Q1 2025 Urban Edge Properties Earnings Call Transcript
Key Points
- Urban Edge Properties (UE) reported FFO as adjusted of $0.35 per share, marking a 6% increase over the previous year and the highest quarterly earnings in the company's history.
- The company achieved a same property NOI increase of 3.8% compared to the first quarter of the previous year, driven by improved recovery ratios and better-than-expected collections.
- Leasing momentum remained strong with the execution of 42 leases totaling 434,000 square feet, including 18 new leases with a 34% cash leasing spread.
- Tenant retention ratio is high at 95%, and shop occupancy reached a record 92.4%, indicating strong demand and successful tenant attraction.
- Urban Edge Properties (UE) successfully completed a $25 million sale of land at Bergen Town Center and is under contract to sell two more properties for $41 million, with plans to reinvest in accretive acquisitions.
- The investment sales market is showing early signs of slowing down, which could impact future transactions.
- There has been limited CMBS issuance since April, and while life insurance companies and banks are still lending, spreads have increased by 10 to 30 basis points.
- Economic volatility in April has led the company to project a more conservative outlook for the second half of the year, despite a strong start.
- The same property lease rate decreased by 50 basis points over the previous quarter, primarily due to recapturing anchor spaces from retailers like Big Lots and Party City.
- The company has built in more conservative assumptions for the remainder of the year, incorporating contingencies for potential volatility in rent collections and tenant fallout.
Greetings and welcome to the Urban Edge Properties first quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) It is now my pleasure to introduce your host, Jeff Olson. Please go ahead.
Good morning and welcome to Urban Edge Properties first quarter 2025 earnings conference call. Joining me today are Jeff Olson, Chairman and Chief Executive Officer, Jeff Mooallem, Chief Operating Officer, Mark Langer, Chief Financial Officer, Rob Milton, general counsel, Scott Auster, EVP and head of leasing, and Andrea Drazin, Chief Accounting Officer.
Please note today's. May contain forward-looking statements about the company's views of future events and financial performance, which are subject to numerous assumptions, risks, and uncertainties, and which the company does not undertake to update.
Our actual results, financial condition, and business may
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