Urban Edge Properties · NYSE:UE
Urban Edge Properties — Investor Presentation (March 2023)
45 slides from Urban Edge Properties's investor presentation, Mar 6, 2023
Slide 1: March 2023 Investor Presentation
MARCH 2023 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 M A R C H 2 0 2 3 About Urban Edge Data as of December 31, 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 is from
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 M A R C H 2 0 2 3 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 – 1500
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 M A R C H 2 0 2 3 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 ■ 3000 – 5
Slide 5: Fourth 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 M A R C H 2 0 2 3 • FFO as Adjusted was $0.33/share in 4Q22, up $0.06/share or 22% compared to 4Q21 • Executed 22 new leases totaling 576,000 sf in 4Q22 and 69 new leasing totaling over 1M sf in 2022, both new records • To
Slide 6: 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 M A R C H 2 0 2 3 2023 Outlook $1.11 $1.17 Same Property NOI with Redevelopment Growth (1.0%) 2.0% Issued guidance for fiscal year 2023 as part of our fourth quarter earnings release. Selected Assumptions Operating FFO as
Slide 7: Urban Edge Team
Urban Edge Team Scott Auster EVP, 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 M A R C H 2 0 2 3 Top 20 Tenants By Annualized Base Rent Data as of December 31, 2022 Tenant S&P Rating # of Stores Total Square Feet (000s) ABR in Millions % of Total ABR The Home Depot A 6 809 $16 5% The TJX Companies A
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 M A R C H 2 0 2 3 Portfolio ABR Composition by Tenant Category Data as of December 31, 2022 (1) Grocer includes Warehouse Clubs, Target and Walmart (2) Other necessity-based and services includes auto, beauty, banks, educa
Slide 10: Necessity-Based Tenancy Results in Stable Cash Flows
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 M A R C H 2 0 2 3 Necessity-Based Tenancy Results in Stable Cash Flows Note: Percentages shown reflect portfolio value by asset type Industrial/Self-Storage 7% Lodi Route 17 Grocery Anchored Assets 65% Bergen Town Center
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 M A R C H 2 0 2 3 LEASING
Slide 12: Retail Update
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 M A R C H 2 0 2 3 Retail Update Nearly 100% of our retail assets have tenants with omnichannel offerings(3) (1) Sourced from a 4Q22 shopping center vacancy report by Cushman & Wakefield (2) Data from Forrester study that
Slide 13: Record Million sf of New 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 M A R C H 2 0 2 3 Record 1 Million sf of New Leases Executed in 2022
Slide 14: Transforming Kmart Boxes
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 M A R C H 2 0 2 3 Transforming Kmart boxes and our properties ShopRite and Marshalls Huntington Commons Huntington, NY Opened 4Q22 Enhanced the value of our assets through the re-tenanting of vacant Kmart boxes with a vib
Slide 15: Same-Property Occupancy
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 M A R C H 2 0 2 3 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% 95.4% 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 16: Leases Executed But Not Yet Rent Commenced
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 M A R C H 2 0 2 3 Leases Executed But Not Yet Rent Commenced CityMD Morris Plains, NJ Est Stabilization 3Q23 Approximately $29M of future annual gross rent from leases executed but not yet rent commenced will provide sign
Slide 17: Development
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 M A R C H 2 0 2 3 DEVELOPMENT
Slide 18: Development Update
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 M A R C H 2 0 2 3 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 Meridian Heal
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 M A R C H 2 0 2 3 Bruckner Commons | Bronx, NY BEFORE AFTER Re-tenanting former Kmart box with Target Target Stabilization 2Q25
Slide 20: Bruckner Commons, Bronx, NY
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 M A R C H 2 0 2 3 Bruckner Commons | Bronx, NY
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 M A R C H 2 0 2 3 Bergen Town Center | Paramus, NJ Phase A: Re-tenant former Century 21 box with Kohl’s Opened October 2022 Phase B: Ground-up development of an 80,000 sf medical office building for Hackensack Meridian He
Slide 22: Bergen Town Center, Paramus, NJ
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 M A R C H 2 0 2 3 Bergen Town Center | Paramus, NJ
Slide 23: Las Catalinas, Caguas, Puerto Rico
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 M A R C H 2 0 2 3 Las Catalinas | Caguas, Puerto Rico AFTER BEFORE Re-tenanting 122,000± sf Kmart box with Sector Sixty6 Target Stabilization 2Q23
Slide 24: Las Catalinas, Caguas, Puerto Rico
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 M A R C H 2 0 2 3 Las Catalinas | Caguas, Puerto Rico
Slide 25: The Outlets at Montehiedra, San Juan
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 M A R C H 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 , T.J. Maxx and Urology Hub. Target Stabilization 2Q24 - 3Q24 BEFOR
Slide 26: Huntington Commons, Huntington, NY
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 M A R C H 2 0 2 3 Huntington Commons | Huntington, NY BEFORE AFTER Phase A: Re-tenanting former Kmart box with ShopRite and Marshalls relocation Opened in 4Q22
Slide 27: Huntington Commons, Huntington, NY
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 M A R C H 2 0 2 3 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 28: Huntington Commons, Huntington, NY
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 M A R C H 2 0 2 3 Huntington Commons | Huntington, NY
Slide 29: The Shops at Bruckner, Bronx, NY
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 M A R C H 2 0 2 3 The Shops at Bruckner | Bronx, NY AFTER BEFORE Phase B: Re-tenanting former Fallas space with Aldi and Lot Less Target Stabilization 4Q23 Phase A: Re-tenanted with Five Below and relocated Jimmy Jazz Ope
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 M A R C H 2 0 2 3 The Shops at Bruckner | Bronx, NY
Slide 31: Other Projects
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 M A R C H 2 0 2 3 Other Projects Active Project Est Gross Cost ($000s) Target Stabilization Status Marlton Commons 7,300 3Q24 Redeveloping Friendly’s with new 10,700± sf multi-tenant pad (First Watch and Cava executed) Bu
Slide 32: Opened in 2022
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 M A R C H 2 0 2 3 Opened in 2022 Briarcliff Commons Newington Commons Tonnelle Commons Walnut Creek – Mt. Diablo Bergen Town Center Briarcliff Commons
Slide 33: Acquisitions Update
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 M A R C H 2 0 2 3 ACQUISITIONS UPDATE
Slide 34: Acquisition/Disposition Strategy
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 M A R C H 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 lar
Slide 35: Liquidity and Balance Sheet
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 M A R C H 2 0 2 3 LIQUIDITY AND BALANCE SHEET
Slide 36: Liquidity and Balance Sheet
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 M A R C H 2 0 2 3 Liquidity and Balance Sheet • Total liquidity of ~$929 million, comprised of $129 million of cash and $800 million available under our line of credit • Outstanding indebtedness is made up of 34 individua
Slide 37: Environmental, Social, Governance (ESG)
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 M A R C H 2 0 2 3 ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG)
Slide 38: Environmental, Social and Governance (ESG)
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 M A R C H 2 0 2 3 Environmental, Social and Governance (ESG) We are dedicated to upholding sustainable operations and are confident that our long-term sustainability objectives will benefit all our stakeholders. ENVIRONME
Slide 39: ESG Focus Areas
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 M A R C H 2 0 2 3 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 biggest
Slide 40: 2023 Guidance
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 M A R C H 2 0 2 3 2023 Guidance The Company's 2023 earnings guidance anticipates net income of $0.27 to $0.33 per diluted share, FFO of $1.10 to $1.16 per diluted share, and FFO as Adjusted of $1.11 to $1.17 per diluted s
Slide 41: 2023 Guidance
41U 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 M A R C H 2 0 2 3 2023 Guidance Guidance 2023E Per Diluted Share (in thousands, except per share amounts) Low High Low High Net income $33,200 $40,200 $0.27 $0.33 Less net (income) loss attributable to noncontrolling inte
Slide 42: 42U R B A N E D G M A R C H Certain
42U 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 M A R C H 2 0 2 3 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 Exchange Act
Slide 43: Non-GAAP Financial Measures
43U 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 M A R C H 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 Company's
Slide 44: Non-GAAP Financial Measures
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 M A R C H 2 0 2 3 Non-GAAP Financial Measures • Same-property NOI: The Company provides disclosure of NOI on a same-property basis, which includes the results of properties that were owned and operated for the entirety of
Slide 45: Slide 45
Urban Edge Properties — Investor Presentation (March 2023) on 6ix