $55 million, generating unlevered yields of 19% [7] Market Data and Key Metrics Changes - National shopping center vacancy remains near historic lows, with supply constraints particularly pronounced in the Northeast [11][12] - The company noted that finding land and securing entitlements is extremely difficult in its markets, which supports expectations for healthy rent growth [12] Company Strategy and Development Direction - The company aims for FFO as adjusted growth of at least 4.5% in 2026, with same-property NOI growth above 3% [8] - The growth outlook is supported by six anchor repositioning projects expected to drive significant NOI growth through 2027 [9] - The company is focused on capital recycling, acquiring high-quality shopping centers while disposing of non-core assets [8][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong leasing momentum and achieving healthy rent growth due to limited supply and high demand for quality retail spaces [5][6] - The company anticipates that new lease spreads will remain above 20% in 2026, reflecting ongoing demand [5] - Management highlighted a positive outlook for 2027, expecting approximately 5% NOI growth driven by executed leases and contractual rent increases [9] Other Important Information - The company has a redevelopment pipeline of $166 million, with a projected unlevered yield of 14% [22] - An 11% increase in the annualized dividend to $0.84 per share was approved, reflecting a payout ratio of about 56% [22] Q&A Session Summary Question: Expectations for shop occupancy growth - Management expects shop occupancy to stabilize around 94%-96%, with opportunities to improve leasing on occupied spaces [25][26][27] Question: Insights on capital recycling and acquisition pipeline - The acquisition market is competitive, with cap rates decreasing, but the company remains optimistic about capital recycling opportunities [28][29] Question: Same-property NOI growth path - The deceleration in 2026 is attributed to tenant fallout and one-time benefits in 2025, while growth visibility from the signed but not open pipeline supports a rebound in 2027 [34][35][36] Question: Impact of snow removal costs on guidance - Guidance for 2026 accounts for snow removal costs incurred in January, with appropriate provisions made [43][44] Question: Redevelopment pipeline opportunities - The company is focused on both small-scale and larger redevelopment projects, with a strong emphasis on enhancing existing assets [45][46][48] Question: Capital recycling avenues - Management is exploring opportunities to dispose of low-growth anchor tenants while maintaining control over the centers [53][54] Question: Specific asset performance inquiries - Gateway has long-term leases limiting immediate rent optimization, while Bruckner is undergoing significant redevelopment to enhance its value [63][66][68]

Financial Data and Key Metrics Changes - The company generated FFO as adjusted of $1.43 per share for 2025, representing a 6% growth compared to 2024, driven by a 5% same-property NOI growth [4][17] - Same-property NOI, including redevelopment, increased by 2.9% for Q4 and 5% for the full year [17] - The balance sheet remains strong with total liquidity of $849 million and no amounts drawn on the line of credit [17][18] Business Line Data and Key Metrics Changes - The company executed 58 new leases at a record same-space cash rent spread of 32% and achieved record shop occupancy of 92.6% [4][9] - In 2025, the company commenced over $16 million of new annualized gross rent from openings of various retailers, with an additional $22 million expected from the remaining signed but not open pipeline [5][6] Market Data and Key Metrics Changes - Nationally, shopping center vacancy remains near historic lows, with supply constraints particularly pronounced in the Northeast, where new construction represents only 0.2% of total supply [10][11] - The company expects new lease spreads to remain above 20% in 2026 due to strong demand and limited availability of high-quality retail spaces [4][5] Company Strategy and Development Direction - The company aims for FFO as adjusted growth of at least 4.5% and same-property NOI growth above 3% in 2026, with a focus on redevelopment and anchor repositioning projects [7][19] - The growth outlook is supported by six anchor repositioning projects expected to contribute significantly to same-property NOI growth through 2027 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to negotiate better lease terms due to supply constraints and strong tenant demand [11] - The company anticipates that over 80% of same-property NOI growth through 2027 will come from executed leases and contractual rent increases [8] Other Important Information - The company completed 14 projects totaling $55 million in 2025, generating unlevered yields of 19% [6] - The board approved an 11% increase in the annualized dividend to $0.84 per share, reflecting a payout ratio of about 56% [21] Q&A Session Summary Question: Expectations for shop occupancy growth - Management expects shop occupancy to stabilize around 94%-96%, with opportunities to improve leasing on occupied spaces [24][26] Question: Insights on capital recycling and acquisition pipeline - The acquisition market is competitive, with cap rates continuing to decrease, but the company remains optimistic about capital recycling opportunities [27][28] Question: Same-property NOI growth path over the next couple of years - The deceleration in 2026 is attributed to tenant fallout and one-time benefits in 2025, while growth is expected to pick up in 2027 due to visibility from the signed but not open pipeline [33][35] Question: Impact of snow removal costs on guidance - Guidance for 2026 accounts for snow removal costs incurred in January, with appropriate provisions made [43][45] Question: Opportunities for accelerating redevelopment projects - The company is focused on both small-scale and larger redevelopment projects, with a strong emphasis on enhancing existing properties [46][48] Question: Strategies for optimizing rents at specific assets - Management highlighted the challenges at Gateway due to long-term leases but expressed optimism for future retenanting opportunities [64][66]

Financial Performance - As of December 31, 2025, the company had $165.5 million in active development, redevelopment, and anchor repositioning projects, with an expected unleveraged yield of approximately 14%[42] - The largest tenant, TJX Companies, accounted for approximately $26.5 million, or 5.6%, of total revenue for the year ended December 31, 2025[57] - The company plans to selectively deploy capital through acquisitions in target markets that meet criteria for risk-adjusted returns[43] Operational Strategy - The company aims to maximize the value of existing properties through proactive management, including targeted leasing and cost-conscious operations[41] - The company is focused on maintaining a flexible balance sheet to support growth and expects increasing levels of cash flow from internally generated funds[45] - The company had 104 employees as of December 31, 2025, emphasizing the importance of attracting and retaining qualified personnel[56] Sustainability Initiatives - The company has implemented energy-efficient initiatives, including LED lighting retrofits and high-efficiency HVAC systems, to reduce greenhouse gas emissions[47] - The company conducts annual climate-related risk assessments to identify asset-level exposure to climate-related risks[48] - The company has aligned its sustainability practices with Global Reporting Initiative standards and publishes an annual Corporate Responsibility Report[46] - The company seeks to invest in underserved, high barrier-to-entry markets, primarily focusing on the Washington, D.C. to Boston corridor[44] Debt and Financial Instruments - As of December 31, 2025, the company's consolidated debt was estimated to have a fair value of $1.5 billion[243] - The weighted average interest rate for fixed-rate debt was 5.03% as of December 31, 2025, with a potential annualized interest expense increase of approximately $16.2 million if rates rise by 1%[1] - The fixed-rate debt balance was $1,619,388 thousand as of December 31, 2025, compared to $1,532,915 thousand in 2024[1] - The company excludes unamortized mortgage debt issuance costs of $12.6 million and $14.1 million as of December 31, 2025 and 2024, respectively[1] - The company may employ various financial instruments to mitigate interest rate fluctuations, depending on the analysis of the interest rate environment[1] - The company utilizes interest rate derivative agreements as cash flow hedges, which were assessed quarterly for effectiveness and met the criteria as of December 31, 2025[1] - The company does not engage in financial instrument agreements for speculation or trading purposes[1] - Future estimates of fair value may differ significantly from amounts presented as of December 31, 2025[245] - The company’s financial instruments' fair value was estimated based on current market prices and discounted cash flows[245] - The company had no material exposure to market risks such as foreign currency exchange risk or commodity price risk as of December 31, 2025[244]

Financial 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].

Industry Overview - The Zacks REIT and Equity Trust - Retail industry is experiencing a rebound driven by necessity-based, value-focused, and routine discretionary tenants, which are creating predictable demand [1][4][3] - Limited new supply and cautious development are supporting occupancy, rent stability, and cash flow for retail REITs [1][5] - Well-located stores are gaining value as they integrate fulfillment, returns, and customer engagement strategies [1][4] Key Trends - Everyday retail is becoming a key driver of stability for retail REITs, with tenants that attract regular visits supporting sales performance and improving rent reliability [4] - A prolonged period of limited new supply is underpinning retail REIT fundamentals, as tighter capital conditions and cautious development have reduced new projects [5] - Consumer behavior remains a key uncertainty, with uneven spending patterns across income groups affecting demand for retail space [6] Performance Metrics - The Zacks REIT and Equity Trust - Retail industry carries a Zacks Industry Rank of 92, placing it in the top 38% of 244 Zacks industries, indicating robust near-term prospects [8] - The industry's funds from operations (FFO) per share estimates have seen upward revisions, reflecting growing confidence in the group's growth potential [9] - Over the past year, the industry has underperformed the broader Zacks Finance sector and the S&P 500, declining 2.3% compared to the S&P 500's rise of 17.6% [11] Valuation - The industry is currently trading at a forward 12-month price-to-FFO ratio of 14.91X, which is below the S&P 500's forward P/E of 23.20X and the Finance sector's forward P/E of 17.12X [14] - Historical trading ranges show the industry has fluctuated between a high of 18.89X and a low of 12.21X over the last five years, with a median of 15.15X [17] Investment Opportunities - Simon Property Group is the largest retail REIT with a strong balance sheet liquidity exceeding $9 billion, resilient occupancy, and a tenant mix that enhances pricing power [18][19] - Regency Centers Corporation focuses on grocery-anchored shopping centers in affluent markets, with over 85% of its portfolio supporting stability across cycles [23][24] - Urban Edge Properties targets high-income markets with a portfolio that is 80% grocery-anchored, enhancing income stability and targeting 4-5% annual FFO growth [28][30]

Core Insights - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1][2] - The investment group emphasizes high-yield, dividend growth investment ideas, targeting dividend yields up to 10% [2] Group 1: Investment Strategy - The service offers investment research on various asset classes including REITs, ETFs, closed-end funds, preferreds, and dividend champions [2] - The focus is on defensive stocks with a medium- to long-term investment horizon [2] Group 2: Market Appeal - High-quality real estate in desirable markets is attractive due to long-term value appreciation and cash flow potential [2] - The management of these assets is often seen as a drawback for many investors, highlighting the need for specialized investment services [2]