Q1 2024 Urban Edge Properties Earnings Call Transcript
Key Points
- Urban Edge Properties reported a 4.4% increase in first quarter FFO, as adjusted, to $0.33 per share, driven by higher NOI growth of 3.7% for the same property pool.
- The company successfully acquired two shopping centers in New Jersey, enhancing its portfolio with high-quality retail properties at attractive cap rates.
- Leasing activity remains robust with a 140 basis point increase in same-property occupancy and strong cash leasing spreads of 23% on new leases.
- Urban Edge Properties has a healthy balance sheet with significant refinancing activities, reducing interest expense and extending debt maturities.
- The company has increased its 2024 FFO as adjusted guidance by $0.03 per share at the midpoint, reflecting better than expected results and strong retail fundamentals.
- The company's reliance on acquisitions for growth could be risky if market conditions change or if expected returns from these investments fail to materialize.
- Interest rate volatility remains a concern, which could impact financing costs and capital structure stability in the future.
- While the company has a strong leasing activity, the overall retail sector faces challenges from e-commerce and changing consumer behaviors that could affect long-term property values.
- Urban Edge Properties has a significant portion of its portfolio in the competitive and supply-constrained markets of the Northeast, which could limit expansion opportunities.
- The company's strategy involves disposing of non-core properties, which, while optimizing the portfolio, could result in short-term revenue dips if not managed carefully.
Greetings and welcome to the Urban Edge Properties first Quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Areeba Ahmed, Investor Relations Associate. Thank you, Ruben. You may begin.
Good morning, and welcome to Urban Edge Properties First Quarter 2024 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 discussion 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 the Company does not undertake to update our actual results. Financial condition and business may differ. Please refer to our filings with the SEC, which are also
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