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




 
 
URBAN EDGE PROPERTIES
 
SUPPLEMENTAL DISCLOSURE
PACKAGE
 
March 31, 2019
 
 



image3a28.jpg




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






URBAN EDGE PROPERTIES
SUPPLEMENTAL DISCLOSURE
March 31, 2019
(unaudited)
 
 
TABLE OF CONTENTS
 
Page
Press Release
 
First Quarter 2019 Earnings Press Release
1
 
 
Overview
 
Summary Financial Results and Ratios
10
 
 
Consolidated Financial Statements
 
Consolidated Balance Sheets
11
Consolidated 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 for Real Estate (EBITDAre)
14
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
29
Debt Maturity Schedule
30
 
 







 
image2a30.jpg
 
 
 
 
 
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 First Quarter 2019 Results
        
NEW YORK, NY, May 1, 2019 - Urban Edge Properties (NYSE:UE) (the "Company") today announced its results for the quarter ended March 31, 2019.

Financial Results(1)(2) 
•
Generated net income of $27.9 million, or $0.22 per diluted share.
•
Generated Funds from Operations applicable to diluted common shareholders ("FFO") of $36.5 million, or $0.29 per share, compared to $44.1 million, or $0.35 per share, for the first quarter of 2018.
•
Generated FFO as Adjusted of $37.1 million, or $0.29 per share, compared to $41.3 million, or $0.33 per share, for the first quarter of 2018.
•
FFO as Adjusted for the quarter excludes expenses related to executive transition and other income and expenses that are not representative of our ongoing core operating results.
Operating Results(1) 
•
Reported a decline in same-property cash Net Operating Income ("NOI") including properties in redevelopment of 0.4% compared to the first quarter of 2018. Excluding the impact of tenant bankruptcies, same-property cash NOI including properties in redevelopment would have increased by 3.7%.
•
Reported a decline in same-property cash NOI excluding properties in redevelopment of 2.2% compared to the first quarter of 2018. Excluding the impact of tenant bankruptcies, same-property cash NOI excluding properties in redevelopment would have increased by 1.8%.
•
Reported same-property portfolio occupancy of 94.0%, an increase of 40 basis points compared to December 31, 2018 and a decrease of 270 basis points compared to March 31, 2018.
•
Reported consolidated portfolio occupancy of 93.4%, an increase of 30 basis points compared to December 31, 2018 and a decrease of 290 basis points compared to March 31, 2018.
•
The year-over-year decline in occupancy rates were impacted by 300 basis points due to bankruptcies related to Toys "R" Us, National Wholesale Liquidators and Fallas.
•
Executed 38 new leases, renewals and options totaling 456,000 square feet ("sf") during the quarter. Same-space leases totaled 446,000 sf and generated average rent spreads of 11.4% on a GAAP basis and 3.8% on a cash basis.
Development and Redevelopment
During the first quarter, the Company completed three redevelopment projects totaling $86.1 million at Bruckner Commons in the Bronx, NY, Yonkers Gateway Center in Yonkers, NY and Bergen Town Center in Paramus, NJ. New anchors Burlington and ShopRite have helped transform Bruckner Commons into a highly desired community shopping destination with new food and restaurant options expected to open later this year. Newly opened Ruth’s Chris at Bergen Town Center expands the selection of food options by providing a fine dining experience at the center and will be part of a larger collection of new restaurants including Cava, Chopt and Sticky's. During the quarter, Marshalls and Homesense opened at Yonkers Gateway Center.

The Company also commenced three new redevelopment projects with estimated gross costs of $13.9 million.


1

The Company has $121 million of active redevelopment projects under way, which are expected to generate a 7% unleveraged yield. Approximately $35 million of that amount remains to be funded.

Anchor Leasing
The Company started the year with 11 large anchor vacancies (>30,000 sf) accounting for approximately 600,000 sf of gross leasable area with a market rent of approximately $15 million a year. Ten of these vacancies occurred in the last year resulting from the Toys “R” Us, National Wholesale Liquidators and Fallas bankruptcies.

During the quarter, the Company executed two leases with Burlington comprising 100,000 sf. The Company is in active discussions to lease six spaces and is warehousing the three remaining spaces for redevelopment.
 
Disposition Activity
The Company sold one property in Chicopee, MA for $18.6 million. Eleven additional non-core properties are under contract or letter of intent to sell for approximately $200 million. The weighted average cap rate on properties sold and under contract for sale is approximately 7.5%. In total, these properties represent more than half of the value of the Company’s non-core assets. Proceeds are expected to be used for acquisitions, redevelopment and potentially a special dividend.

Balance Sheet Highlights at March 31, 2019(1)(3)(4)(5) 
•
Total market capitalization of approximately $4.0 billion comprised of 127.2 million fully-diluted common shares valued at $2.4 billion and $1.6 billion of debt.
•
Net debt to total market capitalization of 28%.
•
Net debt to Adjusted Earnings before interest, tax, depreciation and amortization for real estate ("EBITDAre") of 5.1x.
•
$448.8 million of cash and cash equivalents, including restricted cash, and no amounts drawn on the $600 million revolving credit facility.




























(1) Refer to "Non-GAAP Financial Measures" and "Operating Metrics" for definitions and additional detail.
(2) Refer to page 5 for a reconciliation of net income to FFO and FFO as Adjusted for the quarter ended March 31, 2019.
(3) Refer to page 7 for a reconciliation of net income to EBITDAre and annualized Adjusted EBITDAre for the quarter ended March 31, 2019.
(4) Net debt as of March 31, 2019 is calculated as total consolidated debt of $1.6 billion less total cash and cash equivalents, including restricted cash, of $448.8 million.
(5) Refer to page 16 for the calculation of market capitalization as of March 31, 2019.

2

Non-GAAP Financial Measures
The Company uses certain non-GAAP performance measures, in addition to the primary GAAP presentations, as we believe these measures improve the understanding of the Company's operational results. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the investing public, and thus such reported measures are subject to change. The Company's non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results. The following non-GAAP measures are commonly used by the Company and investing public to understand and evaluate our operating results and performance:
•
FFO: The Company believes FFO is a useful, supplemental measure of its operating performance that is a recognized metric used extensively by the real estate industry and, in particular REITs. FFO, as defined by the National Association of Real Estate Investment Trusts ("Nareit") and the Company, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable real estate and land when connected to the main business of a REIT, impairments on depreciable real estate or land related to a REIT's main business and rental property depreciation and amortization expense. The Company believes that financial analysts, investors and shareholders are better served by the presentation of comparable period operating results generated from FFO primarily because it excludes the assumption that the value of real estate assets diminish predictably. FFO does not represent cash flows from operating activities in accordance with GAAP, should not be considered an alternative to net income as an indication of our performance, and is not indicative of cash flow as a measure of liquidity or our ability to make cash distributions.
•
FFO as Adjusted: The Company provides disclosure of FFO as Adjusted because it believes it is a useful supplemental measure of its core operating performance that facilitates comparability of historical financial periods. FFO as Adjusted is calculated by making certain adjustments to FFO to account for items the Company does not believe are representative of ongoing core operating results, including non-comparable revenues and expenses. The Company's method of calculating FFO as Adjusted may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
•
Cash NOI: The Company uses cash NOI 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 net income. The Company calculates 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 non-cash rental income and expense, and income or expenses that we do not believe are representative of ongoing operating results, if any.
•
Same-property Cash NOI: The Company provides disclosure of 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 83 properties for the three months ended March 31, 2019 and 2018. Information provided on a same-property basis excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area ("GLA") is taken out of service and also excludes properties acquired or sold during the periods being compared. As such, same-property 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. While there is judgment surrounding changes in designations, a property is removed from the same-property pool when it is designated as a redevelopment property because it is undergoing significant renovation or retenanting pursuant to a formal plan that is expected to have a significant impact on its operating income. A development or redevelopment property is moved back to the same-property pool once a substantial portion of the NOI growth expected from the development or redevelopment is reflected in both the current and comparable prior year period, generally one year after at least 80% of the expected NOI from the project is realized on a cash basis. Acquisitions are moved into the same-property pool once we have owned the property for the entirety of the comparable periods and the property is not under significant development or redevelopment. The Company has also provided disclosure of cash NOI on a same-property basis adjusted to include redevelopment properties. Same-property cash NOI may include other adjustments as detailed in the Reconciliation of Net Income to cash NOI and same-property cash NOI included in the tables accompanying this press release.
•
EBITDAre and Adjusted EBITDAre: EBITDAre and Adjusted EBITDAre are supplemental, non-GAAP measures utilized by us in various financial ratios. The White Paper on EBITDAre, approved by Nareit's Board

3

of Governors in September 2017, defines EBITDAre as net income (computed in accordance with GAAP), adjusted for interest expense, income tax expense, depreciation and amortization, losses and gains on the disposition of depreciated property, impairment write-downs of depreciated property and investments in unconsolidated joint ventures, and adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures. EBITDAre and Adjusted EBITDAre are presented to assist investors in the evaluation of REITs, as a measure of the Company's operational performance as they exclude various items that do not relate to or are not indicative of our operating performance and because they approximate key performance measures in our debt covenants. Accordingly, the Company believes that the use of EBITDAre and Adjusted EBITDAre, as opposed to income before income taxes, in various ratios provides meaningful performance measures related to the Company's ability to meet various coverage tests for the stated periods. Adjusted EBITDAre may include other adjustments not indicative of operating results as detailed in the Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre included in the tables accompanying this press release. The Company also presents the ratio of net debt (net of cash) to annualized Adjusted EBITDAre as of March 31, 2019, and net debt (net of cash) to total market capitalization, which it believes is useful to investors as a supplemental measure in evaluating the Company's balance sheet leverage. The presentation of EBITDAre and Adjusted EBITDAre is consistent with EBITDA and Adjusted EBITDA as presented in prior periods.
The Company believes net income is the most directly comparable GAAP financial measure to the non-GAAP performance measures outlined above. Reconciliations of these measures to net income have been provided in the tables accompanying this press release.

Operating 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 are 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 portfolio occupancy includes properties that have been owned and operated for the entirety of the reporting periods being compared totaling 83 properties for the three months ended March 31, 2019 and 2018. Occupancy metrics presented for the Company's same-property 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 or properties sold 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.









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 quarters ended March 31, 2019 and 2018, respectively. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of FFO and FFO as Adjusted.
 
Quarter Ended March 31,
 
2019
 
2018
Net income
$
27,892

 
$
23,039

Less net income attributable to noncontrolling interests in:
 
 
 
Operating partnership
(2,355
)
 
(2,328
)
Consolidated subsidiaries
—

 
(11
)
Net income attributable to common shareholders
25,537

 
20,700

Adjustments:
 
 
 
Rental property depreciation and amortization
21,623

 
21,072

Gain on sale of real estate
(16,953
)
 
—

Real estate impairment loss
3,958

 
—

Limited partnership interests in operating partnership
2,355

 
2,328

FFO Applicable to diluted common shareholders
36,520


44,100

FFO per diluted common share(1)
0.29

 
0.35

Adjustments to FFO:
 
 
 
Executive transition costs(2)
375

 
—

Transaction costs
248

 
—

Tenant bankruptcy settlement income
(27
)
 
(164
)
Casualty gain, net
—

 
(580
)
Tax impact from Hurricane Maria
—

 
168

Environmental remediation costs
—

 
250

Gain on extinguishment of debt
—

 
(2,524
)
FFO as Adjusted applicable to diluted common shareholders
$
37,116


$
41,250

FFO as Adjusted per diluted common share(1)
$
0.29

 
$
0.33

 
 
 
 
Weighted Average diluted common shares(1)
126,504

 
126,581

(1) Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share for the quarter ended March 31, 2018 are higher than the GAAP weighted average diluted shares as a result of the dilutive impact of LTIP and OP units which may be redeemed for our common shares. Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share for the quarter ended March 31, 2019 is consistent with the GAAP weighted average diluted shares.
(2) Amount reflects costs associated with the retirement of the Company's former Chief Operating Officer.


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 quarters ended March 31, 2019 and 2018, respectively. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of cash NOI and same-property cash NOI.
 
Quarter Ended March 31, 2019
(Amounts in thousands)
2019
 
2018
Net income
$
27,892

 
$
23,039

Management and development fee income from non-owned properties
(352
)
 
(342
)
Other expense (income)
230

 
(77
)
Depreciation and amortization
21,830

 
21,270

General and administrative expense
10,580

 
7,641

Casualty and impairment loss (gain), net(1)
3,958

 
(1,341
)
Gain on sale of real estate
(16,953
)
 
—

Interest income
(2,506
)
 
(1,524
)
Interest and debt expense
16,536

 
15,644

Gain on extinguishment of debt
—

 
(2,524
)
Income tax expense
202

 
434

Non-cash revenue and expenses
(2,074
)
 
(2,289
)
Cash NOI
59,343


59,931

Adjustments:
 
 
 
Non-same property cash NOI(2)
(6,109
)
 
(5,938
)
Tenant bankruptcy settlement income
(27
)
 
(164
)
Natural disaster related operating loss
—

 
306

Environmental remediation costs
—

 
250

Same-property cash NOI(3)
$
53,207

 
$
54,385

Cash NOI related to properties being redeveloped
5,857

 
4,891

Same-property cash NOI including properties in redevelopment(3)
$
59,064

 
$
59,276

(1) The three months ended March 31, 2019 reflect a real estate impairment charge recognized on our property in Westfield, NJ. The three months ended March 31, 2018 reflect hurricane-related insurance proceeds net of expenses.
(2) Non-same property cash NOI includes cash NOI related to properties being redeveloped and properties acquired or disposed.
(3) The results for the three months ended March 31, 2019 were negatively impacted by store closures from tenant bankruptcies. Excluding these amounts, same-property cash NOI would have increased by 1.8% and same-property cash NOI including properties in redevelopment would have increased by 3.7% for the quarter:
 
 
 
Quarter Ended March 31,
 
Percent Change
 
 
 
2019
 
2018
 
 
Same-property cash NOI
$
53,207

 
$
54,385

 
(2.2)%
 
Cash NOI lost due to tenant bankruptcies
2,805

 
644

 
 
 
Same-property cash NOI including item above
56,012

 
55,029

 
1.8%
 
Cash NOI related to properties being redeveloped
5,857

 
4,891

 
 
 
Cash NOI lost due to tenant bankruptcies at properties being redeveloped
308

 
39

 
 
 
Same-property cash NOI including properties in redevelopment and including item above
$
62,177


$
59,959

 
3.7%

6

Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

The following table reflects the reconciliation of net income to EBITDAre and Adjusted EBITDAre for the quarters ended March 31, 2019 and 2018, respectively. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of EBITDAre and Adjusted EBITDAre.
 
Quarter Ended March 31,
(Amounts in thousands)
2019
 
2018
Net income
$
27,892

 
$
23,039

Depreciation and amortization
21,830

 
21,270

Interest and debt expense
16,536

 
15,644

Income tax expense
202

 
434

Gain on sale of real estate
(16,953
)
 
—

Real estate impairment loss
3,958

 
—

EBITDAre
53,465


60,387

Adjustments for Adjusted EBITDAre:
 
 
 
Executive transition costs(1)
375

 
—

Transaction costs
248

 
—

Tenant bankruptcy settlement income
(27
)
 
(164
)
Casualty gain, net
—

 
(580
)
Environmental remediation costs
—

 
250

Gain on extinguishment of debt
—

 
(2,524
)
Adjusted EBITDAre
$
54,061

 
$
57,369

(1) Refer to footnote 2 on page 5, Reconciliation of Net Income to FFO and FFO as Adjusted, for the adjustment included in this line item.

7

ADDITIONAL INFORMATION
For a copy of the Company’s supplemental disclosure package, please access the "Investors" section of our 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 87 properties totaling 16.1 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 pursue, finance and complete acquisition opportunities, the Company's ability to engage in the projects in its planned expansion and redevelopment pipeline, the Company's ability to achieve the estimated unleveraged returns for such projects and acquisitions, the estimated remediation and repair costs related to natural disasters at the affected properties and the loss of or bankruptcy of a major tenant and the impact of any such event. 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, 2018 and the other documents filed by the Company with the Securities and Exchange Commission.

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 March 31, 2019
 
 
 
 
 
 
 

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 Annual Report on Form 10-K for the year ended December 31, 2018 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2019. The results of operations of any property acquired are included in the Company's financial statements since the date of 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 quarter ended March 31, 2019 (unaudited)
 
(in thousands, except per share, sf, rent psf and financial ratio data)
 
 
 
 
 
 
 
Quarter ended
Summary Financial Results
 
March 31, 2019
Total revenue
 
$
97,732

General & administrative expenses (G&A)(10)
 
$
10,580

Net income attributable to common shareholders
 
$
25,537

Earnings per diluted share
 
$
0.22

Adjusted EBITDAre(7)
 
$
54,061

Funds from operations (FFO)
 
$
36,520

FFO per diluted common share
 
$
0.29

FFO as Adjusted
 
$
37,116

FFO as Adjusted per diluted common share
 
$
0.29

Total dividends paid per share
 
$
0.22

Stock closing price low-high range (NYSE)
 
$16.59 to $20.73

Weighted average diluted shares used in EPS computations(1)
 
126,504

Weighted average diluted common shares used in FFO computations(1)
 
126,504

 
 
 
Summary Property, Operating and Financial Data
 
 
# of Total properties / # of Retail properties
 
87 / 86

Gross leasable area (GLA) sf - retail portfolio(3)(5)
 
15,196,000

Weighted average annual rent psf - retail portfolio(3)(5)
 
$
18.28

Consolidated occupancy at end of period
 
93.4
 %
Consolidated retail portfolio occupancy at end of period(5)
 
93.0
 %
Same-property portfolio occupancy at end of period(2)
 
94.0
 %
Same-property portfolio physical occupancy at end of period(4)(2)
 
93.2
 %
Same-property cash NOI growth(2)
 
(2.2
)%
Same-property cash NOI growth, including redevelopment properties
 
(0.4
)%
Cash NOI margin - total portfolio
 
62.5
 %
Expense recovery ratio - total portfolio
 
95.4
 %
New, renewal and option rent spread - cash basis(8)
 
3.8
 %
New, renewal and option rent spread - GAAP basis(9)
 
11.4
 %
Net debt to total market capitalization(6)
 
28.0
 %
Net debt to Adjusted EBITDAre(6)
 
5.1
x
Adjusted EBITDAre to interest expense(7)
 
3.4
x
Adjusted EBITDAre to fixed charges(7)
 
3.2
x
 
 
 
(1) Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share is consistent with the GAAP weighted average diluted shares for the quarter ended March 31, 2019.
(2) The same-property pool for both cash NOI and occupancy includes properties the Company consolidated, owned and operated for the entirety of both periods being compared and excludes properties under development and redevelopment, acquired or sold 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 $17.47.
(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. Adjusted EBITDAre is annualized for purposes of calculating net debt to Adjusted EBITDAre.
(7) See computation on page 14.
(8) Rents have not been calculated on a straight-line basis. Previous/expiring rent is the rent at expiry and includes any percentage rent paid. New rent is the rent paid at commencement.
(9) Rents are calculated on a straight-line ("GAAP") basis. See computation on page 19.
(10) Amount includes approximately $0.4 million of executive transition costs related to our former COO who retired in January 2019 and $0.3 million of transaction expenses. 

10


URBAN EDGE PROPERTIES
 
 
CONSOLIDATED BALANCE SHEETS
 
 
As of March 31, 2019 (unaudited) and December 31, 2018
 
 
(in thousands, except share and per share amounts)
 
 
 
 
 
 
March 31,
 
December 31,
 
2019
 
2018
ASSETS
 
 
 

Real estate, at cost:
 

 
 

Land
$
525,027

 
$
525,819

Buildings and improvements
2,174,923

 
2,156,113

Construction in progress
73,649

 
80,385

Furniture, fixtures and equipment
6,790

 
6,675

Total
2,780,389

 
2,768,992

Accumulated depreciation and amortization
(661,435
)
 
(645,872
)
Real estate, net
2,118,954

 
2,123,120

Right-of-use assets
96,466

 
—

Cash and cash equivalents
416,668

 
440,430

Restricted cash
32,120

 
17,092

Tenant and other receivables, net of allowance for doubtful accounts of $6,486 as of December 31, 2018
39,002

 
28,563

Receivable arising from the straight-lining of rents, net of $134 as of December 31, 2018
80,848

 
84,903

Identified intangible assets, net of accumulated amortization of $29,582 and $39,526, respectively
53,994

 
68,422

Deferred leasing costs, net of accumulated amortization of $17,236 and $16,826, respectively
21,558

 
21,277

Deferred financing costs, net of accumulated amortization of $3,020 and $2,764, respectively
1,963

 
2,219

Prepaid expenses and other assets
12,854

 
12,968

Total assets
$
2,874,427

 
$
2,798,994

 
 
 
 
LIABILITIES AND EQUITY
 

 
 

Liabilities:
 
 
 
Mortgages payable, net
$
1,549,479

 
$
1,550,242

Lease liabilities
91,906

 
—

Accounts payable, accrued expenses and other liabilities
85,424

 
98,517

Identified intangible liabilities, net of accumulated amortization of $67,223 and $65,058, respectively
141,526

 
144,258

Total liabilities
1,868,335

 
1,793,017

Commitments and contingencies
 
 
 
Shareholders’ equity:
 
 
 
Common shares: $0.01 par value; 500,000,000 shares authorized and 120,099,294 and 114,345,565 shares issued and outstanding, respectively
1,201

 
1,143

Additional paid-in capital
1,005,129

 
956,420

Accumulated deficit
(56,663
)
 
(52,857
)
Noncontrolling interests:
 
 
 
Operating partnership
55,976

 
100,822

Consolidated subsidiaries
449

 
449

Total equity
1,006,092

 
1,005,977

Total liabilities and equity
$
2,874,427

 
$
2,798,994


11


URBAN EDGE PROPERTIES
 
 
CONSOLIDATED STATEMENTS OF INCOME
 
 
For the quarter ended March 31, 2019 and 2018 (unaudited)
 
(in thousands, except share and per share amounts)
 
 
 
 
 

 
Quarter Ended March 31,
 
2019
 
2018
REVENUE
 
 
 
Rental revenue(1)
$
97,308

 
$
98,394

Management and development fees
352

 
342

Other income
72

 
317

Total revenue
97,732

 
99,053

EXPENSES
 
 
 
Depreciation and amortization
21,830

 
21,270

Real estate taxes(2)
15,477

 
15,775

Property operating(1)(2)
17,061

 
17,903

General and administrative
10,580

 
7,641

Casualty and impairment loss (gain), net
3,958

 
(1,341
)
Lease expense(2)
3,655

 
2,736

Total expenses
72,561

 
63,984

Gain on sale of real estate
16,953

 
—

Interest income
2,506

 
1,524

Interest and debt expense
(16,536
)
 
(15,644
)
Gain on extinguishment of debt
—

 
2,524

Income before income taxes
28,094

 
23,473

Income tax expense
(202
)
 
(434
)
Net income
27,892

 
23,039

Less net income attributable to noncontrolling interests in:
 
 
 
Operating partnership
(2,355
)
 
(2,328
)
Consolidated subsidiaries
—

 
(11
)
Net income attributable to common shareholders
$
25,537

 
$
20,700

 
 
 
 
Earnings per common share - Basic:
$
0.22

 
$
0.18

Earnings per common share - Diluted:
$
0.22

 
$
0.18

Weighted average shares outstanding - Basic
116,274

 
113,677

Weighted average shares outstanding - Diluted
126,504

 
113,864

(1) In adherence with ASC 842 Leases, effective January 1, 2019, the Company includes bad debt expense related to operating lease receivables in "Rental revenue" in the consolidated statements of income for the quarter ended March 31, 2019 and in "Property operating expenses" for the quarter ended March 31, 2018.
(2) In adherence with ASC 842, the Company recognized $0.2 million of common area maintenance and $0.5 million of real estate taxes associated with ground and building leases in "Lease expense" for the quarter ended March 31, 2019. The Company recognized $0.2 million and $0.5 million for these associated expenses in "Property operating expenses" and "Real estate taxes", respectively, for the quarter ended March 31, 2018.




12


URBAN EDGE PROPERTIES
 
 
SUPPLEMENTAL SCHEDULE OF NET OPERATING INCOME
 
 
For the quarter ended March 31, 2019 and 2018
 
(in thousands)
 
 
 
 
 
 
Quarter Ended March 31,
 
Percent Change
 
2019
 
2018
 
Total cash NOI(1)
 
 
 
 
 
Total revenue
$
94,978

 
$
96,049

 
(1.1)%
Total property operating expenses
(35,635
)
 
(36,118
)
 
(1.3)%
Cash NOI - total portfolio
$
59,343

 
$
59,931

 
(1.0)%
 
 
 
 
 
 
NOI margin (NOI / Total revenue)
62.5
%
 
62.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-property cash NOI(1)
 
 
 
 
 
Property rentals
$
60,701

 
$
61,226

 
 
Tenant expense reimbursements
26,081

 
26,399

 
 
Bad debt expense(2)
(397
)
 
—

 
 
Total revenue
86,385


87,625

 
 
Real estate taxes(3)
(14,347
)
 
(14,633
)
 
 
Property operating(2)(3)
(14,981
)
 
(15,379
)
 
 
Lease expense(3)
(3,850
)
 
(3,228
)
 
 
Total property operating expenses
(33,178
)
 
(33,240
)
 
 
Same-property cash NOI(1)
$
53,207

 
$
54,385

 
(2.2)%
 
 
 
 
 
 
Cash NOI related to properties being redeveloped
$
5,857

 
$
4,891

 
 
Same-property cash NOI including properties in redevelopment(1)
$
59,064

 
$
59,276

 
(0.4)%
 
 
 
 
 
 
Same-property physical occupancy
93.2
%
 
96.1
%
 
 
Same-property leased occupancy
94.0
%
 
96.7
%
 
 
Number of properties included in same-property analysis
83

 
 
 
 
 
 
 
 
 
 
(1) Refer to page 6 for a reconciliation of net income to cash NOI and same-property cash NOI.
(2) Bad debt expense of $1.0 million is included in "Property operating expenses" for the quarter ended March 31, 2018.
(3) In adherence with ASC 842, the Company recognized $0.2 million of common area maintenance and $0.5 million of real estate taxes associated with ground and building leases in "Lease expense" for the quarter ended March 31, 2019. The Company recognized $0.2 million and $0.5 million for these associated expenses in "Property operating expenses" and "Real estate taxes", respectively, for the quarter ended March 31, 2018.

13


URBAN EDGE PROPERTIES
 
 
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION and AMORTIZATION for REAL ESTATE (EBITDAre)
For the quarter ended March 31, 2019 and 2018
 
(in thousands)
 
 
 
 
 

 
Quarter Ended March 31,
 
2019
 
2018
Net income
$
27,892

 
$
23,039

Depreciation and amortization
21,830

 
21,270

Interest expense
15,816

 
14,922

Amortization of deferred financing costs
720

 
722

Income tax expense
202

 
434

Gain on sale of real estate
(16,953
)
 
—

Real estate impairment loss
3,958

 
—

EBITDAre
53,465


60,387

Adjustments for Adjusted EBITDAre:
 
 
 
Executive transition costs(1)
375

 
—

Transaction costs
248

 
—

Tenant bankruptcy settlement income
(27
)
 
(164
)
Casualty gain, net
—

 
(580
)
Environmental remediation costs
—

 
250

Gain on extinguishment of debt
—

 
(2,524
)
Adjusted EBITDAre
$
54,061

 
$
57,369

 
 
 
 
Interest expense
$
15,816

 
$
14,922

 
 
 
 
Adjusted EBITDAre to interest expense
3.4
x
 
3.8
x
 
 
 
 
Fixed charges
 
 
 
Interest expense
$
15,816

 
$
14,922

Scheduled principal amortization
1,144

 
869

Total fixed charges
$
16,960

 
$
15,791

 
 
 
 
Adjusted EBITDAre to fixed charges
3.2
x
 
3.6
x
 
 
 
 
(1) Refer to footnote 2 on page 5, Reconciliation of Net Income to FFO and FFO as Adjusted, for the adjustment included in this line item.

14

URBAN EDGE PROPERTIES
 
 
FUNDS FROM OPERATIONS
 
For the quarter ended March 31, 2019
 
(in thousands, except per share amounts)
 
 
 
 
 
 
Quarter Ended March 31, 2019
 
(in thousands)
 
(per share)
Net income
$
27,892

 
$
0.22

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

 
—

Net income attributable to common shareholders
25,537

 
0.20

Adjustments:
 
 
 
Rental property depreciation and amortization
21,623

 
0.17

Real estate impairment loss
3,958

 
0.03

Gain on sale of real estate
(16,953
)
 
(0.13
)
Limited partnership interests in operating partnership(1)
2,355

 
0.02

FFO applicable to diluted common shareholders
36,520

 
0.29

 
 
 
 
Executive transition costs(2)
375

 
—

Transaction costs
248

 
—

Tenant bankruptcy settlement income
(27
)
 
—

FFO as Adjusted applicable to diluted common shareholders
$
37,116


$
0.29

 
 
 
 
Weighted average diluted shares used to calculate EPS
126,504

 
 
Assumed conversion of OP and LTIP Units to common shares
—

 
 
Weighted average diluted common shares - FFO
126,504

 
 
(1) Represents earnings allocated to LTIP and OP unitholders for unissued common shares, which have been excluded for purposes of calculating earnings per diluted share for the period presented.
(2) Refer to footnote 2 on page 5, Reconciliation of Net Income to FFO and FFO as Adjusted, for the adjustment included in this line item.




15


URBAN EDGE PROPERTIES
 
 
MARKET CAPITALIZATION, DEBT RATIOS AND LIQUIDITY
 
 
As of March 31, 2019
 
 
(in thousands, except share amounts)
 
 
 
 
 

 
March 31, 2019
Closing market price of common shares
$
19.00

 
 
Basic common shares
120,099,294

OP and LTIP units
7,109,786

Diluted common shares
127,209,080

 
 
Equity market capitalization
$
2,416,973

 
 
 
 
Total consolidated debt(1)
$
1,560,932

Cash and cash equivalents including restricted cash
(448,788
)
Net debt
$
1,112,144

 
 
Net Debt to annualized Adjusted EBITDAre
5.1
x
 
 
Total consolidated debt(1)
$
1,560,932

Equity market capitalization
2,416,973

Total market capitalization
$
3,977,905

 
 
Net debt to total market capitalization at applicable market price
28.0
%
 
 
 
 
Cash and cash equivalents including restricted cash
$
448,788

Available under unsecured credit facility
600,000

Total liquidity
$
1,048,788

 
 
(1) Total consolidated debt excludes unamortized debt issuance costs of $11.5 million.


16


URBAN EDGE PROPERTIES
 
 
ADDITIONAL DISCLOSURES
 
(in thousands)
 
 
 
 
 
 
 
Quarter Ended March 31,
 
 
2019
 
2018
Rental revenue:
 
 
 
 
Property rentals
 
$
69,534

 
$
69,722

Tenant expense reimbursements
 
28,259

 
28,672

Bad debt expense(7)
 
(485
)
 
—

Total rental revenue
 
$
97,308

 
$
98,394

 
 
 
 
 
Certain non-cash items:
 
 
 

Straight-line rental income (expense)(1)
 
$
330

 
$
(48
)
Amortization of below-market lease intangibles, net(1)
 
2,360

 
2,633

Lease expense GAAP adjustments(2)
 
(307
)
 
(261
)
Reserves on receivables from straight-line rents(5)
 
(308
)
 
(34
)
Amortization of deferred financing costs(4)
 
(720
)
 
(722
)
Capitalized interest(4)
 
565

 
1,154

Share-based compensation expense(3)
 
(3,664
)
 
(2,020
)
 
 
 
 
 
Capital expenditures: (6)
 
 
 
 
Development and redevelopment costs
 
$
23,438

 
$
26,579

Maintenance capital expenditures
 
767

 
643

Leasing commissions
 
591

 
530

Tenant improvements and allowances
 
2,413

 
894

Total capital expenditures
 
$
27,209

 
$
28,646

 
 
 
 
 
 
 
March 31, 2019
 
December 31, 2018
Accounts payable, accrued expenses and other liabilities:
 
 
 
 
Deferred tenant revenue
 
$
28,384

 
$
28,697

Accrued capital expenditures and leasing costs
 
22,943

 
29,754

Accrued interest payable
 
9,292

 
8,950

Deferred tax liability, net
 
4,685

 
5,532

Security deposits
 
5,458

 
5,396

Accrued payroll expenses
 
2,453

 
5,747

Other liabilities and accrued expenses
 
12,209

 
7,371

Accrued rent(8)
 
—

 
7,070

Total accounts payable and accrued expenses
 
$
85,424

 
$
98,517

 
 
 
 
 
(1) Amounts included in the financial statement line item "Rental revenue" in the consolidated statements of income.
(2) GAAP adjustments consist of amortization of below-market ground lease intangibles and straight-line lease expense. Amounts are included in the financial statement line item "Lease expense" in the consolidated statements of income.
(3) Amounts included in the financial statement line item "General and administrative" in the consolidated statements of income.
(4) Amounts included in the financial statement line item "Interest and debt expense" in the consolidated statements of income.
(5) Amounts included in the financial statement line item "Rental revenue" for the quarter ended March 31, 2019 and "Property operating expenses" for the quarter ended March 31, 2018 in the consolidated statements of income.
(6) Amounts presented on a cash basis.
(7) In adherence with ASC 842 Leases, effective January 1, 2019, the Company includes bad debt expense related to operating lease receivables in "Rental revenue" in the consolidated statements of income for the quarter ended March 31, 2019 and in "Property operating expenses" for all prior periods.
(8) In connection with the adoption of ASC 842 on January 1, 2019, we reclassified $7.1 million of accrued rent and adjusted the carrying values of our ROU assets by the corresponding amount.

17


URBAN EDGE PROPERTIES
 
 
TENANT CONCENTRATION - TOP TWENTY-FIVE TENANTS
 
As of March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenant
Number of stores
Square feet
% of total square feet
Annualized base rent ("ABR")
% of total ABR
Weighted average ABR per square foot
Average remaining term of ABR(1)
The Home Depot, Inc.
7

920,226

5.7%
$
16,497,358

6.3%
$
17.93

14.5
The TJX Companies, Inc.(2)
18

614,628

3.8%
11,120,664

4.2%
18.09

5.2
Best Buy Co., Inc.
10

442,118

2.7%
10,563,530

4.0%
23.89

5.8
Walmart Inc.
8

1,221,204

7.6%
9,599,762

3.6%
7.86

7.1
Lowe's Companies, Inc.
6

976,415

6.1%
8,575,004

3.3%
8.78

8.5
Ahold Delhaize(3)
8

589,907

3.7%
7,123,389

2.7%
12.08

7.9
Kohl's Corporation
8

716,345

4.4%
7,103,229

2.7%
9.92

4.2
PetSmart, Inc.
12

287,493

1.8%
6,785,494

2.6%
23.60

4.4
Sears Holdings Corporation(4)
4

547,443

3.4%
5,413,698

2.1%
9.89

26.4
BJ's Wholesale Club
4

454,297

2.8%
5,314,730

2.0%
11.70

9.1
Wakefern (ShopRite)
4

294,491

1.8%
5,241,942

2.0%
17.80

13.2
Staples, Inc.
9

186,030

1.2%
4,025,777

1.5%
21.64

1.9
Burlington Stores, Inc.
4

261,342

1.6%
3,917,188

1.5%
14.99

9.5
The Gap, Inc.(5)
8

123,784

0.8%
3,574,801

1.4%
28.88

2.7
Target Corporation
2

297,856

1.8%
3,548,666

1.3%
11.91

12.9
Century 21
1

156,649

1.0%
3,394,181

1.3%
21.67

7.8
Whole Foods Market, Inc.
2

100,682

0.6%
3,365,570

1.3%
33.43

11.5
LA Fitness International LLC
4

181,342

1.1%
3,165,032

1.2%
17.45

8.2
Bob's Discount Furniture
4

170,931

1.1%
3,008,485

1.1%
17.60

4.1
24 Hour Fitness
1

53,750

0.3%
2,564,520

1.0%
47.71

12.8
Dick's Sporting Goods, Inc.(6)
3

117,345

0.7%
2,291,322

0.9%
19.53

4.2
URBN (Anthropologie)
1

31,450

0.2%
2,201,500

0.8%
70.00

9.5
Bed Bath & Beyond Inc.(7)        
5

149,879

0.9%
2,098,009

0.8%
14.00

4.2
Hudson's Bay Company (Saks)
2

59,143

0.4%
1,921,776

0.7%
32.49

4.5
Raymour & Flanigan
3

179,370

1.1%
1,867,412

0.7%
10.41

9.5
 
 
 
 
 
 
 
 
Total/Weighted Average
138

9,134,120

56.6%
$
134,283,039

51%
$
14.70

8.8
 
 
 
 
 
 
 
 
(1) In years excluding tenant renewal options. The weighted average is based on ABR.
(2) Includes Marshalls (12), T.J. Maxx (3), HomeGoods (2) and Homesense (1).
(3) Includes Stop & Shop (6) and Giant Food (2).
(4) Includes Kmart (4). Sears Holdings Corporation ("Sears") declared bankruptcy on October 15, 2018. Kmart generates approximately $8.5 million in annual gross rents including tenant reimbursement income, for the Company. Kmart closed its stores at Las Catalinas in Puerto Rico and Huntington, NY during January 2019, however property rents have been paid on all four locations through April 2019. As of April 30, 2019, our Kmart lease at Las Catalinas was rejected.
(5) Includes Old Navy (5), Gap (2) and Banana Republic (1).
(6) Includes Dick's Sporting Goods (2) and Golf Galaxy (1).
(7) Includes Harmon Face Values (3) and Bed Bath & Beyond (2).




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

18


URBAN EDGE PROPERTIES
 
 
LEASING ACTIVITY
 
For the quarter ended March 31, 2019
 
 
 
 
 
 
 
 
Quarter Ended March 31, 2019
 
GAAP(3)
 
Cash(2)
New leases
 
 
 
Number of new leases executed
11

 
11

Total square feet
114,810

 
114,810

Number of same space leases(1)
8

 
8

Same space square feet
104,492

 
104,492

Prior rent per square foot
$
18.11

 
$
19.52

New rent per square foot
$
19.19

 
$
18.19

Same space weighted average lease term (years)
9.9

 
9.9

Same space TIs per square foot
N/A

 
$
15.28

Rent spread
6.0
%
 
(6.8
)%
 
 
 
 
Renewals & Options
 
 
 
Number of leases executed
27

 
27

Total square feet
341,422

 
341,422

Number of same space leases(1)
27

 
27

Same space square feet
341,422

 
341,422

Prior rent per square foot
$
17.08

 
$
17.48

New rent per square foot
$
19.34

 
$
18.78

Same space weighted average lease term (years)
7.6

 
7.6

Same space TIs per square foot
N/A

 
$
0.06

Rent spread
13.2
%
 
7.4
 %
 
 
 
 
Total New Leases and Renewals & Options
 
 
 
Number of leases executed
38

 
38

Total square feet
456,232

 
456,232

Number of same space leases(1)
35

 
35

Same space square feet
445,914

 
445,914

Prior rent per square foot
$
17.32

 
$
17.96

New rent per square foot
$
19.30

 
$
18.64

Same space weighted average lease term (years)
8.1

 
8.1

Same space TIs per square foot
N/A

 
$
3.62

Rent spread
11.4
%
 
3.8
 %
(1) Leases executed on a same space basis include leases with prior occupancy.
(2) Rents are not calculated on a straight-line (GAAP) basis. Previous/expiring rent is the rent at expiry and includes any percentage rent paid. New rent is the rent paid at commencement.
(3) Rents are calculated on a straight-line (GAAP) basis.


19


URBAN EDGE PROPERTIES
 
 
RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE
 
As of March 31, 2019
 
 
 
 
 
 
 
 
 
ANCHOR TENANTS (SF>=10,000)
SHOP TENANTS (SF<10,000)
TOTAL TENANTS
Year(1)
# of leases
Square Feet
% of Total SF
Weighted Avg ABR PSF(2)
# of leases
Square Feet
% of Total SF
Weighted Avg ABR PSF(2)
# of leases
Square Feet
% of Total SF
Weighted Avg ABR PSF(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
M-T-M
—

—

—
%
$
—

17

36,000

1.5%
$
34.05

17

36,000

0.2
%
$
34.05

2019
9

308,000

2.4
%
11.62

63

178,000

7.6%
36.07

72

486,000

3.2
%
20.57

2020
25

877,000

6.8
%
15.80

91

278,000

11.9%
34.48

116

1,155,000

7.6
%
20.29

2021
26

668,000

5.2
%
21.15

70

225,000

9.6%
35.05

96

893,000

5.9
%
24.65

2022
24

1,104,000

8.6
%
11.96

68

192,000

8.2%
33.14

92

1,296,000

8.5
%
15.10

2023
34

1,499,000

11.7
%
15.44

48

156,000

6.6%
36.60

82

1,655,000

10.9
%
17.43

2024
36

1,445,000

11.2
%
15.85

54

206,000

8.8%
29.60

90

1,651,000

10.9
%
17.56

2025
14

627,000

4.9
%
13.35

34

112,000

4.8%
35.95

48

739,000

4.9
%
16.77

2026
8

508,000

3.9
%
8.92

56

177,000

7.5%
30.78

64

685,000

4.5
%
14.57

2027
16

607,000

4.7
%
16.00

38

175,000

7.5%
37.95

54

782,000

5.1
%
20.91

2028
11

403,000

3.1
%
21.84

33

121,000

5.2%
40.43

44

524,000

3.5
%
26.13

2029
22

1,177,000

9.2
%
18.02

28

101,000

4.3%
47.20

50

1,278,000

8.4
%
20.32

Thereafter
34

2,848,000

22.2
%
13.73

21

105,000

4.5%
36.54

55

2,953,000

19.4
%
14.55

Subtotal/Average
259

12,071,000

93.9
%
$
15.20

621

2,062,000

88.0%
$
35.92

880

14,133,000

93.0
%
$
18.23

Vacant
20

781,000

6.1
%
 N/A

114

282,000

12.0%
 N/A

134

1,063,000

7.0
%
 N/A

Total/Average
279

12,852,000

100
%
 N/A

735

2,344,000

100%
 N/A

1,014

15,196,000

100
%
 N/A

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Year of expiration excludes tenant renewal options.
(2) Weighted average annual base rent per square foot is calculated by annualizing tenants' in-place, contractual, cash-basis rent including ground rent and excludes tenant reimbursements, concessions and storage rent.


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 $5.37 per square foot as of March 31, 2019.

20


URBAN EDGE PROPERTIES
 
 
RETAIL PORTFOLIO LEASE EXPIRATION SCHEDULE ASSUMING EXERCISE OF ALL RENEWALS AND OPTIONS
As of March 31, 2019
 
 
 
 
 
 
 
 
 
ANCHOR TENANTS (SF>=10,000)
SHOP TENANTS (SF<10,000)
TOTAL TENANTS
Year(1)
# of leases
Square Feet
% of Total SF
Weighted Avg ABR PSF(2)
# of leases
Square Feet
% of Total SF
Weighted Avg ABR PSF(2)
# of leases
Square Feet
% of Total SF
Weighted Avg ABR PSF(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
M-T-M
—

—

—
%
$
—

17

36,000

1.5%
$
34.12

17

36,000

0.2
%
$
34.12

2019
7

280,000

2.2
%
10.23

49

133,000

5.7%
38.36

56

413,000

2.7
%
19.29

2020
6

119,000

0.9
%
17.38

76

211,000

9.0%
37.66

82

330,000

2.2
%
30.34

2021
6

121,000

0.9
%
18.25

49

137,000

5.8%
36.05

55

258,000

1.7
%
27.70

2022
3

69,000

0.5
%
9.70

42

116,000

4.9%
38.21

45

185,000

1.2
%
27.57

2023
8

230,000

1.8
%
21.66

29

76,000

3.2%
40.80

37

306,000

2.0
%
26.42

2024
7

129,000

1.0
%
14.30

42

121,000

5.2%
36.37

49

250,000

1.6
%
24.98

2025
10

329,000

2.6
%
19.78

27

90,000

3.9%
34.87

37

419,000

2.8
%
23.02

2026
7

184,000

1.4
%
14.52

47

130,000

5.5%
36.13

54

314,000

2.1
%
23.47

2027
8

300,000

2.4
%
17.32

30

81,000

3.5%
29.31

38

381,000

2.5
%
19.87

2028
9

426,000

3.3
%
14.60

27

88,000

3.8%
38.32

36

514,000

3.4
%
18.66

2029
13

435,000

3.4
%
21.00

21

77,000

3.3%
41.73

34

512,000

3.4
%
24.12

Thereafter
175

9,449,000

73.5
%
21.39

165

766,000

32.7%
44.18

340

10,215,000

67.2
%
23.10

Subtotal/Average
259

12,071,000

93.9
%
$
20.42

621

2,062,000

88.0%
$
39.67

880

14,133,000

93.0
%
$
23.22

Vacant
20

781,000

6.1
%
 N/A

114

282,000

12.0%
 N/A

134

1,063,000

7.0
%
 N/A

Total/Average
279

12,852,000

100
%
 N/A

735

2,344,000

100%
 N/A

1,014

15,196,000

100
%
 N/A

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Year of expiration includes tenant renewal options.
(2) Weighted average annual base rent per square foot is calculated by annualizing tenants' in-place, contractual, cash-basis rent including ground rent and excludes tenant reimbursements, concessions and storage rent and is adjusted assuming all option rents specified in the underlying leases are exercised. 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.


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) assuming exercise of all options at future tenant rent is $6.18 per square foot as of March 31, 2019.

21
        
                                        

URBAN EDGE PROPERTIES
 
 
PROPERTY STATUS REPORT
As of March 31, 2019
 
 
(dollars in thousands, except per sf amounts)
 
 
 
 
 


Property
Total Square Feet (1)
Percent Leased(1)
Weighted Average ABR PSF(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)(3)
45,000

100.0%
12.00
—
Best Buy
Walnut Creek (Olympic)
31,000

100.0%
70.00
—
Anthropologie
Walnut Creek (Mt. Diablo)(4)
7,000

100.0%
122.00
—
Z Gallerie
Connecticut:
 
 
 
 
 
Newington
189,000

100.0%
9.97
—
Walmart, Staples
Maryland:
 
 
 
 
 
Baltimore (Towson)(6)
155,000

100.0%
24.09
—
Staples, HomeGoods, Golf Galaxy, Tuesday Morning, Five Below, Ulta, Kirkland's, Sprouts
Glen Burnie
129,000

100.0%
10.21
—
Gavigan's Home Furnishings, Pep Boys
Rockville
94,000

98.0%
27.56
—
Regal Entertainment Group
Wheaton (leased through 2060)(3)
66,000

100.0%
16.70
—
Best Buy
Massachusetts:
 
 
 
 
 
Cambridge (leased through 2033)(3)
48,000

100.0%
24.57
—
PetSmart, A.C. Moore
Milford (leased through July 2019)(3)
83,000

100.0%
9.01
—
Kohl's
Springfield
182,000

100.0%
5.66
—
Walmart
Missouri:
 
 
 
 
 
Manchester
131,000

100.0%
11.17
$12,500
Academy Sports, Bob's Discount Furniture, Pan-Asia Market
New Hampshire:
 
 
 
 
 
Salem (leased through 2102)(3)
37,000

—%
—
—

New Jersey:
 
 
 
 
 
Bergen Town Center - East, Paramus
253,000

97.5%
21.78
—
Lowe's, REI, Kirkland's, Best Buy
Bergen Town Center - West, Paramus
966,000

97.8%
32.89
$300,000
Target, Century 21, Whole Foods Market, Burlington (under construction), Marshalls, Nordstrom Rack, Saks Off 5th, HomeGoods, H&M, Bloomingdale's Outlet, Nike Factory Store, Old Navy, Nieman Marcus Last Call Studio
Brick
278,000

100.0%
19.74
$50,000
Kohl's, ShopRite, Marshalls, Kirkland's
Carlstadt (leased through 2050)(3)
78,000

100.0%
23.69
—
Stop & Shop
Cherry Hill (Cherry Hill Commons)
263,000

70.8%
10.72
—
Walmart
Cherry Hill (Plaza at Cherry Hill)
420,000

73.3%
13.38
$28,930
LA Fitness, Aldi, Raymour & Flanigan, Restoration Hardware, Total Wine, Guitar Center, Sam Ash Music
East Brunswick
427,000

100.0%
14.37
$63,000
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

98.2%
21.62
$63,000
The Home Depot, Dick's Sporting Goods, Saks Off Fifth, Marshalls, Forever21 Red, Paper Store
East Hanover (280 Route 10 West)
28,000

100.0%
34.71
—
REI
East Rutherford
197,000

98.3%
12.68
$23,000
Lowe's
Garfield
289,000

100.0%
15.22
$40,300
Walmart, Burlington, Marshalls, PetSmart, Ulta
Hackensack
275,000

99.4%
23.66
$66,400
The Home Depot, Staples, Petco, 99 Ranch
Hazlet
95,000

100.0%
3.70
—
Stop & Shop(5)
Jersey City (Hudson Mall)
382,000

81.7%
16.85
$24,149
Marshalls, Big Lots, Retro Fitness, Staples, Old Navy
Jersey City (Hudson Commons)
236,000

100.0%
12.37
$29,000
Lowe's, P.C. Richard & Son
Kearny
104,000

98.2%
19.53
—
LA Fitness, Marshalls

22
        
                                        

URBAN EDGE PROPERTIES
 
 
PROPERTY STATUS REPORT
As of March 31, 2019
 
 
(dollars in thousands, except per sf amounts)
 
 
 
 
 


Property
Total Square Feet (1)
Percent Leased(1)
Weighted Average ABR PSF(2)
Mortgage Debt(7)
Major Tenants
Lawnside
151,000

100.0%
16.31
—
The Home Depot, PetSmart
Lodi (Route 17 North)
171,000

—%
—
—
 
Lodi (Washington Street)
85,000

87.6%
21.95
—
Blink Fitness, Aldi
Manalapan
208,000

90.3%
18.81
—
Best Buy, Bed Bath & Beyond, Raymour & Flanigan, PetSmart
Marlton
218,000

100.0%
15.75
$37,400
Kohl's, ShopRite, PetSmart
Middletown
231,000

98.3%
13.62
$31,400
Kohl's, Stop & Shop
Millburn
104,000

98.8%
25.25
$24,000
Trader Joe's, CVS, PetSmart
Montclair
21,000

100.0%
26.20
—
Whole Foods Market
Morris Plains(6)
182,000

66.1%
25.73
—
Kohl's
North Bergen (Kennedy Blvd)
62,000

100.0%
14.27
—
Food Bazaar
North Bergen (Tonnelle Ave)
410,000

100.0%
20.70
$100,000
Walmart, BJ's Wholesale Club, PetSmart, Staples
North Plainfield
241,000

100.0%
11.56
$25,100
Costco, The Tile Shop, La-Z-Boy, Petco, Da Vita Dialysis (lease not commenced)
Paramus (leased through 2033)(3)
63,000

100.0%
47.18
—
24 Hour Fitness
Rockaway
189,000

97.8%
14.98
$27,800
ShopRite, T.J. Maxx
South Plainfield (leased through 2039)(3)
56,000

96.3%
20.58
—
Staples, Party City
Totowa
271,000

100.0%
17.45
$50,800
The Home Depot, Bed Bath & Beyond, buybuy Baby, Marshalls, Staples
Turnersville
98,000

100.0%
9.94
—
Haynes Furniture Outlet (DBA The Dump), Verizon Wireless
Union (2445 Springfield Ave)
232,000

100.0%
17.85
$45,600
The Home Depot
Union (Route 22 and Morris Ave)
278,000

100.0%
17.26
—
Lowe's, Burlington (lease not commenced), Office Depot
Watchung
170,000

98.3%
17.37
$27,000
BJ's Wholesale Club
Westfield (One Lincoln Plaza)
22,000

89.9%
35.18
$4,730
Five Guys, PNC Bank
Woodbridge (Woodbridge Commons)
226,000

96.5%
13.02
$22,100
Walmart, Family Discount Furniture
Woodbridge (Plaza at Woodbridge)
414,000

61.7%
18.29
$55,340
Best Buy, Raymour & Flanigan, Lincoln Tech, Harbor Freight, Retro Fitness
New York:
 
 
 
 
 
Bronx (1750-1780 Gun Hill Road)
77,000

100.0%
36.26
$24,500
Planet Fitness, Aldi
Bronx (Bruckner Boulevard)(6)
375,000

82.0%
26.91
—
Kmart, Marshalls, ShopRite, Burlington
Bronx (Shops at Bruckner)
114,000

72.1%
39.94
$11,432
Marshalls, Old Navy
Buffalo (Amherst)
311,000

100.0%
10.74
—
BJ's Wholesale Club, T.J. Maxx, Burlington (lease not commenced), HomeGoods, LA Fitness
Commack (leased through 2021)(3)
47,000

100.0%
20.69
—
PetSmart, Ace Hardware
Dewitt (leased through 2041)(3)
46,000

100.0%
22.51
—
Best Buy
Freeport (Meadowbrook Commons) (leased through 2040)(3)
44,000

100.0%
22.31
—
Bob's Discount Furniture
Freeport (Freeport Commons)
173,000

100.0%
21.95
$43,100
The Home Depot, Staples
Huntington
204,000

96.4%
15.71
—
Kmart, Marshalls, Old Navy, Petco
Inwood
100,000

100.0%
19.73
—
Stop & Shop
Mt. Kisco
189,000

96.4%
16.46
$13,865
Target, Stop & Shop
New Hyde Park (leased through 2029)(3)
101,000

100.0%
20.21
—
Stop & Shop
Oceanside
16,000

100.0%
28.00
—
Party City
Queens
46,000

76.9%
40.09
—
 
Rochester
205,000

100.0%
3.08
—
Walmart

23
        
                                        

URBAN EDGE PROPERTIES
 
 
PROPERTY STATUS REPORT
As of March 31, 2019
 
 
(dollars in thousands, except per sf amounts)
 
 
 
 
 


Property
Total Square Feet (1)
Percent Leased(1)
Weighted Average ABR PSF(2)
Mortgage Debt(7)
Major Tenants
Rochester (Henrietta) (leased through 2056)(3)
165,000

100.0%
4.62
—
Kohl's
Staten Island
165,000

91.7%
24.80
—
Western Beef, Planet Fitness, Mavis Discount Tire
West Babylon
66,000

97.6%
17.83
—
Best Market, Rite Aid
Yonkers Gateway Center
437,000

98.2%
17.40
$31,310
Burlington, Marshalls, Homesense, Best Buy, DSW, PetSmart, Alamo Drafthouse Cinema
Pennsylvania:
 
 
 
 
 
Bensalem
185,000

100.0%
12.92
—
Kohl's, Ross Dress for Less, Staples, Petco
Bethlehem
153,000

94.5%
8.47
—
Giant Food, Petco
Broomall
169,000

100.0%
10.25
—
Giant Food, Planet Fitness, A.C. Moore, PetSmart
Glenolden
102,000

100.0%
12.77
—
Walmart
Lancaster
228,000

100.0%
5.07
—
Lowe's, Community Aid, Mattress Firm
Springfield (leased through 2025)(3)
41,000

100.0%
22.99
—
PetSmart
Wilkes-Barre (461 - 499 Mundy Street)
179,000

79.6%
12.56
—
Bob's Discount Furniture, Ross Dress for Less, Marshalls, Petco, Tuesday Morning
Wyomissing (leased through 2065)(3)
76,000

100.0%
16.76
—
LA Fitness, PetSmart
York
111,000

100.0%
9.21
—
Ashley Furniture, Tractor Supply Company, Aldi, Crunch Fitness
South Carolina:
 
 
 
 
 
Charleston (leased through 2063)(3)
45,000

100.0%
15.10
—
Best Buy
Virginia:
 
 
 
 
 
Norfolk (leased through 2069)(3)
114,000

100.0%
7.08
—
BJ's Wholesale Club
Tyson’s Corner (leased through 2035)(3)
38,000

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

87.3%
30.96
$130,000
Kmart, Forever 21
Montehiedra(6)
539,000

93.3%
18.55
$114,476
Kmart, The Home Depot, Marshalls, Caribbean Cinemas, Tiendas Capri
Total Shopping Centers and Malls
15,196,000

93.0%
$18.28
$1,520,232
 
WAREHOUSES:
 
 
 
 
 
East Hanover Warehouses
942,000

100.0%
5.37
$40,700
J & J Tri-State Delivery, Foremost Groups, PCS Wireless, Fidelity Paper & Supply, Meyer Distributing, Consolidated Simon Distributors, Givaudan Flavors, Reliable Tire
Total Urban Edge Properties
16,138,000

93.4%
$17.47
$1,560,932
 
(1) Percent leased is expressed as the percentage of gross leasable area subject to a lease.
(2) Weighted average annual base rent per square foot is the current base rent on an annualized basis. It includes executed leases for which rent has not commenced and excludes tenant expense reimbursements, free rent periods, 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 $20.59 per square foot.
(3) The Company is a lessee under a ground or building lease. Ground and building lease terms include exercised options and options that may be exercised in future periods. For building leases, the total square feet disclosed for the building will revert to the lessor upon lease expiration. At Salem, the ground lease is for a portion of the parking area only.
(4) Our ownership of Walnut Creek (Mt. Diablo) is 95%. Z Gallerie declared bankruptcy on March 11, 2019 and rejected this lease as of April 30, 2019.
(5) The tenant never commenced 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.
(7) Mortgage debt balances exclude unamortized debt issuance costs.


24


URBAN EDGE PROPERTIES
 
 
PROPERTY ACQUISITIONS AND DISPOSITIONS
 
For the quarter ended March 31, 2019
 
 
(dollars in thousands)
 
 
 
 
 
2019 Property Acquisitions:
 
 
 
 
 
 
 
 
 
 
None.
 
 
 
 
 
 
 
 
 
 
 
2019 Property Dispositions:
 
 
 
 
 
 
 
 
 
 
Date Disposed
Property Name
City
State
GLA
Price
3/15/2019
Chicopee
Chicopee
MA
224,000
$
18,600





25

URBAN EDGE PROPERTIES
 
 
DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS
 
As of March 31, 2019
 
 
(in thousands, except square footage data)
 
 
 
 
 
ACTIVE PROJECTS
Estimated Gross Cost(1)
 
Incurred as of 3/31/19
Target Stabilization(2)
Description and status
Bergen Town Center-
Phase I(3)
$
57,800

 
$
55,200

3Q19
Adding Burlington to the main mall and 15,000± sf adjacent to REI (Kirkland’s open in 10,000 sf); expanding Kay (open): replacing bank with Cava Grill (open) and Sticky's Finger Joint; (under construction); replacing east deck and upgrading west desk (complete)
Bergen Town Center-Phase IIC(3)
1,600

 
900

3Q19
Lands' End (open) and Chopt (executed and under construction) replacing dressbarn
Tonnelle Commons(3)
10,800

 
9,700

4Q21
102,000± sf, adding CubeSmart self-storage facility on excess land (complete)
Kearny Commons(3)
9,900

 
5,300

2Q20
Expanding by 22,000 sf to accommodate a 10,000 sf Ulta and other tenants as well as adding a freestanding Starbucks (under construction)
Briarcliff Commons
7,900

 
4,300

4Q20
Renovating facade; tenant repositioning; adding Chick-fil-A
West Branch Commons(3)
6,200

 
200

4Q19
Retenanting former Toys "R" Us box with Burlington
Amherst Commons(3)
6,000

 
100

4Q19
Retenanting former Toys "R" Us box with Burlington
Garfield Commons - Phase II(3)
5,400

 
3,100

4Q19
18,000± sf of shops (Five Below open; balance of space under construction)
The Plaza at Woodbridge(3)
4,500

 
800

2Q22
Repurposing 82,000 sf of unused basement space into self-storage (under construction)
Huntington Commons(3)
4,500

 
3,100

4Q19
Converting 11,000± sf basement space into street-front retail
Mt. Kisco Commons(3)
2,700

 
1,400

2Q20
Converting former sit-down restaurant into a Chipotle and another quick service restaurant (under construction)
Gun Hill Commons(3)
1,700

 
400

4Q19
Expanding Aldi (executed)
Woodbridge Commons(3)
1,400

 
1,100

2Q19
Furniture store (open) replacing Syms
Rockaway River Commons - Phase III(3)
800

 
800

2Q19
Expanding ShopRite by 6,000± sf at its expense
 
 
 
 
 
 
Total
$
121,200

(4) 
$
86,400

 
 
 
 
 
 
 
(1) Estimated gross cost includes the allocation of internal costs such as labor, interest and taxes.
(2) Target Stabilization reflects the first quarter in which at least 80% of the expected cash NOI from the project has commenced. A project achieving Target Stabilization is classified as Completed whether or not all costs have been expended and remains listed as a Completed project for one year in the table on page 27. The Target Stabilization date is an estimate and is subject to change resulting from uncertainties inherent in the development process and not wholly under the Company's control.
(3) Results from these properties are included in our same-property metrics for the quarter ended March 31, 2019.
(4) The estimated, unleveraged yield for total Active projects is 7% based on total estimated project costs and the incremental, unleveraged NOI directly attributable to the projects unless otherwise noted. The incremental, unleveraged NOI for Active projects excludes NOI generated outside the project scope such as the impact on future lease rollovers or on the long-term value of the property. The unleveraged yield for projects related to vacant spaces as a result of bankruptcy is based on the total cash NOI directly attributable to the project and the estimated project costs.













26

URBAN EDGE PROPERTIES
 
 
DEVELOPMENT, REDEVELOPMENT AND ANCHOR REPOSITIONING PROJECTS
 
As of March 31, 2019
 
 
(in thousands, except square footage data)
 
 
 
 
 
COMPLETED PROJECTS
Estimated Gross Cost(1)
 
Incurred as of 3/31/19
Stabilization(2)
Description and status
Bruckner Commons
$
74,600

 
$
70,200

1Q19
Renovated 3 buildings; retenanting 134,000± sf; Urban Health; Burlington, ShopRite, Boston Market, KicksUSA and T-Mobile (open), and Smashburger (executed)
The Outlets at Montehiedra
18,100

 
18,100

3Q18
Redevelopment completed
Yonkers Gateway Center(3)
10,100

 
6,900

1Q19
Repositioned vacant grocer box with Marshalls & Homesense (both are completed and open)
Bergen Town Center-Phase IIA(3)
8,500

 
8,500

2Q18
Added Best Buy
Goucher Commons - Phase II
4,300

 
4,200

4Q18
Replaced hhgregg with Sprouts
Marlton Commons(3)
3,200

 
3,200

2Q18
Added Shake Shack and honeygrow on new pad
Bergen Town Center-Phase IIIA(3)
2,300

 
2,200

4Q18
Moved Children's Place to former Payless space; retenanted 8,500 sf of 10,000 sf with Express
Lawnside Commons(3)
2,100

 
2,100

3Q18
Added Mattress Firm and T-Mobile
Governors Commons(3)
1,800

 
1,800

4Q18
Added Bubba's 33 restaurant on new pad
Bergen Town Center-Phase IIB(3)
1,400

 
1,300

1Q19
Replaced Pot Belly & Pei Wei with Ruth’s Chris Steakhouse
Cherry Hill Commons(3)
500

 
400

4Q18
Added Panda Express restaurant on new pad
Total
$
126,900

(4) 
$
118,900

 
 

FUTURE REDEVELOPMENT(5)
Location
Opportunity
Lodi
Lodi, NJ
Redevelop entire center; develop outparcel building, and add self-storage
Bergen Town Center
Paramus, NJ
Develop a mix of uses including residential, hotel, and/or office; common area improvements and enhancements to improve merchandising
The Plaza at Cherry Hill
Cherry Hill, NJ
Renovating center
The Outlets at Montehiedra
San Juan, PR
Developing 20,000± sf retail on excess land; marketing
Marlton Commons
Marlton, NJ
Develop new small shop space and renovate facade
Briarcliff Commons
Morris Plains, NJ
Retenant former ShopRite box, add pad site, common area improvements
The Shops at Bruckner
Bronx, NY
Retenant end-cap anchor space, facade renovations and common area improvements
The Plaza at Woodbridge
Woodbridge, NJ
Retenant former Toys "R" Us box with three junior anchors
Hudson Mall
Jersey City, NJ
Develop a mix of uses surrounding Hudson Mall as well as redeveloping parts of the mall to create a retail destination





(1) Estimated gross cost includes the allocation of internal costs such as labor, interest and taxes.
(2) Stabilization reflects the first quarter in which at least 80% of the expected cash NOI from the project has commenced. A project achieving Stabilization is classified as Completed whether or not all costs have been expended and remains listed as a Completed project for one year in the table above.
(3) Results from these properties are included in our same-property metrics.
(4) The estimated unleveraged yield for Completed projects is 8% based on the total estimated project costs of and the incremental unleveraged NOI expected from the projects. The incremental unleveraged NOI for Completed projects excludes NOI generated outside the project scope such as the impact on future lease rollovers or on the long-term value of the property.
(5) The Company has identified future redevelopment opportunities which are, or will soon be, in preliminary planning phases and as such, may not ultimately become active projects. Proceeding with these investments is subject to many factors outside of the Company's control, and it is possible that municipal or other approvals may delay or suspend our ability to proceed with such plans.

27


URBAN EDGE PROPERTIES
 
 
DEBT SUMMARY
 
As of March 31, 2019 and December 31, 2018
 
 
(in thousands)
 
 
 
 
 

 
March 31, 2019
 
December 31, 2018
Fixed rate debt
$
1,391,432

 
$
1,392,659

Variable rate debt
169,500

 
169,500

Total debt
$
1,560,932

 
$
1,562,159

 
 
 
 
% Fixed rate debt
89.1
%
 
89.1
%
% Variable rate debt
10.9
%
 
10.9
%
Total
100
%
 
100
%
 
 
 
 
 
 
 
 
Secured mortgage debt
$
1,560,932

 
$
1,562,159

Unsecured debt
—

 
—

Total debt
$
1,560,932

 
$
1,562,159

 
 
 
 
% Secured mortgage debt
100
%

100
%
% Unsecured mortgage debt
N/A

 
N/A

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

 
6.7 years

 
 
 
 
 
 
 
 
Total market capitalization (see page 16)
$
3,977,905

 
 
 
 
 
 
% Secured mortgage debt
39.2
%
 
 
% Unsecured debt
—
%
 
 
Total debt : Total market capitalization
39.2
%
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate on secured mortgage debt(1)
4.13
%
 
4.12
%
 
 
 
 
Note: All amounts and calculations exclude unamortized debt issuance costs on mortgages payable.
(1) Weighted average interest rate is calculated based on balances outstanding at the respective dates.

No amounts are currently outstanding on our unsecured $600 million line of credit. To the extent borrowing occurs, our borrowing rate is LIBOR plus 1.15% and our annual facility fee is 0.20%, based on our current leverage ratio as defined in the revolving credit agreement. The line of credit matures in March 2021 and has two six-month extension options.





28

URBAN EDGE PROPERTIES
 
 
MORTGAGE DEBT SUMMARY
 
As of March 31, 2019 (unaudited) and December 31, 2018
 
 
(dollars in thousands)
 
 
 
 
 
Debt Instrument
Maturity Date
Rate
March 31, 2019
December 31, 2018
Percent of Debt at March 31, 2019
Montehiedra (senior loan)
7/6/21
5.33
%
$
84,476

$
84,860

5.4
%
Montehiedra (junior loan)
7/6/21
3.00
%
30,000

30,000

1.9
%
Cherry Hill (Plaza at Cherry Hill)(4)
5/24/22
4.09
%
28,930

28,930

1.9
%
Westfield (One Lincoln Plaza)(4)
5/24/22
4.09
%
4,730

4,730

0.3
%
Woodbridge (Plaza at Woodbridge)(4)
5/25/22
4.09
%
55,340

55,340

3.5
%
Bergen Town Center - West, Paramus
4/8/23
3.56
%
300,000

300,000

19.2
%
Bronx (Shops at Bruckner)
5/1/23
3.90
%
11,432

11,582

0.7
%
Jersey City (Hudson Mall)(3)
12/1/23
5.07
%
24,149

24,326

1.6
%
Yonkers Gateway Center(5)
4/6/24
4.16
%
31,310

31,704

2.0
%
Las Catalinas
8/6/24
4.43
%
130,000

130,000

8.3
%
Jersey City (Hudson Commons)(1)
11/15/24
4.39
%
29,000

29,000

1.9
%
Watchung(1)
11/15/24
4.39
%
27,000

27,000

1.7
%
Bronx (1750-1780 Gun Hill Road)(1)
12/1/24
4.39
%
24,500

24,500

1.6
%
Brick
12/10/24
3.87
%
50,000

50,000

3.2
%
North Plainfield
12/10/25
3.99
%
25,100

25,100

1.6
%
Middletown
12/1/26
3.78
%
31,400

31,400

2.0
%
Rockaway
12/1/26
3.78
%
27,800

27,800

1.8
%
East Hanover (200 - 240 Route 10 West)
12/10/26
4.03
%
63,000

63,000

4.0
%
North Bergen (Tonnelle Ave)
4/1/27
4.18
%
100,000

100,000

6.4
%
Manchester
6/1/27
4.32
%
12,500

12,500

0.8
%
Millburn
6/1/27
3.97
%
24,000

24,000

1.5
%
Totowa
12/1/27
4.33
%
50,800

50,800

3.3
%
Woodbridge (Woodbridge Commons)
12/1/27
4.36
%
22,100

22,100

1.4
%
East Brunswick
12/6/27
4.38
%
63,000

63,000

4.0
%
East Rutherford
1/6/28
4.49
%
23,000

23,000

1.5
%
Hackensack
3/1/28
4.36
%
66,400

66,400

4.3
%
Marlton
12/1/28
3.86
%
37,400

37,400

2.4
%
East Hanover Warehouses
12/1/28
4.09
%
40,700

40,700

2.6
%
Union (2445 Springfield Ave)
12/10/28
4.01
%
45,600

45,600

2.9
%
Freeport (Freeport Commons)
12/10/29
4.07
%
43,100

43,100

2.8
%
Garfield
12/1/30
4.14
%
40,300

40,300

2.6
%
Mt Kisco(2)
11/15/34
6.40
%
13,865

13,987

0.9
%
Total mortgage debt
 
4.13
%
$
1,560,932

$
1,562,159

100
%
Unamortized debt issuance costs
 
 
(11,453
)
(11,917
)
 
Total mortgage debt, net
 
 
$
1,549,479

$
1,550,242

 
(1) 
Bears interest at one month LIBOR plus 190 bps.
(2) 
The mortgage payable balance on the loan secured by Mt Kisco includes $1.0 million of unamortized debt discount as of both March 31, 2019 and December 31, 2018, respectively. The effective interest rate including amortization of the debt discount is 7.27% as of March 31, 2019.
(3) 
The mortgage payable balance on the loan secured by Hudson Mall includes $1.2 million of unamortized debt premium as of both March 31, 2019 and December 31, 2018, respectively. The effective interest rate including amortization of the debt premium is 3.78% as of March 31, 2019.
(4) 
Bears interest at one month LIBOR plus 160 bps.
(5) 
The mortgage payable balance on the loan secured by Yonkers Gateway Center includes $0.7 million of unamortized debt premium as of both March 31, 2019 and December 31, 2018, respectively. The effective interest rate including amortization of the debt premium is 3.67% as of March 31, 2019.


29

URBAN EDGE PROPERTIES
 
 
DEBT MATURITY SCHEDULE
 
As of March 31, 2019 (unaudited) and December 31, 2018
 
 
(dollars in thousands)
 
 
 
 
 

Year
Amortization
Balloon Payments
Premium/(Discount) Amortization
Total
Weighted Average Interest rate at maturity
Percent of Debt Maturing
2019(1)
$
3,148

$
—

$
248

$
3,396

4.6%
0.2
%
2020
7,236

—

331

7,567

4.5%
0.5
%
2021
8,020

114,476

331

122,827

4.7%
7.9
%
2022
11,565

89,000

331

100,896

4.1%
6.5
%
2023
14,683

329,432

308

344,423

3.7%
22.1
%
2024
13,036

261,360

(26
)
274,370

4.3%
17.6
%
2025
9,166

23,260

(61
)
32,365

4.1%
2.1
%
2026
8,949

115,104

(61
)
123,992

3.9%
7.9
%
2027
5,900

259,123

(61
)
264,962

4.3%
17.0
%
Thereafter
15,095

271,455

(416
)
286,134

4.2%
18.2
%
Total
$
96,798

$
1,463,210

$
924

$
1,560,932

4.1%
100
%
 
Unamortized debt issuance costs
 
(11,453
)
 
 
 
Mortgage debt, net
 
$
1,549,479

 
 
(1) Remainder of 2019.


30