Urban Edge Properties · NYSE:UE
Urban Edge Properties — Nareit June 2020
36 slides from Urban Edge Properties's conference presentation, Jun 2, 2020
Slide 1: Nareit June 2020
NAREIT I JUNE 2020
Slide 2: Forward Looking Statements
Forward Looking Statements Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our actual future results, financial condition and business may differ mater
Slide 3: Highlights
Highlights 1. Leasing activity is surprisingly robust with over 1 million sf of activity underway. Active discussions include: • Grocers at Huntington, Morris Plains, Hudson Mall, Yonkers, East Brunswick and Montehiedra • Discounters and off-price retailers at Hudson Mall, Woodbridge and Wilkes-Barr
Slide 4: Urban Edge Team
Urban Edge Team Chris Weilminster Mark Langer Herb Eilberg Jeff Olson EVP, Chief Operating Officer EVP, Chief Financial Officer Chief Investment Officer Chairman and Chief Executive Officer Rob Milton Jen Holmes Scott Auster Bob DiVita Judy Knop Ehud Kupperman EVP & General Counsel Chief Accounting
Slide 5: High-Quality, Irreplaceable Portfolio
High-Quality, Irreplaceable Portfolio • Concentrated in first-ring suburbs within the NY metropolitan area, the most densely-populated, supply-constrained market in the country - Average of 240,000 people living within a 3-mile radius - Northern New Jersey, our largest market, is one of the most supp
Slide 6: Portfolio Concentrated in DC to Boston Corridor
Portfolio Concentrated in DC to Boston Corridor PERSONS PER SQ. MILE (2017) less than 150 150 – 250 250 – 750 750 – 1500 1500 – 3000 3000 – 5000 5000 – 7500 7500 or more • 63 of the company’s 74 properties are situated in the DC to Boston corridor, representing ~90% of Net Operating Income (NOI) • M
Slide 7: First-Ring Suburbs of NY Metro: ~80% of Total Value
First-Ring Suburbs of NY Metro: 46 Properties, ~80% of Total Value PERSONS PER SQ. MILE (2017) • Many national discounters and leading grocers less than 150 150 – 250 are expanding in the NY metropolitan area 250 – 750 • Supply constraints and population density make 750 – 1500 1500 – 3000 it diffic
Slide 8: Portfolio Composition
Portfolio Composition Flagship Value-Add Core Non-Core Total Number of Assets 425202574 Gross Leasable Area 2.9M sf 5.7M sf 4.2M sf 2.3M sf 15.1M sf Estimated Gross Value (pre-COVID) $1.3B $1.6B $1.0B $0.2B $4.1B Occupancy Rate 93% 87% 98% 98% 93% Weighted Average Retail Base Rent PSF(1) $26 $22 $16
Slide 9: UE's Portfolio Has The Most Favorable Supply/Demand Ratio
UE’s Portfolio Has The Most Favorable Supply/Demand Ratio 55 50 BRX SITC AAT 45 RPAI WRI KIM 40 REG (SUPPLY) 35 FRT Retail GLA per Household Household per GLA Retail ROIC UE 30 25 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 Households per square mile (DEMAND) Source: Bank of America Merrill Lynch,
Slide 10: Top Tenants by Annualized Base Rent
Top 25 Tenants by Annualized Base Rent Total Square Feet ABR Tenant in thousands in millions % of Total ABR The Home Depot, Inc. 809 14.8 6% The TJX Companies, Inc. 688 13.8 5% Lowe’s Companies, Inc. 976 8.6 3% Best Buy Co, Inc. 359 7.8 3% Wal-Mart Stores, Inc. 727 7.7 3% Burlington Stores, Inc. 416
Slide 11: Portfolio Composition By Tenant Category
Portfolio Composition By Tenant Category As of March 31, 2020, our portfolio composition is well diversified, approximately 42% of tenants providing essential goods or services as measured by ABR. Essential businesses are tenants that supply or provide consumers with basic necessity goods or services
Slide 12: Limited Exposure to Small Local Tenants
Limited Exposure to Small Local Tenants Small Shop Small Shop Composition by Tenant Type(1) by Tenant Category(1) Other Essential Consumer Banks Businesses(2) Electronics 7% 5% Puerto Rico and 16% Cellular 7% Medical Office Dollar Stores and 6% Discounters Health, Beauty, Salons, 3% Furnishings and
Slide 13: Leasing
LEASING
Slide 14: Leasing Update
Leasing Update • We are focused on advancing anchor lease-up opportunities and executing new leases with a variety of tenants • We are executing leases with vibrant retailers including ShopRite and Burlington • New anchor tenants are expected to significantly increase traffic, drive better shop tenan
Slide 15: Anchor Lease-Up Projections
Anchor Lease-Up Projections Annual Estimated Prior New Tenant/ Status Property Gross Rent Stabilization Tenant Prospect Open Amherst Commons, $2M 3Q19 West Branch Commons Executed Salem, $3M 2Q21; 4Q22 Huntington Commons, Plaza at Woodbridge Negotiating Briarcliff Commons, $8M 3Q21–2Q23 Las Catalina
Slide 16: Development
DEVELOPMENT
Slide 17: Development Update
Development Update • As of March 31, 2020, we have $52.8 million of active redevelopment projects underway, of which $16 million remains to be funded. These projects are expected to generate an 8% unleveraged yield - The largest projects include Kearny Commons (22K sf retail expansion), Tonnelle Com
Slide 18: Hudson Mall, Jersey City, NJ
Hudson Mall Jersey City, NJ 18
Slide 19: Hudson Mall: Current and Future
Hudson Mall Hudson Mall Jersey City, NJ Jersey City, NJ Current Future 19
Slide 20: Briarcliff Commons, Morris Plains, NJ
Briarcliff Commons Morris Plains, NJ 20
Slide 21: Briarcliff Commons: New Front Door Grocery
Briarcliff Commons Morris Plains, NJ New Front Door Grocery New Outdoor Dining 21
Slide 22: Briarcliff Commons, Morris Plains, NJ
Briarcliff Commons Morris Plains, NJ 22
Slide 23: Huntington Commons, Huntington, NY
Huntington Commons Huntington, NY 23
Slide 24: Huntington Commons, Huntington, NY
Huntington Commons Huntington, NY 24
Slide 25: Acquisitions and Dispositions
ACQUISITIONS AND DISPOSITIONS
Slide 26: Acquisitions and Dispositions Since 2015
Acquisitions and Dispositions Since 2015 PERSONS PER SQ. MILE (2017) less than 150 150 – 250 250 – 750 750 – 1500 1500 – 3000 3000 – 5000 5000 – 7500 7500 or more SYMBOL KEY Acquisitions Dispositions Acquisitions Dispositions Assets 21 17 Value $693M $273M Markets New York / Boston Secondary ABR $25
Slide 27: Financial Outlook
<<>> = FINANCIAL OUTLOOK
Slide 28: Significant Liquidity and Well-Laddered Debt Maturities
Significant Liquidity and Well-Laddered Debt Maturities • We have significant liquidity and flexibility to navigate the evolving market environment • Total liquidity of approximately $1 billion, comprising $643 million of cash on hand and $350 million available under our revolving credit agreement • 46
Slide 29: COVID-19 Business Update
COVID-19 BUSINESS UPDATE
Slide 30: Rent Collections Update
Rent Collections Update We have collected approximately 63% of April base rents and monthly tenant expense reimbursements and 58% for May (as of June 1, 2020) April collections and the status of tenants open for business by property type were as follows: % of GLA % Open By ABR % April Rent Collected
Slide 31: Actively Engaged in Tenant Recovery Efforts
Actively Engaged in Tenant Recovery Efforts • Launched tenant resource page on our website to enable easy access to: SBA and other governmental loan and grant programs, re-opening planning guidance from regulatory and retail trade organizations and new signage packages that can be downloaded by tena
Slide 32: Supporting Our Communities
Supporting Our Communities In response to the COVID-19 pandemic, Urban Edge has been working closely with local municipal leaders to address immediate needs of those living in the neighborhoods served by our properties. Our focus has been to utilize our assets and skillsets in partnership with other
Slide 33: Summary
Summary • Robust leasing activity pipeline with over 1 million sf of activity underway • Balance sheet is one of the best in the shopping center sector, significant liquidity and no corporate debt other than line of credit - $1 billion in liquidity ($0.6B in cash and $0.4B available on line of credit
Slide 34: Non-GAAP Financial Measures & Operating Metrics
Non-GAAP Financial Measures & Operating Metrics Non-GAAP Financial Measures The Company uses certain non-GAAP performance measures, in addition to the primary GAAP presentations, as we believe these measures improve the understanding of the Company’s operational results. We continually evaluate the
Slide 35: Non-GAAP Financial Measures & Operating Metrics (cont)
Non-GAAP Financial Measures & Operating Metrics (cont) • EBITDAre and Adjusted EBITDAre: Earnings Before Interest, Tax, Depreciation and Amoritization (EBITDAre) and Adjusted EBITDAre are supplemental, non-GAAP measures utilized by us in various financial ratios. The White Paper on EBITDAre, approved
Slide 36: Seventh Avenue New York, NY 10019 212.956.2556
888 Seventh Avenue New York, NY 10019 212.956.2556