Urban Edge Properties Reports Third Quarter 2026 Results

-- Raises Outlook for Full-Year 2026 FFO as Adjusted --

NEW YORK--(BUSINESS WIRE)--Urban Edge Properties (NYSE: UE) (the "Company") today announced its results for the quarter ended September 30, 2026 and updated its outlook for full-year 2026.

"Our third quarter results reflect the strength of our operating platform and the progress of our capital recycling strategy. Same-property NOI grew 4.5% and new lease cash spreads were 27%, demonstrating the embedded value in our portfolio. FFO as Adjusted of $0.38 per share grew 6% over the prior year," said Jeff Olson, Chairman and CEO. "We also continued to upgrade the portfolio, selling Briarcliff Commons for $60.5 million, acquiring The Shops at West Falls Church for $40.4 million, and, earlier this month, entering Florida with the $90.3 million acquisition of Regency Court in Boca Raton, a market that shares the dense, affluent demographics, high barriers to entry and limited new supply that exists in our D.C. to Boston portfolio. Given our year-to-date performance, we have raised the midpoint of our full-year FFO as Adjusted guidance by $0.01 per share."

Financial Results⁽¹⁾⁽²⁾

Net income increased for the three months ended September 30, 2026 as compared to the prior year driven by a $36 million, or $0.27 per diluted share, gain on sale of real estate related to the disposition of Briarcliff Commons. FFO decreased for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025 driven by lower non-cash revenues related to the write-off of below-market lease intangibles in the prior year period. FFO as Adjusted for the three months ended September 30, 2026 benefited from higher rental revenues for rent commencements on new leases and growth from accretive capital recycling. The increases in net income, FFO and FFO as Adjusted for the nine months ended September 30, 2026 were attributed to higher rental revenues, lease termination income and accretive capital recycling. Net income and FFO for the nine months ended September 30, 2026 also benefited from $8.4 million, or $0.06 per diluted share, of non-recurring reimbursements pertaining to previously incurred environmental remediation costs.

Same-Property Operating Results Compared to the Prior Year Period⁽¹⁾⁽³⁾

Increases in same-property NOI metrics for the three and nine months ended September 30, 2026 were primarily driven by rent commencements on new leases from our signed but not open pipeline.

Leasing and Occupancy Results⁽¹⁾

• Consolidated portfolio leased occupancy was 96.4%, an increase of 10 basis points compared to September 30, 2025 and a decrease of 20 basis points compared to June 30, 2026.
• The Company reported same-property portfolio leased occupancy of 96.6%, flat compared to September 30, 2025 and an increase of 20 basis points compared to June 30, 2026.
• The Company executed 37 new leases, renewals and options totaling 463,000 sf during the quarter. New leases totaled 58,000 sf, of which 43,000 sf was on a same-space basis and generated an average cash spread of 26.9%. New leases, renewals and options totaled 448,000 sf on a same-space basis and generated an average cash spread of 13.2%.
• As of September 30, 2026, signed leases that have not yet rent commenced are expected to generate an additional $21.0 million of future annual gross rent, representing approximately 7% of current annualized NOI. Approximately $0.7 million of this amount is expected to be recognized in the fourth quarter of 2026.

Acquisition and Disposition Activity

The Company acquired The Shops at West Falls Church for a gross purchase price of $40.4 million on July 17, 2026. The 85,000 sf shopping center is located in Falls Church, VA and sits within a densely populated and affluent submarket of Washington, D.C., with average annual household income of approximately $200,000 within a three-mile radius. The center is anchored by a grocer and provides visible growth potential through lease-up, contractual annual rent increases, and mark-to-market opportunities on expiring leases.

On September 2, 2026, the Company completed the sale of Briarcliff Commons, located in Morris Plains, NJ, for a gross sales price of $60.5 million. The $30 million mortgage secured by the property was assumed by the buyer at closing. The transaction was structured as part of a reverse Section 1031 exchange with the acquisition of The Village at Bridgewater Commons and the purchase of a lessor position at Shoppers World, allowing for the deferral of capital gains resulting from the sale for income tax purposes.

On October 14, 2026, the Company acquired Regency Court, a premier 140,000 sf grocery-anchored shopping center in Boca Raton, Florida, for a gross purchase price of $90.3 million. The property is anchored by Publix and Walgreens, both with in place rents significantly below market with limited remaining lease terms, and features a strong mix of small shops serving one of the most affluent and highly sought-after trade areas in South Florida. The combination of below-market anchor rents and premier real estate creates significant near-term value creation potential. The acquisition represents a meaningful addition to the Company's portfolio, establishing a flagship presence in the highly desirable Boca Raton market and creating a strategic platform for continued growth and expansion throughout South Florida.

Financing Activity

On October 6, 2026, the Company executed an agreement to extend and modify its existing $69.7 million mortgage loan secured by The Outlets at Montehiedra to obtain $17 million of additional proceeds through an interest-only B-note and extend the maturity date from June 2030 to October 2033. The $17 million B-note bears interest at a fixed rate of 6.95% through maturity of October 2033, with a tax effective interest rate of 3.9%. The existing $69.7 million loan continues to bear interest at a fixed rate of 5.0% through June 2030, at which time the rate will reset to a fixed rate of the 3-year U.S. Treasury yield plus 250 bps for the remainder of the term. The loan is freely prepayable at any time.

During the quarter, the Company borrowed $40 million from its unsecured line of credit and repaid $20 million of the outstanding balance using proceeds from the sale of Briarcliff Commons. As of September 30, 2026, there was $75 million outstanding on the unsecured line of credit. On October 9, 2026, the Company borrowed an additional $63 million from its unsecured line of credit to finance the acquisition of Regency Court, increasing the outstanding balance to $138 million.

Development and Redevelopment

During the quarter, the Company commenced one redevelopment project with an estimated cost of $7.2 million and stabilized two projects aggregating $9.1 million with the rent commencement of Fidelity at Manalapan Commons and the relocation of Adidas at Bergen Town Center. The completed projects over the last 12 months total $39.6 million of investment with a blended yield of 23%.

As of September 30, 2026, the Company has $151.6 million of active development and redevelopment projects underway, with estimated remaining costs to complete of $56.6 million. The active development and redevelopment projects are expected to generate an approximate 12% yield.

Balance Sheet and Liquidity^(1)(4)(5)

Balance sheet highlights as of September 30, 2026 include:

• Total liquidity of approximately $940.7 million, consisting of $86.2 million of cash on hand and $854.5 million available under the Company's $950 million of unsecured credit facilities, net of undrawn letters of credit.
• Mortgages payable of $1.64 billion, with a weighted average term to maturity of 3.0 years, all of which are fixed rate or hedged.
• $75 million drawn on our $700 million unsecured line of credit that matures on June 28, 2030, with two six-month extension options.
• No borrowings on our $250 million of delayed-draw term loans.
• Total market capitalization of approximately $4.32 billion, comprised of 133.3 million fully-diluted common shares valued at $2.60 billion and $1.72 billion of debt.
• Net debt to total market capitalization of 38%.

2026 Outlook

Based on recent activity and results to date, the Company has raised its 2026 full-year guidance ranges for net income, FFO and FFO as Adjusted, estimating net income of $0.86 to $0.88 per diluted share, net income attributable to common shareholders of $0.82 to $0.84 per diluted share, FFO of $1.59 to $1.61 per diluted share, and FFO as Adjusted of $1.52 to $1.54 per diluted share. A reconciliation of the range of estimated earnings, FFO and FFO as Adjusted, the assumptions used in our guidance, and a reconciliation bridging 2025 FFO per diluted share to the 2026 estimates can be found on pages 4 and 5 of this release.

Earnings Conference Call Information

The Company will host an earnings conference call and audio webcast on October 28, 2026 at 8:30 AM ET. All interested parties can access the earnings call by dialing 1-877-407-9716 (Toll Free) or 1-201-493-6779 (Toll/International) using conference ID 13762478. The call will also be webcast and available in listen-only mode on the investors page of our website: www.uedge.com. A replay will be available at the webcast link on the investors page for one year following the conclusion of the call. A telephonic replay of the call will also be available starting October 28, 2026 at 11:30 AM ET through November 11, 2026 at 11:59 PM ET by dialing 1-844-512-2921 (Toll Free) or 1-412-317-6671 (Toll/International) using conference ID 13762478.

2026 Earnings Guidance

The Company has raised its 2026 full-year guidance ranges for net income, FFO and FFO as Adjusted, estimating net income of $0.86 to $0.88 per diluted share, net income attributable to common shareholders of $0.82 to $0.84 per diluted share, FFO of $1.59 to $1.61 per diluted share, and FFO as Adjusted of $1.52 to $1.54 per diluted share. Below is a summary of the Company's 2026 outlook, assumptions used in its forecasting, and a reconciliation of the range of estimated earnings, FFO, and FFO as Adjusted per diluted share.

The Company's revised 2026 full-year outlook is based on the following assumptions:

• Same-property NOI growth, including properties in redevelopment, of 4.00% to 4.25%, reflecting an increase from our previous assumption of 3.25% to 3.75%.
• Recurring G&A expenses ranging from $35.5 million to $36.5 million, reflecting an increase in the low end from our previous assumption of $34.5 million to $36.5 million.
• Interest and debt expense ranging from $79.0 million to $80.0 million, reflecting an increase from our previous assumption of $78.0 million to $79.0 million.
• Acquisitions of $185 million and dispositions of $60.5 million, reflecting activity completed year-to-date.
• Excludes items that impact FFO comparability, including gains and/or losses on extinguishment of debt, transaction, severance, litigation, and other one-time items outside of the ordinary course of business.

The following table is a reconciliation bridging 2025 FFO per diluted share to the Company's estimated 2026 FFO per diluted share:

The Company is providing a projection of anticipated net income solely to satisfy the disclosure requirements of the Securities and Exchange Commission ("SEC"). The Company's projections are based on management's current beliefs and assumptions about the Company's business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2026 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Forward-Looking Statements” disclosures on page 8 of this document and “Risk Factors” disclosed in the Company's annual and quarterly reports filed with the SEC for more information.

Non-GAAP Financial Measures

The Company uses certain non-GAAP performance measures, in addition to the primary GAAP presentations, as we believe these measures improve the understanding of the Company's operational results. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the investing public, and thus such reported measures are subject to change. The Company's non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results. Additionally, the Company's computation of non-GAAP metrics may not be comparable to similarly titled non-GAAP metrics reported by other real estate investment trusts ("REITs") or real estate companies that define these metrics differently and, as a result, it is important to understand the manner in which the Company defines and calculates each of its non-GAAP metrics. The following non-GAAP measures are commonly used by the Company and investing public to understand and evaluate our operating results and performance:

• FFO: The Company believes FFO is a useful, supplemental measure of its operating performance that is a recognized metric used extensively by the real estate industry and, in particular REITs. FFO, as defined by the National Association of Real Estate Investment Trusts ("Nareit") and the Company, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable real estate and land when connected to the main business of a REIT, impairments on depreciable real estate or land related to a REIT's main business, earnings from consolidated partially owned entities and rental property depreciation and amortization expense. The Company believes that financial analysts, investors and shareholders are better served by the presentation of comparable period operating results generated from FFO primarily because it excludes the assumption that the value of real estate assets diminishes predictably. FFO does not represent cash flows from operating activities in accordance with GAAP, should not be considered an alternative to net income as an indication of our performance, and is not indicative of cash flow as a measure of liquidity or our ability to make cash distributions.
• FFO as Adjusted: The Company provides disclosure of FFO as Adjusted because it believes it is a useful supplemental measure of its core operating performance that facilitates comparability of historical financial periods. FFO as Adjusted is calculated by making certain adjustments to FFO to account for items the Company does not believe are representative of ongoing core operating results, including non-comparable revenues and expenses. The Company's method of calculating FFO as Adjusted may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
• NOI: The Company uses NOI internally to make investment and capital allocation decisions and to compare the unlevered performance of our properties to our peers. The Company believes NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis, providing perspective not immediately apparent from net income. The Company calculates NOI using net income as defined by GAAP reflecting only those income and expense items that are incurred at the property level and through the Company's captive insurance program, adjusted for non-cash rental income and expense, impairments on depreciable real estate or land, and income or expenses that we do not believe are representative of ongoing operating results, if any. In addition, the Company uses NOI margin, calculated as NOI divided by total property revenue, which the Company believes is useful to investors for similar reasons.
• Same-property NOI: The Company provides disclosure of NOI on a same-property basis, which includes the results of properties that were owned and operated for the entirety of the reporting periods being compared, which total 67 and 65 properties for the three and nine months ended September 30, 2026 and 2025, respectively. Information provided on a same-property basis excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area ("GLA") is taken out of service and also excludes properties acquired, sold, held for sale, or that are in the foreclosure process during the periods being compared, and results of our captive insurance program. As such, same-property NOI assists in eliminating disparities in net income due to the development, redevelopment, acquisition, disposition, or foreclosure of properties and results of our captive insurance program during the periods presented, and thus provides a more consistent performance measure for the comparison of the operating performance of the Company's properties. While there is judgment surrounding changes in designations, a property is removed from the same-property pool when it is designated as a redevelopment property because it is undergoing significant renovation or retenanting pursuant to a formal plan that is expected to have a significant impact on its operating income. A development or redevelopment property is moved back to the same-property pool once a substantial portion of the NOI growth expected from the development or redevelopment is reflected in both the current and comparable prior year period, generally one year after at least 80% of the expected NOI from the project is realized on a cash basis. Acquisitions are moved into the same-property pool once we have owned the property for the entirety of the comparable periods and the property is not under significant development or redevelopment. The Company has also provided disclosure of NOI on a same-property basis adjusted to include redevelopment properties. Same-property NOI may include other adjustments as detailed in the Reconciliation of Net Income to NOI and Same-Property NOI included in the tables accompanying this press release.
• EBITDAre and Adjusted EBITDAre: EBITDAre and Adjusted EBITDAre are supplemental, non-GAAP measures utilized by us in various financial ratios. The White Paper on EBITDAre, approved by Nareit's Board of Governors in September 2017, defines EBITDAre as net income (computed in accordance with GAAP), adjusted for interest expense, income tax (benefit) expense, depreciation and amortization, losses and gains on the disposition of depreciated property, impairment write-downs of depreciated property and investments in unconsolidated joint ventures, and adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures. EBITDAre and Adjusted EBITDAre are presented to assist investors in the evaluation of REITs, as a measure of the Company's operational performance as they exclude various items that do not relate to or are not indicative of our operating performance and because they approximate key performance measures in our debt covenants.

For additional information:
Mark Langer, EVP and
Chief Financial Officer
212-956-0082