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1. Company Snapshot

1.a. Company Description

Urban Edge Properties is a NYSE listed real estate investment trust focused on managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the New York metropolitan region.Urban Edge owns 78 properties totaling 15.1 million square feet of gross leasable area.

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1.b. Last Insights on UE

Urban Edge Properties' recent performance was driven by strong Q1 2025 earnings, with funds from operations (FFO) beating estimates at $0.35 per share. The company's robust leasing, high tenant retention, and strategic asset recycling contributed to FFO growth. Additionally, the signing of a lease with TruGolf for a revamped Plaza at Cherry Hill, featuring a premium "eatertainment" experience, is expected to drive future growth. The appointment of John Hamrick to the board of directors also adds expertise and depth to the company's leadership.

1.c. Company Highlights

2. Urban Edge Properties' Strong Q3 Earnings Reflect Robust Leasing Momentum

Urban Edge Properties reported a strong third quarter with FFO as adjusted increasing 4% over the third quarter of last year, bringing their year-to-date growth to 7%. Same-property net operating income rose by 4.7% for the quarter and 5.4% year-to-date. The company's actual EPS came in at $0.36, beating estimates of $0.35. The robust financial performance was underscored by sustained leasing momentum, with 31 deals aggregating 347,000 square feet, and a 9% spread on renewals. The overall same-property lease rate now stands at 96.6%.

Publication Date: Nov -04

📋 Highlights
  • FFO Growth:: Q3 FFO as adjusted rose 4% YoY to $0.36/share, with YTD growth at 7%.
  • Brighton Mills Acquisition:: $39M purchase of a 91,000 sq ft Boston asset at ~$5M/acre, below $9–10M/acre local land value.
  • 2025 Guidance Raised:: Midpoint FFO as adjusted now $1.43/share (6% growth YoY), reflecting $0.01/share increase.
  • Leasing Momentum:: 31 deals (347,000 sq ft) signed, with 11 new leases at 61% rent spread and 20 renewals at 9% spread.
  • Project Stabilization:: $49M in projects stabilized in 12 months at 17% blended yield, including Bob’s Discount Furniture opening early.

Operational Highlights

The company completed the $39 million acquisition of Brighton Mills, a 91,000 square foot grocery-anchored shopping center located in Boston, with tremendous demand for residential and commercial development. Urban Edge Properties also stabilized one project with the opening of Bob's Discount Furniture at Newington Commons 2 quarters ahead of schedule, bringing their rolling 12-month total to $49 million of projects stabilized at a blended yield of 17%. As Jeff Mooallem mentioned, "nearly all retailers are in clear expansion mode and prepared to pay the rents needed to make that happen."

Leasing Activity and Rent Spreads

Leasing activity in the quarter totaled 31 deals aggregating 347,000 square feet, with 20 renewals totaling 265,000 square feet at a 9% spread and 11 new leases totaling 82,000 square feet at an outsized 61% spread. The company signed anchor leases with HomeGoods and Ross in previously occupied Big Lots and buybuy Baby spaces, driving a 60% rent spread. Urban Edge Properties expects to be in the double digits for rent spreads going forward.

Valuation and Outlook

With a P/E Ratio of 21.17 and a Dividend Yield of 3.89%, Urban Edge Properties appears to be reasonably valued. Analysts estimate next year's revenue growth at 0.8%. The company's strong leasing momentum, robust financial performance, and favorable supply-demand dynamics position it for sustained growth. Urban Edge Properties expects same-property NOI growth of 3% or more, driven by their signed not open pipeline and capital recycling.

Growth Prospects

The company is exploring opportunities to create pad space, which can be rented out to multi-tenant shops or single-tenant food users, and is studying opportunities to split anchor boxes into shop space. With a strong track record of creating value for shareholders, Urban Edge Properties is well-positioned to continue delivering sustainable growth.

3. NewsRoom

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Fisher Asset Management LLC Has $14.19 Million Stake in Urban Edge Properties $UE

Dec -04

Source: defenseworld.net

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American Century Companies Inc. Sells 103,290 Shares of Urban Edge Properties $UE

Dec -03

Source: defenseworld.net

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Connor Clark & Lunn Investment Management Ltd. Invests $2.03 Million in Urban Edge Properties $UE

Nov -17

Source: defenseworld.net

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Bet on These 3 Retail REITs as the Sector Shows Renewed Strength

Nov -04

Source: zacks.com

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Asset Management One Co. Ltd. Lowers Stake in Urban Edge Properties $UE

Oct -30

Source: defenseworld.net

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Urban Edge Properties (UE) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

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Urban Edge Properties Reports Third Quarter 2025 Results

Oct -29

Source: businesswire.com

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Urano Energy Expands I-70 Uranium Project Through Strategic Acquisition from enCore Energy Corp.

Oct -27

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.81%)

6. Segments

Rental

Expected Growth: 1.8%

Rental growth of 1.8% in Urban Edge Properties is driven by increasing demand for retail space in urban areas, fueled by e-commerce growth and omnichannel retailing. Additionally, the company's focus on grocery-anchored centers and strategic acquisitions contribute to the growth, along with favorable demographics and limited new supply in target markets.

Other

Expected Growth: 2.2%

Urban Edge Properties' 2.2% growth is driven by increasing demand for grocery-anchored shopping centers, strategic acquisitions, and redevelopment of existing properties. Additionally, the company's focus on densification and mixed-use development, as well as its strong balance sheet and access to capital, support its growth momentum.

7. Detailed Products

Retail Properties

Urban Edge Properties owns and operates a diverse portfolio of retail properties, including shopping centers, strip centers, and mixed-use developments.

Office Properties

The company's office portfolio consists of high-quality, well-located properties that cater to a diverse range of tenants, from small startups to large corporations.

Mixed-Use Developments

Urban Edge Properties develops and manages mixed-use projects that combine retail, office, and residential spaces, creating vibrant, walkable communities.

Residential Properties

The company's residential portfolio includes apartments, condominiums, and townhomes, offering a range of housing options for individuals and families.

Development and Redevelopment Services

Urban Edge Properties offers development and redevelopment services, including site acquisition, entitlements, and construction management.

8. Urban Edge Properties's Porter Forces

Forces Ranking

Threat Of Substitutes

Urban Edge Properties operates in a niche market, providing a unique shopping experience. While there are substitutes available, they are not easily accessible, and the company's focus on experiential retail helps to mitigate the threat.

Bargaining Power Of Customers

Urban Edge Properties' customers have some bargaining power due to the availability of substitutes. However, the company's focus on creating an immersive shopping experience and its strong relationships with tenants help to reduce this power.

Bargaining Power Of Suppliers

Urban Edge Properties has a diverse tenant base, which reduces the bargaining power of individual suppliers. The company's strong relationships with tenants and its ability to negotiate favorable lease terms also help to mitigate supplier power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the retail real estate industry. Urban Edge Properties' established presence, strong relationships with tenants, and expertise in experiential retail make it difficult for new entrants to compete.

Intensity Of Rivalry

The retail real estate industry is highly competitive, with several established players. However, Urban Edge Properties' focus on experiential retail and its unique shopping experience help to differentiate it from competitors and reduce the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.07%
Debt Cost 4.09%
Equity Weight 39.93%
Equity Cost 11.42%
WACC 7.01%
Leverage 150.44%

11. Quality Control: Urban Edge Properties passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Gladstone Commercial

A-Score: 6.4/10

Value: 5.3

Growth: 4.7

Quality: 6.9

Yield: 10.0

Momentum: 2.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
BrightSpire Capital

A-Score: 6.3/10

Value: 6.8

Growth: 4.6

Quality: 3.9

Yield: 10.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Urban Edge

A-Score: 6.1/10

Value: 4.9

Growth: 3.1

Quality: 7.8

Yield: 8.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
CTO Realty Growth

A-Score: 6.0/10

Value: 5.7

Growth: 5.2

Quality: 3.4

Yield: 10.0

Momentum: 2.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
American Assets Trust

A-Score: 5.7/10

Value: 5.2

Growth: 4.3

Quality: 4.7

Yield: 10.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Presidio Property Trust

A-Score: 2.8/10

Value: 5.6

Growth: 0.8

Quality: 2.6

Yield: 5.0

Momentum: 3.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.26$

Current Price

19.26$

Potential

-0.00%

Expected Cash-Flows