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Jun 30, 2023
Urban Edge Q2 2023 Earnings Report
Reported strong second quarter results and raised outlook for full-year FFO as adjusted.
Key Takeaways
Urban Edge Properties reported strong second quarter results, with progress towards a targeted FFO of $1.35 per share in 2025. Leases representing $6 million of expected annual gross rent were commenced during the quarter. The company has a signed pipeline of executed leases that are expected to generate an additional $28 million in annual gross rent.
Reported same-property portfolio leased occupancy of 95.5%, an increase of 170 basis points compared to June 30, 2022 and an increase of 10 basis points compared to March 31, 2023.
Reported consolidated portfolio leased occupancy, excluding Sunrise Mall, of 94.7%, an increase of 280 basis points compared to June 30, 2022 and an increase of 10 basis points compared to March 31, 2023.
Executed 35 new leases, renewals and options totaling 362,000 sf during the quarter. Same-space leases totaled 355,000 sf and generated an average rent spread of 6.8% on a cash basis.
Issued 2022 Environmental, Social and Governance report, highlighting progress on ESG initiatives including the completion of first materiality assessment.
Urban Edge
Urban Edge
Forward Guidance
The Company has updated its 2023 full-year guidance ranges, estimating FFO of $1.13 to $1.16 per diluted share, and FFO as Adjusted of $1.16 to $1.19 per diluted share.
Positive Outlook
- Same-property NOI growth, including properties in redevelopment, of 1.0% to 3.0%.
- Same-property NOI growth, including properties in redevelopment, adjusted for the collection of amounts previously deemed uncollectible of 2.5% to 4.5%.
- No new acquisitions or dispositions.
- Recurring G&A expenses ranging from $34.5 million to $36.5 million.
- Interest and debt expense ranging from $71.0 million to $72.5 million.
Challenges Ahead
- 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.
- 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.
- Rising inflation
- Discontinuation of USD LIBOR, which was replaced by SOFR after June 30, 2023