Urban Edge (UE) Q3 2025 Earnings Transcript

Image source: The Motley Fool.

Wednesday, October 29, 2025 astatine 8:30 a.m. ET

• Chief Executive Officer — Jeffrey Olson

• Chief Operating Officer — Jeffrey Mooallem

• Chief Financial Officer — Mark Langer

Need a punctuation from a Motley Fool analyst? Email [email protected]

Jeffrey Olson: Great. Thank you, Areeba, and bully morning. We delivered different beardown 4th with FFO arsenic adjusted expanding 4% implicit the 3rd 4th of past year, bringing our year-to-date maturation to 7% compared to the archetypal 9 months of past year. Same-property nett operating income accrued by 4.7% for the 4th and 5.4% year-to-date. Last week, we completed the $39 cardinal acquisition of Brighton Mills, a 91,000 quadrate ft grocery-anchored buying halfway located little than 1 mile from Harvard Business School. The spot is situated successful a highly desirable infill vicinity of Boston that has experienced important maturation driven by caller multifamily developments. The 3-mile commercialized country comprises 449,000 radical with mean household incomes of $170,000.

The acquisition was funded with proceeds from the income of Kennedy Commons and McDade Commons, some structured arsenic 1031 speech transactions. Those 2 properties were sold astatine a 5.4% headdress complaint with a 5-year forecasted NOI maturation of lone 0.4%. We acquired Brighton Mills for a akin headdress complaint successful the mid-5s, but we expect yearly NOI maturation volition transcend 3%, chiefly done contractual rent increases. The spot besides has tremendous request for residential and commercialized development, arsenic respective parcels with the aforesaid zoning person been approved oregon are already nether construction. It is 1 of the fewer buying centers successful the marketplace with aboveground parking.

Our terms of astir $5 cardinal per acre is good beneath the $9 cardinal to $10 cardinal per acre onshore values successful the contiguous area, making this a textbook covered onshore play that delivers coagulated existent returns and meaningful maturation arsenic we hold for the leases to expire truthful that we tin yet extract adjacent much worth from the land. Our Boston portfolio present includes 7 properties with the worth approaching $500 million, representing astir 10% of our company's value. Five years ago, this portion accounted for little than 2% of our value.

Over the past 2 years, our superior recycling strategy has resulted successful astir $600 cardinal of acquisitions of high-quality buying centers astatine an mean 7% headdress rate, portion disposing of astir $500 cardinal of noncore assets astatine a 5% headdress rate, a disciplined attack that has meaningfully upgraded our portfolio prime and semipermanent maturation rate. The acquisition marketplace remains highly competitive, driven by much organization superior connected the equity broadside and tighter spreads from accepted banks connected the indebtedness side. Given our better-than-expected results, we are raising our 2025 FFO arsenic adjusted guidance by $0.01 per stock astatine the midpoint to a caller scope of $1.42 to $1.44 per share, representing 6% maturation implicit 2024 astatine the midpoint.