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Urban Edge Properties (UE)
NYSE:UE
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Urban Edge Properties
(NYSE:UE)
Rating:79Outperform
Price Target:
$22.50
▲(14.10%Upside)
Positive Factors
Acquisition Returns
The acquisition of The Village at Waugh Chapel is expected to earn a first-year levered return of approximately 9%.
Debt Management
Net debt to Adjusted EBITDAre has significantly decreased, indicating improved financial stability.
Financial Performance
The company reported a stronger-than-expected 3Q24 Adjusted FFO, driven by strong operating fundamentals and accretive acquisitions.
Negative Factors
Interest and Debt Costs
Lower interest and debt expenses reflect updated financing transactions, potentially enhancing profitability.
Lease Commencement
Executed but not yet rent commenced leases are expected to contribute significantly to future gross rent.
Urban Edge Properties (UE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.61B
Dividend Yield3.65%
Average Volume (3M)958.29K
Price to Earnings (P/E)23.7
Beta (1Y)0.88
Revenue Growth6.09%
EPS Growth-65.94%
CountryUS
Employees109
SectorReal Estate
Sector Strength51
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.46
Shares Outstanding125,791,100
10 Day Avg. Volume1,167,073
30 Day Avg. Volume958,295
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)1.81
Price to Sales (P/S)0.00
P/FCF Ratio12.20
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue1.37
Enterprise Value/Gross Profit7.87
Enterprise Value/Ebitda2.28
Forecast
1Y Price Target
$20.00Price Target Upside1.42% Upside
Rating ConsensusHold
Number of Analyst Covering1
Urban Edge Properties Business Overview & Revenue Model
Company DescriptionUrban Edge Properties is a NYSE listed real estate investment trust focused on managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the New York metropolitan region. Urban Edge owns 78 properties totaling 15.1 million square feet of gross leasable area.
How the Company Makes MoneyUrban Edge Properties generates revenue primarily through the leasing of retail spaces in its shopping centers and malls. The company earns rental income from both long-term leases with anchor tenants and shorter-term agreements with smaller retailers. Additionally, UE benefits from ancillary income sources such as percentage rents, where tenants pay a percentage of their sales, and fees from operating services provided to tenants. The company's revenue model is further supported by property management fees and income from parking facilities. Strategic redevelopments and property improvements also contribute to increasing property value and rental rates, enhancing overall profitability. Partnerships with major retailers and a diverse tenant mix are key factors that bolster Urban Edge Properties' financial performance.
Urban Edge Properties Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: -1.10%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with increases in FFO and NOI, record occupancy rates, and successful capital recycling. However, some challenges include tenant bankruptcies and reliance on nonrecurring billings. The overall sentiment is positive due to the outweighing highlights.Q2-2025 Updates
Positive Updates
Increase in FFO and NOI
FFO as adjusted increased by 12% over last year and 8% year-to-date. Same-property net operating income increased by 7.4% for the quarter and 5.6% year-to-date.
Strong Leasing and Occupancy Rates
Same-property occupancy increased to 96.7%, up 10 basis points from the prior quarter, and the shop occupancy rate reached a record high of 92.5%, up 270 basis points over the prior year.
Capital Recycling and Asset Sales
Year-to-date, $66 million of assets sold at a blended cap rate of 4.9%, including high-value, lower-growth properties. Capital recycling achieved through acquisition of $552 million at a 7.2% cap rate and sale of $493 million at a 5.2% cap rate.
Guidance Increase
Increased 2025 FFO as adjusted guidance by $0.02 per share to a new range of $1.40 to $1.44 per share, reflecting growth of 5% over 2024 at the midpoint.
Strong Balance Sheet
Resilient balance sheet with $1.5 billion in nonrecourse mortgages, 42 unencumbered properties valued at nearly $2 billion, and only 9% of total debt maturing through 2026.
Negative Updates
Tenant Bankruptcies
Bankruptcies of Big Lots and Party City with At-Home recently filing. The company expects to get one At-Home location back this year.
Nonrecurring Tenant Billings
Same-property NOI growth included $1.2 million of nonrecurring tenant billings.
Mortgage Loan Payoff
Paid off a $50 million mortgage loan with a 6.4% interest rate, using a line of credit with a lower rate, but affected liquidity.
Company Guidance
During the Urban Edge Properties Second Quarter 2025 Earnings Call, the company provided updated guidance for its financial performance, reflecting strong metrics and strategic initiatives. The firm reported a 12% increase in Funds from Operations (FFO) as adjusted year-over-year and an 8% increase year-to-date. Same-property net operating income (NOI) rose by 7.4% for the quarter and 5.6% year-to-date. Occupancy rates improved, with same-property occupancy reaching 96.7% and shop occupancy hitting a record high of 92.5%. The company raised its 2025 FFO as adjusted guidance by $0.02 per share, setting a new range of $1.40 to $1.44 per share, which indicates a 5% growth over 2024 at the midpoint. Urban Edge also highlighted its strategic strengths, including a $24 million signed but not open pipeline and a $142 million redevelopment pipeline expected to yield a 15% return. Additionally, the company has been actively recycling capital, acquiring $552 million in high-quality shopping centers at a 7.2% cap rate and selling $493 million in noncore assets at a 5.2% cap rate. The balance sheet remains resilient with $1.5 billion in nonrecourse mortgages and 42 unencumbered properties valued at nearly $2 billion, with only 9% of total debt maturing through 2026.Urban Edge Properties Financial Statement Overview
Summary
Urban Edge Properties shows solid revenue growth and improved operational efficiency. The balance sheet is strong with no debt and increasing equity, enhancing financial stability. However, declining net profit margin and income are concerns, and cash flow volatility needs monitoring.Income Statement
Urban Edge Properties shows a solid performance in terms of revenue growth, with a notable increase in total revenue from $416.92M in 2023 to $444.97M in 2024, indicating a growth rate of approximately 6.73%. The gross profit margin improved significantly, suggesting enhanced operational efficiency. However, the net profit margin decreased due to a drop in net income from $248.30M in 2023 to $80.21M in 2024, which warrants attention.75
Positive
Balance Sheet
The balance sheet reflects strong financial health with no total debt reported in 2024, enhancing the company's financial stability. The equity ratio stands robustly due to increased stockholders' equity, rising from $1.15B in 2023 to $1.36B in 2024. The return on equity saw a decline due to lower net income, but overall, the company's leverage and asset management appear prudent.82
Very Positive
Cash Flow
Urban Edge Properties maintained a positive operating cash flow of $153.18M in 2024, slightly down from $163.02M in 2023, indicating stable operational cash generation. The free cash flow remained positive, but the growth rate is concerning given the previous year's higher figures. The cash flow to net income ratios show effective cash management despite fluctuations in net income.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 461.04M | 444.97M | 416.92M | 397.94M | 425.08M | 330.10M |
| Gross Profit | 313.65M | 297.54M | 161.86M | 261.74M | 292.71M | 213.92M |
| EBITDA | 290.92M | 246.90M | 457.48M | 204.23M | 256.23M | 154.17M |
| Net Income | 109.47M | 72.50M | 248.30M | 46.17M | 102.69M | 93.59M |
Balance Sheet | ||||||
| Total Assets | 3.31B | 3.31B | 3.28B | 2.98B | 2.99B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 52.96M | 41.37M | 101.12M | 85.52M | 164.48M | 384.57M |
| Total Debt | 0.00 | 1.69B | 1.79B | 1.75B | 1.75B | 1.67B |
| Total Liabilities | 1.92B | 1.95B | 2.06B | 1.95B | 1.94B | 1.94B |
| Stockholders Equity | 1.39B | 1.28B | 1.15B | 976.99M | 995.33M | 951.57M |
Cash Flow | ||||||
| Free Cash Flow | 206.62M | 153.18M | 163.01M | 23.57M | 39.90M | 84.30M |
| Operating Cash Flow | 165.06M | 153.18M | 163.01M | 139.62M | 135.27M | 112.82M |
| Investing Cash Flow | -92.96M | -234.70M | -117.70M | -151.91M | -311.16M | -98.46M |
| Financing Cash Flow | -55.11M | -2.09M | 161.00K | -78.77M | -23.53M | -80.25M |
Urban Edge Properties Technical Analysis
Positive
19.72
Price Trends
18.73
Positive
18.46
Positive
19.74
Negative
Market Momentum
0.32
Negative
58.98
Neutral
54.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UE, the sentiment is Positive. The current price of 19.72 is above the 20-day moving average (MA) of 19.30, above the 50-day MA of 18.73, and below the 200-day MA of 19.74, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 58.98 is Neutral, neither overbought nor oversold. The STOCH value of 54.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UE.
Urban Edge Properties Risk Analysis
Urban Edge Properties disclosed 42 risk factors in its most recent earnings report. Urban Edge Properties reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Urban Edge Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.61B | 23.71 | 8.46% | 3.65% | 6.09% | -65.94% | |
76 Outperform | $3.07B | 31.84 | 3.32% | 7.14% | 2.74% | -37.22% | |
75 Outperform | $1.31B | 16.79 | 7.79% | 4.99% | 5.60% | 93.88% | |
67 Neutral | $1.16B | 15.63 | 6.25% | 7.09% | 11.68% | 37.31% | |
65 Neutral | $2.00B | 18.55 | 2.45% | 5.08% | 0.56% | -4.71% | |
59 Neutral | $1.22B | 32.16 | 5.44% | 1.93% | 4.36% | -8.72% | |
57 Neutral | $1.56B | ― | -13.01% | 13.30% | 16.69% | 39.04% |
* Real Estate Sector Average
Performance Comparison
UE
Urban Edge Properties
19.72
0.96
5.12%
ALEX
Alexander & Baldwin
17.98
0.28
1.58%
ESRT
Empire State Realty
7.24
-2.73
-27.38%
AAT
American Assets
19.03
-4.12
-17.80%
GNL
Global Net Lease
6.99
-0.09
-1.27%
BNL
Broadstone Net Lease
16.24
0.61
3.90%
Urban Edge Properties Corporate Events
Business Operations and StrategyFinancial Disclosures
Urban Edge Properties Reports Strong Q2 2025 Results
Positive
Jul 30, 2025
On July 30, 2025, Urban Edge Properties reported its financial results for the second quarter of 2025, highlighting a strong performance with record FFO as Adjusted per share and increased shop occupancy. The company raised its full-year guidance for FFO as Adjusted, reflecting confidence in its strategic direction and operational execution. During the quarter, Urban Edge advanced its capital recycling program by selling non-core properties, executed new leases, and activated redevelopment projects, positioning itself for continued growth and value creation.
The most recent analyst rating on (UE) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Urban Edge Properties stock, see the UE Stock Forecast page.
Executive/Board Changes
Urban Edge Promotes Heather Ohlberg to EVP
Neutral
May 12, 2025
On May 8, 2025, Urban Edge Properties announced the promotion of Heather Ohlberg to Executive Vice President, General Counsel, and Secretary, effective June 1, 2025. This follows the decision for Robert C. Milton III to step down from his role, effective May 31, 2025, with no disagreements cited regarding the company’s operations or policies.
The most recent analyst rating on (UE) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Urban Edge Properties stock, see the UE Stock Forecast page.
Executive/Board ChangesShareholder Meetings
Urban Edge Properties 2025 Annual Shareholders Meeting Results
Neutral
May 8, 2025
On May 7, 2025, Urban Edge Properties held its 2025 Annual Meeting of Shareholders, where three key proposals were voted on. Shareholders elected eight nominees to the Board of Trustees, ratified Deloitte & Touche LLP as the independent public accounting firm for 2025, and approved the executive compensation plan on a non-binding advisory basis.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.