Urban Edge Posts 64% Q3 Net Income Jump on Strong Revenue, Asset Sales

TL;DR

**UE is crushing it with big gains from property sales and rental income, making it a solid buy for dividend-focused investors.**

AI Summary

Urban Edge Properties (UE) reported a significant increase in net income for the three months ended September 30, 2025, reaching $15.541 million, up from $9.467 million in the prior year, representing a 64.1% increase. Total revenue also grew to $120.126 million from $112.427 million, a 6.8% increase, primarily driven by higher rental revenue of $119.196 million. For the nine months ended September 30, 2025, net income more than doubled to $84.716 million from $43.936 million in 2024, largely due to a substantial gain on the sale of real estate, which increased to $49.695 million from $15.349 million. The company's cash and cash equivalents and restricted cash increased by $54.154 million to $144.794 million, reflecting strong operating cash flow of $131.734 million. Mortgages payable, net, increased to $1.632 billion from $1.570 billion, while the unsecured credit facility balance decreased from $50.000 million to zero. Strategic outlook includes continued real estate development and capital improvements, with $74.122 million invested in the nine months ended September 30, 2025.

Why It Matters

This strong performance, particularly the significant increase in net income and operating cash flow, signals robust operational health for Urban Edge Properties, a key player in the retail REIT sector. For investors, the substantial gain on real estate sales and increased rental revenue suggest effective asset management and a resilient property portfolio, potentially leading to sustained dividend growth. Employees and customers benefit from a financially stable company capable of investing in its properties, enhancing the value proposition of its retail centers. In a competitive market, UE's ability to generate strong cash flows and reduce unsecured debt positions it favorably against peers, demonstrating financial flexibility for future acquisitions or developments.

Risk Assessment

Risk Level: medium — While net income and revenue are up, the company's total liabilities remain substantial at $1.942 billion as of September 30, 2025. The increase in mortgages payable to $1.632 billion from $1.570 billion indicates reliance on debt financing, which could expose the company to interest rate fluctuations, despite the reduction in unsecured credit facility usage.

Analyst Insight

Investors should consider Urban Edge Properties for its strong operating performance and effective asset monetization strategy. The significant increase in net income and cash flow from operations suggests a healthy dividend outlook. Monitor future debt levels and interest rate sensitivity, but the current financial health supports a 'buy' rating for long-term income-oriented portfolios.

Financial Highlights

debt To Equity

1.40

revenue

$120,126,000

operating Margin

28.6%

total Assets

$3,328,061,000

total Debt

$1,850,000,000

net Income

$15,541,000

eps

$0.12

gross Margin

N/A

cash Position

$144,794,000

revenue Growth

+6.8%

Revenue Breakdown

Key Numbers

• $15.541M — Net Income (Q3 2025) (Increased 64.1% from $9.467M in Q3 2024)
• $120.126M — Total Revenue (Q3 2025) (Increased 6.8% from $112.427M in Q3 2024)
• $84.716M — Net Income (YTD Sept 2025) (More than doubled from $43.936M in YTD Sept 2024)
• $49.695M — Gain on Sale of Real Estate (YTD Sept 2025) (Significantly up from $15.349M in YTD Sept 2024)
• $131.734M — Net Cash Provided by Operating Activities (YTD Sept 2025) (Increased from $100.738M in YTD Sept 2024)
• $1.632B — Mortgages Payable, Net (Sept 30, 2025) (Increased from $1.570B at Dec 31, 2024)
• $0 — Unsecured Credit Facility (Sept 30, 2025) (Reduced from $50.000M at Dec 31, 2024)
• $0.12 — Diluted EPS (Q3 2025) (Increased from $0.07 in Q3 2024)
• $0.64 — Diluted EPS (YTD Sept 2025) (Increased from $0.35 in YTD Sept 2024)
• 125,813,674 — Common Shares Outstanding (Sept 30, 2025) (Slight increase from 125,450,684 at Dec 31, 2024)

Key Players & Entities

• Urban Edge Properties (company) — Registrant and REIT
• Urban Edge Properties LP (company) — Operating Partnership
• SEC (regulator) — Securities and Exchange Commission
• $15.541 million (dollar_amount) — Net income for Q3 2025
• $9.467 million (dollar_amount) — Net income for Q3 2024
• $120.126 million (dollar_amount) — Total revenue for Q3 2025
• $112.427 million (dollar_amount) — Total revenue for Q3 2024
• $84.716 million (dollar_amount) — Net income for nine months ended Sept 30, 2025
• $43.936 million (dollar_amount) — Net income for nine months ended Sept 30, 2024
• $49.695 million (dollar_amount) — Gain on sale of real estate for nine months ended Sept 30, 2025

FAQ

Risk Factors

• Interest Rate Sensitivity [medium — financial]: The company's financial performance is sensitive to changes in interest rates, as evidenced by the $19.374 million in interest and debt expense for Q3 2025. Fluctuations in interest rates can impact borrowing costs and the fair value of debt instruments.
• Debt Levels [medium — financial]: Mortgages payable, net, increased to $1.632 billion as of September 30, 2025. While the unsecured credit facility was fully repaid, the overall debt level remains substantial, posing a risk related to leverage and repayment obligations.
• Real Estate Development and Capital Improvements [medium — operational]: The company invested $74.122 million in real estate development and capital improvements for the nine months ended September 30, 2025. Such investments carry inherent risks related to project execution, cost overruns, and market demand for new or improved properties.
• Tenant Occupancy and Rental Income [medium — market]: Rental revenue is the primary source of income ($119.196 million in Q3 2025). A decline in tenant occupancy or the ability to maintain rental rates could negatively impact revenue and profitability.
• Gain on Sale of Real Estate Volatility [low — financial]: The significant increase in gain on sale of real estate to $49.695 million for the nine months ended September 30, 2025, from $15.349 million in the prior year, highlights the potential for lumpy income. Reliance on asset sales for earnings growth introduces volatility.

Industry Context

Urban Edge Properties operates in the retail real estate sector, specifically focusing on well-located retail properties in urban and dense suburban markets. The industry is characterized by evolving consumer shopping habits, the rise of e-commerce, and the need for experiential retail. Companies in this space often focus on tenant mix, property modernization, and adapting to changing demographics to maintain occupancy and rental income.

Regulatory Implications

As a publicly traded REIT, Urban Edge Properties is subject to SEC regulations and tax laws specific to Real Estate Investment Trusts. Compliance with financial reporting standards (GAAP) and maintaining REIT status are critical. Changes in tax legislation or stricter real estate regulations could impact operations and profitability.

What Investors Should Do

1. Monitor debt reduction strategies.
2. Analyze the sustainability of net income growth.
3. Evaluate capital expenditure effectiveness.
4. Assess tenant health and leasing environment.

Key Dates

• 2025-09-30: End of Q3 2025 / Nine-Month Period — Reporting period for the latest financial results, showing significant net income growth and increased operating cash flow.
• 2025-09-30: Consolidated Balance Sheet Date — Reflects increased cash reserves ($144.794 million) and higher mortgages payable ($1.632 billion) compared to year-end 2024.
• 2024-12-31: Previous Fiscal Year End — Baseline for comparison of asset, liability, and equity changes, including the reduction of unsecured credit facility from $50 million to zero.

Glossary

Real estate, net

The value of the company's land and buildings after deducting accumulated depreciation and amortization. (Represents the core depreciating assets of the company, showing a slight decrease to $2.859 billion.)

Operating lease right-of-use assets

Assets recognized under lease accounting standards representing the right to use an asset for the lease term. (Indicates obligations related to leased properties, which decreased to $60.486 million.)

Identified intangible assets

Intangible assets that can be separately identified and measured, often arising from acquisitions. (These assets, net of amortization, decreased to $87.280 million, suggesting amortization or disposals.)

Accumulated earnings

The total net income of the company that has been retained and not distributed as dividends. (Shows a healthy increase to $136.067 million, reflecting strong profitability.)

Noncontrolling interests

The portion of equity in a subsidiary that is not attributable to the parent company. (Represents ownership stakes in consolidated entities, with the operating partnership interest increasing.)

Gain on sale of real estate

Profit realized from selling real estate properties. (A significant contributor to net income for the nine-month period, increasing substantially to $49.695 million.)

Interest and debt expense

The cost incurred by the company for borrowing money. (A major expense item, totaling $19.374 million for Q3 2025, indicating the cost of servicing its debt.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Urban Edge Properties has demonstrated robust growth. Total revenue increased by 6.8% in Q3 2025 to $120.126 million, and net income saw a substantial 64.1% surge to $15.541 million. For the nine-month period, net income more than doubled, largely boosted by a significant increase in gains from real estate sales. Operating cash flow also strengthened, and the company significantly reduced its reliance on its unsecured credit facility, paying it down to zero, while increasing its cash reserves. Mortgages payable, however, have seen a modest increase, indicating ongoing financing activities.

Key Financial Figures

• $0.01 — hares of beneficial interest, par value $0.01 per share UE The New York Stock Exchang

Filing Documents

• ue-20250930.htm (10-Q) — 2064KB
• exhibit311certofceo-sox302.htm (EX-31.1) — 9KB
• exhibit312certofcfo-sox302.htm (EX-31.2) — 9KB
• exhibit313certofceo-sox302.htm (EX-31.3) — 9KB
• exhibit314certofcfo-sox302.htm (EX-31.4) — 9KB
• exhibit321certofceoandcfo-.htm (EX-32.1) — 8KB
• exhibit322certofceoandcfo-.htm (EX-32.2) — 8KB
• 0001611547-25-000076.txt ( ) — 9942KB
• ue-20250930.xsd (EX-101.SCH) — 61KB
• ue-20250930_cal.xml (EX-101.CAL) — 91KB
• ue-20250930_def.xml (EX-101.DEF) — 455KB
• ue-20250930_lab.xml (EX-101.LAB) — 765KB
• ue-20250930_pre.xml (EX-101.PRE) — 615KB
• ue-20250930_htm.xml (XML) — 1445KB

Financial Statements

Financial Statements Consolidated Financial Statements of Urban Edge Properties: Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 1 Consolidated Statements of Income and Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited) 2 Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited) 3 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (unaudited) 5 Consolidated Financial Statements of Urban Edge Properties LP: Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 7 Consolidated Statements of Income and Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited) 8 Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited) 9 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (unaudited) 11 Urban Edge Properties and Urban Edge Properties LP

Notes to Consolidated Financial Statements (unaudited) 13

Notes to Consolidated Financial Statements (unaudited) 13

Management's Discussion and Analysis of Financial Condition and Results of Operations 31

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 31

Quantitative and Qualitative Disclosures about Market Risk 41

Item 3. Quantitative and Qualitative Disclosures about Market Risk 41

Controls and Procedures 42

Item 4. Controls and Procedures 42 PART II

Legal Proceedings 42

Item 1. Legal Proceedings 42

Risk Factors 42

Item 1A. Risk Factors 42

Unregistered Sales of Equity Securities and Use of Proceeds 43

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43

Defaults Upon Senior Securities 44

Item 3. Defaults Upon Senior Securities 44

Mine Safety Disclosures 44

Item 4. Mine Safety Disclosures 44

Other Information 44

Item 5. Other Information 44

Exhibits 44

Item 6. Exhibits 44 Signatures 45 EXPLANATORY NOTE This report combines the quarterly reports on Form 10-Q for the period ended September 30, 2025 of Urban Edge Properties and Urban Edge Properties LP. Unless stated otherwise or the context otherwise requires, references to "UE", "Urban Edge" and "the REIT" mean Urban Edge Properties, a Maryland real estate investment trust ("REIT"), and references to "UELP" and the "Operating Partnership" mean Urban Edge Properties LP, a Delaware limited partnership. References to the "Company," "we," "us" and "our" mean collectively UE, UELP and those entities/subsidiaries consolidated by UE. UELP is the entity through which we conduct substantially all of our business and own, either directly or through subsidiaries, substantially all of our assets. UE is the sole general partner and also a limited partner of UELP. As the sole general partner of UELP, UE has exclusive control of UELP's day-to-day management. As of September 30, 2025, UE owned an approximate 94.9% interest in UELP. The remaining approximate 5.1% interest is owned by other limited partners. The other limited partners of UELP are members of management, our Board of Trustees and contributors of property interests acquired. Under the limited partnership agreement of UELP, unitholders may present their common units of UELP for redemption at any time (subject to restrictions agreed upon at the time of issuance of the units that may restrict such right for a period of time). Upon presentation of a common unit for redemption, UELP must redeem the unit for cash equal to the then value of a share of UE's common shares, as defined by the limited partnership agreement. In lieu of cash redemption by UELP, however, UE may elect to acquire any common units so tendered by issuing common shares of UE in exchange for the common units. If UE so elects, its common shares will be exchanged for common units on a one-for-one basis. This one-for-one exchange ratio is subject to sp

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS URBAN EDGE PROPERTIES CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share amounts) September 30, December 31, 2025 2024 ASSETS Real estate, at cost: Land $ 647,633 $ 660,198 Buildings and improvements 2,822,238 2,791,728 Construction in progress 300,372 289,057 Furniture, fixtures and equipment 12,906 11,296 Total 3,783,149 3,752,279 Accumulated depreciation and amortization ( 923,769 ) ( 886,886 ) Real estate, net 2,859,380 2,865,393 Operating lease right-of-use assets 60,486 65,491 Cash and cash equivalents 77,796 41,373 Restricted cash 66,998 49,267 Tenant and other receivables 24,226 20,672 Receivable arising from the straight-lining of rents 62,933 61,164 Identified intangible assets, net of accumulated amortization of $ 66,760 and $ 65,027 , respectively 87,280 109,827 Deferred leasing costs, net of accumulated amortization of $ 21,871 and $ 22,488 , respectively 30,977 27,799 Prepaid expenses and other assets 57,985 70,554 Total assets $ 3,328,061 $ 3,311,540 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net $ 1,632,163 $ 1,569,753 Unsecured credit facility — 50,000 Operating lease liabilities 57,822 62,585 Accounts payable, accrued expenses and other liabilities 88,789 89,982 Identified intangible liabilities, net of accumulated amortization of $ 57,487 and $ 50,275 , respectively 163,686 177,496 Total liabilities 1,942,460 1,949,816 Commitments and contingencies ( Note 10 ) Shareholders' equity: Common shares: $ 0.01 par value; 500,000,000 shares authorized and 125,813,674 and 125,450,684 shares issued and outstanding, respectively 1,256 1,253 Additional paid-in capital 1,160,653 1,149,981 Accumulated other comprehensive (loss) income ( 738 ) 177 Accumulated earnings 136,067 126,670 Noncontrolling interests: Operating partnership 69,794 65,069 Consolidated subsidiaries 18,569 18,574 Total equity 1,385,601 1,361,724 Total liabilities and equ

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