The following is a summary of the Urban Edge Properties (UE) Q1 2024 Earnings Call Transcript:
Financial Performance:
Urban Edge Properties reported Q1 2024 FFO as adjusted of $0.33 per share, a 4.4% increase compared to prior year, largely driven by a 3.7% growth in Net Operating Income.
The company increased its 2024 FFO as adjusted guidance by $0.03 per share to $1.30, implying a 4% growth for the year.
Urban Edge expects its 2025 FFO as adjusted to near the higher end of the $1.31 to $1.39 range, implying 5% to 6% earnings growth.Same property occupancy was up 140 basis points over last year with leasing spreads on new leases and renewals at 23% and 10% respectively.
Leasing activity remains robust with a $27 million or 10% of net operating income in their signed but not yet open pipeline.
Business Progress:
The company acquired two shopping centers for $117 million at an 8% cap rate, financed through a mix of mortgage debt, asset sales, and equity.
Urban Edge has a $166 million redevelopment pipeline expected to yield a 15% return, with over 90% of retail space already pre-leased.
The company has completed almost $500 million of fixed-rate refinancements in the past year, bringing total debt maturing till 2026 down to 11%.
Urban Edge's unencumbered asset pool increased by $400 million to $1.5 billion in a year, which significantly strengthens their liquidity and financial health.
The company aims for higher occupancy and is replacing less profitable tenants with more lucrative businesses.
The company predicts to be at the high end of their '25 FFO guidance due to improved retail fundamentals, accretive capital recycling, and predictable interest expense with about $500 million of refinancing completed.
More details: Urban Edge Properties IR
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