Exhibit 99.2
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| URBAN EDGE PROPERTIES |
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| SUPPLEMENTAL DISCLOSURE |
| PACKAGE |
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| March 31, 2019 |
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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, 2019 |
| (unaudited) |
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| TABLE OF CONTENTS |
| | Page |
| Press Release | |
| First Quarter 2019 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 2019 Results |
NEW YORK, NY, May 1, 2019 - Urban Edge Properties (NYSE:UE) (the "Company") today announced its results for the quarter ended March 31, 2019.
Financial Results(1)(2)
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| • | Generated net income of $27.9 million, or $0.22 per diluted share. |
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| • | Generated Funds from Operations applicable to diluted common shareholders ("FFO") of $36.5 million, or $0.29 per share, compared to $44.1 million, or $0.35 per share, for the first quarter of 2018. |
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| • | Generated FFO as Adjusted of $37.1 million, or $0.29 per share, compared to $41.3 million, or $0.33 per share, for the first quarter of 2018. |
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| • | FFO as Adjusted for the quarter excludes expenses related to executive transition and other income and expenses that are not representative of our ongoing core operating results. |
Operating Results(1)
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| • | Reported a decline in same-property cash Net Operating Income ("NOI") including properties in redevelopment of 0.4% compared to the first quarter of 2018. Excluding the impact of tenant bankruptcies, same-property cash NOI including properties in redevelopment would have increased by 3.7%. |
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| • | Reported a decline in same-property cash NOI excluding properties in redevelopment of 2.2% compared to the first quarter of 2018. Excluding the impact of tenant bankruptcies, same-property cash NOI excluding properties in redevelopment would have increased by 1.8%. |
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| • | Reported same-property portfolio occupancy of 94.0%, an increase of 40 basis points compared to December 31, 2018 and a decrease of 270 basis points compared to March 31, 2018. |
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| • | Reported consolidated portfolio occupancy of 93.4%, an increase of 30 basis points compared to December 31, 2018 and a decrease of 290 basis points compared to March 31, 2018. |
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| • | The year-over-year decline in occupancy rates were impacted by 300 basis points due to bankruptcies related to Toys "R" Us, National Wholesale Liquidators and Fallas. |
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| • | Executed 38 new leases, renewals and options totaling 456,000 square feet ("sf") during the quarter. Same-space leases totaled 446,000 sf and generated average rent spreads of 11.4% on a GAAP basis and 3.8% on a cash basis. |
Development and Redevelopment
During the first quarter, the Company completed three redevelopment projects totaling $86.1 million at Bruckner Commons in the Bronx, NY, Yonkers Gateway Center in Yonkers, NY and Bergen Town Center in Paramus, NJ. New anchors Burlington and ShopRite have helped transform Bruckner Commons into a highly desired community shopping destination with new food and restaurant options expected to open later this year. Newly opened Ruth’s Chris at Bergen Town Center expands the selection of food options by providing a fine dining experience at the center and will be part of a larger collection of new restaurants including Cava, Chopt and Sticky's. During the quarter, Marshalls and Homesense opened at Yonkers Gateway Center.
The Company also commenced three new redevelopment projects with estimated gross costs of $13.9 million.
The Company has $121 million of active redevelopment projects under way, which are expected to generate a 7% unleveraged yield. Approximately $35 million of that amount remains to be funded.
Anchor Leasing
The Company started the year with 11 large anchor vacancies (>30,000 sf) accounting for approximately 600,000 sf of gross leasable area with a market rent of approximately $15 million a year. Ten of these vacancies occurred in the last year resulting from the Toys “R” Us, National Wholesale Liquidators and Fallas bankruptcies.
During the quarter, the Company executed two leases with Burlington comprising 100,000 sf. The Company is in active discussions to lease six spaces and is warehousing the three remaining spaces for redevelopment.
Disposition Activity
The Company sold one property in Chicopee, MA for $18.6 million. Eleven additional non-core properties are under contract or letter of intent to sell for approximately $200 million. The weighted average cap rate on properties sold and under contract for sale is approximately 7.5%. In total, these properties represent more than half of the value of the Company’s non-core assets. Proceeds are expected to be used for acquisitions, redevelopment and potentially a special dividend.
Balance Sheet Highlights at March 31, 2019(1)(3)(4)(5)
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| • | Total market capitalization of approximately $4.0 billion comprised of 127.2 million fully-diluted common shares valued at $2.4 billion and $1.6 billion of debt. |
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| • | Net debt to total market capitalization of 28%. |
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| • | Net debt to Adjusted Earnings before interest, tax, depreciation and amortization for real estate ("EBITDAre") of 5.1x. |
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| • | $448.8 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, 2019.
(3) Refer to page 7 for a reconciliation of net income to EBITDAre and annualized Adjusted EBITDAre for the quarter ended March 31, 2019.
(4) Net debt as of March 31, 2019 is calculated as total consolidated debt of $1.6 billion less total cash and cash equivalents, including restricted cash, of $448.8 million.
(5) Refer to page 16 for the calculation of market capitalization as of March 31, 2019.
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 depreciable real estate and land when connected to the main business of a REIT, impairments on depreciable real estate or land related to a REIT's main business and 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 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 non-cash rental income and 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 83 properties for the three months ended March 31, 2019 and 2018. 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 or 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. Adjusted EBITDAre may include other adjustments not indicative of operating results as detailed in the Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre included in the tables accompanying this press release. The Company also presents the ratio of net debt (net of cash) to annualized Adjusted EBITDAre as of March 31, 2019, 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 is 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 portfolio occupancy includes properties that have been owned and operated for the entirety of the reporting periods being compared totaling 83 properties for the three months ended March 31, 2019 and 2018. Occupancy metrics presented for the Company's same-property 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 or properties 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.
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 quarters ended March 31, 2019 and 2018, respectively. 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, |
| | 2019 | | 2018 |
| Net income | $ | 27,892 |
| | $ | 23,039 |
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| Less net income attributable to noncontrolling interests in: | | | |
| Operating partnership | (2,355 | ) | | (2,328 | ) |
| Consolidated subsidiaries | — |
| | (11 | ) |
| Net income attributable to common shareholders | 25,537 |
| | 20,700 |
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| Adjustments: | | | |
| Rental property depreciation and amortization | 21,623 |
| | 21,072 |
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| Gain on sale of real estate | (16,953 | ) | | — |
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| Real estate impairment loss | 3,958 |
| | — |
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| Limited partnership interests in operating partnership | 2,355 |
| | 2,328 |
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| FFO Applicable to diluted common shareholders | 36,520 |
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| 44,100 |
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FFO per diluted common share(1) | 0.29 |
| | 0.35 |
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| Adjustments to FFO: | | | |
Executive transition costs(2) | 375 |
| | — |
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| Transaction costs | 248 |
| | — |
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| Tenant bankruptcy settlement income | (27 | ) | | (164 | ) |
| Casualty gain, net | — |
| | (580 | ) |
| Tax impact from Hurricane Maria | — |
| | 168 |
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| Environmental remediation costs | — |
| | 250 |
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| Gain on extinguishment of debt | — |
| | (2,524 | ) |
| FFO as Adjusted applicable to diluted common shareholders | $ | 37,116 |
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| $ | 41,250 |
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FFO as Adjusted per diluted common share(1) | $ | 0.29 |
| | $ | 0.33 |
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Weighted Average diluted common shares(1) | 126,504 |
| | 126,581 |
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(1) Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share for the quarter ended March 31, 2018 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. Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share for the quarter ended March 31, 2019 is consistent with the GAAP weighted average diluted shares.
(2) Amount reflects costs associated with the retirement of the Company's former Chief Operating Officer.
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 quarters ended March 31, 2019 and 2018, respectively. 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, 2019 |
| (Amounts in thousands) | 2019 | | 2018 |
| Net income | $ | 27,892 |
| | $ | 23,039 |
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| Management and development fee income from non-owned properties | (352 | ) | | (342 | ) |
| Other expense (income) | 230 |
| | (77 | ) |
| Depreciation and amortization | 21,830 |
| | 21,270 |
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| General and administrative expense | 10,580 |
| | 7,641 |
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Casualty and impairment loss (gain), net(1) | 3,958 |
| | (1,341 | ) |
| Gain on sale of real estate | (16,953 | ) | | — |
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| Interest income | (2,506 | ) | | (1,524 | ) |
| Interest and debt expense | 16,536 |
| | 15,644 |
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| Gain on extinguishment of debt | — |
| | (2,524 | ) |
| Income tax expense | 202 |
| | 434 |
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| Non-cash revenue and expenses | (2,074 | ) | | (2,289 | ) |
| Cash NOI | 59,343 |
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| 59,931 |
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| Adjustments: | | | |
Non-same property cash NOI(2) | (6,109 | ) | | (5,938 | ) |
| Tenant bankruptcy settlement income | (27 | ) | | (164 | ) |
| Natural disaster related operating loss | — |
| | 306 |
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| Environmental remediation costs | — |
| | 250 |
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Same-property cash NOI(3) | $ | 53,207 |
| | $ | 54,385 |
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| Cash NOI related to properties being redeveloped | 5,857 |
| | 4,891 |
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Same-property cash NOI including properties in redevelopment(3) | $ | 59,064 |
| | $ | 59,276 |
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(1) The three months ended March 31, 2019 reflect a real estate impairment charge recognized on our property in Westfield, NJ. The three months ended March 31, 2018 reflect hurricane-related insurance proceeds net of expenses.
(2) Non-same property cash NOI includes cash NOI related to properties being redeveloped and properties acquired or disposed.
(3) The results for the three months ended March 31, 2019 were negatively impacted by store closures from tenant bankruptcies. Excluding these amounts, same-property cash NOI would have increased by 1.8% and same-property cash NOI including properties in redevelopment would have increased by 3.7% for the quarter:
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| | | | Quarter Ended March 31, | | Percent Change |
| | | | 2019 | | 2018 | |
| | Same-property cash NOI | $ | 53,207 |
| | $ | 54,385 |
| | (2.2)% |
| | Cash NOI lost due to tenant bankruptcies | 2,805 |
| | 644 |
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| | Same-property cash NOI including item above | 56,012 |
| | 55,029 |
| | 1.8% |
| | Cash NOI related to properties being redeveloped | 5,857 |
| | 4,891 |
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| | Cash NOI lost due to tenant bankruptcies at properties being redeveloped | 308 |
| | 39 |
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| | Same-property cash NOI including properties in redevelopment and including item above | $ | 62,177 |
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| $ | 59,959 |
| | 3.7% |
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 quarters ended March 31, 2019 and 2018, respectively. 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) | 2019 | | 2018 |
| Net income | $ | 27,892 |
| | $ | 23,039 |
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| Depreciation and amortization | 21,830 |
| | 21,270 |
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| Interest and debt expense | 16,536 |
| | 15,644 |
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| Income tax expense | 202 |
| | 434 |
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| Gain on sale of real estate | (16,953 | ) | | — |
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| Real estate impairment loss | 3,958 |
| | — |
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| EBITDAre | 53,465 |
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| 60,387 |
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| Adjustments for Adjusted EBITDAre: | | | |
Executive transition costs(1) | 375 |
| | — |
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| Transaction costs | 248 |
| | — |
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| Tenant bankruptcy settlement income | (27 | ) | | (164 | ) |
| Casualty gain, net | — |
| | (580 | ) |
| Environmental remediation costs | — |
| | 250 |
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| Gain on extinguishment of debt | — |
| | (2,524 | ) |
| Adjusted EBITDAre | $ | 54,061 |
| | $ | 57,369 |
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(1) Refer to footnote 2 on page 5, Reconciliation of Net Income to FFO and FFO as Adjusted, for the adjustment included in this line item.
ADDITIONAL INFORMATION
For a copy of the Company’s supplemental disclosure package, please access the "Investors" section of our 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 87 properties totaling 16.1 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 natural disasters at the affected properties and the loss of or bankruptcy of a major tenant and the impact of any such event. 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, 2018 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, 2019 | | | |
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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 Annual Report on Form 10-K for the year ended December 31, 2018 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2019. The results of operations of any property acquired are included in the Company's financial statements since the date of 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, 2019 (unaudited) | |
| (in thousands, except per share, sf, rent psf and financial ratio data) | | |
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| | | Quarter ended |
| Summary Financial Results | | March 31, 2019 |
| Total revenue | | $ | 97,732 |
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General & administrative expenses (G&A)(10) | | $ | 10,580 |
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| Net income attributable to common shareholders | | $ | 25,537 |
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| Earnings per diluted share | | $ | 0.22 |
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Adjusted EBITDAre(7) | | $ | 54,061 |
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| Funds from operations (FFO) | | $ | 36,520 |
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| FFO per diluted common share | | $ | 0.29 |
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| FFO as Adjusted | | $ | 37,116 |
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| FFO as Adjusted per diluted common share | | $ | 0.29 |
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| Total dividends paid per share | | $ | 0.22 |
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| Stock closing price low-high range (NYSE) | | $16.59 to $20.73 |
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Weighted average diluted shares used in EPS computations(1) | | 126,504 |
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Weighted average diluted common shares used in FFO computations(1) | | 126,504 |
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| Summary Property, Operating and Financial Data | | |
| # of Total properties / # of Retail properties | | 87 / 86 |
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Gross leasable area (GLA) sf - retail portfolio(3)(5) | | 15,196,000 |
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Weighted average annual rent psf - retail portfolio(3)(5) | | $ | 18.28 |
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| Consolidated occupancy at end of period | | 93.4 | % |
Consolidated retail portfolio occupancy at end of period(5) | | 93.0 | % |
Same-property portfolio occupancy at end of period(2) | | 94.0 | % |
Same-property portfolio physical occupancy at end of period(4)(2) | | 93.2 | % |
Same-property cash NOI growth(2) | | (2.2 | )% |
| Same-property cash NOI growth, including redevelopment properties | | (0.4 | )% |
| Cash NOI margin - total portfolio | | 62.5 | % |
| Expense recovery ratio - total portfolio | | 95.4 | % |
New, renewal and option rent spread - cash basis(8) | | 3.8 | % |
New, renewal and option rent spread - GAAP basis(9) | | 11.4 | % |
Net debt to total market capitalization(6) | | 28.0 | % |
Net debt to Adjusted EBITDAre(6) | | 5.1 | x |
Adjusted EBITDAre to interest expense(7) | | 3.4 | x |
Adjusted EBITDAre to fixed charges(7) | | 3.2 | x |
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(1) Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share is consistent with the GAAP weighted average diluted shares for the quarter ended March 31, 2019.
(2) The same-property pool for both cash NOI and occupancy includes properties the Company consolidated, owned and operated for the entirety of both periods being compared and excludes properties under development and redevelopment, acquired or 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 $17.47.
(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.
(10) Amount includes approximately $0.4 million of executive transition costs related to our former COO who retired in January 2019 and $0.3 million of transaction expenses.
|
| | |
| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED BALANCE SHEETS | | |
| As of March 31, 2019 (unaudited) and December 31, 2018 | | |
| (in thousands, except share and per share amounts) | | |
| | | |
|
| | | | | | | |
| | March 31, | | December 31, |
| | 2019 | | 2018 |
| ASSETS | | | |
|
| Real estate, at cost: | |
| | |
|
| Land | $ | 525,027 |
| | $ | 525,819 |
|
| Buildings and improvements | 2,174,923 |
| | 2,156,113 |
|
| Construction in progress | 73,649 |
| | 80,385 |
|
| Furniture, fixtures and equipment | 6,790 |
| | 6,675 |
|
| Total | 2,780,389 |
| | 2,768,992 |
|
| Accumulated depreciation and amortization | (661,435 | ) | | (645,872 | ) |
| Real estate, net | 2,118,954 |
| | 2,123,120 |
|
| Right-of-use assets | 96,466 |
| | — |
|
| Cash and cash equivalents | 416,668 |
| | 440,430 |
|
| Restricted cash | 32,120 |
| | 17,092 |
|
| Tenant and other receivables, net of allowance for doubtful accounts of $6,486 as of December 31, 2018 | 39,002 |
| | 28,563 |
|
| Receivable arising from the straight-lining of rents, net of $134 as of December 31, 2018 | 80,848 |
| | 84,903 |
|
| Identified intangible assets, net of accumulated amortization of $29,582 and $39,526, respectively | 53,994 |
| | 68,422 |
|
| Deferred leasing costs, net of accumulated amortization of $17,236 and $16,826, respectively | 21,558 |
| | 21,277 |
|
| Deferred financing costs, net of accumulated amortization of $3,020 and $2,764, respectively | 1,963 |
| | 2,219 |
|
| Prepaid expenses and other assets | 12,854 |
| | 12,968 |
|
| Total assets | $ | 2,874,427 |
| | $ | 2,798,994 |
|
| | | | |
| LIABILITIES AND EQUITY | |
| | |
|
| Liabilities: | | | |
| Mortgages payable, net | $ | 1,549,479 |
| | $ | 1,550,242 |
|
| Lease liabilities | 91,906 |
| | — |
|
| Accounts payable, accrued expenses and other liabilities | 85,424 |
| | 98,517 |
|
| Identified intangible liabilities, net of accumulated amortization of $67,223 and $65,058, respectively | 141,526 |
| | 144,258 |
|
| Total liabilities | 1,868,335 |
| | 1,793,017 |
|
| Commitments and contingencies | | | |
| Shareholders’ equity: | | | |
| Common shares: $0.01 par value; 500,000,000 shares authorized and 120,099,294 and 114,345,565 shares issued and outstanding, respectively | 1,201 |
| | 1,143 |
|
| Additional paid-in capital | 1,005,129 |
| | 956,420 |
|
| Accumulated deficit | (56,663 | ) | | (52,857 | ) |
| Noncontrolling interests: | | | |
| Operating partnership | 55,976 |
| | 100,822 |
|
| Consolidated subsidiaries | 449 |
| | 449 |
|
| Total equity | 1,006,092 |
| | 1,005,977 |
|
| Total liabilities and equity | $ | 2,874,427 |
| | $ | 2,798,994 |
|
|
| | |
| URBAN EDGE PROPERTIES | | |
| CONSOLIDATED STATEMENTS OF INCOME | | |
| For the quarter ended March 31, 2019 and 2018 (unaudited) | |
| (in thousands, except share and per share amounts) | | |
| | | |
|
| | | | | | | |
| | Quarter Ended March 31, |
| | 2019 | | 2018 |
| REVENUE | | | |
Rental revenue(1) | $ | 97,308 |
| | $ | 98,394 |
|
| Management and development fees | 352 |
| | 342 |
|
| Other income | 72 |
| | 317 |
|
| Total revenue | 97,732 |
| | 99,053 |
|
| EXPENSES | | | |
| Depreciation and amortization | 21,830 |
| | 21,270 |
|
Real estate taxes(2) | 15,477 |
| | 15,775 |
|
Property operating(1)(2) | 17,061 |
| | 17,903 |
|
| General and administrative | 10,580 |
| | 7,641 |
|
| Casualty and impairment loss (gain), net | 3,958 |
| | (1,341 | ) |
Lease expense(2) | 3,655 |
| | 2,736 |
|
| Total expenses | 72,561 |
| | 63,984 |
|
| Gain on sale of real estate | 16,953 |
| | — |
|
| Interest income | 2,506 |
| | 1,524 |
|
| Interest and debt expense | (16,536 | ) | | (15,644 | ) |
| Gain on extinguishment of debt | — |
| | 2,524 |
|
| Income before income taxes | 28,094 |
| | 23,473 |
|
| Income tax expense | (202 | ) | | (434 | ) |
| Net income | 27,892 |
| | 23,039 |
|
| Less net income attributable to noncontrolling interests in: | | | |
| Operating partnership | (2,355 | ) | | (2,328 | ) |
| Consolidated subsidiaries | — |
| | (11 | ) |
| Net income attributable to common shareholders | $ | 25,537 |
| | $ | 20,700 |
|
| | | | |
| Earnings per common share - Basic: | $ | 0.22 |
| | $ | 0.18 |
|
| Earnings per common share - Diluted: | $ | 0.22 |
| | $ | 0.18 |
|
| Weighted average shares outstanding - Basic | 116,274 |
| | 113,677 |
|
| Weighted average shares outstanding - Diluted | 126,504 |
| | 113,864 |
|
(1) In adherence with ASC 842 Leases, effective January 1, 2019, the Company includes bad debt expense related to operating lease receivables in "Rental revenue" in the consolidated statements of income for the quarter ended March 31, 2019 and in "Property operating expenses" for the quarter ended March 31, 2018.
(2) In adherence with ASC 842, the Company recognized $0.2 million of common area maintenance and $0.5 million of real estate taxes associated with ground and building leases in "Lease expense" for the quarter ended March 31, 2019. The Company recognized $0.2 million and $0.5 million for these associated expenses in "Property operating expenses" and "Real estate taxes", respectively, for the quarter ended March 31, 2018.
|
| | |
| URBAN EDGE PROPERTIES | | |
| SUPPLEMENTAL SCHEDULE OF NET OPERATING INCOME | | |
| For the quarter ended March 31, 2019 and 2018 | |
| (in thousands) | | |
| | | |
|
| | | | | | | | | |
| | Quarter Ended March 31, | | Percent Change |
| | 2019 | | 2018 | |
Total cash NOI(1) | | | | | |
| Total revenue | $ | 94,978 |
| | $ | 96,049 |
| | (1.1)% |
| Total property operating expenses | (35,635 | ) | | (36,118 | ) | | (1.3)% |
| Cash NOI - total portfolio | $ | 59,343 |
| | $ | 59,931 |
| | (1.0)% |
| | | | | | |
| NOI margin (NOI / Total revenue) | 62.5 | % | | 62.4 | % | | |
| | | | | | |
| | | | | | |
Same-property cash NOI(1) | | | | | |
| Property rentals | $ | 60,701 |
| | $ | 61,226 |
| | |
| Tenant expense reimbursements | 26,081 |
| | 26,399 |
| | |
Bad debt expense(2) | (397 | ) | | — |
| | |
| Total revenue | 86,385 |
|
| 87,625 |
| | |
Real estate taxes(3) | (14,347 | ) | | (14,633 | ) | | |
Property operating(2)(3) | (14,981 | ) | | (15,379 | ) | | |
Lease expense(3) | (3,850 | ) | | (3,228 | ) | | |
| Total property operating expenses | (33,178 | ) | | (33,240 | ) | | |
Same-property cash NOI(1) | $ | 53,207 |
| | $ | 54,385 |
| | (2.2)% |
| | | | | | |
| Cash NOI related to properties being redeveloped | $ | 5,857 |
| | $ | 4,891 |
| | |
Same-property cash NOI including properties in redevelopment(1) | $ | 59,064 |
| | $ | 59,276 |
| | (0.4)% |
| | | | | | |
| Same-property physical occupancy | 93.2 | % | | 96.1 | % | | |
| Same-property leased occupancy | 94.0 | % | | 96.7 | % | | |
| Number of properties included in same-property analysis | 83 |
| | | | |
| | | | | | |
(1) Refer to page 6 for a reconciliation of net income to cash NOI and same-property cash NOI.
(2) Bad debt expense of $1.0 million is included in "Property operating expenses" for the quarter ended March 31, 2018.
(3) In adherence with ASC 842, the Company recognized $0.2 million of common area maintenance and $0.5 million of real estate taxes associated with ground and building leases in "Lease expense" for the quarter ended March 31, 2019. The Company recognized $0.2 million and $0.5 million for these associated expenses in "Property operating expenses" and "Real estate taxes", respectively, for the quarter ended March 31, 2018.
|
| | |
| URBAN EDGE PROPERTIES | | |
| EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION and AMORTIZATION for REAL ESTATE (EBITDAre) |
| For the quarter ended March 31, 2019 and 2018 | |
| (in thousands) | | |
| | | |
|
| | | | | | | |
| | Quarter Ended March 31, |
| | 2019 | | 2018 |
| Net income | $ | 27,892 |
| | $ | 23,039 |
|
| Depreciation and amortization | 21,830 |
| | 21,270 |
|
| Interest expense | 15,816 |
| | 14,922 |
|
| Amortization of deferred financing costs | 720 |
| | 722 |
|
| Income tax expense | 202 |
| | 434 |
|
| Gain on sale of real estate | (16,953 | ) | | — |
|
| Real estate impairment loss | 3,958 |
| | — |
|
| EBITDAre | 53,465 |
|
| 60,387 |
|
| Adjustments for Adjusted EBITDAre: | | | |
Executive transition costs(1) | 375 |
| | — |
|
| Transaction costs | 248 |
| | — |
|
| Tenant bankruptcy settlement income | (27 | ) | | (164 | ) |
| Casualty gain, net | — |
| | (580 | ) |
| Environmental remediation costs | — |
| | 250 |
|
| Gain on extinguishment of debt | — |
| | (2,524 | ) |
| Adjusted EBITDAre | $ | 54,061 |
| | $ | 57,369 |
|
| | | | |
| Interest expense | $ | 15,816 |
| | $ | 14,922 |
|
| | | | |
| Adjusted EBITDAre to interest expense | 3.4 | x | | 3.8 | x |
| | | | |
| Fixed charges | | | |
| Interest expense | $ | 15,816 |
| | $ | 14,922 |
|
| Scheduled principal amortization | 1,144 |
| | 869 |
|
| Total fixed charges | $ | 16,960 |
| | $ | 15,791 |
|
| | | | |
| Adjusted EBITDAre to fixed charges | 3.2 | x | | 3.6 | x |
| | | | |
(1) Refer to footnote 2 on page 5, Reconciliation of Net Income to FFO and FFO as Adjusted, for the adjustment included in this line item.
|
| | |
| URBAN EDGE PROPERTIES | | |
| FUNDS FROM OPERATIONS | |
| For the quarter ended March 31, 2019 | |
| (in thousands, except per share amounts) | | |
| | | |
|
| | | | | | | |
| | Quarter Ended March 31, 2019 |
| | (in thousands) | | (per share) |
| Net income | $ | 27,892 |
| | $ | 0.22 |
|
| Less net income attributable to noncontrolling interests in: | | | |
| Operating partnership | (2,355 | ) | | (0.02 | ) |
| Consolidated subsidiaries | — |
| | — |
|
| Net income attributable to common shareholders | 25,537 |
| | 0.20 |
|
| Adjustments: | | | |
| Rental property depreciation and amortization | 21,623 |
| | 0.17 |
|
| Real estate impairment loss | 3,958 |
| | 0.03 |
|
| Gain on sale of real estate | (16,953 | ) | | (0.13 | ) |
Limited partnership interests in operating partnership(1) | 2,355 |
| | 0.02 |
|
| FFO applicable to diluted common shareholders | 36,520 |
| | 0.29 |
|
| | | | |
Executive transition costs(2) | 375 |
| | — |
|
| Transaction costs | 248 |
| | — |
|
| Tenant bankruptcy settlement income | (27 | ) | | — |
|
| FFO as Adjusted applicable to diluted common shareholders | $ | 37,116 |
|
| $ | 0.29 |
|
| | | | |
| Weighted average diluted shares used to calculate EPS | 126,504 |
| | |
| Assumed conversion of OP and LTIP Units to common shares | — |
| | |
| Weighted average diluted common shares - FFO | 126,504 |
| | |
(1) Represents earnings allocated to LTIP and OP unitholders for unissued common shares, which have been excluded for purposes of calculating earnings per diluted share for the period presented.
(2) Refer to footnote 2 on page 5, Reconciliation of Net Income to FFO and FFO as Adjusted, for the adjustment included in this line item.
|
| | |
| URBAN EDGE PROPERTIES | | |
| MARKET CAPITALIZATION, DEBT RATIOS AND LIQUIDITY | | |
| As of March 31, 2019 | | |
| (in thousands, except share amounts) | | |
| | | |
|
| | | |
| | March 31, 2019 |
| Closing market price of common shares | $ | 19.00 |
|
| | |
| Basic common shares | 120,099,294 |
|
| OP and LTIP units | 7,109,786 |
|
| Diluted common shares | 127,209,080 |
|
| | |
| Equity market capitalization | $ | 2,416,973 |
|
| | |
| | |
Total consolidated debt(1) | $ | 1,560,932 |
|
| Cash and cash equivalents including restricted cash | (448,788 | ) |
| Net debt | $ | 1,112,144 |
|
| | |
| Net Debt to annualized Adjusted EBITDAre | 5.1 | x |
| | |
Total consolidated debt(1) | $ | 1,560,932 |
|
| Equity market capitalization | 2,416,973 |
|
| Total market capitalization | $ | 3,977,905 |
|
| | |
| Net debt to total market capitalization at applicable market price | 28.0 | % |
| | |
| | |
| Cash and cash equivalents including restricted cash | $ | 448,788 |
|
| Available under unsecured credit facility | 600,000 |
|
| Total liquidity | $ | 1,048,788 |
|
| | |
(1) Total consolidated debt excludes unamortized debt issuance costs of $11.5 million.
|
| | |
| URBAN EDGE PROPERTIES | | |
| ADDITIONAL DISCLOSURES | |
| (in thousands) | | |
| | | |
|
| | | | | | | | |
| | | Quarter Ended March 31, |
| | | 2019 | | 2018 |
| Rental revenue: | | | | |
| Property rentals | | $ | 69,534 |
| | $ | 69,722 |
|
| Tenant expense reimbursements | | 28,259 |
| | 28,672 |
|
Bad debt expense(7) | | (485 | ) | | — |
|
| Total rental revenue | | $ | 97,308 |
| | $ | 98,394 |
|
| | | | | |
| Certain non-cash items: | | | |
|
Straight-line rental income (expense)(1) | | $ | 330 |
| | $ | (48 | ) |
Amortization of below-market lease intangibles, net(1) | | 2,360 |
| | 2,633 |
|
Lease expense GAAP adjustments(2) | | (307 | ) | | (261 | ) |
Reserves on receivables from straight-line rents(5) | | (308 | ) | | (34 | ) |
Amortization of deferred financing costs(4) | | (720 | ) | | (722 | ) |
Capitalized interest(4) | | 565 |
| | 1,154 |
|
Share-based compensation expense(3) | | (3,664 | ) | | (2,020 | ) |
| | | | | |
Capital expenditures: (6) | | | | |
| Development and redevelopment costs | | $ | 23,438 |
| | $ | 26,579 |
|
| Maintenance capital expenditures | | 767 |
| | 643 |
|
| Leasing commissions | | 591 |
| | 530 |
|
| Tenant improvements and allowances | | 2,413 |
| | 894 |
|
| Total capital expenditures | | $ | 27,209 |
| | $ | 28,646 |
|
| | | | | |
| | | March 31, 2019 | | December 31, 2018 |
| Accounts payable, accrued expenses and other liabilities: | | | | |
| Deferred tenant revenue | | $ | 28,384 |
| | $ | 28,697 |
|
| Accrued capital expenditures and leasing costs | | 22,943 |
| | 29,754 |
|
| Accrued interest payable | | 9,292 |
| | 8,950 |
|
| Deferred tax liability, net | | 4,685 |
| | 5,532 |
|
| Security deposits | | 5,458 |
| | 5,396 |
|
| Accrued payroll expenses | | 2,453 |
| | 5,747 |
|
| Other liabilities and accrued expenses | | 12,209 |
| | 7,371 |
|
Accrued rent(8) | | — |
| | 7,070 |
|
| Total accounts payable and accrued expenses | | $ | 85,424 |
| | $ | 98,517 |
|
| | | | | |
(1) Amounts included in the financial statement line item "Rental revenue" in the consolidated statements of income.
(2) GAAP adjustments consist of amortization of below-market ground lease intangibles and straight-line lease expense. Amounts are included in the financial statement line item "Lease expense" 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 included in the financial statement line item "Rental revenue" for the quarter ended March 31, 2019 and "Property operating expenses" for the quarter ended March 31, 2018 in the consolidated statements of income.
(6) Amounts presented on a cash basis.
(7) In adherence with ASC 842 Leases, effective January 1, 2019, the Company includes bad debt expense related to operating lease receivables in "Rental revenue" in the consolidated statements of income for the quarter ended March 31, 2019 and in "Property operating expenses" for all prior periods.
(8) In connection with the adoption of ASC 842 on January 1, 2019, we reclassified $7.1 million of accrued rent and adjusted the carrying values of our ROU assets by the corresponding amount.
|
| | |
| URBAN EDGE PROPERTIES | | |
| TENANT CONCENTRATION - TOP TWENTY-FIVE TENANTS | |
| As of March 31, 2019 | | |
| | | |
| | | |
|
| | | | | | | | | | | | | |
| | | | | | | | |
| 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% | $ | 16,497,358 |
| 6.3% | $ | 17.93 |
| 14.5 |
The TJX Companies, Inc.(2) | 18 |
| 614,628 |
| 3.8% | 11,120,664 |
| 4.2% | 18.09 |
| 5.2 |
| Best Buy Co., Inc. | 10 |
| 442,118 |
| 2.7% | 10,563,530 |
| 4.0% | 23.89 |
| 5.8 |
| Walmart Inc. | 8 |
| 1,221,204 |
| 7.6% | 9,599,762 |
| 3.6% | 7.86 |
| 7.1 |
| Lowe's Companies, Inc. | 6 |
| 976,415 |
| 6.1% | 8,575,004 |
| 3.3% | 8.78 |
| 8.5 |
Ahold Delhaize(3) | 8 |
| 589,907 |
| 3.7% | 7,123,389 |
| 2.7% | 12.08 |
| 7.9 |
| Kohl's Corporation | 8 |
| 716,345 |
| 4.4% | 7,103,229 |
| 2.7% | 9.92 |
| 4.2 |
| PetSmart, Inc. | 12 |
| 287,493 |
| 1.8% | 6,785,494 |
| 2.6% | 23.60 |
| 4.4 |
Sears Holdings Corporation(4) | 4 |
| 547,443 |
| 3.4% | 5,413,698 |
| 2.1% | 9.89 |
| 26.4 |
| BJ's Wholesale Club | 4 |
| 454,297 |
| 2.8% | 5,314,730 |
| 2.0% | 11.70 |
| 9.1 |
| Wakefern (ShopRite) | 4 |
| 294,491 |
| 1.8% | 5,241,942 |
| 2.0% | 17.80 |
| 13.2 |
| Staples, Inc. | 9 |
| 186,030 |
| 1.2% | 4,025,777 |
| 1.5% | 21.64 |
| 1.9 |
| Burlington Stores, Inc. | 4 |
| 261,342 |
| 1.6% | 3,917,188 |
| 1.5% | 14.99 |
| 9.5 |
The Gap, Inc.(5) | 8 |
| 123,784 |
| 0.8% | 3,574,801 |
| 1.4% | 28.88 |
| 2.7 |
| Target Corporation | 2 |
| 297,856 |
| 1.8% | 3,548,666 |
| 1.3% | 11.91 |
| 12.9 |
| Century 21 | 1 |
| 156,649 |
| 1.0% | 3,394,181 |
| 1.3% | 21.67 |
| 7.8 |
| Whole Foods Market, Inc. | 2 |
| 100,682 |
| 0.6% | 3,365,570 |
| 1.3% | 33.43 |
| 11.5 |
| LA Fitness International LLC | 4 |
| 181,342 |
| 1.1% | 3,165,032 |
| 1.2% | 17.45 |
| 8.2 |
| Bob's Discount Furniture | 4 |
| 170,931 |
| 1.1% | 3,008,485 |
| 1.1% | 17.60 |
| 4.1 |
| 24 Hour Fitness | 1 |
| 53,750 |
| 0.3% | 2,564,520 |
| 1.0% | 47.71 |
| 12.8 |
Dick's Sporting Goods, Inc.(6) | 3 |
| 117,345 |
| 0.7% | 2,291,322 |
| 0.9% | 19.53 |
| 4.2 |
| URBN (Anthropologie) | 1 |
| 31,450 |
| 0.2% | 2,201,500 |
| 0.8% | 70.00 |
| 9.5 |
Bed Bath & Beyond Inc.(7) | 5 |
| 149,879 |
| 0.9% | 2,098,009 |
| 0.8% | 14.00 |
| 4.2 |
| Hudson's Bay Company (Saks) | 2 |
| 59,143 |
| 0.4% | 1,921,776 |
| 0.7% | 32.49 |
| 4.5 |
| Raymour & Flanigan | 3 |
| 179,370 |
| 1.1% | 1,867,412 |
| 0.7% | 10.41 |
| 9.5 |
| | | | | | | | |
| Total/Weighted Average | 138 |
| 9,134,120 |
| 56.6% | $ | 134,283,039 |
| 51% | $ | 14.70 |
| 8.8 |
| | | | | | | | |
(1) In years excluding tenant renewal options. The weighted average is based on ABR.
(2) Includes Marshalls (12), T.J. Maxx (3), HomeGoods (2) and Homesense (1).
(3) Includes Stop & Shop (6) and Giant Food (2).
(4) Includes Kmart (4). Sears Holdings Corporation ("Sears") declared bankruptcy on October 15, 2018. Kmart generates approximately $8.5 million in annual gross rents including tenant reimbursement income, for the Company. Kmart closed its stores at Las Catalinas in Puerto Rico and Huntington, NY during January 2019, however property rents have been paid on all four locations through April 2019. As of April 30, 2019, our Kmart lease at Las Catalinas was rejected.
(5) Includes Old Navy (5), Gap (2) and Banana Republic (1).
(6) Includes Dick's Sporting Goods (2) and Golf Galaxy (1).
(7) 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 free rent periods which are shown at their initial cash rent.
|
| | |
| URBAN EDGE PROPERTIES | | |
| LEASING ACTIVITY | |
| For the quarter ended March 31, 2019 | |
| | | |
| | | |
|
| | | | | | | |
| | Quarter Ended March 31, 2019 |
| | GAAP(3) | | Cash(2) |
| New leases | | | |
| Number of new leases executed | 11 |
| | 11 |
|
| Total square feet | 114,810 |
| | 114,810 |
|
Number of same space leases(1) | 8 |
| | 8 |
|
| Same space square feet | 104,492 |
| | 104,492 |
|
| Prior rent per square foot | $ | 18.11 |
| | $ | 19.52 |
|
| New rent per square foot | $ | 19.19 |
| | $ | 18.19 |
|
| Same space weighted average lease term (years) | 9.9 |
| | 9.9 |
|
| Same space TIs per square foot | N/A |
| | $ | 15.28 |
|
| Rent spread | 6.0 | % | | (6.8 | )% |
| | | | |
| Renewals & Options | | | |
| Number of leases executed | 27 |
| | 27 |
|
| Total square feet | 341,422 |
| | 341,422 |
|
Number of same space leases(1) | 27 |
| | 27 |
|
| Same space square feet | 341,422 |
| | 341,422 |
|
| Prior rent per square foot | $ | 17.08 |
| | $ | 17.48 |
|
| New rent per square foot | $ | 19.34 |
| | $ | 18.78 |
|
| Same space weighted average lease term (years) | 7.6 |
| | 7.6 |
|
| Same space TIs per square foot | N/A |
| | $ | 0.06 |
|
| Rent spread | 13.2 | % | | 7.4 | % |
| | | | |
| Total New Leases and Renewals & Options | | | |
| Number of leases executed | 38 |
| | 38 |
|
| Total square feet | 456,232 |
| | 456,232 |
|
Number of same space leases(1) | 35 |
| | 35 |
|
| Same space square feet | 445,914 |
| | 445,914 |
|
| Prior rent per square foot | $ | 17.32 |
| | $ | 17.96 |
|
| New rent per square foot | $ | 19.30 |
| | $ | 18.64 |
|
| Same space weighted average lease term (years) | 8.1 |
| | 8.1 |
|
| Same space TIs per square foot | N/A |
| | $ | 3.62 |
|
| Rent spread | 11.4 | % | | 3.8 | % |
(1) Leases executed on a same space basis include leases 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.
|
| | |
| URBAN EDGE PROPERTIES | | |
| RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE | |
| As of March 31, 2019 | | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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 | — |
| — |
| — | % | $ | — |
| 17 |
| 36,000 |
| 1.5% | $ | 34.05 |
| 17 |
| 36,000 |
| 0.2 | % | $ | 34.05 |
|
| 2019 | 9 |
| 308,000 |
| 2.4 | % | 11.62 |
| 63 |
| 178,000 |
| 7.6% | 36.07 |
| 72 |
| 486,000 |
| 3.2 | % | 20.57 |
|
| 2020 | 25 |
| 877,000 |
| 6.8 | % | 15.80 |
| 91 |
| 278,000 |
| 11.9% | 34.48 |
| 116 |
| 1,155,000 |
| 7.6 | % | 20.29 |
|
| 2021 | 26 |
| 668,000 |
| 5.2 | % | 21.15 |
| 70 |
| 225,000 |
| 9.6% | 35.05 |
| 96 |
| 893,000 |
| 5.9 | % | 24.65 |
|
| 2022 | 24 |
| 1,104,000 |
| 8.6 | % | 11.96 |
| 68 |
| 192,000 |
| 8.2% | 33.14 |
| 92 |
| 1,296,000 |
| 8.5 | % | 15.10 |
|
| 2023 | 34 |
| 1,499,000 |
| 11.7 | % | 15.44 |
| 48 |
| 156,000 |
| 6.6% | 36.60 |
| 82 |
| 1,655,000 |
| 10.9 | % | 17.43 |
|
| 2024 | 36 |
| 1,445,000 |
| 11.2 | % | 15.85 |
| 54 |
| 206,000 |
| 8.8% | 29.60 |
| 90 |
| 1,651,000 |
| 10.9 | % | 17.56 |
|
| 2025 | 14 |
| 627,000 |
| 4.9 | % | 13.35 |
| 34 |
| 112,000 |
| 4.8% | 35.95 |
| 48 |
| 739,000 |
| 4.9 | % | 16.77 |
|
| 2026 | 8 |
| 508,000 |
| 3.9 | % | 8.92 |
| 56 |
| 177,000 |
| 7.5% | 30.78 |
| 64 |
| 685,000 |
| 4.5 | % | 14.57 |
|
| 2027 | 16 |
| 607,000 |
| 4.7 | % | 16.00 |
| 38 |
| 175,000 |
| 7.5% | 37.95 |
| 54 |
| 782,000 |
| 5.1 | % | 20.91 |
|
| 2028 | 11 |
| 403,000 |
| 3.1 | % | 21.84 |
| 33 |
| 121,000 |
| 5.2% | 40.43 |
| 44 |
| 524,000 |
| 3.5 | % | 26.13 |
|
| 2029 | 22 |
| 1,177,000 |
| 9.2 | % | 18.02 |
| 28 |
| 101,000 |
| 4.3% | 47.20 |
| 50 |
| 1,278,000 |
| 8.4 | % | 20.32 |
|
| Thereafter | 34 |
| 2,848,000 |
| 22.2 | % | 13.73 |
| 21 |
| 105,000 |
| 4.5% | 36.54 |
| 55 |
| 2,953,000 |
| 19.4 | % | 14.55 |
|
| Subtotal/Average | 259 |
| 12,071,000 |
| 93.9 | % | $ | 15.20 |
| 621 |
| 2,062,000 |
| 88.0% | $ | 35.92 |
| 880 |
| 14,133,000 |
| 93.0 | % | $ | 18.23 |
|
| Vacant | 20 |
| 781,000 |
| 6.1 | % | N/A |
| 114 |
| 282,000 |
| 12.0% | N/A |
| 134 |
| 1,063,000 |
| 7.0 | % | N/A |
|
| Total/Average | 279 |
| 12,852,000 |
| 100 | % | N/A |
| 735 |
| 2,344,000 |
| 100% | N/A |
| 1,014 |
| 15,196,000 |
| 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 $5.37 per square foot as of March 31, 2019.
|
| | |
| URBAN EDGE PROPERTIES | | |
| RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE ASSUMING EXERCISE OF ALL RENEWALS AND OPTIONS |
| As of March 31, 2019 | | |
| | | |
| | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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 | — |
| — |
| — | % | $ | — |
| 17 |
| 36,000 |
| 1.5% | $ | 34.12 |
| 17 |
| 36,000 |
| 0.2 | % | $ | 34.12 |
|
| 2019 | 7 |
| 280,000 |
| 2.2 | % | 10.23 |
| 49 |
| 133,000 |
| 5.7% | 38.36 |
| 56 |
| 413,000 |
| 2.7 | % | 19.29 |
|
| 2020 | 6 |
| 119,000 |
| 0.9 | % | 17.38 |
| 76 |
| 211,000 |
| 9.0% | 37.66 |
| 82 |
| 330,000 |
| 2.2 | % | 30.34 |
|
| 2021 | 6 |
| 121,000 |
| 0.9 | % | 18.25 |
| 49 |
| 137,000 |
| 5.8% | 36.05 |
| 55 |
| 258,000 |
| 1.7 | % | 27.70 |
|
| 2022 | 3 |
| 69,000 |
| 0.5 | % | 9.70 |
| 42 |
| 116,000 |
| 4.9% | 38.21 |
| 45 |
| 185,000 |
| 1.2 | % | 27.57 |
|
| 2023 | 8 |
| 230,000 |
| 1.8 | % | 21.66 |
| 29 |
| 76,000 |
| 3.2% | 40.80 |
| 37 |
| 306,000 |
| 2.0 | % | 26.42 |
|
| 2024 | 7 |
| 129,000 |
| 1.0 | % | 14.30 |
| 42 |
| 121,000 |
| 5.2% | 36.37 |
| 49 |
| 250,000 |
| 1.6 | % | 24.98 |
|
| 2025 | 10 |
| 329,000 |
| 2.6 | % | 19.78 |
| 27 |
| 90,000 |
| 3.9% | 34.87 |
| 37 |
| 419,000 |
| 2.8 | % | 23.02 |
|
| 2026 | 7 |
| 184,000 |
| 1.4 | % | 14.52 |
| 47 |
| 130,000 |
| 5.5% | 36.13 |
| 54 |
| 314,000 |
| 2.1 | % | 23.47 |
|
| 2027 | 8 |
| 300,000 |
| 2.4 | % | 17.32 |
| 30 |
| 81,000 |
| 3.5% | 29.31 |
| 38 |
| 381,000 |
| 2.5 | % | 19.87 |
|
| 2028 | 9 |
| 426,000 |
| 3.3 | % | 14.60 |
| 27 |
| 88,000 |
| 3.8% | 38.32 |
| 36 |
| 514,000 |
| 3.4 | % | 18.66 |
|
| 2029 | 13 |
| 435,000 |
| 3.4 | % | 21.00 |
| 21 |
| 77,000 |
| 3.3% | 41.73 |
| 34 |
| 512,000 |
| 3.4 | % | 24.12 |
|
| Thereafter | 175 |
| 9,449,000 |
| 73.5 | % | 21.39 |
| 165 |
| 766,000 |
| 32.7% | 44.18 |
| 340 |
| 10,215,000 |
| 67.2 | % | 23.10 |
|
| Subtotal/Average | 259 |
| 12,071,000 |
| 93.9 | % | $ | 20.42 |
| 621 |
| 2,062,000 |
| 88.0% | $ | 39.67 |
| 880 |
| 14,133,000 |
| 93.0 | % | $ | 23.22 |
|
| Vacant | 20 |
| 781,000 |
| 6.1 | % | N/A |
| 114 |
| 282,000 |
| 12.0% | N/A |
| 134 |
| 1,063,000 |
| 7.0 | % | N/A |
|
| Total/Average | 279 |
| 12,852,000 |
| 100 | % | N/A |
| 735 |
| 2,344,000 |
| 100% | N/A |
| 1,014 |
| 15,196,000 |
| 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 $6.18 per square foot as of March 31, 2019.
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of March 31, 2019 | | |
| (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% | 122.00 | — | Z Gallerie |
| Connecticut: | | | | | |
| Newington | 189,000 |
| 100.0% | 9.97 | — | Walmart, Staples |
| Maryland: | | | | | |
Baltimore (Towson)(6) | 155,000 |
| 100.0% | 24.09 | — | Staples, HomeGoods, Golf Galaxy, Tuesday Morning, Five Below, Ulta, Kirkland's, Sprouts |
| Glen Burnie | 129,000 |
| 100.0% | 10.21 | — | Gavigan's Home Furnishings, Pep Boys |
| Rockville | 94,000 |
| 98.0% | 27.56 | — | Regal Entertainment Group |
Wheaton (leased through 2060)(3) | 66,000 |
| 100.0% | 16.70 | — | Best Buy |
| Massachusetts: | | | | | |
Cambridge (leased through 2033)(3) | 48,000 |
| 100.0% | 24.57 | — | PetSmart, A.C. Moore |
Milford (leased through July 2019)(3) | 83,000 |
| 100.0% | 9.01 | — | Kohl's |
| Springfield | 182,000 |
| 100.0% | 5.66 | — | Walmart |
| Missouri: | | | | | |
| Manchester | 131,000 |
| 100.0% | 11.17 | $12,500 | Academy Sports, Bob's Discount Furniture, Pan-Asia Market |
| New Hampshire: | | | | | |
Salem (leased through 2102)(3) | 37,000 |
| —% | — | — |
|
| New Jersey: | | | | | |
| Bergen Town Center - East, Paramus | 253,000 |
| 97.5% | 21.78 | — | Lowe's, REI, Kirkland's, Best Buy |
| Bergen Town Center - West, Paramus | 966,000 |
| 97.8% | 32.89 | $300,000 | Target, Century 21, Whole Foods Market, Burlington (under construction), 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% | 19.74 | $50,000 | Kohl's, ShopRite, Marshalls, Kirkland's |
Carlstadt (leased through 2050)(3) | 78,000 |
| 100.0% | 23.69 | — | Stop & Shop |
| Cherry Hill (Cherry Hill Commons) | 263,000 |
| 70.8% | 10.72 | — | Walmart |
| Cherry Hill (Plaza at Cherry Hill) | 420,000 |
| 73.3% | 13.38 | $28,930 | LA Fitness, Aldi, Raymour & Flanigan, Restoration Hardware, Total Wine, Guitar Center, Sam Ash Music |
| East Brunswick | 427,000 |
| 100.0% | 14.37 | $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 |
| 98.2% | 21.62 | $63,000 | The Home Depot, Dick's Sporting Goods, Saks Off Fifth, Marshalls, Forever21 Red, Paper Store |
| East Hanover (280 Route 10 West) | 28,000 |
| 100.0% | 34.71 | — | REI |
| East Rutherford | 197,000 |
| 98.3% | 12.68 | $23,000 | Lowe's |
| Garfield | 289,000 |
| 100.0% | 15.22 | $40,300 | Walmart, Burlington, Marshalls, PetSmart, Ulta |
| Hackensack | 275,000 |
| 99.4% | 23.66 | $66,400 | The Home Depot, Staples, Petco, 99 Ranch |
| Hazlet | 95,000 |
| 100.0% | 3.70 | — | Stop & Shop(5) |
| Jersey City (Hudson Mall) | 382,000 |
| 81.7% | 16.85 | $24,149 | Marshalls, Big Lots, Retro Fitness, 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, 2019 | | |
| (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 | 151,000 |
| 100.0% | 16.31 | — | The Home Depot, PetSmart |
| Lodi (Route 17 North) | 171,000 |
| —% | — | — | |
| Lodi (Washington Street) | 85,000 |
| 87.6% | 21.95 | — | Blink Fitness, Aldi |
| Manalapan | 208,000 |
| 90.3% | 18.81 | — | Best Buy, Bed Bath & Beyond, Raymour & Flanigan, PetSmart |
| Marlton | 218,000 |
| 100.0% | 15.75 | $37,400 | Kohl's, ShopRite, PetSmart |
| Middletown | 231,000 |
| 98.3% | 13.62 | $31,400 | Kohl's, Stop & Shop |
| Millburn | 104,000 |
| 98.8% | 25.25 | $24,000 | Trader Joe's, CVS, PetSmart |
| Montclair | 21,000 |
| 100.0% | 26.20 | — | Whole Foods Market |
Morris Plains(6) | 182,000 |
| 66.1% | 25.73 | — | Kohl's |
| North Bergen (Kennedy Blvd) | 62,000 |
| 100.0% | 14.27 | — | Food Bazaar |
| North Bergen (Tonnelle Ave) | 410,000 |
| 100.0% | 20.70 | $100,000 | Walmart, BJ's Wholesale Club, PetSmart, Staples |
| North Plainfield | 241,000 |
| 100.0% | 11.56 | $25,100 | Costco, The Tile Shop, La-Z-Boy, Petco, Da Vita Dialysis (lease not commenced) |
Paramus (leased through 2033)(3) | 63,000 |
| 100.0% | 47.18 | — | 24 Hour Fitness |
| Rockaway | 189,000 |
| 97.8% | 14.98 | $27,800 | ShopRite, T.J. Maxx |
South Plainfield (leased through 2039)(3) | 56,000 |
| 96.3% | 20.58 | — | Staples, Party City |
| Totowa | 271,000 |
| 100.0% | 17.45 | $50,800 | The Home Depot, Bed Bath & Beyond, buybuy Baby, Marshalls, Staples |
| Turnersville | 98,000 |
| 100.0% | 9.94 | — | Haynes Furniture Outlet (DBA The Dump), Verizon Wireless |
| Union (2445 Springfield Ave) | 232,000 |
| 100.0% | 17.85 | $45,600 | The Home Depot |
| Union (Route 22 and Morris Ave) | 278,000 |
| 100.0% | 17.26 | — | Lowe's, Burlington (lease not commenced), Office Depot |
| Watchung | 170,000 |
| 98.3% | 17.37 | $27,000 | BJ's Wholesale Club |
| Westfield (One Lincoln Plaza) | 22,000 |
| 89.9% | 35.18 | $4,730 | Five Guys, PNC Bank |
| Woodbridge (Woodbridge Commons) | 226,000 |
| 96.5% | 13.02 | $22,100 | Walmart, Family Discount Furniture |
| Woodbridge (Plaza at Woodbridge) | 414,000 |
| 61.7% | 18.29 | $55,340 | Best Buy, Raymour & Flanigan, Lincoln Tech, Harbor Freight, Retro Fitness |
| New York: | | | | | |
| Bronx (1750-1780 Gun Hill Road) | 77,000 |
| 100.0% | 36.26 | $24,500 | Planet Fitness, Aldi |
Bronx (Bruckner Boulevard)(6) | 375,000 |
| 82.0% | 26.91 | — | Kmart, Marshalls, ShopRite, Burlington |
| Bronx (Shops at Bruckner) | 114,000 |
| 72.1% | 39.94 | $11,432 | Marshalls, Old Navy |
| Buffalo (Amherst) | 311,000 |
| 100.0% | 10.74 | — | BJ's Wholesale Club, T.J. Maxx, Burlington (lease not commenced), HomeGoods, 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 (Meadowbrook Commons) (leased through 2040)(3) | 44,000 |
| 100.0% | 22.31 | — | Bob's Discount Furniture |
| Freeport (Freeport Commons) | 173,000 |
| 100.0% | 21.95 | $43,100 | The Home Depot, Staples |
| Huntington | 204,000 |
| 96.4% | 15.71 | — | Kmart, Marshalls, Old Navy, Petco |
| Inwood | 100,000 |
| 100.0% | 19.73 | — | Stop & Shop |
| Mt. Kisco | 189,000 |
| 96.4% | 16.46 | $13,865 | 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 |
| 76.9% | 40.09 | — | |
| Rochester | 205,000 |
| 100.0% | 3.08 | — | Walmart |
|
| | |
| URBAN EDGE PROPERTIES | | |
| PROPERTY STATUS REPORT |
| As of March 31, 2019 | | |
| (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 |
Rochester (Henrietta) (leased through 2056)(3) | 165,000 |
| 100.0% | 4.62 | — | Kohl's |
| Staten Island | 165,000 |
| 91.7% | 24.80 | — | Western Beef, Planet Fitness, Mavis Discount Tire |
| West Babylon | 66,000 |
| 97.6% | 17.83 | — | Best Market, Rite Aid |
Yonkers Gateway Center
| 437,000 |
| 98.2% | 17.40 | $31,310 | Burlington, Marshalls, Homesense, Best Buy, DSW, PetSmart, Alamo Drafthouse Cinema |
| Pennsylvania: | | | | | |
| Bensalem | 185,000 |
| 100.0% | 12.92 | — | Kohl's, Ross Dress for Less, Staples, Petco |
| Bethlehem | 153,000 |
| 94.5% | 8.47 | — | Giant Food, Petco |
| Broomall | 169,000 |
| 100.0% | 10.25 | — | Giant Food, Planet Fitness, A.C. Moore, PetSmart |
| Glenolden | 102,000 |
| 100.0% | 12.77 | — | Walmart |
| Lancaster | 228,000 |
| 100.0% | 5.07 | — | Lowe's, Community Aid, Mattress Firm |
Springfield (leased through 2025)(3) | 41,000 |
| 100.0% | 22.99 | — | PetSmart |
| Wilkes-Barre (461 - 499 Mundy Street) | 179,000 |
| 79.6% | 12.56 | — | Bob's Discount Furniture, Ross Dress for Less, Marshalls, Petco, Tuesday Morning |
Wyomissing (leased through 2065)(3) | 76,000 |
| 100.0% | 16.76 | — | 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 |
| 87.3% | 30.96 | $130,000 | Kmart, Forever 21 |
Montehiedra(6) | 539,000 |
| 93.3% | 18.55 | $114,476 | Kmart, The Home Depot, Marshalls, Caribbean Cinemas, Tiendas Capri |
| Total Shopping Centers and Malls | 15,196,000 |
| 93.0% | $18.28 | $1,520,232 | |
| WAREHOUSES: | | | | | |
| East Hanover Warehouses | 942,000 |
| 100.0% | 5.37 | $40,700 | J & J Tri-State Delivery, Foremost Groups, PCS Wireless, Fidelity Paper & Supply, Meyer Distributing, Consolidated Simon Distributors, Givaudan Flavors, Reliable Tire |
| Total Urban Edge Properties | 16,138,000 |
| 93.4% | $17.47 | $1,560,932 | |
(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 $20.59 per square foot.
(3) The Company is a lessee under a ground or building lease. Ground and building lease terms include exercised options and options that may be exercised in future periods. For building leases, the total square feet disclosed for the building will revert to the lessor upon lease expiration. At Salem, the ground lease is for a portion of the parking area only.
(4) Our ownership of Walnut Creek (Mt. Diablo) is 95%. Z Gallerie declared bankruptcy on March 11, 2019 and rejected this lease as of April 30, 2019.
(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, 2019 | | |
| (dollars in thousands) | | |
| | | |
|
| | | | | | | |
| 2019 Property Acquisitions: | | | | |
| | | | | | |
| None. | | | | | |
| | | | | | |
| 2019 Property Dispositions: | | | | |
| | | | | | |
| Date Disposed | Property Name | City | State | GLA | Price |
| 3/15/2019 | Chicopee | Chicopee | MA | 224,000 | $ | 18,600 |
|
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS | |
| As of March 31, 2019 | | |
| (in thousands, except square footage data) | | |
| | | |
|
| | | | | | | | | |
| ACTIVE PROJECTS | Estimated Gross Cost(1) | | Incurred as of 3/31/19 | Target Stabilization(2) | Description and status |
Bergen Town Center- Phase I(3) | $ | 57,800 |
| | $ | 55,200 |
| 3Q19 | Adding Burlington to the main mall and 15,000± sf adjacent to REI (Kirkland’s open in 10,000 sf); expanding Kay (open): replacing bank with Cava Grill (open) and Sticky's Finger Joint; (under construction); replacing east deck and upgrading west desk (complete) |
Bergen Town Center-Phase IIC(3) | 1,600 |
| | 900 |
| 3Q19 | Lands' End (open) and Chopt (executed and under construction) replacing dressbarn |
Tonnelle Commons(3) | 10,800 |
| | 9,700 |
| 4Q21 | 102,000± sf, adding CubeSmart self-storage facility on excess land (complete) |
Kearny Commons(3) | 9,900 |
| | 5,300 |
| 2Q20 | Expanding by 22,000 sf to accommodate a 10,000 sf Ulta and other tenants as well as adding a freestanding Starbucks (under construction) |
| Briarcliff Commons | 7,900 |
| | 4,300 |
| 4Q20 | Renovating facade; tenant repositioning; adding Chick-fil-A |
West Branch Commons(3) | 6,200 |
| | 200 |
| 4Q19 | Retenanting former Toys "R" Us box with Burlington |
Amherst Commons(3) | 6,000 |
| | 100 |
| 4Q19 | Retenanting former Toys "R" Us box with Burlington |
Garfield Commons - Phase II(3) | 5,400 |
| | 3,100 |
| 4Q19 | 18,000± sf of shops (Five Below open; balance of space under construction) |
The Plaza at Woodbridge(3) | 4,500 |
| | 800 |
| 2Q22 | Repurposing 82,000 sf of unused basement space into self-storage (under construction) |
Huntington Commons(3) | 4,500 |
| | 3,100 |
| 4Q19 | Converting 11,000± sf basement space into street-front retail |
Mt. Kisco Commons(3) | 2,700 |
| | 1,400 |
| 2Q20 | Converting former sit-down restaurant into a Chipotle and another quick service restaurant (under construction) |
Gun Hill Commons(3) | 1,700 |
| | 400 |
| 4Q19 | Expanding Aldi (executed) |
Woodbridge Commons(3) | 1,400 |
| | 1,100 |
| 2Q19 | Furniture store (open) replacing Syms |
Rockaway River Commons - Phase III(3) | 800 |
| | 800 |
| 2Q19 | Expanding ShopRite by 6,000± sf at its expense |
| | | | | | |
| Total | $ | 121,200 |
| (4) | $ | 86,400 |
| |
| | | | | | |
(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 has commenced. 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 for the quarter ended March 31, 2019.
(4) The estimated, unleveraged yield for total Active projects is 7% based on total estimated project costs and the incremental, unleveraged NOI directly attributable to the projects unless otherwise noted. 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. The unleveraged yield for projects related to vacant spaces as a result of bankruptcy is based on the total cash NOI directly attributable to the project and the estimated project costs.
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS | |
| As of March 31, 2019 | | |
| (in thousands, except square footage data) | | |
| | | |
|
| | | | | | | | | |
| COMPLETED PROJECTS | Estimated Gross Cost(1) | | Incurred as of 3/31/19 | Stabilization(2) | Description and status |
| Bruckner Commons | $ | 74,600 |
| | $ | 70,200 |
| 1Q19 | Renovated 3 buildings; retenanting 134,000± sf; Urban Health; Burlington, ShopRite, Boston Market, KicksUSA and T-Mobile (open), and Smashburger (executed) |
| The Outlets at Montehiedra | 18,100 |
| | 18,100 |
| 3Q18 | Redevelopment completed |
Yonkers Gateway Center(3) | 10,100 |
| | 6,900 |
| 1Q19 | Repositioned vacant grocer box with Marshalls & Homesense (both are completed and open) |
Bergen Town Center-Phase IIA(3) | 8,500 |
| | 8,500 |
| 2Q18 | Added Best Buy |
| Goucher Commons - Phase II | 4,300 |
| | 4,200 |
| 4Q18 | Replaced hhgregg with Sprouts |
Marlton Commons(3) | 3,200 |
| | 3,200 |
| 2Q18 | Added Shake Shack and honeygrow on new pad |
Bergen Town Center-Phase IIIA(3) | 2,300 |
| | 2,200 |
| 4Q18 | Moved Children's Place to former Payless space; retenanted 8,500 sf of 10,000 sf with Express |
Lawnside Commons(3) | 2,100 |
| | 2,100 |
| 3Q18 | Added Mattress Firm and T-Mobile |
Governors Commons(3) | 1,800 |
| | 1,800 |
| 4Q18 | Added Bubba's 33 restaurant on new pad |
Bergen Town Center-Phase IIB(3) | 1,400 |
| | 1,300 |
| 1Q19 | Replaced Pot Belly & Pei Wei with Ruth’s Chris Steakhouse |
Cherry Hill Commons(3) | 500 |
| | 400 |
| 4Q18 | Added Panda Express restaurant on new pad |
| Total | $ | 126,900 |
| (4) | $ | 118,900 |
| | |
|
| | |
FUTURE REDEVELOPMENT(5) | Location | Opportunity |
| Lodi | Lodi, NJ | Redevelop entire center; develop outparcel building, and add self-storage |
| Bergen Town Center | Paramus, NJ | Develop a mix of uses including residential, hotel, and/or office; common area improvements and enhancements to improve merchandising |
| The Plaza at Cherry Hill | Cherry Hill, NJ | Renovating center |
| The Outlets at Montehiedra | San Juan, PR | Developing 20,000± sf retail on excess land; marketing |
| Marlton Commons | Marlton, NJ | Develop new small shop space and renovate facade |
| Briarcliff Commons | Morris Plains, NJ | Retenant former ShopRite box, add pad site, common area improvements |
| The Shops at Bruckner | Bronx, NY | Retenant end-cap anchor space, facade renovations and common area improvements |
| The Plaza at Woodbridge | Woodbridge, NJ | Retenant former Toys "R" Us box with three junior anchors |
| Hudson Mall | Jersey City, NJ | Develop a mix of uses surrounding Hudson Mall as well as redeveloping parts of the mall to create a retail destination
|
(1) Estimated gross cost includes the allocation of internal costs such as labor, interest and taxes.
(2) Stabilization reflects the first quarter in which at least 80% of the expected cash NOI from the project has commenced. A project achieving 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.
(3) Results from these properties are included in our same-property metrics.
(4) The estimated unleveraged yield for Completed projects is 8% based on the total estimated project costs of and the incremental unleveraged NOI expected from the projects. The incremental unleveraged NOI for 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.
(5) The Company has identified future redevelopment opportunities which are, or will soon be, in preliminary planning phases and as such, may not ultimately become active projects. Proceeding with these investments is subject to many factors outside of the Company's control, and it is possible that municipal or other approvals may delay or suspend our ability to proceed with such plans.
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEBT SUMMARY | |
| As of March 31, 2019 and December 31, 2018 | | |
| (in thousands) | | |
| | | |
|
| | | | | | | |
| | March 31, 2019 | | December 31, 2018 |
| Fixed rate debt | $ | 1,391,432 |
| | $ | 1,392,659 |
|
| Variable rate debt | 169,500 |
| | 169,500 |
|
| Total debt | $ | 1,560,932 |
| | $ | 1,562,159 |
|
| | | | |
| % Fixed rate debt | 89.1 | % | | 89.1 | % |
| % Variable rate debt | 10.9 | % | | 10.9 | % |
| Total | 100 | % | | 100 | % |
| | | | |
| | | | |
| Secured mortgage debt | $ | 1,560,932 |
| | $ | 1,562,159 |
|
| Unsecured debt | — |
| | — |
|
| Total debt | $ | 1,560,932 |
| | $ | 1,562,159 |
|
| | | | |
| % Secured mortgage debt | 100 | % |
| 100 | % |
| % Unsecured mortgage debt | N/A |
| | N/A |
|
| Total | 100 | % | | 100 | % |
| | | | |
| Weighted average remaining maturity on secured mortgage debt | 6.4 years |
| | 6.7 years |
|
| | | | |
| | | | |
| Total market capitalization (see page 16) | $ | 3,977,905 |
| | |
| | | | |
| % Secured mortgage debt | 39.2 | % | | |
| % Unsecured debt | — | % | | |
| Total debt : Total market capitalization | 39.2 | % | | |
| | | | |
| | | | |
Weighted average interest rate on secured mortgage debt(1) | 4.13 | % | | 4.12 | % |
| | | | |
Note: All amounts and calculations exclude unamortized debt issuance costs on mortgages payable.
(1) Weighted average interest rate is calculated based on balances outstanding at the respective dates.
No amounts are currently outstanding on our unsecured $600 million line of credit. To the extent borrowing occurs, our borrowing rate is LIBOR plus 1.15% and our annual facility fee is 0.20%, based on our current leverage ratio as defined in the revolving credit agreement. The line of credit matures in March 2021 and has two six-month extension options.
|
| | |
| URBAN EDGE PROPERTIES | | |
| MORTGAGE DEBT SUMMARY | |
| As of March 31, 2019 (unaudited) and December 31, 2018 | | |
| (dollars in thousands) | | |
| | | |
|
| | | | | | | | | | | |
| Debt Instrument | Maturity Date | Rate | March 31, 2019 | December 31, 2018 | Percent of Debt at March 31, 2019 |
| Montehiedra (senior loan) | 7/6/21 | 5.33 | % | $ | 84,476 |
| $ | 84,860 |
| 5.4 | % |
| Montehiedra (junior loan) | 7/6/21 | 3.00 | % | 30,000 |
| 30,000 |
| 1.9 | % |
Cherry Hill (Plaza at Cherry Hill)(4) | 5/24/22 | 4.09 | % | 28,930 |
| 28,930 |
| 1.9 | % |
Westfield (One Lincoln Plaza)(4) | 5/24/22 | 4.09 | % | 4,730 |
| 4,730 |
| 0.3 | % |
Woodbridge (Plaza at Woodbridge)(4) | 5/25/22 | 4.09 | % | 55,340 |
| 55,340 |
| 3.5 | % |
| Bergen Town Center - West, Paramus | 4/8/23 | 3.56 | % | 300,000 |
| 300,000 |
| 19.2 | % |
| Bronx (Shops at Bruckner) | 5/1/23 | 3.90 | % | 11,432 |
| 11,582 |
| 0.7 | % |
Jersey City (Hudson Mall)(3) | 12/1/23 | 5.07 | % | 24,149 |
| 24,326 |
| 1.6 | % |
Yonkers Gateway Center(5) | 4/6/24 | 4.16 | % | 31,310 |
| 31,704 |
| 2.0 | % |
| Las Catalinas | 8/6/24 | 4.43 | % | 130,000 |
| 130,000 |
| 8.3 | % |
Jersey City (Hudson Commons)(1) | 11/15/24 | 4.39 | % | 29,000 |
| 29,000 |
| 1.9 | % |
Watchung(1) | 11/15/24 | 4.39 | % | 27,000 |
| 27,000 |
| 1.7 | % |
Bronx (1750-1780 Gun Hill Road)(1) | 12/1/24 | 4.39 | % | 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 | 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 |
| 3.3 | % |
| Woodbridge (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 |
| 4.3 | % |
| 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 (Freeport Commons) | 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(2) | 11/15/34 | 6.40 | % | 13,865 |
| 13,987 |
| 0.9 | % |
| Total mortgage debt | | 4.13 | % | $ | 1,560,932 |
| $ | 1,562,159 |
| 100 | % |
| Unamortized debt issuance costs | | | (11,453 | ) | (11,917 | ) | |
| Total mortgage debt, net | | | $ | 1,549,479 |
| $ | 1,550,242 |
| |
| |
(1) | Bears interest at one month LIBOR plus 190 bps. |
| |
(2) | The mortgage payable balance on the loan secured by Mt Kisco includes $1.0 million of unamortized debt discount as of both March 31, 2019 and December 31, 2018, respectively. The effective interest rate including amortization of the debt discount is 7.27% as of March 31, 2019. |
| |
(3) | The mortgage payable balance on the loan secured by Hudson Mall includes $1.2 million of unamortized debt premium as of both March 31, 2019 and December 31, 2018, respectively. The effective interest rate including amortization of the debt premium is 3.78% as of March 31, 2019. |
| |
(4) | Bears interest at one month LIBOR plus 160 bps. |
| |
(5) | The mortgage payable balance on the loan secured by Yonkers Gateway Center includes $0.7 million of unamortized debt premium as of both March 31, 2019 and December 31, 2018, respectively. The effective interest rate including amortization of the debt premium is 3.67% as of March 31, 2019. |
|
| | |
| URBAN EDGE PROPERTIES | | |
| DEBT MATURITY SCHEDULE | |
| As of March 31, 2019 (unaudited) and December 31, 2018 | | |
| (dollars in thousands) | | |
| | | |
|
| | | | | | | | | | | | | | | |
| Year | Amortization | Balloon Payments | Premium/(Discount) Amortization | Total | Weighted Average Interest rate at maturity | Percent of Debt Maturing |
2019(1) | $ | 3,148 |
| $ | — |
| $ | 248 |
| $ | 3,396 |
| 4.6% | 0.2 | % |
| 2020 | 7,236 |
| — |
| 331 |
| 7,567 |
| 4.5% | 0.5 | % |
| 2021 | 8,020 |
| 114,476 |
| 331 |
| 122,827 |
| 4.7% | 7.9 | % |
| 2022 | 11,565 |
| 89,000 |
| 331 |
| 100,896 |
| 4.1% | 6.5 | % |
| 2023 | 14,683 |
| 329,432 |
| 308 |
| 344,423 |
| 3.7% | 22.1 | % |
| 2024 | 13,036 |
| 261,360 |
| (26 | ) | 274,370 |
| 4.3% | 17.6 | % |
| 2025 | 9,166 |
| 23,260 |
| (61 | ) | 32,365 |
| 4.1% | 2.1 | % |
| 2026 | 8,949 |
| 115,104 |
| (61 | ) | 123,992 |
| 3.9% | 7.9 | % |
| 2027 | 5,900 |
| 259,123 |
| (61 | ) | 264,962 |
| 4.3% | 17.0 | % |
| Thereafter | 15,095 |
| 271,455 |
| (416 | ) | 286,134 |
| 4.2% | 18.2 | % |
| Total | $ | 96,798 |
| $ | 1,463,210 |
| $ | 924 |
| $ | 1,560,932 |
| 4.1% | 100 | % |
| | Unamortized debt issuance costs | | (11,453 | ) | | |
| | Mortgage debt, net | | $ | 1,549,479 |
| | |
(1) Remainder of 2019.
