QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Urban Edge Properties) | ||||
(Urban Edge Properties LP) | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||
(Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number including area code: | |||
Securities registered pursuant to Section 12(b) of the Act: | |||
Title of class of registered securities | Trading symbol | Name of exchange on which registered | |
x | Accelerated Filer o | Non-Accelerated Filer o | Smaller Reporting Company | Emerging Growth Company |
Large Accelerated Filer o | Accelerated Filer o | x | Smaller Reporting Company | Emerging Growth Company |
Financial Statements | ||||
Consolidated Financial Statements of Urban Edge Properties: | ||||
Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019 (unaudited) | ||||
Consolidated Statements of Income for the Three Months Ended March 31, 2020 and 2019 (unaudited) | ||||
Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2020 and 2019 (unaudited) | ||||
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019 (unaudited) | ||||
Consolidated Financial Statements of Urban Edge Properties LP: | ||||
Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019 (unaudited) | ||||
Consolidated Statements of Income for the Three Months Ended March 31, 2020 and 2019 (unaudited) | ||||
Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2020 and 2019 (unaudited) | ||||
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019 (unaudited) | ||||
Urban Edge Properties and Urban Edge Properties LP | ||||
Notes to Consolidated Financial Statements (unaudited) | ||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | |||
Item 4. | Controls and Procedures | |||
PART II | ||||
Item 1. | Legal Proceedings | |||
Item 1A. | Risk Factors | |||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||
Item 3. | Defaults Upon Senior Securities | |||
Item 4. | Mine Safety Disclosures | |||
Item 5. | Other Information | |||
Item 6. | Exhibits | |||
Signatures | ||||
• | enhances investors’ understanding of UE and UELP by enabling investors to view the business as a whole in the same manner as management views and operates the business; |
• | eliminates duplicative disclosure and provides a more streamlined and readable presentation because a substantial portion of the disclosure applies to both UE and UELP; and |
• | creates time and cost efficiencies throughout the preparation of one combined report instead of two separate reports. |
March 31, | December 31, | ||||||
2020 | 2019 | ||||||
ASSETS | |||||||
Real estate, at cost: | |||||||
Land | $ | $ | |||||
Buildings and improvements | |||||||
Construction in progress | |||||||
Furniture, fixtures and equipment | |||||||
Total | |||||||
Accumulated depreciation and amortization | ( | ) | ( | ) | |||
Real estate, net | |||||||
Right-of-use assets | |||||||
Cash and cash equivalents | |||||||
Restricted cash | |||||||
Tenant and other receivables | |||||||
Receivable arising from the straight-lining of rents | |||||||
Identified intangible assets, net of accumulated amortization of $32,359 and $30,942, respectively | |||||||
Deferred leasing costs, net of accumulated amortization of $16,291 and $16,560, respectively | |||||||
Deferred financing costs, net of accumulated amortization of $4,008 and $3,765, respectively | |||||||
Prepaid expenses and other assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Mortgages payable, net | $ | $ | |||||
Unsecured credit facility borrowings | |||||||
Lease liabilities | |||||||
Accounts payable, accrued expenses and other liabilities | |||||||
Identified intangible liabilities, net of accumulated amortization of $65,074 and $62,610, respectively | |||||||
Total liabilities | |||||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Common shares: $0.01 par value; 500,000,000 shares authorized and 117,956,031 and 121,370,125 shares issued and outstanding, respectively | |||||||
Additional paid-in capital | |||||||
Accumulated deficit | ( | ) | ( | ) | |||
Noncontrolling interests: | |||||||
Operating partnership | |||||||
Consolidated subsidiaries | |||||||
Total equity | |||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
REVENUE | |||||||
Rental revenue | $ | $ | |||||
Management and development fees | |||||||
Other income | |||||||
Total revenue | |||||||
EXPENSES | |||||||
Depreciation and amortization | |||||||
Real estate taxes | |||||||
Property operating | |||||||
General and administrative | |||||||
Casualty and impairment loss | |||||||
Lease expense | |||||||
Total expenses | |||||||
Gain on sale of real estate | |||||||
Interest income | |||||||
Interest and debt expense | ( | ) | ( | ) | |||
Income before income taxes | |||||||
Income tax expense | ( | ) | ( | ) | |||
Net income | |||||||
Less net income attributable to noncontrolling interests in: | |||||||
Operating partnership | ( | ) | ( | ) | |||
Consolidated subsidiaries | |||||||
Net income attributable to common shareholders | $ | $ | |||||
Earnings per common share - Basic: | $ | $ | |||||
Earnings per common share - Diluted: | $ | $ | |||||
Weighted average shares outstanding - Basic | |||||||
Weighted average shares outstanding - Diluted |
Common Shares | Noncontrolling Interests (“NCI”) | |||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Earnings (Deficit) | Operating Partnership | Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||
Balance, December 31, 2018 | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||
Net income attributable to common shareholders | — | — | — | — | — | |||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||||||||
Impact of ASC 842 adoption | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||
Limited partnership interests: | ||||||||||||||||||||||||||
Units redeemed for common shares | — | — | — | |||||||||||||||||||||||
Reallocation of noncontrolling interests | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||
Common shares issued | ( | ) | — | — | ||||||||||||||||||||||
Dividends to common shareholders ($0.22 per share) | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||
Distributions to redeemable NCI ($0.22 per unit) | — | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||
Share-based compensation expense | — | — | — | — | ||||||||||||||||||||||
Share-based awards retained for taxes | ( | ) | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||
Balance, March 31, 2019 | $ | $ | $ | ( | ) | $ | $ | $ |
Common Shares | Noncontrolling Interests (“NCI”) | |||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Earnings (Deficit) | Operating Partnership | Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||
Net income attributable to common shareholders | — | — | — | — | — | |||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||||||||
Limited partnership interests: | ||||||||||||||||||||||||||
Units redeemed for common shares | — | — | — | |||||||||||||||||||||||
Reallocation of noncontrolling interests | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||
Common shares issued | ( | ) | — | — | ||||||||||||||||||||||
Repurchase of common shares | ( | ) | ( | ) | ( | ) | — | — | — | ( | ) | |||||||||||||||
Dividends to common shareholders ($0.22 per share) | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||
Distributions to redeemable NCI ($0.22 per unit) | — | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||
Share-based compensation expense | — | — | — | — | ||||||||||||||||||||||
Share-based awards retained for taxes | ( | ) | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||
Balance, March 31, 2020 | $ | $ | $ | ( | ) | $ | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Casualty and impairment loss | |||||||
Gain on sale of real estate | ( | ) | ( | ) | |||
Amortization of deferred financing costs | |||||||
Amortization of below market leases, net | ( | ) | ( | ) | |||
Noncash lease expense | |||||||
Straight-lining of rent | ( | ) | ( | ) | |||
Share-based compensation expense | |||||||
Credit losses related to operating lease receivables | |||||||
Change in operating assets and liabilities: | |||||||
Tenant and other receivables | ( | ) | |||||
Deferred leasing costs | ( | ) | ( | ) | |||
Prepaid expenses and other assets | ( | ) | |||||
Lease liabilities | ( | ) | ( | ) | |||
Accounts payable, accrued expenses and other liabilities | ( | ) | |||||
Net cash provided by operating activities | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Real estate development and capital improvements | ( | ) | ( | ) | |||
Acquisitions of real estate | ( | ) | |||||
Proceeds from sale of operating properties | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Debt repayments | ( | ) | ( | ) | |||
Dividends to common shareholders | ( | ) | ( | ) | |||
Distributions to redeemable noncontrolling interests | ( | ) | ( | ) | |||
Taxes withheld for vested restricted shares | ( | ) | ( | ) | |||
Borrowings under unsecured credit facility | |||||||
Repurchase of common shares | ( | ) | |||||
Proceeds related to the issuance of common shares | |||||||
Net cash provided by (used in) financing activities | ( | ) | |||||
Net increase (decrease) in cash and cash equivalents and restricted cash | ( | ) | |||||
Cash and cash equivalents and restricted cash at beginning of period | |||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
Cash payments for interest, net of amounts capitalized of $125 and $565, respectively | $ | $ | |||||
Cash payments for income taxes | |||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||
Accrued capital expenditures included in accounts payable and accrued expenses | |||||||
Write-off of fully depreciated and impaired assets | |||||||
Acquisition of real estate through the assumption of debt | |||||||
Accrued common share repurchase | |||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||||||
Cash and cash equivalents at beginning of period | $ | $ | |||||
Restricted cash at beginning of period | |||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | $ | |||||
Cash and cash equivalents at end of period | $ | $ | |||||
Restricted cash at end of period | |||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ |
March 31, | December 31, | ||||||
2020 | 2019 | ||||||
ASSETS | |||||||
Real estate, at cost: | |||||||
Land | $ | $ | |||||
Buildings and improvements | |||||||
Construction in progress | |||||||
Furniture, fixtures and equipment | |||||||
Total | |||||||
Accumulated depreciation and amortization | ( | ) | ( | ) | |||
Real estate, net | |||||||
Right-of-use assets | |||||||
Cash and cash equivalents | |||||||
Restricted cash | |||||||
Tenant and other receivables | |||||||
Receivable arising from the straight-lining of rents | |||||||
Identified intangible assets, net of accumulated amortization of $32,359 and $30,942, respectively | |||||||
Deferred leasing costs, net of accumulated amortization of $16,291 and $16,560, respectively | |||||||
Deferred financing costs, net of accumulated amortization of $4,008 and $3,765, respectively | |||||||
Prepaid expenses and other assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Mortgages payable, net | $ | $ | |||||
Unsecured credit facility borrowings | |||||||
Lease liabilities | |||||||
Accounts payable, accrued expenses and other liabilities | |||||||
Identified intangible liabilities, net of accumulated amortization of $65,074 and $62,610, respectively | |||||||
Total liabilities | |||||||
Commitments and contingencies | |||||||
Equity: | |||||||
Partners’ capital: | |||||||
General partner: 117,956,031 and 121,370,125 units outstanding, respectively | |||||||
Limited partners: 4,971,944 and 5,833,318 units outstanding, respectively | |||||||
Accumulated deficit | ( | ) | ( | ) | |||
Total partners’ capital | |||||||
Noncontrolling interest in consolidated subsidiaries | |||||||
Total equity | |||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
REVENUE | |||||||
Rental revenue | $ | $ | |||||
Management and development fees | |||||||
Other income | |||||||
Total revenue | |||||||
EXPENSES | |||||||
Depreciation and amortization | |||||||
Real estate taxes | |||||||
Property operating | |||||||
General and administrative | |||||||
Casualty and impairment loss | |||||||
Lease expense | |||||||
Total expenses | |||||||
Gain on sale of real estate | |||||||
Interest income | |||||||
Interest and debt expense | ( | ) | ( | ) | |||
Income before income taxes | |||||||
Income tax expense | ( | ) | ( | ) | |||
Net income | |||||||
Less net income attributable to NCI in consolidated subsidiaries | |||||||
Net income attributable to unitholders | $ | $ | |||||
Earnings per unit - Basic: | $ | $ | |||||
Earnings per unit - Diluted: | $ | $ | |||||
Weighted average units outstanding - Basic | |||||||
Weighted average units outstanding - Diluted |
Total Shares | General Partner | Total Units | Limited Partners(1) | Accumulated Earnings (Deficit) | NCI in Consolidated Subsidiaries | Total Equity | |||||||||||||||||||
Balance, December 31, 2018 | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||
Net income attributable to unitholders | — | — | — | — | — | ||||||||||||||||||||
Impact of ASC 842 adoption | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | — | — | ( | ) | — | ||||||||||||||||||||
Equity redemption of OP units | ( | ) | — | — | — | ||||||||||||||||||||
Limited partnership units issued, net | — | — | — | — | — | ||||||||||||||||||||
Reallocation of noncontrolling interests | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||
Distributions to Partners ($0.22 per unit) | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||
Share-based compensation expense | — | — | — | ||||||||||||||||||||||
Share-based awards retained for taxes | ( | ) | ( | ) | — | — | — | — | ( | ) | |||||||||||||||
Balance, March 31, 2019 | $ | $ | $ | ( | ) | $ | $ |
Total Shares | General Partner | Total Units | Limited Partners(2) | Accumulated Earnings (Deficit) | NCI in Consolidated Subsidiaries | Total Equity | |||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||
Net income attributable to unitholders | — | — | — | — | — | ||||||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | — | ( | ) | — | |||||||||||||||||||||
Equity redemption of OP units | ( | ) | — | — | — | ||||||||||||||||||||
Repurchase of common shares | ( | ) | ( | ) | — | — | — | — | ( | ) | |||||||||||||||
Limited partnership units issued, net | — | — | — | — | — | — | |||||||||||||||||||
Reallocation of noncontrolling interests | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||
Distributions to Partners ($0.22 per unit) | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||
Share-based awards retained for taxes | ( | ) | ( | ) | — | — | — | — | ( | ) | |||||||||||||||
Balance, March 31, 2020 | $ | $ | $ | ( | ) | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Casualty and impairment loss | |||||||
Gain on sale of real estate | ( | ) | ( | ) | |||
Amortization of deferred financing costs | |||||||
Amortization of below market leases, net | ( | ) | ( | ) | |||
Noncash lease expense | |||||||
Straight-lining of rent | ( | ) | ( | ) | |||
Share-based compensation expense | |||||||
Credit losses related to operating lease receivables | |||||||
Change in operating assets and liabilities: | |||||||
Tenant and other receivables | ( | ) | |||||
Deferred leasing costs | ( | ) | ( | ) | |||
Prepaid expenses and other assets | ( | ) | |||||
Lease liabilities | ( | ) | ( | ) | |||
Accounts payable, accrued expenses and other liabilities | ( | ) | |||||
Net cash provided by operating activities | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Real estate development and capital improvements | ( | ) | ( | ) | |||
Acquisitions of real estate | ( | ) | |||||
Proceeds from sale of operating properties | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Debt repayments | ( | ) | ( | ) | |||
Distributions to partners | ( | ) | ( | ) | |||
Taxes withheld for vested restricted units | ( | ) | ( | ) | |||
Borrowings under unsecured credit facility | |||||||
Repurchase of common shares | ( | ) | |||||
Proceeds related to the issuance of common shares | |||||||
Net cash provided by (used in) financing activities | ( | ) | |||||
Net increase (decrease) in cash and cash equivalents and restricted cash | ( | ) | |||||
Cash and cash equivalents and restricted cash at beginning of period | |||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
Cash payments for interest, net of amounts capitalized of $125 and $565, respectively | $ | $ | |||||
Cash payments for income taxes | |||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||
Accrued capital expenditures included in accounts payable and accrued expenses | |||||||
Write-off of fully depreciated and impaired assets | |||||||
Acquisition of real estate through the assumption of debt | |||||||
Accrued common share repurchase | |||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||||||
Cash and cash equivalents at beginning of period | $ | $ | |||||
Restricted cash at beginning of period | |||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | $ | |||||
Cash and cash equivalents at end of period | $ | $ | |||||
Restricted cash at end of period | |||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ |
1. | ORGANIZATION |
2. | BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION |
4. | ACQUISITIONS AND DISPOSITIONS |
Date Purchased | Property Name | City | State | Square Feet | Purchase Price | |||||||||
(in thousands) | ||||||||||||||
February 12, 2020 | Kingswood Center | Brooklyn | NY | $ | ||||||||||
February 12, 2020 | Kingswood Crossing | Brooklyn | NY | |||||||||||
2020 Total | $ | (1) |
Property Name | Land | Buildings and improvements | Identified intangible assets(1) | Identified intangible liabilities(1) | Debt premium | Total Purchase Price | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Kingswood Center | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
Kingswood Crossing | ||||||||||||||||||||||||
2020 Total | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
(Amounts in thousands) | Below-Market | Above-Market | ||||||||||
Year | Operating Lease Amortization | Operating Lease Amortization | In-Place Leases | |||||||||
2020(1) | $ | $ | ( | ) | $ | ( | ) | |||||
2021 | ( | ) | ( | ) | ||||||||
2022 | ( | ) | ( | ) | ||||||||
2023 | ( | ) | ( | ) | ||||||||
2024 | ( | ) | ( | ) | ||||||||
2025 | ( | ) | ( | ) |
Interest Rate at | March 31, | December 31, | ||||||||||
(Amounts in thousands) | Maturity | March 31, 2020 | 2020 | 2019 | ||||||||
First mortgages secured by: | ||||||||||||
Variable rate | ||||||||||||
Cherry Hill (Plaza at Cherry Hill)(1) | 5/24/2022 | $ | $ | |||||||||
Westfield (One Lincoln Plaza)(1) | 5/24/2022 | |||||||||||
Woodbridge (Plaza at Woodbridge)(1) | 5/25/2022 | |||||||||||
Jersey City (Hudson Commons)(2) | 11/15/2024 | |||||||||||
Watchung(2) | 11/15/2024 | |||||||||||
Bronx (1750-1780 Gun Hill Road)(2) | 12/1/2024 | |||||||||||
Total variable rate debt | ||||||||||||
Fixed rate | ||||||||||||
Montehiedra (senior loan) | 7/6/2021 | |||||||||||
Montehiedra (junior loan) | 7/6/2021 | |||||||||||
Bergen Town Center - West, Paramus | 4/8/2023 | |||||||||||
Bronx (Shops at Bruckner) | 5/1/2023 | |||||||||||
Jersey City (Hudson Mall)(4) | 12/1/2023 | |||||||||||
Yonkers Gateway Center(5) | 4/6/2024 | |||||||||||
Las Catalinas | 8/6/2024 | |||||||||||
Brick | 12/10/2024 | |||||||||||
North Plainfield | 12/10/2025 | |||||||||||
Middletown | 12/1/2026 | |||||||||||
Rockaway | 12/1/2026 | |||||||||||
East Hanover (200 - 240 Route 10 West) | 12/10/2026 | |||||||||||
North Bergen (Tonnelle Ave) | 4/1/2027 | |||||||||||
Manchester | 6/1/2027 | |||||||||||
Millburn | 6/1/2027 | |||||||||||
Totowa | 12/1/2027 | |||||||||||
Woodbridge (Woodbridge Commons) | 12/1/2027 | |||||||||||
East Brunswick | 12/6/2027 | |||||||||||
East Rutherford | 1/6/2028 | |||||||||||
Brooklyn (Kingswood Center)(6) | 2/6/2028 | |||||||||||
Hackensack | 3/1/2028 | |||||||||||
Marlton | 12/1/2028 | |||||||||||
East Hanover Warehouses | 12/1/2028 | |||||||||||
Union (2445 Springfield Ave) | 12/10/2028 | |||||||||||
Freeport (Freeport Commons) | 12/10/2029 | |||||||||||
Garfield | 12/1/2030 | |||||||||||
Mt Kisco(3) | 11/15/2034 | |||||||||||
Total fixed rate debt | ||||||||||||
Total mortgages payable | ||||||||||||
Unamortized debt issuance costs | ( | ) | ( | ) | ||||||||
Total mortgages payable, net of unamortized debt issuance costs | ||||||||||||
Unsecured credit facilities: | ||||||||||||
Revolving credit agreement(7) | 1/29/2024 | |||||||||||
Total unsecured credit facilities | ||||||||||||
Total debt outstanding | $ | $ |
(1) | Bears interest at one month LIBOR plus 160 bps. |
(2) | Bears interest at one month LIBOR plus 190 bps. |
(3) | The mortgage payable balance on the loan secured by Mt Kisco includes $ |
(4) | The mortgage payable balance on the loan secured by Hudson Mall includes $ |
(5) | The mortgage payable balance on the loan secured by Yonkers Gateway Center includes $ |
(6) | The mortgage payable balance on the loan secured by Kingswood Center includes $ |
(7) | Bears interest at one month LIBOR plus |
(Amounts in thousands) | ||||
Year Ending December 31, | ||||
2020(1) | $ | |||
2021 | ||||
2022 | ||||
2023 | ||||
2024 | ||||
2025 | ||||
Thereafter |
7. | INCOME TAXES |
8. | LEASES |
Three Months Ended March 31, | |||||||
(Amounts in thousands) | 2020 | 2019 | |||||
Rental Revenue | |||||||
Fixed lease revenue | $ | $ | |||||
Variable lease revenue | |||||||
Total rental revenue | $ | $ |
As of March 31, 2020 | As of December 31, 2019 | |||||||||||||||
(Amounts in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | ||||||||||||
Liabilities: | ||||||||||||||||
Mortgages payable(1) | $ | $ | $ | $ | ||||||||||||
Unsecured credit facility | — | — |
Balance at | |||||||
(Amounts in thousands) | March 31, 2020 | December 31, 2019 | |||||
Other assets | $ | $ | |||||
Real estate held for sale | |||||||
Deposits for acquisitions | |||||||
Prepaid expenses: | |||||||
Real estate taxes | |||||||
Insurance | |||||||
Licenses/fees | |||||||
Total Prepaid expenses and other assets | $ | $ |
Balance at | |||||||
(Amounts in thousands) | March 31, 2020 | December 31, 2019 | |||||
Deferred tenant revenue | $ | $ | |||||
Accrued interest payable | |||||||
Accrued capital expenditures and leasing costs | |||||||
Security deposits | |||||||
Deferred tax liability, net | |||||||
Accrued payroll expenses | |||||||
Other liabilities and accrued expenses | |||||||
Total accounts payable, accrued expenses and other liabilities | $ | $ |
Three Months Ended March 31, | |||||||
(Amounts in thousands) | 2020 | 2019 | |||||
Interest expense | $ | $ | |||||
Amortization of deferred financing costs | |||||||
Total Interest and debt expense | $ | $ |
Three Months Ended March 31, | |||||||
(Amounts in thousands) | 2020 | 2019 | |||||
Share-based compensation expense components: | |||||||
Restricted share expense | $ | $ | |||||
Stock option expense | |||||||
LTIP expense(1) | |||||||
Performance-based LTI expense(2) | |||||||
Deferred share unit (“DSU”) expense | |||||||
Total Share-based compensation expense | $ | $ |
Three Months Ended March 31, | |||||||
(Amounts in thousands, except per share amounts) | 2020 | 2019 | |||||
Numerator: | |||||||
Net income attributable to common shareholders | $ | $ | |||||
Less: Earnings allocated to unvested participating securities | ( | ) | ( | ) | |||
Net income available for common shareholders - basic | $ | $ | |||||
Impact of assumed conversions: | |||||||
OP and LTIP units | |||||||
Net income available for common shareholders - dilutive | $ | $ | |||||
Denominator: | |||||||
Weighted average common shares outstanding - basic | |||||||
Effect of dilutive securities(1): | |||||||
Restricted share awards | |||||||
Assumed conversion of OP and LTIP units | |||||||
Weighted average common shares outstanding - diluted | |||||||
Earnings per share available to common shareholders: | |||||||
Earnings per common share - Basic | $ | $ | |||||
Earnings per common share - Diluted | $ | $ |
Three Months Ended March 31, | |||||||
(Amounts in thousands, except per unit amounts) | 2020 | 2019 | |||||
Numerator: | |||||||
Net income attributable to unitholders | $ | $ | |||||
Less: net income attributable to participating securities | ( | ) | ( | ) | |||
Net income available for unitholders | $ | $ | |||||
Denominator: | |||||||
Weighted average units outstanding - basic | |||||||
Effect of dilutive securities issued by Urban Edge | |||||||
Unvested LTIP units | |||||||
Weighted average units outstanding - diluted | |||||||
Earnings per unit available to unitholders: | |||||||
Earnings per unit - Basic | $ | $ | |||||
Earnings per unit - Diluted | $ | $ |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended March 31, | |||||||
(Amounts in thousands) | 2020 | 2019 | |||||
Net income | $ | 51,288 | $ | 27,892 | |||
FFO applicable to diluted common shareholders(1) | 34,794 | 36,520 | |||||
Cash NOI(2) | 57,669 | 59,343 | |||||
Same-property cash NOI(2) | 54,553 | 55,133 |
Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2020 | 2019 | Change | ||||||||
Total revenue | $ | 93,360 | $ | 97,732 | $ | (4,372 | ) | ||||
Depreciation and amortization | 23,471 | 21,830 | 1,641 | ||||||||
Real estate taxes | 14,966 | 15,477 | (511 | ) | |||||||
Property operating expenses | 14,537 | 17,061 | (2,524 | ) | |||||||
General and administrative | 9,847 | 10,580 | (733 | ) | |||||||
Casualty and impairment loss | — | 3,958 | (3,958 | ) | |||||||
Gain on sale of real estate | 39,775 | 16,953 | 22,822 | ||||||||
Interest income | 1,683 | 2,506 | (823 | ) | |||||||
Interest and debt expense | 17,175 | 16,536 | 639 |
• | $2.7 million as a result of property dispositions net of acquisitions since the first quarter of 2019; |
• | $1.8 million decrease in tenant reimbursement income due to lower common area maintenance expenses; and |
• | $1.0 million increase in credit losses related to operating lease receivables, partially offset by |
• | $1.1 million increase in property rentals due to rent commencements and contractual rent increases. |
• | $1.0 million increase as a result of acquisitions net of dispositions since the first quarter of 2019; and |
• | $0.6 million increase from completed development projects and tenant improvements. |
• | $0.8 million as a result of dispositions net of acquisitions since the first quarter of 2019, partially offset by |
• | $0.3 million due to higher assessed values and a decrease in capitalized taxes. |
• | $2.2 million decrease in common area maintenance expenses primarily related to snow; and |
• | $0.6 million decrease as a result of property dispositions net of acquisitions, partially offset by |
• | $0.3 million increase in environmental compliance expenses. |
• | $0.4 million decrease in interest capitalized as a result of the completion of development projects; |
• | $0.3 million due to the assumption of mortgage debt in connection with the acquisition of Kingswood Center in Brooklyn, NY; and |
• | $0.2 million due to interest on the $250 million drawn on the Company’s revolving credit agreement in the first quarter of 2020, partially offset by |
• | $0.3 million decrease due to lower interest rates on variable-rate debt. |
Three Months Ended March 31, | |||||||
(Amounts in thousands) | 2020 | 2019 | |||||
Net income | $ | 51,288 | $ | 27,892 | |||
Management and development fee income from non-owned properties | (314 | ) | (352 | ) | |||
Other expense | 255 | 230 | |||||
Depreciation and amortization | 23,471 | 21,830 | |||||
General and administrative expense | 9,847 | 10,580 | |||||
Casualty and impairment loss(1) | — | 3,958 | |||||
Gain on sale of real estate | (39,775 | ) | (16,953 | ) | |||
Interest income | (1,683 | ) | (2,506 | ) | |||
Interest and debt expense | 17,175 | 16,536 | |||||
Income tax expense | 100 | 202 | |||||
Non-cash revenue and expenses | (2,695 | ) | (2,074 | ) | |||
Cash NOI | 57,669 | 59,343 | |||||
Adjustments: | |||||||
Non-same property cash NOI(2) | (3,113 | ) | (4,183 | ) | |||
Tenant bankruptcy settlement income and lease termination income | (3 | ) | (27 | ) | |||
Same-property cash NOI | $ | 54,553 | $ | 55,133 | |||
Cash NOI related to properties being redeveloped | 696 | 524 | |||||
Same-property cash NOI including properties in redevelopment | $ | 55,249 | $ | 55,657 |
Three Months Ended March 31, | |||||||
(Amounts in thousands) | 2020 | 2019 | |||||
Net income | $ | 51,288 | $ | 27,892 | |||
Less net income attributable to noncontrolling interests in: | |||||||
Operating partnership | (2,308 | ) | (2,355 | ) | |||
Consolidated subsidiaries | — | — | |||||
Net income attributable to common shareholders | 48,980 | 25,537 | |||||
Adjustments: | |||||||
Rental property depreciation and amortization | 23,281 | 21,623 | |||||
Gain on sale of real estate | (39,775 | ) | (16,953 | ) | |||
Real estate impairment loss | — | 3,958 | |||||
Limited partnership interests in operating partnership(1) | 2,308 | 2,355 | |||||
FFO applicable to diluted common shareholders | $ | 34,794 | $ | 36,520 |
(Amounts in thousands) | March 31, 2020 | ||
Revolving credit agreement(1) | |||
Total commitment amount | $ | 600,000 | |
Available capacity | $ | 350,000 | |
Maturity | January 29, 2024 |
Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2020 | 2019 | Increase (Decrease) | ||||||||
Net cash provided by operating activities | $ | 20,796 | $ | 29,427 | $ | (8,631 | ) | ||||
Net cash used in investing activities | (44,268 | ) | (8,494 | ) | (35,774 | ) | |||||
Net cash provided by (used in) financing activities | 180,979 | (29,667 | ) | 210,646 |
(Amounts in thousands) | Principal balance at March 31, 2020 | Weighted Average Interest Rate at March 31, 2020 | ||||
Mortgages payable: | ||||||
Fixed rate debt | $ | 1,457,292 | 4.16% | |||
Variable rate debt(1) | 169,151 | 3.32% | ||||
Total mortgages payable | 1,626,443 | 4.07% | ||||
Unamortized debt issuance costs | (9,590 | ) | ||||
Total mortgages payable, net of unamortized debt issuance costs | 1,616,853 | |||||
Unsecured credit facilities: | ||||||
Revolving credit agreement(2) | 250,000 | 2.00% | ||||
Total unsecured credit facilities | 250,000 | 2.00% | ||||
Total debt outstanding | $ | 1,866,853 | 3.80% |
Three Months Ended March 31, | ||||||||
(Amounts in thousands) | 2020 | 2019 | ||||||
Capital expenditures: | ||||||||
Development and redevelopment costs(1) | $ | 4,188 | $ | 21,068 | ||||
Capital improvements(1) | 1,469 | 3,137 | ||||||
Tenant improvements and allowances | 881 | 2,413 | ||||||
Total capital expenditures | $ | 6,538 | $ | 26,618 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
2020 | 2019 | ||||||||||||||
(Amounts in thousands) | March 31, Balance | Weighted Average Interest Rate | Effect of 1% Change in Base Rates | December 31, Balance | Weighted Average Interest Rate | ||||||||||
Variable rate unsecured debt | $ | 250,000 | 2.00% | $ | 2,500 | $ | — | —% | |||||||
Variable rate mortgages | 169,151 | 3.32% | 1,692 | 169,500 | 3.45% | ||||||||||
Fixed rate mortgages | 1,457,292 | 4.16% | — | (2) | 1,386,748 | 4.12% | |||||||||
$ | 1,876,443 | (1) | $ | 4,192 | $ | 1,556,248 | (1) |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
• | the ability and willingness of our tenants to renew their leases upon expiration, our ability to re-lease the properties on the same or better terms in the event of nonrenewal or in the event we exercise our right to replace an existing tenant, and obligations we may incur in connection with the replacement of an existing tenant, particularly in light of the adverse impact to the financial health of many retailers that has occurred and continues to occur as a result of the COVID-19 pandemic and the significant uncertainty as to when and the conditions under which potential tenants will be able to operate physical retail locations in the future; |
• | anticipated returns from development and redevelopment projects, which have been temporarily delayed and may, in some cases, be abandoned; |
• | the broader impact of the severe economic contraction due to the COVID-19 pandemic, the resulting increase in unemployment that has occurred and its effect on consumer behavior, and the negative consequences that will occur if these trends are not timely reversed; |
• | macroeconomic conditions, such as a disruption of, or lack of access to, the capital markets as well as the significant decline in our share price from prices prior to the spread of the COVID-19 pandemic; |
• | our decision to pay dividends at all, or pay them in stock, which in the case of the latter may result in our shareholders having a tax liability with respect to such dividends that exceeds the amount of cash received, if any; |
• | our ability to pay down, refinance, restructure or extend our indebtedness as it becomes due and potential limitations on our ability to borrow funds under our existing credit facility as a result of covenants relating to our financial results in the second quarter of 2020 or future quarters; and |
• | potential reduction in our operating effectiveness as employees work remotely or if key personnel become unavailable due to illness or other personal circumstances related to COVID-19. |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet to be Purchased Under the Plan or Program(2) | ||||||||||
January 1, 2020 - January 31, 2020 | 538 | (1) | $ | 21.98 | — | $ | — | |||||||
February 1, 2020 - February 29, 2020 | — | — | — | — | ||||||||||
March 1, 2020 - March 31, 2020 | 4,452,223 | (2) | 9.61 | 4,452,223 | 157,200,000 | |||||||||
4,452,761 | $ | 9.61 | 4,452,223 | $ | 157,200,000 |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Exhibit Number | Exhibit Description | |
101.SCH | Inline XBRL Taxonomy Extension Schema | |
101.CAL | Inline XBRL Extension Calculation Linkbase | |
101.LAB | Inline XBRL Extension Labels Linkbase | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase | |
104 | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*) |
URBAN EDGE PROPERTIES | |
(Registrant) | |
/s/ Mark Langer | |
Mark Langer, Chief Financial Officer | |
Date: April 29, 2020 | |
URBAN EDGE PROPERTIES LP | |
By: Urban Edge Properties, General Partner | |
/s/ Mark Langer | |
Mark Langer, Chief Financial Officer | |
Date: April 29, 2020 | |
1. | I have reviewed this Quarterly Report on Form 10-Q of Urban Edge Properties; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
April 29, 2020 | ||
/s/ Jeffrey S. Olson | ||
Jeffrey S. Olson | ||
Chairman of the Board of Trustees and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Urban Edge Properties; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
April 29, 2020 | ||
/s/ Mark Langer | ||
Mark Langer | ||
Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Urban Edge Properties LP; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
April 29, 2020 | ||
/s/ Jeffrey S. Olson | ||
Jeffrey S. Olson | ||
Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties, general partner of registrant |
1. | I have reviewed this Quarterly Report on Form 10-Q of Urban Edge Properties LP; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
April 29, 2020 | ||
/s/ Mark Langer | ||
Mark Langer | ||
Chief Financial Officer of Urban Edge Properties, general partner of registrant |
April 29, 2020 | /s/ Jeffrey S. Olson | ||
Name: | Jeffrey S. Olson | ||
Title: | Chairman of the Board of Trustees and Chief Executive Officer | ||
April 29, 2020 | /s/ Mark Langer | ||
Name: | Mark Langer | ||
Title: | Chief Financial Officer |
April 29, 2020 | /s/ Jeffrey S. Olson | ||
Name: | Jeffrey S. Olson | ||
Title: | Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties, general partner of registrant | ||
April 29, 2020 | /s/ Mark Langer | ||
Name: | Mark Langer | ||
Title: | Chief Financial Officer of Urban Edge Properties, general partner of registrant |
PREPAID EXPENSES AND OTHER ASSETS |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID EXPENSES AND OTHER ASSETS | PREPAID EXPENSES AND OTHER ASSETS The following is a summary of the composition of the prepaid expenses and other assets in the consolidated balance sheets:
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
---|---|
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Real Estate — Real estate is carried at cost, net of accumulated depreciation and amortization. Expenditures for ordinary maintenance and repairs are expensed to operations as they are incurred. Significant renovations that improve or extend the useful lives of assets are capitalized. As real estate is undergoing redevelopment activities, all property operating expenses directly associated with and attributable to the redevelopment, including interest, are capitalized to the extent the capitalized costs of the property do not exceed the estimated fair value of the property when completed. If the cost of the redeveloped property, including the net book value of the existing property, exceeds the estimated fair value of redeveloped property, the excess is charged to impairment expense. The capitalization period begins when redevelopment activities are underway and ends when the project is substantially complete. Depreciation is recognized on a straight-line basis over estimated useful lives which range from one to 40 years. Upon the acquisition of real estate, we assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and acquired liabilities and we allocate the purchase price based on these assessments on a relative fair value basis. We assess fair value based on estimated cash flow projections utilizing appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known trends, and market/economic conditions. We record acquired intangible assets (including acquired above-market leases, acquired in-place leases and tenant relationships) and acquired intangible liabilities (including below-market leases) at their estimated fair value. We amortize identified intangibles that have finite lives over the period they are expected to contribute directly or indirectly to the future cash flows of the property or business acquired. Our properties are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Such events and changes include macroeconomic conditions, including those caused by global pandemics, like the recent coronavirus disease pandemic (“COVID-19” or the “COVID-19 pandemic”), which may result in property operational disruption and indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis taking into account the appropriate capitalization rate in determining a future terminal value. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Estimated fair value may be based on discounted future cash flows utilizing appropriate discount and capitalization rates and in addition to available market information, third-party appraisals, broker selling estimates or sale agreements under negotiation. Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows change based on uncertain market conditions, our evaluation of impairment losses may be different and such differences could be material to our consolidated financial statements. Recently Issued Accounting Literature — Effective for the fiscal period beginning January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses. In connection with the adoption of ASU 2016-03, we also adopted (i) ASU 2018-19 Codification Improvements to ASC 326, Financial Instruments - Credit Losses, (ii) ASU 2019-04, Codification Improvements to ASC 326, Financial Statements - Credit Losses, Topic 815, Derivatives and Hedging and Topic 825, Financial Instruments, (iii) ASU 2019-05 Financial Instruments - Credit Losses (ASC 326): Targeted Transition Relief and (iv) ASU 2019-11 Codification Improvements to ASC 326, Financial Instruments - Credit Losses. ASU 2016-13 introduces a new model for estimating credit losses for certain types of financial instruments and also modifies the impairment model with new methodology for estimating credits losses. In November 2018, the FASB issued ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which included amendments to clarify receivables arising from operating leases are within the scope ASC 842 Leases. Due to the adoption of ASC 842 on January 1, 2019, the Company includes credit losses related to operating lease receivables as a reduction to rental revenue in "Rental revenue" in the consolidated statements of income. As of March 31, 2020, the Company did not have any outstanding financial instruments. The adoption of ASU 2016-13 has had no impact to our consolidated financial statements and disclosures. In December 2019, the FASB issued ASU 2019-12 Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of the income tax accounting. ASU 2019-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. We are currently evaluating the impact ASU 2019-12 may have to our consolidated financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact ASU 2020-04 may have to our consolidated financial statements and disclosures. In April 2020, the FASB issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated with the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under ASC 842. Instead, an entity that elects not to evaluate whether a concession directly related to COVID-19 is a modification can then elect whether to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract). Both lessees and lessors may make this election. The Company is evaluating its election on a disaggregated basis, with such election applied consistently to leases with similar characteristics and similar circumstances. There were no lease concessions granted as a result of COVID-19 during the first quarter. The future impact of the Lease Modification Q&A is dependent upon the extent of lease concessions granted to tenants as a result of COVID-19 in future periods and the elections made by the Company at the time of entering into such concessions. Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they are not relevant to the Company or the Operating Partnership, or they are not expected to have a material impact on our consolidated financial statements.
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INCOME TAXES |
3 Months Ended |
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Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company elected to be taxed as a REIT under sections 856-860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the filing of its 2015 tax return for its tax year ended December 31, 2015. To the extent the Company meets certain requirements under the Code, the Company will not be taxed on its federal taxable income. If we fail to qualify as a REIT for any taxable year, we will be subject to federal income taxes at regular corporate rates, including any alternative minimum tax, which, for corporations, was repealed under the Tax Cuts and Jobs Act (“TCJA”) and may not be able to qualify as a REIT for the four subsequent taxable years. The Company is subject to certain foreign and state and local income taxes, including a 29% non-resident withholding tax on its two Puerto Rico malls, which are included in income tax expense in the consolidated statements of income. The Company is also subject to certain other taxes, including state and local franchise taxes which are included in general and administrative expenses in the consolidated statements of income. During the three months ended March 31, 2020, certain non-real estate operating activities that could not be performed by the REIT directly, occurred through the Company’s taxable REIT subsidiary (“TRS”), and the Company’s TRS is subject to federal, state and local income taxes. These income taxes are included in the income tax expense in the consolidated statements of income. Our two Puerto Rico malls are subject to a 29% non-resident withholding tax which is included in income tax expense in the consolidated statements of income. The Puerto Rico tax expense recorded was $0.1 million and $0.2 million for the three months ended March 31, 2020 and 2019, respectively. Both properties are held in a special partnership for Puerto Rico tax purposes (the general partner being a qualified REIT subsidiary or “QRS”). |
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Composition of Accounts Payable, Accrued Expenses and Other Liabilites | The following is a summary of the composition of accounts payable, accrued expenses other liabilities in the consolidated balance sheets:
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ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Deferred tenant revenue | $ 20,571 | $ 26,224 |
Accrued capital expenditures and leasing costs | 7,470 | 7,893 |
Accrued interest payable | 10,202 | 9,729 |
Security deposits | 6,192 | 5,814 |
Deferred tax liability, net | 5,183 | 5,137 |
Accrued payroll expenses | 2,996 | 5,851 |
Other liabilities and accrued expenses | 16,736 | 15,996 |
Total accounts payable, accrued expenses and other liabilities | $ 69,350 | $ 76,644 |
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Feb. 20, 2020 |
Mar. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options vested (in shares) | 1,208,304 | |
Long-Term Incentive Plan 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of REIT peer groups | 14 | |
LTIP Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number or equity awards granted (in shares) | 210,078 | |
Number of awards vested (in shares) | 128,817 | |
LTIP Units | Long-Term Incentive Plan 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance measurement period of equity awards | 3 years | |
Time-based LTIP Shares | Long-Term Incentive Plan 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number or equity awards granted (in shares) | 169,004 | |
Weighted percentage of equity awards | $ 0.3333 | |
Award vesting period | 3 years | |
Grant date fair value of equity awards | $ 2,900,000 | |
Time-based LTIP Shares | Long-Term Incentive Plan 2020 | CEO | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
Performance-based LTIP Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards percentage of relative component of TSR equal to 35 percentile of peer group | 3500.00% | |
Equity awards percentage of relative component of TSR equal to 55 percentile of peer group | 5500.00% | |
Equity awards percentage of relative component of TSR equal to 75 percentile of peer group | 7500.00% | |
Performance-based LTIP Shares | Long-Term Incentive Plan 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance measurement period of equity awards | 3 years | |
Weighted percentage of equity awards | $ 0.6666 | |
Number of equity awards issued (in shares) | 630,774 | |
Equity awards earned percentage based on absolute TSR component of equal to 18% | 40.00% | |
Equity awards percentage of absolute component of TSR equal to 18% | 18.00% | |
Equity awards earned percentage based on absolute TSR component of equal to 27% | 100.00% | |
Equity awards percentage of absolute component of TSR equal to 27% | 27.00% | |
Equity awards earned percentage based on absolute TSR component of equal to 36% | 165.00% | |
Equity awards percentage of absolute component of TSR equal to 36% | 36.00% | |
Equity awards earned percentage based on relative TSR component of 35 percentile of peer group | 40.00% | |
Equity awards earned percentage based on relative TSR component of 55 percentile of peer group | 100.00% | |
Equity awards earned percentage based on relative TSR component of 75 percentile of peer group | 165.00% | |
Aggregate notional amount of grant | $ 5,900,000 | |
Time-based and Performance-based LTIP Shares | Long-Term Incentive Plan 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value of equity awards | $ 8,800,000 | |
Restricted Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number or equity awards granted (in shares) | 25,937 | |
Number of awards vested (in shares) | 50,285 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Capitalized interest | $ 125 | $ 565 |
Urban Edge Properties LP | ||
Capitalized interest | $ 125 | $ 565 |
MORTGAGES PAYABLE - Schedule of Maturities (Details) $ in Thousands |
Mar. 31, 2020
USD ($)
|
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Debt Disclosure [Abstract] | |
Remainder of 2018 | $ 6,335 |
2019 | 123,177 |
2020 | 100,586 |
2021 | 345,242 |
2022 | 525,191 |
2023 | 33,181 |
Thereafter | $ 742,731 |
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||
Identified intangible assets, net of accumulated amortization | $ 59,810 | $ 48,121 | |
Identified intangible liabilities, net of accumulated amortization | 130,840 | $ 128,830 | |
Amortization of acquired below-market leases, net of above-market leases | 2,200 | $ 2,400 | |
Amortization expense of intangible assets | $ 2,000 | $ 2,100 |
SHARE-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share-Based Compensation Expense Share-based compensation expense, which is included in general and administrative expenses in our consolidated statements of income, is summarized as follows:
(1) LTIP expense includes the time-based portion of the 2018, 2019 and 2020 LTI Plans. (2) Performance-based LTI expense includes the 2015 and 2017 OPP plans and the performance-based portion of the 2018, 2019 and 2020 LTI Plans. Equity award activity during the three months ended March 31, 2020 included: (i) 1,208,304 stock options vested, (ii) 210,078 LTIP units granted, (iii) 128,817 LTIP units vested, (iv) 50,285 restricted shares vested and (v) 25,937 restricted shares granted. 2020 Long-Term Incentive Plan On February 20, 2020, the Compensation Committee of the Board of Trustees of the Company approved the Company’s 2020 Long-Term Incentive Plan (“2020 LTI Plan”). The Plan is a multi-year, equity compensation program under which participants, including our Chairman and Chief Executive Officer, have the opportunity to earn awards in the form of LTIP units that vest based on (i) the passage of time (one-third of the fair value of the program) and (ii) performance goals tied to our relative and absolute total shareholder return (“TSR”) during the three-year performance period following their grant (two-thirds of the fair value of the program). The total grant date fair value under the 2020 LTI Plan was $8.8 million comprising performance-based and time-based awards as described further below: Performance-based awards For the performance-based awards under the 2020 LTI Plan, participants, have the opportunity to earn awards in the form of LTIP Units if Urban Edge’s absolute and/or relative TSR meets certain criteria over the three-year performance measurement period (the “Performance Period”) beginning on February 20, 2020 and ending on February 19, 2023. The Company granted performance-based awards under the 2020 LTI Plan that represent 630,774 LTIP Units. The fair value of the performance-based award portion of the 2020 LTI Plan on the date of grant was $5.9 million using a Monte Carlo simulation to estimate the fair value through a risk-neutral premise. Under the Absolute TSR component, 40% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to 18%, 100% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to 27%, and 165% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to or greater than 36%. The Relative TSR component is based on the Company’s performance compared to a peer group comprised of 14 companies. Under the Relative TSR Component, 40% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to the 35th percentile of the peer group, 100% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to the 55th percentile of the peer group, and 165% of the LTIP Units will be earned if the Company’s TSR over the Performance Period is equal to or above the 75th percentile of the peer group, with earning determined using linear interpolation if in between such relative and absolute TSR thresholds. Time-based awards The time-based awards granted under the 2020 LTI Plan, also granted in the form of LTIP Units, vest ratably over three years except in the case of our Chairman and Chief Executive Officer, where the vesting is ratably over four years. As of March 31, 2020, the Company granted time-based awards under the 2020 LTI Plan that represent 169,004 LTIP units with a grant date fair value of $2.9 million.
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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Annual Amortization Expense | The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2020 and the five succeeding years:
(1) Remainder of 2020. |
INCOME TAXES (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020
USD ($)
mall
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Mar. 31, 2019
USD ($)
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Income Tax Contingency [Line Items] | ||
Income tax expense | $ 100 | $ 202 |
Puerto Rico | ||
Income Tax Contingency [Line Items] | ||
Number of malls | mall | 2 | |
Commonwealth of Puerto Rico | ||
Income Tax Contingency [Line Items] | ||
Non-resident withholding tax percentage | 29.00% | |
Income tax expense | $ 100 | $ 200 |
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Schedule of Estimated Annual Amortization Expense (Details) $ in Thousands |
Mar. 31, 2020
USD ($)
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Below-Market Operating Lease Amortization | |
Reminder of 2019 | $ 7,367 |
2019 | 9,703 |
2020 | 9,627 |
2021 | 9,575 |
2022 | 9,339 |
2024 | 9,167 |
Above-Market | |
Above-Market Operating Lease Amortization | |
Remainder of 2019 | (778) |
2020 | (860) |
2021 | (495) |
2022 | (386) |
2023 | (321) |
2024 | (142) |
In-Place Leases | |
Remainder of 2019 | (778) |
2020 | (860) |
2021 | (495) |
2022 | (386) |
2023 | (321) |
2024 | (142) |
In-Place Leases | |
Above-Market Operating Lease Amortization | |
Remainder of 2019 | (6,565) |
2020 | (7,612) |
2021 | (6,005) |
2022 | (4,859) |
2023 | (4,366) |
2024 | (3,732) |
In-Place Leases | |
Remainder of 2019 | (6,565) |
2020 | (7,612) |
2021 | (6,005) |
2022 | (4,859) |
2023 | (4,366) |
2024 | $ (3,732) |
EQUITY AND NONCONTROLLING INTEREST |
3 Months Ended |
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Mar. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
EQUITY AND NONCONTROLLING INTEREST | EQUITY AND NONCONTROLLING INTEREST Share Repurchase Program In March 2020, the Company’s Board of Trustees authorized a share repurchase program for up to $200 million of the Company’s common shares. Under the program, the Company may repurchase its shares from time to time in the open market or in privately negotiated transactions in compliance with Securities and Exchange Commission Rule 10b-18. The amount and timing of the purchases will depend on a number of factors including the price and availability of the Company’s shares, trading volume and general market conditions. The share repurchase program does not obligate the Company to acquire any particular amount of common shares and may be suspended or discontinued at any time at the Company’s discretion. During the three months ended March 31, 2020, the Company repurchased 4.5 million common shares at a weighted average share price of $9.61 under this program, for a total of $42.8 million. Subsequent to March 31, 2020, the Company repurchased an additional 1.4 million common shares at a weighted average share price of $7.98 for a total of $11.3 million. Cumulative total purchases since inception are 5.9 million shares at a weighted average share price of $9.22 amounting to an investment of $54.1 million. Dividends and Distributions During the three months ended March 31, 2020 and 2019, respectively, the Company declared dividends on our common shares and OP unit distributions of $0.22 per share/unit. Noncontrolling Interests in Operating Partnership Noncontrolling interests in the Operating Partnership reflected on the consolidated balance sheets of the Company are comprised of OP units and limited partnership interests in the Operating Partnership in the form of LTIP unit awards. LTIP unit awards were granted to certain executives pursuant to our 2015 Omnibus Share Plan (the “Omnibus Share Plan”) and our 2018 Inducement Equity Plan (the “Inducement Plan”). OP units were issued to contributors in exchange for their property interests in connection with the Company’s property acquisitions in 2017. The total of the OP units and LTIP units represent a 4.5% weighted-average interest in the Operating Partnership for the three months ended March 31, 2020, respectively. Holders of outstanding vested LTIP units may, from and after two years from the date of issuance, redeem their LTIP units for cash, or for the Company’s common shares on a one-for-one basis, solely at our election. Holders of outstanding OP units may redeem their units for cash or the Company’s common shares on a one-for-one basis, solely at our election. In connection with the separation from Vornado Realty L.P. (“VRLP”), the Company issued 5.7 million OP units, which represented a 5.4% interest in the Operating Partnership, to VRLP in exchange for interests in VRLP properties contributed by VRLP. On February 28, 2019, the Company issued 5.7 million common shares to VRLP, in exchange for an equal number of OP units after receiving a notice of redemption from VRLP. The issuance is exempt from registration in reliance upon Section 4(a)(2) of the Securities Act of 1933, as amended, on the basis that no public offering was made. Noncontrolling Interest in Consolidated Subsidiaries The noncontrolling interest relates to the 5% interest held by others in our property in Walnut Creek, CA (Mount Diablo). The net income attributable to noncontrolling interest is presented separately in our consolidated statements of income.
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ACQUISITIONS AND DISPOSITIONS (Tables) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | During the three months ended March 31, 2019, no acquisitions were completed by the Company. During the three months ended March 31, 2020, we closed on the following acquisitions:
(1) The total purchase price for the properties acquired during the three months ended March 31, 2020 includes $2.5 million of transaction costs incurred related to the transactions.
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The aggregate purchase price of the above property acquisitions has been allocated as follows:
(1) As of March 31, 2020, the remaining weighted average amortization periods of the identified intangible assets and identified intangible liabilities acquired were 8.9 years and 11.3 years, respectively. |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION |
3 Months Ended |
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Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION | BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions of Form 10-Q. Certain information and footnote disclosures included in our annual financial statements have been condensed or omitted. In the opinion of management, the consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company and the Operating Partnership and the results of operations and cash flows for the interim periods presented. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020. Accordingly, these consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities Exchange Commission (“SEC”). The consolidated balance sheets as of March 31, 2020 and December 31, 2019 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. The consolidated statements of income for the three months ended March 31, 2020 and 2019 include the consolidated accounts of the Company and the Operating Partnership. All intercompany transactions have been eliminated in consolidation. In accordance with ASC 205 Presentation of Financial Statements, certain prior year balances have been reclassified in order to conform to the current period presentation. Our primary business is the ownership, management, redevelopment, development and operation of retail shopping centers and malls. We do not distinguish our primary business or group our operations on a geographical basis for purposes of measuring performance. The Company’s chief operating decision maker reviews operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. None of our tenants accounted for more than 10% of our revenue or property operating income. We aggregate all of our properties into one reportable segment due to their similarities with regard to the nature and economics of the properties, tenants and operations, as well as long-term average financial performance.
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MORTGAGES PAYABLE |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MORTGAGES PAYABLE | MORTGAGES PAYABLE AND UNSECURED DEBT The following is a summary of mortgages payable as of March 31, 2020 and December 31, 2019.
The net carrying amount of real estate collateralizing the above indebtedness amounted to approximately $1.3 billion as of March 31, 2020. Our mortgage loans contain covenants that limit our ability to incur additional indebtedness on these properties and in certain circumstances require lender approval of tenant leases and/or yield maintenance upon repayment prior to maturity. As of March 31, 2020, we were in compliance with all debt covenants. As of March 31, 2020, the principal repayments of the Company’s total outstanding debt for the next five years and thereafter are as follows:
(1) Remainder of 2020. Revolving Credit Agreement On January 15, 2015, we entered into a $500 million Revolving Credit Agreement (the “Agreement”) with certain financial institutions. On March 7, 2017, we amended and extended the Agreement. The amendment increased the credit facility size by $100 million to $600 million and extended the maturity date to March 7, 2021 with two six-month extension options. On July 29, 2019, we entered into a second amendment to the Agreement to extend the maturity date to January 29, 2024 with two six-month extension options. Company borrowings under the Agreement are subject to interest at LIBOR plus 1.05% to 1.50% and an annual facility fee of 15 to 30 basis points. Both the spread over LIBOR and the facility fee are based on our current leverage ratio and are subject to increase if our leverage ratio increases above predefined thresholds. The Agreement contains customary financial covenants including a maximum leverage ratio of 60% and a minimum fixed charge coverage ratio of 1.5x. In March 2020, the Company borrowed $250 million under the Agreement. As of March 31, 2020, $350 million of credit remained available for withdrawal. Financing costs associated with executing the Agreement of $3.6 million and $3.9 million as of March 31, 2020 and December 31, 2019, respectively, are included in deferred financing costs, net in the consolidated balance sheets. Mortgage on Las Catalinas Mall In April 2020, we notified the servicer of the $129 million non-recourse mortgage loan on Las Catalinas Mall in Puerto Rico that cash flow would be insufficient to make the April debt service payment and that we were unwilling to fund the shortfalls. Pursuant to the loan agreement, the loan is in default, is subject to incremental default interest while the outstanding balance remains unpaid, and the lender has the ability to accelerate the full loan balance. We currently remain in active negotiations with the special servicer and no determination has been made as to the timing or ultimate resolution of this matter.
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES There are various legal actions against us in the ordinary course of business. After consultation with legal counsel, the outcome of such matters will not have a material adverse effect on our financial condition, results of operations or cash flows. Redevelopment As of March 31, 2020, we had approximately $52.8 million of active development, redevelopment and anchor repositioning projects under way, of which $16.0 million remains to be funded. Further, while we have approximately $300 million of projects in our development pipeline, we are under no obligation to execute and fund any of these projects and each of these projects is being reevaluated considering market conditions. The Company has updated many of its active project stabilization dates to reflect the impact of the COVID-19 outbreak on its contractors, tenants and vendors. Insurance The Company maintains (i) general liability insurance with limits of $200 million for properties in the U.S. and Puerto Rico, (ii) all-risk property insurance with limits of $500 million per occurrence and in the aggregate for properties in the U.S. and $147 million for properties in Puerto Rico, subject to the terms, conditions, exclusions, deductibles and sub-limits when applicable for certain perils such as floods and earthquakes, (iii) pollution insurance with limits of $50 million for properties in the U.S. and Puerto Rico and (iv) numerous other insurance policies including trustees’ and officers’ insurance, cyber, workers’ compensation and automobile-related liabilities insurance. The Company’s insurance includes coverage for acts of terrorism but excludes coverage for nuclear, biological, chemical or radiological terrorism events as defined by the Terrorism Risk Insurance Program Reauthorization Act, which expires in December 2020. The Company’s coverage for certain cybersecurity losses provides first and third-party coverage including network interruption, event management, cyber extortion and claims for media content, security and privacy liability. The Company’s coverage for pollution related losses provides certain remediation and business interruption coverage for specified pollution incidents, which includes the presence of viruses. The Company has filed insurance claims related to COVID-19 and is pursuing available coverage. Insurance premiums are typically charged directly to each of the retail properties and warehouses but not all of the cost of such premiums are recovered. The Company is responsible for deductibles, losses in excess of insurance coverage, and the portion of premiums not reimbursable by tenants at our properties, which could be material. We continue to monitor the state of the insurance market and the scope and costs of available coverage. We cannot anticipate what coverage will be available on commercially reasonable terms in the future and expect premiums across most coverage lines to increase in light of recent events. The incurrence of uninsured losses, costs or uncovered premiums could materially and adversely affect our business, results of operations and financial condition. Certain of our loans and other agreements contain customary covenants requiring the maintenance of insurance coverage. Although we believe that we currently have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. If lenders or other counterparties insist on greater coverage than we are able to obtain, such requirement could materially and adversely affect our ability to finance our properties and expand our portfolio. Environmental Matters Each of our properties has been subjected to varying degrees of environmental assessment at various times. Based on these assessments, we have accrued costs of $1.0 million and $2.7 million on our consolidated balance sheets as of March 31, 2020 and December 31, 2019, respectively, for remediation costs for environmental contamination at certain properties. While this accrual reflects our best estimates of the potential costs of remediation at these properties, there can be no assurance that the actual costs will not exceed these amounts. Although we are not aware of any other material environmental contamination, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us. Bankruptcies Although our rental revenue is supported by long-term leases, leases may be rejected in a bankruptcy proceeding and the related tenant stores may permanently vacate prior to lease expiration. In the event a tenant with a significant number of leases or square footage in our shopping centers files for bankruptcy and rejects its leases with us, we could experience a reduction in our revenues. We monitor the operating performance and rent collections of all tenants in our shopping centers, especially those tenants in arrears or operating retail formats that are experiencing significant changes in competition, business practice, or store closings in other locations. Pandemic-Related Contingencies On January 30, 2020, the spread of the COVID-19 outbreak was declared a Public Health Emergency of International Concern by the World Health Organization ("WHO"). On March 11, 2020, WHO characterized the COVID-19 outbreak as a pandemic. During and subsequent to the first quarter, the continually evolving COVID-19 pandemic impacted our tenants and business operations. The Company has taken precautions to protect the safety, health and well-being of its employees and tenants. As a result of the Company’s concentrated operations in the New York metropolitan area, the extent and magnitude of the pandemic’s impact to our operations is heightened. As of April 27, 2020, 55% of our portfolio's gross leasable area remains open for business and the Company received approximately 56% of April rental revenue billed, totaling $15.8 million. The Company currently remains in active discussions and negotiations with its impacted tenants and anticipates the need to grant rent concessions or other lease-related relief, such as the deferral of lease payments for a period of time to be paid over the remaining term of the lease. The nature and financial impact of such rent relief is currently unknown as negotiations are in progress. The Company is not currently aware of any loss contingencies related to this matter that would require recognition at this time.
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BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION (Details) |
3 Months Ended |
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Mar. 31, 2020
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
INTEREST AND DEBT EXPENSE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest and Debt Expense | The following table sets forth the details of interest and debt expense in the consolidated statements of income:
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ORGANIZATION |
3 Months Ended |
---|---|
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Urban Edge Properties (“UE”, “Urban Edge” or the “Company”) (NYSE: UE) is a Maryland real estate investment trust focused on managing, developing, redeveloping, and acquiring retail real estate in urban communities, primarily in the New York metropolitan area. Urban Edge Properties LP (“UELP” or the “Operating Partnership”) is a Delaware limited partnership formed to serve as UE’s majority-owned partnership subsidiary and to own, through affiliates, all of the Company’s real estate properties and other assets. Unless the context otherwise requires, references to “we”, “us” and “our” refer to Urban Edge Properties and UELP and their consolidated entities/subsidiaries. The Operating Partnership’s capital includes general and common limited partnership interests in the operating partnership (“OP Units”). As of March 31, 2020, Urban Edge owned approximately 96.0% of the outstanding common OP Units with the remaining limited OP Units held by members of management, Urban Edge’s Board of Trustees and contributors of property interests acquired. Urban Edge serves as the sole general partner of the Operating Partnership. The third-party unitholders have limited rights over the Operating Partnership such that they do not have characteristics of a controlling financial interest. As such, the Operating Partnership is considered a variable interest entity (“VIE”), and the Company is the primary beneficiary which consolidates it. The Company’s only investment is the Operating Partnership. The VIE’s assets can be used for purposes other than the settlement of the VIE’s obligations and the Company’s partnership interest is considered a majority voting interest. |
PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other assets | $ 7,179 | $ 7,460 |
Real estate held for sale | 0 | 6,574 |
Deposits for acquisitions | 0 | 10,000 |
Prepaid expenses: | ||
Real estate taxes | 12,986 | 6,491 |
Insurance | 5,401 | 1,520 |
Licenses/fees | 1,806 | 1,655 |
Total Prepaid expenses and other assets | $ 27,372 | $ 33,700 |
Cover Page - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Apr. 24, 2020 |
|
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36523 | |
Entity Registrant Name | URBAN EDGE PROPERTIES | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 47-6311266 | |
Entity Address, Address Line One | 888 Seventh Avenue | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10019 | |
City Area Code | (212) | |
Local Phone Number | 956‑2556 | |
Title of 12(b) Security | Common shares of beneficial interest, par value $0.01 per share | |
Trading Symbol | UE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 116,534,331 | |
Entity Central Index Key | 0001611547 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Urban Edge Properties LP | ||
Entity Information [Line Items] | ||
Entity File Number | 333-212951-01 | |
Entity Registrant Name | URBAN EDGE PROPERTIES LP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-4791544 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) |
Total |
Urban Edge Properties LP |
Urban Edge Properties LP
Accumulated Earnings (Deficit)
|
Urban Edge Properties LP
Consolidated Subsidiaries
|
Urban Edge Properties LP
General Partner
|
Urban Edge Properties LP
Limited Partners
|
Common Shares |
Additional Paid-In Capital |
Accumulated Earnings (Deficit) |
Operating Partnership |
Consolidated Subsidiaries |
Operating Partnership
Urban Edge Properties LP
Limited Partners
|
|||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2018 | 114,345,565 | ||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 114,345,565 | 12,736,633 | |||||||||||||||
Beginning balance at Dec. 31, 2018 | $ 1,005,977,000 | $ 1,005,977,000 | $ (57,482,000) | $ 449,000 | $ 957,563,000 | $ 105,447,000 | [1] | $ 1,143,000 | $ 956,420,000 | $ (52,857,000) | $ 100,822,000 | $ 449,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income attributable to common shareholders | 25,537,000 | 27,892,000 | 27,892,000 | 25,537,000 | |||||||||||||
Net income attributable to noncontrolling interests | 2,355,000 | 2,355,000 | |||||||||||||||
Common units issued as a result of common shares issued by Urban Edge (in shares) | 20,657 | ||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | (35,000) | 35,000 | $ (70,000) | ||||||||||||||
Units redeemed for common shares (in shares) | 5,762,184 | (5,762,184) | 5,762,184 | ||||||||||||||
Units redeemed for common shares | 46,147,000 | 46,147,000 | $ 46,147,000 | $ 57,000 | 46,090,000 | ||||||||||||
Limited partnership units issued, net (in shares) | 135,337 | ||||||||||||||||
Limited partnership units issued, net | 0 | ||||||||||||||||
Reallocation of noncontrolling interests | (46,147,000) | (46,147,000) | 1,250,000 | $ (47,397,000) | [1] | 1,250,000 | (47,397,000) | ||||||||||
Common shares issued (in shares) | 20,657 | ||||||||||||||||
Common shares issued | 35,000 | $ 1,000 | 69,000 | (35,000) | |||||||||||||
Dividends to common shareholders | (26,390,000) | (26,390,000) | |||||||||||||||
Distributions to redeemable NCI | (1,576,000) | (1,576,000) | |||||||||||||||
Distributions to Partners | (27,966,000) | (27,966,000) | |||||||||||||||
Share-based compensation expense | 3,664,000 | 3,664,000 | 0 | $ 1,892,000 | $ 1,772,000 | [1] | 1,892,000 | 1,772,000 | |||||||||
Share-based awards retained for taxes (in shares) | (29,112) | (29,112) | |||||||||||||||
Distributions to redeemable NCI ($0.22 per unit) | (592,000) | (592,000) | $ (592,000) | (592,000) | |||||||||||||
Ending balance (in shares) at Mar. 31, 2019 | 120,099,294 | ||||||||||||||||
Ending balance (in shares) at Mar. 31, 2019 | 120,099,294 | 7,109,786 | |||||||||||||||
Ending balance at Mar. 31, 2019 | $ 1,006,092,000 | $ 1,006,092,000 | (60,509,000) | 449,000 | $ 1,006,330,000 | $ 59,822,000 | [1] | $ 1,201,000 | 1,005,129,000 | (56,663,000) | 55,976,000 | 449,000 | |||||
Noncontrolling interest percentage | 5.60% | ||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 121,370,125 | 121,370,125 | 121,370,125 | ||||||||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 121,370,125 | 5,833,318 | |||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 1,014,776,000 | $ 1,014,776,000 | (56,166,000) | 424,000 | $ 1,020,362,000 | $ 50,156,000 | [2] | $ 1,213,000 | 1,019,149,000 | (52,546,000) | 46,536,000 | 424,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income attributable to common shareholders | 48,980,000 | 51,288,000 | 51,288,000 | 48,980,000 | |||||||||||||
Net income attributable to noncontrolling interests | 2,308,000 | 2,308,000 | |||||||||||||||
Common units issued as a result of common shares issued by Urban Edge (in shares) | 30,292 | ||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | (1,000) | 30,000 | $ (31,000) | $ (164,462) | |||||||||||||
Units redeemed for common shares (in shares) | 1,025,836 | (1,025,836) | 1,025,836 | ||||||||||||||
Units redeemed for common shares | $ 8,346,000 | 8,346,000 | $ 8,346,000 | $ 10,000 | 8,336,000 | ||||||||||||
Repurchase of common shares (in shares) | (4,452,223) | ||||||||||||||||
Repurchase of common shares | $ (42,801,000) | (42,801,000) | (42,801,000) | $ (45,000) | (42,756,000) | ||||||||||||
Limited partnership units issued, net | 0 | ||||||||||||||||
Reallocation of noncontrolling interests | (8,346,000) | (8,346,000) | 907,000 | $ (9,253,000) | [2] | 907,000 | (9,253,000) | ||||||||||
Common shares issued (in shares) | 30,292 | ||||||||||||||||
Common shares issued | 1,000 | $ 1,000 | 30,000 | (30,000) | |||||||||||||
Dividends to common shareholders | (26,647,000) | (26,647,000) | |||||||||||||||
Distributions to redeemable NCI | (1,314,000) | (1,314,000) | |||||||||||||||
Distributions to Partners | (27,961,000) | (27,961,000) | |||||||||||||||
Share-based compensation expense | 3,248,000 | 3,248,000 | $ 1,151,000 | $ 2,097,000 | [2] | 1,151,000 | 2,097,000 | ||||||||||
Share-based awards retained for taxes (in shares) | (17,999) | (17,999) | |||||||||||||||
Distributions to redeemable NCI ($0.22 per unit) | $ (328,000) | $ (328,000) | $ (328,000) | (328,000) | |||||||||||||
Ending balance (in shares) at Mar. 31, 2020 | 117,956,031 | 117,956,031 | 117,956,031 | ||||||||||||||
Ending balance (in shares) at Mar. 31, 2020 | 117,956,031 | 4,971,944 | |||||||||||||||
Ending balance at Mar. 31, 2020 | $ 998,223,000 | $ 998,223,000 | $ (32,869,000) | $ 424,000 | $ 987,668,000 | $ 43,000,000 | [2] | $ 1,179,000 | $ 986,489,000 | $ (30,243,000) | $ 40,374,000 | $ 424,000 | |||||
Noncontrolling interest percentage | 4.00% | ||||||||||||||||
|
SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - General and Administrative Expense - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total Share-based compensation expense | $ 3,248 | $ 3,664 |
Restricted share expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total Share-based compensation expense | 260 | 751 |
Stock option expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total Share-based compensation expense | 868 | 1,071 |
LTIP expense(1) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total Share-based compensation expense | 1,183 | 1,208 |
Performance-based LTI expense(2) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total Share-based compensation expense | 915 | 564 |
Deferred share unit (“DSU”) expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total Share-based compensation expense | $ 22 | $ 70 |
MORTGAGES PAYABLE - Additional Information (Details) |
1 Months Ended | 3 Months Ended | ||||||
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Jun. 29, 2019
extension_option
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Mar. 07, 2017
USD ($)
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Mar. 31, 2020
USD ($)
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Mar. 31, 2020
USD ($)
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Mar. 31, 2019
USD ($)
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Apr. 30, 2020
USD ($)
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Dec. 31, 2019
USD ($)
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Jan. 15, 2015
USD ($)
|
|
Debt Instrument [Line Items] | ||||||||
Net carrying amount of real estate collateralizing indebtedness | $ 1,300,000,000 | $ 1,300,000,000 | ||||||
Proceeds from lines of credit | 250,000,000 | $ 0 | ||||||
Amounts drawn under the credit agreement | 250,000,000 | 250,000,000 | $ 0 | |||||
Line of Credit | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Total mortgages payable | 250,000,000 | 250,000,000 | 0 | |||||
Maximum borrowing capacity | $ 600,000,000 | $ 500,000,000 | ||||||
Increase in credit facility | $ 100,000,000 | |||||||
Number of extension options | extension_option | 2 | |||||||
Term of each extension option | 6 months | |||||||
Proceeds from lines of credit | 250,000,000 | |||||||
Remaining borrowing capacity | $ 350,000,000 | $ 350,000,000 | ||||||
Borrowing rate | 2.00% | 2.00% | ||||||
Gross debt issuance costs | $ 3,600,000 | $ 3,600,000 | 3,900,000 | |||||
Line of Credit | Revolving Credit Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Financial covenants, maximum leverage ratio | 0.60 | |||||||
Facility fee | 30.00% | |||||||
Line of Credit | Revolving Credit Facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Financial covenants, minimum fixed charge coverage ratio | 1.5 | |||||||
Facility fee | 15.00% | |||||||
Line of Credit | Revolving Credit Facility | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread on variable rate | 1.05% | |||||||
Line of Credit | Revolving Credit Facility | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread on variable rate | 1.50% | |||||||
Line of Credit | Revolving Credit Facility | LIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread on variable rate | 1.05% | |||||||
First Mortgage | Mortgages | ||||||||
Debt Instrument [Line Items] | ||||||||
Total mortgages payable | 1,626,443,000 | $ 1,626,443,000 | 1,556,248,000 | |||||
First Mortgage | Mortgages | Fixed rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Total mortgages payable | $ 1,457,292,000 | $ 1,457,292,000 | $ 1,386,748,000 | |||||
Subsequent Event | Mortgages | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 129,000,000 |
ACQUISITIONS AND DISPOSITIONS - Aggregate Purchase Price Allocations (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2020
USD ($)
| |
Business Acquisition [Line Items] | |
Land | $ 23,840 |
Buildings and improvements | 140,925 |
Identified intangible assets | 14,031 |
Identified intangible liabilities | (4,534) |
Debt premium | (6,973) |
Total Purchase Price | $ 167,289 |
Weighted average useful life | 8 years 10 months 24 days |
Weighted average related liabilities | 11 years 3 months 18 days |
Kingswood Center | |
Business Acquisition [Line Items] | |
Land | $ 15,690 |
Buildings and improvements | 76,766 |
Identified intangible assets | 9,263 |
Identified intangible liabilities | (4,534) |
Debt premium | (6,973) |
Total Purchase Price | 90,212 |
Kingswood Crossing | |
Business Acquisition [Line Items] | |
Land | 8,150 |
Buildings and improvements | 64,159 |
Identified intangible assets | 4,768 |
Identified intangible liabilities | 0 |
Debt premium | 0 |
Total Purchase Price | $ 77,077 |
Label | Element | Value |
---|---|---|
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,918,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,918,000) |
Subsidiaries [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,918,000) |
Subsidiaries [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,918,000) |
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment charges recognized | $ 0 | $ 3,958 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment charges recognized | $ 4,000 |
MORTGAGES PAYABLE (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Mortgages Payable | The following is a summary of mortgages payable as of March 31, 2020 and December 31, 2019.
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Schedule of Principal Repayments | As of March 31, 2020, the principal repayments of the Company’s total outstanding debt for the next five years and thereafter are as follows:
(1) Remainder of 2020. |
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES |
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES The following is a summary of the composition of accounts payable, accrued expenses other liabilities in the consolidated balance sheets:
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EARNINGS PER SHARE AND UNIT |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE AND UNIT | EARNINGS PER SHARE AND UNIT Urban Edge Earnings per Share We have calculated earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of Urban Edge common shares and participating securities is calculated according to dividends declared and participating rights in undistributed earnings. Restricted shares issued pursuant to our share-based compensation program are considered participating securities, and as such have non-forfeitable rights to receive dividends. The following table sets forth the computation of our basic and diluted earnings per share:
(1) For the three months ended March 31, 2020, the effect of the redemption of OP and LTIP units for Urban Edge common shares would have an anti-dilutive effect on the calculation of diluted EPS. Accordingly, the impact of such redemption has not been included in the determination of diluted EPS for this period. Operating Partnership Earnings per Unit The following table sets forth the computation of basic and diluted earnings per unit:
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EARNINGS PER SHARE AND UNIT (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Earnings per Share and Unit | The following table sets forth the computation of our basic and diluted earnings per share:
(1) For the three months ended March 31, 2020, the effect of the redemption of OP and LTIP units for Urban Edge common shares would have an anti-dilutive effect on the calculation of diluted EPS. Accordingly, the impact of such redemption has not been included in the determination of diluted EPS for this period. Operating Partnership Earnings per Unit The following table sets forth the computation of basic and diluted earnings per unit:
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PREPAID EXPENSES AND OTHER ASSETS (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Composition of Prepaid Expenses and Other Assets | The following is a summary of the composition of the prepaid expenses and other assets in the consolidated balance sheets:
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ACQUISITIONS AND DISPOSITIONS (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Feb. 12, 2020
USD ($)
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Mar. 31, 2020
USD ($)
property
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Mar. 31, 2019
USD ($)
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Mar. 15, 2020
USD ($)
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Business Acquisition [Line Items] | ||||
Purchase price | $ 167,289 | |||
Number of acquisitions completed by the Company | 0 | |||
Gain on sale of real estate | $ 39,775 | $ 16,953 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Business Acquisition [Line Items] | ||||
Number of disposed properties | property | 3 | |||
Aggregate sale price of disposed properties | $ 58,100 | |||
Gain on sale of real estate | (39,800) | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Chicopee, MA | ||||
Business Acquisition [Line Items] | ||||
Gain on sale of real estate | (17,000) | |||
Disposal group, including discontinued operation, consideration | $ 18,200 | |||
Kingswood Center And Kingswood Crossing | ||||
Business Acquisition [Line Items] | ||||
Purchase price | 167,300 | |||
Purchase price of real estate property acquired | 167,289 | |||
Kingswood Center | ||||
Business Acquisition [Line Items] | ||||
Purchase price | 90,212 | |||
Purchase price of real estate property acquired | $ 90,212 | |||
Kingswood Crossing | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 77,077 | |||
Purchase price of real estate property acquired | $ 77,077 | |||
Reverse Section 1031 like-kind exchange, term | 180 days | |||
Mortgages | Kingswood Center | ||||
Business Acquisition [Line Items] | ||||
Mortgage loan related to property sales | $ 65,500 |
ACQUISITIONS AND DISPOSITIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Acquisitions During the three months ended March 31, 2019, no acquisitions were completed by the Company. During the three months ended March 31, 2020, we closed on the following acquisitions:
(1) The total purchase price for the properties acquired during the three months ended March 31, 2020 includes $2.5 million of transaction costs incurred related to the transactions. During the quarter, the Company acquired Kingswood Center and Kingswood Crossing for $167.3 million, including transaction costs. The properties are located along Kings Highway in the Midwood neighborhood of Brooklyn, NY and were funded via 1031 exchanges using cash proceeds from dispositions. Additionally, as part of the acquisition of Kingswood Center, the Company assumed a $65.5 million mortgage, which matures in 2028. A portion of the acquisition of Kingswood Crossing was completed as a reverse Section 1031 like-kind exchange. We entered into a reverse Section 1031 like-kind exchange agreement with third-party intermediaries, which, for a maximum of 180 days, allowed us to defer for tax purposes, gains on the sale of other properties identified and sold within the period. Until the earlier of the termination of the exchange agreements or 180 days after the respective acquisition dates, the third-party intermediaries are the legal owner of the properties; however, we controlled the activities that most significantly impact each property and retained all of the economic benefits and risks associated with each property. Therefore, at the date of acquisition, we determined that we were the primary beneficiary of these variable interest entities and consolidated the properties and their operations as of the acquisition date. The aggregate purchase price of the above property acquisitions has been allocated as follows:
(1) As of March 31, 2020, the remaining weighted average amortization periods of the identified intangible assets and identified intangible liabilities acquired were 8.9 years and 11.3 years, respectively. Dispositions During the three months ended March 31, 2020, we disposed of three properties and received proceeds of $58.1 million, net of selling costs, resulting in a $39.8 million net gain on sale of real estate. The sale of all three dispositions were completed as 1031 exchanges with Kingswood Crossing as a result of the sales occurring within 180 days of the Company’s acquisition. On March 15, 2019, we completed the sale of our property in Chicopee, MA for $18.2 million, net of selling costs, resulting in a $17.0 million gain on sale of real estate recognized during the three months ended March 31, 2019.
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LEASES (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES All rental revenue was generated from operating leases for the three months ended March 31, 2020 and March 31, 2019, respectively. The components of rental revenue for the three months ended March 31, 2020 and March 31, 2019 were as follows:
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EARNINGS PER SHARE AND UNIT (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Numerator: | ||
Net income attributable to common shareholders | $ 48,980 | $ 25,537 |
Less: Earnings allocated to unvested participating securities | (34) | (23) |
Net income available for common shareholders - basic | 48,946 | 25,514 |
OP and LTIP units | 0 | 2,245 |
Net income available for common shareholders - dilutive | $ 48,946 | $ 27,759 |
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 120,966 | 116,274 |
Effect of dilutive securities: | ||
Assumed conversion of OP and LTIP units (in shares) | 0 | 10,116 |
Weighted average common shares outstanding - diluted (in shares) | 121,051 | 126,504 |
Earnings per share available to common shareholders: | ||
Earnings per common share - Basic (in dollars per share) | $ 0.40 | $ 0.22 |
Earnings per common share - Diluted (in dollars per share) | $ 0.40 | $ 0.22 |
Urban Edge Properties LP | ||
Numerator: | ||
Net income attributable to common shareholders | $ 51,288 | $ 27,892 |
Less: Earnings allocated to unvested participating securities | (34) | (25) |
Net income available for common shareholders - basic | $ 51,254 | $ 27,867 |
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 125,844 | 126,391 |
Effect of dilutive securities: | ||
Stock options using treasure stock method and restricted stock awards (in shares) | 85 | 114 |
Assumed conversion of OP and LTIP units (in shares) | 826 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 126,755 | 126,505 |
Earnings per share available to common shareholders: | ||
Earnings per common share - Basic (in dollars per share) | $ 0.41 | $ 0.22 |
Earnings per common share - Diluted (in dollars per share) | $ 0.40 | $ 0.22 |
Restricted share expense | ||
Effect of dilutive securities: | ||
Stock options using treasure stock method and restricted stock awards (in shares) | 85 | 114 |
FAIR VALUE MEASUREMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 622,667 | $ 432,954 | $ 416,668 | $ 440,430 |
Carrying Amount | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 622,667 | 432,954 | ||
Unsecured credit facility | 250,000 | |||
Carrying Amount | Mortgages | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Mortgages payable | 1,626,443 | 1,556,248 | ||
Unamortized debt issuance costs | (9,600) | (10,100) | ||
Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Unsecured credit facility | 250,000 | |||
Fair Value | Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 622,667 | 432,954 | ||
Fair Value | Level 2 | Mortgages | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Mortgages payable | $ 1,627,178 | $ 1,590,503 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Accumulated amortization, identified intangible assets | $ 32,359 | $ 30,942 |
Accumulated amortization, deferred leasing costs | 16,291 | 16,560 |
Accumulated amortization, deferred financing costs | 4,008 | 3,765 |
Accumulated amortization, identified intangible liabilities | $ 65,074 | $ 62,610 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares, outstanding (in shares) | 117,956,031 | 121,370,125 |
Urban Edge Properties LP | ||
Allowance for doubtful accounts, tenant and other receivables | $ 0 | $ 0 |
Allowance for doubtful accounts, receivables arising from the straight-lining of rents | 0 | 0 |
Accumulated amortization, identified intangible assets | 32,359 | 30,942 |
Accumulated amortization, deferred leasing costs | 16,291 | 16,560 |
Accumulated amortization, deferred financing costs | 4,008 | 3,765 |
Accumulated amortization, identified intangible liabilities | $ 65,074 | $ 62,610 |
Common stock, shares, outstanding (in shares) | 117,956,031 | 121,370,125 |
Limited Partners, units outstanding (in units) | 4,971,944 | 5,833,318 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 51,288 | $ 27,892 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 23,271 | 21,747 |
Casualty and impairment loss | 0 | 3,958 |
Gain on sale of real estate | (39,775) | (16,953) |
Amortization of deferred financing costs | 706 | 720 |
Amortization of below market leases, net | (2,249) | (2,360) |
Noncash lease expense | 1,806 | 2,014 |
Straight-lining of rent | (674) | (22) |
Share-based compensation expense | 3,248 | 3,664 |
Credit losses related to operating lease receivables | 1,424 | 485 |
Change in operating assets and liabilities: | ||
Tenant and other receivables | 1,134 | (10,864) |
Deferred leasing costs | (636) | (1,201) |
Prepaid expenses and other assets | (9,786) | 93 |
Lease liabilities | (1,578) | (1,708) |
Accounts payable, accrued expenses and other liabilities | (7,383) | 1,962 |
Net cash provided by operating activities | 20,796 | 29,427 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Real estate development and capital improvements | 6,538 | 26,696 |
Acquisition of real estate | 92,132 | 0 |
Proceeds from sale of operating properties | 54,402 | 18,202 |
Net cash used in investing activities | (44,268) | (8,494) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt repayments | (2,076) | (1,144) |
Dividends to common shareholders | (26,647) | (26,390) |
Distributions to redeemable noncontrolling interests | (1,314) | (1,576) |
Taxes withheld for vested restricted shares | (328) | (592) |
Borrowings under unsecured credit facility | 250,000 | 0 |
Repurchase of common shares | (38,656) | 0 |
Proceeds related to the issuance of common shares | 0 | 35 |
Net cash provided by (used in) financing activities | 180,979 | (29,667) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 157,507 | (8,734) |
Cash and cash equivalents and restricted cash at beginning of period | 485,136 | 457,522 |
Cash and cash equivalents and restricted cash at end of period | 642,643 | 448,788 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash payments for interest, net of amounts capitalized of $125 and $565, respectively | 16,291 | 16,122 |
Cash payments for income taxes | 6 | 7 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures included in accounts payable and accrued expenses | 2,013 | 15,559 |
Write-off of fully depreciated and impaired assets | 5,225 | 7,106 |
Acquisition of real estate through the assumption of debt | 72,473 | 0 |
Accrued common share repurchase | 4,145 | 0 |
Cash and cash equivalents at beginning of period | 432,954 | 440,430 |
Cash and cash equivalents at end of period | 622,667 | 416,668 |
Restricted cash at beginning of period | 52,182 | 17,092 |
Restricted cash at end of period | 19,976 | 32,120 |
Cash and cash equivalents and restricted cash at beginning/end of period | 642,643 | 448,788 |
Urban Edge Properties LP | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 51,288 | 27,892 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 23,271 | 21,747 |
Casualty and impairment loss | 0 | 3,958 |
Gain on sale of real estate | (39,775) | (16,953) |
Amortization of deferred financing costs | 706 | 720 |
Amortization of below market leases, net | (2,249) | (2,360) |
Noncash lease expense | 1,806 | 2,014 |
Straight-lining of rent | (674) | (22) |
Share-based compensation expense | 3,248 | 3,664 |
Credit losses related to operating lease receivables | 1,424 | 485 |
Change in operating assets and liabilities: | ||
Tenant and other receivables | 1,134 | (10,864) |
Deferred leasing costs | (636) | (1,201) |
Prepaid expenses and other assets | (9,786) | 93 |
Lease liabilities | (1,578) | (1,708) |
Accounts payable, accrued expenses and other liabilities | (7,383) | 1,962 |
Net cash provided by operating activities | 20,796 | 29,427 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Real estate development and capital improvements | 6,538 | 26,696 |
Acquisition of real estate | 92,132 | 0 |
Proceeds from sale of operating properties | 54,402 | 18,202 |
Net cash used in investing activities | (44,268) | (8,494) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt repayments | (2,076) | (1,144) |
Distributions to partners | (27,961) | (27,966) |
Taxes withheld for vested restricted shares | (328) | (592) |
Borrowings under unsecured credit facility | 250,000 | 0 |
Repurchase of common shares | (38,656) | 0 |
Proceeds related to the issuance of common shares | 0 | 35 |
Net cash provided by (used in) financing activities | 180,979 | (29,667) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 157,507 | (8,734) |
Cash and cash equivalents and restricted cash at beginning of period | 485,136 | 457,522 |
Cash and cash equivalents and restricted cash at end of period | 642,643 | 448,788 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash payments for interest, net of amounts capitalized of $125 and $565, respectively | 16,291 | 16,122 |
Cash payments for income taxes | 6 | 7 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures included in accounts payable and accrued expenses | 2,013 | 15,559 |
Write-off of fully depreciated and impaired assets | 5,225 | 7,106 |
Acquisition of real estate through the assumption of debt | 72,473 | 0 |
Accrued common share repurchase | 4,145 | 0 |
Cash and cash equivalents at beginning of period | 432,954 | 440,430 |
Cash and cash equivalents at end of period | 622,667 | 416,668 |
Restricted cash at beginning of period | 52,182 | 17,092 |
Restricted cash at end of period | 19,976 | 32,120 |
Cash and cash equivalents and restricted cash at beginning/end of period | $ 485,136 | $ 457,522 |
INTEREST AND DEBT EXPENSE (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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Other Income and Expenses [Abstract] | ||
Interest expense | $ 16,469 | $ 15,816 |
Amortization of deferred financing costs | 706 | 720 |
Total Interest and debt expense | $ 17,175 | $ 16,536 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) |
3 Months Ended | 12 Months Ended |
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Mar. 31, 2020 |
Dec. 31, 2019 |
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Minimum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 1 year | |
Maximum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 40 years |
SHARE-BASED COMPENSATION (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Share-based Compensation Expense | Share-based compensation expense, which is included in general and administrative expenses in our consolidated statements of income, is summarized as follows:
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instrument Carrying Amounts and Fair Values | The table below summarizes the carrying amounts and fair value of these financial instruments as of March 31, 2020 and December 31, 2019.
(1) Carrying amounts exclude unamortized debt issuance costs of $9.6 million and $10.1 million as of March 31, 2020 and December 31, 2019, respectively.
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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES | IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES Our identified intangible assets (acquired in-place and above-market leases) and liabilities (acquired below-market leases), net of accumulated amortization were $59.8 million and $130.8 million, respectively, as of March 31, 2020 and $48.1 million and $128.8 million, respectively, as of December 31, 2019. Amortization of acquired below-market leases, net of acquired above-market leases resulted in additional rental income of $2.2 million for the three months ended March 31, 2020 and $2.4 million for the same period in 2019. Amortization of acquired in-place leases inclusive of customer relationships resulted in additional depreciation and amortization expense of $2.0 million for the three months ended March 31, 2020, and $2.1 million for the same period in 2019. The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2020 and the five succeeding years:
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Financial Assets and Liabilities Measured at Fair Value on a Recurring or Non-Recurring Basis There were no financial assets or liabilities measured at fair value on a recurring or non-recurring basis as of March 31, 2020 and December 31, 2019. Financial Assets and Liabilities not Measured at Fair Value Financial assets and liabilities that are not measured at fair value on the consolidated balance sheets include cash and cash equivalents, mortgages payable and unsecured credit facility borrowings. Cash and cash equivalents are carried at cost, which approximates fair value. The fair values of our mortgages payable and unsecured credit facility borrowings are calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist. The fair value of cash and cash equivalents is classified as Level 1 and the fair values of mortgages payable and unsecured credit facility borrowings are classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments as of March 31, 2020 and December 31, 2019.
(1) Carrying amounts exclude unamortized debt issuance costs of $9.6 million and $10.1 million as of March 31, 2020 and December 31, 2019, respectively. Nonfinancial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We assess the carrying value of our properties for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Such events and changes include macroeconomic conditions, including those caused by global pandemics, such as COVID-19, which may result in property operational disruption and indicate that the carrying amount may not be recoverable. No impairment charges were recognized during the three months ended March 31, 2020. During the three months ended March 31, 2019, we recognized a $4.0 million impairment charge on our property in Westfield, NJ as a result of the loss of a significant tenant at the property. The valuation of our property in Westfield, NJ was based on comparable property transactions in the property’s surrounding area. The Company believes the inputs utilized to measure the fair value was reasonable in the context of applicable market conditions, however due to the significance of the unobservable inputs in the overall fair value measures, including market conditions and expectations for growth, the Company determined that such fair value measurement is classified as Level 3. The impairment charge is included as an expense under casualty and impairment loss on our consolidated statement of income for the three months ended March 31, 2019.
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COMMITMENTS AND CONTINGENCIES (Details) ft² in Millions |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Apr. 29, 2020
USD ($)
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Mar. 31, 2020
USD ($)
ft²
mall
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Mar. 31, 2019
USD ($)
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Dec. 31, 2019
USD ($)
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Loss Contingencies [Line Items] | ||||
Real estate redevelopment in process | $ 52,800,000 | |||
Estimated cost to complete development and redevelopment projects | 16,000,000.0 | |||
Delayed construction | 300,000,000 | |||
Insurance coverage, general liability insurance, limit per occurrence | 200,000,000 | |||
Insurance coverage, rental value insurance, limit per occurrence | 500,000,000 | |||
Insurance coverage, pollution insurance, limit per occurence | 50,000,000 | |||
Reversal of provision for doubtful accounts | (1,424,000) | $ (485,000) | ||
Deferred lease expense | $ 1,000,000.0 | $ 2,700,000 | ||
Area of real estate property (in sq ft) | ft² | 15.1 | |||
Puerto Rico | ||||
Loss Contingencies [Line Items] | ||||
Number of malls | mall | 2 | |||
Puerto Rico | Hurricane Maria | ||||
Loss Contingencies [Line Items] | ||||
Insurance coverage, rental value insurance, limit per occurrence | $ 147,000,000 | |||
Subsequent Event | Pandemic-Related Contingencies | ||||
Loss Contingencies [Line Items] | ||||
Leasable area, gross, percent | 55.00% | |||
Rents received, percent | 56.00% | |||
Proceeds from Rents Received | $ 15,800,000 |
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Real estate, at cost: | ||
Land | $ 529,809 | $ 515,621 |
Buildings and improvements | 2,336,405 | 2,197,076 |
Construction in progress | 28,629 | 28,522 |
Furniture, fixtures and equipment | 7,016 | 7,566 |
Total | 2,901,859 | 2,748,785 |
Accumulated depreciation and amortization | (686,139) | (671,946) |
Real estate, net | 2,215,720 | 2,076,839 |
Right-of-use assets | 79,962 | 81,768 |
Cash and cash equivalents | 622,667 | 432,954 |
Restricted cash | 19,976 | 52,182 |
Tenant and other receivables | 19,006 | 21,565 |
Receivable arising from the straight-lining of rents | 74,348 | 73,878 |
Identified intangible assets, net of accumulated amortization of $32,359 and $30,942, respectively | 59,810 | 48,121 |
Deferred leasing costs, net of accumulated amortization of $16,291 and $16,560, respectively | 21,105 | 21,474 |
Deferred financing costs, net of accumulated amortization of $4,008 and $3,765, respectively | 3,634 | 3,877 |
Prepaid expenses and other assets | 27,372 | 33,700 |
Total assets | 3,143,600 | 2,846,358 |
Liabilities: | ||
Mortgages payable, net | 1,616,853 | 1,546,195 |
Unsecured credit facility borrowings | 250,000 | 0 |
Lease liabilities | 78,334 | 79,913 |
Accounts payable, accrued expenses and other liabilities | 69,350 | 76,644 |
Identified intangible liabilities, net of accumulated amortization of $65,074 and $62,610, respectively | 130,840 | 128,830 |
Total liabilities | 2,145,377 | 1,831,582 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common shares: $0.01 par value; 500,000,000 shares authorized and 117,956,031 and 121,370,125 shares issued and outstanding, respectively | 1,179 | 1,213 |
Additional paid-in capital | 986,489 | 1,019,149 |
Accumulated deficit | (30,243) | (52,546) |
Noncontrolling interests: | ||
Operating partnership | 40,374 | 46,536 |
Partners’ capital: | ||
Consolidated subsidiaries | 424 | 424 |
Total equity | 998,223 | 1,014,776 |
Total liabilities and equity | 3,143,600 | 2,846,358 |
Urban Edge Properties LP | ||
Real estate, at cost: | ||
Land | 529,809 | 515,621 |
Buildings and improvements | 2,336,405 | 2,197,076 |
Construction in progress | 28,629 | 28,522 |
Furniture, fixtures and equipment | 7,016 | 7,566 |
Total | 2,901,859 | 2,748,785 |
Accumulated depreciation and amortization | (686,139) | (671,946) |
Real estate, net | 2,215,720 | 2,076,839 |
Right-of-use assets | 79,962 | 81,768 |
Cash and cash equivalents | 622,667 | 432,954 |
Restricted cash | 19,976 | 52,182 |
Tenant and other receivables | 19,006 | 21,565 |
Receivable arising from the straight-lining of rents | 74,348 | 73,878 |
Identified intangible assets, net of accumulated amortization of $32,359 and $30,942, respectively | 59,810 | 48,121 |
Deferred leasing costs, net of accumulated amortization of $16,291 and $16,560, respectively | 21,105 | 21,474 |
Deferred financing costs, net of accumulated amortization of $4,008 and $3,765, respectively | 3,634 | 3,877 |
Prepaid expenses and other assets | 27,372 | 33,700 |
Total assets | 3,143,600 | 2,846,358 |
Liabilities: | ||
Mortgages payable, net | 1,616,853 | 1,546,195 |
Unsecured credit facility borrowings | 250,000 | 0 |
Lease liabilities | 78,334 | 79,913 |
Accounts payable, accrued expenses and other liabilities | 69,350 | 76,644 |
Identified intangible liabilities, net of accumulated amortization of $65,074 and $62,610, respectively | 130,840 | 128,830 |
Total liabilities | 2,145,377 | 1,831,582 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Accumulated deficit | (32,869) | (56,166) |
Partners’ capital: | ||
General partner: 117,956,031 and 121,370,125 units outstanding, respectively | 987,668 | 1,020,362 |
Limited partners: 4,971,944 and 5,833,318 units outstanding, respectively | 43,000 | 50,156 |
Total partners’ capital | 997,799 | 1,014,352 |
Consolidated subsidiaries | 424 | 424 |
Total equity | 998,223 | 1,014,776 |
Total liabilities and equity | $ 3,143,600 | $ 2,846,358 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Distributions to redeemable NCI (in dollars per unit) | $ 0.22 | $ 0.22 |
Accumulated Earnings (Deficit) | Urban Edge Properties LP | ||
Dividends on common shares (in dollars per share) | 0.22 | 0.22 |
Accumulated Earnings (Deficit) | ||
Dividends on common shares (in dollars per share) | 0.22 | 0.22 |
Operating Partnership | ||
Distributions to redeemable NCI (in dollars per unit) | $ 0.22 | $ 0.22 |
Operating Partnership | Limited Partners | Urban Edge Properties LP | ||
Noncontrolling interest percentage | 4.00% | 5.60% |
EQUITY AND NONCONTROLLING INTEREST (Details) - USD ($) |
1 Months Ended | 2 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|---|
Jan. 15, 2015 |
Apr. 29, 2020 |
Apr. 29, 2020 |
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
|
Noncontrolling Interest [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 200,000,000 | |||||
Repurchase of common shares (in shares) | 4,452,223 | |||||
Treasury stock acquired, average cost per share (in dollars per share) | $ 9.61 | |||||
Repurchase of common shares | $ 42,801,000 | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Distributions to redeemable NCI (in dollars per unit) | $ 0.22 | $ 0.22 | ||||
Common limited partnership units issued (in shares) | 5,700,000 | |||||
OP Units | ||||||
Noncontrolling Interest [Line Items] | ||||||
Conversion to stock, conversion rate | 1 | |||||
LTIP Units | ||||||
Noncontrolling Interest [Line Items] | ||||||
Award vesting period | 2 years | |||||
Conversion to stock, conversion rate | 1 | |||||
Subsequent Event | ||||||
Noncontrolling Interest [Line Items] | ||||||
Repurchase of common shares (in shares) | 1,400,000 | 5,900,000 | ||||
Treasury stock acquired, average cost per share (in dollars per share) | $ 7.98 | $ 9.22 | ||||
Repurchase of common shares | $ 11,300,000 | $ 54,100,000 | ||||
Operating Partnership | OP Units | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling interest percentage | 4.50% | |||||
Walnut Creek (Mt. Diablo), CA | Noncontrolling Interest | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling interest percentage | 5.00% | |||||
Vornado Realty L.P. | Operating Partnership | Parent | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling interest percentage | 96.00% | |||||
Vornado Realty L.P. | Vornado Realty L.P. | Parent | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling interest percentage | 5.40% |
LEASES - Components of Rental Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Leases [Abstract] | ||
Fixed lease revenue | $ 69,097 | $ 68,484 |
Variable lease revenue | 23,903 | 28,824 |
Total rental revenue | $ 93,000 | $ 97,308 |
MORTGAGES PAYABLE - Summary of Mortgages Payable (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
|
Debt Instrument [Line Items] | |||
Total mortgages payable, net of unamortized debt issuance costs | $ 1,866,853 | $ 1,546,195 | |
Mortgages | First Mortgage | |||
Debt Instrument [Line Items] | |||
Total mortgages payable | 1,626,443 | 1,556,248 | |
Unamortized debt issuance costs | (9,590) | (10,053) | |
Total mortgages payable, net of unamortized debt issuance costs | 1,616,853 | 1,546,195 | |
Mortgages | First Mortgage | Variable rate | |||
Debt Instrument [Line Items] | |||
Total mortgages payable | $ 169,151 | 169,500 | |
Mortgages | First Mortgage | Variable rate | The Plaza at Cherry Hill | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.18% | ||
Total mortgages payable | $ 28,930 | 28,930 | |
Mortgages | First Mortgage | Variable rate | The Plaza at Cherry Hill | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate spread on variable rate | 160.00% | 160.00% | |
Mortgages | First Mortgage | Variable rate | Westfield - One Lincoln Plaza | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.18% | ||
Total mortgages payable | $ 4,730 | 4,730 | |
Mortgages | First Mortgage | Variable rate | Westfield - One Lincoln Plaza | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate spread on variable rate | 160.00% | 160.00% | |
Mortgages | First Mortgage | Variable rate | The Plaza at Woodbridge | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.18% | ||
Total mortgages payable | $ 55,340 | 55,340 | |
Mortgages | First Mortgage | Variable rate | The Plaza at Woodbridge | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate spread on variable rate | 160.00% | 160.00% | |
Mortgages | First Mortgage | Variable rate | Hudson Commons | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.48% | ||
Total mortgages payable | $ 28,862 | 29,000 | |
Mortgages | First Mortgage | Variable rate | Hudson Commons | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate spread on variable rate | 190.00% | ||
Mortgages | First Mortgage | Variable rate | Watchung, NJ | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.48% | ||
Total mortgages payable | $ 26,871 | 27,000 | |
Mortgages | First Mortgage | Variable rate | Watchung, NJ | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate spread on variable rate | 190.00% | ||
Mortgages | First Mortgage | Variable rate | Bronx (1750-1780 Gun Hill Road), NY | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.48% | ||
Total mortgages payable | $ 24,418 | 24,500 | |
Mortgages | First Mortgage | Variable rate | Bronx (1750-1780 Gun Hill Road), NY | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate spread on variable rate | 190.00% | ||
Mortgages | First Mortgage | Fixed rate | |||
Debt Instrument [Line Items] | |||
Total mortgages payable | $ 1,457,292 | 1,386,748 | |
Mortgages | First Mortgage | Fixed rate | Montehiedra Town Center | Senior Loan | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.33% | ||
Total mortgages payable | $ 82,876 | 83,202 | |
Mortgages | First Mortgage | Fixed rate | Montehiedra Town Center | Junior Loan | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.00% | ||
Total mortgages payable | $ 30,000 | 30,000 | |
Mortgages | First Mortgage | Fixed rate | Bergen Town Center | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.56% | ||
Total mortgages payable | $ 300,000 | 300,000 | |
Mortgages | First Mortgage | Fixed rate | Shops at Bruckner | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.90% | ||
Total mortgages payable | $ 10,823 | 10,978 | |
Mortgages | First Mortgage | Fixed rate | Hudson Mall | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.07% | ||
Total mortgages payable | $ 23,445 | 23,625 | |
Effective interest rate | 3.85% | ||
Unamortized debt premium | $ 900 | 1,000 | |
Mortgages | First Mortgage | Fixed rate | Yonkers Gateway Center | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.16% | ||
Total mortgages payable | $ 29,717 | 30,122 | |
Effective interest rate | 3.70% | ||
Unamortized debt premium | $ 500 | 600 | |
Mortgages | First Mortgage | Fixed rate | Las Catalinas | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.43% | ||
Total mortgages payable | $ 128,822 | 129,335 | |
Mortgages | First Mortgage | Fixed rate | Brick, NJ | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.87% | ||
Total mortgages payable | $ 50,000 | 50,000 | |
Mortgages | First Mortgage | Fixed rate | North Plainfield | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.99% | ||
Total mortgages payable | $ 25,100 | 25,100 | |
Mortgages | First Mortgage | Fixed rate | Middletown, NJ | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.78% | ||
Total mortgages payable | $ 31,400 | 31,400 | |
Mortgages | First Mortgage | Fixed rate | Rockaway | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.78% | ||
Total mortgages payable | $ 27,800 | 27,800 | |
Mortgages | First Mortgage | Fixed rate | East Hanover (200 - 240 Route 10 West), NJ | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.03% | ||
Total mortgages payable | $ 63,000 | 63,000 | |
Mortgages | First Mortgage | Fixed rate | North Bergen (Tonnelle Avenue), NJ | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.18% | ||
Total mortgages payable | $ 100,000 | 100,000 | |
Mortgages | First Mortgage | Fixed rate | Manchester Plaza | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.32% | ||
Total mortgages payable | $ 12,500 | 12,500 | |
Mortgages | First Mortgage | Fixed rate | Millburn | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.97% | ||
Total mortgages payable | $ 23,694 | 23,798 | |
Mortgages | First Mortgage | Fixed rate | Totowa, NJ | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.33% | ||
Total mortgages payable | $ 50,800 | 50,800 | |
Mortgages | First Mortgage | Fixed rate | Woodbridge Commons | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.36% | ||
Total mortgages payable | $ 22,100 | 22,100 | |
Mortgages | First Mortgage | Fixed rate | East Brunswick, NJ | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.38% | ||
Total mortgages payable | $ 63,000 | 63,000 | |
Mortgages | First Mortgage | Fixed rate | East Rutherford, NJ | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.49% | ||
Total mortgages payable | $ 23,000 | 23,000 | |
Mortgages | First Mortgage | Fixed rate | Brooklyn (Kingswood Center) | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.07% | ||
Total mortgages payable | $ 72,356 | 0 | |
Effective interest rate | 3.44% | ||
Unamortized debt premium | $ 6,900 | ||
Mortgages | First Mortgage | Fixed rate | Hackensack, NJ | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.36% | ||
Total mortgages payable | $ 66,400 | 66,400 | |
Mortgages | First Mortgage | Fixed rate | Marlton, NJ | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.86% | ||
Total mortgages payable | $ 37,400 | 37,400 | |
Mortgages | First Mortgage | Fixed rate | East Hanover Warehouses | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.09% | ||
Total mortgages payable | $ 40,700 | 40,700 | |
Mortgages | First Mortgage | Fixed rate | Union (2445 Springfield Avenue), NJ | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.01% | ||
Total mortgages payable | $ 45,600 | 45,600 | |
Mortgages | First Mortgage | Fixed rate | Freeport (437 East Sunrise Highway), NY | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.07% | ||
Total mortgages payable | $ 43,100 | 43,100 | |
Mortgages | First Mortgage | Fixed rate | Garfield, NJ | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.14% | ||
Total mortgages payable | $ 40,300 | 40,300 | |
Mortgages | First Mortgage | Fixed rate | Mount Kisco (Target) | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.40% | ||
Total mortgages payable | $ 13,359 | 13,488 | |
Unamortized debt discount | (900) | ||
Effective interest rate | 7.30% | ||
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.00% | ||
Total mortgages payable | $ 250,000 | 0 | |
Total mortgages payable, net of unamortized debt issuance costs | $ 250,000 | $ 0 | |
Revolving Credit Facility | Line of Credit | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate spread on variable rate | 1.05% |
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