Exhibit 99.2
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| URBAN EDGE PROPERTIES |
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| SUPPLEMENTAL DISCLOSURE |
| PACKAGE |
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| Quarter ended September 30, 2015 |
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| Urban Edge Properties |
| 888 7th Avenue, New York, NY 10019 |
| NY Office: 212-956-2556 |
| www.uedge.com |
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| URBAN EDGE PROPERTIES |
| SUPPLEMENTAL DISCLOSURE |
| September 30, 2015 |
| (unaudited) |
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| TABLE OF CONTENTS |
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| Press Release | |
| Third Quarter 2015 Earnings Press Release | 1 |
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| Overview | |
| Summary Financial Results and Ratios | 10 |
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| Consolidated and Combined Financial Statements | |
| Consolidated and Combined Balance Sheets | 11 |
| Consolidated and Combined Statements of Income | 12 |
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| Non-GAAP Financial Measures and Supplemental Data | |
| Supplemental Schedule of Net Operating Income | 13 |
| Earnings Before Interest, Taxes, Depreciation and Amortization | 14 |
| Consolidated Statements of Funds from Operations | 15 |
| Market Capitalization, Debt Ratios and Liquidity | 16 |
| Additional Disclosures | 17 |
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| Leasing Data | |
| Tenant Concentration - Top Twenty-Five Tenants | 18 |
| Leasing Activity | 19 |
| Retail Portfolio Lease Expiration Schedule | 20 |
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| Property Data | |
| Property Status Report | 22 |
| Property Acquisitions and Dispositions | 26 |
| Development and Redevelopment Projects | 27 |
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| Debt Schedules | |
| Debt Summary | 28 |
| Mortgage Debt Summary and Maturity Schedule | 29 |
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| Urban Edge Properties | For additional information: |
| 888 Seventh Avenue | Mark Langer, EVP and |
| New York, NY 10019 | Chief Financial Officer |
| 212-956-2556 | |
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| | FOR IMMEDIATE RELEASE: | |
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Urban Edge Properties Reports Third Quarter 2015 Operating Results
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NEW YORK, NY, November 4, 2015 - Urban Edge Properties (NYSE:UE) announced today its financial results for the three and nine months ended September 30, 2015.
Third Quarter 2015 Highlights:
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| • | Generated Recurring Funds from Operations of $0.30 per diluted share for the quarter, and $0.90 per diluted share for the nine months ended September 30, 2015 |
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| • | Generated Funds from Operations ("FFO") of $0.32 per diluted share for the quarter and $0.63 per diluted share for the nine months ended September 30, 2015. FFO for the three months ended September 30, 2015 includes $0.02 per diluted share of tenant bankruptcy settlement income. FFO for the nine months ended September 30, 2015 includes $0.28 per diluted share in transaction costs and one-time equity awards associated with our spin-off from Vornado Realty Trust, offset by $0.01 per diluted share from other items |
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| • | Increased same-property Net Operating Income (“NOI”) by 4.1% (3.1% including properties in redevelopment) as compared to the third quarter of 2014, and by 3.6% (3.5% including properties in redevelopment) for the nine months ended September 30, 2015 as compared to the same period in 2014 |
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| • | Increased same-property retail portfolio occupancy 80 basis points to 96.6% as compared to September 30, 2014 which was unchanged as compared to June 30, 2015 |
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| • | Consolidated retail portfolio occupancy increased 70 basis points to 96.1% as compared to September 30, 2014 and by 10 basis points compared to June 30, 2015 |
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| • | Executed 32 new leases, renewals, and options during the quarter totaling 506,600 square feet. Same-space leases totaled 192,700 square feet at an average rent spread of 0.8%. |
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| • | Increased active development and redevelopment projects by $26.2 million to $105.7 million due to the addition of new projects at Garfield, NJ and Walnut Creek, CA |
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| • | Shadow development and redevelopment pipeline consists of approximately $175.0 million of additional projects to be completed over the next several years |
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| • | Ended the quarter with $197.3 million cash and cash equivalents and no amounts drawn on the $500.0 million revolving credit facility |
Financial Highlights:
Recurring FFO was $31.9 million, or $0.30 per diluted share, for the third quarter of 2015. Recurring FFO was $95.2 million, or $0.90 per diluted share, for the nine months ended September 30, 2015.
FFO was $33.5 million, or $0.32 per diluted share, for the third quarter of 2015 which includes $1.8 million of tenant bankruptcy settlement income and $0.2 million of nonrecurring transaction costs. FFO was $66.3 million, or $0.63 per diluted share, for the nine months ended September 30, 2015. FFO for the nine months ended September 30, 2015 includes $29.6 million of non-recurring transaction costs and one-time equity awards primarily associated with our spin-off from Vornado Realty Trust, $1.4 million of environmental remediation costs, and $1.0 million of debt restructuring costs, partially offset by $3.1 million of tenant bankruptcy settlement income.
Net income attributable to common shareholders was $18.9 million, or $0.19 per diluted share, for the quarter ended September 30, 2015, and $23.6 million, or $0.24 per diluted share, for the nine months ended September 30, 2015.
A reconciliation of net income attributable to common shareholders to FFO and the reconciling components of FFO to Recurring FFO are provided in the tables accompanying this press release.
Operating Highlights:
Same-property NOI increased 4.1% for the third quarter of 2015 as compared to the third quarter of 2014 due to higher occupancy, new rent commencements, contractual rent increases, higher recoveries and lower landlord expenses. Same-property NOI increased 3.6% for the nine months ended September 30, 2015 as compared to the same period of 2014. Same-property NOI including properties under redevelopment increased 3.1% for the third quarter of 2015 as compared to the third quarter in 2014. Same-property NOI including properties under redevelopment increased 3.5% for the nine months ended September 30, 2015 as compared to the same period of 2014. A reconciliation of income before income taxes to same-property NOI is provided in the tables accompanying this press release.
As of September 30, 2015, occupancy for the company’s consolidated retail portfolio was 96.1%, up 70 basis points compared to September 30, 2014, and up 10 basis points compared to June 30, 2015. On a same-property basis, retail portfolio occupancy was 96.6%, up 80 basis points compared to September 30, 2014, and unchanged as compared to June 30, 2015.
During the third quarter of 2015, the company executed 32 new leases, renewals and options totaling 506,600 square feet. The vast majority of leasing activity pertained to non same-space leases for assets in redevelopment and new pad expansions. The company executed 9 new leases on a non same-space basis during the quarter totaling 313,800 square feet at an average rental rate of $9.15 per square foot, including two warehouse leases totaling 218,400 square feet at an average rental rate of $5.15 per square foot.
On a same-space basis, 8 new leases were executed in the third quarter totaling 14,400 square feet at an average rental rate of $34.49 per square foot, representing a 16.5% decrease from prior cash rents (excluding the impact of straight-line rents). The limited number of same-space leases executed this quarter is not expected to be indicative of future activity. For the nine months ended September 30, 2015, 23 same-space leases were executed at an average rental rate of $27.63 per square foot, representing a 14.7% increase from prior cash rents.
During the third quarter of 2015, the company executed 15 lease renewals and options on a same-space basis totaling 178,400 square feet at an average rental rate of $17.62 per square foot, representing a 4.2% increase from prior cash rents. The total same-space leasing activity in the third quarter (new leases, renewals and options) aggregated 192,700 square feet at an average rental rate of $18.87 per square foot, a 0.8% increase from prior cash rents.
Development and Redevelopment Activities:
The company had approximately $105.7 million of active development and redevelopment projects underway of which $80.1 million remains to be funded as of September 30, 2015. Estimated unleveraged returns on these projects are approximately 9%. Active development and redevelopment projects increased $26.2 million during the quarter ended September 30, 2015 due to two additional projects at Garfield, NJ and Walnut Creek, CA.
The renovation of warehouses at East Hanover is ahead of schedule and the stabilization date has been moved up from 2018 to 2017. The conversion of Montehiedra Town Center, a 542,000 square-foot mall in Puerto Rico, into an outlet-focused retail mall remains on schedule for completion in late 2016. We recently executed leases with Polo and Gap.
The company continues to focus on its redevelopment pipeline, which includes approximately $175.0 million of planned expansions and renovations that the company expects to complete over the next several years.
Balance Sheet Highlights:
At September 30, 2015, the company’s total market capitalization (including debt and equity) was $3.5 billion comprised of 105.4 million shares of common shares outstanding (on a fully diluted basis) valued at approximately $2.3 billion and approximately $1.2 billion of debt. The company's ratio of net debt (net of cash) to total market capitalization was 29.8%. The company's net debt to annualized Adjusted EBITDA was 5.7x as of September 30, 2015. At September 30, 2015, the company had approximately $197.3 million of cash and cash equivalents on hand and nothing drawn on its $500.0 million revolving credit facility.
Non-GAAP Financial Measures
The company believes FFO (combined with the primary GAAP presentations) is a useful, supplemental measure of its operating performance that is a recognized metric used extensively by the real estate industry and, in particular REITs. The National Association of Real Estate Investment Trusts ("NAREIT") stated in its April 2002 White Paper on FFO, "Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves." The company also believes that Recurring FFO is a useful supplemental measure of its core operating performance that facilitates comparability of historical financial periods. FFO, as defined by NAREIT and the company, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of, or impairment charges related to, depreciable operating properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The company makes certain adjustments to FFO, which it refers to as Recurring FFO, to account for items it does not believe are representative of ongoing operating results, including transaction costs associated with acquisition and disposition activity and non-recurring revenue and expenses. The company believes that financial analysts, investors and stockholders are better served by the presentation of comparable period operating results generated from its FFO and Recurring FFO measures. The company's method of calculating FFO and Recurring FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
The company uses NOI, which is a non-GAAP financial measure, internally as a performance measure and believes NOI provides useful information to investors regarding the company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates and operating costs on an unleveraged basis, providing perspective not immediately apparent from our operating income or net income. In this release, the company has provided NOI on a same-property basis. Information provided on a same-property basis includes the results of properties that were owned and operated for the entirety of the reporting periods being compared and excludes properties that were under development/redevelopment and properties acquired, sold, or in the foreclosure process during the periods being compared. The company has also provided NOI on a same-property basis adjusted to include redevelopment properties.
Earnings before interest, tax, depreciation and amortization ("EBITDA") and Adjusted EBITDA are supplemental, non-GAAP measures utilized in various financial ratios. EBITDA and Adjusted EBITDA are presented to assist investors in the evaluation of REITs and as a measure of the company's operational performance as they exclude various items that do not relate to or are not indicative of our operating performance. Accordingly, the company's use of EBITDA and Adjusted EBITDA in various ratios provides a meaningful performance measure as it relates to our ability to meet various coverage tests for the stated period.
FFO, Recurring FFO, NOI, same-property NOI, EBITDA and Adjusted EBITDA are presented to assist investors in analyzing the company’s operating performance. Neither FFO nor Recurring FFO (i) represents cash flow from operations as defined by GAAP, (ii) is indicative of cash available to fund all cash flow needs, including the ability to make distributions, (iii) is an alternative to cash flow as a measure of liquidity, or (iv) should be considered as an alternative to net income (which is determined in accordance with GAAP) for purposes of evaluating the company’s operating performance. The company believes net income attributable to common shareholders is the most directly comparable GAAP financial measure to FFO and Recurring FFO while income before income taxes is the most directly comparable GAAP financial measure to NOI and same-property NOI and net income (loss) is the most directly comparable GAAP financial measure to EBITDA and Adjusted EBITDA. Reconciliations of these measures to their respective comparable GAAP measures have been provided in the tables accompanying this press release.
Reconciliation of Net Income Attributable to Common Shareholders to FFO and Recurring FFO
The following table reflects the reconciliation of FFO and Recurring FFO to net income attributable to common shareholders, the most directly comparable GAAP measure, for the three and nine months ended September 30, 2015.
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| | Three Months Ended September 30, 2015 | | Nine Months Ended September 30, 2015 |
| | (in thousands) | | (in thousands) |
| Net income attributable to common shareholders | $ | 18,860 |
| | $ | 23,559 |
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| Adjustments: | | | |
| Rental property depreciation and amortization | 13,452 |
| | 41,102 |
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| Limited partnership interests in operating partnership | 1,179 |
| | 1,605 |
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| Funds From Operations | 33,491 |
| | 66,266 |
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Funds From Operations per diluted share(1) | 0.32 |
| | 0.63 |
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| Transaction costs | 151 |
| | 22,437 |
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| One-time equity awards related to the spin-off | — |
| | 7,143 |
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| Environmental remediation costs | — |
| | 1,379 |
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| Tenant bankruptcy settlement income | (1,774 | ) | | (3,034 | ) |
| Debt restructuring expenses | — |
| | 1,034 |
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| Recurring Funds From Operations | $ | 31,868 |
| | $ | 95,225 |
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Recurring Funds From Operations per diluted share(1) | $ | 0.30 |
| | $ | 0.90 |
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Weighted average diluted shares(1) | 105,436 |
| | 105,351 |
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(1) Weighted average diluted shares used to calculate FFO per share and Recurring FFO per share for all periods presented is higher than the GAAP diluted weighted average shares as a result of the dilutive impact of the 6.1 million Operating Partnership and LTIP units which are redeemable into our common shares. These redeemable units are not included in the diluted weighted average share count for the periods presented for GAAP purposes because their inclusion is anti-dilutive.
FFO and Recurring FFO are non-GAAP financial measures. The company believes that FFO, as defined by NAREIT, is a widely used and appropriate supplemental measure of operating performance for REITs, and that it provides a relevant basis for comparison among REITs. The company believes that Recurring FFO provides additional comparability between historical financial periods. Refer to “Non-GAAP Financial Measures” above.
Reconciliation of Income before Income Taxes to NOI and Same-Property NOI
The following table reflects the reconciliation of NOI, same-property NOI (with and without redevelopment) to income before income taxes, the most directly comparable GAAP measure, for the three and nine months ended September 30, 2015 and 2014.
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| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| (Amounts in thousands) | 2015 | | 2014 | | 2015 | | 2014 |
| Income before income taxes | $ | 20,439 |
| | $ | 14,171 |
| | $ | 26,580 |
| | $ | 51,161 |
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| Interest income | (39 | ) | | (9 | ) | | (101 | ) | | (26 | ) |
| Interest and debt expense | 13,611 |
| | 14,303 |
| | 42,021 |
| | 40,571 |
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| Operating income | 34,011 |
| | 28,465 |
| | 68,500 |
| | 91,706 |
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| Depreciation and amortization | 13,603 |
| | 13,148 |
| | 41,568 |
| | 40,444 |
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| General and administrative expense | 6,385 |
| | 4,606 |
| | 25,503 |
| | 14,275 |
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| Transaction costs | 151 |
| | 4,683 |
| | 22,437 |
| | 4,683 |
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| Subtotal | 54,150 |
| | 50,902 |
| | 158,008 |
| | 151,108 |
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| Less: non-cash rental income | (1,943 | ) | | (2,643 | ) | | (5,741 | ) | | (7,325 | ) |
| Add: non-cash ground rent expense | 318 |
| | 442 |
| | 1,015 |
| | 1,176 |
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| NOI | 52,525 |
| | 48,701 |
| | 153,282 |
| | 144,959 |
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| Adjustments: | | | | | | | |
| NOI related to properties being redeveloped | (3,966 | ) | | (4,284 | ) | | (12,171 | ) | | (11,887 | ) |
| Tenant bankruptcy settlement and lease termination income | (1,947 | ) | | (44 | ) | | (3,207 | ) | | (260 | ) |
| Environmental remediation costs | — |
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| | 1,379 |
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| Management and development fee income from non-owned properties | (551 | ) | | (133 | ) | | (1,779 | ) | | (398 | ) |
| Other | (181 | ) | | (157 | ) | | (604 | ) | | (318 | ) |
| Subtotal adjustments | (6,645 | ) | | (4,618 | ) | | (16,382 | ) | | (12,863 | ) |
| Same-property NOI | $ | 45,880 |
| | $ | 44,083 |
| | $ | 136,900 |
| | $ | 132,096 |
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| Adjustments: | | | | | | | |
| NOI related to properties being redeveloped | 3,966 |
| | 4,284 |
| | 12,171 |
| | 11,887 |
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| Same-property NOI including properties in redevelopment | $ | 49,846 |
| | $ | 48,367 |
| | $ | 149,071 |
| | $ | 143,983 |
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NOI and same-property NOI are non-GAAP financial measures. The company believes that same-property NOI is a widely used and appropriate supplemental measure of operating performance for comparison among REITs. Refer to “Non-GAAP Financial Measures” above.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
The following table reflects the reconciliation of EBITDA and Adjusted EBITDA to net income, the most directly comparable GAAP measure, for the three and nine months ended September 30, 2015 and 2014. |
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| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| (Amounts in thousands) | 2015 | | 2014 | | 2015 | | 2014 |
| Net income | $ | 20,045 |
| | $ | 13,646 |
| | $ | 25,181 |
| | $ | 49,586 |
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| Depreciation and amortization | 13,603 |
| | 13,148 |
| | 41,568 |
| | 40,444 |
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| Interest and debt expense | 13,611 |
| | 14,303 |
| | 42,021 |
| | 40,571 |
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| Income tax expense | 394 |
| | 525 |
| | 1,399 |
| | 1,575 |
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| EBITDA | 47,653 |
| | 41,622 |
| | 110,169 |
| | 132,176 |
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| Adjustments for Adjusted EBITDA: | | | | | | | |
| Transaction costs | 151 |
| | 4,683 |
| | 22,437 |
| | 4,683 |
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| One-time equity awards related to the spin-off | — |
| | — |
| | 7,143 |
| | — |
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| Environmental remediation costs | — |
| | — |
| | 1,379 |
| | — |
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| Tenant bankruptcy settlement income | (1,774 | ) | | — |
| | (3,034 | ) | | — |
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| Adjusted EBITDA | $ | 46,030 |
| | $ | 46,305 |
| | $ | 138,094 |
| | $ | 136,859 |
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ADDITIONAL INFORMATION
For a copy of the company’s supplemental disclosure package, please access the "Investors" section of UE’s website at www.uedge.com. Our website also includes other financial information, including our Annual Report on Form 10-K, Form 10-Q, Current Reports on Form 8-K, and amendments to those reports.
ABOUT URBAN EDGE
Urban Edge Properties is a real estate investment trust that owns, operates and develops retail properties in high barrier-to-entry markets. At September 30, 2015, the portfolio comprises 79 shopping centers, three malls and a warehouse park adjacent to one of the centers, and aggregates 14,831,000 square feet.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this Press Release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,” “may” or other similar expressions in this Press Release. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict; these factors include, among others, the company's ability to complete its active development and redevelopment projects, the company's ability to engage in the projects in its planned expansion and redevelopment pipeline and the company's ability to achieve the estimated unleveraged returns for such projects. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2014, as amended.
For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Press Release. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this Press Release.
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| URBAN EDGE PROPERTIES | | | |
| DISCLOSURES | | | |
| As of September 30, 2015 | | | |
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Forward Looking Statements
Certain statements contained in this Supplemental Disclosure Package constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,” “may” or other similar expressions in this Supplemental Disclosure Package. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict; these factors include, among others, the company's ability to complete its active development and redevelopment projects, the company's ability to engage in the projects in its planned expansion and redevelopment pipeline and the company's ability to achieve the estimated unleveraged returns for such projects. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2014, as amended.
For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Supplemental Disclosure Package. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this Supplemental Disclosure Package.
Basis of Presentation
The information contained in the Supplemental Disclosure Package does not purport to disclose all items required by GAAP and is unaudited information. This Supplemental Disclosure Package should be read in conjunction with the company's most recent Form 10-K and Form 10-Q. The results of operations of any property acquired are included in the Company's financial statements since the date of its acquisition, although such properties may be excluded from certain metrics disclosed in this Supplemental Disclosure Package.
Use of Funds from Operations, Net Operating Income and Earnings Before Interest, Taxes, Depreciation and Amortization as a Non-GAAP Financial Measure
Urban Edge Properties ("we", "our", the "Company") believes Funds From Operations (FFO) (combined with the primary GAAP presentations) is a useful supplemental measure of its operating performance that is a recognized metric used extensively by the real estate industry and, in particular REITs. The National Association of Real Estate Investment Trusts (“NAREIT”) stated in its April 2002 White Paper on FFO, “Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.” The Company also believes that Recurring FFO is a useful supplemental measure of its core operating performance that facilitates comparability of historical financial periods. FFO, as defined by NAREIT, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of, or impairment charges related to, depreciable operating properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company makes certain adjustments to FFO, which it refers to as Recurring FFO, to account for items it does not believe are representative of ongoing operating results, including transaction costs associated with acquisition and disposition activity and non-recurring revenue and expenses. The Company believes that financial analysts, investors and stockholders are better served by the presentation of comparable period operating results generated from its FFO and Recurring FFO measures. The Company's method of calculating FFO and Recurring FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
The Company uses Net Operating Income (NOI), which is a non-GAAP financial measure, internally as a performance measure and believes NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and, when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates and operating costs on an unleveraged basis. In this Supplemental Disclosure Package, the Company has provided NOI information on a same-property basis. Information provided on a same-property basis includes the results of properties that were owned and operated for the entirety of the reporting periods being compared and excludes properties for which significant redevelopment occurred or are in the foreclosure process during the periods being compared.
Earnings before interest, taxes, depreciation and amortization (EBITDA) is a widely used performance measure and is provided as a supplemental measure of operating performance. The Company makes certain adjustments to EBITDA, which it refers to as Adjusted EBITDA, to account for items it does not believe are representative of ongoing operating results. Given the nature of the Company's business as a real estate owner and operator, it believes that the use of EBITDA and Adjusted EBITDA as opposed to earnings in various financial ratios is helpful to investors as a measure of its operational performance because these computations exclude various items included in earnings that do not relate to or are not indicative of its operating performance, such as gains and losses on sales of real estate and depreciation and amortization, and includes the results of operations of real estate properties that were sold either during or subsequent to the end of a particular reporting period, which are included in earnings on a net basis. Accordingly, the Company believes that the use of EBITDA and Adjusted EBITDA as opposed to earnings in various ratios, provides a meaningful performance measure as it relates to the Company's ability to meet various coverage tests for the stated periods.
EBITDA and Adjusted EBITDA should not be considered as an alternative to earnings as an indicator of the Company's financial performance, or as an alternative to cash flow from operating activities as a measure of its liquidity. The Company's computation of EBITDA and Adjusted EBITDA may differ from the methodology utilized by other companies. Investors are cautioned that items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing the Company’s financial performance.
FFO, Recurring FFO, NOI, same-property NOI, EBITDA and Adjusted EBITDA are presented to assist investors in analyzing the Company’s operating performance. Neither FFO nor Recurring FFO (i) represents cash flow from operations as defined by GAAP, (ii) is indicative of cash available to fund all cash flow needs, including the ability to make distributions, (iii) is an alternative to cash flow as a measure of liquidity, or (iv) should be considered as an alternative to net income (which is determined in accordance with GAAP) for purposes of evaluating the Company’s operating performance. The Company believes net income attributable to common shareholders is the most directly comparable GAAP financial measure to FFO and Recurring FFO while income before income taxes is the most directly comparable GAAP financial measure to NOI and same-property NOI and net income (loss) is the most directly comparable GAAP financial measure to EBITDA and adjusted EBITDA. Reconciliations of these measures to their respective comparable GAAP measures have been provided in the accompanying tables.
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| URBAN EDGE PROPERTIES | | |
| SUMMARY FINANCIAL RESULTS AND RATIOS | | |
| For the three and nine months ended September 30, 2015 (unaudited) | |
| (in thousands, except per share, sf, rent psf and financial ratio data) | | |
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| | | Three months ended | | Nine months ended |
| | | September 30, 2015 | | September 30, 2015 |
| Summary Financial Results | | | | |
| Total revenue | | $ | 79,825 |
| | $ | 242,323 |
|
General & administrative expenses (G&A) - Adjusted(1) | | $ | 6,385 |
| | $ | 18,360 |
|
Adjusted EBITDA(9) | | $ | 46,030 |
| | $ | 138,094 |
|
| Net income attributable to common shareholders | | $ | 18,860 |
| | $ | 23,559 |
|
| Earnings per diluted share | | $ | 0.19 |
| | $ | 0.24 |
|
| Funds from operations (FFO) | | $ | 33,491 |
| | $ | 66,266 |
|
| FFO per diluted share | | $ | 0.32 |
| | $ | 0.63 |
|
| Recurring FFO | | $ | 31,868 |
| | $ | 95,225 |
|
| Recurring FFO per diluted share | | $ | 0.30 |
| | $ | 0.90 |
|
| Total dividends paid per share | | $ | 0.20 |
| | $ | 0.60 |
|
| Stock trading price low-high range | | $20.12 to $23.06 |
| | $20.12 to $24.67 |
|
Weighted average diluted shares used in EPS computations(2) | | 99,286 |
| | 99,272 |
|
Weighted average diluted shares used in FFO computations(2) | | 105,436 |
| | 105,351 |
|
| | | | | |
| Summary Property, Operating and Financial Data | | | | |
| # of Total properties / # of Retail properties | | 83 / 82 |
| | |
Gross leasable area (GLA) sf - retail portfolio(4)(6) | | 13,889,000 |
| | |
Weighted average annual in-place rent psf - retail portfolio(4)(6)(8) | | $ | 16.57 |
| | |
| Consolidated occupancy at end of period | | 95.0 | % | | |
Consolidated retail portfolio occupancy at end of period(6) | | 96.1 | % | | |
Same-property retail portfolio occupancy at end of period(6)(3) | | 96.6 | % | | |
Same-property retail portfolio physical occupancy at end of period(5)(6)(3) | | 95.9 | % | | |
Same-property NOI growth - cash basis(3) | | 4.1 | % | | 3.6 | % |
| Same-property NOI growth, including redevelopment properties | | 3.1 | % | | 3.5 | % |
| Cash NOI margin - Total portfolio | | 67.2 | % | | 64.5 | % |
| Expense recovery ratio - Total Portfolio, including redevelopment | | 93.9 | % | | 93.8 | % |
| New, renewal and option rent spread - cash basis | | 0.8 | % | | 8.2 | % |
Net debt to total market capitalization(7) | | 29.8 | % | | 29.8 | % |
Net debt to Adjusted EBITDA(7) | | 5.7 | x | | 5.7 | x |
Adjusted EBITDA to interest expense(9) | | 3.6 | x | | 3.5 | x |
Adjusted EBITDA to fixed charges(9) | | 2.6 | x | | 2.6 | x |
| | | | | |
(1) G&A expenses excludes $1.7 million and $5.0 million reclassified to property operating expenses for the three and nine months ended September 30, 2015, respectively, and an additional $7.1 million for one-time equity expenses associated with the spin-off for the nine months ended September 30, 2015.
(2) Weighted average diluted shares used to calculate FFO per share and Recurring FFO per share for the periods presented is higher than the GAAP diluted weighted average shares as a result of the dilutive impact of the 6.1 million units of limited partnership interests in the operating partnership which are redeemable for our common shares. These redeemable units are not included in the diluted weighted average share count for GAAP purposes for the periods presented because their inclusion is anti-dilutive.
(3) The same-property pool for both NOI and occupancy includes retail properties the company consolidated, owned and operated for the entirety of both periods being compared and excludes properties for which significant redevelopment occurred during either of the periods being compared, or properties in foreclosure.
(4) GLA - retail portfolio excludes 942,000 square feet of warehouses. Weighted average annual rent per square foot for our retail portfolio and warehouses was $16.04.
(5) Physical occupancy includes tenants that have access to their leased space and includes dark and paying tenants.
(6) Our retail portfolio includes shopping centers and malls and excludes warehouses.
(7) See computation on page 16.
(8) Excludes signed leases that have not commenced for all retail properties.
(9) See computation on page 14.
|
| | |
| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED AND COMBINED BALANCE SHEETS | | |
| As of September 30, 2015 (unaudited) and December 31, 2014 | | |
| (in thousands) | | |
| | | |
|
| | | | | | | |
| | September 30, | | December 31, |
| | 2015 | | 2014 |
| ASSETS | | | |
|
| Real estate, at cost: | |
| | |
|
| Land | $ | 374,543 |
| | $ | 378,096 |
|
| Buildings and improvements | 1,616,769 |
| | 1,632,228 |
|
| Construction in progress | 53,209 |
| | 8,545 |
|
| Furniture, fixtures and equipment | 3,879 |
| | 3,935 |
|
| Total | 2,048,400 |
| | 2,022,804 |
|
| Accumulated depreciation and amortization | (500,654 | ) | | (467,503 | ) |
| Real estate, net | 1,547,746 |
| | 1,555,301 |
|
| Cash and cash equivalents | 197,338 |
| | 2,600 |
|
| Cash held in escrow and restricted cash | 9,832 |
| | 9,967 |
|
| Tenant and other receivables, net of allowance for doubtful accounts of $2,106 and $2,432, respectively | 9,741 |
| | 11,424 |
|
| Receivable arising from the straight-lining of rents, net of allowance for doubtful accounts of $149 and $0, respectively | 88,888 |
| | 89,199 |
|
| Identified intangible assets, net of accumulated amortization of $21,660 and $20,672, respectively | 32,793 |
| | 34,775 |
|
| Deferred leasing costs, net of accumulated amortization of $13,057 and $12,121, respectively | 17,674 |
| | 17,653 |
|
| Deferred financing costs, net of accumulated amortization of $7,394 and $6,813, respectively | 11,702 |
| | 10,353 |
|
| Prepaid expenses and other assets | 12,007 |
| | 10,257 |
|
| Total assets | $ | 1,927,721 |
| | $ | 1,741,529 |
|
| | | | |
| LIABILITIES AND EQUITY | |
| | |
|
| Liabilities: | | | |
| Mortgages payable | $ | 1,246,155 |
| | $ | 1,288,535 |
|
| Identified intangible liabilities, net of accumulated amortization of $63,373 and $62,395, respectively | 154,507 |
| | 160,667 |
|
| Accounts payable and accrued expenses | 38,008 |
| | 26,924 |
|
| Other liabilities | 10,134 |
| | 6,540 |
|
| Total liabilities | 1,448,804 |
| | 1,482,666 |
|
| Commitments and contingencies | | | |
| Shareholders’ equity: | | | |
| Common shares: $0.01 par value; 500,000,000 shares authorized and 99,291,161 shares issued and outstanding | 993 |
| | — |
|
| Additional paid-in capital | 478,314 |
| | — |
|
| Accumulated earnings (deficit) | (33,852 | ) | | — |
|
| Noncontrolling interests: | | | |
| Redeemable noncontrolling interests | 33,104 |
| | — |
|
| Noncontrolling interest in consolidated subsidiaries | 358 |
| | 341 |
|
| Vornado equity | — |
| | 258,522 |
|
| Total equity | 478,917 |
| | 258,863 |
|
| Total liabilities and equity | $ | 1,927,721 |
| | $ | 1,741,529 |
|
|
| | |
| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED AND COMBINED STATEMENTS OF INCOME | | |
| For the three and nine months ended September 30, 2015 and 2014 (unaudited) | |
| (in thousands, except per share amounts) | | |
| | | |
|
| | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| REVENUE | |
| | |
| | | | |
| Property rentals | $ | 58,111 |
| | $ | 58,125 |
| | $ | 173,077 |
| | $ | 173,175 |
|
| Tenant expense reimbursements | 19,188 |
| | 18,052 |
| | 63,942 |
| | 61,751 |
|
| Management and development fees | 551 |
| | 133 |
| | 1,779 |
| | 398 |
|
| Other income | 1,975 |
| | 106 |
| | 3,525 |
| | 544 |
|
| Total revenue | 79,825 |
| | 76,416 |
| | 242,323 |
| | 235,868 |
|
| EXPENSES | |
| | |
| | | | |
| Depreciation and amortization | 13,603 |
| | 13,148 |
| | 41,568 |
| | 40,444 |
|
| Real estate taxes | 12,227 |
| | 11,820 |
| | 37,568 |
| | 37,230 |
|
| Property operating | 10,494 |
| | 11,074 |
| | 38,002 |
| | 38,973 |
|
| General and administrative | 6,385 |
| | 4,606 |
| | 25,503 |
| | 14,275 |
|
| Ground rent | 2,527 |
| | 2,593 |
| | 7,606 |
| | 7,803 |
|
| Transaction costs | 151 |
| | 4,683 |
| | 22,437 |
| | 4,683 |
|
| Provision for doubtful accounts | 427 |
| | 27 |
| | 1,139 |
| | 754 |
|
| Total expenses | 45,814 |
| | 47,951 |
| | 173,823 |
| | 144,162 |
|
| Operating income | 34,011 |
| | 28,465 |
| | 68,500 |
| | 91,706 |
|
| Interest income | 39 |
| | 9 |
| | 101 |
| | 26 |
|
| Interest and debt expense | (13,611 | ) | | (14,303 | ) | | (42,021 | ) | | (40,571 | ) |
| Income before income taxes | 20,439 |
| | 14,171 |
| | 26,580 |
| | 51,161 |
|
| Income tax expense | (394 | ) | | (525 | ) | | (1,399 | ) | | (1,575 | ) |
| Net income | 20,045 |
| | 13,646 |
| | 25,181 |
| | 49,586 |
|
| Less net income attributable to noncontrolling interests in: | | | | | | | |
| Operating partnership | (1,179 | ) | | — |
| | (1,605 | ) | | — |
|
| Consolidated subsidiaries | (6 | ) | | (5 | ) | | (17 | ) | | (16 | ) |
| Net income attributable to common shareholders | $ | 18,860 |
| | $ | 13,641 |
| | $ | 23,559 |
| | $ | 49,570 |
|
| | | | | | | | |
| Earnings per common share - Basic: | $ | 0.19 |
| | $ | 0.14 |
| | $ | 0.24 |
| | $ | 0.50 |
|
| Earnings per common share - Diluted: | $ | 0.19 |
| | $ | 0.14 |
| | $ | 0.24 |
| | $ | 0.50 |
|
| Weighted average shares outstanding - Basic | 99,252 |
| | 99,248 |
| | 99,250 |
| | 99,248 |
|
| Weighted average shares outstanding - Diluted | 99,286 |
| | 99,248 |
| | 99,272 |
| | 99,248 |
|
|
| | |
| URBAN EDGE PROPERTIES | | |
| SUPPLEMENTAL SCHEDULE OF NET OPERATING INCOME | | |
| For the three and nine months ended September 30, 2015 and 2014 (unaudited) | |
| (in thousands) | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Percent Change | | Nine Months Ended September 30, | | Percent Change |
| | 2015 | | 2014 | | | 2015 | | 2014 | |
Total cash NOI(1) | | | | | | | | | | | |
| Total revenue | $ | 77,331 |
| | $ | 73,640 |
| | 5.0% | | $ | 234,803 |
| | $ | 228,145 |
| | 2.9% |
| Total property operating expenses | (25,357 | ) | | (25,072 | ) | | 1.1% | | (83,300 | ) | | (83,584 | ) | | (0.3)% |
| Cash NOI - total portfolio | $ | 51,974 |
| | $ | 48,568 |
| | 7.0% | | $ | 151,503 |
| | $ | 144,561 |
| | 4.8% |
| | | | | | | | | | | | |
| NOI margin (NOI / Total revenue) | 67.2 | % | | 66.0 | % | | | | 64.5 | % | | 63.4 | % | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Same-property cash NOI(2) |
| |
| | | | | | | | |
| Property rentals | $ | 50,950 |
| | $ | 50,152 |
| | | | $ | 151,809 |
| | $ | 149,601 |
| | |
| Tenant expense reimbursements | 17,808 |
| | 16,302 |
| | | | 59,418 |
| | 57,062 |
| | |
| Other income | 62 |
| | 55 |
| | | | 249 |
| | 231 |
| | |
| Total revenue | 68,820 |
| | 66,509 |
| | 3.5% | | 211,476 |
| | 206,894 |
| | 2.2% |
| Real estate taxes | (11,518 | ) | | (10,998 | ) | | | | (35,380 | ) | | (34,542 | ) | | |
| Property operating | (8,924 | ) | | (9,367 | ) | | | | (31,894 | ) | | (33,175 | ) | | |
| Ground rent | (2,211 | ) | | (2,141 | ) | | | | (6,591 | ) | | (6,579 | ) | | |
Provision for doubtful accounts(4) | (287 | ) | | 80 |
| | | | (711 | ) | | (502 | ) | | |
| Total property operating expenses | (22,940 | ) | | (22,426 | ) | | 2.3% | | (74,576 | ) | | (74,798 | ) | | (0.3)% |
Same-property cash NOI(3) | $ | 45,880 |
| | $ | 44,083 |
| | 4.1% | | $ | 136,900 |
| | $ | 132,096 |
| | 3.6% |
| | | | | | | | | | | | |
| NOI related to properties being redeveloped | $ | 3,966 |
| | $ | 4,284 |
| | | | $ | 12,171 |
| | $ | 11,887 |
| | |
Same-property cash NOI including properties in redevelopment | $ | 49,846 |
| | $ | 48,367 |
| | 3.1% | | $ | 149,071 |
| | $ | 143,983 |
| | 3.5% |
| | | | | | | | | | | | |
Same-property physical occupancy(3) | 95.9 | % | | 95.0 | % | | | | | | | | |
Same-property leased occupancy(3) | 96.6 | % | | 95.8 | % | | | | | | | | |
| Number of properties included in same-property analysis | 79 |
| | | | | | | | | | |
| | | | | | | | | | | | |
(1) Total revenues and property operating expense amounts have been adjusted to exclude management and development fee income and non-cash amounts. Revenue includes cash received from tenant bankruptcy settlements and lease termination fees.
(2) Excludes the effects of straight-line rent, above/below-market rents, lease termination fees and other items that affect the comparability of the same-property results, if any.
(3) The same-property pool for both NOI and occupancy includes retail properties the company consolidated, owned and operated for the entirety of both periods being compared and excludes properties for which significant redevelopment occurred during either of the periods being compared, or properties in foreclosure. Same-property occupancy includes dark and paying tenants.
| |
(4) | Excludes $0.1 million and $0.4 million of bad debt expense related to non-cash straight-line rents for the three and nine months ended September 30, 2015, respectively. No such reserve was recorded in 2014. |
|
| | |
| URBAN EDGE PROPERTIES | | |
| EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION and AMORTIZATION (EBITDA) |
| For the three and nine months ended September 30, 2015 and 2014 (unaudited) | |
| (in thousands) | | |
| | | |
|
| | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| Net income | $ | 20,045 |
| | $ | 13,646 |
| | $ | 25,181 |
| | $ | 49,586 |
|
| Depreciation and amortization | 13,603 |
| | 13,148 |
| | 41,568 |
| | 40,444 |
|
| Interest expense | 12,952 |
| | 13,867 |
| | 39,942 |
| | 39,355 |
|
| Amortization of deferred financing costs | 659 |
| | 436 |
| | 2,079 |
| | 1,216 |
|
| Income tax expense | 394 |
| | 525 |
| | 1,399 |
| | 1,575 |
|
| EBITDA | 47,653 |
| | 41,622 |
| | 110,169 |
| | 132,176 |
|
| Adjustments for Adjusted EBITDA: | | | | | | | |
| Transaction costs | 151 |
| | 4,683 |
| | 22,437 |
| | 4,683 |
|
| One-time equity awards related to the spin-off | — |
| | — |
| | 7,143 |
| | — |
|
| Environmental remediation costs | — |
| | — |
| | 1,379 |
| | — |
|
| Tenant bankruptcy settlement income | (1,774 | ) | | — |
| | (3,034 | ) | | — |
|
| Adjusted EBITDA | $ | 46,030 |
| | $ | 46,305 |
| | $ | 138,094 |
| | $ | 136,859 |
|
| | | | | | | | |
| Interest expense | $ | 12,952 |
| | $ | 13,867 |
| | $ | 39,942 |
| | $ | 39,355 |
|
| | | | | | | | |
| Adjusted EBITDA to interest expense | 3.6 | x | | 3.3 | x | | 3.5 | x | | 3.5 | x |
| | | | | | | | |
| Fixed charges | | | | | | | |
Interest and debt expense(1) | $ | 13,611 |
| | $ | 14,303 |
| | $ | 42,021 |
| | $ | 40,571 |
|
| Scheduled principal amortization | 3,969 |
| | 3,524 |
| | 11,606 |
| | 10,809 |
|
| Total fixed charges | $ | 17,580 |
| | $ | 17,827 |
| | $ | 53,627 |
| | $ | 51,380 |
|
| | | | | | | | |
| Adjusted EBITDA to fixed charges | 2.6 | x | | 2.6 | x | | 2.6 | x | | 2.7 | x |
| | | | | | | | |
(1) Includes amortization of deferred financing costs
|
| | |
| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS | |
| For the three and nine months ended September 30, 2015 and 2014 (unaudited) | |
| (in thousands, except per share data) | | |
| | | |
|
| | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2015 | 2014 | | 2015 | 2014 |
| Net income attributable to common shareholders | $ | 18,860 |
| $ | 13,641 |
| | $ | 23,559 |
| $ | 49,570 |
|
| Adjustments: | | | | | |
| Rental property depreciation and amortization | 13,452 |
| 13,036 |
| | 41,102 |
| 40,107 |
|
Limited partnership interests in operating partnership(1) | 1,179 |
| — |
| | 1,605 |
| — |
|
| Funds From Operations | 33,491 |
| 26,677 |
| | 66,266 |
| 89,677 |
|
FFO per diluted share(2) | 0.32 |
| 0.25 |
| | 0.63 |
| 0.85 |
|
| Adjustments for Recurring FFO: | | | | | |
| Transaction costs | 151 |
| 4,683 |
| | 22,437 |
| 4,683 |
|
| One-time equity awards related to the spin-off | — |
| — |
| | 7,143 |
| — |
|
| Environmental remediation costs | — |
| — |
| | 1,379 |
| — |
|
| Tenant bankruptcy settlement income | (1,774 | ) | — |
| | (3,034 | ) | — |
|
| Debt restructuring expenses | — |
| — |
| | 1,034 |
| — |
|
| Recurring Funds From Operations | $ | 31,868 |
| $ | 31,360 |
| | $ | 95,225 |
| $ | 94,360 |
|
Recurring FFO per diluted share(2) | $ | 0.30 |
| $ | 0.30 |
| | $ | 0.90 |
| $ | 0.90 |
|
| | | | | | |
Weighted Average Diluted Shares(2) | 105,436 |
| 105,436 |
| | 105,351 |
| 105,351 |
|
(1) Represents earnings allocated to LTIP and OP unit holders for unissued common shares which have been excluded for purposes of calculating earnings per diluted share for the periods presented. FFO and Recurring FFO calculations include earnings allocated to LTIP and OP unit holders and the respective weighted average share totals include the redeemable shares outstanding as their inclusion is dilutive.
(2) Weighted average diluted shares used to calculate FFO per share and Recurring FFO per share for the periods presented are higher than the GAAP diluted weighted average shares as a result of the dilutive impact of the 6.1 million OP and LTIP units which are redeemable into our common stock. These redeemable units are not included in the diluted weighted average share count for GAAP purposes because their inclusion is anti-dilutive.
|
| | |
| URBAN EDGE PROPERTIES | | |
| MARKET CAPITALIZATION, DEBT RATIOS, AND LIQUIDITY | | |
| As of September 30, 2015 (unaudited) | | |
| (in thousands, except share data) | | |
| | | |
|
| | | |
| | September 30, 2015 |
| Closing market price of common stock | $ | 21.59 |
|
| Common stock shares | |
| Basic common shares | 99,255,701 |
|
| Diluted common shares: | |
| Unvested restricted common shares (treasury method, closing price) | 35,460 |
|
| LTIP units (redeemable into common shares) | 433,040 |
|
| OP units (redeemable into common shares) | 5,717,184 |
|
| Diluted common shares | 105,441,385 |
|
| | |
| Equity market capitalization | $ | 2,276,480 |
|
| | |
| | |
| Total consolidated debt | $ | 1,246,155 |
|
| Cash and cash equivalents | (197,338 | ) |
| Net debt | $ | 1,048,817 |
|
| | |
Net Debt to Adjusted EBITDA(1) | 5.7 | x |
| | |
| Total consolidated debt | $ | 1,246,155 |
|
| Equity market capitalization | 2,276,480 |
|
| Total market capitalization | $ | 3,522,635 |
|
| | |
| Net debt to total market capitalization at applicable market price | 29.8 | % |
| | |
| | |
| Gross real estate investments, at cost | $ | 2,044,521 |
|
| | |
| Net debt to gross real estate investments | 51.3 | % |
| | |
| | |
(1) Adjusted EBITDA for the period has been annualized.
|
| | |
| URBAN EDGE PROPERTIES | | |
| ADDITIONAL DISCLOSURES | |
| (in thousands) | | |
| | | |
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | | 2015 | | 2014 | | 2015 | | 2014 |
| Certain non-cash items: | | | |
| | | | |
Straight-line rental income(1) | | $ | 41 |
| | $ | 702 |
| | $ | 68 |
| | $ | 1,502 |
|
Amortization of below-market lease intangibles, net(1) | | 2,019 |
| | 1,941 |
| | 6,070 |
| | 5,823 |
|
Straight-line ground rent expense(2) | | (75 | ) | | (199 | ) | | (287 | ) | | (447 | ) |
Amortization of below-market lease intangibles, lessee(2) | | (243 | ) | | (243 | ) | | (729 | ) | | (729 | ) |
Amortization of deferred financing costs(4) | | (659 | ) | | (436 | ) | | (2,079 | ) | | (1,216 | ) |
Capitalized interest(4) | | 483 |
| | — |
| | 1,340 |
| | — |
|
Share-based compensation expense(3) | | (879 | ) | | (757 | ) | | (9,148 | ) | | (2,986 | ) |
| | | | | | | | | |
| Capital expenditures: | | | | | | | | |
| Development and redevelopment costs | | $ | 4,526 |
| | $ | 886 |
| | $ | 14,957 |
| | $ | 5,890 |
|
| Maintenance capital expenditures | | 3,356 |
| | 8,761 |
| | 10,455 |
| | 10,874 |
|
| Leasing commissions | | 995 |
| | 405 |
| | 1,589 |
| | 969 |
|
| Tenant improvements and allowances | | 1,823 |
| | 141 |
| | 2,491 |
| | 2,297 |
|
| Total capital expenditures | | $ | 10,700 |
| | $ | 10,193 |
| | $ | 29,492 |
| | $ | 20,030 |
|
| | | | | | | | | |
| | | September 30, 2015 | | December 31, 2014 | | | | |
| Prepaid expenses and other assets: | | | | | | | | |
| Other assets | | $ | 2,368 |
| | $ | 2,983 |
| | | | |
| Prepaid expenses: | | | | | | | | |
| Real estate taxes | | 5,274 |
| | 4,298 |
| | | | |
| Insurance | | 3,340 |
| | 2,121 |
| | | | |
| Rent | | 708 |
| | 692 |
| | | | |
| Licenses/Fees | | 317 |
| | 163 |
| | | | |
| Total prepaid expenses and other assets | | $ | 12,007 |
| | $ | 10,257 |
| | | | |
| | | | | | | | | |
| Accounts payable and accrued expenses: | | | | | | | | |
| Tenant prepaid/deferred revenue | | $ | 13,277 |
| | $ | 11,253 |
| | | | |
| Accrued capital expenditures and leasing costs | | 6,977 |
| | 2,881 |
| | | | |
| Interest payable | | 4,527 |
| | 3,219 |
| | | | |
| Tenant security deposits | | 3,690 |
| | 3,595 |
| | | | |
| Income and other tax payable | | 1,964 |
| | 2,475 |
| | | | |
| Other | | 7,573 |
| | 3,501 |
| | | | |
| Total accounts payable and accrued expenses | | $ | 38,008 |
| | $ | 26,924 |
| | | | |
| | | | | | | | | |
(1) Amounts included in the financial statement line item "Property rentals" in the consolidated and combined statements of income.
(2) Amounts included in the financial statement line item "Ground rent" in the consolidated and combined statements of income.
(3) Includes $7.1 million of one-time expenses associated with the issuance of LTIP awards during the nine months ended September 30, 2015.
(4) Amounts included in the financial statement line item "Interest and debt expense" in the consolidated and combined statements of income.
|
| | |
| URBAN EDGE PROPERTIES | | |
| TENANT CONCENTRATION - TOP TWENTY-FIVE TENANTS | |
| As of September 30, 2015 (unaudited) | | |
| | | |
| | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | |
| Tenant | Number of stores | Square feet | % of total square feet | Annualized base rent | % of total annualized base rent | Weighted average annual rent per square foot | Average remaining term of ABR(1) |
| The Home Depot | 7 |
| 865,353 |
| 6.2% | $ | 14,226,288 |
| 6.5% | $ | 16.44 |
| 15.3 |
|
| Wal-Mart/Sam's Wholesale | 9 |
| 1,438,730 |
| 10.4% | 10,726,536 |
| 4.9% | 7.46 |
| 10.3 |
|
| The TJX Companies, Inc. | 15 |
| 542,522 |
| 3.9% | 8,613,600 |
| 3.9% | 15.88 |
| 6.1 |
|
| Lowe's | 6 |
| 976,415 |
| 7.0% | 8,525,004 |
| 3.9% | 8.73 |
| 12.0 |
|
| Stop & Shop / Koninklijke Ahold NV | 8 |
| 633,151 |
| 4.6% | 7,034,100 |
| 3.2% | 11.11 |
| 6.4 |
|
| Kohl's | 8 |
| 716,345 |
| 5.2% | 6,713,772 |
| 3.1% | 9.37 |
| 6.1 |
|
| Best Buy Co. Inc. | 7 |
| 312,952 |
| 2.3% | 6,443,256 |
| 2.9% | 20.59 |
| 8.4 |
|
| ShopRite | 5 |
| 336,612 |
| 2.4% | 5,421,312 |
| 2.5% | 16.11 |
| 7.2 |
|
| BJ's Wholesale Club | 4 |
| 454,297 |
| 3.3% | 5,278,620 |
| 2.4% | 11.62 |
| 11.1 |
|
| Sears Holdings, Inc. (Sears and Kmart) | 4 |
| 547,443 |
| 3.9% | 5,154,144 |
| 2.3% | 9.41 |
| 29.3 |
|
| PetSmart, Inc. | 9 |
| 235,309 |
| 1.7% | 5,113,044 |
| 2.3% | 21.73 |
| 4.5 |
|
| Toys "R" Us | 7 |
| 285,858 |
| 2.1% | 3,685,512 |
| 1.7% | 12.89 |
| 6.6 |
|
| Staples, Inc. | 8 |
| 167,554 |
| 1.2% | 3,612,744 |
| 1.6% | 21.56 |
| 4.0 |
|
| Target | 2 |
| 297,856 |
| 2.1% | 3,448,668 |
| 1.6% | 11.58 |
| 16.5 |
|
| Whole Foods | 2 |
| 100,682 |
| 0.7% | 3,365,568 |
| 1.5% | 33.43 |
| 12.2 |
|
| Century 21 | 1 |
| 156,649 |
| 1.1% | 3,085,620 |
| 1.4% | 19.70 |
| 11.3 |
|
| Dick's Sporting Goods | 3 |
| 151,136 |
| 1.1% | 2,971,812 |
| 1.4% | 19.66 |
| 3.3 |
|
| 24 Hour Fitness | 1 |
| 53,750 |
| 0.4% | 2,289,756 |
| 1.0% | 42.60 |
| 16.3 |
|
| Petco | 7 |
| 111,642 |
| 0.8% | 2,123,688 |
| 1.0% | 19.02 |
| 4.8 |
|
| National Wholesale Liquidators | 1 |
| 171,216 |
| 1.2% | 2,077,692 |
| 0.9% | 12.13 |
| 7.3 |
|
| LA Fitness | 3 |
| 122,690 |
| 0.9% | 2,058,672 |
| 0.9% | 16.78 |
| 10.1 |
|
| Bed Bath & Beyond | 4 |
| 143,973 |
| 1.0% | 1,874,976 |
| 0.9% | 13.02 |
| 5.4 |
|
| The Gap, Inc. | 5 |
| 67,768 |
| 0.5% | 1,848,312 |
| 0.8% | 27.27 |
| 5.2 |
|
| Sleepy's | 11 |
| 61,879 |
| 0.4% | 1,717,848 |
| 0.8% | 27.76 |
| 4.6 |
|
| REI | 2 |
| 48,237 |
| 0.3% | 1,668,840 |
| 0.8% | 34.60 |
| 4.9 |
|
| | | | | | | | |
| Total/Weighted Average | 139 |
| 9,000,019 |
| 64.7% | $ | 119,079,384 |
| 54.2% | $ | 13.23 |
| 10.0 |
|
| | | | | | | | |
(1) In years, excluding tenant renewal options. Total top twenty-five tenants is weighted based on annualized base rent ("ABR").
Note: Amounts shown in the table above include all retail properties, including those in redevelopment, on a cash basis other than tenants in a free rent period which are shown at their initial cash rent.
|
| | |
| URBAN EDGE PROPERTIES | | |
| LEASING ACTIVITY | |
| For the three and nine months ended September 30, 2015 (unaudited) | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | | | |
| Category | Total Leases | Total Sq. Ft. | Same Space Leases | Same Space Sq. Ft. | Prior Rent PSF | New Rent PSF | Rent Spread | Same Space TIs PSF(1) |
| Three months ended September 30, 2015 | | | | | | |
| New Leases | 17 | 328,192 |
| 8 | 14,351 |
| $ | 41.30 |
| $ | 34.49 |
| (16.5 | )% | $ | 33.22 |
|
| Renewals & Options | 15 | 178,390 |
| 15 | 178,390 |
| 16.91 |
| 17.62 |
| 4.2 | % | — |
|
| Total/Average New, Renewals & Options | 32 | 506,582 |
| 23 | 192,741 |
| $ | 18.72 |
| $ | 18.87 |
| 0.8 | % | $ | 2.47 |
|
| | | | | | | | | |
| Nine months ended September 30, 2015 | | | | | | |
| New Leases | 37 | 491,028 |
| 23 | 162,272 |
| $ | 24.09 |
| $ | 27.63 |
| 14.7 | % | $ | 36.54 |
|
| Renewals & Options | 44 | 545,904 |
| 44 | 545,904 |
| 18.14 |
| 19.15 |
| 5.6 | % | — |
|
| Total/Average New, Renewals & Options | 81 | 1,036,932 |
| 67 | 708,176 |
| $ | 19.50 |
| $ | 21.09 |
| 8.2 | % | $ | 8.37 |
|
| | | | | | | | | |
(1) Includes both tenant improvements and landlord contributions.
|
| | | | | |
| | | Three months ended September 30, 2015 | | Nine months ended September 30, 2015 |
| Weighted Average Term of New Leases | | | | |
| Executed during the period | | 8.9 years | | 12.0 years |
|
| | |
| URBAN EDGE PROPERTIES | | |
| RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE | |
| As of September 30, 2015 (unaudited) | | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | ANCHOR TENANTS (SF>=10,000) | SHOP TENANTS (SF<10,000) | TOTAL TENANTS |
Year(1) | # of leases | Square Feet | % of Total SF | Weighted Avg Annual Base Rent PSF(2) | # of leases | Square Feet | % of Total SF | Weighted Avg Annual Base Rent PSF(2) | # of leases | Square Feet | % of Total SF | Weighted Avg Annual Base Rent PSF(2) |
| | | | | | | | | | | | | |
| M-T-M | 1 |
| 13,000 |
| 0.1 | % | $ | 28.71 |
| 11 | 31,000 |
| 1.5 | % | $ | 33.46 |
| 12 | 44,000 |
| 0.3 | % | $ | 32.08 |
|
| 2015 | 1 |
| 42,000 |
| 0.4 | % | 23.90 |
| 17 | 38,000 |
| 1.9 | % | 45.07 |
| 18 | 80,000 |
| 0.6 | % | 33.95 |
|
| 2016 | 6 |
| 166,000 |
| 1.4 | % | 16.42 |
| 76 | 176,000 |
| 8.7 | % | 34.32 |
| 82 | 342,000 |
| 2.5 | % | 25.62 |
|
| 2017 | 10 |
| 312,000 |
| 2.6 | % | 13.84 |
| 75 | 225,000 |
| 11.1 | % | 31.46 |
| 85 | 537,000 |
| 3.9 | % | 21.22 |
|
| 2018 | 20 |
| 997,000 |
| 8.4 | % | 10.48 |
| 53 | 163,000 |
| 8.0 | % | 38.10 |
| 73 | 1,160,000 |
| 8.4 | % | 14.36 |
|
| 2019 | 27 |
| 973,000 |
| 8.2 | % | 17.87 |
| 71 | 217,000 |
| 10.7 | % | 38.95 |
| 98 | 1,190,000 |
| 8.6 | % | 21.71 |
|
| 2020 | 29 |
| 1,111,000 |
| 9.4 | % | 14.19 |
| 52 | 174,000 |
| 8.6 | % | 39.18 |
| 81 | 1,285,000 |
| 9.3 | % | 17.57 |
|
| 2021 | 22 |
| 738,000 |
| 6.2 | % | 16.87 |
| 38 | 120,000 |
| 5.9 | % | 35.25 |
| 60 | 858,000 |
| 6.2 | % | 19.44 |
|
| 2022 | 16 |
| 904,000 |
| 7.6 | % | 9.95 |
| 33 | 95,000 |
| 4.7 | % | 39.85 |
| 49 | 999,000 |
| 7.2 | % | 12.79 |
|
| 2023 | 17 |
| 998,000 |
| 8.4 | % | 16.58 |
| 29 | 102,000 |
| 5.0 | % | 33.25 |
| 46 | 1,100,000 |
| 7.9 | % | 18.13 |
|
| 2024 | 23 |
| 1,224,000 |
| 10.3 | % | 12.29 |
| 33 | 124,000 |
| 6.1 | % | 26.71 |
| 56 | 1,348,000 |
| 9.7 | % | 13.62 |
|
| 2025 | 6 |
| 450,000 |
| 3.8 | % | 13.70 |
| 30 | 93,000 |
| 4.6 | % | 34.66 |
| 36 | 543,000 |
| 3.9 | % | 17.29 |
|
| Thereafter | 45 |
| 3,682,000 |
| 31.1 | % | 12.67 |
| 36 | 185,000 |
| 9.1 | % | 29.61 |
| 81 | 3,867,000 |
| 27.6 | % | 13.49 |
|
| Subtotal/Average | 223 |
| 11,610,000 |
| 97.9 | % | $ | 13.60 |
| 554 | 1,743,000 |
| 85.9 | % | $ | 34.85 |
| 777 | 13,353,000 |
| 96.1 | % | $ | 16.37 |
|
| Vacant | 12 |
| 249,000 |
| 2.1 | % | N/A | 105 | 287,000 |
| 14.1 | % | N/A | 117 | 536,000 |
| 3.9 | % | N/A |
| Total/Average | 235 |
| 11,859,000 |
| 100 | % | N/A | 659 | 2,030,000 |
| 100 | % | N/A | 894 | 13,889,000 |
| 100 | % | N/A |
| | | | | | | | | | | | | |
(1)Year of expiration excludes tenant renewal options.
(2) Weighted average annual rent per square foot is calculated by annualizing tenant's base cash rent, including ground rent, and excludes tenant reimbursements and concessions and storage rent.
Note: Amounts shown in table above include both current leases and signed leases that have not commenced for all retail properties (including properties in redevelopment). The average base rent for our warehouse property (excluded from the table above) is $4.66 per square foot as of September 30, 2015.
|
| | |
| URBAN EDGE PROPERTIES | | |
| RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE ASSUMING EXERCISE OF ALL RENEWALS AND OPTIONS |
| As of September 30, 2015 (unaudited) | | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | ANCHOR TENANTS (SF>=10,000) | SHOP TENANTS (SF<10,000) | TOTAL TENANTS |
Year(1) | # of leases | Square Feet | % of Total SF | Weighted Avg Annual Base Rent PSF(2) | # of leases | Square Feet | % of Total SF | Weighted Avg Annual Base Rent PSF(2) | # of leases | Square Feet | % of Total SF | Weighted Avg Annual Base Rent PSF(2) |
| | | | | | | | | | | | | |
| M-T-M | 1 |
| 13,000 |
| 0.1 | % | $ | 28.70 |
| 11 |
| 31,000 |
| 1.5% | $ | 33.46 |
| 12 |
| 44,000 |
| 0.3 | % | $ | 32.08 |
|
| 2015 | 1 |
| 42,000 |
| 0.4 | % | 23.90 |
| 15 |
| 34,000 |
| 1.7% | 44.56 |
| 16 |
| 76,000 |
| 0.5 | % | 33.21 |
|
| 2016 | 3 |
| 81,000 |
| 0.7 | % | 18.48 |
| 59 |
| 116,000 |
| 5.7% | 35.43 |
| 62 |
| 197,000 |
| 1.4 | % | 28.46 |
|
| 2017 | 3 |
| 56,000 |
| 0.5 | % | 20.67 |
| 41 |
| 93,000 |
| 4.6% | 40.51 |
| 44 |
| 149,000 |
| 1.1 | % | 33.06 |
|
| 2018 | 3 |
| 62,000 |
| 0.5 | % | 21.20 |
| 40 |
| 111,000 |
| 5.5% | 46.48 |
| 43 |
| 173,000 |
| 1.2 | % | 37.42 |
|
| 2019 | 3 |
| 142,000 |
| 1.2 | % | 12.40 |
| 48 |
| 126,000 |
| 6.2% | 46.47 |
| 51 |
| 268,000 |
| 1.9 | % | 28.46 |
|
| 2020 | 6 |
| 116,000 |
| 1.0 | % | 18.18 |
| 43 |
| 124,000 |
| 6.1% | 48.81 |
| 49 |
| 240,000 |
| 1.7 | % | 33.99 |
|
| 2021 | 8 |
| 242,000 |
| 2.0 | % | 19.56 |
| 38 |
| 106,000 |
| 5.2% | 38.21 |
| 46 |
| 348,000 |
| 2.5 | % | 25.26 |
|
| 2022 | 3 |
| 122,000 |
| 1.0 | % | 10.28 |
| 39 |
| 131,000 |
| 6.5% | 34.68 |
| 42 |
| 253,000 |
| 1.8 | % | 22.94 |
|
| 2023 | 5 |
| 320,000 |
| 2.7 | % | 17.45 |
| 28 |
| 92,000 |
| 4.5% | 34.46 |
| 33 |
| 412,000 |
| 3.0 | % | 21.24 |
|
| 2024 | 11 |
| 215,000 |
| 1.8 | % | 17.58 |
| 36 |
| 114,000 |
| 5.6% | 37.52 |
| 47 |
| 329,000 |
| 2.4 | % | 24.47 |
|
| 2025 | 8 |
| 295,000 |
| 2.5 | % | 21.38 |
| 27 |
| 90,000 |
| 4.4% | 38.52 |
| 35 |
| 385,000 |
| 2.8 | % | 25.39 |
|
| Thereafter | 168 |
| 9,904,000 |
| 83.5 | % | 18.71 |
| 129 |
| 575,000 |
| 28.4% | 41.73 |
| 297 |
| 10,479,000 |
| 75.5 | % | 19.94 |
|
| Subtotal/Average | 223 |
| 11,610,000 |
| 97.9 | % | $ | 18.62 |
| 554 |
| 1,743,000 |
| 85.9% | $ | 40.55 |
| 777 |
| 13,353,000 |
| 96.1 | % | $ | 21.48 |
|
| Vacant | 12 |
| 249,000 |
| 2.1 | % | N/A |
| 105 |
| 287,000 |
| 14.1% | N/A |
| 117 |
| 536,000 |
| 3.9 | % | N/A |
|
| Total/Average | 235 |
| 11,859,000 |
| 100 | % | N/A |
| 659 |
| 2,030,000 |
| 100% | N/A |
| 894 |
| 13,889,000 |
| 100 | % | N/A |
|
| | | | | | | | | | | | | |
(1) Year of expiration includes tenant renewal options.
(2) Weighted average annual rent per square foot is calculated by annualizing tenant's base cash rent, including ground rent, and excludes tenant reimbursements and concessions and storage rent and is adjusted for assumed exercised options using option rents specified in the underlying leases. Weighted average annual base rent for leases whose future option rent is based on fair market value or CPI is reported at the last stated option rent in the respective lease.
Note: Amounts shown in table above includes both current leases and signed leases that have not commenced for all retail properties (including properties in redevelopment). The average base rent for our warehouse property assuming exercise of all options at future tenant rent (excluded from the table above) is $5.47 per square foot as of September 30, 2015.
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of September 30, 2015 (unaudited) | | |
| (dollars in thousands, except per sf amounts) | | |
| | | |
|
| | | | | | | | | | |
| Property | | Total Square Feet (1) | Percent Leased (1) | | Weighted Average Annual Rent per sq ft (2) | | Mortgage Debt | | Major Tenants |
| SHOPPING CENTERS AND MALLS: | | | | |
| California: | | | | | | | | | |
| Signal Hill | | 45,000 |
| 100.0% | | $24.08 | | — | | Best Buy |
| Vallejo (ground leased through 2043) | | 45,000 |
| 100.0% | | 17.51 | | — | | Best Buy |
| Walnut Creek (1149 South Main Street) | | 29,000 |
| 100.0% | | 45.11 | | — | | Barnes & Noble |
Walnut Creek (Mt. Diablo) (4) | | 7,000 |
| 100.0% | | 70.00 | | — | | Anthropologie |
| | | | | | | | | | |
| Connecticut: | | | | | | | | | |
| Newington | | 188,000 |
| 100.0% | | 9.70 | | $10,782 | (3) | Wal-Mart, Staples |
| Waterbury | | 147,000 |
| 69.1% | | 16.69 | | $13,412 | (3) | ShopRite |
| | | | | | | | | | |
| Maryland: | | | | | | | | | |
| Baltimore (Towson) | | 155,000 |
| 100.0% | | 16.82 | | $14,990 | (3) | Shoppers Food Warehouse, hhgregg, Staples, Home Goods, Golf Galaxy |
| Glen Burnie | | 121,000 |
| 90.5% | | 9.33 | | — | | Gavigan’s Home Furnishings, Pep Boys |
| Rockville | | 94,000 |
| 98.1% | | 24.09 | | — | | Regal Cinemas |
| Wheaton (ground leased through 2060) | | 66,000 |
| 100.0% | | 14.94 | | — | | Best Buy |
| | | | | | | | | | |
| Massachusetts: | | | | | | | | | |
Cambridge (ground and building leased through 2033) | | 48,000 |
| 100.0% | | 21.83 | | — | | PetSmart, Modell’s Sporting Goods |
| Chicopee | | 224,000 |
| 100.0% | | 5.50 | | $7,968 | (3) | Wal-Mart |
Milford (ground and building leased through 2019) | | 83,000 |
| 100.0% | | 9.01 | | — | | Kohl’s |
| Springfield | | 182,000 |
| 100.0% | | 5.74 | | $5,496 | (3) | Wal-Mart |
| | | | | | | | | | |
| New Hampshire: | | | | | | | | | |
| Salem (ground leased through 2102) | | 37,000 |
| 100.0% | | 12.58 | | — | | Babies “R” Us |
| | | | | | | | | | |
| New Jersey: | | | | | | | | | |
| Bergen Town Center - East, Paramus | | 211,000 |
| 92.9% | | 18.08 | | — | | Lowe’s, REI |
| Bergen Town Center - West, Paramus | | 960,000 |
| 99.9% | | 30.95 | | $300,000 | | Target, Century 21, Whole Foods Market, Marshalls, Nordstrom Rack, Saks Off 5th, Home Goods, Hennes & Mauritz, Bloomingdale’s Outlet, Nike Factory Store, Old Navy, Nieman Marcus Last Call Studio |
| Bricktown | | 278,000 |
| 98.2% | | 18.61 | | $30,664 | (3) | Kohl’s, ShopRite, Marshalls |
| Carlstadt (ground leased through 2050) | | 78,000 |
| 100.0% | | 23.14 | | — | | Stop & Shop |
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of September 30, 2015 (unaudited) | | |
| (dollars in thousands, except per sf amounts) | | |
| | | |
|
| | | | | | | | | | |
| Property | | Total Square Feet (1) | Percent Leased (1) | | Weighted Average Annual Rent per sq ft (2) | | Mortgage Debt | | Major Tenants |
| Cherry Hill | | 261,000 |
| 97.3% | | 8.55 | | $13,307 | (3) | Wal-Mart, Toys “R” Us |
| Dover | | 173,000 |
| 94.7% | | 12.99 | | $12,623 | (3) | ShopRite, T.J. Maxx |
| East Brunswick | | 427,000 |
| 100.0% | | 14.01 | | $35,188 | (3) | Lowe’s, Kohl’s, Dick’s Sporting Goods, P.C. Richard & Son, T.J. Maxx, LA Fitness |
| East Hanover (200 - 240 Route 10 West) | | 343,000 |
| 85.9% | | 20.02 | | $36,713 | (3) | The Home Depot, Dick’s Sporting Goods, Marshalls |
| East Hanover (280 Route 10 West) | | 24,000 |
| 100.0% | | 35.20 | | $4,366 | (3) | REI |
| East Rutherford | | 197,000 |
| 100.0% | | 12.46 | | $13,044 | (3) | Lowe’s |
| Eatontown | | 30,000 |
| 73.7% | | 29.09 | | — | | Petco |
| Englewood | | 41,000 |
| 73.6% | | 23.19 | | $11,537 | | New York Sports Club |
| Garfield | | 195,000 |
| 100.0% | | 12.78 | | — | | Wal-Mart, Burlington Coat Factory (lease not commenced), Marshalls |
| Hackensack | | 275,000 |
| 72.8% | | 23.48 | | $38,923 | (3) | The Home Depot, Staples, Petco |
| Hazlet | | 123,000 |
| 100.0% | | 2.64 | | — | | Stop & Shop (5) |
| Jersey City | | 236,000 |
| 100.0% | | 12.06 | | $19,461 | (3) | Lowe’s, P.C. Richard & Son |
| Kearny | | 104,000 |
| 100.0% | | 19.64 | | — | | LA Fitness (lease not commenced), Marshalls |
| Lawnside | | 147,000 |
| 99.3% | | 14.38 | | $10,256 | (3) | The Home Depot, PetSmart |
| Lodi (Route 17 North) | | 171,000 |
| 100.0% | | 12.13 | | $10,888 | (3) | National Wholesale Liquidators |
| Lodi (Washington Street) | | 85,000 |
| 90.3% | | 20.28 | | — | | Blink Fitness, Aldi |
| Manalapan | | 208,000 |
| 100.0% | | 17.47 | | $20,197 | (3) | Best Buy, Bed Bath & Beyond, Babies “R” Us, Modell’s Sporting Goods, PetSmart |
| Marlton | | 213,000 |
| 100.0% | | 14.08 | | $16,568 | (3) | Kohl’s, ShopRite, PetSmart |
| Middletown | | 231,000 |
| 98.9% | | 12.82 | | $16,673 | (3) | Kohl’s, Stop & Shop |
| Montclair | | 18,000 |
| 100.0% | | 26.20 | | $2,525 | (3) | Whole Foods Market |
| Morris Plains | | 177,000 |
| 94.1% | | 20.77 | | $20,513 | (3) | Kohl’s, ShopRite (5) |
| North Bergen (Kennedy Boulevard) | | 62,000 |
| 100.0% | | 13.03 | | $4,892 | (3) | Food Basics |
| North Bergen (Tonnelle Avenue) | | 410,000 |
| 100.0% | | 20.32 | | $75,000 | | Wal-Mart, BJ’s Wholesale Club, PetSmart, Staples |
| North Plainfield | | 212,000 |
| 91.1% | | 8.22 | | — | | Costco, The Tile Shop |
| Paramus (ground leased through 2033) | | 63,000 |
| 100.0% | | 42.23 | | — | | 24 Hour Fitness |
| South Plainfield (ground leased through 2039) | | 56,000 |
| 82.0% | | 21.29 | | $4,918 | (3) | Staples, Party City |
| Totowa | | 271,000 |
| 100.0% | | 16.96 | | $23,774 | (3) | The Home Depot, Bed Bath & Beyond, buy buy Baby, Marshalls, Staples |
| Turnersville | | 96,000 |
| 96.3% | | 7.00 | | — | | Haynes Furniture Outlet (The Dump) |
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of September 30, 2015 (unaudited) | | |
| (dollars in thousands, except per sf amounts) | | |
| | | |
|
| | | | | | | | | | |
| Property | | Total Square Feet (1) | Percent Leased (1) | | Weighted Average Annual Rent per sq ft (2) | | Mortgage Debt | | Major Tenants |
| Union (2445 Springfield Avenue) | | 232,000 |
| 100.0% | | 17.85 | | $27,351 | (3) | The Home Depot |
| Union (Route 22 and Morris Avenue) | | 276,000 |
| 99.4% | | 18.34 | | $31,032 | (3) | Lowe’s, Toys “R” Us, Office Depot |
| Watchung | | 170,000 |
| 96.6% | | 16.57 | | $14,464 | (3) | BJ’s Wholesale Club |
| Woodbridge | | 226,000 |
| 84.1% | | 13.63 | | $19,829 | (3) | Wal-Mart |
| | | | | | | | | | |
| New York: | | | | | | | | | |
| Bronx (1750-1780 Gun Hill Road) | | 77,000 |
| 100.0% | | 33.65 | | — | | Planet Fitness, Aldi |
| Bronx (Bruckner Boulevard) | | 501,000 |
| 89.7% | | 16.83 | | — | | Kmart, Toys “R” Us, Marshalls, Old Navy, Gap |
| Buffalo (Amherst) | | 311,000 |
| 100.0% | | 9.35 | | — | | BJ’s Wholesale Club, T.J. Maxx, Home Goods, Toys “R” Us, LA Fitness |
Commack (ground and building leased through 2021) | | 47,000 |
| 100.0% | | 21.96 | | — | | PetSmart, Ace Hardware |
| Dewitt (ground leased through 2041) | | 46,000 |
| 100.0% | | 20.46 | | — | | Best Buy |
Freeport (240 West Sunrise Highway) (ground and building leased through 2040) | | 44,000 |
| 100.0% | | 20.28 | | — | | Bob’s Discount Furniture |
| Freeport (437 East Sunrise Highway) | | 173,000 |
| 100.0% | | 18.86 | | $20,513 | (3) | The Home Depot, Staples |
| Huntington | | 204,000 |
| 100.0% | | 14.89 | | $15,990 | (3) | Kmart, Marshalls, Old Navy, Petco |
| Inwood | | 100,000 |
| 85.4% | | 19.01 | | — | | Stop & Shop |
| Mount Kisco | | 189,000 |
| 100.0% | | 16.89 | | $15,380 | | Target, A&P |
| New Hyde Park (ground and building leased through 2029) | | 101,000 |
| 100.0% | | 20.21 | | — | | Stop & Shop |
| Oceanside | | 16,000 |
| 100.0% | | 28.00 | | — | | Party City |
| Rochester | | 205,000 |
| 100.0% | | 3.08 | | $4,208 | (3) | Wal-Mart |
Rochester (Henrietta) (ground leased through 2056) | | 165,000 |
| 96.2% | | 4.15 | | — | | Kohl’s |
| Staten Island | | 165,000 |
| 88.8% | | 23.77 | | — | | Western Beef, Planet Fitness |
| West Babylon | | 66,000 |
| 95.1% | | 17.10 | | — | | Best Market, Rite Aid |
| | | | | | | | | | |
| Pennsylvania: | | | | | | | | | |
| Allentown | | 372,000 |
| 100.0% | | 11.69 | | $28,771 | (3) | Burlington Coat Factory, Giant Food, Dick’s Sporting Goods, T.J. Maxx, Petco |
| Bensalem | | 185,000 |
| 100.0% | | 12.56 | | $14,280 | (3) | Kohl’s, Ross Dress for Less, Staples, Petco |
| Bethlehem | | 147,000 |
| 98.9% | | 8.26 | | $5,365 | (3) | Giant Food, Petco |
| Broomall | | 169,000 |
| 100.0% | | 10.43 | | $10,256 | (3) | Giant Food, Planet Fitness, A.C. Moore, PetSmart |
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of September 30, 2015 (unaudited) | | |
| (dollars in thousands, except per sf amounts) | | |
| | | |
|
| | | | | | | | | | |
| Property | | Total Square Feet (1) | Percent Leased (1) | | Weighted Average Annual Rent per sq ft (2) | | Mortgage Debt | | Major Tenants |
| Glenolden | | 102,000 |
| 100.0% | | 12.41 | | $6,575 | (3) | Wal-Mart |
| Lancaster | | 228,000 |
| 100.0% | | 4.68 | | $5,181 | (3) | Lowe’s, Community Aid, Inc., Sleepy’s |
Springfield (ground and building leased through 2025) | | 41,000 |
| 100.0% | | 20.90 | | — | | PetSmart |
| Wilkes-Barre (461 - 499 Mundy Street) | | 204,000 |
| 91.7% | | 12.89 | | — | | Bob’s Discount Furniture, Babies “R” Us, Ross Dress for Less, Marshalls, Petco |
Wyomissing (ground and building leased through 2065) | | 76,000 |
| 93.2% | | 15.56 | | — | | LA Fitness, PetSmart |
| York | | 111,000 |
| 86.2% | | 8.75 | | $4,997 | (3) | Ashley Furniture, Tractor Supply Company, Aldi |
| | | | | | | | | | |
| South Carolina: | | | | | | | | | |
Charleston (ground leased through 2063) | | 45,000 |
| 100.0% | | 14.19 | | — | | Best Buy |
| | | | | | | | | | |
| Virginia: | | | | | | | | | |
Norfolk (ground and building leased through 2069) | | 114,000 |
| 100.0% | | 7.08 | | — | | BJ’s Wholesale Club |
Tyson’s Corner (ground and building leased through 2035) | | 38,000 |
| 100.0% | | 39.13 | | — | | Best Buy |
| | | | | | | | | | |
| Puerto Rico: | | | | | | | | | |
| Las Catalinas | | 355,000 |
| 93.3% | | 35.96 | | $130,000 | | Kmart |
| Montehiedra | | 541,000 |
| 92.2% | | 18.07 | | $117,285 | | Kmart, The Home Depot, Marshalls, Caribbean Theatres, Tiendas Capri, Nike Factory Store |
| | | | | | | | | | |
| Total Shopping Centers and Malls | | 13,889,000 |
| 96.1% | | $16.57 (2) | | $1,246,155 | | |
| | | | | | | | | | |
| WAREHOUSES: | | | | | | | | | |
| East Hanover - Five Buildings | | 942,000 |
| 77.5% | | 4.51 | | — | | J & J Tri-State Delivery, Foremost Groups Inc., PCS Wireless, Fidelity Paper & Supply Inc., Meyer Distributing Inc., Consolidated Simon Distributors Inc., Givaudan Flavors Corp. |
| | | | | | | | | | |
| Total Urban Edge Properties | | 14,831,000 |
| 95.0% | | $16.04 | | $1,246,155 | | |
(1) Percent leased is expressed as a percent of total square feet (gross leasable area) subject to a lease.
(2) Weighted average annual rent per square foot is calculated by annualizing tenant's current base rent, including ground rent, and excludes tenant reimbursements, concessions and storage rent. Excluding the ground leases, the weighted average annual rent per square foot for our retail portfolio is $19.38 per square foot.
(3) Denotes that property is included in a cross-collateralized securitization. The amount of Mortgage Debt secured by our properties at East Brunswick and East Hanover (200-240 Route 10 West) contains parcels that are separately identified in our 40 property cross-collateralized securitization.
(4) Our ownership of Walnut Creek (Mt. Diablo) is 95% at September 30, 2015.
(5) The tenant has ceased operations at this location but continues to pay rent.
|
| | |
| URBAN EDGE PROPERTIES | | |
| Property Acquisitions and Dispositions | |
| For the nine months ended September 30, 2015 (unaudited) | | |
| (dollars in thousands) | | |
| | | |
|
| | | | | | | | | | |
| 2015 Property Acquisitions: | | | | | |
| | | | | | | |
| Date Acquired | Property Name | City | State | Building SF | Land Acres | Purchase Price |
| 6/29/2015 | Lawnside(1) | Lawnside | NJ | 2,000 |
| 0.4 |
|
| $375 |
|
| 4/29/2015 | Bergen Town Center Parcel(1) | Paramus | NJ | 7,700 |
| 0.8 |
|
| $2,750 |
|
| | | | | | | |
| 2015 Property Dispositions: | | | | | |
| | | | | | | |
| None | | | | | | |
(1) This acquisition was for a parcel adjacent to a property the Company already owns. The property square footage of the acquired parcel has been included within the GLA of the existing property within the Property Status Report on page 22.
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEVELOPMENT AND REDEVELOPMENT PROJECTS | |
| As of September 30, 2015 (unaudited) | | |
| (in thousands, except square footage data) | | |
| | | |
|
| | | | | | | | | | | | | | | | |
| ACTIVE PROJECTS: | | | | | | | |
| PROPERTY | Project GLA(3) | Total GLA(4) | Anchors | Target Stabilization Date(5) | Estimated Gross Cost(1) | Estimated Net Cost(6) | Incurred as of 9/30/15 | Balance to Complete (Gross Cost) |
| East Hanover warehouses | 942,000 | 942,000 | N/A | 2017 | $ | 23,500 |
| $ | 14,300 |
| $ | 17,863 |
| $ | 5,637 |
|
| Bruckner Boulevard | 157,000 | 501,000 | Kmart, Toys "R" Us | 2018 | 38,200 |
| 38,200 |
| 2,711 |
| 35,489 |
|
| Montehiedra Town Center | 542,000 | 542,000 | Sears, Kmart | 2017 | 20,800 |
| 18,300 |
| 4,774 |
| 16,026 |
|
Garfield(7) | 75,000 | 195,000 | Walmart | 2018 | 18,800 |
| 18,800 |
| 255 |
| 18,545 |
|
Walnut Creek(7) | 29,000 | 29,000 | Anthropologie | 2018 | 4,400 |
| 4,400 |
| — |
| 4,400 |
|
| Total | 1,745,000 | 2,209,000 | | | $ | 105,700 |
| $ | 94,000 |
| $ | 25,603 |
| $ | 80,097 |
|
|
| | | |
| DEVELOPMENT AND REDEVELOPMENT PIPELINE: | |
| PROPERTY | POTENTIAL INVESTMENT(2) | TARGETED COMPLETION(2) | PROJECT DESCRIPTION |
| Bergen Town Center | $120,000-$130,000 | 2020 | 200,000± sf expansion |
| Bergen East | $14,000-$16,000 | 2018 | Approved pads for 60,000± sf |
| Bricktown | $7,000-$8,000 | 2017 | Possible 4,000± sf expansion and center renovation |
| Montehiedra outparcel | $7,000-$8,000 | 2018 | Possible 20,000± sf outparcel development |
| Kearny | $6,000-$7,000 | 2018 | Possible 25,000± sf expansion |
| North Plainfield | $6,000-$7,000 | 2018 | Possible 6,000 sf expansion and pad for 15,000-20,000 sf |
| Marlton | $3,000-$4,000 | 2018 | Possible pad for 5,000± sf |
| Huntington | $2,000-$3,000 | 2018 | Conversion of 11,000± sf of basement space into storefront retail |
| Cherry Hill | $1,000-$2,000 | 2019 | Approved pad for 5,000± sf |
| Glen Burnie | $1,000-$2,000 | 2018 | Pad for 8,000± sf restaurant (lease executed) |
| Total | $167,000-$187,000 | | |
(1) Project costs includes the allocation of internal costs such as labor, interest, and taxes
(2) Targeted completion and potential investment are subject to change resulting from uncertainties inherent in the development process and not wholly under the company's control.
(3) Project GLA is subject to change based upon build-to-suit and other tenant-driven requirements.
(4) Total GLA represents all GLA for the corresponding property and includes portions of the center not subject to redevelopment.
(5) Target Stabilization Date reflects the first full year in which the property is 90% leased. Properties may continue to be reflected in development or redevelopment until they are included in the company's same-property pool, which is normally one year from rent commencement. This period may be in excess of one year to the extent that the anchors commence rent, but receive rent concessions or other forms of reduced rent, for a limited period following rent commencement.
(6) Reflects costs after construction cost reimbursements and expenses paid by Vornado.
(7) Results from Garfield and Walnut Creek are included in our same-property metrics as no tenants have vacated as of the end of the quarter and no GLA had been taken out of service.
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEBT SUMMARY | |
| As of September 30, 2015 (unaudited) and December 31, 2014 | | |
| (in thousands) | | |
| | | |
|
| | | | | | | |
| | September 30, 2015 | | December 31, 2014 |
| Fixed rate debt | $ | 1,186,155 |
| | $ | 1,211,535 |
|
| Variable rate debt | 60,000 |
| | 77,000 |
|
| Total debt | $ | 1,246,155 |
| | $ | 1,288,535 |
|
| | | | |
| % Fixed rate debt | 95.2 | % | | 94.0 | % |
| % Variable rate debt | 4.8 | % | | 6.0 | % |
| Total | 100 | % | | 100 | % |
| | | | |
| | | | |
| Secured mortgage debt | $ | 1,246,155 |
| | $ | 1,288,535 |
|
| Unsecured debt | — |
| | — |
|
| Total debt | $ | 1,246,155 |
| | $ | 1,288,535 |
|
| | | | |
| % Secured mortgage debt | 100 | % | | 100 | % |
| % Unsecured mortgage debt | N/A |
| | N/A |
|
| Total | 100 | % | | 100 | % |
| | | | |
| Weighted average remaining maturity on secured mortgage debt | 6.0 years |
| | 6.2 years |
|
| | | | |
| | | | |
| Total market capitalization (see page 16) | $ | 3,522,635 |
| | |
| | | | |
| % Secured mortgage debt | 35.4 | % | | |
| % Unsecured debt | — | % | | |
| Total debt : Total market capitalization | 35.4 | % | | |
| | | | |
| | | | |
Weighted average interest rate on secured mortgage debt(1) | 4.15 | % | | 4.24 | % |
Weighted average interest rate on unsecured debt(2) | — | % | | |
| | | | |
(1) Weighted average interest rates are calculated based on balances outstanding at the respective dates.
(2) No amounts are currently outstanding on the unsecured line of credit. To the extent borrowing occurs, the line bears interest at LIBOR plus 1.15% based on our current leverage metrics as defined in the revolving credit agreement.
|
| | |
| URBAN EDGE PROPERTIES | | |
| MORTGAGE DEBT SUMMARY | |
| As of September 30, 2015 (unaudited) and December 31, 2014 | | |
| (dollars in thousands) | | |
| | | |
|
| | | | | | | | | | |
| Debt Instrument | Maturity Date | Rate | September 30, 2015 | December 31, 2014 | Percent of Debt at September 30, 2015 |
Mt Kisco - A&P (4) | 2/11/15 | 5.32% | $ | — |
| $ | 12,076 |
| — | % |
| North Bergen | 1/9/18 | 4.59% | 75,000 |
| 75,000 |
| 6.0 | % |
Staten Island (Forest Plaza) (3) | 7/6/18 | 1.47% | — |
| 17,000 |
| — | % |
Englewood (5) | 10/1/18 | 6.22% | 11,537 |
| 11,571 |
| 0.9 | % |
40 property securitization - Fixed(6) | 9/10/20 | 4.32% | 536,953 |
| 547,231 |
| 43.1 | % |
40 property securitization - Variable (1)(6) | 9/10/20 | 2.36% | 60,000 |
| 60,000 |
| 4.8 | % |
Montehiedra, Puerto Rico (senior loan) (2) | 7/6/21 | 5.33% | 87,285 |
| 120,000 |
| 7.0 | % |
Montehiedra, Puerto Rico (junior loan) (2) | 7/6/21 | 3.00% | 30,000 |
| — |
| 2.4 | % |
| Bergen Town Center | 4/8/23 | 3.56% | 300,000 |
| 300,000 |
| 24.1 | % |
| Las Catalinas | 8/6/24 | 4.43% | 130,000 |
| 130,000 |
| 10.4 | % |
Mt Kisco -Target(7) | 11/15/34 | 6.40% | 15,380 |
| 15,657 |
| 1.3 | % |
| Total mortgage debt | | 4.15% | $ | 1,246,155 |
| $ | 1,288,535 |
| 100 | % |
| | | | | | |
|
| | | | | | | | | | | | | | | |
| DEBT MATURITY SCHEDULE | | | | |
| | | | | | | |
| Year | Scheduled Amortization | Balloon Payments | (Discount) Scheduled Amortization | Total | Weighted Average Interest rate at maturity | Percent of debt maturing |
| 2015 | $ | 3,741 |
| $ | — |
| $ | (15 | ) | $ | 3,726 |
| 4.4% | 0.3 | % |
| 2016 | 16,041 |
| — |
| (61 | ) | 15,980 |
| 4.4% | 1.3 | % |
| 2017 | 16,845 |
| — |
| (61 | ) | 16,784 |
| 4.4% | 1.3 | % |
| 2018 | 16,218 |
| 83,551 |
| (61 | ) | 99,708 |
| 4.7% | 8.0 | % |
| 2019 | 17,381 |
| — |
| (61 | ) | 17,320 |
| 4.4% | 1.4 | % |
| 2020 | 13,788 |
| 521,387 |
| (61 | ) | 535,114 |
| 4.1% | 42.9 | % |
| 2021 | 2,802 |
| 117,285 |
| (61 | ) | 120,026 |
| 4.7% | 9.6 | % |
| 2022 | 2,943 |
| — |
| (61 | ) | 2,882 |
| 4.9% | 0.2 | % |
| 2023 | 3,091 |
| 300,000 |
| (61 | ) | 303,030 |
| 3.6% | 24.3 | % |
| Thereafter | 12,243 |
| 120,000 |
| (658 | ) | 131,585 |
| 4.6% | 10.7 | % |
| Total | $ | 105,093 |
| $ | 1,142,223 |
| $ | (1,161 | ) | $ | 1,246,155 |
| 4.2% | 100 | % |
(1) Subject to a LIBOR floor of 1.00%, currently bears interest at LIBOR plus 136 bps.
(2) On January 6, 2015, we completed a loan restructuring applicable to the $120 million, 6.04% mortgage loan secured by Montehiedra Town Center. The loan has been extended from July 2016 to July 2021 and separated into two tranches, a senior $90 million position with interest at 5.33% to be paid currently, and a junior $30.0 million position with interest accruing at 3%. As part of the planned redevelopment of the property, the Company is committed to fund $20 million for leasing and building capital expenditures of which $8 million has been funded as of September 30, 2015.
(3) This loan was repaid on March 10, 2015.
(4) This loan was repaid on February 11, 2015.
(5) On March 30, 2015, we notified the lender that the property’s operating cash flow will be insufficient to pay the debt service; accordingly, at our request, the mortgage loan was transferred to the special servicer. As of September 30, 2015 we remain in discussions with the special servicer to restructure the terms of the loan including the possibility that the lender will take possession of the property.
(6) See Property Status Report on page 22 for each property that comprises the 40 property securitization.
(7) The mortgage payable balance on the loan secured by Mt. Kisco -Target includes $1,161 and $1,207 of unamortized debt discount as of September 30, 2015 and December 31, 2014, respectively, the effective interest rate including amortization of the debt discount is 7.30% as of September 30, 2015.
