Q2 2024 Urban Edge Properties Earnings Call Transcript
Key Points
- Urban Edge Properties (UE) reported a 7% earnings growth for the second quarter and raised its 2024 FFO as adjusted guidance by $0.05 per share at the midpoint.
- Occupancy increased to 96.5%, with a record high of 23 new leases executed during the quarter.
- The company's redevelopment pipeline is expected to yield a 15% return, with $170 million in projects underway.
- Urban Edge Properties (UE) has acquired $426 million of shopping centers since October 2023 at a 7.2% cap rate, enhancing portfolio quality.
- The balance sheet is strong, with only 11% of total debt maturing through 2026, and net debt to annualized EBITDA already below the 2025 target.
- The company faces potential risks from tenant fallout, although it views this as a long-term opportunity.
- Interest rates and cap rates continue to move down, which could impact future acquisition costs and returns.
- The guidance for FFO did not increase as much as expected despite improvements in G&A and interest expenses.
- The company has exposure to at-risk tenants like Red Lobster and Express, although they have historically performed well.
- There is uncertainty around the acquisition pipeline, with $350 million in assets under heavy diligence but no finalized deals yet.
Greetings, and welcome to the Urban Edge Properties second-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. You may begin.
Good morning, and welcome to Urban Edge Properties second-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 which the company does not undertake to update. Our actual results, financial condition and business may differ.
Please refer to our filings with the SEC,
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