Overview

• US retail real estate REIT's Q1 net income and FFO per share rose yr/yr

• Q1 Adjusted FFO per share increased to $0.36 from $0.35 yr/yr

• Company raised low end of 2026 FFO as Adjusted guidance

Outlook

• Urban Edge raises 2026 FFO as Adjusted guidance to $1.48-$1.52 per diluted share

• Company sees 2026 net income of $0.56-$0.60 per diluted share

• Urban Edge expects 2026 same-property NOI growth of 3.00%-3.75%, up from prior 2.75%-3.75%

Result Drivers

• RENT COMMENCEMENTS - Co said increases in net income, FFO and FFO as Adjusted were driven by rent commencements on new leases and higher net recovery revenue

• NON-RECURRING REIMBURSEMENTS - Q1 net income and FFO benefited from $8.4 mln in non-recurring reimbursements for previously incurred environmental remediation costs

• SAME-PROPERTY NOI GROWTH - Same-property NOI growth was driven by rent commencements on new leases and higher net recovery revenue, partially offset by higher uncollected rents

Company press release: ID:nBwbbTfq2a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		$0.18
Q1 Net Income		$22.65 mln
Q1 Adjusted FFO Per Share		$0.36
Q1 FFO Per Share		$0.42

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for Urban Edge Properties is $23.00, about 4% above its April 28 closing price of $22.12

• The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 53 three months ago

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