3Q26
Filed Oct 28, 2026Urban Edge Properties Reports Third Quarter 2026 Results -- Raises Outlook for Full-Year 2026 FFO as Adjusted
Same-property NOI grew 4.5%, FFO as Adjusted per diluted share increased to $0.38 from $0.36, and the Company raised its full-year FFO and FFO as Adjusted guidance ranges. Quarterly FFO declined from the prior-year period because of lower non-cash revenues related to the prior-year write-off of below-market lease intangibles.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Net income per diluted share | $0.57 - $0.61 | $ 0.73 for the nine months ended September 30, 2026 | n/a |
| Net income attributable to common shareholders per diluted share | $0.55 - $0.58 | $ 0.73 for the nine months ended September 30, 2026 | n/a |
| FFO per diluted share | $1.57 - $1.60 | $ 1.21 for the nine months ended September 30, 2026 | n/a |
| FFO as Adjusted per diluted share | $1.50 - $1.54 | $ 1.14 for the nine months ended September 30, 2026 | n/a |
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $119.6M | – | – |
| Rental revenue, three months ended September 30, 2026GAAP | $119.2M | – | – |
| Other income, three months ended September 30, 2026GAAP | $307K | – | – |
| Total expenses, three months ended September 30, 2026GAAP | $81.48M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $32.91M | – | – |
| Real estate taxes, three months ended September 30, 2026GAAP | $16.01M | – | – |
| Property operating expense, three months ended September 30, 2026GAAP | $20.61M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $8.78M | – | – |
| Lease expense, three months ended September 30, 2026GAAP | $3.17M | – | – |
| Gain on sale of real estate, three months ended September 30, 2026GAAP | $36.01M | – | – |
| Interest income, three months ended September 30, 2026GAAP | $549K | – | – |
| Interest and debt expense, three months ended September 30, 2026GAAP | $19.96M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $54.67M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $872K | – | – |
| Net income, three months ended September 30, 2026GAAP | $53.80M | – | – |
| Net income attributable to common shareholders, three months ended September 30, 2026GAAP | $51.44M | – | – |
| Net income per diluted share, three months ended September 30, 2026GAAP | $ 0.41 | – | – |
| FFO applicable to diluted common shareholders, three months ended September 30, 2026non-GAAP | $50.44M | – | – |
| FFO per diluted common share, three months ended September 30, 2026non-GAAP | $ 0.38 | – | – |
| FFO as Adjusted applicable to diluted common shareholders, three months ended September 30, 2026non-GAAP | $50.50M | – | – |
| FFO as Adjusted per diluted common share, three months ended September 30, 2026non-GAAP | $ 0.38 | – | 6% |
| NOI, three months ended September 30, 2026non-GAAP | $77.46M | – | – |
| Same-property NOI, three months ended September 30, 2026non-GAAP | $70.88M | – | 4.5 % |
| Same-property NOI including properties in redevelopment, three months ended September 30, 2026non-GAAP | $74.61M | – | 4.6 % |
| EBITDAre, three months ended September 30, 2026non-GAAP | $71.53M | – | – |
| Adjusted EBITDAre, three months ended September 30, 2026non-GAAP | $71.60M | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | $375.0M | – | – |
| Net income attributable to common shareholders, nine months ended September 30, 2026GAAP | $92.01M | – | – |
| Net income per diluted share, nine months ended September 30, 2026GAAP | $ 0.73 | – | – |
| FFO applicable to diluted common shareholders, nine months ended September 30, 2026non-GAAP | $159.5M | – | – |
| FFO per diluted common share, nine months ended September 30, 2026non-GAAP | $ 1.21 | – | – |
| FFO as Adjusted applicable to diluted common shareholders, nine months ended September 30, 2026non-GAAP | $150.3M | – | – |
| FFO as Adjusted per diluted common share, nine months ended September 30, 2026non-GAAP | $ 1.14 | – | – |
| Same-property NOI, nine months ended September 30, 2026non-GAAP | $197.0M | – | 3.5 % |
| Same-property NOI including properties in redevelopment, nine months ended September 30, 2026non-GAAP | $217.2M | – | 3.6 % |
| Consolidated portfolio leased occupancy as of September 30, 2026other | 96.4% | decrease of 20 basis points | 10 basis points |
| Same-property portfolio leased occupancy as of September 30, 2026other | 96.6% | increase of 20 basis points | flat |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full-year 2026 outlook
- NoteNet income of $0.86 to $0.88 per diluted share
- NoteNet income attributable to common shareholders of $0.82 to $0.84 per diluted share
- NoteFFO of $1.59 to $1.61 per diluted share
- NoteFFO as Adjusted of $1.52 to $1.54 per diluted share
- NoteSame-property NOI growth, including properties in redevelopment, of 4.00% to 4.25%
- NoteRecurring G&A expenses ranging from $35.5 million to $36.5 million
- NoteInterest and debt expense ranging from $79.0 million to $80.0 million
- NoteAcquisitions of $185 million and dispositions of $60.5 million
What drove it
- Same-property NOI growth was primarily driven by rent commencements on new leases from the signed but not open pipeline.
- New leases totaling 43,000 sf on a same-space basis generated an average cash spread of 26.9%.
- New leases, renewals and options totaling 448,000 sf on a same-space basis generated an average cash spread of 13.2%.
- Signed leases that had not yet rent commenced were expected to generate an additional $21.0 million of future annual gross rent, including approximately $0.7 million expected in the fourth quarter of 2026.
- The Company acquired The Shops at West Falls Church for a gross purchase price of $40.4 million on July 17, 2026, and Regency Court for a gross purchase price of $90.3 million on October 14, 2026.
- The Company sold Briarcliff Commons for a gross sales price of $60.5 million on September 2, 2026.
Concerns
- Quarterly FFO per diluted common share declined to $ 0.38 from $ 0.40, driven by lower non-cash revenues related to the write-off of below-market lease intangibles in the prior-year period.
- Consolidated portfolio leased occupancy decreased by 20 basis points compared to June 30, 2026.
- Interest and debt expense guidance was raised to $79.0 million to $80.0 million from $78.0 million to $79.0 million.
- The Company had $151.6 million of active development and redevelopment projects underway, with estimated remaining costs to complete of $56.6 million.
What to watch
- Rent commencement from the $21.0 million future annual gross-rent pipeline and the approximately $0.7 million expected in the fourth quarter of 2026.
- Execution of the 4.00% to 4.25% same-property NOI growth assumption, including properties in redevelopment.
- Lease-up, contractual rent increases and mark-to-market opportunities at The Shops at West Falls Church.
- The contribution and integration of Regency Court following the October 14, 2026 acquisition.
- Progress and returns on the active development and redevelopment pipeline, which is expected to generate an approximate 12% yield.
- Unsecured line of credit borrowings following the Regency Court financing.
Balance sheet and cash flow
- Total liquidity of approximately $940.7 million, consisting of $86.2 million of cash on hand and $854.5 million available under the Company's $950 million of unsecured credit facilities, net of undrawn letters of credit.
- Cash and cash equivalents were $ 62,644 and restricted cash was $ 23,531 as of September 30, 2026.
- Mortgages payable, net were $ 1,629,867 as of September 30, 2026.
- $75 million was drawn on the $700 million unsecured line of credit as of September 30, 2026.
- No borrowings were outstanding on the $250 million of delayed-draw term loans.
- Net debt to total market capitalization was 38%.
- During the quarter, the Company borrowed $40 million from its unsecured line of credit and repaid $20 million using proceeds from the sale of Briarcliff Commons.
- On October 9, 2026, the Company borrowed an additional $63 million from its unsecured line of credit, increasing the outstanding balance to $138 million.
- Operating cash flow and free cash flow were not reported.
Analysis
Urban Edge reported stable quarterly revenue and improved core property performance. Total revenue was $ 119,556 compared with $ 120,126 in the prior-year quarter, while same-property NOI grew 4.5% and same-property NOI including redevelopment grew 4.6%. Management attributed the NOI gains to rent commencements from its signed but not open pipeline. Consolidated portfolio leased occupancy was 96.4%, up 10 basis points from September 30, 2025 but down 20 basis points from June 30, 2026, while same-property occupancy was 96.6%, flat year over year and up 20 basis points sequentially.
Quarterly GAAP net income attributable to common shareholders rose to $ 51,440 from $ 14,935, driven by the $36 million gain on sale of real estate associated with Briarcliff Commons. FFO applicable to diluted common shareholders declined to $ 50,435 from $ 51,951 because the prior-year quarter included higher non-cash revenues related to the write-off of below-market lease intangibles. FFO as Adjusted rose to $ 50,501 from $ 47,478, and FFO as Adjusted per diluted common share rose to $ 0.38 from $ 0.36.
Leasing economics and the future rent pipeline are central operating supports. The Company executed 37 new leases, renewals and options totaling 463,000 sf. New leases on a same-space basis generated an average cash spread of 26.9%, while all new leases, renewals and options on a same-space basis generated an average cash spread of 13.2%. Signed leases not yet rent commenced were expected to generate an additional $21.0 million of future annual gross rent, with approximately $0.7 million expected to be recognized in the fourth quarter of 2026.
Capital recycling continued through the $60.5 million sale of Briarcliff Commons and the $40.4 million purchase of The Shops at West Falls Church. The Company subsequently acquired Regency Court for $90.3 million. Liquidity was approximately $940.7 million at September 30, 2026, but line-of-credit borrowings increased after quarter-end to finance Regency Court. The Company also had $151.6 million of active development and redevelopment projects underway, with $56.6 million of estimated remaining costs to complete.
The Company raised full-year 2026 FFO guidance to $1.59 to $1.61 per diluted share from $1.57 to $1.60 and maintained the high end of its FFO as Adjusted range while raising its low end, to $1.52 to $1.54 from $1.50 to $1.54. The revised outlook also raises the same-property NOI growth assumption including redevelopment to 4.00% to 4.25%. The guide incorporates $185 million of acquisitions and $60.5 million of dispositions, while recurring G&A and interest and debt expense assumptions were increased at the low end.
Management, verbatim
Our third quarter results reflect the strength of our operating platform and the progress of our capital recycling strategy. Same-property NOI grew 4.5% and new lease cash spreads were 27%, demonstrating the embedded value in our portfolio. FFO as Adjusted of $0.38 per share grew 6% over the prior year.
Jeff Olson, Chairman and CEO
Given our year-to-date performance, we have raised the midpoint of our full-year FFO as Adjusted guidance by $0.01 per share.
Jeff Olson, Chairman and CEO
Not in the filing
stated, not guessed- GAAP operating income was not reported.
- Gross margin was not reported.
- Segment revenue was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Dividend information was not reported.
- Share repurchase information was not reported.
- Full-year 2026 actual results were not reported; therefore, prior full-year guidance cannot be assessed against an actual reported full-year result.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.