Urban Edge Properties · NYSE:UE
Urban Edge Properties — Investor Presentation (March 2016)
51 slides from Urban Edge Properties's investor presentation, Mar 11, 2016
Slide 1: Investor Presentation
I N V ESTO R P R ES E N TAT I O N March 11, 2016 Exhibit 99.1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
2 FOWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES Certain statements contained in this Presentation 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 of 1934, as amended. Fo
Slide 3: Investment Highlights
3 INVESTMENT HIGHLIGHTS 1. High quality portfolio concentrated in the Washington, DC to Boston corridor with the New York Metropolitan Region representing two-thirds of total NOI • Weighted Average Population / Income (3 miles) 174,800 / $90,300(1) • Average Supermarket Sales PSF $739(2) • Average B
Slide 4: Portfolio Concentrated in DC to Boston Corridor
4 • 72 of the Company’s 84 properties representing ~85% of NOI are situated in the DC to Boston corridor • Most heavily urbanized region in the US • Population of 50 million • 931 people per square mile, over 10x higher than the US average PORTFOLIO CONCENTRATED IN DC TO BOSTON CORRIDOR
Slide 5: New York Metropolitan Portfolio
5 • New York Metropolitan Region represents 66% of NOI • 46 properties • 9.3 million SF NEW YORK METROPOLITAN PORTFOLIO
Slide 6: Strong, Stable Cash Flows from High Quality Tenants
6 STRONG, STABLE CASH FLOWS FROM HIGH QUALITY TENANTS (1) Weighted annualized base rents as of December 31, 2015 (2) Sourced from Moody’s/S&P (3) As of December 31, 2015 Tenant Data ABR PSF(1) $16.37 $7.42 $15.67 $8.73 $12.04 $20.59 $8.64 $11.58 $15.60 $9.41 # of Stores 7 9 15 6 9 7 8 4 5 4 Credit R
Slide 7: Management and Board of Trustees
7 MANAGEMENT AND BOARD OF TRUSTEES Jeffrey Olson Chairman and CEO, Urban Edge Properties Steven Roth Chairman and CEO, Vornado Realty Trust Michael Gould Former Chairman and CEO, Bloomingdale’s Steven Grapstein Former Chairman, Tesoro Corporation Former Chairman, Armani Exchange Director, David Yurm
Slide 8: Balance Sheet: Significant Liquidity, Low Leverage
8 $600 $500 $400 $300 $200 $100 $0 2016 $16 4.4%Weighted Average Interest Rate 2017 $17 4.4% 2018(2) $73 4.6% 2019 $17 4.4% 2020 $535 4.1% 2021 $120 4.7% 2022 $3 4.9% 2023 $303 3.6% 2024 $121 4.4% Thereafter $10 6.4% BALANCE SHEET: SIGNIFICANT LIQUIDITY, LOW LEVERAGE Key Leverage Metrics(1) Net Debt
Slide 9: Capital Allocation Philosophy
9 CAPITAL ALLOCATION PHILOSOPHY Investment Approach • Investments must produce returns that exceed the Company’s cost of capital on a risk adjusted basis • NAV/share is the primary metric that guides decisions Acquisitions • Focused on the DC to Boston corridor, particularly the New York Metropolita
Slide 10: Development, Redevelopment and Anchor Repositioning Projects: Active Projects
10 DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS ACTIVE PROJECTS Dollars in thousands Est. Gross Est. % Est. Value Est. Compl. Property Project Description Cost(1) Yield Creation(2) Year(1) Leasing Status(3) Hackensack Commons Retenanting vacant grocer (59K sf) and $4,500 47% $36,300
Slide 11: Redevelopment/Anchor Repositioning Pipeline
11 DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS REDEVELOPMENT/ANCHOR REPOSITIONING PIPELINE Dollars in thousands Est. Gross Est. % Est. Value Est. Compl. Property Project Description Cost(1) Yield Creation(2) Year(1) Leasing Status(3) The Outlets at Bergen Town Center Expanding cente
Slide 12: Future Value Creation
12 DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS FUTURE VALUE CREATION Property Project Description Bruckner Commons Analyzing various redevelopment scenarios including recapturing Kmart and Toys“R”Us Huntington Commons Analyzing repositioning options associated with the 102K sf Kmart
Slide 13: Active
ACT I V E
Slide 14: Hackensack Commons
14 Estimated Year of Completion: 2017 Estimated Value Creation Incremental NOI $2.1M Cap Rate 5.25% Incremental Value $40.8M Cost $4.5M Value Creation $36.3M Project Description Replacing 59K sf, former Pathmark with 99 Ranch Market, a 37-unit, California-based grocer that will be a catalyst for lea
Slide 15: East Hanover Warehouse
15 Estimated Year of Completion: 2016 Estimated Value Creation Incremental NOI $2.7M Cap Rate 6.00% Incremental Value $45.7M Cost $24.0M Value Creation $21.7M Project Description Renovated 942K sf of warehouse space in 5 buildings. Leased 320K sf to bring occupancy from 45% to 79%. EAST HANOVER WARE
Slide 16: Bruckner Commons
16 Estimated Year of Completion: 2018 (1) 2016 NOI is expected to decrease by $2.5M due to tenant closures during redevelopment. Incremental NOI is based on future stabilized NOI before redevelopment started Estimated Value Creation Incremental NOI(1) $2.9M Cap Rate 5.00% Incremental Value $58.7M Co
Slide 17: Freeport Commons
17 Estimated Year of Completion: 2017 (NOI+ $0.3M) / 2021 (NOI+ $0.6M) Estimated Value Creation Incremental NOI $0.9M Cap Rate 5.00% Incremental Value $18.6M Cost $0.5M Value Creation $18.1M Project Description Renewed Home Depot in 100K sf and expanded it into 55K sf previously occupied by Cablevis
Slide 18: Walnut Creek (Olympic Blvd.)
Estimated Year of Completion: 2016 (1) 2016 NOI is expected to decrease by $1.3M due to retenanting. Incremental NOI is based on future stabilized NOI before redevelopment started Estimated Value Creation Incremental NOI(1) $0.9M Cap Rate 4.25% Incremental Value $21.0M Cost $4.4M Value Creation $16.
Slide 19: Outlets at Montehiedra
19 Estimated Year of Completion: 2017 Estimated Value Creation Incremental NOI $2.6M Cap Rate 7.00% Incremental Value $37.1M Cost $20.8M Value Creation $16.3M Project Description Renovating and converting the property into a value-oriented, hybrid center offering outlets, off-price retailers, entert
Slide 20: West End Commons
20 Estimated Year of Completion: 2017 Estimated Value Creation Incremental NOI $1.2M Cap Rate 5.25% Incremental Value $22.4M Cost $8.9M Value Creation $13.5M Project Description Expanding center by 27K sf. La-Z-Boy (lease executed) and nationally recognized pet superstore (in lease) taking 72% of th
Slide 21: Garfield Commons
21 Estimated Year of Completion: 2017 Estimated Value Creation Incremental NOI $1.5M Cap Rate 5.25% Incremental Value $28.7M Cost $18.8M Value Creation $9.9M Project Description Expanding center by 85K sf. Adding Burlington Coat Factory (50K sf) and PetSmart (18K sf), both under construction, and 17
Slide 22: Walnut Creek (Mt. Diablo Blvd.)
222 Estimated Year of Completion: 2017 Estimated Value Creation Incremental NOI $0.3M Cap Rate 4.25% Incremental Value $6.8M Cost $0.6M Value Creation $6.2M Project Description Z Gallerie (7K sf) replacing Anthropologie when it moves to our Olympic Blvd. building. Opening in mid 2017. WALNUT CREEK (
Slide 23: East Hanover REI
23 Estimated Year of Completion: 2016 Estimated Value Creation Incremental NOI $0.1M Cap Rate 5.25% Incremental Value $2.7M Cost $0.5M Value Creation $2.2M Project Description Created pad for Panera Bread (5K sf) which opened in February 2016. EAST HANOVER REI EAST HANOVER, NJ
Slide 24: Rockaway River Commons
24 Estimated Year of Completion: 2017 Estimated Value Creation Incremental NOI $0.1M Cap Rate 5.50% Incremental Value $1.4M Cost $0.1M Value Creation $1.3M Project Description Ground leased vacant pad to Popeyes (3K sf). ROCKAWAY RIVER COMMONS ROCKAWAY, NJ
Slide 25: Governors Commons
25 Estimated Year of Completion: 2017 Estimated Value Creation Incremental NOI $0.1M Cap Rate 7.00% Incremental Value $1.8M Cost $1.3M Value Creation $0.5M Project Description Creating new pad for 9K sf Bubba’s 33 (lease executed), a new Texas Roadhouse restaurant concept. GOVERNORS COMMONS GLEN BUR
Slide 26: Pipeline
P I P E L I N E
Slide 27: The Outlets at Bergen Town Center
Estimated Year of Completion: 2020 Estimated Value Creation Incremental NOI $9.4M Cap Rate 4.00% Incremental Value $234.4M Cost $125.0M Value Creation $109.4M Project Description Expanding center to capture continuing demand for space from outlets, off-price retailers and food uses. THE OUTLETS AT B
Slide 28: Bergen Town Center East
28 BERGEN TOWN CENTER EAST PARAMUS, NJ Project Description Leasing and constructing two buildings approved for 40K sf and 20K sf, respectively. Estimated Value Creation Incremental NOI $ 1.8M Cap Rate 4.75% Incremental Value $37.9M Cost $13.5M Value Creation $24.4MEstimated Year of Completion: 2018
Slide 29: Hanover Commons
HANOVER COMMONS EAST HANOVER, NJ Project Description Repositioning vacant Loehmann’s (27K sf) and Marty’s Shoes (8K sf). Estimated Value Creation Incremental NOI $0.8M Cap Rate 5.00% Incremental Value $16.0M Cost $5.0M Value Creation $11.0MEstimated Year of Completion: 2018 29
Slide 30: Goucher Commons
30 Estimated Year of Completion: 2018 Estimated Value Creation Incremental NOI $0.9M Cap Rate 5.25% Incremental Value $17.7M Cost $7.0M Value Creation $10.7M Project Description Recapturing ~ 39K sf paying $6 psf (termination agreement executed) and replacing with four tenants averaging $30 psf (two
Slide 31: Rockaway River Commons
31 Estimated Year of Completion: 2018 Estimated Value Creation Incremental NOI $0.4M Cap Rate 5.50% Incremental Value $7.4M Cost $1.0M Value Creation $6.4M Project Description Negotiating existing ShopRite renewal and expansion by 10K sf. ROCKAWAY RIVER COMMONS ROCKAWAY, NJ
Slide 32: Ground Lease Pad Opportunities
32 Estimated Year of Completion: 2018 Estimated Value Creation Incremental NOI $0.4M Cap Rate 5.00% Incremental Value $8.0M Cost $2.0M Value Creation $6.0M Project Description Working with ground lessees to add an additional outparcel at each site; sharing costs and benefits 50/50. TOTOWA COMMONS To
Slide 33: Kearny Commons
33 Estimated Year of Completion: 2018 Estimated Value Creation Incremental NOI $0.6M Cap Rate 5.50% Incremental Value $11.7M Cost $8.1M Value Creation $3.6M Project Description Expanding center by adding 25K sf of shop space next to Marshalls and a restaurant pad (LOI) on excess land. KEARNY COMMONS
Slide 34: Hubbards Commons
34 Estimated Year of Completion: 2018 Estimated Value Creation Incremental NOI $0.4M Cap Rate 6.00% Incremental Value $6.4M Cost $3.1M Value Creation $3.3M Project Description Adding 10K sf of shop space in a freestanding building on excess land. HUBBARDS COMMONS WEST BABYLON, NY
Slide 35: Turnersville
35 Estimated Year of Completion: 2017 Estimated Value Creation Incremental NOI $0.3M Cap Rate 5.50% Incremental Value $5.3M Cost $2.1M Value Creation $3.2M Project Description Replacing former 4K sf Friendly’s building with new, 6K sf Verizon store (lease executed). TURNERSVILLE TURNERSVILLE, NJ
Slide 36: Marlton Commons
36 Estimated Year of Completion: 2018 Estimated Value Creation Incremental NOI $0.3M Cap Rate 5.25% Incremental Value $6.2M Cost $3.6M Value Creation $2.6M Project Description Creating new pad for two restaurants totaling 5K sf (both in lease). MARLTON COMMONS MARLTON, NJ
Slide 37: Woodbridge Commons
37 Estimated Year of Completion: 2019 Estimated Value Creation Incremental NOI $0.3M Cap Rate 5.00% Incremental Value $5.0M Cost $2.5M Value Creation $2.5M Project Description Replacing former Syms building (36K sf) with two pads for restaurants or other uses. WOODBRIDGE COMMONS WOODBRIDGE, NJ
Slide 38: Outlets at Montehiedra Outparcel
Estimated Year of Completion: 2018 Estimated Value Creation Incremental NOI $0.7M Cap Rate 7.00% Incremental Value $9.9M Cost $7.4M Value Creation $2.5M Project Description Marketing outparcel with 20K+/- sf of development potential. Negotiating with 10K sf users (50%). OUTLETS AT MONTEHIEDRA SAN JU
Slide 39: Huntington Commons
39 Estimated Year of Completion: 2018 Estimated Value Creation Incremental NOI $0.3M Cap Rate 5.50% Incremental Value $4.6M Cost $2.8M Value Creation $1.8M Project Description Converting an 11K sf unusable basement into shop space facing Route 110 with surface parking. HUNTINGTON COMMONS HUNTINGTON,
Slide 40: Cherry Hill Commons
CHERRY HILL COMMONS CHERRY HILL, NJ Project Description Leasing approved pad for up to 5K sf of retail (LOI). Selling 6 acres of excess land to an international grocery chain entering the US market. Estimated Value Creation Incremental NOI $0.1M Cap Rate 6.00% Incremental Value $2.1M Cost $1.0M Valu
Slide 41: Lawnside Commons
41 Estimated Value Creation Incremental NOI $0.1M Cap Rate 5.50% Incremental Value $2.2M Cost $1.4M Value Creation $0.8MEstimated Year of Completion: 2019 Project Description Using newly acquired outparcel plus existing excess land to create 6K sf of shop space (4K sf LOI). LAWNSIDE COMMONS LAWNSIDE
Slide 42: Brick Commons
42 Project Description Expanding center by 4K sf and repositioning anchor with a national retailer (LOI). Estimated Value Creation Incremental NOI $0.1M Cap Rate 5.00% Incremental Value $1.7M Cost $4.3M Value Creation ($2.6M)Estimated Year of Completion: 2017 BRICK COMMONS BRICKTOWN, NJ
Slide 43: Briarcliff Commons
43 Estimated Value Creation Cost $3.5M Value Creation ($3.5M) Estimated Year of Completion: 2018 Project Description Leasing dark, but rent-paying, ShopRite box to a new anchor tenant. BRIARCLIFF COMMONS MORRIS PLAINS, NJ
Slide 44: Future
F U T U R E
Slide 45: Bruckner Commons
Project Description The zoning for this property permits significantly more density than currently exists and the property can also be rezoned to permit even more development. Analyzing various redevelopment scenarios including recapturing Kmart and Toys“R”Us. BRUCKNER COMMONS BRONX, NY 45
Slide 46: Huntington Commons
Project Description Analyzing repositioning options associated with the 102K sf Kmart box. HUNTINGTON COMMONS HUNTINGTON, NY 46
Slide 47: Montclair
Project Description Analyzing options for expanding Whole Foods. MONTCLAIR MONTCLAIR, NJ 47
Slide 48: Brunswick Commons
Project Description Expanding center with a 10K sf freestanding building. BRUNSWICK COMMONS EAST BRUNSWICK, NJ 48
Slide 49: Kennedy Commons
Project Description Potentially expanding existing 6K sf shop building by 6K sf creating 10K sf of new space along Paterson Plank Road and repurposing underutilized parking garage. KENNEDY COMMONS NORTH BERGEN, NJ 49
Slide 50: Cross Bay Commons
CROSS BAY COMMONS HOWARD BEACH, NY • Acquired in December 2015 for $27.0 million; located in the Howard Beach area of Queens • Approximately 50K sf including shop space on the ground floor and second floor office • 85% occupied at acquisition, 25% below-market rents and projected NOI growth of 5% an
Slide 51: Seventh Avenue New York, NY 10019 212.956.2556 www.uedge.com
888 Seventh Avenue New York, NY 10019 212.956.2556 www.uedge.com
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