Urban Edge Properties · NYSE:UE
Urban Edge Properties — Investor Presentation (November 2022)
46 slides from Urban Edge Properties's investor presentation, Nov 15, 2022
Slide 1: November 2022 Investor Presentation
NOVEMBER 2022 INVESTOR PRESENTATION
Slide 2: About Urban Edge
2U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 About Urban Edge Data as of September 30, 2022, except where noted. Portfolio Overview 76 properties with 17.2M sf total GLA including 1.3M sf industrial GLA. ~90% of total portfolio value and NOI i
Slide 3: Portfolio Concentrated in DC to Boston Corridor
I N V E S T O R P R E S E N T A T I O N 3U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Portfolio Concentrated in DC to Boston Corridor Most heavily urbanized region in the U.S. Persons Per Sq. Mile ■ less than 150 ■ 150 – 250 ■ 250 – 750 ■ 750 –
Slide 4: First-Ring Suburbs of NY Metro
I N V E S T O R P R E S E N T A T I O N 4U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 First-Ring Suburbs of NY Metro 44 Properties; ~80% of Total Value Persons Per Sq. Mile ■ less than 150 ■ 150 – 250 ■ 250 – 750 ■ 750 – 1500 ■ 1500 – 3000 ■ 30
Slide 5: Third quarter 2022 highlights
5U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 • FFO as Adjusted was $0.30/share in 3Q22, up $0.02/share or 8% compared to 3Q21 • Executed 36 new leases, renewals and options totaling 308,000 sf in 3Q22 • Total liquidity of ~$952 million, compri
Slide 6: 2022 Outlook
6U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 2022 Outlook $1.17 $1.19 Same Property NOI with Redevelopment Growth 1.5% 2.5% Issued guidance for fiscal year 2022 as part of our third quarter earnings release. 2022 operating FFO is projected to
Slide 7: Urban Edge Team
Urban Edge Team Scott Auster SVP, Head of Leasing Cecilia Li SVP, Chief Information Officer John Villapiano SVP, Development Leigh Lyons SVP, Leasing Andrea Drazin Chief Accounting Officer Jeff Olson Chairman and Chief Executive Officer Mark Langer EVP, Chief Financial Officer Danielle De Vita EVP,
Slide 8: Top Tenants By Annualized Base Rent
8U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Top 20 Tenants By Annualized Base Rent Data as of September 30, 2022 Tenant S&P Rating # of Stores Total Square Feet (000s) ABR in Millions % of Total ABR The Home Depot A 6 809 16 6% TJX Companies
Slide 9: Portfolio ABR Composition by Tenant Category
9U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Portfolio ABR Composition by Tenant Category Data as of September 30, 2022 (1) Grocer includes Warehouse Clubs, Target and Walmart (2) Other necessity-based including services includes auto, beauty,
Slide 10: Cash Flow Stream is Stronger from New Anchors
10U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Cash Flow Stream is Stronger from New Anchors Note: Percentages shown reflect portfolio value by asset type Industrial/Self-Storage 7% Lodi Route 17 Grocery Anchored Assets 65% Bergen Town Center H
Slide 11: Leasing
11U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 LEASING
Slide 12: Retailers are growing their omnichannel platforms
12U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Retailers are growing their omnichannel platforms and leasing demand continues to be strong. • ~60% of the top 500 retail chains offered curbside pickup up in 2021, up from 10% in 2019. • ~80% of t
Slide 13: Leases Executed in 2022
13U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Leases Executed in 2022
Slide 14: Same-Property Occupancy
14U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Same-Property Occupancy 98.0% 96.3% 93.4% 93.4% 92.7% 93.0% 91.8% 91.3% 92.0% 92.8% 94.1% 93.9% 94.9% 94.7% 97% - 98% 97.0% 95.6% 92.6% 92.1% 91.3% 90.9% 89.7% 89.5% 89.2% 89.4% 90.3% 90.1% 90.0% 9
Slide 15: Leases Executed But Not Yet Rent Commenced
15U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Leases Executed But Not Yet Rent Commenced CityMD Morris Plains, NJ Est Stabilization 2Q23 Approximately $29M of future annual gross rent from leases executed, but not yet rent commenced will provi
Slide 16: Development
16U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 DEVELOPMENT
Slide 17: Development Update
17U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Development Update Featured Projects: Active Project Est Gross Cost ($000s) Target Stabilization Status Bergen Town Center (Phase B) $44,300 2Q25 Ground-up development for 80K sf Hackensack Meridia
Slide 18: Bruckner Commons, Bronx, NY
18U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Bruckner Commons | Bronx, NY Re-tenanting former Kmart box with Target Target Stabilization 2Q25 BEFORE AFTER
Slide 19: Bruckner Commons, Bronx, NY
19U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Bruckner Commons | Bronx, NY
Slide 20: Bergen Town Center, Paramus, NJ
20U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Bergen Town Center | Paramus, NJ Phase B: Re-tenant former Century 21 box with Kohl’s Opened October 2022 Phase A: Ground-up development of an 80,000 sf medical office building for Hackensack Merid
Slide 21: Bergen Town Center, Paramus, NJ
21U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Bergen Town Center | Paramus, NJ
Slide 22: Huntington Commons, Huntington, NY
22U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Huntington Commons | Huntington, NY BEFORE AFTER Phase A: Re-tenanting former Kmart box with ShopRite and Marshalls relocation Target Stabilization 4Q22
Slide 23: Huntington Commons, Huntington, NY
23U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Huntington Commons | Huntington, NY AFTER BEFORE Phase B: Re-tenant relocated Marshalls box, small shops and upgraded façade, parking, and landscaping Target Stabilization 4Q23
Slide 24: Huntington Commons, Huntington, NY
24U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Huntington Commons | Huntington, NY
Slide 25: Las Catalinas, Caguas, Puerto Rico
25U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Las Catalinas | Caguas, Puerto Rico AFTER BEFORE Re-tenanting 122,000± sf Kmart box with Sector Sixty6 Target Stabilization 2Q23
Slide 26: Las Catalinas, Caguas, Puerto Rico
26U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Las Catalinas | Caguas, Puerto Rico
Slide 27: The Outlets at Montehiedra, San Juan, Puerto Rico
27U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 The Outlets at Montehiedra | San Juan, Puerto Rico Phase C: Demising and re-tenanting former Kmart box with Ralph’s Food Warehouse and Urology Hub. Target Stabilization 3Q24 BEFORE AFTER
Slide 28: Broomall Commons, Broomall, PA
28U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Broomall Commons | Broomall, PA Phase B: Re-tenanting 19K sf with Nemours Children’s Hospital and remaining 41K sf of former Giant box Target Stabilization 4Q23 AFTER BEFORE
Slide 29: Broomall Commons, Broomall, PA
29U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Broomall Commons | Broomall, PA
Slide 30: The Shops at Bruckner, Bronx, NY
30U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 The Shops at Bruckner | Bronx, NY AFTER BEFORE Phase A: Relocating Jimmy Jazz, adding Five Below Target Stabilization 4Q22 Phase B: Re-tenanting former Fallas space with Aldi and Lot Less Target St
Slide 31: The Shops at Bruckner, Bronx, NY
31U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 The Shops at Bruckner | Bronx, NY
Slide 32: Other Ongoing Projects
32U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Other Ongoing Projects Active Project Est Gross Cost ($000s) Target Stabilization Status Kearny Commons 11,900 4Q22 Expand by 22K sf for 10K sf Ulta (open) and small shops as well as freestanding S
Slide 33: Opened in 2022
33U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Opened in 2022 Briarcliff Commons Broomall Commons Tonnelle Commons Walnut Creek – Mt. Diablo Bergen Town Center Briarcliff Commons
Slide 34: Acquisitions Update
34U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 ACQUISITIONS UPDATE
Slide 35: Acquisition/Disposition Strategy
35U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Acquisition/Disposition Strategy Opportunistically target value-add assets • Assets with attractive yield and/or potential for value creation through leasing, redevelopment and repurposing • Focus
Slide 36: Prior Acquisitions
36U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Prior Acquisitions • 712,000 sf regional shopping center anchored by Wegmans and Costco in Glenarden, MD • Purchase price of $193.4 million • Partially funded with 10-year, $117.2 million non-recou
Slide 37: Liquidity and Balance Sheet
37U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 LIQUIDITY AND BALANCE SHEET
Slide 38: Liquidity and Balance Sheet
38U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Liquidity and Balance Sheet • Total liquidity of ~$952 million, comprised of $152 million of cash and $800 million available under our line of credit • Outstanding indebtedness is made up of 34 ind
Slide 39: Environmental, Social, Governance (ESG)
39U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG)
Slide 40: Environmental, Social and Governance (ESG)
40U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Environmental, Social and Governance (ESG) Environmental Initiatives • We have undertaken a number of initiatives that conserve energy, save water and improve waste management including: LED lighti
Slide 41: ESG Focus Areas
I N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 41U R B A N E D G E P R O P E R T I E S ESG Focus Areas Utilizing our environmental management system framework to help us achieve our environmental goals We performed a gap analysis based on our latest GRESB submission to identify the
Slide 42: 2022 Guidance
I N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 42U R B A N E D G E P R O P E R T I E S 2022 Guidance The Company has provided 2022 earnings guidance, estimating net income of $0.36 to $0.38 per diluted share, NAREIT FFO of $1.16 to $1.17 per diluted share, and FFO as Adjusted of $1.
Slide 43: 2022 Guidance
I N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 43U R B A N E D G E P R O P E R T I E S 2022 Guidance Guidance 2022E Per Diluted Share(1) (in thousands, except per share amounts) Low High Low High Net income $44,200 $46,200 $0.36 $0.38 Less net (income) loss attributable to noncontro
Slide 44: Forward-looking statements
44U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 Certain statements contained herein 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 Exchang
Slide 45: Non-GAAP Financial Measures
45U R B A N E D G E P R O P E R T I E SI N V E S T O R P R E S E N T A T I O N N O V E M B E R 2 0 2 2 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 Comp
Slide 46: Slide 46
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