Urban Edge Properties · NYSE:UE
Urban Edge Properties — Investor Presentation (September 2020)
40 slides from Urban Edge Properties's investor presentation, Sep 10, 2020
Slide 1: Investor Presentation September 2020
INVESTOR PRESENTATION SEPTEMBER 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 strong with over 1 million sf of activity underway: • Grocers - executed leases with ShopRite at Huntington and Uncle Giuseppe’s at Briarcliff Commons; discussions underway at Hudson Mall, Yonkers, East Brunswick, Broomall, Inwood, Manalapan and Montehiedra • Discou
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: Properties, ~80% of Total Value
First-Ring Suburbs of NY Metro: 46 Properties, ~80% of Total Value • Migration from NYC due to COVID-19 expected PERSONS PER SQ. MILE (2017) to benefit first-ring suburbs less than 150 • Many national discounters and leading grocers 150 – 250 are expanding in the NY metropolitan area 250 – 750 750 – 1
Slide 8: 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 9: 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. 41
Slide 10: Favorable Exposure to COVID-Sensitive Tenants
Favorable Exposure to COVID-Sensitive Tenants We generate a smaller percentage of rents from tenant categories deemed most at-risk from COVID-19 disruption. Estimated Rent Exposure to COVID-Sensitive Tenants 50% 40% 30% 20% 10% 0% ROIC WRI RPAI REG BRX KIM FRT AKR SITC UE Source: Per Green Street Ad
Slide 11: Portfolio Composition By Tenant Category
Portfolio Composition By Tenant Category As of June 30, 2020, our portfolio composition is well diversified, approximately 43% 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: Leasing
LEASING
Slide 13: 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, Uncle Giuseppe’s and Burlington • New anchor tenants are expected to significantly increase traffic, drive
Slide 14: 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 Briarcliff Commons, Salem, $4M 2Q21-4Q22 Huntington Commons, Plaza at Woodbridge Negotiating Las Catalinas Mall, $7M 2Q2
Slide 15: Lid
Lu = o oe) =! Lid S Lu ty
Slide 16: Development Update
Development Update • As of June 30, 2020, we had $95 million of active redevelopment projects underway, of which $56 million remains to be funded. These projects are expected to generate an 8% unleveraged yield - The largest projects include Huntington Commons (64K sf anchor lease with ShopRite), Ke
Slide 17: Briarcliff Commons Morris Plains, NJ
Briarcliff Commons Morris Plains, NJ 17
Slide 18: Briarcliff Commons Morris Plains, NJ
Briarcliff Commons Morris Plains, NJ 18
Slide 19: Huntington Commons Huntington, NY
Huntington Commons Huntington, NY 19
Slide 20: Huntington Commons Huntington, NY
Huntington Commons Huntington, NY 20
Slide 21: Huntington Commons Huntington, NY
Huntington Commons Huntington, NY 21
Slide 22: Hudson Mall Jersey City, NJ
Hudson Mall Jersey City, NJ 22
Slide 23: Hudson Mall Jersey City, NJ: Current and Future
Hudson Mall Hudson Mall Jersey City, NJ Jersey City, NJ Current Future 23
Slide 24: Bergen Town Center Paramus, NJ
Bergen Town Center Paramus, NJ 24
Slide 25: Bergen Town Center Paramus, NJ
Bergen Town Center Paramus, NJ 4 ute Ro way igh te H Sta sey Jer NNewew Jersey State Highway Route 4 S p r i n g e LLegendegend v Anchor Vertical Core V A a t Retail Education l l s e e Restaurants Office y r R o Entertainment Hotel Forest Ave F Forest d Health & Wellness Residential SSpringpring VV
Slide 26: Yonkers Gateway Center Yonkers, NY
Yonkers Gateway Center Yonkers, NY 26
Slide 27: Bruckner Commons Bronx, NY
Bruckner Commons Bronx, NY 27
Slide 28: Acquisitions and Dispositions
ACQUISITIONS AND DISPOSITIONS
Slide 29: 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 30: Financial Outlook
Ss ~ FINANCIAL OUTLOOK
Slide 31: 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 $640 million of cash on hand and $350 million available under our revolving credit agreement • 46
Slide 32: COVID-19 Business Update
COVID-19 BUSINESS UPDATE
Slide 33: Rent Collections Update
Rent Collections Update We have collected approximately 73% of second quarter base rents and monthly tenant expense reimbursements, 80% for July and 79% for August (as of September 8, 2020) Collections and the status of tenants open for business by property type were as follows: % Open % Open % Apri
Slide 34: 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% 3% Puerto Rico and 16% Cellular 7% Medical Office Dollar Stores and 6% Discounters Health, Beauty, Salons, 3% Furnishings and
Slide 35: 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 36: 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 37: 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 38: 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 39: 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 40: Seventh Avenue New York, NY 10019 212.956.2556
888 Seventh Avenue New York, NY 10019 212.956.2556
Urban Edge Properties — Investor Presentation (September 2020) on 6ix