EX-99.2 3 exhibit992-supplementaldis.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2




 
 
URBAN EDGE PROPERTIES
 
SUPPLEMENTAL DISCLOSURE
PACKAGE
 
June 30, 2016
 
 







 
 
 
 
Urban Edge Properties
888 7th Avenue, New York, NY 10019
NY Office: 212-956-2556
www.uedge.com
 






URBAN EDGE PROPERTIES
SUPPLEMENTAL DISCLOSURE
June 30, 2016
(unaudited)
 
 
TABLE OF CONTENTS
 
Page
Press Release
 
Second Quarter 2016 Earnings Press Release
1
Additional Disclosures
9
 
 
Overview
 
Summary Financial Results and Ratios
10
 
 
Consolidated and Combined Financial Statements
 
Consolidated Balance Sheets
11
Consolidated and Combined Statements of Income
12
 
 
Non-GAAP Financial Measures and Supplemental Data
 
Supplemental Schedule of Net Operating Income
13
Earnings Before Interest, Taxes, Depreciation and Amortization
14
Consolidated Statements of Funds from Operations
15
Market Capitalization, Debt Ratios and Liquidity
16
Additional Disclosures
17
 
 
Leasing Data
 
Tenant Concentration - Top Twenty-Five Tenants
18
Leasing Activity
19
Retail Portfolio Lease Expiration Schedules
20
 
 
Property Data
 
Property Status Report
22
Property Acquisitions and Dispositions
25
Development, Redevelopment and Anchor Repositioning Projects
26
 
 
Debt Schedules
 
Debt Summary
28
Mortgage Debt Summary and Maturity Schedule
29
 
 







 
 
 
 
 
 
Urban Edge Properties
For additional information:
888 Seventh Avenue
Mark Langer, EVP and
New York, NY 10019
Chief Financial Officer
212-956-2556
 
 
 
 
 
 
 
 
 
FOR IMMEDIATE RELEASE:
 
 
 
 
Urban Edge Properties Reports Second Quarter 2016 Operating Results


                                    
NEW YORK, NY, August 3, 2016 - Urban Edge Properties (NYSE:UE) (the "Company") announced today its financial results for the three and six months ended June 30, 2016.

Highlights of the Quarter include:
•
Net income was $36.1 million, or $0.34 per diluted share, for the quarter and $55.9 million, or $0.53 per diluted share, for the six months ended June 30, 2016
•
Generated Funds from Operations applicable to diluted common shareholders ("FFO") of $33.8 million, or $0.32 per share, for the quarter and $67.4 million, or $0.64 per share, for the six months ended June 30, 2016
•
Generated FFO as Adjusted (previously referred to as Recurring FFO) of $32.9 million, or $0.31 per share, for the quarter and $65.4 million, or $0.62 per share, for the six months ended June 30, 2016. FFO as Adjusted for the three and six months ended June 30, 2016 excludes tenant bankruptcy settlement income and a benefit related to income taxes
•
Same-property cash Net Operating Income (“NOI”) increased by 4.2% as compared to the second quarter of 2015 and 3.3% for the six months ended June 30, 2016 as compared to the same period in 2015 due to new rent commencements, higher occupancy and higher recoveries
•
Same-property cash NOI including properties in redevelopment increased by 2.6% for the second quarter of 2016 as compared to the second quarter in 2015 and 2.3% for the six months ended June 30, 2016 as compared to the same period in 2015. The expected vacancy of former anchor tenants at Walnut Creek and Bruckner negatively impacted this result by approximately 100 basis points. New anchor tenants at Walnut Creek and Bruckner are expected to open in the fourth quarter of this year and the first quarter of 2018, respectively
•
Consolidated retail portfolio occupancy increased by 20 basis points to 96.2% as compared to June 30, 2015 and by 20 basis points as compared to March 31, 2016
•
Same-property retail portfolio occupancy increased by 50 basis points to 97.4% as compared to June 30, 2015 and by 20 basis points as compared to March 31, 2016
•
Executed new leases and renewals and exercised options totaling 63,000 square feet ("sf") in 19 transactions. Same-space leases totaled 40,300 sf at an average rental rate of $31.68 per sf on a GAAP basis and $30.00 per sf on a cash basis generating an average rent spread of 13.3% on a GAAP basis and 4.4% on a cash basis

Refer to "Non-GAAP Financial Measures" and "Operational Metrics" for definitions and further discussions of the measures and metrics highlighted above.

Development, Redevelopment and Anchor Repositioning:
As of June 30, 2016, the Company had approximately $131.4 million of active development, redevelopment and anchor repositioning projects underway of which $81.2 million remains to be funded. The Company expects to generate a 12% return on invested capital based on the expected incremental cash NOI relative to the total investment.

The Company continues to focus on its development and redevelopment pipeline which includes $177.0-$203.0 million of planned expansions and renovations expected to be completed over the next several years. The Company added

1

a project at our property in Mt. Kisco, NY to the redevelopment pipeline with an estimated cost of approximately $2.5 million. The Company projects a return on invested capital of approximately 8% on these projects.

Balance Sheet Highlights:
At June 30, 2016:
•
Total market capitalization (including debt and equity) was approximately $4.4 billion comprised of 105.8 million common shares outstanding (on a fully diluted basis) valued at $3.2 billion and $1.2 billion of debt. The calculation of fully diluted common shares outstanding is provided in the tables accompanying this press release
•
The ratio of net debt (net of cash) to total market capitalization was 24.2%
•
Net debt to annualized Adjusted Earnings before interest, tax, depreciation and amortization ("EBITDA") was 5.7x. A reconciliation of net income to EBITDA and Adjusted EBITDA are provided in the tables accompanying this press release
•
The Company had approximately $156.7 million of cash and cash equivalents and no amounts drawn on its $500.0 million revolving credit facility

Asset Disposition:
On June 9, 2016, the Company completed the sale of a shopping center located in Waterbury, CT for $21.6 million resulting in a gain of $15.6 million. The sale completes a reverse Section 1031 exchange initiated with the acquisition of Cross Bay Commons in Queens, NY in December 2015.


2

Non-GAAP Financial Measures
The Company believes FFO (combined with the primary GAAP presentations) 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. The National Association of Real Estate Investment Trusts ("NAREIT") stated in its April 2002 White Paper on FFO, "Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves." The Company also believes that FFO as Adjusted is a useful supplemental measure of its core operating performance that facilitates comparability of historical financial periods. FFO, as defined by NAREIT and the Company, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciated real estate assets, real estate impairment losses, rental property depreciation and amortization expense. The Company makes certain adjustments to FFO, which it refers to as FFO as Adjusted, to account for items it does not believe are representative of ongoing operating results. The Company believes that financial analysts, investors and stockholders are better served by the presentation of comparable period operating results generated from its FFO and FFO as Adjusted measures primarily because it excludes the assumption that the value of real estate assets diminish predictably. The Company's method of calculating FFO and FFO as Adjusted may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
The Company uses cash NOI, which is a non-GAAP financial measure, internally to make investment and capital allocation decisions and to compare the unlevered performance of our properties to our peers. The Company believes cash NOI is useful to investors as a performance measure because, when compared across periods, cash 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 operating income or net income. As such, cash NOI assists in eliminating disparities in net income due to the development, redevelopment, acquisition or disposition of properties during the periods presented, and thus provides a more consistent performance measure for the comparison of the operating performance of the Company's properties.
In this release, the Company has provided cash 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 totaling 77 properties for the three and six months ended June 30, 2016 and 2015. Information on a same-property basis excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service and also excludes properties acquired, sold, or that are in the foreclosure process during the periods being compared. While there is judgment surrounding changes in designations, a property is removed from the same-property pool when a property is considered to be a redevelopment property because it is undergoing significant renovation or retenanting pursuant to a formal plan and is expected to have a significant impact on property operating income based on the retenanting that is occurring. A development or redevelopment property is moved back to the same-property pool once a substantial portion of the growth expected from the development or redevelopment is reflected in both the current and comparable prior year period, generally the earlier of one year after construction is substantially complete or when the GLA related to the redevelopment is 90% leased. 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 cash NOI on a same-property basis adjusted to include redevelopment properties. The Company calculates same-property cash NOI using net income as defined by GAAP reflecting only those income and expense items that are incurred at the property level, adjusted for the following items: lease termination fees, bankruptcy settlement income, non-cash rental income and ground rent expense and income or expenses that we do not believe are representative of ongoing operating results, if any.
EBITDA and Adjusted EBITDA are supplemental, non-GAAP measures utilized in various financial ratios. EBITDA and Adjusted EBITDA 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 it approximates a key performance measure in our debt covenants. Accordingly, the Company believes that the use of EBITDA and Adjusted EBITDA as opposed to income before income taxes in various ratios, provides a meaningful performance measure as it relates to the Company's ability to meet various coverage tests for the stated periods.The Company also presents the ratio of net debt (net of cash) to annualized Adjusted EBITDA, which is useful to investors as a supplemental measure in evaluating the Company's balance sheet leverage.
FFO, FFO as Adjusted, cash NOI, same-property cash NOI, EBITDA and Adjusted EBITDA are presented to assist investors in analyzing the Company’s operating performance. FFO and FFO as Adjusted do 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

3

distributions. The Company believes net income is the most directly comparable GAAP financial measure to FFO, FFO as Adjusted, cash NOI, same-property cash NOI, EBITDA and Adjusted EBITDA. Reconciliations of these measures to their comparable GAAP measures have been provided in the tables accompanying this press release.

Operational Metrics

The Company presents certain operating metrics related to our properties including occupancy, leasing activity and rental rates. Operating metrics are used by the Company and useful to investors in facilitating an understanding of the operational performance for our properties.

Occupancy metrics represent the percentage of occupied gross leasable area based on executed leases (including properties in development and redevelopment) and includes leases signed, but for which rent has not yet commenced. Same-property retail portfolio occupancy includes shopping centers and malls that have been owned and operated for the entirety of the reporting periods being compared totaling 77 properties for the three and six months ended June 30, 2016 and 2015. Occupancy metrics presented for the Company's same-property retail portfolio excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service and also excludes properties acquired within the past 12 months, properties sold, or that are in the foreclosure process during the periods being compared.

Executed new leases, renewals and exercised options are presented on a same-space basis. Same-space leases represent those leases signed on spaces for which there was a previous lease with comparable gross leasable area.









4

Reconciliation of Net Income to FFO and FFO as Adjusted

The following table reflects the reconciliation of net income to FFO and FFO as Adjusted for the three and six months ended June 30, 2016. Net income is considered the most directly comparable GAAP measure.
 
Three Months Ended
June 30, 2016
 
Six Months Ended
June 30, 2016
 
(in thousands)
 
(per share)
 
(in thousands)
 
(per share)
Net income
$
36,071

 
$
0.34

 
$
55,859

 
$
0.53

Less (net income) attributable to noncontrolling interests in:
 
 
 
 
 
 
 
Operating partnership
(2,201
)
 
(0.02
)
 
(3,355
)
 
(0.03
)
Consolidated subsidiaries
(2
)
 
—

 
2

 
—

Net income attributable to common shareholders
33,868

 
0.32

 
52,506

 
0.50

Adjustments:
 
 
 
 
 
 
 
Gain on sale of real estate
(15,618
)
 
(0.15
)
 
(15,618
)
 
(0.15
)
Rental property depreciation and amortization
13,395

 
0.13

 
27,150

 
0.26

Limited partnership interests in operating partnership
2,201

 
0.02

 
3,355

 
0.03

FFO Applicable to diluted common shareholders(1)
33,846

 
0.32

 
67,393

 
0.64

 
 
 
 
 
 
 
 
Tenant bankruptcy settlement income
(340
)
 
—

 
(1,490
)
 
(0.01
)
Benefit related to income taxes
(625
)
 
(0.01
)
 
(625
)
 
(0.01
)
Transaction costs
34

 
—

 
84

 
—

FFO as Adjusted applicable to diluted common shareholders(1)
$
32,915

 
$
0.31

 
$
65,362

 
$
0.62

 
 
 
 
 
 
 
 
Weighted average diluted common shares - FFO(1)
106,041

 
 
 
105,866

 
 
(1) Refer to the table below for reconciliation of weighted average diluted shares used in EPS calculations and weighted average diluted common shares used in FFO per share calculations.

FFO and FFO as Adjusted are non-GAAP financial measures. The Company believes FFO, as defined by NAREIT, is a widely used and appropriate supplemental measure of operating performance for REITs, and that it provides a relevant basis for comparison among REITs. The Company believes FFO as Adjusted provides additional comparability between historical financial periods. Refer to “Non-GAAP Financial Measures” above.

The following table reflects the reconciliation of weighted average diluted shares used in EPS calculations and weighted average diluted common shares used in FFO per share calculations.
(in thousands)
Three Months Ended
June 30, 2016
 
Six Months Ended
June 30, 2016
Weighted average diluted shares used to calculate EPS
99,668

 
99,592

Assumed conversion of OP and LTIP Units to common stock(1)
6,373

 
6,274

Weighted average diluted common shares used to calculate
FFO per share
106,041

 
105,866

(1) OP and vested LTIP Units are excluded from the calculation of earnings per diluted share for the three and six months ended June 30, 2016 because their inclusion is anti-dilutive. FFO includes earnings allocated to unitholders as the inclusion of these units is dilutive to FFO per share.



5

Reconciliation of Net Income to Cash NOI and Same-Property Cash NOI

The following table reflects the reconciliation of net income to cash NOI, same-property cash NOI and same-property cash NOI including properties in redevelopment for the three and six months ended June 30, 2016 and 2015. Net income is considered the most directly comparable GAAP measure.
 
Three Months Ended June 30,
 
Six Months Ended
June 30,
(Amounts in thousands)
2016
 
2015
 
2016
 
2015
Net income
$
36,071

 
$
17,153

 
$
55,859

 
$
5,136

Add: Income tax (benefit) expense
(306
)
 
464

 
30

 
1,005

Income before income taxes
35,765

 
17,617

 
55,889

 
6,141

Gain on sale of real estate
(15,618
)
 
—

 
(15,618
)
 
—

  Interest income
(177
)
 
(51
)
 
(344
)
 
(62
)
  Interest and debt expense
12,820

 
13,241

 
26,249

 
28,410

Operating income
32,790

 
30,807

 
66,176

 
34,489

Depreciation and amortization
13,558

 
14,233

 
27,473

 
27,965

General and administrative expense
7,535

 
6,792

 
14,255

 
19,118

Transaction costs
34

 
427

 
84

 
22,286

NOI
53,917

 
52,259

 
107,988

 
103,858

    Less: non-cash revenue and expenses
(1,454
)
 
(1,401
)
 
(3,265
)
 
(3,101
)
Cash NOI(1)
52,463

 
50,858

 
104,723

 
100,757

Adjustments:
 
 
 
 
 
 
 
Cash NOI related to properties being redeveloped(1)
(4,233
)
 
(4,795
)
 
(8,207
)
 
(8,934
)
Tenant bankruptcy settlement income
(340
)
 
—

 
(1,490
)
 
(1,260
)
Management and development fee income from non-owned properties
(526
)
 
(693
)
 
(981
)
 
(1,228
)
Cash NOI related to properties acquired, disposed, or in foreclosure(1)
(676
)
 
(450
)
 
(1,378
)
 
(884
)
Environmental remediation costs
—

 
—

 
—

 
1,379

Other(2)
37

 
(60
)
 
89

 
(50
)
    Subtotal adjustments
(5,738
)
 
(5,998
)
 
(11,967
)
 
(10,977
)
Same-property cash NOI
$
46,725

 
$
44,860

 
$
92,756

 
$
89,780

Adjustments:

 

 
 
 
 
Cash NOI related to properties being redeveloped
4,233

 
4,795

 
8,207

 
8,934

Same-property cash NOI including properties in redevelopment
$
50,958

 
$
49,655

 
$
100,963

 
$
98,714

(1) Cash NOI is calculated as total property revenues less property operating expenses, excluding the net effects of non-cash rental income and non-cash ground rent expense.
(2) Other adjustments include revenue and expense items attributable to non-same properties and corporate activities.

Cash NOI and same-property cash NOI are non-GAAP financial measures. The Company believes that same-property cash NOI is a widely used and appropriate supplemental measure of operating performance for comparison among REITs. Refer to “Non-GAAP Financial Measures” above.



6

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

The following table reflects the reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2016 and 2015. Net income is considered the most directly comparable GAAP measure.
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(Amounts in thousands)
2016
 
2015
 
2016
 
2015
Net income
$
36,071

 
$
17,153

 
$
55,859

 
$
5,136

Depreciation and amortization
13,558

 
14,233

 
27,473

 
27,965

Interest and debt expense
12,820

 
13,241

 
26,249

 
28,410

Income tax (benefit) expense
(306
)
 
464

 
30

 
1,005

EBITDA
62,143

 
45,091

 
109,611

 
62,516

Adjustments for Adjusted EBITDA:
 
 
 
 
 
 
 
Gain on sale of real estate
(15,618
)
 
—

 
(15,618
)
 
—

Tenant bankruptcy settlement income
(340
)
 
—

 
(1,490
)
 
(1,260
)
Transaction costs
34

 
427

 
84

 
22,286

Equity awards issued in connection with the spin-off
—

 
—

 
—

 
7,143

Environmental remediation costs
—

 
—

 
—

 
1,379

Adjusted EBITDA
$
46,219

 
$
45,518

 
$
92,587

 
$
92,064

 
 
 
 
 
 
 
 

EBITDA and Adjusted EBITDA are non-GAAP financial measures. Refer to “Non-GAAP Financial Measures” above.

The following table reflects the Company's fully diluted common shares outstanding which is the total number of shares that would be outstanding assuming all possible conversions. Fully diluted common shares outstanding are utilized to calculate our equity market capitalization to allow investors the ability to assess our market value. The sum of the total equity market capitalization and total debt, as calculated in accordance with GAAP, represents the Company's total market capitalization.
 
June 30, 2016
Common shares outstanding
99,294,491

Diluted common shares:
 
OP and LTIP units
6,150,224

Unvested restricted common shares and OPP units
358,782

Fully diluted common shares
105,803,497




7

ADDITIONAL INFORMATION
For a copy of the Company’s supplemental disclosure package, please access the "Investors" section of UE’s website at www.uedge.com. Our website also includes other financial information, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports.

ABOUT URBAN EDGE
Urban Edge Properties is a NYSE listed real estate investment trust focused on managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the New York metropolitan region. Urban Edge owns 83 properties totaling 14.7 million square feet of gross leasable area.

FORWARD-LOOKING STATEMENTS
Certain statements contained in this Press Release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,” “may” or other similar expressions in this Press Release. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict; these factors include, among others, the Company's ability to complete its active development, redevelopment and anchor repositioning projects, the Company's ability to engage in the projects in its planned expansion and redevelopment pipeline and the Company's ability to achieve the estimated unleveraged returns for such projects. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2015.

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Press Release. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this Press Release.


8


URBAN EDGE PROPERTIES
 
 
 
ADDITIONAL DISCLOSURES
 
 
 
As of June 30, 2016
 
 
 
 
 
 
 

Basis of Presentation
The information contained in the Supplemental Disclosure Package does not purport to disclose all items required by GAAP and is unaudited information. This Supplemental Disclosure Package should be read in conjunction with the Company's most recent Form 10-K and Form 10-Q. The results of operations of any property acquired are included in the Company's financial statements since the date of its acquisition, although such properties may be excluded from certain metrics disclosed in this Supplemental Disclosure Package.
Non-GAAP Financial Measures and Forward Looking Statements
For additional information regarding non-GAAP financial measures and forward looking statements, please see pages 3 and 8 of this Supplemental Disclosure Package.




9


URBAN EDGE PROPERTIES
 
 
SUMMARY FINANCIAL RESULTS AND RATIOS
 
 
For the three and six months ended June 30, 2016 (unaudited)
 
(in thousands, except per share, sf, rent psf and financial ratio data)
 
 
 
 
 
 
 
Three months ended
 
Six months ended
 
 
June 30, 2016
 
June 30, 2016
Summary Financial Results
 
 
 
 
Total revenue
 
$
79,457

 
$
162,525

General & administrative expenses (G&A)
 
$
7,535

 
$
14,255

Adjusted EBITDA(7)
 
$
46,219

 
$
92,587

Net income attributable to common shareholders
 
$
33,868

 
$
52,506

Earnings per diluted share
 
$
0.34

 
$
0.53

Funds from operations (FFO)
 
$
33,846

 
$
67,393

FFO per diluted common share
 
$
0.32

 
$
0.64

FFO as Adjusted
 
$
32,915

 
$
65,362

FFO as Adjusted per diluted common share
 
$
0.31

 
$
0.62

Total dividends paid per share
 
$
0.20

 
$
0.40

Stock closing price low-high range
 
$24.49 to $29.86

 
$22.22 to $29.86

Weighted average diluted shares used in EPS computations(1)
 
99,668

 
99,592

Weighted average diluted shares used in FFO computations(1)
 
106,041

 
105,866

 
 
 
 
 
Summary Property, Operating and Financial Data
 
 
 
 
# of Total properties / # of Retail properties
 
83 / 82

 
 
Gross leasable area (GLA) sf - retail portfolio(3)(5)
 
13,761,000

 
 
Weighted average annual rent psf - retail portfolio(3)(5)
 
$
16.89

 
 
Consolidated occupancy at end of period
 
95.1
%
 
 
Consolidated retail portfolio occupancy at end of period(5)
 
96.2
%
 
 
Same-property retail portfolio occupancy at end of period(5)(2)
 
97.4
%
 
 
Same-property retail portfolio physical occupancy at end of period(4)(5)(2)
 
96.4
%
 
 
Same-property cash NOI growth(2)
 
4.2
%
 
3.3
%
Same-property cash NOI growth, including redevelopment properties
 
2.6
%
 
2.3
%
Cash NOI margin - Total portfolio
 
67.4
%
 
65.9
%
Expense recovery ratio - Total portfolio
 
96.5
%
 
94.7
%
New, renewal and option rent spread - cash basis(8)
 
4.4
%
 
16.1
%
New, renewal and option rent spread - GAAP basis(9)
 
13.3
%
 
22.7
%
Net debt to total market capitalization(6)
 
24.2
%
 
24.2
%
Net debt to Adjusted EBITDA(6)
 
5.7
x
 
5.7
x
Adjusted EBITDA to interest expense(7)
 
3.8
x
 
3.7
x
Adjusted EBITDA to fixed charges(7)
 
2.7
x
 
2.7
x
 
 
 
 
 
(1) Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share for the periods presented include OP and vested LTIP Units, which are excluded from the calculation of earnings per diluted share for the periods presented because their inclusion is anti-dilutive. FFO includes earnings allocated to unit holders as the inclusion of these units is dilutive to FFO per share.
(2) The same-property pool for both cash NOI and occupancy includes retail properties the Company consolidated, owned and operated for the entirety of both periods being compared and excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service and excludes properties acquired, sold, or that are in the foreclosure process during the periods being compared.
(3) GLA - retail portfolio excludes 942,000 square feet of warehouses. Weighted average annual rent per square foot for our retail portfolio and warehouses was $16.24.
(4) Physical occupancy includes tenants that have access to their leased space and includes dark and paying tenants.
(5) Our retail portfolio includes shopping centers and malls and excludes warehouses.
(6) See computation on page 16.
(7) See computation on page 14.
(8) Rents have not been calculated on a straight-line basis. Previous/expiring rent is that as of time of expiration and includes any percentage rent paid as well. New rent is that which is paid at commencement.
(9) Rents are calculated on a straight-line ("GAAP") basis.


10


URBAN EDGE PROPERTIES
 
 
CONSOLIDATED BALANCE SHEETS
 
 
As of June 30, 2016 (unaudited) and December 31, 2015
 
 
(in thousands, except share and per share amounts)
 
 
 
 
 
 
June 30,
 
December 31,
 
2016
 
2015
ASSETS
 
 
 

Real estate, at cost:
 

 
 

Land
$
378,997

 
$
389,080

Buildings and improvements
1,587,158

 
1,630,539

Construction in progress
124,098

 
61,147

Furniture, fixtures and equipment
3,970

 
3,876

Total
2,094,223

 
2,084,642

Accumulated depreciation and amortization
(518,215
)
 
(509,112
)
Real estate, net
1,576,008

 
1,575,530

Cash and cash equivalents
156,672

 
168,983

Cash held in escrow and restricted cash
8,995

 
9,042

Tenant and other receivables, net of allowance for doubtful accounts of $2,270 and $1,926, respectively
8,317

 
10,364

Receivable arising from the straight-lining of rents, net of allowance for doubtful accounts of $370 and $148, respectively
87,925

 
88,778

Identified intangible assets, net of accumulated amortization of $21,459 and $22,090, respectively
32,586

 
33,953

Deferred leasing costs, net of accumulated amortization of $13,438 and $12,987, respectively
18,108

 
18,455

Deferred financing costs, net of accumulated amortization of $242 and $709, respectively
2,419

 
2,838

Prepaid expenses and other assets
8,360

 
10,988

Total assets
$
1,899,390

 
$
1,918,931

 
 
 
 
LIABILITIES AND EQUITY
 

 
 

Liabilities:
 
 
 
Mortgages payable, net
$
1,205,278

 
$
1,233,983

Identified intangible liabilities, net of accumulated amortization of $69,013 and $65,220, respectively
151,061

 
154,855

Accounts payable and accrued expenses
39,889

 
45,331

Other liabilities
14,898

 
13,308

Total liabilities
1,411,126

 
1,447,477

Commitments and contingencies
 
 
 
Shareholders’ equity:
 
 
 
Common shares: $0.01 par value; 500,000,000 shares authorized and 99,425,137 and 99,290,952 shares issued and outstanding, respectively
994

 
993

Additional paid-in capital
477,673

 
475,369

Accumulated deficit
(25,616
)
 
(38,442
)
Noncontrolling interests:
 
 
 
Redeemable noncontrolling interests
34,858

 
33,177

Noncontrolling interest in consolidated subsidiaries
355

 
357

Total equity
488,264

 
471,454

Total liabilities and equity
$
1,899,390

 
$
1,918,931


11


URBAN EDGE PROPERTIES
 
 
CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
 
 
For the three and six months ended June 30, 2016 and 2015 (unaudited)
 
(in thousands, except share and per share amounts)
 
 
 
 
 

 
Three Months Ended June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
REVENUE
 
 
 
 
 
 
 
Property rentals
$
58,683

 
$
57,380

 
$
117,612

 
$
114,966

Tenant expense reimbursements
19,879

 
20,451

 
42,386

 
44,754

Management and development fees
526

 
693

 
981

 
1,228

Other income
369

 
191

 
1,546

 
1,550

Total revenue
79,457

 
78,715

 
162,525

 
162,498

EXPENSES
 
 
 
 
 
 
 
Depreciation and amortization
13,558

 
14,233

 
27,473

 
27,965

Real estate taxes
12,723

 
12,517

 
25,972

 
25,341

Property operating
9,840

 
10,985

 
22,699

 
27,508

General and administrative
7,535

 
6,792

 
14,255

 
19,118

Ground rent
2,483

 
2,565

 
5,021

 
5,079

Transaction costs
34

 
427

 
84

 
22,286

Provision for doubtful accounts
494

 
389

 
845

 
712

Total expenses
46,667

 
47,908

 
96,349

 
128,009

Operating income
32,790

 
30,807

 
66,176

 
34,489

Gain on sale of real estate
15,618

 
—

 
15,618

 
—

Interest income
177

 
51

 
344

 
62

Interest and debt expense
(12,820
)
 
(13,241
)
 
(26,249
)
 
(28,410
)
Income before income taxes
35,765

 
17,617

 
55,889

 
6,141

Income tax benefit (expense)
306

 
(464
)
 
(30
)
 
(1,005
)
Net income
36,071

 
17,153

 
55,859

 
5,136

Less (net income) loss attributable to noncontrolling interests in:
 
 
 
 
 
 
 
Operating partnership
(2,201
)
 
(986
)
 
(3,355
)
 
(426
)
Consolidated subsidiaries
(2
)
 
(5
)
 
2

 
(11
)
Net income attributable to common shareholders
$
33,868

 
$
16,162

 
$
52,506

 
$
4,699

 
 
 
 
 
 
 
 
Earnings per common share - Basic:
$
0.34

 
$
0.16

 
$
0.53

 
$
0.05

Earnings per common share - Diluted:
$
0.34

 
$
0.16

 
$
0.53

 
$
0.05

Weighted average shares outstanding - Basic
99,274

 
99,250

 
99,270

 
99,249

Weighted average shares outstanding - Diluted
99,668

 
99,274

 
99,592

 
99,265



12


URBAN EDGE PROPERTIES
 
 
SUPPLEMENTAL SCHEDULE OF NET OPERATING INCOME
 
 
For the three and six months ended June 30, 2016 and 2015
 
(in thousands)
 
 
 
 
 
 
Three Months Ended
June 30,
 
Percent Change
 
Six Months Ended
June 30,
 
Percent Change
 
2016
 
2015
 
 
2016
 
2015
 
Total cash NOI(1)
 
 
 
 
 
 
 
 
 
 
 
Total revenue
$
76,968

 
$
75,804

 
1.5%
 
$157,379
 
$156,903
 
0.3%
Total property operating expenses
(25,061
)
 
(25,828
)
 
(3.0)%
 
(53,693)
 
(56,284)
 
(4.6)%
Cash NOI - total portfolio
$
51,907

 
$
49,976

 
3.9%
 
$
103,686

 
$
100,619

 
3.0%
 
 
 
 
 
 
 
 
 
 
 
 
NOI margin (NOI / Total revenue)
67.4
%
 
65.9
%
 
 
 
65.9
%
 
64.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-property cash NOI(2)
 
 
 
 
 
 
 
 
 
 
 
Property rentals
$
51,088

 
$
49,564

 
 
 
$
101,879

 
$
99,072

 
 
Tenant expense reimbursements
17,905

 
18,586

 
 
 
38,468

 
40,895

 
 
Percentage rent
48

 
106

 
 
 
307

 
476

 
 
Total revenue
69,041

 
68,256

 
1.2%
 
140,654

 
140,443

 
0.2%
Real estate taxes
(11,719
)
 
(11,757
)
 
 
 
(23,812
)
 
(23,469
)
 
 
Property operating
(8,241
)
 
(9,335
)
 
 
 
(19,266
)
 
(22,390
)
 
 
Ground rent
(2,193
)
 
(2,215
)
 
 
 
(4,399
)
 
(4,380
)
 
 
Provision for doubtful accounts(4)
(163
)
 
(89
)
 
 
 
(421
)
 
(424
)
 
 
Total property operating expenses
(22,316
)
 
(23,396
)
 
(4.6)%
 
(47,898
)
 
(50,663
)
 
(5.5)%
Same-property cash NOI(3)
$
46,725

 
$
44,860

 
4.2%
 
$
92,756

 
$
89,780

 
3.3%
 
 
 
 
 
 
 
 
 
 
 
 
Cash NOI related to properties being redeveloped
$
4,233

 
$
4,795

 
 
 
$
8,207

 
$
8,934

 
 
Same-property cash NOI including properties in redevelopment
$
50,958

 
$
49,655

 
2.6%
 
$
100,963

 
$
98,714

 
2.3%
 
 
 
 
 
 
 
 
 
 
 
 
Same-property physical occupancy(3)
96.4
%
 
96.2
%
 
 
 
 
 
 
 
 
Same-property leased occupancy(3)
97.4
%
 
96.9
%
 
 
 
 
 
 
 
 
Number of properties included in same-property analysis
77

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Total revenue includes cash received from tenant bankruptcy settlements and lease termination fees and excludes management and development fee income and non-cash amounts. Property operating expense amounts have been adjusted to exclude non-cash amounts.
(2) Excludes management and development fee income, lease termination fees, bankruptcy settlement income, non-cash rental income and ground rent expense and income or expenses that we do not believe are representative of ongoing operating results, if any.
(3) The same-property pool for both NOI and occupancy includes retail properties the Company consolidated, owned and operated for the entirety of both periods being compared and excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service and properties acquired, sold, or are in the foreclosure process during the periods being compared. Same-property occupancy includes dark and paying tenants.
(4)  
Excludes $0.2 million and $0.3 million of bad debt expense related to non-cash straight-line rents for the three and six months ended June 30, 2016 and 2015, respectively.

13


URBAN EDGE PROPERTIES
 
 
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION and AMORTIZATION (EBITDA)
For the three and six months ended June 30, 2016 and 2015
 
(in thousands)
 
 
 
 
 

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Net income
$
36,071

 
$
17,153

 
$
55,859

 
$
5,136

Depreciation and amortization
13,558

 
14,233

 
27,473

 
27,965

Interest expense
12,097

 
12,505

 
24,867

 
26,990

Amortization of deferred financing costs
723

 
736

 
1,382

 
1,420

Income tax (benefit) expense
(306
)
 
464

 
30

 
1,005

EBITDA
62,143

 
45,091

 
109,611

 
62,516

Adjustments for Adjusted EBITDA:
 
 
 
 
 
 
 
Gain on sale of real estate
(15,618
)
 
—

 
(15,618
)
 
—

Tenant bankruptcy settlement income
(340
)
 
—

 
(1,490
)
 
(1,260
)
Transaction costs
34

 
427

 
84

 
22,286

Equity awards issued in connection with spin-off
—

 
—

 
—

 
7,143

Environmental remediation costs
—

 
—

 
—

 
1,379

Adjusted EBITDA
$
46,219

 
$
45,518

 
$
92,587

 
$
92,064

 
 
 
 
 
 
 
 
Interest expense
$
12,097

 
$
12,505

 
$
24,867

 
$
26,990

 
 
 
 
 
 
 
 
Adjusted EBITDA to interest expense
3.8
x
 
3.6
x
 
3.7
x
 
3.4
x
 
 
 
 
 
 
 
 
Fixed charges
 
 
 
 
 
 
 
Interest and debt expense(1)
$
12,820

 
$
13,241

 
$
26,249

 
$
28,410

Scheduled principal amortization
4,325

 
3,950

 
8,455

 
7,637

Total fixed charges
$
17,145

 
$
17,191

 
$
34,704

 
$
36,047

 
 
 
 
 
 
 
 
Adjusted EBITDA to fixed charges
2.7
x
 
2.6
x
 
2.7
x
 
2.6
x
 
 
 
 
 
 
 
 
(1) Includes amortization of deferred financing costs


14


URBAN EDGE PROPERTIES
 
 
CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS
 
For the three and six months ended June 30, 2016 and 2015
 
(in thousands, except per share amounts)
 
 
 
 
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Net income
$
36,071

 
$
17,153

 
$
55,859

 
$
5,136

Less (net income) attributable to noncontrolling interests in:
 
 
 
 
 
 
 
Operating partnership
(2,201
)
 
(986
)
 
(3,355
)
 
(426
)
Consolidated subsidiaries
(2
)
 
(5
)
 
2

 
(11
)
Net income attributable to common shareholders
33,868

 
16,162

 
52,506

 
4,699

Adjustments:
 
 
 
 
 
 
 
Gain on sale of real estate
(15,618
)
 
—

 
(15,618
)
 
—

Rental property depreciation and amortization
13,395

 
14,112

 
27,150

 
27,650

Limited partnership interests in operating partnership(1)
2,201

 
986

 
3,355

 
426

FFO Applicable to diluted common shareholders
33,846

 
31,260

 
67,393

 
32,775

FFO per diluted common share(2)
0.32

 
0.30

 
0.64

 
0.31

Adjustments to FFO:
 
 
 
 
 
 
 
Tenant bankruptcy settlement income
(340
)
 
—

 
(1,490
)
 
(1,260
)
Benefit related to income taxes
(625
)
 
—

 
(625
)
 
—

Transaction costs
34

 
427

 
84

 
22,286

Equity awards issued in connection with spin-off
—

 
—

 
—

 
7,143

Environmental remediation costs
—

 
—

 
—

 
1,379

Debt restructuring expenses
—

 
—

 
—

 
1,034

FFO as Adjusted applicable to diluted common shareholders

$
32,915

 
$
31,687

 
$
65,362

 
$
63,357

FFO as Adjusted per diluted common share(2)
$
0.31

 
$
0.30

 
$
0.62

 
$
0.60

 
 
 
 
 
 
 
 
Weighted Average diluted common shares(2)
106,041

 
105,416

 
105,866

 
105,304

(1) Represents earnings allocated to LTIP and OP unit holders for unissued common shares which have been excluded for purposes of calculating earnings per diluted share for the periods presented. FFO applicable to diluted common shareholders and FFO as Adjusted applicable to diluted common shareholders calculations include earnings allocated to LTIP and OP unit holders and the respective weighted average share totals include the redeemable shares outstanding as their inclusion is dilutive.
(2) Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share for the periods presented are higher than the GAAP weighted average diluted shares as a result of the dilutive impact of vested LTIP and OP units which are redeemable into our common stock for the three and six months ended June 30, 2016 and 2015, respectively. These redeemable units are not included in the weighted average diluted share count for GAAP purposes because their inclusion is anti-dilutive.








15


URBAN EDGE PROPERTIES
 
 
MARKET CAPITALIZATION, DEBT RATIOS AND LIQUIDITY
 
 
As of June 30, 2016
 
 
(in thousands, except share amounts)
 
 
 
 
 

 
June 30, 2016
Closing market price of common shares
$
29.86

Common stock shares
 
Basic common shares
99,294,491

Diluted common shares:
 
OP and LTIP units
6,150,224

Unvested restricted common shares and OPP units
358,782

Diluted common shares
105,803,497

 
 
Equity market capitalization
$
3,159,292

 
 
 
 
Total consolidated debt(2)
$
1,214,289

Cash and cash equivalents
(156,672
)
Net debt
$
1,057,617

 
 
Net Debt to Adjusted EBITDA(1)
5.7
x
 
 
Total consolidated debt(2)
$
1,214,289

Equity market capitalization
3,159,292

Total market capitalization
$
4,373,581

 
 
Net debt to total market capitalization at applicable market price
24.2
%
 
 
 
 
Gross real estate investments, at cost(3)
$
2,090,253

 
 
Net debt to gross real estate investments
50.6
%
 
 
 
 
(1) Adjusted EBITDA for the period has been annualized.
(2) Total consolidated debt excludes unamortized debt issuance costs.
(3) Excludes Furniture, fixtures and equipment.

16


URBAN EDGE PROPERTIES
 
 
ADDITIONAL DISCLOSURES
 
(in thousands)
 
 
 
 
 
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2016
 
2015
 
2016
 
2015
Certain non-cash items:
 
 
 

 
 
 
 
Straight-line rental income(1)
 
$
60

 
$
(56
)
 
$
361

 
$
27

Amortization of below-market lease intangibles, net(1)
 
1,874

 
2,065

 
3,749

 
4,051

Straight-line ground rent expense(2)
 
(47
)
 
(106
)
 
(135
)
 
(212
)
Amortization of below-market lease intangibles, lessee(2)
 
(243
)
 
(243
)
 
(486
)
 
(486
)
Amortization of deferred financing costs(4)
 
(723
)
 
(736
)
 
(1,382
)
 
(1,420
)
Capitalized interest
 
1,113

 
857

 
1,631

 
857

Share-based compensation expense(3)
 
(1,424
)
 
(828
)
 
(2,721
)
 
(8,269
)
 
 
 
 
 
 
 
 
 
Capital expenditures:(5)
 
 
 
 
 
 
 
 
Development and redevelopment costs
 
$
5,010

 
$
6,834

 
$
14,765

 
$
10,431

Maintenance capital expenditures
 
2,587

 
5,211

 
3,147

 
7,099

Leasing commissions
 
288

 
240

 
892

 
594

Tenant improvements and allowances
 
570

 
591

 
2,127

 
668

Total capital expenditures
 
$
8,455

 
$
12,876

 
$
20,931

 
$
18,792

 
 
 
 
 
 
 
 
 
 
 
June 30, 2016
 
December 31,
2015
 
 
 
 
Other Liabilities:
 
 
 
 
 
 
 
 
Deferred ground rent expense
 
$
6,173

 
$
6,038

 
 
 
 
Deferred tax liability, net
 
3,632

 
3,607

 
 
 
 
Other
 
5,093

 
3,663

 
 
 
 
Total other liabilities
 
$
14,898

 
$
13,308

 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued expenses:
 
 
 
 
 
 
 
 
Tenant prepaid/deferred revenue
 
$
11,738

 
$
16,097

 
 
 
 
Accrued capital expenditures and leasing costs
 
11,540

 
10,261

 
 
 
 
Other
 
16,611

 
18,973

 
 
 
 
Total accounts payable and accrued expenses
 
$
39,889

 
$
45,331

 
 
 
 
(1) Amounts included in the financial statement line item "Property rentals" in the consolidated and combined statements of income.
(2) Amounts included in the financial statement line item "Ground rent" in the consolidated and combined statements of income.
(3) Amounts included in the financial statement line item "General and Administrative" in the consolidated and combined statements of income. Includes $7.1 million of expenses associated with the issuance of LTIP awards in connection with the separation transaction during the six months ended June 30, 2015.
(4) Amounts included in the financial statement line item "Interest and debt expense" in the consolidated and combined statements of income.
(5) Amounts are reported on a GAAP basis.

17


URBAN EDGE PROPERTIES
 
 
TENANT CONCENTRATION - TOP TWENTY-FIVE TENANTS
 
As of June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenant
Number of stores
Square feet
% of total square feet
Annualized base rent
% of total annualized base rent
Weighted average annual rent per square foot
Average remaining term of ABR(1)
The Home Depot
7

920,226

6.3%
$
15,801,538

7.0%
$
17.17

15.0

Walmart / Sam's Wholesale
9

1,438,730

9.8%
10,726,552

4.8%
7.46

9.5

The TJX Companies, Inc.
15

542,522

3.7%
8,683,212

3.8%
16.01

5.3

Lowe's
6

976,415

6.6%
8,575,004

3.8%
8.78

11.2

Stop & Shop / Koninklijke Ahold NV
9

655,618

4.5%
8,015,606

3.6%
12.23

7.3

Best Buy & Co
7

312,952

2.1%
6,966,025

3.1%
22.26

7.7

Kohl's
8

716,345

4.9%
6,713,770

3.0%
9.37

5.4

BJ's Wholesale Club
4

454,297

3.1%
5,278,625

2.3%
11.62

10.4

Sears Holdings, Inc. (Sears and Kmart)
4

547,443

3.7%
5,244,737

2.3%
9.58

19.4

PetSmart, Inc.
9

235,309

1.6%
5,133,861

2.3%
21.82

4.3

ShopRite
4

265,997

1.8%
4,236,388

1.9%
15.93

7.5

Toys "R" Us
7

285,858

1.9%
3,685,514

1.6%
12.89

5.8

Staples, Inc.
8

167,554

1.1%
3,612,769

1.6%
21.56

3.2

Target
2

297,856

2.0%
3,448,666

1.5%
11.58

15.8

Whole Foods
2

100,682

0.7%
3,365,570

1.5%
33.43

11.5

Century 21
1

156,649

1.1%
3,085,619

1.4%
19.70

10.6

LA Fitness
4

181,342

1.2%
3,085,085

1.4%
17.01

11.1

Dick's Sporting Goods
3

151,136

1.0%
2,971,814

1.3%
19.66

2.6

Petco
8

132,210

0.9%
2,350,616

1.0%
17.78

4.8

24 Hour Fitness
1

53,750

0.4%
2,289,750

1.0%
42.60

15.5

National Wholesale Liquidators
1

171,216

1.2%
2,140,019

0.9%
12.50

6.6

The Gap, Inc.
6

75,276

0.5%
2,067,793

0.9%
27.47

4.5

Bed Bath & Beyond
4

143,973

1.0%
1,874,970

0.8%
13.02

4.6

Sleepy's
11

62,222

0.4%
1,762,014

0.8%
28.32

4.8

REI
2

48,237

0.3%
1,668,840

0.7%
34.60

4.2

 
 
 
 
 
 
 
 
Total/Weighted Average
142

9,093,815

61.8%
$
122,784,357

54.3%
$
13.50

9.2

 
 
 
 
 
 
 
 
(1) In years, excluding tenant renewal options. Total top twenty-five tenants is weighted based on annualized base rent ("ABR").

Note: Amounts shown in the table above include all retail properties, including those in redevelopment, on a cash basis other than tenants in a free rent period which are shown at their initial cash rent.


18


URBAN EDGE PROPERTIES
 
 
LEASING ACTIVITY
 
For the three and six months ended June 30, 2016
 
 
 
 
 
 
 
 
Three months ended
June 30, 2016
 
Six months ended
June 30, 2016
 
GAAP(3)
 
Cash(2)
 
GAAP(3)
 
Cash(2)
New leases
 
 
 
 
 
 
 
Number of new leases executed
9

 
9

 
19

 
19

Total square feet
28,320

 
28,320

 
79,600

 
79,600

Number of same space leases(1)
6

 
6

 
10

 
10

Same space square feet
5,645

 
5,645

 
18,907

 
18,907

Prior rent per square foot
$
62.67

 
$
64.60

 
$
38.69

 
$
39.68

New rent per square foot
$
67.68

 
$
60.87

 
$
63.38

 
$
58.82

Same space weighted average lease term (years)
9.4

 
9.4

 
8.1

 
8.1

Same space TIs per square foot(4)
N/A

 
$
11.52

 
N/A

 
10.05

Rent spread
8.0
%
 
(5.8
)%
 
63.8
%
 
48.2
%
 
 
 
 
 
 
 
 
Renewals & Options
 
 
 
 
 
 
 
Number of new leases executed
10

 
10

 
26

 
26

Total square feet
34,655

 
34,655

 
150,916

 
150,916

Number of same space leases(1)
10

 
10

 
26

 
26

Same space square feet
34,655

 
34,655

 
150,916

 
150,916

Prior rent per square foot
$
22.29

 
$
22.89

 
$
17.77

 
$
18.06

New rent per square foot
$
25.82

 
$
24.98

 
$
19.82

 
$
19.36

Same space weighted average lease term (years)
5.4

 
5.4

 
5.1

 
5.1

Same space TIs per square foot(4)
N/A

 
$
0.44

 
N/A

 
0.10

Rent spread
15.8
%
 
9.1
 %
 
11.5
%
 
7.2
%
 
 
 
 
 
 
 
 
Total New Leases and Renewals & Options
 
 
 
 
 
 
 
Number of new leases executed
19

 
19

 
45

 
45

Total square feet
62,975

 
62,975

 
230,516

 
230,516

Number of same space leases(1)
16

 
16

 
36

 
36

Same space square feet
40,300

 
40,300

 
169,823

 
169,823

Prior rent per square foot
$
27.95

 
$
28.73

 
$
20.10

 
$
20.47

New rent per square foot
$
31.68

 
$
30.00

 
$
24.67

 
$
23.76

Same space weighted average lease term (years)
6.0

 
6.0

 
5.5

 
5.5

Same space TIs per square foot(4)
N/A

 
$
1.99

 
N/A

 
1.21

Rent spread
13.3
%
 
4.4
 %
 
22.7
%
 
16.1
%
(1) Leases executed on a same space basis include leases with comparable sf and prior existing tenants.
(2) Rents have not been calculated on a straight-line basis. Previous/expiring rent is that as of time of expiration and includes any percentage rent paid as well. New rent is that which is paid at commencement.
(3) Rents are calculated on a straight-line ("GAAP") basis.
(4) Includes both tenant improvements and landlord contributions.


19


URBAN EDGE PROPERTIES
 
 
RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE
 
As of June 30, 2016
 
 
 
 
 
 
 
 
 
ANCHOR TENANTS (SF>=10,000)
SHOP TENANTS (SF<10,000)
TOTAL TENANTS
Year(1)
# of leases
Square Feet
% of Total SF
Weighted Avg Annual Base Rent PSF(2)
# of leases
Square Feet
% of Total SF
Weighted Avg Annual Base Rent PSF(2)
# of leases
Square Feet
% of Total SF
Weighted Avg Annual Base Rent PSF(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
M-T-M
—

—

—
%
$
—

8
19,000

0.9
%
$
49.47

8
19,000

0.1
%
$
49.47

2016(3)
3

69,000

0.6
%
14.14

33
76,000

3.8
%
42.77

36
145,000

1.0
%
28.56

2017
8

270,000

2.3
%
14.49

75
214,000

10.6
%
32.25

83
484,000

3.5
%
22.26

2018
21

1,011,000

8.6
%
10.58

52
144,000

7.1
%
42.09

73
1,155,000

8.4
%
14.44

2019
27

973,000

8.3
%
17.87

76
223,000

11.0
%
39.86

103
1,196,000

8.7
%
21.97

2020
28

1,090,000

9.3
%
14.49

52
178,000

8.8
%
39.03

80
1,268,000

9.2
%
17.86

2021
23

706,000

6.0
%
16.61

51
155,000

7.7
%
34.96

74
861,000

6.3
%
19.91

2022
17

916,000

7.8
%
10.07

34
100,000

4.9
%
37.57

51
1,016,000

7.4
%
12.78

2023
16

928,000

7.9
%
16.74

29
98,000

4.8
%
35.90

45
1,026,000

7.5
%
18.57

2024
23

1,224,000

10.4
%
11.88

33
124,000

6.1
%
27.06

56
1,348,000

9.8
%
13.32

2025
6

450,000

3.8
%
13.86

32
94,000

4.6
%
35.80

38
544,000

4.0
%
17.65

2026
6

530,000

4.5
%
8.85

39
145,000

7.2
%
30.71

45
675,000

4.9
%
13.29

Thereafter
42

3,352,000

28.7
%
14.80

27
146,000

7.2
%
35.73

69
3,498,000

25.4
%
15.63

Subtotal/Average
220

11,519,000

98.2
%
$
13.94

541
1,716,000

84.7
%
$
36.77

761
13,235,000

96.2
%
$
16.86

Vacant
11

217,000

1.8
%
 N/A
103
309,000

15.3
%
 N/A
114
526,000

3.8
%
 N/A
Total/Average
231

11,736,000

100
%
 N/A
644
2,025,000

100
%
 N/A
875
13,761,000

100
%
 N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Year of expiration excludes tenant renewal options.
(2) Weighted average annual rent per square foot is calculated by annualizing tenant's base cash rent, including ground rent, and excludes tenant reimbursements and concessions and storage rent.
(3) Remainder of 2016.

Note: Amounts shown in table above include both current leases and signed leases that have not commenced on vacant spaces for all retail properties (including properties in redevelopment). The average base rent for our 942,000 square-foot warehouse property (excluded from the table above) is $5.40 per square foot as of June 30, 2016.


20


URBAN EDGE PROPERTIES
 
 
RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE ASSUMING EXERCISE OF ALL RENEWALS AND OPTIONS
As of June 30, 2016
 
 
 
 
 
 
 
 
 
ANCHOR TENANTS (SF>=10,000)
SHOP TENANTS (SF<10,000)
TOTAL TENANTS
Year(1)
# of leases
Square Feet
% of Total SF
Weighted Avg Annual Base Rent PSF(2)
# of leases
Square Feet
% of Total SF
Weighted Avg Annual Base Rent PSF(2)
# of leases
Square Feet
% of Total SF
Weighted Avg Annual Base Rent PSF(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
M-T-M
—

—

—
%
$
—

8

19,000

0.9%
$
49.47

8

19,000

0.1
%
$
49.47

2016(3)
1

12,000

0.1
%
24.75

27

53,000

2.6%
39.06

28

65,000

0.5
%
36.15

2017
3

56,000

0.5
%
20.67

50

121,000

6.0%
37.77

53

177,000

1.3
%
32.24

2018
4

76,000

0.7
%
19.71

40

100,000

4.9%
50.71

44

176,000

1.3
%
37.32

2019
3

142,000

1.2
%
12.40

48

120,000

5.9%
48.83

51

262,000

1.9
%
29.09

2020
5

105,000

0.9
%
18.42

40

123,000

6.1%
48.54

45

228,000

1.7
%
34.43

2021
7

142,000

1.2
%
19.21

38

97,000

4.8%
37.66

45

239,000

1.6
%
26.56

2022
3

122,000

1.0
%
10.28

37

120,000

5.9%
35.83

40

242,000

1.8
%
22.94

2023
5

320,000

2.7
%
17.45

26

75,000

3.7%
39.13

31

395,000

2.9
%
21.57

2024
11

215,000

1.8
%
17.58

40

121,000

6.0%
38.77

51

336,000

2.4
%
25.21

2025
8

295,000

2.5
%
21.38

28

86,000

4.2%
38.14

36

381,000

2.8
%
25.16

2026
7

251,000

2.1
%
18.48

42

145,000

7.2%
40.41

49

396,000

2.9
%
26.15

Thereafter
163

9,783,000

83.4
%
19.15

117

536,000

26.5%
42.28

280

10,319,000

75.0
%
20.37

Subtotal/Average
220

11,519,000

98.1
%
$
18.94

541

1,716,000

84.7%
$
42.50

761

13,235,000

96.2
%
$
21.97

Vacant
11

217,000

1.9
%
 N/A

103

309,000

15.3%
 N/A

114

526,000

3.8
%
 N/A

Total/Average
231

11,736,000

100
%
 N/A

644

2,025,000

100%
 N/A

875

13,761,000

100
%
 N/A

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Year of expiration includes tenant renewal options.
(2) Weighted average annual rent per square foot is calculated by annualizing tenant's base cash rent, including ground rent, and excludes tenant reimbursements and concessions and storage rent and is adjusted for assumed exercised options using option rents specified in the underlying leases. Weighted average annual base rent for leases whose future option rent is based on fair market value or CPI is reported at the last stated option rent in the respective lease.
(3) Remainder of 2016.

Note: Amounts shown in table above includes both current leases and signed leases that have not commenced on vacant spaces for all retail properties (including properties in redevelopment). The average base rent for our 942,000 square-foot warehouse property assuming exercise of all options at future tenant rent (excluded from the table above) is $5.55 per square foot as of June 30, 2016.


21
        
                                        

URBAN EDGE PROPERTIES
 
 
PROPERTY STATUS REPORT
As of June 30, 2016
 
 
(dollars in thousands, except per sf amounts)
 
 
 
 
 


Property
Total Square Feet (1)
Percent Leased (1)
 
Weighted Average Annual Rent per sq ft (2)
Mortgage Debt(7)
 
Major Tenants
 
 
 
 
 
 
 
 
SHOPPING CENTERS AND MALLS:
 
 
 
California:
 
 
 
 
 
 
 
Signal Hill
45,000

100.0%
 
$26.49
—
 
Best Buy
Vallejo (leased through 2043)(8)
45,000

100.0%
 
19.26
—
 
Best Buy
Walnut Creek (1149 South Main Street)(6)
31,000

100.0%
 
70.00
—
 
Anthropologie (lease not commenced)
Walnut Creek (Mt. Diablo) (4)
7,000

100.0%
 
74.00
—
 
Anthropologie
 
 
 
 
 
 
 
 
Connecticut:
 
 
 
 
 
 
 
Newington
189,000

100.0%
 
9.72
$10,442
(3) 
Walmart, Staples
 
 
 
 
 
 
 
 
Maryland:
 
 
 
 
 
 
 
Baltimore (Towson)
155,000

100.0%
 
16.89
$14,517
(3) 
hhgregg, Staples, HomeGoods, Golf Galaxy
Glen Burnie
121,000

90.4%
 
10.02
—
 
Gavigan’s Home Furnishings, Pep Boys
Rockville
94,000

98.1%
 
24.32
—
 
Regal Cinemas
Wheaton (leased through 2060)(8)
66,000

100.0%
 
16.36
—
 
Best Buy
 
 
 
 
 
 
 
 
Massachusetts:
 
 
 
 
 
 
 
Cambridge
(leased through 2033)(8)
48,000

100.0%
 
21.83
—
 
PetSmart, Modell’s Sporting Goods
Chicopee
224,000

100.0%
 
5.50
$7,717
(3) 
Walmart
Milford (leased through 2019)(8)
83,000

100.0%
 
9.01
—
 
Kohl’s
Springfield
182,000

100.0%
 
5.67
$5,323
(3) 
Walmart
 
 
 
 
 
 
 
 
New Hampshire:
 
 
 
 
 
 
 
Salem
37,000

100.0%
 
12.58
—
 
Babies “R” Us
 
 
 
 
 
 
 
 
New Jersey:
 
 
 
 
 
 
 
Bergen Town Center - East, Paramus
211,000

92.9%
 
18.08
—
 
Lowe’s, REI
Bergen Town Center - West, Paramus
960,000

99.4%
 
31.39
$300,000
 
Target, Century 21, Whole Foods Market, Marshalls, Nordstrom Rack, Saks Off 5th, HomeGoods, H&M, Bloomingdale’s Outlet, Nike Factory Store, Old Navy, Nieman Marcus Last Call Studio, Blink Fitness
Brick
278,000

95.3%
 
18.65
$29,696
(3) 
Kohl’s, ShopRite, Marshalls
Carlstadt (leased through 2050)(8)
78,000

95.5%
 
23.38
—
 
Stop & Shop
Cherry Hill
261,000

97.3%
 
8.55
$12,887
(3) 
Wal-Mart, Toys “R” Us, Maxx Fitness
East Brunswick
427,000

100.0%
 
18.66
$34,077
(3) 
Lowe’s, Kohl’s, Dick’s Sporting Goods, P.C. Richard & Son, T.J. Maxx, LA Fitness
East Hanover (200 - 240 Route 10 West)
343,000

85.3%
 
19.97
$35,554
(3) 
The Home Depot, Dick’s Sporting Goods, Marshalls
East Hanover (280 Route 10 West)
28,000

100.0%
 
34.71
$4,228
(3) 
REI
East Rutherford
197,000

100.0%
 
12.62
$12,632
(3) 
Lowe’s
Eatontown
30,000

73.9%
 
29.09
—
 
Petco
Englewood(6)
41,000

64.1%
 
20.83
$11,537
 
New York Sports Club
Garfield
195,000

100.0%
 
13.67
—
 
Walmart, Burlington Coat Factory (lease not commenced), Marshalls, Petsmart (lease not commenced)
Hackensack
275,000

94.4%
 
21.56
$37,693
(3) 
The Home Depot, 99 Ranch (lease not commenced), Staples, Petco
Hazlet
95,000

100.0%
 
3.43
—
 
Stop & Shop (5)

22
        
                                        

URBAN EDGE PROPERTIES
 
 
PROPERTY STATUS REPORT
As of June 30, 2016
 
 
(dollars in thousands, except per sf amounts)
 
 
 
 
 


Property
Total Square Feet (1)
Percent Leased (1)
 
Weighted Average Annual Rent per sq ft (2)
Mortgage Debt(7)
 
Major Tenants
Jersey City
236,000

100.0%
 
12.30
$18,847
(3) 
Lowe’s, P.C. Richard & Son
Kearny
104,000

98.2%
 
18.86
—
 
LA Fitness, Marshalls
Lawnside
147,000

99.3%
 
14.31
$9,933
(3) 
The Home Depot, PetSmart
Lodi (Route 17 North)
171,000

100.0%
 
12.50
$10,544
(3) 
National Wholesale Liquidators
Lodi (Washington Street)
85,000

83.6%
 
20.39
—
 
Blink Fitness, Aldi
Manalapan
208,000

100.0%
 
17.47
$19,560
(3) 
Best Buy, Bed Bath & Beyond, Babies “R” Us, Modell’s Sporting Goods, PetSmart
Marlton
213,000

100.0%
 
14.18
$16,045
(3) 
Kohl’s, ShopRite, PetSmart
Middletown
231,000

100.0%
 
13.14
$16,147
(3) 
Kohl’s, Stop & Shop
Montclair
18,000

100.0%
 
26.20
$2,445
(3) 
Whole Foods Market
Morris Plains
177,000

91.2%
 
21.47
$19,865
(3) 
Kohl’s, ShopRite (5)
North Bergen (Kennedy Blvd)
62,000

100.0%
 
13.73
$4,737
(3) 
Food Bazaar
North Bergen (Tonnelle Ave)
410,000

100.0%
 
20.47
$74,532
 
Walmart, BJ’s Wholesale Club, PetSmart, Staples
North Plainfield
206,000

98.9%
 
9.27
—
 
Costco, The Tile Shop, La-Z-Boy (lease not commenced), Petco (not yet constructed)
Paramus (leased through 2033)(8)
63,000

100.0%
 
42.23
—
 
24 Hour Fitness
Rockaway
173,000

94.8%
 
13.59
$12,225
(3) 
ShopRite, T.J. Maxx
South Plainfield (leased through 2039)(8)
56,000

96.3%
 
20.53
$4,763
(3) 
Staples, Party City
Totowa
271,000

100.0%
 
16.96
$23,023
(3) 
The Home Depot, Bed Bath & Beyond, buy buy Baby, Marshalls, Staples
Turnersville
96,000

100.0%
 
9.62
—
 
Haynes Furniture Outlet (DBA The Dump)
Union (2445 Springfield Ave)
232,000

100.0%
 
17.85
$30,053
(3) 
The Home Depot
Union (Route 22 and Morris Ave)
276,000

99.4%
 
18.53
$26,487
(3) 
Lowe’s, Toys “R” Us, Office Depot
Watchung
170,000

96.6%
 
16.65
$14,008
(3) 
BJ’s Wholesale Club
Woodbridge
226,000

84.1%
 
14.37
$19,203
(3) 
Walmart
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
Bronx (1750-1780 Gun Hill Road)
77,000

100.0%
 
33.91
—
 
Planet Fitness, Aldi
Bronx (Bruckner Boulevard)(6)
501,000

75.3%
 
15.53
—
 
Kmart, Toys “R” Us
Buffalo (Amherst)
311,000

96.9%
 
9.19
—
 
BJ’s Wholesale Club, T.J. Maxx, HomeGoods, Toys “R” Us, LA Fitness
Commack
(leased through 2021)(8)
47,000

100.0%
 
19.22
—
 
PetSmart, Ace Hardware
Dewitt (leased through 2041)(8)
46,000

100.0%
 
22.51
—
 
Best Buy
Freeport (240 West Sunrise Highway) (leased through 2040)(8)
44,000

100.0%
 
20.28
—
 
Bob’s Discount Furniture
Freeport (437 East Sunrise Highway)
173,000

100.0%
 
21.95
$19,865
(3) 
The Home Depot, Staples
Huntington
204,000

99.7%
 
15.56
$15,485
(3) 
Kmart, Marshalls, Old Navy, Petco
Inwood
100,000

95.4%
 
19.40
—
 
Stop & Shop
Mount Kisco
189,000

100.0%
 
16.71
$15,088
 
Target, Stop & Shop
New Hyde Park (leased through 2029)(8)
101,000

100.0%
 
20.21
—
 
Stop & Shop
Oceanside
16,000

100.0%
 
28.00
—
 
Party City
Queens(6)
46,000

81.3%
 
37.19
—
 
 
Rochester
205,000

100.0%
 
3.08
$4,075
(3) 
Walmart
Rochester (Henrietta)
(leased through 2056)(8)
165,000

94.2%
 
3.96
—
 
Kohl’s

23
        
                                        

URBAN EDGE PROPERTIES
 
 
PROPERTY STATUS REPORT
As of June 30, 2016
 
 
(dollars in thousands, except per sf amounts)
 
 
 
 
 


Property
Total Square Feet (1)
Percent Leased (1)
 
Weighted Average Annual Rent per sq ft (2)
Mortgage Debt(7)
 
Major Tenants
Staten Island
165,000

88.8%
 
23.88
—
 
Western Beef, Planet Fitness
West Babylon
66,000

92.7%
 
17.11
—
 
Best Market, Rite Aid
 
 
 
 
 
 
 
 
Pennsylvania:
 
 
 
 
 
 
 
Allentown
372,000

100.0%
 
12.01
$27,863
(3) 
Burlington Coat Factory, Giant Food, Dick’s Sporting Goods, T.J. Maxx, Petco, BigLots
Bensalem
185,000

100.0%
 
12.84
$13,829
(3) 
Kohl’s, Ross Dress for Less, Staples, Petco
Bethlehem
147,000

94.4%
 
7.20
$5,196
(3) 
Giant Food, Petco
Broomall
169,000

100.0%
 
10.68
$9,932
(3) 
Giant Food, Planet Fitness, A.C. Moore, PetSmart
Glenolden
102,000

100.0%
 
12.41
$6,367
(3) 
Walmart
Lancaster
228,000

100.0%
 
4.73
$5,017
(3) 
Lowe’s, Community Aid, Sleepy’s
Springfield
(leased through 2025)(8)
41,000

100.0%
 
20.90
—
 
PetSmart
Wilkes-Barre (461 - 499 Mundy Street)
204,000

91.8%
 
12.89
—
 
Bob’s Discount Furniture, Babies “R” Us,
Ross Dress for Less, Marshalls, Petco
Wyomissing
(leased through 2065)(8)
76,000

93.4%
 
15.86
—
 
LA Fitness, PetSmart
York
111,000

86.3%
 
8.75
$4,839
(3) 
Ashley Furniture, Tractor Supply Company, Aldi
 
 
 
 
 
 
 
 
South Carolina:
 
 
 
 
 
 
 
Charleston
(leased through 2063)(8)
45,000

100.0%
 
14.19
—
 
Best Buy
 
 
 
 
 
 
 
 
Virginia:
 
 
 
 
 
 
 
Norfolk (leased through 2069)(8)
114,000

100.0%
 
7.08
—
 
BJ’s Wholesale Club
Tyson’s Corner
(leased through 2035)(8)
38,000

100.0%
 
43.04
—
 
Best Buy
 
 
 
 
 
 
 
 
Puerto Rico:
 
 
 
 
 
 
 
Las Catalinas
356,000

94.3%
 
36.04
$130,000
 
Kmart, Forever 21
Montehiedra(6)
540,000

92.8%
 
18.20
$118,013
 
Kmart, The Home Depot, Marshalls, Caribbean Theatres, Nike Factory Store, Polo Ralph Lauren
 
 
 
 
 
 
 
 
Total Shopping Centers and Malls
13,761,000
96.2%
 
$16.89
$1,214,289
 
 
 
 
 
 
 
 
 
 
WAREHOUSES:
 
 
 
 
 
 
 
East Hanover - Five Buildings(6)
942,000

79.1%
 
4.71
—
 
J & J Tri-State Delivery, Foremost Groups Inc., PCS Wireless, Fidelity Paper & Supply Inc., Meyer Distributing Inc., Consolidated Simon Distributors Inc., Givaudan Flavors Corp.
Total Urban Edge Properties
14,703,000

95.1%
 
$16.24
$1,214,289
 
 
(1) Percent leased is expressed as a percent of total existing square feet (gross leasable area) subject to a lease.
(2) Weighted average annual rent per square foot including ground leases and executed leases for which rent has not commenced is calculated by annualizing tenant's current base rent (excluding any free rent periods), and excludes tenant reimbursements, concessions and storage rent. Excluding ground leases where the Company is the lessor, the weighted average annual rent per square foot for our retail portfolio is $19.45 per square foot.
(3) Property is included in a cross-collateralized mortgage loan. The amount of mortgage debt secured by our properties at East Brunswick and East Hanover (200-240 Route 10 West) contains parcels that are separately identified in our cross collateralized mortgage loan.
(4) Our ownership of Walnut Creek (Mt. Diablo) is 95% at June 30, 2016.
(5) The tenant has ceased operations at this location but continues to pay rent.
(6) Not included in the same-property pool for the purposes of calculating same-property cash NOI as of June 30, 2016.
(7) Mortgage debt balances exclude unamortized debt issuance costs.
(8) The Company is a lessee under a ground or building lease. The total square feet disclosed for the building will revert to the lessor upon lease expiration.

24


URBAN EDGE PROPERTIES
 
 
PROPERTY ACQUISITIONS AND DISPOSITIONS
 
For the six months ended June 30, 2016
 
 
 
 
 
 
 
 
2016 Property Acquisitions:
 
 
 
 
 
 
 
 
 
 
 
 
None
 
 
 
 
 
 
 
 
 
 
 
 
 
2016 Property Dispositions:
 
 
 
 
 
 
 
 
 
 
 
 
Date Disposed
Property Name
City
State
GLA
Land Acres
Sale Price
6/9/2016
Mattatuck Commons
Waterbury
CT
147,200
19.0
$21,600




25


URBAN EDGE PROPERTIES
 
 
DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS
 
As of June 30, 2016
 
 
(in thousands, except square footage data)
 
 
 
 
 

PROPERTY
Project GLA(2)
Estimated Gross Cost(1)
 
Incurred as of 6/30/16
Balance to Complete (Gross Cost)
Target Stabilization(3)
Project Description
ACTIVE PROJECTS:
 
 
 
 
 
 
Bruckner Boulevard
163,000
$
38,400

 
$
9,400

$
29,000

2Q18
Renovation and retenanting
East Hanover warehouses
942,000
24,000

 
19,200

4,800

2Q17
Renovation and retenanting
Montehiedra Town Center
542,000
20,800

 
10,900

9,900

2Q18
Converting to outlet/value hybrid mall
Garfield(4)
85,000
18,800

 
7,200

11,600

4Q17
Adding Burlington Coat, Petsmart and 17,000± sf of shop space
North
Plainfield(4)
47,500
7,800

 
1,700

6,100

4Q17
Adding La-Z-Boy and 20,000± sf of shop space
Towson(4)
39,000
7,000

 
100

6,900

4Q17
Anchor recapture and releasing
Hackensack(4)
75,000
5,200

 
600

4,600

1Q18
Anchor retenanting (99 Ranch)
Walnut Creek
31,000
5,300

 
700

4,600

1Q17
Anthropologie replacing Barnes & Noble
Turnersville(4)
6,000
2,100

 
200

1,900

3Q17
Replacing vacant Friendly's with Verizon
Glen Burnie(4)
9,000
1,300

 
100

1,200

1Q18
New restaurant pad for Bubba's 33
Walnut Creek
(Mt. Diablo)(4)
7,000
600

 
—

600

3Q17
Z Gallerie replacing Anthropologie
Rockaway(4)
2,700
100

 
100

—

2Q17
Adding Popeyes
Total
1,949,200
$
131,400

(5) 
$
50,200

$
81,200

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMPLETED PROJECTS PENDING TWELVE MONTH STABILIZATION:
 
Freeport(4)
155,000
100

 
100

—

1Q17
Home Depot expanding
East Hanover REI(4)
4,500
500

 
500

—

2Q16
Panera Bread opened 1Q16
Total
159,500
$
600

 
$
600

$
—

 
 
 
 
 
 
 
 
 
 
(1) Project costs includes the allocation of internal costs such as labor, interest and taxes. The estimated gross cost includes $11.7 million of construction costs and expenses incurred by Vornado prior to the spin-off.
(2) Project GLA is subject to change based upon build-to-suit and other tenant-driven requirements.
(3) Target Stabilization reflects the first full quarter in which at least 80% of the expected NOI from the development, redevelopment or anchor repositioning project is realized on a cash basis. Properties may continue to be reflected in development or redevelopment until they are included in the company's same-property NOI pool, which is normally one year from rent commencement. Target Stabilization is an estimate and is subject to change resulting from uncertainties inherent in the development process and not wholly under the Company's control.
(4) Results from these properties are included in our same-property metrics.
(5) The estimated unleveraged yield for active projects including those pending stabilization is approximately 13% as of June 30, 2016 based on the total estimated project costs and the incremental unleveraged NOI expected from leasing activities directly attributable to the active projects. The incremental unleveraged NOI for active projects does not include NOI generated outside the project scope such as the impact on future lease rollovers at the property or the impact on the long-term value of the property.



26

URBAN EDGE PROPERTIES
 
 
DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS
 
As of June 30, 2016
 
 
(in thousands, except square footage data)
 
 
 
 
 

PROPERTY
Potential Investment(1)
Estimated Stabilization(1)(4)
Project Description
DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PIPELINE:
Bergen Town Center
$120,000-130,000
2020
Expansion
Bergen East
$13,000-15,000
2018
Approved pads for 60,000± sf of retail
Kearny
$8,000-9,000
2018
25,000± sf expansion and new pad
Montehiedra outparcel
$7,000-8,000
2018
20,000± sf retail
East Hanover
$4,000-5,000
2018
Anchor repositioning
Brick
$4,000-5,000
2018
Anchor repositioning
Morris Plains
$6,000-7,000
2018
Anchor repositioning
Marlton
$3,000-4,000
2018
Pads for 5,000± sf of retail
West Babylon
$3,000-4,000
2018
10,000± sf of shops on excess land
Huntington
$2,000-3,000
2018
Conversion of 11,000± sf of basement space into street-front retail
Woodbridge
$2,000-3,000
2019
Conversion to pads
Mt. Kisco
$2,000-3,000
2019
Conversion of existing restaurant to three fast food spaces
Cherry Hill
$1,000-2,000
2018
Approved pad for 5,000± sf of retail
Lawnside
$1,000-2,000
2019
Pad for 6,000± sf of retail
Multiple Pad Projects(2)
$1,000-2,000
2018
New pads
Rockaway
±$1,000
2018
Supermarket expansion
Total
$177,000-203,000
(3) 
 
(1) Estimated Stabilization and Potential Investment are subject to change resulting from uncertainties inherent in the development process and not wholly under the Company's control.
(2) Multiple pad projects include possible pad additions at the following properties: East Rutherford, Union, Totowa and Signal Hill. These potential projects are on land leased to anchors and require anchor collaboration.
(3) The estimated unleveraged yield for pipeline projects is approximately 8% as of June 30, 2016 based on the total estimated project costs and the incremental unleveraged NOI expected from leasing activities directly attributable to the pipeline projects. The incremental unleveraged NOI for pipeline projects does not include NOI generated outside the project scope, such as the impact on future lease rollovers at the property or the impact on the long-term value of the property.
(4) Estimated stabilization reflects the year in which at least 80% of the expected NOI from the redevelopment or development project is realized on a cash basis for one full quarter for the first time.



27


URBAN EDGE PROPERTIES
 
 
DEBT SUMMARY
 
As of June 30, 2016 and December 31, 2015
 
 
(in thousands)
 
 
 
 
 

 
June 30, 2016
 
December 31, 2015
Fixed rate debt
$
1,175,533

 
$
1,182,265

Variable rate debt(1)
38,756

 
60,000

Total debt
$
1,214,289

 
$
1,242,265

 
 
 
 
% Fixed rate debt
96.8
%
 
95.2
%
% Variable rate debt
3.2
%
 
4.8
%
Total
100
%
 
100
%
 
 
 
 
 
 
 
 
Secured mortgage debt
$
1,214,289

 
$
1,242,265

Unsecured debt
—

 
—

Total debt
$
1,214,289

 
$
1,242,265

 
 
 
 
% Secured mortgage debt
100
%
 
100
%
% Unsecured mortgage debt
N/A

 
N/A

Total
100
%
 
100
%
 
 
 
 
Weighted average remaining maturity on secured mortgage debt
5.3 years

 
5.8 years

 
 
 
 
 
 
 
 
Total market capitalization (see page 16)
$
4,373,581

 
 
 
 
 
 
% Secured mortgage debt
27.8
%
 
 
% Unsecured debt
—
%
 
 
Total debt : Total market capitalization
27.8
%
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate on secured mortgage debt(2)
4.19
%
 
4.15
%
Weighted average interest rate on unsecured debt(3)
—
%
 
 
 
 
 
 
Note: All amounts and calculations exclude unamortized debt issuance costs on mortgages payable.
(1) In June 2016, in connection with the sale of our property in Waterbury, CT, we prepaid $21.2 million of the variable rate portion of our cross collateralized mortgage loan to maintain compliance with covenant requirements.
(2) Weighted average interest rates are calculated based on balances outstanding at the respective dates.
(3) No amounts are currently outstanding on the unsecured line of credit. To the extent borrowing occurs, the line bears interest at LIBOR plus 1.15% based on our current leverage metrics as defined in the revolving credit agreement. The line matures in February 2019 and has two six-month extension options.



28


URBAN EDGE PROPERTIES
 
 
MORTGAGE DEBT SUMMARY
 
As of June 30, 2016 (unaudited) and December 31, 2015
 
 
(dollars in thousands)
 
 
 
 
 
Debt Instrument
Maturity Date
Rate
June 30, 2016
December 31, 2015
Percent of Debt at June 30, 2016
North Bergen
1/9/18
4.59%
$
74,531

$
75,000

6.1
%
Englewood (3)
10/1/18
6.22%
11,537

11,537

1.0
%
Cross collateralized mortgage - Fixed(4)
9/10/20
4.34%
526,364

533,459

43.3
%
Cross collateralized mortgage - Variable (1)(4)
9/10/20
2.36%
38,756

60,000

3.2
%
Montehiedra, Puerto Rico (senior loan)(2)(6)
7/6/21
5.33%
88,013

88,676

7.2
%
Montehiedra, Puerto Rico (junior loan)(2)
7/6/21
3.00%
30,000

30,000

2.5
%
Bergen Town Center
4/8/23
3.56%
300,000

300,000

24.7
%
Las Catalinas
8/6/24
4.43%
130,000

130,000

10.7
%
Mt Kisco -Target(5)
11/15/34
6.40%
15,088

15,285

1.3
%
Total mortgage debt
 
4.19%
$
1,214,289

$
1,243,957

100
%
Unamortized debt issuance costs
 
 
(9,011
)
(9,974
)
 
Total mortgage debt, net
 
 
$
1,205,278

$
1,233,983

 
DEBT MATURITY SCHEDULE
 
 
 
 
Year
Scheduled Amortization
Balloon Payments
(Discount) Scheduled Amortization
Total
Weighted Average Interest rate at maturity
Percent of debt maturing
   2016(7)
$
8,389

$
—

$
(30
)
$
8,359

4.5%
0.7
%
2017
16,845

—

(61
)
16,784

4.4%
1.4
%
2018
16,218

83,551

(61
)
99,708

4.7%
8.2
%
2019
17,381

—

(61
)
17,320

4.4%
1.4
%
2020
13,787

500,144

(61
)
513,870

4.1%
42.3
%
2021
2,801

118,013

(61
)
120,753

4.7%
9.9
%
2022
2,942

—

(61
)
2,881

4.9%
0.2
%
2023
3,091

300,000

(61
)
303,030

3.6%
25.0
%
2024
2,201

119,050

(61
)
121,190

4.4%
10.0
%
Thereafter
10,992

—

(598
)
10,394

6.4%
0.9
%
Total
$
94,647

$
1,120,758

$
(1,116
)
$
1,214,289

4.2%
100
%
 
Unamortized debt issuance costs
 
(9,011
)
 
 
 
Mortgage debt, net
 
$
1,205,278

 
 
(1) Subject to a LIBOR floor of 1.00%, currently bears interest at LIBOR plus 136 bps. In June 2016, in connection with the sale of our property in Waterbury, CT, we prepaid $21.2 million of the variable rate portion of our cross collateralized mortgage loan to maintain compliance with covenant requirements.
(2) On January 6, 2015, we completed a loan restructuring applicable to the $120.0 million, 6.04% mortgage loan secured by Montehiedra Town Center. The loan has been extended from July 2016 to July 2021 and separated into two tranches, a senior $90.0 million position with interest at 5.33% to be paid currently, and a junior $30.0 million position with interest accruing at 3.0%. As part of the planned redevelopment of the property, the Company is committed to fund $20.0 million for leasing and building capital expenditures of which $11.8 million has been funded as of June 30, 2016.
(3) On March 30, 2015, we notified the lender that due to tenants vacating, the property’s operating cash flow will be insufficient to pay the debt service; accordingly, at our request, the mortgage loan was transferred to the special servicer. As of June 30, 2016 we were in default and remain in discussions with the special servicer including with respect to the possibility that the lender will take possession of the property.
(4) See Property Status Report on page 22 for each property that comprises the cross collateralized mortgage loan.
(5) The mortgage payable balance on the loan secured by Mt. Kisco -Target includes $1.1 million of unamortized debt discount as of June 30, 2016 and December 31, 2015, respectively. The effective interest rate including amortization of the debt discount is 7.26% as of June 30, 2016.
(6) The carrying value of the senior loan secured by Montehiedra was presented net of unamortized fees of $1.7 million as of December 31, 2015. The net unamortized fees of $1.7 million were revised to be presented with the unamortized debt issuance costs.
(7) Remainder of 2016.

29