Urban Edge Properties · NYSE:UE
Urban Edge Properties — Investor Presentation (June 2021)
44 slides from Urban Edge Properties's investor presentation, Jun 8, 2021
Slide 1: Investor Presentation June 2021
Investor Presentation June 2021
Slide 2: About Urban Edge
INVESTOR PRESENTATION JUNE 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 5% are industrial assets Demographics and geographic concentration: l
Slide 3: Highlights
INVESTOR PRESENTATION JUNE 2021 | 3 Highlights 1. COVID-19 lookback - We capitalized on the dislocation by: (1) repurchasing $54 million of stock at $9/share as compared to our current price of ~$20/share, (2) effectively eliminated $92 million of mortgage debt on two refinancing transactions in Pue
Slide 4: Highlights (continued): Acquisitions, cash flow, balance sheet
INVESTOR PRESENTATION JUNE 2021 | 4 4. Acquisitions - Targeting assets with potential for value creation through leasing, redevelopment, or repurposing 5. Cash flow stream is becoming stronger and more diversified - ~60% of our estimated asset value is grocery-anchored – expected leasing activity wi
Slide 5: Urban Edge Team
INVESTOR PRESENTATION JUNE 2021 | 5 Urban Edge Team Cecilia Li SVP, Chief Information Officer Leigh Lyons SVP, Leasing Dan Reilly SVP, Property Accounting Paul Schiffer SVP, Leasing Chad Bernstein SVP, Portfolio Management and Strategy Rob Milton EVP & General Counsel Jen Holmes Chief Accounting Off
Slide 6: Portfolio Concentrated in DC to Boston Corridor
INVESTOR PRESENTATION JUNE 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 - Most
Slide 7: First-Ring Suburbs of NY Metro: Properties; ~80% of Total Value
INVESTOR PRESENTATION JUNE 2021 | 7 First-Ring Suburbs of NY Metro: 45 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 more sp
Slide 8: Portfolio Has Favorable Supply/Demand Ratio
INVESTOR PRESENTATION JUNE 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 e ta il G L A p e r H o u se h o ld (S U P P LY ) BRX AAT SIT
Slide 9: Top Tenants by Annualized Base Rent
INVESTOR PRESENTATION JUNE 2021 | 9 Top 20 Tenants by Annualized Base Rent Data as of March 31, 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 $15.7 6% The TJX Companies, Inc. A 22 715 14.3 5%
Slide 10: Leasing
Leasing
Slide 11: Leasing Today
INVESTOR PRESENTATION JUNE 2021 | 11 Leasing Today… Adding essential tenants with quality grocers leading the way — one size doesn’t fit all as market factors drive demand ranging from discount brands to gourmet/specialty or ethnic in addition to national brands Elevating our food offerings with new
Slide 12: Retailers Expanding
INVESTOR PRESENTATION JUNE 2021 | 12 Retailers Expanding Operating ~1,000 stores and plans to double the company’s footprint over the next few years Operating 769 stores with long-term goal to reach 1,000 stores Operating ~1,300 stores and is targeting 1,500 to 1,700 stores in the next few years Pla
Slide 13: Anchor Leasing Update
INVESTOR PRESENTATION JUNE 2021 | 13 Anchor Leasing Update Stabilization/ Annual Gross Property New Tenant/Prospect SF Status Rent ($M) Executed: Plaza at Woodbridge Bed Bath & Beyond, buybuy Baby 56,000 1Q21 1.3 Salem Fun City 39,000 4Q21 0.5 Briarcliff Commons Uncle Giuseppe’s 38,000 4Q21 0.7 Hunt
Slide 14: Leases Executed but not yet rent commenced
INVESTOR PRESENTATION JUNE 2021 | 14 2021 2022 2023 $12,000 $9,000 $6,000 $3,000 -$0 Year $9,000 $11,000 Leases Executed but not yet rent commenced Approximately $11M of future annual gross rent from leases executed, but not yet rent commenced will provide significant earnings growth over the next t
Slide 15: Development
Development |
Slide 16: Development Update
INVESTOR PRESENTATION JUNE 2021 | 16 Development Update $121 million of active projects as of March 31, 2021: - 8% unlevered yield expected; $82 million remains to be funded - Pre-leased projects (80% sf executed excluding self-storage) - New grocer and industrial tenants will drive cap rate compres
Slide 17: Huntington Commons | Huntington, NY
INVESTOR PRESENTATION JUNE 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 JUNE 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 JUNE 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. Landl
Slide 20: Broomall Commons | Broomall, PA
INVESTOR PRESENTATION JUNE 2021 | 20 Broomall Commons | Broomall, PA Retenant former Giant Food with national retailers. BEFORE AFTER
Slide 21: Broomall Commons | Broomall, PA
INVESTOR PRESENTATION JUNE 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, sha
Slide 22: Lodi Redevelopment | Lodi, NJ
INVESTOR PRESENTATION JUNE 2021 | 22 8 PENN CENTER 1628 JFK BLVD; SUITE 1810 PHILADLEPHIA, PA 19103 215.482.1950 T WWW.SARGARCH.COM LODI REDEVELOPMENT Lodi | Lodi, NJ Convert former National Wholesale Liquidators to a hybrid industrial and retail facility for AAA Wholesale and add a restaurant pad.
Slide 23: Briarcliff Commons | Morris Plains, NJ
INVESTOR PRESENTATION JUNE 2021 | 23 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), and a new 3K sf pad in parking lot. BEFORE AFTER
Slide 24: Briarcliff Commons | Morris Plains, NJ
INVESTOR PRESENTATION JUNE 2021 | 24 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 shopping
Slide 25: Development Pipeline
INVESTOR PRESENTATION JUNE 2021 | 25 Development Pipeline Largest pipeline projects are advancing: Bergen Town Center Create a more dynamic open-air retail experience: pursue options for residential, office and other uses on property, improve outdoor experience with expanded walkways, new seating an
Slide 26: Bergen Town Center: Development Plans
INVESTOR PRESENTATION JUNE 2021 | 26 02.01.21 Bergen Town Center: Development Plans Full Build: Mall Level: Base Spring Valley Ave New Jers ey S tate High way Rout e 4 Fo re st A ve Fo re st A ve S pring Valley R d Spring Valley Ave Legend RestaurantsRetail Entertainment Health & WellnessAnchor Vert
Slide 27: Bergen Town Center | Paramus, NJ
INVESTOR PRESENTATION JUNE 2021 | 27 Bergen Town Center | Paramus, NJ Develop a mix of uses including residential and/or office; common area improvements and enhancements to improve merchandising
Slide 28: Yonkers Gateway Center | Yonkers, NY
INVESTOR PRESENTATION JUNE 2021 | 28 Yonkers Gateway Center | Yonkers, NY Develop a plan to pursue mix of uses including residential and additional retail.
Slide 29: Bruckner Commons | Bronx, NY
INVESTOR PRESENTATION JUNE 2021 | 29 Bruckner Commons | Bronx, NY Reposition asset with improved retail mix
Slide 30: Bruckner Commons | Bronx, NY
INVESTOR PRESENTATION JUNE 2021 | 30 Bruckner Commons | Bronx, NY Reposition asset with improved retail mix
Slide 31: Hudson Mall | Jersey City, NJ
INVESTOR PRESENTATION JUNE 2021 | 31 Hudson Mall | Jersey City, NJ
Slide 32: Hudson Mall | Jersey City, NJ
INVESTOR PRESENTATION JUNE 2021 | 32 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 617,55
Slide 33: Acquisition/Disposition Strategy
Acquisition/Disposition Strategy
Slide 34: Acquisition/Disposition Strategy
INVESTOR PRESENTATION JUNE 2021 | 34 Acquisition/Disposition Strategy Opportunistically target value-add assets - Assets with potential for value creation through leasing, redevelopment and repurposing - Focus on distressed/motivated sellers and special situations - Generate off-market opportunities
Slide 35: Recently Acquired Sunrise Mall (Massapequa, NY)
INVESTOR PRESENTATION JUNE 2021 | 35 Recently Acquired Sunrise Mall (Massapequa, NY) Acquired on December 31, 2020 for ~$30M - Formed strategic partnership with Sagamore Hill Partners, an affiliate of RIPCO Real Estate, and JG Petrucci, an established industrial developer - Urban Edge will serve as
Slide 36: Financial Strength
Financial Strength
Slide 37: Liquidity and Balance Sheet
INVESTOR PRESENTATION JUNE 2021 | 37 $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 $85 $329 $144 $23 $219 $260 $265 $38 $101 Liquidity and Balance Sheet Total liquidity of approximately $1
Slide 38: Earnings Growth Drivers
INVESTOR PRESENTATION JUNE 2021 | 38 Earnings Growth Drivers Short-term (one year) Improved collection rates result in lower bad debt expense Rent commencement on previously executed leases including new anchors at Plaza at Woodbridge, Salem and Huntington Commons Lower interest expense from mortgag
Slide 39: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG)
Slide 40: Our Commitment
INVESTOR PRESENTATION JUNE 2021 | 40 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. - W
Slide 41: Forward Looking Statements
INVESTOR PRESENTATION JUNE 2021 | 41 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 c
Slide 42: Non-GAAP Financial Measures & Operating Metrics
INVESTOR PRESENTATION JUNE 2021 | 42 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
Slide 43: Non-GAAP Financial Measures & Operating Metrics (continued)
INVESTOR PRESENTATION JUNE 2021 | 43 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 per
Slide 44: Corporate Office
CORPORATE NEW YORK 888 SEVENTH AVENUE, 6TH FLOOR NEW YORK, NY 10019 212-956-2556
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