Urban Edge Properties · NYSE:UE

Urban Edge Properties — Investor Presentation (May 2018)

35 slides from Urban Edge Properties's investor presentation, May 31, 2018

  1. Slide 1: Investor Presentation May 2018

    INVESTOR PRESENTATION URBANEDGE MAY 2018

  2. Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures

    FOWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES Certain statements contained in this Presentation constitute forward-looking statements as such term is defi ned in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forw

  3. Slide 3: How Are We Different?

    HOW ARE WE DIFFERENT? 1. Our real estate is concentrated in the NY metropolitan area • 51 properties valued at $3.3 billion represent ~ 80% of our total assets(1) • Impossible to replicate as comparable assets rarely trade • Highest population density in the country • Anchored by high-volume, value

  4. Slide 4: Portfolio Concentrated in DC to Boston Corridor

    PORTFOLIO CONCENTRATED IN DC TO BOSTON CORRIDOR • 75 of the Company’s 88(1) properties representing ~ 91% of value are situated in the DC to Boston corridor • Most densely populated region in the US • Population of 50 million • 931 people per square mile, over 10x the US average (1) As of May 1, 201

  5. Slide 5: New York Metro: 80% of Total Value

    NEW YORK METRO: 51 PROPERTIES, 80% OF TOTAL VALUE • New York metro area represents ~ 80% of value • 51 properties • 10.8 million SF 5

  6. Slide 6: Completed Projects Since Spin Creating $150 Million of Value

    COMPLETED 13 PROJECTS SINCE SPIN CREATING $150 MILLION OF VALUE (1) Hackensack Commons, East Hanover Warehouses, Freeport Commons, Freeport, NY Walnut Creek, CA Hackensack, NJ East Hanover, NJ Home Depot expanded into Anthropologie replaced Replaced former Pathmark with Complete renovation; increase

  7. Slide 7: Creating ~$100M of Additional Value From Projects

    CREATING ~$100M OF ADDITIONAL VALUE FROM 21 PROJECTS Expansion & Redevelopment Before After Before After Bruckner Commons, Bronx, NY Bergen Town Center, Paramus, NJ Anchor Repositioning Before After Before After Goucher Commons, Towson, MD Briarcliff Commons, Morris Plains, NJ Outparcel Development/

  8. Slide 8: Redevelopment Projects

    REDEVELOPMENT PROJECTS Dollars in thousands Est. Gross Est. Value Target Property Cost(1) Yield(1) Creation(2) Stabilization(1) Project Description Bergen Town Center $84,200 8% $43,200 2018-2020 Adding Best Buy, a national discounter and 4 restaurants Yonkers Gateway 14,000 12% 16,600 2019 Replacin

  9. Slide 9: Future Redevelopment Projects - $500M+ of Potential Investment

    FUTURE REDEVELOPMENT PROJECTS - $500M+ OF POTENTIAL INVESTMENT Bruckner Commons, Bronx, NY Yonkers Gateway, Yonkers, NY Hudson Mall, Jersey City, NJ Huntington Commons, Huntington, NY Brunswick Commons, East Brunswick, NJ Manalapan Commons, Manalapan, NJ 9 The Plaza at Woodbridge, Woodbridge, NJ The

  10. Slide 10: Balance Sheet: Significant Liquidity & Well-Laddered Maturities

    BALANCE SHEET: SIGNIFICANT LIQUIDITY & WELL-LADDERED MATURITIES Key Leverage Metrics(1) Liquidity(1) Development Commitments(1) Remaining to be funded Net Debt Cash Position(2) $528M to Adjusted EBITDA 4.8x Active Projects $100M Line of Credit Capacity $600M Adjusted EBITDA to Pipeline Projects $90M

  11. Slide 11: Board and Management Team

    BOARD AND MANAGEMENT TEAM BOARD OF TRUSTEES MANAGEMENT TEAM TRUSTEE BACKGROUND NAME BACKGROUND Jeff rey Olson Chairman and CEO, Urban Edge Properties Jeff rey Olson CEO of Equity One (2006-2014) Chairman and CEO Steven Roth Chairman and CEO, Vornado Realty Trust Robert Minutoli EVP - Retail at Vorna

  12. Slide 12: Results Since Spin

    RESULTS SINCE SPIN 2015 2016 2017 1Q18 FFO as Adjusted per share $1.21 $1.27 $1.34 $0.33 Dividend per share 0.80 0.82 0.88 0.22 Same property cash NOI growth 4.1% 4.1% 4.7% 2.4% Same property cash NOI growth w/redev 4.0% 3.6% 5.4% 2.7% Same property occupancy 97.2% 98.0% 98.3% 98.2% Cash leasing spr

  13. Slide 13: Positioned for Growth in a Changing Retail Environment

    POSITIONED FOR GROWTH IN A CHANGING RETAIL ENVIRONMENT 1. Redevelop, renovate and remerchandise existing assets • ~ $300 million active and pipeline projects at an 8% return • $500 million+ of future projects • Retenant nine Toys "R" Us boxes(1) 2. Recapture below market leases • Completed early buy

  14. Slide 14: Appendix

    APPENDIX

  15. Slide 15: Bergen Town Center, Paramus, NJ

    BERGEN TOWN CENTER PARAMUS, NJ Project Description ProjectExpanding andDescription remerchandising Bergen Town Center, our largest property and one of the Value Creation most productive outlet/value-oriented centers in the country; expanding food off erings EstimatedIncremental Gr NOIoss Cost $84.2M

  16. Slide 16: Yonkers Gateway, Yonkers, NY

    YONKERS GATEWAY YONKERS, NY Project Description Value Creation In lease for 100% of former Pathmark (under construction). EstimatedIncremental Gr NOIoss Cost $14.0M$ EstimatedEstimated YieldCap Rate % 12% Est.Incremental Value Creation Value $16.6M$ TargetCost Stabilization $ 2019 Estimated Stabiliz

  17. Slide 17: Bruckner Commons, Bronx, NY

    BRUCKNER COMMONS BRONX, NY Project Description Completely renovating and releasing three buildings comprising approximately Estimated Gross Cost $67.3M 79k sf of retail, 25k sf of offi ce and a 30k sf supermarket; ShopRite and Estimated Yield 6% Burlington opening summer of 2018; T-Mobile and Boston

  18. Slide 18: Outlets at Montehiedra, San Juan, PR

    OUTLETS AT MONTEHIEDRA SAN JUAN, PR Project Description Completely renovated enclosed regional mall built in 1994 and converted it into a Estimated Gross Cost $28.2M hybrid off ering outlets, off -price, entertainment and food uses; 57% of the total 117k Estimated Yield 12% sf of new leasing is comp

  19. Slide 19: Tonnelle Commons, North Bergen, NJ

    TONNELLE COMMONS NORTH BERGEN, NJ Project Description Value Creation ~ 102k sf self-storage facility under construction on an underutilized EstimatedIncremental Gr NOIoss Cost $12.8M$ portion of the parking lot. EstimatedEstimated YieldCap Rate % 8% Est.Incremental Value Creation Value $$6.0M Target

  20. Slide 20: The Plaza at Cherry Hill, Cherry Hill, NJ

    THE PLAZA AT CHERRY HILL CHERRY HILL, NJ Project Description Value Creation Renovating center to maximize leasability (in design). EstimatedIncremental Gr NOIoss Cost $24.4M$ EstimatedEstimated YieldCap Rate % 7% Est.Incremental Value Creation Value $$5.0M TargetCost Stabilization $ 2020 Estimated S

  21. Slide 21: The Plaza at Woodbridge, Woodbridge, NJ

    THE PLAZA AT WOODBRIDGE WOODBRIDGE, NJ Project Description Value Creation Constructing ~ 60k sf self-storage facility in unused basement space. EstimatedIncremental Gr NOIoss Cost $$5.1M EstimatedEstimated YieldCap Rate % 11% Est.Incremental Value Creation Value $$3.9M TargetCost Stabilization $ 202

  22. Slide 22: Kearny Commons, Kearny, NJ

    KEARNY COMMONS KEARNY, NJ Project Description Value Creation Expanding center by 20k +/- sf (50% leased to Ulta) and an outparcel for EstimatedIncremental Gr NOIoss Cost $$7.6M Starbucks (executed). EstimatedEstimated YieldCap Rate % 9% Est.Incremental Value Creation Value $$3.7M TargetCost Stabiliz

  23. Slide 23: Garfield Commons, Garfield, NJ

    GARFIELD COMMONS GARFIELD, NJ Project Description Value Creation Adding 18k sf of shop space adjacent to Walmart (50% in lease). EstimatedIncremental Gr NOIoss Cost $$5.5M EstimatedEstimated YieldCap Rate % 9% Est.Incremental Value Creation Value $$3.4M TargetCost Stabilization $ 4Q19 Estimated Stab

  24. Slide 24: Marlton Commons, Marlton, NJ

    MARLTON COMMONS MARLTON, NJ Project Description Value Creation Constructed new buildings for Shake Shack and honeygrow (opened 1Q18). EstimatedIncremental Gr NOIoss Cost $$3.1M EstimatedEstimated YieldCap Rate %10% Est.Incremental Value Creation Value $$2.6M TargetCost Stabilization $ 2Q18 Estimated

  25. Slide 25: Hubbards Commons, West Babylon, NY

    HUBBARDS COMMONS WEST BABYLON, NY Project Description Value Creation Adding 10k sf building on adjacent parcel (20% LOI). EstimatedIncremental Gr NOIoss Cost $$3.7M EstimatedEstimated YieldCap Rate % 10% Est.Incremental Value Creation Value $$1.9M TargetCost Stabilization $ 2019 Estimated Stabilizat

  26. Slide 26: Woodbridge Commons, Woodbridge, NJ

    WOODBRIDGE COMMONS WOODBRIDGE, NJ Project Description Value Creation Redeveloping former Syms building (~ 36k sf) with a furniture operator. EstimatedIncremental Gr NOIoss Cost $$2.5M EstimatedEstimated YieldCap Rate % 10% Est.Incremental Value Creation Value $$1.7M TargetCost Stabilization $ 2019 E

  27. Slide 27: Huntington Commons, Huntington, NY

    HUNTINGTON COMMONS HUNTINGTON, NY Project Description Value Creation Converting an 11k sf, unusable basement into commercial space fronting Route 110 EstimatedIncremental Gr NOIoss Cost $$3.3M (under construction). EstimatedEstimated YieldCap Rate % 9% Est.Incremental Value Creation Value $$1.5M Tar

  28. Slide 28: Lawnside Commons, Lawnside, NJ

    LAWNSIDE COMMONS LAWNSIDE, NJ Project Description Value Creation Adding ~ 6k sf of shop space; delivered to T-Mobile and Mattress Firm EstimatedIncremental Gr NOIoss Cost $$2.1M (opening 2Q18). EstimatedEstimated YieldCap Rate % 9% Est.Incremental Value Creation Value $$0.9M TargetCost Stabilization

  29. Slide 29: Cherry Hill Commons, Cherry Hill, NJ

    CHERRY HILL COMMONS CHERRY HILL, NJ Project Description Value Creation Panda Express under construction. EstimatedIncremental Gr NOIoss Cost $$0.9M EstimatedEstimated YieldCap Rate % 13% Est.Incremental Value Creation Value $$0.8M TargetCost Stabilization $ 4Q18 Estimated Stabilization Year: 2Q17 Va

  30. Slide 30: Mt. Kisco Commons, Mount Kisco, NY

    MT. KISCO COMMONS MOUNT KISCO, NY Estimated Cost Gross Cost $46.7M Target Stabilization 2Q19 Project Description Value Creation Reconfi guring existing Applebee’s into two quick serve restaurants (LOI for EstimatedIncremental Gr NOIoss Cost $$1.6M 100% of space). EstimatedEstimated YieldCap Rate % 7%

  31. Slide 31: Gun Hill Commons, Bronx, NY

    GUN HILL COMMONS BRONX, NY Project Description Value Creation Expanding Aldi by ~ 4k sf. EstimatedIncremental Gr NOIoss Cost $$1.0M EstimatedEstimated YieldCap Rate % 8% Est.Incremental Value Creation Value $$0.6M TargetCost Stabilization $ 2019 Estimated Stabilization Year: 2Q17 Value Creation $ 31

  32. Slide 32: Rockaway River Commons, Rockaway, NJ

    ROCKAWAY RIVER COMMONS ROCKAWAY, NJ Project Description ShopRite to expand by ~ 6k sf at its expense (under construction). Estimated Gross Cost $0.8M Estimated Yield 7% Est. Value Creation $0.2M Target Stabilization 1Q19 32

  33. Slide 33: Governors Commons, Glen Burnie, MD

    GOVERNORS COMMONS GLEN BURNIE, MD Project Description Bubba’s 33, new restaurant concept from Texas Roadhouse, under construction. Estimated Gross Cost $1.7M Estimated Yield 9% Est. Value Creation ($0.1M) Target Stabilization 4Q18 33

  34. Slide 34: Goucher Commons, Towson, MD

    GOUCHER COMMONS TOWSON, MD Project Description Value Creation Sprouts replacing former hhgregg space (under construction for 3Q18 opening); EstimatedIncremental Gr NOIoss Cost $ $10.7M retenanting Golf Galaxy and Staples (LOI for 73% of space). EstimatedEstimated YieldCap Rate % 0% Est.Incremental V

  35. Slide 35: Briarcliff Commons, Morris Plains, NJ

    BRIARCLIFF COMMONS MORRIS PLAINS, NJ Project Description Value Creation Renovating, reconfi guring and remerchandising; replacing vacant grocer; EstimatedIncremental Gr NOIoss Cost $$15.3M adding fast casual restaurant. EstimatedEstimated YieldCap Rate % 2% Est.Incremental Value Creation Value ($9.8M

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