Exhibit 99.2
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| URBAN EDGE PROPERTIES |
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| SUPPLEMENTAL DISCLOSURE |
| PACKAGE |
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| June 30, 2017 |
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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 |
| June 30, 2017 |
| (unaudited) |
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| TABLE OF CONTENTS |
| | Page |
| Press Release | |
| Second Quarter 2017 Earnings Press Release | 1 |
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| Overview | |
| Summary Financial Results and Ratios | 10 |
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| Consolidated Financial Statements | |
| Consolidated Balance Sheets | 11 |
| Consolidated 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 (EBITDA) | 14 |
| 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 Schedules | 20 |
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| Property Data | |
| Property Status Report | 22 |
| 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 Debt 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 Second Quarter 2017 Results
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NEW YORK, NY, August 2, 2017 - Urban Edge Properties (NYSE:UE) (the "Company") today announced its results for the three and six months ended June 30, 2017.
Financial Results(1)(2)
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| • | Generated net income of $14.9 million, or $0.13 per diluted share, for the quarter and $69.7 million, or $0.63 per diluted share, for the six months ended June 30, 2017. |
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| • | Generated Funds from Operations applicable to diluted common shareholders ("FFO") of $38.7 million, or $0.34 per share, for the quarter and $112.1 million, or $1.01 per share, for the six months ended June 30, 2017. |
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| • | Generated FFO as Adjusted of $0.33 per share for the quarter and $0.66 per share for the six months ended June 30, 2017, an increase of 6.5% per share compared to both the second quarter of 2016 and the six months ended June 30, 2016. |
Operating Results(1)
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| • | Increased same-property cash Net Operating Income (“NOI”) by 5.0% compared to the second quarter of 2016 and by 5.3% compared to the six months ended June 30, 2016, primarily due to rent commencements at Garfield Commons, Kearny Commons and Bergen Town Center and higher recoveries. |
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| • | Increased same-property cash NOI including properties in redevelopment by 5.6% compared to the second quarter of 2016 and by 6.1% compared to the six months ended June 30, 2016. Rent commencements at East Hanover warehouses, Walnut Creek and Montehiedra contributed to this growth. |
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| • | Reported a decline in consolidated retail portfolio occupancy of 30 basis points to 95.9% compared to June 30, 2016 and 130 basis points compared to March 31, 2017, primarily as a result of acquiring centers with lower occupancy than our existing portfolio. |
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| • | Increased same-property retail portfolio occupancy by 90 basis points to 98.2% compared to June 30, 2016 and reported a decrease of 10 basis points compared to March 31, 2017. |
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| • | Executed 31 new leases, renewals and options totaling 373,000 square feet (sf) during the quarter. Same-space leases totaled 338,000 sf and generated average rent spreads of 1.7% on a GAAP basis and (2.7)% on a cash basis. |
Acquisition and Disposition Activity
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| • | Acquired seven retail assets, predominantly in the New York metro area, totaling $325 million during the quarter. Funding for these acquisitions was comprised of approximately $122 million in UE operating partnership units valued at $27.02 per unit (4.5 million units), approximately $33 million of assumed debt, the issuance of approximately $126 million in non-recourse, mortgage loans and approximately $44 million in cash. |
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| • | During the six months ended June 30, 2017, the Company acquired a total of nine retail assets as follows: |
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| Date Acquired | | Property | | Location | | GLA SF | | Occupancy | | Purchase Price |
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| 1/17/2017 | | Shops at Bruckner | | Bronx, NY | | 114,000 | | 100% | | $ | 32,000 |
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| 2/2/2017 | | Hudson Mall | | Jersey City, NJ | | 383,000 | | 97% | | 43,700 |
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| 5/24/2017 | | Yonkers Gateway Center (2 transactions)(3) | | Yonkers, NY | | 437,000 | | 88% | | 152,388 |
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| 5/24/2017 | | The Plaza at Cherry Hill | | Cherry Hill, NJ | | 413,000 | | 74% | | 51,348 |
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| 5/24/2017 | | Manchester Plaza | | Manchester, MO | | 131,000 | | 89% | | 19,794 |
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| 5/24/2017 | | Millburn Gateway Center | | Millburn, NJ | | 102,000 | | 97% | | 43,748 |
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| 5/24/2017 | | 21 E Broad St/One Lincoln Plaza | | Westfield, NJ | | 22,000 | | 100% | | 9,670 |
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| 5/25/2017 | | The Plaza at Woodbridge | | Woodbridge, NJ | | 411,000 | | 81% | | 99,752 |
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| | | | | Total | 2,013,000 | | 87% | | $ | 452,400 |
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| • | Completed the sale of a 32,000 sf vacant building located in Eatontown, NJ for $5.0 million on June 30, 2017. |
Development, Redevelopment and Anchor Repositioning Activity
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| • | Advanced thirteen active projects. Estimated gross cost for active and completed projects totals $203.4 million, a $10.3 million increase over the first quarter of 2017. Increased project costs are primarily offset by increased revenue from new tenant leases. These projects are expected to generate a 10% return. Of the $203.4 million, $96.8 million remains to be funded. |
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| • | Sixteen additional pipeline projects are expected to earn 9% on the projected investment of $69-86 million. |
Financing Activity
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| • | On May 10, 2017, issued 7.7 million common shares through an underwritten public offering generating cash proceeds of $193.5 million. The Company intends to use the net proceeds of this offering for development and redevelopment projects and for general corporate purposes including potential acquisitions that may be identified in the future. |
Balance Sheet Highlights at June 30, 2017(1)(4)
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| • | Total market capitalization of approximately $4.3 billion comprising 120.4 million, fully diluted common shares valued at $2.9 billion and $1.4 billion of debt. |
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| • | Net debt to total market capitalization of 27%. |
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| • | Net debt to Adjusted Earnings before interest, tax, depreciation and amortization ("EBITDA") of 5.6x. |
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| • | $248 million of cash and cash equivalents and no amounts drawn on the $600 million revolving credit facility. |
(1) Refer to "Non-GAAP Financial Measures" and "Operating Metrics" for definitions and additional detail.
(2) Refer to page 5 for a reconciliation of FFO to FFO as Adjusted for the three and six months ended June 30, 2017.
(3) The acquisition of Yonkers Gateway Center closed in two transactions. On January 4, 2017, the Company acquired fee and leasehold interests for $51.7 million. On May 24, 2017, the Company acquired the remaining fee and leasehold interests not previously acquired for $100.7 million.
(4) The tables accompanying this press release provide the calculation of fully diluted common shares and a reconciliation of net income to EBITDA and Adjusted EBITDA.
Non-GAAP Financial Measures
The Company uses certain non-GAAP performance measures, in addition to the primary GAAP presentations, as we believe these measures improve the understanding of the Company's operational results. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the investing public, and thus such reported measures are subject to change. The Company's non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results. The following non-GAAP measures are commonly used by the Company and investing public to understand and evaluate our operating results and performance:
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| • | FFO: The Company believes FFO 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. FFO, as defined by the National Association of Real Estate Investment Trusts ("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 believes that financial analysts, investors and stockholders are better served by the presentation of comparable period operating results generated from FFO primarily because it excludes the assumption that the value of real estate assets diminish predictably. FFO does not represent cash flows from operating activities in accordance with GAAP, should not be considered an alternative to net income as an indication of our performance, and is not indicative of cash flow as a measure of liquidity or our ability to make cash distributions. |
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| • | FFO as Adjusted: The Company provides disclosure of FFO as Adjusted because it believes it is a useful supplemental measure of its core operating performance that facilitates comparability of historical financial periods. FFO as Adjusted is calculated by making certain adjustments to FFO to account for items the Company does not believe are representative of ongoing core operating results including transaction costs associated with acquisition and disposition activity and non-comparable revenues and expenses. The Company's method of calculating FFO as Adjusted may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. |
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| • | Cash NOI: The Company uses cash NOI internally to make investment and capital allocation decisions and to compare the unlevered performance of our properties to our peers. The Company believes cash NOI is useful to investors as a performance measure because, when compared across periods, cash 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. The Company calculates cash NOI using net 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. |
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| • | Same-property Cash NOI: The Company provides disclosure of cash 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 totaling 76 properties for the three and six months ended June 30, 2017 and 2016. Information provided on a same-property basis excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area ("GLA") is taken out of service and also excludes properties acquired, sold, under contract to be sold, or that are in the foreclosure process during the periods being compared. As such, same-property cash NOI assists in eliminating disparities in net income due to the development, redevelopment, acquisition or disposition of properties during the periods presented, and thus provides a more consistent performance measure for the comparison of the operating performance of the Company's properties. While there is judgment surrounding changes in designations, a property is removed from the same-property pool when it is designated as a redevelopment property because it is undergoing significant renovation or retenanting pursuant to a formal plan that is expected to have a significant impact on its operating income. A development or redevelopment property is moved back to the same-property pool once a substantial portion of the NOI growth expected from the development or redevelopment is reflected in both the current and comparable prior year period, generally one year after at least 80% of the expected NOI from the project is realized on a cash basis for a full quarter. 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 disclosure of cash NOI on a same-property basis adjusted to include redevelopment properties. |
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| • | EBITDA and Adjusted EBITDA: EBITDA and Adjusted EBITDA are supplemental, non-GAAP measures utilized by us in various financial ratios. EBITDA and Adjusted EBITDA are presented to assist investors in the evaluation |
of REITs, 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 and because they approximate key performance measures in our debt covenants. Accordingly, the Company believes that the use of EBITDA and Adjusted EBITDA, as opposed to income before income taxes in various ratios, provides meaningful performance measures related to the Company's ability to meet various coverage tests for the stated periods. The Company also presents the ratio of net debt (net of cash) to annualized Adjusted EBITDA, which it believes is useful to investors as a supplemental measure in evaluating the Company's balance sheet leverage.
The Company believes net income is the most directly comparable GAAP financial measure to the non-GAAP performance measures outlined above. Reconciliations of these measures to net income have been provided in the tables accompanying this press release.
Operating Metrics
The Company presents certain operating metrics related to our properties including occupancy, leasing activity and rental rates. Operating metrics are used by the Company and are useful to investors in facilitating an understanding of the operational performance for our properties.
Occupancy metrics represent the percentage of occupied gross leasable area based on executed leases (including properties in development and redevelopment) and includes leases signed, but for which rent has not yet commenced. Same-property retail portfolio occupancy includes shopping centers and malls that have been owned and operated for the entirety of the reporting periods being compared totaling 76 properties for the three and six months ended June 30, 2017 and 2016. Occupancy metrics presented for the Company's same-property retail portfolio 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 within the past 12 months, properties sold, under contract to be sold, or that are in the foreclosure process during the periods being compared.
Executed new leases, renewals and exercised options are presented on a same-space basis. Same-space leases represent those leases signed on spaces for which there was a previous lease with comparable gross leasable area.
Reconciliation of Net Income to FFO and FFO as Adjusted
The following table reflects the reconciliation of net income to FFO and FFO as Adjusted for the three and six months ended June 30, 2017. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of FFO and FFO as Adjusted.
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| | Three Months Ended
June 30, 2017 | | Six Months Ended
June 30, 2017 |
| | (in thousands) | | (per share) | | (in thousands) | | (per share) |
| Net income | $ | 14,920 |
| | $ | 0.13 |
| | $ | 69,655 |
| | $ | 0.63 |
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| Less (net income) attributable to noncontrolling interests in: | | | | | | | |
| Operating partnership | (1,326 | ) | | (0.01 | ) | | (5,464 | ) | | (0.05 | ) |
| Consolidated subsidiaries | (11 | ) | | — |
| | (22 | ) | | — |
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| Net income attributable to common shareholders | 13,583 |
| | 0.12 |
| | 64,169 |
| | 0.58 |
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| Adjustments: | | | | | | | |
| Rental property depreciation and amortization | 23,452 |
| | 0.21 |
| | 39,031 |
| | 0.35 |
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| Real estate impairment loss | 303 |
| | — |
| | 3,467 |
| | 0.03 |
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| Limited partnership interests in operating partnership | 1,326 |
| | 0.01 |
| | 5,464 |
| | 0.05 |
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FFO applicable to diluted common shareholders(1) | 38,664 |
| | 0.34 |
| | 112,131 |
| | 1.01 |
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| Transaction costs | 132 |
| | — |
| | 183 |
| | — |
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| Loss on extinguishment of debt | — |
| | — |
| | 1,274 |
| | 0.01 |
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| Tenant bankruptcy settlement income | (486 | ) | | (0.01 | ) | | (513 | ) | | (0.01 | ) |
Income from acquired leasehold interest(2) | — |
| | — |
| | (39,215 | ) | | (0.35 | ) |
FFO as Adjusted applicable to diluted common shareholders(1) | $ | 38,310 |
| | $ | 0.33 |
| | $ | 73,860 |
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| $ | 0.66 |
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Weighted average diluted common shares - FFO(1) | 114,433 |
| | | | 111,224 |
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(1) Refer to the table below for reconciliation of weighted average diluted shares used in EPS calculations and weighted average diluted common shares used in FFO per share calculations.
(2) Income from acquired leasehold interest at the Shops at Bruckner includes the write-off of unamortized intangible liability related to the below-market ground lease acquired and existing straight-line receivable balance.
The following table reflects the reconciliation of weighted average diluted shares used in EPS calculations and weighted average diluted common shares used in FFO per share calculations.
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| (in thousands) | Three Months Ended June 30, 2017 | | Six Months Ended
June 30, 2017 |
| Weighted average diluted shares used to calculate EPS | 104,260 |
| | 111,224 |
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Assumed conversion of OP and LTIP Units to common stock(1) | 10,173 |
| | — |
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Weighted average diluted common shares used to calculate FFO per share | 114,433 |
| | 111,224 |
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(1) Operating Partnership ("OP") and Long-Term Incentive Plan ("LTIP") Units are excluded from the calculation of earnings per diluted share for the three months ended June 30, 2017, because their inclusion is anti-dilutive and included for the six months ended June 30, 2017, because their inclusion is dilutive. FFO includes earnings allocated to unitholders as the inclusion of these units is dilutive to FFO per share.
Reconciliation of Net Income to Cash NOI and Same-Property Cash NOI
The following table reflects the reconciliation of net income to cash NOI, same-property cash NOI and same-property cash NOI including properties in redevelopment for the three and six months ended June 30, 2017 and 2016. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of cash NOI and same-property cash NOI.
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| | Three Months Ended June 30, 2017 | | Six Months Ended June 30, 2017 |
| (Amounts in thousands) | 2017 | | 2016 | | 2017 | | 2016 |
| Net income | $ | 14,920 |
| | $ | 36,071 |
| | $ | 69,655 |
| | $ | 55,859 |
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| Add: income tax expense (benefit) | 304 |
| | (306 | ) | | 624 |
| | 30 |
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| Income before income taxes | 15,224 |
| | 35,765 |
| | 70,279 |
| | 55,889 |
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| Interest income | (336 | ) | | (177 | ) | | (463 | ) | | (344 | ) |
| Gain on sale of real estate | — |
| | (15,618 | ) | | — |
| | (15,618 | ) |
| Interest and debt expense | 13,627 |
| | 12,820 |
| | 26,742 |
| | 26,249 |
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| Loss on extinguishment of debt | — |
| | — |
| | 1,274 |
| | — |
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| Operating income | 28,515 |
| | 32,790 |
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| 97,832 |
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| 66,176 |
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| Depreciation and amortization | 23,701 |
| | 13,558 |
| | 39,529 |
| | 27,473 |
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| Real estate impairment loss | 303 |
| | — |
| | 3,467 |
| | — |
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| General and administrative expense | 7,709 |
| | 7,535 |
| | 15,790 |
| | 14,255 |
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| Transaction costs | 132 |
| | 34 |
| | 183 |
| | 84 |
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| NOI | 60,360 |
| | 53,917 |
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| 156,801 |
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| 107,988 |
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| Less: non-cash revenue and expenses | (1,452 | ) | | (1,454 | ) | | (42,253 | ) | | (3,265 | ) |
Cash NOI(1) | 58,908 |
| | 52,463 |
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| 114,548 |
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| 104,723 |
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| Adjustments: | | | | | | | |
Cash NOI related to properties being redeveloped(1) | (5,414 | ) | | (4,851 | ) | | (10,868 | ) | | (9,525 | ) |
Cash NOI related to properties acquired, disposed, or in foreclosure(1) | (4,050 | ) | | (477 | ) | | (5,628 | ) | | (970 | ) |
| Management and development fee income from non-owned properties | (351 | ) | | (526 | ) | | (830 | ) | | (981 | ) |
| Tenant bankruptcy settlement income | (486 | ) | | (340 | ) | | (513 | ) | | (1,490 | ) |
Other(2) | 20 |
| | 36 |
| | 12 |
| | 84 |
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| Subtotal adjustments | (10,281 | ) | | (6,158 | ) |
| (17,827 | ) |
| (12,882 | ) |
| Same-property cash NOI | $ | 48,627 |
| | $ | 46,305 |
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| $ | 96,721 |
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| $ | 91,841 |
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| Adjustments: |
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| Cash NOI related to properties being redeveloped | 5,414 |
| | 4,851 |
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| 10,868 |
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| 9,525 |
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| Same-property cash NOI including properties in redevelopment | $ | 54,041 |
| | $ | 51,156 |
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| $ | 107,589 |
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| $ | 101,366 |
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(1) Cash NOI is calculated as total property revenues less property operating expenses, excluding the net effects of non-cash rental income and non-cash ground rent expense.
(2) Other adjustments include revenue and expense items attributable to non-same properties and corporate activities.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
The following table reflects the reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2017 and 2016. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of EBITDA and Adjusted EBITDA.
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| | Three Months Ended June 30, 2017 | | Six Months Ended June 30, 2017 |
| (Amounts in thousands) | 2017 | | 2016 | | 2017 | | 2016 |
| Net income | $ | 14,920 |
| | $ | 36,071 |
| | $ | 69,655 |
| | $ | 55,859 |
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| Depreciation and amortization | 23,701 |
| | 13,558 |
| | 39,529 |
| | 27,473 |
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| Interest and debt expense | 13,627 |
| | 12,820 |
| | 26,742 |
| | 26,249 |
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| Income tax expense (benefit) | 304 |
| | (306 | ) | | 624 |
| | 30 |
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| EBITDA | 52,552 |
| | 62,143 |
| | 136,550 |
| | 109,611 |
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| Adjustments for Adjusted EBITDA: | | | | | | | |
| Real estate impairment loss | 303 |
| | — |
| | 3,467 |
| | — |
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| Transaction costs | 132 |
| | 34 |
| | 183 |
| | 84 |
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| Loss on extinguishment of debt | — |
| | — |
| | 1,274 |
| | — |
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Tenant bankruptcy settlement income
| (486 | ) | | (340 | ) | | (513 | ) | | (1,490 | ) |
| Gain on sale of real estate | — |
| | (15,618 | ) | | — |
| | (15,618 | ) |
| Income from acquired leasehold interest | — |
| | — |
| | (39,215 | ) | | — |
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| Adjusted EBITDA | $ | 52,501 |
| | $ | 46,219 |
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| $ | 101,746 |
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| $ | 92,587 |
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The following table reflects the Company's fully diluted common shares outstanding which is the total number of shares that would be outstanding assuming all possible conversions. Fully diluted common shares outstanding are utilized to calculate our equity market capitalization to allow investors the ability to assess our market value. The sum of the total equity market capitalization and total debt, as calculated in accordance with GAAP, represents the Company's total market capitalization.
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| | June 30, 2017 |
| Common shares outstanding | 107,564,687 |
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| OP and LTIP units (dilutive) | 12,830,232 |
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| Fully diluted common shares | 120,394,919 |
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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, 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 90 properties totaling 16.6 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 pursue, finance and complete acquisition opportunities, 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 and acquisitions. 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, 2016 and the other documents filed by the Company with the Securities and Exchange Commission.
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 June 30, 2017 | | | |
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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 8 of this Supplemental Disclosure Package.
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| URBAN EDGE PROPERTIES | | |
| SUMMARY FINANCIAL RESULTS AND RATIOS | | |
| For the three and six months ended June 30, 2017 (unaudited) | |
| (in thousands, except per share, sf, rent psf and financial ratio data) | | |
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| | | Three months ended | | Six months ended |
| | | June 30, 2017 | | June 30, 2017 |
| Summary Financial Results | | | | |
| Total revenue | | $ | 89,501 |
| | $ | 215,565 |
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General & administrative expenses (G&A)(10) | | $ | 7,709 |
| | $ | 15,790 |
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Adjusted EBITDA(7) | | $ | 52,501 |
| | $ | 101,746 |
|
| Net income attributable to common shareholders | | $ | 13,583 |
| | $ | 64,169 |
|
| Earnings per diluted share | | $ | 0.13 |
| | $ | 0.63 |
|
| Funds from operations (FFO) | | $ | 38,664 |
| | $ | 112,131 |
|
| FFO per diluted common share | | $ | 0.34 |
| | $ | 1.01 |
|
| FFO as Adjusted | | $ | 38,310 |
| | $ | 73,860 |
|
| FFO as Adjusted per diluted common share | | $ | 0.33 |
| | $ | 0.66 |
|
| Total dividends paid per share | | $ | 0.22 |
| | $ | 0.44 |
|
| Stock closing price low-high range (NYSE) | | $23.44 to $27.65 |
| | $23.44 to $28.85 |
|
Weighted average diluted shares used in EPS computations(1) | | 104,260 |
| | 111,224 |
|
Weighted average diluted common shares used in FFO computations(1) | | 114,433 |
| | 111,224 |
|
| | | | | |
| Summary Property, Operating and Financial Data | | | | |
| # of Total properties / # of Retail properties | | 90 / 89 |
| | |
Gross leasable area (GLA) sf - retail portfolio(3)(5) | | 15,702,000 |
| | |
Weighted average annual rent psf - retail portfolio(3)(5) | | $ | 17.25 |
| | |
| Consolidated occupancy at end of period | | 95.7 | % | | |
Consolidated retail portfolio occupancy at end of period(5) | | 95.9 | % | | |
Same-property retail portfolio occupancy at end of period(5)(2) | | 98.2 | % | | |
Same-property retail portfolio physical occupancy at end of period(4)(5)(2) | | 97.4 | % | | |
Same-property cash NOI growth(2) | | 5.0 | % | | 5.3 | % |
| Same-property cash NOI growth, including redevelopment properties | | 5.6 | % | | 6.1 | % |
| Cash NOI margin - total portfolio | | 67.0 | % | | 66.2 | % |
| Expense recovery ratio - total portfolio | | 99.3 | % | | 98.4 | % |
New, renewal and option rent spread - cash basis(8) | | (2.7 | )% | | (1.8 | )% |
New, renewal and option rent spread - GAAP basis(9) | | 1.7 | % | | 2.8 | % |
Net debt to total market capitalization(6) | | 27.4 | % | | 27.4 | % |
Net debt to Adjusted EBITDA(6) | | 5.6 | x | | 5.8 | x |
Adjusted EBITDA to interest expense(7) | | 4.0 | x | | 4.0 | x |
Adjusted EBITDA to fixed charges(7) | | 3.0 | x | | 3.0 | x |
| | | | | |
(1) Weighted average diluted common shares used to calculate FFO per share and FFO as Adjusted per share for the periods presented include OP and LTIP Units, which are excluded from the calculation of earnings per diluted share for the quarter ended June 30, 2017, because their inclusion is anti-dilutive and included for the six months ended June 30, 2017, because their inclusion is dilutive. FFO includes earnings allocated to unit holders as the inclusion of these units is dilutive to FFO per share.
(2) The same-property pool for both cash 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, under contract to be 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 $16.57.
(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 16.
(7) See computation on page 14.
(8) Rents have not been calculated on a straight-line basis. Previous/expiring rent is that as of time of expiration and includes any percentage rent paid as well. New rent is that which is paid at commencement.
(9) Rents are calculated on a straight-line ("GAAP") basis. See computation on page 19.
(10) Includes $40 thousand and $0.5 million of severance expense incurred in the three and six months ended June 30, 2017, respectively.
|
| | |
| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED BALANCE SHEETS | | |
| As of June 30, 2017 (unaudited) and December 31, 2016 | | |
| (in thousands, except share and per share amounts) | | |
| | | |
|
| | | | | | | |
| | June 30, | | December 31, |
| | 2017 | | 2016 |
| ASSETS | | | |
|
| Real estate, at cost: | |
| | |
|
| Land | $ | 522,098 |
| | $ | 384,217 |
|
| Buildings and improvements | 1,992,386 |
| | 1,650,054 |
|
| Construction in progress | 123,009 |
| | 99,236 |
|
| Furniture, fixtures and equipment | 5,591 |
| | 4,993 |
|
| Total | 2,643,084 |
| | 2,138,500 |
|
| Accumulated depreciation and amortization | (568,980 | ) | | (541,077 | ) |
| Real estate, net | 2,074,104 |
| | 1,597,423 |
|
| Cash and cash equivalents | 248,407 |
| | 131,654 |
|
| Restricted cash | 14,422 |
| | 8,532 |
|
| Tenant and other receivables, net of allowance for doubtful accounts of $2,947 and $2,332, respectively | 13,299 |
| | 9,340 |
|
| Receivable arising from the straight-lining of rents, net of allowance for doubtful accounts of $324 and $261, respectively | 85,737 |
| | 87,695 |
|
| Identified intangible assets, net of accumulated amortization of $26,140 and $22,361, respectively | 94,964 |
| | 30,875 |
|
| Deferred leasing costs, net of accumulated amortization of $14,910 and $13,909, respectively | 19,771 |
| | 19,241 |
|
| Deferred financing costs, net of accumulated amortization of $1,228 and $726, respectively | 3,755 |
| | 1,936 |
|
| Prepaid expenses and other assets | 9,245 |
| | 17,442 |
|
| Total assets | $ | 2,563,704 |
| | $ | 1,904,138 |
|
| | | | |
| LIABILITIES AND EQUITY | |
| | |
|
| Liabilities: | | | |
| Mortgages payable, net | $ | 1,412,397 |
| | $ | 1,197,513 |
|
| Identified intangible liabilities, net of accumulated amortization of $60,937 and $72,528, respectively | 187,223 |
| | 146,991 |
|
| Accounts payable and accrued expenses | 63,388 |
| | 48,842 |
|
| Other liabilities | 16,627 |
| | 14,675 |
|
| Total liabilities | 1,679,635 |
| | 1,408,021 |
|
| Commitments and contingencies | | | |
| Shareholders’ equity: | | | |
Common shares: $0.01 par value; 500,000,000 shares authorized and 107,564,687 and 99,754,900 shares issued and outstanding, respectively
| 1,075 |
| | 997 |
|
| Additional paid-in capital | 683,889 |
| | 488,375 |
|
| Accumulated deficit | (10,479 | ) | | (29,066 | ) |
| Noncontrolling interests: | | | |
| Redeemable noncontrolling interests | 209,202 |
| | 35,451 |
|
| Noncontrolling interest in consolidated subsidiaries | 382 |
| | 360 |
|
| Total equity | 884,069 |
| | 496,117 |
|
| Total liabilities and equity | $ | 2,563,704 |
| | $ | 1,904,138 |
|
|
| | |
| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED STATEMENTS OF INCOME | | |
| For the three and six months ended June 30, 2017 and 2016 (unaudited) | |
| (in thousands, except share and per share amounts) | | |
| | | |
|
| | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2017 | | 2016 | | 2017 | | 2016 |
| REVENUE | | | | | | | |
| Property rentals | $ | 64,708 |
| | $ | 58,683 |
| | $ | 127,206 |
| | $ | 117,612 |
|
| Tenant expense reimbursements | 23,881 |
| | 19,879 |
| | 47,652 |
| | 42,386 |
|
| Income from acquired leasehold interest | — |
| | — |
| | 39,215 |
| | — |
|
| Management and development fees | 351 |
| | 526 |
| | 830 |
| | 981 |
|
| Other income | 561 |
| | 369 |
| | 662 |
| | 1,546 |
|
| Total revenue | 89,501 |
| | 79,457 |
| | 215,565 |
| | 162,525 |
|
| EXPENSES | | | | | | | |
| Depreciation and amortization | 23,701 |
| | 13,558 |
| | 39,529 |
| | 27,473 |
|
| Real estate taxes | 14,711 |
| | 12,723 |
| | 28,103 |
| | 25,972 |
|
| Property operating | 11,088 |
| | 9,840 |
| | 24,456 |
| | 22,699 |
|
| General and administrative | 7,709 |
| | 7,535 |
| | 15,790 |
| | 14,255 |
|
| Real estate impairment loss | 303 |
| | — |
| | 3,467 |
| | — |
|
| Ground rent | 2,436 |
| | 2,483 |
| | 5,106 |
| | 5,021 |
|
| Transaction costs | 132 |
| | 34 |
| | 183 |
| | 84 |
|
| Provision for doubtful accounts | 906 |
| | 494 |
| | 1,099 |
| | 845 |
|
| Total expenses | 60,986 |
| | 46,667 |
| | 117,733 |
| | 96,349 |
|
| Operating income | 28,515 |
| | 32,790 |
| | 97,832 |
| | 66,176 |
|
| Gain on sale of real estate | — |
| | 15,618 |
| | — |
| | 15,618 |
|
| Interest income | 336 |
| | 177 |
| | 463 |
| | 344 |
|
| Interest and debt expense | (13,627 | ) | | (12,820 | ) | | (26,742 | ) | | (26,249 | ) |
| Loss on extinguishment of debt | — |
| | — |
| | (1,274 | ) | | — |
|
| Income before income taxes | 15,224 |
| | 35,765 |
| | 70,279 |
| | 55,889 |
|
| Income tax benefit (expense) | (304 | ) | | 306 |
| | (624 | ) | | (30 | ) |
| Net income | 14,920 |
| | 36,071 |
| | 69,655 |
| | 55,859 |
|
| Less (net income) loss attributable to noncontrolling interests in: | | | | | | | |
| Operating partnership | (1,326 | ) | | (2,201 | ) | | (5,464 | ) | | (3,355 | ) |
| Consolidated subsidiaries | (11 | ) | | (2 | ) | | (22 | ) | | 2 |
|
| Net income attributable to common shareholders | $ | 13,583 |
| | $ | 33,868 |
| | $ | 64,169 |
| | $ | 52,506 |
|
| | | | | | | | |
| Earnings per common share - Basic: | $ | 0.13 |
| | $ | 0.34 |
| | $ | 0.63 |
| | $ | 0.53 |
|
| Earnings per common share - Diluted: | $ | 0.13 |
| | $ | 0.34 |
| | $ | 0.63 |
| | $ | 0.53 |
|
| Weighted average shares outstanding - Basic | 104,063 |
| | 99,274 |
| | 101,863 |
| | 99,270 |
|
| Weighted average shares outstanding - Diluted | 104,260 |
| | 99,668 |
| | 111,224 |
| | 99,592 |
|
|
| | |
| URBAN EDGE PROPERTIES | | |
| SUPPLEMENTAL SCHEDULE OF NET OPERATING INCOME | | |
| For the three and six months ended June 30, 2017 and 2016 | |
| (in thousands) | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Percent Change | | Six Months Ended June 30, | | Percent Change |
| | 2017 | | 2016 | | | 2017 | | 2016 | |
Total cash NOI(1) | | | | | | | | | | | |
| Total revenue | $87,326 | | $76,968 | | 13.5% | | $171,676 | | $157,379 | | 9.1% |
| Total property operating expenses | (28,843) | | (25,061) | | 15.1% | | (58,107) | | (53,693) | | 8.2% |
| Cash NOI - total portfolio | $ | 58,483 |
| | $ | 51,907 |
| | 12.7% | | $ | 113,569 |
| | $ | 103,686 |
| | 9.5% |
| | | | | | | | | | | | |
| NOI margin (NOI / Total revenue) | 67.0 | % | | 67.4 | % | | | | 66.2 | % | | 65.9 | % | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Same-property cash NOI(2) | | | | | | | | | | | |
| Property rentals | $ | 52,192 |
| | $ | 50,664 |
| | | | $ | 104,067 |
| | $ | 101,038 |
| | |
| Tenant expense reimbursements | 20,562 |
| | 17,966 |
| | | | 41,948 |
| | 38,442 |
| | |
| Percentage rent | 31 |
| | 48 |
| | | | 416 |
| | 307 |
| | |
| Total revenue | 72,785 |
| | 68,678 |
| | 6.0% | | 146,431 |
| | 139,787 |
| | 4.8% |
| Real estate taxes | (12,670 | ) | | (11,759 | ) | | | | (24,755 | ) | | (23,889 | ) | | |
| Property operating | (8,568 | ) | | (8,251 | ) | | | | (19,703 | ) | | (19,212 | ) | | |
| Ground rent | (2,253 | ) | | (2,193 | ) | | | | (4,500 | ) | | (4,399 | ) | | |
| Provision for doubtful accounts | (667 | ) | | (170 | ) | | | | (752 | ) | | (446 | ) | | |
| Total property operating expenses | (24,158 | ) | | (22,373 | ) | | 8.0% | | (49,710 | ) | | (47,946 | ) | | 3.7% |
Same-property cash NOI(3) | $ | 48,627 |
| | $ | 46,305 |
| | 5.0% | | $ | 96,721 |
| | $ | 91,841 |
| | 5.3% |
| | | | | | | | | | | | |
| Cash NOI related to properties being redeveloped | $ | 5,414 |
| | $ | 4,851 |
| | | | $ | 10,868 |
| | $ | 9,525 |
| | |
Same-property cash NOI including properties in redevelopment | $ | 54,041 |
| | $ | 51,156 |
| | 5.6% | | $ | 107,589 |
| | $ | 101,366 |
| | 6.1% |
| | | | | | | | | | | | |
Same-property physical occupancy(3) | 97.4 | % | | 96.4 | % | | | | | | | | |
Same-property leased occupancy(3) | 98.2 | % | | 97.3 | % | | | | | | | | |
| Number of properties included in same-property analysis | 76 |
| | | | | | | | | | |
| | | | | | | | | | | | |
(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, under contract to be sold, or are in the foreclosure process during the periods being compared. Same-property occupancy includes dark and paying tenants.
|
| | |
| URBAN EDGE PROPERTIES | | |
| EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION and AMORTIZATION (EBITDA) |
| For the three and six months ended June 30, 2017 and 2016 | |
| (in thousands) | | |
| | | |
|
| | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended
June 30, |
| | 2017 | | 2016 | | 2017 | | 2016 |
| Net income | $ | 14,920 |
| | $ | 36,071 |
| | $ | 69,655 |
| | $ | 55,859 |
|
| Depreciation and amortization | 23,701 |
| | 13,558 |
| | 39,529 |
| | 27,473 |
|
| Interest expense | 13,040 |
| | 12,097 |
| | 25,291 |
| | 24,867 |
|
| Amortization of deferred financing costs | 587 |
| | 723 |
| | 1,451 |
| | 1,382 |
|
| Income tax expense (benefit) | 304 |
| | (306 | ) | | 624 |
| | 30 |
|
| EBITDA | 52,552 |
| | 62,143 |
|
| 136,550 |
|
| 109,611 |
|
| Adjustments for Adjusted EBITDA: | | | | | | | |
| Real estate impairment loss | 303 |
| | — |
| | 3,467 |
| | — |
|
| Transaction costs | 132 |
| | 34 |
| | 183 |
| | 84 |
|
| Loss on extinguishment of debt | — |
| | — |
| | 1,274 |
| | — |
|
Tenant bankruptcy settlement income
| (486 | ) | | (340 | ) | | (513 | ) | | (1,490 | ) |
| Gain on sale of real estate | — |
| | (15,618 | ) | | — |
| | (15,618 | ) |
| Income from acquired leasehold interest | — |
| | — |
| | (39,215 | ) | | — |
|
| Adjusted EBITDA | $ | 52,501 |
| | $ | 46,219 |
|
| $ | 101,746 |
|
| $ | 92,587 |
|
| | | | | | | | |
| Interest expense | $ | 13,040 |
| | $ | 12,097 |
|
| $ | 25,291 |
|
| $ | 24,867 |
|
| | | | | | | | |
| Adjusted EBITDA to interest expense | 4.0 | x | | 3.8 | x |
| 4.0 | x |
| 3.7 | x |
| | | | | | | | |
| Fixed charges | | | | | | | |
| Interest expense | $ | 13,040 |
| | $ | 12,097 |
|
| $ | 25,291 |
|
| $ | 24,867 |
|
| Scheduled principal amortization | 4,427 |
| | 4,325 |
| | 9,063 |
| | 8,455 |
|
| Total fixed charges | $ | 17,467 |
| | $ | 16,422 |
|
| $ | 34,354 |
|
| $ | 33,322 |
|
| | | | | | | | |
| Adjusted EBITDA to fixed charges | 3.0 | x | | 2.8 | x |
| 3.0 | x |
| 2.8 | x |
| | | | | | | | |
|
| | |
| URBAN EDGE PROPERTIES | | |
| FUNDS FROM OPERATIONS | |
| For the three and six months ended June 30, 2017 and 2016 | |
| (in thousands, except per share amounts) | | |
| | | |
|
| | | | | | | | | | | | | | | |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| | 2017 | | 2016 | | 2017 | | 2016 |
| Net income | $ | 14,920 |
| | $ | 36,071 |
| | $ | 69,655 |
| | $ | 55,859 |
|
| Less (net income) attributable to noncontrolling interests in: | | | | | | | |
| Operating partnership | (1,326 | ) | | (2,201 | ) | | (5,464 | ) | | (3,355 | ) |
| Consolidated subsidiaries | (11 | ) | | (2 | ) | | (22 | ) | | 2 |
|
| Net income attributable to common shareholders | 13,583 |
| | 33,868 |
|
| 64,169 |
|
| 52,506 |
|
| Adjustments: | | | | | | | |
| Gain on sale of real estate | — |
| | (15,618 | ) | | — |
| | (15,618 | ) |
| Rental property depreciation and amortization | 23,452 |
| | 13,395 |
| | 39,031 |
| | 27,150 |
|
| Real estate impairment loss | 303 |
| | — |
| | 3,467 |
| | — |
|
Limited partnership interests in operating partnership(1) | 1,326 |
| | 2,201 |
| | 5,464 |
| | 3,355 |
|
| FFO Applicable to diluted common shareholders | 38,664 |
| | 33,846 |
|
| 112,131 |
|
| 67,393 |
|
FFO per diluted common share(2) | 0.34 |
| | 0.32 |
|
| 1.01 |
|
| 0.64 |
|
| Adjustments to FFO: | | | | | | | |
| Transaction costs | 132 |
| | 34 |
| | 183 |
| | 84 |
|
Loss on extinguishment of debt
| — |
| | — |
| | 1,274 |
| | — |
|
Tenant bankruptcy settlement income
| (486 | ) | | (340 | ) | | (513 | ) | | (1,490 | ) |
| Benefit related to income taxes | — |
| | (625 | ) | | — |
| | (625 | ) |
| Income from acquired leasehold interest | — |
| | — |
| | (39,215 | ) | | — |
|
FFO as Adjusted applicable to diluted common shareholders
| $ | 38,310 |
| | $ | 32,915 |
|
| $ | 73,860 |
|
| $ | 65,362 |
|
FFO as Adjusted per diluted common share(2) | $ | 0.33 |
| | $ | 0.31 |
|
| $ | 0.66 |
|
| $ | 0.62 |
|
| | | | | | | | |
Weighted Average diluted common shares(2) | 114,433 |
| | 106,041 |
| | 111,224 |
| | 105,866 |
|
(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 three months ended June 30, 2017. FFO applicable to diluted common shareholders and FFO as Adjusted applicable to diluted common shareholders calculations includes 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 FFO as Adjusted per share for the three months ended June 30, 2017 and the three and six months ended June 30, 2016 are higher than the GAAP weighted average diluted shares as a result of the dilutive impact of LTIP and OP units which may be redeemed for our common stock. These redeemable units are not included in the weighted average diluted share count for GAAP purposes because their inclusion is anti-dilutive. LTIP and OP units are included for the six months ended June 30, 2017 as their inclusion is dilutive.
|
| | |
| URBAN EDGE PROPERTIES | | |
| MARKET CAPITALIZATION, DEBT RATIOS AND LIQUIDITY | | |
| As of June 30, 2017 | | |
| (in thousands, except share amounts) | | |
| | | |
|
| | | |
| | June 30, 2017 |
| Closing market price of common shares | $ | 23.73 |
|
| | |
| Basic common shares | 107,564,687 |
|
| OP and LTIP units | 12,830,232 |
|
| Diluted common shares | 120,394,919 |
|
| | |
| Equity market capitalization | $ | 2,856,971 |
|
| | |
| | |
Total consolidated debt(1) | $ | 1,420,605 |
|
| Cash and cash equivalents | (248,407 | ) |
| Net debt | $ | 1,172,198 |
|
| | |
| Net Debt to Adjusted EBITDA | 5.6 | x |
| | |
Total consolidated debt(1) | $ | 1,420,605 |
|
| Equity market capitalization | 2,856,971 |
|
| Total market capitalization | $ | 4,277,576 |
|
| | |
| Net debt to total market capitalization at applicable market price | 27.4 | % |
| | |
| | |
| Cash and cash equivalents including restricted cash | $ | 262,829 |
|
| Available under unsecured credit facility | 600,000 |
|
| Total liquidity | $ | 862,829 |
|
| | |
(1) Total consolidated debt excludes unamortized debt issuance costs of $8.2 million.
|
| | |
| URBAN EDGE PROPERTIES | | |
| ADDITIONAL DISCLOSURES | |
| (in thousands) | | |
| | | |
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, | | Six Months Ended June 30, |
| | | 2017 | | 2016 | | 2017 | | 2016 |
| Certain non-cash items: | | | |
| | | | |
Straight-line rental income(1) | | $ | (323 | ) | | $ | 60 |
| | $ | (413 | ) | | $ | 361 |
|
Amortization of below-market lease intangibles, net(1) | | 2,071 |
| | 1,874 |
|
| 4,107 |
| | 3,749 |
|
Straight-line ground rent expense(2) | | (53 | ) | | (47 | ) | | (107 | ) | | (135 | ) |
Amortization of below-market lease intangibles, lessee(2) | | (126 | ) | | (243 | ) | | (486 | ) | | (486 | ) |
Amortization of deferred financing costs(4) | | (587 | ) | | (723 | ) | | (1,451 | ) | | (1,382 | ) |
| Capitalized interest | | 1,006 |
| | 1,113 |
| | 1,946 |
| | 1,631 |
|
Share-based compensation expense(3) | | (1,875 | ) | | (1,424 | ) | | (3,359 | ) | | (2,721 | ) |
| | | | | | | | | |
Capital expenditures: (5) | | | | | | | | |
| Development and redevelopment costs | | $ | 16,010 |
| | $ | 11,360 |
| | $ | 25,258 |
| | $ | 22,272 |
|
| Maintenance capital expenditures | | 655 |
| | 2,587 |
| | 1,311 |
| | 3,147 |
|
| Leasing commissions | | 426 |
| | 443 |
| | 626 |
| | 1,008 |
|
| Tenant improvements and allowances | | 1,545 |
| | 570 |
| | 2,791 |
| | 2,127 |
|
| Total capital expenditures | | $ | 18,636 |
| | $ | 14,960 |
|
| $ | 29,986 |
|
| $ | 28,554 |
|
| | | | | | | | | |
| | | June 30, 2017 | | December 31, 2016 | | | | |
| Other Liabilities: | | | | | | | | |
| Deferred ground rent expense | | $ | 6,392 |
| | $ | 6,284 |
| | | | |
| Deferred tax liability, net | | 3,859 |
| | 3,802 |
| | | | |
| Other | | 6,376 |
| | 4,589 |
| | | | |
| Total other liabilities | | $ | 16,627 |
| | $ | 14,675 |
| | | | |
| | | | | | | | | |
| Accounts payable and accrued expenses: | | | | | | | | |
| Tenant prepaid/deferred revenue | | $ | 16,955 |
| | $ | 13,619 |
| | | | |
| Accrued capital expenditures and leasing costs | | 19,415 |
| | 13,850 |
| | | | |
| Accrued interest payable | | 7,909 |
| | 6,635 |
| | | | |
| Security deposits | | 5,521 |
| | 4,287 |
| | | | |
| Accrued taxes payable | | 2,720 |
| | 1,698 |
| | | | |
| Other | | 10,868 |
| | 8,753 |
| | | | |
| Total accounts payable and accrued expenses | | $ | 63,388 |
| | $ | 48,842 |
| | | | |
(1) Amounts included in the financial statement line item "Property rentals" in the consolidated statements of income.
(2) Amounts included in the financial statement line item "Ground rent" in the consolidated statements of income.
(3) Amounts included in the financial statement line item "General and administrative" in the consolidated statements of income.
(4) Amounts included in the financial statement line item "Interest and debt expense" in the consolidated statements of income.
(5) Amounts presented on a cash basis.
|
| | |
| URBAN EDGE PROPERTIES | | |
| TENANT CONCENTRATION - TOP TWENTY-FIVE TENANTS | |
| As of June 30, 2017 | | |
| | | |
| | | |
|
| | | | | | | | | | | | | |
| | | | | | | | |
| 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, Inc. | 7 |
| 920,226 |
| 5.8% | $ | 15,801,538 |
| 6.1% | $ | 17.17 |
| 14.0 |
| Wal-Mart Stores, Inc. | 9 |
| 1,438,730 |
| 9.1% | 10,726,552 |
| 4.2% | 7.46 |
| 8.5 |
The TJX Companies, Inc.(2) | 17 |
| 607,105 |
| 3.9% | 10,069,246 |
| 3.9% | 16.59 |
| 4.4 |
| Best Buy Co., Inc. | 9 |
| 400,578 |
| 2.5% | 9,336,325 |
| 3.6% | 23.31 |
| 6.9 |
| Lowe's Companies, Inc. | 6 |
| 976,415 |
| 6.2% | 8,575,004 |
| 3.3% | 8.78 |
| 10.2 |
Ahold Delhaize(3) | 9 |
| 655,618 |
| 4.2% | 8,015,607 |
| 3.1% | 12.23 |
| 6.3 |
| Kohl's Corporation | 8 |
| 716,345 |
| 4.5% | 6,873,766 |
| 2.7% | 9.60 |
| 5.9 |
| PetSmart, Inc. | 12 |
| 287,493 |
| 1.8% | 6,740,340 |
| 2.6% | 23.45 |
| 4.3 |
| BJ's Wholesale Club | 4 |
| 454,297 |
| 2.9% | 5,278,625 |
| 2.0% | 11.62 |
| 9.4 |
Sears Holdings Corporation(4) | 4 |
| 547,443 |
| 3.5% | 5,244,737 |
| 2.0% | 9.58 |
| 18.4 |
Toys "R" Us, Inc.(5) | 9 |
| 398,391 |
| 2.5% | 4,994,856 |
| 1.9% | 12.54 |
| 5.3 |
| ShopRite | 4 |
| 265,997 |
| 1.7% | 4,236,388 |
| 1.6% | 15.93 |
| 11.9 |
| Staples, Inc. | 9 |
| 186,030 |
| 1.2% | 3,922,796 |
| 1.5% | 21.09 |
| 3.4 |
The Gap, Inc.(6) | 8 |
| 123,784 |
| 0.8% | 3,498,295 |
| 1.4% | 28.26 |
| 4.1 |
| Target Corporation | 2 |
| 297,856 |
| 1.9% | 3,448,666 |
| 1.3% | 11.58 |
| 14.8 |
| Century 21 | 1 |
| 156,649 |
| 1.0% | 3,394,181 |
| 1.3% | 21.67 |
| 9.6 |
| Whole Foods Market, Inc. | 2 |
| 100,682 |
| 0.6% | 3,365,570 |
| 1.3% | 33.43 |
| 10.5 |
Dick's Sporting Goods, Inc.(7) | 4 |
| 167,786 |
| 1.1% | 3,356,429 |
| 1.3% | 20.00 |
| 1.5 |
| LA Fitness International LLC | 4 |
| 181,342 |
| 1.2% | 3,165,032 |
| 1.2% | 17.45 |
| 10.0 |
| 24 Hour Fitness | 1 |
| 53,750 |
| 0.3% | 2,564,520 |
| 1.0% | 47.71 |
| 14.5 |
| National Wholesale Liquidator | 1 |
| 171,216 |
| 1.1% | 2,204,219 |
| 0.9% | 12.87 |
| 5.6 |
URBN(8) | 1 |
| 31,450 |
| 0.2% | 2,201,500 |
| 0.9% | 70.00 |
| 11.3 |
| Burlington Stores, Inc. | 4 |
| 369,181 |
| 2.3% | 2,189,728 |
| 0.8% | 5.93 |
| 8.9 |
Bed Bath & Beyond Inc.(9) | 5 |
| 149,879 |
| 1.0% | 1,996,934 |
| 0.8% | 13.32 |
| 5.4 |
| Mattress Firm, Inc. | 12 |
| 71,222 |
| 0.5% | 1,988,814 |
| 0.8% | 27.92 |
| 4.4 |
| | | | | | | | |
| Total/Weighted Average | 152 |
| 9,729,465 |
| 61.8% | $ | 133,189,668 |
| 51.5% | $ | 13.69 |
| 8.6 |
| | | | | | | | |
(1) In years, excluding tenant renewal options. Total top twenty-five tenants is weighted based on annualized base rent ("ABR").
(2) Includes Marshalls (11), T.J. Maxx (4) and HomeGoods (2).
(3) Includes Stop & Shop (6) and Giant Food (3).
(4) Includes Kmart (4).
(5) Includes Toys "R" Us (6) and Babies "R" Us (3).
(6) Includes Old Navy (5), Gap (2) and Banana Republic (1).
(7) Includes Dick's Sporting Goods (3) and Golf Galaxy (1).
(8) Includes Anthropologie (1).
(9) Includes Harmon Face Values (3) and Bed Bath & Beyond (2).
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 six months ended June 30, 2017 | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | |
| | Three months ended June 30, 2017 | | Six months ended
June 30, 2017 |
| | GAAP(3) | | Cash(2) | | GAAP(3) | | Cash(2) |
| New leases | | | | | | | |
| Number of new leases executed | 12 |
| | 12 |
| | 17 |
| | 17 |
|
| Total square feet | 51,732 |
| | 51,732 |
| | 90,748 |
| | 90,748 |
|
Number of same space leases(1) | 5 |
| | 5 |
| | 10 |
| | 10 |
|
| Same space square feet | 16,735 |
| | 16,735 |
| | 55,751 |
| | 55,751 |
|
| Prior rent per square foot | $ | 29.70 |
| | $ | 29.76 |
| | $ | 20.34 |
| | $ | 20.48 |
|
| New rent per square foot | $ | 27.58 |
| | $ | 24.41 |
| | $ | 20.03 |
| | $ | 18.27 |
|
| Same space weighted average lease term (years) | 14.1 |
| | 14.1 |
| | 11.3 |
| | 11.3 |
|
Same space TIs per square foot(4) | N/A |
| | $ | 11.79 |
| | N/A |
| | $ | 10.66 |
|
Rent spread(5) | (7.1 | )% | | (18.0 | )% | | (1.5 | )% | | (10.8 | )% |
| | | | | | | | |
| Renewals & Options | | | | | | | |
| Number of new leases executed | 19 |
| | 19 |
| | 31 |
| | 31 |
|
| Total square feet | 321,001 |
| | 321,001 |
| | 376,364 |
| | 376,364 |
|
Number of same space leases(1) | 19 |
| | 19 |
| | 31 |
| | 31 |
|
| Same space square feet | 321,001 |
| | 321,001 |
| | 376,364 |
| | 376,364 |
|
| Prior rent per square foot | $ | 15.61 |
| | $ | 15.59 |
| | $ | 15.70 |
| | $ | 16.05 |
|
| New rent per square foot | $ | 15.21 |
| | $ | 15.40 |
| | $ | 16.26 |
| | $ | 16.04 |
|
| Same space weighted average lease term (years) | 6.5 |
| | 6.5 |
| | 6.3 |
| | 6.3 |
|
Same space TIs per square foot(4) | N/A |
| | $ | — |
| | N/A |
| | $ | — |
|
| Rent spread | (2.6 | )% | | (1.2 | )% | | 3.6 | % | | (0.1 | )% |
| | | | | | | | |
| Total New Leases and Renewals & Options | | | | | | | |
| Number of new leases executed | 31 |
| | 31 |
| | 48 |
| | 48 |
|
| Total square feet | 372,733 |
| | 372,733 |
| | 467,112 |
| | 467,112 |
|
Number of same space leases(1) | 24 |
| | 24 |
| | 41 |
| | 41 |
|
| Same space square feet | 337,736 |
| | 337,736 |
| | 432,115 |
| | 432,115 |
|
| Prior rent per square foot | $ | 15.93 |
| | $ | 16.29 |
| | $ | 16.30 |
| | $ | 16.62 |
|
| New rent per square foot | $ | 16.20 |
| | $ | 15.85 |
| | $ | 16.75 |
| | $ | 16.33 |
|
| Same space weighted average lease term (years) | 6.9 |
| | 6.9 |
| | 6.9 |
| | 6.9 |
|
Same space TIs per square foot(4) | N/A |
| | $ | 0.58 |
| | N/A |
| | $ | 1.38 |
|
Rent spread(5) | 1.7 | % | | (2.7 | )% | | 2.8 | % | | (1.8 | )% |
(1) Leases executed on a same space basis include leases with comparable sf and prior existing tenants.
(2) Rents have not been calculated on a straight-line basis. Previous/expiring rent is that as of time of expiration and includes any percentage rent paid as well. New rent is that which is paid at commencement.
(3) Rents are calculated on a straight-line ("GAAP") basis.
(4) Includes both tenant improvements and landlord contributions.
(5) Rent spreads include all same space leases executed during the period regardless of how long a space was vacant. The cash rent spreads on new leases for the three and six months ended June 30, 2017 were 21.9% and 28.7%, respectively, if spaces vacant for more than two years are excluded. The total cash rent spreads on new leases including renewals and options for the three and six months ended June 30, 2017 were (1.0%) and 0.9%, respectively, if spaces vacant for more than two years are excluded.
|
| | |
| URBAN EDGE PROPERTIES | | |
| RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE | |
| As of June 30, 2017 | | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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 |
| 40,000 |
| 0.3 | % | $ | 17.05 |
| 21 |
| 53,000 |
| 2.2% | $ | 31.77 |
| 22 |
| 93,000 |
| 0.6 | % | $ | 25.44 |
|
| 2017 | 2 |
| 36,000 |
| 0.3 | % | 15.87 |
| 37 |
| 112,000 |
| 4.7% | 31.31 |
| 39 |
| 148,000 |
| 0.9 | % | 27.56 |
|
| 2018 | 16 |
| 841,000 |
| 6.3 | % | 9.28 |
| 71 |
| 202,000 |
| 8.6% | 39.45 |
| 87 |
| 1,043,000 |
| 6.6 | % | 15.12 |
|
| 2019 | 31 |
| 1,060,000 |
| 7.9 | % | 17.85 |
| 93 |
| 287,000 |
| 12.1% | 37.10 |
| 124 |
| 1,347,000 |
| 8.6 | % | 21.95 |
|
| 2020 | 33 |
| 1,163,000 |
| 8.7 | % | 15.21 |
| 67 |
| 224,000 |
| 9.5% | 36.81 |
| 100 |
| 1,387,000 |
| 8.8 | % | 18.69 |
|
| 2021 | 30 |
| 878,000 |
| 6.6 | % | 19.05 |
| 66 |
| 206,000 |
| 8.7% | 35.90 |
| 96 |
| 1,084,000 |
| 6.9 | % | 22.26 |
|
| 2022 | 28 |
| 1,314,000 |
| 9.9 | % | 11.19 |
| 67 |
| 192,000 |
| 8.1% | 31.79 |
| 95 |
| 1,506,000 |
| 9.6 | % | 13.82 |
|
| 2023 | 29 |
| 1,244,000 |
| 9.3 | % | 17.20 |
| 35 |
| 115,000 |
| 4.9% | 35.48 |
| 64 |
| 1,359,000 |
| 8.7 | % | 18.75 |
|
| 2024 | 25 |
| 1,267,000 |
| 9.5 | % | 12.54 |
| 38 |
| 131,000 |
| 5.5% | 28.41 |
| 63 |
| 1,398,000 |
| 8.9 | % | 14.03 |
|
| 2025 | 9 |
| 502,000 |
| 3.8 | % | 13.61 |
| 35 |
| 106,000 |
| 4.5% | 35.71 |
| 44 |
| 608,000 |
| 3.9 | % | 17.46 |
|
| 2026 | 7 |
| 496,000 |
| 3.7 | % | 8.66 |
| 49 |
| 163,000 |
| 6.9% | 30.11 |
| 56 |
| 659,000 |
| 4.2 | % | 13.96 |
|
| 2027 | 16 |
| 631,000 |
| 4.7 | % | 15.38 |
| 34 |
| 160,000 |
| 6.8% | 39.11 |
| 50 |
| 791,000 |
| 5.0 | % | 20.18 |
|
| Thereafter | 48 |
| 3,500,000 |
| 26.2 | % | 14.57 |
| 24 |
| 134,000 |
| 5.7% | 37.78 |
| 72 |
| 3,634,000 |
| 23.2 | % | 15.42 |
|
| Subtotal/Average | 275 |
| 12,972,000 |
| 97.2 | % | $ | 14.36 |
| 637 | 2,085,000 |
| 88.2 | % | $ | 35.19 |
| 912 | 15,057,000 |
| 95.9 | % | $ | 17.24 |
|
| Vacant | 14 |
| 367,000 |
| 2.8 | % | N/A |
| 102 |
| 278,000 |
| 11.8 | % | N/A |
| 116 |
| 645,000 |
| 4.1 | % | N/A |
| Total/Average | 289 |
| 13,339,000 |
| 100 | % | N/A |
| 739 | 2,363,000 |
| 100 | % | N/A |
| 1,028 | 15,702,000 |
| 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 in-place contractual (cash-basis) 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 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 $5.73 per square foot as of June 30, 2017.
|
| | |
| URBAN EDGE PROPERTIES | | |
| RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE ASSUMING EXERCISE OF ALL RENEWALS AND OPTIONS |
| As of June 30, 2017 | | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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 |
| 40,000 |
| 0.3 | % | $ | 17.05 |
| 21 |
| 53,000 |
| 2.2% | $ | 31.77 |
| 22 |
| 93,000 |
| 0.6 | % | $ | 25.44 |
|
| 2017 | 2 |
| 36,000 |
| 0.3 | % | 15.87 |
| 28 |
| 79,000 |
| 3.4% | 32.88 |
| 30 |
| 115,000 |
| 0.7 | % | 27.55 |
|
| 2018 | 2 |
| 28,000 |
| 0.2 | % | 11.33 |
| 54 |
| 147,000 |
| 6.2% | 45.72 |
| 56 |
| 175,000 |
| 1.1 | % | 40.22 |
|
| 2019 | 4 |
| 165,000 |
| 1.2 | % | 12.28 |
| 57 |
| 150,000 |
| 6.4% | 45.21 |
| 61 |
| 315,000 |
| 2.0 | % | 27.96 |
|
| 2020 | 6 |
| 104,000 |
| 0.8 | % | 22.31 |
| 50 |
| 146,000 |
| 6.2% | 44.25 |
| 56 |
| 250,000 |
| 1.6 | % | 35.12 |
|
| 2021 | 6 |
| 121,000 |
| 0.9 | % | 18.20 |
| 46 |
| 120,000 |
| 5.1% | 37.49 |
| 52 |
| 241,000 |
| 1.5 | % | 27.81 |
|
| 2022 | 5 |
| 164,000 |
| 1.2 | % | 9.67 |
| 42 |
| 119,000 |
| 5.0% | 36.74 |
| 47 |
| 283,000 |
| 1.8 | % | 21.05 |
|
| 2023 | 9 |
| 410,000 |
| 3.1 | % | 16.78 |
| 28 |
| 83,000 |
| 3.5% | 36.60 |
| 37 |
| 493,000 |
| 3.1 | % | 20.12 |
|
| 2024 | 11 |
| 215,000 |
| 1.6 | % | 17.58 |
| 48 |
| 141,000 |
| 6.0% | 36.12 |
| 59 |
| 356,000 |
| 2.3 | % | 24.92 |
|
| 2025 | 11 |
| 361,000 |
| 2.7 | % | 19.58 |
| 32 |
| 106,000 |
| 4.5% | 34.96 |
| 43 |
| 467,000 |
| 3.0 | % | 23.07 |
|
| 2026 | 8 |
| 216,000 |
| 1.6 | % | 19.07 |
| 45 |
| 130,000 |
| 5.5% | 34.32 |
| 53 |
| 346,000 |
| 2.2 | % | 24.80 |
|
| 2027 | 7 |
| 287,000 |
| 2.2 | % | 17.24 |
| 34 |
| 97,000 |
| 4.1% | 33.12 |
| 41 |
| 384,000 |
| 2.5 | % | 21.25 |
|
| Thereafter | 203 |
| 10,825,000 |
| 81.1 | % | 19.96 |
| 152 |
| 714,000 |
| 30.1% | 43.81 |
| 355 |
| 11,539,000 |
| 73.5 | % | 21.43 |
|
| Subtotal/Average | 275 |
| 12,972,000 |
| 97.2 | % | $ | 19.47 |
| 637 |
| 2,085,000 |
| 88.2% | $ | 40.20 |
| 912 |
| 15,057,000 |
| 95.9 | % | $ | 22.34 |
|
| Vacant | 14 |
| 367,000 |
| 2.8 | % | N/A |
| 102 |
| 278,000 |
| 11.8% | N/A |
| 116 |
| 645,000 |
| 4.1 | % | N/A |
|
| Total/Average | 289 |
| 13,339,000 |
| 100 | % | N/A |
| 739 |
| 2,363,000 |
| 100% | N/A |
| 1,028 |
| 15,702,000 |
| 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 in-place contractual (cash-basis) 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 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 $5.89 per square foot as of June 30, 2017.
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of June 30, 2017 | | |
| (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% | $26.49 | — | | 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 |
Walnut Creek (Mt. Diablo) (4) | 7,000 |
| 100.0% | 115.00 | — | | Z Gallerie |
| Connecticut: | | | | | | |
| Newington | 189,000 |
| 100.0% | 9.83 | $10,172 | (3) | Walmart, Staples |
| Maryland: | | | | | | |
Baltimore (Towson)(6) | 155,000 |
| 100.0% | 24.91 | $14,141 |
(3) | Staples, Home Goods, Golf Galaxy, Tuesday Morning, Ulta, Kirkland's, Five Below (last 4 leases not commenced) |
| Glen Burnie | 121,000 |
| 100.0% | 10.05 | — | | Gavigan's Home Furnishings, Pep Boys |
| Rockville | 94,000 |
| 98.1% | 24.66 | — | | 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% | 23.44 | — | | PetSmart, Modell’s Sporting Goods |
| Chicopee | 224,000 |
| 100.0% | 5.50 | $7,517 | (3) | Walmart |
Milford (leased through 2019)(8) | 83,000 |
| 100.0% | 9.01 | — | | Kohl’s |
| Springfield | 182,000 |
| 100.0% | 5.68 | $5,185 | (3) | Walmart |
| Missouri: | | | | | | |
Manchester(6) | 131,000 |
| 88.8% | 11.53 | $12,500 | | Academy Sports, Bob's Discount Furniture, Pan-Asia Market |
| New Hampshire: | | | | | | |
Salem (leased through 2102)(8) | 37,000 |
| 100.0% | 12.58 | — | | Babies “R” Us |
| New Jersey: | | | | | | |
| Bergen Town Center - East, Paramus | 212,000 |
| 97.0% | 19.41 | — | | Lowe's, REI, Kirkland's |
| Bergen Town Center - West, Paramus | 955,000 |
| 99.3% | 32.30 | $300,000 | | Target, Century 21, Whole Foods Market, Marshalls, Nordstrom Rack, Saks Off 5th, HomeGoods, H&M, Bloomingdale's Outlet, Nike Factory Store, Old Navy, Nieman Marcus Last Call Studio |
| Brick | 278,000 |
| 100.0% | 18.88 | $28,928 | (3) | Kohl's, ShopRite, Marshalls, Kirkland's |
Carlstadt (leased through 2050)(8) | 78,000 |
| 100.0% | 23.66 | — | | Stop & Shop |
| Cherry Hill (Cherry Hill Commons) | 261,000 |
| 99.2% | 9.64 | $12,554 | (3) | Walmart, Toys “R” Us, Maxx Fitness |
Cherry Hill (Plaza at Cherry Hill)(6) | 413,000 |
| 74.0% | 13.03 | $28,930 | | LA Fitness, Aldi, Raymour & Flanigan, Restoration Hardware, Total Wine, Guitar Center, Sam Ash Music |
| East Brunswick | 427,000 |
| 100.0% | 14.93 | $33,195 | (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 |
| 96.1% | 20.22 | $34,634 | (3) | The Home Depot, Dick's Sporting Goods, Saks Off Fifth (lease not commenced), Marshalls, Burlington, Forever21 Red |
| East Hanover (280 Route 10 West) | 28,000 |
| 100.0% | 34.71 | $4,118 | (3) | REI |
East Rutherford (leased through 2194)(8) | 197,000 |
| 98.3% | 12.45 | $12,305 | (3) | Lowe’s |
Englewood(6) | 41,000 |
| 64.1% | 20.83 | $11,537 | | New York Sports Club |
| Garfield | 263,000 |
| 100.0% | 13.70 | — | | Walmart, Burlington, Marshalls, PetSmart, Ulta (lease not commenced) |
| Hackensack | 275,000 |
| 97.9% | 22.06 | $36,718 | (3) | The Home Depot, Staples, Petco, 99 Ranch |
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of June 30, 2017 | | |
| (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 |
| Hazlet | 95,000 |
| 100.0% | 3.43 | — | | Stop & Shop (5) |
Jersey City (Hudson Mall)(6) | 383,000 |
| 97.3% | 14.08 | $25,333 | | Marshalls, Big Lots, Toys "R" Us, Staples, Old Navy |
| Jersey City (Hudson Commons) | 236,000 |
| 100.0% | 12.37 | $18,359 | (3) | Lowe’s, P.C. Richard & Son |
| Kearny | 104,000 |
| 98.2% | 19.53 | — | | LA Fitness, Marshalls |
| Lawnside | 147,000 |
| 98.9% | 14.66 | $9,676 | (3) | The Home Depot, PetSmart |
| Lodi (Route 17 North) | 171,000 |
| 100.0% | 12.87 | $10,271 | (3) | National Wholesale Liquidators |
| Lodi (Washington Street) | 85,000 |
| 87.6% | 20.43 | — | | Blink Fitness, Aldi |
| Manalapan | 208,000 |
| 100.0% | 17.54 | $19,054 | (3) | Best Buy, Bed Bath & Beyond, Babies “R” Us, Modell’s Sporting Goods, PetSmart |
| Marlton | 213,000 |
| 100.0% | 14.18 | $15,630 | (3) | Kohl’s, ShopRite, PetSmart |
| Middletown | 231,000 |
| 99.1% | 13.14 | $15,729 | (3) | Kohl’s, Stop & Shop |
Millburn(6) | 102,000 |
| 98.6% | 25.43 | $24,000 | | Trader Joe's, CVS, PetSmart |
| Montclair | 18,000 |
| 100.0% | 26.20 | $2,382 | (3) | Whole Foods Market |
| Morris Plains | 177,000 |
| 88.0% | 22.21 | $19,351 | (3) | Kohl’s, ShopRite (5) |
| North Bergen (Kennedy Blvd) | 62,000 |
| 100.0% | 13.77 | $4,615 | (3) | Food Bazaar |
| North Bergen (Tonnelle Ave) | 410,000 |
| 100.0% | 20.77 | $100,000 | | Walmart, BJ’s Wholesale Club, PetSmart, Staples |
| North Plainfield | 218,000 |
| 99.0% | 10.02 | — | | Costco, The Tile Shop, La-Z-Boy, Petco (lease not commenced) |
Paramus (leased through 2033)(8) | 63,000 |
| 100.0% | 46.61 | — | | 24 Hour Fitness |
| Rockaway | 173,000 |
| 94.8% | 13.54 | $11,909 | (3) | ShopRite, T.J. Maxx |
South Plainfield (leased through 2039)(8) | 56,000 |
| 96.3% | 20.53 | $4,639 | (3) | Staples, Party City |
| Totowa | 271,000 |
| 100.0% | 17.26 | $22,428 | (3) | The Home Depot, Bed Bath & Beyond, buy buy Baby, Marshalls, Staples |
| Turnersville | 98,000 |
| 100.0% | 9.62 | — | | Haynes Furniture Outlet (DBA The Dump), Verizon Wireless |
| Union (2445 Springfield Ave) | 232,000 |
| 100.0% | 17.85 | $25,802 | (3) | The Home Depot |
| Union (Route 22 and Morris Ave) | 276,000 |
| 99.4% | 18.14 | $29,275 | (3) | Lowe’s, Toys “R” Us, Office Depot |
| Watchung | 170,000 |
| 98.3% | 16.84 | $13,645 | (3) | BJ’s Wholesale Club |
Westfield (One Lincoln Plaza)(6) | 22,000 |
| 100.0% | 33.12 | $4,730 | | Five Guys, PNC Bank, Cake Boss |
| Woodbridge (Woodbridge Commons) | 226,000 |
| 78.5% | 13.20 | $18,706 | (3) | Walmart |
Woodbridge (Plaza at Woodbridge)(6) | 411,000 |
| 80.6% | 17.04 | $55,340 | | Best Buy, Raymour & Flanigan, Toys “R” Us, Lincoln Tech, Harbor Freight, Retro Fitness |
| New York: | | | | | | |
| Bronx (1750-1780 Gun Hill Road) | 77,000 |
| 100.0% | 34.55 | — | | Planet Fitness, Aldi |
Bronx (Bruckner Boulevard)(6) | 375,000 |
| 79.5% | 20.37 | — | | Kmart, Toys “R” Us, ShopRite (lease not commenced) |
Shops at Bruckner(6) | 114,000 |
| 100.0% | 34.06 | $12,443 | | Fallas, Marshalls, Old Navy |
| Buffalo (Amherst) | 311,000 |
| 100.0% | 9.53 | — | | BJ’s Wholesale Club, T.J. Maxx, HomeGoods, Toys “R” Us, LA Fitness |
Commack (leased through 2021)(8) | 47,000 |
| 100.0% | 20.69 | — | | PetSmart, Ace Hardware |
Dewitt (leased through 2041)(8) | 46,000 |
| 100.0% | 22.51 | — | | Best Buy |
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 | $19,351 | (3) | The Home Depot, Staples |
| Huntington | 205,000 |
| 100.0% | 15.75 | $15,084 | (3) | Kmart, Marshalls, Old Navy, Petco |
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of June 30, 2017 | | |
| (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 |
| Inwood | 100,000 |
| 99.3% | 19.49 | — | | Stop & Shop |
| Mt. Kisco | 189,000 |
| 97.1% | 16.42 | $14,672 | | 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 | 46,000 |
| 77.5% | 38.58 | — | | |
| Rochester | 205,000 |
| 100.0% | 3.08 | $3,970 | (3) | Walmart |
Rochester (Henrietta)
(leased through 2056)(8) | 165,000 |
| 97.9% | 4.15 | — | | Kohl’s |
| Staten Island | 165,000 |
| 93.2% | 24.18 | — | | Western Beef, Planet Fitness |
| West Babylon | 66,000 |
| 93.0% | 17.09 | — | | Best Market, Rite Aid |
Yonkers Gateway Center(6)
| 437,000 |
| 87.6% | 16.28 | $33,967 | | Burlington Coat Factory, Best Buy, DSW, PetSmart, Alamo Drafthouse Cinema
|
| Pennsylvania: | | | | | | |
| Allentown | 372,000 |
| 100.0% | 12.26 | $27,141 | (3) | Burlington Coat Factory, Giant Food, Dick's Sporting Goods, T.J. Maxx, Petco, Big Lots |
| Bensalem | 185,000 |
| 100.0% | 12.90 | $13,471 | (3) | Kohl's, Ross Dress for Less, Staples, Petco |
| Bethlehem | 153,000 |
| 93.9% | 7.80 | $5,061 | (3) | Giant Food, Petco |
| Broomall | 169,000 |
| 100.0% | 10.85 | $9,676 | (3) | Giant Food, Planet Fitness, A.C. Moore, PetSmart |
| Glenolden | 102,000 |
| 100.0% | 12.43 | $6,202 | (3) | Walmart |
| Lancaster | 228,000 |
| 100.0% | 4.76 | $4,887 | (3) | Lowe's, Community Aid, Mattress Firm |
Springfield (leased through 2025)(8) | 41,000 |
| 100.0% | 22.99 | — | | PetSmart |
| Wilkes-Barre (461 - 499 Mundy Street) | 204,000 |
| 98.1% | 12.34 | — | | Bob's Discount Furniture, Babies "R" Us, Ross Dress for Less, Marshalls, Petco |
Wyomissing (leased through 2065)(8) | 76,000 |
| 93.4% | 16.99 | — | | LA Fitness, PetSmart |
| York | 111,000 |
| 100.0% | 9.21 | $4,714 | (3) | Ashley Furniture, Tractor Supply Company, Aldi, Crunch Fitness |
| South Carolina: | | | | | | |
Charleston (leased through 2063)(8) | 45,000 |
| 100.0% | 14.69 | — | | 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 | 356,000 |
| 93.4% | 34.85 | $130,000 | | Kmart, Forever 21 |
Montehiedra(6) | 539,000 |
| 93.5% | 18.00 | $116,658 | | Kmart, The Home Depot, Marshalls, Caribbean Theatres, Tiendas Capri |
| Total Shopping Centers and Malls | 15,702,000 | 95.9% | $17.25 | $1,420,605 | | |
| WAREHOUSES: | | | | | | |
East Hanover - Five Buildings(6) | 942,000 |
| 91.7% | 4.80 | — | | 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 | 16,644,000 |
| 95.7% | $16.57 | $1,420,605 | | |
(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 $19.62 per square foot.
(3) Property is included in a cross-collateralized mortgage loan.
(4) Our ownership of Walnut Creek (Mt. Diablo) is 95% at June 30, 2017.
(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 cash NOI as of June 30, 2017.
(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 six months ended June 30, 2017 | | |
| (dollars in thousands) | | |
| | | |
|
| | | | | | | |
| 2017 Property Acquisitions: | | | | |
| | | | | | |
| Date Acquired | Property Name | City | State | GLA | Price(3) |
| 1/4/2017 | Yonkers Gateway Center(1) | Yonkers | NY | — | $ | 51,700 |
|
| 1/17/2017 | Shops at Bruckner(2) | Bronx | NY | 114,000 | 32,000 |
|
| 2/2/2017 | Hudson Mall | Jersey City | NJ | 383,000 | 43,700 |
|
| 5/24/2017 | Yonkers Gateway Center(1) | Yonkers | NY | 437,000 | 100,688 |
|
| 5/24/2017 | The Plaza at Cherry Hill | Cherry Hill | NJ | 413,000 | 51,348 |
|
| 5/24/2017 | Manchester Plaza | Manchester | MO | 131,000 | 19,794 |
|
| 5/24/2017 | Millburn Gateway Center | Millburn | NJ | 102,000 | 43,748 |
|
| 5/24/2017 | 21 E Broad St / One Lincoln Plaza | Westfield | NJ | 22,000 | 9,670 |
|
| 5/25/2017 | The Plaza at Woodbridge | Woodbridge | NJ | 411,000 | 99,752 |
|
| | | | | | |
| 2017 Property Dispositions: | | | | |
| | | | | | |
| 6/30/2017 | Eatontown | Eatontown | NJ | 32,000 | $ | 5,000 |
|
(1) On January 4, 2017, we acquired fee and leasehold interests, including the lessor position under an operating lease for the whole property. On May 24, 2017, we purchased the remaining fee and leasehold interests not previously acquired, including the lessee position under the operating lease for the whole property.
(2) Represents the acquisition of the ground lease at the Shops at Bruckner. The Company now owns both the fee and ground lease positions in the property.
(3) Excludes $11.3 million of transaction costs incurred since January 1, 2017.
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS | |
| As of June 30, 2017 | | |
| (in thousands, except square footage data) | | |
| | | |
|
| | | | | | | | | | | | |
| | Estimated Gross Cost(1) | | Incurred as of 6/30/17 | Balance to Complete (Gross Cost) | Target Stabilization(2) | Description |
| ACTIVE PROJECTS | | | | | |
| Bruckner | $ | 56,500 |
| | $ | 20,400 |
| 36,100 |
| 3Q18 | Renovating and retenanting 64,000± sf; ShopRite, Boston Market, T-Mobile and Urban Health leases executed |
Bergen Town Center-Phase 1(3) | 46,700 |
| | 8,200 |
| 38,500 |
| 2Q19 | Renovating and retenanting; adding a 40,000± sf anchor to main mall and 15,000± sf adjacent to REI (10,000 sf leased to Kirklands); expanding Kay (executed) and adding Cava Grill (leased); improving parking deck |
| Montehiedra Town Center | 20,800 |
| | 17,800 |
| 3,000 |
| 2Q18 | Converted to outlet/value hybrid offering; completing leasing |
Garfield - Phase 1(3) | 17,400 |
| | 15,800 |
| 1,600 |
| 4Q17 | New Burlington and PetSmart open; Ulta opening 3Q17; 7,000± sf shop space under construction |
North Plainfield(3) | 7,200 |
| | 4,800 |
| 2,400 |
| 4Q17 | Added La-Z-Boy; Petco (leased) and 7,600± sf of shop space under construction |
| Towson - Phase 1 | 6,400 |
| | 4,500 |
| 1,900 |
| 2Q18 | Recaptured anchor; Kirkland's, Tuesday Morning and Five Below, open; Ulta opening 3Q17 |
Hackensack(3) | 4,700 |
| | 2,200 |
| 2,500 |
| 1Q18 | Released vacant supermarket to 99 Ranch (under construction); 10,000± sf of remaining 15,000± sf leased |
East Hanover(3) | 5,100 |
| | 3,100 |
| 2,000 |
| 4Q17 | Renovating and retenanting; leased junior anchor box to Saks Off Fifth |
Marlton(3) | 3,300 |
| | 300 |
| 3,000 |
| 2Q18 | New outparcel buildings for Shake Shack and honeygrow under construction |
Turnersville(3) | 2,100 |
| | 2,000 |
| 100 |
| 3Q17 | Verizon open |
Lawnside(3) | 2,100 |
| | 200 |
| 1,900 |
| 3Q18 | 6,000± sf shop space under construction (100% committed) |
Glen Burnie(3) | 1,300 |
| | 300 |
| 1,000 |
| 4Q18 | Securing public approvals for Bubba's 33 pad (leased) |
Rockaway(3) | 100 |
| | 100 |
| — |
| 4Q17 | Popeyes under construction
|
| Total | $ | 173,700 |
| (4) | $ | 79,700 |
| $ | 94,000 |
| |
| | | | | | | |
COMPLETED PROJECTS(2) | Description |
| East Hanover warehouses | 24,000 |
| | 21,200 |
| 2,800 |
| 2Q17 | Renovation completed; occupancy increased from 45% to 92% |
| Walnut Creek (Olympic) | 5,000 |
| | 5,000 |
| — |
| 4Q16 | Anthropologie open |
Walnut Creek (Mt. Diablo)(3) | 600 |
| | 600 |
| — |
| 1Q17 | Z Gallerie open |
Freeport(3) | 100 |
| | 100 |
| — |
| 1Q17 | Expanded Home Depot open |
| Total | $ | 29,700 |
| (4) | $ | 26,900 |
| $ | 2,800 |
| | |
| | | | | | | |
(1) Estimated gross cost includes the allocation of internal costs such as labor, interest and taxes.
(2) Target Stabilization reflects the first quarter in which at least 80% of the expected NOI from the project is realized on a cash basis for the entire quarter. A project achieving Target Stabilization is classified as Completed whether or not all costs have been expended and remains listed as a Completed project for one year in the table above. The Target Stabilization date is an estimate and is subject to change resulting from uncertainties inherent in the development process and not wholly under the Company's control.
(3) Results from these properties are included in our same-property metrics.
(4) The estimated, unleveraged yield for Active and Completed projects is 10% as of June 30, 2017 based on total estimated project costs for and the incremental, unleveraged NOI directly attributable to the projects. The decrease from the first quarter of 2017 reflects increased construction costs offset by increased NOI. The incremental, unleveraged NOI for Active and Completed projects excludes NOI generated outside the project scope such as the impact on future lease rollovers or on the long-term value of the property.
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS | |
| As of June 30, 2017 | | |
| (in thousands, except square footage data) | | |
| | | |
|
| | | |
| | Estimated Gross Cost(1) | Estimated Stabilization(1)(3) | Description |
| PIPELINE PROJECTS |
| Bergen Town Center - | | | |
| Phase II A | $10,000-11,000
| 2018-2019
| Develop parcel approved for 40,000± sf of retail |
| Phase II B | $5,000-6,000 | 2018-2019 | Replace underperforming tenants with better performing, higher rent paying tenants |
Phase III
| $16,000-18,000 | 2020
| Recapture space from and expand selected tenants; replace underperforming tenants; develop Rt. 4 pad if not used for garage entrance; develop Parcel I approved for 20,000± sf |
| Kearny | $7,000-8,000 | 2018 | Expanding by 20,000± sf and adding new pad |
| Montehiedra outparcel | $7,000-8,000 | 2019 | Developing 20,000± sf retail on excess land |
| Towson - Phase II | $5,000-6,000 | 2019 | Retenanting former hhgregg space |
| Garfield - Phase II | $4,000-5,000 | 2019 | Adding 15,000± sf of shop space |
| Morris Plains | $3,000-4,000 | 2018 | Release former supermarket space |
| West Babylon | $3,000-4,000 | 2018 | Developing 10,000± sf of shops |
| Huntington | $2,000-3,000 | 2018 | Converting 11,000± sf of basement space into street-front retail |
| Woodbridge | $2,000-3,000 | 2019 | Retenanting or converting building to pads |
| Mt. Kisco | $2,000-3,000 | 2019 | Converting existing restaurant to two or three smaller spaces including food offerings |
| Cherry Hill | $1,000-2,000 | 2018 | Developing approved pad for 5,000± sf of retail |
Multiple Pad Projects(2) | $1,000-2,000 | 2018 | Developing new pads |
| Gun Hill | $1,000-2,000 | 2019 | Expanding Aldi supermarket (lease executed); seeking public approvals |
| Rockaway | ±$1,000 | 2018 | Expanding supermarket |
| Total | $69,000-86,000 | (4) | |
(1) Estimated Stabilization and Estimated Gross Cost are subject to change from uncertainties inherent in the development process and not wholly under the Company's control.
(2) Multiple Pad Projects include possible new pads at the following properties: East Rutherford, Springfield, Morris Plains and North Bergen. These projects are on land leased to or controlled by anchors and require anchor collaboration.
(3) Estimated Stabilization reflects the first year in which Target Stabilization occurs. See footnote 2 on page 26.
(4) The estimated, unleveraged yield for Pipeline projects is 9% as of June 30, 2017 based on the total, estimated project costs of and the incremental, unleveraged NOI expected from the projects. The incremental, unleveraged NOI for Pipeline projects excludes NOI generated outside the project scope such as the impact on future lease rollovers or on the long-term value of the property.
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEBT SUMMARY | |
| As of June 30, 2017 and December 31, 2016 | | |
| (in thousands) | | |
| | | |
|
| | | | | | | |
| | June 30, 2017 | | December 31, 2016 |
| Fixed rate debt | $ | 1,292,849 |
| | $ | 1,166,804 |
|
| Variable rate debt | 127,756 |
| | 38,756 |
|
| Total debt | $ | 1,420,605 |
| | $ | 1,205,560 |
|
| | | | |
| % Fixed rate debt | 91.0 | % | | 96.8 | % |
| % Variable rate debt | 9.0 | % | | 3.2 | % |
| Total | 100 | % | | 100 | % |
| | | | |
| | | | |
| Secured mortgage debt | $ | 1,420,605 |
| | $ | 1,205,560 |
|
| Unsecured debt | — |
| | — |
|
| Total debt | $ | 1,420,605 |
| | $ | 1,205,560 |
|
| | | | |
| % Secured mortgage debt | 100 | % | | 100 | % |
| % Unsecured mortgage debt | N/A |
| | N/A |
|
| Total | 100 | % | | 100 | % |
| | | | |
| Weighted average remaining maturity on secured mortgage debt | 5.2 years |
| | 4.8 years |
|
| | | | |
| | | | |
| Total market capitalization (see page 16) | $ | 4,277,576 |
| | |
| | | | |
| % Secured mortgage debt | 33.2 | % | | |
| % Unsecured debt | — | % | | |
| Total debt : Total market capitalization | 33.2 | % | | |
| | | | |
| | | | |
Weighted average interest rate on secured mortgage debt(1) | 4.11 | % | | 4.20 | % |
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 March 2021 and has two six-month extension options.
|
| | |
| URBAN EDGE PROPERTIES | | |
| MORTGAGE DEBT SUMMARY | |
| As of June 30, 2017 (unaudited) and December 31, 2016 | | |
| (dollars in thousands) | | |
| | | |
|
| | | | | | | | | | | |
| Debt Instrument | Maturity Date | Rate | June 30, 2017 | December 31, 2016 | Percent of Debt at June 30, 2017 |
Englewood(3) | 10/1/18 | 6.22 | % | $ | 11,537 |
| $ | 11,537 |
| 0.8 | % |
Cross collateralized mortgage - Fixed(4) | 9/10/20 | 4.38 | % | 511,739 |
| 519,125 |
| 36.1 | % |
Cross collateralized mortgage - Variable(1)(4) | 9/10/20 | 2.36 | % | 38,756 |
| 38,756 |
| 2.7 | % |
Montehiedra, Puerto Rico (senior loan)(2) | 7/6/21 | 5.33 | % | 86,658 |
| 87,308 |
| 6.1 | % |
Montehiedra, Puerto Rico (junior loan)(2) | 7/6/21 | 3.00 | % | 30,000 |
| 30,000 |
| 2.1 | % |
Plaza at Cherry Hill(8) | 5/24/22 | 2.82 | % | 28,930 |
| — |
| 2.0 | % |
Westfield - One Lincoln(8) | 5/24/22 | 2.82 | % | 4,730 |
| — |
| 0.3 | % |
Plaza at Woodbridge(8) | 5/25/22 | 2.82 | % | 55,340 |
| — |
| 3.9 | % |
| Bergen Town Center | 4/8/23 | 3.56 | % | 300,000 |
| 300,000 |
| 21.1 | % |
| Shops at Bruckner | 5/1/23 | 3.90 | % | 12,443 |
| — |
| 0.9 | % |
Hudson Mall(7) | 12/1/23 | 5.07 | % | 25,333 |
| — |
| 1.8 | % |
| Yonkers Gateway Center | 4/6/24 | 4.16 | % | 33,967 |
| — |
| 2.4 | % |
| Las Catalinas | 8/6/24 | 4.43 | % | 130,000 |
| 130,000 |
| 9.2 | % |
| North Bergen (Tonnelle Avenue) | 4/1/27 | 4.18 | % | 100,000 |
| 73,951 |
| 7.0 | % |
| Manchester Plaza | 6/1/27 | 4.32 | % | 12,500 |
| — |
| 0.9 | % |
| Millburn Gateway Center | 6/1/27 | 3.97 | % | 24,000 |
| — |
| 1.7 | % |
Mount Kisco (Target)(5) | 11/15/34 | 6.40 | % | 14,672 |
| 14,883 |
| 1.0 | % |
| Total mortgage debt | | 4.11 | % | $ | 1,420,605 |
| $ | 1,205,560 |
| 100 | % |
| Unamortized debt issuance costs | | | (8,208 | ) | (8,047 | ) | |
| Total mortgage debt, net | | | $ | 1,412,397 |
| $ | 1,197,513 |
| |
|
| | | | | | | | | | | | | | | |
| DEBT MATURITY SCHEDULE | | | | |
| Year | Amortization | Balloon Payments | Premium/(Discount) Amortization | Total | Weighted Average Interest rate at maturity | Percent of debt maturing |
2017(6) | $ | 9,479 |
| $ | — |
| $ | 168 |
| $ | 9,647 |
| 4.5% | 0.7 | % |
| 2018 | 18,606 |
| 10,823 |
| 332 |
| 29,761 |
| 5.1% | 2.1 | % |
| 2019 | 20,065 |
| — |
| 332 |
| 20,397 |
| 4.4% | 1.4 | % |
| 2020 | 16,853 |
| 500,143 |
| 331 |
| 517,327 |
| 4.2% | 36.4 | % |
| 2021 | 6,015 |
| 116,658 |
| 330 |
| 123,003 |
| 4.7% | 8.7 | % |
| 2022 | 7,418 |
| 89,000 |
| 330 |
| 96,748 |
| 3.0% | 6.8 | % |
| 2023 | 7,820 |
| 329,433 |
| 307 |
| 337,560 |
| 3.7% | 23.8 | % |
| 2024 | 5,021 |
| 141,722 |
| (25 | ) | 146,718 |
| 4.4% | 10.3 | % |
| 2025 | 3,298 |
| — |
| (61 | ) | 3,237 |
| 4.7% | 0.2 | % |
| Thereafter | 13,520 |
| 123,225 |
| (538 | ) | 136,207 |
| 4.3% | 9.6 | % |
| Total | $ | 108,095 |
| $ | 1,311,004 |
| $ | 1,506 |
| $ | 1,420,605 |
| 4.1% | 100 | % |
| | Unamortized debt issuance costs | | (8,208 | ) | | |
| | Mortgage debt, net | | $ | 1,412,397 |
| | |
(1) Subject to a LIBOR floor of 1.00%, currently bears interest at LIBOR plus 136 bps.
(2) As part of the planned redevelopment of Montehiedra Town Center, the Company is committed to fund $20.0 million for leasing and building capital expenditures of which $19.3 million has been funded as of June 30, 2017.
(3) On March 30, 2015, we notified the lender that due to tenants vacating, the property’s operating cash flow would be insufficient to pay its debt service. As of June 30, 2017 we were in default and the property was transferred to receivership. The Company no longer manages the property but will remain its title owner until the receiver disposes of the property.
(4) See Property Status Report on page 22 for each property that comprises the cross collateralized mortgage loan.
(5) The mortgage payable balance on the loan secured by Mt. Kisco -Target includes $1.1 million of unamortized debt discount as of June 30, 2017 and December 31, 2016, respectively. The effective interest rate including amortization of the debt discount is 7.34% as of June 30, 2017.
(6) Remainder of 2017.
(7) The mortgage payable balance on the loan secured by Hudson Mall includes $1.6 million of unamortized debt premium as of June 30, 2017. The effective interest rate including amortization of the debt premium is 3.11% as of June 30, 2017.
(8) Bears interest at LIBOR plus 160 bps.
