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Sep 30, 2024
Urban Edge Q3 2024 Earnings Report
Reported strong third quarter results driven by strategic plan execution and portfolio growth.
Key Takeaways
Urban Edge Properties reported a decrease in net income and FFO compared to the prior year, primarily due to a gain on debt extinguishment in 2023. However, FFO as Adjusted increased by 9% per diluted share, driven by new leases and acquisitions. The company also raised its full-year 2024 FFO as Adjusted guidance by $0.03 per share at the midpoint and anticipates reaching the high end of its 2025 FFO target.
Achieved same-property portfolio leased occupancy of 96.3%, up 200 basis points year-over-year.
Increased retail shop leased occupancy to 90.4%, up 500 basis points year-over-year.
Executed 45 new leases, renewals and options totaling 683,000 sf during the quarter.
Acquired The Village at Waugh Chapel for $126 million and sold a Home Depot property in Union, New Jersey for $71 million.
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 guidance ranges for net income, FFO and FFO as Adjusted, estimating net income of $0.35 to $0.38 per diluted share, FFO of $1.44 to $1.47 per diluted share, and FFO as Adjusted of $1.32 to $1.35 per diluted share, up from its previous guidance ranges of net income of $0.28 to $0.31 per diluted share, FFO of $1.42 to $1.45 per diluted share, and FFO as Adjusted of $1.29 to $1.32 per diluted share.
Positive Outlook
- Same-property NOI growth, including properties in redevelopment, of 4.75% to 6.00%, reflecting an increase on the low end from our previous assumption of 4.50% to 6.00%.
- Recurring G&A expenses ranging from $35.5 million to $36.5 million, a decrease on the high end from our previous assumption of $35.5 million to $37.0 million.
- Interest and debt expense ranging from $82.0 million to $84.0 million, a decrease from our previous assumption of $83.0 million to $86.0 million, reflecting updated financing transactions.
- Net income per diluted share between $0.35 and $0.38
- FFO per diluted share between $1.44 and $1.47
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.
- Acquisitions of $243 million and dispositions of $109 million, both reflecting activity completed year-to-date.
- There can be no assurance that our actual results will not differ from the guidance set forth above.
- The Company assumes no obligation to update publicly any forward-looking statements, including its 2024 earnings guidance, whether as a result of new information, future events or otherwise.
- There are known and unknown risks and uncertainties associated with these projections.
Revenue & Expenses
Visualization of income flow from segment revenue to net income