Breaking Down Urban Edge Properties (UE) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and wondering about the financial stability of Urban Edge Properties? Did you know that in 2024, Urban Edge Properties reported a total revenue of $444.97 million, marking a 9.35% increase? But how does this revenue translate into overall financial health, and what are the key factors driving their performance? With total assets of $3.31 billion and a net income of $75.44 million, understanding the nuances of Urban Edge Properties' financial standing is crucial for making informed investment decisions. Dive in to explore the insights that can help you navigate the complexities of their financial landscape.

Urban Edge Properties (UE) Revenue Analysis

Understanding Urban Edge Properties' (UE) financial health involves a detailed look at its revenue streams. The company's revenue is the total income generated from its business activities, primarily the sale of goods or services, without subtracting any expenses. For real estate companies like Urban Edge Properties, rental revenue is a critical component.

Here's a breakdown of Urban Edge Properties' revenue streams:

• Primary Revenue Sources: Urban Edge Properties focuses on owning, managing, acquiring, developing, and redeveloping retail real estate in urban communities. Its revenue primarily comes from rental income from shopping centers and malls, which include necessity and convenience-oriented retailers such as department stores, grocers, health clubs, and restaurants.

Urban Edge Properties' properties are mainly located in the New York City metropolitan region and within the DC to Boston corridor.

• Year-over-Year Revenue Growth Rate: Urban Edge Properties has shown fluctuating revenue growth over the past several years.

Here's a look at the annual revenue and percentage change:

• In 2024, Urban Edge Properties reported revenue of $444.97 million, a 9.35% increase from 2023.
• The company experienced an 8% increase in Funds from Operations (FFO) as Adjusted per share for the year.
• Contribution of Different Business Segments to Overall Revenue: As a real estate investment trust (REIT), Urban Edge Properties generates revenue primarily through the leasing of its properties. The company owns a portfolio of 75 properties, totaling 17.4 million square feet of gross leasable area. These properties are mainly shopping centers and malls with a mix of retail tenants.
• Analysis of Significant Changes in Revenue Streams: Several factors influenced Urban Edge Properties' revenue streams in 2024:

Net income for 2024 decreased compared to 2023, primarily due to a $217.4 million gain on the sale of real estate recognized in 2023. However, FFO as Adjusted increased by 8% per share, benefiting from:

• Accretive capital recycling
• Increased net operating income (NOI) from rent commencements on new leases
• Lower levels of uncollected rents
• Higher non-cash revenues

Same-property Net Operating Income (NOI) grew by 6.6% for the quarter and 4.3% for the year, driven by new lease commencements and higher net recovery income.

For more insights into Urban Edge Properties, check out: Exploring Urban Edge Properties (UE) Investor Profile: Who’s Buying and Why?

Urban Edge Properties (UE) Profitability Metrics

A close look at Urban Edge Properties' (UE) profitability reveals several key metrics for investors to consider. For the fiscal year ending December 31, 2024, the company's financial performance presents a mixed picture.

Here's a breakdown of Urban Edge Properties' (UE) profitability:

• Gross Profit: Urban Edge Properties reported a gross profit of $74.78 million for the quarter ending December 31, 2024. For the full year, the company's revenue reached $0.44 billion USD, an increase from $0.41 billion USD in 2023.

• Operating Profit: The company's operating margin as of April 2025 (TTM) is 17.49%. At the end of 2024, the operating margin was also 17.49%. This represents a significant decrease of -73.74% compared to 2023 when the operating margin was 66.60%.

• Net Profit: For the quarter ending December 31, 2024, Urban Edge Properties reported a net income of $30.12 million. However, the net income for the year ended December 31, 2024, decreased compared to 2023, primarily driven by a $217.4 million gain on the sale of real estate recognized in the fourth quarter of 2023.

Here's a table summarizing the profitability metrics:

Urban Edge Properties' FFO as Adjusted for the year ended December 31, 2024, increased by 8% per share compared to 2023. This was primarily due to accretive capital recycling, increased net operating income (NOI) from rent commencements on new leases, lower levels of uncollected rents, and higher non-cash revenues.

Same-property NOI growth was also a positive indicator, with a growth of 6.6% for Q4 2024 and 4.3% for the full year. This growth was driven by rent commencements on new leases and higher net recovery income.

While net income saw a decrease due to significant gains from real estate sales in the previous year, the increase in FFO as Adjusted and same-property NOI growth suggests strong operational performance.

For more insights into Urban Edge Properties' financial health, you can read this blog post: Breaking Down Urban Edge Properties (UE) Financial Health: Key Insights for Investors

Urban Edge Properties (UE) Debt vs. Equity Structure

Understanding the financial structure of Urban Edge Properties (UE) is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its growth.

As of the fiscal year 2024, a comprehensive analysis of Urban Edge Properties' debt profile is essential. While specific figures for 2024 are not available, examining recent financial statements and reports will provide insights into their debt management strategy. Generally, this includes evaluating both long-term and short-term debt obligations.

The debt-to-equity ratio is a key metric to assess Urban Edge Properties' financial leverage. This ratio indicates the proportion of debt and equity the company uses to finance its assets. A lower ratio generally suggests a more conservative financing approach, while a higher ratio could indicate a more aggressive approach with potentially higher risk. It's important to compare Urban Edge Properties' debt-to-equity ratio with industry standards to gauge its relative financial risk. For example, according to data from 2023, the Real Estate industry had an average Debt/Equity ratio of 98.7%. Furthermore, it is vital to check the current ratio, which is calculated by dividing current assets by current liabilities. It tells whether a company has more assets than liabilities. Generally, the higher the current ratio, the better.

Recent activities such as debt issuances, credit ratings, or refinancing are important indicators of Urban Edge Properties' financial strategy and health. These activities can affect the company's borrowing costs and overall financial flexibility. For instance, a favorable credit rating can enable the company to secure debt at lower interest rates, improving profitability. Recent rating actions from agencies like Fitch Ratings provide valuable insights. For example, as of November 2023, Fitch Ratings affirmed Urban Edge Properties' ratings, including the Issuer Default Rating (IDR) at BBB- and the Stable Outlook. Additionally, Fitch affirmed the ratings on the company's senior unsecured revolving credit facility and senior unsecured term loan at BBB- and the senior unsecured notes at BBB-.

Urban Edge Properties strategically balances debt and equity financing to optimize its capital structure. The decision to use debt or equity depends on various factors, including market conditions, interest rates, and the company's growth prospects. Effective management of this balance is crucial for maintaining financial stability and supporting long-term growth. An example of balancing debt and equity is issuing common stock to repay corporate debt. For instance, on August 2, 2023, Urban Edge Properties priced an underwritten public offering of 7,000,000 common shares at $9.75 per share, with net proceeds used to repay its corporate debt.

More information on Urban Edge Properties' financial health can be found at: Breaking Down Urban Edge Properties (UE) Financial Health: Key Insights for Investors

Urban Edge Properties (UE) Liquidity and Solvency

Understanding Urban Edge Properties' (UE) financial health requires a close look at its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability.

Assessing Urban Edge Properties' Liquidity:

Liquidity ratios are crucial indicators of a company's ability to cover its immediate liabilities. Here’s how Urban Edge Properties’ liquidity can be assessed:

• Current and Quick Ratios: These ratios measure UE's ability to pay off its short-term liabilities with its current assets. A current ratio of around 1.0 or higher is generally considered healthy, suggesting the company has enough liquid assets to cover its short-term liabilities. The quick ratio, which excludes inventories, provides a more conservative view of liquidity.
• Analysis of Working Capital Trends: Monitoring the trend of UE's working capital (current assets minus current liabilities) helps in understanding its operational efficiency and short-term financial health. A positive and increasing working capital indicates better liquidity.
• Cash Flow Statements Overview: Examining the cash flow statements provides a clear picture of where UE’s cash is coming from and how it is being used. Key areas to focus on include:
  • Operating Cash Flow: A positive and consistent operating cash flow indicates that the company is generating enough cash from its core business operations to cover its expenses and invest in growth.
  • Investing Cash Flow: This section shows cash used for investments in assets. Monitoring this can reveal UE’s strategy for growth and asset management.
  • Financing Cash Flow: This includes activities related to debt, equity, and dividends. It’s important to see if UE is managing its debt effectively and providing returns to shareholders.
• Potential Liquidity Concerns or Strengths: Any significant fluctuations in these metrics should be investigated. For instance, a sharp decrease in the current ratio or negative operating cash flow could signal potential liquidity issues. Conversely, a consistently high current ratio and strong operating cash flow indicate robust liquidity.

Here's a sample table illustrating how to track these metrics over time:

For more insights into Urban Edge Properties and its investors, check out: Exploring Urban Edge Properties (UE) Investor Profile: Who’s Buying and Why?

Urban Edge Properties (UE) Valuation Analysis

Determining whether Urban Edge Properties (UE) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, alongside stock price trends, dividend yield, payout ratios, and analyst consensus.

As of April 2025, comprehensive P/E and P/B ratios for UE are not readily available. Instead, we can focus on alternative valuation metrics and market data to assess UE's current standing.

Here's a breakdown of factors to consider:

• Stock Price Trends: Over the past 12 months, UE's stock has shown moderate volatility. As of April 18, 2025, the stock closed at $13.17, reflecting a 0.61% change. Recent trends suggest a fluctuating pattern influenced by broader market conditions and company-specific announcements.
• Dividend Yield and Payout Ratios: UE offers a forward annual dividend rate of $0.80 per share. The dividend yield, calculated based on the recent closing price, stands at approximately 6.07%. This yield is relatively attractive compared to the industry average.
• Analyst Consensus: Analyst ratings provide mixed signals. Recent ratings range from 'hold' to 'buy,' indicating varying perspectives on UE's potential. Price targets set by analysts range from $14.00 to $15.00, suggesting a modest upside from the current trading price.
• EV/EBITDA Ratio: While a precise EV/EBITDA ratio requires up-to-date EBITDA figures, we can analyze sector-specific data for context. REITs generally have EV/EBITDA ratios that reflect the stability and income-generating nature of real estate assets.

To provide a more detailed comparative analysis, here's a hypothetical table illustrating how UE's valuation metrics might stack up against industry averages and key competitors:

Considering these factors, UE's valuation appears to be influenced by its dividend yield and potential for modest stock price appreciation. Investors should weigh these metrics against their investment goals and risk tolerance. For more insights into the company's strategic direction, refer to Mission Statement, Vision, & Core Values of Urban Edge Properties (UE).

Urban Edge Properties (UE) Risk Factors

Understanding the risks associated with Urban Edge Properties (UE) is crucial for investors. These risks can be both internal and external, significantly impacting the company's financial health. External risks include industry competition, regulatory changes, and overall market conditions, while internal risks may involve operational inefficiencies, financial management, or strategic missteps.

Here's a breakdown of key risk areas:

• Industry Competition: The retail real estate sector is highly competitive. UE faces competition from other REITs, private equity firms, and individual property owners. Increased competition could lead to lower occupancy rates and reduced rental income.
• Regulatory Changes: Changes in zoning laws, environmental regulations, or tax policies can significantly affect UE's ability to develop or manage properties. Compliance with new regulations may also increase operating costs.
• Market Conditions: Economic downturns, changes in consumer spending habits, and rising interest rates can all negatively impact UE's financial performance. A decline in retail sales, for example, could lead to tenant bankruptcies and increased vacancy rates.

Operational, financial, and strategic risks are often highlighted in Urban Edge Properties' earnings reports and filings. These include:

• Operational Risks: These risks involve the day-to-day management of properties. Examples include property damage, tenant disputes, and rising operating expenses.
• Financial Risks: Financial risks relate to UE's capital structure, debt levels, and access to capital markets. High debt levels can increase the company's vulnerability to rising interest rates and economic downturns.
• Strategic Risks: Strategic risks involve decisions about property acquisitions, development projects, and overall business strategy. Poor strategic decisions can lead to financial losses and a decline in shareholder value.

Mitigation strategies are essential for managing these risks. While specific plans can vary, common strategies include:

• Diversification: Diversifying the property portfolio across different geographic locations and tenant industries can reduce the impact of localized economic downturns or industry-specific challenges.
• Risk Management Programs: Implementing comprehensive risk management programs can help identify, assess, and mitigate potential risks. These programs may include insurance coverage, disaster recovery plans, and cybersecurity protocols.
• Proactive Tenant Management: Building strong relationships with tenants and proactively addressing their needs can help reduce vacancy rates and maintain stable rental income.

Analyzing Urban Edge Properties' latest 10-K filing and quarterly reports is vital for a comprehensive understanding of their current risk profile and mitigation efforts. These documents provide detailed information on the company's financial performance, risk factors, and strategic initiatives.

For additional insights into Urban Edge Properties and its investors, consider reading: Exploring Urban Edge Properties (UE) Investor Profile: Who’s Buying and Why?

Urban Edge Properties (UE) Growth Opportunities

Urban Edge Properties (UE) has several key growth drivers that investors should consider. These include strategic market expansions, redevelopment projects, and competitive advantages derived from their focus on necessity-based retail. Understanding these elements is crucial for assessing the company's potential for future revenue and earnings growth.

Key growth drivers for Urban Edge Properties (UE) include:

• Market Expansions: Identifying and capitalizing on opportunities in high-growth urban markets.
• Redevelopment Projects: Enhancing existing properties to increase their value and appeal to tenants.
• Strategic Acquisitions: Acquiring properties that complement the existing portfolio and offer synergistic benefits.

Analyzing these factors provides a foundation for projecting the company's future financial performance. Here's a look at what might drive revenue and earnings estimates:

• Revenue Growth: Driven by increased occupancy rates and rental income from new and redeveloped properties.
• Earnings Growth: Improved operational efficiency and strategic financial management.

Strategic initiatives and partnerships can significantly influence Urban Edge Properties' growth trajectory. These may include:

• Public-Private Partnerships: Collaborating with local governments to develop mixed-use projects.
• Tenant Mix Optimization: Attracting a diverse range of tenants that cater to the needs of the surrounding community.
• Technology Integration: Implementing innovative technologies to enhance the customer experience and streamline operations.

Urban Edge Properties possesses several competitive advantages that position it favorably for growth:

• Strategic Locations: Properties located in densely populated urban areas with high barriers to entry.
• Focus on Necessity-Based Retail: A portfolio of tenants that provide essential goods and services, making the company less susceptible to economic downturns.
• Experienced Management Team: A leadership team with a proven track record of creating value for shareholders.

A SWOT analysis can provide a structured framework for evaluating Urban Edge Properties' strengths, weaknesses, opportunities, and threats:

For more insights into Urban Edge Properties' financial health, read Breaking Down Urban Edge Properties (UE) Financial Health: Key Insights for Investors.