Urban Edge Properties · NYSE:UE
Urban Edge Properties — Investor Presentation (October 2017)
49 slides from Urban Edge Properties's investor presentation, Oct 12, 2017
Slide 1: October 2017 Investor Presentation
OCTOBER 2017 INVESTOR PRESENTATION
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
2 FOWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES Certain statements contained in this Presentation constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Fo
Slide 3: How Are We Different?
3 HOW ARE WE DIFFERENT? 1. Our real estate is concentrated in the NY metropolitan area • 52 properties valued at $3.3 billion, representing ~ 80% of our total assets(1) • Impossible to replicate as comparable assets rarely trade • Highest population density in the country • Anchored by high-volume v
Slide 4: Portfolio Concentrated in DC to Boston Corridor
4 • 77 of the Company’s 90 properties representing ~ 90% of value are situated in the DC to Boston corridor • Most heavily urbanized region in the US • Population of 50 million • 931 people per square mile, over 10x higher than the US average PORTFOLIO CONCENTRATED IN DC TO BOSTON CORRIDOR
Slide 5: New York Metro: 52 Properties, 80% of Total Value
5 • New York metro area represents ~ 80% of value • 52 properties • 10.8 million SF NEW YORK METRO: 52 PROPERTIES, 80% OF TOTAL VALUE
Slide 6: Recently Completed Five Projects Creating $65 Million of Value
6 RECENTLY COMPLETED FIVE PROJECTS CREATING $65 MILLION OF VALUE East Hanover Warehouses, East Hanover, NJ Complete renovation; increased occupancy from 45% to 92% $26M value creation Walnut Creek (Olympic), Walnut Creek, CA Anthropologie replaced Barnes & Noble $15M value creation Freeport Commons,
Slide 7: Creating ~$200M of Additional Value from Projects
7 CREATING ~$200M OF ADDITIONAL VALUE FROM 21 PROJECTS Bruckner Commons, Bronx, NY Expansion & Redevelopment Before After Before After Anchor Repositioning Before After Before After Before After Before After Garfield Commons, Garfield, NJ Goucher Commons, Towson, MD Hanover Commons, East Hanover, NJ
Slide 8: Redevelopment Projects
8 REDEVELOPMENT PROJECTS Est. Gross Est. Value Target Property Cost(1) Yield(1) Creation(2) Stabilization(1) Project Description Bergen Town Center $79,500 8% $57,700 2018-2020 Add Best Buy, a national discounter and 4 restaurants Hackensack Commons 4,700 46% 32,700 1Q18 Retenant former Pathmark wit
Slide 9: Future Redevelopment Projects - $500M+ of Potential Investment
9 FUTURE REDEVELOPMENT PROJECTS - $500M+ OF POTENTIAL INVESTMENT Bruckner Commons, Bronx, NY Huntington Commons, Huntington, NY The Plaza at Woodbridge, Woodbridge, NJ Hudson Mall, Jersey City, NJ Tonnelle Commons, North Bergen, NJ Hazlet, NJ Yonkers Gateway, Yonkers, NY Brunswick Commons, East Brun
Slide 10: Bruckner Commons, Bronx, NY
10 BRUCKNER COMMONS BRONX, NY Acquired Shops at Bruckner leasehold 1/17 ($32M) Potential recapture of Kmart and/or Toys "R" Us Rezone existing site for mixed-use development 10
Slide 11: Yonkers Gateway, Yonkers, NY
11 YONKERS GATEWAY YONKERS, NY Former Completed acquisition in May 2017 ($152M) Plan to renovate, remerchandise and densify 60k sf vacant Pathmark Burlington/Bob's Furniture (196k sf) pay ~ $5 psf 11
Slide 12: Hudson Mall, Jersey City, NJ
12 HUDSON MALL JERSEY CITY, NJ Acquired Hudson Mall in February 2017 ($44M) Adjacent to Hudson Commons Combined 48 acres & 1,800 linear feet on Rte. 440 Plan to renovate, redevelop and remerchandise Toys "R" Us (39k sf) pays $0.43 psf Planned Bayfront development includes estimated 8,000 + residenti
Slide 13: Balance Sheet: Significant Liquidity & Well-Laddered Maturities
13 $600 $500 $400 $300 $200 $100 $0 2017 $0 W.A. rate at maturity BALANCE SHEET: SIGNIFICANT LIQUIDITY & WELL-LADDERED MATURITIES(1) Proforma Leverage Metrics(1) Net Debt to Adjusted EBITDA 5.0x Adjusted EBITDA to Fixed Charges 3.8x Net Debt to Total Market Capitalization 24% Weighted Average Term t
Slide 14: Board and Management Team
14 BOARD AND MANAGEMENT TEAM Jeffrey Olson Chairman and CEO, Urban Edge Properties Steven Roth Chairman and CEO, Vornado Realty Trust Michael Gould Former Chairman and CEO, Bloomingdale's Steven Grapstein Former Chairman, Tesoro Corporation Former Chairman, Armani Exchange Steven Guttman Founder and
Slide 15: Results Since Spin
15 RESULTS SINCE SPIN 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 SINCE 1Q15 FFO, as adjusted per share $0.30 $0.30 $0.30 $0.31 $0.31 $0.31 $0.32 $0.33 $0.33 $0.33 +10% Dividend per share $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.22 $0.22 $0.22 +10% Same property cash NOI growth 2.7% 4.2% 4
Slide 16: Positioned for Growth in a Changing Retail Environment
16 POSITIONED FOR GROWTH IN A CHANGING RETAIL ENVIRONMENT 1. Strengthening our balance sheet • Increased liquidity to $1.0 billion ($400M of cash and $600M LOC)(1) • Raised ~$520M of equity YTD in four separate transactions • Extended LOC maturity to 2021 and increased capacity from $500M to $600M •
Slide 17: Appendix
17 A P P E N D I X
Slide 18: Bergen Town Center, Paramus, NJ
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 18 BERGEN TOWN CENTER PARAMUS, NJ Project Description Expanding and remerchandising Bergen Town Center, our largest property and one of the most pro
Slide 19: Hackensack Commons, Hackensack, NJ
19 Estimated Gross Cost $4.7M Estimated Yield 46% Est. Value Creation $32.7M Target Stabilization 1Q18 Project Description Replacing 59k sf, former Pathmark with 99 Ranch Market (opening 1Q18), a 43 unit, California-based, Asian grocer; leased shop space to Chipotle, Orangetheory Fitness and Eastern
Slide 20: West End Commons, North Plainfield, NJ
20 Estimated Gross Cost $7.2M Estimated Yield 18% Est. Value Creation $14.8M Target Stabilization 4Q17 Project Description Expanded center by 33k sf; La-Z-Boy open; Petco opening in October 2017; 8k sf available; prior projects added Costco, Tile Shop, Texas Roadhouse and Aroogas. WEST END COMMONS N
Slide 21: Bruckner Commons, Bronx, NY
21 Estimated Gross Cost $56.5M Estimated Yield 7% Est. Value Creation $13.2M Target Stabilization 3Q18 Project Description Completely renovating and releasing three buildings comprising approximately 91k sf of retail, 25k sf of office and a 30k sf supermarket; ShopRite lease executed; 50k sf, two-le
Slide 22: Outlets at Montehiedra, San Juan, PR
22 Estimated Gross Cost $28.2M Estimated Yield 12% Est. Value Creation $13.2M Target Stabilization 2Q18/2019 Project Description Completely renovated enclosed regional mall built in 1994 and converted it into a hybrid offering outlets, off price, entertainment and food uses; 57% of the total 117k sf
Slide 23: Garfield Commons, Garfield, NJ
23 Estimated Gross Cost $21.6M Estimated Yield 9% Est. Value Creation $10.2M Target Stabilization 4Q17/2019 Project Description Expanded center by 85k sf; Burlington, PetSmart and Ulta open; remaining 7k sf in lease. Adding 15k - 20k sf of small shops adjacent to Walmart or in the adjacent parking l
Slide 24: Hanover Commons, East Hanover, NJ
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 24 HANOVER COMMONS EAST HANOVER, NJ Estimated Gross Cost $5.1M ed Yield 16% Est. Value Creation $8.7M Target Stabilization 4Q17 cription Replaced fo
Slide 25: Goucher Commons, Towson, MD
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 25 Estimated Gross Cost $11.6M ted Yield 9% Est. Value Creation 6.8M Target Stabilization 2Q18/2019 Recaptured underperforming 39k sf grocery store
Slide 26: Rockaway River Commons, Rockaway, NJ
26 Estimated Gross Cost $0.9M Estimated Yield 36% Est. Value Creation $4.7M Target Stabilization 4Q17/2018 Project Description Leased approved pad to Popeyes (open). Renewed and expanding existing ShopRite (under construction). ROCKAWAY RIVER COMMONS ROCKAWAY, NJ
Slide 27: Hubbards Commons, West Babylon, NY
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 27 Adding 10k sf building on adjacent parcel. HUBBARDS COMMONS WEST BABYLON, NY Estimated Gross Cost $3.3M Estimated Yield 11% Est. Value Creation $
Slide 28: Marlton Commons, Marlton, NJ
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 28 MARLTON COMMONS MARLTON, NJ Estimated Gross Cost $3.3M ed Yield 9% Est. Value Creation $2.3M Target Stabilization 2Q18 roject cription Creating a
Slide 29: Kearny Commons, Kearny, NJ
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 29 Expanding center by 20k +/- sf (10k sf in lease) and an outparcel for Starbucks (executed). KEARNY COMMONS KEARNY, NJ Estimated Gross Cost $7.0M
Slide 30: Woodbridge Commons, Woodbridge, NJ
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 30 Redeveloping former Syms building (36k sf); options include releasing, downsizing or demolishing for pads. WOODBRIDGE COMMONS WOODBRIDGE, NJ Esti
Slide 31: Huntington Commons, Huntington, NY
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 31 Converting an 11k sf, unusable basement into retail space fronting Route 110. HUNTINGTON COMMONS HUNTINGTON, NY Estimated Gross Cost $2.8M Estima
Slide 32: Turnersville, Turnersville, NJ
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 32 Estimated Gross Cost $2.1M ed Yield 14% Est. Value Creation $1.1M Target Stabilization 3Q17 Demolished 4k sf, former Friendly’s restaurant and co
Slide 33: Mt. Kisco Commons, Mount Kisco, NY
Estimated Cost Gross Cost $46.7M Target Stabilization 2Q19 Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 33 Reconfiguring existing Applebee’s restaurant into two quick service restaurants. MT. K
Slide 34: Lawnside Commons, Lawnside, NJ
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 34 LAWNSIDE COMMONS LAWNSIDE, NJ Estimated Gross Cost $2.1M ed Yield 9% Est. Value Creation $0.9M Target Stabilization 3Q18 Project Description Addi
Slide 35: Governors Commons, Glen Burnie, MD
35 Estimated Gross Cost $1.3M Estimated Yield 10% Est. Value Creation $0.2M Target Stabilization 4Q18 Project Description Creating a pad for Bubba’s 33, a new restaurant concept from Texas Roadhouse (executed). GOVERNORS COMMONS GLEN BURNIE, MD
Slide 36: Cherry Hill Commons, Cherry Hill, NJ
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 36 CHERRY HILL COMMONS CHERRY HILL, NJ Leasing approved pad to a fast casual restaurant (in lease). Estimated Gross Cost $1.0M Estimated Yield 11% E
Slide 37: Gun Hill Commons, Bronx, NY
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 37 Rezoning property to permit 4k sf expansion of Aldi (executed). GUN HILL COMMONS BRONX, NY Estimated Gross Cost $1.0M Estimated Yield 9% Est. Val
Slide 38: Briarcliff Commons, Morris Plains, NJ
Project Description Value Creation Incremental NOI $ Estimated Cap Rate % Incremental Value $ Cost $ Value Creation $Estimated Stabilization Year: 2Q17 38 Renovating, reconfiguring and remerchandising; replacing vacant grocer; adding restaurant pad. BRIARCLIFF COMMONS MORRIS PLAINS, NJ Estimated Gro
Slide 39: Future Projects
F U T U R E P ROJ ECTS
Slide 40: Bruckner Commons, Bronx, NY
Project Description Various redevelopment and densification scenarios assuming recapture of Kmart and/or Toys“R”Us. BRUCKNER COMMONS BRONX, NY 40
Slide 41: Yonkers Gateway, Yonkers, NY
Project Description Redevelopment options including densification, reconfiguration and remerchandising. YONKERS GATEWAY YONKERS, NY 41
Slide 42: Hudson Mall, Jersey City, NJ
Project Description Redevelopment options including densification, reconfiguration and retenanting. HUDSON MALL JERSEY CITY, NJ 42
Slide 43: Huntington Commons, Huntington, NY
Project Description Reposition 102k sf Kmart box. HUNTINGTON COMMONS HUNTINGTON, NY 43
Slide 44: Brunswick Commons, East Brunswick, NJ
Project Description Possible 10k sf expansion between Kohl’s and L.A. Fitness. BRUNSWICK COMMONS EAST BRUNSWICK, NJ 44
Slide 45: Tonnelle Commons, North Bergen, NJ
Project Description Potential 100k sf self-storage facility on a underutilized portion of the parking lot. TONNELLE COMMONS NORTH BERGEN, NJ 45
Slide 46: The Plaza at Woodbridge, Woodbridge, NJ
Project Description Potential 60k sf self-storage facility in unused basement space. THE PLAZA AT WOODBRIDGE WOODBRIDGE, NJ 46
Slide 47: The Plaza at Cherry Hill, Cherry Hill, NJ
Project Description Repositioning and remerchandising. THE PLAZA AT CHERRY HILL CHERRY HILL, NJ 47
Slide 48: Hazlet, Hazlet, NJ
Project Description Potential rental apartment project. HAZLET HAZLET, NJ 48
Slide 49: Contact Information
888 Seventh Avenue New York, NY 10019 212.956.2556 www.uedge.com
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