Urban Edge Properties

Urban Edge Properties' second quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Areeba Ahmed, Investor Relations Associate. Thank you, you may begin.

Good morning and welcome to Urban Edge Properties' second quarter 2025 earnings conference call. Joining me today are Jeff Olson, Chairman and Chief Executive Officer, Jeff Mulalem, Chief Operating Officer, Mark Langer, Chief Financial Officer, Heather Olberg, General Counsel, Scott Oster, EVP and Head of Leasing, and Andrea Drazen, Chief Accounting Officer. Please note today's discussion may contain forward-looking statements about the company's views of future events and financial performance, which are subject to numerous assumptions, risks, and uncertainties, and which the company does not undertake to update. Our actual results, financial condition, and business may differ. Please refer to our filings with the SEC, which are also available on our website, for more information about the company. In our discussion today, we will refer to certain non-GAAP financial measures. Reconciliation of these measures to GAAP results are available in our earnings release and our supplemental disclosure package. At this time, it is my pleasure to introduce our Chairman and Chief Executive Officer, Jeff Olson.

Great, thank you, Areba, and good morning, everyone. We delivered great second quarter results, increasing FFO as adjusted by 12% over last year and 8% -to-date. Same property net operating income increased by .4% for the quarter and .6% -to-date. The demand for space in our shopping centers remains strong. There are few high-quality vacancies remaining in our markets, often leading to multiple bids on available space, which is driving upward pressure on rents and lease terms. Our same property occupancy increased to 96.7%, up 10 basis points from the prior quarter, and our shop occupancy rate increased to a record high of 92.5%, up 270 basis points over the prior year. Given that we are now nearly 97% leased and our properties have undergone significant improvements, including new anchors, parking lots, facades, and roofs, we anticipate a substantial decrease in future capital expenditures. The investment sales market for retail assets is thriving, driven by both public and private buyers. One of our board members recently described the current shopping center landscape as the revenge of the nerds, highlighting that retail is back in demand, driven by solid operating fundamentals, increased debt availability, and increased capital flows. Year to date, we have sold $66 million of assets at a blended cap rate of 4.9%. This includes the sale of two high-value, lower-growth properties, Kennedy Commons and McDade Commons, for $41 million, and the previously announced sale of a -square-foot building across from Bergentown Center for 25 million. Looking ahead, based on the strong results we have achieved to date, we increased our 2025 FFO as adjusted guidance by two cents per share to a new range of $1.40 to $1.44 per share, reflecting growth of 5% over 2024 at the midpoint. We remain confident in our strategy, which is anchored by five key strengths. One, a portfolio concentrated in the densely populated supply-constrained DC to Boston corridor. Two, highly visible future net operating income growth supported by our $24 million signed but not open pipeline, representing 8% of current NOI. Three, a $142 million redevelopment pipeline expected to yield a 15% return. Four, strategic capital recycling. Since October 2023, we have acquired 552 million of high-quality shopping centers at a .2% cap rate and sold $493 million of non-core low-growth assets at a .2% cap rate. And five, a resilient balance sheet with $1.5 billion in non-recourse mortgages and 42 unencumbered properties valued at nearly $2 billion. We only have 139 million or 9% of our total debt maturing through 2026. Our continued momentum and success are driven by our dedicated team. I'm grateful for their passion and commitment to execute our strategic plan while working in such a collaborative manner to achieve outstanding results. I will now turn it over to our chief operating officer, Jeff Muehle.