Exhibit 99.2
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| URBAN EDGE PROPERTIES |
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| SUPPLEMENTAL DISCLOSURE |
| PACKAGE |
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| March 31, 2018 |
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| Urban Edge Properties |
| 888 7th Avenue, New York, NY 10019 |
| NY Office: 212-956-2556 |
| www.uedge.com |
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| URBAN EDGE PROPERTIES |
| SUPPLEMENTAL DISCLOSURE |
| March 31, 2018 |
| (unaudited) |
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| TABLE OF CONTENTS |
| | Page |
| Press Release | |
| First Quarter 2018 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 for Real Estate (EBITDAre) | 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 | 29 |
| Debt Maturity Schedule | 30 |
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| Urban Edge Properties | For additional information: |
| 888 Seventh Avenue | Mark Langer, EVP and |
| New York, NY 10019 | Chief Financial Officer |
| 212-956-2556 | |
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| | FOR IMMEDIATE RELEASE: | |
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Urban Edge Properties Reports First Quarter 2018 Results
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NEW YORK, NY, May 2, 2018 - Urban Edge Properties (NYSE:UE) (the "Company") today announced its results for the quarter ended March 31, 2018.
Financial Results(1)(2)
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| • | Generated net income of $23.0 million, or $0.18 per diluted share. |
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| • | Generated Funds from Operations applicable to diluted common shareholders ("FFO") of $44.1 million, or $0.35 per share. |
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| • | Generated FFO as Adjusted of $41.3 million or $0.33 per share, consistent with the first quarter of 2017. |
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| • | Increased current cash balance to $515 million, up nearly $400 million compared to March 31, 2017. |
Operating Results(1)
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| • | Increased same-property cash Net Operating Income (“NOI”) by 2.4% over the first quarter of 2017 due to rent commencements and higher recovery revenue. |
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| • | Increased same-property cash NOI including properties in redevelopment by 2.7% over the first quarter of 2017. |
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| • | Reported same-property retail portfolio occupancy of 98.2%, a decrease of 20 basis points compared to March 31, 2017 and 10 basis points from December 31, 2017. |
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| • | Reported consolidated retail portfolio occupancy of 96.1%, down 110 basis points compared to March 31, 2017 as a result of the acquisition of centers with lower occupancy than our existing portfolio in the second quarter of 2017. This metric increased 10 basis points compared to December 31, 2017. |
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| • | Executed 35 new leases, renewals and options totaling 597,000 square feet (sf). Same-space leases totaled 504,000 sf and generated average rent spreads of 12.8% on a GAAP basis and 6.9% on a cash basis. |
Leasing Activity
Leasing activity during the first quarter was strong. Approximately 151,000 sf of new leases were executed of which only four leases comprising 58,000 sf were on comparable same space locations including a 53,000 sf furniture store located in Glen Burnie, MD which negatively impacted the reported cash leasing spread. Eleven new leases comprising 93,000 sf were executed on newly created or redeveloped spaces for which the new cash rent averaged $41.54 psf.
Development, Redevelopment and Anchor Repositioning Activity
The Company is investing $363 million to renovate and remerchandise 27 of its properties. New retailers include ShopRite, Sprouts, Marshalls, Homesense, Burlington, Best Buy, Ulta, Five Below, Starbucks and Chick-fil-A. It has completed $64 million in projects in the last 12 months, has $206 million underway and has approximately $93 million in its pipeline. There are $200 million of remaining costs to complete these redevelopment projects. The Company expects to earn approximately 9% on its total investment.
The Company’s largest projects include Bergen Town Center and Bruckner Commons. At Bergen, Best Buy just opened its newest prototype store and construction is underway on a new 47,000 sf Burlington expected to open in April 2019. Enhanced food offerings include Cava Grill, Ruth’s Chris Steakhouse and a daytime café. At Bruckner, ShopRite and Burlington are opening this summer.
Disposition Activity
On April 26, 2018, the Company sold MacArthur Commons in Allentown, PA for $55 million, consistent with the plan to dispose of assets in non-core markets.
Balance Sheet Highlights at March 31, 2018(1)(3)(4)(5)
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| • | Total market capitalization of approximately $4.3 billion comprising 126.8 million, fully diluted common shares valued at $2.7 billion and $1.6 billion of debt. |
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| • | Net debt to total market capitalization of 26%. |
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| • | Net debt to Adjusted Earnings before interest, tax, depreciation and amortization for real estate ("EBITDAre") of 4.8x. |
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| • | $473.6 million of cash and cash equivalents, including restricted cash, 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 net income to FFO and FFO as Adjusted for the quarter ended March 31, 2018.
(3) Refer to page 7 for a reconciliation of net income to EBITDAre and annualized Adjusted EBITDAre for the quarter ended March 31, 2018.
(4) Net debt as of March 31, 2018 is calculated as total consolidated debt of $1.6 billion less total cash and cash equivalents, including restricted cash, of $473.6 million.
(5) Refer to page 16 for the calculation of market capitalization as of March 31, 2018.
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 shareholders 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 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 75 properties for the three months ended March 31, 2018 and 2017. 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, or under contract to be sold 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. 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. Same-property cash NOI may include other adjustments as detailed in the Reconciliation of Net Income to cash NOI and same-property cash NOI included in the tables accompanying this press release. |
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| • | EBITDAre and Adjusted EBITDAre: EBITDAre and Adjusted EBITDAre are supplemental, non-GAAP measures utilized by us in various financial ratios. The White Paper on EBITDAre, approved by NAREIT's Board of Governors in September 2017, defines EBITDAre as net income (computed in accordance with GAAP), adjusted for interest expense, income tax expense, depreciation and amortization, losses and gains on the disposition of depreciated property, impairment write-downs of depreciated property and investments in unconsolidated joint ventures, and adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures. EBITDAre and Adjusted EBITDAre 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 EBITDAre and Adjusted EBITDAre, 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 EBITDAre for the first quarter of 2018, and net debt (net of cash) to total market capitalization, which it believes is useful to investors as a supplemental measure in evaluating the Company's balance sheet leverage. The presentation of EBITDAre and Adjusted EBITDAre are consistent with EBITDA and Adjusted EBITDA as presented in prior periods. |
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 75 properties for the three months ended March 31, 2018 and 2017. 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, or under contract to be sold 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 quarter ended March 31, 2018. 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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| | Quarter Ended March 31, 2018 |
| | (in thousands) | | (per share) |
| Net income | $ | 23,039 |
| | $ | 0.18 |
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| Less net income attributable to noncontrolling interests in: | | | |
| Operating partnership | (2,328 | ) | | (0.02 | ) |
| Consolidated subsidiaries | (11 | ) | | — |
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| Net income attributable to common shareholders | 20,700 |
| | 0.16 |
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| Adjustments: | | | |
| Rental property depreciation and amortization | 21,072 |
| | 0.17 |
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| Limited partnership interests in operating partnership | 2,328 |
| | 0.02 |
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| FFO applicable to diluted common shareholders | 44,100 |
| | 0.35 |
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| Gain on extinguishment of debt | (2,524 | ) | | (0.02 | ) |
Casualty gain, net(2) | (580 | ) | | — |
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| Tenant bankruptcy settlement income | (164 | ) | | — |
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| Environmental remediation costs | 250 |
| | — |
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| Reduction of deferred tax asset related to hurricane | 168 |
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| FFO as Adjusted applicable to diluted common shareholders | $ | 41,250 |
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| $ | 0.33 |
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| Weighted average diluted shares used to calculate EPS | 113,864 |
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Assumed conversion of OP and LTIP Units to common shares(1) | 12,717 |
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| Weighted average diluted common shares - FFO | 126,581 |
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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 March 31, 2018 because their inclusion is anti-dilutive. FFO includes earnings allocated to unitholders as the inclusion of these units is dilutive to FFO per share.
(2) Casualty gain, net for the quarter ended March 31, 2018 includes:
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| (in thousands) | Quarter Ended
March 31, 2018 |
| Insurance proceeds, net of hurricane related expenses | $ | 1,341 |
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| Provision for doubtful accounts | (181 | ) |
| Property rental and tenant reimbursement losses | (580 | ) |
| Casualty gain, net | $ | 580 |
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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 quarter ended March 31, 2018 and 2017. 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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| | Quarter Ended March 31, |
| (Amounts in thousands) | 2018 | | 2017 |
| Net income | $ | 23,039 |
| | $ | 54,735 |
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| Management and development fee income from non-owned properties | (342 | ) | | (479 | ) |
| Other income | (77 | ) | | (64 | ) |
| Depreciation and amortization | 21,270 |
| | 15,828 |
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| General and administrative expense | 7,641 |
| | 8,132 |
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Casualty and impairment (gain) loss, net(5) | (1,341 | ) | | 3,164 |
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| Interest income | (1,524 | ) | | (127 | ) |
| Interest and debt expense | 15,644 |
| | 13,115 |
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| (Gain) loss on extinguishment of debt | (2,524 | ) | | 1,274 |
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| Income tax expense | 434 |
| | 320 |
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| Non-cash revenue and expenses | (2,289 | ) | | (40,801 | ) |
Cash NOI(1) | 59,931 |
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| 55,097 |
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| Adjustments: | | | |
Non-same property cash NOI(1)(2) | (12,474 | ) | | (8,334 | ) |
| Tenant bankruptcy settlement income | (164 | ) | | (27 | ) |
Hurricane related operating loss(3) | 306 |
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| Environmental remediation costs | 250 |
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| Same-property cash NOI | $ | 47,849 |
| | $ | 46,736 |
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Cash NOI related to properties being redeveloped(4) | 5,983 |
| | 5,693 |
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| Same-property cash NOI including properties in redevelopment | $ | 53,832 |
| | $ | 52,429 |
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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) Non-same property cash NOI includes cash NOI related to properties being redeveloped and properties acquired or disposed.
(3) Amount reflects rental and tenant reimbursement losses as well as provisions for outstanding amounts due from tenants at Las Catalinas that are subject to reimbursement from the insurance company.
(4) Excludes $0.5 million of rental and tenant reimbursement losses as well as provisions for outstanding amounts due from tenants at Montehiedra that are subject to reimbursement from the insurance company.
(5) Casualty and impairment gain of $1.3 million per the consolidated statements of income is comprised of a $1.5 million insurance gain net of $0.2 million hurricane-related expenses for the first quarter of 2018. Casualty and impairment loss for the first quarter of 2017 is comprised of a $3.2 million real estate impairment loss incurred related to our property in Eatontown, NJ sold in the second quarter of 2017.
Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre
The following table reflects the reconciliation of net income to EBITDAre and Adjusted EBITDAre for the quarter ended March 31, 2018. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of EBITDAre and Adjusted EBITDAre.
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| | Quarter Ended March 31, |
| (Amounts in thousands) | 2018 | | 2017 |
| Net income | $ | 23,039 |
| | $ | 54,735 |
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| Depreciation and amortization | 21,270 |
| | 15,828 |
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| Interest and debt expense | 15,644 |
| | 13,115 |
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| Income tax expense | 434 |
| | 320 |
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| Real estate impairment loss | — |
| | 3,164 |
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| EBITDAre | 60,387 |
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| 87,162 |
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| Adjustments for Adjusted EBITDAre: | | | |
Casualty gain, net(1) | (580 | ) | | — |
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Tenant bankruptcy settlement income
| (164 | ) | | (27 | ) |
| Environmental remediation costs | 250 |
| | — |
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| Transaction costs | — |
| | 51 |
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| (Gain) loss on extinguishment of debt | (2,524 | ) | | 1,274 |
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| Income from acquired leasehold interest | — |
| | (39,215 | ) |
| Adjusted EBITDAre | $ | 57,369 |
| | $ | 49,245 |
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(1) Refer to footnote 2 on page 5, Reconciliation of Net Income to FFO and FFO as Adjusted, for the adjustments included in Casualty gain, net for the quarter ended March 31, 2018.
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 88 properties totaling 16.3 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, the Company's ability to achieve the estimated unleveraged returns for such projects and acquisitions, the estimated remediation and repair costs related to Hurricane Maria at the affected properties. 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, 2017 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 March 31, 2018 | | | |
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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 quarter ended March 31, 2018 (unaudited) | |
| (in thousands, except per share, sf, rent psf and financial ratio data) | | |
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| | | Quarter ended |
| Summary Financial Results | | March 31, 2018 |
| Total revenue | | $ | 99,053 |
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| General & administrative expenses (G&A) | | $ | 7,641 |
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| Net income attributable to common shareholders | | $ | 20,700 |
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| Earnings per diluted share | | $ | 0.18 |
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Adjusted EBITDAre(7) | | $ | 57,369 |
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| Funds from operations (FFO) | | $ | 44,100 |
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| FFO per diluted common share | | $ | 0.35 |
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| FFO as Adjusted | | $ | 41,250 |
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| FFO as Adjusted per diluted common share | | $ | 0.33 |
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| Total dividends paid per share | | $ | 0.22 |
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| Stock closing price low-high range (NYSE) | | $20.45 to $25.59 |
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Weighted average diluted shares used in EPS computations(1) | | 113,864 |
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Weighted average diluted common shares used in FFO computations(1) | | 126,581 |
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| Summary Property, Operating and Financial Data | | |
| # of Total properties / # of Retail properties | | 89 / 88 |
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Gross leasable area (GLA) sf - retail portfolio(3)(5) | | 15,713,000 |
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Weighted average annual rent psf - retail portfolio(3)(5) | | $ | 17.41 |
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| Consolidated occupancy at end of period | | 96.3 | % |
Consolidated retail portfolio occupancy at end of period(5) | | 96.1 | % |
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) | | 98.1 | % |
Same-property cash NOI growth(2) | | 2.4 | % |
| Same-property cash NOI growth, including redevelopment properties | | 2.7 | % |
| Cash NOI margin - total portfolio | | 62.4 | % |
| Expense recovery ratio - total portfolio | | 98.3 | % |
New, renewal and option rent spread - cash basis(8) | | 6.9 | % |
New, renewal and option rent spread - GAAP basis(9) | | 12.8 | % |
Net debt to total market capitalization(6) | | 25.6 | % |
Net debt to Adjusted EBITDAre(6) | | 4.8 | x |
Adjusted EBITDAre to interest expense(7) | | 3.8 | x |
Adjusted EBITDAre to fixed charges(7) | | 3.6 | x |
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(1) Weighted average diluted common shares used to calculate FFO per share and FFO as Adjusted per share for the period presented include OP and LTIP Units, which are excluded from the calculation of earnings per diluted share for the period presented because their inclusion is anti-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 and redevelopment, acquired, sold, or under contract to be sold 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 $16.69.
(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. Adjusted EBITDAre is annualized for purposes of calculating net debt to Adjusted EBITDAre.
(7) See computation on page 14.
(8) Rents have not been calculated on a straight-line basis. Previous/expiring rent is the rent at expiry and includes any percentage rent paid. New rent is the rent paid at commencement.
(9) Rents are calculated on a straight-line ("GAAP") basis. See computation on page 19.
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| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED BALANCE SHEETS | | |
| As of March 31, 2018 (unaudited) and December 31, 2017 | | |
| (in thousands, except share and per share amounts) | | |
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| | March 31, | | December 31, |
| | 2018 | | 2017 |
| ASSETS | | | |
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| Real estate, at cost: | |
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| Land | $ | 523,798 |
| | $ | 521,669 |
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| Buildings and improvements | 2,005,590 |
| | 2,010,527 |
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| Construction in progress | 165,403 |
| | 133,761 |
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| Furniture, fixtures and equipment | 5,996 |
| | 5,897 |
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| Total | 2,700,787 |
| | 2,671,854 |
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| Accumulated depreciation and amortization | (601,729 | ) | | (587,127 | ) |
| Real estate, net | 2,099,058 |
| | 2,084,727 |
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| Cash and cash equivalents | 462,774 |
| | 490,279 |
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| Restricted cash | 10,817 |
| | 10,562 |
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| Tenant and other receivables, net of allowance for doubtful accounts of $5,854 and $4,937, respectively | 21,564 |
| | 20,078 |
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| Receivable arising from the straight-lining of rents, net of allowance for doubtful accounts of $528 and $494, respectively | 85,727 |
| | 85,843 |
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| Identified intangible assets, net of accumulated amortization of $36,629 and $33,827, respectively | 82,787 |
| | 87,249 |
|
| Deferred leasing costs, net of accumulated amortization of $15,390 and $14,796, respectively | 20,422 |
| | 20,268 |
|
| Deferred financing costs, net of accumulated amortization of $1,998 and $1,740, respectively | 2,985 |
| | 3,243 |
|
| Prepaid expenses and other assets | 17,244 |
| | 18,559 |
|
| Total assets | $ | 2,803,378 |
| | $ | 2,820,808 |
|
| | | | |
| LIABILITIES AND EQUITY | |
| | |
|
| Liabilities: | | | |
| Mortgages payable, net | $ | 1,552,543 |
| | $ | 1,564,542 |
|
| Identified intangible liabilities, net of accumulated amortization of $66,866 and $65,832, respectively | 176,770 |
| | 180,959 |
|
| Accounts payable and accrued expenses | 71,061 |
| | 69,595 |
|
| Other liabilities | 15,574 |
| | 15,171 |
|
| Total liabilities | 1,815,948 |
| | 1,830,267 |
|
| Commitments and contingencies | | | |
| Shareholders’ equity: | | | |
| Common shares: $0.01 par value; 500,000,000 shares authorized and 113,923,724 and 113,827,529 shares issued and outstanding, respectively | 1,139 |
| | 1,138 |
|
| Additional paid-in capital | 947,815 |
| | 946,402 |
|
| Accumulated deficit | (61,975 | ) | | (57,621 | ) |
| Noncontrolling interests: | | | |
| Operating partnership | 100,036 |
| | 100,218 |
|
| Consolidated subsidiaries | 415 |
| | 404 |
|
| Total equity | 987,430 |
| | 990,541 |
|
| Total liabilities and equity | $ | 2,803,378 |
| | $ | 2,820,808 |
|
|
| | |
| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED STATEMENTS OF INCOME | | |
| For the quarter ended March 31, 2018 and 2017 (unaudited) | |
| (in thousands, except share and per share amounts) | | |
| | | |
|
| | | | | | | |
| | Quarter Ended March 31, |
| | 2018 | | 2017 |
| REVENUE | | | |
| Property rentals | $ | 69,722 |
| | $ | 62,498 |
|
| Tenant expense reimbursements | 28,672 |
| | 23,771 |
|
| Management and development fees | 342 |
| | 479 |
|
| Income from acquired leasehold interest | — |
| | 39,215 |
|
| Other income | 317 |
| | 101 |
|
| Total revenue | 99,053 |
| | 126,064 |
|
| EXPENSES | | | |
| Depreciation and amortization | 21,270 |
| | 15,828 |
|
| Real estate taxes | 15,775 |
| | 13,392 |
|
| Property operating | 16,667 |
| | 13,368 |
|
| General and administrative | 7,641 |
| | 8,132 |
|
| Casualty and impairment (gain) loss, net | (1,341 | ) | | 3,164 |
|
| Ground rent | 2,736 |
| | 2,670 |
|
| Provision for doubtful accounts | 1,236 |
| | 193 |
|
| Total expenses | 63,984 |
| | 56,747 |
|
| Operating income | 35,069 |
| | 69,317 |
|
| Interest income | 1,524 |
| | 127 |
|
| Interest and debt expense | (15,644 | ) | | (13,115 | ) |
| Gain (loss) on extinguishment of debt | 2,524 |
| | (1,274 | ) |
| Income before income taxes | 23,473 |
| | 55,055 |
|
| Income tax expense | (434 | ) | | (320 | ) |
| Net income | 23,039 |
| | 54,735 |
|
| Less net income attributable to noncontrolling interests in: | | | |
| Operating partnership | (2,328 | ) | | (4,138 | ) |
| Consolidated subsidiaries | (11 | ) | | (11 | ) |
| Net income attributable to common shareholders | $ | 20,700 |
| | $ | 50,586 |
|
| | | | |
| Earnings per common share - Basic: | $ | 0.18 |
| | $ | 0.51 |
|
| Earnings per common share - Diluted: | $ | 0.18 |
| | $ | 0.50 |
|
| Weighted average shares outstanding - Basic | 113,677 |
| | 99,639 |
|
| Weighted average shares outstanding - Diluted | 113,864 |
| | 100,093 |
|
|
| | |
| URBAN EDGE PROPERTIES | | |
| SUPPLEMENTAL SCHEDULE OF NET OPERATING INCOME | | |
| For the quarter ended March 31, 2018 and 2017 | |
| (in thousands) | | |
| | | |
|
| | | | | | | | | |
| | Quarter Ended
March 31, | | Percent Change |
| | 2018 | | 2017 | |
Total cash NOI(1) | | | | | |
| Total revenue | $ | 96,049 |
| | $ | 84,361 |
| | 13.9% |
| Total property operating expenses | (36,118 | ) | | (29,264 | ) | | 23.4% |
| Cash NOI - total portfolio | $ | 59,931 |
| | $ | 55,097 |
| | 8.8% |
| | | | | | |
| NOI margin (NOI / Total revenue) | 62.4 | % | | 65.3 | % | | |
| | | | | | |
| | | | | | |
Same-property cash NOI(2) | | | | | |
| Property rentals | $ | 52,086 |
| | $ | 50,864 |
| | |
| Tenant expense reimbursements | 22,850 |
| | 20,680 |
| | |
| Total revenue | 74,936 |
|
| 71,544 |
| |
|
| Real estate taxes | (12,623 | ) | | (11,810 | ) | | |
| Property operating | (11,623 | ) | | (10,687 | ) | | |
| Ground rent | (2,271 | ) | | (2,247 | ) | | |
| Provision for doubtful accounts | (570 | ) | | (64 | ) | | |
| Total property operating expenses | (27,087 | ) | | (24,808 | ) | |
|
Same-property cash NOI(3)(4) | $ | 47,849 |
| | $ | 46,736 |
| | 2.4% |
| | | | | | |
| Cash NOI related to properties being redeveloped | $ | 5,983 |
| | $ | 5,693 |
| | |
Same-property cash NOI including properties in redevelopment(4) | $ | 53,832 |
| | $ | 52,429 |
| | 2.7% |
| | | | | | |
Same-property physical occupancy(3) | 98.1 | % | | 96.6 | % | | |
Same-property leased occupancy(3) | 98.2 | % | | 98.4 | % | | |
| Number of properties included in same-property analysis | 75 |
| | | | |
| | | | | | |
(1) Total revenue includes tenant bankruptcy settlement income and lease termination fees and excludes management and development fee income and non-cash amounts. Property operating expenses exclude non-cash amounts.
(2) Excludes management and development fee income, lease termination fees, bankruptcy settlement income, non-cash rental income, non-cash ground rent expenses and income and 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 and redevelopment, acquired, sold, or under contract to be sold during the periods being compared. Same-property occupancy includes dark but rent-paying tenants.
(4) Same-property cash NOI and same-property cash NOI including properties in redevelopment for the quarter ended March 31, 2018, exclude the following losses as a result of Hurricane Maria which will be included in our insurance claim submission:
|
| | | | | | | | | | | |
| | Excluded from Same-property Cash NOI (Las Catalinas) | | Excluded from Same-property Cash NOI including redevelopment (Montehiedra) | | Total |
| Revenue | | | | | |
| Property rentals | $ | 77 |
| | $ | 425 |
| | $ | 502 |
|
| Tenant expense reimbursements | 44 |
| | 34 |
| | 78 |
|
| Operating expenses | | | | | |
| Provision for doubtful accounts | 185 |
| | (4 | ) | | 181 |
|
| Total casualty losses excluded | $ | 306 |
| | $ | 455 |
| | $ | 761 |
|
|
| | |
| URBAN EDGE PROPERTIES | | |
| EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION and AMORTIZATION for REAL ESTATE (EBITDAre) |
| For the quarter ended March 31, 2018 and 2017 | |
| (in thousands) | | |
| | | |
|
| | | | | | | |
| | Quarter Ended March 31, |
| | 2018 | | 2017 |
| Net income | $ | 23,039 |
| | $ | 54,735 |
|
| Depreciation and amortization | 21,270 |
| | 15,828 |
|
| Interest expense | 14,922 |
| | 12,251 |
|
| Amortization of deferred financing costs | 722 |
| | 864 |
|
| Income tax expense | 434 |
| | 320 |
|
| Real estate impairment loss | — |
| | 3,164 |
|
| EBITDAre | 60,387 |
|
| 87,162 |
|
| Adjustments for Adjusted EBITDAre: | | | |
Casualty gain, net(1) | (580 | ) | | — |
|
| Environmental remediation costs | 250 |
| | — |
|
| Transaction costs | — |
| | 51 |
|
| (Gain) loss on extinguishment of debt | (2,524 | ) | | 1,274 |
|
Tenant bankruptcy settlement income
| (164 | ) | | (27 | ) |
| Income from acquired leasehold interest | — |
| | (39,215 | ) |
| Adjusted EBITDAre | $ | 57,369 |
| | $ | 49,245 |
|
| | | | |
| Interest expense | $ | 14,922 |
| | $ | 12,251 |
|
| | | | |
| Adjusted EBITDAre to interest expense | 3.8 | x | | 4.0 | x |
| | | | |
| Fixed charges | | | |
| Interest expense | $ | 14,922 |
| | $ | 12,251 |
|
| Scheduled principal amortization | 869 |
| | 4,636 |
|
| Total fixed charges | $ | 15,791 |
| | $ | 16,887 |
|
| | | | |
| Adjusted EBITDAre to fixed charges | 3.6 | x | | 2.9 | x |
| | | | |
(1) Refer to footnote 2 on page 5, Reconciliation of Net Income to FFO and FFO as Adjusted, for the adjustments included in Casualty gain, net for the quarter ended March 31, 2018.
|
| | |
| URBAN EDGE PROPERTIES | | |
| FUNDS FROM OPERATIONS | |
| For the quarter ended March 31, 2018 and 2017 | |
| (in thousands, except per share amounts) | | |
| | | |
|
| | | | | | | |
| | Quarter Ended March 31, |
| | 2018 | | 2017 |
| Net income | $ | 23,039 |
| | $ | 54,735 |
|
| Less net income attributable to noncontrolling interests in: | | | |
| Operating partnership | (2,328 | ) | | (4,138 | ) |
| Consolidated subsidiaries | (11 | ) | | (11 | ) |
| Net income attributable to common shareholders | 20,700 |
| | 50,586 |
|
| Adjustments: | | | |
| Rental property depreciation and amortization | 21,072 |
| | 15,579 |
|
| Real estate impairment loss | — |
| | 3,164 |
|
Limited partnership interests in operating partnership(1) | 2,328 |
| | 4,138 |
|
| FFO Applicable to diluted common shareholders | 44,100 |
|
| 73,467 |
|
FFO per diluted common share(2) | 0.35 |
| | 0.68 |
|
| Adjustments to FFO: | | | |
Casualty gain, net(3) | (580 | ) | | — |
|
| Tenant bankruptcy settlement income | (164 | ) | | (27 | ) |
| Environmental remediation costs | 250 |
| | — |
|
| Reduction of deferred tax asset related to hurricane | 168 |
| | — |
|
| Transaction costs | — |
| | 51 |
|
| (Gain) loss on extinguishment of debt | (2,524 | ) | | 1,274 |
|
| Income from acquired leasehold interest | — |
| | (39,215 | ) |
| FFO as Adjusted applicable to diluted common shareholders | $ | 41,250 |
|
| $ | 35,550 |
|
FFO as Adjusted per diluted common share(2) | $ | 0.33 |
| | $ | 0.33 |
|
| | | | |
Weighted Average diluted common shares(2) | 126,581 |
| | 108,255 |
|
(1) Represents earnings allocated to LTIP and OP unit holders for unissued common shares which have been excluded for purposes of calculating earnings per diluted share for the periods presented. FFO applicable to diluted common shareholders and FFO as Adjusted applicable to diluted common shareholders calculations include earnings allocated to LTIP and OP unit holders and the respective weighted average share totals include the redeemable shares outstanding as their inclusion is dilutive.
(2) Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share for the periods presented 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 shares for the three months ended March 31, 2018 and 2017, respectively. These redeemable units are not included in the weighted average diluted share count for GAAP purposes because their inclusion is anti-dilutive.
(3) Refer to footnote 2 on page 5, Reconciliation of Net Income to FFO and FFO as Adjusted, for the adjustments included in Casualty gain, net for the quarter ended March 31, 2018.
|
| | |
| URBAN EDGE PROPERTIES | | |
| MARKET CAPITALIZATION, DEBT RATIOS AND LIQUIDITY | | |
| As of March 31, 2018 | | |
| (in thousands, except share amounts) | | |
| | | |
|
| | | |
| | March 31, 2018 |
| Closing market price of common shares | $ | 21.35 |
|
| | |
| Basic common shares | 113,923,724 |
|
| OP and LTIP units | 12,840,764 |
|
| Diluted common shares | 126,764,488 |
|
| | |
| Equity market capitalization | $ | 2,706,422 |
|
| | |
| | |
Total consolidated debt(1) | $ | 1,565,829 |
|
| Cash and cash equivalents including restricted cash | (473,591 | ) |
| Net debt | $ | 1,092,238 |
|
| | |
| Net Debt to annualized Adjusted EBITDAre | 4.8 | x |
| | |
Total consolidated debt(1) | $ | 1,565,829 |
|
| Equity market capitalization | 2,706,422 |
|
| Total market capitalization | $ | 4,272,251 |
|
| | |
| Net debt to total market capitalization at applicable market price | 25.6 | % |
| | |
| | |
| Cash and cash equivalents including restricted cash | $ | 473,591 |
|
| Available under unsecured credit facility | 600,000 |
|
| Total liquidity | $ | 1,073,591 |
|
| | |
(1) Total consolidated debt excludes unamortized debt issuance costs of $13.3 million.
|
| | |
| URBAN EDGE PROPERTIES | | |
| ADDITIONAL DISCLOSURES | |
| (in thousands) | | |
| | | |
|
| | | | | | | | |
| | | Quarter Ended
March 31, |
| | | 2018 | | 2017 |
| Certain non-cash items: | | | |
|
Straight-line rental income(1) | | $ | (48 | ) | | $ | (90 | ) |
Amortization of below-market lease intangibles, net(1) | | 2,633 |
| | 2,036 |
|
Straight-line ground rent expense(2) | | (18 | ) | | (54 | ) |
Amortization of below-market lease intangibles, lessee(2) | | (243 | ) | | (360 | ) |
Amortization of deferred financing costs(4) | | (722 | ) | | (864 | ) |
| Capitalized interest | | 1,154 |
| | 940 |
|
Share-based compensation expense(3) | | (2,020 | ) | | (1,484 | ) |
| | | | | |
Capital expenditures: (5) | | | | |
| Development and redevelopment costs | | $ | 26,579 |
| | $ | 9,248 |
|
| Maintenance capital expenditures | | 643 |
| | 656 |
|
| Leasing commissions | | 530 |
| | 200 |
|
| Tenant improvements and allowances | | 894 |
| | 1,246 |
|
| Total capital expenditures | | $ | 28,646 |
| | $ | 11,350 |
|
| | | | | |
| | | March 31, 2018 | | December 31, 2017 |
| Other Liabilities: | | | | |
| Deferred ground rent expense | | $ | 6,517 |
| | $ | 6,499 |
|
| Deferred tax liability, net | | 3,073 |
| | 2,828 |
|
| Other | | 5,984 |
| | 5,844 |
|
| Total other liabilities | | $ | 15,574 |
| | $ | 15,171 |
|
| | | | | |
| Accounts payable and accrued expenses: | | | | |
| Tenant prepaid/deferred revenue | | $ | 18,924 |
| | $ | 24,414 |
|
| Accrued capital expenditures and leasing costs | | 25,086 |
| | 16,438 |
|
| Accrued interest payable | | 7,924 |
| | 9,018 |
|
| Security deposits | | 5,333 |
| | 5,272 |
|
| Other | | 13,794 |
| | 14,453 |
|
| Total accounts payable and accrued expenses | | $ | 71,061 |
| | $ | 69,595 |
|
(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 March 31, 2018 | | |
| | | |
| | | |
|
| | | | | | | | | | | | | |
| | | | | | | | |
| Tenant | Number of stores | Square feet | % of total square feet | Annualized base rent ("ABR") | % of total ABR | Weighted average ABR per square foot | Average remaining term of ABR(1) |
| The Home Depot, Inc. | 7 |
| 920,226 |
| 5.7% | $ | 16,224,371 |
| 6.0% | $ | 17.63 |
| 14.7 |
| Wal-Mart Stores, Inc. | 9 |
| 1,438,730 |
| 8.9% | 10,726,552 |
| 4.0% | 7.46 |
| 8.0 |
The TJX Companies, Inc.(2) | 17 |
| 607,105 |
| 3.8% | 10,134,867 |
| 3.8% | 16.69 |
| 3.8 |
| Best Buy Co., Inc. | 9 |
| 400,578 |
| 2.5% | 9,171,829 |
| 3.4% | 22.90 |
| 6.2 |
| Lowe's Companies, Inc. | 6 |
| 976,415 |
| 6.0% | 8,575,004 |
| 3.2% | 8.78 |
| 9.5 |
Ahold Delhaize(3) | 9 |
| 655,618 |
| 4.1% | 8,040,606 |
| 3.0% | 12.26 |
| 5.5 |
| Kohl's Corporation | 8 |
| 716,345 |
| 4.4% | 6,995,847 |
| 2.6% | 9.77 |
| 5.2 |
| PetSmart, Inc. | 12 |
| 287,493 |
| 1.8% | 6,740,340 |
| 2.5% | 23.45 |
| 5.2 |
| BJ's Wholesale Club | 4 |
| 454,297 |
| 2.8% | 5,278,625 |
| 2.0% | 11.62 |
| 8.6 |
Sears Holdings Corporation(4) | 4 |
| 547,443 |
| 3.4% | 5,244,737 |
| 2.0% | 9.58 |
| 28.1 |
Toys "R" Us, Inc.(5) | 9 |
| 398,391 |
| 2.5% | 5,196,238 |
| 1.9% | 13.04 |
| 4.6 |
| Wakefern (ShopRite) | 4 |
| 265,997 |
| 1.6% | 4,081,721 |
| 1.5% | 15.34 |
| 11.7 |
Staples, Inc.
| 9 |
| 186,030 |
| 1.2% | 3,940,498 |
| 1.5% | 21.18 |
| 2.7 |
The Gap, Inc.(6) | 8 |
| 123,784 |
| 0.8% | 3,534,801 |
| 1.3% | 28.56 |
| 3.7 |
| Target Corporation | 2 |
| 297,856 |
| 1.8% | 3,448,666 |
| 1.3% | 11.58 |
| 14.0 |
| Century 21 | 1 |
| 156,649 |
| 1.0% | 3,394,181 |
| 1.3% | 21.67 |
| 8.8 |
| Whole Foods Market, Inc. | 2 |
| 100,682 |
| 0.6% | 3,365,570 |
| 1.3% | 33.43 |
| 9.7 |
Dick's Sporting Goods, Inc.(7) | 4 |
| 167,786 |
| 1.0% | 3,356,429 |
| 1.2% | 20.00 |
| 3.5 |
| LA Fitness International LLC | 4 |
| 181,342 |
| 1.1% | 3,165,032 |
| 1.2% | 17.45 |
| 9.2 |
| Bob's Discount Furniture | 4 |
| 163,820 |
| 1.0% | 3,008,485 |
| 1.1% | 18.36 |
| 3.2 |
| 24 Hour Fitness | 1 |
| 53,750 |
| 0.3% | 2,564,520 |
| 1.0% | 47.71 |
| 13.8 |
| National Wholesale Liquidators | 1 |
| 171,216 |
| 1.1% | 2,270,346 |
| 0.8% | 13.26 |
| 4.8 |
| URBN (Anthropologie) | 1 |
| 31,450 |
| 0.2% | 2,201,500 |
| 0.8% | 70.00 |
| 10.5 |
| Petco Animal Supplies, Inc. | 8 |
| 126,875 |
| 0.8% | 2,194,448 |
| 0.8% | 17.30 |
| 4.9 |
| Burlington Stores, Inc. | 4 |
| 306,181 |
| 1.9% | 2,189,728 |
| 0.8% | 7.15 |
| 8.2 |
| | | | | | | | |
| Total/Weighted Average | 147 |
| 9,736,059 |
| 60.3% | $ | 135,044,941 |
| 50.3% | $ | 13.87 |
| 8.6 |
| | | | | | | | |
(1) In years excluding tenant renewal options. The weighted average is based on 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).
Note: Amounts shown in the table above include all retail properties including those in redevelopment on a cash basis other than tenants in free rent periods which are shown at their initial cash rent.
|
| | |
| URBAN EDGE PROPERTIES | | |
| LEASING ACTIVITY | |
| For the quarter ended March 31, 2018 | |
| | | |
| | | |
|
| | | | | | | |
| | Quarter ended March 31, 2018 |
| | GAAP(3) | | Cash(2) |
| New leases | | | |
| Number of new leases executed | 15 |
| | 15 |
|
| Total square feet | 150,768 |
| | 150,768 |
|
Number of same space leases(1) | 4 |
| | 4 |
|
| Same space square feet | 57,597 |
| | 57,597 |
|
| Prior rent per square foot | $ | 10.37 |
| | $ | 11.03 |
|
| New rent per square foot | $ | 9.92 |
| | $ | 9.19 |
|
| Same space weighted average lease term (years) | 10.0 |
| | 10.0 |
|
Same space TIs per square foot(4) | N/A |
| | $ | 1.51 |
|
| Rent spread | (4.3 | )% | | (16.7 | )% |
| | | | |
| Renewals & Options | | | |
| Number of new leases executed | 20 |
| | 20 |
|
| Total square feet | 446,604 |
| | 446,604 |
|
Number of same space leases(1) | 20 |
| | 20 |
|
| Same space square feet | 446,604 |
| | 446,604 |
|
| Prior rent per square foot | $ | 12.45 |
| | $ | 12.85 |
|
| New rent per square foot | $ | 14.27 |
| | $ | 14.07 |
|
| Same space weighted average lease term (years) | 5.7 |
| | 5.7 |
|
Same space TIs per square foot(4) | N/A |
| | $ | 1.12 |
|
| Rent spread | 14.6 | % | | 9.5 | % |
| | | | |
| Total New Leases and Renewals & Options | | | |
| Number of new leases executed | 35 |
| | 35 |
|
| Total square feet | 597,372 |
| | 597,372 |
|
Number of same space leases(1) | 24 |
| | 24 |
|
| Same space square feet | 504,201 |
| | 504,201 |
|
| Prior rent per square foot | $ | 12.21 |
| | $ | 12.64 |
|
| New rent per square foot | $ | 13.77 |
| | $ | 13.51 |
|
| Same space weighted average lease term (years) | 6.2 |
| | 6.2 |
|
Same space TIs per square foot(4) | N/A |
| | $ | 1.16 |
|
| Rent spread | 12.8 | % | | 6.9 | % |
(1) Leases executed on a same space basis include leases with comparable sf and with prior occupancy.
(2) Rents are not calculated on a straight-line (GAAP) basis. Previous/expiring rent is the rent at expiry and includes any percentage rent paid. New rent is the rent paid at commencement.
(3) Rents are calculated on a straight-line (GAAP) basis.
(4) Includes both tenant improvements and landlord contributions.
|
| | |
| URBAN EDGE PROPERTIES | | |
| RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE | |
| As of March 31, 2018 | | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | ANCHOR TENANTS (SF>=10,000) | SHOP TENANTS (SF<10,000) | TOTAL TENANTS |
Year(1) | # of leases | Square Feet | % of Total SF | Weighted Avg ABR PSF(2) | # of leases | Square Feet | % of Total SF | Weighted Avg ABR PSF(2) | # of leases | Square Feet | % of Total SF | Weighted Avg ABR PSF(2) |
| | | | | | | | | | | | | |
| M-T-M | — |
| — |
| — | % | $ | — |
| 30 |
| 72,000 |
| 3.0% | $ | 34.79 |
| 30 |
| 72,000 |
| 0.5 | % | $ | 34.79 |
|
| 2018 | 6 |
| 228,000 |
| 1.7 | % | 9.92 |
| 59 |
| 160,000 |
| 6.7% | 34.20 |
| 65 |
| 388,000 |
| 2.5 | % | 19.94 |
|
| 2019 | 29 |
| 991,000 |
| 7.4 | % | 15.91 |
| 98 |
| 300,000 |
| 12.7% | 33.50 |
| 127 |
| 1,291,000 |
| 8.2 | % | 20.00 |
|
| 2020 | 33 |
| 1,163,000 |
| 8.7 | % | 15.22 |
| 70 |
| 235,000 |
| 9.9% | 36.59 |
| 103 |
| 1,398,000 |
| 8.9 | % | 18.81 |
|
| 2021 | 29 |
| 865,000 |
| 6.5 | % | 19.01 |
| 62 |
| 198,000 |
| 8.4% | 35.34 |
| 91 |
| 1,063,000 |
| 6.8 | % | 22.05 |
|
| 2022 | 26 |
| 1,221,000 |
| 9.1 | % | 11.57 |
| 73 |
| 203,000 |
| 8.6% | 32.98 |
| 99 |
| 1,424,000 |
| 9.1 | % | 14.62 |
|
| 2023 | 35 |
| 1,663,000 |
| 12.5 | % | 15.52 |
| 39 |
| 138,000 |
| 5.8% | 32.76 |
| 74 |
| 1,801,000 |
| 11.4 | % | 16.84 |
|
| 2024 | 30 |
| 1,472,000 |
| 11.0 | % | 13.61 |
| 37 |
| 137,000 |
| 5.8% | 28.85 |
| 67 |
| 1,609,000 |
| 10.2 | % | 14.91 |
|
| 2025 | 9 |
| 502,000 |
| 3.8 | % | 13.61 |
| 33 |
| 96,000 |
| 4.1% | 37.30 |
| 42 |
| 598,000 |
| 3.8 | % | 17.41 |
|
| 2026 | 8 |
| 508,000 |
| 3.8 | % | 8.92 |
| 48 |
| 158,000 |
| 6.7% | 28.67 |
| 56 |
| 666,000 |
| 4.2 | % | 13.60 |
|
| 2027 | 17 |
| 643,000 |
| 4.8 | % | 15.57 |
| 38 |
| 179,000 |
| 7.6% | 37.12 |
| 55 |
| 822,000 |
| 5.2 | % | 20.26 |
|
| 2028 | 11 |
| 408,000 |
| 3.1 | % | 23.51 |
| 31 |
| 105,000 |
| 4.4% | 36.03 |
| 42 |
| 513,000 |
| 3.3 | % | 26.07 |
|
| Thereafter | 41 |
| 3,352,000 |
| 25.1 | % | 14.02 |
| 20 |
| 102,000 |
| 4.3% | 40.05 |
| 61 |
| 3,454,000 |
| 22.0 | % | 14.79 |
|
| Subtotal/Average | 274 |
| 13,016,000 |
| 97.5 | % | $ | 14.63 |
| 638 |
| 2,083,000 |
| 88.0% | $ | 34.79 |
| 912 |
| 15,099,000 |
| 96.1 | % | $ | 17.41 |
|
| Vacant | 14 |
| 331,000 |
| 2.5 | % | N/A |
| 108 |
| 283,000 |
| 12.0% | N/A |
| 122 |
| 614,000 |
| 3.9 | % | N/A |
|
| Total/Average | 288 |
| 13,347,000 |
| 100 | % | N/A |
| 746 |
| 2,366,000 |
| 100% | N/A |
| 1,034 |
| 15,713,000 |
| 100 | % | N/A |
|
| | | | | | | | | | | | | |
(1) Year of expiration excludes tenant renewal options.
(2) Weighted average annual base rent per square foot is calculated by annualizing tenants' in-place, contractual, cash-basis rent including ground rent and excludes tenant reimbursements, 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 $5.87 per square foot as of March 31, 2018.
|
| | |
| URBAN EDGE PROPERTIES | | |
| RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE ASSUMING EXERCISE OF ALL RENEWALS AND OPTIONS |
| As of March 31, 2018 | | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | ANCHOR TENANTS (SF>=10,000) | SHOP TENANTS (SF<10,000) | TOTAL TENANTS |
Year(1) | # of leases | Square Feet | % of Total SF | Weighted Avg ABR PSF(2) | # of leases | Square Feet | % of Total SF | Weighted Avg ABR PSF(2) | # of leases | Square Feet | % of Total SF | Weighted Avg ABR PSF(2) |
| | | | | | | | | | | | | |
| M-T-M | — |
| — |
| — | % | $ | — |
| 30 |
| 72,000 |
| 3.0% | $ | 34.95 |
| 30 |
| 72,000 |
| 0.5 | % | $ | 34.95 |
|
| 2018 | 3 |
| 63,000 |
| 0.5 | % | 17.14 |
| 53 |
| 139,000 |
| 5.9% | 36.03 |
| 56 |
| 202,000 |
| 1.3 | % | 30.14 |
|
| 2019 | 8 |
| 306,000 |
| 2.3 | % | 10.29 |
| 67 |
| 177,000 |
| 7.5% | 36.74 |
| 75 |
| 483,000 |
| 3.1 | % | 19.98 |
|
| 2020 | 6 |
| 104,000 |
| 0.8 | % | 22.32 |
| 53 |
| 155,000 |
| 6.5% | 42.04 |
| 59 |
| 259,000 |
| 1.6 | % | 34.12 |
|
| 2021 | 6 |
| 121,000 |
| 0.9 | % | 18.25 |
| 42 |
| 108,000 |
| 4.5% | 37.16 |
| 48 |
| 229,000 |
| 1.4 | % | 27.17 |
|
| 2022 | 4 |
| 92,000 |
| 0.7 | % | 8.24 |
| 43 |
| 116,000 |
| 4.9% | 37.02 |
| 47 |
| 208,000 |
| 1.3 | % | 24.29 |
|
| 2023 | 10 |
| 434,000 |
| 3.2 | % | 17.33 |
| 25 |
| 90,000 |
| 3.8% | 32.11 |
| 35 |
| 524,000 |
| 3.3 | % | 19.87 |
|
| 2024 | 12 |
| 266,000 |
| 2.0 | % | 16.70 |
| 46 |
| 141,000 |
| 6.0% | 34.75 |
| 58 |
| 407,000 |
| 2.6 | % | 22.95 |
|
| 2025 | 10 |
| 329,000 |
| 2.5 | % | 19.84 |
| 30 |
| 96,000 |
| 4.0% | 34.63 |
| 40 |
| 425,000 |
| 2.7 | % | 23.18 |
|
| 2026 | 7 |
| 184,000 |
| 1.4 | % | 14.52 |
| 43 |
| 123,000 |
| 5.2% | 33.33 |
| 50 |
| 307,000 |
| 2.0 | % | 22.05 |
|
| 2027 | 8 |
| 300,000 |
| 2.2 | % | 17.32 |
| 34 |
| 102,000 |
| 4.3% | 30.43 |
| 42 |
| 402,000 |
| 2.6 | % | 20.64 |
|
| 2028 | 9 |
| 403,000 |
| 3.0 | % | 17.26 |
| 24 |
| 75,000 |
| 3.2% | 35.44 |
| 33 |
| 478,000 |
| 3.0 | % | 20.11 |
|
| Thereafter | 191 |
| 10,414,000 |
| 78.0 | % | 20.30 |
| 148 |
| 689,000 |
| 29.2% | 42.81 |
| 339 |
| 11,103,000 |
| 70.7 | % | 21.70 |
|
| Subtotal/Average | 274 |
| 13,016,000 |
| 97.5 | % | $ | 19.53 |
| 638 |
| 2,083,000 |
| 88.0% | $ | 38.14 |
| 912 |
| 15,099,000 |
| 96.1 | % | $ | 22.10 |
|
| Vacant | 14 |
| 331,000 |
| 2.5 | % | N/A |
| 108 |
| 283,000 |
| 12.0% | N/A |
| 122 |
| 614,000 |
| 3.9 | % | N/A |
|
| Total/Average | 288 |
| 13,347,000 |
| 100 | % | N/A |
| 746 |
| 2,366,000 |
| 100% | N/A |
| 1,034 |
| 15,713,000 |
| 100 | % | N/A |
|
| | | | | | | | | | | | | |
(1) Year of expiration includes tenant renewal options.
(2) Weighted average annual base rent per square foot is calculated by annualizing tenants' in-place, contractual, cash-basis rent including ground rent and excludes tenant reimbursements, concessions and storage rent and is adjusted assuming all option rents specified in the underlying leases are exercised. 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 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) assuming exercise of all options at future tenant rent is $5.93 per square foot as of March 31, 2018.
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of March 31, 2018 | | |
| (dollars in thousands, except per sf amounts) | | |
| | | |
|
| | | | | | |
| Property | Total Square Feet (1) | Percent Leased(1) | Weighted Average ABR PSF(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)(3) | 45,000 |
| 100.0% | 12.00 | — | Best Buy |
| Walnut Creek (Olympic) | 31,000 |
| 100.0% | 70.00 | — | Anthropologie |
Walnut Creek (Mt. Diablo) (4) | 7,000 |
| 100.0% | 118.45 | — | Z Gallerie |
| Connecticut: | | | | | |
| Newington | 189,000 |
| 100.0% | 9.87 | — | Walmart, Staples |
| Maryland: | | | | | |
Baltimore (Towson)(6) | 155,000 |
| 100.0% | 23.95 | — | Staples, HomeGoods, Golf Galaxy, Tuesday Morning, Ulta, Kirkland's, Five Below, Sprouts (under construction) |
| Glen Burnie | 121,000 |
| 100.0% | 10.16 | — | Gavigan's Home Furnishings, Pep Boys |
| Rockville | 94,000 |
| 95.4% | 25.58 | — | Regal Cinemas |
Wheaton (leased through 2060)(3) | 66,000 |
| 100.0% | 16.70 | — | Best Buy |
| Massachusetts: | | | | | |
Cambridge (leased through 2033)(3) | 48,000 |
| 100.0% | 28.58 | — | PetSmart, Modell’s Sporting Goods |
| Chicopee | 224,000 |
| 100.0% | 5.50 | — | Walmart |
Milford (leased through 2019)(3) | 83,000 |
| 100.0% | 9.01 | — | Kohl’s |
| Springfield | 182,000 |
| 100.0% | 5.59 | — | Walmart |
| Missouri: | | | | | |
Manchester(6) | 131,000 |
| 88.8% | 11.52 | $12,500 | Academy Sports, Bob's Discount Furniture, Pan-Asia Market |
| New Hampshire: | | | | | |
Salem (leased through 2102)(3) | 37,000 |
| 100.0% | 13.84 | — | Babies "R" Us |
| New Jersey: | | | | | |
| Bergen Town Center - East, Paramus | 212,000 |
| 97.0% | 19.41 | — | Lowe's, REI, Kirkland's, Best Buy |
| Bergen Town Center - West, Paramus | 961,000 |
| 99.2% | 32.01 | $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, Neiman Marcus Last Call Studio |
| Brick | 278,000 |
| 100.0% | 19.53 | $50,000 | Kohl's, ShopRite, Marshalls, Kirkland's |
Carlstadt (leased through 2050)(3) | 78,000 |
| 100.0% | 23.67 | — | Stop & Shop |
| Cherry Hill (Cherry Hill Commons) | 261,000 |
| 98.5% | 9.57 | — | Walmart, Toys “R” Us, Maxx Fitness |
Cherry Hill (Plaza at Cherry Hill)(6) | 413,000 |
| 74.0% | 13.07 | $28,930 | LA Fitness, Aldi, Raymour & Flanigan, Restoration Hardware, Total Wine, Guitar Center, Sam Ash Music |
| East Brunswick | 427,000 |
| 100.0% | 15.03 | $63,000 | 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 |
| 99.2% | 20.42 | $63,000 | The Home Depot, Dick's Sporting Goods, Saks Off Fifth, Marshalls, Burlington |
| East Hanover (280 Route 10 West) | 28,000 |
| 100.0% | 34.71 | — | REI |
| East Rutherford | 197,000 |
| 96.2% | 12.11 | $23,000 | Lowe’s |
| Garfield | 273,000 |
| 100.0% | 14.28 | $40,300 | Walmart, Burlington, Marshalls, PetSmart, Ulta |
| Hackensack | 275,000 |
| 98.5% | 23.30 | $66,400 | The Home Depot, Staples, Petco, 99 Ranch |
| Hazlet | 95,000 |
| 100.0% | 3.70 | — | Stop & Shop(5) |
Jersey City (Hudson Mall)(6) | 383,000 |
| 97.3% | 14.21 | $24,832 | Marshalls, Big Lots, Toys "R" Us, Staples, Old Navy |
| Jersey City (Hudson Commons) | 236,000 |
| 100.0% | 12.37 | $29,000 | Lowe’s, P.C. Richard & Son |
| Kearny | 104,000 |
| 98.2% | 19.53 | — | LA Fitness, Marshalls |
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of March 31, 2018 | | |
| (dollars in thousands, except per sf amounts) | | |
| | | |
|
| | | | | | |
| Property | Total Square Feet (1) | Percent Leased(1) | Weighted Average ABR PSF(2) | Mortgage Debt(7) | Major Tenants |
| Lawnside | 145,000 |
| 100.0% | 15.71 | — | The Home Depot, PetSmart |
| Lodi (Route 17 North) | 171,000 |
| 100.0% | 13.26 | — | National Wholesale Liquidators |
| Lodi (Washington Street) | 85,000 |
| 87.6% | 20.77 | — | Blink Fitness, Aldi |
| Manalapan | 208,000 |
| 98.8% | 17.97 | — | Best Buy, Bed Bath & Beyond, Babies “R” Us, Modell’s Sporting Goods, PetSmart |
| Marlton | 218,000 |
| 100.0% | 15.33 | $37,400 | Kohl’s, ShopRite, PetSmart |
| Middletown | 231,000 |
| 98.1% | 13.02 | $31,400 | Kohl’s, Stop & Shop |
Millburn(6) | 104,000 |
| 98.6% | 25.36 | $24,000 | Trader Joe's, CVS, PetSmart |
| Montclair | 18,000 |
| 100.0% | 26.20 | — | Whole Foods Market |
Morris Plains(6) | 177,000 |
| 65.3% | 24.20 | — | Kohl’s |
| North Bergen (Kennedy Blvd) | 62,000 |
| 100.0% | 14.80 | — | Food Bazaar |
| North Bergen (Tonnelle Ave) | 410,000 |
| 100.0% | 20.59 | $100,000 | Walmart, BJ’s Wholesale Club, PetSmart, Staples |
| North Plainfield | 241,000 |
| 96.7% | 10.95 | $25,100 | Costco, The Tile Shop, La-Z-Boy, Petco |
Paramus (leased through 2033)(3) | 63,000 |
| 100.0% | 47.18 | — | 24 Hour Fitness |
| Rockaway | 181,000 |
| 95.9% | 15.39 | $27,800 | ShopRite, T.J. Maxx |
South Plainfield (leased through 2039)(3) | 56,000 |
| 96.3% | 21.54 | — | Staples, Party City |
| Totowa | 271,000 |
| 100.0% | 17.26 | $50,800 | The Home Depot, Bed Bath & Beyond, buybuy Baby, Marshalls, Staples |
| Turnersville | 98,000 |
| 100.0% | 9.62 | — | Haynes Furniture Outlet (DBA The Dump) |
| Union (2445 Springfield Ave) | 232,000 |
| 100.0% | 17.85 | $45,600 | The Home Depot |
| Union (Route 22 and Morris Ave) | 276,000 |
| 100.0% | 18.67 | — | Lowe’s, Toys “R” Us, Office Depot |
| Watchung | 170,000 |
| 98.3% | 17.15 | $27,000 | BJ’s Wholesale Club |
Westfield (One Lincoln Plaza)(6) | 22,000 |
| 100.0% | 33.40 | $4,730 | Five Guys, PNC Bank, Cake Boss |
| Woodbridge (Woodbridge Commons) | 226,000 |
| 77.3% | 13.39 | $22,100 | Walmart |
Woodbridge (Plaza at Woodbridge)(6) | 411,000 |
| 80.6% | 17.07 | $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% | 35.29 | $24,500 | Planet Fitness, Aldi |
Bronx (Bruckner Boulevard)(6) | 374,000 |
| 92.0% | 23.90 | — | Kmart, Toys “R” Us, Burlington (under construction), ShopRite (under construction) |
Bronx (Shops at Bruckner)(6) | 114,000 |
| 100.0% | 34.06 | $12,017 | Marshalls, Old Navy |
| Buffalo (Amherst) | 311,000 |
| 100.0% | 9.85 | — | BJ’s Wholesale Club, T.J. Maxx, HomeGoods, Toys “R” Us, LA Fitness |
Commack (leased through 2021)(3) | 47,000 |
| 100.0% | 20.69 | — | PetSmart, Ace Hardware |
Dewitt (leased through 2041)(3) | 46,000 |
| 100.0% | 22.51 | — | Best Buy |
Freeport (240 West Sunrise Highway) (leased through 2040)(3) | 44,000 |
| 100.0% | 22.31 | — | Bob’s Discount Furniture |
| Freeport (160 East Sunrise Highway) | 173,000 |
| 100.0% | 21.95 | $43,100 | The Home Depot, Staples |
| Huntington | 205,000 |
| 100.0% | 15.72 | — | Kmart, Marshalls, Old Navy, Petco |
| Inwood | 100,000 |
| 100.0% | 19.66 | — | Stop & Shop |
| Mt. Kisco | 189,000 |
| 96.6% | 16.32 | $14,338 | Target, Stop & Shop |
New Hyde Park (leased through 2029)(3) | 101,000 |
| 100.0% | 20.21 | — | Stop & Shop |
| Oceanside | 16,000 |
| 100.0% | 28.00 | — | Party City |
| Queens | 46,000 |
| 74.2% | 39.38 | — | |
| Rochester | 205,000 |
| 100.0% | 3.08 | — | Walmart |
Rochester (Henrietta) (leased through 2056)(3) | 165,000 |
| 100.0% | 4.55 | — | Kohl’s |
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of March 31, 2018 | | |
| (dollars in thousands, except per sf amounts) | | |
| | | |
|
| | | | | | |
| Property | Total Square Feet (1) | Percent Leased(1) | Weighted Average ABR PSF(2) | Mortgage Debt(7) | Major Tenants |
| Staten Island | 165,000 |
| 93.2% | 24.31 | — | Western Beef, Planet Fitness, Mavis Discount Tire |
| West Babylon | 66,000 |
| 97.6% | 17.67 | — | Best Market, Rite Aid |
Yonkers Gateway Center(6)
| 437,000 |
| 87.1% | 16.06 | $32,848 | Burlington, Best Buy, DSW, PetSmart, Alamo Drafthouse Cinema
|
| Pennsylvania: | | | | | |
Allentown(6) | 372,000 |
| 100.0% | 12.09 | — | Burlington, Giant Food, Dick's Sporting Goods, T.J. Maxx, Petco, Big Lots |
| Bensalem | 185,000 |
| 100.0% | 12.90 | — | Kohl's, Ross Dress for Less, Staples, Petco |
| Bethlehem | 153,000 |
| 95.6% | 8.17 | — | Giant Food, Petco |
| Broomall | 169,000 |
| 100.0% | 10.25 | — | Giant Food, Planet Fitness, A.C. Moore, PetSmart |
| Glenolden | 102,000 |
| 100.0% | 12.52 | — | Walmart |
| Lancaster | 228,000 |
| 100.0% | 4.79 | — | Lowe's, Community Aid, Mattress Firm |
Springfield (leased through 2025)(3) | 41,000 |
| 100.0% | 22.99 | — | PetSmart |
| Wilkes-Barre (461 - 499 Mundy Street) | 205,000 |
| 97.2% | 12.43 | — | Bob's Discount Furniture, Babies "R" Us, Ross Dress for Less, Marshalls, Petco, Tuesday Morning (lease not commenced) |
Wyomissing (leased through 2065)(3) | 76,000 |
| 93.4% | 16.99 | — | LA Fitness, PetSmart |
| York | 111,000 |
| 100.0% | 9.21 | — | Ashley Furniture, Tractor Supply Company, Aldi, Crunch Fitness |
| South Carolina: | | | | | |
Charleston (leased through 2063)(3) | 45,000 |
| 100.0% | 15.10 | — | Best Buy |
| Virginia: | | | | | |
Norfolk (leased through 2069)(3) | 114,000 |
| 100.0% | 7.08 | — | BJ’s Wholesale Club |
Tyson’s Corner (leased through 2035)(3) | 38,000 |
| 100.0% | 43.04 | — | Best Buy |
| Puerto Rico: | | | | | |
| Las Catalinas | 356,000 |
| 89.6% | 32.56 | $130,000 | Kmart, Forever 21 |
Montehiedra(6) | 539,000 |
| 92.6% | 17.88 | $116,094 | Kmart, The Home Depot, Marshalls, Caribbean Cinemas, Tiendas Capri |
| Total Shopping Centers and Malls | 15,713,000 |
| 96.1% | $17.41 | $1,525,129 | |
| WAREHOUSES: | | | | | |
East Hanover - Five Buildings(6) | 942,000 |
| 100.0% | 5.20 | $40,700 | J & J Tri-State Delivery, Foremost Groups Inc., PCS Wireless, Fidelity Paper & Supply Inc., Meyer Distributing Inc., Consolidated Simon Distributors Inc., Givaudan Flavors Corp., Reliable Tire (under construction) |
| Total Urban Edge Properties | 16,655,000 |
| 96.3% | $16.69 | $1,565,829 | |
(1) Percent leased is expressed as the percentage of gross leasable area subject to a lease.
(2) Weighted average annual base rent per square foot is the current base rent on an annualized basis. It includes executed leases for which rent has not commenced and excludes tenant expense reimbursements, free rent periods, 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 $19.87 per square foot.
(3) 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 except at Salem where the ground lease is for a portion of the parking area only.
(4) Our ownership of Walnut Creek (Mt. Diablo) is 95%.
(5) The tenant never commenced 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.
(7) Mortgage debt balances exclude unamortized debt issuance costs.
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY ACQUISITIONS AND DISPOSITIONS | |
| For the quarter ended March 31, 2018 | | |
| (dollars in thousands) | | |
| | | |
|
| | | | | | | |
| 2018 Property Acquisitions: | | | | |
| | | | | | |
| Date Acquired | Property Name | City | State | GLA | Price(1) |
| 1/26/2018 | 938 Spring Valley Road | Maywood | NJ | 2,000 | $ | 705 |
|
| 2/23/2018 | 116 Sunrise Highway | Freeport | NY | 4,750 | 425 |
|
| 2/28/2018 | 197 West Spring Valley Road | Maywood | NJ | 16,300 | 2,750 |
|
| | | | | | |
| 2018 Property Dispositions: | | | | |
| | | | | | |
| 2/23/2018 | Englewood(2) | Englewood | NJ | 41,000 | $ | 11,537 |
|
(1) Excludes $0.1 million of transaction costs related to property acquisitions.
(2) During 2017, our property in Englewood, NJ was transferred to a receiver. On January 31, 2018, the property was sold at a foreclosure sale and on February 23, 2018, the court order was received approving the sale and discharging the receiver of all assets and liabilities related to the property, including the $11.5 million mortgage secured by the property. We recognized a gain on extinguishment of debt of $2.5 million as a result of this transaction during the three months ended March 31, 2018.
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS | |
| As of March 31, 2018 | | |
| (in thousands, except square footage data) | | |
| | | |
|
| | | | | | | | | | | | |
| | Estimated Gross Cost(1) | | Incurred as of 3/31/18 | Balance to Complete (Gross Cost) | Target Stabilization(2) | Description and status |
| ACTIVE PROJECTS | | | | | |
| Bruckner | $ | 67,300 |
| | $ | 49,500 |
| $ | 17,800 |
| 2Q19 | Renovating 3 buildings; retenanting 134,000± sf; Burlington, ShopRite and Urban Health under construction; Boston Market and T-Mobile open; 77% executed |
Bergen Town Center- Phase I(3) | 53,000 |
| | 21,300 |
| 31,700 |
| 2Q19 | Adding Burlington to the main mall (under construction) and 15,000± sf adjacent to REI (Kirkland’s open); expanding Kay (under construction) and adding Cava Grill (open); replacing east parking deck (under construction) and upgrading west parking deck (completed) |
Bergen Town Center-Phase IIA(3) | 9,300 |
| | 7,800 |
| 1,500 |
| 2Q18 | Best Buy opened April 19th |
Bergen Town Center-Phase IIB(3) | 1,600 |
| | — |
| 1,600 |
| 2Q19 | Ruth’s Chris Steakhouse (executed) replacing Pot Belly/PeiWei; permitting |
Bergen Town Center-Phase IIC(3) | 1,600 |
| | — |
| 1,600 |
| 1Q19 | Land’s End (executed) replacing Dressbarn |
Bergen Town Center-Phase IIIA(3) | 2,300 |
| | 100 |
| 2,200 |
| 2Q19 | Children's Place moving to former Payless space (under construction); retenanting with Express (executed) |
| Montehiedra Town Center | 20,800 |
| | 17,800 |
| 3,000 |
| 4Q18 | Converting to hybrid outlet/value offering; completing leasing |
| Morris Plains | 15,300 |
| | 300 |
| 15,000 |
| 4Q19 | Renovating facade; anchor repositioning and retenanting; adding Chick-fil-A |
North Bergen(3) | 12,800 |
| | 500 |
| 12,300 |
| 4Q21 | Developing 100,000± sf, self-storage facility on excess land |
Garfield - Phase II(3) | 5,500 |
| | 200 |
| 5,300 |
| 4Q19 | Adding 18,000± sf of shops (50% in lease) |
| Towson - Phase II | 4,500 |
| | 1,800 |
| 2,700 |
| 4Q18 | Replacing hhgregg with Sprouts; under construction for 3Q18 opening |
Marlton(3) | 3,100 |
| | 2,900 |
| 200 |
| 2Q18 | Constructing new Shake Shack and honeygrow; both tenants open |
Huntington(3) | 3,300 |
| | 400 |
| 2,900 |
| 4Q19 | Converting 11,000± sf basement into street-front retail; under construction |
Lawnside(3) | 2,100 |
| | 1,300 |
| 800 |
| 3Q18 | Constructing 6,000± sf strip; fully leased; Mattress Firm and T-Mobile opening 2Q18 |
Glen Burnie(3) | 1,700 |
| | 800 |
| 900 |
| 4Q18 | Creating pad for Bubba's 33; new restaurant under construction |
Cherry Hill Commons(3) | 900 |
| | 200 |
| 700 |
| 4Q18 | Creating pad for Panda; pad under construction |
Rockaway - Phase III(3) | 800 |
| | 700 |
| 100 |
| 1Q19 | Preparing pad for 6,000± sf expansion by ShopRite at its expense; under construction
|
| Total | $ | 205,900 |
| (4) | $ | 105,600 |
| $ | 100,300 |
| |
| | | | | | | |
(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 cash NOI from the project is realized. 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 on page 27. 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 projects is 7% based on total estimated project costs for and the incremental, unleveraged NOI directly attributable to the projects. The incremental, unleveraged NOI for Active 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 March 31, 2018 | | |
| (in thousands, except square footage data) | | |
| | | |
|
| | | | | | | | | | | | |
| | Estimated Gross Cost(1) | | Incurred as of 3/31/18 | Balance to Complete (Gross Cost) | Stabilization(2) | Description and status |
| COMPLETED PROJECTS | | | | | |
| East Hanover warehouses | $ | 21,700 |
| | $ | 21,200 |
| $ | 500 |
| 2Q17 | Renovation completed; occupancy increased from 45% to 100% |
Garfield - Phase I(3) | 17,300 |
| | 16,800 |
| 500 |
| 4Q17 | New Burlington, PetSmart and Ulta (all open); remaining 7,000± sf executed |
North Plainfield(3) | 6,900 |
| | 6,500 |
| 400 |
| 1Q18 | La-Z-Boy and Petco open; remaining 7,600± sf of shop space in lease |
| Towson - Phase I | 6,000 |
| | 5,800 |
| 200 |
| 1Q18 | Kirkland's, Tuesday Morning, Five Below and Ulta (all open) |
East Hanover(3) | 4,700 |
| | 4,300 |
| 400 |
| 4Q17 | Renovated and retenanted; Saks Off Fifth and Paper Store open |
Hackensack(3) | 4,700 |
| | 2,500 |
| 2,200 |
| 3Q17 | Leasing substantially complete; 99 Ranch Market rent-paying |
Turnersville(3) | 2,100 |
| | 2,100 |
| — |
| 3Q17 | Verizon open |
Rockaway - Phase II(3) | 500 |
| | 500 |
| — |
| 1Q18 | Supermarket expanding into unused space; space delivered and tenant fitting-out |
Rockaway - Phase I(3) | 100 |
| | 100 |
| — |
| 4Q17 | Popeyes open |
| Total | $ | 64,000 |
| (6) | $ | 59,800 |
| $ | 4,200 |
| | |
|
| | | |
| | Estimated Gross Cost(4) | Estimated Stabilization(4)(5) | Description and status |
| PIPELINE PROJECTS |
Bergen Town Center(3) - | | | |
| Phase IID | $2,000-3,000 | 2019 | Recapturing space for new fast casual restaurant; tenant in lease |
| Phase IIIB | $15,000-16,000 | 2020 | Future projects to improve merchandising and maximize value of undeveloped land |
| Plaza at Cherry Hill | $24,000-25,000 | 2020 | Renovating center; preparing construction docs |
| Yonkers | $14,000-15,000 | 2019 | In lease for 100% of former supermarket; preparing construction docs |
Kearny(3) | $7,000-8,000 | 2019 | Expanding by 20,000± sf (50% leased to Ulta) and adding Starbucks (executed); securing approvals |
| Montehiedra outparcel | $7,000-8,000 | 2021 | Developing 20,000± sf retail on excess land; marketing |
| Towson - Phase III | $6,000-7,000 | 2019 | Retenanting Golf Galaxy/Staples spaces; 73% LOI; negotiating |
| Plaza at Woodbridge | $4,000-5,000 | 2021 | Developing 60,000± sf, conditioned, self-storage facility in unused basement space; securing approvals |
West Babylon(3) | $3,000-4,000 | 2019 | Developing 10,000± sf of shops; securing approvals |
Woodbridge Commons(3) | $2,000-3,000 | 2019 | In lease for 100% of existing building |
Mt. Kisco(3) | $2,000-3,000 | 2019 | Converting existing restaurant into two smaller food spaces; 100% LOI; securing approvals |
Gun Hill(3) | $1,000-2,000 | 2019 | Expanding Aldi; lease executed; securing approvals |
| | | | |
| Total | $87,000-99,000 | (6) | |
(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 cash NOI from the project is realized. 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) 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.
(5) Estimated Stabilization reflects the first year in which Target Stabilization occurs. See footnote 2 above.
(6) The estimated, unleveraged yields for Completed and Pipeline projects are 16% and 9%, respectively, based on the total, estimated project costs of and the incremental, unleveraged NOI expected from the projects. The incremental, unleveraged NOI for Completed and 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 March 31, 2018 and December 31, 2017 | | |
| (in thousands) | | |
| | | |
|
| | | | | | | |
| | March 31, 2018 | | December 31, 2017 |
| Fixed rate debt | $ | 1,396,329 |
| | $ | 1,408,817 |
|
| Variable rate debt | 169,500 |
| | 169,500 |
|
| Total debt | $ | 1,565,829 |
| | $ | 1,578,317 |
|
| | | | |
| % Fixed rate debt | 89.2 | % | | 89.3 | % |
| % Variable rate debt | 10.8 | % | | 10.7 | % |
| Total | 100 | % | | 100 | % |
| | | | |
| | | | |
| Secured mortgage debt | $ | 1,565,829 |
| | $ | 1,578,317 |
|
| Unsecured debt | — |
| | — |
|
| Total debt | $ | 1,565,829 |
| | $ | 1,578,317 |
|
| | | | |
| % Secured mortgage debt | 100 | % |
| 100 | % |
| % Unsecured mortgage debt | N/A |
| | N/A |
|
| Total | 100 | % | | 100 | % |
| | | | |
| Weighted average remaining maturity on secured mortgage debt | 7.4 years |
| | 7.6 years |
|
| | | | |
| | | | |
| Total market capitalization (see page 16) | $ | 4,272,251 |
| | |
| | | | |
| % Secured mortgage debt | 36.7 | % | | |
| % Unsecured debt | — | % | | |
| Total debt : Total market capitalization | 36.7 | % | | |
| | | | |
| | | | |
Weighted average interest rate on secured mortgage debt(1) | 4.04 | % | | 4.03 | % |
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 an applicable margin of 1.10% to 1.55% 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 March 31, 2018 (unaudited) and December 31, 2017 | | |
| (dollars in thousands) | | |
| | | |
|
| | | | | | | | | | | | |
| Debt Instrument | Maturity Date | Rate | March 31, 2018 | December 31, 2017 | Percent of Debt at March 31, 2018 |
| Montehiedra, Puerto Rico (senior loan) | 7/6/21 |
| 5.33 | % | $ | 86,094 |
| $ | 86,236 |
| 5.5 | % |
| Montehiedra, Puerto Rico (junior loan) | 7/6/21 |
| 3.00 | % | 30,000 |
| 30,000 |
| 1.9 | % |
Plaza at Cherry Hill(5) | 5/24/22 |
| 3.26 | % | 28,930 |
| 28,930 |
| 1.8 | % |
Westfield - One Lincoln Plaza(5) | 5/24/22 |
| 3.26 | % | 4,730 |
| 4,730 |
| 0.3 | % |
Plaza at Woodbridge(5) | 5/25/22 |
| 3.26 | % | 55,340 |
| 55,340 |
| 3.5 | % |
| Bergen Town Center | 4/8/23 |
| 3.56 | % | 300,000 |
| 300,000 |
| 19.2 | % |
| Shops at Bruckner | 5/1/23 |
| 3.90 | % | 12,017 |
| 12,162 |
| 0.8 | % |
Hudson Mall(4) | 12/1/23 |
| 5.07 | % | 24,832 |
| 25,004 |
| 1.6 | % |
Yonkers Gateway Center(6) | 4/6/24 |
| 4.16 | % | 32,848 |
| 33,227 |
| 2.1 | % |
| Las Catalinas | 8/6/24 |
| 4.43 | % | 130,000 |
| 130,000 |
| 8.3 | % |
Hudson Commons(1) | 11/15/24 |
| 3.56 | % | 29,000 |
| 29,000 |
| 1.9 | % |
Watchung(1) | 11/15/24 |
| 3.56 | % | 27,000 |
| 27,000 |
| 1.7 | % |
Bronx (1750-1780 Gun Hill Road)(1) | 12/1/24 |
| 3.56 | % | 24,500 |
| 24,500 |
| 1.6 | % |
| Brick | 12/10/24 |
| 3.87 | % | 50,000 |
| 50,000 |
| 3.2 | % |
| North Plainfield | 12/10/25 |
| 3.99 | % | 25,100 |
| 25,100 |
| 1.6 | % |
| Middletown | 12/1/26 |
| 3.78 | % | 31,400 |
| 31,400 |
| 2.0 | % |
| Rockaway | 12/1/26 |
| 3.78 | % | 27,800 |
| 27,800 |
| 1.8 | % |
| East Hanover (200 - 240 Route 10 West) | 12/10/26 |
| 4.03 | % | 63,000 |
| 63,000 |
| 4.0 | % |
| North Bergen (Tonnelle Ave) | 4/1/27 |
| 4.18 | % | 100,000 |
| 100,000 |
| 6.4 | % |
| Manchester Plaza | 6/1/27 |
| 4.32 | % | 12,500 |
| 12,500 |
| 0.8 | % |
| Millburn | 6/1/27 |
| 3.97 | % | 24,000 |
| 24,000 |
| 1.5 | % |
| Totowa | 12/1/27 |
| 4.33 | % | 50,800 |
| 50,800 |
| 3.2 | % |
| Woodbridge Commons | 12/1/27 |
| 4.36 | % | 22,100 |
| 22,100 |
| 1.4 | % |
| East Brunswick | 12/6/27 |
| 4.38 | % | 63,000 |
| 63,000 |
| 4.0 | % |
| East Rutherford | 1/6/28 |
| 4.49 | % | 23,000 |
| 23,000 |
| 1.5 | % |
| Hackensack | 3/1/28 |
| 4.36 | % | 66,400 |
| 66,400 |
| 4.2 | % |
| Marlton | 12/1/28 |
| 3.86 | % | 37,400 |
| 37,400 |
| 2.4 | % |
| East Hanover Warehouses | 12/1/28 |
| 4.09 | % | 40,700 |
| 40,700 |
| 2.6 | % |
| Union (2445 Springfield Ave) | 12/10/28 |
| 4.01 | % | 45,600 |
| 45,600 |
| 2.9 | % |
| Freeport (437 East Sunrise Highway) | 12/10/29 |
| 4.07 | % | 43,100 |
| 43,100 |
| 2.8 | % |
| Garfield | 12/1/30 |
| 4.14 | % | 40,300 |
| 40,300 |
| 2.6 | % |
Mt Kisco -Target(3) | 11/15/34 |
| 6.40 | % | 14,338 |
| 14,451 |
| 0.9 | % |
Englewood(2) | — |
| — | % | — |
| 11,537 |
| — | % |
| Total mortgage debt | | 4.04 | % | $ | 1,565,829 |
| $ | 1,578,317 |
| 100 | % |
| Unamortized debt issuance costs | | | (13,286 | ) | (13,775 | ) | |
| Total mortgage debt, net | | | $ | 1,552,543 |
| $ | 1,564,542 |
| |
| |
(1) | Bears interest at one month LIBOR plus 190 bps. |
| |
(2) | On January 31, 2018, our property in Englewood, NJ was sold at a foreclosure sale. Upon issuance of the court’s order on February 23, 2018, approving the sale and discharging the receiver, all assets and liabilities related to the property were removed. |
| |
(3) | The mortgage payable balance on the loan secured by Mount Kisco (Target) includes $1.0 million of unamortized debt discount as of both March 31, 2018 and December 31, 2017, respectively. The effective interest rate including amortization of the debt discount is 7.28% as of March 31, 2018. |
| |
(4) | The mortgage payable balance on the loan secured by Hudson Mall includes $1.4 million and $1.5 million of unamortized debt premium as of March 31, 2018 and December 31, 2017, respectively. The effective interest rate including amortization of the debt premium is 3.76% as of March 31, 2018. |
| |
(5) | Bears interest at one month LIBOR plus 160 bps. |
| |
(6) | The mortgage payable balance on the loan secured by Yonkers Gateway Center includes $0.8 million of unamortized debt premium as of both March 31, 2018 and December 31, 2017, respectively. The effective interest rate including amortization of the debt premium is 3.67% as of March 31, 2018. |
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEBT MATURITY SCHEDULE | |
| As of March 31, 2018 (unaudited) and December 31, 2017 | | |
| (dollars in thousands) | | |
| | | |
|
| | | | | | | | | | | | | | | |
| Year | Amortization | Balloon Payments | Premium/(Discount) Amortization | Total | Weighted Average Interest rate at maturity | Percent of Debt Maturing |
2018(1) | $ | 2,188 |
| $ | — |
| $ | 253 |
| $ | 2,441 |
| 4.6% | 0.2 | % |
| 2019 | 3,908 |
| — |
| 336 |
| 4,244 |
| 4.6% | 0.3 | % |
| 2020 | 7,236 |
| — |
| 335 |
| 7,571 |
| 4.3% | 0.5 | % |
| 2021 | 8,020 |
| 116,094 |
| 334 |
| 124,448 |
| 4.7% | 7.9 | % |
| 2022 | 11,565 |
| 89,000 |
| 334 |
| 100,899 |
| 3.4% | 6.4 | % |
| 2023 | 14,683 |
| 329,432 |
| 311 |
| 344,426 |
| 3.7% | 22.0 | % |
| 2024 | 13,039 |
| 261,358 |
| (49 | ) | 274,348 |
| 4.1% | 17.5 | % |
| 2025 | 9,166 |
| 23,260 |
| (61 | ) | 32,365 |
| 4.1% | 2.1 | % |
| 2026 | 8,949 |
| 115,104 |
| (61 | ) | 123,992 |
| 3.9% | 7.9 | % |
| Thereafter | 20,994 |
| 530,578 |
| (477 | ) | 551,095 |
| 4.2% | 35.2 | % |
| Total | $ | 99,748 |
| $ | 1,464,826 |
| $ | 1,255 |
| $ | 1,565,829 |
| 4.0% | 100 | % |
| | Unamortized debt issuance costs | | (13,286 | ) | | |
| | Mortgage debt, net | | $ | 1,552,543 |
| | |
(1) Remainder of 2018.
