Urban Edge Properties (UE) AI Stock Analysis

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Urban Edge Properties

(NYSE:UE)

69Neutral

Urban Edge Properties demonstrates strong financial health with solid revenue growth and a stable balance sheet. Despite a high P/E ratio, the attractive dividend yield provides some compensation. Technical indicators show mixed signals but do not indicate significant upward momentum. The recent earnings call was positive, highlighting strong leasing performance and financial results, although concerns about economic volatility remain. Overall, the stock is a stable investment with good financial positioning but requires attention to valuation and market conditions.

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. S&P 500 (SPY)

Market Cap

$2.48B

Dividend Yield3.74%

Average Volume (3M)1.14M

Price to Earnings (P/E)29.8

Beta (1Y)0.89

Revenue Growth6.18%

EPS Growth-72.21%

CountryUS

Employees109

SectorReal Estate

Sector Strength65

IndustryREIT - Diversified

Share Statistics

EPS (TTM)0.07

Shares Outstanding125,749,490

10 Day Avg. Volume707,247

30 Day Avg. Volume1,139,746

Financial Highlights & Ratios

PEG Ratio4.42

Price to Book (P/B)1.82

Price to Sales (P/S)0.00

P/FCF Ratio12.61

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$21.67

Price Target Upside18.54% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

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 Financial Statement Overview

Summary

Urban Edge Properties exhibits solid revenue growth and improved operational efficiency as shown in the income statement. A robust balance sheet with no debt and increasing equity underscores financial stability. However, a decrease in net profit margin and net income poses potential risks. Cash flow remains positive, though volatile, indicating the need for careful monitoring.

Income Statement

Positive

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.

Balance Sheet

Very Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
453.50M	444.97M	416.92M	397.94M	425.08M	330.10M
	Gross Profit
261.70M	297.54M	161.86M	261.74M	292.71M	213.92M
	EBIT
145.09M	96.51M	124.79M	108.87M	148.71M	58.14M
	EBITDA
274.75M	246.90M	457.48M	204.23M	256.23M	154.17M
	Net Income Common Stockholders
78.15M	72.50M	248.30M	46.17M	102.69M	93.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.05M	41.37M	101.12M	85.52M	164.48M	384.57M
	Total Assets
3.31B	3.31B	3.28B	2.98B	2.99B	2.94B
	Total Debt
0.00	1.69B	1.79B	1.75B	1.75B	1.67B
	Net Debt
1.66B	1.64B	1.69B	1.67B	1.59B	1.28B
	Total Liabilities
1.96B	1.95B	2.06B	1.95B	1.94B	1.94B
	Stockholders Equity
1.27B	1.28B	1.15B	976.99M	995.33M	951.57M
Cash Flow		Free Cash Flow
183.03M	153.18M	163.01M	23.57M	39.90M	84.30M
	Operating Cash Flow
162.84M	153.18M	163.01M	139.62M	135.27M	112.82M
	Investing Cash Flow
-210.22M	-234.70M	-117.70M	-151.91M	-311.16M	-98.46M
	Financing Cash Flow
50.43M	-2.09M	161.00K	-78.77M	-23.53M	-80.25M

Urban Edge Properties Technical Analysis

Technical Analysis Sentiment

Negative

Last Price18.28

Price Trends

50DMA

18.35

Negative

100DMA

19.32

Negative

200DMA

20.25

Negative

Market Momentum

MACD

0.09

Negative

RSI

47.31

Neutral

STOCH

42.62

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UE, the sentiment is Negative. The current price of 18.28 is below the 20-day moving average (MA) of 18.49, below the 50-day MA of 18.35, and below the 200-day MA of 20.25, indicating a bearish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 42.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAT	73 Outperform	$1.23B	15.05	6.74%	6.67%	12.64%	49.11%
UE	69 Neutral	$2.48B	29.76	6.48%	3.74%	6.18%	-72.21%
BNL	68 Neutral	$3.06B	27.17	3.79%	7.17%	0.73%	-37.65%
ALEX	67 Neutral	$1.29B	20.77	6.47%	5.04%	4.31%	39.56%
ESRT	64 Neutral	$1.29B	25.19	5.44%	1.83%	1.41%	3.11%
Sector *	60 Neutral	$2.82B	10.29	0.31%	8508.26%	5.91%	-17.42%
GNL	60 Neutral	$1.76B	―	-13.01%	12.88%	16.69%	39.04%

* Real Estate Sector Average

Performance Comparison

Urban Edge Properties

18.28

1.58

9.46%

ALEX

Alexander & Baldwin

17.74

1.76

11.01%

ESRT

Empire State Realty

7.61

-1.60

-17.37%

AAT

American Assets

19.87

-1.25

-5.92%

GNL

Global Net Lease

7.76

0.94

13.78%

BNL

Broadstone Net Lease

15.96

1.34

9.17%

Urban Edge Properties Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: 0.49%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong performance in the first quarter with record earnings and leasing achievements. However, there were concerns about economic volatility and a slowdown in the investment sales market.

Q1-2025 Updates

Positive Updates

Record FFO and Highest Quarterly Earnings

Reported FFO as adjusted of $0.35 per share, a 6% increase over the first quarter of last year and the highest quarterly earnings result in Urban Edge's 10-year history.

Strong Leasing Performance

Executed 42 leases totaling 434,000 square feet with a same-space cash leasing spread of 34%. Tenant retention ratio remains high at 95%.

New Record Shop Occupancy

Shop occupancy grew to a new record of 92.4%, with a leasing pipeline that remains strong.

Successful $25 Million Land Sale

Sold 8 acres of land at Bergen Town Center for $25 million, approved for 460 residential units. Under contract to sell 2 more properties for $41 million.

Redevelopment Projects Completion

Completed redevelopment projects at four locations at an aggregate cost of $22 million.

Healthy Balance Sheet and Liquidity

Approximately $800 million of total liquidity with a conservative balance sheet isolating market risk to individual assets.

Negative Updates

Investment Sales Market Slowdown

Early signs of a slowdown in the investment sales market with limited CMBS issuance since April.

Occupancy Decrease

Same-property lease rate decreased by 50 basis points over the previous quarter due to recapturing anchor spaces from bankrupt tenants.

Economic Volatility Impact

Potential increase in guidance was hindered by economic volatility in April.

Company Guidance

In the Urban Edge Properties first quarter 2025 earnings call, the company reported impressive financial results with an FFO as adjusted of $0.35 per share, marking a 6% increase over the previous year and a record high for the company. The same-property NOI rose by 3.8%, aided by robust leasing activity with 42 leases covering 434,000 square feet, including 18 new leases with a 34% cash leasing spread. Tenant retention remained strong at 95%, and shop occupancy reached a new high of 92.4%. The company completed $66 million in property dispositions at a 5% cap rate and reaffirmed its 2025 FFO guidance of $1.37 to $1.42 per share, despite economic uncertainties. Urban Edge highlighted its strategic advantages, including a dense market presence in the D.C. to Boston corridor, a robust $25 million signed-but-not-open pipeline, and a significant redevelopment pipeline expected to yield a 14% return. The company maintains a solid balance sheet with $800 million in liquidity and minimal debt maturities through 2026, positioning it well for future growth and economic volatility.

Urban Edge Properties Corporate Events

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.

Spark’s Take on UE Stock

According to Spark, TipRanks’ AI Analyst, UE is a Outperform.

Urban Edge Properties demonstrates solid financial health with strong revenue growth, no debt, and increasing equity. While the technical analysis indicates potential bearish momentum, the attractive dividend yield provides a cushion. The earnings call presented a positive outlook with record earnings and strategic advantages, despite market volatility concerns. Overall, the stock is positioned for stable performance, but attention to profit margins and market conditions is advisable.

To see Spark’s full report on UE stock, click here.

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.

Spark’s Take on UE Stock

According to Spark, TipRanks’ AI Analyst, UE is a Outperform.

To see Spark’s full report on UE stock, click here.

Business Operations and StrategyFinancial Disclosures

Urban Edge Properties Reports Strong Q1 2025 Results

Positive

Apr 30, 2025

Urban Edge Properties reported a strong first quarter for 2025, with a 6.0% increase in Funds from Operations (FFO) as Adjusted and a 3.8% rise in same-property Net Operating Income (NOI) compared to the previous year. The company achieved significant rent growth and high occupancy rates, while advancing its capital recycling efforts with $66 million in asset sales or contracts. Key activities included executing 118,000 square feet of new leases with major retailers and activating redevelopment projects expected to yield a 14% return. The company maintains robust liquidity and a stable balance sheet, with limited debt maturities until 2026.

Spark’s Take on UE Stock

According to Spark, TipRanks’ AI Analyst, UE is a Outperform.

Urban Edge Properties boasts a strong financial foundation, with robust revenue growth and an increasing equity base. However, the decline in net profit margins and fluctuating cash flow require attention. Technical indicators suggest potential bearish momentum, and while the stock may be overvalued, the attractive dividend yield is a redeeming factor. The recent earnings call was positive, highlighting strong leasing activities and future growth prospects, although challenges such as tenant bankruptcies and market conditions remain.

To see Spark’s full report on UE stock, click here.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.