Urban Edge Properties · NYSE:UE
Urban Edge Properties — Investor Presentation (February 2021)
48 slides from Urban Edge Properties's investor presentation, Feb 22, 2021
Slide 1: Investor Presentation February 2021
Investor Presentation February 2021
Slide 2: Highlights
Highlights 1. 2020 results - FFO as Adjusted was $0.88 per share, down 24% compared to 2019, driven by elevated bad debt expense - SP NOI with redevelopment decreased by 14% compared to 2019 - SP occupancy was 91.8%, down 110 bps compared to 2019 due to the bankruptcy of Century 21 - Executed 93 new
Slide 3: Highlights (continued)
5. Development - $132 million of active redevelopment projects under way, expected to generate an ~8% unlevered yield - $87 million remains to be funded - Lower risk projects as average investments are only $12 million and anchor leases are executed prior to construction - Largest projects include H
Slide 4: Highlights (continued)
Highlights (continued) INVESTOR PRESENTATION FEBRUARY 2021 | 3 8. Balance sheet is intentionally built for cyclical disruption - Net debt to EBITDA of 6.6x - Total liquidity of ~$1 billion; $419 million of cash and $600 million available under our line of credit - No debt maturing until 2022; weight
Slide 5: How We Are Different
How We Are Different Demographics and retail supply constraints: portfolio located in the most densely- populated, supply-constrained market in the country Geographic concentration: 80% of total value located in first-ring suburbs within the NY metropolitan area and 90% concentrated in DC to Boston
Slide 6: Urban Edge Team
Urban Edge Team Judy Knop SVP, Development & Construction Cecilia Li SVP, Information Technology Leigh Lyons SVP, Leasing Dan Reilly SVP, Property Accounting Paul Schiffer VP, Leasing Rob Milton EVP & General Counsel Jen Holmes Chief Accounting Officer Danielle De Vita EVP, Development Scott Auster
Slide 7: High-Quality, Irreplaceable Portfolio
High-Quality, Irreplaceable Portfolio INVESTOR PRESENTATION FEBRUARY 2021 | 6 (1) Based on most recent sales for supermarkets reporting with at least one full year of operations as of December 31, 2020. (2) Based on annualized base rent as of December 31, 2020. - Concentrated in first-ring suburbs w
Slide 8: Portfolio Concentrated in DC to Boston Corridor
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 (2017) INVESTOR PRESENTATION FEBRUARY 2021 | 7 - 63 of the company’s 74 properties representing ~90% of NOI are situated
Slide 9: First-Ring Suburbs of NY Metro
First-Ring Suburbs of NY Metro: 46 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 (2017) - Migration from NYC has benefited first-ring suburbs - Neighborhood shopping centers benefitin
Slide 10: Portfolio Has Favorable Supply/Demand Ratio
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 SITC RPAI WRI KIM REG FRTUE ROIC INVEST
Slide 11: Top Tenants by Annualized Base Rent
Top 20 Tenants by Annualized Base Rent Data as of December 31, 2020. (1) Source: S&P Global. INVESTOR PRESENTATION FEBRUARY 2021 | 10 Total Square Feet ABR Tenant S&P Rating(1) in thousands in millions % of Total ABR The Home Depot, Inc. A 809 $15.0 6% The TJX Companies, Inc. A 715 14.3 5% Lowe’s Co
Slide 12: Leasing
Leasing
Slide 13: Leasing Today…
INVESTOR PRESENTATION FEBRUARY 2021 | 12 Leasing Today… Adding essential tenants with quality grocers leading the way — one size doesn’t fit all as market factors drive demand ranging from discount brands to gourmet/specialty or ethnic in addition to national brands Elevating our food offerings with
Slide 14: … and the Future
INVESTOR PRESENTATION FEBRUARY 2021 | 13 … and the Future The convergence of e-commerce and the store will continue to benefit our prime first-ring suburban assets. We are enhancing our centers with better tenants, resulting in increased traffic and lower cap rates.
Slide 15: Retailers Expanding Today
INVESTOR PRESENTATION FEBRUARY 2021 | 14 Retailers Expanding Today Operating ~1,000 stores and plans to double the company’s footprint over the next few years Operating 769 stores with long-term goal to reach 1,000 stores Operating ~1,300 stores and is targeting 1,500 to 1,700 stores in the next few
Slide 16: Leasing Update
INVESTOR PRESENTATION FEBRUARY 2021 | 15 Leasing Update Upgrading portfolio with high performing retailers including ShopRite, Uncle Giuseppe’s, Bed Bath & Beyond, industrial grocer warehouse, and medical office New Leases Executed ~430K sf New Same Space Spreads 17.5% cash rent spread 7 of the 9 an
Slide 17: Anchor Leasing Update
INVESTOR PRESENTATION FEBRUARY 2021 | 16 Anchor Leasing Update Stabilization/ Annual Gross Property New Tenant/Prospect SF Status Rent ($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
Slide 18: Development
Development
Slide 19: Development Update
INVESTOR PRESENTATION FEBRUARY 2021 | 18 Development Update Target $132 million of active projects as of December 31, 2020: - 8% unlevered yield expected - $87 million remains to be funded - $93 million of projects activated during 2020 - Pre-leased projects (85% sf executed excluding self-storage)
Slide 20: Huntington Commons | Huntington, NY
INVESTOR PRESENTATION FEBRUARY 2021 | 19 Huntington Commons | Huntington, NY Retenant former Kmart box with ShopRite, relocate Marshalls and upgrade façade, parking, and landscaping. BEFORE AFTER
Slide 21: Huntington Commons | Huntington, NY
INVESTOR PRESENTATION FEBRUARY 2021 | 20 Huntington Commons | Huntington, NY Retenant former Kmart box with ShopRite, relocate Marshalls and upgrade façade, parking, and landscaping. BEFORE AFTER
Slide 22: Huntington Commons | Huntington, NY
INVESTOR PRESENTATION FEBRUARY 2021 | 21 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 23: Broomall Commons | Broomall, PA
INVESTOR PRESENTATION FEBRUARY 2021 | 22 Broomall Commons | Broomall, PA Retenant former Giant Food with national retailers. BEFORE AFTER
Slide 24: Broomall Commons | Broomall, PA
INVESTOR PRESENTATION FEBRUARY 2021 | 23 Broomall Commons | Broomall, PA Site Plan Highlights Total SF 168,906 Parking Spaces 676 Parking Ratio 4 per 1,000 sf ¤ 3 2A 44,597 SF 2B 42,148 SF 3 19 ,3 2 9 S F � � � � � � P ylon National Tenant Lease Executed This exhibit shall not be deemed a warranty,
Slide 25: Lodi | Lodi, NJ
INVESTOR PRESENTATION FEBRUARY 2021 | 24 Lodi | Lodi, NJ Convert former National Wholesale Liquidators to a hybrid industrial and retail facility for AAA Wholesale and add a restaurant pad. BEFORE AFTER
Slide 26: Lodi Redevelopment
8 PENN CENTER 1628 JFK BLVD; SUITE 1810 PHILADLEPHIA, PA 19103 215.482.1950 T WWW.SARGARCH.COM LODI REDEVELOPMENT INVESTOR PRESENTATION FEBRUARY 2021 | 25 Lodi | Lodi, NJ
Slide 27: Briarcliff Commons | Morris Plains, NJ
INVESTOR PRESENTATION FEBRUARY 2021 | 26 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 28: Briarcliff Commons | Morris Plains, NJ
FUTURE RETAIL 3,250 SF INVESTOR PRESENTATION FEBRUARY 2021 | 27 Briarcliff Commons | Morris Plains, NJ Site Plan Highlights Total SF 178,698 Parking Spaces 891 Acres 27.30 Vacant/Available Leased (not occupied) Occupied
Slide 29: Development Pipeline
INVESTOR PRESENTATION FEBRUARY 2021 | 28 Development Pipeline Largest pipeline projects are advancing: Project Strategy Bergen Town Center Creating a more dynamic open-air retail experience: pursue options for residential, office and other uses on property, improve outdoor experience with expanded w
Slide 30: Bergen Town Center: Development Plans
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 Vertical Core Office Residential DRAFT IN
Slide 31: Bergen Town Center | Paramus, NJ
INVESTOR PRESENTATION FEBRUARY 2021 | 30 Bergen Town Center | Paramus, NJ Develop a mix of uses including residential and/or office; common area improvements and enhancements to improve merchandising
Slide 32: Yonkers Gateway Center | Yonkers, NY
INVESTOR PRESENTATION FEBRUARY 2021 | 31 Yonkers Gateway Center | Yonkers, NY Develop a plan to pursue mix of uses including residential and additional retail.
Slide 33: Bruckner Commons | Bronx, NY
INVESTOR PRESENTATION FEBRUARY 2021 | 32 Bruckner Commons | Bronx, NY Reposition asset with improved retail mix
Slide 34: Bruckner Commons | Bronx, NY
INVESTOR PRESENTATION FEBRUARY 2021 | 33 Bruckner Commons | Bronx, NY Reposition asset with improved retail mix
Slide 35: Hudson Mall | Jersey City, NJ
INVESTOR PRESENTATION FEBRUARY 2021 | 34 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 Vacant/Available Occupied De-malling interior space; adding a mix of retailers and industrial or self-storage uses
Slide 36: Hudson Mall | Jersey City, NJ
INVESTOR PRESENTATION FEBRUARY 2021 | 35 Hudson Mall | Jersey City, NJ
Slide 37: Acquisition/Disposition Strategy
Acquisition/Disposition Strategy
Slide 38: Acquisition/Disposition Strategy
INVESTOR PRESENTATION FEBRUARY 2021 | 37 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 opportuni
Slide 39: Recently Acquired Sunrise Mall (Massapequa, NY)
INVESTOR PRESENTATION FEBRUARY 2021 | 38 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
Slide 40: Financial Strength
Financial Strength
Slide 41: Liquidity and Balance Sheet
Liquidity and Balance Sheet Total liquidity of approximately $1 billion, comprised of $419 million of cash on hand and $600 million available under our line of credit Successfully refinanced two mortgages on malls located in Puerto Rico in 2020: - Montehiedra – Eliminated $35 million of debt with a
Slide 42: Earnings Growth Drivers
Earnings Growth Drivers INVESTOR PRESENTATION FEBRUARY 2021 | 41 Short-term (one year) Improved collection rates expected to 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 m
Slide 43: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG)
Slide 44: Our Commitment
INVESTOR PRESENTATION FEBRUARY 2021 | 43 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 45: Forward Looking Statements
Forward Looking Statements INVESTOR PRESENTATION FEBRUARY 2021 | 44 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, financi
Slide 46: 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 47: Non-GAAP Financial Measures & Operating Metrics (continued)
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 periods being compared. Information prov
Slide 48: Corporate
CORPORATE NEW YORK 888 SEVENTH AVENUE, 6TH FLOOR NEW YORK, NY 10019 212-956-2556
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