Urban Edge Raises 2026 FFO as Adjusted Outlook

The Tip Desk · November 8, 2026 · 4 min read

FFO as Adjusted was $0.38 a share in the third quarter as same-property NOI growth accelerated to 4.5%.

Urban Edge Properties (UE), a retail REIT concentrated in the Washington, D.C. to Boston corridor, raised the low end of its 2026 full-year FFO as Adjusted outlook to $1.52 to $1.54 a share after same-property net operating income growth accelerated to 4.5% in the third quarter.

The company said it lifted the midpoint of that range by $0.01 a share from the prior outlook of $1.50 to $1.54, following a $0.02 raise in the second quarter. It also lifted the assumed 2026 same-property NOI growth, including properties in redevelopment, to 4.00% to 4.25% from 3.25% to 3.75%.

Same-property NOI growth including redevelopment was 4.6% in the third quarter, after 3.2% in the second quarter and 2.8% in the first. The company said the third-quarter increase was primarily driven by rent commencements on new leases from its signed but not open pipeline.

FFO as Adjusted was $0.38 a share, down from a record $0.40 in the second quarter. FFO was $0.38 a share. The company said FFO declined from a year earlier because of lower non-cash revenues related to the write-off of below-market lease intangibles in the prior-year period. FFO as Adjusted benefited from higher rental revenues on new-lease commencements and growth from accretive capital recycling.

Net income attributable to common shareholders was $51.4 million, or $0.41 a share, versus $14.9 million, or $0.12 a share, a year earlier. The company said the increase was driven by a $36 million, or $0.27 a share, gain on sale of real estate related to the disposition of Briarcliff Commons.

On September 2, the company sold Briarcliff Commons in Morris Plains, N.J., for a gross price of $60.5 million. A $30 million mortgage was assumed by the buyer. The sale was structured as part of a reverse Section 1031 exchange with the acquisition of The Village at Bridgewater Commons and a lessor position at Shoppers World, allowing deferral of capital gains for income-tax purposes.

On July 17, Urban Edge acquired The Shops at West Falls Church in Falls Church, Va., for $40.4 million. The 85,000-square-foot center is anchored by a grocer, the company said, with average annual household income of about $200,000 within a three-mile radius.

The company executed 37 new leases, renewals and options totaling 463,000 square feet. New leases totaled 58,000 square feet, of which 43,000 square feet was on a same-space basis and generated an average cash spread of 26.9%. New leases, renewals and options totaled 448,000 square feet on a same-space basis at an average cash spread of 13.2%.

Consolidated portfolio leased occupancy was 96.4% at September 30, down 20 basis points from June 30. Same-property leased occupancy was 96.6%. Signed leases that had not yet rent commenced were expected to generate $21.0 million of future annual gross rent, about 7% of current annualized NOI. About $0.7 million of that amount is expected to be recognized in the fourth quarter of 2026.

During the quarter the company commenced one redevelopment project with an estimated cost of $7.2 million and stabilized two projects aggregating $9.1 million. Completed projects over the last 12 months totaled $39.6 million of investment with a blended yield of 23%. Active development and redevelopment projects totaled $151.6 million as of September 30, with estimated remaining costs of $56.6 million and an expected approximate 12% yield.

On October 14, after quarter-end, Urban Edge acquired Regency Court, a 140,000-square-foot grocery-anchored center in Boca Raton, Fla., for $90.3 million, entering a market outside its core corridor. The company said the property is anchored by Publix and Walgreens, with in-place rents significantly below market and limited remaining lease terms.

On October 9 it borrowed an additional $63 million from its unsecured line of credit to finance Regency Court, raising the outstanding balance to $138 million. Total liquidity was approximately $940.7 million as of September 30, including $86.2 million of cash and $854.5 million available under $950 million of unsecured credit facilities. Mortgages payable were $1.64 billion, all fixed rate or hedged, with a weighted average term to maturity of 3.0 years. Net debt to total market capitalization was 38%.

Revised 2026 guidance also includes net income of $0.86 to $0.88 a share, net income attributable to common shareholders of $0.82 to $0.84 a share, and FFO of $1.59 to $1.61 a share. The outlook assumes acquisitions of $185 million and dispositions of $60.5 million, reflecting activity completed year-to-date.