Why Urban Edge Properties Stock Is Back in Focus

Urban Edge Properties (UE) just reshaped its financing with a Second Amended and Restated Credit Agreement and US$950 million of new unsecured credit facilities, expanding borrowing capacity and extending key debt maturities.

At a share price of US$19.17, Urban Edge Properties has seen relatively muted short term moves, with a 1 day share price return of 1.11%, while its 5 year total shareholder return of 64.09% points to stronger longer term compounding. The refinancing and new unsecured credit facilities help frame recent price action as investors weigh added funding flexibility against a 1 year total shareholder return decline of 3.26% and a 3 year total shareholder return of 36.61%. Taken together, these figures suggest momentum has cooled a little recently after a stronger multi year run.

If this financing story has you thinking about what else could be on your radar, it might be a good time to check out fast growing stocks with high insider ownership.

With the shares around US$19.17, a 1 year total return decline of 3.26% and a 5 year total return of 64.09%, plus fresh US$950 million credit capacity, is there still a mispricing here or is future growth already baked in?

Most Popular Narrative: 14% Undervalued

With Urban Edge Properties at $19.17 against a widely followed fair value view of about $22.29, the narrative is leaning toward underappreciated cash flows and earnings power.

Redevelopment projects and the S&O (signed-not-open) pipeline represent visible, near-term NOI gains (8% of current NOI), while also increasing property values and supporting longer-term revenue and earnings growth.

Completion of more than 70% of the portfolio's redevelopment and major maintenance needs, coupled with the ability to negotiate more favorable lease delivery conditions and lower CapEx obligations, is expected to improve net margins and future free cash flow.

Want to see what is baked into that valuation gap? The key assumptions quietly reshape margins, earnings and the multiple investors might be willing to pay. Curious which forecasts really drive that $22.29 figure?

Result: Fair Value of $22.29 (UNDERVALUED)

However, you also need to weigh concentration in Northeast urban retail and ongoing pressure on some big box tenants, which could challenge occupancy, rents, and the bullish earnings view.

Build Your Own Urban Edge Properties Narrative

If you read this and think the assumptions miss something, or simply want to test your own view against the numbers, you can build a custom thesis in just a few minutes with Do it your way.

A great starting point for your Urban Edge Properties research is our analysis highlighting 1 key reward and 5 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.