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Sep 30
Urban Edge Q3 2025 Earnings Report
Urban Edge Properties reported strong third-quarter 2025 results, driven by rent commencements on new leases, higher net recovery revenue, and growth from 2024 acquisitions.
Key Takeaways
Urban Edge Properties delivered a strong third quarter in 2025, with significant leasing activity and a 21% cash spread on new leases. The company also expanded its footprint in the Boston area with a strategic acquisition and raised its full-year 2025 FFO as Adjusted guidance, reflecting expected annual growth of 6% over the previous year.
Net income attributable to common shareholders increased to $14.9 million in Q3 2025 from $9.1 million in Q3 2024.
The company executed over 340,000 square feet of leasing transactions, generating a cash spread of 21% on new leases, renewals, and options on a same-space basis.
Urban Edge acquired Brighton Mills Shopping Center for $39 million, expanding its presence in the Boston market.
Full-year 2025 FFO as Adjusted guidance was raised by $0.01 per share at the mid-point, indicating expected annual growth of 6%.
Urban Edge
Urban Edge
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CapyFin.com Forward Guidance
Urban Edge Properties has raised its full-year 2025 guidance for net income and FFO, and updated its range for FFO as Adjusted, reflecting strong performance and positive outlook.
Positive Outlook
- Mid-point guidance for FFO as Adjusted increased by $0.01 per share, implying 6% annual growth.
- Same-property NOI growth, including redevelopment, is projected to be 5.0% to 5.5%, an increase from previous assumptions.
- Acquisitions of $39 million and dispositions of $66 million reflect strategic capital recycling efforts.
- Recurring G&A expenses are expected to decrease on the high end, from $34.5-$35.5 million to $34.5-$35.0 million.
- Interest and debt expense is projected to decrease on the high end, from $78.5-$80.5 million to $78.5-$79.5 million.
Challenges Ahead
- Guidance excludes items that impact FFO comparability, such as gains/losses on extinguishment of debt, transaction, severance, litigation, and other one-time items.
- The company's projections are subject to numerous assumptions, risks, and uncertainties, and actual results may differ materially.
- Macroeconomic conditions, including geopolitical instability, inflation, and supply chain disruptions, could adversely impact results.
- The loss or bankruptcy of major tenants could negatively affect revenues.
- Increases in borrowing costs due to changes in interest rates and inflation could impact financial performance.