Urban Edge Properties reported third‑quarter 2025 results that included net income of $14.935 million and earnings per diluted share of $0.12, up from $9.080 million and $0.07 in the same quarter of 2024. Funds from operations totaled $51.951 million ($0.40 per share) and adjusted FFO reached $47.478 million ($0.36 per share). For comparison, Q3 2024 FFO was $43.935 million and adjusted FFO was $44.685 million.
The quarter saw 340,000 square feet of new leasing activity, a 21% cash spread, and a 92.5% occupancy rate, an increase of 210 basis points from the prior year. A non‑cash gain of $4.2 million resulted from the write‑off of below‑market lease intangibles related to tenants in bankruptcy.
Urban Edge acquired Brighton Mills Shopping Center in Allston, Massachusetts, for $39 million. The 91,000‑square‑foot center was purchased through a 1031 exchange of previously sold assets. The acquisition adds 91,000 square feet to the REIT’s portfolio and is located in a high‑density market with a 3‑mile population of 449,000 and an average household income of $174,000. The deal represents over 10% of the company’s total asset value and aligns with its capital‑recycling strategy of selling lower‑performing assets to reinvest in high‑growth, supply‑constrained urban retail markets.
Management raised its full‑year 2025 guidance. The mid‑point of adjusted FFO is now $1.43 per share, within a range of $1.42 to $1.44. Net income guidance is $0.73 to $0.75 per diluted share, and FFO guidance is $1.43 to $1.45 per share. The increases reflect continued leasing momentum driven by strong demand in supply‑constrained urban markets, record‑low vacancy rates, and the impact of the Brighton Mills acquisition.
Urban Edge’s capital‑recycling strategy has been reinforced by the sale of non‑core assets and the acquisition of high‑quality urban retail properties. The company secured a $123.6 million mortgage for its Shoppers World property, maintaining liquidity of approximately $913 million. The focus on the Boston corridor and high‑income markets positions the REIT for sustained growth in its core markets.
The results demonstrate disciplined capital recycling, robust leasing activity, and strategic acquisitions, underscoring Urban Edge’s continued expansion in high‑density urban retail markets.
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