Urban Edge Q3 profit rises on higher rental revenues, lifts outlook

Overview

• US retail real estate REIT's Q3 FFO as Adjusted per share rose 6% yr/yr

• Net income for Q3 increased, driven by gain on sale of real estate

• Company raised full-year 2026 FFO as Adjusted guidance

Outlook

• Urban Edge raises 2026 FFO as Adjusted guidance to $1.52-$1.54 per diluted share

• Company now expects 2026 FFO of $1.59-$1.61 per diluted share

• Urban Edge forecasts 2026 same-property NOI growth, including redevelopment, of 4.00%-4.25%

Result Drivers

• RENT COMMENCEMENTS AND CAPITAL RECYCLING - Co said higher rental revenues from new leases and accretive capital recycling drove FFO as Adjusted growth

• SAME-PROPERTY NOI - Co attributed 4.5% same-property NOI growth to rent commencements on new leases

• PORTFOLIO UPGRADES - Co said acquisitions and dispositions contributed to portfolio improvement

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for Urban Edge Properties is $24.00, about 24.7% above its October 27 closing price of $19.25

• The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 45 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)