Urban Edge 2025 Q2 Earnings Strong Performance as Net Income Surges 89.8%

Urban Edge Properties reported a substantial growth in fiscal 2025 Q2 earnings, with net income reaching $60.79 million, marking an impressive 89.8% increase from the previous year. The company exceeded analyst expectations with earnings per share (EPS) rising to $0.46, significantly surpassing projections. Following this strong performance, Urban Edge has adjusted its full-year guidance upward, reflecting confidence in sustained growth driven by strategic initiatives and lease commencements.

Revenue

Urban Edge's total revenue increased by 7.1% to $113.91 million in 2025 Q2, compared to $106.36 million in the same quarter of 2024.

Earnings/Net Income

Urban Edge's EPS rose by 76.9% to $0.46 in 2025 Q2, compared to $0.26 in 2024 Q2, indicating continued earnings growth. This surge in EPS signifies a robust financial performance for Urban Edge.

Price Action

The stock price of Urban Edge experienced a decline of 4.11% on the latest trading day. However, it has edged up 1.16% over the most recent full trading week and climbed 6.20% month-to-date.

Post-Earnings Price Action Review

Buying Urban Edge shares after quarters with revenue increases and holding for 30 days has delivered strong returns over the past three years. This strategy resulted in an overall return of 181.60%, outperforming the benchmark return of 87.61% by a margin of 93.99%. With a compound annual growth rate (CAGR) of 23.17% and no maximum drawdown, the strategy showed strong performance in both returns and risk management.

CEO Commentary

Urban Edge Properties delivered robust operating performance this quarter, with FFO as Adjusted reaching a record $0.36 per share and same-property NOI, including redevelopment, growing over 7%. CEO Jeff Olson highlighted a year-to-date FFO as Adjusted of $0.71 per share, reflecting an 8% increase from the previous year, alongside a record shop occupancy of 92.5%. The company successfully advanced its capital recycling program by selling two non-core properties for $41 million, focusing on higher-growth opportunities to enhance portfolio quality and performance.

Guidance

Urban Edge Properties has raised its full-year guidance for FFO as Adjusted by $0.025 per share to a new range of $1.40 to $1.44 per share. The company anticipates continued growth driven by recent lease commencements and ongoing capital recycling initiatives, positioning itself for a favorable outlook in the second half of 2025.

Additional News

Urban Edge Properties recently sold two high-value, lower-growth properties, Kennedy Commons and MacDade Commons, for an aggregate price of $41.2 million in June. These sales are part of a strategic shift towards focusing on higher-growth opportunities. Additionally, the company paid off the mortgage loan secured by the Plaza at Woodbridge, which had an outstanding balance of $50.2 million, with an effective interest rate of 6.4%. Urban Edge continues to leverage its substantial liquidity of approximately $796 million, including $118 million of cash on hand, to fuel ongoing redevelopment initiatives expected to generate an approximate 15% yield.