Urban Edge Properties (NYSE:UE) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Urban Edge beat quarterly expectations: The REIT reported $0.14 in EPS versus the $0.11 consensus and revenue of $122.78 million, above the $117.86 million estimate. It raised FY 2026 adjusted FFO guidance to $1.50–$1.54 per share.
• Leasing and development support future growth: New-lease cash spreads were nearly 30% year to date, while the company cited a $22 million signed-not-open pipeline and a $155 million redevelopment pipeline. However, same-property leased occupancy fell to 96.3% and shop occupancy to 91.7% during tenant repositioning.
• Shares and dividend remain key investor considerations: UE traded near $21.59, while analysts maintained a consensus “Hold” rating with an average $23.20 price target. The company declared a quarterly dividend of $0.21 per share, representing a 3.9% yield.

Urban Edge Properties (NYSE:UE - Get Free Report) posted its quarterly earnings data on Thursday. The real estate investment trust reported $0.14 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.03, FiscalAI reports. The company had revenue of $122.78 million for the quarter, compared to analysts' expectations of $117.86 million. Urban Edge Properties had a net margin of 22.20% and a return on equity of 7.80%. Urban Edge Properties updated its FY 2026 guidance to 1.500-1.540 EPS.

Here are the key takeaways from Urban Edge Properties' conference call:

• Urban Edge reported record second-quarter FFO as adjusted of $0.40 per share, up 10% year over year, while same-property NOI increased 3.2%. Management raised full-year FFO guidance to $1.50–$1.54 per share and lifted the low end of its same-property NOI growth forecast.
• Leasing demand remained strong, with new-lease cash spreads near 30% year to date and expected to exceed 20% for the full year. The company is selectively replacing weaker tenants with higher-quality names, although this strategy has temporarily reduced shop occupancy.
• The company’s $22 million signed-not-open pipeline and $155 million redevelopment pipeline provide visible future growth, including more than $8 million of annual rent expected from new tenants at Bruckner Commons beginning in 2027.
• Retail acquisition pricing has become more competitive, compressing cap rates to roughly 5%–7% and limiting opportunities that meet return thresholds. Second-quarter earnings also benefited from approximately $0.03 per share of one-time items, including Wren Kitchens termination income and a tax refund.
• Same-property leased occupancy declined to 96.3% and shop occupancy to 91.7%, partly because of the Wren Kitchens bankruptcy and deliberate recapture of weaker tenants. Management expects shop occupancy to recover above 93% and blended occupancy to approach 97% by year-end.

Urban Edge Properties Trading Up 0.3%

Shares of UE traded up $0.06 during mid-day trading on Friday, hitting $21.59. 966,454 shares of the company's stock traded hands, compared to its average volume of 937,110. The company has a quick ratio of 2.08, a current ratio of 2.08 and a debt-to-equity ratio of 1.21. The firm has a market capitalization of $2.72 billion, a P/E ratio of 25.11 and a beta of 0.98. The business's 50-day moving average price is $22.88 and its 200-day moving average price is $21.58. Urban Edge Properties has a 1 year low of $18.46 and a 1 year high of $24.11.

Urban Edge Properties Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be paid a dividend of $0.21 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.84 annualized dividend and a dividend yield of 3.9%. Urban Edge Properties's payout ratio is 97.67%.

Analyst Upgrades and Downgrades

UE has been the topic of a number of research reports. BTIG Research reissued a "buy" rating and set a $25.00 price objective on shares of Urban Edge Properties in a report on Friday, June 12th. Weiss Ratings reiterated a "buy (b)" rating on shares of Urban Edge Properties in a research report on Friday, July 24th. Finally, UBS Group raised their price target on Urban Edge Properties from $22.00 to $24.00 and gave the stock a "neutral" rating in a research report on Thursday, July 9th. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $23.20.

Insider Buying and Selling

In related news, CEO Jeffrey S. Olson sold 19,034 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $21.62, for a total value of $411,515.08. Following the completion of the sale, the chief executive officer owned 3,665 shares of the company's stock, valued at $79,237.30. This trade represents a 83.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 2.70% of the stock is owned by insiders.

Institutional Investors Weigh In On Urban Edge Properties

Institutional investors and hedge funds have recently modified their holdings of the stock. Ieq Capital LLC raised its holdings in Urban Edge Properties by 11.2% in the fourth quarter. Ieq Capital LLC now owns 16,031 shares of the real estate investment trust's stock worth $308,000 after purchasing an additional 1,611 shares in the last quarter. Federation des caisses Desjardins du Quebec boosted its holdings in shares of Urban Edge Properties by 27.4% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 10,164 shares of the real estate investment trust's stock valued at $195,000 after buying an additional 2,184 shares in the last quarter. CIBC Bancorp USA Inc. bought a new stake in shares of Urban Edge Properties during the 3rd quarter valued at $278,000. Coldstream Capital Management Inc. purchased a new stake in shares of Urban Edge Properties in the 3rd quarter worth about $203,000. Finally, Creative Planning purchased a new stake in shares of Urban Edge Properties in the 3rd quarter worth about $375,000. 94.94% of the stock is owned by hedge funds and other institutional investors.

About Urban Edge Properties

Urban Edge Properties is a publicly traded real estate investment trust (REIT) that specializes in owning, operating and developing grocery-anchored shopping centers. The company was formed in January 2017 as a spin-off from Regency Centers Corporation, establishing an independent platform focused on urban and densely populated markets. As a fully integrated REIT, Urban Edge oversees the acquisition, financing, leasing, redevelopment and management of its retail properties.

The company's portfolio comprises predominantly open-air shopping centers anchored by national and regional supermarket operators.

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