Urban Edge Properties (UE) Q1 2025 earnings summary

Executive summary

• FFO as adjusted increased 6% to $0.35 per share, marking the highest quarterly earnings, with net income rising to $8.4 million, driven by higher rental revenue and lower depreciation.

• Same property NOI grew 3.8% year-over-year, supported by new rents, improved recovery ratios, and strong collections.

• Leasing momentum continued with 42 leases signed for 434,000 sq ft, including 18 new leases at a 34% cash leasing spread and a 95% tenant retention ratio.

• Shop occupancy reached a record 92.4%, with consolidated portfolio leased occupancy at 96.4%.

• Portfolio comprised 70 shopping centers, two outlet centers, and two malls totaling 17.3 million sq. ft. with 91.1% occupancy as of March 31, 2025.

Financial highlights

• FFO as adjusted was $0.35 per share, up from $0.33, and FFO totaled $45.5 million, up from $39.1 million year-over-year.

• Net income attributable to common shareholders was $8.2 million ($0.07 per diluted share), up from $2.6 million ($0.02) in Q1 2024.

• Total revenue grew to $118.2 million from $109.6 million, mainly due to rent commencements and contractual increases.

• NOI was $71.6 million, up from $66.7 million; same-property NOI was $60.0 million, up from $57.9 million.

• Balance sheet liquidity stands at $800 million, including $98 million in cash.

Outlook and guidance

• 2025 FFO as adjusted guidance reiterated at $1.37–$1.42 per share, with net income guidance raised to $0.40–$0.45 per diluted share.

• Same property NOI growth, including redevelopment, expected at 3–4% for 2025.

• Guidance remains conservative due to economic volatility and would have increased by $0.02 per share absent recent uncertainty.

• Bad debt assumption unchanged at 75–100 basis points of gross rent.

• Management expects continued focus on development, redevelopment, and anchor repositioning projects, with $84.8 million in remaining funding commitments.