Urban Edge Properties Reports First Quarter 2026 Results

Published: 2026-04-29 07:03:04 ET UE

Published on 04/29/2026 at 07:03 am EDT

Urban Edge Properties (NYSE: UE) (the "Company") today announced its results for the quarter ended March 31, 2026 and updated its outlook for full-year 2026.

"Our first quarter results reflect the continued strength and quality of our portfolio,” said Jeff Olson, Chairman and CEO. "We executed 419,000 sf of leasing transactions in the quarter, including 84,000 sf of new leases at a cash spread of 52%, and 335,000 sf of renewals, achieving a blended cash spread of 15%. We acquired The Village at Bridgewater Commons in Bridgewater, New Jersey for $54 million, advancing our external growth plans. We have also raised the low end of our FFO as Adjusted guidance from a range of $1.47 to $1.52 per diluted share to $1.48 to $1.52 per diluted share."

"As we look ahead, our leasing pipeline remains robust, our balance sheet is well-positioned, and we believe the fundamentals driving our business - including the ongoing demand for high-quality retail space and supply constraints in our markets - will translate into sustained long-term growth," he concluded.

Financial Results(1)(2)

(in thousands, except per share amounts)

1Q26

1Q25

Net income attributable to common shareholders

22,645

8,198

Net income per diluted share

0.18

0.07

Funds from Operations ("FFO")

55,657

45,458

FFO per diluted share

0.42

0.35

FFO as Adjusted

47,569

45,921

FFO as Adjusted per diluted share

0.36

0.35

The increases in net income, FFO and FFO as Adjusted for the three months ended March 31, 2026 were driven by rent commencements on new leases, higher net recovery revenue, growth from accretive capital recycling and lower interest and debt expense. Net income and FFO for the three months ended March 31, 2026 also benefited from $8.4 million, or $0.06 per diluted share, of non-recurring reimbursements received during the quarter pertaining to previously incurred environmental remediation costs.

Same-Property Operating Results Compared to the Prior Year Period(1)(3)

1Q26

Same-property Net Operating Income ("NOI") growth

2.4

Same-property NOI growth, including properties in redevelopment

2.8

Increases in same-property NOI metrics for the three months ended March 31, 2026 were driven by rent commencements on new leases from our signed but not open pipeline and higher net recovery revenue, partially offset by higher levels of uncollected rents.

Leasing and Occupancy Results(1)

Acquisition Activity

On March 30, 2026, the Company acquired The Village at Bridgewater Commons for a gross purchase price of $54.3 million, reflecting a 7.7% capitalization rate. The 92,000 sf shopping center is located in Bridgewater, NJ along a highly trafficked and affluent retail corridor with a 5-mile annual average household income of $183,000. The center features a freestanding medical building for Summit Health as well as several high-quality quick-service restaurants including Chipotle, Shake Shack, Cava and Starbucks.

Financing Activity

On January 22, 2026, the Company entered into $950 million of unsecured credit facilities, expanding its borrowing capacity by $150 million. The unsecured credit facilities are comprised of an unsecured line of credit and two delayed-draw term loans aggregating $250 million.

The Company’s existing revolving credit agreement was amended and restated to reduce the unsecured line of credit by $100 million to $700 million and extend the maturity date to June 2030 with two six-month extension options. The term loans are $125 million each consisting of a 5-year maturity and a 7-year maturity, both of which have a delayed-draw feature through January 22, 2027. Based on the Company's current leverage ratio, borrowings under the unsecured line of credit, 5-year term loan and 7-year term loan bear interest at SOFR plus 1.00%, SOFR plus 1.15% and SOFR plus 1.50%, respectively.

On March 18, 2026, the Company obtained a $62.5 million, 7-year non-recourse mortgage secured by Plaza at Woodbridge with a swapped fixed interest rate of 5.0%.

As of March 31, 2026, the Company had $30 million outstanding under its unsecured line of credit and no amounts drawn on either of the 5-year or 7-year term loans.

Development and Redevelopment

During the quarter, the Company stabilized four redevelopment projects totaling $6.8 million with new rent commencements from Lidl and Boot Barn at Totowa Commons, Ross Dress for Less at Plaza at Woodbridge, Texas Roadhouse at Outlets at Montehiedra, and Big Blue Swim School at Plaza at Cherry Hill.

As of March 31, 2026, the Company has $157.3 million of active development and redevelopment projects underway, with estimated remaining costs to complete of $66.8 million. The active development and redevelopment projects are expected to generate an approximate 13% yield.

Balance Sheet and Liquidity(1)(4)(5)

Balance sheet highlights as of March 31, 2026 include:

2026 Outlook

The Company has updated its 2026 full-year guidance ranges for net income and FFO and raised the low end of its guidance range by $0.01 per diluted share for FFO as Adjusted, estimating net income of $0.56 to $0.60 per diluted share, FFO of $1.54 to $1.58 per diluted share and FFO as Adjusted of $1.48 to $1.52 per diluted share. A reconciliation of the range of estimated earnings, FFO and FFO as Adjusted, the assumptions used in our guidance, and a reconciliation bridging 2025 FFO per diluted share to the 2026 estimates can be found on pages 4 and 5 of this release.

Earnings Conference Call Information

The Company will host an earnings conference call and audio webcast on April 29, 2026 at 8:30 AM ET. All interested parties can access the earnings call by dialing 1-877-407-9716 (Toll Free) or 1-201-493-6779 (Toll/International) using conference ID 13759141. The call will also be webcast and available in listen-only mode on the investors page of our website: www.uedge.com. A replay will be available at the webcast link on the investors page for one year following the conclusion of the call. A telephonic replay of the call will also be available starting April 29, 2026 at 11:30 AM ET through May 13, 2026 at 11:59 PM ET by dialing 1-844-512-2921 (Toll Free) or 1-412-317-6671 (Toll/International) using conference ID 13759141.

(1)

Refer to "Non-GAAP Financial Measures" on page 6 and "Operating Metrics" on page 7 for definitions and additional details. Reported consolidated occupancy excludes the impact of Sunrise Mall. Including Sunrise Mall, consolidated portfolio leased occupancy was 89.9% at March 31, 2026.

(2)

Refer to page 11 for a reconciliation of net income to FFO and FFO as Adjusted for the three months ended March 31, 2026.

(3)

Refer to page 12 for a reconciliation of net income to NOI and Same-Property NOI for the three months ended March 31, 2026.

(4)

Net debt as of March 31, 2026 is calculated as total consolidated debt of $1.7 billion less total cash and cash equivalents, including restricted cash, of $76 million.

(5)

Availability under our unsecured credit facilities is net of letters of credit issued under the unsecured line of credit. The Company obtained seven letters of credit aggregating $27.9 million which have reduced the available balance commensurate with their face values but remain undrawn and no separate liability has been recorded.

2026 Earnings Guidance

The Company has updated its 2026 full-year guidance ranges for net income and FFO and raised the low end of its guidance range by $0.01 per diluted share for FFO as Adjusted, estimating net income of $0.56 to $0.60 per diluted share, FFO of $1.54 to $1.58 per diluted share and FFO as Adjusted of $1.48 to $1.52 per diluted share. Below is a summary of the Company's 2026 outlook, assumptions used in its forecasting, and a reconciliation of the range of estimated earnings, FFO, and FFO as Adjusted per diluted share.

Previous Guidance

Revised Guidance

Net income per diluted share

$0.49 - $0.54

$0.56 - $0.60

Net income attributable to common shareholders per diluted share

$0.47 - $0.52

$0.54 - $0.58

FFO per diluted share

$1.47 - $1.52

$1.54 - $1.58

FFO as Adjusted per diluted share

$1.47 - $1.52

$1.48 - $1.52

The Company's revised 2026 full-year outlook is based on the following assumptions:

Guidance 2026E

Per Diluted Share(1)

(in thousands, except per share amounts)

Low

High

Low

High

Net income

73,600

78,900

0.56

0.60

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

Operating partnership

(3,800

)

(4,000

)

(0.03

)

(0.03

)

Consolidated subsidiaries

900

0.01

Net income attributable to common shareholders

70,700

75,800

0.54

0.58

Adjustments:

Rental property depreciation and amortization

127,200

0.97

Limited partnership interests in operating partnership

3,800

4,000

0.03

FFO Applicable to diluted common shareholders

201,700

207,000

1.54

1.58

Adjustments to FFO:

Transaction, severance, litigation expenses and other, net

(7,900

)

(7,900

)

(0.06

)

(0.06

)

Loss on extinguishment of debt

200

—

FFO as Adjusted applicable to diluted common shareholders

194,000

199,300

1.48

1.52

(1) Amounts may not foot due to rounding.

The following table is a reconciliation bridging 2025 FFO per diluted share to the Company's estimated 2026 FFO per diluted share:

Per Diluted Share(1)

Low

High

2025 FFO applicable to diluted common shareholders

1.43

2025 Items impacting FFO comparability(2)

0.01

2026 Items impacting FFO comparability(2)

0.06

Same-property NOI growth, including redevelopment

0.06

0.08

Acquisitions net of dispositions NOI growth

0.01

Recurring general and administrative

(0.01

)

—

Straight-line rent and non-cash items

(0.01

)

—

2026 FFO applicable to diluted common shareholders

1.54

1.58

(1)

Amounts may not foot due to rounding.

(2)

Includes adjustments to FFO for fiscal year 2025 and expected adjustments for fiscal year 2026 which impact comparability. See "Reconciliation of net income to FFO and FFO as Adjusted" on page 11 for actual adjustments year-to-date and our fourth quarter 2025 Supplemental Disclosure Package for 2025 adjustments.

The Company is providing a projection of anticipated net income solely to satisfy the disclosure requirements of the Securities and Exchange Commission ("SEC"). The Company's projections are based on management’s current beliefs and assumptions about the Company's business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2026 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Forward-Looking Statements” disclosures on page 8 of this document and “Risk Factors” disclosed in the Company's annual and quarterly reports filed with the SEC for more information.

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 usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the investing public, and thus such reported measures are subject to change. The Company's non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results. Additionally, the Company's computation of non-GAAP metrics may not be comparable to similarly titled non-GAAP metrics reported by other real estate investment trusts ("REITs") or real estate companies that define these metrics differently and, as a result, it is important to understand the manner in which the Company defines and calculates each of its non-GAAP metrics. The following non-GAAP measures are commonly used by the Company and investing public to understand and evaluate our operating results and performance:

The Company believes net income is the most directly comparable GAAP financial measure to the non-GAAP performance measures outlined above. Reconciliations of these measures to net income have been provided in the tables accompanying this press release.

Operating Metrics

The Company presents certain operating metrics related to our properties, including occupancy, leasing activity and rental rates. Operating metrics used by the Company are useful to investors in facilitating an understanding of the operational performance for our properties.

Recovery ratios represent the percentage of operating expenses recuperated through tenant reimbursements. This metric is presented on a same-property and same-property including redevelopment basis and is calculated by dividing tenant expense reimbursements (adjusted to exclude any ancillary income) by the sum of real estate taxes and property operating expenses.

Occupancy metrics represent the percentage of occupied gross leasable area based on executed leases (including properties in development and redevelopment) and include leases signed, but for which rent has not yet commenced. Same-property portfolio leased occupancy includes properties that have been owned and operated for the entirety of the reporting periods being compared, which total 66 properties for the three months ended March 31, 2026 and 2025. Occupancy metrics presented for the Company's same-property portfolio exclude properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service and also excludes properties acquired within the past 12 months or properties sold, and properties that are in the foreclosure process during the periods being compared.

Executed new leases, renewals and exercised options are presented on a same-space basis. Same-space leases represent those leases signed on spaces for which there was a previous lease.

The Company occasionally provides disclosures by tenant categories which include anchors, shops and industrial/self-storage. Anchors and shops are further broken down by local, regional and national tenants. We define anchor tenants as those who have a leased area of >10,000 sf. Local tenants are defined as those with less than five locations. Regional tenants are those with five or more locations in a single region. National tenants are defined as those with five or more locations and that operate in two or more regions.

ADDITIONAL INFORMATION

For a copy of the Company’s supplemental disclosure package, please access the "Investors" section of our website at www.uedge.com. Our website also includes other financial information, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments to those reports.

The Company uses, and intends to continue to use, the “Investors” page of its website, which can be found at www.uedge.com, as a means of disclosing material nonpublic information and of complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the “Investors” page, in addition to following the Company's press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

ABOUT URBAN EDGE

Urban Edge Properties is a NYSE listed real estate investment trust focused on owning, managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the Washington, D.C. to Boston corridor. Urban Edge owns 74 properties totaling 17.3 million square feet of gross leasable area.

FORWARD-LOOKING STATEMENTS

Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). 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 future results, financial condition, business and targeted occupancy may differ materially from those expressed in these forward-looking statements. You can identify many of these statements by words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,” “may” or other similar expressions in this press release. Many of the factors that will determine the outcome of forward-looking statements are beyond our ability to control or predict and include, among others: (i) macroeconomic conditions, including geopolitical conditions and instability, and international trade disputes, including any related tariffs, which may lead to rising inflation, adverse impacts to supply chains, and disruption of, or lack of access to, the capital markets, as well as potential volatility in the Company’s share price; (ii) the economic, political and social impact of, and uncertainty relating to, epidemics and pandemics; (iii) the loss or bankruptcy of major tenants; (iv) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration and the Company’s ability to re-lease its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant; (v) the impact of e-commerce on our tenants’ business; (vi) the Company’s success in implementing its business strategy and its ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions and investments; (vii) changes in general economic conditions or economic conditions in the markets in which the Company competes, and their effect on the Company’s revenues, earnings and funding sources, and on those of its tenants; (viii) increases in the Company’s borrowing costs as a result of changes in interest rates, rising inflation, and other factors; (ix) the Company’s ability to pay down, refinance, hedge, restructure or extend its indebtedness as it becomes due and potential limitations on the Company’s ability to borrow funds under its existing credit facility as a result of covenants relating to the Company’s financial results; (x) potentially higher costs associated with the Company’s development, redevelopment and anchor repositioning projects, and the Company’s ability to lease the properties at projected rates; (xi) the Company’s liability for environmental matters; (xii) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (xiii) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; (xiv) information technology security breaches; (xv) the loss of key executives; and (xvi) the accuracy of methodologies and estimates regarding our environmental, social and governance (collectively, our Corporate Responsibility or “CR”) metrics, goals and targets, tenant willingness and ability to collaborate towards reporting CR metrics and meeting CR goals and targets, and the impact of governmental regulation on our CR efforts. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Risk Factors” in Part I, Item 1A, of the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and the other documents filed by the Company with the Securities and Exchange Commission (the "SEC").

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for any forward-looking statements included in this press release. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this press release.

URBAN EDGE PROPERTIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

March 31,

December 31,

2026

2025

ASSETS

Real estate, at cost:

Land

676,038

669,078

Buildings and improvements

2,878,759

2,835,540

Construction in progress

358,886

327,413

Furniture, fixtures and equipment

13,485

13,059

Total

3,927,168

3,845,090

Accumulated depreciation and amortization

(956,464

)

(935,548

)

Real estate, net

2,970,704

2,909,542

Operating lease right-of-use assets

57,225

58,917

Cash and cash equivalents

49,996

48,881

Restricted cash

25,870

29,984

Tenant and other receivables

33,881

26,658

Receivables arising from the straight-lining of rents

64,205

63,842

Identified intangible assets, net of accumulated amortization of $69,080 and $70,514, respectively

91,057

87,591

Deferred leasing costs, net of accumulated amortization of $22,671 and $21,982, respectively

31,193

31,220

Prepaid expenses and other assets

64,830

55,236

Total assets

3,388,961

3,311,871

LIABILITIES AND EQUITY

Liabilities:

Mortgages payable, net

1,665,218

1,606,774

Unsecured line of credit

30,000

—

Operating lease liabilities

54,710

56,329

Accounts payable, accrued expenses and other liabilities

83,799

97,397

Identified intangible liabilities, net of accumulated amortization of $62,274 and $59,668, respectively

173,780

174,899

Total liabilities

2,007,507

1,935,399

Commitments and contingencies

Shareholders’ equity:

Common shares: $0.01 par value; 500,000,000 shares authorized and 125,972,127 and 125,912,647 shares issued and outstanding, respectively

1,258

1,257

Additional paid-in capital

1,165,097

1,163,939

Accumulated other comprehensive income (loss)

299

(703

)

Accumulated earnings

120,752

124,566

Noncontrolling interests:

Operating partnership

74,534

69,140

Consolidated subsidiaries

19,514

18,273

Total equity

1,381,454

1,376,472

Total liabilities and equity

3,388,961

3,311,871

URBAN EDGE PROPERTIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

Three Months Ended March 31,

2026

2025

REVENUE

Rental revenue

124,185

118,092

Other income

8,439

Total revenue

132,624

118,165

EXPENSES

Depreciation and amortization

32,312

37,195

Real estate taxes

16,602

16,358

Property operating

28,938

24,059

General and administrative

9,136

9,531

Lease expense

3,173

3,371

Total expenses

90,161

90,514

Interest income

393

607

Interest and debt expense

(18,719

)

(19,755

)

(Loss) gain on extinguishment of debt

(212

)

498

Income before income taxes

23,925

9,001

Income tax expense

(378

)

(619

)

Net income

23,547

8,382

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

Operating partnership

(1,177

)

(432

)

Consolidated subsidiaries

275

248

Net income attributable to common shareholders

22,645

8,198

Earnings per common share - Basic:

0.18

0.07

Earnings per common share - Diluted:

0.18

0.07

Weighted average shares outstanding - Basic

125,879

125,513

Weighted average shares outstanding - Diluted

131,105

125,603

Reconciliation of Net Income to FFO and FFO as Adjusted

The following table reflects the reconciliation of net income to FFO and FFO as Adjusted for the three months ended March 31, 2026 and 2025. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 6 for a description of FFO and FFO as Adjusted.

Three Months Ended March 31,

(in thousands, except per share amounts)

2026

2025

Net income

23,547

8,382

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

Consolidated subsidiaries

275

248

Operating partnership

(1,177

)

(432

)

Net income attributable to common shareholders

22,645

8,198

Adjustments:

Rental property depreciation and amortization

31,835

36,828

Limited partnership interests in operating partnership

1,177

432

FFO Applicable to diluted common shareholders

55,657

45,458

FFO per diluted common share(1)

0.42

0.35

Adjustments to FFO:

Transaction, severance, litigation expenses and other, net(2)

(8,300

)

1,024

Non-cash adjustments(3)

—

(63

)

Loss (gain) on extinguishment of debt

212

(498

)

FFO as Adjusted applicable to diluted common shareholders

47,569

45,921

FFO as Adjusted per diluted common share(1)

0.36

0.35

Weighted Average diluted common shares(1)

131,105

130,328

(1)

Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share for the three months ended March 31, 2025 are higher than the GAAP weighted average diluted shares as a result of the dilutive impact of LTIP and OP units which may be redeemed for our common shares.

(2)

Includes $8.4 million of non-recurring reimbursements related to environmental remediation costs, and $0.1 million of transaction costs and severance expenses for the three months ended March 31, 2026.

(3)

Includes the acceleration and write-off of lease intangibles related to tenant bankruptcies.

Reconciliation of Net Income to NOI and Same-Property NOI

The following table reflects the reconciliation of net income to NOI, same-property NOI and same-property NOI including properties in redevelopment for the three months ended March 31, 2026 and 2025. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 6 for a description of NOI and same-property NOI.

Three Months Ended March 31,

(in thousands)

2026

2025

Net income

23,547

8,382

Depreciation and amortization

32,312

37,195

Interest and debt expense

18,719

19,755

General and administrative expense

9,136

9,531

Loss (gain) on extinguishment of debt

212

(498

)

Other (income) expense

(8,066

)

467

Income tax expense

378

619

Interest income

(393

)

(607

)

Non-cash revenue and expenses

(2,819

)

(3,272

)

NOI

73,026

71,572

Adjustments:

Sunrise Mall net operating loss

479

295

Tenant bankruptcy settlement income and lease termination income

—

(61

)

Non-same property NOI and other(1)

(8,246

)

(8,091

)

Same-property NOI

65,259

63,715

NOI related to properties being redeveloped

6,583

6,149

Same-property NOI including properties in redevelopment

71,842

69,864

(1)

Non-same property NOI includes NOI related to properties being redeveloped and properties acquired, disposed, or that are in the foreclosure process during the periods being compared, and results of the Company's captive insurance program.

Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

The following table reflects the reconciliation of net income to EBITDAre and Adjusted EBITDAre for the three months ended March 31, 2026 and 2025. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 6 for a description of EBITDAre and Adjusted EBITDAre.

Three Months Ended March 31,

(in thousands)

2026

2025

Net income

23,547

8,382

Depreciation and amortization

32,312

37,195

Interest and debt expense

18,719

19,755

Income tax expense

378

619

EBITDAre

74,956

65,951

Adjustments for Adjusted EBITDAre:

Transaction, severance, litigation expenses and other, net(1)

(8,300

)

1,024

Loss (gain) on extinguishment of debt

212

(498

)

Non-cash adjustments(2)

—

(63

)

Adjusted EBITDAre

66,868

66,414

(1)

(2)

Includes the acceleration and write-off of lease intangibles related to tenant bankruptcies.

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