Urban Edge Properties (UE) Q4 2024 earnings summary

Executive summary

• Achieved 8% year-over-year growth in FFO as adjusted to $1.35 per share, surpassing the three-year earnings target a year early, driven by strong leasing and capital recycling.

• Board raised quarterly dividend by 12% to $0.19 per share, annualized to $0.76, reflecting higher earnings and taxable income.

• Record leasing activity with 79 new leases totaling 485,000 sq ft and a same-space cash rent spread of 26%.

• Portfolio now 80% grocery-anchored, with grocers averaging $900 per sq ft in sales, and shop occupancy at a record 91%.

• Accretive acquisitions and increased occupancy contributed to growth.

Financial highlights

• FFO as adjusted for Q4 was $0.34 per share; full-year FFO as adjusted was $1.35 per share, up 8% year-over-year.

• FY 2024 net income attributable to common shareholders was $72.6M ($0.60/share), down from $248.5M ($2.11/share) in 2023 due to a large prior-year gain on asset sales.

• Same property NOI growth, including redevelopment, rose 7.4% in Q4 2024 compared to Q4 2023; full-year growth was 5.1%.

• Consolidated portfolio leased occupancy reached 96.8%, up 90 basis points year-over-year.

• Balance sheet liquidity exceeded $800 million, including $91 million in cash.

Outlook and guidance

• 2025 FFO as adjusted per share guidance is $1.37–$1.42, with same property NOI growth targeted at 3.5%.

• 2025 net income guidance is $0.32–$0.37 per share; recurring G&A expenses expected at $35–37 million.

• Expecting $8 million in gross rent from the signed but not open pipeline in 2025, with 75% of revenue recognized in the second half.

• No acquisitions or dispositions included in guidance, but active pursuit of capital recycling opportunities.

• Excludes one-time items from FFO comparability.