10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from __________to__________

Commission File Number: 001-36523 (Urban Edge Properties)

Commission File Number: 333-212951-01 (Urban Edge Properties LP)

URBAN EDGE PROPERTIES

URBAN EDGE PROPERTIES LP

(Exact name of Registrant as specified in its charter)

Maryland	(Urban Edge Properties)		47-6311266
Delaware	(Urban Edge Properties LP)		36-4791544
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)
888 Seventh Avenue	New York	New York	10019
(Address of Principal Executive Offices)			(Zip Code)

Registrant’s telephone number including area code:		(212)	956-2556
Securities registered pursuant to Section 12(b) of the Act:
Title of class of registered securities	Trading symbol	Name of exchange on which registered
Common shares of beneficial interest, par value $0.01 per share	UE	The New York Stock Exchange

_______________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

        Urban Edge Properties    Yes x   NO o         Urban Edge Properties LP     Yes x   NO o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  

        Urban Edge Properties    Yes  x   NO o         Urban Edge Properties LP     Yes x   NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Urban Edge Properties:

Large Accelerated Filer x Accelerated Filer ☐ Non-Accelerated Filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐

Urban Edge Properties LP:

Large Accelerated Filer ☐ Accelerated Filer ☐ Non-Accelerated Filer x Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act.

        Urban Edge Properties o                   Urban Edge Properties LP o   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

        Urban Edge Properties    YES ☐ NO x         Urban Edge Properties LP     YES ☐  NO x

As of October 29, 2021, Urban Edge Properties had 117,137,788 common shares outstanding.

URBAN EDGE PROPERTIES AND URBAN EDGE PROPERTIES LP

QUARTERLY REPORT ON FORM 10-Q

QUARTER ENDED SEPTEMBER 30, 2021

TABLE OF CONTENTS

	PART I
Item 1.	Financial Statements
	Consolidated Financial Statements of Urban Edge Properties:
	Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020 (unaudited)	1
	Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2021 and 2020 (unaudited)	2
	Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2021 and 2020 (unaudited)	3
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020 (unaudited)	5
	Consolidated Financial Statements of Urban Edge Properties LP:
	Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020 (unaudited)	7
	Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2021 and 2020 (unaudited)	8
	Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2021 and 2020 (unaudited)	9
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020 (unaudited)	11
	Urban Edge Properties and Urban Edge Properties LP
	Notes to Consolidated Financial Statements (unaudited)	13
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	40
Item 4.	Controls and Procedures	41
	PART II
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults Upon Senior Securities	42
Item 4.	Mine Safety Disclosures	42
Item 5.	Other Information	43
Item 6.	Exhibits	43
	Signatures	44

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended September 30, 2021 of Urban Edge Properties and Urban Edge Properties LP. Unless stated otherwise or the context otherwise requires, references to “UE” and “Urban Edge” mean Urban Edge Properties, a Maryland real estate investment trust (“REIT”), and references to “UELP” and the “Operating Partnership” mean Urban Edge Properties LP, a Delaware limited partnership. References to the “Company,” “we,” “us” and “our” mean collectively UE, UELP and those entities/subsidiaries consolidated by UE.

UELP is the entity through which we conduct substantially all of our business and own, either directly or through subsidiaries, substantially all of our assets. UE is the sole general partner and also a limited partner of UELP. As the sole general partner of UELP, UE has exclusive control of UELP’s day-to-day management.

As of September 30, 2021, UE owned an approximate 96% ownership interest in UELP. The remaining approximate 4% interest is owned by other limited partners. The other limited partners of UELP are members of management, our Board of Trustees and contributors of property interests acquired. Under the limited partnership agreement of UELP, unitholders may present their common units of UELP for redemption at any time (subject to restrictions agreed upon at the time of issuance of the units that may restrict such right for a period of time). Upon presentation of a common unit for redemption, UELP must redeem the unit for cash equal to the then value of a share of UE’s common shares, as defined by the limited partnership agreement. In lieu of cash redemption by UELP, however, UE may elect to acquire any common units so tendered by issuing common shares of UE in exchange for the common units. If UE so elects, its common shares will be exchanged for common units on a one-for-one basis. This one-for-one exchange ratio is subject to specified adjustments to prevent dilution. UE generally expects that it will elect to issue its common shares in connection with each such presentation for redemption rather than having UELP pay cash. With each such exchange or redemption, UE’s percentage ownership in UELP will increase. In addition, whenever UE issues common shares other than to acquire common units of UELP, UE must contribute any net proceeds it receives to UELP and UELP must issue to UE an equivalent number of common units of UELP. This structure is commonly referred to as an umbrella partnership REIT, or UPREIT.

The Company believes that combining the quarterly reports on Form 10-Q of UE and UELP into this single report provides the following benefits:

•enhances investors’ understanding of UE and UELP by enabling investors to view the business as a whole in the same manner as management views and operates the business;

•eliminates duplicative disclosure and provides a more streamlined and readable presentation because a substantial portion of the disclosure applies to both UE and UELP; and

•creates time and cost efficiencies throughout the preparation of one combined report instead of two separate reports.

The Company believes it is important to understand the few differences between UE and UELP in the context of how UE and UELP operate as a consolidated company. The financial results of UELP are consolidated into the financial statements of UE. UE does not have any other significant assets, liabilities or operations, other than its investment in UELP, nor does it have employees of its own. UELP, not UE, generally executes all significant business relationships other than transactions involving the securities of UE. UELP holds substantially all of the assets of UE and retains the ownership interests in the Company's joint ventures. UELP conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for the net proceeds from equity offerings by UE, which are contributed to the capital of UELP in exchange for units of limited partnership in UELP, as applicable, UELP generates all remaining capital required by the Company’s business. These sources may include working capital, net cash provided by operating activities, borrowings under the revolving credit agreement, the issuance of secured and unsecured debt and equity securities and proceeds received from the disposition of certain properties.

Shareholders’ equity, partners’ capital and noncontrolling interests are the main areas of difference between the consolidated financial statements of UE and UELP. The limited partners of UELP are accounted for as partners’ capital in UELP’s financial statements and as noncontrolling interests in UE’s financial statements. The noncontrolling interests in UELP’s financial statements include the interests of unaffiliated partners in consolidated entities. The noncontrolling interests in UE’s financial statements include the same noncontrolling interests at UELP’s level and limited partners of UELP. The differences between shareholders’ equity and partners’ capital result from differences in the equity issued at UE and UELP levels.

To help investors better understand the key differences between UE and UELP, certain information for UE and UELP in this report has been separated, as set forth below: Item 1. Financial Statements (unaudited), which includes specific disclosures for UE and UELP, Note 14, Equity and Noncontrolling Interest and Note 16, Earnings Per Share and Unit.

This report also includes separate Part I, Item 4. Controls and Procedures sections and separate Exhibits 31 and 32 certifications for each of UE and UELP in order to establish that the requisite certifications have been made and that UE and UELP are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934 and 18 U.S.C. §1350.

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

URBAN EDGE PROPERTIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share amounts)

	September 30,		December 31,
	2021		2020
ASSETS
Real estate, at cost:
Land	$	557,890	$	568,662
Buildings and improvements	2,364,061		2,326,450
Construction in progress	108,915		44,689
Furniture, fixtures and equipment	7,519		7,016
Total	3,038,385		2,946,817
Accumulated depreciation and amortization	(768,329)		(730,366)
Real estate, net	2,270,056		2,216,451
Operating lease right-of-use assets	75,654		80,997
Cash and cash equivalents	268,952		384,572
Restricted cash	53,840		34,681
Tenant and other receivables	18,178		15,673
Receivable arising from the straight-lining of rents	61,444		62,106
Identified intangible assets, net of accumulated amortization of $37,582 and $37,009, respectively	50,719		56,184
Deferred leasing costs, net of accumulated amortization of $16,915 and $16,419, respectively	17,413		18,585
Prepaid expenses and other assets	65,565		70,311
Total assets	$	2,881,821	$	2,939,560
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net	$	1,573,702	$	1,587,532
Operating lease liabilities	70,071		74,972
Accounts payable, accrued expenses and other liabilities	94,514		132,980
Identified intangible liabilities, net of accumulated amortization of $83,596 and $71,375, respectively	128,479		148,183
Total liabilities	1,866,766		1,943,667
Commitments and contingencies (Note 10)
Shareholders’ equity:
Common shares: $0.01 par value; 500,000,000 shares authorized and 117,137,788 and 117,014,317 shares issued and outstanding, respectively	1,170		1,169
Additional paid-in capital	997,085		989,863
Accumulated deficit	(31,968)		(39,467)
Noncontrolling interests:
Operating partnership	40,006		38,456
Consolidated subsidiaries	8,762		5,872
Total equity	1,015,055		995,893
Total liabilities and equity	$	2,881,821	$	2,939,560

See notes to consolidated financial statements (unaudited).

1

URBAN EDGE PROPERTIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except share and per share amounts)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
REVENUE
Rental revenue	$	105,985	$	75,359	$	294,257	$	241,624
Management and development fees	280		404		911		1,003
Other income	574		75		1,338		190
Total revenue	106,839		75,838		296,506		242,817
EXPENSES
Depreciation and amortization	23,171		22,888		68,534		69,658
Real estate taxes	15,862		14,916		47,826		44,778
Property operating	15,692		13,436		51,874		39,867
General and administrative	10,134		8,700		28,286		36,600
Casualty and impairment loss	372		—		372		—
Lease expense	3,164		3,415		9,665		10,200
Total expenses	68,395		63,355		206,557		201,103
Gain on sale of real estate	6,926		—		18,648		39,775
Interest income	77		282		303		2,387
Interest and debt expense	(14,638)		(18,136)		(44,193)		(53,884)
Gain on extinguishment of debt	—		—		—		34,908
Income (loss) before income taxes	30,809		(5,371)		64,707		64,900
Income tax (expense) benefit	(704)		(459)		(905)		13,103
Net income (loss)	30,105		(5,830)		63,802		78,003
Less net (income) loss attributable to noncontrolling interests in:
Operating partnership	(1,149)		225		(2,608)		(3,373)
Consolidated subsidiaries	(1,190)		—		(961)		—
Net income (loss) attributable to common shareholders	$	27,766	$	(5,605)	$	60,233	$	74,630
Earnings (loss) per common share - Basic:	$	0.24	$	(0.05)	$	0.51	$	0.63
Earnings (loss) per common share - Diluted:	$	0.24	$	(0.05)	$	0.51	$	0.63
Weighted average shares outstanding - Basic	117,087		116,625		117,009		118,033
Weighted average shares outstanding - Diluted	117,137		116,625		122,212		118,111

See notes to consolidated financial statements (unaudited).

2

URBAN EDGE PROPERTIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Unaudited)

(In thousands, except share and per share amounts)

	Common Shares							Noncontrolling Interests (“NCI”)
	Shares	Amount		Additional Paid-In Capital		Accumulated Earnings (Deficit)		Operating Partnership		Consolidated Subsidiaries		Total Equity
Balance, June 30, 2020	116,701,311	$	1,166	$	984,933	$	1,012	$	39,575	$	424	$	1,027,110
Net loss attributable to common shareholders	—	—		—		(5,605)		—		—		(5,605)
Net loss attributable to noncontrolling interests	—	—		—		—		(225)		—		(225)
Limited partnership interests:
Reallocation of noncontrolling interests	—	—		1,866		—		(1,866)		—		—
Share-based compensation expense	—	—		637		—		1,967		—		2,604
Balance, September 30, 2020	116,701,311	$	1,166	$	987,436	$	(4,593)	$	39,451	$	424	$	1,023,884

	Common Shares							Noncontrolling Interests (“NCI”)
	Shares	Amount		Additional Paid-In Capital		Accumulated Earnings (Deficit)		Operating Partnership		Consolidated Subsidiaries		Total Equity
Balance, June 30, 2021	117,137,337	$	1,170	$	990,255	$	(42,157)	$	43,568	$	6,154	$	998,990
Net income attributable to common shareholders	—	—		—		27,766		—		—		27,766
Net income (loss) attributable to noncontrolling interests	—	—		—		—		1,149		1,190		2,339
Limited partnership interests:
Units redeemed for common shares	—	—		—		—		(6,302)		—		(6,302)
Reallocation of noncontrolling interests	—	—		6,302		—		—		—		6,302
Common shares issued	451	—		21		(20)		—		—		1
Dividends to common shareholders ($0.15 per share)	—	—		—		(17,557)		—		—		(17,557)
Distributions to redeemable NCI ($0.15 per unit)	—	—		—		—		(711)		—		(711)
Contributions from noncontrolling interests	—	—		—		—		—		1,418		1,418
Share-based compensation expense	—	—		507		—		2,302		—		2,809
Balance, September 30, 2021	117,137,788	$	1,170	$	997,085	$	(31,968)	$	40,006	$	8,762	$	1,015,055

See notes to consolidated financial statements (unaudited).

3

	Common Shares							Noncontrolling Interests (“NCI”)
	Shares	Amount		Additional Paid-In Capital		Accumulated Earnings (Deficit)		Operating Partnership		Consolidated Subsidiaries		Total Equity
Balance, December 31, 2019	121,370,125	$	1,213	$	1,019,149	$	(52,546)	$	46,536	$	424	$	1,014,776
Net income attributable to common shareholders	—	—		—		74,630		—		—		74,630
Net income attributable to noncontrolling interests	—	—		—		—		3,373		—		3,373
Limited partnership interests:
Units redeemed for common shares	1,279,389	11		8,617		—		—		—		8,628
Reallocation of noncontrolling interests	—	—		9,724		—		(18,352)		—		(8,628)
Common shares issued	53,193	1		234		(30)		—		—		205
Repurchase of common shares	(5,873,923)	(59)		(54,082)		—		—		—		(54,141)
Dividends to common shareholders ($0.22 per share)	—	—		—		(26,647)		—		—		(26,647)
Distributions to redeemable NCI ($0.22 per unit)	—	—		—		—		(1,314)		—		(1,314)
Share-based compensation expense	—	—		5,255		—		9,208		—		14,463
Share-based awards retained for taxes	(127,473)	—		(1,461)		—		—		—		(1,461)
Balance, September 30, 2020	116,701,311	$	1,166	$	987,436	$	(4,593)	$	39,451	$	424	$	1,023,884

	Common Shares							Noncontrolling Interests (“NCI”)
	Shares	Amount		Additional Paid-In Capital		Accumulated Earnings (Deficit)		Operating Partnership		Consolidated Subsidiaries		Total Equity
Balance, December 31, 2020	117,014,317	$	1,169	$	989,863	$	(39,467)	$	38,456	$	5,872	$	995,893
Net income attributable to common shareholders	—	—		—		60,233		—		—		60,233
Net income attributable to noncontrolling interests	—	—		—		—		2,608		961		3,569
Limited partnership interests:
Units redeemed for common shares	100,000	—		840		—		(6,302)		—		(5,462)
Reallocation of noncontrolling interests	—	—		4,614		—		848		—		5,462
Common shares issued	36,533	1		308		(124)		—		—		185
Dividends to common shareholders ($0.45 per share)	—	—		—		(52,610)		—		—		(52,610)
Distributions to redeemable NCI ($0.45 per unit)	—	—		—		—		(2,152)		—		(2,152)
Contributions from noncontrolling interests	—	—		—		—		—		1,929		1,929
Share-based compensation expense	—	—		1,670		—		6,548		—		8,218
Share-based awards retained for taxes	(13,062)	—		(210)		—		—		—		(210)
Balance, September 30, 2021	117,137,788	$	1,170	$	997,085	$	(31,968)	$	40,006	$	8,762	$	1,015,055

See notes to consolidated financial statements (unaudited).

4

URBAN EDGE PROPERTIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Nine Months Ended September 30,
	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	63,802	$	78,003
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	69,872		70,965
Gain on sale of real estate	(18,648)		(39,775)
Casualty and impairment loss	372		—
Gain on extinguishment of debt	—		(34,908)
Amortization of below market leases, net	(19,775)		(6,803)
Noncash lease expense	5,343		5,655
Straight-lining of rent	338		9,503
Share-based compensation expense	8,218		14,463
Change in operating assets and liabilities:
Tenant and other receivables	(2,505)		(2,812)
Deferred leasing costs	(1,735)		(1,110)
Prepaid expenses and other assets	512		(11,656)
Lease liabilities	(4,901)		(5,017)
Accounts payable, accrued expenses and other liabilities	(7,756)		(1,679)
Net cash provided by operating activities	93,137		74,829
CASH FLOWS FROM INVESTING ACTIVITIES
Real estate development and capital improvements	(46,447)		(18,266)
Acquisitions of real estate	(54,547)		(92,132)
Proceeds from sale of operating properties	34,482		54,402
Net cash used in investing activities	(66,512)		(55,996)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(14,324)		(87,567)
Dividends to common shareholders	(106,441)		(26,647)
Distributions to redeemable noncontrolling interests	(4,225)		(1,314)
Taxes withheld for vested restricted shares	(210)		(1,461)
Contributions from noncontrolling interests	1,929		—
Borrowings under unsecured credit facility	—		250,000
Proceeds from mortgage loan borrowings	—		90,250
Repurchase of common shares	—		(54,141)
Debt issuance costs	—		(2,298)
Proceeds related to the issuance of common shares	185		205
Net cash (used in) provided by financing activities	(123,086)		167,027
Net (decrease) increase in cash and cash equivalents and restricted cash	(96,461)		185,860
Cash and cash equivalents and restricted cash at beginning of period	419,253		485,136
Cash and cash equivalents and restricted cash at end of period	$	322,792	$	670,996

See notes to consolidated financial statements (unaudited).

5

	Nine Months Ended September 30,
	2021		2020
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, net of amounts capitalized of $734 and $513, respectively	$	44,424	$	52,771
Cash payments for income taxes	5,077		482
NON-CASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures included in accounts payable and accrued expenses	32,600		7,330
Write-off of fully depreciated and impaired assets	5,336		10,748
Mortgage debt forgiven in refinancing	—		30,000
Assumption of debt through the acquisition of real estate	—		72,473
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents at beginning of period	$	384,572	$	432,954
Restricted cash at beginning of period	34,681		52,182
Cash and cash equivalents and restricted cash at beginning of period	$	419,253	$	485,136
Cash and cash equivalents at end of period	$	268,952	$	646,432
Restricted cash at end of period	53,840		24,564
Cash and cash equivalents and restricted cash at end of period	$	322,792	$	670,996

 See notes to consolidated financial statements (unaudited).

6

URBAN EDGE PROPERTIES LP

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except unit and per unit amounts)

	September 30,		December 31,
	2021		2020
ASSETS
Real estate, at cost:
Land	$	557,890	$	568,662
Buildings and improvements	2,364,061		2,326,450
Construction in progress	108,915		44,689
Furniture, fixtures and equipment	7,519		7,016
Total	3,038,385		2,946,817
Accumulated depreciation and amortization	(768,329)		(730,366)
Real estate, net	2,270,056		2,216,451
Operating lease right-of-use assets	75,654		80,997
Cash and cash equivalents	268,952		384,572
Restricted cash	53,840		34,681
Tenant and other receivables	18,178		15,673
Receivable arising from the straight-lining of rents	61,444		62,106
Identified intangible assets, net of accumulated amortization of $37,582 and $37,009, respectively	50,719		56,184
Deferred leasing costs, net of accumulated amortization of $16,915 and $16,419, respectively	17,413		18,585
Prepaid expenses and other assets	65,565		70,311
Total assets	$	2,881,821	$	2,939,560
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net	$	1,573,702	$	1,587,532
Operating lease liabilities	70,071		74,972
Accounts payable, accrued expenses and other liabilities	94,514		132,980
Identified intangible liabilities, net of accumulated amortization of $83,596 and $71,375, respectively	128,479		148,183
Total liabilities	1,866,766		1,943,667
Commitments and contingencies (Note 10)
Equity:
Partners’ capital:
General partner: 117,137,788 and 117,014,317 units outstanding, respectively	998,255		991,032
Limited partners: 4,849,749 and 4,729,010 units outstanding, respectively	42,396		41,302
Accumulated deficit	(34,358)		(42,313)
Total partners’ capital	1,006,293		990,021
Noncontrolling interest in consolidated subsidiaries	8,762		5,872
Total equity	1,015,055		995,893
Total liabilities and equity	$	2,881,821	$	2,939,560

See notes to consolidated financial statements (unaudited).

7

URBAN EDGE PROPERTIES LP

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except unit and per unit amounts)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
REVENUE
Rental revenue	$	105,985	$	75,359	$	294,257	$	241,624
Management and development fees	280		404		911		1,003
Other income	574		75		1,338		190
Total revenue	106,839		75,838		296,506		242,817
EXPENSES
Depreciation and amortization	23,171		22,888		68,534		69,658
Real estate taxes	15,862		14,916		47,826		44,778
Property operating	15,692		13,436		51,874		39,867
General and administrative	10,134		8,700		28,286		36,600
Casualty and impairment loss	372		—		372		—
Lease expense	3,164		3,415		9,665		10,200
Total expenses	68,395		63,355		206,557		201,103
Gain on sale of real estate	6,926		—		18,648		39,775
Interest income	77		282		303		2,387
Interest and debt expense	(14,638)		(18,136)		(44,193)		(53,884)
Gain on extinguishment of debt	—		—		—		34,908
Income (loss) before income taxes	30,809		(5,371)		64,707		64,900
Income tax (expense) benefit	(704)		(459)		(905)		13,103
Net income (loss)	30,105		(5,830)		63,802		78,003
Less net income attributable to NCI in consolidated subsidiaries	(1,190)		—		(961)		—
Net income (loss) attributable to unitholders	$	28,915	$	(5,830)	$	62,841	$	78,003
Earnings (loss) per unit - Basic:	$	0.24	$	(0.05)	$	0.52	$	0.64
Earnings (loss) per unit - Diluted:	$	0.24	$	(0.05)	$	0.51	$	0.63
Weighted average units outstanding - Basic	120,903		120,618		120,839		122,332
Weighted average units outstanding - Diluted	121,987		120,618		122,212		123,174

See notes to consolidated financial statements (unaudited).

8

URBAN EDGE PROPERTIES LP

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Unaudited)

(In thousands, except unit and per unit amounts)

	Total Shares	General Partner		Total Units	Limited Partners(1)		Accumulated Earnings (Deficit)		NCI in Consolidated Subsidiaries		Total Equity
Balance, June 30, 2020	116,701,311	$	986,099	4,676,787	$	40,911	$	(324)	$	424	$	1,027,110
Net loss attributable to unitholders	—	—		—	—		(5,830)		—		(5,830)
Reallocation of noncontrolling interests	—	1,866		—	(1,866)		—		—		—
Share-based compensation expense	—	637		—	1,967		—		—		2,604
Balance, September 30, 2020	116,701,311	$	988,602	4,676,787	$	41,012	$	(6,154)	$	424	$	1,023,884

(1) Limited partners have a 3.9% common limited partnership interest in the Operating Partnership as of September 30, 2020 in the form of units of interest in the OP Units and LTIP units.

	Total Shares	General Partner		Total Units	Limited Partners(2)		Accumulated Deficit		NCI in Consolidated Subsidiaries		Total Equity
Balance, June 30, 2021	117,137,337	$	991,425	5,376,145	$	46,396	$	(44,985)	$	6,154	$	998,990
Net income attributable to unitholders	—	—		—	—		28,915		—		28,915
Net income attributable to noncontrolling interests	—	—		—	—		—		1,190		1,190
Common units issued as a result of common shares issued by Urban Edge	451	21		(526,396)	—		(20)		—		1
Equity redemption of OP units	—	—		—	(6,302)		—		—		(6,302)
Reallocation of noncontrolling interests	—	6,302		—	—		—		—		6,302
Distributions to Partners ($0.15 per unit)	—	—		—	—		(18,268)		—		(18,268)
Contributions from noncontrolling interests	—	—		—	—		—		1,418		1,418
Share-based compensation expense	—	507		—	2,302		—		—		2,809
Balance, September 30, 2021	117,137,788	$	998,255	4,849,749	$	42,396	$	(34,358)	$	8,762	$	1,015,055

(2) Limited partners have a 4.0% common limited partnership interest in the Operating Partnership as of September 30, 2021 in the form of units of interest in the OP Units and LTIP units.

See notes to consolidated financial statements (unaudited).

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	Total Shares	General Partner		Total Units	Limited Partners(1)		Accumulated Earnings (Deficit)		NCI in Consolidated Subsidiaries		Total Equity
Balance, December 31, 2019	121,370,125	$	1,020,362	5,833,318	$	50,156	$	(56,166)	$	424	$	1,014,776
Net income attributable to unitholders	—	—		—	—		78,003		—		78,003
Common units issued as a result of common shares issued by Urban Edge	53,193	235		122,858	—		(30)		—		205
Equity redemption of OP units	1,279,389	8,628		(1,279,389)	—		—		—		8,628
Repurchase of common shares	(5,873,923)	(54,141)		—	—		—		—		(54,141)
Reallocation of noncontrolling interests	—	9,724		—	(18,352)		—		—		(8,628)
Distributions to Partners ($0.22 per unit)	—	—		—	—		(27,961)		—		(27,961)
Share-based compensation expense	—	5,255		—	9,208		—		—		14,463
Share-based awards retained for taxes	(127,473)	(1,461)		—	—		—		—		(1,461)
Balance, September 30, 2020	116,701,311	$	988,602	4,676,787	$	41,012	$	(6,154)	$	424	$	1,023,884

(1) Limited partners have a 3.9% common limited partnership interest in the Operating Partnership as of September 30, 2020 in the form of units of interest in the OP Units and LTIP units.

	Total Shares	General Partner		Total Units	Limited Partners(2)		Accumulated Deficit		NCI in Consolidated Subsidiaries		Total Equity
Balance, December 31, 2020	117,014,317	$	991,032	4,729,010	$	41,302	$	(42,313)	$	5,872	$	995,893
Net income attributable to unitholders	—	—		—	—		62,841		—		62,841
Net income attributable to noncontrolling interests	—	—		—	—		—		961		961
Common units issued as a result of common shares issued by Urban Edge	36,533	309		220,739	—		(124)		—		185
Equity redemption of OP units	100,000	840		(100,000)	(6,302)		—		—		(5,462)
Reallocation of noncontrolling interests	—	4,614		—	848		—		—		5,462
Distributions to Partners ($0.45 per unit)	—	—		—	—		(54,762)		—		(54,762)
Contributions from noncontrolling interests	—	—		—	—		—		1,929		1,929
Share-based compensation expense	—	1,670		—	6,548		—		—		8,218
Share-based awards retained for taxes	(13,062)	(210)		—	—		—		—		(210)
Balance, September 30, 2021	117,137,788	$	998,255	4,849,749	$	42,396	$	(34,358)	$	8,762	$	1,015,055

(2) Limited partners have a 4.0% common limited partnership interest in the Operating Partnership as of September 30, 2021 in the form of units of interest in the OP Units and LTIP units.

See notes to consolidated financial statements (unaudited).

10

URBAN EDGE PROPERTIES LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Nine Months Ended September 30,
	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	63,802	$	78,003
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	69,872		70,965
Gain on sale of real estate	(18,648)		(39,775)
Casualty and impairment loss	372		—
Gain on extinguishment of debt	—		(34,908)
Amortization of below market leases, net	(19,775)		(6,803)
Noncash lease expense	5,343		5,655
Straight-lining of rent	338		9,503
Share-based compensation expense	8,218		14,463
Change in operating assets and liabilities:
Tenant and other receivables	(2,505)		(2,812)
Deferred leasing costs	(1,735)		(1,110)
Prepaid expenses and other assets	512		(11,656)
Lease liabilities	(4,901)		(5,017)
Accounts payable, accrued expenses and other liabilities	(7,756)		(1,679)
Net cash provided by operating activities	93,137		74,829
CASH FLOWS FROM INVESTING ACTIVITIES
Real estate development and capital improvements	(46,447)		(18,266)
Acquisitions of real estate	(54,547)		(92,132)
Proceeds from sale of operating properties	34,482		54,402
Net cash used in investing activities	(66,512)		(55,996)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(14,324)		(87,567)
Distributions to partners	(110,666)		(27,961)
Taxes withheld for vested restricted units	(210)		(1,461)
Borrowings under unsecured credit facility	—		250,000
Proceeds from mortgage loan borrowings	—		90,250
Repurchase of common shares	—		(54,141)
Debt issuance costs	—		(2,298)
Proceeds related to the issuance of common shares	185		205
Contributions from noncontrolling interests	1,929		—
Net cash (used in) provided by financing activities	(123,086)		167,027
Net (decrease) increase in cash and cash equivalents and restricted cash	(96,461)		185,860
Cash and cash equivalents and restricted cash at beginning of period	419,253		485,136
Cash and cash equivalents and restricted cash at end of period	$	322,792	$	670,996

See notes to consolidated financial statements (unaudited).

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	Nine Months Ended September 30,
	2021		2020
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, net of amounts capitalized of $734 and $513, respectively	$	44,424	$	52,771
Cash payments for income taxes	5,077		482
NON-CASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures included in accounts payable and accrued expenses	32,600		7,330
Write-off of fully depreciated and impaired assets	5,336		10,748
Mortgage debt forgiven in refinancing	—		30,000
Assumption of debt through the acquisition of real estate	—		72,473
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents at beginning of period	$	384,572	$	432,954
Restricted cash at beginning of period	34,681		52,182
Cash and cash equivalents and restricted cash at beginning of period	$	419,253	$	485,136
Cash and cash equivalents at end of period	$	268,952	$	646,432
Restricted cash at end of period	53,840		24,564
Cash and cash equivalents and restricted cash at end of period	$	322,792	$	670,996

 See notes to consolidated financial statements (unaudited).

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URBAN EDGE PROPERTIES AND URBAN EDGE PROPERTIES LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.ORGANIZATION

Urban Edge Properties (“UE”, “Urban Edge” or the “Company”) (NYSE: UE) is a Maryland real estate investment trust focused on managing, developing, redeveloping, and acquiring retail real estate in urban communities, primarily in the New York metropolitan area. Urban Edge Properties LP (“UELP” or the “Operating Partnership”) is a Delaware limited partnership formed to serve as UE’s majority-owned partnership subsidiary and to own, through affiliates, all of the Company’s real estate properties and other assets. Unless the context otherwise requires, references to “we”, “us” and “our” refer to Urban Edge Properties and UELP and their consolidated entities/subsidiaries.

The Operating Partnership’s capital includes general and common limited partnership interests in the operating partnership (“OP Units”). As of September 30, 2021, Urban Edge owned approximately 96% of the outstanding common OP Units with the remaining limited OP Units held by members of management, Urban Edge’s Board of Trustees and contributors of property interests acquired. Urban Edge serves as the sole general partner of the Operating Partnership. The third-party unitholders have limited rights over the Operating Partnership such that they do not have characteristics of a controlling financial interest. As such, the Operating Partnership is considered a variable interest entity (“VIE”), and the Company is the primary beneficiary which consolidates it. The Company’s only investment is the Operating Partnership. The VIE’s assets can be used for purposes other than the settlement of the VIE’s obligations and the Company’s partnership interest is considered a majority voting interest.

As of September 30, 2021, our portfolio consisted of 68 shopping centers, five malls and two industrial parks totaling approximately 16.4 million square feet (“sf”), which is inclusive of a 95% controlling interest in Walnut Creek, CA (Mt. Diablo), and an 82.5% controlling interest in Sunrise Mall, in Massapequa, NY.

2.BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions of Form 10-Q. Certain information and footnote disclosures included in our annual financial statements have been condensed or omitted. In the opinion of management, the consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company and the Operating Partnership and the results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021. Accordingly, these consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the Securities Exchange Commission (“SEC”).

The consolidated balance sheets as of September 30, 2021 and December 31, 2020 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. As of September 30, 2021 and December 31, 2020, excluding the Operating Partnership, we consolidated two VIEs with total assets of $64.6 million and $43.6 million, respectively and total liabilities of $45.1 million and $31.5 million, respectively. The consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 include the consolidated accounts of the Company and the Operating Partnership. All intercompany transactions have been eliminated in consolidation.

In accordance with ASC 205 Presentation of Financial Statements, certain prior year balances have been reclassified in order to conform to the current period presentation.

Our primary business is the ownership, management, redevelopment, development and operation of retail shopping centers and malls. We do not distinguish from our primary business or group our operations on a geographical basis for purposes of measuring performance. The Company’s chief operating decision maker reviews operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. None of our tenants accounted for more than 10% of our revenue or property operating income as of September 30, 2021. We aggregate all of our properties into one reportable segment due to their similarities with regard to the nature and economics of the properties, tenants and operations, as well as long-term average financial performance.

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3.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Real Estate — Real estate is carried at cost, net of accumulated depreciation and amortization. Expenditures for ordinary maintenance and repairs are expensed to operations as they are incurred. Significant renovations that improve or extend the useful lives of assets are capitalized. As real estate is undergoing redevelopment activities, all property operating expenses directly associated with and attributable to the redevelopment, including interest, are capitalized to the extent the capitalized costs of the property do not exceed the estimated fair value of the property when completed. If the cost of the redeveloped property, including the net book value of the existing property, exceeds the estimated fair value of redeveloped property, the excess is charged to impairment expense. The capitalization period begins when redevelopment activities are under way and ends when the project is substantially complete. Depreciation is recognized on a straight-line basis over estimated useful lives which range from one to 40 years.

Upon the acquisition of real estate, we assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and acquired liabilities and we allocate the purchase price based on these assessments on a relative fair value basis. We assess fair value based on estimated cash flow projections utilizing appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known trends, and market/economic conditions. We record acquired intangible assets (including acquired above-market leases, acquired in-place leases and tenant relationships) and acquired intangible liabilities (including below-market leases) at their estimated fair value. We amortize identified intangibles that have finite lives over the period they are expected to contribute directly or indirectly to the future cash flows of the property or business acquired.

Our properties are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis taking into account the appropriate capitalization rate in determining a future terminal value. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Estimated fair value may be based on discounted future cash flows utilizing appropriate discount and capitalization rates and, in addition to available market information, third-party appraisals, broker selling estimates or sale agreements under negotiations, less selling costs. Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows change based on uncertain market conditions, our evaluation of impairment losses may be different and such differences could be material to our consolidated financial statements.

Tenant and Other Receivables and Changes in Collectibility Assessment — Tenant receivables include unpaid amounts billed to tenants, disputed enforceable charges and accrued revenues for future billings to tenants for property expenses. We evaluate the collectibility of amounts due from tenants and disputed enforceable charges on both a lease-by-lease and a portfolio-level, which result from the inability of tenants to make required payments under their operating lease agreements. We recognize changes in the collectibility assessment of these operating leases as adjustments to rental revenue in accordance with ASC 842 Leases. Management exercises judgment in assessing collectibility and considers payment history, current credit status and publicly available information about the financial condition of the tenant, among other factors. Tenant receivables, and receivables arising from the straight-lining of rents, are written-off directly when management deems the collectibility of substantially all future lease payments from a specific lease is not probable, at which point, the Company will begin recognizing revenue from such leases prospectively, based on actual amounts received. This write-off effectively reduces cumulative non-cash rental income recognized from the straight-lining of rents since lease commencement. If the Company subsequently determines that it is probable it will collect substantially all of the lessee’s remaining lease payments under the lease term, the Company will reinstate the receivables balance, including those arising from the straight-lining of rents, adjusting for the amount related to the period when the lease was accounted for on a cash basis.

Recently Issued Accounting Literature — Effective for the fiscal period beginning January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses. In connection with the adoption of ASU 2016-03, we also adopted (i) ASU 2018-19 Codification Improvements to ASC 326, Financial Instruments - Credit Losses, (ii) ASU 2019-04, Codification Improvements to ASC 326, Financial Statements - Credit Losses, Topic 815, Derivatives and Hedging and Topic 825, Financial Instruments, (iii) ASU 2019-05 Financial Instruments - Credit Losses (ASC 326): Targeted Transition Relief and (iv) ASU 2019-11 Codification Improvements to ASC 326, Financial Instruments - Credit Losses. ASU 2016-13 introduces a new model for estimating credit losses for certain types of financial instruments and also modifies the impairment model with new methodology for estimating credits losses. In November 2018, the FASB issued ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments — Credit Losses, which included amendments to clarify receivables arising from operating leases are within the scope ASC 842 Leases. Due to the adoption of ASC 842 on January 1, 2019, the Company includes rental revenue deemed uncollectible as a reduction to rental revenue in "Rental revenue" in the consolidated statements of income. As of September 30, 2021, the Company did not have any material outstanding financial

14

instruments. The adoption of ASU 2016-13 did not have a material impact to our consolidated financial statements and disclosures.

In December 2019, the FASB issued ASU 2019-12 Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of the income tax accounting. ASU 2019-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. We adopted ASU 2019-12 effective January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements and disclosures.

In March 2020 and January 2021, the FASB issued ASU 2020-04 Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2021-01 Reference Rate Reform (ASC 848): Scope which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 and ASU 2021-01 are effective for all entities as of March 12, 2020 through December 31, 2022. We currently do not anticipate the need to modify our existing debt agreements as a result of reference rate reform in the current year, however if any modification is executed as a result of reference rate reform, the Company will elect the optional expedient available under ASU 2020-04 and ASU 2021-01, which allows entities to account for the modification as if the modification was not substantial. We will disclose the nature of and reason for electing the optional expedient in each interim and annual financial statement period if and when applicable through December 31, 2022.

In April 2020, the FASB issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated with the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief, that lessors provide to mitigate the economic effects of COVID-19 on lessees, is a lease modification under ASC 842. Instead, when the cash flows resulting from the lease concession granted for COVID-19 rent relief are substantially the same or less than the cash flows of the original contract, an entity may elect to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract).

The FASB stated that there are multiple ways to account for rent concessions, none of which the FASB believes are more preferable than the others. Two of those methods are: (i) account for the concessions as if no changes to the lease contract were made; under that accounting, a lessor would continue to increase its lease receivable and continue to recognize income, referred to as the “receivable approach”; or (ii) account for the deferred payments or abatements as variable lease payments; under that accounting, a lessor would recognize the payment as income in profit or loss in the period in which the changes in facts and circumstances on which the variable lease payments are based occurred, referred to as the “variable approach”.

The Company makes this election on a disaggregated basis, with such election applied consistently to leases with similar characteristics and similar circumstances. As of September 30, 2021, the Company has granted rent deferrals accounted under both the receivable approach by electing the Lease Modification Q&A and as modifications due to term extensions of the leases. The Company has also granted abatements accounted for under both the variable approach and as modifications due to the executed agreements including other rental term modifications, such as term extensions and substantial changes in cash flows. Refer to Note 10 to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q.

Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they are not relevant to the Company or the Operating Partnership, or they are not expected to have a material impact on our consolidated financial statements.

15

4.     ACQUISITIONS AND DISPOSITIONS

Acquisitions

During the nine months ended September 30, 2021 and 2020, we closed on the following acquisitions:

Date Purchased	Property Name	City	State	Square Feet	Purchase Price(1)
					(in thousands)
August 10, 2021	601 Murray Road	East Hanover	NJ	88,000	$	18,312
August 19, 2021	151 Ridgedale Avenue	East Hanover	NJ	187,000	37,759
				2021 Total	$	56,071
February 12, 2020	Kingswood Center	Brooklyn	NY	130,000	$	90,212
February 12, 2020	Kingswood Crossing	Brooklyn	NY	110,000	77,077
				2020 Total	$	167,289

(1) The total purchase price for the properties acquired during the nine months ended September 30, 2021 and 2020 includes $0.6 million and $2.5 million, respectively, of transaction costs incurred related to the acquisitions.

The two industrial properties, acquired in August 2021, are adjacent to our existing 943,000 sf warehouse park in East Hanover, NJ. The acquisition of 151 Ridgedale Avenue was partially funded via a Section 1031 exchange (a “1031 exchange”) using cash proceeds from previous dispositions.

Kingswood Center and Kingswood Crossing, acquired in February 2020, are located along Kings Highway in the Midwood neighborhood of Brooklyn, NY and were funded via 1031 exchanges using cash proceeds from dispositions. Additionally, as part of the acquisition of Kingswood Center, the Company assumed a $65.5 million mortgage, which matures in 2028.

The aggregate purchase price of the above property acquisitions have been allocated as follows:

Property Name	Land		Buildings and improvements		Identified intangible assets(1)		Identified intangible liabilities(1)		Debt premium		Total Purchase Price
(in thousands)
601 Murray Road	$	2,075	$	14,733	$	1,722	$	(218)	$	—	$	18,312
151 Ridgedale Avenue	2,990		35,509		—		(740)		—		37,759
2021 Total	$	5,065	$	50,242	$	1,722	$	(958)	$	—	$	56,071
Kingswood Center	$	15,690	$	76,766	$	9,263	$	(4,534)	$	(6,973)	$	90,212
Kingswood Crossing	8,150		64,159		4,768		—		—		77,077
2020 Total	$	23,840	$	140,925	$	14,031	$	(4,534)	$	(6,973)	$	167,289

(1) As of September 30, 2021, the remaining weighted average amortization periods of the identified intangible assets and identified intangible liabilities acquired in 2021 were 7.6 years and 1.4 years, respectively. The remaining weighted average amortization periods of the identified intangible assets and identified intangible liabilities acquired in 2020 were 8.1 years and 9.1 years, respectively.

Dispositions

During the nine months ended September 30, 2021, we disposed of three properties and one property parcel and received proceeds of $34.9 million, net of selling costs, resulting in an $18.6 million gain on sale of real estate. Of these dispositions completed during the nine months ended September 30, 2021, two were completed as a 1031 exchange with the acquisition of 151 Ridgedale Avenue, allowing for the deferral of capital gains from the sale for income tax purposes.

During the nine months ended September 30, 2020, we disposed of three properties and received proceeds of $58.1 million, net of selling costs, resulting in a $39.8 million net gain on sale of real estate. The sale of these properties were completed as 1031 exchanges with Kingswood Crossing as a result of the sales occurring within 180 days of the Company’s acquisition.

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5.     IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES

Our identified intangible assets (acquired in-place and above-market leases) and liabilities (acquired below-market leases), net of accumulated amortization, were $50.7 million and $128.5 million, respectively, as of September 30, 2021 and $56.2 million and $148.2 million, respectively, as of December 31, 2020.

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in additional rental income of $15.0 million and $19.8 million for the three and nine months ended September 30, 2021, respectively, and $2.3 million and $6.8 million for the same periods in 2020.

Amortization of acquired in-place leases inclusive of customer relationships resulted in additional depreciation and amortization expense of $2.2 million and $6.1 million for the three and nine months ended September 30, 2021, respectively, and $2.1 million and $6.3 million for the same periods in 2020.

On September 29, 2021, the Company entered into agreements to terminate our three remaining Kmart and Sears leases effective October 15, 2021. The modification of these leases resulted in accelerated amortization of the below-market intangible lease liabilities and in-place lease intangible assets of $12.5 million and $0.4 million, respectively.

The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2021 and the five succeeding years:

(Amounts in thousands)	Below-Market		Above-Market		In-Place Lease
Year	Operating Lease Amortization		Operating Lease Amortization		Amortization
2021(1)	$	35,787	$	(284)	$	(1,886)
2022	7,223		(803)		(6,198)
2023	7,178		(695)		(5,057)
2024	6,942		(631)		(4,570)
2025	6,761		(452)		(3,922)
2026	6,383		(434)		(3,609)

(1) Remainder of 2021. Includes accelerated amortization of below-market leases of $33.5 million related to the leases with Kmart and Sears.

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6.     MORTGAGES PAYABLE

The following is a summary of mortgages payable as of September 30, 2021 and December 31, 2020.

		Interest Rate at
(Amounts in thousands)	Maturity	September 30, 2021	September 30, 2021		December 31, 2020
First mortgages secured by:
Variable rate
Cherry Hill (Plaza at Cherry Hill)(1)	5/24/2022	1.69%	$	28,541	$	28,930
Westfield (One Lincoln Plaza)(1)(3)	5/24/2022	1.69%	—		4,730
Woodbridge (Plaza at Woodbridge)(1)	5/25/2022	1.69%	54,595		55,340
Jersey City (Hudson Commons)(2)	11/15/2024	1.99%	28,172		28,586
Watchung(2)	11/15/2024	1.99%	26,226		26,613
Bronx (1750-1780 Gun Hill Road)(2)	12/1/2024	1.99%	24,803		25,172
Total variable rate debt			162,337		169,371
Fixed rate
Bergen Town Center - West, Paramus	4/8/2023	3.56%	300,000		300,000
Bronx (Shops at Bruckner)	5/1/2023	3.90%	9,864		10,351
Jersey City (Hudson Mall)	12/1/2023	5.07%	22,345		22,904
Yonkers Gateway Center	4/6/2024	4.16%	27,207		28,482
Brick	12/10/2024	3.87%	49,778		50,000
North Plainfield	12/10/2025	3.99%	25,100		25,100
Las Catalinas	2/1/2026	4.43%	124,897		127,669
Middletown	12/1/2026	3.78%	31,400		31,400
Rockaway	12/1/2026	3.78%	27,800		27,800
East Hanover (200 - 240 Route 10 West)	12/10/2026	4.03%	63,000		63,000
North Bergen (Tonnelle Ave)	4/1/2027	4.18%	100,000		100,000
Manchester	6/1/2027	4.32%	12,500		12,500
Millburn	6/1/2027	3.97%	23,055		23,381
Totowa	12/1/2027	4.33%	50,800		50,800
Woodbridge (Woodbridge Commons)	12/1/2027	4.36%	22,100		22,100
East Brunswick	12/6/2027	4.38%	63,000		63,000
East Rutherford	1/6/2028	4.49%	23,000		23,000
Brooklyn (Kingswood Center)	2/6/2028	5.07%	71,035		71,696
Hackensack	3/1/2028	4.36%	66,400		66,400
Marlton	12/1/2028	3.86%	37,400		37,400
East Hanover Warehouses	12/1/2028	4.09%	40,700		40,700
Union (2445 Springfield Ave)	12/10/2028	4.01%	45,600		45,600
Freeport (Freeport Commons)	12/10/2029	4.07%	43,100		43,100
Montehiedra	6/1/2030	5.00%	79,831		81,141
Montclair	8/15/2030	3.15%	7,250		7,250
Garfield	12/1/2030	4.14%	40,300		40,300
Mt Kisco	11/15/2034	6.40%	12,526		12,952
Total fixed rate debt			1,419,988		1,428,026
Total mortgages payable			1,582,325		1,597,397
	Unamortized debt issuance costs		(8,623)		(9,865)
Total mortgages payable, net			$	1,573,702	$	1,587,532

(1)Bears interest at one month LIBOR plus 160 bps.

(2)Bears interest at one month LIBOR plus 190 bps.

(3)Loan repaid in July 2021 in connection with the disposition of the property.

The net carrying amount of real estate collateralizing the above indebtedness amounted to approximately $1.3 billion as of September 30, 2021. Our mortgage loans contain covenants that limit our ability to incur additional indebtedness on these properties and in certain circumstances require lender approval of tenant leases and/or yield maintenance upon repayment prior to maturity. As of September 30, 2021, we were in compliance with all debt covenants.

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As of September 30, 2021, the principal repayments of the Company’s total outstanding debt for the next five years and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,
2021(1)	$	4,114
2022	98,915
2023	349,814
2024	163,720
2025	40,946
2026	230,694
Thereafter	694,122

(1) Remainder of 2021.

Revolving Credit Agreement

On January 15, 2015, we entered into a $500 million Revolving Credit Agreement (the “Agreement”) with certain financial institutions. On March 7, 2017, we amended and extended the Agreement to increase the credit facility size by $100 million to $600 million and extended the maturity date to March 7, 2021, with two six-month extension options. On July 29, 2019, we entered into a second amendment to the Agreement to extend the maturity date to January 29, 2024, with two six-month extension options.

On June 3, 2020, we entered into a third amendment to the Agreement, which among other things, modified certain definitions and the measurement period for certain financial covenants to a trailing four-quarter period instead of the most recent quarter annualized. Company borrowings under the Agreement are subject to interest at LIBOR plus 1.05% to 1.50% and an annual facility fee of 15 to 30 basis points. Both the spread over LIBOR and the facility fee are based on our current leverage ratio and are subject to change. The Agreement contains customary financial covenants including a maximum leverage ratio of 60% and a minimum fixed charge coverage ratio of 1.5x.

No amounts were drawn or outstanding under the Agreement as of September 30, 2021 or December 31, 2020, respectively. Financing costs associated with executing the Agreement of $2.5 million and $3.3 million as of September 30, 2021 and December 31, 2020, respectively, are included in the prepaid expenses and other assets line item of the consolidated balance sheets, as deferred financing costs, net.

Mortgage on Las Catalinas Mall

In April 2020, we notified the servicer of the $129 million non-recourse mortgage loan on Las Catalinas Mall in Puerto Rico that cash flow would be insufficient to service the debt and that we were unwilling to fund the shortfalls. In December 2020, the non-recourse mortgage loan on Las Catalinas Mall was modified to convert the mortgage from an amortizing 4.43% loan to interest only payments, starting at 3.00% in 2021 and increasing 50 basis points annually until returning to 4.43% in 2024 and thereafter, and to include the ability for the Company to repay the loan at a discounted value of $72.5 million, beginning in August 2023 through the extended maturity date of February 2026.

While it is possible we will be able to repay the loan at the discounted value, it is contingent upon certain factors including the future operating performance of the property as well as the ability to meet all required payments on the loan. Therefore, in accordance with ASC 470-60 Troubled Debt Restructurings, the Company did not recognize a gain at the time of the restructuring, as the future cash payments, including contingent payments, are greater than the carrying value of the mortgage payable.

We have accrued interest of $5.4 million related to this mortgage, which is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheet as of September 30, 2021. We incurred $1.2 million of lender fees in connection with the loan modification which are treated as a reduction of the mortgage payable balance and amortized over the term of the loan in accordance with the provisions under ASC 470-60.

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Mortgage on The Outlets at Montehiedra

In connection with the refinancing of the loan secured by The Outlets at Montehiedra (“Montehiedra”) in the second quarter of 2020, the Company provided a $12.5 million limited corporate guarantee. The guarantee is reduced commensurate with the loan amortization schedule and will reduce to zero in approximately five years. As of September 30, 2021, the remaining exposure under the guarantee is $10.3 million. There was no separate liability recorded related to this guarantee.

7.     INCOME TAXES

The Company elected to be taxed as a REIT under sections 856-860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the filing of its 2015 tax return for its tax year ended December 31, 2015. With the exception of the Company’s taxable REIT subsidiary (“TRS”), to the extent the Company meets certain requirements under the Code, the Company will not be taxed on its federal taxable income. If we fail to qualify as a REIT for any taxable year, we will be subject to federal income taxes at regular corporate rates, including any alternative minimum tax, which, for corporations, was repealed under the Tax Cuts and Jobs Act (“TCJA”) and may not be able to qualify as a REIT for the four subsequent taxable years. In addition to its TRS, the Company is subject to certain foreign and state and local income taxes, in particular income taxes arising from its operating activities in Puerto Rico, which are included in income tax expense in the consolidated statements of income.

For U.S. federal income tax purposes, the REIT and other minority members are partners in the Operating Partnership. As such, the partners are required to report their share of taxable income on their respective tax returns. However, during the nine months ended September 30, 2021 and 2020, certain non-real estate operating activities that could not be performed by the REIT, occurred through the Company’s taxable REIT subsidiary (“TRS”), and the Company’s TRS is subject to federal, state and local income taxes. These income taxes are included in the income tax expense in the consolidated statements of income.

During the nine months ended September 30, 2021, the REIT was subject to Puerto Rico corporate income taxes on its allocable share of the Company’s Puerto Rico operating activities. The Puerto Rico corporate income tax consists of a flat 18.5% tax rate plus a graduated income surcharge tax for a maximum corporate income tax rate of 37.5%. In addition, the REIT is subject to a 10% branch profit tax on the earnings and profits generated from its allocable share of the Company’s Puerto Rico operating activities and such tax is included in income tax expense in the consolidated statements of income. During the nine months ended September 30, 2020 the Company also had activities occurring in special partnerships subject to a Puerto Rico 29% non-resident withholding tax on the net income from operating activities allocated to the Operating Partnership.

During the nine months ended September 30, 2020, the Company completed a refinancing and legal entity restructuring transaction at The Outlets at Montehiedra in San Juan, PR, which resulted in a deferred tax asset, net of $13.1 million and recognized an accompanying income tax benefit on its consolidated statements of income. As a result, for the three and nine months ended September 30, 2020 the Company recorded an income tax benefit of $1.3 million and $14.8 million, respectively, which is included in income tax benefit (expense) in the consolidated statements of income.

For the tax year ended December 31, 2020, the Company recognized a gain on extinguishment of debt for U.S. federal income tax purposes and implemented various tax planning strategies to limit its impact on the Company’s overall U.S. federal taxable income. The strategies implemented resulted in the recognition of an estimated state and local income tax expense of $4.5 million for the REIT during the year ended December 31, 2020. During the nine months ended September 30, 2021, the Company refined the estimated state and local income tax accrued in 2020 and recognized an income tax benefit of $0.5 million.

For the three and nine months ended September 30, 2021, the Puerto Rico income tax expense was $0.7 million and $1.4 million, respectively and the REIT’s state and local income tax benefit was $0.5 million for the nine months ended September 30, 2021. There was no state and local income tax benefit recognized for the three months ended September 30, 2021. All amounts for the three and nine months ended September 30, 2021 and 2020 are included in income tax expense on the consolidated statements of income.

8.     LEASES

All rental revenue was generated from operating leases for the three and nine months ended September 30, 2021 and September 30, 2020, respectively. The components of rental revenue for the three and nine months ended September 30, 2021 and 2020 were as follows:

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	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		2021		2020
Rental Revenue
Fixed lease revenue(1)	$	80,961	$	53,396	$	216,200	$	174,141
Variable lease revenue	25,024		21,963		78,057		67,483
Total rental revenue	$	105,985	$	75,359	$	294,257	$	241,624

(1) Amount includes write-off of $12.5 million of below-market intangible liabilities related to the termination of the Kmart and Sears leases.

9.     FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value.

Financial Assets and Liabilities Measured at Fair Value on a Recurring or Non-Recurring Basis

There were no financial assets or liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2021 and December 31, 2020.

Financial Assets and Liabilities not Measured at Fair Value

Financial assets and liabilities that are not measured at fair value on the consolidated balance sheets include cash and cash equivalents and mortgages payable. Cash and cash equivalents are carried at cost, which approximates fair value. The fair value of mortgages payable is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist. The fair value of cash and cash equivalents is classified as Level 1 and the fair values of mortgages payable is classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments as of September 30, 2021 and December 31, 2020.

	As of September 30, 2021				As of December 31, 2020
(Amounts in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents	$	268,952	$	268,952	$	384,572	$	384,572
Liabilities:
Mortgages payable(1)	$	1,582,325	$	1,588,270	$	1,597,397	$	1,611,868

(1) Carrying amounts exclude unamortized debt issuance costs of $8.6 million and $9.9 million as of September 30, 2021 and December 31, 2020, respectively.

Nonfinancial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

We assess the carrying value of our properties for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

No material impairment charges were recognized during the three and nine months ended September 30, 2021 or 2020.

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10.     COMMITMENTS AND CONTINGENCIES

There are various legal actions against us in the ordinary course of business. After consultation with legal counsel, we have concluded that the outcome of such matters will not have a material adverse effect on our financial condition, results of operations, or cash flows.

Redevelopment and Anchor Repositioning

As of September 30, 2021, we had approximately $152.4 million of active development, redevelopment and anchor repositioning projects under way, of which $91.1 million remains to be funded. Further, while we have identified future projects in our development pipeline, we are under no obligation to execute and fund any of these projects and each of these projects is being reevaluated considering market conditions.

Termination of Kmart and Sears Leases

On September 29, 2021, the Company reached an agreement with Transform HoldCo LLC, the owner and operator of Kmart and Sears, to terminate its remaining leases at Bruckner Commons, Sunrise Mall and The Outlets at Montehiedra effective October 15, 2021. The Company recorded a $20 million accrual as of September 30, 2021, for the payment made on October 15, 2021, to recapture control of these spaces. As controlling these anchor spaces is a critical aspect of the value creation plans the Company has under way to reposition these spaces, the $20 million has been capitalized as construction in progress.

Insurance 

The Company’s primary and excess insurance policies providing coverage for pollution related losses have an aggregate limit of $50 million and provide remediation and business interruption coverage for pollution incidents, which pursuant to our policies expressly include the presence and dispersal of viruses. On December 23, 2020, the Company initiated litigation in New Jersey state court, Bergen County, under these policies to recover uncollected rents and other amounts resulting from the COVID-19 virus.

Insurance premiums are typically charged directly to each of the properties but not all of the cost of such premiums are recovered. The Company is responsible for deductibles, losses in excess of insurance coverage, and the portion of premiums not reimbursable by tenants at our properties, which could be material.

We continue to monitor the state of the insurance market and the scope and costs of available coverage. We cannot anticipate what coverage will be available on commercially reasonable terms in the future and expect premiums across most coverage lines to increase in light of recent events. The incurrence of uninsured losses, costs or uncovered premiums could materially and adversely affect our business, results of operations and financial condition.

Certain of our loans and other agreements contain customary covenants requiring the maintenance of insurance coverage. Although we believe that we currently have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. If lenders or other counterparties insist on greater coverage than we are able to obtain, such requirement could materially and adversely affect our ability to finance our properties and expand our portfolio.

Environmental Matters

Each of our properties has been subjected to varying degrees of environmental assessment at various times. Based on these assessments, we have accrued costs of $1.7 million and $1.8 million on our consolidated balance sheets as of September 30, 2021 and December 31, 2020, respectively, for remediation costs for environmental contamination at certain properties. While this accrual reflects our best estimates of the potential costs of remediation at these properties, there can be no assurance that the actual costs will not exceed these amounts. Although we are not aware of any other material environmental contamination, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us.

Pandemic-Related Contingencies

On March 11, 2020, the World Health Organization characterized the COVID-19 outbreak as a pandemic. Since March 2020, the Company has granted rent concessions and other lease-related relief, such as rent deferrals, to tenants impacted by the pandemic. Rent relief, deferral or abatements and tenant defaults on lease obligations, such as repayment of deferred rent may have a negative impact on our rental revenue and net income.

Other than adjusting revenue for tenant receivables that may not be collectible, the Company is not currently aware of any other loss contingencies related to the COVID-19 pandemic that would require recognition at this time.

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Bankruptcies

Although our rental revenue is supported by long-term leases, leases may be rejected in a bankruptcy proceeding and the related tenant stores may permanently vacate prior to lease expiration. In the event a tenant with a significant number of leases or square footage in our shopping centers files for bankruptcy and rejects its leases with us, we could experience a reduction in our revenues. We monitor the operating performance and rent collections of all tenants in our shopping centers, especially those tenants in arrears or operating retail formats that are experiencing significant changes in competition, business practice, or store closings in other locations. Given the economic environment brought upon by COVID-19, certain tenants experienced liquidity or financial hardships and filed for Chapter 11 bankruptcy protection since the pandemic was declared. Although some of these tenants intend to exit the Chapter 11 bankruptcy process and resume operations, the outcomes of such proceedings are unknown and the Company is currently exploring leasing alternatives for these spaces.

11.     PREPAID EXPENSES AND OTHER ASSETS

The following is a summary of the composition of the prepaid expenses and other assets in the consolidated balance sheets:

	Balance at
(Amounts in thousands)	September 30, 2021		December 31, 2020
Other assets	$	9,463	$	5,953
Deferred tax asset, net	38,376		39,677
Deferred financing costs, net of accumulated amortization of $5,653 and $4,819, respectively	2,512		3,347
Finance lease right-of-use asset	2,724		2,724
Real estate held for sale	—		7,056
Prepaid expenses:
Real estate taxes	7,560		8,093
Insurance	3,298		1,583
Licenses/fees	1,632		1,878
Total Prepaid expenses and other assets	$	65,565	$	70,311

12.     ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

The following is a summary of the composition of accounts payable, accrued expenses and other liabilities in the consolidated balance sheets:

	Balance at
(Amounts in thousands)	September 30, 2021		December 31, 2020
Dividend payable	$	—	$	55,905
Deferred tenant revenue	23,958		26,594
Accrued interest payable	9,437		11,095
Accrued capital expenditures and leasing costs(1)	33,115		7,797
Security deposits	6,720		5,884
Finance lease liability	3,001		2,993
Accrued payroll expenses	6,811		5,797
Other liabilities and accrued expenses	11,472		16,915
Total accounts payable, accrued expenses and other liabilities	$	94,514	$	132,980

(1) Amount includes $20 million due in connection with the agreements to terminate our three Kmart and Sears leases.

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13.     INTEREST AND DEBT EXPENSE

The following table sets forth the details of interest and debt expense in the consolidated statements of income:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		2021		2020
Interest expense	$	13,893	$	17,433	$	41,946	$	51,771
Amortization of deferred financing costs	745		703		2,247		2,113
Total Interest and debt expense	$	14,638	$	18,136	$	44,193	$	53,884

14.     EQUITY AND NONCONTROLLING INTEREST

At-The-Market Program

On May 5, 2021 the Company established an at-the-market equity program (the “ATM Program”), pursuant to which the Company may offer and sell common shares, par value $0.01 per share, with an aggregate gross sales price of up to $250 million. Sales under the ATM Program may be made from time to time, as needed, by means of ordinary brokers’ transactions or other transactions that are deemed to be “at the market” offerings, in privately negotiated transactions, which may include block trades, or as otherwise agreed with the sales agents.

As of September 30, 2021, the Company has not issued any common shares under the ATM Program. Future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common shares, and our capital needs. The Company has no obligation to sell any shares under the ATM Program.

Share Repurchase Program

In March 2020, the Company’s Board of Trustees authorized a share repurchase program for up to $200 million of the Company’s common shares. Under the program, the Company may repurchase its shares from time to time in the open market or in privately negotiated transactions in compliance with Securities and Exchange Commission Rule 10b-18. The amount and timing of the purchases will depend on a number of factors including the price and availability of the Company’s shares, trading volume and general market conditions. The share repurchase program does not obligate the Company to acquire any particular amount of common shares and may be suspended or discontinued at any time at the Company’s discretion.

During the nine months ended September 30, 2021, no shares were repurchased by the Company. During the nine months ended September 30, 2020, the Company repurchased 5.9 million common shares at a weighted average share price of $9.22 under this program, for a total of $54.1 million.

Dividends and Distributions

During the three months ended September 30, 2021, the Company declared distributions on common shares and OP units of $0.15 per share/unit. During the three months ended September 30, 2020, the Company temporarily suspended dividends as a result of the COVID-19 pandemic and resulting uncertainty, and as such, no dividends were declared on our common shares or OP units. During the nine months ended September 30, 2021 and 2020, respectively, the Company declared distributions on our common shares and OP units of $0.45 and $0.22 per share/unit in the aggregate.

Noncontrolling Interests in Operating Partnership

Noncontrolling interests in the Operating Partnership reflected on the consolidated balance sheets of the Company are comprised of OP units and limited partnership interests in the Operating Partnership in the form of LTIP unit awards. LTIP unit awards were granted to certain executives pursuant to our 2015 Omnibus Share Plan (the “Omnibus Share Plan”) and our 2018 Inducement Equity Plan (the “Inducement Plan”). OP units were issued to contributors in exchange for their property interests in connection with the Company’s property acquisitions in 2017.

The total of the OP units and LTIP units represent a 4.0% and 4.2% weighted-average interest in the Operating Partnership for the three and nine months ended September 30, 2021, respectively. Holders of outstanding vested LTIP units may, from and after two years from the date of issuance, redeem their LTIP units for cash, or for the Company’s common shares on a one-for-one basis, solely at our election. Holders of outstanding OP units may redeem their units for cash or the Company’s common shares on a one-for-one basis, solely at our election.

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Noncontrolling Interests in Consolidated Subsidiaries

The Company’s noncontrolling interests relate to the 5% interest held by others in our property in Walnut Creek, CA (Mount Diablo) and 17.5% held by others in our property in Massapequa, NY. The net income attributable to noncontrolling interests is presented separately in our consolidated statements of income.

15.     SHARE-BASED COMPENSATION

Share-Based Compensation Expense

Share-based compensation expense, which is included in general and administrative expenses in our consolidated statements of income, is summarized as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		2021		2020
Share-based compensation expense components:
Restricted share expense	$	98	$	199	$	365	$	653
Stock option expense	384		432		1,181		4,559
LTIP expense(1)	1,326		1,023		3,659		6,323
Performance-based LTI expense(2)	976		944		2,889		2,886
Deferred share unit (“DSU”) expense	25		6		124		42
Total Share-based compensation expense	$	2,809	$	2,604	$	8,218	$	14,463

(1) LTIP expense includes the time-based portion of the 2018, 2019, 2020 and 2021 LTI Plans.

(2) Performance-based LTI expense includes the 2017 OPP plan and the performance-based portion of the 2018, 2019, 2020 and 2021 LTI Plans.

Equity award activity during the nine months ended September 30, 2021 included: (i) 333,333 stock options vested, (ii) 325,625 LTIP units granted, (iii) 151,398 LTIP units vested, (iv) 2,886 LTIP units forfeited, (v) 34,532 restricted shares vested, (vi) 17,933 restricted shares granted, and (vii) 5,945 restricted shares forfeited.

2021 Long-Term Incentive Plan

On February 10, 2021, the Compensation Committee of the Board of Trustees of the Company approved the Company’s 2021 Long-Term Incentive Plan (“2021 LTI Plan”). The Plan is a multi-year, equity compensation program under which participants, including our Chairman and Chief Executive Officer, have the opportunity to earn awards in the form of LTIP units that vest based on the passage of time (one-half of the program) and performance goals tied to our relative and absolute total shareholder return (“TSR”) during the three-year performance period following their grant (one-half of the program). The total grant date fair value under the 2021 LTI Plan was $7.8 million comprising both performance-based and time-based awards as described further below:

Performance-based awards

For the performance-based awards under the 2021 LTI Plan, participants have the opportunity to earn awards in the form of LTIP Units if Urban Edge’s absolute and/or relative TSR meets certain criteria over the three-year performance measurement period (the “Performance Period”) beginning on February 10, 2021 and ending on February 9, 2024. The Company granted performance-based awards under the 2021 LTI Plan that represent 398,977 LTIP Units. The fair value of the performance-based award portion of the 2021 LTI Plan on the date of grant was $3.9 million using a Monte Carlo simulation to estimate the fair value through a risk-neutral premise.

Under the Absolute TSR component, 40% of the LTIP Units will be earned if the Company’s TSR over the Performance Period

is equal to 18%, 100% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to 27%, and 165% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to or greater than 36%. The Relative TSR component is based on the Company’s performance compared to a peer group comprised of 15 companies. Under the Relative TSR Component, 40% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to the 35th percentile of the peer group, 100% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to the 55th percentile of the peer group, and 165% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to or above the 75th percentile of the peer group, with earning determined using linear interpolation if in between such relative and absolute TSR thresholds.

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Time-based awards

The time-based awards granted under the 2021 LTI Plan, also granted in the form of LTIP Units, vest ratably over three years except in the case of our Chairman and Chief Executive Officer, where the vesting is ratably over four years. As of September 30, 2021, the Company granted time-based awards under the 2021 LTI Plan that represent 273,615 LTIP units with a grant date fair value of $3.9 million.

16.     EARNINGS PER SHARE AND UNIT

Urban Edge Earnings per Share

We have calculated earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of Urban Edge common shares and participating securities is calculated according to dividends declared and participating rights in undistributed earnings. Restricted shares issued pursuant to our share-based compensation program are considered participating securities, and as such have non-forfeitable rights to receive dividends.

The following table sets forth the computation of our basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands, except per share amounts)	2021		2020		2021		2020
Numerator:
Net income (loss) attributable to common shareholders	$	27,766	$	(5,605)	$	60,233	$	74,630
Less: Earnings allocated to unvested participating securities	(12)		4		(29)		(50)
Net income (loss) available for common shareholders - basic	$	27,754	$	(5,601)	$	60,204	$	74,580
Impact of assumed conversions:
OP and LTIP units	—		—		2,608		—
Net income available for common shareholders - dilutive	$	27,754	$	(5,601)	$	62,812	$	74,580
Denominator:
Weighted average common shares outstanding - basic	117,087		116,625		117,009		118,033
Effect of dilutive securities(1):
Restricted share awards	50		—		56		78
Assumed conversion of OP and LTIP units	—		—		5,147		—
Weighted average common shares outstanding - diluted	117,137		116,625		122,212		118,111
Earnings per share available to common shareholders:
Earnings (loss) per common share - Basic	$	0.24	$	(0.05)	$	0.51	$	0.63
Earnings (loss) per common share - Diluted	$	0.24	$	(0.05)	$	0.51	$	0.63

(1) For the three months ended September 30, 2021 and the three and nine months ended September 30, 2020, the effect of the redemption of OP and LTIP units for Urban Edge common shares would have an anti-dilutive effect on the calculation of diluted EPS. Accordingly, the impact of such redemption has not been included in the determination of diluted EPS for these periods.

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Operating Partnership Earnings per Unit

The following table sets forth the computation of basic and diluted earnings per unit:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands, except per unit amounts)	2021		2020		2021		2020
Numerator:
Net income (loss) attributable to unitholders	$	28,915	$	(5,830)	$	62,841	$	78,003
Less: net income attributable to participating securities	(12)		4		(29)		(50)
Net income (loss) available for unitholders	$	28,903	$	(5,826)	$	62,812	$	77,953
Denominator:
Weighted average units outstanding - basic	120,903		120,618		120,839		122,332
Effect of dilutive securities issued by Urban Edge	50		—		56		78
Unvested LTIP units	1,034		—		1,317		764
Weighted average units outstanding - diluted	121,987		120,618		122,212		123,174
Earnings per unit available to unitholders:
Earnings (loss) per unit - Basic	$	0.24	$	(0.05)	$	0.52	$	0.64
Earnings (loss) per unit - Diluted	$	0.24	$	(0.05)	$	0.51	$	0.63

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ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 and business 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 Quarterly Report on Form 10-Q. 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) the economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic, including its impact on our retail tenants and their ability to make rent and other payments or honor their commitments under existing leases; (ii) the loss or bankruptcy of major tenants; (iii) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration, 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; (iv) the impact of e-commerce on our tenants’ business; (v) macroeconomic conditions, such as a disruption of, or lack of access to the capital markets, as well as potential volatility in the Company’s share price; (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 and other factors, including the potential phasing out of LIBOR; (ix) the Company’s ability to pay down, refinance, 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; and (xv) the loss of key executives. 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, 2020 and the other documents filed by the Company with the SEC, including the information contained in this Quarterly Report on Form 10-Q.

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. 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 Quarterly Report on Form 10-Q.

The following discussion should be read in conjunction with the consolidated financial statements and notes thereto included in Part I of this Quarterly Report on Form 10-Q.

Overview

Urban Edge Properties (“UE”, “Urban Edge” or the “Company”) (NYSE: UE) is a Maryland real estate investment trust that manages, develops, redevelops, and acquires retail real estate, primarily in the New York metropolitan area. Urban Edge Properties LP (“UELP” or the “Operating Partnership”) is a Delaware limited partnership formed to serve as UE’s majority-owned partnership subsidiary and to own, through affiliates, all of the Company’s real estate properties and other assets. Unless the context otherwise requires, references to “we”, “us” and “our” refer to Urban Edge Properties and UELP and their consolidated entities/subsidiaries.

The Operating Partnership’s capital includes general and common limited partnership interests in the operating partnership (“OP Units”). As of September 30, 2021, Urban Edge owned approximately 96% of the outstanding common OP Units with the remaining limited OP Units held by members of management, Urban Edge’s Board of Trustees and contributors of property interests acquired. Urban Edge serves as the sole general partner of the Operating Partnership.

As of September 30, 2021, our portfolio consisted of 68 shopping centers, five malls and two industrial parks totaling approximately 16.4 million square feet.

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Critical Accounting Policies and Estimates

The Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 contains a description of our critical accounting policies, including accounting for real estate, leases and revenue recognition. For the nine months ended September 30, 2021, there were no material changes to these policies.

Recent Accounting Pronouncements

Refer to Note 3 to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q for information regarding recent accounting pronouncements that may affect us.

Results of Operations

We derive substantially all of our revenue from rents received from tenants under existing leases on each of our properties. This revenue includes fixed base rents, recoveries of expenses that we have incurred and that we pass through to the individual tenants and percentage rents that are based on specified percentages of tenants’ revenue, in each case as provided in the respective leases.

Our primary cash expenditures consist of our property operating and capital costs, general and administrative expenses, and interest and debt expense. Property operating expenses include: real estate taxes, repairs and maintenance, management expenses, insurance and utilities; general and administrative expenses include payroll, professional fees, information technology, office expenses and other administrative expenses; and interest and debt expense primarily consists of interest on our mortgage debt. In addition, we incur substantial non-cash charges for depreciation and amortization on our properties. We also capitalize certain expenses, such as taxes, interest and salaries related to properties under development or redevelopment until the property is ready for its intended use.

Our consolidated results of operations often are not comparable from period to period due to the impact of property acquisitions, dispositions, developments, redevelopments and changes in accounting policies. The results of operations of any acquired properties are included in our financial statements as of the date of acquisition. Our results of operations are affected by national, regional and local economic conditions, as well as macroeconomic conditions, which are at times subject to volatility and uncertainty. The current COVID-19 pandemic has increased volatility and uncertainty and has created significant economic disruption in many markets. Vaccinations for the COVID-19 virus have been widely distributed among the general U.S. population, which has loosened restrictions previously mandated on our tenants identified as nonessential; however the potential emergence of vaccine-resistant variants of COVID-19 may trigger restrictions to be put back in place. Such restrictions may include mandatory business shut-downs, reduced business operations and social distancing requirements. The long-term consequences of the various restrictions taken during the pandemic on consumer behavior is currently unknown. Specifically, the revenue and sales volume for certain tenants identified as nonessential may decline significantly as demand for their services and products declines potentially longer term. We are actively managing our business to respond to the ongoing economic and social impact and uncertainty relating to the COVID-19 pandemic; however, our future near term and potentially longer term results of operations may be significantly adversely affected. See “Pandemic-Related Contingencies” under Liquidity and Capital Resources and “Risk Factors” in Part I, Item 1A, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

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The following provides an overview of our key financial metrics based on our consolidated results of operations (refer to Net Operating Income (“NOI”), same-property NOI and Funds From Operations applicable to diluted common shareholders (“FFO”) described later in this section):

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		2021		2020
Net income (loss)	$	30,105	$	(5,830)	$	63,802	$	78,003
FFO applicable to diluted common shareholders(1)	45,302		16,880		112,463		107,330
NOI(2)	56,809		46,019		167,625		151,020
Same-property NOI(2)	55,676		43,940		159,925		140,057

(1) Refer to page 35 for a reconciliation to the nearest generally accepted accounting principles (“GAAP”) measure.

(2) Refer to page 34 for a reconciliation to the nearest GAAP measure.

Redevelopment and Anchor Repositioning

The Company has sixteen active development, redevelopment or anchor repositioning projects with total estimated costs of $152.4 million, of which $61.3 million (or 40%) have been incurred and $91.1 million remains to be funded as of September 30, 2021. We plan on generating additional income from our existing assets by redeveloping underutilized existing space, developing new space and pad sites, repositioning anchors, and incorporating non-retail uses such as industrial, self-storage, office and other uses. We continue to monitor the stabilization dates of these projects as a result of the impact of the COVID-19 pandemic on our tenants and vendors. We have identified future projects in our development pipeline, but we are under no obligation to execute and fund any of these projects and each of these projects is being reevaluated considering market conditions.

Termination of Kmart and Sears Leases

On September 29, 2021, the Company reached an agreement with Transform HoldCo LLC, the owner and operator of Kmart and Sears, to terminate its remaining leases at Bruckner Commons, Sunrise Mall and The Outlets at Montehiedra effective October 15, 2021. The Company recorded a $20 million accrual as of September 30, 2021, for the payment made on October 15, 2021, to recapture control of these spaces. As controlling these anchor spaces is a critical aspect of the value creation plans the Company has under way to reposition these spaces, the $20 million has been capitalized as construction in progress.

Acquisition/Disposition Activity

During the nine months ended September 30, 2021, we disposed of three properties and one property parcel and received proceeds of $34.9 million, net of selling costs, resulting in an $18.6 million gain on sale of real estate. Of these dispositions completed during the nine months ended September 30, 2021, two were completed as a 1031 exchange with the acquisition of 151 Ridgedale Avenue, allowing for the deferral of capital gains from the sale for income tax purposes.

In August 2021, the Company acquired two industrial properties, which are adjacent to our existing 943,000 sf warehouse park in East Hanover, NJ. The acquisition of 151 Ridgedale Avenue was partially funded via a Section 1031 exchange using cash proceeds from previous dispositions.

Equity Activity

Equity award activity during the nine months ended September 30, 2021 included: (i) 333,333 stock options vested, (ii) 325,625 LTIP units granted, (iii) 151,398 LTIP units vested, (iv) 2,886 LTIP units forfeited, (v) 34,532 restricted shares vested, (vi) 17,933 restricted shares granted, and (vii) 5,945 restricted shares forfeited. Refer to Note 15 to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q for more information regarding the Company’s equity award activity.

On February 10, 2021, the Compensation Committee of the Board of Trustees of the Company approved the Company’s 2021 Long-Term Incentive Plan (“2021 LTI Plan”). The Plan is a multi-year, equity compensation program under which participants, including our Chairman and Chief Executive Officer, have the opportunity to earn awards in the form of LTIP units that vest based on the passage of time (one-half of the program) and performance goals tied to our relative and absolute total shareholder return (“TSR”) during the three-year performance period following their grant (one-half of the program). The total grant date fair value under the 2021 LTI Plan was $7.8 million comprising both performance-based and time-based awards. During the nine months ended September 30, 2021, the Company issued 398,977 performance-based LTIP units and 273,615 time-based LTIP units, respectively, in connection with the 2021 LTI Plan.

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Comparison of the Three Months Ended September 30, 2021 to September 30, 2020

Net income for the three months ended September 30, 2021 was $30.1 million, compared to a net loss of $5.8 million for the three months ended September 30, 2020. The following table summarizes certain line items from our consolidated statements of income that we believe are important in understanding our operations and/or those items which significantly changed in the three months ended September 30, 2021 as compared to the same period of 2020:

	Three Months Ended September 30,
(Amounts in thousands)	2021		2020		$ Change
Total revenue	$	106,839	$	75,838	$	31,001
Property operating expenses	15,692		13,436		2,256
General and administrative expenses	10,134		8,700		1,434
Gain on sale of real estate	6,926		—		6,926
Interest and debt expense	14,638		18,136		(3,498)

Total revenue increased by $31.0 million to $106.8 million in the third quarter of 2021 from $75.8 million in the third quarter of 2020. The increase is primarily attributable to:

•$12.5 million of accelerated amortization of below-market intangibles in connection with the termination of our Kmart and Sears leases in the third quarter of 2021;

•$10.9 million decrease in rental revenue deemed uncollectible;

•$5.4 million increase in non-cash revenue due to $4.7 million write-offs of receivables arising from the straight-lining of rents for tenants put on cash basis in the third quarter of 2020 compared to a $0.7 million reinstatement of straight-line balances, net, for the third quarter of 2021 in connection with tenants moved from cash basis to accrual basis;

•$0.9 million increase in tenant reimbursement income due to higher common area maintenance expenses for utilities, insurance, repairs and maintenance, and security in the third quarter of 2021 and the Sunrise Mall acquisition in December 2020;

•$0.8 million increase in percentage rent; and

•$0.4 million increase in lease termination income.

Property operating expenses increased by $2.3 million to $15.7 million in the third quarter of 2021 from $13.4 million in the third quarter of 2020. The increase is primarily attributable to:

•$1.4 million increase as a result of property acquisitions, net of dispositions; and

•$0.9 million higher common area maintenance expenses across the portfolio as a result of spend reductions and limited center hours due to COVID-19 interruptions in the third quarter of 2020.

General and administrative expenses increased by $1.4 million to $10.1 million in the third quarter of 2021 from $8.7 million in the third quarter of 2020. This is primarily attributable to an increase in professional fees, transaction costs and other expenses.

A gain on the sale of real estate of $6.9 million was recognized in the third quarter of 2021 in connection with the disposition of our property in Turnersville, NJ.

Interest and debt expense decreased by $3.5 million to $14.6 million in the third quarter of 2021 from $18.1 million in the third quarter of 2020. The decrease is primarily attributable to:

•$2.6 million as a result of the troubled debt restructuring of the mortgage secured by Las Catalinas Mall in Puerto Rico in December 2020;

•$0.7 million of interest incurred in the third quarter of 2020 resulting from the $250 million draw on our revolving credit agreement in March 2020. All borrowings were repaid in November 2020; and

•$0.2 million higher capitalized interest on development and redevelopment projects.

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Comparison of the Nine Months Ended September 30, 2021 to September 30, 2020

Net income for the nine months ended September 30, 2021 was $63.8 million, compared to net income of $78.0 million for the nine months ended September 30, 2020. The following table summarizes certain line items from our consolidated statements of income that we believe are important in understanding our operations and/or those items which significantly changed in the nine months ended September 30, 2021 as compared to the same period of 2020:

	Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		$ Change
Total revenue	$	296,506	$	242,817	$	53,689
Property operating expenses	51,874		39,867		12,007
General and administrative expenses	28,286		36,600		(8,314)
Interest income	303		2,387		(2,084)
Gain on sale of real estate	18,648		39,775		(21,127)
Interest and debt expense	44,193		53,884		(9,691)
Gain on extinguishment of debt	—		34,908		(34,908)
Income tax expense (benefit)	905		(13,103)		14,008

Total revenue increased by $53.7 million to $296.5 million in the nine months ended September 30, 2021 from $242.8 million in the nine months ended September 30, 2020. The increase is primarily attributable to:

•$23.6 million decrease in rental revenue deemed uncollectible;

•$13.0 million of below-market lease income driven by accelerated amortization of intangibles in connection with the termination of our Kmart and Sears leases in the third quarter of 2021;

•$9.2 million increase in non-cash revenue driven by straight-line write-offs for tenants put on cash basis during 2020 compared to a reinstatement of straight-line balances, net of write-offs, during 2021;

•$6.0 million increase in tenant reimbursement income due to higher common area maintenance expenses;

•$1.1 million increase in percentage rent driven by higher tenant sales in 2021; and

•$0.8 million net increase in lease termination income and other income.

Property operating expenses increased by $12.0 million to $51.9 million in the nine months ended September 30, 2021 from $39.9 million in the nine months ended September 30, 2020. The increase is primarily attributable to:

•$6.5 million increase in common area maintenance expenses across the portfolio as a result of spend reductions and limited center hours due to COVID-19 interruptions during 2020; and

•$5.5 million increase as a result of property acquisitions, net of dispositions.

General and administrative expenses decreased by $8.3 million to $28.3 million in the nine months ended September 30, 2021 from $36.6 million in the nine months ended September 30, 2020. The decrease is primarily attributable to:

•$7.2 million of executive transition costs incurred in the second quarter of 2020 including accelerated amortizations of unvested equity awards; and

•$1.1 million net decrease in transaction, severance and other expenses.

Interest income decreased by $2.1 million to $0.3 million in the nine months ended September 30, 2021 from $2.4 million in the nine months ended September 30, 2020. The decrease is primarily attributed to lower interest rates.

We recognized a gain on sale of real estate of $18.6 million in the nine months ended September 30, 2021 due to the sale of three properties and one property parcel. We recognized a gain on sale of real estate of $39.8 million in the nine months ended September 30, 2020 due to the sale of three operating properties.

Interest and debt expense decreased by $9.7 million to $44.2 million in the nine months ended September 30, 2021 from $53.9 million in the nine months ended September 30, 2020. The decrease is primarily attributable to:

•$6.2 million as a result of the troubled debt restructuring of the mortgage secured by Las Catalinas Mall in Puerto Rico in December 2020;

•$1.8 million of interest incurred from the $250 million draw on our revolving credit agreement in March 2020. All borrowings were repaid in November 2020;

•$0.9 million lower variable-rate debt due to lower interest rates; and

•$0.8 million decrease due to the refinancing of the mortgage secured by The Outlets at Montehiedra.

A gain on extinguishment of debt of $34.9 million in the second quarter of 2020 was recognized as a result of the refinancing of the mortgage secured by The Outlets at Montehiedra, consisting of the forgiveness of the $30 million junior loan plus accrued

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interest of $5.4 million, offset by the write-off of $0.4 million of unamortized deferred financing fees and $0.1 million of transaction costs.

Income tax decreased from a $13.1 million benefit for the nine months ended September 30, 2020 to an expense of $0.9 million for the nine months ended September 30, 2021, primarily attributable to the tax impact of the mortgage refinancing and legal entity restructuring transactions related to our mall in Puerto Rico, The Outlets at Montehiedra during the nine months ended September 30, 2020.

Non-GAAP Financial Measures

We use NOI internally to make investment and capital allocation decisions and to compare the unlevered performance of our properties to that of our peers. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis, providing perspective not immediately apparent from net income. The most directly comparable GAAP financial measure to NOI is net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. We calculate NOI by adjusting net income to add back depreciation and amortization expense, general and administrative expenses, casualty and real estate impairment losses, interest and debt expense, income tax expense and non-cash lease expense, and deduct management and development fee income from non-owned properties, gains on sale of real estate, interest income, non-cash rental income resulting from the straight-lining of rents and amortization of acquired below market leases net of above market leases. NOI should not be considered a substitute for net income and may not be comparable to similarly titled measures employed by others. The Company has historically defined this metric as "Cash NOI." There have been no changes to the calculation of this metric. However, the Company has decided to refer to this metric as "NOI" instead of "Cash NOI" to further clarify that, consistent with the definition of this metric, the revenue and expenses reflected in this metric include some accrued amounts and are not limited to amounts for which the Company actually received or made cash payment during the applicable period.

We calculate same-property NOI using net income as defined by GAAP reflecting only those income and expense items that are reflected in NOI (as described above) and excluding properties that were 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 or sold during the periods being compared. We also exclude for the following items in calculating same-property NOI: lease termination fees, bankruptcy settlement income, and income and expenses that we do not believe are representative of ongoing operating results, if any. As such, same-property NOI assists in eliminating disparities in net income due to the development, redevelopment, acquisition or disposition of properties during the periods presented, and thus provides a more consistent performance measure for the comparison of the operating performance of the Company’s properties, which the Company believes to be useful to investors. Same-property NOI should not be considered a substitute for net income and may not be comparable to similarly titled measures employed by others. The Company has historically defined this metric as "same-property Cash NOI." There have been no changes to the calculation of this metric.

Throughout this section, we have provided certain information on a “same-property” basis which includes the results of operations that were owned and operated for the entirety of the reporting periods being compared, which total 71 and 69 properties for the three and nine months ended September 30, 2021 and 2020, respectively. Information provided on a same-property basis excludes properties that were 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 or sold during the periods being compared. While there is judgment surrounding changes in designations, a property is removed from the same-property pool when a property is considered to be a redevelopment property because it is undergoing significant renovation or retenanting pursuant to a formal plan and is expected to have a significant impact on property operating income based on the retenanting that is occurring. A development or redevelopment property is moved back to the same-property pool once a substantial portion of the NOI growth expected from the development or redevelopment is reflected in both the current and comparable prior year period, generally one year after at least 80% of the expected NOI from the project is realized on a cash basis. Acquisitions are moved into the same-property pool once we have owned the property for the entirety of the comparable periods and the property is not under significant development or redevelopment.

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Same-property NOI increased by $11.7 million, or 26.7%, for the three months ended September 30, 2021, compared to the three months ended September 30, 2020 and increased by $19.9 million, or 14.2%, for the nine months ended September 30, 2021 as compared to the nine months ended September 30, 2020.

The following table reconciles net income to NOI and same-property NOI for the three and nine months ended September 30, 2021 and 2020, respectively.

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		2021		2020
Net income (loss)	$	30,105	$	(5,830)	$	63,802	$	78,003
Management and development fee income from non-owned properties	(280)		(404)		(911)		(1,003)
Other expense	205		257		387		713
Depreciation and amortization	23,171		22,888		68,534		69,658
General and administrative expense	10,134		8,700		28,286		36,600
Gain on sale of real estate	(6,926)		—		(18,648)		(39,775)
Interest income	(77)		(282)		(303)		(2,387)
Interest and debt expense	14,638		18,136		44,193		53,884
Gain on extinguishment of debt	—		—		—		(34,908)
Income tax expense (benefit)	704		459		905		(13,103)
Real estate impairment loss	372		—		372		—
Non-cash revenue and expenses	(15,237)		2,095		(18,992)		3,338
NOI(1)	56,809		46,019		167,625		151,020
Adjustments:
Non-same property NOI and other(2)	(600)		(1,828)		(6,406)		(10,205)
Tenant bankruptcy settlement income and lease termination income	(533)		(251)		(1,294)		(758)
Same-property NOI	$	55,676	$	43,940	$	159,925	$	140,057
NOI related to properties being redeveloped	1,019		931		2,778		3,271
Same-property NOI including properties in redevelopment	$	56,695	$	44,871	$	162,703	$	143,328

(1) We have historically defined this metric as “Cash NOI.” There have been no changes to the calculation.

(2) Non-same property NOI includes NOI related to properties being redeveloped and properties acquired or disposed in the period. Amounts for 2021 include Sunrise Mall which generated a net loss for the three and nine months ended September 30, 2021, respectively.

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Funds From Operations

FFO was $45.3 million for the three months ended September 30, 2021 compared to $16.9 million for the three months ended September 30, 2020. FFO was $112.5 million for the nine months ended September 30, 2021 compared to $107.3 million for the nine months ended September 30, 2020.

We calculate FFO in accordance with the National Association of Real Estate Investment Trusts’ (“Nareit”) definition. Nareit defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable real estate and land when connected to the main business of a REIT, impairments on depreciable real estate or land related to a REIT's main business, and rental property depreciation and amortization expense. We believe FFO is a meaningful non-GAAP financial measure useful in comparing our levered operating performance from period to period both internally and among our peers because this non-GAAP measure excludes net gains on sales of depreciable real estate, real estate impairment losses, rental property depreciation and amortization expense which implicitly assumes that the value of real estate diminishes predictably over time rather than fluctuating based on market conditions. We believe the presentation of comparable period operating results generated from FFO provides useful information to investors because the definition excludes items included in net income that do not relate to or are not indicative of our operating and financial performance, such as depreciation and amortization related to real estate, and items which can make periodic and peer analyses of operating and financial performance more difficult, such as gains (or losses) from sales of depreciable real estate and land when connected to the main business of a REIT and impairments on depreciable real estate or land related to a REIT's main business. FFO does not represent cash flows from operating activities in accordance with GAAP, should not be considered an alternative to net income as an indication of our performance, and is not indicative of cash flow as a measure of liquidity or our ability to make cash distributions. FFO may not be comparable to similarly titled measures employed by others.

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		2021		2020
Net income (loss)	$	30,105	$	(5,830)	$	63,802	$	78,003
Less net (income) loss attributable to noncontrolling interests in:
Operating partnership	(1,149)		225		(2,608)		(3,373)
Consolidated subsidiaries	(1,190)		—		(961)		—
Net income (loss) attributable to common shareholders	27,766		(5,605)		60,233		74,630
Adjustments:
Rental property depreciation and amortization	22,941		22,710		67,898		69,102
Gain on sale of real estate	(6,926)		—		(18,648)		(39,775)
Limited partnership interests in operating partnership(1)	1,149		(225)		2,608		3,373
Real estate impairment loss	372		—		372		—
FFO applicable to diluted common shareholders	$	45,302	$	16,880	$	112,463	$	107,330

(1) Represents earnings allocated to LTIP and OP unitholders for unissued common shares which have been excluded for purposes of calculating earnings per diluted share for the periods presented.

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Liquidity and Capital Resources

Due to the nature of our business, the cash generated from operations is primarily paid to our shareholders and unitholders of the Operating Partnership in the form of distributions. Our status as a REIT requires that we generally distribute at least 90% of our REIT’s ordinary taxable income each year. Our Board of Trustees declared a quarterly dividend of $0.15 per common share and OP unit for each of the first three quarters of 2021, or an annual rate of $0.60. Historically, we have paid regular cash dividends; however, the timing, declaration, amount and payment of distributions to shareholders and unitholders of the Operating Partnership fall within the discretion of our Board of Trustees. Our Board of Trustees’ decisions regarding the payment of dividends depend on many factors, such as maintaining our REIT status, our financial condition, earnings, capital requirements, debt service obligations, limitations under our financing arrangements, industry practice, legal requirements, regulatory constraints, uncertainties related to the COVID-19 pandemic and other factors.

Property rental income is our primary source of cash flow and is dependent on a number of factors, including our occupancy level and rental rates, as well as our tenants’ ability to pay rent. Our properties have historically provided us with a relatively consistent stream of cash flow that enables us to pay operating expenses, debt service and recurring capital expenditures. The COVID-19 pandemic had an adverse impact on our short-term cash flow by negatively impacting our tenants’ ability to pay rent. As of September 30, 2020, we had collected 79% of property rentals and tenant expense reimbursements billed in the quarter. Throughout the pandemic, we have worked with our tenants to evaluate the need for and offer rent relief, including in the form of rent concessions and rent deferrals. As of October 29, 2021, we have collected 92% of amounts billed during the third quarter of 2020, and the collection rate has substantially improved each subsequent quarter. We have collected 97% of rents and tenant expense reimbursements billed during the nine months ended September 30, 2021. Other sources of liquidity to fund cash requirements include proceeds from financings, equity offerings and asset sales.

Our short-term cash requirements consist of normal recurring operating expenses, lease obligations, regular debt service requirements, recurring expenditures (general & administrative expenses), expenditures related to leasing activity and distributions to shareholders and unitholders of the Operating Partnership. Our long-term capital requirements consist primarily of maturities under our long-term debt agreements, development and redevelopment costs and potential acquisitions.

At September 30, 2021, we had cash and cash equivalents, including restricted cash, of $323 million and no amounts drawn on our $600 million revolving credit agreement, which matures on January 29, 2024.

The Company continues to monitor the COVID-19 pandemic and its impact on our overall liquidity position and outlook. The ultimate impact that COVID-19 may have on our operational and financial performance over the next 12 months is currently uncertain and will depend on many factors, including without limitation, its magnitude and duration and the adverse financial impact on our tenants from potential reduced business operations and social distancing requirements, which may impact tenants’ ability to generate sales at sufficient levels to cover operating costs such as rent. Our ability to utilize amounts available under our revolving credit facility in the future will depend on our continued compliance with the applicable financial covenants and other terms of our revolving credit agreement, which may be impacted by failure of tenants to pay rent. We have no debt scheduled to mature until the second quarter of 2022. We currently believe that cash on hand, available revolving credit and general ability to access the capital markets, should be sufficient to finance our operations and fund our debt service requirements and capital expenditures over the next 12 months.

Summary of Cash Flows

Cash and cash equivalents, including restricted cash, was $322.8 million at September 30, 2021, compared to $419.3 million at December 31, 2020 and $671.0 million at September 30, 2020, a decrease of $96.5 million and $348.2 million, respectively. Our cash flow activities are summarized as follows:

	Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		$ Change
Net cash provided by operating activities	$	93,137	$	74,829	$	18,308
Net cash used in investing activities	(66,512)		(55,996)		(10,516)
Net cash (used in)/provided by financing activities	(123,086)		167,027		(290,113)

Operating Activities

Net cash flow provided by operating activities primarily consists of cash inflows from rental revenue and cash outflows for property operating expenses, general and administrative expenses and interest and debt expense.

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Net cash provided by operating activities of $93.1 million for the nine months ended September 30, 2021 increased by $18.3 million from $74.8 million for the nine months ended September 30, 2020, driven by the improved collection rates on property rentals and tenant expense reimbursements in 2021 and collection of previously billed and deferred amounts from 2020.

Investing Activities

Net cash flow used in investing activities is impacted by the timing and extent of our real estate development, capital improvements, and acquisition and disposition activities during the period.

Net cash used in investing activities of $66.5 million for the nine months ended September 30, 2021, increased by $10.5 million compared to net cash used in investing activities of $56.0 million for the nine months ended September 30, 2020 primarily due to (i) $28.2 million increase in cash used for real estate development and capital improvements, and (ii) $19.9 million decrease in cash provided by the sale of properties, offset by (iii) $37.6 million decrease in cash used for the acquisition of real estate.

Financing Activities

Net cash flow provided by or used in financing activities is impacted by the timing and extent of issuances of debt and equity securities, distributions paid to common shareholders and unitholders of the Operating Partnership as well as principal and other payments associated with our outstanding indebtedness.

Net cash used in financing activities of $123.1 million for the nine months ended September 30, 2021, increased by $290.1 million from cash provided by financing activities of $167.0 million for the nine months ended September 30, 2020 primarily due to (i) $250.0 million of cash borrowings provided under the Company’s revolving credit agreement in March 2020, of which, all amounts were repaid in November 2020, (ii) $90.3 million of proceeds from borrowings under mortgage loans in the second quarter of 2020, (iii) $82.7 million increase in distributions to shareholders and unitholders of the Operating Partnership, offset by (iv) $73.2 million decrease in debt repayments, and (v) $54.1 million of cash paid to repurchase common shares in 2020.

Financing Activities and Contractual Obligations

Below is a summary of our outstanding debt and weighted average interest rates as of September 30, 2021.

(Amounts in thousands)	Principal balance at September 30, 2021		Weighted Average Interest Rate at September 30, 2021
Mortgages payable:
Fixed rate debt	$	1,419,988	4.15%
Variable rate debt(1)	162,337		1.83%
Total mortgages payable	1,582,325		3.92%
Unamortized debt issuance costs	(8,623)
Total mortgages payable, net of unamortized debt issuance costs	$	1,573,702

(1) As of September 30, 2021, $79 million of our variable rate debt bears interest at one month LIBOR plus 190 bps and $83 million of our variable rate debt bears interest at one month LIBOR plus 160 bps.

The net carrying amount of real estate collateralizing the above indebtedness amounted to approximately $1.3 billion as of September 30, 2021. Our mortgage loans contain covenants that limit our ability to incur additional indebtedness on these properties and in certain circumstances, require lender approval of tenant leases and/or yield maintenance upon repayment prior to maturity. As of September 30, 2021, we were in compliance with all debt covenants.

On January 15, 2015, we entered into a $500 million Revolving Credit Agreement (the “Agreement”) with certain financial institutions. On March 7, 2017, we amended and extended the Agreement. The amendment increased the credit facility size by $100 million to $600 million and extended the maturity date to March 7, 2021 with two six-month extension options. On July 29, 2019, we entered into a second amendment to the Agreement to extend the maturity date to January 29, 2024 with two six-month extension options. Company borrowings under the Agreement are subject to interest at LIBOR plus 1.05% to 1.50% and an annual facility fee of 15 to 30 basis points. Both the spread over LIBOR and the facility fee are based on our current leverage ratio and are subject to change. The Agreement contains customary financial covenants including a maximum leverage ratio of 60% and a minimum fixed charge coverage ratio of 1.5x. No amounts had been drawn under the Agreement as of September 30, 2021.

On June 3, 2020, we amended the Agreement to, among other things, modify certain definitions and the measurement period for certain financial covenants to a trailing four-quarter period instead of the most recent quarter period annualized. Under the Agreement, our financial covenants are generally measured using operating results of a trailing four-quarter period from the

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prior trailing four-quarter period, including the maximum leverage ratio, which measures our asset value based on net operating income, as defined in the Agreement. Net operating income is defined, in part, based on rents and other revenues received in the ordinary course of business from our properties. We currently believe that with our cash on hand, we will have sufficient resources to finance our operations and fund our debt service requirements and capital expenditures for at least the next twelve months.

When LIBOR is discontinued, which is currently anticipated to be during 2023, the interest rates for our debt following such event will be based on either alternate base rates or agreed upon replacement rates. Such an event would not affect our ability to borrow or maintain already outstanding borrowings, although it could result in higher interest rates.

On May 5, 2021 we established an at-the-market equity program (the “ATM Program”), pursuant to which we may offer and sell common shares, par value $0.01 per share, with an aggregate gross sales price of up to $250 million. Sales under the ATM Program may be made from time to time, as needed, by means of ordinary brokers’ transactions or other transactions that are deemed to be “at the market” offerings, in privately negotiated transactions, which may include block trades, or as otherwise agreed with the sales agents.

As of September 30, 2021, we have not issued any common shares under the ATM Program. Future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common shares, and our capital needs. The Company has no obligation to sell any shares under the ATM Program.

Capital Expenditures

The following summarizes capital expenditures presented on a cash basis for the nine months ended September 30, 2021 and 2020:

	Nine Months Ended September 30,
(Amounts in thousands)	2021		2020
Capital expenditures:
Development and redevelopment costs	$	37,441	$	8,984
Capital improvements	6,781		7,677
Tenant improvements and allowances	2,215		1,605
Total capital expenditures	$	46,437	$	18,266

As of September 30, 2021, we had approximately $152.4 million of active redevelopment, development and anchor repositioning projects at various stages of completion, an increase of $20.0 million from $132.4 million of projects as of December 31, 2020. We have advanced these projects and incurred $25.1 million of additional spend since December 31, 2020. We anticipate spending an additional $91.1 million to complete these projects, which we expect to occur over the next six to eighteen months depending on any restrictions on construction activity. We expect to fund these projects using cash on hand, proceeds from dispositions, or from secured debt.

Commitments and Contingencies

Insurance

The Company maintains numerous insurance policies including for general liability, property, pollution, acts of terrorism, trustees’ and officers’, cyber, workers’ compensation and automobile-related liabilities. However, all such policies are subject to terms, conditions, exclusions, deductibles and sub-limits, amount other limiting factors. For example, the Company’s terrorism insurance excludes coverage for nuclear, biological, chemical or radiological terrorism events as defined by the Terrorism Risk Insurance Program Reauthorization Act.

The Company’s primary and excess insurance policies providing coverage for pollution related losses have an aggregate limit of $50 million and provide remediation and business interruption coverage for pollution incidents, which pursuant to our policies expressly include the presence and dispersal of viruses. On December 23, 2020, the Company initiated litigation in New Jersey state court, Bergen County, under these policies to recover uncollected rents and other amounts resulting from the COVID-19 virus.

Insurance premiums are typically charged directly to each of the properties but not all of the cost of such premiums are recovered. The Company is responsible for deductibles, losses in excess of insurance coverage, and the portion of premiums not reimbursable by tenants at our properties, which could be material.

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We continue to monitor the state of the insurance market and the scope and costs of available coverage. We cannot anticipate what coverage will be available on commercially reasonable terms in the future and expect premiums across most coverage lines to increase in light of recent events. The incurrence of uninsured losses, costs or uncovered premiums could materially and adversely affect our business, results of operations and financial condition.

Certain of our loans and other agreements contain customary covenants requiring the maintenance of insurance coverage. Although we believe that we currently have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. If lenders or other counterparties insist on greater coverage than we are able to obtain, such requirement could materially and adversely affect our ability to finance our properties and expand our portfolio.

Environmental Matters

Each of our properties has been subjected to varying degrees of environmental assessment at various times. Based on these assessments, we have accrued costs of $1.7 million and $1.8 million on our consolidated balance sheets as of September 30, 2021 and December 31, 2020, respectively, for remediation costs for environmental contamination at certain properties. While this accrual reflects our best estimates of the potential costs of remediation at these properties, there can be no assurance that the actual costs will not exceed these amounts. Although we are not aware of any other material environmental contamination, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us.

Pandemic-Related Contingencies

On March 11, 2020, the World Health Organization characterized the COVID-19 outbreak as a pandemic. Since March 2020, the Company has granted rent concessions and other lease-related relief, such as rent deferrals, to tenants impacted by the pandemic. Rent relief, deferral or abatements and tenant defaults on lease obligations, such as repayment of deferred rent may have a negative impact on our rental revenue and net income.

Other than adjusting revenue for tenant receivables that may not be collectible, the Company is not currently aware of any other loss contingencies related to the COVID-19 pandemic that would require recognition at this time.

Bankruptcies

Although our rental revenue is supported by long-term leases, leases may be rejected in a bankruptcy proceeding and the related tenant stores may permanently vacate prior to lease expiration. In the event a tenant with a significant number of leases or square footage in our shopping centers files for bankruptcy and rejects its leases with us, we could experience a reduction in our revenues. We monitor the operating performance and rent collections of all tenants in our shopping centers, especially those tenants in arrears or operating retail formats that are experiencing significant changes in competition, business practice, or store closings in other locations. Given the economic environment brought upon by COVID-19, certain tenants experienced liquidity or financial hardships and filed for Chapter 11 bankruptcy protection since the pandemic was declared. Although some of these tenants intend to exit the Chapter 11 bankruptcy process and resume operations, the outcomes of such proceedings are unknown and the Company is currently exploring leasing alternatives for these spaces.

Inflation and Economic Condition Considerations

Most of our leases contain provisions designed to partially mitigate the impact of inflation. Prior to 2021, inflation had been low and had a minimal impact on the operating performance of our shopping centers, however, inflation has increased in 2021 and may continue to be elevated in the future. Most of our leases require tenants to pay their share of operating expenses, including common area maintenance, real estate taxes and insurance, thereby reducing our exposure to increases in costs and operating expenses resulting from inflation, although some larger tenants have capped the amount of these operating expenses they are responsible for under the lease. A small number of our leases also include percentage rent clauses enabling us to receive additional rent based on tenant sales above a predetermined level, which sales generally increase as prices rise and are typically related to increases in the Consumer Price Index or similar inflation indices.

Off-Balance Sheet Arrangements

We do not have any material off-balance sheet arrangements as of September 30, 2021 or December 31, 2020.

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ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

We have exposure to fluctuations in interest rates, which are sensitive to many factors that are beyond our control. The following table discusses our exposure to hypothetical changes in market rates of interest on interest expense for our variable rate debt and fixed-rate debt. Interest rate risk amounts were determined by considering the impact of hypothetical interest rates on our debt. This analysis does not take into account all of the factors that may affect our debt, such as the effect that a changing interest rate environment could have on the overall level of economic activity or the action that our management might take to reduce our exposure to the change. This analysis assumes no change in our financial structure. Our exposure to a change in interest rates is summarized in the table below.

	2021							2020
(Amounts in thousands)	September 30, Balance			Weighted Average Interest Rate	Effect of 1% Change in Base Rates			December 31, Balance			Weighted Average Interest Rate
Variable rate mortgages	162,337			1.83%	1,623			$	169,371		1.90%
Fixed rate mortgages	1,419,988			4.15%	—		(2)	1,428,026			4.16%
	$	1,582,325	(1)		$	1,623		$	1,597,397	(1)

(1) Excludes unamortized debt issuance costs of $8.6 million and $9.9 million as of September 30, 2021 and December 31, 2020, respectively.

(2) If the weighted average interest rate of our fixed rate debt increased by 1% (i.e. due to refinancing at higher rates), annualized interest expense would have increased by approximately $14.2 million based on outstanding balances as of September 30, 2021.

We may utilize various financial instruments to mitigate the impact of interest rate fluctuations on our cash flows and earnings, including hedging strategies, depending on our analysis of the interest rate environment and the costs and risks of such strategies. As of September 30, 2021, we did not have any material hedging instruments in place.

Fair Value of Debt

The estimated fair value of our consolidated debt is calculated based on current market prices and discounted cash flows at the current rate at which similar loans would be made to borrowers with similar credit ratings for the remaining term of such debt. As of September 30, 2021, the estimated fair value of our consolidated debt was $1.6 billion.

Other Market Risks

As of September 30, 2021, we had no material exposure to any other market risks (including foreign currency exchange risk or commodity price risk).

In making this determination and for purposes of the SEC’s market risk disclosure requirements, we have estimated the fair value of our financial instruments at September 30, 2021 based on pertinent information available to management as of that date. Although management is not aware of any factors that would significantly affect the estimated amounts as of September 30, 2021, future estimates of fair value and the amounts which may be paid or realized in the future may differ significantly from amounts presented.

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ITEM 4.    CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures (Urban Edge Properties)

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) that are designed to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures. Because of inherent limitations, disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of disclosure controls and procedures are met.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective.

There have not been any changes in our internal control over financial reporting (as defined in Rule 13a-15(f)) that occurred during the three months ended September 30, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Evaluation of Disclosure Controls and Procedures (Urban Edge Properties LP)

The Operating Partnership’s management maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) that are designed to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer of our general partner, as appropriate to allow timely decisions regarding required disclosures. Because of inherent limitations, disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of disclosure controls and procedures are met.

The Operating Partnership’s management, with the participation of the Chief Executive Officer and Chief Financial Officer of our general partner, evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer of our general partner concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective.

There have not been any changes in our internal control over financial reporting (as defined in Rule 13a-15(f)) that occurred during the three months ended September 30, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

We are party to various legal actions that arise in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not expected to have a material adverse effect on our financial position, results of operations or cash flows.

ITEM 1A.    RISK FACTORS

Except to the extent additional factual information disclosed elsewhere in this Quarterly Report on Form 10-Q relates to such risk factors (including, without limitation, the matters discussed in Part I, “Item 2-Management’s Discussion and Analysis of Financial Condition and Results of Operations”), there were no material changes to the risk factors disclosed in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 17, 2021.

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ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Urban Edge Properties

(a) Recent Sales of Unregistered Securities: Not applicable.

(b) Use of Proceeds from Sales of Registered Securities: Not applicable.

(c) Issuer Purchases of Equity Securities:

Period	(a) Total Number of Shares Purchased	(b) Average Price Paid per Share(2)		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet to be Purchased Under the Plan or Program(1)
July 1, 2021 - July 31, 2021	—	$	—	—	$	145,900,000
August 1, 2021 - August 31, 2021	—	—		—	$	145,900,000
September 1, 2021 - September 30, 2021	—	—		—	$	145,900,000
	—	$	—	—

(1) In March 2020, the Company’s Board of Trustees authorized a share repurchase program for up to $200 million of the Company’s shares. Under the program, the Company may repurchase its shares from time to time in the open market or in privately negotiated transactions in compliance with Securities and Exchange Commission Rule 10b-18. The share repurchase program does not obligate the Company to acquire any particular amount of common shares and may be suspended or discontinued at any time at the Company’s discretion.

(2) Represents common shares surrendered by employees to us to satisfy such employees’ tax withholding obligations in connection with the vesting of restricted common shares.

Urban Edge Properties LP

(a) Recent Sales of Unregistered Securities: Not applicable.

(b) Use of Proceeds from Sales of Registered Securities: Not applicable.

(c) Issuer Purchases of Equity Securities: Not applicable.

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.    MINE SAFETY DISCLOSURES

Not applicable.

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ITEM 5.     OTHER INFORMATION

None.

ITEM 6.    EXHIBITS

The exhibits listed below are included in, or incorporated by reference into, this Quarterly Report on Form 10-Q.

INDEX TO EXHIBITS

The following exhibits are included as part of this Quarterly Report on Form 10-Q:

Exhibit Number	Exhibit Description
31.1*	Certification by the Chief Executive Officer for Urban Edge Properties pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification by the Chief Financial Officer for Urban Edge Properties pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3*	Certification by the Chief Executive Officer for Urban Edge Properties LP pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.4*	Certification by the Chief Financial Officer for Urban Edge Properties LP pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification by the Chief Executive Officer and Chief Financial Officer for Urban Edge Properties pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification by the Chief Executive Officer and Chief Financial Officer for Urban Edge Properties LP pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.SCH*	Inline XBRL Taxonomy Extension Schema
101.CAL*	Inline XBRL Extension Calculation Linkbase
101.LAB*	Inline XBRL Extension Labels Linkbase
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase
104*	Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*)

* Filed herewith

** In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

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PART IV

SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

URBAN EDGE PROPERTIES

(Registrant)

/s/ Mark Langer

Mark Langer, Chief Financial Officer

Date: November 3, 2021

URBAN EDGE PROPERTIES LP

By: Urban Edge Properties, General Partner

/s/ Mark Langer

Mark Langer, Chief Financial Officer

Date: November 3, 2021

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EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Jeffrey S. Olson, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Urban Edge Properties;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles;

c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 3, 2021

/s/ Jeffrey S. Olson

Jeffrey S. Olson

Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Mark Langer, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Urban Edge Properties;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles;

c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 3, 2021

/s/ Mark Langer

Mark Langer

Chief Financial Officer of Urban Edge Properties

EX-31.3

EXHIBIT 31.3

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Jeffrey S. Olson, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Urban Edge Properties LP;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles;

c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 3, 2021

/s/ Jeffrey S. Olson

Jeffrey S. Olson

Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties, general partner of Urban Edge Properties LP

EX-31.4

EXHIBIT 31.4

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Mark Langer, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Urban Edge Properties LP;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles;

c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 3, 2021

/s/ Mark Langer

Mark Langer

Chief Financial Officer of Urban Edge Properties, general partner of Urban Edge Properties LP

EX-32.1

EXHIBIT 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsection (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code), the undersigned officer of Urban Edge Properties, hereby certifies, to such officer’s knowledge, that:

The Quarterly Report on Form 10-Q for the period ended September 30, 2021(the “Report”) of Urban Edge Properties fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Urban Edge Properties.

November 3, 2021		/s/ Jeffrey S. Olson
	Name:	Jeffrey S. Olson
	Title:	Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties
November 3, 2021		/s/ Mark Langer
	Name:	Mark Langer
	Title:	Chief Financial Officer of Urban Edge Properties

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished as an exhibit to the Report pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 and, accordingly, is not being filed with the Securities and Exchange Commission as part of the Report and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report, irrespective of any general incorporation language contained in such filing).

EX-32.2

EXHIBIT 32.2

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsection (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code), the undersigned officer of Urban Edge Properties, hereby certifies, to such officer’s knowledge, that:

The Quarterly Report on Form 10-Q for the period ended September 30, 2021(the “Report”) of Urban Edge Properties LP fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Urban Edge Properties LP.

November 3, 2021		/s/ Jeffrey S. Olson
	Name:	Jeffrey S. Olson
	Title:	Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties, general partner of Urban Edge Properties LP
November 3, 2021		/s/ Mark Langer
	Name:	Mark Langer
	Title:	Chief Financial Officer of Urban Edge Properties, general partner of Urban Edge Properties LP

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished as an exhibit to the Report pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 and, accordingly, is not being filed with the Securities and Exchange Commission as part of the Report and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report, irrespective of any general incorporation language contained in such filing).

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-36523
Entity Registrant Name	URBAN EDGE PROPERTIES
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	47-6311266
Entity Address, Address Line One	888 Seventh Avenue
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10019
City Area Code	(212)
Local Phone Number	956-2556
Title of 12(b) Security	Common shares of beneficial interest, par value $0.01 per share
Trading Symbol	UE
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		117,137,788
Entity Central Index Key	0001611547
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Urban Edge Properties LP
Entity Information [Line Items]
Entity File Number	333-212951-01
Entity Registrant Name	URBAN EDGE PROPERTIES LP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-4791544
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Real estate, at cost:
Land	$ 557,890	$ 568,662
Buildings and improvements	2,364,061	2,326,450
Construction in progress	108,915	44,689
Furniture, fixtures and equipment	7,519	7,016
Total	3,038,385	2,946,817
Accumulated depreciation and amortization	(768,329)	(730,366)
Real estate, net	2,270,056	2,216,451
Operating lease right-of-use assets	75,654	80,997
Cash and cash equivalents	268,952	384,572
Restricted cash	53,840	34,681
Tenant and other receivables	18,178	15,673
Receivable arising from the straight-lining of rents	61,444	62,106
Identified intangible assets, net of accumulated amortization of $37,582 and $37,009, respectively	50,719	56,184
Deferred leasing costs, net of accumulated amortization of $16,915 and $16,419, respectively	17,413	18,585
Prepaid expenses and other assets	65,565	70,311
Total assets	2,881,821	2,939,560
Liabilities:
Mortgages payable, net	1,573,702	1,587,532
Operating lease liabilities	70,071	74,972
Accounts payable, accrued expenses and other liabilities	94,514	132,980
Identified intangible liabilities, net of accumulated amortization of $83,596 and $71,375, respectively	128,479	148,183
Total liabilities	1,866,766	1,943,667
Commitments and contingencies (Note 10)
Shareholders’ equity:
Common shares: $0.01 par value; 500,000,000 shares authorized and 117,137,788 and 117,014,317 shares issued and outstanding, respectively	1,170	1,169
Additional paid-in capital	997,085	989,863
Accumulated deficit	(31,968)	(39,467)
Noncontrolling interests:
Operating partnership	40,006	38,456
Partners’ capital:
Consolidated subsidiaries	8,762	5,872
Total equity	1,015,055	995,893
Total liabilities and equity	2,881,821	2,939,560
Urban Edge Properties LP
Real estate, at cost:
Buildings and improvements	2,364,061	2,326,450
Construction in progress	108,915	44,689
Furniture, fixtures and equipment	7,519	7,016
Total	3,038,385	2,946,817
Accumulated depreciation and amortization	(768,329)	(730,366)
Real estate, net	2,270,056	2,216,451
Operating lease right-of-use assets	75,654	80,997
Cash and cash equivalents	268,952	384,572
Restricted cash	53,840	34,681
Tenant and other receivables	18,178	15,673
Receivable arising from the straight-lining of rents	61,444	62,106
Identified intangible assets, net of accumulated amortization of $37,582 and $37,009, respectively	50,719	56,184
Deferred leasing costs, net of accumulated amortization of $16,915 and $16,419, respectively	17,413	18,585
Prepaid expenses and other assets	65,565	70,311
Total assets	2,881,821	2,939,560
Liabilities:
Mortgages payable, net	1,573,702	1,587,532
Operating lease liabilities	70,071	74,972
Accounts payable, accrued expenses and other liabilities	94,514	132,980
Identified intangible liabilities, net of accumulated amortization of $83,596 and $71,375, respectively	128,479	148,183
Total liabilities	1,866,766	1,943,667
Commitments and contingencies (Note 10)
Shareholders’ equity:
Accumulated deficit	(34,358)	(42,313)
Partners’ capital:
General partner: 117,137,788 and 117,014,317 units outstanding, respectively	998,255	991,032
Limited partners: 4,849,749 and 4,729,010 units outstanding, respectively	42,396	41,302
Total partners’ capital	1,006,293	990,021
Consolidated subsidiaries	8,762	5,872
Total equity	1,015,055	995,893
Total liabilities and equity	$ 2,881,821	$ 2,939,560

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accumulated depreciation, identifiable intangible assets	$ 37,582	$ 37,009
Accumulated amortization, deferred leasing costs	16,915	16,419
Accumulated amortization, deferred financing costs	5,653	4,819
Accumulated amortization, identified intangible liabilities	$ 83,596	$ 71,375
Common stock, par value (in dollars per share)	$ 0.01
Common stock, shares authorized (in shares)	500,000,000
Common stock, shares, outstanding (in shares)	117,137,788	117,014,317
Urban Edge Properties LP
Accumulated depreciation, identifiable intangible assets	$ 37,582	$ 37,009
Accumulated amortization, deferred leasing costs	16,915	16,419
Accumulated amortization, identified intangible liabilities	$ 83,596	$ 71,375
Common stock, shares, outstanding (in shares)	117,137,788	117,014,317
Limited Partners, units outstanding (in units)	4,849,749	4,729,010

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
REVENUE
Rental revenue	$ 105,985	$ 75,359	$ 294,257	$ 241,624
Total revenue	106,839	75,838	296,506	242,817
EXPENSES
Depreciation and amortization	23,171	22,888	68,534	69,658
Real estate taxes	15,862	14,916	47,826	44,778
Property operating	15,692	13,436	51,874	39,867
General and administrative	10,134	8,700	28,286	36,600
Casualty and impairment loss	372	0	372	0
Lease expense	3,164	3,415	9,665	10,200
Total expenses	68,395	63,355	206,557	201,103
Gain on sale of real estate	6,926	0	18,648	39,775
Interest income	77	282	303	2,387
Interest and debt expense	(14,638)	(18,136)	(44,193)	(53,884)
Income (loss) before income taxes	30,809	(5,371)	64,707	64,900
Income tax (expense) benefit	(704)	(459)	(905)	13,103
Net income (loss)	30,105	(5,830)	63,802	78,003
Less net (income) loss attributable to noncontrolling interests in:
Operating partnership	(1,149)	225	(2,608)	(3,373)
Consolidated subsidiaries	(1,190)	0	(961)	0
Net income (loss) attributable to common shareholders	$ 27,766	$ (5,605)	$ 60,233	$ 74,630
Earnings per common share - Basic (in dollars per share)	$ 0.24	$ (0.05)	$ 0.51	$ 0.63
Earnings per common share - Diluted (in dollars per share)	$ 0.24	$ (0.05)	$ 0.51	$ 0.63
Weighted average shares outstanding - Basic (in shares)	117,087	116,625	117,009	118,033
Weighted average shares outstanding - Diluted (in shares)	117,137	116,625	122,212	118,111
Casualty and impairment loss	$ 372	$ 0	$ 372	$ 0
Management and development fees
REVENUE
Revenues	280	404	911	1,003
Other income
REVENUE
Revenues	574	75	1,338	190
Urban Edge Properties LP
REVENUE
Rental revenue	105,985	75,359	294,257	241,624
Total revenue	106,839	75,838	296,506	242,817
EXPENSES
Depreciation and amortization	23,171	22,888	68,534	69,658
Real estate taxes	15,862	14,916	47,826	44,778
Property operating	15,692	13,436	51,874	39,867
General and administrative	10,134	8,700	28,286	36,600
Casualty and impairment loss	372	0	372	0
Lease expense	3,164	3,415	9,665	10,200
Total expenses	68,395	63,355	206,557	201,103
Gain on sale of real estate	6,926	0	18,648	39,775
Interest income	77	282	303	2,387
Interest and debt expense	(14,638)	(18,136)	(44,193)	(53,884)
Income (loss) before income taxes	30,809	(5,371)	64,707	64,900
Income tax (expense) benefit	(704)	(459)	(905)	13,103
Net income (loss)	30,105	(5,830)	63,802	78,003
Less net (income) loss attributable to noncontrolling interests in:
Consolidated subsidiaries	(1,190)	0	(961)	0
Net income (loss) attributable to common shareholders	$ 28,915	$ (5,830)	$ 62,841	$ 78,003
Earnings per common share - Basic (in dollars per share)	$ 0.24	$ (0.05)	$ 0.52	$ 0.64
Earnings per common share - Diluted (in dollars per share)	$ 0.24	$ (0.05)	$ 0.51	$ 0.63
Weighted average shares outstanding - Basic (in shares)	120,903	120,618	120,839	122,332
Weighted average shares outstanding - Diluted (in shares)	121,987	120,618	122,212	123,174
Casualty and impairment loss	$ 372	$ 0	$ 372	$ 0
Urban Edge Properties LP | Management and development fees
REVENUE
Revenues	280	404	911	1,003
Urban Edge Properties LP | Other income
REVENUE
Revenues	$ 574	$ 75	$ 1,338	$ 190

XML

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Urban Edge Properties LP	Urban Edge Properties LP Accumulated Earnings (Deficit)	Urban Edge Properties LP NCI in Consolidated Subsidiaries	Urban Edge Properties LP General Partner	Urban Edge Properties LP Limited Partners		Common Shares	Additional Paid-In Capital	Accumulated Earnings (Deficit)	Operating Partnership	NCI in Consolidated Subsidiaries	Operating Partnership Urban Edge Properties LP Limited Partners
Beginning balance (in shares) at Dec. 31, 2019								121,370,125
Beginning balance (in shares) at Dec. 31, 2019					121,370,125	5,833,318
Beginning balance at Dec. 31, 2019	$ 1,014,776	$ 1,014,776	$ (56,166)	$ 424	$ 1,020,362	$ 50,156		$ 1,213	$ 1,019,149	$ (52,546)	$ 46,536	$ 424
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders/unitholders	74,630	78,003	78,003							74,630
Net loss attributable to noncontrolling interests	3,373										3,373
Common units issued as a result of common shares issued by Urban Edge (in shares)					53,193	122,858
Common units issued as a result of common shares issued by Urban Edge		(205)	30		$ (235)
Units redeemed for common shares (in shares)					1,279,389	(1,279,389)		1,279,389
Equity redemption of OP units	$ 8,628	8,628	0		$ 8,628			$ 11	8,617
Repurchase of common shares (in shares)	(5,873,923)				5,873,923	0
Limited partnership units issued, net	$ (54,141)	(54,141)			$ 54,141	$ 0		$ (59)	(54,082)
Reallocation of noncontrolling interests	(8,628)	(8,628)			9,724	(18,352)			9,724		(18,352)
Common shares issued (in shares)								53,193
Common shares issued	205							$ 1	234	(30)
Dividends to common shareholders	(26,647)									(26,647)
Distributions to redeemable NCI	(1,314)										(1,314)
Distributions to Partners		(27,961)	(27,961)
Share-based compensation expense	14,463	14,463			$ 5,255	$ 9,208			5,255		9,208
Share-based awards retained for taxes (in shares)					(127,473)			(127,473)
Share-based awards retained for taxes	(1,461)	(1,461)			$ (1,461)				(1,461)
Ending balance (in shares) at Sep. 30, 2020					116,701,311	4,676,787		116,701,311
Ending balance (in shares) at Sep. 30, 2020					116,701,311	4,676,787
Ending balance at Sep. 30, 2020	1,023,884	1,023,884	(6,154)	424	$ 988,602	$ 41,012	[1]	$ 1,166	987,436	(4,593)	39,451	424
Beginning balance (in shares) at Jun. 30, 2020					116,701,311	4,676,787		116,701,311
Beginning balance at Jun. 30, 2020	1,027,110	1,027,110	(324)	424	$ 986,099	$ 40,911	[1]	$ 1,166	984,933	1,012	39,575	424
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders/unitholders	(5,605)	(5,830)	(5,830)							(5,605)
Net loss attributable to noncontrolling interests	(225)										(225)
Reallocation of noncontrolling interests	0	0			1,866	(1,866)	[1]		1,866		(1,866)
Share-based compensation expense	2,604	2,604			$ 637	$ 1,967	[1]		637		1,967
Ending balance (in shares) at Sep. 30, 2020					116,701,311	4,676,787		116,701,311
Ending balance (in shares) at Sep. 30, 2020					116,701,311	4,676,787
Ending balance at Sep. 30, 2020	$ 1,023,884	$ 1,023,884	(6,154)	424	$ 988,602	$ 41,012	[1]	$ 1,166	987,436	(4,593)	39,451	424
Noncontrolling interest percentage													3.90%
Beginning balance (in shares) at Dec. 31, 2020	117,014,317	117,014,317						117,014,317
Beginning balance (in shares) at Dec. 31, 2020					117,014,317	4,729,010
Beginning balance at Dec. 31, 2020	$ 995,893	$ 995,893	(42,313)	5,872	$ 991,032	$ 41,302		$ 1,169	989,863	(39,467)	38,456	5,872
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders/unitholders	60,233	62,841	62,841							60,233
Net loss attributable to noncontrolling interests	3,569	961		961							2,608	961
Common units issued as a result of common shares issued by Urban Edge (in shares)					36,533	220,739
Common units issued as a result of common shares issued by Urban Edge		(185)	124		$ (309)
Units redeemed for common shares (in shares)					100,000	(100,000)		100,000
Equity redemption of OP units	$ (5,462)	(5,462)			$ 840	$ (6,302)			840		(6,302)
Repurchase of common shares (in shares)	0
Reallocation of noncontrolling interests	$ 5,462	5,462			4,614	848			4,614		848
Common shares issued (in shares)								36,533
Common shares issued	185							$ 1	308	(124)
Dividends to common shareholders	(52,610)									(52,610)
Distributions to redeemable NCI	(2,152)										(2,152)
Distributions to Partners		(54,762)	(54,762)
Contributions from noncontrolling interests	1,929	1,929		1,929								1,929
Share-based compensation expense	8,218	8,218			$ 1,670	$ 6,548			1,670		6,548
Share-based awards retained for taxes (in shares)					(13,062)			(13,062)
Share-based awards retained for taxes	$ (210)	$ (210)			$ (210)				(210)
Ending balance (in shares) at Sep. 30, 2021	117,137,788	117,137,788						117,137,788
Ending balance (in shares) at Sep. 30, 2021					117,137,788	4,849,749
Ending balance at Sep. 30, 2021	$ 1,015,055	$ 1,015,055	(34,358)	8,762	$ 998,255	$ 42,396	[2]	$ 1,170	997,085	(31,968)	40,006	8,762
Beginning balance (in shares) at Jun. 30, 2021					117,137,337	5,376,145		117,137,337
Beginning balance at Jun. 30, 2021	998,990	998,990	(44,985)	6,154	$ 991,425	$ 46,396	[2]	$ 1,170	990,255	(42,157)	43,568	6,154
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders/unitholders	27,766	28,915	28,915							27,766
Net loss attributable to noncontrolling interests	2,339	1,190		1,190							1,149	1,190
Common units issued as a result of common shares issued by Urban Edge (in shares)					451	(526,396)
Common units issued as a result of common shares issued by Urban Edge		(1)	20		$ (21)
Units redeemed for common shares (in shares)					0
Equity redemption of OP units	(6,302)	(6,302)			$ 0	$ (6,302)					(6,302)
Reallocation of noncontrolling interests	6,302	6,302			6,302	0	[2]		6,302		0
Common shares issued (in shares)								451
Common shares issued	1								21	(20)
Dividends to common shareholders	(17,557)									(17,557)
Distributions to redeemable NCI	(711)										(711)
Distributions to Partners		(18,268)	(18,268)
Contributions from noncontrolling interests	1,418	1,418		1,418								1,418
Share-based compensation expense	$ 2,809	$ 2,809			$ 507	$ 2,302	[2]		507		2,302
Ending balance (in shares) at Sep. 30, 2021	117,137,788	117,137,788						117,137,788
Ending balance (in shares) at Sep. 30, 2021					117,137,788	4,849,749
Ending balance at Sep. 30, 2021	$ 1,015,055	$ 1,015,055	$ (34,358)	$ 8,762	$ 998,255	$ 42,396	[2]	$ 1,170	$ 997,085	$ (31,968)	$ 40,006	$ 8,762
Noncontrolling interest percentage													4.00%

[1] Limited partners have a 3.9% common limited partnership interest in the Operating Partnership as of September 30, 2020 in the form of units of interest in the OP Units and LTIP units.

[2] Limited partners have a 4.0% common limited partnership interest in the Operating Partnership as of September 30, 2021 in the form of units of interest in the OP Units and LTIP units.

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020
Distributions to redeemable NCI (in dollars per unit)	$ 0.15		$ 0.22
Accumulated Earnings (Deficit) | Urban Edge Properties LP
Dividends on common shares (in dollars per share)	0.15	$ 0.45	0.22
Accumulated Earnings (Deficit)
Dividends on common shares (in dollars per share)	0.15	0.45	0.22
Operating Partnership
Distributions to redeemable NCI (in dollars per unit)	$ 0.15	$ 0.45	$ 0.22
Operating Partnership | Limited Partners | Urban Edge Properties LP
Noncontrolling interest percentage	4.00%	4.00%	3.90%

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 63,802	$ 78,003
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	69,872	70,965
Gain on sale of real estate	(18,648)	(39,775)
Casualty and impairment loss	372	0
Gain on extinguishment of debt	0	(34,908)
Amortization of below market leases, net	(19,775)	(6,803)
Noncash lease expense	5,343	5,655
Straight-lining of rent	338	9,503
Share-based compensation expense	8,218	14,463
Change in operating assets and liabilities:
Tenant and other receivables	(2,505)	(2,812)
Deferred leasing costs	(1,735)	(1,110)
Prepaid expenses and other assets	512	(11,656)
Lease liabilities	(4,901)	(5,017)
Accounts payable, accrued expenses and other liabilities	(7,756)	(1,679)
Net cash provided by operating activities	93,137	74,829
CASH FLOWS FROM INVESTING ACTIVITIES
Real estate development and capital improvements	46,447	18,266
Acquisitions of real estate	54,547	92,132
Proceeds from sale of operating properties	34,482	54,402
Net cash used in investing activities	(66,512)	(55,996)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(14,324)	(87,567)
Dividends to common shareholders	(106,441)	(26,647)
Distributions to redeemable noncontrolling interests	(4,225)	(1,314)
Taxes withheld for vested restricted shares	(210)	(1,461)
Contributions from noncontrolling interests	1,929	0
Borrowings under unsecured credit facility	0	250,000
Proceeds from mortgage loan borrowings	0	90,250
Repurchase of common shares	0	(54,141)
Debt issuance costs	0	(2,298)
Proceeds related to the issuance of common shares	185	205
Net cash (used in) provided by financing activities	(123,086)	167,027
Net (decrease) increase in cash and cash equivalents and restricted cash	(96,461)	185,860
Cash and cash equivalents and restricted cash at beginning of period	419,253	485,136
Cash and cash equivalents and restricted cash at end of period	322,792	670,996
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, net of amounts capitalized of $734 and $513, respectively	44,424	52,771
Cash payments for income taxes	5,077	482
NON-CASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures included in accounts payable and accrued expenses	32,600	7,330
Write-off of fully depreciated and impaired assets	5,336	10,748
Mortgage debt forgiven in refinancing	0	30,000
Assumption of debt through the acquisition of real estate	0	72,473
Cash and cash equivalents at beginning of period	384,572	432,954
Cash and cash equivalents at end of period	268,952	646,432
Restricted cash at beginning of period	34,681	52,182
Restricted cash at end of period	53,840	24,564
Cash and cash equivalents and restricted cash at beginning/end of period	322,792	670,996
Urban Edge Properties LP
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	63,802	78,003
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	69,872	70,965
Gain on sale of real estate	(18,648)	(39,775)
Casualty and impairment loss	372	0
Gain on extinguishment of debt	0	(34,908)
Amortization of below market leases, net	(19,775)	(6,803)
Noncash lease expense	5,343	5,655
Straight-lining of rent	338	9,503
Share-based compensation expense	8,218	14,463
Change in operating assets and liabilities:
Tenant and other receivables	(2,505)	(2,812)
Deferred leasing costs	(1,735)	(1,110)
Prepaid expenses and other assets	512	(11,656)
Lease liabilities	(4,901)	(5,017)
Accounts payable, accrued expenses and other liabilities	(7,756)	(1,679)
Net cash provided by operating activities	93,137	74,829
CASH FLOWS FROM INVESTING ACTIVITIES
Real estate development and capital improvements	46,447	18,266
Acquisitions of real estate	54,547	92,132
Proceeds from sale of operating properties	34,482	54,402
Net cash used in investing activities	(66,512)	(55,996)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(14,324)	(87,567)
Distributions to partners	110,666	27,961
Taxes withheld for vested restricted shares	(210)	(1,461)
Contributions from noncontrolling interests	1,929	0
Borrowings under unsecured credit facility	0	250,000
Proceeds from mortgage loan borrowings	0	90,250
Repurchase of common shares	0	(54,141)
Debt issuance costs	0	(2,298)
Proceeds related to the issuance of common shares	185	205
Net cash (used in) provided by financing activities	(123,086)	167,027
Net (decrease) increase in cash and cash equivalents and restricted cash	(96,461)	185,860
Cash and cash equivalents and restricted cash at beginning of period	419,253	485,136
Cash and cash equivalents and restricted cash at end of period	322,792	670,996
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, net of amounts capitalized of $734 and $513, respectively	44,424	52,771
Cash payments for income taxes	5,077	482
NON-CASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures included in accounts payable and accrued expenses	32,600	7,330
Write-off of fully depreciated and impaired assets	5,336	10,748
Mortgage debt forgiven in refinancing	0	30,000
Assumption of debt through the acquisition of real estate	0	72,473
Cash and cash equivalents at beginning of period	384,572	432,954
Cash and cash equivalents at end of period	268,952	646,432
Restricted cash at beginning of period	34,681	52,182
Restricted cash at end of period	53,840	24,564
Cash and cash equivalents and restricted cash at beginning/end of period	$ 322,792	$ 670,996

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Capitalized interest	$ 734	$ 513
Urban Edge Properties LP
Capitalized interest	$ 734	$ 513

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ORGANIZATION

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

ORGANIZATION

Urban Edge Properties (“UE”, “Urban Edge” or the “Company”) (NYSE: UE) is a Maryland real estate investment trust focused on managing, developing, redeveloping, and acquiring retail real estate in urban communities, primarily in the New York metropolitan area. Urban Edge Properties LP (“UELP” or the “Operating Partnership”) is a Delaware limited partnership formed to serve as UE’s majority-owned partnership subsidiary and to own, through affiliates, all of the Company’s real estate properties and other assets. Unless the context otherwise requires, references to “we”, “us” and “our” refer to Urban Edge Properties and UELP and their consolidated entities/subsidiaries.

The Operating Partnership’s capital includes general and common limited partnership interests in the operating partnership (“OP Units”). As of September 30, 2021, Urban Edge owned approximately 96% of the outstanding common OP Units with the remaining limited OP Units held by members of management, Urban Edge’s Board of Trustees and contributors of property interests acquired. Urban Edge serves as the sole general partner of the Operating Partnership. The third-party unitholders have limited rights over the Operating Partnership such that they do not have characteristics of a controlling financial interest. As such, the Operating Partnership is considered a variable interest entity (“VIE”), and the Company is the primary beneficiary which consolidates it. The Company’s only investment is the Operating Partnership. The VIE’s assets can be used for purposes other than the settlement of the VIE’s obligations and the Company’s partnership interest is considered a majority voting interest.

As of September 30, 2021, our portfolio consisted of 68 shopping centers, five malls and two industrial parks totaling approximately 16.4 million square feet (“sf”), which is inclusive of a 95% controlling interest in Walnut Creek, CA (Mt. Diablo), and an 82.5% controlling interest in Sunrise Mall, in Massapequa, NY.

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BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions of Form 10-Q. Certain information and footnote disclosures included in our annual financial statements have been condensed or omitted. In the opinion of management, the consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company and the Operating Partnership and the results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021. Accordingly, these consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the Securities Exchange Commission (“SEC”).

The consolidated balance sheets as of September 30, 2021 and December 31, 2020 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. As of September 30, 2021 and December 31, 2020, excluding the Operating Partnership, we consolidated two VIEs with total assets of $64.6 million and $43.6 million, respectively and total liabilities of $45.1 million and $31.5 million, respectively. The consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 include the consolidated accounts of the Company and the Operating Partnership. All intercompany transactions have been eliminated in consolidation.

In accordance with ASC 205 Presentation of Financial Statements, certain prior year balances have been reclassified in order to conform to the current period presentation.

Our primary business is the ownership, management, redevelopment, development and operation of retail shopping centers and malls. We do not distinguish from our primary business or group our operations on a geographical basis for purposes of measuring performance. The Company’s chief operating decision maker reviews operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. None of our tenants accounted for more than 10% of our revenue or property operating income as of September 30, 2021. We aggregate all of our properties into one reportable segment due to their similarities with regard to the nature and economics of the properties, tenants and operations, as well as long-term average financial performance.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Real Estate — Real estate is carried at cost, net of accumulated depreciation and amortization. Expenditures for ordinary maintenance and repairs are expensed to operations as they are incurred. Significant renovations that improve or extend the useful lives of assets are capitalized. As real estate is undergoing redevelopment activities, all property operating expenses directly associated with and attributable to the redevelopment, including interest, are capitalized to the extent the capitalized costs of the property do not exceed the estimated fair value of the property when completed. If the cost of the redeveloped property, including the net book value of the existing property, exceeds the estimated fair value of redeveloped property, the excess is charged to impairment expense. The capitalization period begins when redevelopment activities are under way and ends when the project is substantially complete. Depreciation is recognized on a straight-line basis over estimated useful lives which range from one to 40 years.

Upon the acquisition of real estate, we assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and acquired liabilities and we allocate the purchase price based on these assessments on a relative fair value basis. We assess fair value based on estimated cash flow projections utilizing appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known trends, and market/economic conditions. We record acquired intangible assets (including acquired above-market leases, acquired in-place leases and tenant relationships) and acquired intangible liabilities (including below-market leases) at their estimated fair value. We amortize identified intangibles that have finite lives over the period they are expected to contribute directly or indirectly to the future cash flows of the property or business acquired.

Our properties are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis taking into account the appropriate capitalization rate in determining a future terminal value. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Estimated fair value may be based on discounted future cash flows utilizing appropriate discount and capitalization rates and, in addition to available market information, third-party appraisals, broker selling estimates or sale agreements under negotiations, less selling costs. Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows change based on uncertain market conditions, our evaluation of impairment losses may be different and such differences could be material to our consolidated financial statements.

Tenant and Other Receivables and Changes in Collectibility Assessment — Tenant receivables include unpaid amounts billed to tenants, disputed enforceable charges and accrued revenues for future billings to tenants for property expenses. We evaluate the collectibility of amounts due from tenants and disputed enforceable charges on both a lease-by-lease and a portfolio-level, which result from the inability of tenants to make required payments under their operating lease agreements. We recognize changes in the collectibility assessment of these operating leases as adjustments to rental revenue in accordance with ASC 842 Leases. Management exercises judgment in assessing collectibility and considers payment history, current credit status and publicly available information about the financial condition of the tenant, among other factors. Tenant receivables, and receivables arising from the straight-lining of rents, are written-off directly when management deems the collectibility of substantially all future lease payments from a specific lease is not probable, at which point, the Company will begin recognizing revenue from such leases prospectively, based on actual amounts received. This write-off effectively reduces cumulative non-cash rental income recognized from the straight-lining of rents since lease commencement. If the Company subsequently determines that it is probable it will collect substantially all of the lessee’s remaining lease payments under the lease term, the Company will reinstate the receivables balance, including those arising from the straight-lining of rents, adjusting for the amount related to the period when the lease was accounted for on a cash basis.

Recently Issued Accounting Literature — Effective for the fiscal period beginning January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses. In connection with the adoption of ASU 2016-03, we also adopted (i) ASU 2018-19 Codification Improvements to ASC 326, Financial Instruments - Credit Losses, (ii) ASU 2019-04, Codification Improvements to ASC 326, Financial Statements - Credit Losses, Topic 815, Derivatives and Hedging and Topic 825, Financial Instruments, (iii) ASU 2019-05 Financial Instruments - Credit Losses (ASC 326): Targeted Transition Relief and (iv) ASU 2019-11 Codification Improvements to ASC 326, Financial Instruments - Credit Losses. ASU 2016-13 introduces a new model for estimating credit losses for certain types of financial instruments and also modifies the impairment model with new methodology for estimating credits losses. In November 2018, the FASB issued ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments — Credit Losses, which included amendments to clarify receivables arising from operating leases are within the scope ASC 842 Leases. Due to the adoption of ASC 842 on January 1, 2019, the Company includes rental revenue deemed uncollectible as a reduction to rental revenue in "Rental revenue" in the consolidated statements of income. As of September 30, 2021, the Company did not have any material outstanding financial

instruments. The adoption of ASU 2016-13 did not have a material impact to our consolidated financial statements and disclosures.

In December 2019, the FASB issued ASU 2019-12 Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of the income tax accounting. ASU 2019-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. We adopted ASU 2019-12 effective January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements and disclosures.

In March 2020 and January 2021, the FASB issued ASU 2020-04 Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2021-01 Reference Rate Reform (ASC 848): Scope which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 and ASU 2021-01 are effective for all entities as of March 12, 2020 through December 31, 2022. We currently do not anticipate the need to modify our existing debt agreements as a result of reference rate reform in the current year, however if any modification is executed as a result of reference rate reform, the Company will elect the optional expedient available under ASU 2020-04 and ASU 2021-01, which allows entities to account for the modification as if the modification was not substantial. We will disclose the nature of and reason for electing the optional expedient in each interim and annual financial statement period if and when applicable through December 31, 2022.

In April 2020, the FASB issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated with the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief, that lessors provide to mitigate the economic effects of COVID-19 on lessees, is a lease modification under ASC 842. Instead, when the cash flows resulting from the lease concession granted for COVID-19 rent relief are substantially the same or less than the cash flows of the original contract, an entity may elect to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract).

The FASB stated that there are multiple ways to account for rent concessions, none of which the FASB believes are more preferable than the others. Two of those methods are: (i) account for the concessions as if no changes to the lease contract were made; under that accounting, a lessor would continue to increase its lease receivable and continue to recognize income, referred to as the “receivable approach”; or (ii) account for the deferred payments or abatements as variable lease payments; under that accounting, a lessor would recognize the payment as income in profit or loss in the period in which the changes in facts and circumstances on which the variable lease payments are based occurred, referred to as the “variable approach”.

The Company makes this election on a disaggregated basis, with such election applied consistently to leases with similar characteristics and similar circumstances. As of September 30, 2021, the Company has granted rent deferrals accounted under both the receivable approach by electing the Lease Modification Q&A and as modifications due to term extensions of the leases. The Company has also granted abatements accounted for under both the variable approach and as modifications due to the executed agreements including other rental term modifications, such as term extensions and substantial changes in cash flows. Refer to Note 10 to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q.

Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they are not relevant to the Company or the Operating Partnership, or they are not expected to have a material impact on our consolidated financial statements.

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ACQUISITIONS AND DISPOSITIONS

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS AND DISPOSITIONS

Acquisitions

During the nine months ended September 30, 2021 and 2020, we closed on the following acquisitions:

Date Purchased	Property Name	City	State	Square Feet	Purchase Price(1)
					(in thousands)
August 10, 2021	601 Murray Road	East Hanover	NJ	88,000	$	18,312
August 19, 2021	151 Ridgedale Avenue	East Hanover	NJ	187,000	37,759
				2021 Total	$	56,071
February 12, 2020	Kingswood Center	Brooklyn	NY	130,000	$	90,212
February 12, 2020	Kingswood Crossing	Brooklyn	NY	110,000	77,077
				2020 Total	$	167,289

(1) The total purchase price for the properties acquired during the nine months ended September 30, 2021 and 2020 includes $0.6 million and $2.5 million, respectively, of transaction costs incurred related to the acquisitions.

The two industrial properties, acquired in August 2021, are adjacent to our existing 943,000 sf warehouse park in East Hanover, NJ. The acquisition of 151 Ridgedale Avenue was partially funded via a Section 1031 exchange (a “1031 exchange”) using cash proceeds from previous dispositions.

Kingswood Center and Kingswood Crossing, acquired in February 2020, are located along Kings Highway in the Midwood neighborhood of Brooklyn, NY and were funded via 1031 exchanges using cash proceeds from dispositions. Additionally, as part of the acquisition of Kingswood Center, the Company assumed a $65.5 million mortgage, which matures in 2028.

The aggregate purchase price of the above property acquisitions have been allocated as follows:

Property Name	Land		Buildings and improvements		Identified intangible assets(1)		Identified intangible liabilities(1)		Debt premium		Total Purchase Price
(in thousands)
601 Murray Road	$	2,075	$	14,733	$	1,722	$	(218)	$	—	$	18,312
151 Ridgedale Avenue	2,990		35,509		—		(740)		—		37,759
2021 Total	$	5,065	$	50,242	$	1,722	$	(958)	$	—	$	56,071
Kingswood Center	$	15,690	$	76,766	$	9,263	$	(4,534)	$	(6,973)	$	90,212
Kingswood Crossing	8,150		64,159		4,768		—		—		77,077
2020 Total	$	23,840	$	140,925	$	14,031	$	(4,534)	$	(6,973)	$	167,289

(1) As of September 30, 2021, the remaining weighted average amortization periods of the identified intangible assets and identified intangible liabilities acquired in 2021 were 7.6 years and 1.4 years, respectively. The remaining weighted average amortization periods of the identified intangible assets and identified intangible liabilities acquired in 2020 were 8.1 years and 9.1 years, respectively.

Dispositions

During the nine months ended September 30, 2021, we disposed of three properties and one property parcel and received proceeds of $34.9 million, net of selling costs, resulting in an $18.6 million gain on sale of real estate. Of these dispositions completed during the nine months ended September 30, 2021, two were completed as a 1031 exchange with the acquisition of 151 Ridgedale Avenue, allowing for the deferral of capital gains from the sale for income tax purposes.

During the nine months ended September 30, 2020, we disposed of three properties and received proceeds of $58.1 million, net of selling costs, resulting in a $39.8 million net gain on sale of real estate. The sale of these properties were completed as 1031 exchanges with Kingswood Crossing as a result of the sales occurring within 180 days of the Company’s acquisition.

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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES

IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES

Our identified intangible assets (acquired in-place and above-market leases) and liabilities (acquired below-market leases), net of accumulated amortization, were $50.7 million and $128.5 million, respectively, as of September 30, 2021 and $56.2 million and $148.2 million, respectively, as of December 31, 2020.

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in additional rental income of $15.0 million and $19.8 million for the three and nine months ended September 30, 2021, respectively, and $2.3 million and $6.8 million for the same periods in 2020.

Amortization of acquired in-place leases inclusive of customer relationships resulted in additional depreciation and amortization expense of $2.2 million and $6.1 million for the three and nine months ended September 30, 2021, respectively, and $2.1 million and $6.3 million for the same periods in 2020.

On September 29, 2021, the Company entered into agreements to terminate our three remaining Kmart and Sears leases effective October 15, 2021. The modification of these leases resulted in accelerated amortization of the below-market intangible lease liabilities and in-place lease intangible assets of $12.5 million and $0.4 million, respectively.

The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2021 and the five succeeding years:

(Amounts in thousands)	Below-Market		Above-Market		In-Place Lease
Year	Operating Lease Amortization		Operating Lease Amortization		Amortization
2021(1)	$	35,787	$	(284)	$	(1,886)
2022	7,223		(803)		(6,198)
2023	7,178		(695)		(5,057)
2024	6,942		(631)		(4,570)
2025	6,761		(452)		(3,922)
2026	6,383		(434)		(3,609)

(1) Remainder of 2021. Includes accelerated amortization of below-market leases of $33.5 million related to the leases with Kmart and Sears.

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MORTGAGES PAYABLE

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

MORTGAGES PAYABLE

MORTGAGES PAYABLE

The following is a summary of mortgages payable as of September 30, 2021 and December 31, 2020.

		Interest Rate at
(Amounts in thousands)	Maturity	September 30, 2021	September 30, 2021		December 31, 2020
First mortgages secured by:
Variable rate
Cherry Hill (Plaza at Cherry Hill)(1)	5/24/2022	1.69%	$	28,541	$	28,930
Westfield (One Lincoln Plaza)(1)(3)	5/24/2022	1.69%	—		4,730
Woodbridge (Plaza at Woodbridge)(1)	5/25/2022	1.69%	54,595		55,340
Jersey City (Hudson Commons)(2)	11/15/2024	1.99%	28,172		28,586
Watchung(2)	11/15/2024	1.99%	26,226		26,613
Bronx (1750-1780 Gun Hill Road)(2)	12/1/2024	1.99%	24,803		25,172
Total variable rate debt			162,337		169,371
Fixed rate
Bergen Town Center - West, Paramus	4/8/2023	3.56%	300,000		300,000
Bronx (Shops at Bruckner)	5/1/2023	3.90%	9,864		10,351
Jersey City (Hudson Mall)	12/1/2023	5.07%	22,345		22,904
Yonkers Gateway Center	4/6/2024	4.16%	27,207		28,482
Brick	12/10/2024	3.87%	49,778		50,000
North Plainfield	12/10/2025	3.99%	25,100		25,100
Las Catalinas	2/1/2026	4.43%	124,897		127,669
Middletown	12/1/2026	3.78%	31,400		31,400
Rockaway	12/1/2026	3.78%	27,800		27,800
East Hanover (200 - 240 Route 10 West)	12/10/2026	4.03%	63,000		63,000
North Bergen (Tonnelle Ave)	4/1/2027	4.18%	100,000		100,000
Manchester	6/1/2027	4.32%	12,500		12,500
Millburn	6/1/2027	3.97%	23,055		23,381
Totowa	12/1/2027	4.33%	50,800		50,800
Woodbridge (Woodbridge Commons)	12/1/2027	4.36%	22,100		22,100
East Brunswick	12/6/2027	4.38%	63,000		63,000
East Rutherford	1/6/2028	4.49%	23,000		23,000
Brooklyn (Kingswood Center)	2/6/2028	5.07%	71,035		71,696
Hackensack	3/1/2028	4.36%	66,400		66,400
Marlton	12/1/2028	3.86%	37,400		37,400
East Hanover Warehouses	12/1/2028	4.09%	40,700		40,700
Union (2445 Springfield Ave)	12/10/2028	4.01%	45,600		45,600
Freeport (Freeport Commons)	12/10/2029	4.07%	43,100		43,100
Montehiedra	6/1/2030	5.00%	79,831		81,141
Montclair	8/15/2030	3.15%	7,250		7,250
Garfield	12/1/2030	4.14%	40,300		40,300
Mt Kisco	11/15/2034	6.40%	12,526		12,952
Total fixed rate debt			1,419,988		1,428,026
Total mortgages payable			1,582,325		1,597,397
	Unamortized debt issuance costs		(8,623)		(9,865)
Total mortgages payable, net			$	1,573,702	$	1,587,532

(1)Bears interest at one month LIBOR plus 160 bps.

(2)Bears interest at one month LIBOR plus 190 bps.

(3)Loan repaid in July 2021 in connection with the disposition of the property.

The net carrying amount of real estate collateralizing the above indebtedness amounted to approximately $1.3 billion as of September 30, 2021. Our mortgage loans contain covenants that limit our ability to incur additional indebtedness on these properties and in certain circumstances require lender approval of tenant leases and/or yield maintenance upon repayment prior to maturity. As of September 30, 2021, we were in compliance with all debt covenants.

As of September 30, 2021, the principal repayments of the Company’s total outstanding debt for the next five years and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,
2021(1)	$	4,114
2022	98,915
2023	349,814
2024	163,720
2025	40,946
2026	230,694
Thereafter	694,122

(1) Remainder of 2021.

Revolving Credit Agreement

On January 15, 2015, we entered into a $500 million Revolving Credit Agreement (the “Agreement”) with certain financial institutions. On March 7, 2017, we amended and extended the Agreement to increase the credit facility size by $100 million to $600 million and extended the maturity date to March 7, 2021, with two six-month extension options. On July 29, 2019, we entered into a second amendment to the Agreement to extend the maturity date to January 29, 2024, with two six-month extension options.

On June 3, 2020, we entered into a third amendment to the Agreement, which among other things, modified certain definitions and the measurement period for certain financial covenants to a trailing four-quarter period instead of the most recent quarter annualized. Company borrowings under the Agreement are subject to interest at LIBOR plus 1.05% to 1.50% and an annual facility fee of 15 to 30 basis points. Both the spread over LIBOR and the facility fee are based on our current leverage ratio and are subject to change. The Agreement contains customary financial covenants including a maximum leverage ratio of 60% and a minimum fixed charge coverage ratio of 1.5x.

No amounts were drawn or outstanding under the Agreement as of September 30, 2021 or December 31, 2020, respectively. Financing costs associated with executing the Agreement of $2.5 million and $3.3 million as of September 30, 2021 and December 31, 2020, respectively, are included in the prepaid expenses and other assets line item of the consolidated balance sheets, as deferred financing costs, net.

Mortgage on Las Catalinas Mall

In April 2020, we notified the servicer of the $129 million non-recourse mortgage loan on Las Catalinas Mall in Puerto Rico that cash flow would be insufficient to service the debt and that we were unwilling to fund the shortfalls. In December 2020, the non-recourse mortgage loan on Las Catalinas Mall was modified to convert the mortgage from an amortizing 4.43% loan to interest only payments, starting at 3.00% in 2021 and increasing 50 basis points annually until returning to 4.43% in 2024 and thereafter, and to include the ability for the Company to repay the loan at a discounted value of $72.5 million, beginning in August 2023 through the extended maturity date of February 2026.

While it is possible we will be able to repay the loan at the discounted value, it is contingent upon certain factors including the future operating performance of the property as well as the ability to meet all required payments on the loan. Therefore, in accordance with ASC 470-60 Troubled Debt Restructurings, the Company did not recognize a gain at the time of the restructuring, as the future cash payments, including contingent payments, are greater than the carrying value of the mortgage payable.

We have accrued interest of $5.4 million related to this mortgage, which is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheet as of September 30, 2021. We incurred $1.2 million of lender fees in connection with the loan modification which are treated as a reduction of the mortgage payable balance and amortized over the term of the loan in accordance with the provisions under ASC 470-60.

Mortgage on The Outlets at Montehiedra

In connection with the refinancing of the loan secured by The Outlets at Montehiedra (“Montehiedra”) in the second quarter of 2020, the Company provided a $12.5 million limited corporate guarantee. The guarantee is reduced commensurate with the loan amortization schedule and will reduce to zero in approximately five years. As of September 30, 2021, the remaining exposure under the guarantee is $10.3 million. There was no separate liability recorded related to this guarantee.

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INCOME TAXES

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company elected to be taxed as a REIT under sections 856-860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the filing of its 2015 tax return for its tax year ended December 31, 2015. With the exception of the Company’s taxable REIT subsidiary (“TRS”), to the extent the Company meets certain requirements under the Code, the Company will not be taxed on its federal taxable income. If we fail to qualify as a REIT for any taxable year, we will be subject to federal income taxes at regular corporate rates, including any alternative minimum tax, which, for corporations, was repealed under the Tax Cuts and Jobs Act (“TCJA”) and may not be able to qualify as a REIT for the four subsequent taxable years. In addition to its TRS, the Company is subject to certain foreign and state and local income taxes, in particular income taxes arising from its operating activities in Puerto Rico, which are included in income tax expense in the consolidated statements of income.

For U.S. federal income tax purposes, the REIT and other minority members are partners in the Operating Partnership. As such, the partners are required to report their share of taxable income on their respective tax returns. However, during the nine months ended September 30, 2021 and 2020, certain non-real estate operating activities that could not be performed by the REIT, occurred through the Company’s taxable REIT subsidiary (“TRS”), and the Company’s TRS is subject to federal, state and local income taxes. These income taxes are included in the income tax expense in the consolidated statements of income.

During the nine months ended September 30, 2021, the REIT was subject to Puerto Rico corporate income taxes on its allocable share of the Company’s Puerto Rico operating activities. The Puerto Rico corporate income tax consists of a flat 18.5% tax rate plus a graduated income surcharge tax for a maximum corporate income tax rate of 37.5%. In addition, the REIT is subject to a 10% branch profit tax on the earnings and profits generated from its allocable share of the Company’s Puerto Rico operating activities and such tax is included in income tax expense in the consolidated statements of income. During the nine months ended September 30, 2020 the Company also had activities occurring in special partnerships subject to a Puerto Rico 29% non-resident withholding tax on the net income from operating activities allocated to the Operating Partnership.

During the nine months ended September 30, 2020, the Company completed a refinancing and legal entity restructuring transaction at The Outlets at Montehiedra in San Juan, PR, which resulted in a deferred tax asset, net of $13.1 million and recognized an accompanying income tax benefit on its consolidated statements of income. As a result, for the three and nine months ended September 30, 2020 the Company recorded an income tax benefit of $1.3 million and $14.8 million, respectively, which is included in income tax benefit (expense) in the consolidated statements of income.

For the tax year ended December 31, 2020, the Company recognized a gain on extinguishment of debt for U.S. federal income tax purposes and implemented various tax planning strategies to limit its impact on the Company’s overall U.S. federal taxable income. The strategies implemented resulted in the recognition of an estimated state and local income tax expense of $4.5 million for the REIT during the year ended December 31, 2020. During the nine months ended September 30, 2021, the Company refined the estimated state and local income tax accrued in 2020 and recognized an income tax benefit of $0.5 million.

For the three and nine months ended September 30, 2021, the Puerto Rico income tax expense was $0.7 million and $1.4 million, respectively and the REIT’s state and local income tax benefit was $0.5 million for the nine months ended September 30, 2021. There was no state and local income tax benefit recognized for the three months ended September 30, 2021. All amounts for the three and nine months ended September 30, 2021 and 2020 are included in income tax expense on the consolidated statements of income.

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LEASES (Notes)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

LEASES

LEASESAll rental revenue was generated from operating leases for the three and nine months ended September 30, 2021 and September 30, 2020, respectively. The components of rental revenue for the three and nine months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		2021		2020
Rental Revenue
Fixed lease revenue(1)	$	80,961	$	53,396	$	216,200	$	174,141
Variable lease revenue	25,024		21,963		78,057		67,483
Total rental revenue	$	105,985	$	75,359	$	294,257	$	241,624

(1) Amount includes write-off of $12.5 million of below-market intangible liabilities related to the termination of the Kmart and Sears leases.

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FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value.

Financial Assets and Liabilities Measured at Fair Value on a Recurring or Non-Recurring Basis

There were no financial assets or liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2021 and December 31, 2020.

Financial Assets and Liabilities not Measured at Fair Value

Financial assets and liabilities that are not measured at fair value on the consolidated balance sheets include cash and cash equivalents and mortgages payable. Cash and cash equivalents are carried at cost, which approximates fair value. The fair value of mortgages payable is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist. The fair value of cash and cash equivalents is classified as Level 1 and the fair values of mortgages payable is classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments as of September 30, 2021 and December 31, 2020.

	As of September 30, 2021				As of December 31, 2020
(Amounts in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents	$	268,952	$	268,952	$	384,572	$	384,572
Liabilities:
Mortgages payable(1)	$	1,582,325	$	1,588,270	$	1,597,397	$	1,611,868

(1) Carrying amounts exclude unamortized debt issuance costs of $8.6 million and $9.9 million as of September 30, 2021 and December 31, 2020, respectively.

Nonfinancial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

We assess the carrying value of our properties for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

No material impairment charges were recognized during the three and nine months ended September 30, 2021 or 2020.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

There are various legal actions against us in the ordinary course of business. After consultation with legal counsel, we have concluded that the outcome of such matters will not have a material adverse effect on our financial condition, results of operations, or cash flows.

Redevelopment and Anchor Repositioning

As of September 30, 2021, we had approximately $152.4 million of active development, redevelopment and anchor repositioning projects under way, of which $91.1 million remains to be funded. Further, while we have identified future projects in our development pipeline, we are under no obligation to execute and fund any of these projects and each of these projects is being reevaluated considering market conditions.

Termination of Kmart and Sears Leases

On September 29, 2021, the Company reached an agreement with Transform HoldCo LLC, the owner and operator of Kmart and Sears, to terminate its remaining leases at Bruckner Commons, Sunrise Mall and The Outlets at Montehiedra effective October 15, 2021. The Company recorded a $20 million accrual as of September 30, 2021, for the payment made on October 15, 2021, to recapture control of these spaces. As controlling these anchor spaces is a critical aspect of the value creation plans the Company has under way to reposition these spaces, the $20 million has been capitalized as construction in progress.

Insurance 

The Company’s primary and excess insurance policies providing coverage for pollution related losses have an aggregate limit of $50 million and provide remediation and business interruption coverage for pollution incidents, which pursuant to our policies expressly include the presence and dispersal of viruses. On December 23, 2020, the Company initiated litigation in New Jersey state court, Bergen County, under these policies to recover uncollected rents and other amounts resulting from the COVID-19 virus.

Insurance premiums are typically charged directly to each of the properties but not all of the cost of such premiums are recovered. The Company is responsible for deductibles, losses in excess of insurance coverage, and the portion of premiums not reimbursable by tenants at our properties, which could be material.

We continue to monitor the state of the insurance market and the scope and costs of available coverage. We cannot anticipate what coverage will be available on commercially reasonable terms in the future and expect premiums across most coverage lines to increase in light of recent events. The incurrence of uninsured losses, costs or uncovered premiums could materially and adversely affect our business, results of operations and financial condition.

Certain of our loans and other agreements contain customary covenants requiring the maintenance of insurance coverage. Although we believe that we currently have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. If lenders or other counterparties insist on greater coverage than we are able to obtain, such requirement could materially and adversely affect our ability to finance our properties and expand our portfolio.

Environmental Matters

Each of our properties has been subjected to varying degrees of environmental assessment at various times. Based on these assessments, we have accrued costs of $1.7 million and $1.8 million on our consolidated balance sheets as of September 30, 2021 and December 31, 2020, respectively, for remediation costs for environmental contamination at certain properties. While this accrual reflects our best estimates of the potential costs of remediation at these properties, there can be no assurance that the actual costs will not exceed these amounts. Although we are not aware of any other material environmental contamination, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us.

Pandemic-Related Contingencies

On March 11, 2020, the World Health Organization characterized the COVID-19 outbreak as a pandemic. Since March 2020, the Company has granted rent concessions and other lease-related relief, such as rent deferrals, to tenants impacted by the pandemic. Rent relief, deferral or abatements and tenant defaults on lease obligations, such as repayment of deferred rent may have a negative impact on our rental revenue and net income.

Other than adjusting revenue for tenant receivables that may not be collectible, the Company is not currently aware of any other loss contingencies related to the COVID-19 pandemic that would require recognition at this time.

Bankruptcies

Although our rental revenue is supported by long-term leases, leases may be rejected in a bankruptcy proceeding and the related tenant stores may permanently vacate prior to lease expiration. In the event a tenant with a significant number of leases or square footage in our shopping centers files for bankruptcy and rejects its leases with us, we could experience a reduction in our revenues. We monitor the operating performance and rent collections of all tenants in our shopping centers, especially those tenants in arrears or operating retail formats that are experiencing significant changes in competition, business practice, or store closings in other locations. Given the economic environment brought upon by COVID-19, certain tenants experienced liquidity or financial hardships and filed for Chapter 11 bankruptcy protection since the pandemic was declared. Although some of these tenants intend to exit the Chapter 11 bankruptcy process and resume operations, the outcomes of such proceedings are unknown and the Company is currently exploring leasing alternatives for these spaces.

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PREPAID EXPENSES AND OTHER ASSETS

9 Months Ended

Sep. 30, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES AND OTHER ASSETS

PREPAID EXPENSES AND OTHER ASSETS

The following is a summary of the composition of the prepaid expenses and other assets in the consolidated balance sheets:

	Balance at
(Amounts in thousands)	September 30, 2021		December 31, 2020
Other assets	$	9,463	$	5,953
Deferred tax asset, net	38,376		39,677
Deferred financing costs, net of accumulated amortization of $5,653 and $4,819, respectively	2,512		3,347
Finance lease right-of-use asset	2,724		2,724
Real estate held for sale	—		7,056
Prepaid expenses:
Real estate taxes	7,560		8,093
Insurance	3,298		1,583
Licenses/fees	1,632		1,878
Total Prepaid expenses and other assets	$	65,565	$	70,311

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ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

9 Months Ended

Sep. 30, 2021

Other Liabilities Disclosure [Abstract]

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

The following is a summary of the composition of accounts payable, accrued expenses and other liabilities in the consolidated balance sheets:

	Balance at
(Amounts in thousands)	September 30, 2021		December 31, 2020
Dividend payable	$	—	$	55,905
Deferred tenant revenue	23,958		26,594
Accrued interest payable	9,437		11,095
Accrued capital expenditures and leasing costs(1)	33,115		7,797
Security deposits	6,720		5,884
Finance lease liability	3,001		2,993
Accrued payroll expenses	6,811		5,797
Other liabilities and accrued expenses	11,472		16,915
Total accounts payable, accrued expenses and other liabilities	$	94,514	$	132,980

(1) Amount includes $20 million due in connection with the agreements to terminate our three Kmart and Sears leases.

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INTEREST AND DEBT EXPENSE

9 Months Ended

Sep. 30, 2021

Other Income and Expenses [Abstract]

INTEREST AND DEBT EXPENSE

INTEREST AND DEBT EXPENSE

The following table sets forth the details of interest and debt expense in the consolidated statements of income:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		2021		2020
Interest expense	$	13,893	$	17,433	$	41,946	$	51,771
Amortization of deferred financing costs	745		703		2,247		2,113
Total Interest and debt expense	$	14,638	$	18,136	$	44,193	$	53,884

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EQUITY AND NONCONTROLLING INTEREST

9 Months Ended

Sep. 30, 2021

Noncontrolling Interest [Abstract]

EQUITY AND NONCONTROLLING INTEREST

EQUITY AND NONCONTROLLING INTEREST

At-The-Market Program

On May 5, 2021 the Company established an at-the-market equity program (the “ATM Program”), pursuant to which the Company may offer and sell common shares, par value $0.01 per share, with an aggregate gross sales price of up to $250 million. Sales under the ATM Program may be made from time to time, as needed, by means of ordinary brokers’ transactions or other transactions that are deemed to be “at the market” offerings, in privately negotiated transactions, which may include block trades, or as otherwise agreed with the sales agents.

As of September 30, 2021, the Company has not issued any common shares under the ATM Program. Future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common shares, and our capital needs. The Company has no obligation to sell any shares under the ATM Program.

Share Repurchase Program

In March 2020, the Company’s Board of Trustees authorized a share repurchase program for up to $200 million of the Company’s common shares. Under the program, the Company may repurchase its shares from time to time in the open market or in privately negotiated transactions in compliance with Securities and Exchange Commission Rule 10b-18. The amount and timing of the purchases will depend on a number of factors including the price and availability of the Company’s shares, trading volume and general market conditions. The share repurchase program does not obligate the Company to acquire any particular amount of common shares and may be suspended or discontinued at any time at the Company’s discretion.

During the nine months ended September 30, 2021, no shares were repurchased by the Company. During the nine months ended September 30, 2020, the Company repurchased 5.9 million common shares at a weighted average share price of $9.22 under this program, for a total of $54.1 million.

Dividends and Distributions

During the three months ended September 30, 2021, the Company declared distributions on common shares and OP units of $0.15 per share/unit. During the three months ended September 30, 2020, the Company temporarily suspended dividends as a result of the COVID-19 pandemic and resulting uncertainty, and as such, no dividends were declared on our common shares or OP units. During the nine months ended September 30, 2021 and 2020, respectively, the Company declared distributions on our common shares and OP units of $0.45 and $0.22 per share/unit in the aggregate.

Noncontrolling Interests in Operating Partnership

Noncontrolling interests in the Operating Partnership reflected on the consolidated balance sheets of the Company are comprised of OP units and limited partnership interests in the Operating Partnership in the form of LTIP unit awards. LTIP unit awards were granted to certain executives pursuant to our 2015 Omnibus Share Plan (the “Omnibus Share Plan”) and our 2018 Inducement Equity Plan (the “Inducement Plan”). OP units were issued to contributors in exchange for their property interests in connection with the Company’s property acquisitions in 2017.

The total of the OP units and LTIP units represent a 4.0% and 4.2% weighted-average interest in the Operating Partnership for the three and nine months ended September 30, 2021, respectively. Holders of outstanding vested LTIP units may, from and after two years from the date of issuance, redeem their LTIP units for cash, or for the Company’s common shares on a one-for-one basis, solely at our election. Holders of outstanding OP units may redeem their units for cash or the Company’s common shares on a one-for-one basis, solely at our election.

Noncontrolling Interests in Consolidated SubsidiariesThe Company’s noncontrolling interests relate to the 5% interest held by others in our property in Walnut Creek, CA (Mount Diablo) and 17.5% held by others in our property in Massapequa, NY. The net income attributable to noncontrolling interests is presented separately in our consolidated statements of income.

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SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

Share-Based Compensation Expense

Share-based compensation expense, which is included in general and administrative expenses in our consolidated statements of income, is summarized as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		2021		2020
Share-based compensation expense components:
Restricted share expense	$	98	$	199	$	365	$	653
Stock option expense	384		432		1,181		4,559
LTIP expense(1)	1,326		1,023		3,659		6,323
Performance-based LTI expense(2)	976		944		2,889		2,886
Deferred share unit (“DSU”) expense	25		6		124		42
Total Share-based compensation expense	$	2,809	$	2,604	$	8,218	$	14,463

(1) LTIP expense includes the time-based portion of the 2018, 2019, 2020 and 2021 LTI Plans.

(2) Performance-based LTI expense includes the 2017 OPP plan and the performance-based portion of the 2018, 2019, 2020 and 2021 LTI Plans.

Equity award activity during the nine months ended September 30, 2021 included: (i) 333,333 stock options vested, (ii) 325,625 LTIP units granted, (iii) 151,398 LTIP units vested, (iv) 2,886 LTIP units forfeited, (v) 34,532 restricted shares vested, (vi) 17,933 restricted shares granted, and (vii) 5,945 restricted shares forfeited.

2021 Long-Term Incentive Plan

On February 10, 2021, the Compensation Committee of the Board of Trustees of the Company approved the Company’s 2021 Long-Term Incentive Plan (“2021 LTI Plan”). The Plan is a multi-year, equity compensation program under which participants, including our Chairman and Chief Executive Officer, have the opportunity to earn awards in the form of LTIP units that vest based on the passage of time (one-half of the program) and performance goals tied to our relative and absolute total shareholder return (“TSR”) during the three-year performance period following their grant (one-half of the program). The total grant date fair value under the 2021 LTI Plan was $7.8 million comprising both performance-based and time-based awards as described further below:

Performance-based awards

For the performance-based awards under the 2021 LTI Plan, participants have the opportunity to earn awards in the form of LTIP Units if Urban Edge’s absolute and/or relative TSR meets certain criteria over the three-year performance measurement period (the “Performance Period”) beginning on February 10, 2021 and ending on February 9, 2024. The Company granted performance-based awards under the 2021 LTI Plan that represent 398,977 LTIP Units. The fair value of the performance-based award portion of the 2021 LTI Plan on the date of grant was $3.9 million using a Monte Carlo simulation to estimate the fair value through a risk-neutral premise.

Under the Absolute TSR component, 40% of the LTIP Units will be earned if the Company’s TSR over the Performance Period

is equal to 18%, 100% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to 27%, and 165% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to or greater than 36%. The Relative TSR component is based on the Company’s performance compared to a peer group comprised of 15 companies. Under the Relative TSR Component, 40% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to the 35th percentile of the peer group, 100% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to the 55th percentile of the peer group, and 165% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to or above the 75th percentile of the peer group, with earning determined using linear interpolation if in between such relative and absolute TSR thresholds.

Time-based awards

The time-based awards granted under the 2021 LTI Plan, also granted in the form of LTIP Units, vest ratably over three years except in the case of our Chairman and Chief Executive Officer, where the vesting is ratably over four years. As of September 30, 2021, the Company granted time-based awards under the 2021 LTI Plan that represent 273,615 LTIP units with a grant date fair value of $3.9 million.

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EARNINGS PER SHARE AND UNIT

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

EARNINGS PER SHARE AND UNIT

EARNINGS PER SHARE AND UNIT

Urban Edge Earnings per Share

We have calculated earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of Urban Edge common shares and participating securities is calculated according to dividends declared and participating rights in undistributed earnings. Restricted shares issued pursuant to our share-based compensation program are considered participating securities, and as such have non-forfeitable rights to receive dividends.

The following table sets forth the computation of our basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands, except per share amounts)	2021		2020		2021		2020
Numerator:
Net income (loss) attributable to common shareholders	$	27,766	$	(5,605)	$	60,233	$	74,630
Less: Earnings allocated to unvested participating securities	(12)		4		(29)		(50)
Net income (loss) available for common shareholders - basic	$	27,754	$	(5,601)	$	60,204	$	74,580
Impact of assumed conversions:
OP and LTIP units	—		—		2,608		—
Net income available for common shareholders - dilutive	$	27,754	$	(5,601)	$	62,812	$	74,580
Denominator:
Weighted average common shares outstanding - basic	117,087		116,625		117,009		118,033
Effect of dilutive securities(1):
Restricted share awards	50		—		56		78
Assumed conversion of OP and LTIP units	—		—		5,147		—
Weighted average common shares outstanding - diluted	117,137		116,625		122,212		118,111
Earnings per share available to common shareholders:
Earnings (loss) per common share - Basic	$	0.24	$	(0.05)	$	0.51	$	0.63
Earnings (loss) per common share - Diluted	$	0.24	$	(0.05)	$	0.51	$	0.63

(1) For the three months ended September 30, 2021 and the three and nine months ended September 30, 2020, the effect of the redemption of OP and LTIP units for Urban Edge common shares would have an anti-dilutive effect on the calculation of diluted EPS. Accordingly, the impact of such redemption has not been included in the determination of diluted EPS for these periods.

Operating Partnership Earnings per Unit

The following table sets forth the computation of basic and diluted earnings per unit:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands, except per unit amounts)	2021		2020		2021		2020
Numerator:
Net income (loss) attributable to unitholders	$	28,915	$	(5,830)	$	62,841	$	78,003
Less: net income attributable to participating securities	(12)		4		(29)		(50)
Net income (loss) available for unitholders	$	28,903	$	(5,826)	$	62,812	$	77,953
Denominator:
Weighted average units outstanding - basic	120,903		120,618		120,839		122,332
Effect of dilutive securities issued by Urban Edge	50		—		56		78
Unvested LTIP units	1,034		—		1,317		764
Weighted average units outstanding - diluted	121,987		120,618		122,212		123,174
Earnings per unit available to unitholders:
Earnings (loss) per unit - Basic	$	0.24	$	(0.05)	$	0.52	$	0.64
Earnings (loss) per unit - Diluted	$	0.24	$	(0.05)	$	0.51	$	0.63

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Accounting

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions of Form 10-Q. Certain information and footnote disclosures included in our annual financial statements have been condensed or omitted. In the opinion of management, the consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company and the Operating Partnership and the results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021. Accordingly, these consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the Securities Exchange Commission (“SEC”).

Consolidation and Noncontrolling Interests

The consolidated balance sheets as of September 30, 2021 and December 31, 2020 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. As of September 30, 2021 and December 31, 2020, excluding the Operating Partnership, we consolidated two VIEs with total assets of $64.6 million and $43.6 million, respectively and total liabilities of $45.1 million and $31.5 million, respectively. The consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 include the consolidated accounts of the Company and the Operating Partnership. All intercompany transactions have been eliminated in consolidation.

Recently Issued Accounting Literature

Recently Issued Accounting Literature — Effective for the fiscal period beginning January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses. In connection with the adoption of ASU 2016-03, we also adopted (i) ASU 2018-19 Codification Improvements to ASC 326, Financial Instruments - Credit Losses, (ii) ASU 2019-04, Codification Improvements to ASC 326, Financial Statements - Credit Losses, Topic 815, Derivatives and Hedging and Topic 825, Financial Instruments, (iii) ASU 2019-05 Financial Instruments - Credit Losses (ASC 326): Targeted Transition Relief and (iv) ASU 2019-11 Codification Improvements to ASC 326, Financial Instruments - Credit Losses. ASU 2016-13 introduces a new model for estimating credit losses for certain types of financial instruments and also modifies the impairment model with new methodology for estimating credits losses. In November 2018, the FASB issued ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments — Credit Losses, which included amendments to clarify receivables arising from operating leases are within the scope ASC 842 Leases. Due to the adoption of ASC 842 on January 1, 2019, the Company includes rental revenue deemed uncollectible as a reduction to rental revenue in "Rental revenue" in the consolidated statements of income. As of September 30, 2021, the Company did not have any material outstanding financial

instruments. The adoption of ASU 2016-13 did not have a material impact to our consolidated financial statements and disclosures.

In December 2019, the FASB issued ASU 2019-12 Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of the income tax accounting. ASU 2019-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. We adopted ASU 2019-12 effective January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements and disclosures.

In March 2020 and January 2021, the FASB issued ASU 2020-04 Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2021-01 Reference Rate Reform (ASC 848): Scope which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 and ASU 2021-01 are effective for all entities as of March 12, 2020 through December 31, 2022. We currently do not anticipate the need to modify our existing debt agreements as a result of reference rate reform in the current year, however if any modification is executed as a result of reference rate reform, the Company will elect the optional expedient available under ASU 2020-04 and ASU 2021-01, which allows entities to account for the modification as if the modification was not substantial. We will disclose the nature of and reason for electing the optional expedient in each interim and annual financial statement period if and when applicable through December 31, 2022.

In April 2020, the FASB issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated with the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief, that lessors provide to mitigate the economic effects of COVID-19 on lessees, is a lease modification under ASC 842. Instead, when the cash flows resulting from the lease concession granted for COVID-19 rent relief are substantially the same or less than the cash flows of the original contract, an entity may elect to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract).

The FASB stated that there are multiple ways to account for rent concessions, none of which the FASB believes are more preferable than the others. Two of those methods are: (i) account for the concessions as if no changes to the lease contract were made; under that accounting, a lessor would continue to increase its lease receivable and continue to recognize income, referred to as the “receivable approach”; or (ii) account for the deferred payments or abatements as variable lease payments; under that accounting, a lessor would recognize the payment as income in profit or loss in the period in which the changes in facts and circumstances on which the variable lease payments are based occurred, referred to as the “variable approach”.

The Company makes this election on a disaggregated basis, with such election applied consistently to leases with similar characteristics and similar circumstances. As of September 30, 2021, the Company has granted rent deferrals accounted under both the receivable approach by electing the Lease Modification Q&A and as modifications due to term extensions of the leases. The Company has also granted abatements accounted for under both the variable approach and as modifications due to the executed agreements including other rental term modifications, such as term extensions and substantial changes in cash flows. Refer to Note 10 to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q.

Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they are not relevant to the Company or the Operating Partnership, or they are not expected to have a material impact on our consolidated financial statements.

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ACQUISITIONS AND DISPOSITIONS (Tables)

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions, by Acquisition

During the nine months ended September 30, 2021 and 2020, we closed on the following acquisitions:

Date Purchased	Property Name	City	State	Square Feet	Purchase Price(1)
					(in thousands)
August 10, 2021	601 Murray Road	East Hanover	NJ	88,000	$	18,312
August 19, 2021	151 Ridgedale Avenue	East Hanover	NJ	187,000	37,759
				2021 Total	$	56,071
February 12, 2020	Kingswood Center	Brooklyn	NY	130,000	$	90,212
February 12, 2020	Kingswood Crossing	Brooklyn	NY	110,000	77,077
				2020 Total	$	167,289

(1) The total purchase price for the properties acquired during the nine months ended September 30, 2021 and 2020 includes $0.6 million and $2.5 million, respectively, of transaction costs incurred related to the acquisitions.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The aggregate purchase price of the above property acquisitions have been allocated as follows:

Property Name	Land		Buildings and improvements		Identified intangible assets(1)		Identified intangible liabilities(1)		Debt premium		Total Purchase Price
(in thousands)
601 Murray Road	$	2,075	$	14,733	$	1,722	$	(218)	$	—	$	18,312
151 Ridgedale Avenue	2,990		35,509		—		(740)		—		37,759
2021 Total	$	5,065	$	50,242	$	1,722	$	(958)	$	—	$	56,071
Kingswood Center	$	15,690	$	76,766	$	9,263	$	(4,534)	$	(6,973)	$	90,212
Kingswood Crossing	8,150		64,159		4,768		—		—		77,077
2020 Total	$	23,840	$	140,925	$	14,031	$	(4,534)	$	(6,973)	$	167,289

(1) As of September 30, 2021, the remaining weighted average amortization periods of the identified intangible assets and identified intangible liabilities acquired in 2021 were 7.6 years and 1.4 years, respectively. The remaining weighted average amortization periods of the identified intangible assets and identified intangible liabilities acquired in 2020 were 8.1 years and 9.1 years, respectively.

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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Estimated Annual Amortization Expense

The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2021 and the five succeeding years:

(Amounts in thousands)	Below-Market		Above-Market		In-Place Lease
Year	Operating Lease Amortization		Operating Lease Amortization		Amortization
2021(1)	$	35,787	$	(284)	$	(1,886)
2022	7,223		(803)		(6,198)
2023	7,178		(695)		(5,057)
2024	6,942		(631)		(4,570)
2025	6,761		(452)		(3,922)
2026	6,383		(434)		(3,609)

(1) Remainder of 2021. Includes accelerated amortization of below-market leases of $33.5 million related to the leases with Kmart and Sears.

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MORTGAGES PAYABLE (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Mortgages Payable

The following is a summary of mortgages payable as of September 30, 2021 and December 31, 2020.

		Interest Rate at
(Amounts in thousands)	Maturity	September 30, 2021	September 30, 2021		December 31, 2020
First mortgages secured by:
Variable rate
Cherry Hill (Plaza at Cherry Hill)(1)	5/24/2022	1.69%	$	28,541	$	28,930
Westfield (One Lincoln Plaza)(1)(3)	5/24/2022	1.69%	—		4,730
Woodbridge (Plaza at Woodbridge)(1)	5/25/2022	1.69%	54,595		55,340
Jersey City (Hudson Commons)(2)	11/15/2024	1.99%	28,172		28,586
Watchung(2)	11/15/2024	1.99%	26,226		26,613
Bronx (1750-1780 Gun Hill Road)(2)	12/1/2024	1.99%	24,803		25,172
Total variable rate debt			162,337		169,371
Fixed rate
Bergen Town Center - West, Paramus	4/8/2023	3.56%	300,000		300,000
Bronx (Shops at Bruckner)	5/1/2023	3.90%	9,864		10,351
Jersey City (Hudson Mall)	12/1/2023	5.07%	22,345		22,904
Yonkers Gateway Center	4/6/2024	4.16%	27,207		28,482
Brick	12/10/2024	3.87%	49,778		50,000
North Plainfield	12/10/2025	3.99%	25,100		25,100
Las Catalinas	2/1/2026	4.43%	124,897		127,669
Middletown	12/1/2026	3.78%	31,400		31,400
Rockaway	12/1/2026	3.78%	27,800		27,800
East Hanover (200 - 240 Route 10 West)	12/10/2026	4.03%	63,000		63,000
North Bergen (Tonnelle Ave)	4/1/2027	4.18%	100,000		100,000
Manchester	6/1/2027	4.32%	12,500		12,500
Millburn	6/1/2027	3.97%	23,055		23,381
Totowa	12/1/2027	4.33%	50,800		50,800
Woodbridge (Woodbridge Commons)	12/1/2027	4.36%	22,100		22,100
East Brunswick	12/6/2027	4.38%	63,000		63,000
East Rutherford	1/6/2028	4.49%	23,000		23,000
Brooklyn (Kingswood Center)	2/6/2028	5.07%	71,035		71,696
Hackensack	3/1/2028	4.36%	66,400		66,400
Marlton	12/1/2028	3.86%	37,400		37,400
East Hanover Warehouses	12/1/2028	4.09%	40,700		40,700
Union (2445 Springfield Ave)	12/10/2028	4.01%	45,600		45,600
Freeport (Freeport Commons)	12/10/2029	4.07%	43,100		43,100
Montehiedra	6/1/2030	5.00%	79,831		81,141
Montclair	8/15/2030	3.15%	7,250		7,250
Garfield	12/1/2030	4.14%	40,300		40,300
Mt Kisco	11/15/2034	6.40%	12,526		12,952
Total fixed rate debt			1,419,988		1,428,026
Total mortgages payable			1,582,325		1,597,397
	Unamortized debt issuance costs		(8,623)		(9,865)
Total mortgages payable, net			$	1,573,702	$	1,587,532

(1)Bears interest at one month LIBOR plus 160 bps.

(2)Bears interest at one month LIBOR plus 190 bps.

(3)Loan repaid in July 2021 in connection with the disposition of the property.

Schedule of Principal Repayments

As of September 30, 2021, the principal repayments of the Company’s total outstanding debt for the next five years and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,
2021(1)	$	4,114
2022	98,915
2023	349,814
2024	163,720
2025	40,946
2026	230,694
Thereafter	694,122

(1) Remainder of 2021.

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LEASES (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Schedule of Components of Rental Revenue

The components of rental revenue for the three and nine months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		2021		2020
Rental Revenue
Fixed lease revenue(1)	$	80,961	$	53,396	$	216,200	$	174,141
Variable lease revenue	25,024		21,963		78,057		67,483
Total rental revenue	$	105,985	$	75,359	$	294,257	$	241,624

(1) Amount includes write-off of $12.5 million of below-market intangible liabilities related to the termination of the Kmart and Sears leases.

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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Financial Instrument Carrying Amounts and Fair Values

The table below summarizes the carrying amounts and fair value of these financial instruments as of September 30, 2021 and December 31, 2020.

	As of September 30, 2021				As of December 31, 2020
(Amounts in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents	$	268,952	$	268,952	$	384,572	$	384,572
Liabilities:
Mortgages payable(1)	$	1,582,325	$	1,588,270	$	1,597,397	$	1,611,868

(1) Carrying amounts exclude unamortized debt issuance costs of $8.6 million and $9.9 million as of September 30, 2021 and December 31, 2020, respectively.

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PREPAID EXPENSES AND OTHER ASSETS (Tables)

9 Months Ended

Sep. 30, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Composition of Prepaid Expenses and Other Assets

The following is a summary of the composition of the prepaid expenses and other assets in the consolidated balance sheets:

	Balance at
(Amounts in thousands)	September 30, 2021		December 31, 2020
Other assets	$	9,463	$	5,953
Deferred tax asset, net	38,376		39,677
Deferred financing costs, net of accumulated amortization of $5,653 and $4,819, respectively	2,512		3,347
Finance lease right-of-use asset	2,724		2,724
Real estate held for sale	—		7,056
Prepaid expenses:
Real estate taxes	7,560		8,093
Insurance	3,298		1,583
Licenses/fees	1,632		1,878
Total Prepaid expenses and other assets	$	65,565	$	70,311

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ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2021

Other Liabilities Disclosure [Abstract]

Schedule of Composition of Accounts Payable, Accrued Expenses and Other Liabilites

The following is a summary of the composition of accounts payable, accrued expenses and other liabilities in the consolidated balance sheets:

	Balance at
(Amounts in thousands)	September 30, 2021		December 31, 2020
Dividend payable	$	—	$	55,905
Deferred tenant revenue	23,958		26,594
Accrued interest payable	9,437		11,095
Accrued capital expenditures and leasing costs(1)	33,115		7,797
Security deposits	6,720		5,884
Finance lease liability	3,001		2,993
Accrued payroll expenses	6,811		5,797
Other liabilities and accrued expenses	11,472		16,915
Total accounts payable, accrued expenses and other liabilities	$	94,514	$	132,980

(1) Amount includes $20 million due in connection with the agreements to terminate our three Kmart and Sears leases.

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INTEREST AND DEBT EXPENSE (Tables)

9 Months Ended

Sep. 30, 2021

Other Income and Expenses [Abstract]

Schedule of Interest and Debt Expense

The following table sets forth the details of interest and debt expense in the consolidated statements of income:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		2021		2020
Interest expense	$	13,893	$	17,433	$	41,946	$	51,771
Amortization of deferred financing costs	745		703		2,247		2,113
Total Interest and debt expense	$	14,638	$	18,136	$	44,193	$	53,884

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SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Summary of Share-based Compensation Expense

Share-based compensation expense, which is included in general and administrative expenses in our consolidated statements of income, is summarized as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2021		2020		2021		2020
Share-based compensation expense components:
Restricted share expense	$	98	$	199	$	365	$	653
Stock option expense	384		432		1,181		4,559
LTIP expense(1)	1,326		1,023		3,659		6,323
Performance-based LTI expense(2)	976		944		2,889		2,886
Deferred share unit (“DSU”) expense	25		6		124		42
Total Share-based compensation expense	$	2,809	$	2,604	$	8,218	$	14,463

(1) LTIP expense includes the time-based portion of the 2018, 2019, 2020 and 2021 LTI Plans.

(2) Performance-based LTI expense includes the 2017 OPP plan and the performance-based portion of the 2018, 2019, 2020 and 2021 LTI Plans.

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EARNINGS PER SHARE AND UNIT (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings per Share and Unit

The following table sets forth the computation of our basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands, except per share amounts)	2021		2020		2021		2020
Numerator:
Net income (loss) attributable to common shareholders	$	27,766	$	(5,605)	$	60,233	$	74,630
Less: Earnings allocated to unvested participating securities	(12)		4		(29)		(50)
Net income (loss) available for common shareholders - basic	$	27,754	$	(5,601)	$	60,204	$	74,580
Impact of assumed conversions:
OP and LTIP units	—		—		2,608		—
Net income available for common shareholders - dilutive	$	27,754	$	(5,601)	$	62,812	$	74,580
Denominator:
Weighted average common shares outstanding - basic	117,087		116,625		117,009		118,033
Effect of dilutive securities(1):
Restricted share awards	50		—		56		78
Assumed conversion of OP and LTIP units	—		—		5,147		—
Weighted average common shares outstanding - diluted	117,137		116,625		122,212		118,111
Earnings per share available to common shareholders:
Earnings (loss) per common share - Basic	$	0.24	$	(0.05)	$	0.51	$	0.63
Earnings (loss) per common share - Diluted	$	0.24	$	(0.05)	$	0.51	$	0.63

(1) For the three months ended September 30, 2021 and the three and nine months ended September 30, 2020, the effect of the redemption of OP and LTIP units for Urban Edge common shares would have an anti-dilutive effect on the calculation of diluted EPS. Accordingly, the impact of such redemption has not been included in the determination of diluted EPS for these periods.

Operating Partnership Earnings per Unit

The following table sets forth the computation of basic and diluted earnings per unit:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands, except per unit amounts)	2021		2020		2021		2020
Numerator:
Net income (loss) attributable to unitholders	$	28,915	$	(5,830)	$	62,841	$	78,003
Less: net income attributable to participating securities	(12)		4		(29)		(50)
Net income (loss) available for unitholders	$	28,903	$	(5,826)	$	62,812	$	77,953
Denominator:
Weighted average units outstanding - basic	120,903		120,618		120,839		122,332
Effect of dilutive securities issued by Urban Edge	50		—		56		78
Unvested LTIP units	1,034		—		1,317		764
Weighted average units outstanding - diluted	121,987		120,618		122,212		123,174
Earnings per unit available to unitholders:
Earnings (loss) per unit - Basic	$	0.24	$	(0.05)	$	0.52	$	0.64
Earnings (loss) per unit - Diluted	$	0.24	$	(0.05)	$	0.51	$	0.63

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ORGANIZATION (Details) ft² in Millions	9 Months Ended
	Sep. 30, 2021 ft² property
Real Estate Properties [Line Items]
Area of real estate property (in sq ft) | ft²	16.4
Wholly owned properties | Shopping Center
Real Estate Properties [Line Items]
Number of real estate properties	68
Wholly owned properties | Mall
Real Estate Properties [Line Items]
Number of real estate properties	5
Wholly owned properties | Warehouse Park
Real Estate Properties [Line Items]
Number of real estate properties	2
Operating Partnership | Parent | Vornado Realty L.P.
Real Estate Properties [Line Items]
Noncontrolling interest percentage	96.00%
Walnut Creek (Mt. Diablo), CA
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity Method Investment, Ownership Percentage	95.00%
Sunrise Mall Massapequa, NY
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity Method Investment, Ownership Percentage	82.50%

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BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($) entity segment	Dec. 31, 2020 USD ($)
Variable Interest Entity [Line Items]
Number of reportable segments | segment	1
Number Of Variable Interest Entities | entity	2
Assets	$ 2,881,821	$ 2,939,560
Liabilities	1,866,766	1,943,667
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Assets	64,600	43,600
Liabilities	$ 45,100	$ 31,500

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ACQUISITIONS AND DISPOSITIONS - Summary of Acquisition Activity (Details) $ in Thousands				9 Months Ended
	Aug. 19, 2021 USD ($) ft²	Aug. 10, 2021 USD ($) ft²	Feb. 12, 2020 USD ($) ft²	Sep. 30, 2021 USD ($) ft²	Sep. 30, 2020 USD ($)
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²				16,400,000
Transaction costs				$ 600	$ 2,500
601 Murray Road And 151 Ridgedale Avenue
Business Acquisition [Line Items]
Purchase Price(1)				$ 56,071
601 Murray Road
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²		88,000
Purchase Price(1)		$ 18,312
151 Ridgedale Avenue
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²	187,000
Purchase Price(1)	$ 37,759
Kingswood Center And Kingswood Crossing
Business Acquisition [Line Items]
Purchase Price(1)					$ 167,289
Kingswood Center
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²			130,000
Purchase Price(1)			$ 90,212
Kingswood Crossing
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²			110,000
Purchase Price(1)			$ 77,077

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ACQUISITIONS AND DISPOSITIONS (Details) $ in Thousands		1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 12, 2020 USD ($) ft²	Aug. 31, 2021 ft² warehouse	Sep. 30, 2021 USD ($) ft²	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) ft²	Sep. 30, 2021 USD ($) ft² property	Sep. 30, 2021 USD ($) ft² propertyParcel	Sep. 30, 2020 USD ($) property
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²			16,400,000		16,400,000	16,400,000	16,400,000
Purchase price			$ 56,071	$ 167,289	$ 56,071	$ 56,071	$ 56,071	$ 167,289
Gain on sale of real estate			$ 6,926	0	18,648			$ 39,775
Disposal Group, Disposed of by Sale, Not Discontinued Operations
Business Acquisition [Line Items]
Number of disposed properties						3	1	3
Aggregate sale price of disposed properties					34,900			$ 58,100
Gain on sale of real estate					$ (18,600)			(39,800)
Kingswood Center And Kingswood Crossing
Business Acquisition [Line Items]
Purchase price of real estate property acquired								167,289
Kingswood Center
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²	130,000
Purchase price of real estate property acquired	$ 90,212
Purchase price				90,212				90,212
Kingswood Center | Mortgages
Business Acquisition [Line Items]
Mortgage loan related to property sales	$ 65,500
Kingswood Crossing
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²	110,000
Purchase price of real estate property acquired	$ 77,077
Purchase price				$ 77,077				$ 77,077
Reverse Section 1031 like-kind exchange, term								180 days
601 Murray Road And 151 Ridgedale Avenue
Business Acquisition [Line Items]
Number of acquisitions completed by the Company | warehouse		2
Warehouse Park, East Hanover, NJ
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²		943,000

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ACQUISITIONS AND DISPOSITIONS - Aggregate Purchase Price Allocations (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition [Line Items]
Land	$ 5,065	$ 23,840
Buildings and improvements	50,242	140,925
Identified intangible assets	1,722	14,031
Identified intangible liabilities	(958)	(4,534)
Debt premium	0	(6,973)
Total Purchase Price	$ 56,071	$ 167,289
Weighted average useful life	7 years 7 months 6 days	8 years 1 month 6 days
Weighted average related liabilities	1 year 4 months 24 days	9 years 1 month 6 days
601 Murray Road
Business Acquisition [Line Items]
Land	$ 2,075
Buildings and improvements	14,733
Identified intangible assets	1,722
Identified intangible liabilities	(218)
Debt premium	0
Total Purchase Price	18,312
151 Ridgedale Avenue
Business Acquisition [Line Items]
Land	2,990
Buildings and improvements	35,509
Identified intangible assets	0
Identified intangible liabilities	(740)
Debt premium	0
Total Purchase Price	$ 37,759
Kingswood Center
Business Acquisition [Line Items]
Land		$ 15,690
Buildings and improvements		76,766
Identified intangible assets		9,263
Identified intangible liabilities		(4,534)
Debt premium		(6,973)
Total Purchase Price		90,212
Kingswood Crossing
Business Acquisition [Line Items]
Land		8,150
Buildings and improvements		64,159
Identified intangible assets		4,768
Identified intangible liabilities		0
Debt premium		0
Total Purchase Price		$ 77,077

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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Identified intangible assets, net of accumulated amortization	$ 50,719		$ 50,719		$ 56,184
Identified intangible liabilities, net of accumulated amortization	128,479		128,479		$ 148,183
Amortization of acquired below-market leases, net of above-market leases	15,000	$ 2,300	19,800	$ 6,800
Amortization expense of intangible assets	2,200	$ 2,100	6,100	$ 6,300
Below-market leases
Finite-Lived Intangible Assets [Line Items]
Accelerated depreciation	(12,500)		$ 33,500
In-Place Lease
Finite-Lived Intangible Assets [Line Items]
Accelerated depreciation	$ 400

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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Schedule of Estimated Annual Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired below-market leases, net of above-market leases	$ 15,000	$ 2,300	$ 19,800	$ 6,800
Below-Market Operating Lease Amortization
2021	35,787		35,787
2022	7,223		7,223
2023	7,178		7,178
2024	6,942		6,942
2025	6,761		6,761
2026	6,383		6,383
In-Place Leases
Amortization of Intangible Assets	2,200	$ 2,100	6,100	$ 6,300
Above-Market
Above-Market Operating Lease Amortization
2021	(284)		(284)
2022	803		803
2023	(695)		(695)
2024	(631)		(631)
2025	(452)		(452)
2026	(434)		(434)
In-Place Leases
2021	(284)		(284)
2023	(695)		(695)
2022	803		803
2024	(631)		(631)
2025	(452)		(452)
2026	(434)		(434)
In-Place Lease
Above-Market Operating Lease Amortization
2021	(1,886)		(1,886)
2022	6,198		6,198
2023	(5,057)		(5,057)
2024	(4,570)		(4,570)
2025	(3,922)		(3,922)
2026	(3,609)		(3,609)
In-Place Leases
2021	(1,886)		(1,886)
2023	(5,057)		(5,057)
2022	6,198		6,198
2024	(4,570)		(4,570)
2025	(3,922)		(3,922)
2026	$ (3,609)		$ (3,609)

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MORTGAGES PAYABLE - Summary of Mortgages Payable (Details) - Mortgages - First Mortgage - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total mortgages payable		$ 1,582,325	$ 1,597,397
Unamortized debt issuance costs		(8,623)	(9,865)
Total mortgages payable, net		1,573,702	1,587,532
Variable rate
Debt Instrument [Line Items]
Total mortgages payable		$ 162,337	169,371
Variable rate | The Plaza at Cherry Hill
Debt Instrument [Line Items]
Interest rate		1.69%
Total mortgages payable		$ 28,541	28,930
Variable rate | The Plaza at Cherry Hill | LIBOR
Debt Instrument [Line Items]
Interest rate spread on variable rate	160.00%	160.00%
Variable rate | Westfield - One Lincoln Plaza
Debt Instrument [Line Items]
Interest rate		1.69%
Total mortgages payable		$ 0	4,730
Variable rate | Westfield - One Lincoln Plaza | LIBOR
Debt Instrument [Line Items]
Interest rate spread on variable rate	160.00%	160.00%
Variable rate | The Plaza at Woodbridge
Debt Instrument [Line Items]
Interest rate		1.69%
Total mortgages payable		$ 54,595	55,340
Variable rate | The Plaza at Woodbridge | LIBOR
Debt Instrument [Line Items]
Interest rate spread on variable rate	160.00%	160.00%
Variable rate | Hudson Commons
Debt Instrument [Line Items]
Interest rate		1.99%
Total mortgages payable		$ 28,172	28,586
Variable rate | Hudson Commons | LIBOR
Debt Instrument [Line Items]
Interest rate spread on variable rate	190.00%	190.00%
Variable rate | Watchung, NJ
Debt Instrument [Line Items]
Interest rate		1.99%
Total mortgages payable		$ 26,226	26,613
Variable rate | Watchung, NJ | LIBOR
Debt Instrument [Line Items]
Interest rate spread on variable rate	190.00%	190.00%
Variable rate | Bronx (1750-1780 Gun Hill Road), NY
Debt Instrument [Line Items]
Interest rate		1.99%
Total mortgages payable		$ 24,803	25,172
Variable rate | Bronx (1750-1780 Gun Hill Road), NY | LIBOR
Debt Instrument [Line Items]
Interest rate spread on variable rate	190.00%	190.00%
Fixed rate
Debt Instrument [Line Items]
Total mortgages payable		$ 1,419,988	1,428,026
Fixed rate | Bergen Town Center - West, Paramus
Debt Instrument [Line Items]
Interest rate		3.56%
Total mortgages payable		$ 300,000	300,000
Fixed rate | Bronx (Shops at Bruckner)
Debt Instrument [Line Items]
Interest rate		3.90%
Total mortgages payable		$ 9,864	10,351
Fixed rate | Jersey City (Hudson Mall)
Debt Instrument [Line Items]
Interest rate		5.07%
Total mortgages payable		$ 22,345	22,904
Fixed rate | Yonkers Gateway Center
Debt Instrument [Line Items]
Interest rate		4.16%
Total mortgages payable		$ 27,207	28,482
Fixed rate | Brick
Debt Instrument [Line Items]
Interest rate		3.87%
Total mortgages payable		$ 49,778	50,000
Fixed rate | North Plainfield
Debt Instrument [Line Items]
Interest rate		3.99%
Total mortgages payable		$ 25,100	25,100
Fixed rate | Las Catalinas
Debt Instrument [Line Items]
Interest rate		4.43%
Total mortgages payable		$ 124,897	127,669
Fixed rate | Middletown
Debt Instrument [Line Items]
Interest rate		3.78%
Total mortgages payable		$ 31,400	31,400
Fixed rate | Rockaway
Debt Instrument [Line Items]
Interest rate		3.78%
Total mortgages payable		$ 27,800	27,800
Fixed rate | East Hanover (200 - 240 Route 10 West)
Debt Instrument [Line Items]
Interest rate		4.03%
Total mortgages payable		$ 63,000	63,000
Fixed rate | North Bergen (Tonnelle Ave)
Debt Instrument [Line Items]
Interest rate		4.18%
Total mortgages payable		$ 100,000	100,000
Fixed rate | Manchester
Debt Instrument [Line Items]
Interest rate		4.32%
Total mortgages payable		$ 12,500	12,500
Fixed rate | Millburn
Debt Instrument [Line Items]
Interest rate		3.97%
Total mortgages payable		$ 23,055	23,381
Fixed rate | Totowa
Debt Instrument [Line Items]
Interest rate		4.33%
Total mortgages payable		$ 50,800	50,800
Fixed rate | Woodbridge (Woodbridge Commons)
Debt Instrument [Line Items]
Interest rate		4.36%
Total mortgages payable		$ 22,100	22,100
Fixed rate | East Brunswick
Debt Instrument [Line Items]
Interest rate		4.38%
Total mortgages payable		$ 63,000	63,000
Fixed rate | East Rutherford
Debt Instrument [Line Items]
Interest rate		4.49%
Total mortgages payable		$ 23,000	23,000
Fixed rate | Brooklyn (Kingswood Center)
Debt Instrument [Line Items]
Interest rate		5.07%
Total mortgages payable		$ 71,035	71,696
Fixed rate | Hackensack
Debt Instrument [Line Items]
Interest rate		4.36%
Total mortgages payable		$ 66,400	66,400
Fixed rate | Marlton
Debt Instrument [Line Items]
Interest rate		3.86%
Total mortgages payable		$ 37,400	37,400
Fixed rate | East Hanover Warehouses
Debt Instrument [Line Items]
Interest rate		4.09%
Total mortgages payable		$ 40,700	40,700
Fixed rate | Union (2445 Springfield Ave)
Debt Instrument [Line Items]
Interest rate		4.01%
Total mortgages payable		$ 45,600	45,600
Fixed rate | Freeport (Freeport Commons)
Debt Instrument [Line Items]
Interest rate		4.07%
Total mortgages payable		$ 43,100	43,100
Fixed rate | Montehiedra | Senior Loan
Debt Instrument [Line Items]
Interest rate		5.00%
Total mortgages payable		$ 79,831	81,141
Fixed rate | Montclair
Debt Instrument [Line Items]
Interest rate		3.15%
Total mortgages payable		$ 7,250	7,250
Fixed rate | Garfield
Debt Instrument [Line Items]
Interest rate		4.14%
Total mortgages payable		$ 40,300	40,300
Fixed rate | Mt Kisco
Debt Instrument [Line Items]
Interest rate		6.40%
Total mortgages payable		$ 12,526	$ 12,952

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MORTGAGES PAYABLE - Additional Information (Details)			9 Months Ended
	Jun. 29, 2019	Mar. 07, 2017 USD ($) extension_option	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)	Apr. 30, 2020 USD ($)	Jan. 15, 2015 USD ($)
Debt Instrument [Line Items]
Net carrying amount of real estate collateralizing indebtedness			$ 1,300,000,000
Debt issuance costs, net			2,512,000	$ 3,347,000
Property Lease Guarantee
Debt Instrument [Line Items]
Conditional corporate guarantee			12,500,000
Guarantor Obligations, remaining amount of potential guarantee			10,300,000
Four-Year Revolving Credit Agreement January 2015 | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term line of credit			0	0
Four-Year Revolving Credit Agreement January 2015 | Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Facility fee	30.00%
Four-Year Revolving Credit Agreement January 2015 | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Facility fee	15.00%
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 600,000,000				$ 500,000,000
Increase in credit facility		$ 100,000,000
Number of extension options | extension_option		2
Term of each extension option		6 months
Gross debt issuance costs			$ 2,500,000	$ 3,300,000
Line of Credit | Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Financial covenants, maximum leverage ratio	0.60
Line of Credit | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Financial covenants, minimum fixed charge coverage ratio	1.5
Line of Credit | Four-Year Revolving Credit Agreement January 2015 | Revolving Credit Facility | LIBOR | Maximum
Debt Instrument [Line Items]
Interest rate spread on variable rate	1.50%
Line of Credit | Four-Year Revolving Credit Agreement January 2015 | Revolving Credit Facility | LIBOR | Minimum
Debt Instrument [Line Items]
Interest rate spread on variable rate	1.05%
Mortgages | First Mortgage | Las Catalinas | Fixed rate
Debt Instrument [Line Items]
Debt instrument, face amount					$ 129,000,000
Borrowing rate			4.43%
Annual increase in interest rate			50.00%
Discounted value			$ 72,500,000
Accrued interest			5,400,000
Debt issuance costs, net			$ 1,200,000
Mortgages | First Mortgage | Las Catalinas | Fixed rate | Maximum
Debt Instrument [Line Items]
Borrowing rate			4.43%	4.43%
Mortgages | First Mortgage | Las Catalinas | Fixed rate | Minimum
Debt Instrument [Line Items]
Borrowing rate			3.00%

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MORTGAGES PAYABLE - Schedule of Maturities (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Debt Disclosure [Abstract]
Remainder of 2018	$ 4,114
2022	98,915
2023	349,814
2024	163,720
2025	40,946
2026	230,694
Thereafter	$ 694,122

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INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Income Tax Contingency [Line Items]
Deferred tax assets, net	$ (38,376,000)		$ (38,376,000)		$ (39,677,000)
Income tax (expense) benefit	(704,000)	$ (459,000)	(905,000)	$ 13,103,000
State and Local Jurisdiction
Income Tax Contingency [Line Items]
Income tax (expense) benefit			$ 500,000		$ (4,500,000)
Puerto Rico
Income Tax Contingency [Line Items]
Branch profit tax			10.00%
Puerto Rico | Montehiedra
Income Tax Contingency [Line Items]
Deferred tax assets, net		(13,100,000)		$ (13,100,000)
Puerto Rico | Commonwealth of Puerto Rico
Income Tax Contingency [Line Items]
Non-resident withholding tax percentage				29.00%
Income tax (expense) benefit	(700,000)	1,300,000	$ (1,400,000)	$ 14,800,000
Puerto Rico | State and Local Jurisdiction
Income Tax Contingency [Line Items]
Income tax (expense) benefit	$ 0	$ 0	$ 500,000
Puerto Rico | Minimum
Income Tax Contingency [Line Items]
State and local income taxes			18.50%
Puerto Rico | Maximum
Income Tax Contingency [Line Items]
State and local income taxes			37.50%

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LEASES - Components of Rental Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Fixed lease revenue	$ (80,961)	$ (53,396)	$ (216,200)	$ (174,141)
Variable lease revenue	25,024	21,963	78,057	67,483
Total rental revenue	105,985	$ 75,359	294,257	$ 241,624
Below-market leases
Finite-Lived Intangible Assets [Line Items]
Fixed lease revenue	$ (12,500)		$ (12,500)

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FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Casualty and impairment loss	$ 0	$ 0	$ 0	$ 0
Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	0		0		$ 0
Financial liabilities measured at fair value	0		0		0
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	0		0		0
Financial liabilities measured at fair value	$ 0		$ 0		$ 0

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FAIR VALUE MEASUREMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 268,952	$ 384,572	$ 646,432	$ 432,954
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	268,952	384,572
Carrying Amount | Mortgages
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable	1,582,325	1,597,397
Fair Value | Mortgages
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized debt issuance costs	(8,600)	(9,900)
Fair Value | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	268,952	384,572
Fair Value | Level 2 | Mortgages
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable	$ 1,588,270	$ 1,611,868

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COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Other Commitments [Line Items]
Real estate redevelopment in process	$ 152,400,000
Estimated cost to complete development and redevelopment projects	91,100,000
Accrual for lease termination	20,000,000
Insurance coverage, pollution insurance, limit per occurence	50,000,000
Deferred lease expense	1,700,000	$ 1,800,000
Kmart and Sears
Other Commitments [Line Items]
Construction in progress	$ 20,000,000

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PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other assets	$ 9,463	$ 5,953
Deferred Tax Assets, Net	38,376	39,677
Real estate held for sale	0	7,056
Finance lease right-of-use asset	2,724	2,724
Prepaid expenses:
Real estate taxes	7,560	8,093
Insurance	3,298	1,583
Licenses/fees	1,632	1,878
Total Prepaid expenses and other assets	65,565	70,311
Debt issuance costs, net	$ 2,512	$ 3,347

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ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Dividend payable	$ 0	$ 55,905
Deferred tenant revenue	23,958	26,594
Accrued interest payable	9,437	11,095
Accrued capital expenditures and leasing costs	33,115	7,797
Security deposits	6,720	5,884
Finance lease liability	3,001	2,993
Accrued payroll expenses	6,811	5,797
Other liabilities and accrued expenses	11,472	16,915
Total accounts payable, accrued expenses and other liabilities	94,514	$ 132,980
Leases, Acquired-in-Place and Below-Market
Finite-Lived Intangible Assets [Line Items]
Accrued capital expenditures and leasing costs	$ 20,000

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INTEREST AND DEBT EXPENSE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Other Income and Expenses [Abstract]
Interest expense	$ 13,893	$ 17,433	$ 41,946	$ 51,771
Amortization of deferred financing costs	745	703	2,247	2,113
Total Interest and debt expense	$ 14,638	$ 18,136	$ 44,193	$ 53,884

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EQUITY AND NONCONTROLLING INTEREST (Details) - USD ($)	3 Months Ended		4 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	May 05, 2021	Dec. 31, 2020	Dec. 31, 2019
Noncontrolling Interest [Line Items]
Common stock, par value (in dollars per share)	$ 0.01			$ 0.01
Authorized amount		$ 200,000,000			$ 200,000,000
Repurchase of common shares (in shares)			5,900,000	0	5,873,923
Treasury stock acquired, average cost per share (in dollars per share)			$ 9.22
Repurchase of common shares			$ 54,100,000		$ 54,141,000
Distributions to redeemable NCI (in dollars per unit)	$ 0.15				$ 0.22
Common stock, shares, outstanding (in shares)	117,137,788			117,137,788				117,014,317
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,015,055,000	1,023,884,000	$ 1,027,110,000	$ 1,015,055,000	$ 1,023,884,000	$ 998,990,000		$ 995,893,000	$ 1,014,776,000
Net income (loss) attributable to common shareholders/unitholders	27,766,000	(5,605,000)		60,233,000	74,630,000
Net loss attributable to noncontrolling interests	2,339,000	(225,000)		3,569,000	3,373,000
Reallocation of noncontrolling interests	6,302,000	0		5,462,000	(8,628,000)
Common shares issued	1,000			185,000	205,000
Dividends to common shareholders	(17,557,000)			(52,610,000)	(26,647,000)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(711,000)			(2,152,000)	(1,314,000)
Contributions from noncontrolling interests	1,418,000			1,929,000
Share-based compensation expense	2,809,000	$ 2,604,000		8,218,000	14,463,000
Share-based awards retained for taxes				(210,000)	(1,461,000)
Equity redemption of OP units	$ (6,302,000)			$ (5,462,000)	8,628,000
At-The-Market Program
Noncontrolling Interest [Line Items]
Common stock, par value (in dollars per share)							$ 0.01
Authorized amount							$ 250,000,000
OP Units
Noncontrolling Interest [Line Items]
Conversion to stock, conversion rate				1
LTIP Units
Noncontrolling Interest [Line Items]
Award vesting period				2 years
Conversion to stock, conversion rate				1
Common Shares
Noncontrolling Interest [Line Items]
Repurchase of common shares					$ 59,000
Common shares issued during period (in shares)	451			36,533	53,193
Common stock, shares, outstanding (in shares)	117,137,788	116,701,311	116,701,311	117,137,788	116,701,311	117,137,337		117,014,317	121,370,125
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,170,000	$ 1,166,000	$ 1,166,000	$ 1,170,000	$ 1,166,000	$ 1,170,000		$ 1,169,000	$ 1,213,000
Common shares issued				1,000	1,000
Equity redemption of OP units					11,000
Additional Paid-In Capital
Noncontrolling Interest [Line Items]
Repurchase of common shares					54,082,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	997,085,000	987,436,000	984,933,000	997,085,000	987,436,000	990,255,000		989,863,000	1,019,149,000
Reallocation of noncontrolling interests	6,302,000	1,866,000		4,614,000	9,724,000
Common shares issued	21,000			308,000	234,000
Share-based compensation expense	507,000	637,000		1,670,000	5,255,000
Share-based awards retained for taxes				(210,000)	(1,461,000)
Equity redemption of OP units				840,000	8,617,000
Retained Earnings [Member]
Noncontrolling Interest [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(31,968,000)	(4,593,000)	1,012,000	(31,968,000)	(4,593,000)	(42,157,000)		(39,467,000)	(52,546,000)
Net income (loss) attributable to common shareholders/unitholders	27,766,000	(5,605,000)		60,233,000	74,630,000
Common shares issued	(20,000)			(124,000)	(30,000)
Dividends to common shareholders	$ (17,557,000)			$ (52,610,000)	$ (26,647,000)
Common Stock, Dividends, Per Share, Declared	$ 0.15			$ 0.45	$ 0.22
Operating Partnership
Noncontrolling Interest [Line Items]
Distributions to redeemable NCI (in dollars per unit)	$ 0.15			$ 0.45	$ 0.22
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 40,006,000	39,451,000	39,575,000	$ 40,006,000	$ 39,451,000	43,568,000		38,456,000	46,536,000
Net loss attributable to noncontrolling interests	1,149,000	(225,000)		2,608,000	3,373,000
Reallocation of noncontrolling interests	0	(1,866,000)		848,000	(18,352,000)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(711,000)			(2,152,000)	(1,314,000)
Share-based compensation expense	2,302,000	1,967,000		6,548,000	9,208,000
Equity redemption of OP units	(6,302,000)			(6,302,000)
Consolidated Subsidiaries
Noncontrolling Interest [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	8,762,000	$ 424,000	$ 424,000	8,762,000	$ 424,000	$ 6,154,000		$ 5,872,000	$ 424,000
Net loss attributable to noncontrolling interests	1,190,000			961,000
Contributions from noncontrolling interests	$ 1,418,000			$ 1,929,000
Operating Partnership | OP Units
Noncontrolling Interest [Line Items]
Noncontrolling interest percentage	4.00%			4.20%
Walnut Creek (Mt. Diablo), CA | Noncontrolling Interest
Noncontrolling Interest [Line Items]
Noncontrolling interest percentage				5.00%
Sunrise Mall Massapequa, NY | Noncontrolling Interest | Sunrise Mall Massapequa, NY
Noncontrolling Interest [Line Items]
Noncontrolling interest percentage	17.50%			17.50%
Vornado Realty L.P. | Operating Partnership | Parent
Noncontrolling Interest [Line Items]
Noncontrolling interest percentage				96.00%

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SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - General and Administrative Expense - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	$ 2,809	$ 2,604	$ 8,218	$ 14,463
Restricted share expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	98	199	365	653
Stock option expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	384	432	1,181	4,559
LTIP Units
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	1,326	1,023	3,659	6,323
Performance-based LTI expense(2)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	976	944	2,889	2,886
Deferred share unit (“DSU”) expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	$ 25	$ 6	$ 124	$ 42

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SHARE-BASED COMPENSATION - Additional Information (Details)			9 Months Ended
	Feb. 10, 2021 company shares	Feb. 20, 2020 USD ($)	Sep. 30, 2021 shares	Mar. 10, 2021 USD ($)
Twenty Twenty-One Long-term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards percentage of absolute component of TSR equal to 18%	18.00%
Equity awards percentage of absolute component of TSR equal to 27%	27.00%
Equity awards percentage of absolute component of TSR equal to 36%	36.00%
Number of REIT peer groups | company	15
Equity awards percentage of relative component of TSR equal to 35 percentile of peer group	3500.00%
Equity awards percentage of relative component of TSR equal to 55 percentile of peer group	5500.00%
Equity awards percentage of relative component of TSR equal to 75 percentile of peer group	7500.00%
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options vested (in shares)			333,333
LTIP Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number or equity awards granted (in shares)			325,625
Number of awards vested (in shares)			151,398
Number of shares forfeited (in shares)			2,886
LTIP Units | Long-Term Incentive Plan 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement period of equity awards		3 years
Time-based LTIP Shares | Long-Term Incentive Plan 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted percentage of equity awards | $		$ 0.3333
Time-based LTIP Shares | Twenty Twenty-One Long-term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number or equity awards granted (in shares)	273,615
Grant date fair value of equity awards | $				$ 3,900,000
Performance-based LTIP Shares | Long-Term Incentive Plan 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted percentage of equity awards | $		0.6666
Performance-based LTIP Shares | Twenty Twenty-One Long-term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number or equity awards granted (in shares)	398,977
Grant date fair value of equity awards | $				$ 3,900,000
Time-based and Performance-based LTIP Shares | Long-Term Incentive Plan 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value of equity awards | $		$ 7,800,000
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number or equity awards granted (in shares)			17,933
Number of awards vested (in shares)			34,532
Number of shares forfeited (in shares)			5,945
LTIP Units | Twenty Twenty-One Long-term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards earned percentage based on absolute TSR component of equal to 18%	40.00%
Equity awards earned percentage based on absolute TSR component of equal to 27%	100.00%
Equity awards earned percentage based on absolute TSR component of equal to 36%	165.00%
Equity awards earned percentage based on relative TSR component of 35 percentile of peer group	40.00%
Equity awards earned percentage based on relative TSR component of 55 percentile of peer group	100.00%
Equity awards earned percentage based on relative TSR component of 75 percentile of peer group	165.00%

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EARNINGS PER SHARE AND UNIT (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net income (loss) attributable to common shareholders/unitholders	$ 27,766	$ (5,605)	$ 60,233	$ 74,630
Less: Earnings allocated to unvested participating securities	(12)	4	(29)	(50)
Net income (loss) available for common shareholders - basic	27,754	(5,601)	60,204	74,580
OP and LTIP units	0	0	2,608	0
Net income available for common shareholders - dilutive	$ 27,754	$ (5,601)	$ 62,812	$ 74,580
Denominator:
Weighted average common shares outstanding - basic (in shares)	117,087	116,625	117,009	118,033
Effect of dilutive securities:
Assumed conversion of OP and LTIP units (in shares)	0	0	5,147	0
Weighted average common shares outstanding - diluted (in shares)	117,137	116,625	122,212	118,111
Earnings per share available to common shareholders:
Earnings per common share - Basic (in dollars per share)	$ 0.24	$ (0.05)	$ 0.51	$ 0.63
Earnings per common share - Diluted (in dollars per share)	$ 0.24	$ (0.05)	$ 0.51	$ 0.63
Urban Edge Properties LP
Numerator:
Net income (loss) attributable to common shareholders/unitholders	$ 28,915	$ (5,830)	$ 62,841	$ 78,003
Less: Earnings allocated to unvested participating securities	(12)	4	(29)	(50)
Net income (loss) available for common shareholders - basic	$ 28,903	$ (5,826)	$ 62,812	$ 77,953
Denominator:
Weighted average common shares outstanding - basic (in shares)	120,903	120,618	120,839	122,332
Effect of dilutive securities:
Stock options using treasure stock method and restricted stock awards (in shares)	50	0	56	78
Assumed conversion of OP and LTIP units (in shares)	1,034	0	1,317	764
Weighted average common shares outstanding - diluted (in shares)	121,987	120,618	122,212	123,174
Earnings per share available to common shareholders:
Earnings per common share - Basic (in dollars per share)	$ 0.24	$ (0.05)	$ 0.52	$ 0.64
Earnings per common share - Diluted (in dollars per share)	$ 0.24	$ (0.05)	$ 0.51	$ 0.63
Restricted share expense
Effect of dilutive securities:
Stock options using treasure stock method and restricted stock awards (in shares)	50	0	56	78

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Label	Element	Value
Gain (Loss) on Extinguishment of Debt	us-gaap_GainsLossesOnExtinguishmentOfDebt	$ 0
Gain (Loss) on Extinguishment of Debt	us-gaap_GainsLossesOnExtinguishmentOfDebt	0
Subsidiaries [Member]
Gain (Loss) on Extinguishment of Debt	us-gaap_GainsLossesOnExtinguishmentOfDebt	$ 0