Urban Edge UE Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 11, 2026 astatine 8:41 AM CST 28 min read

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Wednesday, Feb. 11, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Jeffrey Olson

• Chief Operating Officer — Jeffrey Mooallem

• Chief Financial Officer — Mark Langer

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Jeffrey Olson: Great. Thank you, Areeba, and bully morning. 2025 was different beardown twelvemonth for Urban Edge Properties. We generated FFO arsenic adjusted of $1.43 per share, representing 6% growth, driven by the continued execution connected our signed but not unfastened pipeline and 5% aforesaid spot NOI growth. During the year, we continued to acceptable caller leasing records. We executed 58 caller leases astatine a grounds aforesaid abstraction currency rent dispersed of 32% and achieved grounds store occupancy of 92.6%. New lease spreads person present exceeded 20% for 4 consecutive years, reflecting beardown request and constricted availability of high-quality retail spaces passim our market. Given these dynamics, we expect caller lease spreads volition stay supra 20% successful 2026.

Leverage has intelligibly shifted to owners of high-quality buying centers. Our infill densely populated portfolio continues to pull starring retailers, particularly for anchor space. Nearly each our nationalist retailers are telling america however hard it is to grow successful our markets owed to constricted supply, supporting our anticipation for steadfast rent maturation successful the coming years. Our signed but not unfastened pipeline continues to beryllium a cardinal operator of growth. In 2025, we commenced implicit $16 cardinal of caller annualized gross rent, including openings from Trader Joe's, Burlington, Ross, Nordstrom Rack, Atlantic Health, Tesla, and galore high-performing store tenants similar Cava, Shake Shack, First Watch, Starbucks, and Club Pilates.

A remaining signed but not unfastened pipeline is expected to make an further $22 cardinal of yearly gross rent, representing 8% of existent NOI. Our improvement and operation teams proceed to beryllium cardinal drivers of worth creation. During the year, we completed 14 projects totaling $55 million, generating unlevered yields of 19%. We presently person $166 cardinal of redevelopment projects underway, expected to make a 14% unlevered return. Over the past 3 years, FFO arsenic adjusted has grown astatine an mean yearly complaint of 6% to $1.43 per stock successful 2025. This exceeds our 2023 Investor Day people of $1.35 per stock and ranks among the highest maturation rates successful our adjacent group.

This outperformance is simply a testament to respective factors, including our best-in-class team, favorable buying halfway fundamentals, and accretive superior recycling. During this period, we acquired astir $600 cardinal of high-quality buying centers astatine an mean 7% headdress complaint portion disposing of astir $500 cardinal of non-core little maturation assets astatine a 5% headdress rate. Looking up to 2026, our goals see achieving FFO arsenic adjusted maturation of astatine slightest 4.5%, aforesaid spot NOI maturation supra 3%, and returning leased occupancy toward our humanities precocious of astir 98%. Our acquisition guidance includes a $54 cardinal buying halfway nether contract.