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Urban Edge Properties (UE)
NYSE:UE
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Urban Edge Properties
(NYSE:UE)
Select Model
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Rating:64Neutral
Price Target:
$20.00
▲(3.09% Upside)
Urban Edge Properties shows strong financial performance and positive earnings call highlights, including increased FFO and successful acquisitions. However, technical indicators suggest a bearish trend, and valuation metrics indicate moderate pricing. The decline in free cash flow growth and minor setbacks in lease rates are potential concerns.
Positive Factors
Revenue Growth
Consistent revenue growth, albeit modest, indicates steady demand for Urban Edge's properties, supporting long-term stability.
Strong Leasing Activity
Robust leasing activity and high rent spreads demonstrate strong tenant demand and effective property management, enhancing revenue potential.
Improved Leverage Management
Improved leverage management reduces financial risk and enhances Urban Edge's ability to invest in growth opportunities.
Negative Factors
Decline in Free Cash Flow Growth
A decline in free cash flow growth could limit Urban Edge's capacity to fund new projects and investments, impacting future expansion.
Challenges in Acquisition Market
Intense competition in the acquisition market may hinder Urban Edge's growth strategy, affecting its ability to expand its portfolio.
Decline in Lease Rates
A decline in lease rates could signal weakening demand or pricing power, potentially affecting future revenue and profitability.
Urban Edge Properties (UE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.57B
Dividend Yield3.99%
Average Volume (3M)739.33K
Price to Earnings (P/E)22.1
Beta (1Y)0.66
Revenue Growth5.29%
EPS Growth-60.36%
CountryUS
Employees109
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.12
Shares Outstanding125,853,676
10 Day Avg. Volume969,547
30 Day Avg. Volume739,331
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)2.04
Price to Sales (P/S)5.86
P/FCF Ratio17.03
Enterprise Value/Market Cap1.70
Enterprise Value/Revenue9.33
Enterprise Value/Gross Profit13.56
Enterprise Value/Ebitda12.80
Forecast
1Y Price Target
$22.25Price Target Upside14.69% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.41
Revenue Forecast (FY)$433.89M
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 leasing retail spaces to tenants within its properties. The company's key revenue streams include rental income from long-term leases with various retail businesses, which range from national brands to local shops. Additionally, UE may earn income from property management services and redevelopment projects that increase the value of its holdings. The company also engages in partnerships with local businesses and municipalities, which can enhance its market presence and drive tenant demand. Factors contributing to its earnings include favorable market conditions in urban areas, effective property management, and the ability to attract and retain high-quality tenants.
Urban Edge Properties Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant growth in FFO, NOI, and leasing activity. The company showed effective capital recycling and maintained strong liquidity. However, there were minor setbacks in lease rates and acquisition challenges.Q3-2025 Updates
Positive Updates
Increased FFO and NOI Growth
FFO as adjusted increased by 4% year-over-year with a year-to-date growth of 7%. Same-property net operating income increased by 4.7% for the quarter and 5.4% year-to-date.
Successful Acquisition and Capital Recycling
Completed a $39 million acquisition of Brighton Mills, a grocery-anchored shopping center, funded through the sale of other properties. This acquisition is expected to have significant NOI growth potential.
Strong Leasing Activity
Executed 31 deals totaling 347,000 square feet, with new leases achieving a 61% rent spread and renewals a 9% spread. Same-property lease rate is at 96.6%.
Raised FFO Guidance
Increased 2025 FFO as adjusted guidance by $0.01 per share, representing 6% growth over 2024 at the midpoint.
Healthy Liquidity and Debt Management
Liquidity position strong at over $900 million with a new $123.6 million mortgage at a lower interest rate.
Development and Redevelopment Progress
Stabilized projects with a blended yield of 17% and activated new redevelopments with a projected yield of 15%.
Negative Updates
Decline in Lease Rates
Overall same-property lease rate declined by 20 basis points from last quarter due to lease rejection at Ledgewood Commons.
Challenges in Acquisition Market
Faced high competition in the acquisition market, losing three shopping centers in the last 90 days due to competitive bidding.
Company Guidance
During the Urban Edge Properties' Third Quarter 2025 earnings call, the company reported a 4% increase in FFO as adjusted over the same quarter last year, leading to a 7% year-to-date growth. The company highlighted a same-property net operating income (NOI) growth of 4.7% for the quarter and 5.4% year-to-date. Urban Edge completed a $39 million acquisition of the Brighton Mills shopping center, with a projected annual NOI growth exceeding 3%. The company raised its 2025 FFO guidance by $0.01 per share, setting a new range of $1.42 to $1.44 per share, reflecting a 6% growth over 2024. Leasing activity included 31 deals totaling 347,000 square feet, with new leases showing a significant 61% spread. The overall same-property lease rate was 96.6%. The company maintained strong liquidity with over $900 million available and a net debt-to-annualized EBITDA ratio of 5.6x. Urban Edge is focused on maintaining a growth trajectory, aiming for a sustainable 3% plus same-property NOI growth, supported by a robust signed-not-open pipeline and strategic capital recycling efforts.Urban Edge Properties Financial Statement Overview
Summary
Urban Edge Properties demonstrates solid financial health with strong profitability and improving leverage. The company has shown consistent revenue growth and efficient cash flow management, although past volatility in revenue growth and high debt levels are areas to monitor.Income Statement
Urban Edge Properties shows a strong gross profit margin of 68.03% in TTM, indicating efficient cost management. The net profit margin improved to 23.74% in TTM, reflecting enhanced profitability. Revenue growth is modest at 1.66% in TTM, but consistent growth over the years is a positive sign. EBIT and EBITDA margins are healthy, at 23.13% and 63.10% respectively, showcasing operational efficiency. However, the revenue growth rate has been volatile in previous years, which could pose a risk.75
Positive
Balance Sheet
The company's debt-to-equity ratio has improved significantly to 1.41 in TTM from 1.79 in 2022, indicating better leverage management. Return on equity is stable at 8.30% in TTM, showing decent profitability for shareholders. The equity ratio stands at 39.41%, suggesting a balanced capital structure. However, the high debt levels remain a concern, although the trend is improving.65
Positive
Cash Flow
Urban Edge Properties exhibits strong cash flow management with a free cash flow growth rate of 12.89% in TTM. The operating cash flow to net income ratio is robust, indicating good cash generation relative to earnings. The free cash flow to net income ratio is 1.25, reflecting efficient conversion of earnings into cash. Despite past fluctuations, the recent positive trend in free cash flow growth is encouraging.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 468.74M | 444.97M | 416.92M | 397.94M | 425.08M | 330.10M |
| Gross Profit | 322.58M | 297.54M | 161.86M | 261.74M | 292.71M | 213.92M |
| EBITDA | 341.77M | 246.90M | 449.66M | 204.23M | 256.23M | 154.17M |
| Net Income | 113.04M | 72.50M | 248.30M | 46.17M | 102.69M | 93.59M |
Balance Sheet | ||||||
| Total Assets | 3.33B | 3.31B | 3.28B | 2.98B | 2.99B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 77.80M | 41.37M | 101.12M | 85.52M | 164.48M | 384.57M |
| Total Debt | 1.69B | 1.69B | 1.79B | 1.75B | 1.75B | 1.67B |
| Total Liabilities | 1.94B | 1.95B | 2.06B | 1.95B | 1.94B | 1.94B |
| Stockholders Equity | 1.30B | 1.28B | 1.15B | 976.99M | 995.33M | 951.57M |
Cash Flow | ||||||
| Free Cash Flow | 184.17M | 153.18M | 163.01M | 23.57M | 39.90M | 84.30M |
| Operating Cash Flow | 184.17M | 153.18M | 163.01M | 139.62M | 135.27M | 112.82M |
| Investing Cash Flow | -99.50M | -234.70M | -117.70M | -151.91M | -311.16M | -98.46M |
| Financing Cash Flow | -29.52M | -2.09M | 161.00K | -78.77M | -23.53M | -80.25M |
Urban Edge Properties Technical Analysis
Negative
19.40
Price Trends
19.19
Negative
19.55
Negative
18.83
Positive
Market Momentum
0.07
Negative
47.33
Neutral
28.26
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 19.4 is above the 20-day moving average (MA) of 19.15, above the 50-day MA of 19.19, and above the 200-day MA of 18.83, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 47.33 is Neutral, neither overbought nor oversold. The STOCH value of 28.26 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.50B | 20.52 | 7.32% | 4.97% | -3.94% | 64.29% | |
66 Neutral | $980.19M | 8.59 | 4.82% | 5.13% | 1.30% | -6.14% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $1.11B | 31.73 | 3.80% | 2.16% | 0.45% | -24.85% | |
64 Neutral | $2.57B | 22.13 | 8.71% | 3.99% | 5.29% | -60.36% | |
62 Neutral | $1.85B | ― | -12.53% | 10.29% | -28.94% | -28.24% | |
61 Neutral | $3.31B | 37.77 | 3.05% | 6.72% | 3.87% | -37.59% |
* Real Estate Sector Average
UE
Urban Edge Properties
19.40
-1.37
-6.60%
ALEX
Alexander & Baldwin
20.65
4.02
24.17%
SAFE
Safehold
13.66
-4.55
-24.99%
ESRT
Empire State Realty
6.51
-3.69
-36.18%
GNL
Global Net Lease
8.45
2.00
31.01%
BNL
Broadstone Net Lease
17.49
2.42
16.06%
Urban Edge Properties Corporate Events
Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Urban Edge Properties Announces Strong Q3 2025 Results
Positive
Oct 29, 2025
On October 29, 2025, Urban Edge Properties announced strong financial results for the third quarter of 2025, with significant leasing activity and a raised full-year outlook. The company reported over 340,000 square feet of leasing transactions and increased its guidance for Funds from Operations (FFO) as Adjusted, reflecting expected annual growth. Urban Edge also acquired the Brighton Mills Shopping Center for $39 million, enhancing its presence in the Boston area. The acquisition was funded through a 1031 exchange, aligning with the company’s capital recycling strategy. Additionally, Urban Edge engaged in financing activities to optimize its debt structure, including securing a new mortgage and modifying existing loans to achieve interest savings.
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.