QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Urban Edge Properties) | ||||||||||||||
(Urban Edge Properties LP) | ||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code: | |||||||||||
Securities registered pursuant to Section 12(b) of the Act: | |||||||||||
Title of class | Trading symbol | Name of exchange on which registered | |||||||||
x | Accelerated Filer | ☐ | Non-Accelerated Filer | ☐ | Smaller Reporting Company | Emerging Growth Company |
Large Accelerated Filer | ☐ | Accelerated Filer | ☐ | x | Smaller Reporting Company | Emerging Growth Company |
Item 1. | Financial Statements | |||||||||||||
Consolidated Financial Statements of Urban Edge Properties: | ||||||||||||||
Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 | ||||||||||||||
Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2024 and 2023 (unaudited) | ||||||||||||||
Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2024 and 2023 (unaudited) | ||||||||||||||
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (unaudited) | ||||||||||||||
Consolidated Financial Statements of Urban Edge Properties LP: | ||||||||||||||
Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 | ||||||||||||||
Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2024 and 2023 (unaudited) | ||||||||||||||
Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2024 and 2023 (unaudited) | ||||||||||||||
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (unaudited) | ||||||||||||||
Urban Edge Properties and Urban Edge Properties LP | ||||||||||||||
Notes to Consolidated Financial Statements (unaudited) | ||||||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | |||||||||||||
Item 4. | Controls and Procedures | |||||||||||||
PART II | ||||||||||||||
Item 1. | Legal Proceedings | |||||||||||||
Item 1A. | Risk Factors | |||||||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||||||||
Item 3. | Defaults Upon Senior Securities | |||||||||||||
Item 4. | Mine Safety Disclosures | |||||||||||||
Item 5. | Other Information | |||||||||||||
Item 6. | Exhibits | |||||||||||||
Signatures | ||||||||||||||
March 31, | December 31, | ||||||||||
2024 | 2023 | ||||||||||
ASSETS | |||||||||||
Real estate, at cost: | |||||||||||
Land | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Construction in progress | |||||||||||
Furniture, fixtures and equipment | |||||||||||
Total | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Real estate, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Tenant and other receivables | |||||||||||
Receivable arising from the straight-lining of rents | |||||||||||
Identified intangible assets, net of accumulated amortization of $ | |||||||||||
Deferred leasing costs, net of accumulated amortization of $ | |||||||||||
Prepaid expenses and other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Liabilities: | |||||||||||
Mortgages payable, net | $ | $ | |||||||||
Unsecured credit facility | |||||||||||
Operating lease liabilities | |||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||
Identified intangible liabilities, net of accumulated amortization of $ | |||||||||||
Total liabilities | |||||||||||
Shareholders’ equity: | |||||||||||
Common shares: $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income | |||||||||||
Accumulated earnings | |||||||||||
Noncontrolling interests: | |||||||||||
Operating partnership | |||||||||||
Consolidated subsidiaries | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
REVENUE | |||||||||||
Rental revenue | $ | $ | |||||||||
Other income | |||||||||||
Total revenue | |||||||||||
EXPENSES | |||||||||||
Depreciation and amortization | |||||||||||
Real estate taxes | |||||||||||
Property operating | |||||||||||
General and administrative | |||||||||||
Real estate impairment loss | |||||||||||
Lease expense | |||||||||||
Total expenses | |||||||||||
Gain on sale of real estate | |||||||||||
Interest income | |||||||||||
Interest and debt expense | ( | ( | |||||||||
Loss on extinguishment of debt | ( | ||||||||||
Income (loss) before income taxes | ( | ||||||||||
Income tax expense | ( | ( | |||||||||
Net income (loss) | ( | ||||||||||
Less net (income) loss attributable to NCI in: | |||||||||||
Operating partnership | ( | ||||||||||
Consolidated subsidiaries | |||||||||||
Net income (loss) attributable to common shareholders | $ | $ | ( | ||||||||
Earnings (loss) per common share - Basic: | $ | $ | ( | ||||||||
Earnings (loss) per common share - Diluted: | $ | $ | ( | ||||||||
Weighted average shares outstanding - Basic | |||||||||||
Weighted average shares outstanding - Diluted | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Effective portion of change in fair value of derivatives | ( | ||||||||||
Comprehensive income (loss) | ( | ||||||||||
Less comprehensive (income) loss attributable to NCI in: | |||||||||||
Operating partnership | ( | ||||||||||
Less net (income) loss attributable to NCI in: | |||||||||||
Operating partnership | ( | ||||||||||
Consolidated subsidiaries | |||||||||||
Comprehensive income (loss) attributable to common shareholders | $ | $ | ( |
Common Shares | Noncontrolling Interests (“NCI”) | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Operating Partnership | Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net loss attributable to common shareholders | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net loss attributable to NCI | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Limited partnership interests: | |||||||||||||||||||||||||||||||||||||||||||||||
Units redeemed for common shares | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Reallocation of NCI | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Common shares issued | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||
Dividends to common shareholders ($ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Distributions to redeemable NCI ($ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Share-based awards retained for taxes | ( | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | ( | $ | $ | $ |
Common Shares | Noncontrolling Interests (“NCI”) | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Earnings (Deficit) | Operating Partnership | Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to common shareholders | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to NCI | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Limited partnership interests: | |||||||||||||||||||||||||||||||||||||||||||||||
Units redeemed for common shares | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Reallocation of NCI | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Common shares issued | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||
Dividends to common shareholders ($ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Distributions to redeemable NCI ($ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Issuance of accrued LTIP units | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Share-based awards retained for taxes | ( | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2024 | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Gain on sale of real estate | ( | ( | |||||||||
Real estate impairment loss | |||||||||||
Loss on extinguishment of debt | |||||||||||
Amortization of below market leases, net | ( | ( | |||||||||
Noncash lease expense | |||||||||||
Straight-lining of rent | ( | ( | |||||||||
Share-based compensation expense | |||||||||||
Change in operating assets and liabilities: | |||||||||||
Tenant and other receivables | ( | ||||||||||
Deferred leasing costs | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Lease liabilities | ( | ( | |||||||||
Accounts payable, accrued expenses and other liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Real estate development and capital improvements | ( | ( | |||||||||
Proceeds from sale of real estate | |||||||||||
Acquisitions of real estate | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Debt repayments | ( | ( | |||||||||
Dividends to common shareholders | ( | ( | |||||||||
Distributions to redeemable noncontrolling interests | ( | ( | |||||||||
Taxes withheld for vested restricted shares | ( | ( | |||||||||
Contributions from noncontrolling interests | |||||||||||
Proceeds from mortgage loan borrowings | |||||||||||
Debt issuance costs | ( | ( | |||||||||
Proceeds related to the issuance of common shares | |||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net decrease in cash and cash equivalents and restricted cash | ( | ( | |||||||||
Cash and cash equivalents and restricted cash at beginning of period | |||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
Cash payments for interest, net of amounts capitalized of $ | $ | $ | |||||||||
Cash payments for income taxes | |||||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||
Accrued capital expenditures included in accounts payable and accrued expenses | |||||||||||
Write-off of fully depreciated and impaired assets | |||||||||||
Transfer of assets held for sale included in prepaid expenses and other assets | |||||||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||
Cash and cash equivalents at beginning of period | $ | $ | |||||||||
Restricted cash at beginning of period | |||||||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | $ | |||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Restricted cash at end of period | |||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ |
March 31, | December 31, | ||||||||||
2024 | 2023 | ||||||||||
ASSETS | |||||||||||
Real estate, at cost: | |||||||||||
Land | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Construction in progress | |||||||||||
Furniture, fixtures and equipment | |||||||||||
Total | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Real estate, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Tenant and other receivables | |||||||||||
Receivable arising from the straight-lining of rents | |||||||||||
Identified intangible assets, net of accumulated amortization of $ | |||||||||||
Deferred leasing costs, net of accumulated amortization of $ | |||||||||||
Prepaid expenses and other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Liabilities: | |||||||||||
Mortgages payable, net | $ | $ | |||||||||
Unsecured credit facility | |||||||||||
Operating lease liabilities | |||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||
Identified intangible liabilities, net of accumulated amortization of $ | |||||||||||
Total liabilities | |||||||||||
Equity: | |||||||||||
Partners’ capital: | |||||||||||
General partner: | |||||||||||
Limited partners: | |||||||||||
Accumulated other comprehensive income | |||||||||||
Accumulated earnings | |||||||||||
Total partners’ capital | |||||||||||
Noncontrolling interest in consolidated subsidiaries | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
REVENUE | |||||||||||
Rental revenue | $ | $ | |||||||||
Other income | |||||||||||
Total revenue | |||||||||||
EXPENSES | |||||||||||
Depreciation and amortization | |||||||||||
Real estate taxes | |||||||||||
Property operating | |||||||||||
General and administrative | |||||||||||
Real estate impairment loss | |||||||||||
Lease expense | |||||||||||
Total expenses | |||||||||||
Gain on sale of real estate | |||||||||||
Interest income | |||||||||||
Interest and debt expense | ( | ( | |||||||||
Loss on extinguishment of debt | ( | ||||||||||
Income (loss) before income taxes | ( | ||||||||||
Income tax expense | ( | ( | |||||||||
Net income (loss) | ( | ||||||||||
Less net loss attributable to NCI in consolidated subsidiaries | |||||||||||
Net income (loss) attributable to unitholders | $ | $ | ( | ||||||||
Earnings (loss) per unit - Basic: | $ | $ | ( | ||||||||
Earnings (loss) per unit - Diluted: | $ | $ | ( | ||||||||
Weighted average units outstanding - Basic | |||||||||||
Weighted average units outstanding - Diluted | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Effective portion of change in fair value of derivatives | ( | ||||||||||
Comprehensive income (loss) | ( | ||||||||||
Less net loss attributable to NCI in consolidated subsidiaries | |||||||||||
Comprehensive income (loss) attributable to unitholders | $ | $ | ( |
Total Shares | General Partner | Total Units | Limited Partners(1) | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | NCI in Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Net loss attributable to unitholders | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Net loss attributable to NCI | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||
Equity redemption of OP units | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Reallocation of NCI | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Distributions to Partners ($ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Share-based awards retained for taxes | ( | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | ( | $ | $ |
Total Shares | General Partner | Total Units | Limited Partners(2) | Accumulated Other Comprehensive Income | Accumulated Earnings (Deficit) | NCI in Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Net income attributable to unitholders | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net loss attributable to NCI | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||
Equity redemption of OP units | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interests | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Distributions to Partners ($ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Issuance of accrued LTIP units | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Share-based awards retained for taxes | ( | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2024 | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Gain on sale of real estate | ( | ( | |||||||||
Real estate impairment loss | |||||||||||
Loss on extinguishment of debt | |||||||||||
Amortization of below market leases, net | ( | ( | |||||||||
Noncash lease expense | |||||||||||
Straight-lining of rent | ( | ( | |||||||||
Share-based compensation expense | |||||||||||
Change in operating assets and liabilities: | |||||||||||
Tenant and other receivables | ( | ||||||||||
Deferred leasing costs | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Lease liabilities | ( | ( | |||||||||
Accounts payable, accrued expenses and other liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Real estate development and capital improvements | ( | ( | |||||||||
Proceeds from sale of real estate | |||||||||||
Acquisitions of real estate | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Debt repayments | ( | ( | |||||||||
Distributions to partners | ( | ( | |||||||||
Taxes withheld for vested restricted units | ( | ( | |||||||||
Contributions from noncontrolling interests | |||||||||||
Proceeds from mortgage loan borrowings | |||||||||||
Debt issuance costs | ( | ( | |||||||||
Proceeds related to the issuance of common shares | |||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net decrease in cash and cash equivalents and restricted cash | ( | ( | |||||||||
Cash and cash equivalents and restricted cash at beginning of period | |||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
Cash payments for interest, net of amounts capitalized of $ | $ | $ | |||||||||
Cash payments for income taxes | |||||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||
Accrued capital expenditures included in accounts payable and accrued expenses | |||||||||||
Write-off of fully depreciated and impaired assets | |||||||||||
Transfer of assets held for sale included in prepaid expenses and other assets | |||||||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||
Cash and cash equivalents at beginning of period | $ | $ | |||||||||
Restricted cash at beginning of period | |||||||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | $ | |||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Restricted cash at end of period | |||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ |
Date Purchased | Property Name | City | State | Square Feet | Purchase Price(1) (in thousands) | |||||||||||||||||||||||||||
February 8, 2024 | Heritage Square | Watchung | NJ | $ | ||||||||||||||||||||||||||||
(amounts in thousands) Property Name | Land | Buildings and Improvements | Identified Intangible Assets(1) | Identified Intangible Liabilities(1) | Total Purchase Price | |||||||||||||||||||||||||||
Heritage Square | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
(Amounts in thousands) | Below-Market | Above-Market | In-Place Lease | |||||||||||||||||
Year | Operating Lease Amortization | Operating Lease Amortization | Amortization | |||||||||||||||||
2024(1) | $ | $ | ( | $ | ( | |||||||||||||||
2025 | ( | ( | ||||||||||||||||||
2026 | ( | ( | ||||||||||||||||||
2027 | ( | ( | ||||||||||||||||||
2028 | ( | ( | ||||||||||||||||||
2029 | ( | ( |
(Amounts in thousands) | Maturity | Interest Rate at March 31, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Mortgages secured by: | ||||||||||||||||||||||||||
Variable rate | ||||||||||||||||||||||||||
Hudson Commons(1) | 11/15/2024 | $ | $ | |||||||||||||||||||||||
Greenbrook Commons(1) | 11/15/2024 | |||||||||||||||||||||||||
Gun Hill Commons(1) | 12/1/2024 | |||||||||||||||||||||||||
Plaza at Woodbridge(2) | 6/8/2027 | |||||||||||||||||||||||||
Total variable rate debt | ||||||||||||||||||||||||||
Fixed rate | ||||||||||||||||||||||||||
Brick Commons | 12/10/2024 | |||||||||||||||||||||||||
West End Commons | 12/10/2025 | |||||||||||||||||||||||||
Town Brook Commons | 12/1/2026 | |||||||||||||||||||||||||
Rockaway River Commons | 12/1/2026 | |||||||||||||||||||||||||
Hanover Commons | 12/10/2026 | |||||||||||||||||||||||||
Tonnelle Commons | 4/1/2027 | |||||||||||||||||||||||||
Manchester Plaza | 6/1/2027 | |||||||||||||||||||||||||
Millburn Gateway Center | 6/1/2027 | |||||||||||||||||||||||||
Totowa Commons | 12/1/2027 | |||||||||||||||||||||||||
Woodbridge Commons | 12/1/2027 | |||||||||||||||||||||||||
Brunswick Commons | 12/6/2027 | |||||||||||||||||||||||||
Rutherford Commons | 1/6/2028 | |||||||||||||||||||||||||
Kingswood Center(3) | 2/6/2028 | |||||||||||||||||||||||||
Hackensack Commons | 3/1/2028 | |||||||||||||||||||||||||
Marlton Commons | 12/1/2028 | |||||||||||||||||||||||||
Union (Vauxhall) | 12/10/2028 | |||||||||||||||||||||||||
Yonkers Gateway Center(4) | 4/10/2029 | |||||||||||||||||||||||||
The Shops at Riverwood | 6/24/2029 | |||||||||||||||||||||||||
Shops at Bruckner | 7/1/2029 | |||||||||||||||||||||||||
Huntington Commons | 12/5/2029 | |||||||||||||||||||||||||
Bergen Town Center | 4/10/2030 | |||||||||||||||||||||||||
The Outlets at Montehiedra | 6/1/2030 | |||||||||||||||||||||||||
Montclair(5) | 8/15/2030 | |||||||||||||||||||||||||
Garfield Commons | 12/1/2030 | |||||||||||||||||||||||||
Woodmore Towne Centre | 1/6/2032 | |||||||||||||||||||||||||
Newington Commons | 7/1/2033 | |||||||||||||||||||||||||
Shops at Caguas | 8/1/2033 | |||||||||||||||||||||||||
Mount Kisco Commons | 11/15/2034 | |||||||||||||||||||||||||
Total fixed rate debt | ||||||||||||||||||||||||||
Total mortgages payable | ||||||||||||||||||||||||||
Unamortized debt issuance costs | ( | ( | ||||||||||||||||||||||||
Total mortgages payable, net | $ | $ | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||
Year Ending December 31, | ||||||||
2024(1) | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
2029 | ||||||||
Thereafter |
Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2024 | 2023 | |||||||||
Rental Revenue | |||||||||||
Fixed lease revenue | $ | $ | |||||||||
Variable lease revenue(1) | |||||||||||
Total rental revenue | $ | $ |
As of March 31, 2024 | ||||||||||||||||||||||||||
(Amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Interest rate cap and swap(1) | $ | $ | $ | $ | ||||||||||||||||||||||
As of December 31, 2023 | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Interest rate cap and swap(1) | $ | $ | $ | $ | ||||||||||||||||||||||
(Amounts in thousands) | As of March 31, 2024 | |||||||||||||||||||||||||||||||||||||
Hedged Instrument | Fair Value | Notional Amount | Spread | Interest Rate | Effective Interest Rate | Expiration | ||||||||||||||||||||||||||||||||
Plaza at Woodbridge interest rate cap | $ | $ | SOFR + | 7/1/2025 | ||||||||||||||||||||||||||||||||||
Montclair interest rate swap | SOFR + | 8/15/2030 |
As of December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Hedged Instrument | Fair Value | Notional Amount | Spread | Interest Rate | Effective Interest Rate | Expiration | ||||||||||||||||||||||||||||||||
Plaza at Woodbridge interest rate cap | $ | $ | SOFR + | 7/1/2025 | ||||||||||||||||||||||||||||||||||
Montclair interest rate swap | SOFR + | 8/15/2030 |
Unrealized Gain (Loss) Recognized in OCI on Derivatives | ||||||||||||||
(Amounts in thousands) | Three Months Ended March 31, | |||||||||||||
Hedged Instrument | 2024 | 2023 | ||||||||||||
Plaza at Woodbridge interest rate cap | $ | $ | ( | |||||||||||
Montclair interest rate swap | ( | |||||||||||||
Total | $ | $ | ( |
As of March 31, 2024 | As of December 31, 2023 | |||||||||||||||||||||||||
(Amounts in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||
Mortgages payable(1) | $ | $ | $ | $ | ||||||||||||||||||||||
Unsecured credit facility |
Balance at | |||||||||||
(Amounts in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Deferred tax asset, net | $ | $ | |||||||||
Other assets | |||||||||||
Deferred financing costs, net of accumulated amortization of $ | |||||||||||
Finance lease right-of-use asset | |||||||||||
Real estate held for sale | |||||||||||
Prepaid expenses: | |||||||||||
Real estate taxes | |||||||||||
Insurance | |||||||||||
Licenses/fees | |||||||||||
Total prepaid expenses and other assets | $ | $ | |||||||||
Balance at | |||||||||||
(Amounts in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Accrued capital expenditures and leasing costs | $ | $ | |||||||||
Deferred tenant revenue | |||||||||||
Accrued interest payable | |||||||||||
Security deposits | |||||||||||
Other liabilities and accrued expenses | |||||||||||
Finance lease liability | |||||||||||
Accrued payroll expenses | |||||||||||
Total accounts payable, accrued expenses and other liabilities | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2024 | 2023 | |||||||||
Interest expense | $ | $ | |||||||||
Amortization of deferred financing costs | |||||||||||
Total interest and debt expense | $ | $ |
Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2024 | 2023 | |||||||||
Share-based compensation expense components: | |||||||||||
Time-based LTIP expense(1) | $ | $ | |||||||||
Performance-based LTIP expense(2) | |||||||||||
Restricted share expense | |||||||||||
Deferred share unit (“DSU”) expense | |||||||||||
Stock option expense | |||||||||||
Total Share-based compensation expense | $ | $ |
Three Months Ended March 31, | |||||||||||
(Amounts in thousands, except per share amounts) | 2024 | 2023 | |||||||||
Numerator: | |||||||||||
Net income (loss) attributable to common shareholders | $ | $ | ( | ||||||||
Less: (earnings) loss allocated to unvested participating securities | ( | ||||||||||
Net income (loss) available for common shareholders - basic | $ | $ | ( | ||||||||
Impact of assumed conversions: | |||||||||||
OP and LTIP Units | |||||||||||
Net income (loss) available for common shareholders - dilutive | $ | $ | ( | ||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding - basic | |||||||||||
Effect of dilutive securities(1): | |||||||||||
Restricted share awards | |||||||||||
Assumed conversion of OP and LTIP Units | |||||||||||
Weighted average common shares outstanding - diluted | |||||||||||
Earnings per share available to common shareholders: | |||||||||||
Earnings (loss) per common share - Basic | $ | $ | ( | ||||||||
Earnings (loss) per common share - Diluted | $ | $ | ( |
Three Months Ended March 31, | |||||||||||
(Amounts in thousands, except per unit amounts) | 2024 | 2023 | |||||||||
Numerator: | |||||||||||
Net income (loss) attributable to unitholders | $ | $ | ( | ||||||||
Less: net (income) loss attributable to participating securities | ( | ||||||||||
Net income (loss) available for unitholders | $ | $ | ( | ||||||||
Denominator: | |||||||||||
Weighted average units outstanding - basic | |||||||||||
Effect of dilutive securities issued by Urban Edge | |||||||||||
Unvested LTIP Units | |||||||||||
Weighted average units outstanding - diluted | |||||||||||
Earnings per unit available to unitholders: | |||||||||||
Earnings (loss) per unit - Basic | $ | $ | ( | ||||||||
Earnings (loss) per unit - Diluted | $ | $ | ( |
Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2024 | 2023 | |||||||||
Net income (loss) | $ | 2,445 | $ | (20,146) | |||||||
FFO applicable to diluted common shareholders(1) | 39,050 | 38,602 | |||||||||
NOI(1) | 66,692 | 61,146 | |||||||||
Same-property NOI(1) | 54,673 | 53,498 |
Three Months Ended March 31, | |||||||||||||||||
(Amounts in thousands) | 2024 | 2023 | $ Change | ||||||||||||||
Total revenue | $ | 109,626 | $ | 99,441 | $ | 10,185 | |||||||||||
Depreciation and amortization | 38,574 | 25,084 | 13,490 | ||||||||||||||
Real estate taxes | 17,003 | 15,677 | 1,326 | ||||||||||||||
Property operating expenses | 20,506 | 17,426 | 3,080 | ||||||||||||||
Real estate impairment loss | — | 34,055 | (34,055) | ||||||||||||||
Gain on sale of real estate | 1,902 | 356 | 1,546 | ||||||||||||||
Interest and debt expense | 20,577 | 15,293 | 5,284 | ||||||||||||||
Loss on extinguishment of debt | 272 | — | 272 | ||||||||||||||
Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2024 | 2023 | |||||||||
Net income (loss) | $ | 2,445 | $ | (20,146) | |||||||
Other expense | 225 | 226 | |||||||||
Depreciation and amortization | 38,574 | 25,084 | |||||||||
General and administrative expense | 9,046 | 9,058 | |||||||||
Gain on sale of real estate | (1,902) | (356) | |||||||||
Interest income | (688) | (511) | |||||||||
Interest and debt expense | 20,577 | 15,293 | |||||||||
Loss on extinguishment of debt | 272 | — | |||||||||
Income tax expense | 665 | 706 | |||||||||
Real estate impairment loss | — | 34,055 | |||||||||
Non-cash revenue and expenses | (2,522) | (2,263) | |||||||||
NOI | 66,692 | 61,146 | |||||||||
Adjustments: | |||||||||||
Non-same property NOI and other(1) | (12,494) | (8,654) | |||||||||
Sunrise Mall net operating loss | 522 | 1,014 | |||||||||
Tenant bankruptcy settlement income and lease termination income | (47) | (8) | |||||||||
Same-property NOI | $ | 54,673 | $ | 53,498 | |||||||
NOI related to properties being redeveloped | 5,813 | 4,803 | |||||||||
Same-property NOI including properties in redevelopment | $ | 60,486 | $ | 58,301 |
Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2024 | 2023 | |||||||||
Net income (loss) | $ | 2,445 | $ | (20,146) | |||||||
Less net (income) loss attributable to noncontrolling interests in: | |||||||||||
Operating partnership | (118) | 788 | |||||||||
Consolidated subsidiaries | 276 | 240 | |||||||||
Net income (loss) attributable to common shareholders | 2,603 | (19,118) | |||||||||
Adjustments: | |||||||||||
Rental property depreciation and amortization | 38,231 | 24,809 | |||||||||
Limited partnership interests in operating partnership(1) | 118 | (788) | |||||||||
Gain on sale of real estate(2) | (1,902) | (356) | |||||||||
Real estate impairment loss(3) | — | 34,055 | |||||||||
FFO applicable to diluted common shareholders | $ | 39,050 | $ | 38,602 |
Three Months Ended March 31, | |||||||||||||||||
(Amounts in thousands) | 2024 | 2023 | $ Change | ||||||||||||||
Net cash provided by operating activities | $ | 22,922 | $ | 29,422 | $ | (6,500) | |||||||||||
Net cash used in investing activities | (44,302) | (22,797) | (21,505) | ||||||||||||||
Net cash used in financing activities | (57,817) | (24,213) | (33,604) |
Three Months Ended March 31, | ||||||||||||||
(Amounts in thousands) | 2024 | 2023 | ||||||||||||
Capital expenditures: | ||||||||||||||
Development and redevelopment costs | $ | 12,246 | $ | 15,515 | ||||||||||
Capital improvements | 6,029 | 6,683 | ||||||||||||
Tenant improvements and allowances | 1,919 | 1,516 | ||||||||||||
Total capital expenditures | $ | 20,194 | $ | 23,714 |
2024 | 2023 | ||||||||||||||||||||||||||||
(Amounts in thousands) | March 31, Balance | Weighted Average Interest Rate | Effect of 1% Change in Base Rates | December 31, Balance | Weighted Average Interest Rate | ||||||||||||||||||||||||
Variable rate debt | $ | 204,938 | 6.21% | $ | 2,049 | $ | 280,969 | 6.53% | |||||||||||||||||||||
Fixed rate debt | 1,486,410 | 4.95% | — | (2) | 1,462,766 | 4.88% | |||||||||||||||||||||||
$ | 1,691,348 | (1) | $ | 2,049 | $ | 1,743,735 | (1) |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs(1) | ||||||||||||||||||||||
January 1, 2024 - January 31, 2024 | — | $ | — | — | $ | 145,900,000 | ||||||||||||||||||||
February 1, 2024 - February 29, 2024 | 11,117 | (2) | 17.66 | — | $ | 145,900,000 | ||||||||||||||||||||
March 1, 2024 - March 31, 2024 | — | — | — | $ | 145,900,000 | |||||||||||||||||||||
Total | 11,117 | $ | 17.66 | — |
Period | (a) Total Number of Units Purchased | (b) Average Price Paid per Unit | (c) Total Number of Units Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Units that May Yet be Purchased Under the Plans or Programs | ||||||||||||||||||||||
January 1, 2024 - January 31, 2024 | — | $ | — | — | $ | — | ||||||||||||||||||||
February 1, 2024 - February 29, 2024 | 11,117 | (1) | 17.66 | — | $ | — | ||||||||||||||||||||
March 1, 2024 - March 31, 2024 | — | — | — | $ | — | |||||||||||||||||||||
Total | 11,117 | $ | 17.66 | — |
Exhibit Number | Exhibit Description | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema | |||||||
101.CAL* | Inline XBRL Extension Calculation Linkbase | |||||||
101.LAB* | Inline XBRL Extension Labels Linkbase | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase | |||||||
104* | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*) |
URBAN EDGE PROPERTIES | |||||
(Registrant) | |||||
/s/ Mark Langer | |||||
Mark Langer, Chief Financial Officer | |||||
Date: May 7, 2024 | |||||
URBAN EDGE PROPERTIES LP | |||||
By: Urban Edge Properties, General Partner | |||||
/s/ Mark Langer | |||||
Mark Langer, Chief Financial Officer | |||||
Date: May 7, 2024 | |||||
May 7, 2024 | ||||||||
/s/ Jeffrey S. Olson | ||||||||
Jeffrey S. Olson | ||||||||
Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties |
May 7, 2024 | ||||||||
/s/ Mark Langer | ||||||||
Mark Langer | ||||||||
Chief Financial Officer of Urban Edge Properties |
May 7, 2024 | ||||||||
/s/ Jeffrey S. Olson | ||||||||
Jeffrey S. Olson | ||||||||
Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties, general partner of Urban Edge Properties LP |
May 7, 2024 | ||||||||
/s/ Mark Langer | ||||||||
Mark Langer | ||||||||
Chief Financial Officer of Urban Edge Properties, general partner of Urban Edge Properties LP |
May 7, 2024 | /s/ Jeffrey S. Olson | ||||||||||
Name: | Jeffrey S. Olson | ||||||||||
Title: | Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties | ||||||||||
May 7, 2024 | /s/ Mark Langer | ||||||||||
Name: | Mark Langer | ||||||||||
Title: | Chief Financial Officer of Urban Edge Properties |
May 7, 2024 | /s/ Jeffrey S. Olson | ||||||||||
Name: | Jeffrey S. Olson | ||||||||||
Title: | Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties, general partner of Urban Edge Properties LP | ||||||||||
May 7, 2024 | /s/ Mark Langer | ||||||||||
Name: | Mark Langer | ||||||||||
Title: | Chief Financial Officer of Urban Edge Properties, general partner of Urban Edge Properties LP |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accumulated depreciation, identifiable intangible assets | $ 55,976 | $ 51,399 |
Accumulated amortization, deferred leasing costs | 21,074 | 21,428 |
Accumulated amortization, identified intangible liabilities | $ 46,397 | $ 46,610 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares, issued (in shares) | 118,815,093 | 118,815,093 |
Common stock, shares, outstanding (in shares) | 117,652,656 | 117,652,656 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands |
Total |
Urban Edge Properties LP |
Urban Edge Properties LP
Accumulated Earnings (Deficit)
|
Urban Edge Properties LP
NCI in Consolidated Subsidiaries
|
Urban Edge Properties LP
General Partner
|
Urban Edge Properties LP
Limited Partners
|
Common Shares |
Additional Paid-In Capital |
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Urban Edge Properties LP
|
Accumulated Earnings (Deficit) |
Accumulated Earnings (Deficit)
Urban Edge Properties LP
|
Operating Partnership |
NCI in Consolidated Subsidiaries |
|||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2022 | 117,450,951 | ||||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 117,450,951 | 4,713,558 | |||||||||||||||||
Beginning balance at Dec. 31, 2022 | $ 1,030,106 | $ 1,030,106 | $ (38,705) | $ 13,906 | $ 1,012,466 | $ 41,810 | [1] | $ 1,173 | $ 1,011,293 | $ 629 | $ 629 | $ (36,104) | $ 39,209 | $ 13,906 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income (loss) attributable to common shareholders/unitholders | (19,118) | (19,906) | (19,906) | (19,118) | |||||||||||||||
Net loss attributable to NCI | (1,028) | (240) | (240) | (788) | (240) | ||||||||||||||
Other comprehensive income | (300) | (300) | (288) | (288) | $ (12) | (12) | |||||||||||||
Common units issued as a result of common shares issued by Urban Edge (in shares) | 107,936 | 352,943 | |||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | 0 | (22) | $ 22 | ||||||||||||||||
Units redeemed for common shares (in shares) | 20,000 | (20,000) | 20,000 | ||||||||||||||||
Units redeemed for common shares | $ 322 | 322 | $ 161 | $ 161 | [1] | 161 | 161 | ||||||||||||
Repurchase of common shares (in shares) | 0 | ||||||||||||||||||
Reallocation of NCI | $ (322) | (322) | (1,108) | 786 | [1] | (1,108) | 786 | ||||||||||||
Common shares issued (in shares) | 107,936 | ||||||||||||||||||
Common shares issued | 0 | $ 1 | 21 | (22) | |||||||||||||||
Dividends to common shareholders | (18,790) | (18,790) | |||||||||||||||||
Distributions to redeemable NCI | (809) | (809) | |||||||||||||||||
Distributions to Partners | (19,599) | (19,599) | |||||||||||||||||
Contributions from noncontrolling interests | 558 | 558 | 558 | ||||||||||||||||
Share-based compensation expense | 2,007 | 2,007 | $ 292 | $ 1,715 | [1] | 292 | 1,715 | ||||||||||||
Share-based awards retained for taxes (in shares) | (7,637) | (7,637) | |||||||||||||||||
Share-based awards retained for taxes | (137) | (137) | $ (137) | (137) | |||||||||||||||
Ending balance (in shares) at Mar. 31, 2023 | 117,571,250 | ||||||||||||||||||
Ending balance (in shares) at Mar. 31, 2023 | 117,571,250 | 5,046,501 | |||||||||||||||||
Ending balance at Mar. 31, 2023 | $ 992,489 | $ 992,489 | (78,244) | 14,224 | $ 1,011,696 | $ 44,472 | [1] | $ 1,174 | 1,010,522 | 341 | 341 | (74,034) | 40,262 | 14,224 | |||||
Beginning balance (in shares) at Dec. 31, 2023 | 117,652,656 | 117,652,656 | 117,652,656 | ||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 117,652,656 | 5,659,781 | |||||||||||||||||
Beginning balance at Dec. 31, 2023 | $ 1,221,428 | $ 1,221,428 | 143,157 | 15,383 | $ 1,013,117 | $ 49,311 | [2] | $ 1,175 | 1,011,942 | 460 | 460 | 137,113 | 55,355 | 15,383 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income (loss) attributable to common shareholders/unitholders | 2,603 | 2,721 | 2,721 | 2,603 | |||||||||||||||
Net loss attributable to NCI | (158) | (276) | (276) | 118 | (276) | ||||||||||||||
Other comprehensive income | 293 | 293 | 279 | 279 | $ 14 | 14 | |||||||||||||
Common units issued as a result of common shares issued by Urban Edge (in shares) | 1,141,221 | 928,122 | |||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | 17,229 | (23) | $ 17,252 | ||||||||||||||||
Units redeemed for common shares (in shares) | 32,333 | (32,333) | 32,333 | ||||||||||||||||
Units redeemed for common shares | $ 608 | 608 | $ 304 | $ 304 | [2] | 304 | 304 | ||||||||||||
Repurchase of common shares (in shares) | 0 | ||||||||||||||||||
Reallocation of NCI | $ (608) | (608) | (6,819) | 6,211 | [2] | (6,819) | 6,211 | ||||||||||||
Common shares issued (in shares) | 1,141,221 | ||||||||||||||||||
Common shares issued | 17,229 | $ 11 | 17,241 | (23) | |||||||||||||||
Dividends to common shareholders | (20,180) | (20,180) | |||||||||||||||||
Distributions to redeemable NCI | (1,279) | (1,279) | |||||||||||||||||
Distributions to Partners | (21,459) | (21,459) | |||||||||||||||||
Share-based compensation expense | 2,421 | 2,421 | $ 237 | 2,184 | [2] | 237 | 2,184 | ||||||||||||
Issuance of accrued LTIP units | 221 | 221 | $ 221 | 221 | |||||||||||||||
Share-based awards retained for taxes (in shares) | (11,117) | (11,117) | |||||||||||||||||
Share-based awards retained for taxes | $ (195) | $ (195) | $ (195) | (195) | |||||||||||||||
Ending balance (in shares) at Mar. 31, 2024 | 117,652,656 | 118,815,093 | 118,815,093 | ||||||||||||||||
Ending balance (in shares) at Mar. 31, 2024 | 118,815,093 | 6,555,570 | |||||||||||||||||
Ending balance at Mar. 31, 2024 | $ 1,222,383 | $ 1,222,383 | $ 124,410 | $ 15,107 | $ 1,023,896 | $ 58,231 | [2] | $ 1,186 | $ 1,022,710 | $ 739 | $ 739 | $ 119,513 | $ 63,128 | $ 15,107 | |||||
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Distributions to redeemable NCI (in dollars per unit) | $ 0.17 | $ 0.16 |
Accumulated Earnings (Deficit) | Urban Edge Properties LP | ||
Dividends on common shares (in dollars per share) | 0.17 | 0.16 |
Accumulated Earnings (Deficit) | ||
Dividends on common shares (in dollars per share) | 0.17 | 0.16 |
Operating Partnership | ||
Distributions to redeemable NCI (in dollars per unit) | $ 0.17 | $ 0.16 |
Operating Partnership | Limited Partners | Urban Edge Properties LP | ||
Noncontrolling interest percentage | 5.20% | 4.10% |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Capitalized interest | $ 2,678 | $ 2,669 |
Urban Edge Properties LP | ||
Capitalized interest | $ 2,678 | $ 2,669 |
CONSOLIDATED BALANCE SHEETS - UELP (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accumulated depreciation, identifiable intangible assets | $ 55,976 | $ 51,399 |
Accumulated amortization, deferred leasing costs | 21,074 | 21,428 |
Accumulated amortization, identified intangible liabilities | $ 46,397 | $ 46,610 |
Common stock, shares, outstanding (in shares) | 117,652,656 | 117,652,656 |
Urban Edge Properties LP | ||
Accumulated depreciation, identifiable intangible assets | $ 55,976 | $ 51,399 |
Accumulated amortization, deferred leasing costs | 21,074 | 21,428 |
Accumulated amortization, identified intangible liabilities | $ 46,397 | $ 46,610 |
Common stock, shares, outstanding (in shares) | 118,815,093 | 117,652,656 |
Limited Partners, units outstanding (in units) | 6,555,570 | 5,659,781 |
ORGANIZATION |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Urban Edge Properties (“UE”, “Urban Edge” or the “Company”) (NYSE: UE) is a Maryland real estate investment trust focused on owning, managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the Washington, D.C. to Boston corridor. Urban Edge Properties LP (“UELP” or the “Operating Partnership”) is a Delaware limited partnership formed to serve as UE’s majority-owned partnership subsidiary and to own, through affiliates, all of the Company’s real estate properties and other assets. Unless the context otherwise requires, references to “we”, “us” and “our” refer to Urban Edge Properties and UELP and their consolidated entities/subsidiaries. The Operating Partnership’s capital includes general and common limited partnership interests in the operating partnership (“OP Units”). As of March 31, 2024, Urban Edge owned approximately 94.8% of the outstanding common OP Units with the remaining limited OP Units held by members of management, Urban Edge’s Board of Trustees, and contributors of property interests acquired. Urban Edge serves as the sole general partner of the Operating Partnership. The third-party unitholders have limited rights over the Operating Partnership such that they do not have characteristics of a controlling financial interest. As such, the Operating Partnership is considered a variable interest entity (“VIE”), and the Company is the primary beneficiary which consolidates it. The Company’s only investment is the Operating Partnership. The VIE’s assets can be used for purposes other than the settlement of the VIE’s obligations and the Company’s partnership interest is considered a majority voting interest. As of March 31, 2024, our portfolio consisted of 71 shopping centers, two outlet centers, two malls and one industrial building totaling approximately 17.1 million square feet (“sf”), which is inclusive of a 95% controlling interest in our property in Walnut Creek, CA (Mt. Diablo), and an 82.5% controlling interest in Sunrise Mall, in Massapequa, NY.
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BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions of Form 10-Q. Certain information and footnote disclosures included in our annual financial statements have been condensed or omitted. In the opinion of management, the consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company and the Operating Partnership and the results of operations and cash flows for the interim periods presented. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. Accordingly, these consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (“SEC”). The consolidated balance sheets as of March 31, 2024 and December 31, 2023 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. As of March 31, 2024 and December 31, 2023, excluding the Operating Partnership, we consolidated two VIEs with total assets of $43.6 million and $47.2 million, respectively, and total liabilities of $17.3 million and $20.3 million, respectively. The consolidated statements of income and comprehensive income for the three months ended March 31, 2024 and 2023, include the consolidated accounts of the Company, the Operating Partnership and the two VIEs. All intercompany transactions have been eliminated in consolidation. Our primary business is the ownership, management, acquisition, development, and redevelopment of retail shopping centers and malls. We do not distinguish from our primary business or group our operations on a geographical basis for purposes of measuring performance. The Company’s Chief Operating Decision Maker (“CODM”) reviews operating and financial information at the individual operating segment. We aggregate all of our properties into one reportable segment due to their similarities with regard to the nature and economics of the properties, tenants and operations, as well as long-term average financial performance. None of our tenants accounted for more than 10% of our revenue or property operating income as of March 31, 2024.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Real Estate — Real estate is carried at cost, net of accumulated depreciation and amortization. Expenditures for ordinary maintenance and repairs are expensed to operations as they are incurred. Significant renovations that improve or extend the useful lives of assets are capitalized. As real estate is undergoing redevelopment activities, all property operating expenses directly associated with and attributable to the redevelopment, including interest, are capitalized to the extent the capitalized costs of the property do not exceed the estimated fair value of the property when completed. If the cost of the redeveloped property, including the net book value of the existing property, exceeds the estimated fair value of redeveloped property, the excess is charged to impairment expense. The capitalization period begins when redevelopment activities are under way and ends when the project is substantially complete and ready for its intended use. Depreciation is recognized on a straight-line basis over estimated useful lives which range from to 40 years. Upon the acquisition of real estate, we assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and assumption of liabilities and we allocate the purchase price based on these assessments on a relative fair value basis. We assess fair value based on estimated cash flow projections utilizing appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known trends, and market/economic conditions. We record acquired intangible assets (including acquired above-market leases, acquired in-place leases and tenant relationships) and acquired intangible liabilities (including below-market leases) at their estimated fair value. We amortize identified intangibles that have finite lives over the period they are expected to contribute directly or indirectly to the future cash flows of the property or business acquired. Our properties and development projects are individually evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Such events and changes include macroeconomic conditions, operating performance, and environmental and regulatory changes, which may result in property operational disruption and could indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis taking into account the appropriate capitalization rate in determining a future terminal value. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Estimated fair value may be based on discounted future cash flows utilizing appropriate discount and capitalization rates and, in addition to available market information, third-party appraisals, broker selling estimates or sale agreements under negotiation. Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows change based on uncertain market conditions, our evaluation of impairment losses may be different and such differences could be material to our consolidated financial statements. Tenant and Other Receivables and Changes in Collectibility Assessment — Tenant receivables include unpaid amounts billed to tenants, disputed enforceable charges and accrued revenues for future billings to tenants for property expenses. We evaluate the collectibility of amounts due from tenants and disputed enforceable charges on both a lease-by-lease and a portfolio-level, which result from the inability of tenants to make required payments under their operating lease agreements. We recognize changes in the collectibility assessment of these operating leases as adjustments to rental revenue in accordance with ASC 842 Leases. Management exercises judgment in assessing collectibility and considers payment history, current credit status and publicly available information about the financial condition of the tenant, among other factors. Tenant receivables and receivables arising from the straight-lining of rents are written-off directly when management deems the collectibility of substantially all future lease payments from a specific lease is not probable, at which point, the Company will begin recognizing revenue from such leases prospectively, based on actual amounts received. This write-off effectively reduces cumulative non-cash rental income recognized from the straight-lining of rents since lease commencement. If the Company subsequently determines that it is probable it will collect substantially all of the lessee’s remaining lease payments under the lease term, the Company will reinstate the receivables balance, including those arising from the straight-lining of rents. Recently Issued Accounting Literature — In March 2020 and January 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04 Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2021-01 Reference Rate Reform (ASC 848): Scope which provide temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 and ASU 2021-01 were effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, FASB issued ASU 2022-06 Reference Rate Reform (ASC 848): Deferral of the Sunset Date of Topic 848, which extended the final sunset date from December 31, 2022 to December 31, 2024. During June 2023, the Company entered into loan amendments to transition its four LIBOR-based loans to the Secured Overnight Financing Rate (“SOFR”). The amendments went into effect in July 2023 and did not have a material impact on the loans affected. In August 2023, FASB issued ASU 2023-05 Business Combinations - Joint Venture Formation (Subtopic 805-60): Recognition and Initial Measurement, which provides an update to the accounting treatment of joint ventures upon formation. This update requires companies to measure assets and liabilities contributed to joint ventures at fair value at the time of formation and has an effective date of January 1, 2025. The update is to be applied prospectively, with a retrospective option for previously formed joint ventures and has no current impact on the Company. In November 2023, FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which provides for additional disclosures as they relate to a Company’s segments. Additional requirements per the update include disclosures for significant segment expenses, measures of profit or loss used by the CODM and how these measures are used to allocate resources and assess segment performance. The amendments in this ASU will also apply to entities with a single reportable segment and is effective for all public entities for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the impact of this update on its disclosures and will apply the required amendments in its December 31, 2024 Annual report on Form 10-K. In December 2023, FASB issued ASU 2023-09 Income Tax (Topic 740): Improvements to Income Tax Disclosures which provides for additional disclosures for rate reconciliations, disaggregation of income taxes paid, and other disclosures. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2024. The Company will adopt and incorporate any required disclosures in our December 31, 2025 Annual Report on Form 10-K. In March 2024, FASB issued ASU 2024-01 Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards which provides clarity on how an entity determines whether a profits interest or similar award is within the scope of ASC 718. It also offers guidance on identifying whether such an award is not a share-based payment arrangement and therefore within the scope of other guidance. The Company has reviewed the update and determined it does not issue any profits interest or similar awards and therefore is not impacted by this ASU. Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they are not relevant to the Company or the Operating Partnership, or they are not expected to have a material impact on our consolidated financial statements or disclosures. Recent SEC Reporting Updates — On March 6, 2024, the SEC issued its final ruling on The Enhancement and Standardization of Climate-Related Disclosures for Investors (Release No. 34-99678). Provisions of the final rule require registrants to include climate-related disclosures that are both qualitative and quantitative in their annual reports and registration statements. These disclosures include, but are not limited to, governance, risk management, strategy, emissions, capital expenditures, and climate-related targets and goals. The disclosure requirements will be effective for the Company’s Annual Report on Form 10-K beginning with the year ended December 31, 2025, with certain provisions being phased in in later periods. Subsequent to issuance, the rules became the subject of litigation, and the SEC has issued a stay to allow the legal process to proceed. The Company is continuing to review the final rule and monitoring the litigation progress for possible impacts on the disclosure requirements and will adopt the required disclosures in their effective periods.
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ACQUISITIONS AND DISPOSITIONS |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Acquisitions During the three months ended March 31, 2024, we closed on the following acquisition:
(1) The total purchase price for the property acquired during the three months ended March 31, 2024 includes $0.7 million of transaction costs. On February 8, 2024, the Company acquired Heritage Square, an unencumbered 87,000 sf shopping center located in Watchung, NJ, for a purchase price of $33.8 million, including transaction costs. The property is anchored by Ulta and two TJX Companies concepts, HomeSense and Sierra Trading, and includes three outparcels with a fourth currently under construction. The acquisition was funded using cash on hand. During the three months ended March 31, 2023, no acquisitions were completed by the Company. The aggregate purchase price of the above property acquisition has been allocated as follows:
(1) As of March 31, 2024, the remaining weighted average amortization periods of the identified intangible assets and identified intangible liabilities acquired in 2024 were 7.5 years and 25.4 years, respectively. Dispositions On March 14, 2024, the Company completed the sale of its 95,000 sf property located in Hazlet, NJ for a price of $8.7 million and recognized a gain on sale of real estate of $1.5 million. The total gain on sale of real estate of $1.9 million includes amounts related to properties disposed of in prior periods. During the three months ended March 31, 2023, no dispositions were completed by the Company, however, we recognized a gain on sale of real estate of $0.4 million in connection with the release of escrow funds related to a property that was disposed of in a prior period. Real Estate Held for Sale As of March 31, 2024, our property in Lodi, NJ was classified as held for sale based on an executed contract of sale with a third-party buyer. The aggregate carrying amount of this property was $15.1 million and is included in prepaid expenses and other assets on our consolidated balance sheets as of March 31, 2024. The property was sold on April 26, 2024 and was structured as part of a Section 1031 exchange with the acquisition of Heritage Square which closed on February 8, 2024, allowing for the deferral of capital gains resulting from the sale for income tax purposes. Subsequent Events On April 5, 2024, the Company closed on the acquisition of Ledgewood Commons, located in Roxbury Township, NJ, for a gross purchase price of $83.2 million. The center, aggregating 448,000 sf, is anchored by a grocer and includes two pre-approved but undeveloped outparcels. On May 3, 2024, the Company obtained a 5-year, $50 million mortgage secured by the property that bears interest at a rate of 6.03%.
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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES | IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES Our identified intangible assets (acquired in-place and above-market leases) and liabilities (acquired below-market leases), net of accumulated amortization, were $110.5 million and $168.3 million, respectively, as of March 31, 2024 and $113.9 million and $170.4 million, respectively, as of December 31, 2023. Amortization of acquired below-market leases, net of acquired above-market leases, resulted in additional rental income of $1.5 million for the three months ended March 31, 2024 and 2023. Amortization of acquired in-place leases inclusive of customer relationships resulted in additional depreciation and amortization expense of $6.9 million and $2.4 million for the three months ended March 31, 2024 and 2023, respectively. The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2024 and the five succeeding years:
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MORTGAGES PAYABLE |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MORTGAGES PAYABLE | MORTGAGES PAYABLE The following is a summary of mortgages payable as of March 31, 2024 and December 31, 2023.
(1)The Company paid off the loan prior to maturity on January 2, 2024. (2)Bears interest at one month 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%, which expires July 1, 2025. (3)In April 2023, the Company notified the servicer that the cash flows generated by the property are insufficient to cover the debt service and that it is unwilling to fund the shortfalls. In May 2023, the mortgage was transferred to special servicing at the Company's request. (4)On March 28, 2024, the Company refinanced the mortgage secured by the property with a new 5-year, $50 million loan. (5)Bears interest at SOFR plus 257 bps. The fixed and variable components of the debt are hedged with an interest rate swap agreement, fixing the rate at 3.15%, which expires at the maturity of the loan. The net carrying amount of real estate collateralizing the above indebtedness amounted to approximately $1.4 billion as of March 31, 2024. Our mortgage loans contain covenants that limit our ability to incur additional indebtedness on these properties and in certain circumstances require lender approval of tenant leases and/or yield maintenance upon repayment prior to maturity. As of March 31, 2024, we were in compliance with all debt covenants with the exception of those related to our mortgage on Kingswood Center which has been in default since May 2023. Additional information regarding the status of this loan can be found under “Mortgage on Kingswood Center.” As of March 31, 2024, the principal repayments of the Company’s total outstanding debt for the remainder of 2024 and the five succeeding years, and thereafter are as follows:
(1) Remainder of 2024. Revolving Credit Agreement On January 15, 2015, we entered into a $500 million Revolving Credit Agreement (the “Agreement”) with certain financial institutions. On March 7, 2017, we amended and extended the Agreement. The amendment increased the credit facility size by $100 million to $600 million and extended the maturity date to March 7, 2021, with two six-month extension options. On July 29, 2019, we entered into a second amendment to the Agreement to extend the maturity date to January 29, 2024, with two six-month extension options. On June 3, 2020, we entered into a third amendment to the Agreement which, among other things, modified certain definitions and the measurement period for certain financial covenants to a trailing four-quarter period instead of the most recent quarter period annualized. On August 9, 2022, we amended and restated the Agreement, in order to, among other things, increase the credit facility size by $200 million to $800 million and extend the maturity date to February 9, 2027, with two six-month extension options. Borrowings under the amended and restated Agreement are subject to interest at SOFR plus 1.05% to 1.50% and an annual facility fee of 15 to 30 basis points. Both the spread over SOFR and the facility fee are based on our current leverage ratio and are subject to change. The Agreement contains customary financial covenants including a maximum leverage ratio of 60% and a minimum fixed charge coverage ratio of 1.5x. The Company has obtained five letters of credit issued under the Agreement, aggregating $30.1 million. The letters of credit were provided to mortgage lenders to secure the Company’s obligations in relation to certain reserves and capital requirements per the respective loan agreements. The letters of credit issued under the Agreement have reduced the amount available under the facility commensurate with their face values but remain undrawn as of March 31, 2024 and no separate liability has been recorded in association with them. As of March 31, 2024, there was $153 million drawn under the Agreement with an available remaining balance of $616.9 million under the facility, including undrawn letters of credit. Financing costs associated with executing the Agreement of $4.7 million and $5.1 million as of March 31, 2024 and December 31, 2023, respectively, are included in the prepaid expenses and other assets line item of the consolidated balance sheets, as deferred financing costs, net. Variable Rate Loans On January 2, 2024, the Company paid off three variable rate mortgage loans aggregating $75.7 million, which were due to mature in the fourth quarter of 2024. The loans were secured by Hudson Commons, Greenbrook Commons, and Gun Hill Commons, and bearing interest at a rate of 7.34% on the pay off date. In connection with the prepayment, the Company recognized a $0.3 million loss on extinguishment of debt. Yonkers Gateway Center On March 28, 2024, the Company refinanced the mortgage secured by its property, Yonkers Gateway Center, with a new 5-year, $50 million mortgage loan bearing interest at a fixed rate of 6.30%. The proceeds from the new loan were used to pay off the previous mortgage on the property which had an outstanding balance of $22.7 million. Mortgage on Kingswood Center In March 2023, an office tenant representing 50,000 sf (approximately 40% of the total gross leasable area) informed us that they intended to vacate in 2024, and a tenant representing 17,000 sf terminated their lease early, effective April 17, 2023. As a result of these events, the Company notified the servicer that the projected cash flows generated by the property would be insufficient to cover debt service and that we were unwilling to fund the shortfalls. In May 2023, the loan was transferred to special servicing at the Company’s request, and per the terms of the loan agreement, we began to accrue default interest at a rate of 5% on the outstanding principal balance. As of March 31, 2024, the loan is in the foreclosure process and the Company has accrued default interest of $3.3 million which is included in the accounts payable, accrued expenses and other liabilities line item of the consolidated balance sheets. Mortgage on The Outlets at Montehiedra In connection with the refinancing of the loan secured by The Outlets at Montehiedra in the second quarter of 2020, the Company provided a $12.5 million limited corporate guarantee. The guarantee is reduced commensurate with the loan amortization schedule and will reduce to zero in approximately 2.5 years. As of March 31, 2024, the remaining exposure under the guarantee is $5.6 million. There was no separate liability recorded related to this guarantee.
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INCOME TAXES |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company elected to be taxed as a REIT under sections 856-860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the filing of its 2015 tax return for its tax year ended December 31, 2015. So long as the Company qualifies as a REIT under the Code, the Company will not be subject to U.S. federal income tax on net taxable income that it distributes annually to its shareholders. If we fail to qualify as a REIT for any taxable year, we will be subject to federal income taxes at regular corporate rates and may not be able to qualify as a REIT for the four subsequent taxable years. The Company is subject to certain foreign and state and local income taxes, in particular income taxes arising from its operating activities in Puerto Rico, which are included in income tax expense on the consolidated statements of income and comprehensive income. In addition, the Company’s taxable REIT subsidiary (“TRS”) is subject to income tax at regular corporate rates. For U.S. federal income tax purposes, the REIT and other minority members are partners in the Operating Partnership. As such, the partners are required to report their share of taxable income on their respective tax returns. However, during the three months ended March 31, 2024 and 2023, certain non-real estate operating activities that could not be performed by the REIT, occurred through the Company’s TRS, which is subject to federal, state and local income taxes. These income taxes are included in income tax expense on the consolidated statements of income and comprehensive income. During the three months ended March 31, 2024, the REIT was subject to Puerto Rico corporate income taxes on its allocable share of Puerto Rico operating activities. The Puerto Rico corporate income tax consists of a flat 18.5% tax rate plus a graduated income surcharge tax for a maximum corporate income tax rate of 37.5%. In addition, the REIT is subject to a 10% branch profits tax on the earnings and profits generated from its allocable share of Puerto Rico operating activities and such tax is included in income tax expense on the consolidated statements of income and comprehensive income. For both the three months ended March 31, 2024 and 2023, the Puerto Rico income tax expense was $0.7 million. The REIT was not subject to any material state and local income tax expense or benefit for the three months ended March 31, 2024 and 2023. All amounts for the three months ended March 31, 2024 and 2023 are included in income tax expense on the consolidated statements of income and comprehensive income.
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LEASES (Notes) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES All rental revenue was generated from operating leases for the three months ended March 31, 2024 and 2023. The components of rental revenue for the three months ended March 31, 2024 and 2023 were as follows:
(1) Percentage rents for the three months ended March 31, 2024 and 2023 were $0.9 million and $0.8 million, respectively.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of one interest rate cap and one interest rate swap. We rely on third-party valuations that use market observable inputs, such as credit spreads, yield curves and discount rates, to assess the fair value of these instruments. In accordance with the fair value hierarchy established by ASC 820, these financial instruments have been classified as Level 2 as quoted market prices are not readily available for valuing the assets. The tables below summarize the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023:
(1) Included in Prepaid expenses and other assets on the consolidated balance sheets. Derivatives and Hedging When we designate a derivative as a hedge, depending on the nature of the hedge, changes in the fair value of the instrument will be recognized in Other Comprehensive Income (“OCI”) until the gains or losses are reclassified to earnings. Derivatives that are not designated as hedges are adjusted to fair value through earnings. Cash flows from the derivative are included in the prepaid expenses and other assets, or accounts payable, accrued expenses and other liabilities line item in the statement of cash flows, depending on whether the hedged item is recognized as an asset or a liability. As of March 31, 2024, the Company was a counterparty to two interest rate derivative agreements which have been designated as cash flow hedges. The tables below summarize our derivative instruments, which are used to hedge the corresponding variable rate debt, as of March 31, 2024 and December 31, 2023:
The table below summarizes the effect of our derivative instruments on our consolidated statements of income and comprehensive income for the three months ended March 31, 2024 and 2023:
Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis There were no financial assets or liabilities measured at fair value on a non-recurring basis as of March 31, 2024 and December 31, 2023. Financial Assets and Liabilities not Measured at Fair Value Financial assets and liabilities that are not measured at fair value on the consolidated balance sheets include cash and cash equivalents and mortgages payable. Cash and cash equivalents are carried at cost, which approximates fair value. The fair value of mortgages payable is calculated based on current market prices and discounted cash flows at the current rate at which similar loans would be made to borrowers with similar credit ratings for the remaining term of such debt, which is provided by a third-party specialist. The fair value of cash and cash equivalents is classified as Level 1 and the fair value of mortgages payable is classified as Level 2. The table below summarizes the carrying amounts and fair value of our Level 2 financial instruments as of March 31, 2024 and December 31, 2023:
(1) Carrying amounts exclude unamortized debt issuance costs of $13.0 million and $12.6 million as of March 31, 2024 and December 31, 2023, respectively. Nonfinancial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We assess the carrying value of our properties for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Such events and changes include macroeconomic conditions, operating performance, and environmental and regulatory changes, which may result in property operational disruption and could indicate that the carrying amount may not be recoverable. No impairment charges were recognized during the three months ended March 31, 2024. During the three months ended March 31, 2023, the Company recognized an impairment charge of $34.1 million on our property, Kingswood Center. The property, an office and retail center comprising 129,000 sf, was acquired in February 2020 and is located in Brooklyn, NY. In March of 2023, an office tenant representing 50,000 sf informed us that they intended to vacate in 2024, and a tenant representing 17,000 sf terminated their lease early, effective April 17, 2023. As a result of these events and the uncertainty of the office market, we determined that the undiscounted future cash flows and future terminal value were less than the carrying value of the property. The impairment charge of $34.1 million was calculated as the difference between the asset’s individual carrying value and the estimated fair value of $49 million less estimated selling costs, which was based on the discounted future cash flows and future terminal value. The discounted cash flows and terminal value utilized a discount rate of 8% and capitalization rates of 6% for retail and 7% for office, which were corroborated by third-party valuations and market data. The impairment charge is recorded within the real estate impairment loss line item on our consolidated statements of income and comprehensive income. The Company believes the inputs utilized to measure these fair values were reasonable in the context of applicable market conditions, however, due to the significance of the unobservable inputs in the overall fair value measures, including market conditions and expectations for growth, the Company determined that such fair value measurements are classified as Level 3.
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, we are a party to various legal proceedings, claims or regulatory inquiries and investigations arising out of, or incident to, our ordinary course of business. While we are unable to predict with certainty the outcome of any particular matter, management does not currently expect, when such matters are resolved, that our resulting exposure to loss contingencies, if any, will have a material adverse effect on our results of operations or consolidated financial position. Redevelopment and Anchor Repositioning The Company has 22 active development, redevelopment or anchor repositioning projects with total estimated costs of $166.4 million, of which $99.7 million remains to be funded as of March 31, 2024. We continue to monitor the stabilization dates of these projects, which can be impacted from economic conditions affecting our tenants, vendors and supply chains. We have identified future projects in our development pipeline, but we are under no obligation to execute and fund any of these projects and each of these projects is being further evaluated based on market conditions. Insurance The Company maintains numerous insurance policies including for general liability, property, pollution, acts of terrorism, trustees’ and officers’, cyber, workers’ compensation and automobile-related liabilities. However, all such policies are subject to terms, conditions, exclusions, deductibles and sub-limits, amongst other limiting factors. For example, the Company’s terrorism insurance excludes coverage for nuclear, biological, chemical or radiological terrorism events as defined by the Terrorism Risk Insurance Program Reauthorization Act. Insurance premiums are typically charged directly to each of the properties but not all of the cost of such premiums are recovered. The Company is responsible for deductibles, losses in excess of insurance coverage, and the portion of premiums not reimbursable by tenants at our properties, which could be material. We continue to monitor the state of the insurance market and the scope and costs of available coverage. Certain insurance premiums have increased significantly and may continue to do so in the future. We cannot anticipate what coverage will be available on commercially reasonable terms and expect premiums across most coverage lines to continue to increase in light of recent events including hurricanes and flooding in our core markets. The incurrence of uninsured losses, costs or uncovered premiums could materially and adversely affect our business, results of operations and consolidated financial position. Certain of our loans and other agreements contain customary covenants requiring the maintenance of insurance coverage. Although we believe that we currently have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. If lenders or other counterparties insist on greater coverage than we are able to obtain, such requirement could materially and adversely affect our ability to finance our properties and expand our portfolio. Environmental Matters Each of our properties has been subjected to varying degrees of environmental assessment at various times. Based on these assessments, we have accrued costs of $1.4 million on our consolidated balance sheets as of March 31, 2024 and December 31, 2023, for remediation costs for environmental contamination at certain properties. While this accrual reflects our best estimates of the potential costs of remediation at these properties, there can be no assurance that the actual costs will not exceed these amounts. Although we are not aware of any other material environmental contamination, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us. Bankruptcies Although our rental revenue is supported by long-term leases, leases may be rejected in a bankruptcy proceeding and the related tenant stores may permanently vacate prior to lease expiration. In the event a tenant with a significant number of leases or square footage in our shopping centers files for bankruptcy and rejects its leases with us, we could experience a reduction in our revenues. We monitor the operating performance and rent collections of all tenants in our shopping centers, especially those tenants in arrears or operating retail formats that are experiencing significant changes in competition, business practice, or store closings in other locations. Letters of Credit As of March 31, 2024, the Company had five letters of credit issued under our Revolving Credit Agreement aggregating $30.1 million. These letters were provided to mortgage lenders to secure the Company’s obligations for certain capital requirements per the respective mortgage agreements. If a lender were to draw on a letter of credit, the Company would have the option to pay the capital commitment directly to the lender or to record the draw as a liability on its unsecured line of credit, bearing interest at SOFR plus an applicable margin per the Revolving Credit Agreement. As of March 31, 2024, the letters remain undrawn and there is no separate liability recorded in connection with their issuance.
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PREPAID EXPENSES AND OTHER ASSETS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID EXPENSES AND OTHER ASSETS | PREPAID EXPENSES AND OTHER ASSETS The following is a summary of the composition of the prepaid expenses and other assets on the consolidated balance sheets:
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES The following is a summary of the composition of accounts payable, accrued expenses and other liabilities on the consolidated balance sheets:
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INTEREST AND DEBT EXPENSE |
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INTEREST AND DEBT EXPENSE | INTEREST AND DEBT EXPENSE The following table sets forth the details of interest and debt expense on the consolidated statements of income and comprehensive income:
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EQUITY AND NONCONTROLLING INTEREST |
3 Months Ended |
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Mar. 31, 2024 | |
Noncontrolling Interest [Abstract] | |
EQUITY AND NONCONTROLLING INTEREST | EQUITY AND NONCONTROLLING INTEREST At-The-Market Program On August 15, 2022 the Company and the Operating Partnership entered into an equity distribution agreement (the “Equity Distribution Agreement”) with various financial institutions acting as agents, forward sellers, and forward purchasers. Pursuant to the Equity Distribution Agreement, the Company may from time to time offer and sell, through the agents and forward sellers, the Company’s common shares, par value $0.01 per share, having an aggregate offering price of up to $250 million (the “ATM Program”). Concurrently with the Equity Distribution Agreement, the Company entered into separate master forward confirmations (collectively, the “Master Confirmations”) with each of the forward purchasers. Sales under the ATM Program may be made from time to time, as needed, by means of ordinary brokers’ transactions or other transactions that are deemed to be “at the market” offerings, in privately negotiated transactions, which may include block trades, or as otherwise agreed with the sales agents. The ATM Program replaced the Company’s previous at-the-market program established on June 7, 2021. The Equity Distribution Agreement provides that the Company may also enter into forward sale agreements pursuant to any Master Confirmation and related supplemental confirmations with the forward purchasers. In connection with any forward sale agreement, a forward purchaser will, at the Company’s request, borrow from third parties, through its forward seller, and sell a number of shares equal to the amount provided in such agreement. During the three months ended March 31, 2024, the Company issued 1,082,945 common shares at a weighted average price of $17.31 per share under the ATM Program, generating net cash proceeds of $18.5 million. In addition, we incurred $1.3 million of offering expenses related to the issuance of these common shares. Actual future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common shares, and our capital needs. The Company has no obligation to sell any shares under the ATM Program. Share Repurchase Program The Company has a share repurchase program for up to $200 million, under which the Company may repurchase its shares from time to time in the open market or in privately negotiated transactions in compliance with SEC Rule 10b-18. The amount and timing of the purchases will depend on a number of factors including the price and availability of the Company’s shares, trading volume and general market conditions. The share repurchase program does not obligate the Company to acquire any particular amount of common shares and may be suspended or discontinued at any time at the Company’s discretion. During the three months ended March 31, 2024 and 2023, no shares were repurchased by the Company. All share repurchases by the Company were completed between March and April of 2020, and aggregated 5.9 million common shares at a weighted average share price of $9.22, for a total of $54.1 million. As of March 31, 2024, there was approximately $145.9 million remaining for share repurchases under this program. Units of the Operating Partnership The Operating Partnership’s capital includes general and common limited partnership interests in the operating partnership. As of March 31, 2024, Urban Edge owned approximately 94.8% of the outstanding common OP units with the remaining limited OP units held by members of management, Urban Edge’s Board of Trustees and contributors of property interests acquired. Urban Edge serves as the sole general partner of the Operating Partnership. The third-party unitholders have limited rights over the Operating Partnership such that they do not have characteristics of a controlling financial interest. As such, the Operating Partnership is considered a VIE, and the Company is the primary beneficiary which consolidates it. The Company’s only investment is the Operating Partnership. The VIE’s assets can be used for purposes other than the settlement of the VIE’s obligations and the Company’s partnership interest is considered a majority voting interest. Dividends and Distributions During the three months ended March 31, 2024 and 2023, the Company declared distributions on common shares and OP units of $0.17 and $0.16 per share/unit, respectively. Noncontrolling Interests in Operating Partnership Noncontrolling interests in the Operating Partnership reflected on the consolidated balance sheets of the Company are comprised of OP units and limited partnership interests in the Operating Partnership in the form of LTIP unit awards. LTIP unit awards were granted to certain executives pursuant to our 2015 Omnibus Share Plan (the “Omnibus Share Plan”) and our 2018 Inducement Equity Plan. OP units were issued to contributors in exchange for their property interests in connection with the Company’s property acquisitions in 2017. The total of the OP units and LTIP units represent a 4.9% weighted-average interest in the Operating Partnership for the three months ended March 31, 2024. Holders of outstanding vested LTIP units may, from and after two years from the date of issuance, redeem their LTIP units for cash, or for the Company’s common shares on a one-for-one basis, solely at our election. Holders of outstanding OP units may redeem their units for cash or the Company’s common shares on a one-for-one basis, solely at our election. Noncontrolling Interests in Consolidated Subsidiaries The Company’s noncontrolling interests relate to the 5% interest held by others in our property in Walnut Creek, CA (Mount Diablo) and 17.5% held by others in our property in Massapequa, NY. The net income attributable to noncontrolling interests is presented separately on our consolidated statements of income and comprehensive income.
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SHARE-BASED COMPENSATION |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share-Based Compensation Expense Share-based compensation expense, which is included in general and administrative expenses in our consolidated statements of income and comprehensive income, is summarized as follows:
(1) Expense for the three months ended March 31, 2024 includes the 2024, 2023, 2022, 2021, and 2020 LTI Plans. (2) Expense for the three months ended March 31, 2024 includes the 2024, 2023, 2022, 2021, 2020, and 2019 LTI Plans. Equity award activity during the three months ended March 31, 2024 included: (i) 1,003,518 LTIP units granted, (ii) 280,105 LTIP units vested, (iii) 155,513 LITP units earned upon completion of the 2021 LTI Plan, (iv) 56,005 restricted shares granted, and (v) 33,744 restricted shares vested. 2024 Long-Term Incentive Plan On February 9, 2024, the Company established the 2024 Long-Term Incentive Plan (“2024 LTI Plan”) under the Omnibus Share Plan. The plan is a multi-year, equity compensation program under which participants, including our Chairman and Chief Executive Officer, receive awards in the form of LTIP units that, with respect to one half of the program, vest based solely on the passage of time. With respect to the other half of the program, the awards are earned and vest if certain relative and absolute total shareholder return (“TSR”) and/or funds from operations (“FFO”) and same-property net operating income (“SP NOI”) growth targets are achieved by the Company over a three-year performance period. The total grant date fair value under the 2024 LTI Plan was $7.5 million, comprising both performance-based and time-based awards as described further below: Performance-based awards For the performance-based awards under the 2024 LTI plan, participants have the opportunity to earn awards in the form of LTIP units if Urban Edge’s absolute and/or relative TSR meets certain criteria over the three-year performance measurement period beginning on February 9, 2024 and ending on February 8, 2027. Participants also have the opportunity to earn awards in the form of LTIP units if Urban Edge’s FFO growth component and SP NOI growth component meets certain criteria over the three-year performance measurement period beginning January 1, 2024 and ending on December 31, 2026. The Company granted performance-based awards under the 2024 LTI Plan representing 295,852 units. The fair value of the performance-based award portion of the 2024 LTI Plan on the grant date was $3.8 million using a Monte Carlo simulation to estimate the fair value of the Absolute and Relative components through a risk-neutral premise. Assumptions include historical volatility (29.9%), risk-free interest rates (4.3%), and historical daily return as compared to certain peer companies. Time-based awards The time-based awards granted under the 2024 LTI Plan, also granted in the form of LTIP units, vest ratably over three years except in the case of our Chairman and Chief Executive Officer, where the vesting is ratable over four years. As of March 31, 2024, the Company granted time-based awards under the 2024 LTI Plan that represent 232,808 LTIP units with a grant date fair value of $3.7 million.
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EARNINGS PER SHARE AND UNIT |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE AND UNIT | EARNINGS PER SHARE AND UNIT Urban Edge Earnings per Share We calculate earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of Urban Edge common shares and participating securities is calculated according to dividends declared and participating rights in undistributed earnings. Restricted shares issued pursuant to our share-based compensation program are considered participating securities, and as such have non-forfeitable rights to receive dividends. The computation of diluted EPS reflects potential dilution of securities by adding potential common shares, including stock options and unvested restricted shares, to the weighted average number of common shares outstanding for the period. The effect of the redemption of OP and vested LTIP units is not reflected in the computation of basic and diluted EPS, as they are redeemable for common shares on a one-for-one basis. The income allocable to such units is allocated on this same basis and reflected as noncontrolling interests in the accompanying consolidated financial statements. The following table sets forth the computation of our basic and diluted EPS:
(1) For the three months ended March 31, 2023, the effect of the redemption of certain OP and LTIP Units for Urban Edge common shares would have an anti-dilutive effect on the calculation of diluted EPS. Accordingly, the impact of such redemption has not been included in the determination of diluted EPS for these periods. Operating Partnership Earnings per Unit The following table sets forth the computation of basic and diluted earnings per unit:
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net income (loss) attributable to common shareholders/unitholders | $ 2,603 | $ (19,118) |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions of Form 10-Q. Certain information and footnote disclosures included in our annual financial statements have been condensed or omitted. In the opinion of management, the consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company and the Operating Partnership and the results of operations and cash flows for the interim periods presented. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. Accordingly, these consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (“SEC”).
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Consolidation and Noncontrolling Interests | The consolidated balance sheets as of March 31, 2024 and December 31, 2023 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. As of March 31, 2024 and December 31, 2023, excluding the Operating Partnership, we consolidated two VIEs with total assets of $43.6 million and $47.2 million, respectively, and total liabilities of $17.3 million and $20.3 million, respectively. The consolidated statements of income and comprehensive income for the three months ended March 31, 2024 and 2023, include the consolidated accounts of the Company, the Operating Partnership and the two VIEs. All intercompany transactions have been eliminated in consolidation.
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Real Estate | Real Estate — Real estate is carried at cost, net of accumulated depreciation and amortization. Expenditures for ordinary maintenance and repairs are expensed to operations as they are incurred. Significant renovations that improve or extend the useful lives of assets are capitalized. As real estate is undergoing redevelopment activities, all property operating expenses directly associated with and attributable to the redevelopment, including interest, are capitalized to the extent the capitalized costs of the property do not exceed the estimated fair value of the property when completed. If the cost of the redeveloped property, including the net book value of the existing property, exceeds the estimated fair value of redeveloped property, the excess is charged to impairment expense. The capitalization period begins when redevelopment activities are under way and ends when the project is substantially complete and ready for its intended use. Depreciation is recognized on a straight-line basis over estimated useful lives which range from to 40 years. Upon the acquisition of real estate, we assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and assumption of liabilities and we allocate the purchase price based on these assessments on a relative fair value basis. We assess fair value based on estimated cash flow projections utilizing appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known trends, and market/economic conditions. We record acquired intangible assets (including acquired above-market leases, acquired in-place leases and tenant relationships) and acquired intangible liabilities (including below-market leases) at their estimated fair value. We amortize identified intangibles that have finite lives over the period they are expected to contribute directly or indirectly to the future cash flows of the property or business acquired. Our properties and development projects are individually evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Such events and changes include macroeconomic conditions, operating performance, and environmental and regulatory changes, which may result in property operational disruption and could indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis taking into account the appropriate capitalization rate in determining a future terminal value. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Estimated fair value may be based on discounted future cash flows utilizing appropriate discount and capitalization rates and, in addition to available market information, third-party appraisals, broker selling estimates or sale agreements under negotiation. Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows change based on uncertain market conditions, our evaluation of impairment losses may be different and such differences could be material to our consolidated financial statements.
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Tenant and Other Receivables and Changes in Collectibility Assessment | Tenant and Other Receivables and Changes in Collectibility Assessment — Tenant receivables include unpaid amounts billed to tenants, disputed enforceable charges and accrued revenues for future billings to tenants for property expenses. We evaluate the collectibility of amounts due from tenants and disputed enforceable charges on both a lease-by-lease and a portfolio-level, which result from the inability of tenants to make required payments under their operating lease agreements. We recognize changes in the collectibility assessment of these operating leases as adjustments to rental revenue in accordance with ASC 842 Leases. Management exercises judgment in assessing collectibility and considers payment history, current credit status and publicly available information about the financial condition of the tenant, among other factors. Tenant receivables and receivables arising from the straight-lining of rents are written-off directly when management deems the collectibility of substantially all future lease payments from a specific lease is not probable, at which point, the Company will begin recognizing revenue from such leases prospectively, based on actual amounts received. This write-off effectively reduces cumulative non-cash rental income recognized from the straight-lining of rents since lease commencement. If the Company subsequently determines that it is probable it will collect substantially all of the lessee’s remaining lease payments under the lease term, the Company will reinstate the receivables balance, including those arising from the straight-lining of rents.
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Recently Issued Accounting Literature | Recently Issued Accounting Literature — In March 2020 and January 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04 Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2021-01 Reference Rate Reform (ASC 848): Scope which provide temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 and ASU 2021-01 were effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, FASB issued ASU 2022-06 Reference Rate Reform (ASC 848): Deferral of the Sunset Date of Topic 848, which extended the final sunset date from December 31, 2022 to December 31, 2024. During June 2023, the Company entered into loan amendments to transition its four LIBOR-based loans to the Secured Overnight Financing Rate (“SOFR”). The amendments went into effect in July 2023 and did not have a material impact on the loans affected. In August 2023, FASB issued ASU 2023-05 Business Combinations - Joint Venture Formation (Subtopic 805-60): Recognition and Initial Measurement, which provides an update to the accounting treatment of joint ventures upon formation. This update requires companies to measure assets and liabilities contributed to joint ventures at fair value at the time of formation and has an effective date of January 1, 2025. The update is to be applied prospectively, with a retrospective option for previously formed joint ventures and has no current impact on the Company. In November 2023, FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which provides for additional disclosures as they relate to a Company’s segments. Additional requirements per the update include disclosures for significant segment expenses, measures of profit or loss used by the CODM and how these measures are used to allocate resources and assess segment performance. The amendments in this ASU will also apply to entities with a single reportable segment and is effective for all public entities for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the impact of this update on its disclosures and will apply the required amendments in its December 31, 2024 Annual report on Form 10-K. In December 2023, FASB issued ASU 2023-09 Income Tax (Topic 740): Improvements to Income Tax Disclosures which provides for additional disclosures for rate reconciliations, disaggregation of income taxes paid, and other disclosures. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2024. The Company will adopt and incorporate any required disclosures in our December 31, 2025 Annual Report on Form 10-K. In March 2024, FASB issued ASU 2024-01 Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards which provides clarity on how an entity determines whether a profits interest or similar award is within the scope of ASC 718. It also offers guidance on identifying whether such an award is not a share-based payment arrangement and therefore within the scope of other guidance. The Company has reviewed the update and determined it does not issue any profits interest or similar awards and therefore is not impacted by this ASU. Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they are not relevant to the Company or the Operating Partnership, or they are not expected to have a material impact on our consolidated financial statements or disclosures. Recent SEC Reporting Updates — On March 6, 2024, the SEC issued its final ruling on The Enhancement and Standardization of Climate-Related Disclosures for Investors (Release No. 34-99678). Provisions of the final rule require registrants to include climate-related disclosures that are both qualitative and quantitative in their annual reports and registration statements. These disclosures include, but are not limited to, governance, risk management, strategy, emissions, capital expenditures, and climate-related targets and goals. The disclosure requirements will be effective for the Company’s Annual Report on Form 10-K beginning with the year ended December 31, 2025, with certain provisions being phased in in later periods. Subsequent to issuance, the rules became the subject of litigation, and the SEC has issued a stay to allow the legal process to proceed. The Company is continuing to review the final rule and monitoring the litigation progress for possible impacts on the disclosure requirements and will adopt the required disclosures in their effective periods.
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ACQUISITIONS AND DISPOSITIONS (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | During the three months ended March 31, 2024, we closed on the following acquisition:
(1) The total purchase price for the property acquired during the three months ended March 31, 2024 includes $0.7 million of transaction costs. The aggregate purchase price of the above property acquisition has been allocated as follows:
(1) As of March 31, 2024, the remaining weighted average amortization periods of the identified intangible assets and identified intangible liabilities acquired in 2024 were 7.5 years and 25.4 years, respectively.
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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES (Tables) |
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Annual Amortization Expense | The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2024 and the five succeeding years:
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MORTGAGES PAYABLE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Mortgages Payable | The following is a summary of mortgages payable as of March 31, 2024 and December 31, 2023.
(1)The Company paid off the loan prior to maturity on January 2, 2024. (2)Bears interest at one month 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%, which expires July 1, 2025. (3)In April 2023, the Company notified the servicer that the cash flows generated by the property are insufficient to cover the debt service and that it is unwilling to fund the shortfalls. In May 2023, the mortgage was transferred to special servicing at the Company's request. (4)On March 28, 2024, the Company refinanced the mortgage secured by the property with a new 5-year, $50 million loan. (5)Bears interest at SOFR plus 257 bps. The fixed and variable components of the debt are hedged with an interest rate swap agreement, fixing the rate at 3.15%, which expires at the maturity of the loan.
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Schedule of Principal Repayments | As of March 31, 2024, the principal repayments of the Company’s total outstanding debt for the remainder of 2024 and the five succeeding years, and thereafter are as follows:
(1) Remainder of 2024.
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LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Rental Revenue | The components of rental revenue for the three months ended March 31, 2024 and 2023 were as follows:
(1) Percentage rents for the three months ended March 31, 2024 and 2023 were $0.9 million and $0.8 million, respectively.
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FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | The tables below summarize the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023:
(1) Included in Prepaid expenses and other assets on the consolidated balance sheets.
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Schedule of Derivative Instruments | The tables below summarize our derivative instruments, which are used to hedge the corresponding variable rate debt, as of March 31, 2024 and December 31, 2023:
The table below summarizes the effect of our derivative instruments on our consolidated statements of income and comprehensive income for the three months ended March 31, 2024 and 2023:
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Schedule of Financial Instrument Carrying Amounts and Fair Values | The table below summarizes the carrying amounts and fair value of our Level 2 financial instruments as of March 31, 2024 and December 31, 2023:
(1) Carrying amounts exclude unamortized debt issuance costs of $13.0 million and $12.6 million as of March 31, 2024 and December 31, 2023, respectively.
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PREPAID EXPENSES AND OTHER ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Composition of Prepaid Expenses and Other Assets | The following is a summary of the composition of the prepaid expenses and other assets on the consolidated balance sheets:
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ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Composition of Accounts Payable, Accrued Expenses and Other Liabilities | The following is a summary of the composition of accounts payable, accrued expenses and other liabilities on the consolidated balance sheets:
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INTEREST AND DEBT EXPENSE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest and Debt Expense | The following table sets forth the details of interest and debt expense on the consolidated statements of income and comprehensive income:
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SHARE-BASED COMPENSATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Share-based Compensation Expense | Share-based compensation expense, which is included in general and administrative expenses in our consolidated statements of income and comprehensive income, is summarized as follows:
(1) Expense for the three months ended March 31, 2024 includes the 2024, 2023, 2022, 2021, and 2020 LTI Plans. (2) Expense for the three months ended March 31, 2024 includes the 2024, 2023, 2022, 2021, 2020, and 2019 LTI Plans.
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EARNINGS PER SHARE AND UNIT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Earnings per Share and Unit | The following table sets forth the computation of our basic and diluted EPS:
(1) For the three months ended March 31, 2023, the effect of the redemption of certain OP and LTIP Units for Urban Edge common shares would have an anti-dilutive effect on the calculation of diluted EPS. Accordingly, the impact of such redemption has not been included in the determination of diluted EPS for these periods. Operating Partnership Earnings per Unit The following table sets forth the computation of basic and diluted earnings per unit:
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BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024
USD ($)
variableInterestEntity
segment
|
Dec. 31, 2023
USD ($)
|
Mar. 31, 2023
variableInterestEntity
|
|
Variable Interest Entity [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Number of variable interest entities | variableInterestEntity | 2 | 2 | |
Assets | $ 3,214,065 | $ 3,279,809 | |
Liabilities | 1,991,682 | 2,058,381 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 43,600 | 47,200 | |
Liabilities | $ 17,300 | $ 20,300 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
loan
| |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of loans refinanced | 4 |
Real Estate | Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Estimated useful life | 1 year |
Real Estate | Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Estimated useful life | 40 years |
ACQUISITIONS AND DISPOSITIONS - Summary of Acquisition Activity (Details) ft² in Thousands, $ in Thousands |
Feb. 08, 2024
USD ($)
ft²
|
Mar. 31, 2024
USD ($)
ft²
|
---|---|---|
Business Acquisition [Line Items] | ||
Area of real estate property (in sq ft) | ft² | 17,100 | |
Heritage Square | ||
Business Acquisition [Line Items] | ||
Area of real estate property (in sq ft) | ft² | 87 | |
Purchase Price | $ | $ 33,838 | |
Transaction costs | $ | $ 700 |
ACQUISITIONS AND DISPOSITIONS - Aggregate Purchase Price Allocations (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Business Acquisition [Line Items] | |
Weighted average useful life | 7 years 6 months |
Weighted average related liabilities | 25 years 4 months 24 days |
Heritage Square | |
Business Acquisition [Line Items] | |
Allocated price to land | $ 7,343 |
Allocated price to buildings and improvements | 24,643 |
Identified intangible assets | 4,763 |
Identified intangible liabilities | (2,911) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total | $ 33,838 |
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||
Identified intangible assets, net of accumulated amortization | $ 110,486 | $ 113,897 | |
Identified intangible liabilities, net of accumulated amortization | 168,313 | $ 170,411 | |
Amortization of acquired below-market leases, net of above-market leases | 1,500 | $ 1,500 | |
Amortization expense of intangible assets | $ 6,900 | $ 2,400 |
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Schedule of Estimated Annual Amortization Expense (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Below-Market Operating Lease Amortization | |
2024 | $ 7,714 |
2025 | 10,092 |
2026 | 9,748 |
2027 | 9,633 |
2028 | 9,472 |
2029 | 9,189 |
Above-Market | |
Above-Market Operating Lease Amortization | |
2024 | (2,865) |
2025 | (2,465) |
2026 | (1,258) |
2027 | (1,023) |
2028 | (990) |
2029 | (931) |
In-Place Leases | |
2024 | (2,865) |
2025 | (2,465) |
2026 | (1,258) |
2027 | (1,023) |
2028 | (990) |
2029 | (931) |
In-Place Lease | |
Above-Market Operating Lease Amortization | |
2024 | (19,847) |
2025 | (18,682) |
2026 | (12,807) |
2027 | (10,426) |
2028 | (8,988) |
2029 | (7,790) |
In-Place Leases | |
2024 | (19,847) |
2025 | (18,682) |
2026 | (12,807) |
2027 | (10,426) |
2028 | (8,988) |
2029 | $ (7,790) |
MORTGAGES PAYABLE - Schedule of Maturities (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
2024 | $ 58,015 |
2025 | 38,776 |
2026 | 127,417 |
2027 | 319,061 |
2028 | 392,042 |
2029 | 152,402 |
Thereafter | $ 603,635 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Contingency [Line Items] | ||
Income tax expense | $ 665 | $ 706 |
Puerto Rico | ||
Income Tax Contingency [Line Items] | ||
Branch profit tax | 10.00% | |
Puerto Rico | Commonwealth of Puerto Rico | ||
Income Tax Contingency [Line Items] | ||
Income tax expense | $ 700 | $ 700 |
Puerto Rico | Minimum | ||
Income Tax Contingency [Line Items] | ||
State and local income taxes | 18.50% | |
Puerto Rico | Maximum | ||
Income Tax Contingency [Line Items] | ||
State and local income taxes | 37.50% |
LEASES - Components of Rental Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Leases [Abstract] | ||
Fixed lease revenue | $ 80,122 | $ 73,499 |
Variable lease revenue | 29,425 | 25,855 |
Total rental revenue | 109,547 | 99,354 |
Percentage rent | $ 900 | $ 800 |
FAIR VALUE MEASUREMENTS - Interest Rate Cap Schedule (Details) - Fair Value, Recurring - Interest Rate Cap - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 2,665 | $ 2,515 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,665 | 2,515 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Carrying Amount | Mortgages | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgages payable | $ 1,430,921 | $ 1,489,601 |
Carrying Amount | Line of Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgages payable | 146,279 | 145,882 |
Fair Value | Mortgages | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgages payable | 1,538,348 | 1,590,735 |
Unamortized debt issuance costs | (13,000) | (12,600) |
Fair Value | Line of Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgages payable | $ 153,000 | $ 153,000 |
FAIR VALUE MEASUREMENTS - Unrealized Gain Recognized In OCI (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized Gain (Loss) Recognized in OCI on Derivatives | $ 293 | $ (300) |
The Plaza at Woodbridge | Interest Rate Cap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized Gain (Loss) Recognized in OCI on Derivatives | 189 | (108) |
Montclair, NJ | Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized Gain (Loss) Recognized in OCI on Derivatives | $ 104 | $ (192) |
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands, ft² in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024
USD ($)
ft²
project
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
|
|
Commitments and Contingencies Disclosure [Abstract] | |||
Number of projects | project | 22 | ||
Real estate redevelopment in process | $ 166,400 | ||
Estimated cost to complete development and redevelopment projects | 99,700 | ||
Deferred lease expense | $ 1,400 | $ 1,400 | |
Area of real estate property (in sq ft) | ft² | 17.1 | ||
Rental revenue | $ 109,547 | $ 99,354 |
PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred Tax Assets, Net | $ 20,998 | $ 20,899 |
Deposit Assets | 2,724 | 2,724 |
Real estate held for sale | 15,137 | 0 |
Other assets | 24,544 | 22,729 |
Accumulated amortization, deferred financing costs | 9,332 | 8,920 |
Prepaid expenses: | ||
Real estate taxes | 7,258 | 10,411 |
Insurance | 11,879 | 1,792 |
Licenses/fees | 1,984 | 902 |
Total prepaid expenses and other assets | 89,209 | 64,555 |
Debt issuance costs, net | $ 4,685 | $ 5,098 |
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Deferred tenant revenue | $ 27,791 | $ 34,840 |
Accrued interest payable | 12,250 | 11,190 |
Accrued capital expenditures and leasing costs | 20,044 | 23,044 |
Security deposits | 7,264 | 7,279 |
Finance lease liability | 3,031 | 3,028 |
Accrued payroll expenses | 9,241 | 9,371 |
Other liabilities and accrued expenses | 17,764 | 14,245 |
Total accounts payable, accrued expenses and other liabilities | $ 97,385 | $ 102,997 |
INTEREST AND DEBT EXPENSE (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Other Income and Expenses [Abstract] | ||
Interest expense | $ 19,558 | $ 14,337 |
Amortization of deferred financing costs | 1,019 | 956 |
Total interest and debt expense | $ 20,577 | $ 15,293 |
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