Urban Edge Properties · NYSE:UE
Urban Edge Properties — Investor Presentation (November 2020)
45 slides from Urban Edge Properties's investor presentation, Nov 16, 2020
Slide 1: Investor Presentation November 2020
INVESTOR PRESENTATION NOVEMBER 2020
Slide 2: Forward Looking Statements
Forward Looking Statements 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 actual future results, financial condition and business may differ mater
Slide 3: Highlights
Highlights 1. Third quarter results • FFO as Adjusted was $0.19/share, down 34% compared to 3Q19 and flat compared to 2Q20 • SP NOI with and without redevelopment decreased by 20% vs 3Q19 driven by elevated bad debt expense • SP occupancy increased to 93.0%, up 30 bp compared to 3Q19 and up 40 bp com
Slide 4: Highlights (continued)
Highlights (continued) 4. Active development projects of $132M under way, driven by executed leases expected to generate an 8% unleveraged return • Largest projects include leases at Huntington Commons, Broomall Commons, Lodi, Briarcliff Commons and Plaza at Woodbridge 5. Cash flow stream is becoming
Slide 5: Urban Edge Team
Urban Edge Team Chris Weilminster Mark Langer Herb Eilberg Jeff Olson EVP, Chief Operating Officer EVP, Chief Financial Officer Chief Investment Officer Chairman and Chief Executive Officer Rob Milton Jen Holmes Scott Auster Bob DiVita Judy Knop EVP & General Counsel Chief Accounting Officer SVP, Le
Slide 6: High-Quality, Irreplaceable Portfolio
High-Quality, Irreplaceable Portfolio • Concentrated in first-ring suburbs within the NY metropolitan area, the most densely-populated, supply-constrained market in the country - Average of 240,000 people living within a 3-mile radius - Northern New Jersey, our largest market, is one of the most supp
Slide 7: Portfolio Concentrated in DC to Boston Corridor
Portfolio Concentrated in DC to Boston Corridor PERSONS PER SQ. MILE (2017) less than 150 150 – 250 250 – 750 750 – 1500 1500 – 3000 3000 – 5000 5000 – 7500 7500 or more • 63 of the company’s 74 properties are situated in the DC to Boston corridor, representing ~90% of Net Operating Income (NOI) • M
Slide 8: First-Ring Suburbs of NY Metro: Properties, ~80% of Total Value
First-Ring Suburbs of NY Metro: 46 Properties, ~80% of Total Value • Migration from NYC due to COVID-19 expected PERSONS PER SQ. MILE (2017) to benefit first-ring suburbs less than 150 • Many national discounters and leading grocers 150 – 250 are expanding in the NY metropolitan area 250 – 750 750 – 1
Slide 9: Portfolio Has Favorable Supply/Demand Ratio
Portfolio Has Favorable Supply/Demand Ratio 65 60 RPAI BRX SITC 55 KIM 50 WRI REG 45 UE AAT FRT 40 (SUPPLY) ROIC 35 Retail GLA per Household Household per GLA Retail 30 25 20 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 Households per square mile (DEMAND) Source: Bank of America Global Research, Ju
Slide 10: Top Tenants by Annualized Base Rent
Top 25 Tenants by Annualized Base Rent Total Square Feet ABR Tenant S&P Rating(1) in thousands in millions % of Total ABR The Home Depot, Inc. A 809 $14.8 6% The TJX Companies, Inc. A 694 13.8 5% Lowe’s Companies, Inc. BBB+ 976 8.6 3% Best Buy Co, Inc. BBB 359 7.8 3% Wal-Mart Stores, Inc. AA 708 7.5
Slide 11: Portfolio Composition By Tenant Category
Portfolio Composition By Tenant Category As of September 30, 2020, our portfolio composition is well diversified, with 43% of tenants providing essential goods or services as measured by ABR. Restaurants 9% Grocer/ Essential Businesses = 43% National: 3% Fitness Regional: 1% Warehouse Club Local Fran
Slide 12: Only 27% of Portfolio ABR from Small Shop Tenants
Only 27% of Portfolio ABR from Small Shop Tenants Proactive approach to working with small shop tenants • Frequent communication to assess business plan • Facilitated processes for tenants seeking SBA loans • Assisted tenants with rollout of curbside delivery, especially restaurant tenants • Worked
Slide 13: Leasing
LEASING
Slide 14: Leasing Update
Leasing Update • COVID-19 has highlighted the value of shopping centers in first ring suburbs as consumers want essential goods and services nearby. These locations also facilitate last mile delivery and provide easy BOPIS and curbside pickup. 14
Slide 15: Leasing Update
Leasing Update • Lease maturities in 2021 are manageable with only 383,000 sf of anchor leases rolling and 209,000 sf of shop leases rolling - 11 of the 14 anchor leases expiring in 2021 are expected to be renewed(1); 3 leases aggregating less than 100K sf are being marketed • Portfolio has been str
Slide 16: Large Anchor Lease-up Projections
Large Anchor Lease-up Projections Annual Gross Property SF Rent ($M) Stabilization New Tenant/Prospect Executed Leases Plaza at Woodbridge 56,000 1.3 1Q21 Bed Bath & Beyond, buybuy Baby Salem 39,000 0.5 3Q21 Fun City Briarcliff Commons 38,000 0.7 4Q21 Uncle Giuseppe’s Huntington Commons 65,000 1.5 1
Slide 17: wu oh [a (e) =] Li > Lid a = rs
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Slide 18: Development Update
Development Update • As of September 30, 2020, we had $132 million of active redevelopment projects under way, of which $91 million remains to be funded. These projects are expected to generate an 8% unleveraged yield and create additional value from cap rate compression • Pursuing entitlements at B
Slide 19: Development, Redevelopment and Anchor Repositioning Projects
Development, Redevelopment and Anchor Repositioning Projects As of September 30, 2020 (in thousands, except square footage data) Estimated Incurred as Target Active Projects Gross Cost(1) of 9/30/20 Stabilization(2) Description and Status Huntington Commons $31,200 $700 3Q22 Retenanting former Kmart
Slide 20: Huntington Commons - Before
Huntington Commons - Before Huntington, NY Retenant former Kmart box with ShopRite, relocate Marshalls and upgrade façade, parking, and landscaping. 20
Slide 21: Huntington Commons - After
Huntington Commons - After Huntington, NY 21
Slide 22: Huntington Commons
Huntington Commons Huntington, NY Before After 22
Slide 23: Broomall Commons
Broomall Commons Broomall, PA Retenant former Giant Food with national retailers. 23
Slide 24: Broomall Commons
Broomall Commons Broomall, PA 24
Slide 25: Lodi
Lodi Lodi, NJ Convert former National Wholesale Liquidators to a hybrid industrial and retail facility for AAA Wholesale and add a restaurant pad. Before After 25
Slide 26: Briarcliff Commons - Before
Briarcliff Commons - Before Morris Plains, NJ Newly redeveloped center adding Uncle Giuseppe’s (filling 40k sf vacancy), and a new 3K sf pad in parking lot. 26
Slide 27: Briarcliff Commons
Briarcliff Commons Morris Plains, NJ Before After 27
Slide 28: Hudson Mall
Hudson Mall Jersey City, NJ 28
Slide 29: Hudson Mall
Hudson Mall Hudson Mall Jersey City, NJ Jersey City, NJ Current Future 29
Slide 30: Bergen Town Center
Bergen Town Center Paramus, NJ 30
Slide 31: Bergen Town Center
Bergen Town Center Paramus, NJ New Jersey State Highway Route 4 Legend Anchor Vertical Core Retail Education Restaurants Office Entertainment Hotel Forest Ave Forest Health & Wellness Residential Spring Valley Ave 31
Slide 32: Yonkers Gateway Center
Yonkers Gateway Center Yonkers, NY 32
Slide 33: Bruckner Commons
Bruckner Commons Bronx, NY 33
Slide 34: Acquisitions and Dispositions
ACQUISITIONS AND DISPOSITIONS
Slide 35: Acquisitions and Dispositions Since 2015
Acquisitions and Dispositions Since 2015 PERSONS PER SQ. MILE (2017) less than 150 150 – 250 250 – 750 750 – 1500 1500 – 3000 3000 – 5000 5000 – 7500 7500 or more SYMBOL KEY Acquisitions Dispositions Acquisitions Dispositions Assets 21 17 Value $693M $273M Markets New York / Boston Secondary ABR $25
Slide 36: Liquidity and Balance Sheet
LIQUIDITY AND BALANCE SHEET
Slide 37: Significant Liquidity and Well-Laddered Debt Maturities
Significant Liquidity and Well-Laddered Debt Maturities • We have significant liquidity and flexibility to navigate the challenging market environment • Total liquidity of approximately $1 billion, comprising $420 million of cash on hand and $600 million available under our revolving credit agreement(1
Slide 38: COVID-19 Business Update
COVID-19 BUSINESS UPDATE
Slide 39: Rent Collections Update
Rent Collections Update Collections and the status of tenants open for business by property type as of November 12, 2020 were as follows: % Collected(3) % of Portfolio % Open by ABR ABR(1) 2Q 2020 3Q 2020 October 2020 Strips 76% 98% 83% 85% 89% Malls(2) 22% 98% 58% 75% 80% Warehouses 2% 100% 97% 99%
Slide 40: Actively Engaged in Tenant Recovery Efforts
Actively Engaged in Tenant Recovery Efforts • New mall websites keep customers updated on store hours with a “pop up” take out and curbside pick-up promotion to support open and operating tenant businesses throughout the pandemic • Hosted “Prepare to Comply”, a Q&A webinar held on the SBA’s Paycheck
Slide 41: Supporting Our Communities
Supporting Our Communities In response to the COVID-19 pandemic, Urban Edge has been working closely with local municipal leaders to address immediate needs of those living in the neighborhoods served by our properties. Our focus has been to utilize our assets and skillsets in partnership with other
Slide 42: Summary
Summary • Robust leasing activity pipeline with over 1 million sf of activity under way • Balance sheet is one of the best in the shopping center sector, significant liquidity and no corporate debt other than line of credit - $1 billion in liquidity ($0.4B in cash and $0.6B available on line of credi
Slide 43: Non-GAAP Financial Measures & Operating Metrics
Non-GAAP Financial Measures & Operating Metrics 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 operational results. We continually evaluate the
Slide 44: Non-GAAP Financial Measures & Operating Metrics (cont)
Non-GAAP Financial Measures & Operating Metrics (cont) • EBITDAre and Adjusted EBITDAre: Earnings Before Interest, Tax, Depreciation and Amoritization (EBITDAre) and Adjusted EBITDAre are supplemental, non-GAAP measures utilized by us in various financial ratios. The White Paper on EBITDAre, approved
Slide 45: Seventh Avenue New York, NY 10019 212.956.2556
888 Seventh Avenue New York, NY 10019 212.956.2556
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