Urban Edge Properties Stock Earnings Reports

Urban Edge reported another strong quarter: Q3 same-property NOI rose 4.7% (5.4% YTD) and FFO as adjusted increased 4% YoY (7% YTD). Management closed a $39M acquisition of Brighton Mills (Boston), funded with proceeds from 1031 sales, positioning it as a covered land play with expected >3% annual NOI growth. The company has executed meaningful leasing activity (31 deals, 347k sq ft) with strong spreads — new leases averaged an outsized 61% spread (driven by HomeGoods and Ross) and renewals were ~9%. Development progress includes stabilization of projects at a blended 17% yield and an active redevelopment pipeline of $149M at a projected 15% yield; $21.5M of signed-not-open (SNO) pipeline represents ~7% of NOI. On the financing front, Urban Edge obtained a $123.6M 4-year nonrecourse mortgage at a 5.1% fixed rate, paid down its $90M line, and ended the quarter with >$900M liquidity (including $145M cash) and 100% nonrecourse fixed-rate mortgage debt. Net debt-to-annualized EBITDA was 5.6x. Given better-than-expected results, management raised 2025 FFO as adjusted guidance by $0.01 at the midpoint to $1.42–$1.44 (midpoint ~6% growth vs. 2024). Management emphasized continued demand from national retailers, disciplined capital recycling (nearly $600M acquisitions at ~7% cap vs. ~$500M dispositions at ~5% cap over 2 years), and a favorable supply/demand dynamic supporting shopping center fundamentals and further leasing upside.