DocumentExhibit 99.2
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| URBAN EDGE PROPERTIES |
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| SUPPLEMENTAL DISCLOSURE |
| PACKAGE |
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| June 30, 2022 |
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| Urban Edge Properties |
| 888 7th Avenue, New York, NY 10019 |
| NY Office: 212-956-2556 |
| www.uedge.com |
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| URBAN EDGE PROPERTIES |
| SUPPLEMENTAL DISCLOSURE |
| June 30, 2022 |
| (unaudited) |
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| TABLE OF CONTENTS |
| Page |
| Press Release | |
Second Quarter 2022 Earnings Press Release | 1 |
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| Overview | |
| Summary Financial Results and Ratios | 10 |
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| Consolidated Financial Statements | |
| Consolidated Balance Sheets | 11 |
| Consolidated Statements of Income | 12 |
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| Non-GAAP Financial Measures and Supplemental Data | |
| Supplemental Schedule of Net Operating Income | 13 |
| Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre) | 14 |
| Funds from Operations | 15 |
| Market Capitalization, Debt Ratios and Liquidity | 16 |
| Additional Disclosures | 17 |
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| Leasing Data | |
| Tenant Concentration - Top Twenty-Five Tenants | 19 |
| Portfolio Composition by Tenant Category | 20 |
| Leasing Activity | 21 |
| Leases Executed but Not Yet Rent Commenced | 22 |
| Retail Portfolio Lease Expiration Schedules | 23 |
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| Property Data | |
| Property Status Report | 25 |
| Property Acquisitions and Dispositions | 28 |
| Development, Redevelopment and Anchor Repositioning Projects | 29 |
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| Debt Schedules | |
| Debt Summary | 31 |
| Mortgage Debt Summary | 32 |
| Debt Maturity Schedule | 33 |
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| Urban Edge Properties | For additional information: |
| 888 Seventh Avenue | Mark Langer, EVP and |
| New York, NY 10019 | Chief Financial Officer |
| 212-956-2556 | |
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| FOR IMMEDIATE RELEASE: | |
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Urban Edge Properties Reports Second Quarter 2022 Results |
NEW YORK, NY, August 3, 2022 - Urban Edge Properties (NYSE: UE) (the "Company") today announced its results for the quarter ended June 30, 2022.
“We achieved record levels of leasing activity in the quarter with the highest volume in over six years,” said Jeff Olson, Chairman and CEO. “We are building on our leasing momentum by attracting high-quality tenants that best meet the needs of the surrounding communities.”
Financial Results(1)(2)
•Generated net income attributable to common shareholders of $11.6 million, or $0.10 per diluted share, for the second quarter of 2022 compared to $12.5 million, or $0.11 per diluted share, for the second quarter of 2021 and $21.1 million, or $0.18 per diluted share, for the six months ended June 30, 2022 compared to $32.5 million, or $0.28 per diluted share, for the six months ended June 30, 2021.
•Generated Funds from Operations ("FFO") applicable to diluted common shareholders of $36.2 million, or $0.30 per share, for the quarter compared to $35.4 million, or $0.29 per share, for the second quarter of 2021 and $70.4 million, or $0.58 per share, for the six months ended June 30, 2022 compared to $67.2 million, or $0.55 per share, for the six months ended June 30, 2021.
•Generated FFO as Adjusted of $36.8 million, or $0.30 per share, for the quarter compared to $34.5 million, or $0.28 per share, for the second quarter of 2021 and $71.4 million, or $0.58 per share, for the six months ended June 30, 2022 compared to $66.8 million, or $0.55 per share for the six months ended June 30, 2021.
Operating Results(1)(3)
•Increased same-property Net Operating Income ("NOI") by 1.2% compared to the second quarter of 2021. The second quarter of 2021 benefited from elevated receipts related to amounts previously deemed uncollectible. Excluding these amounts in both periods, same-property NOI growth would have been 6.0%.
•Same-property NOI, including properties in redevelopment, was flat compared to the second quarter of 2021. The second quarter of 2021 benefited from elevated receipts related to amounts previously deemed uncollectible. Excluding these amounts in both periods, same-property NOI growth, including properties in redevelopment, would have been 4.2%.
•Reported same-property portfolio leased occupancy of 94.9%, an increase of 100 basis points compared to March 31, 2022 and an increase of 270 basis points compared to June 30, 2021.
•Executed record leasing, including 37 new leases, renewals and options totaling 716,000 square feet ("sf") during the quarter, which generated average rent spreads of 9.6% on a cash basis and 19.0% on a straight-line basis.
•Issued our 2021 Environmental, Social and Governance report, highlighting significant progress advancing LED lighting, waste recycling, diversity, equity and inclusion, and charitable programs among other goals.
Balance Sheet and Liquidity(1)(4)(5)
Balance sheet highlights as of June 30, 2022 include:
•Total liquidity of approximately $771 million, comprised of $171 million of cash on hand and $600 million available under our revolving credit agreement.
•Mortgages payable of $1.7 billion with a weighted average term to maturity of 4.6 years.
•Total market capitalization of approximately $3.6 billion, comprised of 122.6 million fully-diluted common shares valued at $1.9 billion and $1.7 billion of debt.
•Net debt to total market capitalization of 43%.
Leasing, Development and Redevelopment
The Company executed 290,000 sf of new leases during the second quarter. New anchor leases include a 63,000 sf Ralph’s Food Warehouse and Urology Hub, an 18,000 sf medical office, to open in a portion of the prior Kmart space at The Outlets at Montehiedra, Nemours Children's Health at Broomall, and a 62,000 sf kosher grocer, Bingo Wholesale, at Burnside Commons.
The Company commenced $20.7 million of redevelopment projects during the quarter, including the previously mentioned anchor leases, resulting in a total of $205.8 million of active redevelopment projects under way, with estimated remaining costs to complete of $134.9 million. The active redevelopment projects are expected to generate an approximate 10% unleveraged yield.
During the quarter, the Company completed three redevelopment projects aggregating $22.9 million upon rent commencement of AAA Wholesale Group, the industrial conversion of our property in Lodi, NJ, Amazon Fresh in Broomall, PA, and Five Below and Skechers at Tonnelle Commons in North Bergen, NJ.
The Company has signed leases that have not yet rent commenced that are expected to generate $22.9 million of future annual gross rent, representing approximately 10% of current annualized NOI. Approximately $1.4 million of this amount is expected to be recognized during the remainder of 2022.
Acquisition Activity
On June 8, 2022, the Company closed on the acquisition of The Shops at Riverwood, a 78,000 sf grocery-anchored shopping center for a purchase price of $32.9 million. The center, which is located in the greater Boston area, is fully occupied and has an attractive and diverse mix of tenants. The initial in-place unleveraged yield on this transaction is approximately 6% and was partially funded with a 7-year, $21.5 million non-recourse mortgage with a fixed interest rate of 4.25%. This acquisition supports our overall strategy of acquiring high-quality, infill real estate with future growth potential.
Financing Activity
During June 2022, the Company refinanced the mortgage secured by its property Plaza at Woodbridge, located in Woodbridge, NJ, with a new $52.9 million, 5-year mortgage at a rate of 2.26% plus one-month Secured Overnight Financing Rate (“SOFR”). The Company also refinanced the mortgage secured by its property Plaza at Cherry Hill, located in Cherry Hill, NJ, with a new $29 million, 3-year mortgage that bears interest at the Prime Rate plus 50 basis points.
Earnings Conference Call Information
The Company will host an earnings conference call and audio webcast on August 3, 2022 at 8:30am ET. All interested parties can access the earnings call by dialing 1-877-407-9716 (Toll Free) or 1-201-493-6779 (Toll/International) using conference ID 13730150. The call will also be webcast and available in listen-only mode on the investors page of our website: www.uedge.com. A replay will be available at the webcast link on the investors page for one year following the conclusion of the call. A telephonic replay of the call will also be available starting August 3, 2022 at 11:30am ET through August 17, 2022 at 11:59pm ET by dialing 1-844-512-2921 (Toll Free) or 1-412-317-6671 (Toll/International) using conference ID 13730150.
(1) Refer to "Non-GAAP Financial Measures" and "Operating Metrics" for definitions and additional detail.
(2) Refer to page 5 for a reconciliation of net income to FFO and FFO as Adjusted for the quarter ended June 30, 2022.
(3) Refer to page 6 for a reconciliation of net income to NOI and Same-Property NOI for the quarter ended June 30, 2022.
(4) Net debt as of June 30, 2022 is calculated as total consolidated debt of $1.7 billion less total cash and cash equivalents, including restricted cash, of $171 million.
(5) Refer to page 16 for the calculation of market capitalization as of June 30, 2022.
Non-GAAP Financial Measures
The Company uses certain non-GAAP performance measures, in addition to the primary GAAP presentations, as we believe these measures improve the understanding of the Company's operational results. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the investing public, and thus such reported measures are subject to change. The Company's non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results. Additionally, the Company's computation of non-GAAP metrics may not be comparable to similarly titled non-GAAP metrics reported by other REITs or real estate companies that define these metrics differently and, as a result, it is important to understand the manner in which the Company defines and calculates each of its non-GAAP metrics. The following non-GAAP measures are commonly used by the Company and investing public to understand and evaluate our operating results and performance:
•FFO: The Company believes FFO is a useful, supplemental measure of its operating performance that is a recognized metric used extensively by the real estate industry and, in particular real estate investment trusts ("REITs"). FFO, as defined by the National Association of Real Estate Investment Trusts ("Nareit") and the Company, is 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. The Company believes that financial analysts, investors and shareholders are better served by the presentation of comparable period operating results generated from FFO primarily because it excludes the assumption that the value of real estate assets diminishes predictably. 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 as Adjusted: The Company provides disclosure of FFO as Adjusted because it believes it is a useful supplemental measure of its core operating performance that facilitates comparability of historical financial periods. FFO as Adjusted is calculated by making certain adjustments to FFO to account for items the Company does not believe are representative of ongoing core operating results, including non-comparable revenues and expenses. The Company's method of calculating FFO as Adjusted may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
•NOI: The Company uses NOI internally to make investment and capital allocation decisions and to compare the unlevered performance of our properties to our peers. The Company believes 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 Company calculates NOI using net income as defined by GAAP reflecting only those income and expense items that are incurred at the property level, adjusted for non-cash rental income and expense, and income or expenses that we do not believe are representative of ongoing operating results, if any. In addition, the Company uses NOI margin, calculated as NOI divided by total revenue, which the Company believes is useful to investors for similar reasons.
•Same-property NOI: The Company provides disclosure of NOI on a same-property basis, which includes the results of properties that were owned and operated for the entirety of the reporting periods being compared, which total 69 and 68 properties for the three and six months ended June 30, 2022 and 2021, respectively. Information provided on a same-property basis excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area ("GLA") is taken out of service and also excludes properties acquired or sold during the periods being compared. 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. While there is judgment surrounding changes in designations, a property is removed from the same-property pool when it is designated as a redevelopment property because it is undergoing significant renovation or retenanting pursuant to a formal plan that is expected to have a significant impact on its operating income. 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. The Company has also provided disclosure of NOI on a same-property basis adjusted to include redevelopment properties. Same-property NOI may include other adjustments as detailed in the Reconciliation of Net Income to NOI and same-property NOI included in the tables accompanying this press release.
•EBITDAre and Adjusted EBITDAre: EBITDAre and Adjusted EBITDAre are supplemental, non-GAAP measures utilized by us in various financial ratios. The White Paper on EBITDAre, approved by Nareit's Board of Governors in September 2017, defines EBITDAre as net income (computed in accordance with GAAP), adjusted for interest expense, income tax (benefit) expense, depreciation and amortization, losses and gains on the disposition of depreciated property, impairment write-downs of depreciated property and investments in unconsolidated joint ventures, and adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures. EBITDAre and Adjusted EBITDAre are presented to assist investors in the evaluation of REITs, as a measure of the Company's operational performance as they exclude various items that do not relate to or are not indicative of our operating performance and because they approximate key performance measures in our debt covenants. Accordingly, the Company believes that the use of EBITDAre and Adjusted EBITDAre, as opposed to income before income taxes, in various ratios provides meaningful performance measures related to the Company's ability to meet various coverage tests for the stated periods. Adjusted EBITDAre may include other adjustments not indicative of operating results as detailed in the Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre included in the tables accompanying this press release. The Company also presents the ratio of net debt (net of cash) to annualized Adjusted EBITDAre as of June 30, 2022, and net debt (net of cash) to total market capitalization, which it believes is useful to investors as a supplemental measure in evaluating the Company's balance sheet leverage. The presentation of EBITDAre and Adjusted EBITDAre is consistent with EBITDA and Adjusted EBITDA as presented in prior periods.
The Company believes net income is the most directly comparable GAAP financial measure to the non-GAAP performance measures outlined above. Reconciliations of these measures to net income have been provided in the tables accompanying this press release.
Operating Metrics
The Company presents certain operating metrics related to our properties, including occupancy, leasing activity and rental rates. Operating metrics are used by the Company and are useful to investors in facilitating an understanding of the operational performance for our properties.
Occupancy metrics represent the percentage of occupied gross leasable area based on executed leases (including properties in development and redevelopment) and include leases signed, but for which rent has not yet commenced. Same-property portfolio leased occupancy includes properties that have been owned and operated for the entirety of the reporting periods being compared, which total 69 and 68 properties for the three and six months ended June 30, 2022 and 2021, respectively. Occupancy metrics presented for the Company's same-property portfolio excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service and also excludes properties acquired within the past 12 months or properties sold during the periods being compared.
Executed new leases, renewals and exercised options are presented on a same-space basis. Same-space leases represent those leases signed on spaces for which there was a previous lease.
The Company provides disclosure on the portfolio composition by tenant categories which include anchors, shops and industrial/self-storage. Anchors and shops are further broken down by local vs. regional/national tenants. We define anchor tenants as those who have a leased area of >10,000 sf. Local tenants are defined as those with less than five locations. Regional tenants are those with five or more locations in a single region. National tenants are defined as those with five or more locations and operate in two or more regions.
Reconciliation of Net Income to FFO and FFO as Adjusted
The following table reflects the reconciliation of net income to FFO and FFO as Adjusted for the three and six months ended June 30, 2022 and 2021. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of FFO and FFO as Adjusted.
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| Three Months Ended June 30, | | Six Months Ended June 30, |
| (in thousands, except per share amounts) | 2022 | | 2021 | | 2022 | | 2021 |
| Net income | $ | 12,009 | | | $ | 12,981 | | | $ | 21,543 | | | $ | 33,697 | |
| Less net (income) loss attributable to noncontrolling interests in: | | | | | | | |
| Operating partnership | (506) | | | (584) | | | (893) | | | (1,459) | |
| Consolidated subsidiaries | 123 | | | 150 | | | 462 | | | 229 | |
| Net income attributable to common shareholders | 11,626 | | | 12,547 | | | 21,112 | | | 32,467 | |
| Adjustments: | | | | | | | |
| Rental property depreciation and amortization | 24,457 | | | 22,272 | | | 48,755 | | | 44,958 | |
| Gain on sale of real estate | (353) | | | — | | | (353) | | | (11,722) | |
| Limited partnership interests in operating partnership | 506 | | | 584 | | | 893 | | | 1,459 | |
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| FFO Applicable to diluted common shareholders | 36,236 | | | 35,403 | | | 70,407 | | | 67,162 | |
FFO per diluted common share(1) | 0.30 | | | 0.29 | | | 0.58 | | | 0.55 | |
| Adjustments to FFO: | | | | | | | |
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| Transaction, severance and other expenses (income) | 635 | | | 120 | | | 1,132 | | | (257) | |
| (Reinstatement)/write-off of receivables arising from the straight-lining of rents, net | (46) | | | (239) | | | (133) | | | 634 | |
| Tenant bankruptcy settlement income | — | | | (286) | | | (36) | | | (286) | |
| Tax impact of Puerto Rico transactions | — | | | (490) | | | — | | | (490) | |
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| FFO as Adjusted applicable to diluted common shareholders | $ | 36,825 | | | $ | 34,508 | | | $ | 71,370 | | | $ | 66,763 | |
FFO as Adjusted per diluted common share(1) | $ | 0.30 | | | $ | 0.28 | | | $ | 0.58 | | | $ | 0.55 | |
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Weighted Average diluted common shares(1) | 122,512 | | | 122,485 | | | 122,351 | | | 122,327 | |
(1) Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share for the three months ended June 30, 2022 and 2021 and the six months ended June 30, 2022 are higher than the GAAP weighted average diluted shares as a result of the dilutive impact of LTIP and OP units which may be redeemed for our common shares.
Reconciliation of Net Income to NOI and Same-Property NOI
The following table reflects the reconciliation of net income to NOI, same-property NOI and same-property NOI including properties in redevelopment for the three and six months ended June 30, 2022 and 2021. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of NOI and same-property NOI.
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| Three Months Ended June 30, | | Six Months Ended June 30, |
| (in thousands) | 2022 | | 2021 | | 2022 | | 2021 |
| Net income | $ | 12,009 | | | $ | 12,981 | | | $ | 21,543 | | | $ | 33,697 | |
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| Other (income) expense | (91) | | | 161 | | | (530) | | | (450) | |
| Depreciation and amortization | 24,691 | | | 22,488 | | | 49,218 | | | 45,363 | |
| General and administrative expense | 10,634 | | | 9,484 | | | 21,755 | | | 18,152 | |
| Gain on sale of real estate | (353) | | | — | | | (353) | | | (11,722) | |
| Interest income | (214) | | | (90) | | | (419) | | | (226) | |
| Interest and debt expense | 14,241 | | | 14,728 | | | 28,245 | | | 29,555 | |
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| Income tax expense (benefit) | 711 | | | (34) | | | 1,616 | | | 201 | |
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| Non-cash revenue and expenses | (1,980) | | | (2,482) | | | (4,365) | | | (3,755) | |
| NOI | 59,648 | | | 57,236 | | | 116,710 | | | 110,815 | |
| Adjustments: | | | | | | | |
Non-same property NOI and other(1) | (7,362) | | | (5,987) | | | (14,989) | | | (11,646) | |
| Sunrise Mall net operating loss | 347 | | | 1,028 | | | 1,701 | | | 1,638 | |
| Tenant bankruptcy settlement income and lease termination income | — | | | (286) | | | (110) | | | (762) | |
| Same-property NOI | $ | 52,633 | | | $ | 51,991 | | | $ | 103,312 | | | $ | 100,045 | |
| NOI related to properties being redeveloped | 4,627 | | | 5,262 | | | 8,966 | | | 10,254 | |
| Same-property NOI including properties in redevelopment | $ | 57,260 | | | $ | 57,253 | | | $ | 112,278 | | | $ | 110,299 | |
(1) Non-same property NOI includes NOI related to properties being redeveloped and properties acquired or disposed in the period.
Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre
The following table reflects the reconciliation of net income to EBITDAre and Adjusted EBITDAre for the three and six months ended June 30, 2022 and 2021. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of EBITDAre and Adjusted EBITDAre.
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| Three Months Ended June 30, | | Six Months Ended June 30, |
| (in thousands) | 2022 | | 2021 | | 2022 | | 2021 |
| Net income | $ | 12,009 | | | $ | 12,981 | | | $ | 21,543 | | | $ | 33,697 | |
| Depreciation and amortization | 24,691 | | | 22,488 | | | 49,218 | | | 45,363 | |
| Interest and debt expense | 14,241 | | | 14,728 | | | 28,245 | | | 29,555 | |
| Income tax expense (benefit) | 711 | | | (34) | | | 1,616 | | | 201 | |
| Gain on sale of real estate | (353) | | | — | | | (353) | | | (11,722) | |
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| EBITDAre | 51,299 | | | 50,163 | | | 100,269 | | | 97,094 | |
| Adjustments for Adjusted EBITDAre: | | | | | | | |
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| Transaction, severance and other expenses (income) | 635 | | | 120 | | | 1,132 | | | (257) | |
| (Reinstatement)/write-off of receivables arising from the straight-lining of rents, net | (46) | | | (239) | | | (133) | | | 634 | |
| Tenant bankruptcy settlement income | — | | | (286) | | | (36) | | | (286) | |
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| Adjusted EBITDAre | $ | 51,888 | | | $ | 49,758 | | | $ | 101,232 | | | $ | 97,185 | |
ADDITIONAL INFORMATION
For a copy of the Company’s supplemental disclosure package, please access the "Investors" section of our website at www.uedge.com. Our website also includes other financial information, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments to those reports.
The Company uses, and intends to continue to use, the “Investors” page of its website, which can be found at www.uedge.com as a means of disclosing material nonpublic information and of complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the “Investors” page, in addition to following the Company's press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
ABOUT URBAN EDGE
Urban Edge Properties is a NYSE listed real estate investment trust focused on managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the Washington, D.C. to Boston corridor. Urban Edge owns 76 properties totaling 17.2 million square feet of gross leasable area.
FORWARD-LOOKING STATEMENTS
Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, 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 Press Release. Many of the factors that will determine the outcome of forward-looking statements are beyond our ability to control or predict and include, among others: (i) the economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic and related COVID-19 variants, 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 and the Company’s ability to re-lease its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant; (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, rising inflation, and other factors, including the discontinuation of USD LIBOR, which is currently anticipated to occur in 2023; (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; (xv) the loss of key executives; and (xvi) the accuracy of methodologies and estimates regarding our environmental, social and governance (“ESG”) metrics, goals and targets, tenant willingness and ability to collaborate towards reporting ESG metrics and meeting ESG goals and targets, and the impact of governmental regulation on our ESG efforts. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Risk Factors” in Part I, Item 1A, of the Company's Annual Report on Form 10-K for the year ended December 31, 2021.
We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for any forward-looking statements included in this Press Release. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this Press Release. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this Press Release.
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| URBAN EDGE PROPERTIES | | | |
| ADDITIONAL INFORMATION | | | |
| As of June 30, 2022 | | | |
Basis of Presentation
The information contained in the Supplemental Disclosure Package does not purport to disclose all items required by GAAP and is unaudited. This Supplemental Disclosure Package should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2022. The results of operations of any property acquired are included in the Company's financial statements since the date of acquisition, although such properties may be excluded from certain metrics disclosed in this Supplemental Disclosure Package.
Non-GAAP Financial Measures and Forward-Looking Statements
For additional information regarding non-GAAP financial measures and forward-looking statements, please see pages 3 and 8 of this Supplemental Disclosure Package.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| SUMMARY FINANCIAL RESULTS AND RATIOS | | |
For the three and six months ended June 30, 2022 (unaudited) | |
| (in thousands, except per share, sf, rent psf and financial ratio data) | | |
| | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| Summary Financial Results | | June 30, 2022 | | June 30, 2022 |
| Total revenue | | $ | 97,854 | | | $ | 198,055 | |
| General & administrative expenses (G&A) | | $ | 10,634 | | | $ | 21,755 | |
| Net income attributable to common shareholders | | $ | 11,626 | | | $ | 21,112 | |
| Earnings per diluted share | | $ | 0.10 | | | $ | 0.18 | |
Adjusted EBITDAre(7) | | $ | 51,888 | | | $ | 101,232 | |
| Funds from operations (FFO) | | $ | 36,236 | | | $ | 70,407 | |
| FFO per diluted common share | | $ | 0.30 | | | $ | 0.58 | |
| FFO as Adjusted | | $ | 36,825 | | | $ | 71,370 | |
| FFO as Adjusted per diluted common share | | $ | 0.30 | | | $ | 0.58 | |
| Total dividends declared per share | | $ | 0.16 | | | $ | 0.32 | |
| Stock closing price low-high range (NYSE) | | $14.53 to $19.60 | | $14.53 to $19.76 |
Weighted average diluted shares used in EPS computations(1) | | 117,427 | | | 117,410 | |
Weighted average diluted common shares used in FFO computations(1) | | 122,512 | | | 122,351 | |
| | | | |
| Summary Property, Operating and Financial Data | | | | |
| # of Total properties / # of Retail properties | | 76 / 73 | | |
Gross leasable area (GLA) sf - retail portfolio(3)(5) | | 14,534,000 | | | |
Weighted average annual rent psf - retail portfolio(3)(5) | | $ | 19.82 | | | |
Consolidated portfolio leased occupancy at end of period(9) | | 88.1 | % | | |
Consolidated retail portfolio leased occupancy at end of period(5) | | 92.5 | % | | |
Same-property portfolio leased occupancy at end of period(2) | | 94.9 | % | | |
Same-property physical occupancy at end of period(4)(2) | | 90.0 | % | | |
Same-property NOI growth(2) | | 1.2 | % | | 3.3 | % |
| Same-property NOI growth, including redevelopment properties | | — | % | | 1.8 | % |
| NOI margin - total portfolio | | 62.5 | % | | 60.6 | % |
| Expense recovery ratio - total portfolio | | 82.2 | % | | 82.0 | % |
New, renewal and option rent spread - cash basis(8) | | 9.6 | % | | 8.2 | % |
New, renewal and option rent spread - GAAP basis(8) | | 19.0 | % | | 17.8 | % |
Net debt to total market capitalization(6) | | 43.0 | % | | 43.0 | % |
Net debt to Adjusted EBITDAre(6) | | 7.4 | x | | 7.6 | x |
Adjusted EBITDAre to interest expense(7) | | 3.9 | x | | 3.8 | x |
Adjusted EBITDAre to fixed charges(7) | | 2.9 | x | | 2.8 | x |
| | | | |
(1) Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share for the three and six months ended June 30, 2022 are higher than the GAAP weighted average diluted shares as a result of the dilutive impact of LTIP and OP units which may be redeemed for our common shares.
(2) The same-property pool for both NOI and occupancy includes properties the Company consolidated, owned and operated for the entirety of both periods being compared and excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the GLA is taken out of service and also excludes properties acquired or sold during the periods being compared.
(3) GLA - retail portfolio excludes 1.3 million square feet of industrial properties, 1.2 million square feet for Sunrise Mall and 132,000 square feet of self-storage. The weighted average annual rent per square foot for our industrial portfolio was $7.18.
(4) Physical occupancy includes tenants that have access to their leased space and includes dark and paying tenants.
(5) Our retail portfolio includes shopping centers and malls (excluding Sunrise Mall) and excludes industrial and self-storage.
(6) See computation for the quarter ended June 30, 2022 on page 16. Adjusted EBITDAre is annualized for purposes of calculating net debt to Adjusted EBITDAre.
(7) See computation on page 14.
(8) See computation on page 21.
(9) Excluding Sunrise Mall, consolidated portfolio leased occupancy is 91.9%.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED BALANCE SHEETS | | |
As of June 30, 2022 (unaudited) and December 31, 2021 | | |
| (in thousands, except share and per share amounts) | | |
| | | | | | | | | | | |
| | June 30, | | December 31, |
| | 2022 | | 2021 |
| ASSETS | | | |
| Real estate, at cost: | | | |
| Land | $ | 546,913 | | | $ | 543,827 | |
| Buildings and improvements | 2,455,859 | | | 2,441,797 | |
| Construction in progress | 258,330 | | | 212,296 | |
| Furniture, fixtures and equipment | 7,922 | | | 7,530 | |
| Total | 3,269,024 | | | 3,205,450 | |
| Accumulated depreciation and amortization | (775,931) | | | (753,947) | |
| Real estate, net | 2,493,093 | | | 2,451,503 | |
| Operating lease right-of-use assets | 65,858 | | | 69,361 | |
| Cash and cash equivalents | 125,483 | | | 164,478 | |
| Restricted cash | 45,838 | | | 55,358 | |
| Tenant and other receivables | 14,366 | | | 15,812 | |
| Receivable arising from the straight-lining of rents | 63,749 | | | 62,692 | |
Identified intangible assets, net of accumulated amortization of $39,845 and $37,361, respectively | 68,886 | | | 71,107 | |
Deferred leasing costs, net of accumulated amortization of $19,006 and $17,641, respectively | 21,049 | | | 20,694 | |
| Prepaid expenses and other assets | 71,977 | | | 74,111 | |
| Total assets | $ | 2,970,299 | | | $ | 2,985,116 | |
| | | |
| LIABILITIES AND EQUITY | | | |
| Liabilities: | | | |
| Mortgages payable, net | $ | 1,699,844 | | | $ | 1,687,190 | |
| Operating lease liabilities | 61,265 | | | 64,578 | |
| Accounts payable, accrued expenses and other liabilities | 74,913 | | | 84,829 | |
Identified intangible liabilities, net of accumulated amortization of $38,026 and $35,029, respectively | 97,327 | | | 100,625 | |
| Total liabilities | 1,933,349 | | | 1,937,222 | |
| Commitments and contingencies | | | |
| Shareholders’ equity: | | | |
Common shares: $0.01 par value; 500,000,000 shares authorized and 117,442,769 and 117,147,986 shares issued and outstanding, respectively | 1,173 | | | 1,170 | |
| Additional paid-in capital | 1,002,679 | | | 1,001,253 | |
| Accumulated other comprehensive loss | (52) | | | — | |
| Accumulated deficit | (23,568) | | | (7,091) | |
| Noncontrolling interests: | | | |
| Operating partnership | 42,771 | | | 39,616 | |
| Consolidated subsidiaries | 13,947 | | | 12,946 | |
| Total equity | 1,036,950 | | | 1,047,894 | |
| Total liabilities and equity | $ | 2,970,299 | | | $ | 2,985,116 | |
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED STATEMENTS OF INCOME | | |
For the three and six months ended June 30, 2022 and 2021 (unaudited) | |
| (in thousands, except per share amounts) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| REVENUE | | | | | | | |
| Rental revenue | $ | 97,454 | | | $ | 93,653 | | | $ | 196,870 | | | $ | 188,272 | |
| Other income | 400 | | | 353 | | | 1,185 | | | 1,395 | |
| Total revenue | 97,854 | | | 94,006 | | | 198,055 | | | 189,667 | |
| EXPENSES | | | | | | | |
| Depreciation and amortization | 24,691 | | | 22,488 | | | 49,218 | | | 45,363 | |
| Real estate taxes | 15,456 | | | 15,363 | | | 31,431 | | | 31,964 | |
| Property operating | 17,596 | | | 15,891 | | | 38,801 | | | 36,182 | |
| General and administrative | 10,634 | | | 9,484 | | | 21,755 | | | 18,152 | |
| | | | | | | |
| Lease expense | 3,083 | | | 3,195 | | | 6,218 | | | 6,501 | |
| Total expenses | 71,460 | | | 66,421 | | | 147,423 | | | 138,162 | |
| Gain on sale of real estate | 353 | | | — | | | 353 | | | 11,722 | |
| Interest income | 214 | | | 90 | | | 419 | | | 226 | |
| Interest and debt expense | (14,241) | | | (14,728) | | | (28,245) | | | (29,555) | |
| | | | | | | |
| Income before income taxes | 12,720 | | | 12,947 | | | 23,159 | | | 33,898 | |
| Income tax (expense) benefit | (711) | | | 34 | | | (1,616) | | | (201) | |
| Net income | 12,009 | | | 12,981 | | | 21,543 | | | 33,697 | |
| Less net (income) loss attributable to noncontrolling interests in: | | | | | | | |
| Operating partnership | (506) | | | (584) | | | (893) | | | (1,459) | |
| Consolidated subsidiaries | 123 | | | 150 | | | 462 | | | 229 | |
| Net income attributable to common shareholders | $ | 11,626 | | | $ | 12,547 | | | $ | 21,112 | | | $ | 32,467 | |
| | | | | | | |
| Earnings per common share - Basic: | $ | 0.10 | | | $ | 0.11 | | | $ | 0.18 | | | $ | 0.28 | |
| Earnings per common share - Diluted: | $ | 0.10 | | | $ | 0.11 | | | $ | 0.18 | | | $ | 0.28 | |
| Weighted average shares outstanding - Basic | 117,364 | | | 116,981 | | | 117,347 | | | 116,969 | |
| Weighted average shares outstanding - Diluted | 117,427 | | | 117,034 | | | 117,410 | | | 122,327 | |
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| SUPPLEMENTAL SCHEDULE OF NET OPERATING INCOME | | |
For the three and six months ended June 30, 2022 and 2021 | |
| (in thousands) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, | | Percent Change | | Six Months Ended June 30, | | Percent Change |
| 2022 | | 2021 | | | 2022 | | 2021 | |
Total NOI(1) | | | | | | | | | | | |
| Total revenue | $95,460 | | $91,327 | | 4.5% | | $192,485 | | $184,673 | | 4.2% |
| Total property operating expenses | (35,812) | | (34,091) | | 5.0% | | (75,775) | | (73,858) | | 2.6% |
| NOI - total portfolio | $59,648 | | $57,236 | | 4.2% | | $116,710 | | $110,815 | | 5.3% |
| | | | | | | | | | | |
| NOI margin (NOI / Total revenue) | 62.5 | % | | 62.7 | % | | | | 60.6 | % | | 60.0 | % | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Same-property NOI(1)(2) | | | | | | | | | | | |
| Property rentals | $ | 59,661 | | | $ | 58,001 | | | | | $ | 119,126 | | | $ | 115,910 | | | |
| Tenant expense reimbursements | 21,760 | | | 20,847 | | | | | 46,100 | | | 45,592 | | | |
| Rental revenue deemed uncollectible | 851 | | | 2,322 | | | | | 141 | | | 1,058 | | | |
| Total revenue | 82,272 | | | 81,170 | | | | | 165,367 | | | 162,560 | | | |
| Real estate taxes | (13,144) | | | (13,710) | | | | | (26,201) | | | (27,696) | | | |
| Property operating | (13,648) | | | (12,633) | | | | | (30,158) | | | (29,163) | | | |
| Lease expense | (2,847) | | | (2,836) | | | | | (5,696) | | | (5,656) | | | |
| Total property operating expenses | (29,639) | | | (29,179) | | | | | (62,055) | | | (62,515) | | | |
Same-property NOI(1)(2) | $ | 52,633 | | | $ | 51,991 | | | 1.2% | | $ | 103,312 | | | $ | 100,045 | | | 3.3% |
| | | | | | | | | | | |
| NOI related to properties being redeveloped | $ | 4,627 | | | $ | 5,262 | | | | | $ | 8,966 | | | $ | 10,254 | | | |
Same-property NOI including properties in redevelopment(1) | $ | 57,260 | | | $ | 57,253 | | | —% | | $ | 112,278 | | | $ | 110,299 | | | 1.8% |
| | | | | | | | | | | |
| Same-property physical occupancy | 90.0 | % | | 89.2 | % | | | | 90.0 | % | | 89.1 | % | | |
| Same-property leased occupancy | 94.9 | % | | 92.2 | % | | | | 94.8 | % | | 92.1 | % | | |
| Number of properties included in same-property analysis | 69 | | | | | | | 68 | | | | | |
| | | | | | | | | | | |
(1) NOI excludes non-cash revenue and expenses. Refer to page 6 for a reconciliation of net income to NOI and same-property NOI.
(2) Excludes NOI related to properties acquired or disposed in the comparative periods and Sunrise Mall.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION and AMORTIZATION for REAL ESTATE (EBITDAre) |
For the three and six months ended June 30, 2022 and 2021 | |
| (in thousands) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, | | Six Months Ended June 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
| Net income | $ | 12,009 | | | $ | 12,981 | | | $ | 21,543 | | | $ | 33,697 | |
| Depreciation and amortization | 24,691 | | | 22,488 | | | 49,218 | | | 45,363 | |
| Interest expense | 13,453 | | | 13,983 | | | 26,712 | | | 28,053 | |
| Amortization of deferred financing costs | 788 | | | 745 | | | 1,533 | | | 1,502 | |
| Income tax expense (benefit) | 711 | | | (34) | | | 1,616 | | | 201 | |
| Gain on sale of real estate | (353) | | | — | | | (353) | | | (11,722) | |
| | | | | | | |
| EBITDAre | 51,299 | | | 50,163 | | | 100,269 | | | 97,094 | |
| Adjustments for Adjusted EBITDAre: | | | | | | | |
| | | | | | | |
| Transaction, severance and other expenses (income) | 635 | | | 120 | | | 1,132 | | | (257) | |
| (Reinstatement)/write-off of receivables arising from the straight-lining of rents, net | (46) | | | (239) | | | (133) | | | 634 | |
| Tenant bankruptcy settlement income | — | | | (286) | | | (36) | | | (286) | |
| | | | | | | |
| | | | | | | |
| Adjusted EBITDAre | $ | 51,888 | | | $ | 49,758 | | | $ | 101,232 | | | $ | 97,185 | |
| | | | | | | |
| Interest expense | $ | 13,453 | | | $ | 13,983 | | | $ | 26,712 | | | $ | 28,053 | |
| | | | | | | |
| Adjusted EBITDAre to interest expense | 3.9 | x | | 3.6 | x | | 3.8 | x | | 3.5 | x |
| | | | | | | |
| Fixed charges | | | | | | | |
| Interest expense | $ | 13,453 | | | $ | 13,983 | | | $ | 26,712 | | | $ | 28,053 | |
| Scheduled principal amortization | 4,502 | | | 2,958 | | | 8,872 | | | 5,631 | |
| Total fixed charges | $ | 17,955 | | | $ | 16,941 | | | $ | 35,584 | | | $ | 33,684 | |
| | | | | | | |
| Adjusted EBITDAre to fixed charges | 2.9 | x | | 2.9 | x | | 2.8 | x | | 2.9 | x |
| | | | | | | |
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| FUNDS FROM OPERATIONS | |
For the three and six months ended June 30, 2022 | |
| (in thousands, except per share amounts) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, 2022 | | Six Months Ended
June 30, 2022 |
| (in thousands) | | (per share)(2) | | (in thousands) | | (per share)(2) |
| Net income | $ | 12,009 | | | $ | 0.10 | | | $ | 21,543 | | | $ | 0.18 | |
| Less net (income) loss attributable to noncontrolling interests in: | | | | | | | |
| Operating partnership | (506) | | | — | | | (893) | | | (0.01) | |
| Consolidated subsidiaries | 123 | | | — | | | 462 | | | — | |
| Net income attributable to common shareholders | 11,626 | | | 0.10 | | | 21,112 | | | 0.17 | |
| Adjustments: | | | | | | | |
| Rental property depreciation and amortization | 24,457 | | | 0.20 | | | 48,755 | | | 0.40 | |
| Gain on sale of real estate | (353) | | | — | | | (353) | | | — | |
Limited partnership interests in operating partnership(1) | 506 | | | — | | | 893 | | | 0.01 | |
| | | | | | | |
| FFO applicable to diluted common shareholders | 36,236 | | | 0.30 | | | 70,407 | | | 0.58 | |
| Adjustments to FFO: | | | | | | | |
| | | | | | | |
| Transaction, severance and other expenses | 635 | | | 0.01 | | | 1,132 | | | 0.01 | |
| Reinstatement of receivables arising from the straight-lining of rents, net | (46) | | | — | | | (133) | | | — | |
| Tenant bankruptcy settlement income | — | | | — | | | (36) | | | — | |
| | | | | | | |
| FFO as Adjusted applicable to diluted common shareholders | $ | 36,825 | | | $ | 0.30 | | | $ | 71,370 | | | $ | 0.58 | |
| | | | | | | |
| Weighted average diluted shares used to calculate EPS | 117,427 | | | | | 117,410 | | | |
| Assumed conversion of OP and LTIP Units to common shares | 5,085 | | | | | 4,941 | | | |
| Weighted average diluted common shares - FFO | 122,512 | | | | | 122,351 | | | |
(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 because they are anti-dilutive.
(2) Individual items may not add up due to total rounding.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| MARKET CAPITALIZATION, DEBT RATIOS AND LIQUIDITY | | |
| As of June 30, 2022 | | |
| (in thousands, except share amounts) | | |
| | | | | |
| June 30, 2022 |
| Closing market price of common shares | $ | 15.21 | |
| |
| Basic common shares | 117,442,769 | |
| OP and LTIP units | 5,124,493 | |
| Diluted common shares | 122,567,262 | |
| |
| Equity market capitalization | $ | 1,864,248 | |
| |
| |
Total consolidated debt(1) | $ | 1,708,637 | |
| Cash and cash equivalents including restricted cash | (171,321) | |
| Net debt | $ | 1,537,316 | |
| |
| Net Debt to annualized Adjusted EBITDAre | 7.4 | x |
| |
Total consolidated debt(1) | $ | 1,708,637 | |
| Equity market capitalization | 1,864,248 | |
| Total market capitalization | $ | 3,572,885 | |
| |
| Net debt to total market capitalization at applicable market price | 43.0 | % |
| |
| |
| Cash and cash equivalents including restricted cash | $ | 171,321 | |
| Available under unsecured credit facility | 600,000 | |
| Total liquidity | $ | 771,321 | |
| |
(1) Total consolidated debt excludes unamortized debt issuance costs of $8.8 million.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| ADDITIONAL DISCLOSURES | |
| (in thousands) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| Rental Revenue: | | | | | | | | |
Property rentals(1) | | $ | 71,970 | | | $ | 68,323 | | | $ | 144,336 | | | $ | 136,356 | |
| Tenant expense reimbursements | | 24,786 | | | 23,871 | | | 52,521 | | | 53,092 | |
| Rental revenue deemed uncollectible | | 698 | | | 1,459 | | | 13 | | | (1,176) | |
| Total rental revenue | | $ | 97,454 | | | $ | 93,653 | | | $ | 196,870 | | | $ | 188,272 | |
Composition of Rental Revenue for the Quarter Ended June 30, 2022
| | | | | |
| (in thousands) | Three Months Ended June 30, 2022 |
Collected property rentals and tenant expense reimbursements from second quarter billings(2) | $ | 89,479 | |
Uncollected property rentals and tenant expense reimbursements from second quarter billings(2) | |
| Reserved | 1,338 | |
| Accrued - unreserved | 4,650 | |
Total property rentals and tenant expense reimbursements before non-cash adjustments from second quarter billings(3) | 95,467 | |
Non-cash adjustments(4) | 1,289 | |
| Rental revenue deemed uncollectible | 698 | |
| Total rental revenue recognized | $ | 97,454 | |
Composition of Rental Revenue Deemed Uncollectible
| | | | | | | |
| (in thousands) | | | Three Months Ended June 30, 2022 |
| Rental revenue deemed uncollectible | | | |
Amounts billed in second quarter deemed uncollectible | | | $ | 1,338 | |
Amounts billed prior to second quarter now deemed uncollectible | | | 260 | |
Recovery of amounts deemed uncollectible in prior periods | | | (2,296) | |
Total rental revenue deemed uncollectible(5) | | | $ | (698) | |
Tenant and Other Receivables
| | | | | | | | |
| | As of June 30, 2022 |
| (in thousands) | | |
| Tenant and other receivables billed | | $ | 30,073 | |
| Revenue deemed uncollectible | | (15,707) | |
| Tenant and other receivables deemed collectible | | $ | 14,366 | |
(1) Percentage rents for the three and six months ended June 30, 2022 were $0.3 million and $1.5 million, respectively, and $0.3 million and $0.7 million for the same periods in 2021.
(2) The Company has collected 99% of second quarter base rents as of July 28, 2022. During the quarter ended June 30, 2022, the Company completed year-end recovery true-up billings for common area charges incurred in 2021. Further collection of these amounts is anticipated in the subsequent quarter.
(3) Total second quarter billings include $5.7 million of gross amounts billed for leases with rental revenue being recognized on a cash-basis. The Company had 133 leases with rental revenue being recognized on a cash-basis, which represented approximately 5.9% of total portfolio ABR as of June 30, 2022.
(4) Amount comprises straight-line rents, amortization of lease intangibles, credits for tenant abatements and accrued unbilled amounts during the second quarter.
(5) Rental revenue deemed uncollectible pertaining to cash basis tenants was an expense of $0.5 million consisting of $1.1 million of charges, offset by $0.6 million of amounts recovered in the quarter.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| ADDITIONAL DISCLOSURES | |
| (in thousands) | | |
Status of Rent Deferrals
As of June 30, 2022, the Company has executed or approved deferral agreements amounting to $11.7 million with a weighted average remaining payback period of 24 months and has collected 99.5% of the deferral payments due:
| | | | | | | | | | | | | | |
| As of June 30, 2022 |
| (in thousands) | Unbilled | Rebilled and Collected | Rebilled and Uncollected | Total |
| Accrual basis | $ | 1,340 | | $ | 6,484 | | $ | — | | $ | 7,824 | |
| Cash basis | 2,471 | | 1,371 | | 37 | | 3,879 | |
| Total | $ | 3,811 | | $ | 7,855 | | $ | 37 | | $ | 11,703 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| Certain Non-Cash Items: | | | | | | | | |
Straight-line rents(1) | | $ | 546 | | | $ | 274 | | | $ | 1,057 | | | $ | (690) | |
Amortization of below-market lease intangibles, net(1) | | 1,533 | | | 2,342 | | | 3,507 | | | 4,754 | |
Lease expense GAAP adjustments(2) | | (99) | | | (134) | | | (198) | | | (308) | |
Amortization of deferred financing costs(3) | | (788) | | | (745) | | | (1,533) | | | (1,502) | |
Capitalized interest(3) | | 1,957 | | | 266 | | | 3,690 | | | 347 | |
Share-based compensation expense(4) | | (2,500) | | | (2,726) | | | (5,097) | | | (5,409) | |
| | | | | | | | |
Capital Expenditures:(5) | | | | | | | | |
| Development and redevelopment costs | | $ | 23,347 | | | $ | 8,406 | | | $ | 38,909 | | | $ | 13,729 | |
| Maintenance capital expenditures | | 4,920 | | | 1,626 | | | 8,238 | | | 3,831 | |
| Leasing commissions | | 507 | | | 459 | | | 662 | | | 778 | |
| Tenant improvements and allowances | | 753 | | | 1,519 | | | 951 | | | 1,791 | |
| Total capital expenditures | | $ | 29,527 | | | $ | 12,010 | | | $ | 48,760 | | | $ | 20,129 | |
| | | | | | | | |
| | | | | | | | | | | | | | |
| | June 30, 2022 | | December 31, 2021 |
| Accounts Payable, Accrued Expenses and Other Liabilities: | | | | |
| Deferred tenant revenue | | $ | 22,838 | | | $ | 28,898 | |
| Accrued capital expenditures and leasing costs | | 18,523 | | | 19,164 | |
| Accrued interest payable | | 10,225 | | | 9,879 | |
| Other liabilities and accrued expenses | | 8,162 | | | 8,057 | |
| Security deposits | | 7,145 | | | 6,693 | |
| Accrued payroll expenses | | 5,010 | | | 9,134 | |
| Finance lease liability | | 3,010 | | | 3,004 | |
| Total accounts payable, accrued expenses and other liabilities | | $ | 74,913 | | | $ | 84,829 | |
(1) Amounts included in the financial statement line item "Rental revenue" on the consolidated statements of income. There was no material impact for straight-line write-offs or reinstatements for the three months ended June 30, 2022. During the three months ended June 30, 2021 the Company reinstated $0.2 million of receivables arising from the straight-lining of rents, net of write-offs for tenants moved back to accrual basis accounting. During the six months ended June 30, 2022, the Company reinstated $0.1 million of receivables arising from the straight-lining of rents, net of write-offs, compared to a write-off of $0.6 million, net of reinstatements, for tenants moved to cash basis accounting for the six months ended June 30, 2021.
(2) Amounts consist of amortization of below-market ground lease intangibles and straight-line lease expense, and are included in the financial statement line item "Lease expense" on the consolidated statements of income.
(3) Amounts included in the financial statement line item "Interest and debt expense" on the consolidated statements of income.
(4) Amounts included in the financial statement line item "General and administrative" on the consolidated statements of income.
(5) Amounts presented on a cash basis.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| TENANT CONCENTRATION - TOP TWENTY-FIVE TENANTS | |
| As of June 30, 2022 | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| Tenant | Number of stores | Square feet | % of total square feet | Annualized base rent ("ABR") | % of total ABR | Weighted average ABR per square foot | Average remaining term of ABR(1) |
| The Home Depot | 6 | | 808,926 | | 4.7% | $ | 15,731,153 | | 5.6% | $ | 19.45 | | 13.8 |
The TJX Companies(2) | 22 | | 714,731 | | 4.2% | 14,437,720 | | 5.2% | 20.20 | | 4.7 |
| Lowe's Companies | 6 | | 976,415 | | 5.7% | 8,946,256 | | 3.2% | 9.16 | | 5.5 |
| Best Buy | 8 | | 359,551 | | 2.1% | 8,568,106 | | 3.1% | 23.83 | | 3.9 |
| Walmart | 5 | | 708,435 | | 4.1% | 7,479,449 | | 2.7% | 10.56 | | 5.9 |
| Burlington | 7 | | 415,828 | | 2.4% | 7,200,733 | | 2.6% | 17.32 | | 6.6 |
| Kohl's | 7 | | 633,345 | | 3.7% | 6,650,369 | | 2.4% | 10.50 | | 4.6 |
| PetSmart | 10 | | 228,869 | | 1.3% | 5,843,768 | | 2.1% | 25.53 | | 3.7 |
| BJ's Wholesale Club | 4 | | 454,297 | | 2.7% | 5,771,563 | | 2.1% | 12.70 | | 7.8 |
Ahold Delhaize (Stop & Shop) | 5 | | 362,696 | | 2.1% | 5,429,430 | | 1.9% | 14.97 | | 6.2 |
| Target Corporation | 3 | | 335,937 | | 2.0% | 5,290,952 | | 1.9% | 15.75 | | 10.3 |
| ShopRite | 4 | | 296,018 | | 1.7% | 5,241,942 | | 1.9% | 17.71 | | 10.0 |
| LA Fitness | 6 | | 287,420 | | 1.7% | 5,053,088 | | 1.8% | 17.58 | | 7.2 |
Amazon(3) | 3 | | 145,279 | | 0.8% | 4,717,885 | | 1.7% | 32.47 | | 8.7 |
The Gap(4) | 11 | | 166,032 | | 1.0% | 4,693,166 | | 1.7% | 28.27 | | 3.3 |
| Staples | 8 | | 167,832 | | 1.0% | 3,541,704 | | 1.3% | 21.10 | | 2.8 |
| Bob's Discount Furniture | 4 | | 170,931 | | 1.0% | 3,251,494 | | 1.2% | 19.02 | | 4.8 |
Bed Bath & Beyond(5) | 7 | | 205,673 | | 1.2% | 3,017,257 | | 1.1% | 14.67 | | 5.6 |
| 24 Hour Fitness | 1 | | 53,750 | | 0.3% | 2,700,000 | | 1.0% | 50.23 | | 9.5 |
| Anthropologie | 1 | | 31,450 | | 0.2% | 2,531,725 | | 0.9% | 80.50 | | 6.3 |
| Planet Fitness | 5 | | 101,046 | | 0.6% | 2,415,325 | | 0.9% | 23.90 | | 8.6 |
| Raymour & Flanigan | 4 | | 215,254 | | 1.3% | 2,370,497 | | 0.8% | 11.01 | | 6.4 |
| Dick's Sporting Goods | 3 | | 153,910 | | 0.9% | 2,313,322 | | 0.8% | 15.03 | | 2.2 |
| Nordstrom | 2 | | 66,561 | | 0.4% | 2,284,902 | | 0.8% | 34.33 | | 2.6 |
Visiting Nurse Services of NY(6) | 1 | | 58,387 | | 0.3% | 2,060,539 | | 0.7% | 35.29 | | — |
| | | | | | | |
| Total/Weighted Average | 143 | | 8,118,573 | | 47.4% | $ | 137,542,345 | | 49.4% | $ | 16.94 | | 6.7 |
| | | | | | | |
(1) In years excluding tenant renewal options. The weighted average is based on ABR.
(2) Includes Marshalls (14), T.J. Maxx (4), HomeGoods (3) and Homesense (1).
(3) Includes Whole Foods (2) and Amazon Fresh (1)
(4) Includes Old Navy (8), Gap (2) and Banana Republic (1).
(5) Includes Bed Bath & Beyond (3), Harmon Face Values (3) and buybuy Baby (1).
(6) The lease with Visiting Nurse Services of NY expired June 30, 2022. The tenant is currently paying rent on a month-to-month basis while lease extension negotiations are underway.
Note: Amounts shown in the table above include all retail properties including those in redevelopment on a cash basis other than tenants in free rent periods which are shown at their initial cash rent. The table excludes executed leases that have not yet rent commenced.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| PORTFOLIO COMPOSITION BY TENANT CATEGORY | |
| As of June 30, 2022 | | |
The Company's portfolio is primarily made up of national and regional anchor tenants (>10,000 sf), which account for approximately 66% of our annualized base rent and 73% of our total gross leasable area. The charts below illustrate the portfolio composition by annualized base rent and by gross leasable area by tenant category, highlighting our limited exposure to local tenants of approximately 13% of annualized base rent.
Note: Percentages shown in the charts above include both current leases and signed leases that have not commenced on vacant spaces and exclude Sunrise Mall. See "Operating Metrics" on page 4 for definitions of anchors, shops, national, regional and local.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| LEASING ACTIVITY | |
For the three and six months ended June 30, 2022 | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, 2022 | | Six Months Ended June 30, 2022 |
| GAAP(2) | | Cash(1) | | GAAP(2) | | Cash(1) |
| New Leases | | | | | | | |
| Number of new leases executed | 20 | | | 20 | | | 31 | | | 31 | |
| Total square feet | 290,448 | | | 290,448 | | | 389,293 | | | 389,293 | |
| Number of same space leases | 20 | | | 20 | | | 28 | | | 28 | |
| Same space square feet | 290,448 | | | 290,448 | | | 347,206 | | | 347,206 | |
| Prior rent per square foot | $ | 19.08 | | | $ | 20.48 | | | $ | 18.92 | | | $ | 20.06 | |
| New rent per square foot | $ | 23.80 | | | $ | 21.95 | | | $ | 23.75 | | | $ | 21.87 | |
| Same space weighted average lease term (years) | 13.5 | | | 13.5 | | | 12.6 | | | 12.6 | |
| Same space TIs per square foot | N/A | | $ | 16.98 | | | N/A | | $ | 17.91 | |
| Rent spread | 24.7 | % | | 7.2 | % | | 25.5 | % | | 9.0 | % |
| | | | | | | |
| Renewals & Options | | | | | | | |
| Number of leases executed | 17 | | | 17 | | | 39 | | | 39 | |
| Total square feet | 425,197 | | | 425,197 | | | 634,100 | | | 634,100 | |
| Number of same space leases | 17 | | | 17 | | | 39 | | | 39 | |
| Same space square feet | 425,197 | | | 425,197 | | | 634,100 | | | 634,100 | |
| Prior rent per square foot | $ | 14.48 | | | $ | 14.49 | | | $ | 15.89 | | | $ | 16.43 | |
| New rent per square foot | $ | 16.48 | | | $ | 16.23 | | | $ | 17.91 | | | $ | 17.71 | |
| Same space weighted average lease term (years) | 5.6 | | | 5.6 | | | 5.3 | | | 5.3 | |
| Same space TIs per square foot | N/A | | $ | — | | | N/A | | $ | — | |
| Rent spread | 13.8 | % | | 12.0 | % | | 12.7 | % | | 7.8 | % |
| | | | | | | |
| Total New Leases and Renewals & Options | | | | | | | |
| Number of leases executed | 37 | | | 37 | | | 70 | | | 70 | |
| Total square feet | 715,645 | | | 715,645 | | | 1,023,393 | | | 1,023,393 | |
| Number of same space leases | 37 | | | 37 | | | 67 | | | 67 | |
| Same space square feet | 715,645 | | | 715,645 | | | 981,306 | | | 981,306 | |
| Prior rent per square foot | $ | 16.35 | | | $ | 16.92 | | | $ | 16.96 | | | $ | 17.72 | |
| New rent per square foot | $ | 19.45 | | | $ | 18.55 | | | $ | 19.98 | | | $ | 19.18 | |
| Same space weighted average lease term (years) | 8.8 | | | 8.8 | | | 7.9 | | | 7.9 | |
| Same space TIs per square foot | N/A | | $ | 6.89 | | | N/A | | $ | 6.34 | |
| Rent spread | 19.0 | % | | 9.6 | % | | 17.8 | % | | 8.2 | % |
(1) Rents are not calculated on a straight-line (GAAP) basis. Previous/expiring rent is the rent at expiry. New rent is the rent paid at commencement.
(2) Rents are calculated on a straight-line (GAAP) basis.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| LEASES EXECUTED BUT NOT YET RENT COMMENCED | | |
| As of June 30, 2022 | | |
The Company has signed leases that have not yet rent commenced that are expected to generate an additional $22.9 million of future annual gross rent, representing approximately 10% of current annualized NOI. Approximately $17.7 million of this amount pertains to leases included in Active Redevelopment Projects on page 29. National and regional tenants represent 71% of the leased but not yet rent commenced pipeline. The below table illustrates the gross revenue expected to be recognized, in the respective periods, from commencement of these leases.
The below table summarizes the changes in annualized gross rent from leases executed but not yet rent commenced since March 31, 2022:
| | | | | |
| (in thousands) | Annualized Gross Rent |
| Leases executed but not yet rent commenced as of March 31, 2022 | $ | 21,500 | |
Less: Leases commenced during the second quarter | (5,100) | |
Plus: Leases executed during the second quarter | 6,500 | |
Leases executed but not yet rent commenced as of June 30, 2022 | $ | 22,900 | |
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE | |
| As of June 30, 2022 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ANCHOR TENANTS (SF>=10,000) | SHOP TENANTS (SF<10,000) | TOTAL TENANTS |
Year(1) | # of leases | Square Feet | % of Total SF | Weighted Avg ABR PSF(2) | # of leases | Square Feet | % of Total SF | Weighted Avg ABR PSF(2) | # of leases | Square Feet | % of Total SF | Weighted Avg ABR PSF(2) |
| | | | | | | | | | | | |
| M-T-M | 1 | | 18,000 | | 0.1 | % | $ | 20.18 | | 30 | | 79,000 | | 3.2% | $ | 25.87 | | 31 | | 97,000 | | 0.7% | $ | 24.81 | |
| 2022 | 4 | | 163,000 | | 1.4 | % | 29.74 | | 36 | | 80,000 | | 3.2% | 34.56 | | 40 | | 243,000 | | 1.7% | 31.33 | |
| 2023 | 19 | | 600,000 | | 5.0 | % | 18.95 | | 81 | | 243,000 | | 9.8% | 38.85 | | 100 | | 843,000 | | 5.8% | 24.69 | |
| 2024 | 37 | | 1,269,000 | | 10.5 | % | 18.14 | | 67 | | 215,000 | | 8.7% | 33.99 | | 104 | | 1,484,000 | | 10.2% | 20.43 | |
| 2025 | 28 | | 1,075,000 | | 8.9 | % | 15.72 | | 52 | | 179,000 | | 7.2% | 36.25 | | 80 | | 1,254,000 | | 8.6% | 18.65 | |
| 2026 | 21 | | 688,000 | | 5.7 | % | 18.53 | | 77 | | 251,000 | | 10.1% | 36.67 | | 98 | | 939,000 | | 6.5% | 23.38 | |
| 2027 | 21 | | 828,000 | | 6.9 | % | 12.06 | | 73 | | 267,000 | | 10.8% | 32.90 | | 94 | | 1,095,000 | | 7.5% | 17.14 | |
| 2028 | 17 | | 749,000 | | 6.2 | % | 21.21 | | 40 | | 148,000 | | 6.0% | 39.15 | | 57 | | 897,000 | | 6.2% | 24.17 | |
| 2029 | 31 | | 1,384,000 | | 11.5 | % | 19.84 | | 42 | | 152,000 | | 6.1% | 42.55 | | 73 | | 1,536,000 | | 10.6% | 22.08 | |
| 2030 | 15 | | 1,091,000 | | 9.0 | % | 12.72 | | 31 | | 110,000 | | 4.4% | 47.01 | | 46 | | 1,201,000 | | 8.3% | 15.86 | |
| 2031 | 15 | | 955,000 | | 7.9 | % | 15.36 | | 18 | | 70,000 | | 2.8% | 33.23 | | 33 | | 1,025,000 | | 7.1% | 16.58 | |
| 2032 | 9 | | 280,000 | | 2.3 | % | 16.02 | | 39 | | 137,000 | | 5.5% | 33.26 | | 48 | | 417,000 | | 2.9% | 21.69 | |
| Thereafter | 36 | | 2,275,000 | | 19.0 | % | 15.20 | | 29 | | 133,000 | | 5.5% | 36.88 | | 65 | | 2,408,000 | | 16.4% | 16.40 | |
| Subtotal/Average | 254 | | 11,375,000 | | 94.4 | % | $ | 16.75 | | 615 | | 2,064,000 | | 83.3% | $ | 36.71 | | 869 | | 13,439,000 | | 92.5 | % | $ | 19.82 | |
| Vacant | 23 | | 681,000 | | 5.6 | % | N/A | 161 | | 414,000 | | 16.7% | N/A | 184 | | 1,095,000 | | 7.5 | % | N/A |
| Total/Average | 277 | | 12,056,000 | | 100.0 | % | N/A | 776 | | 2,478,000 | | 100.0% | N/A | 1,053 | | 14,534,000 | | 100.0 | % | N/A |
| | | | | | | | | | | | |
(1) Year of expiration excludes tenant renewal options.
(2) Weighted average annual base rent per square foot is calculated by annualizing tenants' base cash rent, including ground rent, and excludes tenant reimbursements and concessions and storage rent.
Note: Amounts shown in the table above include both current leases and signed leases that have not commenced on vacant spaces for all retail properties (excludes Sunrise Mall and includes properties in redevelopment). The average base rent for our 1,345,000 square-foot warehouse properties (excluded from the table above) is $7.18 per square foot as of June 30, 2022.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE ASSUMING EXERCISE OF ALL OPTIONS |
| As of June 30, 2022 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ANCHOR TENANTS (SF>=10,000) | SHOP TENANTS (SF<10,000) | TOTAL TENANTS |
Year(1) | # of leases | Square Feet | % of Total SF | Weighted Avg ABR PSF(2) | # of leases | Square Feet | % of Total SF | Weighted Avg ABR PSF(2) | # of leases | Square Feet | % of Total SF | Weighted Avg ABR PSF(2) |
| | | | | | | | | | | | |
| M-T-M | 1 | | 18,000 | | 0.1 | % | $ | 20.18 | | 30 | | 79,000 | | 3.2% | $ | 25.87 | | 31 | | 97,000 | | 0.7% | $ | 24.81 | |
| 2022 | 2 | | 87,000 | | 0.7 | % | 27.76 | | 29 | | 63,000 | | 2.5% | 38.24 | | 31 | | 150,000 | | 1.0% | 32.16 | |
| 2023 | 3 | | 48,000 | | 0.4 | % | 30.97 | | 58 | | 159,000 | | 6.4% | 43.34 | | 61 | | 207,000 | | 1.4% | 40.47 | |
| 2024 | 6 | | 134,000 | | 1.1 | % | 13.18 | | 41 | | 113,000 | | 4.6% | 37.24 | | 47 | | 247,000 | | 1.7% | 24.19 | |
| 2025 | 10 | | 290,000 | | 2.4 | % | 19.64 | | 27 | | 81,000 | | 3.3% | 40.43 | | 37 | | 371,000 | | 2.6% | 24.17 | |
| 2026 | 6 | | 103,000 | | 0.9 | % | 24.25 | | 38 | | 105,000 | | 4.2% | 42.89 | | 44 | | 208,000 | | 1.4% | 33.66 | |
| 2027 | 3 | | 57,000 | | 0.5 | % | 21.22 | | 36 | | 109,000 | | 4.4% | 29.22 | | 39 | | 166,000 | | 1.1% | 26.47 | |
| 2028 | 6 | | 333,000 | | 2.8 | % | 15.82 | | 35 | | 99,000 | | 4.0% | 39.74 | | 41 | | 432,000 | | 3.0% | 21.30 | |
| 2029 | 14 | | 410,000 | | 3.4 | % | 23.29 | | 28 | | 94,000 | | 3.8% | 45.79 | | 42 | | 504,000 | | 3.5% | 27.49 | |
| 2030 | 10 | | 281,000 | | 2.3 | % | 20.92 | | 27 | | 94,000 | | 3.8% | 41.83 | | 37 | | 375,000 | | 2.6% | 26.16 | |
| 2031 | 12 | | 316,000 | | 2.6 | % | 22.00 | | 28 | | 83,000 | | 3.4% | 39.35 | | 40 | | 399,000 | | 2.7% | 25.61 | |
| 2032 | 7 | | 257,000 | | 2.1 | % | 17.72 | | 27 | | 85,000 | | 3.4% | 38.61 | | 34 | | 342,000 | | 2.4% | 22.91 | |
| Thereafter | 174 | | 9,041,000 | | 75.1 | % | 23.05 | | 211 | | 900,000 | | 36.3% | 46.30 | | 385 | | 9,941,000 | | 68.4% | 25.16 | |
| Subtotal/Average | 254 | | 11,375,000 | | 94.4 | % | $ | 22.54 | | 615 | | 2,064,000 | | 83.3 | % | $ | 42.49 | | 869 | | 13,439,000 | | 92.5 | % | $ | 25.61 | |
| Vacant | 23 | | 681,000 | | 5.6 | % | N/A | 161 | | 414,000 | | 16.7% | N/A | 184 | | 1,095,000 | | 7.5 | % | N/A |
| Total/Average | 277 | | 12,056,000 | | 100.0 | % | N/A | 776 | | 2,478,000 | | 100.0% | N/A | 1,053 | | 14,534,000 | | 100.0 | % | N/A |
| | | | | | | | | | | | |
(1) Year of expiration includes tenant renewal options.
(2) Weighted average annual base rent per square foot is calculated by annualizing tenants' base cash rent, including ground rent, and excludes tenant reimbursements and concessions and storage rent and is adjusted for assumed exercised options using option rents specified in the underlying leases. Weighted average annual base rent for leases whose future option rent is based on fair market value or CPI is reported at the last stated option rent in the respective lease.
Note: Amounts shown in table above include both current leases and signed leases that have not commenced on vacant spaces for all retail properties (excludes Sunrise Mall and includes properties in redevelopment). The average base rent for our 1,345,000 square-foot warehouse properties assuming exercise of all options at future tenant rent (excluded from the table above) is $8.47 per square foot as of June 30, 2022.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT | | |
As of June 30, 2022 | | |
| (dollars in thousands, except per sf amounts) | | |
| | | | | | | | | | | | | | | | | |
| Property | Total Square Feet (1) | Percent Leased(1) | Weighted Average ABR PSF(2) | Mortgage Debt(7) | Major Tenants |
| | | | | |
| RETAIL PORTFOLIO: | | |
| California: | | | | | |
| Walnut Creek (Olympic) | 31,000 | | 100.0% | $80.50 | — | Anthropologie |
Walnut Creek (Mt. Diablo)(4) | 7,000 | | 43.8% | 72.00 | — | Sweetgreen |
| Connecticut: | | | | | |
| Newington | 189,000 | | 90.0% | 9.55 | — | Walmart, Staples |
| Maryland: | | | | | |
| Towson (Goucher Commons) | 155,000 | | 92.5% | 23.97 | — | Sprouts, Staples, HomeGoods, Five Below, Ulta, Kirkland's, DSW |
| Rockville | 94,000 | | 98.0% | 25.18 | — | Regal Entertainment Group |
Wheaton (leased through 2060)(3) | 66,000 | | 100.0% | 18.27 | — | Best Buy |
Woodmore Towne Centre(6) | 712,000 | | 96.7% | 17.37 | $117,200 | Costco, Wegmans, At Home, Best Buy, LA Fitness, Nordstrom Rack |
| Massachusetts: | | | | | |
Cambridge (leased through 2033)(3) | 48,000 | | 62.1% | 31.46 | — | PetSmart |
Hyde Park (Shops at Riverwood)(6) | 76,000 | | 100.0% | 25.69 | $21,466 | Price Rite, Planet Fitness, Goodwill |
| Revere (Wonderland Marketplace) | 140,000 | | 100.0% | 13.43 | — | Big Lots, Planet Fitness, Marshalls, Get Air |
| Missouri: | | | | | |
| Manchester | 131,000 | | 100.0% | 11.77 | $12,500 | Pan-Asia Market, Academy Sports, Bob's Discount Furniture |
| New Hampshire: | | | | | |
Salem (leased through 2102)(3) | 39,000 | | 100.0% | 10.00 | — | Fun City |
| New Jersey: | | | | | |
| Bergen Town Center - East, Paramus | 253,000 | | 93.8% | 22.39 | — | Lowe's, REI, Best Buy |
| Bergen Town Center - West, Paramus | 1,058,000 | | 91.0% | 30.90 | $300,000 | Whole Foods Market, Target, Burlington, Marshalls, Nordstrom Rack, Saks Off 5th, HomeGoods, H&M, Bloomingdale's Outlet, Nike Factory Store, Old Navy, Kohl's (lease not commenced) |
| Brick | 276,000 | | 97.7% | 20.60 | $49,099 | ShopRite, Kohl's, Marshalls, Old Navy |
Carlstadt (leased through 2050)(3) | 78,000 | | 98.3% | 23.75 | — | Stop & Shop |
| Cherry Hill (Plaza at Cherry Hill) | 422,000 | | 76.2% | 14.88 | $29,000 | Aldi, LA Fitness, Raymour & Flanigan, Total Wine, Guitar Center, Sam Ash Music |
| East Brunswick | 427,000 | | 100.0% | 14.89 | $63,000 | Lowe's, Kohl's, Dick's Sporting Goods, P.C. Richard & Son, T.J. Maxx, LA Fitness |
| East Hanover (200 - 240 Route 10 West) | 343,000 | | 98.5% | 21.67 | $63,000 | The Home Depot, Dick's Sporting Goods, Saks Off Fifth, Marshalls |
| East Rutherford | 197,000 | | 100.0% | 12.93 | $23,000 | Lowe's |
| Garfield | 298,000 | | 100.0% | 15.91 | $40,300 | Walmart, Burlington, Marshalls, PetSmart, Ulta |
| Hackensack | 275,000 | | 99.4% | 24.27 | $66,400 | The Home Depot, Staples, Petco, 99 Ranch |
| Hazlet | 95,000 | | 100.0% | 3.70 | — | Stop & Shop(5) |
| Jersey City (Hudson Mall) | 382,000 | | 85.1% | 18.14 | $21,769 | Marshalls, Big Lots, Retro Fitness, Staples, Old Navy, National retailer (lease not commenced) |
| Jersey City (Hudson Commons) | 236,000 | | 100.0% | 13.99 | $27,758 | Lowe's, P.C. Richard & Son |
| Kearny | 118,000 | | 100.0% | 23.80 | — | LA Fitness, Marshalls, Ulta |
| Lodi (Washington Street) | 43,000 | | 100.0% | 20.13 | — | Dollar Tree |
| Manalapan | 208,000 | | 87.7% | 20.44 | — | Best Buy, Bed Bath & Beyond, Raymour & Flanigan, PetSmart, Avalon Flooring |
| Marlton | 218,000 | | 100.0% | 16.50 | $37,400 | ShopRite, Kohl's, PetSmart |
| Middletown (Town Brook Commons) | 231,000 | | 97.4% | 13.56 | $31,116 | Stop & Shop, Kohl's |
| Millburn | 104,000 | | 89.5% | 28.93 | $22,717 | Trader Joe's, CVS, PetSmart |
| Montclair | 18,000 | | 100.0% | 32.00 | $7,250 | Whole Foods Market |
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT | | |
As of June 30, 2022 | | |
| (dollars in thousands, except per sf amounts) | | |
| | | | | | | | | | | | | | | | | |
| Property | Total Square Feet (1) | Percent Leased(1) | Weighted Average ABR PSF(2) | Mortgage Debt(7) | Major Tenants |
Morris Plains (Briarcliff Commons)(6) | 176,000 | | 94.7% | 23.52 | — | Uncle Giuseppe's, Kohl's |
| North Bergen (Kennedy Commons) | 62,000 | | 100.0% | 14.65 | — | Food Bazaar |
| North Bergen (Tonnelle Commons) | 410,000 | | 100.0% | 21.92 | $99,720 | BJ's Wholesale Club, Walmart, PetSmart |
| North Plainfield (West End Commons) | 241,000 | | 99.1% | 11.73 | $24,881 | Costco, The Tile Shop, La-Z-Boy, Petco, Da Vita Dialysis |
Paramus (leased through 2033)(3) | 63,000 | | 100.0% | 49.35 | — | 24 Hour Fitness |
| Rockaway | 189,000 | | 93.1% | 14.52 | $27,548 | ShopRite, T.J. Maxx |
South Plainfield (Stelton Commons) (leased through 2039)(3) | 56,000 | | 100.0% | 21.97 | — | Staples, Party City |
| Totowa | 271,000 | | 100.0% | 18.30 | $50,800 | The Home Depot, Bed Bath & Beyond, buybuy Baby, Staples |
| Union (2445 Springfield Ave) | 232,000 | | 100.0% | 17.85 | $45,600 | The Home Depot |
| Union (West Branch Commons) | 278,000 | | 90.3% | 16.83 | — | Lowe's, Burlington |
| Watchung (Greenbrook Commons) | 170,000 | | 100.0% | 18.83 | $25,839 | BJ's Wholesale Club, Aldi (lease not commenced) |
| Woodbridge (Woodbridge Commons) | 225,000 | | 98.2% | 13.54 | $22,100 | Walmart, Charisma Furniture |
| Woodbridge (Plaza at Woodbridge) | 332,000 | | 91.9% | 19.08 | $52,947 | Best Buy, Raymour & Flanigan, Lincoln Tech, Retro Fitness, Bed Bath & Beyond and buybuy Baby |
| New York: | | | | | |
| Bronx (Gun Hill Commons) | 81,000 | | 100.0% | 36.88 | $24,434 | Aldi, Planet Fitness |
Bronx (Bruckner Commons)(6) | 396,000 | | 39.5% | 45.38 | — | ShopRite, Burlington |
| Bronx (Shops at Bruckner) | 115,000 | | 100.0% | 38.32 | $9,362 | Marshalls, Old Navy, Aldi (lease not commenced), Lot Less (lease not commenced), Five Below (lease not commenced) |
| Brooklyn (Kingswood Center) | 129,000 | | 84.3% | 35.98 | $70,374 | T.J. Maxx, Visiting Nurse Service of NY |
| Brooklyn (Kingswood Crossing) | 107,000 | | 69.5% | 41.86 | — | Target, Marshalls, Maimonides Medical |
| Buffalo (Amherst Commons) | 311,000 | | 98.1% | 10.94 | — | BJ's Wholesale Club, T.J. Maxx, Burlington, HomeGoods, LA Fitness |
Dewitt (Marshall Plaza) (leased through 2041)(3) | 46,000 | | 100.0% | 24.62 | — | Best Buy |
Freeport (Meadowbrook Commons) (leased through 2040)(3) | 44,000 | | 100.0% | 22.31 | — | Bob's Discount Furniture |
| Freeport (Freeport Commons) | 173,000 | | 100.0% | 26.32 | $43,100 | The Home Depot, Staples |
| Huntington | 207,000 | | 74.4% | 20.06 | — | ShopRite (lease not commenced), Marshalls, Old Navy, Petco |
| Inwood (Burnside Commons) | 100,000 | | 90.7% | 17.35 | — | Bingo Wholesale (lease not commenced) |
| Mt. Kisco | 189,000 | | 98.5% | 17.19 | $12,075 | Stop & Shop, Target |
New Hyde Park (leased through 2029)(3) | 101,000 | | 100.0% | 21.93 | — | Stop & Shop |
| Queens (Cross Bay Commons) | 45,000 | | 83.8% | 42.47 | — | Northwell Health |
Rochester (Henrietta) (leased through 2056)(3) | 165,000 | | 97.9% | 4.46 | — | Kohl's |
| Staten Island (Forest Commons) | 165,000 | | 96.6% | 24.83 | — | Western Beef, Planet Fitness, Mavis Discount Tire, NYC Public School |
Yonkers Gateway Center
| 448,000 | | 94.1% | 15.92 | $25,892 | Burlington, Marshalls, Homesense, Best Buy, DSW, PetSmart, Alamo Drafthouse Cinema |
| | | | | |
| | | | | |
| | | | | |
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT | | |
As of June 30, 2022 | | |
| (dollars in thousands, except per sf amounts) | | |
| | | | | | | | | | | | | | | | | |
| Property | Total Square Feet (1) | Percent Leased(1) | Weighted Average ABR PSF(2) | Mortgage Debt(7) | Major Tenants |
| | | | | |
| Pennsylvania: | | | | | |
| Bensalem (Marten Commons) | 185,000 | | 96.6% | 14.79 | — | Kohl's, Ross Dress for Less, Staples, Petco |
Broomall(6) | 169,000 | | 75.8% | 16.40 | — | Amazon Fresh, Planet Fitness, PetSmart, Nemours Children's Hospital (lease not commenced) |
| Glenolden (MacDade Commons) | 102,000 | | 100.0% | 12.92 | — | Walmart |
| Lancaster (Lincoln Plaza) | 228,000 | | 100.0% | 5.27 | — | Lowe's, Community Aid, Mattress Firm |
Springfield (leased through 2025)(3) | 41,000 | | 100.0% | 25.29 | — | PetSmart |
| Wilkes-Barre | 184,000 | | 92.5% | 13.14 | — | Bob's Discount Furniture, Ross Dress for Less, Marshalls, Petco, Wren Kitchens |
Wyomissing (leased through 2065)(3) | 76,000 | | 100.0% | 14.70 | — | LA Fitness, PetSmart |
| South Carolina: | | | | | |
Charleston (leased through 2063)(3) | 45,000 | | 100.0% | 15.10 | — | Best Buy |
| Virginia: | | | | | |
Norfolk (leased through 2069)(3) | 114,000 | | 100.0% | 7.79 | — | BJ's Wholesale Club |
| Puerto Rico: | | | | | |
| Las Catalinas | 355,000 | | 84.1% | 29.35 | $121,811 | Sector Sixty6 (lease not commenced), Forever 21, Old Navy |
Montehiedra(6) | 540,000 | | 84.2% | 20.27 | $78,479 | The Home Depot, Marshalls, Caribbean Cinemas, Tiendas Capri, Old Navy, Ralph's Food Warehouse (lease not commenced) |
| Total Retail Portfolio | 14,534,000 | | 92.5% | $19.82 | $1,667,937 | |
| INDUSTRIAL: | | | | | |
East Hanover Warehouses(9) | 1,218,000 | | 84.6% | 6.84 | $40,700 | J & J Tri-State Delivery, Foremost Groups, PCS Wireless, Fidelity Paper & Supply, Meyer Distributing, Givaudan Flavors, Reliable Tire, Nutra-Med |
| Lodi (Route 17 North) | 127,000 | | 100.0% | 9.95 | — | AAA Wholesale Group |
| Total Industrial | 1,345,000 | | 86.1% | $7.18 | $40,700 | |
| | | | | |
Massapequa, NY (Sunrise Mall) (portion leased through 2069)(4)(6)(8) | 1,228,000 | | 39.0% | 8.96 | — | Macy's, Dick's Sporting Goods, Dave & Buster's, Raymour & Flanigan, HomeGoods |
| | | | | |
| Total Urban Edge Properties | 17,107,000 | | 88.1% | $18.46 | $1,708,637 | |
(1) Percent leased is expressed as the percentage of gross leasable area subject to a lease, excluding temporary tenants. The Company excludes 132,000 sf of self-storage from the report above.
(2) Weighted average annual base rent per square foot including ground leases and executed leases for which rent has not commenced is calculated by annualizing tenants' current base rent (excluding any free rent periods), and excluding tenant reimbursements, concessions and storage rent. Excluding the ground leases where the Company is the lessor, the weighted average annual base rent per square foot for our retail portfolio is $21.86 per square foot.
(3) The Company is a lessee under a ground or building lease. The total square feet disclosed for the building will revert to the lessor upon lease expiration.
(4) We own 95% of Walnut Creek (Mt. Diablo) and 82.5% of Sunrise Mall with the remaining portions in each case owned by joint venture partners.
(5) The tenant never commenced operations at this location but continues to pay rent.
(6) Not included in the same-property pool for the purposes of calculating same-property NOI for the quarter ended June 30, 2022 and 2021.
(7) Mortgage debt balances exclude unamortized debt issuance costs.
(8) Includes the acquisition of 40 Carmans Road.
(9) Includes 151 Ridgedale Avenue and 601 Murray Road which were acquired in August 2021. These properties are included in our non-same property pool for the quarter ended June 30, 2022.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY ACQUISITIONS AND DISPOSITIONS | |
For the six months ended June 30, 2022 | | |
| (dollars in thousands) | | |
| | | | | | | | | | | | | | | | | | | | |
| 2022 Property Acquisitions: | | | | | |
| | | | | | |
| Date Acquired | Property Name | City | State | GLA | | Price |
| 2/24/2022 | 40 Carmans Road | Massapequa | NY | 12,000 | | | $ | 4,120 | |
| 6/8/2022 | The Shops at Riverwood | Hyde Park | MA | 78,000 | | | $ | 32,905 | |
| | | | | | |
| 2022 Property Dispositions: | | | | | |
| | | | | | |
| None. | | | | | | |
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS | |
| As of June 30, 2022 | | |
| (in thousands, except square footage data) | | |
| | | | | | | | | | | | | | | | | |
| ACTIVE PROJECTS | Estimated Gross Cost(1) | | Incurred as of 6/30/22 | Target Stabilization(2) | Description and status |
Bergen Town Center (Phase B)(3) | $ | 44,300 | | | $ | 2,500 | | 2Q25 | Ground-up development of an 80,000 sf medical office building for Hackensack Meridian Health on a vacant outparcel facing Route 4 |
Bergen Town Center (Phase A)(3) | 23,800 | | | 11,200 | | 2Q23 | Retenanting former Century 21 box with Kohl's |
Huntington Commons (Phase A)(3) | 22,600 | | | 19,400 | | 4Q22 | Retenanting former Kmart box with ShopRite and Marshalls |
Las Catalinas(3) | 12,900 | | | 4,500 | | 2Q23 | Retenanting former Kmart box with Sector Sixty6 |
The Outlets at Montehiedra (Phase C)(5) | 12,100 | | | 200 | | 3Q24 | Demising and retenanting former Kmart box with Ralph's Food Warehouse and Urology Hub |
Kearny Commons(3) | 11,900 | | | 11,400 | | 4Q22 | Expanding by 22,000 sf to accommodate a 10,000 sf Ulta (open) and small shops as well as adding a freestanding Starbucks (open) |
Broomall Commons (Phase B)(5) | 10,300 | | | 2,100 | | 4Q23 | Retenanting 19,000 sf former A.C. Moore with Nemours Children's Hospital and backfilling remaining 41,000 sf of former Giant box |
Hudson Mall(3) | 9,700 | | | 1,500 | | 3Q23 | Retenanting former Toys "R" Us box with national retailer |
The Outlets at Montehiedra (Phase A)(5) | 9,200 | | | 6,300 | | 1Q23 | Constructing new 14,000± sf building for Walgreens and Global Mattress and a new 3,000± sf pad for Arby's |
Shops at Bruckner (Phase B)(3) | 9,100 | | | 500 | | 2Q23 | Retenanting with Aldi and Lot Less |
Huntington Commons (Phase B)(3) | 8,500 | | | 3,100 | | 4Q23 | Center repositioning and renovations |
Burnside Commons(3) | 6,900 | | | 200 | | 4Q23 | Retenanting anchor vacancy with Bingo Wholesale |
Shops at Bruckner (Phase A)(3) | 6,200 | | | 1,800 | | 4Q22 | Relocating Jimmy Jazz to former Carter's space and retenanting former Jimmy Jazz and Danice spaces with Five Below; renovating façade and upgrading common areas |
Walnut Creek(3) | 3,500 | | | 1,900 | | 4Q23 | Retenanting former Z Gallerie with Sweetgreen (open) and remaining 4,000 sf |
Mt. Kisco Commons(3) | 3,000 | | | 2,800 | | 4Q22 | Converting former sit-down restaurant into a Chipotle (open) and another quick service restaurant |
The Plaza at Cherry Hill(3) | 2,800 | | | 400 | | 1Q23 | Relocating and expanding Total Wine |
Briarcliff Commons (Phase B)(5) | 2,700 | | | 400 | | 2Q23 | Developing new 4,000± sf pad for CityMD |
Wilkes-Barre (Phase B)(3) | 2,400 | | | 500 | | 3Q22 | Retenanting former Babies "R" Us box with Wren Kitchens (open) |
The Outlets at Montehiedra (Phase B)(5) | 2,200 | | | 100 | | 2Q24 | Developing new 6,000± sf pad for Texas Roadhouse |
Yonkers Gateway Center(3) | 1,700 | | | 100 | | 3Q23 | Retenanting end cap space with Wren Kitchens |
| | | | | |
| Total | $ | 205,800 | | (4) | $ | 70,900 | | |
| | | | | |
(1) Estimated gross cost includes the allocation of internal costs such as labor, interest and taxes.
(2) Target Stabilization reflects the first quarter in which at least 80% of the expected NOI from the project has commenced. A project achieving Target Stabilization is classified as Completed whether or not all costs have been expended and remains listed as a Completed project for one year in the table on page 30. The Target Stabilization date is an estimate and is subject to change resulting from uncertainties inherent in the development process and not wholly under the Company's control.
(3) Results from these properties are included in our same-property metrics.
(4) The estimated, unleveraged yield for total Active projects is 10% based on total estimated project costs and the incremental, unleveraged NOI directly attributable to the projects unless otherwise noted. The incremental, unleveraged NOI for Active projects excludes NOI generated outside the project scope such as the impact on future lease rollovers or on the long-term value of the property. The unleveraged yield for projects related to vacant spaces is based on the total NOI directly attributable to the project and the estimated project costs.
(5) Results from these properties are included in our same-property including redevelopment metrics.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS | |
| As of June 30, 2022 | | |
| (in thousands, except square footage data) | | |
| | | | | | | | | | | | | | | | | |
| COMPLETED PROJECTS | Estimated Gross Cost(1) | | Incurred as of 6/30/22 | Stabilization(2) | Description |
Tonnelle Commons (Phase B)(3) | $ | 3,000 | | | $ | 2,400 | | 2Q22 | Retenanted former Staples with Five Below and Skechers |
Lodi (Route 17 North)(3) | 12,600 | | | 11,500 | | 2Q22 | Converted former National Wholesale Liquidator space into 127,000± sf industrial space for AAA Wholesale Group |
Broomall Commons (Phase A)(6) | 7,300 | | | 6,200 | | 2Q22 | Retenanted 44,000± sf of the former Giant Food space with Amazon Fresh |
Briarcliff Commons (Phase A)(6) | 10,600 | | | 10,500 | | 1Q22 | Retenanted former ShopRite with Uncle Giuseppe's |
Plaza at Woodbridge(3) | 4,100 | | | 4,100 | | 1Q22 | Repurposed 82,000± sf of unused basement space into Extra Space self-storage facility |
Tonnelle Commons (Phase A)(3) | 11,000 | | | 11,000 | | 4Q21 | Added 102,000± sf CubeSmart self-storage facility on excess land |
Salem(3) | 1,500 | | | 1,500 | | 4Q21 | Retenanted former Babies "R" Us box with Fun City |
| | | | | |
| Total | $ | 50,100 | | (4) | $ | 47,200 | | | |
| | | | | | | | |
FUTURE REDEVELOPMENT(5) | Location | Opportunity |
Bergen Town Center(3) | Paramus, NJ | Develop a mix of uses including residential, hotel, and/or office; common area improvements and enhancements to improve merchandising |
Brick Commons(3) | Brick Township, NJ | Develop new pad |
Bruckner Commons(6) | Bronx, NY | Redevelop center including consideration of alternate uses |
Brunswick Commons(3) | East Brunswick, NJ | Develop new pad |
Hudson Mall(3) | Jersey City, NJ | Reposition mall with redevelopment and renovation opportunities including retail and amenity upgrades and consideration of alternate uses |
Marlton Commons(3) | Marlton, NJ | Develop new small shop space and renovate facade |
The Plaza at Cherry Hill(3) | Cherry Hill, NJ | Renovate exterior of center and common areas |
| Sunrise Mall | Massapequa, NY | Redevelop mall including consideration of alternate uses |
(1) Estimated gross cost includes the allocation of internal costs such as labor, interest and taxes.
(2) Stabilization reflects the first quarter in which at least 80% of the expected NOI from the project has commenced. A project achieving Stabilization is classified as Completed whether or not all costs have been expended and remains listed as a Completed project for one year in the table above.
(3) Results from these properties are included in our same-property metrics.
(4) The estimated unleveraged yield for Completed projects is 12% based on total estimated project costs and the incremental, unleveraged NOI directly attributable to the projects unless otherwise noted. The incremental, unleveraged NOI for Completed projects excludes NOI generated outside the project scope such as the impact on future lease rollovers or on the long-term value of the property. The unleveraged yield for projects related to vacant spaces as a result of bankruptcy is based on the total NOI directly attributable to the project and the estimated project costs.
(5) The Company has identified future redevelopment opportunities which are, or will soon be, in preliminary planning phases and as such, may not ultimately become active projects. Proceeding with these investments is subject to many factors outside of the Company's control, and it is possible that municipal or other approvals may delay or suspend our ability to proceed with such plans. The execution of these projects is discretionary and we are under no current obligation to fund these projects.
(6) Results from these properties are included in our same-property including redevelopment metrics.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| DEBT SUMMARY | |
As of June 30, 2022 and December 31, 2021 | | |
| (in thousands) | | |
| | | | | | | | | | | |
| June 30, 2022 | | December 31, 2021 |
| Secured fixed rate debt | $ | 1,548,659 | | | $ | 1,534,324 | |
| Secured variable rate debt | 159,978 | | | 161,084 | |
| Total debt | $ | 1,708,637 | | | $ | 1,695,408 | |
| | | |
| % Secured fixed rate debt | 90.6 | % | | 90.5 | % |
| % Secured variable rate debt | 9.4 | % | | 9.5 | % |
| Total | 100 | % | | 100 | % |
| | | |
| | | |
| Secured mortgage debt | $ | 1,708,637 | | | $ | 1,695,408 | |
Unsecured debt(1) | — | | | — | |
| Total debt | $ | 1,708,637 | | | $ | 1,695,408 | |
| | | |
| % Secured mortgage debt | 100 | % | | 100 | % |
| % Unsecured mortgage debt | — | | | — | |
| Total | 100 | % | | 100 | % |
| | | |
| Weighted average remaining maturity on secured mortgage debt | 4.6 years | | 4.9 years |
| Weighted average remaining maturity on unsecured debt | N/A | | N/A |
| | | |
| | | |
| Total market capitalization (see page 16) | $ | 3,572,885 | | | |
| | | |
| % Secured mortgage debt | 47.8 | % | | |
| % Unsecured debt | — | % | | |
| Total debt: Total market capitalization | 47.8 | % | | |
| | | |
| | | |
Weighted average interest rate on secured mortgage debt(2) | 4.02 | % | | 3.88 | % |
| | | |
Note: All amounts and calculations exclude unamortized debt issuance costs on mortgages payable.
(1) No amounts are currently outstanding on our unsecured $600 million line of credit. The agreement has a maturity date of January 29, 2024 with two six-month extension options. Borrowings under the agreement bear interest at LIBOR plus an applicable margin of 1.05% to 1.50% and an annual facility fee of 15 to 30 basis points based on our current leverage ratio.
(2) Weighted average interest rate is calculated based on balances outstanding at the respective dates.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| MORTGAGE DEBT SUMMARY | |
As of June 30, 2022 and December 31, 2021 | | |
| (dollars in thousands) | | |
| | | | | | | | | | | | | | | | | |
| Property | Maturity Date | Rate | June 30, 2022 | December 31, 2021 | Percent of Mortgage Debt at June 30, 2022 |
| Bergen Town Center | 4/8/2023 | 3.56 | % | $ | 300,000 | | $ | 300,000 | | 17.6 | % |
| Shops at Bruckner | 5/1/2023 | 3.90 | % | 9,362 | | 9,698 | | 0.5 | % |
| Hudson Mall | 12/1/2023 | 5.07 | % | 21,769 | | 22,154 | | 1.3 | % |
| Yonkers Gateway Center | 4/6/2024 | 4.16 | % | 25,892 | | 26,774 | | 1.5 | % |
Hudson Commons(1) | 11/15/2024 | 2.96 | % | 27,758 | | 28,034 | | 1.6 | % |
Greenbrook Commons(1) | 11/15/2024 | 2.96 | % | 25,839 | | 26,097 | | 1.5 | % |
Gun Hill Commons(1) | 12/1/2024 | 2.96 | % | 24,434 | | 24,680 | | 1.4 | % |
| Brick Commons | 12/10/2024 | 3.87 | % | 49,099 | | 49,554 | | 2.9 | % |
Plaza at Cherry Hill(2) | 6/3/2025 | 4.50 | % | 29,000 | | 28,244 | | 1.7 | % |
| West End Commons | 12/10/2025 | 3.99 | % | 24,881 | | 25,100 | | 1.5 | % |
| Las Catalinas Mall | 2/1/2026 | 4.43 | % | 121,811 | | 123,977 | | 7.1 | % |
| Town Brook Commons | 12/1/2026 | 3.78 | % | 31,116 | | 31,400 | | 1.8 | % |
| Rockaway River Commons | 12/1/2026 | 3.78 | % | 27,548 | | 27,800 | | 1.6 | % |
| Hanover Commons | 12/10/2026 | 4.03 | % | 63,000 | | 63,000 | | 3.7 | % |
| Tonnelle Commons | 4/1/2027 | 4.18 | % | 99,720 | | 100,000 | | 5.8 | % |
| Manchester Plaza | 6/1/2027 | 4.32 | % | 12,500 | | 12,500 | | 0.7 | % |
| Millburn Gateway Center | 6/1/2027 | 3.97 | % | 22,717 | | 22,944 | | 1.3 | % |
Plaza at Woodbridge(3) | 6/8/2027 | 3.31 | % | 52,947 | | 54,029 | | 3.1 | % |
| Totowa Commons | 12/1/2027 | 4.33 | % | 50,800 | | 50,800 | | 3.0 | % |
| Woodbridge Commons | 12/1/2027 | 4.36 | % | 22,100 | | 22,100 | | 1.3 | % |
| Brunswick Commons | 12/6/2027 | 4.38 | % | 63,000 | | 63,000 | | 3.7 | % |
| Rutherford Commons | 1/6/2028 | 4.49 | % | 23,000 | | 23,000 | | 1.3 | % |
| Kingswood Center | 2/6/2028 | 5.07 | % | 70,374 | | 70,815 | | 4.1 | % |
| Hackensack Commons | 3/1/2028 | 4.36 | % | 66,400 | | 66,400 | | 3.9 | % |
| East Hanover Warehouses | 12/1/2028 | 4.09 | % | 40,700 | | 40,700 | | 2.4 | % |
| Marlton Commons | 12/1/2028 | 3.86 | % | 37,400 | | 37,400 | | 2.2 | % |
| Union (Vauxhall) | 12/10/2028 | 4.01 | % | 45,600 | | 45,600 | | 2.7 | % |
| The Shops at Riverwood | 6/24/2029 | 4.25 | % | 21,466 | | — | | 1.3 | % |
| Freeport Commons | 12/10/2029 | 4.07 | % | 43,100 | | 43,100 | | 2.5 | % |
| The Outlets at Montehiedra | 6/1/2030 | 5.00 | % | 78,479 | | 79,381 | | 4.6 | % |
| Montclair | 8/15/2030 | 3.15 | % | 7,250 | | 7,250 | | 0.4 | % |
| Garfield Commons | 12/1/2030 | 4.14 | % | 40,300 | | 40,300 | | 2.4 | % |
| Woodmore Towne Centre | 1/6/2032 | 3.39 | % | 117,200 | | 117,200 | | 6.9 | % |
| Mount Kisco Commons | 11/15/2034 | 6.40 | % | 12,075 | | 12,377 | | 0.7 | % |
| Total mortgage debt | | 4.02 | % | $ | 1,708,637 | | $ | 1,695,408 | | 100.0 | % |
| Unamortized debt issuance costs | | | (8,793) | | (8,218) | | |
| Total mortgage debt, net | | | $ | 1,699,844 | | $ | 1,687,190 | | |
(1)Bears interest at one month London Interbank Offered Rate ("LIBOR") plus 190 bps.
(2)Bears interest at one month Prime Rate plus 50 bps.
(3)Bears interest at one month Secured Overnight Financing Rate (“SOFR”) plus 226 bps. The variable component of the debt is hedged with an interest rate cap agreement to limit SOFR to a maximum of 3%.
| | | | | | | | |
| URBAN EDGE PROPERTIES | | |
| DEBT MATURITY SCHEDULE | |
| As of June 30, 2022 | |
| (dollars in thousands) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| Year | Amortization | Balloon Payments | Premium/(Discount) Amortization | | Total | Weighted Average Interest rate at maturity | Percent of Debt Maturing |
2022(1) | $ | 8,131 | | $ | — | | $ | 600 | | | $ | 8,731 | | 4.3% | 0.5 | % |
| 2023 | 20,049 | | 329,436 | | 1,182 | | | 350,667 | | 3.7% | 20.5 | % |
| 2024 | 20,958 | | 143,706 | | 850 | | | 165,514 | | 3.6% | 9.7 | % |
| 2025 | 18,707 | | 52,260 | | 814 | | | 71,781 | | 4.3% | 4.2 | % |
| 2026 | 13,635 | | 218,122 | | 814 | | | 232,571 | | 4.2% | 13.6 | % |
| 2027 | 9,505 | | 306,455 | | 814 | | | 316,774 | | 4.1% | 18.5 | % |
| 2028 | 8,097 | | 264,822 | | 6 | | | 272,925 | | 4.4% | 16.0 | % |
| 2029 | 5,711 | | 57,724 | | (60) | | | 63,375 | | 4.2% | 3.7 | % |
| 2030 | 3,170 | | 101,042 | | (60) | | | 104,152 | | 4.6% | 6.1 | % |
| Thereafter | 5,185 | | 117,200 | | (238) | | | 122,147 | | 3.5% | 7.2 | % |
| Total | $ | 113,148 | | $ | 1,590,767 | | $ | 4,722 | | | $ | 1,708,637 | | 4.0% | 100 | % |
| Unamortized debt issuance costs | | (8,793) | | | |
| Total outstanding debt, net | | $ | 1,699,844 | | | |
(1) Remainder of 2022.
