NYSE$UE

Urban Edge Properties · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong second quarter results and raised outlook for full-year FFO as adjusted.

Urban Edge Properties reported strong second quarter results, with progress towards a targeted FFO of $1.35 per share in 2025. Leases representing $6 million of expected annual gross rent were commenced during the quarter. The company has a signed pipeline of executed leases that are expected to generate an additional $28 million in annual gross rent.

  • Reported same-property portfolio leased occupancy of 95.5%, an increase of 170 basis points compared to June 30, 2022 and an increase of 10 basis points compared to March 31, 2023.
  • Reported consolidated portfolio leased occupancy, excluding Sunrise Mall, of 94.7%, an increase of 280 basis points compared to June 30, 2022 and an increase of 10 basis points compared to March 31, 2023.
  • Executed 35 new leases, renewals and options totaling 362,000 sf during the quarter. Same-space leases totaled 355,000 sf and generated an average rent spread of 6.8% on a cash basis.
  • Issued 2022 Environmental, Social and Governance report, highlighting progress on ESG initiatives including the completion of first materiality assessment.

Headline financials

Total Revenue

$99.1M

Previous: $97.9M+1.2%
EPS (adj)

$0.30

Previous: $0.30+0.0%
Same-property portfolio leased occupancy

95.5%

Previous: 94.9%+0.6%
Same-property NOI growth

2.3%

Previous: 1.2%+91.7%
Capital Expenditures

-$56.8M

Previous: -$84.3M+32.6%
Free Cash Flow

-$46.5M

Previous: -$72.7M+36.0%
Net Income

$10.3M

Previous: $11.6M-11.7%
Operating Income

$3.05M

Previous: -$1.84M+265.8%
Gross Profit

$28.7M

Previous: $26.4M+8.6%
Cash & Equivalents

$93.4M

Previous: $125M-25.5%
Total Assets

$2.9B

Previous: $2.97B-2.3%
Stock-Based Comp

$2.2M

Previous: $2.5M-11.9%

Revenue & EPS history

Urban Edge · Revenue · Quarterly

$99.1M

Q2 2023+1.2%vs Q2 2022
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Forward guidance

The Company has updated its 2023 full-year guidance ranges, estimating FFO of $1.13 to $1.16 per diluted share, and FFO as Adjusted of $1.16 to $1.19 per diluted share.

Tailwinds

  • Same-property NOI growth, including properties in redevelopment, of 1.0% to 3.0%.
  • Same-property NOI growth, including properties in redevelopment, adjusted for the collection of amounts previously deemed uncollectible of 2.5% to 4.5%.
  • No new acquisitions or dispositions.
  • Recurring G&A expenses ranging from $34.5 million to $36.5 million.
  • Interest and debt expense ranging from $71.0 million to $72.5 million.

Headwinds

  • Excludes items that impact FFO comparability, including gains and/or losses on extinguishment of debt, transaction, severance, litigation, or any one-time items outside of the ordinary course of business.
  • 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 our actual results will not differ from the guidance set forth above.
  • Rising inflation
  • Discontinuation of USD LIBOR, which was replaced by SOFR after June 30, 2023

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.6%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+0.2%

Avg return

30 days after

51%

25 / 49 earnings

Positive

+10.1%

Q3 2023

Best reaction

-5.4%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.8%-2.1%+1.4%
Q4 2025-1.7%-1.3%-2.4%
Q3 2025-3.0%-6.2%-5.3%
Q1 2025-1.8%+0.1%-1.4%
Q4 2024+2.1%-0.0%-11.1%
Q3 2024+0.5%+1.0%+4.0%
Q2 2024-2.5%-6.1%+2.1%
Q1 2024-0.2%+0.5%+4.2%
Q4 2023-0.1%-1.1%-6.0%
Q3 2023+10.1%+15.3%+13.6%
Q2 2023+1.7%+0.8%-4.7%
Q1 2023-1.0%-2.0%+2.9%
Q4 2022+0.3%-0.4%-13.2%
Q3 2022+4.3%+4.3%+11.2%
Q2 2022+1.3%+3.2%+0.2%
Q1 2022-2.2%-8.8%-5.4%
Q4 2021+4.7%+3.7%+7.9%
Q3 2021+1.1%+0.7%-4.9%
Q2 2021+1.9%+0.9%+1.1%
Q1 2021+0.5%+2.3%+6.5%
Q4 2020-1.0%+2.9%+4.3%
Q3 2020-5.4%+33.2%+40.2%
Q2 2020+4.6%+11.5%+12.9%
Q1 2020+4.7%-5.4%-11.2%
Q4 2019-1.9%-1.0%-25.6%
Q3 2019-0.3%+2.4%-2.1%
Q2 2019-0.3%-3.6%+3.9%
Q1 2019-2.5%-0.8%-7.1%
Q4 2018-1.8%-1.4%-8.9%
Q3 2018-1.1%-2.3%-5.2%
Q2 2018-0.4%-1.1%+0.8%
Q1 2018-2.3%-0.3%+4.2%
Q4 2017+2.0%+4.1%+1.0%
Q3 2017+6.2%+1.7%+9.5%
Q2 2017-2.8%+0.4%+0.3%
Q1 2017-1.6%-3.8%-8.3%
Q4 2016+1.8%+3.2%-5.3%
Q3 2016-0.4%+1.4%+7.3%
Q2 2016-0.7%-0.1%-1.7%
Q1 2016+3.1%
Q4 2013+0.6%
Q4 2015-0.6%
Q3 2015+1.7%
Q3 2014+1.7%
Q2 2015+1.7%
Q2 2014+1.7%
Q4 2014+2.4%
Q1 2015+2.4%
Q1 2014+2.4%
Q3 2013
Q2 2013
Q1 2013

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