Urban Edge Properties Q2 Earnings Call Highlights

Urban Edge raised its 2026 outlook , increasing adjusted FFO guidance to $1.50–$1.54 per share and lifting same-property NOI growth guidance to 3.25%–3.75%, supported by stronger leasing, percentage rents and recoveries.

Leasing momentum remained strong, with new leases generating a 13% same-space cash spread and year-to-date spreads near 30%. Shop occupancy declined to 91.7%, but management sees an approximately 20% mark-to-market opportunity as it backfills space.

The REIT is recycling capital into higher-growth assets, including a $50.5 million acquisition, while pursuing a $60.5 million property sale. Its $155 million redevelopment pipeline has an expected yield of about 12%, and liquidity stood at approximately $960 million.

Urban Edge Properties NYSE: UE reported second-quarter results that exceeded its internal expectations, driven by higher leasing spreads, same-property net operating income growth and contributions from redevelopment activity. The retail real estate investment trust raised its full-year funds from operations guidance while outlining continued capital recycling and leasing initiatives across its Northeast-focused portfolio. Chairman and Chief Executive Officer Jeff Olson said the company generated record FFO as adjusted of $0.40 per share, up 10% from the second quarter of 2025 and 7% year to date. Same-property NOI, including redevelopment, rose 3.2% in the quarter and 3% through the first half.

Olson said traffic at the company’s centers increased 3% from a year earlier, with particularly noticeable gains at Bergen, Woodbridge, Hudson Mall and Totowa, where Urban Edge has upgraded its tenant mix. He attributed demand to limited availability of quality retail vacancies in its trade areas and the company’s value- and necessity-oriented merchandise mix.

Urban Edge raised its 2026 FFO as adjusted guidance by $0.02 per share at the midpoint to a range of $1.50 to $1.54 per share. The updated outlook implies 6% growth over 2025, according to Olson. The company also increased the low end of its same-property NOI growth outlook, including redevelopment, by 25 basis points to a range of 3.25% to 3.75%. Chief Financial Officer Mark Langer said second-quarter NOI growth exceeded the company’s expectations, supported by higher percentage rents, greater net recovery revenue, collections on prior-period reserves and lower real estate taxes. Results also included several items that Langer characterized as one-time benefits. Urban Edge received approximately $0.02 per share of lease termination income from Wren Kitchens, as well as about $0.01 per share from accelerated amortization of non-cash revenue and a multi-year real estate tax refund. Langer said some of the income had already been anticipated in the company’s full-year plan or reflected revenue that otherwise would have been recognized later in the year. Bad debt was about 40 basis points of gross rents in the quarter, better than expected, aided by collections from accounts reserved in the first quarter. Langer said a multi-location franchise operator in Puerto Rico that had contributed to earlier uncollected rents paid all current second-quarter rent and was current on payment-plan obligations for past-due amounts. For the third and fourth quarters, the company expects credit losses of 60 to 75 basis points of gross rent.

Chief Operating Officer Jeff Mooallem said Urban Edge executed 26 leases totaling 199,000 square feet during the quarter, evenly divided between 13 new leases and 13 renew...