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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.
Revenue by Segment
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.
Revenue & Expenses
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Avg. Return Before/After Earnings
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