Urban Edge Properties · NYSE:UE
Urban Edge Properties — Investor Presentation (June 2022)
46 slides from Urban Edge Properties's investor presentation, Jun 6, 2022
Slide 1: June 2022 Investor Presentation
U R B A N E D G E P R O P E R T I E S 1I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 JUNE 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 2I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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 D.C. 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 3I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Recent results: • FFO as Adjusted was $0.28/share in 1Q22, up 7% compared to 1Q21, driven by a 3.8% increase in same property NOI including redevelopment • SP leased occupancy increased to 94.6% as of June
Slide 4: Urban Edge Team
U R B A N E D G E P R O P E R T I E S 4I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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 Accoun
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 5I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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 corri
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 6I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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 r
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 7I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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 $15.7 5.8% The TJX Companies, Inc. A 22 715 14.4 5.
Slide 8: Leasing
I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 8 U R B A N E D G E P R O P E R T I E S Leasing
Slide 9: Physical Stores Are Critical
U R B A N E D G E P R O P E R T I E S 9I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Note: Data per respective 4Q21 / 1Q22 Earnings Calls Physical Stores Are Critical Our top tenants have expressed the importance of physical stores for online fulfillment and sales During the first quarter,
Slide 10: Cash Flow Stream is Stronger from New Anchors
U R B A N E D G E P R O P E R T I E S 10I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Cash Flow Stream is Stronger from New Anchors Percentage of Portfolio Value by Asset Type Grocery Anchored Assets 60% Bruckner Commons Industrial/Self-Storage 7% Lodi Route 17 Home Improvement Anchored 10
Slide 11: Same-Property Occupancy
U R B A N E D G E P R O P E R T I E S 11I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Same-Property Occupancy 98.0% 96.3% 93.4% 93.4% 92.7% 93.0% 91.8% 91.3% 92.0% 92.8% 94.1% 93.9% 96.0% 98.0% 97.0% 95.6% 92.6% 92.1% 91.3% 90.9% 89.7% 89.5% 89.2% 89.4% 90.3% 90.1% 2016-2017 2018 4Q19 1Q20
Slide 12: Leases Executed But Not Yet Rent Commenced
U R B A N E D G E P R O P E R T I E S 12I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Leases Executed But Not Yet Rent Commenced Year Leases included in redevelopment projects Gross Rent ($ in Millions) Approximately $24.5M of future annual gross rent from leases executed, but not yet rent
Slide 13: Large Anchor Leasing Update
U R B A N E D G E P R O P E R T I E S 13I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Large Anchor Leasing Update Property New Tenant/Prospect SF Stabilization/ Status Executed: Briarcliff Commons Uncle Giuseppe’s 38,000 1Q22 Broomall Commons Amazon Fresh 45,000 2Q22 Lodi AAA Wholesale Gro
Slide 14: Development
U R B A N E D G E P R O P E R T I E S 14I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Development
Slide 15: Development Update
U R B A N E D G E P R O P E R T I E S 15I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 $207 million of active projects as of March 31,2022: $136 million remains to be funded; expecting 8% unlevered yield Development Update Active Project Est Gross Cost ($000s) Target Stabilization Status Be
Slide 16: Bergen Town Center
U R B A N E D G E P R O P E R T I E S 16I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Bergen Town Center | Paramus, NJ Retenant former Century 21 box with Kohl’s Target Stabilization 2Q23
Slide 17: Bergen Town Center
U R B A N E D G E P R O P E R T I E S 17I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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
U R B A N E D G E P R O P E R T I E S 18I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Bergen Town Center | Paramus, NJ
Slide 19: Briarcliff Commons | Uncle Giuseppe's
U R B A N E D G E P R O P E R T I E S 19I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Briarcliff Commons ǀ Uncle Giuseppe’s Opened January 2022
Slide 20: Briarcliff Commons | Uncle Giuseppe's
U R B A N E D G E P R O P E R T I E S 20I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Phase A: Retenant former ShopRite with Uncle Giuseppe’s Marketplace Opened January 2022 AFTER BEFORE Briarcliff Commons ǀ Uncle Giuseppe’s
Slide 21: Briarcliff Commons
U R B A N E D G E P R O P E R T I E S 21I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Briarcliff Commons | Morris Plains, NJ AFTER BEFORE Phase B: Develop new pad for CityMD Target Stabilization 2Q23
Slide 22: Briarcliff Commons | Uncle Giuseppe's
U R B A N E D G E P R O P E R T I E S 22I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Briarcliff Commons ǀ Uncle Giuseppe’s
Slide 23: Hudson Mall
U R B A N E D G E P R O P E R T I E S 23I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Hudson Mall | Jersey City, NJ AFTER BEFORE Retenant former Toys “R” Us box with national retailer Target Stabilization 3Q23
Slide 24: Hudson Mall
U R B A N E D G E P R O P E R T I E S 24I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Hudson Mall | Jersey City, NJ
Slide 25: Huntington Commons
U R B A N E D G E P R O P E R T I E S 25I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Huntington Commons | Huntington, NY BEFORE AFTER Phase A: Retenanting former Kmart box with ShopRite and Marshalls relocation Target Stabilization 3Q22
Slide 26: Huntington Commons
U R B A N E D G E P R O P E R T I E S 26I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Phase B: Retenant relocated Marshalls box, small shops and upgrade façade, parking, and landscaping Target Stabilization 4Q23 AFTER Huntington Commons | Huntington, NY AFTER BEFORE
Slide 27: Huntington Commons
U R B A N E D G E P R O P E R T I E S 27I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 AFTER Huntington Commons | Huntington, NY
Slide 28: Lodi
U R B A N E D G E P R O P E R T I E S 28I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Lodi | Lodi, NJ Converted former National Wholesale Liquidators to a hybrid industrial and retail facility for AAA Wholesale Target Stabilization 2Q22 AFTER BEFORE
Slide 29: Las Catalinas
U R B A N E D G E P R O P E R T I E S 29I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Las Catalinas | Caguas, Puerto Rico AFTER BEFORE Retenanting 122,000± sf Kmart box with Sector Sixty6 Target Stabilization 2Q23
Slide 30: Las Catalinas
U R B A N E D G E P R O P E R T I E S 30I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Las Catalinas | Caguas, Puerto Rico
Slide 31: Shops at Bruckner
U R B A N E D G E P R O P E R T I E S 31I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Phase A: Relocating Jimmy Jazz, adding Five Below Target Stabilization 4Q22 Phase B: Re-tenanting former Fallas space with Aldi and Lot Less Target Stabilization 2Q23 AFTER BEFORE Shops at Bruckner | Bron
Slide 32: Shops at Bruckner
U R B A N E D G E P R O P E R T I E S 32I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 AFTER Shops at Bruckner | Bronx, NY
Slide 33: Broomall Commons
U R B A N E D G E P R O P E R T I E S 33I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Retenant 45,000 sf of former Giant Food space with Amazon Fresh Target Stabilization 2Q22 – Phase A Broomall Commons | Broomall, PA AFTER BEFORE
Slide 34: Broomall Commons
U R B A N E D G E P R O P E R T I E S 34I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 Broomall Commons | Broomall, PA
Slide 35: Acquisitions Update
U R B A N E D G E P R O P E R T I E S 35I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 ACQUISITIONS UPDATE
Slide 36: Acquisition/Disposition Strategy
U R B A N E D G E P R O P E R T I E S 36I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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/m
Slide 37: Liquidity and Balance Sheet
I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 37 U R B A N E D G E P R O P E R T I E S LIQUIDITY AND BALANCE SHEET
Slide 38: Liquidity and Balance Sheet
U R B A N E D G E P R O P E R T I E S 38I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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 2.2% 3.7% 3.2% 4.2% 4.2%
Slide 39: Earnings Growth Drivers
U R B A N E D G E P R O P E R T I E S 39I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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 o
Slide 40: Environmental, Social, Governance (ESG)
I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 40 U R B A N E D G E P R O P E R T I E S ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG)
Slide 41: Our Commitment
U R B A N E D G E P R O P E R T I E S 41I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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, ten
Slide 42: 2022 ESG Focus Areas
U R B A N E D G E P R O P E R T I E S 42I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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 to
Slide 43: Forward-looking statements
U R B A N E D G E P R O P E R T I E S 43I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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 fu
Slide 44: Non-GAAP Financial Measures
U R B A N E D G E P R O P E R T I E S 44I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 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 o
Slide 45: Same-property NOI definitions
U R B A N E D G E P R O P E R T I E S 45I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 • 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 being
Slide 46: I U N E R O P E R T I E S
I N V E S T O R P R E S E N T A T I O N J U N E 2 0 2 2 46 U R B A N E D G E P R O P E R T I E S
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