Urban Edge Properties

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. Reconciliations 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.

Jeff Olson Thank you, Areeba, and good morning. We delivered another strong quarter with FFO as adjusted, increasing 4% over the third quarter of last year, bringing our year-to-date growth to 7% compared to the first nine months of last year. Same property net operating income increased by 4.7% for the quarter and 5.4% year to date. Last week, we completed the $39 million acquisition of Brighton Mills, a 91,000 square foot grocery anchored shopping center located less than one mile from Harvard Business School. The property is situated in a highly desirable infill neighborhood of Boston that has experienced significant growth driven by new multifamily developments. The three-mile trade area comprises 449,000 people with average household incomes of $170,000. The purchase was funded with proceeds from the sales of Kennedy Commons, and McDade Commons, both structured as 1031 exchange transactions. Those two properties were sold at a 5.4% cap rate with a five-year forecasted NOI growth of only 0.4%. We acquired Brighton Mills for a similar cap rate in the mid-fives, but we expect annual NOI growth will exceed 3%. primarily through contractual rent increases. The property also has tremendous demand for residential and commercial development, as several parcels with the same zoning have been approved or are already under construction. It is one of the few shopping centers in the market with surface parking. Our price of approximately $5 million per acre is well below the nine to 10 million per acre land values in the immediate area, making this a textbook covered land play that delivers solid current returns and meaningful growth as we wait for the leases to expire so that we can eventually extract even more value from the land. Our Boston portfolio now includes seven properties with a value approaching $500 million, representing about 10% of our company's value. Five years ago, this region accounted for less than 2% of our value. Over the last two years, our capital recycling strategy has resulted in nearly $600 million of acquisitions of high-quality shopping centers at an average 7% cap rate. while disposing of approximately $500 million of non-core assets at a 5% cap rate, a disciplined approach that has meaningfully upgraded our portfolio quality and long-term growth rate. The acquisition market remains highly competitive, driven by more institutional capital on the equity side and tighter spreads from traditional banks on the debt side. Given our better than expected results, we are raising our 2025 FFO as adjusted guidance by a penny per share at the midpoint to a new range of $1.42 to $1.44 per share, representing 6% growth over 2024 at the midpoint. Looking ahead, we expect shopping center fundamentals to remain strong. driven by favorable supply-demand dynamics and record low vacancy rates. This strength is already evident in our year-to-date leasing spreads, which average 40% on new leases and nearly 10% on renewals. In closing, I want to recognize our exceptional team. Their dedication and focus continue to drive our success. I'm grateful for their commitment to delivering another quarter of strong results. I will now turn it over to our Chief Operating Officer, Jeff Muella.

Thanks, Jeff, and good morning, everyone. We continue to make meaningful progress across leasing and development, reinforcing the strength of our portfolio and our ability to drive long-term value creation. Leasing activity in the quarter totaled 31 deals, aggregating 347,000 square feet. This included 20 renewals, totaling 265,000 square feet at a 9% spread, and 11 new leases, totaling 82,000 square feet at an outsized 61% spread. That spread was primarily driven by new anchor leases with HomeGoods and Ross. These national retailers took spaces that were previously leased to now bankrupt companies, reinforcing what we have been saying for the past several quarters. When we have an opportunity to get boxes back in our portfolio, we are usually able to generate very strong rent spreads. Our overall same property lease rate now stands at 96.6%, a 20 basis point decline from last quarter, and our anchor lease rate is at 97.2, also a 20 basis point decline. We anticipated this decrease due to the lease rejection of our at-home store at Ledgewood Commons. The at-home vacancy alone had a 60 basis point impact on lease occupancy, but its impact on NOI is much less, as it was a single-digit rent that we expect to replace with a strong renewal spread. To put it another way, the deals with HomeGoods and Ross signed in the third quarter will contribute almost twice as much base rent as at-home did from this box in 60% of the square footage. We also executed nine new shop leases in the third quarter, totaling 27,000 square feet, achieving a same space cash spread of 42%. Our shop occupancy rate remained flat from the prior quarter at 92.5%, in part because we continue to look for ways to create new shop space where economics justify it. For example, this quarter, we split a vacant 11,000 square foot space in Milburn, New Jersey. and turned an underperforming anchor space into more desirable shop space. We've already executed a lease on about 40% of this space at a very healthy spread, and we expect a similar return on the remainder of the space. On the development front, we stabilized one project with the opening of Bob's Discount Furniture at Newington Commons, two quarters ahead of schedule, bringing our rolling 12-month total to 49 million of projects, stabilized at a blended yield of 17%. We also activated three new redevelopments this quarter with a gross investment of $8.4 million. Our active redevelopment pipeline now totals $149 million with a strong 15% projected yield. We continue to convert our signed not open pipeline, which now stands at $21.5 million and represents 7% of NOI, into rent commencements. This quarter, we commenced 5.6 million of annualized gross rents from tenants like Starbucks, Sweetgreen, Dave's Hot Chicken, and our first Tesla Service Center. Today, we are adding to the rent roll our second Trader Joe's location in Woodbridge, New Jersey, which opened for business this morning. I want to wrap up by sharing some insight into the overall leasing market and the health of our national retailers. In the past 45 days, Scott Oster and I have been out on the road, We have visited eight different national retailers in their offices to discuss overall sales trends, capital plans, store performance, and opportunities to do more together. The takeaway has been extremely positive. We heard good news about operating metrics and good news about the strength of our Northeast Corridor market versus other parts of the country. Nearly all are in clear expansion mode and are prepared to pay the rents needed to make that happen. With a shortage of good space available for these retailers in our markets, they are encouraging us to take back space that may be under-leased where we can, and we're busy studying the best ways to do this at some of our bigger properties like Bergen, Yonkers, and Cherry Hill. This has always been and continues to be a business of both short-term results and long-term value creation. We believe today's economic climate allows us to achieve both. With that, I'll turn it over to our CFO, Mark Langer.