Urban Edge Properties

First-quarter FFO as adjusted was $0.36 per share, up 3% versus the first quarter of last year. Same-property NOI, including redevelopment, increased 2.8% year over year. NAREIT FFO also benefited from an $8 million gain in other income from the state of New Jersey tied to past environmental remediation costs. For 2026, Urban Edge raised FFO as adjusted guidance by $0.01 per share at the low end to $1.48-$1.52 per share, and same-property NOI guidance now implies 3% to 3.75% growth. Management also said it expects to recognize another $3.3 million of gross rents from the SNO pipeline in the remainder of the year, with 90% of that in Q3 and Q4. The company incorporated $60 million of disposition activity into guidance.

Jeff Olson said the quarter exceeded internal expectations and pointed to strong fundamentals across the portfolio, especially demand from grocers, discounters, off-price retailers, home improvement stores, and service-oriented shop tenants. He framed the company as well positioned for steady growth because of the $22 million SNO pipeline, the $157 million redevelopment pipeline, and future acquisitions. His tone was upbeat but disciplined, emphasizing visibility into earnings through 2027 and the ability to keep levering market tightness into better lease terms.

Mark Langer emphasized portfolio stability and earnings strength, noting $0.36 per share of FFO as adjusted and 2.8% same-property NOI growth. He said the quarter included an $8 million New Jersey remediation-related gain in other income and that elevated bad debt was tied to isolated Puerto Rico tenants, with expected uncollected rent for the rest of the year around 75 basis points of gross rents. On the balance sheet, he highlighted nearly $1 billion of liquidity, only $30 million drawn on the credit facility, and no draws on the 5-year or 7-year delayed draw term loans. He also cited the new $62.5 million, 7-year nonrecourse mortgage at a swapped fixed rate of 5% and said the 2026 guidance increase mainly reflected a 25 basis point lift in the low end of same-property NOI guidance.

Analysts pressed on the quarter’s bad debt, and management said the main issue was a franchise operator with six QSR locations in Puerto Rico that was moved to a cash basis; since quarter-end, a payment plan was put in place and April rent was paid, which management said suggests the issue is not systemic. Questions also focused on anchor-leasing demand and management said 3% annual escalators are not the norm across all anchor deals, but the market is the strongest in a long time and landlords now have more leverage to push for better terms. On Bridgewater Commons, management said the 7.7% cap rate reflected a non-grocery anchor with strong credit and long term, and on Framingham’s Kohl’s box they said demand has exceeded expectations, with LOIs from several national retailers and expected rent upside of 75% to 150% over existing rent. Management also confirmed progress on Sunrise Mall, saying entitlement work is advancing and Dick’s Sporting Goods will hand back the keys, leaving the property fully unencumbered by tenancy.