UE - Earnings call 2 2021 | Urban Edge Properties

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Operator

Greeting, ladies and gentlemen, and welcome to the Urban Edge Properties Second Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Ms. Jennifer Holmes, Chief Accounting Officer. Thank you, ma'am. ahead. go Please,

Jennifer Holmes

welcome conference and Edge second Propertiesâ€™ Good to earnings call. quarter morning, Urban

today Chairman Counsel. Chief Joining Officer; Jeff and Development; are me Olson, Investment Chief Chief De EVP Officer; Officer; Herb Danielle Eilberg, Mark Milton, and Financial Chris Officer; Weilminster, General Operating Rob Vita, of Langer, Executive Chief

company to of and financial the performance, Please note, forward-looking not contain and events may does risks statements about uncertainties are update. future subject numerous to today's discussion the assumptions, and company's views undertake which which

our Our for business actual also future may the differ results, website with financial information more condition materially. and Please the refer filings our company. are which SEC, about available on to

measures today, In available we release supplemental our website. are will and our earnings of in financial our package section discussion of these Investors GAAP in to the disclosure certain results to non-GAAP refer measures. Reconciliation

Chief Chairman Jeff At Olson. to introduce this our is pleasure time, Executive Officer, my and it

Jeffrey Olson

from everyone. Great. Thank more you, heard to like they from Jen, our morning, us. hear and We that would investors many good of

in plan year calls business provide update then up Weilminster XX% environment by Chris a our to XX% these over scheduling grew to share, I financial it last adjusted compared and Same-property to great prior going including our $X.XX to to twice Mark redevelopment, had turn do operating an of to on Langer results. year. quarter, a investor We a will about cover as generating talk to the and FFO we compared NOI, am more So roadshows. addition year.

sector reserved of tenant a $X.XX from is share results Our collections from previously receivables. retail strong. The benefited

to XX%, occupancy increased we increase basis leased During point 'XX. the to a XQ XX quarter, same-property compared

furnishings, has leasing The home under Our square discounters, is and of and medical active feet the X beauty, space million uses. off-price restaurants most categories negotiation. retailers, it health grocers, quick-service ever been include over largest with pipeline

our who XX how XX% pre-COVID stock XX, performing the look have favorite top is by traded in stock average, my publicly points data top One equity peak retailers retailers markets. are to the at XXXX. market our on February of the of since increased On are prices

One leading X% that our million NOI rent, NOI. not of gross up yet current rent $XX executed future of is best from growth the of coming our indicators amounts have last This million from of approximately to the leases commenced quarter. $XX

approximately We have million another rent X% NOI. absorb under $XX that representing existing negotiation of should vacancy of

NOI. visibility we which by to Taken bring NOI together, XX%, to would back increase pre-COVID have us

driving or hopeful Anchor low-risk, like NOI are $XX million anchor in anchor reach that Maxx where and relatively bulk straightforward investments construction. Toys Us to a grocer are XXXX. like Burlington. executed we pre-COVID leasing "R" We into vacancy The high-return or now prior the of late converting discounter each a taking ShopRite and redevelopment as former costs leases These repositioning project Kmart are will is T.J. redevelopment projects our investments we are or activity. a projects only around are

an X% based from assets generate Cap negotiation. from creates XX% million mix our of and redevelopment yield. upgrading the of to plan increase We tenant projects asset our to $XXX redevelopments in value. underway compression have We rate XX% active grocery-anchored to expected leases underway value percentage of resulting additional on

highest reported industry. about number generates in foot the grocer in average $XXX Our a the sales,

to the replace Hudson and Mall Fallas activate Bergen next replace at of and to Us to at X largest million another we $XXX Century redevelopment X "R" shop high-quality year. Toys anchor Center. Toys that vacancy Town retailers include adding and projects anchors adding over leasing at vacancies have The the interior hope projects We the Bruckner XX the vacancies,

have and Pricing durable attracted low-cost the capital embraced cash-on-cash can an collections demand is of due at XX%. one X.X% to retail new for abundance shopping for at why return, where are even buying leveraged an open-air an to pandemic. are mortgage easy generate or and equity cap high-quality increased and that over levels It's above investors obtaining has investors sector open-air X% to to during even XX-year normalized, see asset X.X% rate centers. a pre-COVID a X% and to recognition stores As retail X% have a at centers flows debt cash

sub-X% the in This is industrial especially the seeing multifamily investors for are yield-starved sectors. attractive and cap we considering rates

encouraged for growing as demand are selected sell the properties. by We to noncore assets we look

a $XX of or LOI, sold at have of million have approximately year-to-date noncore rate assets We cap approximately under X%.

into We are East square located at properties we in stabilized which cap of foot are rate Hanover, Jersey, New industrial our industrial redeploying million park X%. buying X approximately that proceeds near are these X a

XXXX strategy leverage York in levels many industrial gaining Metro have Our is Lodi, New that We increased infrastructure the Throughout opportunity to our creating uses in equal of retail Jersey. to assets, mix existing densifying for retailer properties and area, during momentum. conversion and New our first industrial to big-box upgrading exceed our our nonretail even us with retail to or merchandise intend submarkets an rents rents, relationships. deliver

remains and to sheet balance growth is Our well strong our aligned strategy.

and including undrawn $XXX liquidity, of million of billion $X approximately $XXX million line cash almost a have credit. We of

allows acquisition is fund the sheet on program leasing our be and and front. to opportunistic to positioned us Our development balance

am the is I team of proud most one and of industry. talented in our groups it the believe

Senior premium including our and Simon John Executive Development, XX also execution a lead join than of Development, Vita, President of Cross brings from outlet over of redevelopment Leasing, this experience, Plaza the We Garden Center. developed more American us have De projects. of Danick, Senior people number Danielle Simon significant Vice on centers. of of County from some billion where Villapiano, President she And had year. years came retail Vice to Dream, Vice Sandi President senior $X State came at of

financial Board expertise. senior markets serves Givens. housing REIT. Senior Investment She New York newest New Susan and real member, welcome Susan and brings our has capital in experience currently CEO excited to of as Stock listed We are a Exchange valuable also the Group, significant estate

good Overall, the and that about development the is we very state underway. of progress current retail leasing and feel

We half the are entering shape. year in excellent of the back

now Chris? Operating turn to it will Chief I our Officer. Weilminster, over Chris

Christopher Weilminster

everyone. Jeff, and good you, Thank morning,

I activity all would to has take comment months. our solid put reiterate Jeff's faced on the months. to foundation First, what like life appreciative work XX come Edge us hard X regarding past challenges past Urban have so of of team through that a advantage leasing the the The the over we proud and of I'm accomplished to team. we the over

executing XX highest the totaling XXX,XXX square one Edge leases in points feet, quarter increased any Overall, an Urban had quarter XXXX. XX same impressive team to occupancy basis since new we property level The at courses, by KX entertainment food square primarily ropes lease racing, SixtyXÂ at bowling, with venue, Sector Sector and and driven the lots XX% an foot immersive Puerto of offering Las beverage. Catalinas XXX,XXX in SixtyXÂ is gaming Rico.

from exciting record Kmart and This an vacant living of operator draw on million a use families island box. the X approximately has within people for is This track property. will an a proven hour the

base. for rent retail rent demand quarter. on do Our of feet Sector X mid-single leasing opportunities the which expected million SixtyX, X% the of we our the quarter across creating tenant space new receive The a to spreads is positive in from spreads multiple not square increase we include negotiation In breadth low percentage upgrade expect to should deals total, digits. over for with spreads have categories under us to to our for

of the positive decline It for the retail the industry. weakest COVID the is exciting concepts. accelerated of new opportunities growth relevant momentum to retailers, creating see well-funded,

Shop retailer uptick Five led TJX Below, Ulta, throughout Northwell New BJâ€™s, Aldiâ€™s, as concepts, CityMD such lots huge by Uncle and retailers Giuseppe's. Stop a Metropolitan York We Burlington, have multiple and the leasing of like medical Sephora, seen Shoprite, including and and in brand activity grocers, multiple thriving Target, DICK'S, its uses, area, &

is primarily First and &pizza, food the with and food Gregorys Shake Mighty for beverage Coffee, Watch, Shack, Cookies Another appetite insatiable hot category Names have quick Chick-fil-A. operators, and Crumbl which include an growth. Quinnâ€™s, service fast

Sephora, convenient, to off-mall serve customers. mall Gap LensCrafters, Body These expensive, locations numerous such seeking locations looking as less & in are traditional better Bath discussions Works. We their are retailers Express, with more for open-air Skechers, retailers and

physical success importance retailing a across when as Our digital and the thriving reiterate physical recognized where the is continue to an is create retail ingredient ecosystem space. stores essential of partners the blended to customer journey

De Our striving to destination. the the desired communities. Vita help as visible objective Danielle retailers with her One and aspect this optimal redevelopment our that bring I customers open-air tenant job strategic centers surrounding to mix to team accomplish reimagine is opportunities, we parking with partnering a my really enjoy of convenient

at Commons mix, with properties estate uses other have our Bruckner many Yonkers assets. creatively of tremendous retail on complement existing Mall, Town our We real that Gateway, to potential other types Center, Hudson will our densify and Bergen

X.X We merchandising are Sandi past be our Danick to strategy thrilled years energy the will welcome to endless leading Dream. focusing spent team. Sandi on behalf that American the off-mall and at her Edge tenants leasing leasing and for on traditional are of an Urban the our Town Center looking attention as retailers being ambassador at as well upgrading locations. mall-based Bergen to now Sandi

most back crystal well relevant, is communities. best The our focus Edge. our the is The that team of focused at in and tackling and occupancy serve task clear: the and needs team's done required with driving creditworthy Urban partnership leasing The blocking occupancy and retailers increase objective is with XX%. to surrounding that accomplish collaboration on to every is department recovery will underway,

Mark?

Mark Langer

focus X areas morning. Chris. comments my will I Thanks, on morning. Good this

then some NOI balance comments drivers second, ESG and efforts. results; future related and the of to on quarter our data with will and First, conclude our FFO growth, second sheet I points

levels A First, points the of continued in data We to put in in expected NOI second momentum this results. help rent perspective. quarter earnings of collections. due our and may terms few exceeded

the was given significant The majority for of point the established closures point uncollected and reserves high second and mandated rents of of for uncertainty quarter XXXX our vast affecting second deemed When collections million low closed uncollectable in in we last books the portfolio. $XX.X of year, we the reserved rents was we our approximately quarter. our rate quarter and collection XX% our the

new and is in and XX% Fast deemed quarter the our forward to to today amounts dropped rate uncollectable million. for reserves $X.X collection

fitness lump continue operator, in for on collections and few contributed amounts second the and received quarter restaurant a deemed receivables deemed a We a once furniture agreements uncollectable. to to the tenants recover We previously sum of apparel $X.X finalized million collectively large which several large payments uncollectable. deferral chains, store, from tenants

the just up of added I of new $X.X $X.X for reserves reserves net credit million in balance million the uncollectible quarter $X.X ended This we that referenced, we a so million exceeded this quarter. with

deemed amounts detailed total of basis. portfolio that XX% in and and ABR second our where to supplement, all basis on approximately currently new reserves provided Substantially, about trends for a cash note have of tenants. collection We is Pages uncollectible cash XX XX receivables disclosures on the pertained quarter we

to leased Turning fundamentals. XX XX%. increased the Same-property occupancy points to basis

have leasing and have As made and on great we Jeff spaces. noted, anchor progress seen shop activity increased Chris have spaces

expect the NOI starting XXXX. forward, will half executed leases of that yet Looking have that contributions pertain meaningful not to have to we $XX the rents annual million rent gross commenced that of in first

all should XXXX. quarter fourth by the Substantially of commence rents

For generated come be to modeling year, $XX currently online, million purposes, grow million will we will $XX expect XXXX. to at how in XXXX $X before which assess later million the stabilizing in this to almost million $X.X

quarter, balances. FFO previously as share adjusted perspective, share a benefited reserved a of during earnings from an on $X.XX the we collections reported $X.XX of From which

factored the earnings million, of reserved as be during is are We remaining modification almost bulk of of in half such rents unpaid amounts about back will expect of tenants basis. from year, cash deferred the which The the balance future to agreements which COVID million a $X should reversals on of these entered agreements moderate with currently estimates. into $X the expectation

will we currently forward do respective on expect of over periods. the given that reversals deferrals, going they time XX% reserves occur collecting deferral Considering payback we additional are but

total of our In terms line quarter credit. of ended cash have on $XXX our no $XXX we drawn liquidity, balance of and and the sheet million amounts with million

due and in aggregating debt no coming have $XX mortgages maturing this XXXX. X only year We have million

cash fund pipeline to intend use to our We acquisitions. and for our redevelopment

report value-add to our good we at where seeking use. July. We purchase properties of put are pleased and beginning ESG were to the skillset We capital first issue to can our

and not focused spent past new, benefits which environmental principles of we impact report as employees years While the operate, on with the the providing several are report investing in the communities centers, their outlined is our the have cornerstone and reducing our the in we well-being. development in new, comprehensive

consumption our and The establishing next gas formal and to efforts phase and of improve water recycling. ESG reduce emissions waste greenhouse goals targets include

on focused transparency reporting providing to filings We added progress via policies employee also programs our GRESB future. our are forward We new expanding look developing wellness in the and and diversity. on

many investors look host we another when this meeting In fall early report year full of next with to results. forward earnings year will closing, we XXXX and our call our

to I call the turn the will now operator questions. over for

Operator

Instructions] first is coming Our ISI. from question Evercore [Operator Sakwa of Steve

Steve Sakwa

strategic you more there? if bit those in more the But there? sounds Or really wondering just little know you mentioned more anything mini transaction did. maybe to was bigger deal. was I And there of just about assets that could that Is deferral start. it situation? Jeff, you Hanover is next a driven XXXX a industrial park of East acquiring quickly the you was like tax it there own a it something industrial I

Jeffrey Olson

Right.

I as bolt-on it view value owner the more owning it I of And it than are adds more just think that mean lot market. in already a I we largest else. but tax there. think industrial properties was more anything deferral, a I

more. So solidifies just this it

Steve Sakwa

Okay. at Kmart switching refilling know Rico. the to box about the Chris And the then talked box. Puerto done And large getting starting there. some maybe transact to We're I down quickly assets just see

possible thoughts what some assets? Rico of about down kind Puerto on the exit your road? And how the be we at of are Just market should point of broader that kind thinking

Jeffrey Olson

was gearing for remember, We debt, an of Yes. I were secured to million I'm And to we're able up the a of that get done, refinancings we of refinance last to due sure the those year. to did able that that X those of middle mortgages $XXX it nature forgiven. just debt not almost COVID, get think both in And be exit. miracle.

with when Montehiedra, back. grow. we a user space assets, vacant Now have office the medical and working left at to least with fill years has to discounter At positioned We're working get We're couple Kmart very I it grocer. think, box it. on of are well a a we a a that that

So we a leasing act the will some And think Sector Las mentioned feel vacancy Chris there. then good at SixtyX, box Kmart about we up start to the Catalinas going that. to which of as catalyst

see assets, guess will Puerto the will, XX months, So XX you is higher over to those of growth portfolio. you next my in the than NOI the Rico balance from

continue So to momentum. we'd like that with

Steve Sakwa

maybe Okay. Sandi, Great. if And then Chris for she's maybe on. final and one

as what malls retailers of for look of open-air the portfolio like New additional Just or are York with some of your out curious kind possible some sites into either infill mall-based discussions at the of they sort relocations the of formats.

Christopher Weilminster

our seeing at out. what outward we're Manhattan as were Center at that that of Steve, sites to with a saw looking certainly assets, as an We for Town customer trend that some relocated our F&B players and of benefit from Sure. suburban in their relate service of and seeing, there's migration we're it lot certainly the City, repositioning larger Center. work Bergen the

and she's from that Sandi's light goods answer question, but more the now addition the now retailers, interest impressive. the soft making here, this or tunnel, soft that not amount now really with platform we're speak or based to been they the COVID through the being at has of that hearing see it end here of asset of Bergen goods a to

looking and the trade or at that I think looking a full is to malls had property line Center in either they're surrounding around concept value -- they in the have interest at sales opportunity showing a the Town at lot area the retailers time value they've something Bergen our the that in. a performances over might are support of that adding

we XX improving soft next the asset we focused the lot the mix Bergen more with going think progress mom-and-pop months, is see F&B XX very have more on we're to which I goods our and that but only in not in flavor, the on made bring a So to clearly, to over local of portfolio. throughout are something

Steve Sakwa

quick Chris, as a Sorry, follow-up. just

locations you to actually of additional sort you to mall more are them site? Or replacement the these as the network? suggesting a and physically some leave existing think you are of So do enhance come

Christopher Weilminster

both. it's think a that of mixture I

for think mall-based costs. and or line. additional mind value retailers that talking to are lower American Bergen, operating it And were that operating are benefits a think And a that then opportunities that there has full will and there Dream, within to cost I we're I all fixed as Garden you proposition, I be -- Paramus also their the think about Riverside, keep puts looking Bergen Park that Plaza, us. relates it middle in even in unique which of space which very State better

value into brands in really brand price. as proposition at these we that off-price or shop and to their convenient to as more opportunity for better a these provide So act getting place a add gateway consumers opportunity a market to interesting that a their

Jeffrey Olson

Steve, I'm that And malls that a Sephora, And going more. advertised Bath dozen American brands sure includes & plenty probably and Williams-Sonoma are into half at Eagle, there like Body, least mall have it already Gap, open-air retailers Express, they're centers. leaving

Christopher Weilminster

looking. they're Luxottica the and all really brands,

So it's starting to pick up.

Operator

next Hill Rich is from Our of question Stanley. Morgan coming

Richard Hill

want I start with maybe you. to Mark,

a last of that rental the really it's numbers wanted in couple or really bridge I a revenue to confirm it's to in bridge. because just best-in-class just And that early have You we maybe earnings night. dilutive morning appreciate.

you million help then and percentage recognized recovered billed Let us me both what percentage a that basis. on with $XX.X point dollar start a of remind leases cash a Could in was of amount? us

Mark Langer

can as and total of cash XX% about rate our billed a of ABR revenues And I base of for our collection -- total based. is of was disclosed, quarter cash overall, XX% we XX% So the Richard, basis. accrual on

the breakdown of our you give will So that collections.

Richard Hill

Okay. Got it.

picture, then, commentary about normalization can just back come point the be by I That's one really that you appreciate XX% bigger I end should helpful. One Jeff, clarification it's I the And from a of 'XX. to on. and focused question. of and maybe So

is you 'XX? about of is normalization, When talk versus versus XXXX? Or XQ that that

Jeffrey Olson

XXXX.

Richard Hill

think we're then the recovery, hearing commentary and divide it side occupancy? as that because are what recovery you're your that between that I down maybe to the the key I versus was you And about on rental to surprising. lost not separate lease is seeing is back the back which getting pre-COVID the Great. can you occupancy negotiations And note where is that year-over-year, And it occupancy to normal previously. to levels. mentioned

about that recovery So talk back of getting to at previously? can maybe how occupancy point they versus rents this up driven you by occupancy, is the much where were

Jeffrey Olson

coming think is of I the it majority from occupancy.

fact, In remarks, of and yet my the in by negotiation, mean, you million. I that at the $XX prepared another commenced, And if all leases look looking you gets not at $XX that amounting you're are is to take signed which then you million, rents that to are occupancy. other but driven

look mean the spreads rents at on vacant slightly I that pipeline. do a on going increase what's think we driving $XX of But you it re-lease the it. most a to of when what's will is X in space from

Richard Hill

Got it. That's helpful.

think better pretty seems some feels It we XQ second. lot lot incremental significant like XQ for maybe Certainly, XQ basis than open-air a XQ. there's than can a so a bullishly And centers. a better felt here for just and improvement sequential on

of for time, about the middle 'XX? about and think X months' this, be recovery lead the are of So you would as more a bullish you're where that talking call we're 'XX end to in versus you by this having what you looking

Jeffrey Olson

will looking upward more build find start I rents be -- environment to XX% to you'll just to if it's difficult to back the normalize think vacancy fills And it's fair New in a move of still rate, mean think if see I where York, still we retailers in marketplace. and which as likely including I to then that the then occupancy going particularly inflationary across sort in they grow, an I XX% of areas because more be, a vacancy in are product so country, Look, think expensive amount material. there's throughout to

Richard Hill

just yes. Got And me. final for final -- it. And one then one question

properties? pretty you're and Your what pick you a area, in store? demographics. seeing we fulfillment Can in think you strong online talk is positioned maybe some in about mile buy up portfolio tenants your And what is telling dense which are really about in last

Jeffrey Olson

of especially industrial. We're look it, talking some as about convert so many our to to into of them properties we

best know So happening Best discussions and those comments. any you are more I that Target say Buy want don't in regard. job to I'd probably regularly. are Chris, if the make doing

Christopher Weilminster

retailers, Jeff I the Yes, more agree real bricks-and-mortar the that and we're the side. estate and what commercial looking of space even home to have with to also saying finding what retailers, improvement retail are you're these with actually mentioned is ones supplement a fulfillment that

store doesn't product. So the think to room in about have supplemental all their white their stock goods have Home warehouse. Depot a that They

delivered store hours, buy taking the can up you it's So Depot it that's in not Home space. within but

shop talked Jeff to Hanover bolt-on retailers both delivery serve would have offer of holistic opportunity their convenience actually serving real convenient complement stores industrial, bricks-and-mortar they and really a as for retail we So East a in also of our and that acquisition the way. see about to that a customer component the more then and as of the more

So...

Jeffrey Olson

accelerated so is more or time. part or been Sears, a Pier in due that Rich, could you trouble, it I can JCPenney Lord the think demise a are my on Modell's. that out that of to of tell I've & of so were from the Kmart COVID have or or probably much am system. X many Taylor, And fact just They been the in Toys bullish So retailers I than long retail as voice,

percentage a and used of at-risk tenants our everybody lot be, for to goes that in sector. the than is less So it

Amazon. with And is retailers to what I did think out it ways made compete figure COVID

question. and our average retailers me it, ask are February to the COVID, within to call if you security you would Amazon which or public public, XX XXXX, opportunity had top you So in who the chosen? Rich, Prior let this invest have

Richard Hill

answer easy stock given done. what probably I pretty think that's Amazon a has

latter. I'll take former, the the not So

Jeffrey Olson

ironically is exactly the top is up Target's my then By our public my that retailers are same Amazon too of. wife. amount #X XXX%. what and the XX%, way, too, kids at is That's like XX there are and DICK'S said, that XXX% which and up

So my into invest expand hired retailers on that people figured the side, two Number capital leasing Amazon. on is why is needs. out hired more side their point to we've and businesses the stores more which which is have now compete they to why development ways to fill their to have people with we've those is

Operator

Our next question Dijkum of Floris Compass is from coming Point. Van

Floris Gerbrand van Dijkum

first Again, call. congrats on your

inaugural Your call.

Jeffrey Olson

delighted be I'm to here.

Floris Gerbrand van Dijkum

route a unfortunately, probably me... It's awakening, Yes. for you. The -- let

Jeffrey Olson

at all. all. at Not Not

Floris Gerbrand van Dijkum

sometimes So forest the I think people see forget through trees. the to

outlined, strongest over leases growth You those either guys just sector. negotiation, center the line, I'm of go just XX% to? get has in agreed the be been Could not of the one your you would to tell if shopping us if NOI mistaken, what's all of in you occupancy have got which or

Jeffrey Olson

I XX%. probably that Is is think about number that right?

Mark Langer

the which they XX%, at XXXX level had that. the were shops XX%. drive our -- quarter It's revert to XX%, would of anchors for is just would perspective, first a it to about over and ironically level XXXX. about of about Floris, we It gets second little obviously quarter gets And anchors is the XX%. the would which in The closer in come to the

perspective provides that that we're through of some that the comes So pipeline. recovery hoping

Jeffrey Olson

the before bankruptcies peaked occupancy our XX.X% at unfolding. remember, started And

Floris Gerbrand van Dijkum

So that brings...

Mark Langer

That is XX%, peak. the still all-time level XX% below

Floris Gerbrand van Dijkum

Yes.

trending a you're give also or there Bergen were us more a well, couple Century what maybe spreads NOI can Obviously, XX pretty box leasing if pretty impressive. that. appears flat. that be it are that of incremental your bit growth, in -- -- to how and talking drove presumably touch is plus you the XX% so about if what's So Maybe little to And if that? which can as add you deals expectations upon you negotiations on the potential

Jeffrey Olson

Yes.

down all, spreads, in really of that I Las in percentage any we because we're rent brought deal assume that leasing not it the mean, Catalinas was the what deal on expecting. first So did

reasonable expectation by percentage our of lease had amount. have rent would we New spreads a included X% increased

it we're that As with it. other XX, active it part the space. bulk can't excited anything about are on of having to we the about negotiations project. will really today think this relates a retailer Century consumers I that than more in retailer of as I say And really love the

Floris Gerbrand van Dijkum

you post-COVID maybe great. on if projects That's in And COVID or Bruckner and has larger made Mall can redevelopment of then the particularly touch positive less in recovery the -- you your some some just more has last, properties? upon portfolio, of Hudson the or

Jeffrey Olson

I mean, executed on later. let's just because assets be most X for rather developments. mixed-use fruit larger are those X of lowest projects can than that talk would rather larger about out anchor view going that's the properties our individually part, having of to those I as all redevelopments hanging those than And sooner because repositioning be the

Fallas box. well those replace toys box and we at vacant numbers the And we're Bruckner, terms So effectively will deals are are pipeline. that we of in I talked think have X that the included the underway. in anchors working the with They who now about vacant

of X the retailers this effectively have call in. with toys that is working would had there this thing a And anchor there quality are interior vacant week. box later maybe a other where credit similar tenants happen then make sort Hudson, that signed conference we're at it'll to have hoped at portion demall, we much And that -- we're for way space we imminent lease higher for where of coming and

years probably retail there, long answer but uses. we're some adding are And I'd that entitlement say the take include process. residential. there over upgrading of blend these will might the the of other include others, also a that's a know, a little to that's the run. types the primarily those as medical bit X office, is of It's through get at Those projects. to of looking So many might you couple On of uses of

Operator

from is question next coming Street. of Paulina Our Green Rojas

Paulina Rojas Schmidt

in we how based components? what to about portfolio? your compare? different should us how it total offered to achieve like the retail you think remind these please your Is exposure you targeted on uses Can also, could And returns possible I generalize expect do

Jeffrey Olson

Yes, I think you generalize. can

have I industrial that's to probably XX% look, our primarily and the I ability properties. and do and diversify of going long think years to we think about just that, X densifying into run, our residential. assets to take as those But over assets base the using So an it's existing

is it venture The process are entitlement a than land planning created a joint the we're we we'll an that and at And land going then on or for XXX that process. we the our or would value But important And time, earn we have the now through build we Once make sell not yield only did the on it between our do at could we that I that on decision to moment we least Does we a it are own differential point think all expect basis yield the sense? felt building to get sell where XX%. make developer. then that to today. a outright cap more we would received, whether versus rate if you at. it to residential example, entitlements it if in part would the the what's that's value, in will we own there we to do or to, have that project,

Paulina Rojas Schmidt

appetite could you your then And for -- disposition growth? your going question. What forward? an on update another acquisition please or Yes. How is plan external provide

Jeffrey Olson

and X years. selling do plus. the expected portfolio the next And $X So expect portfolio, fair first that's I think would To $XX to I at million $XX look about I dispositions, of million year over a all, probably billion should people that a a year, -- probably By the to year. sell extent think we'll were geography X which this are stable is that any so they I way, on we're that dispositions in in corridor that our leased we've maybe stable a a -- the or property to growth, there much assets, just cash the is might flows lower squarely maybe flowing D.C. more flow either isn't than cash Boston on line with mean, and be home what for a we're noncore focused asset. better before, up

merchandise to able can creativity doing would types do uses. assets portfolio, On we that be we're in and/or might that other exactly upgrade we asset on for are value-add really find capital or the looking with where need the to we are where what acquisition which side, mix be densify of either our existing opportunities of

buying the the so because well. the know well. market know more Metro New love area we'd York within tenants we We And so

largest mass. executive the We this that the much marketplace. COVID, leaders one especially these the Through of We're retail of and at there. have operators markets inside have of we knowledge about critical are more level,

So preference here. is more to our find

Operator

Securities. next Our Lucas from is Instructions] of Capital question Chris [Operator One coming

Christopher Lucas

again, for a really Just hosting of the helpful. quick call. couple ones. And thanks It's

on anchor the guys focused On again. lot -- leasing a you

the returns deals was curious rents So whether or to you're seeing pre-COVID? or of your having anchor within the to any, on of what, a I reallocation space thatâ€™s those either on not of kind sort impact if as box relative

Christopher Weilminster

reallocation as boxes, as -- specific I of are sure saying... the far I'm you We not question. Are understand that

Christopher Lucas

Showroom versus Chris. fulfillment. Showroom versus fulfillment,

Christopher Weilminster

right. sorry. I'm All

Rack, them and they're ship fulfillment them and space see like shop really not within their are taking from using the that of boxes specific to is they're as right Bergen We of a States. off Target actually them it's for at Players definitely doing orders showroom all sure, unless over seeing allocating Town floor. staff fulfillment United the Nordstrom Center, and retailer taking Target, we

as business So BOPIS Best out know, distribution Buy, stores. mile of their it retailer. they're doing with varies we all I the last in think, tremendous our

space merchandise. many really co-mingling They're not seeing with physical retailers taking the we're just stores. out But and their space within pick consumers actually using of of the to

Christopher Lucas

first for fallout tenant down. the Is people your has driving sort what's the of that the on been closing where to that? relative year, move the so fallout XXXX? just And of just to options of nonpayment because then rate What of sort sort in that in -- you've source of And brand half 'XX? what of that far Okay. seen the

Mark Langer

the fallout? been tenant What's driving

Christopher Lucas

Yes.

Mark Langer

the the think I one Well, biggest bankruptcy. was

Our XX a at Chris, accelerated biggest was was Bergen, bankruptcy. pretty Century hit, which

material. big, know So that's noteworthy the most I we fallout. And don't that then any have other

Christopher Weilminster

estate. rights head on we're with have to the where regard that it. We anticipating the hit better to I spaces retailers the through deals them I we've Mark but so that the of some restructured as backfill COVID, Kmart, uses not to the we nail with may real with, think of there's benefit we, got mean XX. the actually it's getting Sears control the Century work over it's -- got find termination

Christopher Lucas

Okay.

the then. refine question me Let maybe

look you rate the we at when it to quarter-to-quarter, mall space the maybe might shop the thought related was lease not. it's I So been down. have bought, but

So kind terms shop curious there. fallout of -- I'm small just of tenant the as you're to what in seeing tenant

Mark Langer

clear, you are be Is it right. just -- to Chris, so

looking occupancy, know, total particular, on gain sequentially. I in Sunrise occupancy, which at your a as excludes same question, I was fallout think Mall get There referenced, we in a you're Sunrise. shops a property portfolio now you

I was the that So to was link. disconnect trying

So about you premise. are your right

on Chris, his comment But demand question overall. you to shop can

Christopher Weilminster

overall. mean small we're seeing in definitely I demand uptick shop Yes. an

leasing got shop now, negotiations XXX team active. active in over incredibly primarily area. going the is on Our right small We've

occupancy we're upside So is of to very the and advantage as a focus shop, see we taking sure on we our where a mentioned razor rate huge that small earlier, with make demand.

where incredibly I that's a to it. quarters. team coming lot going over see of active Our And the we're with is pickup think

Jeffrey Olson

as looking beverage pipeline, at clearly seems and Chris, driver it the And within largest food that our shop demand. is I'm

think deals. have food the we square are and just of spaces for those feet XXX,XXX beverage. smaller And in I pipeline

Christopher Weilminster

that medical we're is in rest the It's such the XX% improvement, to the Yes. where field right where categories and of to they almost out take used locations HPA convenient opportunities really the representing active that were as just interest one services, of home medical interesting seeing. And the starts is that consumers. a to now fill

spot estate of the shopping a they great And well-located what real realize them category serve is in centers to best consumer. the is definitely we're seeing for that that now

that along both hospital of services expanding categories. as in So there's well that the is those activity lot medical as a other are field the

Christopher Lucas

Jeff guess, seen? you've Or as I as Is for as is seen And leasing or you've good prior there this? environment. as Chris, career last that relates the in period a professional your good just demand this as it demand question me, to

Jeffrey Olson

mean, darn I I top pretty good. It's the for would Chris. say this me, probably is

Christopher Weilminster

the with happened there F&B so is there's invest in said. COVID, just I think to And weaker out mentioned as see tenants, what's concept, I interesting think there of and earlier, just which waiting Yes. I agree capital great with you the much fallout Jeff the that's We're what side Jeff a that is was what that why hearing coming have of us from the growth. and concepts goods of our are active that and really of of really a and a great money out not balance there's supporting new a seeing retailers lot is all the peers discounters. category. lot retailers soft It's sheets, because really that

you what development. is -- were not fail. we're seeing see from But the that with new them COVID that opportunities That's fallout taking retailers

X So we happening. what what going for X, negotiate we're going that's And seeing one strong you're backfill that's to and better demand opportunities. we operators you're X rate, or have drive for If X drive supply-constrained -- we market. if very a And that's looking in of have where existing to terms, to we're space, need. is or X what's

to the is in portfolio supply Our regard one in with markets best constraints. country the of

real a is opportunity. this unique So

of a And new then. there now, through It's Great that still was a a was because pipeline right coming very new just out it different very of different thing what It different coming development was I was the development. no just -- the lot than experienced there's Recession.

-- preexisting advantage and really estate you're real driving value taking it's So of really that way.

Operator

to I'd for the end At this like floor turn the or session. to us our question-and-answer any additional time, brings of This closing back management to over comments.

Jeffrey Olson

time. you appreciate to doing We this again morning, look forward to and at everybody's year-end. talking we'll We Thank you this enjoyed Great. all.

Operator

participation. thank gentlemen, and This event. you for your concludes Ladies today's

your this have and day. time, disconnect wonderful lines You may a at

Urban Edge Properties (UE) 4 Aug 212021 Q2 Earnings call transcript