Urban Edge Properties (NYSE: UE) today announced its results for the quarter ended March 31.
According to CEO Jeff Olson,“We had an excellent start to 2024, exceeding our plan and delivering FFO as Adjusted of $0.33 per share in the first quarter primarily due to higher NOI growth. In addition, we acquired two shopping centers in New Jersey – Heritage Square and Ledgewood Commons – strengthening our presence in this core market and providing attractive growth and redevelopment opportunities.
“These acquisitions, totaling $117 million at an approximate capitalization rate of 8%, were financed through a combination of 6.1% mortgage debt, asset sales at a blended 5% cap rate and equity issued under our ATM program. Looking ahead, based on our better-than-expected results and our recent accretive acquisitions, we have increased our 2024 FFO as Adjusted guidance by $0.03 per share at the midpoint to $1.30 per share, and we expect 2025 FFO as Adjusted will be towards the high end of the range that we outlined at our April 2023 Investor Day.”
Net income for the quarter included a $1.9-million, or $0.02 per diluted share, gain on sale of real estate, primarily related to the disposition of a single tenant property in Hazlet, NJ. FFO and FFO as Adjusted for the three months ended March 31, benefited from rent commencements on new leases and growth from our capital recycling activities.
UE shares picked up 67 cents, or 3.9%, to $17.73.