Urban Edge Properties · NYSE:UE
Urban Edge Properties — Investor Presentation (March 2022)
48 slides from Urban Edge Properties's investor presentation, Mar 1, 2022
Slide 1: March 2022 Investor Presentation
U R B A N E D G E P R O P E R T I E S 1M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N MARCH 2022 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 2M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Portfolio overview: 75 properties with 17.2M sf total GLA including 1.3M sf industrial GLA. ~90% of total portfolio value and NOI is from properties located in the DC to Boston corridor Asset quality: ou
Slide 3: Highlights
U R B A N E D G E P R O P E R T I E S 3M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Fourth quarter 2021 results: • FFO as Adjusted was $0.27/share, up 18% compared to 4Q20 • SP NOI including redevelopment increased by 16% vs. 4Q20 • SP leased occupancy increased 120 bps to 94.1% from 3Q
Slide 4: Urban Edge Team
U R B A N E D G E P R O P E R T I E S 4M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Cecilia Li SVP, Chief Information Officer Leigh Lyons SVP, Leasing Sandi Danick SVP, Leasing Paul Schiffer SVP, Leasing Chad Bernstein SVP, Portfolio Management and Strategy Dan Reilly SVP, Property Acco
Slide 5: Portfolio Concentrated in DC to Boston Corridor
U R B A N E D G E P R O P E R T I E S 5M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Persons Per Sq. Mile ■ less than 150 ■ 150 – 250 ■ 250 – 750 ■ 750 – 1500 ■ 1500 – 3000 ■ 3000 – 5000 ■ 5000 – 7500 ■ 7500 or more o ~90% of NOI generated from properties situated in the DC to Boston cor
Slide 6: First-Ring Suburbs of NY Metro
U R B A N E D G E P R O P E R T I E S 6M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Persons Per Sq. Mile ■ less than 150 ■ 150 – 250 ■ 250 – 750 ■ 750 – 1500 ■ 1500 – 3000 ■ 3000 – 5000 ■ 5000 – 7500 ■ 7500 or more o Neighborhood shopping centers benefiting from desire for more spacious
Slide 7: Top Tenants by Annualized Base Rent
U R B A N E D G E P R O P E R T I E S 7M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Top 15 Tenants by Annualized Base Rent Tenant S&P Rating # of Stores Total Square Feet (000s) ABR in Millions % of Total ABR The Home Depot, Inc. A 6 809 $15.7 5.8% The TJX Companies, Inc. A 22 715 14.3
Slide 8: Leasing
Leasing &: EDGE PROPERTIES
Slide 9: Retailers Expanding
U R B A N E D G E P R O P E R T I E S 9M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Retailers Expanding Operating ~1,100 storeswith long-termtargetof 2,500+ Operating ~1,300 stores and is targeting 1,500 to 1,700 stores in the next few years Opened ~200 locations in 2021 and plans to ad
Slide 10: Cash Flow Stream is Stronger from New Anchors
U R B A N E D G E P R O P E R T I E S 10M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Cash Flow Stream is Stronger from New Anchors Percentage of Portfolio Value by Asset Type Grocery Anchored Assets 60% Bergen Town Center Industrial/Self-Storage 7% Lodi Route 17 Home Improvement Anchore
Slide 11: Foot traffic at UE grocery-anchored centers
U R B A N E D G E P R O P E R T I E S 11M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N 500 550 600 650 700 750 800 850 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 T h ou sa n d s Average Foot Traffic ~60% of Portfolio Value Grocery-Anchored Average Grocer Sales(2) ~$820/sf
Slide 12: Same-Property Occupancy
U R B A N E D G E P R O P E R T I E S 12M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Same-Property Occupancy 98.0% 96.3% 93.4% 93.4% 92.7% 93.0% 91.8% 91.1% 92.1% 92.9% 94.1% 96.0% 98.0% 97.0% 95.6% 92.6% 92.1% 91.3% 90.9% 89.7% 89.5% 89.2% 89.4% 90.3% 2016-2017 2018 4Q19 1Q20 2Q20 3Q20
Slide 13: Leases Executed But Not Yet Rent Commenced
U R B A N E D G E P R O P E R T I E S 13M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N 4.1 12.1 14.4 16.9 17.8 2.3 4.5 4.7 4.7 4.7 $0 $5 $10 $15 $20 $25 2022 2023 2024 2025 2026 $16.6M $19.1M Leases Executed But Not Yet Rent Commenced $6.4M $21.6M $22.5M Year Leases included in redevelopm
Slide 14: Large Anchor Leasing Update
U R B A N E D G E P R O P E R T I E S 14M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Large Anchor Leasing Update Property New Tenant/Prospect SF Stabilization/ Status Executed: Salem Fun City 39,000 4Q21 Briarcliff Commons Uncle Giuseppe’s 38,000 1Q22 Broomall Commons Amazon Fresh 45,00
Slide 15: Marlton Commons Development
U R B A N E D G E P R O P E R T I E S 15M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Marlton Commons Development
Slide 16: Development Update
U R B A N E D G E P R O P E R T I E S 16M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N $219 million of active projects as of December 31,2021: $147 million remains to be funded; expecting 8% unlevered yield Development Update Active Project Est Gross Cost ($000s) Target Stabilization Stat
Slide 17: Bergen Town Center | Paramus, NJ
U R B A N E D G E P R O P E R T I E S 17M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Bergen Town Center | Paramus, NJ Ground-up development of an 80,000-sf medical office building for Hackensack Meridian Health on vacant outparcel facing Route 4 Target Stabilization 2Q25
Slide 18: Bergen Town Center | Paramus, NJ
U R B A N E D G E P R O P E R T I E S 18M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Bergen Town Center | Paramus, NJ Retenant former Century 21 box with Kohl’s Target Stabilization 2Q23
Slide 19: Bergen Town Center | Paramus, NJ
U R B A N E D G E P R O P E R T I E S 19M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Bergen Town Center | Paramus, NJ
Slide 20: Huntington Commons | Huntington, NY
U R B A N E D G E P R O P E R T I E S 20M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Huntington Commons | Huntington, NY BEFORE AFTER Phase A: Retenanting former Kmart box with ShopRite and Marshalls relocation Target Stabilization 3Q22
Slide 21: Huntington Commons | Huntington, NY
U R B A N E D G E P R O P E R T I E S 21M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Phase B: Re-tenant relocated Marshalls box, small shops and upgrade façade, parking, and landscaping Target Stabilization 4Q23 AFTER Huntington Commons | Huntington, NY AFTER BEFORE
Slide 22: Huntington Commons | Huntington, NY
U R B A N E D G E P R O P E R T I E S 22M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N AFTER Huntington Commons | Huntington, NY
Slide 23: Las Catalinas | Caguas, Puerto Rico
U R B A N E D G E P R O P E R T I E S 23M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Las Catalinas | Caguas, Puerto Rico AFTER BEFORE Retenanting 122,000± sf Kmart box with Sector Sixty6 Target Stabilization 2Q23
Slide 24: Las Catalinas | Caguas, Puerto Rico
U R B A N E D G E P R O P E R T I E S 24M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Las Catalinas | Caguas, Puerto Rico
Slide 25: Lodi | Lodi, NJ
U R B A N E D G E P R O P E R T I E S 25M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Lodi | Lodi, NJ Converted former National Wholesale Liquidators to a hybrid industrial and retail facility for AAA Wholesale Target Stabilization 2Q22 AFTER BEFORE
Slide 26: Lodi | Lodi, NJ
U R B A N E D G E P R O P E R T I E S 26M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Lodi | Lodi, NJ
Slide 27: Briarcliff Commons | Uncle Giuseppe's
U R B A N E D G E P R O P E R T I E S 27M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Briarcliff Commons ǀ Uncle Giuseppe’s Opened January 2022
Slide 28: Briarcliff Commons | Uncle Giuseppe's
U R B A N E D G E P R O P E R T I E S 28M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Phase A: Retenant former ShopRite with Uncle Giuseppe’s Marketplace Opened January 2022 AFTER BEFORE Briarcliff Commons ǀ Uncle Giuseppe’s
Slide 29: Briarcliff Commons | Uncle Giuseppe's
U R B A N E D G E P R O P E R T I E S 29M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Briarcliff Commons ǀ Uncle Giuseppe’s
Slide 30: Hudson Mall | Jersey City, NJ
U R B A N E D G E P R O P E R T I E S 30M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Hudson Mall | Jersey City, NJ AFTER BEFORE Retenanting former Toys “R” Us box with national retailer Target Stabilization 3Q23
Slide 31: Hudson Mall | Jersey City, NJ
U R B A N E D G E P R O P E R T I E S 31M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Hudson Mall | Jersey City, NJ
Slide 32: Shops at Bruckner | Bronx, NY
U R B A N E D G E P R O P E R T I E S 32M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Shops at Bruckner | Bronx, NY Phase A: Relocating Jimmy Jazz, adding Five Below Target Stabilization 4Q22 Phase B: Retenanting former Fallas space with Aldi and national tenant Target Stabilization 2Q23
Slide 33: Shops at Bruckner | Bronx, NY
U R B A N E D G E P R O P E R T I E S 33M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Shops at Bruckner | Bronx, NY
Slide 34: Broomall Commons | Broomall, PA
U R B A N E D G E P R O P E R T I E S 34M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Broomall Commons | Broomall, PA Phase A: Retenant 45,000 sf of former Giant Food space with Amazon Fresh Target Stabilization 2Q22 AFTER BEFORE
Slide 35: Broomall Commons | Broomall, PA
U R B A N E D G E P R O P E R T I E S 35M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Broomall Commons | Broomall, PA
Slide 36: Acquisitions Update
U R B A N E D G E P R O P E R T I E S 36M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Acquisitions Update
Slide 37: Acquisition/Disposition Strategy
U R B A N E D G E P R O P E R T I E S 37M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Opportunistically target value-add assets • Assets with attractive yield and/or potential for value creation through leasing, redevelopment and repurposing • Focus on larger-scale properties, distressed
Slide 38: Recent Investment Activity
38M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N $249 million of acquisitions in 2021: • Woodmore Towne Centre, a 712,000-sf grocery-anchored regional shopping center in Glenarden, MD ($193M) • Two industrial assets adjacent to our existing 1 million sf industrial park located in East Han
Slide 39: Woodmore Towne Centre | Glenarden, MD
U R B A N E D G E P R O P E R T I E S 39M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Woodmore Towne Centre ǀ Glenarden, MD Acquired December 2021
Slide 40: Woodmore Towne Centre Highlights
U R B A N E D G E P R O P E R T I E S 40M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Woodmore Towne Centre Highlights Grocery anchored market dominant retail destination Strong and stable income security Dominant tenant lineup <2 miles from the new University of Maryland capital region
Slide 41: Liquidity and Balance Sheet
Liquidity and Balance Sheet
Slide 42: Liquidity and Balance Sheet: Maturity Profile
U R B A N E D G E P R O P E R T I E S 42M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Maturity Profile (Balloon payments only, $ millions) $81 $329 $144 $23 $218 $260 $265 $38 $101 $117 $0 $100 $200 $300 $400 2022 2023 2024 2025 2026 2027 2028 2029 2030 Thereafter 2.1% 3.7% 3.1% 4.2% 4.2
Slide 43: Earnings Growth Drivers
U R B A N E D G E P R O P E R T I E S 43M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Earnings Growth Drivers Category Short-term (one year) Medium-term (2-3 years) Long-term (>3 years) Organic rent growth Contractual rent bumps / occupancy gains / renewals with positive spreads Delivery
Slide 44: Our Commitment
U R B A N E D G E P R O P E R T I E S 44M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N 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, t
Slide 45: 2022 ESG Focus Areas
U R B A N E D G E P R O P E R T I E S 45M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N Priorities Include Creating and implementing an environmental management system framework to help us achieve our environmental goals Improving tenant engagement by implementing new tenant communication
Slide 46: Forward-Looking Statements
U R B A N E D G E P R O P E R T I E S 46M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N 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
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 47M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N 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 48: Non-GAAP Definitions
U R B A N E D G E P R O P E R T I E S 48M A R C H 2 0 2 2 I N V E S T O R P R E S E N T A T I O N • 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 the reporting periods bein
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