Executive Summary

Q4 delivered FFO as Adjusted of $0.34 per share (vs. $0.31 in Q4’23) on total revenue of $116.4M, with same‑property NOI growth of 7.4% including redevelopment as new rent commencements and recovery income accelerated .
2025 guide implies continued growth: FFO as Adjusted of $1.37–$1.42, same‑property NOI growth of 3–4%, and recurring G&A of $35–$37M; the Board raised the dividend 12% to $0.76 annualized, a potential near‑term stock catalyst alongside expected 2H25 rent commencements from the SNO pipeline .
Balance sheet is positioned conservatively: ~$808.5M liquidity, net debt/annualized Adjusted EBITDAre at 6.0x, and only ~9% of debt maturing through 2026 ($139.7M) .
Capital recycling and operations are key narratives: accretive A&D activity (Waugh Chapel buy at 6.6% cap; Union NJ Home Depot sale at 5.4% cap) and record leasing spreads (Q4 new lease cash spread 44%) underpin NOI momentum; cap‑rate compression on acquisitions pushes UE to prioritize recycling over net buying near‑term .
Watch items for 2025: credit losses assumed at 75–100 bps of gross rent (mostly bankrupt tenants), 75% of SNO revenue weighted to 2H25, and capex cadence (~$75M redevelopment spend) .

What Went Well and What Went Wrong

What Went Well
- Record pricing power and occupancy: new lease cash spreads hit 44% in Q4, same‑property leased occupancy reached 96.6%, and shop leased occupancy rose to 90.9% .
- NOI growth inflected: same‑property NOI +6.6% (incl. redevelopment +7.4%) driven by rent commencements and higher recovery income; management highlighted achieving their 3‑year earnings target one year early .
- Capital recycling/value creation: acquired The Village at Waugh Chapel ($126M at 6.6% cap; expected ~9% first‑year levered return) and sold a Union, NJ Home Depot for $71M at a 5.4% cap via 1031 exchange .
- Quote: “FFO as Adjusted increased by 8% for the year to $1.35 per share, allowing us to achieve our three‑year earnings target... one year ahead of plan” — Jeff Olson, CEO .
What Went Wrong
- Acquisition economics tightened: higher‑quality retail assets now trade below 6% caps; management signaled a greater focus on recycling over net acquisitions given tighter buy‑side yields vs. financing costs .
- Credit risk in outlook: 2025 guidance embeds 75–100 bps credit losses (70 bps from bankrupt tenants), with collections assumptions only partially offsetting .
- Non‑comparable comps: Q4’24 GAAP net income ($0.24/sh) compares to an unusually high Q4’23 (large gain on sale), masking underlying operational gains in FFO as Adjusted .

Financial Results

Quarterly P&L metrics

Metric	Q2 2024	Q3 2024	Q4 2024
Total Revenue ($USD Millions)	$106.5	$112.4	$116.4
Net Income per Diluted Share ($)	$0.26	$0.07	$0.24
FFO per Diluted Share ($)	$0.47	$0.34	$0.35
FFO as Adjusted per Diluted Share ($)	$0.32	$0.35	$0.34

Same‑property growth

Metric	Q2 2024	Q3 2024	Q4 2024
Same-Property NOI Growth (%)	3.6%	4.8%	6.6%
Same-Property NOI Growth incl. Redev. (%)	4.0%	5.1%	7.4%

Occupancy & Leasing KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Same-Property Leased Occupancy (%)	96.5%	96.3%	96.6%
Consolidated Retail Leased Occupancy (%)	96.4%	96.3%	96.8%
Retail Shop Leased Occupancy (%)	89.8%	90.4%	90.9%
New Lease Cash Rent Spread (same-space)	18.7%	14.8%	44.4%

KPI snapshot (Q4 2024)

NOI margin (property level; NOI/total property revenue): 63.2% .
Signed‑not‑open (SNO) pipeline: $25.2M future annual gross rent; expected incremental recognized gross rent: 2025 $6.1M; 2026 $13.1M; 2027 $14.1M; 2028 $14.1M .
Weighted average annual rent (retail) $20.79 psf; Net debt/Adj EBITDAre 6.0x; Liquidity $808.5M .

Balance sheet & liquidity (Q4 2024)

Total liquidity ~$808.5M (cash & restricted cash $90.6M; undrawn revolver availability ~$717.9M) .
Net debt $1.543B; net debt to total market cap 34.5% .
Debt maturity profile: ~$36.4M (2025), ~$125.0M (2026); ~9% of outstanding debt through 2026 .
Brick Commons refinancing: $50M, 7‑yr, 5.2% fixed (Nov 2024); $50M drawn on $800M revolver at year‑end .

Non‑GAAP notes (Q4)

FFO as Adjusted adds back/normalizes items such as transaction/severance, debt extinguishment, foreclosure impacts, and non‑cash adjustments (e.g., acceleration/write‑off of lease intangibles), improving period‑to‑period comparability .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Income per Diluted Share ($)	FY 2025	N/A	$0.32 – $0.37	New
FFO per Diluted Share ($)	FY 2025	N/A	$1.36 – $1.41	New
FFO as Adjusted per Diluted Share ($)	FY 2025	N/A	$1.37 – $1.42	New
Same-Property NOI Growth incl. Redev. (%)	FY 2025	N/A	3.0% – 4.0%	New
Recurring G&A ($M)	FY 2025	N/A	$35 – $37	New
Interest & Debt Expense ($M)	FY 2025	N/A	$78.5 – $80.5	New
Common Dividend (annualized, $/sh)	2025	$0.68 run‑rate (prior)	$0.76 (+12%)	Raised

Bridge highlights: From $1.48 FFO/sh in 2024 to $1.36–$1.41 in 2025E reflects removal of non‑comparable items, +6–7c from same‑property NOI incl. redevelopment, +1c from A&D net, partially offset by interest/other items .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Capital recycling & A/D	Q2: Ledgewood buy (7.9% cap) and Lodi sale (5.4% cap); Q3: Waugh Chapel buy (6.6% cap) and Union Home Depot sale (5.4% cap)	Cap‑rate compression (<6% on higher‑quality), focus on recycling; under contract to monetize Bergen parcel ($25M)	Still accretive, buy‑side tighter
Occupancy & leasing spreads	Q2/Q3 occupancy up; new lease cash spreads 18.7%/14.8%	New lease cash spread 44%; same‑property leased occupancy 96.6%	Improving pricing power
SNO pipeline timing	Q2 SNO $28.6M; Q3 $23.8M	SNO $25.2M; ~$8M gross rent recognized in 2025 (75% in 2H)	Large, back‑half weighted
Development returns	Q2 active pipeline ~15% yield; Q3 ~14%	Active redevelopment $162.6M at ~15% unlevered yield; targeting even better on some projects	Stable to slightly better
Sunrise Mall redevelopment	Limited prior disclosure	Macy’s lease termination advances plan; more details targeted in 2025	Progressing
Credit/bankruptcies	N/A	75–100 bps credit loss in 2025 guide; 70 bps tied to bankrupt tenants (Party City, Big Lots, Blink)	Managed headwind
AI/automation (cost)	N/A	Using AI/RPA to streamline G&A; recurring G&A flat at ~$36M in 2025	Emerging lever

Management Commentary

“FFO as Adjusted increased by 8% for the year to $1.35 per share, allowing us to achieve our three‑year earnings target... one year ahead of plan” — Jeff Olson, CEO .
“Our portfolio is now 80% grocery‑anchored with grocers generating average sales of $900 per square foot” — Jeff Olson, CEO .
“Initial 2025 FFO as adjusted per share guidance is $1.37 to $1.42... we assume total credit losses of 75 to 100 bps of gross rents... SNO revenue ~$8M in 2025, ~75% in 2H” — Mark Langer, CFO .
“Cap rates for acquisitions have compressed with higher quality assets now trading below 6%... we think the best way to leverage this environment is through capital recycling” — Jeff Mooallem/Jeff Olson .

Q&A Highlights

Credit/bad debt: 2025 assumes 75–100 bps credit loss, with ~70 bps from bankrupt tenants and partial offsets from collections; provides a realistic cushion in NOI outlook .
A&D pipeline/cap rates: More deal flow expected, but buy‑side caps have compressed; UE intends to pair acquisitions with dispositions to preserve spreads (recent 200 bps spread unlikely to persist) .
Sunrise Mall: Macy’s termination a “big step”; mixed‑use alternatives under evaluation; further disclosure targeted during 2025 .
Development returns vs. costs: Demand supports better leasing economics (e.g., Bruckner), though higher capital costs erode some return; still targeting ~15% unlevered yields .
Cost discipline/automation: Continued focus on vendor rebids and AI/RPA to automate workflows; recurring G&A planned flat in 2025 at ~$36M .

Estimates Context

Wall Street EPS/revenue consensus (S&P Global) for Q4 2024 was unavailable at the time of analysis due to a data access limit, so we cannot provide beat/miss versus consensus here [GetEstimates error].
REIT investors typically focus on FFO and FFO as Adjusted; UE’s Q4 FFO as Adjusted per share of $0.34 rose vs. $0.31 y/y, while Q4 FFO per share was $0.35 vs. $0.37 y/y due to non‑comparable prior‑year items .

Key Takeaways for Investors

Pricing power strengthening: 44% new‑lease cash spreads and rising shop occupancy suggest durable rent growth and embedded mark‑to‑market opportunity into 2025

Urban Edge Properties (UE)·Q4 2024 Earnings Summary