On this page of StockholderLetter.com we present the latest annual shareholder letter from Urban Edge Properties — ticker symbol UE. Reading current and past UE letters to shareholders can bring important insights into the investment thesis.
URBAN EDGE PROPERTIES 202 ANNUAL REPORT
To Our Shareholders: 2024 was another exceptional year for Urban Edge, reflecting significant progress in executing our strategic plan. We delivered an 8% increase in Funds from Operations (FFO), reaching $1.35 per share - achieving our three-year earnings target a full year ahead of plan. This strong performance was driven by capital recycling, record leasing volumes, and new rent commencements. Our stock generated a 22% total return in 2024, outperforming the Dow Jones U.S. Real Estate Strip Center Index by 500 basis points and by 3,500 basis points over the past two years. In January 2025, we proudly celebrated our 10-year anniversary as a public company. Today, we operate in one of the strongest environments for retail landlords in decades. Having successfully navigated significant challenges, including the rise of e-commerce and the pandemic, we are excited about the growth opportunities in brick-andmortar retail real estate over the next decade. Most high-quality vacancies have now been filled, and new construction has slowed significantly due to rising costs. The balance of power has clearly shifted in our favor. Consumers, retailers, and capital providers have reaffirmed the enduring importance of shopping centers, positioning us well to capitalize on the robust demand through our leasing, redevelopment, and investment strategies. Urban Edge maintains distinct competitive advantages. Our optimal size provides scale in our markets yet allows us to meaningfully increase earnings through single-property acquisitions. Our signed-but-not-opened pipeline is among the highest in the industry, and we continue to be among the sector s most active in accretive capital recycling. All of this is underpinned by our attractive geographic footprint, the Washington D.C. to Boston corridor, the nation s most densely populated, supply-constrained region. Record Leasing in 2024 We signed a record 79 new leases in 2024, totaling 485,000 square feet, achieving a same-space cash rent increase of 26%. Shop occupancy reached a record high of 91%, while overall occupancy in our same-property portfolio increased to 96.6%. These results build on our leasing momentum, which is expected to drive $43 million in additional net operating income (a 16% increase) by year-end 2027 from signed leases alone. Nearly half of this NOI growth will come from five shopping centers: Bruckner Commons (Bronx, NY) New tenants include BJ s Wholesale Club, Chick-fil-A, and Chipotle. Expected NOI increase: $9 million Bergen Town Center (Paramus, NJ) Seven new restaurants, including First Watch, Capon s Burgers, Tatte Bakery and Caf , Ani Ramen, and Tacoria, along with World Market. Expected NOI increase: $5 million Totowa Commons (Totowa, NJ) Tesla, Lidl, and Boot Barn. Expected NOI increase: $3 million The Plaza at Woodbridge in Woodbridge, NJ Trader Joe s, along with an off-price retailer, and the expansion of our self-storage facility. Expected NOI increase: $3 million The Outlets at Montehiedra in San Juan, PR T.J. Maxx, Ralph s Grocery, and The Urology Hub. Expected NOI increase: $3 million We anticipate additional NOI growth from leasing existing vacancies, raising rents to market rates, and pursuing selective acquisitions and redevelopment opportunities, helping us to reach our goal of growing FFO per share by 5% each year. UEDGE.COM
Our centers continue to benefit from improved co-tenancy as we add anchor tenants such as Trader Joe s, BJ s Wholesale Club, TJX, Burlington, and Ross to accompany high-quality shop tenants and quick-service restaurants such as Sephora, Club Pilates, Dave s Hot Chicken, Starbucks, and Tatte Bakery and Caf . These structural tenancy improvements provide lasting advantages, including stronger rent growth, higher occupancy rates, and significant value creation from cap rate compression. We anticipate the same trend will follow as we actively seek to recapture space from certain at-risk tenants currently in the news. Successful/Meaningful Redevelopment and Investment Activity Our development and construction teams had a productive year, completing $30 million in redevelopment projects expected to generate a 16% return. We ended the year with $163 million in anchor repositioning and redevelopment projects targeting a 15% return. These projects carry relatively low risk, as 90% of the planned costs are associated with pre-leased spaces. Our investment team was active as well, completing $243 million in acquisitions at a 7.2% cap rate and $109 million in dispositions at a 5.2% cap rate. Over the past 18 months, we executed $552 million in acquisitions at a 7.2% cap rate and $427 million in non-core, low-growth dispositions at a 5.2% cap rate. These transactions have expanded our presence in key markets such as Washington, D.C. and Boston, while refining our portfolio toward highergrowth assets. Strong Balance Sheet Our balance sheet is another competitive advantage, with nearly all our debt consisting of single-asset, nonrecourse mortgages. We maintain over $800 million in liquidity, including $91 million in cash and over $700 million available on our line of credit. Our debt maturity profile is highly manageable: only 9% of our outstanding debt matures through 2026, with just $24 million maturing in 2025 and $116 million maturing in December 2026, significantly reducing our exposure to near-term interest rate volatility. By year-end 2024, our net debt to adjusted EBITDA was 6.0x, below the 6.5x target communicated during our April 2023 Investor Day. We are fortunate to have a passionate, dedicated team and a highly engaged Board of Trustees. We are proud of the collaborative and dynamic culture we ve built over the past decade. I ve never been more confident in our team and strategic direction. Thank you for your continued investment and trust in Urban Edge. Jeffrey S. Olson Chairman and Chief Executive Officer March 28, 2025 UEDGE.COM 2
FORWARD-LOOKING STATEMENTS Certain statements contained herein 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, business and targeted occupancy may differ materially from those expressed in these forwardlooking statements. You can identify many of these statements by words such as approximates, believes, expects, anticipates, estimates, intends, plans, would, may or other similar expressions in this letter. Many of the factors that will determine the outcome of forward-looking statements are beyond our ability to control or predict and include, among others: (i) macroeconomic conditions, including geopolitical conditions and instability, which may lead to rising inflation and disruption of, or lack of access to, the capital markets, as well as potential volatility in the Company s share price; (ii) the economic, political and social impact of, and uncertainty relating to, epidemics and pandemics; (iii) the loss or bankruptcy of major tenants; (iv) the ability and willingness of the Company s tenants to renew their leases with the Company upon expiration and the Company s ability to re-lease its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant; (v) the impact of e-commerce on our tenants business; (vi) the Company s success in implementing its business strategy and its ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions and investments; (vii) changes in general economic conditions or economic conditions in the markets in which the Company competes, and their effect on the Company s revenues, earnings and funding sources, and on those of its tenants; (viii) increases in the Company s borrowing costs as a result of changes in interest rates, rising inflation, and other factors; (ix) the Company s ability to pay down, refinance, hedge, restructure or extend its indebtedness as it becomes due and potential limitations on the Company s ability to borrow funds under its existing credit facility as a result of covenants relating to the Company s financial results; (x) potentially higher costs associated with the Company s development, redevelopment and anchor repositioning projects, and the Company s ability to lease the properties at projected rates; (xi) the Company s liability for environmental matters; (xii) damage to the Company s properties from catastrophic weather and other natural events, and the physical effects of climate change; (xiii) the Company s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; (xiv) information technology security breaches; (xv) the loss of key executives; and (xvi) the accuracy of methodologies and estimates regarding our environmental, social and governance (collectively, our Corporate Responsibility or CR ) metrics, goals and targets, tenant willingness and ability to collaborate towards reporting CR metrics and meeting CR goals and targets, and the impact of governmental regulation on our CR efforts. 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 the Company's Annual Report on Form 10-K for the year ended December 31, 2024. We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for any forward-looking statements included in this letter. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this letter. 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 letter. 3
 • shareholder letter icon 3/28/2025 Letter Continued (Full PDF)
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 • Benford's Law Stocks icon UE Benford's Law Stock Score = 89


UE Shareholder/Stockholder Letter Transcript:

URBAN EDGE PROPERTIES
202  ANNUAL REPORT


To Our Shareholders:
2024 was another exceptional year for Urban Edge, reflecting significant progress in executing our strategic plan.
We delivered an 8% increase in Funds from Operations (FFO), reaching $1.35 per share - achieving our three-year
earnings target a full year ahead of plan. This strong performance was driven by capital recycling, record leasing
volumes, and new rent commencements. Our stock generated a 22% total return in 2024, outperforming the Dow
Jones U.S. Real Estate Strip Center Index by 500 basis points and by 3,500 basis points over the past two years.
In January 2025, we proudly celebrated our 10-year anniversary as a public company. Today, we operate in one of
the strongest environments for retail landlords in decades. Having successfully navigated significant challenges,
including the rise of e-commerce and the pandemic, we are excited about the growth opportunities in brick-andmortar retail real estate over the next decade. Most high-quality vacancies have now been filled, and new
construction has slowed significantly due to rising costs. The balance of power has clearly shifted in our favor.
Consumers, retailers, and capital providers have reaffirmed the enduring importance of shopping centers,
positioning us well to capitalize on the robust demand through our leasing, redevelopment, and investment
strategies.
Urban Edge maintains distinct competitive advantages. Our optimal size provides scale in our markets yet allows us
to meaningfully increase earnings through single-property acquisitions. Our signed-but-not-opened pipeline is
among the highest in the industry, and we continue to be among the sector   s most active in accretive capital
recycling. All of this is underpinned by our attractive geographic footprint, the Washington D.C. to Boston corridor,
the nation   s most densely populated, supply-constrained region.
Record Leasing in 2024
We signed a record 79 new leases in 2024, totaling 485,000 square feet, achieving a same-space cash rent
increase of 26%. Shop occupancy reached a record high of 91%, while overall occupancy in our same-property
portfolio increased to 96.6%. These results build on our leasing momentum, which is expected to drive $43 million in
additional net operating income (a 16% increase) by year-end 2027 from signed leases alone. Nearly half of this
NOI growth will come from five shopping centers:



Bruckner Commons (Bronx, NY)     New tenants include BJ   s Wholesale Club, Chick-fil-A, and Chipotle.
Expected NOI increase: $9 million
Bergen Town Center (Paramus, NJ)     Seven new restaurants, including First Watch, Capon   s Burgers,
Tatte Bakery and Caf  , Ani Ramen, and Tacoria, along with World Market. Expected NOI increase: $5
million
Totowa Commons (Totowa, NJ)     Tesla, Lidl, and Boot Barn. Expected NOI increase: $3 million
The Plaza at Woodbridge in Woodbridge, NJ     Trader Joe   s, along with an off-price retailer, and the
expansion of our self-storage facility. Expected NOI increase: $3 million
The Outlets at Montehiedra in San Juan, PR     T.J. Maxx, Ralph   s Grocery, and The Urology Hub.
Expected NOI increase: $3 million
We anticipate additional NOI growth from leasing existing vacancies, raising rents to market rates, and pursuing
selective acquisitions and redevelopment opportunities, helping us to reach our goal of growing FFO per share by
5% each year.
UEDGE.COM

Our centers continue to benefit from improved co-tenancy as we add anchor tenants such as Trader Joe   s, BJ   s
Wholesale Club, TJX, Burlington, and Ross to accompany high-quality shop tenants and quick-service restaurants
such as Sephora, Club Pilates, Dave   s Hot Chicken, Starbucks, and Tatte Bakery and Caf  . These structural
tenancy improvements provide lasting advantages, including stronger rent growth, higher occupancy rates, and
significant value creation from cap rate compression. We anticipate the same trend will follow as we actively seek to
recapture space from certain at-risk tenants currently in the news.
Successful/Meaningful Redevelopment and Investment Activity
Our development and construction teams had a productive year, completing $30 million in redevelopment projects
expected to generate a 16% return. We ended the year with $163 million in anchor repositioning and redevelopment
projects targeting a 15% return. These projects carry relatively low risk, as 90% of the planned costs are associated
with pre-leased spaces.
Our investment team was active as well, completing $243 million in acquisitions at a 7.2% cap rate and $109 million
in dispositions at a 5.2% cap rate. Over the past 18 months, we executed $552 million in acquisitions at a 7.2% cap
rate and $427 million in non-core, low-growth dispositions at a 5.2% cap rate. These transactions have expanded
our presence in key markets such as Washington, D.C. and Boston, while refining our portfolio toward highergrowth assets.
Strong Balance Sheet
Our balance sheet is another competitive advantage, with nearly all our debt consisting of single-asset, nonrecourse mortgages. We maintain over $800 million in liquidity, including $91 million in cash and over $700 million
available on our line of credit. Our debt maturity profile is highly manageable: only 9% of our outstanding debt
matures through 2026, with just $24 million maturing in 2025 and $116 million maturing in December 2026,
significantly reducing our exposure to near-term interest rate volatility. By year-end 2024, our net debt to adjusted
EBITDA was 6.0x, below the 6.5x target communicated during our April 2023 Investor Day.
We are fortunate to have a passionate, dedicated team and a highly engaged Board of Trustees. We are proud of
the collaborative and dynamic culture we   ve built over the past decade. I   ve never been more confident in our team
and strategic direction.
Thank you for your continued investment and trust in Urban Edge.
Jeffrey S. Olson
Chairman and Chief Executive Officer
March 28, 2025
UEDGE.COM
2

FORWARD-LOOKING STATEMENTS
Certain statements contained herein 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, business and targeted occupancy may differ materially from those expressed in these forwardlooking statements. You can identify many of these statements by words such as    approximates,       believes,   
   expects,       anticipates,       estimates,       intends,       plans,       would,       may    or other similar expressions in this letter.
Many of the factors that will determine the outcome of forward-looking statements are beyond our ability to control
or predict and include, among others: (i) macroeconomic conditions, including geopolitical conditions and instability,
which may lead to rising inflation and disruption of, or lack of access to, the capital markets, as well as potential
volatility in the Company   s share price; (ii) the economic, political and social impact of, and uncertainty relating to,
epidemics and pandemics; (iii) the loss or bankruptcy of major tenants; (iv) the ability and willingness of the
Company   s tenants to renew their leases with the Company upon expiration and the Company   s ability to re-lease
its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company
exercises its right to replace an existing tenant; (v) the impact of e-commerce on our tenants    business; (vi) the
Company   s success in implementing its business strategy and its ability to identify, underwrite, finance,
consummate and integrate diversifying acquisitions and investments; (vii) changes in general economic conditions
or economic conditions in the markets in which the Company competes, and their effect on the Company   s
revenues, earnings and funding sources, and on those of its tenants; (viii) increases in the Company   s borrowing
costs as a result of changes in interest rates, rising inflation, and other factors; (ix) the Company   s ability to pay
down, refinance, hedge, restructure or extend its indebtedness as it becomes due and potential limitations on the
Company   s ability to borrow funds under its existing credit facility as a result of covenants relating to the Company   s
financial results; (x) potentially higher costs associated with the Company   s development, redevelopment and
anchor repositioning projects, and the Company   s ability to lease the properties at projected rates; (xi) the
Company   s liability for environmental matters; (xii) damage to the Company   s properties from catastrophic weather
and other natural events, and the physical effects of climate change; (xiii) the Company   s ability and willingness to
maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; (xiv) information
technology security breaches; (xv) the loss of key executives; and (xvi) the accuracy of methodologies and
estimates regarding our environmental, social and governance (collectively, our Corporate Responsibility or    CR   )
metrics, goals and targets, tenant willingness and ability to collaborate towards reporting CR metrics and meeting
CR goals and targets, and the impact of governmental regulation on our CR efforts. 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
the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995 for any forward-looking statements included in this letter. You are cautioned not to
place undue reliance on forward-looking statements, which speak only as of the date of this letter. 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 letter.
3



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