Urban Edge Properties · NYSE:UE
Urban Edge Properties — Investor Presentation (November 2021)
46 slides from Urban Edge Properties's investor presentation, Nov 9, 2021
Slide 1: Investor Presentation November 2021
Investor Presentation November 2021
Slide 2: About Urban Edge
INVESTOR PRESENTATION NOVEMBER 2021 | 2 About Urban Edge Asset quality: our properties are anchored by high-performing essential retailers: ~60% of asset value anchored by grocers (~$900 psf in sales), 10% by Home Depot or Lowe’s, and 6% are industrial assets Demographics and geographic concentratio
Slide 3: Highlights
INVESTOR PRESENTATION NOVEMBER 2021 | 3 Highlights 1. Third quarter 2021 results: - FFO as Adjusted was $0.28/share, up 47% compared to 3Q20 - SP NOI including redevelopment increased by 26% vs. 3Q20, driven by lower bad debt expense - SP occupancy increased 80 bps to 92.8% from 2Q21, driven by anch
Slide 4: Highlights (continued)
INVESTOR PRESENTATION NOVEMBER 2021 | 4 Highlights (continued) (1) Average implied cap rates per Green Street and stock prices are as of November 8, 2021. NOTE: Balance sheet metrics as of September 30, 2021 . Market capitalization based on the share price as of market close, September 30, 2021. 5.
Slide 5: Urban Edge Team
INVESTOR PRESENTATION NOVEMBER 2021 | 5 Urban Edge Team Cecilia Li SVP, Chief Information Officer Leigh Lyons SVP, Leasing Sandi Danick SVP, Leasing Paul Schiffer SVP, Leasing Chad Bernstein SVP, Portfolio Management and Strategy Dan Reilly SVP, Property Accounting Rob Milton EVP & General Counsel J
Slide 6: Portfolio Concentrated in DC to Boston Corridor
INVESTOR PRESENTATION NOVEMBER 2021 | 6 Portfolio Concentrated in DC to Boston Corridor ■ less than 150 ■ 150 – 250 ■ 250 – 750 ■ 750 – 1500 ■ 1500 – 3000 ■ 3000 – 5000 ■ 5000 – 7500 ■ 7500 or more Persons Per Sq. Mile - ~90% of NOI generated from properties situated in the DC to Boston corridor - M
Slide 7: First-Ring Suburbs of NY Metro: Properties; ~80% of Total Value
INVESTOR PRESENTATION NOVEMBER 2021 | 7 First-Ring Suburbs of NY Metro: 44 Properties; ~80% of Total Value ■ less than 150 ■ 150 – 250 ■ 250 – 750 ■ 750 – 1500 ■ 1500 – 3000 ■ 3000 – 5000 ■ 5000 – 7500 ■ 7500 or more Persons Per Sq. Mile - Neighborhood shopping centers benefiting from desire for mor
Slide 8: Portfolio Has Favorable Supply/Demand Ratio
INVESTOR PRESENTATION NOVEMBER 2021 | 8 Portfolio Has Favorable Supply/Demand Ratio Source: Bank of America Global Research, June 2020 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 65 60 55 50 45 40 35 30 Households per square mile (DEMAND) R et ai l G LA p er H ou se h ol d (S U P P LY ) BRX AAT SI
Slide 9: Top Tenants by Annualized Base Rent
INVESTOR PRESENTATION NOVEMBER 2021 | 9 Top 25 Tenants by Annualized Base Rent Data as of September 30, 2021. (1) Source: S&P Global. Total Square Feet ABR % of Tenant S&P Rating(1) # of Stores in thousands in millions Total ABR The Home Depot, Inc. A 6 809 $15.7 6% The TJX Companies, Inc. A 22 715
Slide 10: Leasing
Leasing
Slide 11: Leasing
INVESTOR PRESENTATION NOVEMBER 2021 | 11 Leasing Adding essential tenants with quality grocers leading the way — one size doesn’t fit all as market factors drive demand ranging from discount brands to gourmet/specialty or ethnic in addition to national brands Elevating our food offerings with new co
Slide 12: Retailers Expanding
INVESTOR PRESENTATION NOVEMBER 2021 | 12 Retailers Expanding Operating ~1,000 stores with long-term target of 2,500+ Operating 792 stores with long-term goal to reach 2,000 stores Operating ~1,300 stores and is targeting 1,500 to 1,700 stores in the next few years Plans to open 260 new stores in 202
Slide 13: Anchor Leasing Update
INVESTOR PRESENTATION NOVEMBER 2021 | 13 Anchor Leasing Update Stabilization/ Annual Gross Property New Tenant/Prospect SF Status Rent ($M) Executed: Salem Fun City 39,000 4Q21 $0.5 Broomall Commons National Retailer 45,000 1Q22 1.2 Briarcliff Commons Uncle Giuseppe’s 38,000 1Q22 0.7 Huntington Comm
Slide 14: Leases Executed but not yet rent commenced
INVESTOR PRESENTATION NOVEMBER 2021 | 14 2021 2022 2023 2024 $18M $16M $14M $12M $9M $6M $3M $0 Year $8.3M $14.3M Leases Executed but not yet rent commenced Approximately $16M of future annual gross rent from leases executed, but not yet rent commenced will provide significant earnings growth over t
Slide 15: Development
Development _
Slide 16: Development Update
INVESTOR PRESENTATION NOVEMBER 2021 | 16 Development Update $152 million of active projects as of September 30, 2021: - 8% unlevered yield expected; $91 million remains to be funded - Lower risk projects - 87% of project GLA pertains to executed leases (excluding self-storage) - New grocer and indus
Slide 17: Huntington Commons | Huntington, NY
INVESTOR PRESENTATION NOVEMBER 2021 | 17 Huntington Commons | Huntington, NY Retenant former Kmart box with ShopRite, relocate Marshalls and upgrade façade, parking, and landscaping BEFORE AFTER
Slide 18: Huntington Commons | Huntington, NY
INVESTOR PRESENTATION NOVEMBER 2021 | 18 Huntington Commons | Huntington, NY Retenant former Kmart box with ShopRite, relocate Marshalls and upgrade façade, parking, and landscaping BEFORE AFTER
Slide 19: Huntington Commons | Huntington, NY
INVESTOR PRESENTATION NOVEMBER 2021 | 19 Huntington Commons | Huntington, NY 10 11 9 8 7 65 4 3 2 1 18 19 This exhibit shall not be deemed a warranty, representation or agreement by landlord that the layout or configuration of the shopping center, or any part thereof, shall remain as shown hereon. L
Slide 20: Broomall Commons | Broomall, PA
INVESTOR PRESENTATION NOVEMBER 2021 | 20 Broomall Commons | Broomall, PA Retenant former Giant Food with national retailers BEFORE AFTER
Slide 21: Broomall Commons | Broomall, PA
INVESTOR PRESENTATION NOVEMBER 2021 | 21 Broomall Commons | Broomall, PA Total SF 168,906 Parking Spaces 676 Parking Ratio 4 per 1,000 sf This exhibit shall not be deemed a warranty, representation or agreement by landlord that the layout or configuration of the shopping center, or any part thereof,
Slide 22: Lodi | Lodi, NJ
INVESTOR PRESENTATION NOVEMBER 2021 | 22 Lodi | Lodi, NJ Convert former National Wholesale Liquidators to a hybrid industrial and retail facility for AAA Wholesale and add a restaurant pad AFTER BEFORE
Slide 23: Las Catalinas | Caguas, PR
INVESTOR PRESENTATION NOVEMBER 2021 | 23 Las Catalinas | Caguas, PR Retenant former Kmart box with Sector Sixty6 BEFORE AFTER
Slide 24: Briarcliff Commons | Morris Plains, NJ
INVESTOR PRESENTATION NOVEMBER 2021 | 24 Briarcliff Commons | Morris Plains, NJ July 31, 2020Briarcliff Commons - Morris Plains, NJ Before South Elevation Newly redeveloped center adding Uncle Giuseppe’s (filling 40k sf vacancy) BEFORE AFTER
Slide 25: Briarcliff Commons | Morris Plains, NJ
INVESTOR PRESENTATION NOVEMBER 2021 | 25 FUTURE RETAIL 3,250 SF Briarcliff Commons | Morris Plains, NJ Total SF 178,698 Parking Spaces 891 Acres 27.30 Available Occupied This exhibit shall not be deemed a warranty, representation or agreement by landlord that the layout or configuration of the shopp
Slide 26: Development Pipeline
INVESTOR PRESENTATION NOVEMBER 2021 | 26 Development Pipeline Largest pipeline projects are advancing: Bergen Town Center Redevelop and renovate mall asset with focus on tenant mix, common areas and exterior facing enhancements; identify opportunities for additional uses such as residential and offi
Slide 27: Bergen Town Center: Development Plans
INVESTOR PRESENTATION NOVEMBER 2021 | 27 02.01.21 Bergen Town Center: Development Plans Full Build: Mall Level: Base Spring Valley Ave New Jersey State Highway Route 4 Fo re st A ve Fo re st A ve Spring Valley Rd Spring Valley Ave Legend RestaurantsRetail Entertainment Health & WellnessAnchor Vertic
Slide 28: Yonkers Gateway Center | Yonkers, NY
INVESTOR PRESENTATION NOVEMBER 2021 | 28 Yonkers Gateway Center | Yonkers, NY Redevelop, renovate and re-tenant center including consideration of alternate uses
Slide 29: Bruckner Commons | Bronx, NY
INVESTOR PRESENTATION NOVEMBER 2021 | 29 Bruckner Commons | Bronx, NY Redevelop or reposition center including consideration of alternate uses
Slide 30: Bruckner Commons | Bronx, NY
INVESTOR PRESENTATION NOVEMBER 2021 | 30 Bruckner Commons | Bronx, NY Redevelop or reposition center including consideration of alternate uses
Slide 31: Hudson Mall | Jersey City, NJ
INVESTOR PRESENTATION NOVEMBER 2021 | 31 Hudson Mall | Jersey City, NJ Reposition mall with redevelopment and renovation opportunities including retail and amenity upgrades and consideration of alternate uses
Slide 32: Hudson Mall | Jersey City, NJ
INVESTOR PRESENTATION NOVEMBER 2021 | 32 Hudson Mall | Jersey City, NJ Reposition mall with redevelopment and renovation opportunities including retail and amenity upgrades and consideration of alternate uses
Slide 33: Hudson Mall | Jersey City, NJ
INVESTOR PRESENTATION NOVEMBER 2021 | 33 Hudson Mall | Jersey City, NJ CLENDENNY AVENUE NEW JERSEY STATE HIGHWAY ROUTE 40 83 82 18 89 1 10 5 1A 49 47 52 2019 21 22 24 26 29 3331 27 Available Occupied De-malling interior space; adding a mix of retailers and industrial or self-storage uses Total SF 61
Slide 34: Sunrise Mall | Massapequa, NY
INVESTOR PRESENTATION NOVEMBER 2021 | 34 Sunrise Mall | Massapequa, NY Redevelop mall including consideration of alternate uses
Slide 35: Acquisition/Disposition Strategy
Acquisition/Disposition Strategy
Slide 36: Acquisition/Disposition Strategy
INVESTOR PRESENTATION NOVEMBER 2021 | 36 Acquisition/Disposition Strategy Opportunistically target value-add assets - Assets with attractive yield and/or potential for value creation through leasing, redevelopment and repurposing - Focus on larger-scale properties, distressed/motivated sellers and s
Slide 37: Recent Investment Activity
INVESTOR PRESENTATION NOVEMBER 2021 | 37 Recent Investment Activity $55 million of acquisitions year-to-date - Two industrial assets adjacent to our existing 1 million sf industrial park located in East Hanover, NJ - Combination of in-place yield and lease up opportunity - Generate attractive cash f
Slide 38: Financial Strength
Financial Strength
Slide 39: Liquidity and Balance Sheet
INVESTOR PRESENTATION NOVEMBER 2021 | 39 $0 $100 $200 $300 $400 2.1% 3.7% 3.1% 4.2% 4.2% 4.3% 4.4% 4.2% 4.7%Weighted avg. rate at maturity 2021 2022 2023 2024 2025 2026 2027 2028 2029 Thereafter $0 $81 $329 $144 $23 $218 $260 $265 $38 $101 Liquidity and Balance Sheet Total liquidity of nearly $1 bil
Slide 40: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG)
Slide 41: Our Commitment
INVESTOR PRESENTATION NOVEMBER 2021 | 41 Our Commitment - We are committed to maintaining sustainable operations and believe that our long-term sustainability goals will provide positive financial and environmental outcomes for shareholders, tenants, employees and the communities in which we invest
Slide 42: 2021 ESG Focus Areas
INVESTOR PRESENTATION NOVEMBER 2021 | 42 2021 ESG Focus Areas We performed a gap analysis based on our first GRESB submission to identify the biggest opportunities to improve our oversight and management of ESG performance Environmental, Social and Governance (ESG) (continued) Increasing data covera
Slide 43: Forward Looking Statements
INVESTOR PRESENTATION NOVEMBER 2021 | 43 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 future results, financial cond
Slide 44: Non-GAAP Financial Measures & Operating Metrics
INVESTOR PRESENTATION NOVEMBER 2021 | 44 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 operatio
Slide 45: Non-GAAP Financial Measures & Operating Metrics (continued)
INVESTOR PRESENTATION NOVEMBER 2021 | 45 Non-GAAP Financial Measures & Operating Metrics (continued) • Same-property Cash NOI: The Company provides disclosure of cash NOI on a same-property basis, which includes the results of properties that were owned and operated for the entirety of the reporting
Slide 46: Corporate Office
CORPORATE NEW YORK 888 SEVENTH AVENUE, 6TH FLOOR NEW YORK, NY 10019 212-956-2556
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