Loading...
•
Mar 31, 2024
Urban Edge Q1 2024 Earnings Report
Reported exceeding plan and delivering FFO as Adjusted, acquired two shopping centers in New Jersey, and raised outlook for full-year 2024 FFO as Adjusted.
Key Takeaways
Urban Edge Properties reported a strong start to 2024, with FFO as Adjusted exceeding expectations. The company acquired two shopping centers in New Jersey for $117 million and increased its 2024 FFO as Adjusted guidance by $0.03 per share to $1.30 per share.
FFO as Adjusted was $0.33 per share, exceeding plan due to higher NOI growth.
Acquired Heritage Square and Ledgewood Commons in New Jersey for $117 million at an approximate capitalization rate of 8%.
Same-property portfolio leased occupancy increased to 96.2%, up 140 basis points compared to March 31, 2023.
Increased retail shop leased occupancy to 88.4%, up 340 basis points compared to March 31, 2023.
Urban Edge
Urban Edge
Urban Edge Revenue by Segment
Revenue by Segment
Rental Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
The Company has updated its 2024 full-year outlook, estimating net income of $0.12 to $0.17 per diluted share, FFO of $1.22 to $1.27 per diluted share, and FFO as Adjusted of $1.27 to $1.32 per diluted share.
Positive Outlook
- Same-property NOI growth, including properties in redevelopment, of 4.0% to 6.0%, an increase from our previous assumption of 3.0% to 5.0%.
- Acquisitions of $117 million and dispositions of $37 million, both reflecting activity completed year-to-date.
- Recurring G&A expenses ranging from $35.5 million to $37.5 million, remaining unchanged from our previous assumption.
- Excludes items that impact FFO comparability, including gains and/or losses on extinguishment of debt, transaction, severance, litigation, or any one-time items outside of the ordinary course of business.
- Net income per diluted share $0.12 - $0.17
Challenges Ahead
- Interest and debt expense ranging from $86 million to $88.5 million, an increase from our previous assumption of $83 million to $85 million.
- The Company's projections are based on management’s current beliefs and assumptions about the Company's business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections.
- There can be no assurance that our actual results will not differ from the guidance set forth above.
- Macroeconomic conditions, including geopolitical conditions and instability, which may lead to rising inflation and disruption of, or lack of access to, the capital markets, as well as potential volatility in the Company’s share price.
- Increases in the Company’s borrowing costs as a result of changes in interest rates, rising inflation, and other factors
Revenue & Expenses
Visualization of income flow from segment revenue to net income