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Urban Edge Properties (UE)
NYSE:UE
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Urban Edge Properties
(NYSE:UE)
71Outperform
Positive Factors
Acquisition Returns
The acquisition of The Village at Waugh Chapel is expected to earn a first-year levered return of approximately 9%.
Debt Management
Net debt to Adjusted EBITDAre has significantly decreased, indicating improved financial stability.
Financial Performance
The company reported a stronger-than-expected 3Q24 Adjusted FFO, driven by strong operating fundamentals and accretive acquisitions.
Negative Factors
Interest and Debt Costs
Lower interest and debt expenses reflect updated financing transactions, potentially enhancing profitability.
Lease Commencement
Executed but not yet rent commenced leases are expected to contribute significantly to future gross rent.
Urban Edge Properties (UE) vs. S&P 500 (SPY)
Market Cap
$2.45B
Dividend Yield3.81%
Average Volume (3M)1.16M
Price to Earnings (P/E)30.8
Beta (1Y)0.92
Revenue Growth6.73%
EPS Growth-71.83%
CountryUS
Employees109
SectorReal Estate
Sector Strength76
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.58
Shares Outstanding125,748,200
10 Day Avg. Volume1,369,101
30 Day Avg. Volume1,161,973
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)5.26
Price to Cash Flow (P/CF)11.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.00Price Target Upside8.34% Upside
Rating ConsensusHold
Number of Analyst Covering1
Urban Edge Properties Business Overview & Revenue Model
Company DescriptionUrban Edge Properties (UE) is a real estate investment trust (REIT) focused on the acquisition, development, and management of retail real estate properties. The company primarily operates in urban communities, where it owns and manages a portfolio of shopping centers, retail properties, and mixed-use developments. With a strategic emphasis on densely populated areas, Urban Edge Properties aims to enhance the value of its assets through leasing, redevelopment, and active property management.
How the Company Makes MoneyUrban Edge Properties generates revenue primarily through the rental income derived from its portfolio of retail real estate properties. The company's key revenue streams include lease agreements with a diverse array of tenants, ranging from national retail chains to local businesses. These leases typically involve fixed rental payments, often with built-in annual escalations, and can include additional income from percentage rent based on tenant sales. Urban Edge Properties may also earn revenue from property management fees and services provided to tenants. Additionally, the company seeks to enhance property value and income potential by investing in redevelopment projects and strategic acquisitions, leveraging its expertise in urban retail markets to optimize occupancy rates and maximize returns. Significant partnerships with retailers, community stakeholders, and financial institutions can also contribute to the company's earnings by facilitating property enhancements and expanding its asset base.
Urban Edge Properties Financial Statement Overview
Summary
Urban Edge Properties demonstrates strong revenue growth and improved operational efficiency, reflected in its income statement. The balance sheet is solid with no debt and increasing equity, which enhances financial stability. However, the decline in net profit margin and net income poses potential risks. Cash flow remains positive but shows some volatility, which requires close monitoring. Overall, the company is well-positioned financially, but attention to profit margins and cash flow trends is advisable.Income Statement
Urban Edge Properties shows a solid performance in terms of revenue growth, with a notable increase in total revenue from $416.92M in 2023 to $444.97M in 2024, indicating a growth rate of approximately 6.73%. The gross profit margin improved significantly, suggesting enhanced operational efficiency. However, the net profit margin decreased due to a drop in net income from $248.30M in 2023 to $80.21M in 2024, which warrants attention.75
Positive
Balance Sheet
The balance sheet reflects strong financial health with no total debt reported in 2024, enhancing the company's financial stability. The equity ratio stands robustly due to increased stockholders' equity, rising from $1.15B in 2023 to $1.36B in 2024. The return on equity saw a decline due to lower net income, but overall, the company's leverage and asset management appear prudent.82
Very Positive
Cash Flow
Urban Edge Properties maintained a positive operating cash flow of $153.18M in 2024, slightly down from $163.02M in 2023, indicating stable operational cash generation. The free cash flow remained positive, but the growth rate is concerning given the previous year's higher figures. The cash flow to net income ratios show effective cash management despite fluctuations in net income.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 444.97M | 416.92M | 397.94M | 425.08M | 330.10M | Gross Profit |
| 297.54M | 161.86M | 261.74M | 292.71M | 213.92M | EBIT |
| 260.06M | 124.79M | 108.87M | 148.71M | 58.14M | EBITDA |
| 305.48M | 457.48M | 204.23M | 256.23M | 154.17M | Net Income Common Stockholders |
| 72.56M | 248.30M | 46.17M | 102.69M | 93.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 41.37M | 101.12M | 85.52M | 164.48M | 384.57M | Total Assets |
| 3.31B | 3.28B | 2.98B | 2.99B | 2.94B | Total Debt |
| 1.69B | 1.79B | 1.75B | 1.75B | 1.67B | Net Debt |
| 1.64B | 1.69B | 1.67B | 1.59B | 1.28B | Total Liabilities |
| 1.95B | 2.06B | 1.95B | 1.94B | 1.94B | Stockholders Equity |
| 1.36B | 1.15B | 976.99M | 995.33M | 951.57M |
| Cash Flow | Free Cash Flow | |||
| 153.18M | 163.01M | 23.57M | 39.90M | 84.30M | Operating Cash Flow |
| 153.18M | 163.01M | 139.62M | 135.27M | 112.82M | Investing Cash Flow |
| -234.70M | -117.70M | -151.91M | -311.16M | -98.46M | Financing Cash Flow |
| -2.09M | 161.00K | -78.77M | -23.53M | -80.25M |
Urban Edge Properties Technical Analysis
Neutral
18.46
Price Trends
18.91
Negative
19.91
Negative
20.30
Negative
Market Momentum
-0.16
Negative
52.37
Neutral
89.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UE, the sentiment is Neutral. The current price of 18.46 is above the 20-day moving average (MA) of 17.96, below the 50-day MA of 18.91, and below the 200-day MA of 20.30, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 89.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UE.
Urban Edge Properties Risk Analysis
Urban Edge Properties disclosed 42 risk factors in its most recent earnings report. Urban Edge Properties reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Urban Edge Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.01B | 18.57 | 5.37% | 7.28% | -2.08% | 3.63% | |
71 Outperform | $2.45B | 30.75 | 5.97% | 3.81% | 6.73% | -71.83% | |
68 Neutral | $1.22B | 20.09 | 6.38% | 5.38% | 4.31% | 39.56% | |
68 Neutral | $1.19B | 25.08 | 5.12% | 1.97% | 3.83% | -5.55% | |
64 Neutral | $1.14B | 19.80 | 4.85% | 7.21% | 3.78% | 12.43% | |
60 Neutral | $1.72B | ― | -5.48% | 14.69% | 56.29% | 55.99% | |
59 Neutral | $2.73B | 11.65 | 0.11% | 8783.19% | 5.45% | -17.32% |
* Real Estate Sector Average
Performance Comparison
UE
Urban Edge Properties
18.46
2.37
14.73%
ALEX
Alexander & Baldwin
16.31
0.65
4.15%
ESRT
Empire State Realty
7.14
-2.02
-22.05%
AAT
American Assets
18.68
-1.87
-9.10%
GNL
Global Net Lease
7.53
1.43
23.44%
BNL
Broadstone Net Lease
15.93
2.26
16.53%
Urban Edge Properties Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -10.13% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong year for Urban Edge Properties, highlighted by record leasing volumes, growth in FFO, and effective capital recycling. However, challenges include managing tenant bankruptcies and competitive acquisition market conditions.Highlights
Record Leasing Volumes and Occupancy
Urban Edge executed a record 79 new leases totaling 485,000 square feet with a same-space cash rent spread of 26%. Shop occupancy reached a new record of 91%, and same-property portfolio occupancy grew to 96.6%.
Growth in FFO and Dividend Increase
FFO as adjusted increased by 8% for the year to $1.35 per share. A 12% increase in the dividend was announced, reflecting growth in taxable income for 2025.
Strong Redevelopment Returns
Completed $30 million of redevelopment projects expected to generate a 16% unlevered return, with ongoing projects expected to yield a 15% unlevered return.
Capital Recycling Success
Acquired $550 million in assets at a 7% cap rate, funded by $427 million of dispositions at a 5% cap rate over the past 16 months, demonstrating effective capital recycling.
Lowlights
Tenant Bankruptcies Impacting Portfolio
Tenant bankruptcies, including Party City and Big Lots, are expected to result in rent losses, although replacement tenants are being identified.
Challenges in Acquisition Pipeline
Competitive cap rates below 6% make acquisitions challenging, impacting the ability to easily execute capital recycling strategies moving forward.
Company Guidance
During the Urban Edge Properties Fourth Quarter 2024 Earnings Call, the company provided detailed guidance for 2025, projecting a growth in Funds From Operations (FFO) as adjusted by 4% or more and aiming for a same-property Net Operating Income (NOI) growth of at least 3.5%. The company's pipeline of signed but not open leases is expected to contribute $8 million in gross rents in 2025, while aiming to increase leased occupancy to 97-98%. Additionally, Urban Edge plans a 12% increase in dividends, reflecting higher earnings and taxable income. The company remains focused on capital recycling, having previously acquired $550 million in assets at a 7% cap rate, funded partially by $427 million in dispositions at a 5% cap rate. With $800 million in total liquidity and plans for $75 million in capital spending in 2025, the company remains optimistic about leveraging its strong balance sheet and streamlined operations for future growth.Urban Edge Properties Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Urban Edge Reports Strong Q4 2024 Financial Results
Positive
Feb 12, 2025
On February 12, 2025, Urban Edge Properties reported strong financial results for the fourth quarter and full year 2024, noting an 8% increase in FFO as Adjusted per share. Key drivers included new rent commencements and successful leasing activities. The company also raised its quarterly cash dividend by 12%, reflecting increased earnings and taxable income. Notable transactions in 2024 included the acquisition of The Village at Waugh Chapel and the sale of a Home Depot property, both as part of strategic capital recycling efforts. Looking forward, Urban Edge Properties is optimistic about further growth in earnings and cash flow.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.