Slide 1: August 2023 Investor Presentation
AUGUST 2023 INVESTOR PRESENTATION
Slide 2: About Urban Edge
U R B A N E D G E P R O P E R T I E S 2 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 About Urban Edge Data as of June 30, 2023, 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 is from
Slide 3: 2Q23 Highlights
I N V E S T O R P R E S E N T A T I O N 3 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 U R B A N E D G E P R O P E R T I E S 3 1. Recent Results FFO as Adjusted was $0.30/share and $0.62/share for the three and six months ended June 20, 2023, respectively 2Q23 Same-property NOI in
Slide 4: 2023 Guidance
U R B A N E D G E P R O P E R T I E S 4 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 2023 Guidance Excludes items that impact FFO comparability, including gains and/or losses on extinguishment of debt, transaction, severance, litigation, or any one-time items outside of the ordinary c
Slide 5: Urban Edge Team
U R B A N E D G E P R O P E R T I E S 5 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Urban Edge Team Cecilia Li SVP, Chief Information Officer John Villapiano SVP, Development Leigh Lyons SVP, Leasing Scott Auster EVP, Head of Leasing Andrea Drazin Chief Accounting Officer Jeff Olson
Slide 6: Refreshed and Diversified Board With Deep Expertise
U R B A N E D G E P R O P E R T I E S 6 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Refreshed and Diversified Board With Deep Expertise Katherine M. SandstromKevin P. O’Shea Mary L. Baglivo Steven H. Grapstein Steven J. GuttmanNorman K. Jenkins Lead Trustee Jeffrey S. Olson Chairman
Slide 7: 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 7 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 U R B A N E D G E P R O P E R T I E S 7 Most heavily urbanized region in the U.S. 90% portfolio NOI generated from properties situated in the DC to Boston corridor 2x our peer average for 3-mile pop
Slide 8: Supply Constraints and Population Density
I N V E S T O R P R E S E N T A T I O N 8 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 U R B A N E D G E P R O P E R T I E S 8 Supply Constraints and Population Density drive demand from retailers seeking to expand their omnichannel initiatives Population in first-ring NYC suburbs is
Slide 9: Portfolio Situated in Dense, Affluent US Submarkets
U R B A N E D G E P R O P E R T I E S 9 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 BRX FRT KIM KRG PECO REGROIC SITC UE $75,000 $80,000 $85,000 $90,000 $95,000 $100,000 $105,000 $110,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 220,000 240,000 3 -M ile M ed ia n
Slide 10: Portfolio Has Favorable Supply/Demand Ratio
U R B A N E D G E P R O P E R T I E S 10 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 UEFRT REGKIM KRG SITC ROIC BRX PECO 30 35 40 45 50 55 60 65 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 2,750 R et ai l G LA p er H ou se h ol d ( S u p p ly ) Households per Square Mile (Demand) P
Slide 11: Top Tenants – Dominant Operators With Financial Strength
U R B A N E D G E P R O P E R T I E S 11 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Top 15 Tenants – Dominant Operators With Financial Strength By Annualized Base Rent Data as of June 30, 2023 proforma to include SNO as of June 30, 2023 A- Weighted
Slide 12: Portfolio ABR Composition by Tenant Category
U R B A N E D G E P R O P E R T I E S 12 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Grocer(1) 19% Discounter (Burlington, TJX, etc.) 10% Home Improvement 10% Other necessity- based and services(2) 8% Warehouse/ Non-retail 6% Medical office 4% Pet Stores 3% Restaurants 9% Fitness 4%
Slide 13: Necessity-Based Tenancy Results in Stable Cash Flows
U R B A N E D G E P R O P E R T I E S 13 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Necessity-Based Tenancy Results in Stable Cash Flows Industrial/Self-Storage 7% Lodi Route 17 Grocery Anchored Assets 65% Bergen Town Center Home Improvement Anchored 10% West Branch Commons Other As
Slide 14: Business Update
U R B A N E D G E P R O P E R T I E S 14 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 BUSINESS UPDATE
Slide 15: The Retail Market
U R B A N E D G E P R O P E R T I E S 15 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 The Retail Market 125 new stores in 2024 500-600 new stores in 5 years 200 new restaurants by 2025 Tripling the store count by 2030 Entering NY Metro market +300 expected in 2 years 75 – 100 over the
Slide 16: U.S. Retail Store Openings
U R B A N E D G E P R O P E R T I E S 16 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 U.S. Retail Store Openings Note: 2023 figures as of August 18 Source: Coresight Research Amidst challenges in the commercial real estate sector, retailers are showcasing their resilience with plans t
Slide 17: Declining Retail Supply Has Helped Drive Higher Occupancy and Rent Growth
U R B A N E D G E P R O P E R T I E S 17 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Declining Retail Supply Has Helped Drive Higher Occupancy and Rent Growth 112 112 75 34 21 19 20 25 29 31 31 28 21 17 14 13 15 95.3% 88% 89% 90% 91% 92% 93% 94% 95% 96% 0 20 40 60 80 100 120 2006 200
Slide 18: New Retail Construction in The Northeast is Virtually Non-existent
U R B A N E D G E P R O P E R T I E S 18 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 New Retail Construction in The Northeast is Virtually Non-existent 92.0% 92.5% 93.0% 93.5% 94.0% 94.5% 95.0% 95.5% 96.0% 0 2 4 6 8 10 12 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q
Slide 19: Upgraded Tenant Roster
U R B A N E D G E P R O P E R T I E S 19 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Upgraded Tenant Roster UPGRADED UE has a proven track record of successfully re-leasing anchor spaces from bankrupt tenants. Toys “R” Us and Kmart boxes that represented 4% of ABR have been re-leased
Slide 20: Leases Signed Not Yet Open Driving NOI Growth
U R B A N E D G E P R O P E R T I E S 20 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 » Approximately $28M of future annual gross rent from the SNO pipeline will provide significant earnings growth » National, regional, and industrial tenants represent ~83% of the SNO pipeline » UE’s
Slide 21: Record 1M sf of New Leases in 2022 With Diverse Mix of Tenants
U R B A N E D G E P R O P E R T I E S 21 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Record 1M sf of New Leases in 2022 With Diverse Mix of Tenants 2023 Executed Leases
Slide 22: Leasing Pipeline Update
U R B A N E D G E P R O P E R T I E S 22 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Leasing Pipeline Update 400K sf 300K sf +40% BED BATH & BEYOND RE-LEASING PLAN Note: Does not include three Harmons recaptured totalling 18K sf Pipeline 4 Anchor Leases 188K sf Anchor 100K sf Shops E
Slide 23: Development
U R B A N E D G E P R O P E R T I E S 23 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 DEVELOPMENT
Slide 24: Redevelopment Projects
I N V E S T O R P R E S E N T A T I O N 24 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 U R B A N E D G E P R O P E R T I E S 2 Description Target Stabilization Incurred as of 6/30/23 Estimated Gross Cost ($000s)Projects Ground-up development for a medical office building for Hackensa
Slide 25: Bruckner Commons | Bronx, NY
U R B A N E D G E P R O P E R T I E S 25 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Bruckner Commons | Bronx, NY BEFORE AFTER Re-tenanting former Kmart box with Target Target Stabilization 2Q25
Slide 26: Bruckner Commons | Bronx, NY
U R B A N E D G E P R O P E R T I E S 26 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Bruckner Commons | Bronx, NY
Slide 27: Shops at Bruckner | Bronx, NY
U R B A N E D G E P R O P E R T I E S 27 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Shops at Bruckner | Bronx, NY AFTER BEFORE Phase B: Re-tenanting with Aldi and Lot Less Target Stabilization 4Q23
Slide 28: Shops at Bruckner | Bronx, NY
U R B A N E D G E P R O P E R T I E S 28 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Shops at Bruckner | Bronx, NY
Slide 29: Las Catalinas | Caguas, Puerto Rico
U R B A N E D G E P R O P E R T I E S 29 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Las Catalinas | Caguas, Puerto Rico AFTER BEFORE Re-tenanting former Kmart box with Sector Sixty6 Target Stabilization 3Q23
Slide 30: Las Catalinas | Caguas, Puerto Rico
U R B A N E D G E P R O P E R T I E S 30 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Las Catalinas | Caguas, Puerto Rico
Slide 31: Huntington Commons | Huntington, NY
U R B A N E D G E P R O P E R T I E S 31 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Huntington Commons | Huntington, NY AFTER BEFORE Phase B: Backfilling the relocated Marshalls box with Burlington, as well as additional center repositioning and renovations Target Stabilization 2Q24
Slide 32: Huntington Commons | Huntington, NY
U R B A N E D G E P R O P E R T I E S 32 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Huntington Commons | Huntington, NY
Slide 33: The Outlets at Montehiedra | San Juan, Puerto Rico
U R B A N E D G E P R O P E R T I E S 33 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 The Outlets at Montehiedra | San Juan, Puerto Rico Phases C & D: Demising and re-tenanting former Kmart box with Ralph’s Food Warehouse, Urology Hub and T.J. Maxx Target Stabilization 3Q24 BEFORE AFT
Slide 34: The Outlets at Montehiedra | San Juan, Puerto Rico
U R B A N E D G E P R O P E R T I E S 34 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 The Outlets at Montehiedra | San Juan, Puerto Rico
Slide 35: Bergen Town Center Residential Unit Site Plan Approved on 8 Acres
U R B A N E D G E P R O P E R T I E S 35 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Bergen Town Center Residential 456 Unit Site Plan Approved on 8 Acres
Slide 36: Bergen Town Center – Neighborhood Residential Community
U R B A N E D G E P R O P E R T I E S 36 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Bergen Town Center – Neighborhood Residential Community
Slide 37: Opened in 2023
U R B A N E D G E P R O P E R T I E S 37 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Opened in 2023 ~$7 million in annualized gross rent commenced through June 30, 2023 Broomall Commons Carlstadt Commons The Outlets at Montehiedra Plaza at Cherry HillBriarcliff CommonsCambridge
Slide 38: Acquisitions & Dispositions
U R B A N E D G E P R O P E R T I E S 38 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 ACQUISITIONS & DISPOSITIONS
Slide 39: Acquisition/Disposition Strategy
U R B A N E D G E P R O P E R T I E S 39 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 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
Slide 40: Liquidity & Balance Sheet
U R B A N E D G E P R O P E R T I E S 40 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 LIQUIDITY & BALANCE SHEET
Slide 41: Unique Secured Debt Strategy Aligned With Opportunistic Business Plan
U R B A N E D G E P R O P E R T I E S 41 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Unique Secured Debt Strategy Aligned With Opportunistic Business Plan » Strong balance sheet uniquely positioned with indebtedness solely attributable to non-recourse single-asset mortgages » Strateg
Slide 42: Successfully Refinanced Las Catalinas Mall
U R B A N E D G E P R O P E R T I E S 42 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Successfully Refinanced Las Catalinas Mall » Eliminated $44.5 million of debt by exercising discounted payoff option of $72.5 million on prior mortgage Executed a new 10-year $82 million mortgage a
Slide 43: Liquidity and Debt Maturity Profile
U R B A N E D G E P R O P E R T I E S 43 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 • Total liquidity of ~$900 million, comprised of $93 million of cash and $800 million undrawn line of credit • Current outstanding indebtedness is made up of 34 individual non-recourse mortgages aggr
Slide 44: Environmental, Social, & Governance
U R B A N E D G E P R O P E R T I E S 44 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 ENVIRONMENTAL, SOCIAL, & GOVERNANCE
Slide 45: ESG Corporate Responsibility Strategy
U R B A N E D G E P R O P E R T I E S 45 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 ESG Corporate Responsibility Strategy Set goal to reduce Scope 1 and Scope 2 GHG emissions by 30% before 2025 and by 50% before 2030 from a 2015 base year Investing in health and wellness programs, n
Slide 46: Forward-Looking Statements
U R B A N E D G E P R O P E R T I E S 46 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Forward-Looking Statements 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
Slide 47: Non-GAAP Financial Measures
U R B A N E D G E P R O P E R T I E S 47 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 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 Compan
Slide 48: Non-GAAP Financial Measures
U R B A N E D G E P R O P E R T I E S 48 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Non-GAAP Financial Measures • EBITDAre and Adjusted EBITDAre: EBITDAre and Adjusted EBITDAre are supplemental, non-GAAP measures utilized by us in various financial ratios. The White Paper on EBITDAr
Slide 49: Reconciliation: Net Income to FFO and FFO as Adjusted
U R B A N E D G E P R O P E R T I E S 49 I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 2 3 Reconciliation: Net Income to FFO and FFO as Adjusted 2023 Guidance Per Diluted Share(1)Guidance 2023E HighLowHighLow(in thousands, except per share amounts) $0.05$0.02$6,200$2,200Net income Less net
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