Urban Edge Properties : Investor Presentation February 2025

Published: 2025-02-20 07:17:16 ET UE

INVESTOR PRESENTATION

FEBRUARY 2025

THE URBAN EDGE - POINTS OF DIFFERENTIATION

Achieved 2024 FFO as Adjusted of $1.35 reflecting 8% growth and issued 2025 FFO as Adjusted guidance of $1.37 - $1.42 per share

Growth driven by market leading $25M gross rent from signed leases not yet rent commenced (9% of NOI), strategic capital recycling, record leasing volumes and new rent commencements

Capital recycling is providing visible growth

Since October 2023, acquired ~$552M of high-quality retail assets in our core markets at a 7% cap rate, and sold ~$425M of high value, low-growth assets at a 5% cap rate

With a ~$3 billion equity market cap, we have greater opportunity for meaningful internal and external growth as compared to large- cap peers

We can meaningfully increase FFO per share through higher internal growth and making modest acquisitions (~$75M - $100M)

Strong balance sheet with only 9% of debt maturing through 2026

Our debt consists primarily of well-laddered, single asset, non- recourse mortgages with only $24M and $116M of mortgage debt maturing in December 2025 and December 2026, respectively. Total liquidity of ~$809M with low leverage provides financial flexibility

Portfolio is concentrated in the most supply-constrained, high- density markets in the U.S.

Our east coast portfolio benefits from the lack of available land and high costs to develop, limiting new supply

INVESTOR PRESENTATION | FEBRUARY 2025

Data as of December 31, 2024, except where noted.

UE OVERVIEW

2015

UE FORMED VIA SPIN-OFF FROM VORNADO

$20.79

RETAIL ABR PSF

75 PROPERTIES

TOTAL LIQUIDITY

$2.8B

>$809M

MARKET CAP

ONLY 9% OF TOTAL DEBT

$4.5B

MATURING THRU 2026

ENTERPRISE

VALUE

17.4M SF

96.6%

GROSS LEASABLE SPACE

SP LEASED OCCUPANCY

6.0x

Net Debt to

80% OF PORTFOLIO VALUE GROCERY ANCHORED

EBITDA

INVESTOR PRESENTATION | FEBRUARY 2025

Data as of December 31, 2024 3

FOURTH QUARTER HIGHLIGHTS

NOI SP Growth

SP Occupancy

FFO as Adjusted

with Redev

96.6%

$1.35

7.4%

96.0%

5.1%

$1.25

3.7% 4.0%

95.4%

$1.21

1Q24

2Q24

3Q24

4Q24

2024

2022

2023

2024

2022

2023

2024

$22

$21

$20

$19

$18

$17

$16

2015

Portfolio ABR

$20.79

2024

2024 Fourth Quarter Results

FFO as Adjusted

$0.34/sh

SP NOI Growth

6.6%

SP NOI with Redev Growth

7.4%

Anchor Occupancy

98.0%

Shop Occupancy

90.9%

SNO Pipeline

$25M

Active Redevelopment Projects

$163M

Remaining Cost to Complete

$90M

Unleveraged Yield

15%

INVESTOR PRESENTATION | FEBRUARY 2025

2025 GUIDANCE

Low

High

FFO as Adjusted(1)

$1.37

$1.42

Key Assumptions:

SP NOI Including Properties in Redev

3.0%

4.0%

Recurring G&A

$35M

$37M

Interest & Debt Expense

$78.5M

$80.5M

Reconciliation of Net Income to FFO as Adjusted Guidance:

Net income

$0.32

$0.37

Less net (income) loss attributable to noncontrolling interests in:

Operating partnership

(0.02)

Consolidated subsidiaries

0.01

Net income attributable to common shareholders

0.31

0.35

Adjustments:

Rental property depreciation and amortization

1.04

Limited partnership interests in operating partnership

0.02

FFO Applicable to diluted common shareholders

$1.36

$1.41

Adjustments to FFO:

Transaction, severance, litigation and other expenses

0.01

FFO as Adjusted applicable to diluted common shareholders

$1.37

$1.42

Note: Amounts may not foot due to rounding

INVESTOR PRESENTATION | FEBRUARY 2025

PORTFOLIO CONCENTRATED IN D.C. TO BOSTON CORRIDOR

Most heavily urbanized region in the U.S.

90%

portfolio NOI generated from properties situated in the D.C. to Boston corridor

peer average for 3- mile population density for total portfolio

10x

higher population

than US average

INVESTOR PRESENTATION | FEBRUARY 2025

DOMINANT OWNER WITHIN FIRST-RING SUBURBS OF NY METRO

44 Properties; ~70% of total value

Supply constraints and population

density drive demand from retailers seeking to expand their physical presence, incorporating omnichannel initiatives

Population in first-ring NYC suburbs is stable as people remain rooted to NY metro

Work from home policies have contributed to higher foot traffic at our centers, increasing ~5% compared to 2019(1)

(1) Data per Placer.ai

INVESTOR PRESENTATION | FEBRUARY 2025

PORTFOLIO SITUATED IN DENSE, AFFLUENT U.S. SUBMARKETS

(000S)

$130

$125

$120

FRT

ROIC

HOUSEHOLD INCOME

$115

$110

$105

CURB

REG

SITC

KIM

3-MILE MEDIAN

$100

$95

$90

KRG

PECO BRX

100

120

140

160

180

200

220

3-MILE POPULATION (000S)

INVESTOR PRESENTATION | FEBRUARY 2025

PORTFOLIO HAS SIGNIFICANT DENSITY WITH LIMITED RETAIL SUPPLY

RETAIL GLA PER HOUSEHOLD (SUPPLY)

KRG

SITC

BRX

PECO

KIM REG

FRT

ROIC

750

1,000

1,250

1,500

1,750

2,000

2,250

2,500

2,750

HOUSEHOLDS PER SQUARE MILE (DEMAND)

Source: Bank of America Global Research May 2023

INVESTOR PRESENTATION | FEBRUARY 2025

NECESSITY-BASED TENANCY RESULTS IN STABLE CASH FLOWS

80%

GROCERY ANCHORED ASSETS

WOODMORE TOWNE CENTRE

15%

OTHER ASSETS (VALUE-ORIENTED ANCHORS)

HERITAGE SQUARE

HOME IMPROVEMENT ASSETS

WEST BRANCH COMMONS

INVESTOR PRESENTATION | FEBRUARY 2025

Note: Percentages shown reflect estimated portfolio value by asset type

Disclaimer

Urban Edge Properties published this content on February 20, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 20, 2025 at 12:16:17.308.