Urban Edge Properties (UE) Q3 2024 earnings summary

Executive summary

• Achieved 9% FFO per share growth year-over-year for Q3 2024, driven by strong leasing, redevelopment, and accretive capital recycling.

• Net income for Q3 2024 was $9.5M, down from $37.5M in Q3 2023, with total revenue rising to $112.4M, up $10.6M year-over-year due to acquisitions and rent increases.

• Acquired The Village at Waugh Chapel for $126M and sold a Home Depot property for $71M, continuing portfolio optimization.

• Increased 2024 FFO as Adjusted guidance to $1.32–$1.35 per share, reflecting 7% expected FFO growth for the year.

• Leasing activity robust, with 45 deals signed in Q3, including 23 new leases at a 15% cash spread and 22 renewals at an 8% spread.

Financial highlights

• Q3 2024 FFO as Adjusted was $44.7M ($0.35 per share), up 9% per share year-over-year.

• Same-property NOI growth was 4.8% for Q3 2024 and 5.1% including redevelopment; YTD 2024 same-property NOI growth was 3.6%.

• Lease termination income and non-cash revenue added $0.02 per share in the quarter.

• Net debt to EBITDA reduced to 5.8x, below the 6.5x target.

• Q3 2024 total revenue: $112.4M; Q3 2024 EPS: $0.07.

Outlook and guidance

• 2024 FFO as Adjusted guidance raised to $1.32–$1.35 per share, with 7% expected FFO growth.

• Q4 FFO expected at $0.33 per share midpoint; same-property NOI growth guidance midpoint increased to 5.4% for 2024.

• 2025 FFO as Adjusted target reaffirmed at $1.31–$1.39 per share, expecting to reach the high end.

• SNO pipeline for 2025 expected to add $10M gross revenue, with most realized in the second half.

• Management remains committed to REIT status and regular dividend payments, with a quarterly dividend of $0.17 per share/unit declared for Q3 2024.