Exhibit 99.2
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| URBAN EDGE PROPERTIES |
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| SUPPLEMENTAL DISCLOSURE |
| PACKAGE |
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| March 31, 2016 |
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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 |
| March 31, 2016 |
| (unaudited) |
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| TABLE OF CONTENTS |
| | Page |
| Press Release | |
| First Quarter 2016 Earnings Press Release | 1 |
| Additional Disclosures | 8 |
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| Overview | |
| Summary Financial Results and Ratios | 9 |
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| Consolidated and Combined Financial Statements | |
| Consolidated Balance Sheets | 10 |
| Consolidated and Combined Statements of Income | 11 |
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| Non-GAAP Financial Measures and Supplemental Data | |
| Supplemental Schedule of Net Operating Income | 12 |
| Earnings Before Interest, Taxes, Depreciation and Amortization | 13 |
| Consolidated Statements of Funds from Operations | 14 |
| Market Capitalization, Debt Ratios and Liquidity | 15 |
| Additional Disclosures | 16 |
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| Leasing Data | |
| Tenant Concentration - Top Twenty-Five Tenants | 17 |
| Leasing Activity | 18 |
| Retail Portfolio Lease Expiration Schedules | 19 |
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| Property Data | |
| Property Status Report | 21 |
| Property Acquisitions and Dispositions | 25 |
| Development, Redevelopment and Anchor Repositioning Projects | 26 |
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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 First Quarter 2016 Operating Results
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NEW YORK, NY, May 4, 2016 - Urban Edge Properties (NYSE:UE) (the "Company") announced today its financial results for the three months ended March 31, 2016.
Highlights of the Quarter include:
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| • | Generated Recurring Funds from Operations of $32.4 million, or $0.31 per diluted share |
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| • | Generated Funds from Operations ("FFO") of $33.5 million, or $0.32 per diluted share which includes $1.2 million of tenant bankruptcy settlement income |
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| • | Net income attributable to common shareholders was $18.6 million, or $0.19 per diluted share. A reconciliation of net income attributable to common shareholders to FFO and the reconciling components to Recurring FFO are provided in the tables accompanying this press release |
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| • | Same-property Net Operating Income (“NOI”) increased by 2.4% as compared to the first quarter of 2015 due to new rent commencements from higher occupancy and contractual rent increases. Same-property NOI excludes $1.2 million of tenant bankruptcy settlement income received during the quarter |
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| • | Same-property NOI including properties in redevelopment increased by 1.8% for the first quarter of 2016 as compared to the first quarter in 2015. The expected loss of rents from former anchor tenants at Walnut Creek and Bruckner negatively impacted this result. New anchor tenants at Walnut Creek and Bruckner are expected to open in the fourth quarter of this year and the latter half of 2017, respectively. A reconciliation of income before income taxes to same-property NOI is provided in the tables accompanying this press release |
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| • | Same-property retail portfolio occupancy increased by 50 basis points to 97.0% as compared to March 31, 2015 and decreased by 20 basis points as compared to December 31, 2015 |
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| • | Consolidated retail portfolio occupancy increased by 20 basis points to 96.0% as compared to March 31, 2015 and decreased by 20 basis points as compared to December 31, 2015 |
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| • | Executed new leases and renewals and exercised options totaling 168,000 square feet in 26 transactions. Same-space leases totaled 130,000 square feet at an average rental rate of $21.84 per square foot and an average rent spread of 22.0% from prior cash rents |
Development, Redevelopment and Anchor Repositioning:
During the quarter, the Company completed the expansion of Home Depot in Freeport, NY and opened Panera Bread in East Hanover, NJ, for a total investment of $0.6 million. These two projects are expected to increase net operating income by $1.0 million annually upon stabilization, representing a 167% return on invested capital.
The Company commenced redevelopment on two projects during the quarter including recapturing a 38,900 square foot anchor box in Towson, MD and constructing a new building for Verizon in Turnersville, NJ. The Company expects to invest $9.1 million in these projects and generate a 13% incremental return.
As of March 31, 2016, the Company had approximately $131.0 million of active development, redevelopment and anchor repositioning projects underway of which $92.8 million remains to be funded. The Company expects to generate a 12% unleveraged return on these projects.
The Company continues to focus on its development and redevelopment pipeline, which includes an additional $172.0-$200.0 million of planned expansions and renovations expected to be completed over the next several years. The Company projects an unleveraged return of approximately 8% on these projects.
Balance Sheet Highlights:
At March 31, 2016:
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| • | Total market capitalization (including debt and equity) was approximately $4.0 billion comprised of 105.7 million shares of common shares outstanding (on a fully diluted basis) valued at $2.7 billion and $1.2 billion of debt |
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| • | The ratio of net debt (net of cash) to total market capitalization was 27.1% |
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| • | Net debt to annualized Adjusted Earnings before interest, tax, depreciation and amortization ("EBITDA") was 5.8x. A reconciliation of net income to EBITDA and Adjusted EBITDA are provided in the tables accompanying this press release |
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| • | The Company had approximately $162.4 million of cash and cash equivalents and no amounts drawn on its $500.0 million revolving credit facility |
Asset Disposition:
In March 2016, the Company executed a contract for the sale of a shopping center located in Waterbury, CT for $21.6 million, which is expected to be completed in the second quarter of 2016. This sale will be executed pursuant to a reverse Section 1031 exchange using the acquisition of the property in Queens, NY, completed in December 2015.
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 depreciated real estate assets, real estate impairment losses, rental property depreciation and amortization expense. 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 to make investment and capital allocation decisions and to compare the unlevered performance of our properties to our peers. The Company believes NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis, providing perspective not immediately apparent from operating income or net income.
In this release, the Company has provided NOI on a same-property basis, which includes the results of properties that were owned and operated for the entirety of the reporting periods being compared. Information on a same-property basis excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service and also excludes properties acquired, sold, or that are in the foreclosure process during the periods being compared. While there is judgment surrounding changes in designations, a property is removed from the same-property pool when a property is considered to be a redevelopment property because it is undergoing significant renovation or retenanting pursuant to a formal plan and is expected to have a significant impact on property operating income based on the retenanting that is occurring. A development or redevelopment property is moved back to the same-property pool once a substantial portion of the growth expected from the development or redevelopment is reflected in both the current and comparable prior year period, generally the first full year in which the property is 90% leased. Acquisitions are moved into the same-property pool once we have owned the property for the entirety of the comparable periods and the property is not under significant development or redevelopment. The Company has also provided NOI on a same-property basis adjusted to include redevelopment properties. The Company calculates same-property NOI using operating income as defined by GAAP reflecting only those income and expense items that are incurred at the property level, adjusted for the following items: lease termination fees, bankruptcy settlement income, non-cash rental income and ground rent expense and income or expenses that we do not believe are representative of ongoing operating results, if any.
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 believes that the use of EBITDA and Adjusted EBITDA as opposed to income before income taxes 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.
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 months ended March 31, 2016.
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| | Three Months Ended March 31, 2016 |
| | (in thousands) |
| Net income attributable to common shareholders | $ | 18,638 |
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| Adjustments: | |
| Rental property depreciation and amortization | 13,755 |
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| Limited partnership interests in operating partnership | 1,154 |
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| FFO Applicable to diluted common shareholders | 33,547 |
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FFO per diluted common share(1) | 0.32 |
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| Tenant bankruptcy settlement income | (1,150 | ) |
| Transaction costs | 50 |
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| Recurring FFO Applicable to diluted common shareholders | $ | 32,447 |
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Recurring FFO per diluted common share(1) | $ | 0.31 |
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Weighted average diluted common shares(1) | 105,649 |
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(1) Weighted average diluted shares used to calculate FFO per share and Recurring FFO per share for the period presented is higher than the GAAP weighted average diluted shares as a result of the dilutive impact of the 6.2 million Operating Partnership and LTIP units which are redeemable into our common shares. These redeemable units are not included in the weighted average diluted share count for the period 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 and same-property NOI (with and without redevelopment) to income (loss) before income taxes, the most directly comparable GAAP measure, for the three months ended March 31, 2016 and 2015.
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| | Three Months Ended March 31, |
| (Amounts in thousands) | 2016 | | 2015 |
| Income (loss) before income taxes | $ | 20,124 |
| | $ | (11,476 | ) |
| Interest income | (167 | ) | | (11 | ) |
| Interest and debt expense | 13,429 |
| | 15,169 |
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| Operating income | 33,386 |
| | 3,682 |
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| Depreciation and amortization | 13,915 |
| | 13,732 |
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| General and administrative expense | 6,720 |
| | 12,326 |
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| Transaction costs | 50 |
| | 21,859 |
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| Subtotal | 54,071 |
| | 51,599 |
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| Less: non-cash rental income | (2,142 | ) | | (2,049 | ) |
| Add: non-cash ground rent expense | 331 |
| | 349 |
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| NOI | 52,260 |
| | 49,899 |
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| Adjustments: | | | |
| NOI related to properties being redeveloped | (3,974 | ) | | (4,139 | ) |
| Tenant bankruptcy settlement income | (1,150 | ) | | (1,260 | ) |
| Management and development fee income from non-owned properties | (455 | ) | | (535 | ) |
| NOI related to properties acquired, disposed, or in foreclosure | (431 | ) | | (110 | ) |
| Environmental remediation costs | — |
| | 1,379 |
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| Other | 52 |
| | — |
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| Subtotal adjustments | (5,958 | ) | | (4,665 | ) |
| Same-property NOI | $ | 46,302 |
| | $ | 45,234 |
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| Adjustments: |
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| NOI related to properties being redeveloped | 3,974 |
| | 4,139 |
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| Same-property NOI including properties in redevelopment | $ | 50,276 |
| | $ | 49,373 |
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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 (loss), the most directly comparable GAAP measure, for the three months ended March 31, 2016 and 2015.
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| | Three Months Ended March 31, |
| (Amounts in thousands) | 2016 | | 2015 |
| Net income (loss) | $ | 19,788 |
| | $ | (12,017 | ) |
| Depreciation and amortization | 13,915 |
| | 13,732 |
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| Interest and debt expense | 13,429 |
| | 15,169 |
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| Income tax expense | 336 |
| | 541 |
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| EBITDA | 47,468 |
| | 17,425 |
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| Adjustments for Adjusted EBITDA: | | | |
| Tenant bankruptcy settlement income | (1,150 | ) | | (1,260 | ) |
| Transaction costs | 50 |
| | 21,859 |
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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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| Adjusted EBITDA | $ | 46,368 |
| | $ | 46,546 |
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EBITDA and Adjusted EBITDA are non-GAAP financial measures. Refer to “Non-GAAP Financial Measures” above.
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, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports.
ABOUT URBAN EDGE
Urban 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 84 properties totaling 14.9 million square feet of gross leasable area.
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, redevelopment and anchor repositioning 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, 2015.
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 | | | |
| ADDITIONAL DISCLOSURES | | | |
| As of March 31, 2016 | | | |
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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.
Non-GAAP Financial Measures and Forward Looking Statements
For additional information regarding non-GAAP financial measures and forward looking statements, please see pages 3 and 7 of this Supplemental Disclosure Package.
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| URBAN EDGE PROPERTIES | | |
| SUMMARY FINANCIAL RESULTS AND RATIOS | | |
| For the three months ended March 31, 2016 (unaudited) | |
| (in thousands, except per share, sf, rent psf and financial ratio data) | | |
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| | | Three months ended |
| | | March 31, 2016 |
| Summary Financial Results | | |
| Total revenue | | $ | 83,068 |
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| General & administrative expenses (G&A) | | $ | 6,720 |
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Adjusted EBITDA(7) | | $ | 46,368 |
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| Net income attributable to common shareholders | | $ | 18,638 |
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| Earnings per diluted share | | $ | 0.19 |
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| Funds from operations (FFO) | | $ | 33,547 |
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| FFO per diluted share | | $ | 0.32 |
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| Recurring FFO | | $ | 32,447 |
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| Recurring FFO per diluted share | | $ | 0.31 |
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| Total dividends paid per share | | $ | 0.20 |
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| Stock closing price low-high range | | $22.22 to $25.99 |
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Weighted average diluted shares used in EPS computations(1) | | 99,363 |
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Weighted average diluted shares used in FFO computations(1) | | 105,649 |
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| Summary Property, Operating and Financial Data | | |
| # of Total properties / # of Retail properties | | 84 / 83 |
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Gross leasable area (GLA) sf - retail portfolio(3)(5) | | 13,909,000 |
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Weighted average annual rent psf - retail portfolio(3)(5) | | $ | 16.85 |
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| Consolidated occupancy at end of period | | 94.9 | % |
Consolidated retail portfolio occupancy at end of period(5) | | 96.0 | % |
Same-property retail portfolio occupancy at end of period(5)(2) | | 97.0 | % |
Same-property retail portfolio physical occupancy at end of period(4)(5)(2) | | 95.4 | % |
Same-property NOI growth - cash basis(2) | | 2.4 | % |
| Same-property NOI growth, including redevelopment properties | | 1.8 | % |
| Cash NOI margin - Total portfolio | | 64.0 | % |
| Expense recovery ratio - Total portfolio | | 94.5 | % |
| New, renewal and option rent spread - cash basis | | 22.0 | % |
Net debt to total market capitalization(6) | | 27.1 | % |
Net debt to Adjusted EBITDA(6) | | 5.8 | x |
Adjusted EBITDA to interest expense(7) | | 3.6 | x |
Adjusted EBITDA to fixed charges(7) | | 2.6 | x |
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(1) Weighted average diluted shares used to calculate FFO per share and Recurring FFO per share for the period presented is higher than the GAAP weighted average diluted shares as a result of the dilutive impact of the 6.2 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 weighted average diluted share count for GAAP purposes for the period presented because their inclusion is anti-dilutive.
(2) 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 under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service and excludes properties acquired, sold, or that are in the foreclosure process during the periods being compared.
(3) GLA - retail portfolio excludes 942,000 square feet of warehouses. Weighted average annual rent per square foot for our retail portfolio and warehouses was $16.21.
(4) Physical occupancy includes tenants that have access to their leased space and includes dark and paying tenants.
(5) Our retail portfolio includes shopping centers and malls and excludes warehouses.
(6) See computation on page 15.
(7) See computation on page 13.
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| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED BALANCE SHEETS | | |
| As of March 31, 2016 (unaudited) and December 31, 2015 | | |
| (in thousands) | | |
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| | March 31, | | December 31, |
| | 2016 | | 2015 |
| ASSETS | | | |
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| Real estate, at cost: | |
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| Land | $ | 382,513 |
| | $ | 389,080 |
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| Buildings and improvements | 1,613,510 |
| | 1,630,539 |
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| Construction in progress | 94,506 |
| | 61,147 |
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| Furniture, fixtures and equipment | 3,891 |
| | 3,876 |
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| Total | 2,094,420 |
| | 2,084,642 |
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| Accumulated depreciation and amortization | (519,775 | ) | | (509,112 | ) |
| Real estate, net | 1,574,645 |
| | 1,575,530 |
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| Cash and cash equivalents | 162,354 |
| | 168,983 |
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| Cash held in escrow and restricted cash | 8,081 |
| | 9,042 |
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| Tenant and other receivables, net of allowance for doubtful accounts of $2,061 and $1,926, respectively | 9,306 |
| | 10,364 |
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| Receivable arising from the straight-lining of rents, net of allowance for doubtful accounts of $181 and $148, respectively | 89,046 |
| | 88,778 |
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| Identified intangible assets, net of accumulated amortization of $22,781 and $22,090, respectively | 33,262 |
| | 33,953 |
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| Deferred leasing costs, net of accumulated amortization of $13,503 and $12,987, respectively | 18,479 |
| | 18,455 |
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| Deferred financing costs, net of accumulated amortization of $887 and $709, respectively | 2,661 |
| | 2,838 |
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| Prepaid expenses and other assets | 10,160 |
| | 10,988 |
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| Total assets | $ | 1,907,994 |
| | $ | 1,918,931 |
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| LIABILITIES AND EQUITY | |
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| Liabilities: | | | |
| Mortgages payable, net | $ | 1,230,349 |
| | $ | 1,233,983 |
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| Identified intangible liabilities, net of accumulated amortization of $67,117 and $65,220, respectively | 152,958 |
| | 154,855 |
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| Accounts payable and accrued expenses | 39,508 |
| | 45,331 |
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| Other liabilities | 13,702 |
| | 13,308 |
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| Total liabilities | 1,436,517 |
| | 1,447,477 |
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| Commitments and contingencies | | | |
| Shareholders’ equity: | | | |
| Common shares: $0.01 par value; 500,000,000 shares authorized and 99,381,500 and 99,290,952 shares issued and outstanding, respectively | 994 |
| | 993 |
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| Additional paid-in capital | 476,227 |
| | 475,369 |
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| Accumulated deficit | (39,638 | ) | | (38,442 | ) |
| Noncontrolling interests: | | | |
| Redeemable noncontrolling interests | 33,541 |
| | 33,177 |
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| Noncontrolling interest in consolidated subsidiaries | 353 |
| | 357 |
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| Total equity | 471,477 |
| | 471,454 |
|
| Total liabilities and equity | $ | 1,907,994 |
| | $ | 1,918,931 |
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| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED AND COMBINED STATEMENTS OF INCOME | | |
| For the three months ended March 31, 2016 and 2015 (unaudited) | |
| (in thousands, except per share amounts) | | |
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| | | | | | | |
| | Three Months Ended March 31, |
| | 2016 | | 2015 |
| REVENUE | | | |
| Property rentals | $ | 58,929 |
| | $ | 57,586 |
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| Tenant expense reimbursements | 22,507 |
| | 24,303 |
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| Management and development fees | 455 |
| | 535 |
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| Other income | 1,177 |
| | 1,359 |
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| Total revenue | 83,068 |
| | 83,783 |
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| EXPENSES | | | |
| Depreciation and amortization | 13,915 |
| | 13,732 |
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| Real estate taxes | 13,249 |
| | 12,824 |
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| Property operating | 12,859 |
| | 16,523 |
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| General and administrative | 6,720 |
| | 12,326 |
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| Ground rent | 2,538 |
| | 2,514 |
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| Transaction costs | 50 |
| | 21,859 |
|
| Provision for doubtful accounts | 351 |
| | 323 |
|
| Total expenses | 49,682 |
| | 80,101 |
|
| Operating income | 33,386 |
| | 3,682 |
|
| Interest income | 167 |
| | 11 |
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| Interest and debt expense | (13,429 | ) | | (15,169 | ) |
| Income (loss) before income taxes | 20,124 |
| | (11,476 | ) |
| Income tax expense | (336 | ) | | (541 | ) |
| Net income (loss) | 19,788 |
| | (12,017 | ) |
| Less (net income) loss attributable to noncontrolling interests in: | | | |
| Operating partnership | (1,154 | ) | | 560 |
|
| Consolidated subsidiaries | 4 |
| | (6 | ) |
| Net income (loss) attributable to common shareholders | $ | 18,638 |
| | $ | (11,463 | ) |
| | | | |
| Earnings (loss) per common share - Basic: | $ | 0.19 |
| | $ | (0.12 | ) |
| Earnings (loss) per common share - Diluted: | $ | 0.19 |
| | $ | (0.12 | ) |
| Weighted average shares outstanding - Basic | 99,265 |
| | 99,248 |
|
| Weighted average shares outstanding - Diluted | 99,363 |
| | 99,248 |
|
|
| | |
| URBAN EDGE PROPERTIES | | |
| SUPPLEMENTAL SCHEDULE OF NET OPERATING INCOME | | |
| For the three months ended March 31, 2016 and 2015 | |
| (in thousands) | | |
| | | |
|
| | | | | | | | | |
| | Three Months Ended March 31, | | Percent Change |
| | 2016 | | 2015 | |
Total cash NOI(1) | | | | | |
| Total revenue | $ | 79,281 |
| | $ | 79,920 |
| | (0.8)% |
| Total property operating expenses | (28,574 | ) | | (30,436 | ) | | (6.1)% |
| Cash NOI - total portfolio | $ | 50,707 |
| | $ | 49,484 |
| | 2.5% |
| | | | | | |
| NOI margin (NOI / Total revenue) | 64.0 | % | | 61.9 | % | | |
| | | | | | |
| | | | | | |
Same-property cash NOI(2) | | | | | |
| Property rentals | $ | 51,208 |
| | $ | 49,933 |
| | |
| Tenant expense reimbursements | 20,740 |
| | 22,657 |
| | |
| Percentage rent | 266 |
| | 371 |
| | |
| Total revenue | 72,214 |
| | 72,961 |
| | (1.0)% |
| Real estate taxes | (12,292 | ) | | (11,908 | ) | | |
| Property operating | (11,156 | ) | | (13,319 | ) | | |
| Ground rent | (2,206 | ) | | (2,165 | ) | | |
Provision for doubtful accounts(4) | (258 | ) | | (335 | ) | | |
| Total property operating expenses | (25,912 | ) | | (27,727 | ) | | (6.5)% |
Same-property cash NOI(3) | $ | 46,302 |
| | $ | 45,234 |
| | 2.4% |
| | | | | | |
| NOI related to properties being redeveloped | $ | 3,974 |
| | $ | 4,139 |
| | |
Same-property cash NOI including properties in redevelopment | $ | 50,276 |
| | $ | 49,373 |
| | 1.8% |
| | | | | | |
Same-property physical occupancy(3) | 95.4 | % | | 94.9 | % | | |
Same-property leased occupancy(3) | 97.0 | % | | 96.5 | % | | |
| Number of properties included in same-property analysis | 78 |
| | | | |
| | | | | | |
(1) Total revenue includes cash received from tenant bankruptcy settlements and lease termination fees and excludes management and development fee income and non-cash amounts. Property operating expense amounts have been adjusted to exclude non-cash amounts.
(2) Excludes management and development fee income, lease termination fees, bankruptcy settlement income, non-cash rental income and ground rent expense and income or expenses that we do not believe are representative of ongoing operating 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 under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service and properties acquired, sold, or are in the foreclosure process during the periods being compared. Same-property occupancy includes dark and paying tenants.
| |
(4) | Excludes $0.1 million of bad debt expense related to non-cash straight-line rents for the three months ended March 31, 2016. No such reserve was recorded for the three months ended March 31, 2015. |
|
| | |
| URBAN EDGE PROPERTIES | | |
| EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION and AMORTIZATION (EBITDA) |
| For the three months ended March 31, 2016 and 2015 | |
| (in thousands) | | |
| | | |
|
| | | | | | | |
| | Three Months Ended March 31, |
| | 2016 | | 2015 |
| Net income (loss) | $ | 19,788 |
| | $ | (12,017 | ) |
| Depreciation and amortization | 13,915 |
| | 13,732 |
|
| Interest expense | 12,770 |
| | 14,485 |
|
| Amortization of deferred financing costs | 659 |
| | 684 |
|
| Income tax expense | 336 |
| | 541 |
|
| EBITDA | 47,468 |
| | 17,425 |
|
| Adjustments for Adjusted EBITDA: | | | |
| Tenant bankruptcy settlement income | (1,150 | ) | | (1,260 | ) |
| Transaction costs | 50 |
| | 21,859 |
|
| One-time equity awards related to the spin-off | — |
| | 7,143 |
|
| Environmental remediation costs | — |
| | 1,379 |
|
| Adjusted EBITDA | $ | 46,368 |
| | $ | 46,546 |
|
| | | | |
| Interest expense | $ | 12,770 |
| | $ | 14,485 |
|
| | | | |
| Adjusted EBITDA to interest expense | 3.6 | x | | 3.2 | x |
| | | | |
| Fixed charges | | | |
Interest and debt expense(1) | $ | 13,429 |
| | $ | 15,169 |
|
| Scheduled principal amortization | 4,130 |
| | 3,687 |
|
| Total fixed charges | $ | 17,559 |
| | $ | 18,856 |
|
| | | | |
| Adjusted EBITDA to fixed charges | 2.6 | x | | 2.5 | x |
| | | | |
(1) Includes amortization of deferred financing costs
|
| | |
| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS | |
| For the three months ended March 31, 2016 and 2015 | |
| (in thousands, except per share data) | | |
| | | |
|
| | | | | | | |
| | Three Months Ended March 31, |
| | 2016 | | 2015 |
| Net income (loss) attributable to common shareholders | $ | 18,638 |
| | $ | (11,463 | ) |
| Adjustments: | | | |
| Rental property depreciation and amortization | 13,755 |
| | 13,538 |
|
Limited partnership interests in operating partnership(1) | 1,154 |
| | (560 | ) |
| FFO Applicable to diluted common shareholders | 33,547 |
| | 1,515 |
|
FFO per diluted common share(2) | 0.32 |
| | 0.01 |
|
| Adjustments for Recurring FFO: | | | |
| Tenant bankruptcy settlement income | (1,150 | ) | | (1,260 | ) |
| Transaction costs | 50 |
| | 21,859 |
|
| One-time equity awards related to the spin-off | — |
| | 7,143 |
|
| Environmental remediation costs | — |
| | 1,379 |
|
| Debt restructuring expenses | — |
| | 1,034 |
|
| Recurring FFO Applicable to diluted common shareholders | $ | 32,447 |
| | $ | 31,670 |
|
Recurring FFO per diluted common share(2) | $ | 0.31 |
| | $ | 0.30 |
|
| | | | |
Weighted Average diluted common shares(2) | 105,649 |
| | 105,170 |
|
(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 applicable to diluted common shareholders and Recurring FFO applicable to diluted common shareholders 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 weighted average diluted shares as a result of the dilutive impact of the 6.2 million and 6.1 million LTIP and OP units which are redeemable into our common stock for the quarters ended March 31, 2016 and 2015, respectively. These redeemable units are not included in the weighted average diluted share count for GAAP purposes because their inclusion is anti-dilutive.
|
| | |
| URBAN EDGE PROPERTIES | | |
| MARKET CAPITALIZATION, DEBT RATIOS AND LIQUIDITY | | |
| As of March 31, 2016 | | |
| (in thousands, except share data) | | |
| | | |
|
| | | |
| | March 31, 2016 |
| Closing market price of common shares | $ | 25.84 |
|
| Common stock shares | |
| Basic common shares | 99,269,181 |
|
| Diluted common shares: | |
| OP and LTIP units | 6,150,224 |
|
| Unvested restricted common shares and OPP units | 270,635 |
|
| Diluted common shares | 105,690,040 |
|
| | |
| Equity market capitalization | $ | 2,731,031 |
|
| | |
| | |
Total consolidated debt(2) | $ | 1,239,842 |
|
| Cash and cash equivalents | (162,354 | ) |
| Net debt | $ | 1,077,488 |
|
| | |
Net Debt to Adjusted EBITDA(1) | 5.8 | x |
| | |
Total consolidated debt(2) | $ | 1,239,842 |
|
| Equity market capitalization | 2,731,031 |
|
| Total market capitalization | $ | 3,970,873 |
|
| | |
| Net debt to total market capitalization at applicable market price | 27.1 | % |
| | |
| | |
Gross real estate investments, at cost(3) | $ | 2,090,529 |
|
| | |
| Net debt to gross real estate investments | 51.5 | % |
| | |
| | |
(1) Adjusted EBITDA for the period has been annualized.
(2) Total consolidated debt excludes unamortized debt issuance costs.
(3) Excludes Furniture, fixtures and equipment.
|
| | |
| URBAN EDGE PROPERTIES | | |
| ADDITIONAL DISCLOSURES | |
| (in thousands) | | |
| | | |
|
| | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2016 | | 2015 |
| Certain non-cash items: | | | |
|
Straight-line rental income(1) | | $ | 301 |
| | $ | 83 |
|
Amortization of below-market lease intangibles, net(1) | | 1,875 |
| | 1,986 |
|
Straight-line ground rent expense(2) | | (88 | ) | | (106 | ) |
Amortization of below-market lease intangibles, lessee(2) | | (243 | ) | | (243 | ) |
Amortization of deferred financing costs(4) | | (659 | ) | | (684 | ) |
| Capitalized interest | | 518 |
| | — |
|
Share-based compensation expense(3) | | (1,297 | ) | | (7,441 | ) |
| | | | | |
Capital expenditures:(5) | | | | |
| Development and redevelopment costs | | $ | 9,755 |
| | $ | 3,597 |
|
| Maintenance capital expenditures | | 560 |
| | 1,888 |
|
| Leasing commissions | | 604 |
| | 354 |
|
| Tenant improvements and allowances | | 1,557 |
| | 77 |
|
| Total capital expenditures | | $ | 12,476 |
| | $ | 5,916 |
|
| | | | | |
| | | March 31, 2016 | | December 31, 2015 |
| Prepaid expenses and other assets: | | | | |
| Prepaid expenses | | $ | 7,723 |
| | $ | 8,521 |
|
| Other assets | | 2,437 |
| | 2,467 |
|
| Total prepaid expenses and other assets | | $ | 10,160 |
| | $ | 10,988 |
|
| | | | | |
| Other Liabilities: | | | | |
| Deferred ground rent expense | | $ | 6,126 |
| | $ | 6,038 |
|
| Deferred tax liability, net | | 3,620 |
| | 3,607 |
|
| Other | | 3,956 |
| | 3,663 |
|
| Total other liabilities | | $ | 13,702 |
| | $ | 13,308 |
|
| | | | | |
| Accounts payable and accrued expenses: | | | | |
| Tenant prepaid/deferred revenue | | $ | 15,112 |
| | $ | 16,097 |
|
| Accrued capital expenditures and leasing costs | | 7,329 |
| | 10,261 |
|
| Other | | 17,067 |
| | 18,973 |
|
| Total accounts payable and accrued expenses | | $ | 39,508 |
| | $ | 45,331 |
|
(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) Amounts included in the financial statement line item "General and Administrative" in the consolidated and combined statements of income. Includes $7.1 million of one-time expenses associated with the issuance of LTIP awards during the three months ended March 31, 2015.
(4) Amounts included in the financial statement line item "Interest and debt expense" in the consolidated and combined statements of income.
(5) Amounts are reported on a GAAP basis.
|
| | |
| URBAN EDGE PROPERTIES | | |
| TENANT CONCENTRATION - TOP TWENTY-FIVE TENANTS | |
| As of March 31, 2016 | | |
| | | |
| | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | |
| 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 |
| 920,226 |
| 6.2% | $ | 15,801,538 |
| 7.1% | $ | 17.17 |
| 15.3 |
|
| Wal-Mart/Sam's Wholesale | 9 |
| 1,438,730 |
| 9.7% | 10,726,552 |
| 4.8% | 7.46 |
| 9.8 |
|
| The TJX Companies, Inc. | 15 |
| 542,522 |
| 3.7% | 8,683,212 |
| 3.9% | 16.01 |
| 5.6 |
|
| Lowe's | 6 |
| 976,415 |
| 6.6% | 8,575,004 |
| 3.8% | 8.78 |
| 11.5 |
|
| Stop & Shop / Koninklijke Ahold NV | 9 |
| 655,618 |
| 4.4% | 7,949,895 |
| 3.6% | 12.13 |
| 7.5 |
|
| Best Buy & Co | 7 |
| 312,952 |
| 2.1% | 6,857,402 |
| 3.1% | 21.91 |
| 8.0 |
|
| Kohl's | 8 |
| 716,345 |
| 4.8% | 6,713,770 |
| 3.0% | 9.37 |
| 5.6 |
|
| ShopRite | 5 |
| 336,612 |
| 2.3% | 5,421,307 |
| 2.4% | 16.11 |
| 7.6 |
|
| BJ's Wholesale Club | 4 |
| 454,297 |
| 3.1% | 5,278,625 |
| 2.4% | 11.62 |
| 10.6 |
|
| Sears Holdings, Inc. (Sears and Kmart) | 4 |
| 547,443 |
| 3.7% | 5,154,142 |
| 2.3% | 9.41 |
| 19.9 |
|
| PetSmart, Inc. | 9 |
| 235,309 |
| 1.6% | 5,133,861 |
| 2.3% | 21.82 |
| 4.5 |
|
| Toys "R" Us | 7 |
| 285,858 |
| 1.9% | 3,685,514 |
| 1.7% | 12.89 |
| 6.1 |
|
| Staples, Inc. | 8 |
| 167,554 |
| 1.1% | 3,612,769 |
| 1.6% | 21.56 |
| 3.5 |
|
| Target | 2 |
| 297,856 |
| 2.0% | 3,448,666 |
| 1.5% | 11.58 |
| 16.0 |
|
| Whole Foods | 2 |
| 100,682 |
| 0.7% | 3,365,570 |
| 1.5% | 33.43 |
| 11.7 |
|
| Century 21 | 1 |
| 156,649 |
| 1.1% | 3,085,619 |
| 1.4% | 19.70 |
| 10.8 |
|
| LA Fitness | 4 |
| 181,342 |
| 1.2% | 3,085,085 |
| 1.4% | 17.01 |
| 11.4 |
|
| Dick's Sporting Goods | 3 |
| 151,136 |
| 1.0% | 2,971,814 |
| 1.3% | 19.66 |
| 2.8 |
|
| Petco | 8 |
| 132,210 |
| 0.9% | 2,350,616 |
| 1.1% | 17.78 |
| 5.0 |
|
| 24 Hour Fitness | 1 |
| 53,750 |
| 0.4% | 2,289,750 |
| 1.0% | 42.60 |
| 15.8 |
|
| National Wholesale Liquidator | 1 |
| 171,216 |
| 1.2% | 2,140,019 |
| 1.0% | 12.50 |
| 6.8 |
|
| Bed Bath & Beyond | 4 |
| 143,973 |
| 1.0% | 1,874,970 |
| 0.8% | 13.02 |
| 4.8 |
|
| The Gap, Inc. | 5 |
| 67,768 |
| 0.5% | 1,848,313 |
| 0.8% | 27.27 |
| 4.7 |
|
| Sleepy's | 11 |
| 61,879 |
| 0.4% | 1,738,693 |
| 0.8% | 28.10 |
| 4.8 |
|
| REI | 2 |
| 48,237 |
| 0.3% | 1,668,840 |
| 0.7% | 34.60 |
| 4.4 |
|
| | | | | | | | |
| Total/Weighted Average | 142 |
| 9,156,579 |
| 61.9% | $ | 123,461,546 |
| 55.3% | $ | 13.48 |
| 9.5 |
|
| | | | | | | | |
(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 months ended March 31, 2016 | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | |
| 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) | Same Space Avg Term |
| Three months ended March 31, 2016 | | | | | | | (years) |
| New Leases | 10 | 51,280 |
| 4 | 13,262 |
| $ | 29.07 |
| $ | 57.95 |
| 99.3 | % | $ | 9.43 |
| 10.3 |
|
| Renewals & Options | 16 | 116,261 |
| 16 | 116,261 |
| 16.62 |
| 17.72 |
| 6.6 | % | — |
| 5.0 |
|
| Totals/Average | 26 | 167,541 |
| 20 | 129,523 |
| $ | 17.90 |
| $ | 21.84 |
| 22.0 | % | $ | 0.97 |
| 5.6 |
|
| | | | | | | | | | |
(1) Includes both tenant improvements and landlord contributions.
|
| | |
| URBAN EDGE PROPERTIES | | |
| RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE | |
| As of March 31, 2016 | | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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 | % | $ | 27.79 |
| 11 | 24,000 |
| 1.2 | % | $ | 53.25 |
| 12 | 37,000 |
| 0.3 | % | $ | 44.31 |
|
2016(3) | 3 |
| 69,000 |
| 0.6 | % | 14.19 |
| 43 | 100,000 |
| 4.8 | % | 40.31 |
| 46 | 169,000 |
| 1.2 | % | 29.64 |
|
| 2017 | 9 |
| 282,000 |
| 2.4 | % | 16.66 |
| 72 | 211,000 |
| 10.2 | % | 34.24 |
| 81 | 493,000 |
| 3.5 | % | 24.19 |
|
| 2018 | 21 |
| 1,011,000 |
| 8.6 | % | 10.56 |
| 52 | 140,000 |
| 6.7 | % | 45.80 |
| 73 | 1,151,000 |
| 8.3 | % | 14.84 |
|
| 2019 | 27 |
| 973,000 |
| 8.2 | % | 17.81 |
| 76 | 223,000 |
| 10.8 | % | 40.15 |
| 103 | 1,196,000 |
| 8.6 | % | 21.97 |
|
| 2020 | 29 |
| 1,115,000 |
| 9.4 | % | 15.89 |
| 53 | 180,000 |
| 8.7 | % | 41.40 |
| 82 | 1,295,000 |
| 9.3 | % | 19.43 |
|
| 2021 | 23 |
| 706,000 |
| 6.0 | % | 16.45 |
| 49 | 150,000 |
| 7.2 | % | 34.53 |
| 72 | 856,000 |
| 6.2 | % | 19.62 |
|
| 2022 | 17 |
| 916,000 |
| 7.7 | % | 10.95 |
| 34 | 99,000 |
| 4.8 | % | 36.77 |
| 51 | 1,015,000 |
| 7.3 | % | 13.47 |
|
| 2023 | 16 |
| 986,000 |
| 8.3 | % | 16.89 |
| 30 | 105,000 |
| 5.1 | % | 34.66 |
| 46 | 1,091,000 |
| 7.8 | % | 18.60 |
|
| 2024 | 23 |
| 1,224,000 |
| 10.3 | % | 11.27 |
| 34 | 128,000 |
| 6.2 | % | 23.72 |
| 57 | 1,352,000 |
| 9.7 | % | 12.45 |
|
| 2025 | 6 |
| 450,000 |
| 3.8 | % | 13.87 |
| 32 | 94,000 |
| 4.5 | % | 35.78 |
| 38 | 544,000 |
| 3.9 | % | 17.65 |
|
| 2026 | 7 |
| 543,000 |
| 4.6 | % | 8.88 |
| 34 | 140,000 |
| 6.7 | % | 24.25 |
| 41 | 683,000 |
| 4.9 | % | 12.03 |
|
| Thereafter | 41 |
| 3,329,000 |
| 28.1 | % | 14.09 |
| 29 | 146,000 |
| 7.0 | % | 31.83 |
| 70 | 3,475,000 |
| 25.0 | % | 14.84 |
|
| Subtotal/Average | 223 |
| 11,617,000 |
| 98.1 | % | $ | 13.93 |
| 549 | 1,740,000 |
| 83.9 | % | $ | 35.76 |
| 772 | 13,357,000 |
| 96.0 | % | $ | 16.77 |
|
| Vacant | 11 |
| 219,000 |
| 1.9 | % | N/A | 116 | 333,000 |
| 16.1 | % | N/A | 127 | 552,000 |
| 4.0 | % | N/A |
| Total/Average | 234 |
| 11,836,000 |
| 100 | % | N/A | 665 | 2,073,000 |
| 100 | % | N/A | 899 | 13,909,000 |
| 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.
(3) Remainder of 2016.
Note: Amounts shown in table above include both current leases and signed leases that have not commenced on vacant spaces for all retail properties (including properties in redevelopment). The average base rent for our 942,000 square-foot warehouse property (excluded from the table above) is $5.40 per square foot as of March 31, 2016.
|
| | |
| URBAN EDGE PROPERTIES | | |
| RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE ASSUMING EXERCISE OF ALL RENEWALS AND OPTIONS |
| As of March 31, 2016 | | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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 | % | $ | 27.79 |
| 11 |
| 24,000 |
| 1.1% | $ | 53.25 |
| 12 |
| 37,000 |
| 0.3 | % | $ | 44.31 |
|
2016(3) | 1 |
| 12,000 |
| 0.1 | % | 25.70 |
| 33 |
| 66,000 |
| 3.2% | 37.10 |
| 34 |
| 78,000 |
| 0.6 | % | 35.35 |
|
| 2017 | 4 |
| 89,000 |
| 0.8 | % | 21.28 |
| 44 |
| 109,000 |
| 5.2% | 37.21 |
| 48 |
| 198,000 |
| 1.4 | % | 30.05 |
|
| 2018 | 4 |
| 76,000 |
| 0.6 | % | 19.60 |
| 40 |
| 101,000 |
| 4.9% | 54.32 |
| 44 |
| 177,000 |
| 1.3 | % | 39.41 |
|
| 2019 | 3 |
| 142,000 |
| 1.2 | % | 12.39 |
| 49 |
| 121,000 |
| 5.9% | 48.69 |
| 52 |
| 263,000 |
| 1.9 | % | 29.16 |
|
| 2020 | 6 |
| 116,000 |
| 1.0 | % | 39.24 |
| 41 |
| 124,000 |
| 6.0% | 53.01 |
| 47 |
| 240,000 |
| 1.7 | % | 46.35 |
|
| 2021 | 7 |
| 142,000 |
| 1.2 | % | 19.90 |
| 39 |
| 103,000 |
| 5.0% | 37.25 |
| 46 |
| 245,000 |
| 1.7 | % | 27.19 |
|
| 2022 | 3 |
| 122,000 |
| 1.0 | % | 12.80 |
| 37 |
| 123,000 |
| 5.9% | 34.44 |
| 40 |
| 245,000 |
| 1.7 | % | 23.66 |
|
| 2023 | 5 |
| 320,000 |
| 2.7 | % | 17.47 |
| 26 |
| 78,000 |
| 3.7% | 37.07 |
| 31 |
| 398,000 |
| 2.9 | % | 21.31 |
|
| 2024 | 11 |
| 215,000 |
| 1.8 | % | 17.59 |
| 39 |
| 117,000 |
| 5.6% | 39.28 |
| 50 |
| 332,000 |
| 2.4 | % | 25.23 |
|
| 2025 | 7 |
| 262,000 |
| 2.2 | % | 21.23 |
| 29 |
| 91,000 |
| 4.4% | 38.13 |
| 36 |
| 353,000 |
| 2.5 | % | 25.59 |
|
| 2026 | 8 |
| 264,000 |
| 2.2 | % | 18.41 |
| 41 |
| 153,000 |
| 7.4% | 36.73 |
| 49 |
| 417,000 |
| 3.0 | % | 25.13 |
|
| Thereafter | 163 |
| 9,844,000 |
| 83.2 | % | 19.02 |
| 120 |
| 530,000 |
| 25.6% | 41.36 |
| 283 |
| 10,374,000 |
| 74.6 | % | 20.17 |
|
| Subtotal/Average | 223 |
| 11,617,000 |
| 98.1 | % | $ | 19.09 |
| 549 |
| 1,740,000 |
| 83.9% | $ | 41.56 |
| 772 |
| 13,357,000 |
| 96.0 | % | $ | 22.02 |
|
| Vacant | 11 |
| 219,000 |
| 1.9 | % | N/A |
| 116 |
| 333,000 |
| 16.1% | N/A |
| 127 |
| 552,000 |
| 4.0 | % | N/A |
|
| Total/Average | 234 |
| 11,836,000 |
| 100 | % | N/A |
| 665 |
| 2,073,000 |
| 100% | N/A |
| 899 |
| 13,909,000 |
| 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.
(3) Remainder of 2016.
Note: Amounts shown in table above includes both current leases and signed leases that have not commenced on vacant spaces for all retail properties (including properties in redevelopment). The average base rent for our 942,000 square-foot warehouse property assuming exercise of all options at future tenant rent (excluded from the table above) is $5.55 per square foot as of March 31, 2016.
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of March 31, 2016 | | |
| (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(7) | | Major Tenants |
| SHOPPING CENTERS AND MALLS: | | | | |
| California: | | | | | | | | | |
| Signal Hill | | 45,000 |
| 100.0% | | $24.08 | | — | | Best Buy |
Vallejo (leased through 2043)(8) | | 45,000 |
| 100.0% | | 19.26 | | — | | Best Buy |
Walnut Creek (1149 South Main Street)(6) | | 31,000 |
| 100.0% | | 70.00 | | — | | Anthropologie (lease not commenced) |
Walnut Creek (Mt. Diablo) (4) | | 7,000 |
| 100.0% | | 74.00 | | — | | Anthropologie |
| | | | | | | | | | |
| Connecticut: | | | | | | | | | |
| Newington | | 189,000 |
| 100.0% | | 9.72 | | $10,656 | (3) | Wal-Mart, Staples |
| Waterbury | | 147,000 |
| 77.9% | | 15.87 | | $13,254 | (3) | ShopRite, Goodwill (lease not commenced) |
| | | | | | | | | | |
| Maryland: | | | | | | | | | |
| Baltimore (Towson) | | 155,000 |
| 100.0% | | 16.89 | | $14,814 | (3) | Shoppers Food Warehouse, hhgregg, Staples, HomeGoods, Golf Galaxy |
| Glen Burnie | | 121,000 |
| 90.4% | | 9.87 | | — | | Gavigan’s Home Furnishings, Pep Boys |
| Rockville | | 94,000 |
| 98.1% | | 24.19 | | — | | Regal Cinemas |
Wheaton (leased through 2060)(8) | | 66,000 |
| 100.0% | | 16.36 | | — | | Best Buy |
| | | | | | | | | | |
| Massachusetts: | | | | | | | | | |
Cambridge (leased through 2033)(8) | | 48,000 |
| 100.0% | | 21.83 | | — | | PetSmart, Modell’s Sporting Goods |
| Chicopee | | 224,000 |
| 100.0% | | 5.50 | | $7,875 | (3) | Wal-Mart |
Milford (leased through 2019)(8) | | 83,000 |
| 100.0% | | 9.01 | | — | | Kohl’s |
| Springfield | | 182,000 |
| 100.0% | | 5.57 | | $5,432 | (3) | Wal-Mart |
| | | �� | | | | | | | |
| New Hampshire: | | | | | | | | | |
| Salem | | 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 |
| 99.4% | | 31.28 | | $300,000 | | Target, Century 21, Whole Foods Market, Marshalls, Nordstrom Rack, Saks Off 5th, HomeGoods, Hennes & Mauritz, Bloomingdale’s Outlet, Nike Factory Store, Old Navy, Nieman Marcus Last Call Studio |
| Brick | | 278,000 |
| 95.3% | | 18.63 | | $30,303 | (3) | Kohl’s, ShopRite, Marshalls |
Carlstadt (leased through 2050)(8) | | 78,000 |
| 95.5% | | 23.38 | | — | | Stop & Shop |
| Cherry Hill | | 261,000 |
| 97.3% | | 8.55 | | $13,151 | (3) | Wal-Mart, Toys “R” Us, Maxx Fitness (lease not commenced) |
| Dover | | 173,000 |
| 94.8% | | 13.59 | | $12,475 | (3) | ShopRite, T.J. Maxx |
| East Brunswick | | 427,000 |
| 100.0% | | 18.66 | | $34,773 | (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 |
| 85.3% | | 19.01 | | $36,281 | (3) | The Home Depot, Dick’s Sporting Goods, Marshalls |
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of March 31, 2016 | | |
| (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(7) | | Major Tenants |
| East Hanover (280 Route 10 West) | | 28,000 |
| 100.0% | | 34.71 | | $4,314 | (3) | REI |
| East Rutherford | | 197,000 |
| 100.0% | | 12.50 | | $12,891 | (3) | Lowe’s |
| Eatontown | | 30,000 |
| 73.9% | | 29.09 | | — | | Petco |
| Englewood | | 41,000 |
| 64.1% | | 20.83 | | $11,537 | | New York Sports Club |
| Garfield | | 195,000 |
| 100.0% | | 13.67 | | — | | Wal-Mart, Marshalls, Petsmart (lease not commenced), Burlington Coat Factory (lease not commenced) |
| Hackensack | | 275,000 |
| 94.4% | | 21.55 | | $38,464 | (3) | The Home Depot, Staples, Petco, 99 Ranch (lease not commenced) |
| Hazlet | | 95,000 |
| 100.0% | | 3.43 | | — | | Stop & Shop (5) |
| Jersey City | | 236,000 |
| 100.0% | | 12.30 | | $19,232 | (3) | Lowe’s, P.C. Richard & Son |
| Kearny | | 104,000 |
| 98.2% | | 18.86 | | — | | LA Fitness, Marshalls |
| Lawnside | | 147,000 |
| 99.3% | | 14.38 | | $10,136 | (3) | The Home Depot, PetSmart |
| Lodi (Route 17 North) | | 171,000 |
| 100.0% | | 12.50 | | $10,759 | (3) | National Wholesale Liquidators |
| Lodi (Washington Street) | | 85,000 |
| 83.6% | | 20.37 | | — | | Blink Fitness, Aldi |
| Manalapan | | 208,000 |
| 100.0% | | 17.47 | | $19,960 | (3) | Best Buy, Bed Bath & Beyond, Babies “R” Us, Modell’s Sporting Goods, PetSmart |
| Marlton | | 213,000 |
| 100.0% | | 14.08 | | $16,373 | (3) | Kohl’s, ShopRite, PetSmart |
| Middletown | | 231,000 |
| 100.0% | | 13.15 | | $16,477 | (3) | Kohl’s, Stop & Shop |
| Montclair | | 18,000 |
| 100.0% | | 26.20 | | $2,495 | (3) | Whole Foods Market |
| Morris Plains | | 177,000 |
| 91.2% | | 21.47 | | $20,272 | (3) | Kohl’s, ShopRite (5) |
| North Bergen (Kennedy Boulevard) | | 62,000 |
| 100.0% | | 13.73 | | $4,834 | (3) | Food Bazaar |
| North Bergen (Tonnelle Avenue) | | 410,000 |
| 100.0% | | 20.47 | | $74,814 | | Wal-Mart, BJ’s Wholesale Club, PetSmart, Staples |
| North Plainfield | | 206,000 |
| 95.3% | | 9.27 | | — | | Costco, The Tile Shop, La-Z-Boy (lease not commenced) |
Paramus (leased through 2033)(8) | | 63,000 |
| 100.0% | | 42.23 | | — | | 24 Hour Fitness |
South Plainfield (leased through 2039)(8) | | 56,000 |
| 96.3% | | 20.53 | | $4,860 | (3) | Staples, Party City |
| Totowa | | 271,000 |
| 100.0% | | 16.96 | | $23,494 | (3) | The Home Depot, Bed Bath & Beyond, buy buy Baby, Marshalls, Staples |
| Turnersville | | 96,000 |
| 100.0% | | 9.62 | | — | | Haynes Furniture Outlet (The Dump) |
| Union (2445 Springfield Avenue) | | 232,000 |
| 100.0% | | 17.85 | | $27,029 | (3) | The Home Depot |
| Union (Route 22 and Morris Avenue) | | 276,000 |
| 99.4% | | 18.43 | | $30,667 | (3) | Lowe’s, Toys “R” Us, Office Depot |
| Watchung | | 170,000 |
| 96.6% | | 16.65 | | $14,294 | (3) | BJ’s Wholesale Club |
| Woodbridge | | 226,000 |
| 84.1% | | 14.35 | | $19,596 | (3) | Wal-Mart |
| | | | | | | | | | |
| New York: | | | | | | | | | |
| Bronx (1750-1780 Gun Hill Road) | | 77,000 |
| 100.0% | | 33.86 | | — | | Planet Fitness, Aldi |
Bronx (Bruckner Boulevard)(6) | | 501,000 |
| 78.1% | | 16.28 | | — | | Kmart, Toys “R” Us |
| Buffalo (Amherst) | | 311,000 |
| 96.9% | | 9.19 | | — | | BJ’s Wholesale Club, T.J. Maxx, HomeGoods, Toys “R” Us, LA Fitness |
Commack (leased through 2021)(8) | | 47,000 |
| 100.0% | | 19.22 | | — | | PetSmart, Ace Hardware |
Dewitt (leased through 2041)(8) | | 46,000 |
| 100.0% | | 22.51 | | — | | Best Buy |
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of March 31, 2016 | | |
| (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(7) | | Major Tenants |
Freeport (240 West Sunrise Highway) (leased through 2040)(8) | | 44,000 |
| 100.0% | | 20.28 | | — | | Bob’s Discount Furniture |
| Freeport (437 East Sunrise Highway) | | 173,000 |
| 100.0% | | 21.95 | | $20,272 | (3) | The Home Depot, Staples |
| Huntington | | 204,000 |
| 99.7% | | 14.98 | | $15,801 | (3) | Kmart, Marshalls, Old Navy, Petco |
| Inwood | | 100,000 |
| 92.6% | | 19.00 | | — | | Stop & Shop |
| Mount Kisco | | 189,000 |
| 100.0% | | 16.69 | | $15,187 | | Target, Stop & Shop |
New Hyde Park (leased through 2029)(8) | | 101,000 |
| 100.0% | | 20.21 | | — | | Stop & Shop |
| Oceanside | | 16,000 |
| 100.0% | | 28.00 | | — | | Party City |
Queens(6) | | 46,000 |
| 81.3% | | 36.99 | | — | | |
| Rochester | | 205,000 |
| 100.0% | | 3.08 | | $4,158 | (3) | Wal-Mart |
Rochester (Henrietta) (leased through 2056)(8) | | 165,000 |
| 94.2% | | 3.96 | | — | | Kohl’s |
| Staten Island | | 165,000 |
| 88.8% | | 23.88 | | — | | Western Beef, Planet Fitness |
| West Babylon | | 66,000 |
| 92.7% | | 17.11 | | — | | Best Market, Rite Aid |
| | | | | | | | | | |
| Pennsylvania: | | | | | | | | | |
| Allentown | | 372,000 |
| 100.0% | | 11.77 | | $28,432 | (3) | Burlington Coat Factory, Giant Food, Dick’s Sporting Goods, T.J. Maxx, Petco, BigLots |
| Bensalem | | 185,000 |
| 100.0% | | 12.84 | | $14,112 | (3) | Kohl’s, Ross Dress for Less, Staples, Petco |
| Bethlehem | | 147,000 |
| 94.4% | | 7.15 | | $5,302 | (3) | Giant Food, Petco |
| Broomall | | 169,000 |
| 100.0% | | 10.68 | | $10,136 | (3) | Giant Food, Planet Fitness, A.C. Moore, PetSmart |
| Glenolden | | 102,000 |
| 100.0% | | 12.41 | | $6,497 | (3) | Wal-Mart |
| Lancaster | | 228,000 |
| 100.0% | | 4.68 | | $5,120 | (3) | Lowe’s, Community Aid, Sleepy’s |
Springfield (leased through 2025)(8) | | 41,000 |
| 100.0% | | 20.90 | | — | | PetSmart |
| Wilkes-Barre (461 - 499 Mundy Street) | | 204,000 |
| 91.8% | | 12.89 | | — | | Bob’s Discount Furniture, Babies “R” Us, Ross Dress for Less, Marshalls, Petco |
Wyomissing (leased through 2065)(8) | | 76,000 |
| 93.4% | | 15.86 | | — | | LA Fitness, PetSmart |
| York | | 111,000 |
| 86.3% | | 8.75 | | $4,938 | (3) | Ashley Furniture, Tractor Supply Company, Aldi |
| | | | | | | | | | |
| South Carolina: | | | | | | | | | |
Charleston (leased through 2063)(8) | | 45,000 |
| 100.0% | | 14.19 | | — | | Best Buy |
| | | | | | | | | | |
| Virginia: | | | | | | | | | |
Norfolk (leased through 2069)(8) | | 114,000 |
| 100.0% | | 7.08 | | — | | BJ’s Wholesale Club |
Tyson’s Corner (leased through 2035)(8) | | 38,000 |
| 100.0% | | 43.04 | | — | | Best Buy |
| | | | | | | | | | |
| Puerto Rico: | | | | | | | | | |
| Las Catalinas | | 355,000 |
| 93.3% | | 36.34 | | $130,000 | | Kmart, Sears (not owned) |
Montehiedra(6) | | 542,000 |
| 93.0% | | 18.32 | | $118,375 | | Kmart, The Home Depot, Marshalls, Caribbean Theatres, Tiendas Capri, Nike Factory Store |
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of March 31, 2016 | | |
| (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(7) | | Major Tenants |
| | | | | | | | | | |
| Total Shopping Centers and Malls | | 13,909,000 | 96.0% | | $16.85 (2) | | $1,239,842 | | |
| | | | | | | | | | |
| WAREHOUSES: | | | | | | | | | |
East Hanover - Five Buildings(6) | | 942,000 |
| 79.1% | | 4.71 | | — | | 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 | | 14,851,000 |
| 95.0% | | $16.21 | | $1,239,842 | | |
(1) Percent leased is expressed as a percent of total existing square feet (gross leasable area) subject to a lease.
(2) Weighted average annual rent per square foot including ground leases and executed leases for which rent has not commenced is calculated by annualizing tenant's current base rent (excluding any free rent periods), and excludes tenant reimbursements, concessions and storage rent. Excluding ground leases where the Company is the lessor, the weighted average annual rent per square foot for our retail portfolio is $19.39 per square foot.
(3) 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 March 31, 2016.
(5) The tenant has ceased operations at this location but continues to pay rent.
(6) Not included in the same-property pool for the purposes of calculating same-property NOI as of March 31, 2016.
(7) Mortgage debt balances exclude unamortized debt issuance costs.
(8) The Company is a lessee under a ground or building lease. The total square feet disclosed for the building will revert to the lessor upon lease expiration.
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY ACQUISITIONS AND DISPOSITIONS | |
| For the three months ended March 31, 2016 | | |
| | | |
| | | |
|
| | | | | | |
| 2016 Property Acquisitions: | | | | | |
| | | | | | | |
| None | | | | | | |
| | | | | | | |
| 2016 Property Dispositions: | | | | | |
| | | | | | | |
| None | | | | | | |
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS | |
| As of March 31, 2016 | | |
| (in thousands, except square footage data) | | |
| | | |
|
| | | | | | | | | | | | | |
| PROPERTY | Project GLA(2) | Estimated Gross Cost(1) | | Incurred as of 3/31/16 | Balance to Complete (Gross Cost) | Target Stabilization Year(3)(6) | Project Description |
| ACTIVE PROJECTS: | | | | | | |
| Bruckner Boulevard | 163,000 | $ | 38,400 |
| | $ | 6,400 |
| $ | 32,000 |
| 2018 | Renovation and retenanting |
| East Hanover warehouses | 942,000 | 24,000 |
| | 18,800 |
| 5,200 |
| 2017 | Renovation and retenanting |
| Montehiedra Town Center | 542,000 | 20,800 |
| | 8,700 |
| 12,100 |
| 2017 | Conversion to outlet/value hybrid mall |
Garfield(4) | 84,000 | 18,800 |
| | 2,900 |
| 15,900 |
| 2018 | Addition of Burlington Coat, Petsmart and 17,000± sf of shop space |
North Plainfield(4) | 47,500 | 8,900 |
| | 600 |
| 8,300 |
| 2018 | Addition of La-Z-Boy and 20,000± sf of shop space |
Towson(4) | 38,900 | 7,000 |
| | — |
| 7,000 |
| 2018 | Anchor recapture and releasing |
Hackensack(4) | 75,000 | 4,600 |
| | 300 |
| 4,300 |
| 2018 | Anchor retenanting (99 Ranch) |
| Walnut Creek | 31,000 | 4,400 |
| | 300 |
| 4,100 |
| 2017 | Anthropologie replacing Barnes & Noble |
Turnersville(4) | 3,500 | 2,100 |
| | 100 |
| 2,000 |
| 2018 | Replacing vacant Friendly's with Verizon store |
Glen Burnie(4) | 9,000 | 1,300 |
| | 100 |
| 1,200 |
| 2018 | New restaurant pad for Bubba's 33 |
Walnut Creek (Mt. Diablo)(4) | 7,000 | 600 |
| | — |
| 600 |
| 2017 | Z Gallerie replacing Anthropologie |
Rockaway(4) | 2,700 | 100 |
| | — |
| 100 |
| 2017 | Fast food pad (Popeyes) |
| Total | 1,945,600 | $ | 131,000 |
| (5) | $ | 38,200 |
| $ | 92,800 |
| | |
| | | | | | | | |
| COMPLETED PROJECTS PENDING TWELVE MONTH STABILIZATION: | |
Freeport(4) | 155,000 | 100 |
| | 100 |
| — |
| 2017 | Home Depot expansion |
East Hanover REI(4) | 4,500 | 500 |
| | 500 |
| — |
| 2017 | Panera Bread opened 1Q16 |
| Total | 159,500 | $ | 600 |
| | $ | 600 |
| $ | — |
| | |
| | | | | | | | |
(1) Project costs includes the allocation of internal costs such as labor, interest, and taxes. The total estimated gross cost includes $11.7 million of construction costs and expenses paid by Vornado prior to the spin-off.
(2) Project GLA is subject to change based upon build-to-suit and other tenant-driven requirements.
(3) Target Stabilization Year reflects the first full year in which the anchor(s) is paying rent. Properties may continue to be reflected in development or redevelopment until they are included in the company's same-property NOI pool, which is normally one year from rent commencement.
(4) Results from these properties are included in our same-property metrics.
(5) The estimated unleveraged yield for total active projects including those pending stabilization is approximately 13% as of March 31, 2016, based on the total estimated project costs and the incremental unleveraged NOI expected from leasing activities directly attributable to the total active projects. The incremental unleveraged NOI for active projects does not include NOI generated outside the project scope, such as the impact on future lease rollovers at the property or the impact on the long-term value of the property.
(6) Target stabilization years are estimated and are subject to change resulting from uncertainties inherent in the development process and not wholly under the Company's control.
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS | |
| As of March 31, 2016 | | |
| (in thousands, except square footage data) | | |
| | | |
|
| | | |
| PROPERTY | Potential Investment(1) | Estimated Stabilization Year(1)(4) | Project Description |
| DEVELOPMENT AND REDEVELOPMENT PIPELINE: | |
| Bergen Town Center | $120,000-$130,000 | 2020 | Expansion |
| Bergen East | $13,000-$15,000 | 2018 | Approved pads for 60,000± sf of retail |
| Kearny | $8,000-$9,000 | 2018 | 25,000± sf expansion and new pad |
| Montehiedra outparcel | $7,000-$8,000 | 2018 | 20,000± sf retail |
| East Hanover | $4,000-$5,000 | 2018 | Anchor repositioning |
| Brick | $4,000-$5,000 | 2017 | Anchor repositioning |
| Morris Plains | $3,000-$7,000 | 2018 | Anchor repositioning |
| Marlton | $3,000-$4,000 | 2018 | Pads for 5,000± sf of retail |
| West Babylon | $3,000-$4,000 | 2018 | 10,000± sf of shops on excess land |
| Huntington | $2,000-$3,000 | 2018 | Conversion of 11,000± sf of basement space into street-front retail |
| Woodbridge | $2,000-$3,000 | 2019 | Conversion to pads |
| Cherry Hill | $1,000-$2,000 | 2019 | Approved pad for 5,000± sf of retail |
| Lawnside | $1,000-$2,000 | 2019 | Pad for 6,000± sf of retail |
Multiple Pad Projects(2) | $1,000-$2,000 | 2018 | New pads |
| Rockaway | ±$1,000 | 2018 | Supermarket expansion |
| Total | $172,000-$200,000 | (3) | |
(1) Estimated stabilization year and potential investment are estimated and are subject to change resulting from uncertainties inherent in the development process and not wholly under the Company's control.
(2) Multiple pad projects include possible pad additions at the following properties: East Rutherford, Union, Totowa and Signal Hill.
(3) The estimated unleveraged yield for total pipeline projects is approximately 8% as of March 31, 2016, based on the total estimated project specific costs and the incremental unleveraged NOI expected from leasing activities directly attributable to the total pipeline projects. The incremental unleveraged NOI for pipeline projects does not include NOI generated outside the project scope, such as the impact on future lease rollovers at the property or the impact on the long-term value of the property.
(4) Estimated stabilization year reflects the first full year in which the anchor(s) is paying rent.
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEBT SUMMARY | |
| As of March 31, 2016 and December 31, 2015 | | |
| (in thousands) | | |
| | | |
|
| | | | | | | |
| | March 31, 2016 | | December 31, 2015 |
| Fixed rate debt | $ | 1,179,842 |
| | $ | 1,182,265 |
|
| Variable rate debt | 60,000 |
| | 60,000 |
|
| Total debt | $ | 1,239,842 |
| | $ | 1,242,265 |
|
| | | | |
| % Fixed rate debt | 95.2 | % | | 95.2 | % |
| % Variable rate debt | 4.8 | % | | 4.8 | % |
| Total | 100 | % | | 100 | % |
| | | | |
| | | | |
| Secured mortgage debt | $ | 1,239,842 |
| | $ | 1,242,265 |
|
| Unsecured debt | — |
| | — |
|
| Total debt | $ | 1,239,842 |
| | $ | 1,242,265 |
|
| | | | |
| % Secured mortgage debt | 100 | % | | 100 | % |
| % Unsecured mortgage debt | N/A |
| | N/A |
|
| Total | 100 | % | | 100 | % |
| | | | |
| Weighted average remaining maturity on secured mortgage debt | 5.5 years |
| | 5.8 years |
|
| | | | |
| | | | |
| Total market capitalization (see page 15) | $ | 3,970,873 |
| | |
| | | | |
| % Secured mortgage debt | 31.2 | % | | |
| % Unsecured debt | — | % | | |
| Total debt : Total market capitalization | 31.2 | % | | |
| | | | |
| | | | |
Weighted average interest rate on secured mortgage debt(1) | 4.16 | % | | 4.15 | % |
Weighted average interest rate on unsecured debt(2) | — | % | | |
| | | | |
Note: All amounts and calculations exclude unamortized debt issuance costs on mortgages payable.
(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. The line matures in February 2019 and has two six-month extension options.
|
| | |
| URBAN EDGE PROPERTIES | | |
| MORTGAGE DEBT SUMMARY | |
| As of March 31, 2016 (unaudited) and December 31, 2015 | | |
| (dollars in thousands) | | |
| | | |
|
| | | | | | | | | | |
| Debt Instrument | Maturity Date | Rate | March 31, 2016 | December 31, 2015 | Percent of Debt at March 31, 2016 |
| North Bergen | 1/9/18 | 4.59% | $ | 74,814 |
| $ | 75,000 |
| 6.0 | % |
Englewood (3) | 10/1/18 | 6.22% | 11,537 |
| 11,537 |
| 0.9 | % |
40 property securitization - Fixed(4) | 9/10/20 | 4.34% | 529,929 |
| 533,459 |
| 42.7 | % |
40 property securitization - Variable (1)(4) | 9/10/20 | 2.36% | 60,000 |
| 60,000 |
| 4.8 | % |
Montehiedra, Puerto Rico (senior loan)(2)(6) | 7/6/21 | 5.33% | 88,375 |
| 88,676 |
| 7.1 | % |
Montehiedra, Puerto Rico (junior loan)(2) | 7/6/21 | 3.00% | 30,000 |
| 30,000 |
| 2.4 | % |
| Bergen Town Center | 4/8/23 | 3.56% | 300,000 |
| 300,000 |
| 24.2 | % |
| Las Catalinas | 8/6/24 | 4.43% | 130,000 |
| 130,000 |
| 10.5 | % |
Mt Kisco -Target(5) | 11/15/34 | 6.40% | 15,187 |
| 15,285 |
| 1.4 | % |
| Total mortgage debt | | 4.16% | $ | 1,239,842 |
| $ | 1,243,957 |
| 100 | % |
| Unamortized debt issuance costs | | | (9,493 | ) | (9,974 | ) | |
| Total mortgage debt, net | | | $ | 1,230,349 |
| $ | 1,233,983 |
| |
| | | | | | |
|
| | | | | | | | | | | | | | | |
| DEBT MATURITY SCHEDULE | | | | |
| | | | | | | |
| Year | Scheduled Amortization | Balloon Payments | (Discount) Scheduled Amortization | Total | Weighted Average Interest rate at maturity | Percent of debt maturing |
2016(7) | $ | 12,352 |
| $ | — |
| $ | (45 | ) | $ | 12,307 |
| 4.5% | 1.0 | % |
| 2017 | 16,845 |
| — |
| (61 | ) | 16,784 |
| 4.4% | 1.4 | % |
| 2018 | 16,218 |
| 83,551 |
| (61 | ) | 99,708 |
| 4.7% | 8.0 | % |
| 2019 | 17,381 |
| — |
| (61 | ) | 17,320 |
| 4.4% | 1.4 | % |
| 2020 | 13,787 |
| 521,387 |
| (61 | ) | 535,113 |
| 4.1% | 43.2 | % |
| 2021 | 2,801 |
| 118,375 |
| (61 | ) | 121,115 |
| 4.7% | 9.8 | % |
| 2022 | 2,942 |
| — |
| (61 | ) | 2,881 |
| 4.9% | 0.2 | % |
| 2023 | 3,091 |
| 300,000 |
| (61 | ) | 303,030 |
| 3.6% | 24.4 | % |
| 2024 | 2,201 |
| 119,050 |
| (61 | ) | 121,190 |
| 4.4% | 9.8 | % |
| Thereafter | 10,992 |
| — |
| (598 | ) | 10,394 |
| 6.4% | 0.8 | % |
| Total | $ | 98,610 |
| $ | 1,142,363 |
| $ | (1,131 | ) | $ | 1,239,842 |
| 4.2% | 100 | % |
| | Unamortized debt issuance costs | | (9,493 | ) | | |
| | Mortgage debt, net | | $ | 1,230,349 |
| | |
(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 $120.0 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 $90.0 million position with interest at 5.33% to be paid currently, and a junior $30.0 million position with interest accruing at 3.0%. As part of the planned redevelopment of the property, the Company is committed to fund $20.0 million for leasing and building capital expenditures of which $10.1 million has been funded as of March 31, 2016.
(3) 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 March 31, 2016 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.
(4) See Property Status Report on page 21 for each property that comprises the 40 property securitization.
(5) The mortgage payable balance on the loan secured by Mt. Kisco -Target includes $1.1 million of unamortized debt discount as of March 31, 2016 and December 31, 2015, respectively. The effective interest rate including amortization of the debt discount is 7.25% as of March 31, 2016.
(6) The carrying value of the senior loan secured by Montehiedra was presented net of unamortized fees of $1.7 million as of December 31, 2015. The net unamortized fees of $1.7 million were revised to be presented with the unamortized debt issuance costs.
(7) Remainder of 2016.
