Urban Edge Properties (UE) Q4 2023 earnings summary

Executive summary

• 2023 FFO as Adjusted rose 3.3% per diluted share; Q4 leasing, financing and capital recycling supported a strong year-end finish.

• Simplified the portfolio by selling the warehouse portfolio and acquiring two Boston-area shopping centers; retailer demand and limited new supply supported rental-rate growth.

Financial highlights

• Q4 revenue was $116.6M vs. $101.6M YoY; net income attributable to common shareholders was $221.2M, or $1.88 per diluted share, vs. $13.7M and $0.12.

• FY revenue was $416.9M vs. $397.9M; net income attributable to common shareholders was $248.5M, or $2.11 per diluted share, vs. $46.2M and $0.39.

• FY FFO was $184.4M, or $1.51 per diluted share, vs. $145.2M and $1.19; FFO as Adjusted was $153.1M, or $1.25, vs. $148.5M and $1.21.

• Q4 FFO was $45.7M, or $0.37 per diluted share, vs. $38.8M and $0.32; FFO as Adjusted was $37.9M, or $0.31, vs. $40.6M and $0.33.

Outlook and guidance

• 2024 guidance: net income $0.12–$0.17, FFO $1.20–$1.25 and FFO as Adjusted $1.24–$1.29 per diluted share.

• Assumptions include same-property NOI growth, including redevelopment, of 3%–5%; $34M acquisitions; dispositions of $8M–$40M; recurring G&A of $35.5M–$37.5M; and interest and debt expense of $83M–$85M.

• 2024 guidance excludes items affecting FFO comparability, including debt-extinguishment gains or losses, transaction, severance and litigation costs, and other one-time items outside ordinary business.