10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from __________to__________

Commission File Number: 001-36523 (Urban Edge Properties)

Commission File Number: 333-212951-01 (Urban Edge Properties LP)

URBAN EDGE PROPERTIES

URBAN EDGE PROPERTIES LP

(Exact name of Registrant as specified in its charter)

Maryland	(Urban Edge Properties)		47-6311266
Delaware	(Urban Edge Properties LP)		36-4791544
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
888 Seventh Avenue	New York	New York	10019
(Address of Principal Executive Offices)			(Zip Code)

Registrant’s telephone number including area code:		(212)	956-2556
Securities registered pursuant to Section 12(b) of the Act:
Title of class	Trading symbol(s)	Name of each exchange on which registered
Common shares of beneficial interest, par value $0.01 per share	UE	The New York Stock Exchange

_______________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

        Urban Edge Properties    Yes x   NO o         Urban Edge Properties LP     Yes x   NO o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  

        Urban Edge Properties    Yes  x   NO o         Urban Edge Properties LP     Yes x   NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Urban Edge Properties:

Large Accelerated Filer x Accelerated Filer ☐ Non-Accelerated Filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐

Urban Edge Properties LP:

Large Accelerated Filer ☐ Accelerated Filer ☐ Non-Accelerated Filer x Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

        Urban Edge Properties o                   Urban Edge Properties LP o   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

        Urban Edge Properties    YES ☐ NO x         Urban Edge Properties LP     YES ☐  NO x

As of April 29, 2022, Urban Edge Properties had 117,427,382 common shares outstanding.

URBAN EDGE PROPERTIES AND URBAN EDGE PROPERTIES LP

QUARTERLY REPORT ON FORM 10-Q

QUARTER ENDED MARCH 31, 2022

TABLE OF CONTENTS

	PART I
Item 1.	Financial Statements
	Consolidated Financial Statements of Urban Edge Properties:
	Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 (unaudited)	1
	Consolidated Statements of Income for the Three Months Ended March 31, 2022 and 2021 (unaudited)	2
	Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2022 and 2021 (unaudited)	3
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021 (unaudited)	4
	Consolidated Financial Statements of Urban Edge Properties LP:
	Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 (unaudited)	6
	Consolidated Statements of Income for the Three Months Ended March 31, 2022 and 2021 (unaudited)	7
	Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2022 and 2021 (unaudited)	8
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021 (unaudited)	9
	Urban Edge Properties and Urban Edge Properties LP
	Notes to Consolidated Financial Statements (unaudited)	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	33
Item 4.	Controls and Procedures	34
	PART II
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	36
Item 6.	Exhibits	36
	Signatures	37

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2022 of Urban Edge Properties and Urban Edge Properties LP. Unless stated otherwise or the context otherwise requires, references to “UE” and “Urban Edge” mean Urban Edge Properties, a Maryland real estate investment trust (“REIT”), and references to “UELP” and the “Operating Partnership” mean Urban Edge Properties LP, a Delaware limited partnership. References to the “Company,” “we,” “us” and “our” mean collectively UE, UELP and those entities/subsidiaries consolidated by UE.

UELP is the entity through which we conduct substantially all of our business and own, either directly or through subsidiaries, substantially all of our assets. UE is the sole general partner and also a limited partner of UELP. As the sole general partner of UELP, UE has exclusive control of UELP’s day-to-day management.

As of March 31, 2022, UE owned an approximate 95.9% ownership interest in UELP. The remaining approximate 4.1% interest is owned by other limited partners. The other limited partners of UELP are members of management, our Board of Trustees and contributors of property interests acquired. Under the limited partnership agreement of UELP, unitholders may present their common units of UELP for redemption at any time (subject to restrictions agreed upon at the time of issuance of the units that may restrict such right for a period of time). Upon presentation of a common unit for redemption, UELP must redeem the unit for cash equal to the then value of a share of UE’s common shares, as defined by the limited partnership agreement. In lieu of cash redemption by UELP, however, UE may elect to acquire any common units so tendered by issuing common shares of UE in exchange for the common units. If UE so elects, its common shares will be exchanged for common units on a one-for-one basis. This one-for-one exchange ratio is subject to specified adjustments to prevent dilution. UE generally expects that it will elect to issue its common shares in connection with each such presentation for redemption rather than having UELP pay cash. With each such exchange or redemption, UE’s percentage ownership in UELP will increase. In addition, whenever UE issues common shares other than to acquire common units of UELP, UE must contribute any net proceeds it receives to UELP and UELP must issue to UE an equivalent number of common units of UELP. This structure is commonly referred to as an umbrella partnership REIT, or UPREIT.

The Company believes that combining the quarterly reports on Form 10-Q of UE and UELP into this single report provides the following benefits:

•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.

The Company believes it is important to understand the few differences between UE and UELP in the context of how UE and UELP operate as a consolidated company. The financial results of UELP are consolidated into the financial statements of UE. UE does not have any other significant assets, liabilities or operations, other than its investment in UELP, nor does it have employees of its own. UELP, not UE, generally executes all significant business relationships other than transactions involving the securities of UE. UELP holds substantially all of the assets of UE and retains the ownership interests in the Company's joint ventures. UELP conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for the net proceeds from equity offerings by UE, which are contributed to the capital of UELP in exchange for units of limited partnership in UELP, as applicable, UELP generates all remaining capital required by the Company’s business. These sources may include working capital, net cash provided by operating activities, borrowings under the revolving credit agreement, the issuance of secured and unsecured debt and equity securities and proceeds received from the disposition of certain properties.

Shareholders’ equity, partners’ capital and noncontrolling interests are the main areas of difference between the consolidated financial statements of UE and UELP. The limited partners of UELP are accounted for as partners’ capital in UELP’s financial statements and as noncontrolling interests in UE’s financial statements. The noncontrolling interests in UELP’s financial statements include the interests of unaffiliated partners in consolidated entities. The noncontrolling interests in UE’s financial statements include the same noncontrolling interests at UELP’s level and limited partners of UELP. The differences between shareholders’ equity and partners’ capital result from differences in the equity issued at UE and UELP levels.

To help investors better understand the key differences between UE and UELP, certain information for UE and UELP in this report has been separated, as set forth below: Item 1. Financial Statements (unaudited), which includes specific disclosures for UE and UELP, Note 14, Equity and Noncontrolling Interest and Note 16, Earnings Per Share and Unit.

This report also includes separate Part I, Item 4. Controls and Procedures sections and separate Exhibits 31 and 32 certifications for each of UE and UELP in order to establish that the requisite certifications have been made and that UE and UELP are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934 and 18 U.S.C. §1350.

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

URBAN EDGE PROPERTIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share amounts)

	March 31,		December 31,
	2022		2021
ASSETS
Real estate, at cost:
Land	$	542,131	$	543,827
Buildings and improvements	2,454,897		2,441,797
Construction in progress	223,698		212,296
Furniture, fixtures and equipment	7,716		7,530
Total	3,228,442		3,205,450
Accumulated depreciation and amortization	(772,789)		(753,947)
Real estate, net	2,455,653		2,451,503
Operating lease right-of-use assets	67,618		69,361
Cash and cash equivalents	151,789		164,478
Restricted cash	46,238		55,358
Tenant and other receivables	17,318		15,812
Receivable arising from the straight-lining of rents	63,203		62,692
Identified intangible assets, net of accumulated amortization of $37,024 and $37,361, respectively	68,007		71,107
Deferred leasing costs, net of accumulated amortization of $18,351 and $17,641, respectively	20,791		20,694
Prepaid expenses and other assets	70,620		74,111
Total assets	$	2,961,237	$	2,985,116
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net	$	1,682,929	$	1,687,190
Operating lease liabilities	62,931		64,578
Accounts payable, accrued expenses and other liabilities	75,962		84,829
Identified intangible liabilities, net of accumulated amortization of $36,082 and $35,029, respectively	98,282		100,625
Total liabilities	1,920,104		1,937,222
Commitments and contingencies (Note 10)
Shareholders’ equity:
Common shares: $0.01 par value; 500,000,000 shares authorized and 117,430,735 and 117,147,986 shares issued and outstanding, respectively	1,173		1,170
Additional paid-in capital	1,001,006		1,001,253
Accumulated deficit	(16,399)		(7,091)
Noncontrolling interests:
Operating partnership	42,001		39,616
Consolidated subsidiaries	13,352		12,946
Total equity	1,041,133		1,047,894
Total liabilities and equity	$	2,961,237	$	2,985,116

See notes to consolidated financial statements (unaudited).

1

URBAN EDGE PROPERTIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except share and per share amounts)

	Three Months Ended March 31,
	2022		2021
REVENUE
Rental revenue	$	99,416	$	94,619
Management and development fees	240		365
Other income	545		677
Total revenue	100,201		95,661
EXPENSES
Depreciation and amortization	24,527		22,875
Real estate taxes	15,975		16,601
Property operating	21,205		20,291
General and administrative	11,121		8,668
Lease expense	3,135		3,306
Total expenses	75,963		71,741
Gain on sale of real estate	—		11,722
Interest income	205		136
Interest and debt expense	(14,004)		(14,827)
Income before income taxes	10,439		20,951
Income tax expense	(905)		(235)
Net income	9,534		20,716
Less net (income) loss attributable to noncontrolling interests in:
Operating partnership	(387)		(875)
Consolidated subsidiaries	339		79
Net income attributable to common shareholders	$	9,486	$	19,920
Earnings per common share - Basic:	$	0.08	$	0.17
Earnings per common share - Diluted:	$	0.08	$	0.17
Weighted average shares outstanding - Basic	117,330		116,956
Weighted average shares outstanding - Diluted	117,393		117,024

See notes to consolidated financial statements (unaudited).

2

URBAN EDGE PROPERTIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Unaudited)

(In thousands, except share and per share amounts)

	Common Shares							Noncontrolling Interests (“NCI”)
	Shares	Amount		Additional Paid-In Capital		Accumulated Earnings (Deficit)		Operating Partnership		Consolidated Subsidiaries		Total Equity
Balance, December 31, 2020	117,014,317	$	1,169	$	989,863	$	(39,467)	$	38,456	$	5,872	$	995,893
Net income attributable to common shareholders	—	—		—		19,920		—		—		19,920
Net income (loss) attributable to noncontrolling interests	—	—		—		—		875		(79)		796
Limited partnership interests:
Reallocation of noncontrolling interests	—	—		(2,817)		—		2,817		—		—
Common shares issued	24,283	1		83		(83)		—		—		1
Dividends to common shareholders ($0.15 per share)	—	—		—		(17,515)		—		—		(17,515)
Distributions to redeemable NCI ($0.15 per unit)	—	—		—		—		(711)		—		(711)
Contributions from noncontrolling interests	—	—		—		—		—		511		511
Share-based compensation expense	—	—		597		—		2,086		—		2,683
Share-based awards retained for taxes	(12,311)	—		(208)		—		—		—		(208)
Balance, March 31, 2021	117,026,289	$	1,170	$	987,518	$	(37,145)	$	43,523	$	6,304	$	1,001,370

	Common Shares							Noncontrolling Interests (“NCI”)
	Shares	Amount		Additional Paid-In Capital		Accumulated Earnings (Deficit)		Operating Partnership		Consolidated Subsidiaries		Total Equity
Balance, December 31, 2021	117,147,986	$	1,170	$	1,001,253	$	(7,091)	$	39,616	$	12,946	$	1,047,894
Net income attributable to common shareholders	—	—		—		9,486		—		—		9,486
Net income (loss) attributable to noncontrolling interests	—	—		—		—		387		(339)		48
Limited partnership interests:
Units redeemed for common shares	250,000	3		2,121		—		2,124		—		4,248
Reallocation of noncontrolling interests	—	—		(2,619)		—		(1,629)		—		(4,248)
Common shares issued	37,741	—		20		(21)		—		—		(1)
Dividends to common shareholders ($0.16 per share)	—	—		—		(18,773)		—		—		(18,773)
Distributions to redeemable NCI ($0.16 per unit)	—	—		—		—		(773)		—		(773)
Contributions from noncontrolling interests	—	—		—		—		—		745		745
Share-based compensation expense	—	—		321		—		2,276		—		2,597
Share-based awards retained for taxes	(4,992)	—		(90)		—		—		—		(90)
Balance, March 31, 2022	117,430,735	$	1,173	$	1,001,006	$	(16,399)	$	42,001	$	13,352	$	1,041,133

See notes to consolidated financial statements (unaudited).

3

URBAN EDGE PROPERTIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Three Months Ended March 31,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	9,534	$	20,716
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	24,968		23,330
Gain on sale of real estate	—		(11,722)
Amortization of below market leases, net	(1,974)		(2,412)
Noncash lease expense	1,743		1,813
Straight-lining of rent	(511)		964
Share-based compensation expense	2,597		2,683
Change in operating assets and liabilities:
Tenant and other receivables	(1,507)		(876)
Deferred leasing costs	(1,025)		(600)
Prepaid expenses and other assets	2,893		(6,879)
Lease liabilities	(1,648)		(1,645)
Accounts payable, accrued expenses and other liabilities	(10,549)		(6,547)
Net cash provided by operating activities	24,521		18,825
CASH FLOWS FROM INVESTING ACTIVITIES
Real estate development and capital improvements	(19,078)		(7,810)
Acquisitions of real estate	(3,940)		—
Proceeds from sale of operating properties	—		23,208
Net cash (used in) provided by investing activities	(23,018)		15,398
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(4,421)		(2,727)
Dividends to common shareholders	(18,773)		(71,348)
Distributions to redeemable noncontrolling interests	(773)		(2,784)
Taxes withheld for vested restricted shares	(90)		(208)
Contributions from noncontrolling interests	745		511
Net cash used in financing activities	(23,312)		(76,556)
Net decrease in cash and cash equivalents and restricted cash	(21,809)		(42,333)
Cash and cash equivalents and restricted cash at beginning of period	219,836		419,253
Cash and cash equivalents and restricted cash at end of period	$	198,027	$	376,920

See notes to consolidated financial statements (unaudited).

4

	Three Months Ended March 31,
	2022		2021
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, net of amounts capitalized of $1,733 and $81, respectively	$	13,261	$	16,015
Cash payments for income taxes	896		3
NON-CASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures included in accounts payable and accrued expenses	19,204		8,632
Write-off of fully depreciated assets	742		1,107
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents at beginning of period	$	164,478	$	384,572
Restricted cash at beginning of period	55,358		34,681
Cash and cash equivalents and restricted cash at beginning of period	$	219,836	$	419,253
Cash and cash equivalents at end of period	$	151,789	$	324,508
Restricted cash at end of period	46,238		52,412
Cash and cash equivalents and restricted cash at end of period	$	198,027	$	376,920

 See notes to consolidated financial statements (unaudited).

5

URBAN EDGE PROPERTIES LP

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except unit and per unit amounts)

	March 31,		December 31,
	2022		2021
ASSETS
Real estate, at cost:
Land	$	542,131	$	543,827
Buildings and improvements	2,454,897		2,441,797
Construction in progress	223,698		212,296
Furniture, fixtures and equipment	7,716		7,530
Total	3,228,442		3,205,450
Accumulated depreciation and amortization	(772,789)		(753,947)
Real estate, net	2,455,653		2,451,503
Operating lease right-of-use assets	67,618		69,361
Cash and cash equivalents	151,789		164,478
Restricted cash	46,238		55,358
Tenant and other receivables	17,318		15,812
Receivable arising from the straight-lining of rents	63,203		62,692
Identified intangible assets, net of accumulated amortization of $37,024 and $37,361, respectively	68,007		71,107
Deferred leasing costs, net of accumulated amortization of $18,351 and $17,641, respectively	20,791		20,694
Prepaid expenses and other assets	70,620		74,111
Total assets	$	2,961,237	$	2,985,116
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net	$	1,682,929	$	1,687,190
Operating lease liabilities	62,931		64,578
Accounts payable, accrued expenses and other liabilities	75,962		84,829
Identified intangible liabilities, net of accumulated amortization of $36,082 and $35,029, respectively	98,282		100,625
Total liabilities	1,920,104		1,937,222
Commitments and contingencies (Note 10)
Equity:
Partners’ capital:
General partner: 117,430,735 and 117,147,986 units outstanding, respectively	1,002,179		1,002,423
Limited partners: 5,003,420 and 4,662,654 units outstanding, respectively	43,801		41,030
Accumulated deficit	(18,199)		(8,505)
Total partners’ capital	1,027,781		1,034,948
Noncontrolling interest in consolidated subsidiaries	13,352		12,946
Total equity	1,041,133		1,047,894
Total liabilities and equity	$	2,961,237	$	2,985,116

See notes to consolidated financial statements (unaudited).

6

URBAN EDGE PROPERTIES LP

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except unit and per unit amounts)

	Three Months Ended March 31,
	2022		2021
REVENUE
Rental revenue	$	99,416	$	94,619
Management and development fees	240		365
Other income	545		677
Total revenue	100,201		95,661
EXPENSES
Depreciation and amortization	24,527		22,875
Real estate taxes	15,975		16,601
Property operating	21,205		20,291
General and administrative	11,121		8,668
Lease expense	3,135		3,306
Total expenses	75,963		71,741
Gain on sale of real estate	—		11,722
Interest income	205		136
Interest and debt expense	(14,004)		(14,827)
Income before income taxes	10,439		20,951
Income tax expense	(905)		(235)
Net income	9,534		20,716
Less net loss attributable to NCI in consolidated subsidiaries	339		79
Net income attributable to unitholders	$	9,873	$	20,795
Earnings per unit - Basic:	$	0.08	$	0.17
Earnings per unit - Diluted:	$	0.08	$	0.17
Weighted average units outstanding - Basic	121,188		120,763
Weighted average units outstanding - Diluted	122,187		122,166

See notes to consolidated financial statements (unaudited).

7

URBAN EDGE PROPERTIES LP

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Unaudited)

(In thousands, except unit and per unit amounts)

	Total Shares	General Partner		Total Units	Limited Partners(1)		Accumulated Earnings (Deficit)		NCI in Consolidated Subsidiaries		Total Equity
Balance, December 31, 2020	117,014,317	$	991,032	4,729,010	$	41,302	$	(42,313)	$	5,872	$	995,893
Net income attributable to unitholders	—	—		—	—		20,795		—		20,795
Net loss attributable to noncontrolling interests	—	—		—	—		—		(79)		(79)
Common units issued as a result of common shares issued by Urban Edge	24,283	84		—	—		(83)		—		1
Limited partnership units issued, net	—	—		623,634	—		—		—		—
Reallocation of noncontrolling interests	—	(2,817)		—	2,817		—		—		—
Distributions to Partners ($0.15 per unit)	—	—		—	—		(18,226)		—		(18,226)
Contributions from noncontrolling interests	—	—		—	—		—		511		511
Share-based compensation expense	—	597		—	2,086		—		—		2,683
Share-based awards retained for taxes	(12,311)	(208)		—	—		—		—		(208)
Balance, March 31, 2021	117,026,289	$	988,688	5,352,644	$	46,205	$	(39,827)	$	6,304	$	1,001,370

(1) Limited partners have a 4.4% common limited partnership interest in the Operating Partnership as of March 31, 2021 in the form of Operating Partnership Units (“OP Units”) and Long-Term Incentive Plan Units (“LTIP Units”).

	Total Shares	General Partner		Total Units	Limited Partners(2)		Accumulated Deficit		NCI in Consolidated Subsidiaries		Total Equity
Balance, December 31, 2021	117,147,986	$	1,002,423	4,662,654	$	41,030	$	(8,505)	$	12,946	$	1,047,894
Net income attributable to unitholders	—	—		—	—		9,873		—		9,873
Net income attributable to noncontrolling interests	—	—		—	—		—		(339)		(339)
Common units issued as a result of common shares issued by Urban Edge	37,741	20		590,766	—		(21)		—		(1)
Equity redemption of OP units	250,000	2,124		(250,000)	2,124		—		—		4,248
Reallocation of noncontrolling interests	—	(2,619)		—	(1,629)		—		—		(4,248)
Distributions to Partners ($0.16 per unit)	—	—		—	—		(19,546)		—		(19,546)
Contributions from noncontrolling interests	—	—		—	—		—		745		745
Share-based compensation expense	—	321		—	2,276		—		—		2,597
Share-based awards retained for taxes	(4,992)	(90)		—	—		—		—		(90)
Balance, March 31, 2022	117,430,735	$	1,002,179	5,003,420	$	43,801	$	(18,199)	$	13,352	$	1,041,133

(2) Limited partners have a 4.1% common limited partnership interest in the Operating Partnership as of March 31, 2022 in the form of OP and LTIP Units.

See notes to consolidated financial statements (unaudited).

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URBAN EDGE PROPERTIES LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Three Months Ended March 31,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	9,534	$	20,716
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	24,968		23,330
Gain on sale of real estate	—		(11,722)
Amortization of below market leases, net	(1,974)		(2,412)
Noncash lease expense	1,743		1,813
Straight-lining of rent	(511)		964
Share-based compensation expense	2,597		2,683
Change in operating assets and liabilities:
Tenant and other receivables	(1,507)		(876)
Deferred leasing costs	(1,025)		(600)
Prepaid expenses and other assets	2,893		(6,879)
Lease liabilities	(1,648)		(1,645)
Accounts payable, accrued expenses and other liabilities	(10,549)		(6,547)
Net cash provided by operating activities	24,521		18,825
CASH FLOWS FROM INVESTING ACTIVITIES
Real estate development and capital improvements	(19,078)		(7,810)
Acquisitions of real estate	(3,940)		—
Proceeds from sale of operating properties	—		23,208
Net cash (used in) provided by investing activities	(23,018)		15,398
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(4,421)		(2,727)
Distributions to partners	(19,546)		(74,132)
Taxes withheld for vested restricted units	(90)		(208)
Contributions from noncontrolling interests	745		511
Net cash used in financing activities	(23,312)		(76,556)
Net decrease in cash and cash equivalents and restricted cash	(21,809)		(42,333)
Cash and cash equivalents and restricted cash at beginning of period	219,836		419,253
Cash and cash equivalents and restricted cash at end of period	$	198,027	$	376,920

See notes to consolidated financial statements (unaudited).

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	Three Months Ended March 31,
	2022		2021
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, net of amounts capitalized of $1,733 and $81, respectively	$	13,261	$	16,015
Cash payments for income taxes	896		3
NON-CASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures included in accounts payable and accrued expenses	19,204		8,632
Write-off of fully depreciated assets	742		1,107
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents at beginning of period	$	164,478	$	384,572
Restricted cash at beginning of period	55,358		34,681
Cash and cash equivalents and restricted cash at beginning of period	$	219,836	$	419,253
Cash and cash equivalents at end of period	$	151,789	$	324,508
Restricted cash at end of period	46,238		52,412
Cash and cash equivalents and restricted cash at end of period	$	198,027	$	376,920

 See notes to consolidated financial statements (unaudited).

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URBAN EDGE PROPERTIES AND URBAN EDGE PROPERTIES LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.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 Washington, D.C. to Boston corridor. 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 (“OP Units”). As of March 31, 2022, Urban Edge owned approximately 95.9% of the outstanding common OP Units with the remaining limited OP Units held by members of management and the 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.

As of March 31, 2022, our portfolio consisted of 68 shopping centers, five malls and two industrial parks totaling approximately 17.2 million square feet (“sf”), which is inclusive of a 95% controlling interest in our property in Walnut Creek, CA (Mt. Diablo), and an 82.5% controlling interest in Sunrise Mall, in Massapequa, NY.

2.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, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022. 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, 2021, as filed with the Securities and Exchange Commission (“SEC”).

The consolidated balance sheets as of March 31, 2022 and December 31, 2021 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. As of March 31, 2022 and December 31, 2021, excluding the Operating Partnership, we consolidated two VIEs with total assets of $48.2 million and $48.5 million, respectively, and total liabilities of $24.5 million and $24.7 million, respectively. The consolidated statements of income for the three months ended March 31, 2022 and 2021 include the consolidated accounts of the Company, the Operating Partnership and the two VIEs. All intercompany transactions have been eliminated in consolidation.

Our primary business is the acquisition, management, development, and redevelopment of retail shopping centers and malls. We do not distinguish from 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 as of March 31, 2022. 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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3.     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 under way 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 assumption of 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 evaluated for impairment whenever events or changes in circumstances 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, 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.

Tenant and Other Receivables and Changes in Collectibility Assessment — Tenant receivables include unpaid amounts billed to tenants, disputed enforceable charges and accrued revenues for future billings to tenants for property expenses. We evaluate the collectibility of amounts due from tenants and disputed enforceable charges on both a lease-by-lease and a portfolio-level, which result from the inability of tenants to make required payments under their operating lease agreements. We recognize changes in the collectibility assessment of these operating leases as adjustments to rental revenue in accordance with ASC 842 Leases. Management exercises judgment in assessing collectibility and considers payment history, current credit status and publicly available information about the financial condition of the tenant, among other factors. Tenant receivables and receivables arising from the straight-lining of rents are written-off directly when management deems the collectibility of substantially all future lease payments from a specific lease is not probable, at which point, the Company will begin recognizing revenue from such leases prospectively, based on actual amounts received. This write-off effectively reduces cumulative non-cash rental income recognized from the straight-lining of rents since lease commencement. If the Company subsequently determines that it is probable it will collect substantially all of the lessee’s remaining lease payments under the lease term, the Company will reinstate the receivables balance, including those arising from the straight-lining of rents.

Recently Issued Accounting Literature — In March 2020 and January 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04 Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2021-01 Reference Rate Reform (ASC 848): Scope which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 and ASU 2021-01 are effective for all entities as of March 12, 2020 through December 31, 2022. We currently do not anticipate the need to modify our existing debt agreements as a result of reference rate reform in the current year, however if any modification is executed as a result of reference rate reform, the Company will elect the optional expedient available under ASU 2020-04 and ASU 2021-01, which allows entities to account for the modification as if the modification was not substantial. We will disclose the nature of and reason for electing the optional expedient in each interim and annual financial statement period if and when applicable through December 31, 2022.

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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.

4.     ACQUISITIONS AND DISPOSITIONS

Acquisitions

During the three months ended March 31, 2021, no acquisitions were completed by the Company. During the three months ended March 31, 2022, we closed on the following acquisition:

Date Purchased	Property Name	City	State	Square Feet	Purchase Price(1)
					(in thousands)
February 24, 2022	40 Carmans Road(2)	Massapequa	NY	12,000	$	4,260

(1) The total purchase price for the property acquired includes $0.1 million of transaction costs incurred related to the acquisition.

(2) The outparcel is included with Sunrise Mall in our total property count and non-GAAP metrics. The Company has an 82.5% controlling interest in the property with the remaining 17.5% owned by others.

The 12,000 sf outparcel acquired in February 2022, located at 40 Carmans Road, is adjacent to the entrance of our mall in Massapequa, NY. The aggregate purchase price of this outparcel has been allocated to buildings and improvements, and land of $3.1 million and $1.1 million, respectively. This acquisition supports the overall plans we currently have under way to redevelop Sunrise Mall.

Dispositions

During the three months ended March 31, 2022, no dispositions were completed by the Company.

During the three months ended March 31, 2021, we disposed of one property and one property parcel and received proceeds of $23.6 million, net of selling costs, resulting in an $11.7 million net gain on sale of real estate.

5.     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 $68.0 million and $98.3 million, respectively, as of March 31, 2022 and $71.1 million and $100.6 million, respectively, as of December 31, 2021.

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in additional rental income of $2.0 million and $2.4 million for the three months ended March 31, 2022 and 2021, respectively.

Amortization of acquired in-place leases inclusive of customer relationships resulted in additional depreciation and amortization expense of $2.8 million and $2.1 million for the three months ended March 31, 2022 and 2021, respectively.

The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2022 and the five succeeding years:

(Amounts in thousands)	Below-Market		Above-Market		In-Place Lease
Year	Operating Lease Amortization		Operating Lease Amortization		Amortization
2022(1)	$	5,789	$	(849)	$	(7,333)
2023	7,676		(1,092)		(8,355)
2024	7,440		(996)		(7,127)
2025	7,259		(803)		(6,082)
2026	6,881		(683)		(5,469)
2027	6,587		(458)		(4,905)

(1) Remainder of 2022.

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6.     MORTGAGES PAYABLE

The following is a summary of mortgages payable as of March 31, 2022 and December 31, 2021.

(Amounts in thousands)	Maturity	Interest Rate at March 31, 2022	March 31, 2022		December 31, 2021
First mortgages secured by:
Variable rate
Cherry Hill (Plaza at Cherry Hill)(1)	5/24/2022	1.83%	$	27,947	$	28,244
Woodbridge (Plaza at Woodbridge)(1)	5/25/2022	1.83%	53,460		54,029
Jersey City (Hudson Commons)(2)	11/15/2024	2.13%	27,896		28,034
Watchung(2)	11/15/2024	2.13%	25,968		26,097
Bronx (1750-1780 Gun Hill Road)(2)	12/1/2024	2.13%	24,557		24,680
Total variable rate debt			159,828		161,084
Fixed rate
Paramus (Bergen Town Center - West)	4/8/2023	3.56%	300,000		300,000
Bronx (Shops at Bruckner)	5/1/2023	3.90%	9,530		9,698
Jersey City (Hudson Mall)	12/1/2023	5.07%	21,959		22,154
Yonkers Gateway Center	4/6/2024	4.16%	26,332		26,774
Brick	12/10/2024	3.87%	49,328		49,554
North Plainfield	12/10/2025	3.99%	24,991		25,100
Las Catalinas	2/1/2026	4.43%	122,906		123,977
Middletown	12/1/2026	3.78%	31,258		31,400
Rockaway	12/1/2026	3.78%	27,675		27,800
East Hanover (200 - 240 Route 10 West)	12/10/2026	4.03%	63,000		63,000
North Bergen (Tonnelle Ave)	4/1/2027	4.18%	100,000		100,000
Manchester	6/1/2027	4.32%	12,500		12,500
Millburn	6/1/2027	3.97%	22,829		22,944
Totowa	12/1/2027	4.33%	50,800		50,800
Woodbridge (Woodbridge Commons)	12/1/2027	4.36%	22,100		22,100
East Brunswick	12/6/2027	4.38%	63,000		63,000
East Rutherford	1/6/2028	4.49%	23,000		23,000
Brooklyn (Kingswood Center)	2/6/2028	5.07%	70,595		70,815
Hackensack	3/1/2028	4.36%	66,400		66,400
Marlton	12/1/2028	3.86%	37,400		37,400
East Hanover Warehouses	12/1/2028	4.09%	40,700		40,700
Union (2445 Springfield Ave)	12/10/2028	4.01%	45,600		45,600
Freeport (Freeport Commons)	12/10/2029	4.07%	43,100		43,100
Montehiedra	6/1/2030	5.00%	78,929		79,381
Montclair	8/15/2030	3.15%	7,250		7,250
Garfield	12/1/2030	4.14%	40,300		40,300
Woodmore Towne Centre	1/6/2032	3.39%	117,200		117,200
Mt Kisco	11/15/2034	6.40%	12,227		12,377
Total fixed rate debt			1,530,909		1,534,324
Total mortgages payable			1,690,737		1,695,408
	Unamortized debt issuance costs		(7,808)		(8,218)
Total mortgages payable, net			$	1,682,929	$	1,687,190

(1)Bears interest at one month LIBOR plus 160 bps.

(2)Bears interest at one month LIBOR plus 190 bps.

The net carrying amount of real estate collateralizing the above indebtedness amounted to approximately $1.4 billion as of March 31, 2022. 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, 2022, we were in compliance with all debt covenants.

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As of March 31, 2022, the principal repayments of the Company’s total outstanding debt for the remainder of 2022 and the five succeeding years, and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,
2022(1)	$	94,244
2023	349,814
2024	163,721
2025	40,946
2026	230,694
2027	268,729
Thereafter	542,589

(1) Remainder of 2022.

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 to increase 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.

On June 3, 2020, we entered into a third amendment to the Agreement, which among other things, modified certain definitions and the measurement period for certain financial covenants to a trailing four-quarter period instead of the most recent quarter annualized. 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 change. The Agreement contains customary financial covenants including a maximum leverage ratio of 60% and a minimum fixed charge coverage ratio of 1.5x.

No amounts were drawn or outstanding under the Agreement as of March 31, 2022 or December 31, 2021. Financing costs associated with executing the Agreement of $2.0 million and $2.2 million as of March 31, 2022 and December 31, 2021, respectively, are included in the prepaid expenses and other assets line item of the consolidated balance sheets, as deferred financing costs, net.

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 service the debt and that we were unwilling to fund the shortfalls. In December 2020, the non-recourse mortgage loan on Las Catalinas Mall was modified to convert the mortgage from an amortizing 4.43% loan to interest only payments, starting at 3.00% in 2021 and increasing 50 basis points annually until returning to 4.43% in 2024 and thereafter. The terms of the modification enable the Company, at its option, to repay the loan at a discounted value of $72.5 million, beginning in August 2023 through the extended maturity date of February 2026.

While it is possible we will be able to repay the loan at the discounted value in the future, such repayment is contingent upon certain factors including the future operating performance of the property as well as the ability to meet all required payments on the loan. Therefore, in accordance with ASC 470-60 Troubled Debt Restructurings, the Company did not recognize a gain at the time of the restructuring, as the future cash payments, including contingent payments, are greater than the carrying value of the mortgage payable.

We have accrued interest of $5.4 million related to this mortgage, which is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheet as of March 31, 2022. We incurred $1.2 million of lender fees in connection with the loan modification, which are treated as a reduction of the mortgage payable balance and amortized over the term of the loan in accordance with the provisions under ASC 470-60.

Mortgage on The Outlets at Montehiedra

In connection with the refinancing of the loan secured by The Outlets at Montehiedra (“Montehiedra”) in the second quarter of 2020, the Company provided a $12.5 million limited corporate guarantee. The guarantee is reduced commensurate with the loan amortization schedule and will reduce to zero in approximately 4.5 years. As of March 31, 2022, the remaining exposure under the guarantee is $9.4 million. There was no separate liability recorded related to this guarantee.

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7.     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. With the exception of the Company’s taxable REIT subsidiary (“TRS”), 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”) for tax years beginning after December 31, 2017) and may not be able to qualify as a REIT for the four subsequent taxable years. In addition to its TRS, the Company is subject to certain foreign, and state and local income taxes, in particular income taxes arising from its operating activities in Puerto Rico, which are included in income tax expense on the consolidated statements of income.

For U.S. federal income tax purposes, the Company and other minority members are partners in the Operating Partnership. As such, the partners are required to report their share of taxable income on their respective tax returns. However, during the three months ended March 31, 2022 and 2021, certain non-real estate operating activities that could not be performed by the Company, occurred through the Company’s TRS, which is subject to federal, state and local income taxes. These income taxes are included in income tax expense on the consolidated statements of income.

During the three months ended March 31, 2022, the Company was subject to Puerto Rico corporate income taxes on its allocable share of Puerto Rico operating activities. The Puerto Rico corporate income tax consists of a flat 18.5% tax rate plus a graduated income surcharge tax for a maximum corporate income tax rate of 37.5%. In addition, the Company is subject to a 10% branch profits tax on the earnings and profits generated from its allocable share of Puerto Rico operating activities and such tax is included in income tax expense on the consolidated statements of income.

For the three months ended March 31, 2022 and 2021, the Puerto Rico income tax expense was $0.9 million and $0.2 million, respectively. All amounts for the three months ended March 31, 2022 and 2021 are included in income tax expense on the consolidated statements of income.

8.     LEASES

All rental revenue was generated from operating leases for the three months ended March 31, 2022 and 2021, respectively. The components of rental revenue for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Rental Revenue
Fixed lease revenue	$	70,341	$	65,653
Variable lease revenue(1)	29,075		28,966
Total rental revenue	$	99,416	$	94,619

(1) Percentage rents for the three months ended March 31, 2022 and 2021 were $1.2 million and $0.5 million, respectively.

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9.     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, 2022 and December 31, 2021.

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 and mortgages payable. Cash and cash equivalents are carried at cost, which approximates fair value. The fair value of mortgages payable is calculated based on current market prices and discounted cash flows at the current rate at which similar loans would be made to borrowers with similar credit ratings for the remaining term of such debt, which is provided by a third-party specialist. The fair value of cash and cash equivalents are classified as Level 1 and the fair value of mortgages payable is classified as Level 2. The table below summarizes the carrying amounts and fair value of our Level 2 financial instruments as of March 31, 2022 and December 31, 2021.

	As of March 31, 2022				As of December 31, 2021
(Amounts in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Mortgages payable(1)	$	1,690,737	$	1,621,095	$	1,695,408	$	1,692,674

(1) Carrying amounts exclude unamortized debt issuance costs of $7.8 million and $8.2 million as of March 31, 2022 and December 31, 2021, 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.

No impairment charges were recognized during the three months ended March 31, 2022 or 2021.

10.     COMMITMENTS AND CONTINGENCIES

Legal Matters

From time to time, we are a party to various legal proceedings, claims or regulatory inquiries and investigations arising out of, or incident to, our ordinary course of business. While we are unable to predict with certainty the outcome of any particular matter, management does not currently expect, when such matters are resolved, that our resulting exposure to loss contingencies, if any, will have a material adverse effect on our results of operations or consolidated financial position.

Redevelopment and Anchor Repositioning

The Company has 20 active development, redevelopment or anchor repositioning projects with total estimated costs of $207.1 million, of which $136.4 million remains to be funded as of March 31, 2022. We continue to monitor the stabilization dates of these projects, which can be impacted from economic conditions affecting our tenants, vendors and supply chains. We have identified future projects in our development pipeline, but we are under no obligation to execute and fund any of these projects and each of these projects is being further evaluated based on market conditions.

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Insurance 

The Company maintains numerous insurance policies including for general liability, property, pollution, acts of terrorism, trustees’ and officers’, cyber, workers’ compensation and automobile-related liabilities. However, all such policies are subject to terms, conditions, exclusions, deductibles and sub-limits, amount other limiting factors. For example, the Company’s terrorism insurance excludes coverage for nuclear, biological, chemical or radiological terrorism events as defined by the Terrorism Risk Insurance Program Reauthorization Act.

The Company’s primary and excess insurance policies providing coverage for pollution related losses have an aggregate limit of $75 million and provide remediation and business interruption coverage for pollution incidents, which pursuant to our policies, expressly include the presence and dispersal of viruses. On December 23, 2020, the Company initiated litigation in New Jersey state court, Bergen County, under these policies to recover uncollected rents and other amounts resulting from the COVID-19 virus.

Insurance premiums are typically charged directly to each of the properties 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 consolidated financial position.

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 $1.7 million on our consolidated balance sheets as of March 31, 2022 and December 31, 2021, 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. As of March 31, 2022, there are no tenant bankruptcies that we believe will have a material adverse effect on our results of operations or consolidated financial position.

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11.     PREPAID EXPENSES AND OTHER ASSETS

The following is a summary of the composition of the prepaid expenses and other assets on the consolidated balance sheets:

	Balance at
(Amounts in thousands)	March 31, 2022		December 31, 2021
Deferred tax asset, net	$	36,525	$	37,420
Other assets	17,669		19,712
Finance lease right-of-use asset	2,724		2,724
Deferred financing costs, net of accumulated amortization of $6,210 and $5,932, respectively	1,956		2,234
Prepaid expenses:
Real estate taxes	5,454		9,982
Insurance	5,127		1,088
Licenses/fees	1,165		951
Total Prepaid expenses and other assets	$	70,620	$	74,111

12.     ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

The following is a summary of the composition of accounts payable, accrued expenses and other liabilities on the consolidated balance sheets:

	Balance at
(Amounts in thousands)	March 31, 2022		December 31, 2021
Deferred tenant revenue	$	24,658	$	28,898
Accrued capital expenditures and leasing costs	19,960		19,164
Accrued interest payable	10,151		9,879
Other liabilities and accrued expenses	7,668		8,057
Security deposits	6,905		6,693
Accrued payroll expenses	3,613		9,134
Finance lease liability	3,007		3,004
Total accounts payable, accrued expenses and other liabilities	$	75,962	$	84,829

13.     INTEREST AND DEBT EXPENSE

The following table sets forth the details of interest and debt expense on the consolidated statements of income:

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Interest expense	$	13,259	$	14,070
Amortization of deferred financing costs	745		757
Total Interest and debt expense	$	14,004	$	14,827

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14.     EQUITY AND NONCONTROLLING INTEREST

At-The-Market Program

On May 5, 2021 the Company established an at-the-market equity program (the “ATM Program”), pursuant to which the Company may offer and sell common shares, par value $0.01 per share, with an aggregate gross sales price of up to $250 million. Sales under the ATM Program may be made from time to time, as needed, by means of ordinary brokers’ transactions or other transactions that are deemed to be “at the market” offerings, in privately negotiated transactions, which may include block trades, or as otherwise agreed with the sales agents.

As of March 31, 2022, the Company has not issued any common shares under the ATM Program. Future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common shares, and our capital needs. The Company has no obligation to sell any shares under the ATM Program.

Share Repurchase Program

The Company has a share repurchase program for up to $200 million, under which, 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, 2022 and 2021, no shares were repurchased by the Company. As of March 31, 2022, the Company has repurchased 5.9 million common shares at a weighted average share price of $9.22, for a total of $54.1 million. All share repurchases by the Company were completed between March and April of 2020. There is approximately $145.9 million remaining for share repurchases under this program.

Units of the Operating Partnership

The Operating Partnership’s capital includes general and common limited partnership interests in the operating partnership. As of March 31, 2022, Urban Edge owned approximately 95.9% 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 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.

Dividends and Distributions

During the three months ended March 31, 2022 and 2021, the Company declared distributions on common shares and OP Units of $0.16 and $0.15 per share/unit, respectively.

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% weighted-average interest in the Operating Partnership for the three months ended March 31, 2022. 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.

Noncontrolling Interests in Consolidated Subsidiaries

The Company’s noncontrolling interests relate to the 5% interest held by others in our property in Walnut Creek, CA (Mount Diablo) and 17.5% held by others in our property in Massapequa, NY. The net income attributable to noncontrolling interests is presented separately on our consolidated statements of income.

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15.     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:

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Share-based compensation expense components:
Time-based LTIP expense(1)	$	1,232	$	1,130
Performance-based LTIP expense(2)	1,045		956
Stock option expense	235		413
Restricted share expense	60		178
Deferred share unit (“DSU”) expense	25		6
Total Share-based compensation expense	$	2,597	$	2,683

(1) Expense for the three months ended March 31, 2022 includes the 2022, 2021, 2020 and 2019 LTI Plans.

(2) Expense for the three months ended March 31, 2022 includes the 2017 OPP plan and the 2022, 2021, 2020, 2019, and 2018 LTI Plans.

Equity award activity during the three months ended March 31, 2022 included: (i) 266,766 LTIP Units granted, (ii) 241,501 LTIP Units vested, (iii) 75,512 stock options vested, (iv) 44,214 restricted shares granted, (v) 17,375 restricted shares vested, (vi) 8,461 restricted shares forfeited, and (vii) 4,381 LTIP Units forfeited.

2022 Long-Term Incentive Plan

On February 11, 2022, the grant date, the Compensation Committee of the Board of Trustees approved the 2022 Long-Term Incentive Plan (“2022 LTI Plan”). The plan is a multi-year, equity compensation program under which participants, including our Chairman and Chief Executive Officer, receive awards in the form of LTIP Units that, with respect to one half of the program, vest based solely on the passage of time, and with respect to the other half of the program, are earned and vest if certain relative and absolute total shareholder return (“TSR”) and/or funds from operations (“FFO”) growth targets are achieved by the Company over a three-year performance period. The Company granted awards that represent 616,204 LTIP Units with a total grant date fair value under the 2022 LTI Plan of $8.6 million comprising both performance-based and time-based awards as described further below:

Performance-based awards

The 2022 LTI Plan has three separate performance-based award components that are measured independently. 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 “TSR Performance Period”) beginning on February 11, 2022 and ending on February 10, 2025. Participants also have the opportunity to earn awards in the form of LTIP Units if Urban Edge’s FFO growth component meets certain criteria over the three-year performance measurement period (the “FFO Performance Period”) beginning January 1, 2022 and ending on December 31, 2024. In terms of grant date fair value, each component represents one-third of the performance-based awards, or 16.7% of the overall 2022 LTI Plan.

Under the absolute TSR component, 50% of the LTIP Units will be earned if the Company’s TSR over the TSR Performance Period is equal to 18%, 100% of the LTIP Units will be earned if the Company’s TSR over the TSR Performance Period is equal to 27%, and 200% of the LTIP Units will be earned if the Company’s TSR over the TSR Performance Period is equal to or greater than 36%. If the Company’s absolute TSR is between such thresholds, earnings will be determined using linear interpolation. A maximum of 136,131 LTIP Units were granted under this component with a grant date fair value of approximately $1.4 million, determined using a Monte Carlo simulation to estimate the fair value through a risk-neutral premise.

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, 50% of the LTIP Units will be earned if the Company’s TSR over the TSR 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 TSR Performance Period is equal to the 55th percentile of the peer group, and 200% of the LTIP Units will be earned if the Company’s TSR over the TSR Performance Period is equal to or above the 75th percentile of the peer group. If the Company’s relative TSR is between such thresholds, earnings will be determined using linear interpolation. A maximum of 132,239 LTIP

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Units were granted under this component with a grant date fair value of approximately $1.4 million, determined using a Monte Carlo simulation to estimate the fair value through a risk-neutral premise.

Under the FFO growth component, 50% of the LTIP Units will be earned if the Company’s FFO growth over the FFO Performance Period is equal to 3%, 100% of the LTIP Units will be earned if the Company’s FFO growth over the FFO Performance Period is equal to 5%, and 200% of the LTIP Units will be earned if the Company’s FFO growth over the FFO Performance Period is equal to or greater than 7%. If the Company’s FFO growth is between such thresholds, earnings will be determined using linear interpolation. 81,068 LTIP Units were granted, at target, under this component with a grant date fair value of approximately $1.4 million.

In the event of a change in control of the Company, the performance period will end on the date of any such event. As soon as practicable following the applicable performance period, the Compensation Committee will determine the number of units earned under each performance-based component, with 50% of the units earned vesting on such determination date, 25% vesting on the fourth anniversary of the grant date and 25% vesting on the fifth anniversary of the grant date.

Time-based awards

The time-based awards granted under the 2022 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 ratable over four years. As of March 31, 2022, the Company granted time-based awards under the 2022 LTI Plan that represent 266,766 LTIP Units with a grant date fair value of $4.3 million.

16.     EARNINGS PER SHARE AND UNIT

Urban Edge Earnings per Share

We calculate 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:

	Three Months Ended March 31,
(Amounts in thousands, except per share amounts)	2022		2021
Numerator:
Net income attributable to common shareholders	$	9,486	$	19,920
Less: Earnings allocated to unvested participating securities	(5)		(12)
Net income available for common shareholders - basic	$	9,481	$	19,908
Impact of assumed conversions:
OP and LTIP Units	—		—
Net income available for common shareholders - dilutive	$	9,481	$	19,908
Denominator:
Weighted average common shares outstanding - basic	117,330		116,956
Effect of dilutive securities(1):
Restricted share awards	63		68
Assumed conversion of OP and LTIP Units	—		—
Weighted average common shares outstanding - diluted	117,393		117,024
Earnings per share available to common shareholders:
Earnings per common share - Basic	$	0.08	$	0.17
Earnings per common share - Diluted	$	0.08	$	0.17

(1) For the three months ended March 31, 2022 and 2021, 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 these periods.

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Operating Partnership Earnings per Unit

The following table sets forth the computation of basic and diluted earnings per unit:

	Three Months Ended March 31,
(Amounts in thousands, except per unit amounts)	2022		2021
Numerator:
Net income attributable to unitholders	$	9,873	$	20,795
Less: net income attributable to participating securities	(5)		(12)
Net income available for unitholders	$	9,868	$	20,783
Denominator:
Weighted average units outstanding - basic	121,188		120,763
Effect of dilutive securities issued by Urban Edge	63		68
Unvested LTIP Units	936		1,335
Weighted average units outstanding - diluted	122,187		122,166
Earnings per unit available to unitholders:
Earnings per unit - Basic	$	0.08	$	0.17
Earnings per unit - Diluted	$	0.08	$	0.17

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ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can identify many of these statements by words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,” “may” or other similar expressions in this Quarterly Report on Form 10-Q. Many of the factors that will determine the outcome of forward-looking statements are beyond our ability to control or predict and include, among others: (i) the economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic, including its impact on our retail tenants and their ability to make rent and other payments or honor their commitments under existing leases; (ii) the loss or bankruptcy of major tenants; (iii) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration and the Company’s ability to re-lease its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant; (iv) the impact of e-commerce on our tenants’ business; (v) macroeconomic conditions, such as a disruption of, or lack of access to the capital markets, as well as potential volatility in the Company’s share price; (vi) the Company’s success in implementing its business strategy and its ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions and investments; (vii) changes in general economic conditions or economic conditions in the markets in which the Company competes, and their effect on the Company’s revenues, earnings and funding sources, and on those of its tenants; (viii) increases in the Company’s borrowing costs as a result of changes in interest rates, rising inflation, and other factors, including the discontinuation of USD LIBOR, which is currently anticipated to occur in 2023; (ix) the Company’s ability to pay down, refinance, restructure or extend its indebtedness as it becomes due and potential limitations on the Company’s ability to borrow funds under its existing credit facility as a result of covenants relating to the Company’s financial results; (x) potentially higher costs associated with the Company’s development, redevelopment and anchor repositioning projects, and the Company’s ability to lease the properties at projected rates; (xi) the Company’s liability for environmental matters; (xii) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (xiii) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; (xiv) information technology security breaches; (xv) the loss of key executives; and (xvi) the accuracy of methodologies and estimates regarding our environmental, social and governance (“ESG”) metrics, goals and targets, tenant willingness and ability to collaborate towards reporting ESG metrics and meeting ESG goals and targets, and the impact of governmental regulation on our ESG efforts. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Risk Factors” in Part I, Item 1A, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and the other documents filed by the Company with the SEC, including the information contained in this Quarterly Report on Form 10-Q.

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for any forward-looking statements included in this Quarterly Report on Form 10-Q. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q.

The following discussion should be read in conjunction with the consolidated financial statements and notes thereto included in Part I of this Quarterly Report on Form 10-Q.

Overview

Urban Edge Properties (“UE”, “Urban Edge” or the “Company”) (NYSE: UE) is a Maryland real estate investment trust that manages, develops, redevelops, and acquires retail real estate, primarily in the Washington, D.C. to Boston corridor. 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 (“OP Units”). As of March 31, 2022, Urban Edge owned approximately 95.9% of the outstanding common OP Units with the remaining limited OP Units held by members of management and the Board of Trustees, and contributors of property interests acquired. Urban Edge serves as the sole general partner of the Operating Partnership.

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As of March 31, 2022, our portfolio consisted of 68 shopping centers, five malls and two industrial parks totaling approximately 17.2 million square feet.

Critical Accounting Estimates

The Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 contains a description of our critical accounting estimates, including collectibility, valuing acquired assets and liabilities and impairments. For the three months ended March 31, 2022, there were no material changes to these policies.

Recent Accounting Pronouncements

Refer to Note 3 to the unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for information regarding recent accounting pronouncements that may affect us.

Results of Operations

We derive substantially all of our revenue from rents received from tenants under existing leases on each of our properties. This revenue includes fixed base rents, recoveries of expenses that we have incurred and that we pass through to the individual tenants and percentage rents that are based on specified percentages of tenants’ revenue, in each case as provided in the respective leases.

Our primary cash expenditures consist of property operating and capital costs, general and administrative expenses, and interest and debt expense. Property operating expenses include: real estate taxes, repairs and maintenance, management expenses, insurance and utilities; general and administrative expenses include: payroll, professional fees, information technology, office expenses and other administrative expenses; and interest and debt expense primarily consists of interest on our mortgage debt. In addition, we incur substantial non-cash charges for depreciation and amortization on our properties. We also capitalize certain expenses, such as taxes, interest and salaries related to properties under development or redevelopment until the property is ready for its intended use.

Our consolidated results of operations often are not comparable from period to period due to the impact of property acquisitions, dispositions, developments, redevelopments and changes in accounting policies. The results of operations of any acquired properties are included in our financial statements as of the date of acquisition. Our results of operations are affected by national, regional and local economic conditions, as well as macroeconomic conditions, which are at times subject to volatility and uncertainty. The current global climate has increased volatility in the market and has caused a surge in already increasing inflation and interest rates. Most of our leases require tenants to pay their share of operating expenses, including common area maintenance, real estate taxes and insurance, thereby reducing our exposure to increases in costs and operating expenses resulting from inflation, although some larger tenants have capped the amount of these operating expenses they are responsible for under their lease. Additionally, the majority of our non-recourse debt includes fixed rate terms, which help to alleviate the impact of rising interest rates on our operations. While we have not experienced any material negative impacts at this time, we are actively managing our business to respond to the ongoing economic and social impact from such events. See “Risk Factors” in Part I, Item 1A, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

The following provides an overview of our key financial metrics, including non-GAAP measures, based on our consolidated results of operations (refer to Net Operating Income (“NOI”), same-property NOI and Funds From Operations (“FFO”) applicable to diluted common shareholders described later in this section):

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Net income	$	9,534	$	20,716
FFO applicable to diluted common shareholders(1)	34,171		31,759
NOI(1)	57,062		53,579
Same-property NOI(1)	50,946		48,292

(1) Refer to pages 28-29 for a reconciliation to the nearest generally accepted accounting principles (“GAAP”) measure.

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Comparison of the Three Months Ended March 31, 2022 to the Three Months Ended March 31, 2021

Net income for the three months ended March 31, 2022 was $9.5 million, compared to net income of $20.7 million for the three months ended March 31, 2021. The following table summarizes certain line items from our consolidated statements of income that we believe are important in understanding our operations and/or those items that significantly changed in the three months ended March 31, 2022 as compared to the same period in 2021:

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021		$ Change
Total revenue	$	100,201	$	95,661	$	4,540
Depreciation and amortization	24,527		22,875		1,652
Real estate taxes	15,975		16,601		(626)
Property operating expenses	21,205		20,291		914
General and administrative expenses	11,121		8,668		2,453
Gain on sale of real estate	—		11,722		(11,722)
Interest and debt expense	14,004		14,827		(823)

Total revenue increased by $4.5 million to $100.2 million in the first quarter of 2022 from $95.7 million in the first quarter of 2021. The increase is primarily attributable to:

•$3.6 million increase as a result of property acquisitions net of dispositions;

•$2.0 million decrease in rental revenue deemed uncollectible;

•$0.8 million increase in non-cash revenues driven by write-offs of receivables arising from the straight-lining of rents for tenants put on cash basis during the first quarter of 2021; and

•$0.7 million increase in percentage rent due to higher tenant sales; offset by

•$1.9 million decrease in property rentals and tenant reimbursement income due to lease terminations and modifications, partially offset by rent commencements and contractual rent increases; and

•$0.7 million decrease in lease termination income and management and development fee income.

Depreciation and amortization increased by $1.7 million to $24.5 million in the first quarter of 2022 from $22.9 million in the first quarter of 2021. The increase is primarily attributable to:

•$2.7 million increase as a result of property acquisitions net of dispositions; offset by

•$1.0 million decrease due to write-offs of fully depreciated assets from normal depreciation and amortization and lease terminations.

Real estate taxes decreased by $0.6 million to $16.0 million in the first quarter of 2022 from $16.6 million in the first quarter of 2021. The decrease is primarily attributable to:

•$1.0 million increase in capitalized real estate taxes due to an increase in active development, redevelopment and anchor repositioning projects; and

•$0.2 million decrease due to successful tax appeals and lowered assessments; offset by

•$0.6 million increase as a result of property acquisitions net of dispositions.

Property operating expenses increased by $0.9 million to $21.2 million in the first quarter of 2022 from $20.3 million in the first quarter of 2021. The increase is primarily attributable to:

•$0.6 million increase as a result of property acquisitions net of dispositions; and

•$0.3 million higher common area maintenance expenses across the portfolio as a result of spend reductions due to COVID-19 interruptions in the first quarter of 2021.

General and administrative expenses increased by $2.5 million to $11.1 million in the first quarter of 2022 from $8.7 million in the first quarter of 2021. This is primarily attributable to an increase in salary, bonus, employee fringe benefits, professional fees, transaction costs and other expenses.

A gain on the sale of real estate of $11.7 million was recognized in the first quarter of 2021 in connection with the disposition of one of our properties in East Hanover, NJ and a property parcel in Lodi, NJ. There were no property dispositions completed in the first quarter of 2022.

Interest and debt expense decreased by $0.8 million to $14.0 million in the first quarter of 2022 from $14.8 million in the first quarter of 2021. The decrease is primarily attributable to:

•$1.8 million increase in capitalized interest expense due to an increase in active development, redevelopment and anchor repositioning projects; offset by

•$1.0 million increase in interest expense in connection with the mortgage loan obtained for the acquisition of Woodmore Towne Centre in December 2021.

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Non-GAAP Financial Measures

We use NOI internally to make investment and capital allocation decisions and to compare the unlevered performance of our properties to our peers. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis, providing perspective not immediately apparent from net income. The most directly comparable GAAP financial measure to NOI is net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. We calculate NOI by adjusting net income to add back depreciation and amortization expense, general and administrative expenses, casualty and real estate impairment losses, interest and debt expense, income tax expense and non-cash lease expense, and deduct management and development fee income from non-owned properties, gains on sale of real estate, interest income, non-cash rental income resulting from the straight-lining of rents and amortization of acquired below market leases net of above market leases. NOI should not be considered a substitute for net income and may not be comparable to similarly titled measures employed by others.

We calculate same-property NOI using net income as defined by GAAP reflecting only those income and expense items that are reflected in NOI (as described above) and excluding properties that were under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service, and also excluding properties acquired or sold during the periods being compared. We also exclude for the following items in calculating same-property NOI: lease termination fees, bankruptcy settlement income, and income and expenses that we do not believe are representative of ongoing operating results, if any. As such, same-property NOI assists in eliminating disparities in net income due to the development, redevelopment, acquisition or disposition of properties during the periods presented, and thus provides a more consistent performance measure for the comparison of the operating performance of the Company’s properties, which the Company believes to be useful to investors. Same-property NOI should not be considered a substitute for net income and may not be comparable to similarly titled measures employed by others.

Throughout this section, we have provided certain information on a “same-property” basis which includes the results of operations that were owned and operated for the entirety of the reporting periods being compared, totaling 68 properties for the three months ended March 31, 2022 and 2021. Information provided on a same-property basis excludes properties that were under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service and also excludes properties acquired or sold during the periods being compared. While there is judgment surrounding changes in designations, a property is removed from the same-property pool when a property is considered to be a redevelopment property because it is undergoing significant renovation or retenanting pursuant to a formal plan and is expected to have a significant impact on property operating income based on the retenanting that is occurring. A development or redevelopment property is moved back to the same-property pool once a substantial portion of the NOI growth expected from the development or redevelopment is reflected in both the current and comparable prior year period, generally one year after at least 80% of the expected NOI from the project is realized on a cash basis. Acquisitions are moved into the same-property pool once we have owned the property for the entirety of the comparable periods and the property is not under significant development or redevelopment.

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Same-property NOI increased by $2.7 million, or 5.5%, for the three months ended March 31, 2022, compared to the three months ended March 31, 2021.

The following table reconciles net income to NOI and same-property NOI for the three months ended March 31, 2022 and 2021.

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Net income	$	9,534	$	20,716
Management and development fee income from non-owned properties	(240)		(365)
Other expense	(199)		(246)
Depreciation and amortization	24,527		22,875
General and administrative expense	11,121		8,668
Gain on sale of real estate	—		(11,722)
Interest income	(205)		(136)
Interest and debt expense	14,004		14,827
Income tax expense	905		235
Non-cash revenue and expenses	(2,385)		(1,273)
NOI	57,062		53,579
Adjustments:
Non-same property NOI(1)	(7,360)		(5,422)
Sunrise Mall net operating loss	1,354		610
Tenant bankruptcy settlement income and lease termination income	(110)		(475)
Same-property NOI	$	50,946	$	48,292
NOI related to properties being redeveloped	4,339		4,992
Same-property NOI including properties in redevelopment	$	55,285	$	53,284

(1) Non-same property NOI includes NOI related to properties being redeveloped and properties acquired or disposed in the period.

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Funds From Operations

FFO was $34.2 million for the three months ended March 31, 2022 compared to $31.8 million for the three months ended March 31, 2021.

We calculate FFO in accordance with the National Association of Real Estate Investment Trusts’ (“Nareit”) definition. Nareit defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable real estate and land when connected to the main business of a REIT, impairments on depreciable real estate or land related to a REIT's main business, and rental property depreciation and amortization expense. We believe FFO is a meaningful non-GAAP financial measure useful in comparing our levered operating performance from period to period both internally and among our peers because this non-GAAP measure excludes net gains on sales of depreciable real estate, real estate impairment losses, rental property depreciation and amortization expense which implicitly assumes that the value of real estate diminishes predictably over time rather than fluctuating based on market conditions. We believe the presentation of comparable period operating results generated from FFO provides useful information to investors because the definition excludes items included in net income that do not relate to, or are not, indicative of our operating and financial performance, such as depreciation and amortization related to real estate, and items which can make periodic and peer analyses of operating and financial performance more difficult, such as gains (or losses) from sales of depreciable real estate and land when connected to the main business of a REIT and impairments on depreciable real estate or land related to a REIT's main business. FFO does not represent cash flows from operating activities in accordance with GAAP, should not be considered an alternative to net income as an indication of our performance, and is not indicative of cash flow as a measure of liquidity or our ability to make cash distributions. FFO may not be comparable to similarly titled measures employed by others.

The following table reflects the reconciliation of net income to FFO for the three months ended March 31, 2022 and 2021.

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Net income	$	9,534	$	20,716
Less net (income) loss attributable to noncontrolling interests in:
Operating partnership	(387)		(875)
Consolidated subsidiaries	339		79
Net income attributable to common shareholders	9,486		19,920
Adjustments:
Rental property depreciation and amortization	24,298		22,686
Gain on sale of real estate	—		(11,722)
Limited partnership interests in operating partnership(1)	387		875
FFO applicable to diluted common shareholders	$	34,171	$	31,759

(1) Represents earnings allocated to LTIP and OP unitholders for unissued common shares, which have been excluded for purposes of calculating earnings per diluted share for the periods presented because they are anti-dilutive.

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Liquidity and Capital Resources

Due to the nature of our business, the cash generated from operations is primarily paid to our shareholders and unitholders of the Operating Partnership in the form of distributions. Our status as a REIT requires that we generally distribute at least 90% of our REIT’s ordinary taxable income each year. Our Board of Trustees declared a quarterly dividend of $0.16 per common share and OP unit for first quarter of 2022, or an annual rate of $0.64. Historically, we have paid regular cash dividends; however, the timing, declaration, amount and payment of distributions to shareholders and unitholders of the Operating Partnership fall within the discretion of our Board of Trustees. Our Board of Trustees’ decisions regarding the payment of dividends depend on many factors, such as maintaining our REIT status, our financial condition, earnings, capital requirements, debt service obligations, limitations under our financing arrangements, industry practice, legal requirements, regulatory constraints, and other factors.

Property rental income is our primary source of cash flow and is dependent on a number of factors, including our occupancy level and rental rates, as well as our tenants’ ability to pay rent. Our properties have historically provided us with a relatively consistent stream of cash flow that enables us to pay operating expenses, debt service and recurring capital expenditures. Other sources of liquidity to fund cash requirements include proceeds from financings, equity offerings and asset sales. Additionally, we have a $600 million revolving credit agreement with certain financial institutions, which has a maturity date of January 29, 2024 and includes two six-month extension options. See Note 6 to the consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information regarding our revolving credit agreement.

Our short-term cash requirements consist of normal recurring operating expenses, lease obligations, regular debt service requirements, general and administrative expenses, expenditures related to leasing activity and distributions to shareholders and unitholders of the Operating Partnership. Our long-term capital requirements consist primarily of maturities under our long-term debt agreements, development and redevelopment costs and potential acquisitions. We have approximately $81 million of debt maturing in 2022 related to mortgage loans encumbering two of our properties.

At March 31, 2022, we had cash and cash equivalents, including restricted cash, of $198 million and no amounts drawn on our $600 million revolving credit agreement. These amounts are readily available to fund the debt obligations discussed above coming due during the year.

Summary of Cash Flows

Cash and cash equivalents, including restricted cash, was $198.0 million at March 31, 2022, compared to $219.8 million at December 31, 2021 and $376.9 million at March 31, 2021, a decrease of $21.8 million and $178.9 million, respectively. Our cash flow activities are summarized as follows:

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021		$ Change
Net cash provided by operating activities	$	24,521	$	18,825	$	5,696
Net cash (used in) provided by investing activities	(23,018)		15,398		(38,416)
Net cash used in financing activities	(23,312)		(76,556)		53,244

Operating Activities

Net cash flow provided by operating activities primarily consists of cash inflows from rental revenue and cash outflows for property operating expenses, general and administrative expenses and interest and debt expense.

Net cash provided by operating activities of $24.5 million for the three months ended March 31, 2022 increased by $5.7 million from $18.8 million for the three months ended March 31, 2021. The increase is driven by operating income generated from property acquisitions completed since the first quarter of 2021, improved collection rates on property rentals and tenant expense reimbursements in the first quarter of 2022 as compared to the first quarter of 2021, and collection of previously billed and deferred amounts from lease modifications.

Investing Activities

Net cash flow used in investing activities is impacted by the timing and extent of our real estate development, capital improvements, and acquisition and disposition activities during the period.

Net cash used in investing activities of $23.0 million for the three months ended March 31, 2022 increased by $38.4 million compared to net cash provided by investing activities of $15.4 million for the three months ended March 31, 2021 primarily due to (i) $23.2 million decrease in cash provided by the sale of properties, (ii) $11.3 million increase in cash used for real estate development and capital improvements, and (iii) $3.9 million increase in cash used for the acquisition of real estate.

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The Company has 20 active development, redevelopment or anchor repositioning projects with total estimated costs of $207.1 million, of which $70.7 million has been incurred and $136.4 million remains to be funded as of March 31, 2022.

The following summarizes capital expenditures presented on a cash basis for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Capital expenditures:
Development and redevelopment costs	$	15,562	$	5,323
Capital improvements	3,318		2,205
Tenant improvements and allowances	198		272
Total capital expenditures	$	19,078	$	7,800

Financing Activities

Net cash flow used in financing activities is impacted by the timing and extent of issuances of debt and equity securities, distributions paid to common shareholders and unitholders of the Operating Partnership, as well as principal and other payments associated with our outstanding indebtedness.

Net cash used in financing activities of $23.3 million for the three months ended March 31, 2022 decreased by $53.2 million from cash used in financing activities of $76.6 million for the three months ended March 31, 2021, primarily due to a $54.6 million decrease in distributions to shareholders and unitholders of the Operating Partnership for declaration of a special dividend in the fourth quarter of 2020, paid in January 2021, offset by a $1.7 million increase in debt repayments.

During 2021 we established an at-the-market equity program (the “ATM Program”), pursuant to which we may offer and sell common shares, par value $0.01 per share, with an aggregate gross sales price of up to $250 million. As of March 31, 2022 we have not issued any common shares under the ATM Program. Refer to Note 14 Equity and Noncontrolling Interest in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information related to this program.

Contractual Obligations

We have contractual obligations related to our mortgage loans that are both fixed and variable. Our variable rate loans bear interest at a floating rate based on LIBOR, plus an applicable margin of 1.6% to 1.9%. When LIBOR is discontinued, the interest rates of our LIBOR-indexed debt following such event will be based on either alternate base rates, such as the Secured Overnight Financing Rate (“SOFR”), or agreed upon replacement rates. While such an event would not affect our ability to borrow or maintain already outstanding borrowings, it could result in higher interest rates. Further information on our mortgage loans can be found in Note 6 to the consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. In addition, we have contractual obligations for certain properties that are subject to long-term ground and building leases where a third party owns and has leased the underlying land to us. We also have non-cancelable operating leases pertaining to office space from which we conduct our business.

Additional contractual obligations that are not considered to be long-term, fixed in amount or easily determinable include:

•Obligations related to construction and development contracts. Such contracts or obligations will generally be due over the next two years;

•Obligations related to maintenance contracts, which can typically be canceled upon 30 to 60 days’ notice without penalty;

•Obligations related to employment contracts with certain executive officers and subject to cancellation by either the Company or the executive without cause upon notice; and

•Recorded debt premiums or discounts.

We believe that cash flows from our current operations, cash on hand, the line of credit under our revolving credit agreement, the potential to refinance our loans and our general ability to access the capital markets will be sufficient to finance our operations and fund our obligations in both the short-term and long-term.

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Termination of Management Agreements with Vornado

In connection with the Company’s spin-off from Vornado Realty Trust (“Vornado”) in January 2015, the Company and Vornado entered into management agreements under which the Company provided management, development, leasing and other services to certain properties owned by Vornado and its affiliates, including Interstate Properties (“Interstate”), a partnership in which Steven Roth, Chairman of the Board and Chief Executive Officer of Vornado and a member of our Board of Trustees, is the managing general partner, and Alexander’s, Inc., a company that Vornado owns a material interest in. Effective March 31, 2022, the Company and Vornado agreed to terminate these management agreements, other than with respect to a few ongoing projects that are expected to be completed by the middle of 2022. For the three months ended March 31, 2022 and the year ended December 31, 2021, we recognized $0.2 million and $1.2 million, respectively, of management and leasing fee income from these management agreements and do not expect to earn any material fees after March 31, 2022.

Cybersecurity

Cybersecurity is an integral part of the Board of Trustees’ and the Audit Committee’s risk analysis and discussions with management. As we see increased reliance on information technology in the workplace and business operations, and a continued shift to remote and hybrid work schedules, Urban Edge has employed several measures to mitigate cyber risks.

In addition to a dedicated Information technology and cybersecurity team handling monitoring and daily operations, the Company engages an independent third-party cybersecurity team for advisory and penetration testing. We also have a Cyber Risk Committee which works in conjunction with the Computer Incident Response Team (CIRT) to develop strategies to mitigate risks and to address any cyber issues that may arise. The Cyber Risk Committee meets quarterly to review emerging threats, controls, and procedures.

We utilize a risk-based approach following the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework (CSF), and Microsoft best practices. Our policies and procedures are reviewed and updated annually by the Cyber Risk Committee and incorporate third-party assessments to benchmark ourselves against industry standards. The Company utilizes advanced endpoint protection, firewalls, intrusion detection and prevention, threat intelligence, security event logging and correlation, and backup and redundancy systems. The Company also has cybersecurity coverage incorporated in its insurance policies.

We circulate communications pieces alerting users to new emerging risks and require all employees to complete quarterly security awareness trainings. Additionally, we conduct internal phishing exercises to gauge the effectiveness of the trainings and record response rates for these tests to assess the need for additional training.

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ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

We have exposure to fluctuations in interest rates, which are sensitive to many factors that are beyond our control. The following table discusses our exposure to hypothetical changes in market rates of interest on interest expense for our variable rate debt and fixed-rate debt. Interest rate risk amounts were determined by considering the impact of hypothetical interest rates on our debt. This analysis does not take into account all of the factors that may affect our debt, such as the effect that a changing interest rate environment could have on the overall level of economic activity or the action that our management might take to reduce our exposure to the change. This analysis assumes no change in our financial structure. Our exposure to a change in interest rates is summarized in the table below. As of March 31, 2022, all of our variable rate debt outstanding had rates indexed to LIBOR.

	2022							2021
(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 mortgages	$	159,828		1.98%	$	1,598		$	161,084		1.85%
Fixed rate mortgages	1,530,909			4.09%	—		(2)	1,534,324			4.10%
	$	1,690,737	(1)		$	1,598		$	1,695,408	(1)

(1) Excludes unamortized debt issuance costs of $7.8 million and $8.2 million as of March 31, 2022 and December 31, 2021, respectively.

(2) If the weighted average interest rate of our fixed rate debt increased by 1% (i.e. due to refinancing at higher rates), annualized interest expense would have increased by approximately $15.3 million based on outstanding balances as of March 31, 2022.

We may utilize various financial instruments to mitigate the impact of interest rate fluctuations on our cash flows and earnings, including hedging strategies, depending on our analysis of the interest rate environment and the costs and risks of such strategies. As of March 31, 2022, we did not have any material hedging instruments in place.

Fair Value of Debt

The estimated fair value of our consolidated debt is calculated based on current market prices and discounted cash flows at the current rate at which similar loans would be made to borrowers with similar credit ratings for the remaining term of such debt. As of March 31, 2022, the estimated fair value of our consolidated debt was $1.6 billion.

Other Market Risks

As of March 31, 2022, we had no material exposure to any other market risks (including foreign currency exchange risk or commodity price risk).

In making this determination and for purposes of the SEC’s market risk disclosure requirements, we have estimated the fair value of our financial instruments at March 31, 2022 based on pertinent information available to management as of that date. Although management is not aware of any factors that would significantly affect the estimated amounts as of March 31, 2022, future estimates of fair value and the amounts which may be paid or realized in the future may differ significantly from amounts presented.

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ITEM 4.    CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures (Urban Edge Properties)

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) that are designed to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures. Because of inherent limitations, disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of disclosure controls and procedures are met.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective.

There have not been any changes in our internal control over financial reporting (as defined in Rule 13a-15(f)) that occurred during the three months ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Evaluation of Disclosure Controls and Procedures (Urban Edge Properties LP)

The Operating Partnership’s management maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) that are designed to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer of our general partner, as appropriate to allow timely decisions regarding required disclosures. Because of inherent limitations, disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of disclosure controls and procedures are met.

The Operating Partnership’s management, with the participation of the Chief Executive Officer and Chief Financial Officer of our general partner, evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer of our general partner concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective.

There have not been any changes in our internal control over financial reporting (as defined in Rule 13a-15(f)) that occurred during the three months ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

We are party to various legal actions that arise in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not expected to have a material adverse effect on our financial position, results of operations or cash flows.

ITEM 1A.    RISK FACTORS

Except to the extent additional factual information disclosed elsewhere in this Quarterly Report on Form 10-Q relates to such risk factors (including, without limitation, the matters discussed in Part I, “Item 2-Management’s Discussion and Analysis of Financial Condition and Results of Operations”), there were no material changes to the risk factors disclosed in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 16, 2022.

34

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Urban Edge Properties

(a) Recent Sales of Unregistered Securities:

During the three months ended March 31, 2022, we issued 250,000 common shares in exchange for 250,000 OP Units that were held by certain limited partners of the Operating Partnership in connection with a prior acquisition. OP Units are generally redeemable for cash or, at our discretion, exchangeable into shares of our common stock on a one-for-one basis. The cash redemption amount per OP Unit is based on the market price of a share of our common stock at the time of redemption. These shares of common stock were issued in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. We relied on the exemption under Section 4(a)(2) based upon factual representations received from the limited partners who received the common shares.

(b) Use of Proceeds from Sales of Registered Securities: Not applicable.

(c) Issuer Purchases of Equity Securities:

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	(d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plan or Program(1)
January 1, 2022 - January 31, 2022	—		$	—	—	$	145,900,000
February 1, 2022 - February 28, 2022	4,992	(2)	17.97		—	$	145,900,000
March 1, 2022 - March 31, 2022	—		—		—	$	145,900,000
Total	4,992		$	17.97	—

(1) In March 2020, the 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 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.

(2) Represents common shares surrendered by employees to us, to satisfy such employees’ tax withholding obligations in connection with the vesting of restricted common shares.

Urban Edge Properties LP

(a) Recent Sales of Unregistered Securities: Not applicable.

(b) Use of Proceeds from Sales of Registered Securities: Not applicable.

(c) Issuer Purchases of Equity Securities: Not applicable.

Period	(a) Total Number of Units Purchased		(b) Average Price Paid per Unit		(c) Total Number of Units Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Units that May Yet be Purchased Under the Plan or Program
January 1, 2022 - January 31, 2022	—		$	—	—	$	—
February 1, 2022 - February 28, 2022	4,992	(1)	17.97		—	$	—
March 1, 2022 - March 31, 2022	—		—		—	$	—
Total	4,992		$	17.97	—

(1) Represents OP Units previously held by the Company that were redeemed in connection with the surrender of restricted common shares by employees to the Company to satisfy such employees’ tax withholding obligations in connection with the vesting of restricted common shares..

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.    MINE SAFETY DISCLOSURES

Not applicable.

35

ITEM 5.     OTHER INFORMATION

None.

ITEM 6.    EXHIBITS

The exhibits listed below are included in, or incorporated by reference into, this Quarterly Report on Form 10-Q.

INDEX TO EXHIBITS

The following exhibits are included as part of this Quarterly Report on Form 10-Q:

Exhibit Number	Exhibit Description
3.1	Amended and Restated Bylaws of Urban Edge Properties (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by Urban Edge Properties with the SEC on March 2, 2022)
31.1*	Certification by the Chief Executive Officer for Urban Edge Properties pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification by the Chief Financial Officer for Urban Edge Properties pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3*	Certification by the Chief Executive Officer for Urban Edge Properties LP pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.4*	Certification by the Chief Financial Officer for Urban Edge Properties LP pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification by the Chief Executive Officer and Chief Financial Officer for Urban Edge Properties pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification by the Chief Executive Officer and Chief Financial Officer for Urban Edge Properties LP pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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.*)

* Filed herewith

** In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

36

PART IV

SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

URBAN EDGE PROPERTIES

(Registrant)

/s/ Mark Langer

Mark Langer, Chief Financial Officer

Date: May 5, 2022

URBAN EDGE PROPERTIES LP

By: Urban Edge Properties, General Partner

/s/ Mark Langer

Mark Langer, Chief Financial Officer

Date: May 5, 2022

37

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Jeffrey S. Olson, certify that:

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.

May 5, 2022

/s/ Jeffrey S. Olson

Jeffrey S. Olson

Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Mark Langer, certify that:

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.

May 5, 2022

/s/ Mark Langer

Mark Langer

Chief Financial Officer of Urban Edge Properties

EX-31.3

EXHIBIT 31.3

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Jeffrey S. Olson, certify that:

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.

May 5, 2022

/s/ Jeffrey S. Olson

Jeffrey S. Olson

Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties, general partner of Urban Edge Properties LP

EX-31.4

EXHIBIT 31.4

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Mark Langer, certify that:

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.

May 5, 2022

/s/ Mark Langer

Mark Langer

Chief Financial Officer of Urban Edge Properties, general partner of Urban Edge Properties LP

EX-32.1

EXHIBIT 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsection (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code), the undersigned officer of Urban Edge Properties, hereby certifies, to such officer’s knowledge, that:

The Quarterly Report on Form 10-Q for the period ended March 31, 2022(the “Report”) of Urban Edge Properties fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Urban Edge Properties.

May 5, 2022		/s/ Jeffrey S. Olson
	Name:	Jeffrey S. Olson
	Title:	Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties
May 5, 2022		/s/ Mark Langer
	Name:	Mark Langer
	Title:	Chief Financial Officer of Urban Edge Properties

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished as an exhibit to the Report pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 and, accordingly, is not being filed with the Securities and Exchange Commission as part of the Report and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report, irrespective of any general incorporation language contained in such filing).

EX-32.2

EXHIBIT 32.2

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsection (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code), the undersigned officer of Urban Edge Properties, hereby certifies, to such officer’s knowledge, that:

The Quarterly Report on Form 10-Q for the period ended March 31, 2022(the “Report”) of Urban Edge Properties LP fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Urban Edge Properties LP.

May 5, 2022		/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 Urban Edge Properties LP
May 5, 2022		/s/ Mark Langer
	Name:	Mark Langer
	Title:	Chief Financial Officer of Urban Edge Properties, general partner of Urban Edge Properties LP

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished as an exhibit to the Report pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 and, accordingly, is not being filed with the Securities and Exchange Commission as part of the Report and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report, irrespective of any general incorporation language contained in such filing).

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
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		117,427,382
Entity Central Index Key	0001611547
Amendment Flag	false
Document Fiscal Year Focus	2022
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

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Real estate, at cost:
Land	$ 542,131	$ 543,827
Buildings and improvements	2,454,897	2,441,797
Construction in progress	223,698	212,296
Furniture, fixtures and equipment	7,716	7,530
Total	3,228,442	3,205,450
Accumulated depreciation and amortization	(772,789)	(753,947)
Real estate, net	2,455,653	2,451,503
Operating lease right-of-use assets	67,618	69,361
Cash and cash equivalents	151,789	164,478
Restricted cash	46,238	55,358
Tenant and other receivables	17,318	15,812
Receivable arising from the straight-lining of rents	63,203	62,692
Identified intangible assets, net of accumulated amortization of $37,024 and $37,361, respectively	68,007	71,107
Deferred leasing costs, net of accumulated amortization of $18,351 and $17,641, respectively	20,791	20,694
Prepaid expenses and other assets	70,620	74,111
Total assets	2,961,237	2,985,116
Liabilities:
Mortgages payable, net	1,682,929	1,687,190
Operating lease liabilities	62,931	64,578
Accounts payable, accrued expenses and other liabilities	75,962	84,829
Identified intangible liabilities, net of accumulated amortization of $36,082 and $35,029, respectively	98,282	100,625
Total liabilities	1,920,104	1,937,222
Commitments and contingencies (Note 10)
Shareholders’ equity:
Common shares: $0.01 par value; 500,000,000 shares authorized and 117,430,735 and 117,147,986 shares issued and outstanding, respectively	1,173	1,170
Additional paid-in capital	1,001,006	1,001,253
Accumulated deficit	(16,399)	(7,091)
Noncontrolling interests:
Operating partnership	42,001	39,616
Consolidated subsidiaries	13,352	12,946
Total equity	1,041,133	1,047,894
Total liabilities and equity	$ 2,961,237	$ 2,985,116

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands	Mar. 31, 2022 USD ($) $ / shares shares
Statement of Financial Position [Abstract]
Accumulated depreciation, identifiable intangible assets	$ 37,024
Accumulated amortization, deferred leasing costs	18,351
Accumulated amortization, identified intangible liabilities	$ 36,082
Common stock, par value (in dollars per share) | $ / shares	$ 0.01
Common stock, shares authorized (in shares) | shares	500,000,000
Common stock, shares, outstanding (in shares) | shares	117,430,735

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
REVENUE
Total revenue	$ 100,201	$ 95,661
EXPENSES
Depreciation and amortization	24,527	22,875
Real estate taxes	15,975	16,601
Property operating	21,205	20,291
General and administrative	11,121	8,668
Lease expense	3,135	3,306
Total expenses	75,963	71,741
Gain on sale of real estate	0	11,722
Interest income	205	136
Interest and debt expense	(14,004)	(14,827)
Income before income taxes	10,439	20,951
Income tax expense	(905)	(235)
Net income	9,534	20,716
Less net (income) loss attributable to noncontrolling interests in:
Operating partnership	(387)	(875)
Consolidated subsidiaries	339	79
Net income (loss) attributable to common shareholders	$ 9,486	$ 19,920
Earnings per common share - Basic (in dollars per share)	$ 0.08	$ 0.17
Earnings per common share - Diluted (in dollars per share)	$ 0.08	$ 0.17
Weighted average shares outstanding - Basic (in shares)	117,330	116,956
Weighted average shares outstanding - Diluted (in shares)	117,393	117,024
Management and development fees
REVENUE
Revenues	$ 240	$ 365
Other income
REVENUE
Revenues	545	677
Rental Revenue
REVENUE
Revenues	99,416	94,619
Urban Edge Properties LP
REVENUE
Total revenue	100,201	95,661
EXPENSES
Depreciation and amortization	24,527	22,875
Real estate taxes	15,975	16,601
Property operating	21,205	20,291
General and administrative	11,121	8,668
Lease expense	3,135	3,306
Total expenses	75,963	71,741
Gain on sale of real estate	0	11,722
Interest income	205	136
Interest and debt expense	(14,004)	(14,827)
Income before income taxes	10,439	20,951
Income tax expense	(905)	(235)
Net income	9,534	20,716
Less net (income) loss attributable to noncontrolling interests in:
Consolidated subsidiaries	339	79
Net income (loss) attributable to common shareholders	$ 9,873	$ 20,795
Earnings per common share - Basic (in dollars per share)	$ 0.08	$ 0.17
Earnings per common share - Diluted (in dollars per share)	$ 0.08	$ 0.17
Weighted average shares outstanding - Basic (in shares)	121,188	120,763
Weighted average shares outstanding - Diluted (in shares)	122,187	122,166
Urban Edge Properties LP | Management and development fees
REVENUE
Revenues	$ 240	$ 365
Urban Edge Properties LP | Other income
REVENUE
Revenues	545	677
Urban Edge Properties LP | Rental Revenue
REVENUE
Revenues	$ 99,416	$ 94,619

XML

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Urban Edge Properties LP	Urban Edge Properties LP Accumulated Earnings (Deficit)	Urban Edge Properties LP NCI in 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	NCI in Consolidated Subsidiaries	Operating Partnership Urban Edge Properties LP Limited Partners
Beginning balance (in shares) at Dec. 31, 2020					117,014,317	4,729,010		117,014,317
Beginning balance at Dec. 31, 2020	$ 995,893	$ 995,893	$ (42,313)	$ 5,872	$ 991,032	$ 41,302	[1]	$ 1,169	$ 989,863	$ (39,467)	$ 38,456	$ 5,872
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders/unitholders	19,920	20,795	20,795							19,920
Net income (loss) attributable to noncontrolling interests	796	(79)		(79)							875	(79)
Common units issued as a result of common shares issued by Urban Edge (in shares)					24,283
Common units issued as a result of common shares issued by Urban Edge		(1)	83		$ (84)
Limited partnership units issued, net (in shares)						623,634
Reallocation of noncontrolling interests	0	0			(2,817)	$ 2,817	[1]		(2,817)		2,817
Common shares issued (in shares)								24,283
Common shares issued	1							$ 1	83	(83)
Dividends to common shareholders	(17,515)									(17,515)
Distributions to redeemable NCI	(711)										(711)
Distributions to Partners		(18,226)	(18,226)
Contributions from noncontrolling interests	511	511										511
Share-based compensation expense	2,683	2,683			$ 597	$ 2,086	[1]		597		2,086
Share-based awards retained for taxes (in shares)					(12,311)			(12,311)
Share-based awards retained for taxes	(208)	(208)			$ (208)				(208)
Ending balance (in shares) at Mar. 31, 2021					117,026,289	5,352,644		117,026,289
Ending balance at Mar. 31, 2021	$ 1,001,370	$ 1,001,370	(39,827)	6,304	$ 988,688	$ 46,205	[1]	$ 1,170	987,518	(37,145)	43,523	6,304
Noncontrolling interest percentage													4.40%
Beginning balance (in shares) at Dec. 31, 2021	117,147,986	117,147,986			117,147,986	4,662,654		117,147,986
Beginning balance at Dec. 31, 2021	$ 1,047,894	$ 1,047,894	(8,505)	12,946	$ 1,002,423	$ 41,030	[2]	$ 1,170	1,001,253	(7,091)	39,616	12,946
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders/unitholders	9,486	9,873	9,873							9,486
Net income (loss) attributable to noncontrolling interests	48	(339)		(339)							387	(339)
Common units issued as a result of common shares issued by Urban Edge (in shares)					37,741	590,766
Common units issued as a result of common shares issued by Urban Edge		1	21		$ (20)
Units redeemed for common shares (in shares)					250,000	(250,000)		250,000
Equity redemption of OP units	$ 4,248	4,248			$ 2,124	$ 2,124		$ 3	2,121		2,124
Repurchase of common shares (in shares)	0
Reallocation of noncontrolling interests	$ (4,248)	(4,248)			(2,619)	(1,629)	[2]		(2,619)		(1,629)
Common shares issued (in shares)								37,741
Common shares issued	(1)								20	(21)
Dividends to common shareholders	(18,773)									(18,773)
Distributions to redeemable NCI	(773)										(773)
Distributions to Partners		(19,546)	(19,546)
Contributions from noncontrolling interests	745	745		745								745
Share-based compensation expense	2,597	2,597			$ 321	$ 2,276	[2]		321		2,276
Share-based awards retained for taxes (in shares)					(4,992)			(4,992)
Share-based awards retained for taxes	$ (90)	$ (90)			$ (90)				(90)
Ending balance (in shares) at Mar. 31, 2022	117,430,735	117,430,735						117,430,735
Ending balance (in shares) at Mar. 31, 2022					117,430,735	5,003,420
Ending balance at Mar. 31, 2022	$ 1,041,133	$ 1,041,133	$ (18,199)	$ 13,352	$ 1,002,179	$ 43,801	[2]	$ 1,173	$ 1,001,006	$ (16,399)	$ 42,001	$ 13,352
Noncontrolling interest percentage													4.10%

[1] Limited partners have a 4.4% common limited partnership interest in the Operating Partnership as of March 31, 2021 in the form of Operating Partnership Units (“OP Units”) and Long-Term Incentive Plan Units (“LTIP Units”).

[2] Limited partners have a 4.1% common limited partnership interest in the Operating Partnership as of March 31, 2022 in the form of OP and LTIP Units.

XML

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Distributions to redeemable NCI (in dollars per unit)	$ 0.16	$ 0.15
Accumulated Earnings (Deficit) | Urban Edge Properties LP
Dividends on common shares (in dollars per share)	0.16	0.15
Accumulated Earnings (Deficit)
Dividends on common shares (in dollars per share)	0.16	0.15
Operating Partnership
Distributions to redeemable NCI (in dollars per unit)	$ 0.16	$ 0.15
Operating Partnership | Limited Partners | Urban Edge Properties LP
Noncontrolling interest percentage	4.10%	4.40%

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 9,534	$ 20,716
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	24,968	23,330
Gain on sale of real estate	0	(11,722)
Amortization of below market leases, net	(1,974)	(2,412)
Noncash lease expense	1,743	1,813
Straight-lining of rent	(511)	964
Share-based compensation expense	2,597	2,683
Change in operating assets and liabilities:
Tenant and other receivables	(1,507)	(876)
Deferred leasing costs	(1,025)	(600)
Prepaid expenses and other assets	2,893	(6,879)
Lease liabilities	(1,648)	(1,645)
Accounts payable, accrued expenses and other liabilities	(10,549)	(6,547)
Net cash provided by operating activities	24,521	18,825
CASH FLOWS FROM INVESTING ACTIVITIES
Real estate development and capital improvements	19,078	7,810
Acquisitions of real estate	3,940	0
Proceeds from sale of operating properties	0	23,208
Net cash (used in) provided by investing activities	(23,018)	15,398
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(4,421)	(2,727)
Dividends to common shareholders	(18,773)	(71,348)
Distributions to redeemable noncontrolling interests	(773)	(2,784)
Taxes withheld for vested restricted shares	(90)	(208)
Contributions from noncontrolling interests	745	511
Net cash used in financing activities	(23,312)	(76,556)
Net decrease in cash and cash equivalents and restricted cash	(21,809)	(42,333)
Cash and cash equivalents and restricted cash at beginning of period	219,836	419,253
Cash and cash equivalents and restricted cash at end of period	198,027	376,920
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, net of amounts capitalized of $1,733 and $81, respectively	13,261	16,015
Cash payments for income taxes	896	3
NON-CASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures included in accounts payable and accrued expenses	19,204	8,632
Write-off of fully depreciated assets	742	1,107
Cash and cash equivalents at beginning of period	164,478	384,572
Cash and cash equivalents at end of period	151,789	324,508
Restricted cash at beginning of period	55,358	34,681
Restricted cash at end of period	46,238	52,412
Cash and cash equivalents and restricted cash at beginning/end of period	198,027	376,920
Urban Edge Properties LP
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	9,534	20,716
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	24,968	23,330
Gain on sale of real estate	0	(11,722)
Amortization of below market leases, net	(1,974)	(2,412)
Noncash lease expense	1,743	1,813
Straight-lining of rent	(511)	964
Share-based compensation expense	2,597	2,683
Change in operating assets and liabilities:
Tenant and other receivables	(1,507)	(876)
Deferred leasing costs	(1,025)	(600)
Prepaid expenses and other assets	2,893	(6,879)
Lease liabilities	(1,648)	(1,645)
Accounts payable, accrued expenses and other liabilities	(10,549)	(6,547)
Net cash provided by operating activities	24,521	18,825
CASH FLOWS FROM INVESTING ACTIVITIES
Real estate development and capital improvements	19,078	7,810
Acquisitions of real estate	3,940	0
Proceeds from sale of operating properties	0	23,208
Net cash (used in) provided by investing activities	(23,018)	15,398
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(4,421)	(2,727)
Distributions to partners	19,546	74,132
Taxes withheld for vested restricted shares	(90)	(208)
Contributions from noncontrolling interests	745	511
Net cash used in financing activities	(23,312)	(76,556)
Net decrease in cash and cash equivalents and restricted cash	(21,809)	(42,333)
Cash and cash equivalents and restricted cash at beginning of period	219,836	419,253
Cash and cash equivalents and restricted cash at end of period	198,027	376,920
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, net of amounts capitalized of $1,733 and $81, respectively	13,261	16,015
Cash payments for income taxes	896	3
NON-CASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures included in accounts payable and accrued expenses	19,204	8,632
Write-off of fully depreciated assets	742	1,107
Cash and cash equivalents at beginning of period	164,478	384,572
Cash and cash equivalents at end of period	151,789	324,508
Restricted cash at beginning of period	55,358	34,681
Restricted cash at end of period	46,238	52,412
Cash and cash equivalents and restricted cash at beginning/end of period	$ 198,027	$ 376,920

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Capitalized interest	$ 1,733	$ 81
Urban Edge Properties LP
Capitalized interest	$ 1,733	$ 81

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CONSOLIDATED BALANCE SHEETS - UELP - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Real estate, at cost:
Land	$ 542,131	$ 543,827
Buildings and improvements	2,454,897	2,441,797
Construction in progress	223,698	212,296
Furniture, fixtures and equipment	7,716	7,530
Total	3,228,442	3,205,450
Accumulated depreciation and amortization	(772,789)	(753,947)
Real estate, net	2,455,653	2,451,503
Operating lease right-of-use assets	67,618	69,361
Cash and cash equivalents	151,789	164,478
Restricted cash	46,238	55,358
Tenant and other receivables	17,318	15,812
Receivable arising from the straight-lining of rents	63,203	62,692
Identified intangible assets, net of accumulated amortization of $37,024 and $37,361, respectively	68,007	71,107
Deferred leasing costs, net of accumulated amortization of $18,351 and $17,641, respectively	20,791	20,694
Prepaid expenses and other assets	70,620	74,111
Total assets	2,961,237	2,985,116
Liabilities:
Mortgages payable, net	1,682,929	1,687,190
Operating lease liabilities	62,931	64,578
Accounts payable, accrued expenses and other liabilities	75,962	84,829
Identified intangible liabilities, net of accumulated amortization of $36,082 and $35,029, respectively	98,282	100,625
Total liabilities	1,920,104	1,937,222
Commitments and contingencies (Note 10)
Partners’ capital:
Accumulated deficit	(16,399)	(7,091)
Consolidated subsidiaries	13,352	12,946
Total equity	1,041,133	1,047,894
Total liabilities and equity	2,961,237	2,985,116
Urban Edge Properties LP
Real estate, at cost:
Land	542,131	543,827
Buildings and improvements	2,454,897	2,441,797
Construction in progress	223,698	212,296
Furniture, fixtures and equipment	7,716	7,530
Total	3,228,442	3,205,450
Accumulated depreciation and amortization	(772,789)	(753,947)
Real estate, net	2,455,653	2,451,503
Operating lease right-of-use assets	67,618	69,361
Cash and cash equivalents	151,789	164,478
Restricted cash	46,238	55,358
Tenant and other receivables	17,318	15,812
Receivable arising from the straight-lining of rents	63,203	62,692
Identified intangible assets, net of accumulated amortization of $37,024 and $37,361, respectively	68,007	71,107
Deferred leasing costs, net of accumulated amortization of $18,351 and $17,641, respectively	20,791	20,694
Prepaid expenses and other assets	70,620	74,111
Total assets	2,961,237	2,985,116
Liabilities:
Mortgages payable, net	1,682,929	1,687,190
Operating lease liabilities	62,931	64,578
Accounts payable, accrued expenses and other liabilities	75,962	84,829
Identified intangible liabilities, net of accumulated amortization of $36,082 and $35,029, respectively	98,282	100,625
Total liabilities	1,920,104	1,937,222
Commitments and contingencies (Note 10)
Partners’ capital:
General partner: 117,430,735 and 117,147,986 units outstanding, respectively	1,002,179	1,002,423
Limited partners: 5,003,420 and 4,662,654 units outstanding, respectively	43,801	41,030
Accumulated deficit	(18,199)	(8,505)
Total partners’ capital	1,027,781	1,034,948
Consolidated subsidiaries	13,352	12,946
Total equity	1,041,133	1,047,894
Total liabilities and equity	$ 2,961,237	$ 2,985,116

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CONSOLIDATED BALANCE SHEETS - UELP (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accumulated depreciation, identifiable intangible assets	$ 37,024	$ 37,361
Accumulated amortization, deferred leasing costs	18,351	17,641
Accumulated amortization, identified intangible liabilities	$ 36,082	$ 35,029
Common stock, shares, outstanding (in shares)	117,430,735	117,147,986
Urban Edge Properties LP
Accumulated depreciation, identifiable intangible assets	$ 37,024	$ 37,361
Accumulated amortization, deferred leasing costs	18,351	17,641
Accumulated amortization, identified intangible liabilities	$ 36,082	$ 35,029
Common stock, shares, outstanding (in shares)	117,430,735	117,147,986
Limited Partners, units outstanding (in units)	5,003,420	4,662,654

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ORGANIZATION

3 Months Ended

Mar. 31, 2022

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 Washington, D.C. to Boston corridor. 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 (“OP Units”). As of March 31, 2022, Urban Edge owned approximately 95.9% of the outstanding common OP Units with the remaining limited OP Units held by members of management and the 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.

As of March 31, 2022, our portfolio consisted of 68 shopping centers, five malls and two industrial parks totaling approximately 17.2 million square feet (“sf”), which is inclusive of a 95% controlling interest in our property in Walnut Creek, CA (Mt. Diablo), and an 82.5% controlling interest in Sunrise Mall, in Massapequa, NY.

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BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

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, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022. 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, 2021, as filed with the Securities and Exchange Commission (“SEC”).

The consolidated balance sheets as of March 31, 2022 and December 31, 2021 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. As of March 31, 2022 and December 31, 2021, excluding the Operating Partnership, we consolidated two VIEs with total assets of $48.2 million and $48.5 million, respectively, and total liabilities of $24.5 million and $24.7 million, respectively. The consolidated statements of income for the three months ended March 31, 2022 and 2021 include the consolidated accounts of the Company, the Operating Partnership and the two VIEs. All intercompany transactions have been eliminated in consolidation.

Our primary business is the acquisition, management, development, and redevelopment of retail shopping centers and malls. We do not distinguish from 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 as of March 31, 2022. 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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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2022

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 under way 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 assumption of 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 evaluated for impairment whenever events or changes in circumstances 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, 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.

Tenant and Other Receivables and Changes in Collectibility Assessment — Tenant receivables include unpaid amounts billed to tenants, disputed enforceable charges and accrued revenues for future billings to tenants for property expenses. We evaluate the collectibility of amounts due from tenants and disputed enforceable charges on both a lease-by-lease and a portfolio-level, which result from the inability of tenants to make required payments under their operating lease agreements. We recognize changes in the collectibility assessment of these operating leases as adjustments to rental revenue in accordance with ASC 842 Leases. Management exercises judgment in assessing collectibility and considers payment history, current credit status and publicly available information about the financial condition of the tenant, among other factors. Tenant receivables and receivables arising from the straight-lining of rents are written-off directly when management deems the collectibility of substantially all future lease payments from a specific lease is not probable, at which point, the Company will begin recognizing revenue from such leases prospectively, based on actual amounts received. This write-off effectively reduces cumulative non-cash rental income recognized from the straight-lining of rents since lease commencement. If the Company subsequently determines that it is probable it will collect substantially all of the lessee’s remaining lease payments under the lease term, the Company will reinstate the receivables balance, including those arising from the straight-lining of rents.

Recently Issued Accounting Literature — In March 2020 and January 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04 Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2021-01 Reference Rate Reform (ASC 848): Scope which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 and ASU 2021-01 are effective for all entities as of March 12, 2020 through December 31, 2022. We currently do not anticipate the need to modify our existing debt agreements as a result of reference rate reform in the current year, however if any modification is executed as a result of reference rate reform, the Company will elect the optional expedient available under ASU 2020-04 and ASU 2021-01, which allows entities to account for the modification as if the modification was not substantial. We will disclose the nature of and reason for electing the optional expedient in each interim and annual financial statement period if and when applicable through December 31, 2022.

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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ACQUISITIONS AND DISPOSITIONS

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS AND DISPOSITIONS

Acquisitions

During the three months ended March 31, 2021, no acquisitions were completed by the Company. During the three months ended March 31, 2022, we closed on the following acquisition:

Date Purchased	Property Name	City	State	Square Feet	Purchase Price(1)
					(in thousands)
February 24, 2022	40 Carmans Road(2)	Massapequa	NY	12,000	$	4,260

(1) The total purchase price for the property acquired includes $0.1 million of transaction costs incurred related to the acquisition.

(2) The outparcel is included with Sunrise Mall in our total property count and non-GAAP metrics. The Company has an 82.5% controlling interest in the property with the remaining 17.5% owned by others.

The 12,000 sf outparcel acquired in February 2022, located at 40 Carmans Road, is adjacent to the entrance of our mall in Massapequa, NY. The aggregate purchase price of this outparcel has been allocated to buildings and improvements, and land of $3.1 million and $1.1 million, respectively. This acquisition supports the overall plans we currently have under way to redevelop Sunrise Mall.

Dispositions

During the three months ended March 31, 2022, no dispositions were completed by the Company.

During the three months ended March 31, 2021, we disposed of one property and one property parcel and received proceeds of $23.6 million, net of selling costs, resulting in an $11.7 million net gain on sale of real estate.

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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2022

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 $68.0 million and $98.3 million, respectively, as of March 31, 2022 and $71.1 million and $100.6 million, respectively, as of December 31, 2021.

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in additional rental income of $2.0 million and $2.4 million for the three months ended March 31, 2022 and 2021, respectively.

Amortization of acquired in-place leases inclusive of customer relationships resulted in additional depreciation and amortization expense of $2.8 million and $2.1 million for the three months ended March 31, 2022 and 2021, respectively.

The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2022 and the five succeeding years:

(Amounts in thousands)	Below-Market		Above-Market		In-Place Lease
Year	Operating Lease Amortization		Operating Lease Amortization		Amortization
2022(1)	$	5,789	$	(849)	$	(7,333)
2023	7,676		(1,092)		(8,355)
2024	7,440		(996)		(7,127)
2025	7,259		(803)		(6,082)
2026	6,881		(683)		(5,469)
2027	6,587		(458)		(4,905)

(1) Remainder of 2022.

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MORTGAGES PAYABLE

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

MORTGAGES PAYABLE

MORTGAGES PAYABLE

The following is a summary of mortgages payable as of March 31, 2022 and December 31, 2021.

(Amounts in thousands)	Maturity	Interest Rate at March 31, 2022	March 31, 2022		December 31, 2021
First mortgages secured by:
Variable rate
Cherry Hill (Plaza at Cherry Hill)(1)	5/24/2022	1.83%	$	27,947	$	28,244
Woodbridge (Plaza at Woodbridge)(1)	5/25/2022	1.83%	53,460		54,029
Jersey City (Hudson Commons)(2)	11/15/2024	2.13%	27,896		28,034
Watchung(2)	11/15/2024	2.13%	25,968		26,097
Bronx (1750-1780 Gun Hill Road)(2)	12/1/2024	2.13%	24,557		24,680
Total variable rate debt			159,828		161,084
Fixed rate
Paramus (Bergen Town Center - West)	4/8/2023	3.56%	300,000		300,000
Bronx (Shops at Bruckner)	5/1/2023	3.90%	9,530		9,698
Jersey City (Hudson Mall)	12/1/2023	5.07%	21,959		22,154
Yonkers Gateway Center	4/6/2024	4.16%	26,332		26,774
Brick	12/10/2024	3.87%	49,328		49,554
North Plainfield	12/10/2025	3.99%	24,991		25,100
Las Catalinas	2/1/2026	4.43%	122,906		123,977
Middletown	12/1/2026	3.78%	31,258		31,400
Rockaway	12/1/2026	3.78%	27,675		27,800
East Hanover (200 - 240 Route 10 West)	12/10/2026	4.03%	63,000		63,000
North Bergen (Tonnelle Ave)	4/1/2027	4.18%	100,000		100,000
Manchester	6/1/2027	4.32%	12,500		12,500
Millburn	6/1/2027	3.97%	22,829		22,944
Totowa	12/1/2027	4.33%	50,800		50,800
Woodbridge (Woodbridge Commons)	12/1/2027	4.36%	22,100		22,100
East Brunswick	12/6/2027	4.38%	63,000		63,000
East Rutherford	1/6/2028	4.49%	23,000		23,000
Brooklyn (Kingswood Center)	2/6/2028	5.07%	70,595		70,815
Hackensack	3/1/2028	4.36%	66,400		66,400
Marlton	12/1/2028	3.86%	37,400		37,400
East Hanover Warehouses	12/1/2028	4.09%	40,700		40,700
Union (2445 Springfield Ave)	12/10/2028	4.01%	45,600		45,600
Freeport (Freeport Commons)	12/10/2029	4.07%	43,100		43,100
Montehiedra	6/1/2030	5.00%	78,929		79,381
Montclair	8/15/2030	3.15%	7,250		7,250
Garfield	12/1/2030	4.14%	40,300		40,300
Woodmore Towne Centre	1/6/2032	3.39%	117,200		117,200
Mt Kisco	11/15/2034	6.40%	12,227		12,377
Total fixed rate debt			1,530,909		1,534,324
Total mortgages payable			1,690,737		1,695,408
	Unamortized debt issuance costs		(7,808)		(8,218)
Total mortgages payable, net			$	1,682,929	$	1,687,190

(1)Bears interest at one month LIBOR plus 160 bps.

(2)Bears interest at one month LIBOR plus 190 bps.

The net carrying amount of real estate collateralizing the above indebtedness amounted to approximately $1.4 billion as of March 31, 2022. 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, 2022, we were in compliance with all debt covenants.

As of March 31, 2022, the principal repayments of the Company’s total outstanding debt for the remainder of 2022 and the five succeeding years, and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,
2022(1)	$	94,244
2023	349,814
2024	163,721
2025	40,946
2026	230,694
2027	268,729
Thereafter	542,589

(1) Remainder of 2022.

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 to increase 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.

On June 3, 2020, we entered into a third amendment to the Agreement, which among other things, modified certain definitions and the measurement period for certain financial covenants to a trailing four-quarter period instead of the most recent quarter annualized. 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 change. The Agreement contains customary financial covenants including a maximum leverage ratio of 60% and a minimum fixed charge coverage ratio of 1.5x.

No amounts were drawn or outstanding under the Agreement as of March 31, 2022 or December 31, 2021. Financing costs associated with executing the Agreement of $2.0 million and $2.2 million as of March 31, 2022 and December 31, 2021, respectively, are included in the prepaid expenses and other assets line item of the consolidated balance sheets, as deferred financing costs, net.

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 service the debt and that we were unwilling to fund the shortfalls. In December 2020, the non-recourse mortgage loan on Las Catalinas Mall was modified to convert the mortgage from an amortizing 4.43% loan to interest only payments, starting at 3.00% in 2021 and increasing 50 basis points annually until returning to 4.43% in 2024 and thereafter. The terms of the modification enable the Company, at its option, to repay the loan at a discounted value of $72.5 million, beginning in August 2023 through the extended maturity date of February 2026.

While it is possible we will be able to repay the loan at the discounted value in the future, such repayment is contingent upon certain factors including the future operating performance of the property as well as the ability to meet all required payments on the loan. Therefore, in accordance with ASC 470-60 Troubled Debt Restructurings, the Company did not recognize a gain at the time of the restructuring, as the future cash payments, including contingent payments, are greater than the carrying value of the mortgage payable.

We have accrued interest of $5.4 million related to this mortgage, which is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheet as of March 31, 2022. We incurred $1.2 million of lender fees in connection with the loan modification, which are treated as a reduction of the mortgage payable balance and amortized over the term of the loan in accordance with the provisions under ASC 470-60.

Mortgage on The Outlets at Montehiedra

In connection with the refinancing of the loan secured by The Outlets at Montehiedra (“Montehiedra”) in the second quarter of 2020, the Company provided a $12.5 million limited corporate guarantee. The guarantee is reduced commensurate with the loan amortization schedule and will reduce to zero in approximately 4.5 years. As of March 31, 2022, the remaining exposure under the guarantee is $9.4 million. There was no separate liability recorded related to this guarantee.

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INCOME TAXES

3 Months Ended

Mar. 31, 2022

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. With the exception of the Company’s taxable REIT subsidiary (“TRS”), 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”) for tax years beginning after December 31, 2017) and may not be able to qualify as a REIT for the four subsequent taxable years. In addition to its TRS, the Company is subject to certain foreign, and state and local income taxes, in particular income taxes arising from its operating activities in Puerto Rico, which are included in income tax expense on the consolidated statements of income.

For U.S. federal income tax purposes, the Company and other minority members are partners in the Operating Partnership. As such, the partners are required to report their share of taxable income on their respective tax returns. However, during the three months ended March 31, 2022 and 2021, certain non-real estate operating activities that could not be performed by the Company, occurred through the Company’s TRS, which is subject to federal, state and local income taxes. These income taxes are included in income tax expense on the consolidated statements of income.

During the three months ended March 31, 2022, the Company was subject to Puerto Rico corporate income taxes on its allocable share of Puerto Rico operating activities. The Puerto Rico corporate income tax consists of a flat 18.5% tax rate plus a graduated income surcharge tax for a maximum corporate income tax rate of 37.5%. In addition, the Company is subject to a 10% branch profits tax on the earnings and profits generated from its allocable share of Puerto Rico operating activities and such tax is included in income tax expense on the consolidated statements of income.

For the three months ended March 31, 2022 and 2021, the Puerto Rico income tax expense was $0.9 million and $0.2 million, respectively. All amounts for the three months ended March 31, 2022 and 2021 are included in income tax expense on the consolidated statements of income.

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LEASES (Notes)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

LEASES

LEASES

All rental revenue was generated from operating leases for the three months ended March 31, 2022 and 2021, respectively. The components of rental revenue for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Rental Revenue
Fixed lease revenue	$	70,341	$	65,653
Variable lease revenue(1)	29,075		28,966
Total rental revenue	$	99,416	$	94,619

(1) Percentage rents for the three months ended March 31, 2022 and 2021 were $1.2 million and $0.5 million, respectively.

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2022

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, 2022 and December 31, 2021.

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 and mortgages payable. Cash and cash equivalents are carried at cost, which approximates fair value. The fair value of mortgages payable is calculated based on current market prices and discounted cash flows at the current rate at which similar loans would be made to borrowers with similar credit ratings for the remaining term of such debt, which is provided by a third-party specialist. The fair value of cash and cash equivalents are classified as Level 1 and the fair value of mortgages payable is classified as Level 2. The table below summarizes the carrying amounts and fair value of our Level 2 financial instruments as of March 31, 2022 and December 31, 2021.

	As of March 31, 2022				As of December 31, 2021
(Amounts in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Mortgages payable(1)	$	1,690,737	$	1,621,095	$	1,695,408	$	1,692,674

(1) Carrying amounts exclude unamortized debt issuance costs of $7.8 million and $8.2 million as of March 31, 2022 and December 31, 2021, 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.

No impairment charges were recognized during the three months ended March 31, 2022 or 2021.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Legal Matters

From time to time, we are a party to various legal proceedings, claims or regulatory inquiries and investigations arising out of, or incident to, our ordinary course of business. While we are unable to predict with certainty the outcome of any particular matter, management does not currently expect, when such matters are resolved, that our resulting exposure to loss contingencies, if any, will have a material adverse effect on our results of operations or consolidated financial position.

Redevelopment and Anchor Repositioning

The Company has 20 active development, redevelopment or anchor repositioning projects with total estimated costs of $207.1 million, of which $136.4 million remains to be funded as of March 31, 2022. We continue to monitor the stabilization dates of these projects, which can be impacted from economic conditions affecting our tenants, vendors and supply chains. We have identified future projects in our development pipeline, but we are under no obligation to execute and fund any of these projects and each of these projects is being further evaluated based on market conditions.

Insurance 

The Company maintains numerous insurance policies including for general liability, property, pollution, acts of terrorism, trustees’ and officers’, cyber, workers’ compensation and automobile-related liabilities. However, all such policies are subject to terms, conditions, exclusions, deductibles and sub-limits, amount other limiting factors. For example, the Company’s terrorism insurance excludes coverage for nuclear, biological, chemical or radiological terrorism events as defined by the Terrorism Risk Insurance Program Reauthorization Act.

The Company’s primary and excess insurance policies providing coverage for pollution related losses have an aggregate limit of $75 million and provide remediation and business interruption coverage for pollution incidents, which pursuant to our policies, expressly include the presence and dispersal of viruses. On December 23, 2020, the Company initiated litigation in New Jersey state court, Bergen County, under these policies to recover uncollected rents and other amounts resulting from the COVID-19 virus.

Insurance premiums are typically charged directly to each of the properties 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 consolidated financial position.

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 $1.7 million on our consolidated balance sheets as of March 31, 2022 and December 31, 2021, 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. As of March 31, 2022, there are no tenant bankruptcies that we believe will have a material adverse effect on our results of operations or consolidated financial position.

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PREPAID EXPENSES AND OTHER ASSETS

3 Months Ended

Mar. 31, 2022

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 on the consolidated balance sheets:

	Balance at
(Amounts in thousands)	March 31, 2022		December 31, 2021
Deferred tax asset, net	$	36,525	$	37,420
Other assets	17,669		19,712
Finance lease right-of-use asset	2,724		2,724
Deferred financing costs, net of accumulated amortization of $6,210 and $5,932, respectively	1,956		2,234
Prepaid expenses:
Real estate taxes	5,454		9,982
Insurance	5,127		1,088
Licenses/fees	1,165		951
Total Prepaid expenses and other assets	$	70,620	$	74,111

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ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

3 Months Ended

Mar. 31, 2022

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 and other liabilities on the consolidated balance sheets:

	Balance at
(Amounts in thousands)	March 31, 2022		December 31, 2021
Deferred tenant revenue	$	24,658	$	28,898
Accrued capital expenditures and leasing costs	19,960		19,164
Accrued interest payable	10,151		9,879
Other liabilities and accrued expenses	7,668		8,057
Security deposits	6,905		6,693
Accrued payroll expenses	3,613		9,134
Finance lease liability	3,007		3,004
Total accounts payable, accrued expenses and other liabilities	$	75,962	$	84,829

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INTEREST AND DEBT EXPENSE

3 Months Ended

Mar. 31, 2022

Other Income and Expenses [Abstract]

INTEREST AND DEBT EXPENSE

INTEREST AND DEBT EXPENSE

The following table sets forth the details of interest and debt expense on the consolidated statements of income:

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Interest expense	$	13,259	$	14,070
Amortization of deferred financing costs	745		757
Total Interest and debt expense	$	14,004	$	14,827

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EQUITY AND NONCONTROLLING INTEREST

3 Months Ended

Mar. 31, 2022

Noncontrolling Interest [Abstract]

EQUITY AND NONCONTROLLING INTEREST

EQUITY AND NONCONTROLLING INTEREST

At-The-Market Program

On May 5, 2021 the Company established an at-the-market equity program (the “ATM Program”), pursuant to which the Company may offer and sell common shares, par value $0.01 per share, with an aggregate gross sales price of up to $250 million. Sales under the ATM Program may be made from time to time, as needed, by means of ordinary brokers’ transactions or other transactions that are deemed to be “at the market” offerings, in privately negotiated transactions, which may include block trades, or as otherwise agreed with the sales agents.

As of March 31, 2022, the Company has not issued any common shares under the ATM Program. Future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common shares, and our capital needs. The Company has no obligation to sell any shares under the ATM Program.

Share Repurchase Program

The Company has a share repurchase program for up to $200 million, under which, 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, 2022 and 2021, no shares were repurchased by the Company. As of March 31, 2022, the Company has repurchased 5.9 million common shares at a weighted average share price of $9.22, for a total of $54.1 million. All share repurchases by the Company were completed between March and April of 2020. There is approximately $145.9 million remaining for share repurchases under this program.

Units of the Operating Partnership

The Operating Partnership’s capital includes general and common limited partnership interests in the operating partnership. As of March 31, 2022, Urban Edge owned approximately 95.9% 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 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.

Dividends and Distributions

During the three months ended March 31, 2022 and 2021, the Company declared distributions on common shares and OP Units of $0.16 and $0.15 per share/unit, respectively.

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% weighted-average interest in the Operating Partnership for the three months ended March 31, 2022. 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.

Noncontrolling Interests in Consolidated Subsidiaries

The Company’s noncontrolling interests relate to the 5% interest held by others in our property in Walnut Creek, CA (Mount Diablo) and 17.5% held by others in our property in Massapequa, NY. The net income attributable to noncontrolling interests is presented separately on our consolidated statements of income.

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SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [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:

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Share-based compensation expense components:
Time-based LTIP expense(1)	$	1,232	$	1,130
Performance-based LTIP expense(2)	1,045		956
Stock option expense	235		413
Restricted share expense	60		178
Deferred share unit (“DSU”) expense	25		6
Total Share-based compensation expense	$	2,597	$	2,683

(1) Expense for the three months ended March 31, 2022 includes the 2022, 2021, 2020 and 2019 LTI Plans.

(2) Expense for the three months ended March 31, 2022 includes the 2017 OPP plan and the 2022, 2021, 2020, 2019, and 2018 LTI Plans.

Equity award activity during the three months ended March 31, 2022 included: (i) 266,766 LTIP Units granted, (ii) 241,501 LTIP Units vested, (iii) 75,512 stock options vested, (iv) 44,214 restricted shares granted, (v) 17,375 restricted shares vested, (vi) 8,461 restricted shares forfeited, and (vii) 4,381 LTIP Units forfeited.

2022 Long-Term Incentive Plan

On February 11, 2022, the grant date, the Compensation Committee of the Board of Trustees approved the 2022 Long-Term Incentive Plan (“2022 LTI Plan”). The plan is a multi-year, equity compensation program under which participants, including our Chairman and Chief Executive Officer, receive awards in the form of LTIP Units that, with respect to one half of the program, vest based solely on the passage of time, and with respect to the other half of the program, are earned and vest if certain relative and absolute total shareholder return (“TSR”) and/or funds from operations (“FFO”) growth targets are achieved by the Company over a three-year performance period. The Company granted awards that represent 616,204 LTIP Units with a total grant date fair value under the 2022 LTI Plan of $8.6 million comprising both performance-based and time-based awards as described further below:

Performance-based awards

The 2022 LTI Plan has three separate performance-based award components that are measured independently. 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 “TSR Performance Period”) beginning on February 11, 2022 and ending on February 10, 2025. Participants also have the opportunity to earn awards in the form of LTIP Units if Urban Edge’s FFO growth component meets certain criteria over the three-year performance measurement period (the “FFO Performance Period”) beginning January 1, 2022 and ending on December 31, 2024. In terms of grant date fair value, each component represents one-third of the performance-based awards, or 16.7% of the overall 2022 LTI Plan.

Under the absolute TSR component, 50% of the LTIP Units will be earned if the Company’s TSR over the TSR Performance Period is equal to 18%, 100% of the LTIP Units will be earned if the Company’s TSR over the TSR Performance Period is equal to 27%, and 200% of the LTIP Units will be earned if the Company’s TSR over the TSR Performance Period is equal to or greater than 36%. If the Company’s absolute TSR is between such thresholds, earnings will be determined using linear interpolation. A maximum of 136,131 LTIP Units were granted under this component with a grant date fair value of approximately $1.4 million, determined using a Monte Carlo simulation to estimate the fair value through a risk-neutral premise.

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, 50% of the LTIP Units will be earned if the Company’s TSR over the TSR 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 TSR Performance Period is equal to the 55th percentile of the peer group, and 200% of the LTIP Units will be earned if the Company’s TSR over the TSR Performance Period is equal to or above the 75th percentile of the peer group. If the Company’s relative TSR is between such thresholds, earnings will be determined using linear interpolation. A maximum of 132,239 LTIP

Units were granted under this component with a grant date fair value of approximately $1.4 million, determined using a Monte Carlo simulation to estimate the fair value through a risk-neutral premise.

Under the FFO growth component, 50% of the LTIP Units will be earned if the Company’s FFO growth over the FFO Performance Period is equal to 3%, 100% of the LTIP Units will be earned if the Company’s FFO growth over the FFO Performance Period is equal to 5%, and 200% of the LTIP Units will be earned if the Company’s FFO growth over the FFO Performance Period is equal to or greater than 7%. If the Company’s FFO growth is between such thresholds, earnings will be determined using linear interpolation. 81,068 LTIP Units were granted, at target, under this component with a grant date fair value of approximately $1.4 million.

In the event of a change in control of the Company, the performance period will end on the date of any such event. As soon as practicable following the applicable performance period, the Compensation Committee will determine the number of units earned under each performance-based component, with 50% of the units earned vesting on such determination date, 25% vesting on the fourth anniversary of the grant date and 25% vesting on the fifth anniversary of the grant date.

Time-based awards

The time-based awards granted under the 2022 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 ratable over four years. As of March 31, 2022, the Company granted time-based awards under the 2022 LTI Plan that represent 266,766 LTIP Units with a grant date fair value of $4.3 million.

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EARNINGS PER SHARE AND UNIT

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE AND UNIT

EARNINGS PER SHARE AND UNIT

Urban Edge Earnings per Share

We calculate 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:

	Three Months Ended March 31,
(Amounts in thousands, except per share amounts)	2022		2021
Numerator:
Net income attributable to common shareholders	$	9,486	$	19,920
Less: Earnings allocated to unvested participating securities	(5)		(12)
Net income available for common shareholders - basic	$	9,481	$	19,908
Impact of assumed conversions:
OP and LTIP Units	—		—
Net income available for common shareholders - dilutive	$	9,481	$	19,908
Denominator:
Weighted average common shares outstanding - basic	117,330		116,956
Effect of dilutive securities(1):
Restricted share awards	63		68
Assumed conversion of OP and LTIP Units	—		—
Weighted average common shares outstanding - diluted	117,393		117,024
Earnings per share available to common shareholders:
Earnings per common share - Basic	$	0.08	$	0.17
Earnings per common share - Diluted	$	0.08	$	0.17

(1) For the three months ended March 31, 2022 and 2021, 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 these periods.

Operating Partnership Earnings per Unit

The following table sets forth the computation of basic and diluted earnings per unit:

	Three Months Ended March 31,
(Amounts in thousands, except per unit amounts)	2022		2021
Numerator:
Net income attributable to unitholders	$	9,873	$	20,795
Less: net income attributable to participating securities	(5)		(12)
Net income available for unitholders	$	9,868	$	20,783
Denominator:
Weighted average units outstanding - basic	121,188		120,763
Effect of dilutive securities issued by Urban Edge	63		68
Unvested LTIP Units	936		1,335
Weighted average units outstanding - diluted	122,187		122,166
Earnings per unit available to unitholders:
Earnings per unit - Basic	$	0.08	$	0.17
Earnings per unit - Diluted	$	0.08	$	0.17

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Accounting	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, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022. 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, 2021, as filed with the Securities and Exchange Commission (“SEC”).
Consolidation and Noncontrolling Interests	The consolidated balance sheets as of March 31, 2022 and December 31, 2021 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. As of March 31, 2022 and December 31, 2021, excluding the Operating Partnership, we consolidated two VIEs with total assets of $48.2 million and $48.5 million, respectively, and total liabilities of $24.5 million and $24.7 million, respectively. The consolidated statements of income for the three months ended March 31, 2022 and 2021 include the consolidated accounts of the Company, the Operating Partnership and the two VIEs. All intercompany transactions have been eliminated in consolidation.
Recently Issued Accounting Literature	Recently Issued Accounting Literature — In March 2020 and January 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04 Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2021-01 Reference Rate Reform (ASC 848): Scope which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 and ASU 2021-01 are effective for all entities as of March 12, 2020 through December 31, 2022. We currently do not anticipate the need to modify our existing debt agreements as a result of reference rate reform in the current year, however if any modification is executed as a result of reference rate reform, the Company will elect the optional expedient available under ASU 2020-04 and ASU 2021-01, which allows entities to account for the modification as if the modification was not substantial. We will disclose the nature of and reason for electing the optional expedient in each interim and annual financial statement period if and when applicable through December 31, 2022.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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ACQUISITIONS AND DISPOSITIONS (Tables)

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions, by Acquisition

During the three months ended March 31, 2022, we closed on the following acquisition:

Date Purchased	Property Name	City	State	Square Feet	Purchase Price(1)
					(in thousands)
February 24, 2022	40 Carmans Road(2)	Massapequa	NY	12,000	$	4,260

(1) The total purchase price for the property acquired includes $0.1 million of transaction costs incurred related to the acquisition.

(2) The outparcel is included with Sunrise Mall in our total property count and non-GAAP metrics. The Company has an 82.5% controlling interest in the property with the remaining 17.5% owned by others.

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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2022

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 2022 and the five succeeding years:

(Amounts in thousands)	Below-Market		Above-Market		In-Place Lease
Year	Operating Lease Amortization		Operating Lease Amortization		Amortization
2022(1)	$	5,789	$	(849)	$	(7,333)
2023	7,676		(1,092)		(8,355)
2024	7,440		(996)		(7,127)
2025	7,259		(803)		(6,082)
2026	6,881		(683)		(5,469)
2027	6,587		(458)		(4,905)

(1) Remainder of 2022.

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MORTGAGES PAYABLE (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Mortgages Payable

The following is a summary of mortgages payable as of March 31, 2022 and December 31, 2021.

(Amounts in thousands)	Maturity	Interest Rate at March 31, 2022	March 31, 2022		December 31, 2021
First mortgages secured by:
Variable rate
Cherry Hill (Plaza at Cherry Hill)(1)	5/24/2022	1.83%	$	27,947	$	28,244
Woodbridge (Plaza at Woodbridge)(1)	5/25/2022	1.83%	53,460		54,029
Jersey City (Hudson Commons)(2)	11/15/2024	2.13%	27,896		28,034
Watchung(2)	11/15/2024	2.13%	25,968		26,097
Bronx (1750-1780 Gun Hill Road)(2)	12/1/2024	2.13%	24,557		24,680
Total variable rate debt			159,828		161,084
Fixed rate
Paramus (Bergen Town Center - West)	4/8/2023	3.56%	300,000		300,000
Bronx (Shops at Bruckner)	5/1/2023	3.90%	9,530		9,698
Jersey City (Hudson Mall)	12/1/2023	5.07%	21,959		22,154
Yonkers Gateway Center	4/6/2024	4.16%	26,332		26,774
Brick	12/10/2024	3.87%	49,328		49,554
North Plainfield	12/10/2025	3.99%	24,991		25,100
Las Catalinas	2/1/2026	4.43%	122,906		123,977
Middletown	12/1/2026	3.78%	31,258		31,400
Rockaway	12/1/2026	3.78%	27,675		27,800
East Hanover (200 - 240 Route 10 West)	12/10/2026	4.03%	63,000		63,000
North Bergen (Tonnelle Ave)	4/1/2027	4.18%	100,000		100,000
Manchester	6/1/2027	4.32%	12,500		12,500
Millburn	6/1/2027	3.97%	22,829		22,944
Totowa	12/1/2027	4.33%	50,800		50,800
Woodbridge (Woodbridge Commons)	12/1/2027	4.36%	22,100		22,100
East Brunswick	12/6/2027	4.38%	63,000		63,000
East Rutherford	1/6/2028	4.49%	23,000		23,000
Brooklyn (Kingswood Center)	2/6/2028	5.07%	70,595		70,815
Hackensack	3/1/2028	4.36%	66,400		66,400
Marlton	12/1/2028	3.86%	37,400		37,400
East Hanover Warehouses	12/1/2028	4.09%	40,700		40,700
Union (2445 Springfield Ave)	12/10/2028	4.01%	45,600		45,600
Freeport (Freeport Commons)	12/10/2029	4.07%	43,100		43,100
Montehiedra	6/1/2030	5.00%	78,929		79,381
Montclair	8/15/2030	3.15%	7,250		7,250
Garfield	12/1/2030	4.14%	40,300		40,300
Woodmore Towne Centre	1/6/2032	3.39%	117,200		117,200
Mt Kisco	11/15/2034	6.40%	12,227		12,377
Total fixed rate debt			1,530,909		1,534,324
Total mortgages payable			1,690,737		1,695,408
	Unamortized debt issuance costs		(7,808)		(8,218)
Total mortgages payable, net			$	1,682,929	$	1,687,190

(1)Bears interest at one month LIBOR plus 160 bps.

(2)Bears interest at one month LIBOR plus 190 bps.

Schedule of Principal Repayments

As of March 31, 2022, the principal repayments of the Company’s total outstanding debt for the remainder of 2022 and the five succeeding years, and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,
2022(1)	$	94,244
2023	349,814
2024	163,721
2025	40,946
2026	230,694
2027	268,729
Thereafter	542,589

(1) Remainder of 2022.

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LEASES (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Schedule of Components of Rental Revenue

The components of rental revenue for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Rental Revenue
Fixed lease revenue	$	70,341	$	65,653
Variable lease revenue(1)	29,075		28,966
Total rental revenue	$	99,416	$	94,619

(1) Percentage rents for the three months ended March 31, 2022 and 2021 were $1.2 million and $0.5 million, respectively.

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Financial Instrument Carrying Amounts and Fair Values

The table below summarizes the carrying amounts and fair value of our Level 2 financial instruments as of March 31, 2022 and December 31, 2021.

	As of March 31, 2022				As of December 31, 2021
(Amounts in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Mortgages payable(1)	$	1,690,737	$	1,621,095	$	1,695,408	$	1,692,674

(1) Carrying amounts exclude unamortized debt issuance costs of $7.8 million and $8.2 million as of March 31, 2022 and December 31, 2021, respectively.

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PREPAID EXPENSES AND OTHER ASSETS (Tables)

3 Months Ended

Mar. 31, 2022

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 on the consolidated balance sheets:

	Balance at
(Amounts in thousands)	March 31, 2022		December 31, 2021
Deferred tax asset, net	$	36,525	$	37,420
Other assets	17,669		19,712
Finance lease right-of-use asset	2,724		2,724
Deferred financing costs, net of accumulated amortization of $6,210 and $5,932, respectively	1,956		2,234
Prepaid expenses:
Real estate taxes	5,454		9,982
Insurance	5,127		1,088
Licenses/fees	1,165		951
Total Prepaid expenses and other assets	$	70,620	$	74,111

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ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2022

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 and other liabilities on the consolidated balance sheets:

	Balance at
(Amounts in thousands)	March 31, 2022		December 31, 2021
Deferred tenant revenue	$	24,658	$	28,898
Accrued capital expenditures and leasing costs	19,960		19,164
Accrued interest payable	10,151		9,879
Other liabilities and accrued expenses	7,668		8,057
Security deposits	6,905		6,693
Accrued payroll expenses	3,613		9,134
Finance lease liability	3,007		3,004
Total accounts payable, accrued expenses and other liabilities	$	75,962	$	84,829

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INTEREST AND DEBT EXPENSE (Tables)

3 Months Ended

Mar. 31, 2022

Other Income and Expenses [Abstract]

Schedule of Interest and Debt Expense

The following table sets forth the details of interest and debt expense on the consolidated statements of income:

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Interest expense	$	13,259	$	14,070
Amortization of deferred financing costs	745		757
Total Interest and debt expense	$	14,004	$	14,827

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SHARE-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [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:

	Three Months Ended March 31,
(Amounts in thousands)	2022		2021
Share-based compensation expense components:
Time-based LTIP expense(1)	$	1,232	$	1,130
Performance-based LTIP expense(2)	1,045		956
Stock option expense	235		413
Restricted share expense	60		178
Deferred share unit (“DSU”) expense	25		6
Total Share-based compensation expense	$	2,597	$	2,683

(1) Expense for the three months ended March 31, 2022 includes the 2022, 2021, 2020 and 2019 LTI Plans.

(2) Expense for the three months ended March 31, 2022 includes the 2017 OPP plan and the 2022, 2021, 2020, 2019, and 2018 LTI Plans.

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EARNINGS PER SHARE AND UNIT (Tables)

3 Months Ended

Mar. 31, 2022

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:

	Three Months Ended March 31,
(Amounts in thousands, except per share amounts)	2022		2021
Numerator:
Net income attributable to common shareholders	$	9,486	$	19,920
Less: Earnings allocated to unvested participating securities	(5)		(12)
Net income available for common shareholders - basic	$	9,481	$	19,908
Impact of assumed conversions:
OP and LTIP Units	—		—
Net income available for common shareholders - dilutive	$	9,481	$	19,908
Denominator:
Weighted average common shares outstanding - basic	117,330		116,956
Effect of dilutive securities(1):
Restricted share awards	63		68
Assumed conversion of OP and LTIP Units	—		—
Weighted average common shares outstanding - diluted	117,393		117,024
Earnings per share available to common shareholders:
Earnings per common share - Basic	$	0.08	$	0.17
Earnings per common share - Diluted	$	0.08	$	0.17

(1) For the three months ended March 31, 2022 and 2021, 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 these periods.

Operating Partnership Earnings per Unit

The following table sets forth the computation of basic and diluted earnings per unit:

	Three Months Ended March 31,
(Amounts in thousands, except per unit amounts)	2022		2021
Numerator:
Net income attributable to unitholders	$	9,873	$	20,795
Less: net income attributable to participating securities	(5)		(12)
Net income available for unitholders	$	9,868	$	20,783
Denominator:
Weighted average units outstanding - basic	121,188		120,763
Effect of dilutive securities issued by Urban Edge	63		68
Unvested LTIP Units	936		1,335
Weighted average units outstanding - diluted	122,187		122,166
Earnings per unit available to unitholders:
Earnings per unit - Basic	$	0.08	$	0.17
Earnings per unit - Diluted	$	0.08	$	0.17

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ORGANIZATION (Details) ft² in Millions	3 Months Ended
	Mar. 31, 2022 ft² property
Real Estate Properties [Line Items]
Area of real estate property (in sq ft) | ft²	17.2
Wholly owned properties | Shopping Center
Real Estate Properties [Line Items]
Number of real estate properties	68
Wholly owned properties | Mall
Real Estate Properties [Line Items]
Number of real estate properties	5
Wholly owned properties | Warehouse Park
Real Estate Properties [Line Items]
Number of real estate properties	2
Operating Partnership | Parent | Vornado Realty L.P.
Real Estate Properties [Line Items]
Noncontrolling interest percentage	95.90%
Walnut Creek (Mt. Diablo), CA
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity Method Investment, Ownership Percentage	95.00%
Sunrise Mall Massapequa, NY
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity Method Investment, Ownership Percentage	82.50%

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BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) segment	Dec. 31, 2021 USD ($)
Variable Interest Entity [Line Items]
Number of reportable segments | segment	1
Assets	$ 2,961,237	$ 2,985,116
Liabilities	1,920,104	1,937,222
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Assets	48,200	48,500
Liabilities	$ 24,500	$ 24,700

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ACQUISITIONS AND DISPOSITIONS - Summary of Acquisition Activity (Details) $ in Thousands	Feb. 24, 2022 USD ($) ft²	Mar. 31, 2022 USD ($) ft²
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²		17,200,000
Transaction costs | $		$ 100
40 Carmans Road
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²	12,000
Purchase Price | $	$ 4,260
40 Carmans Road | 40 Carmans Road
Business Acquisition [Line Items]
Parent controlling interest	82.50%
Noncontrolling interest percentage	17.50%

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ACQUISITIONS AND DISPOSITIONS - Narrative (Details) $ in Thousands		3 Months Ended
	Feb. 24, 2022 USD ($) ft²	Mar. 31, 2022 USD ($) ft² property	Mar. 31, 2021 USD ($)	Mar. 31, 2021 acquisition	Mar. 31, 2021 property	Mar. 31, 2021 propertyParcel
Business Acquisition [Line Items]
Number of acquisitions completed by the Company | acquisition				0
Area of real estate property (in sq ft) | ft²		17,200,000
Number of disposed properties | property		0
Gain on sale of real estate		$ 0	$ 11,722
Disposal Group, Disposed of by Sale, Not Discontinued Operations
Business Acquisition [Line Items]
Number of disposed properties					1	1
Aggregate sale price of disposed properties			23,600
Gain on sale of real estate			$ (11,700)
40 Carmans Road
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²	12,000
Buildings and improvement	$ 3,100
Land	1,100
Purchase price of real estate property acquired	$ 4,260

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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Identified intangible assets, net of accumulated amortization	$ 68,007		$ 71,107
Identified intangible liabilities, net of accumulated amortization	98,282		$ 100,625
Amortization of acquired below-market leases, net of above-market leases	2,000	$ 2,400
Amortization expense of intangible assets	$ 2,800	$ 2,100

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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Schedule of Estimated Annual Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired below-market leases, net of above-market leases	$ 2,000	$ 2,400
Below-Market Operating Lease Amortization
2021	5,789
2022	7,676
2023	7,440
2024	7,259
2025	6,881
2026	6,587
In-Place Leases
Amortization of Intangible Assets	2,800	$ 2,100
Above-Market
Above-Market Operating Lease Amortization
2021	(849)
2022	1,092
2023	(996)
2024	(803)
2025	(683)
2026	(458)
In-Place Leases
2021	(849)
2023	(996)
2022	1,092
2024	(803)
2025	(683)
2026	(458)
In-Place Lease
Above-Market Operating Lease Amortization
2021	(7,333)
2022	8,355
2023	(7,127)
2024	(6,082)
2025	(5,469)
2026	(4,905)
In-Place Leases
2021	(7,333)
2023	(7,127)
2022	8,355
2024	(6,082)
2025	(5,469)
2026	$ (4,905)

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MORTGAGES PAYABLE - Summary of Mortgages Payable (Details) - Mortgages - First Mortgage - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2022	Sep. 30, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Total mortgages payable	$ 1,690,737		$ 1,695,408
Unamortized debt issuance costs	(7,808)		(8,218)
Total mortgages payable, net	1,682,929		1,687,190
Variable rate
Debt Instrument [Line Items]
Total mortgages payable	$ 159,828		161,084
Variable rate | The Plaza at Cherry Hill
Debt Instrument [Line Items]
Interest rate	1.83%
Total mortgages payable	$ 27,947		28,244
Variable rate | The Plaza at Cherry Hill | LIBOR
Debt Instrument [Line Items]
Interest rate spread on variable rate	160.00%	160.00%
Variable rate | The Plaza at Woodbridge
Debt Instrument [Line Items]
Interest rate	1.83%
Total mortgages payable	$ 53,460		54,029
Variable rate | The Plaza at Woodbridge | LIBOR
Debt Instrument [Line Items]
Interest rate spread on variable rate	160.00%	160.00%
Variable rate | Hudson Commons
Debt Instrument [Line Items]
Interest rate	2.13%
Total mortgages payable	$ 27,896		28,034
Variable rate | Hudson Commons | LIBOR
Debt Instrument [Line Items]
Interest rate spread on variable rate	190.00%	190.00%
Variable rate | Watchung, NJ
Debt Instrument [Line Items]
Interest rate	2.13%
Total mortgages payable	$ 25,968		26,097
Variable rate | Watchung, NJ | LIBOR
Debt Instrument [Line Items]
Interest rate spread on variable rate	190.00%	190.00%
Variable rate | Bronx (1750-1780 Gun Hill Road), NY
Debt Instrument [Line Items]
Interest rate	2.13%
Total mortgages payable	$ 24,557		24,680
Variable rate | Bronx (1750-1780 Gun Hill Road), NY | LIBOR
Debt Instrument [Line Items]
Interest rate spread on variable rate	190.00%	190.00%
Fixed rate
Debt Instrument [Line Items]
Total mortgages payable	$ 1,530,909		1,534,324
Fixed rate | Paramus (Bergen Town Center - West)
Debt Instrument [Line Items]
Interest rate	3.56%
Total mortgages payable	$ 300,000		300,000
Fixed rate | Bronx (Shops at Bruckner)
Debt Instrument [Line Items]
Interest rate	3.90%
Total mortgages payable	$ 9,530		9,698
Fixed rate | Jersey City (Hudson Mall)
Debt Instrument [Line Items]
Interest rate	5.07%
Total mortgages payable	$ 21,959		22,154
Fixed rate | Yonkers Gateway Center
Debt Instrument [Line Items]
Interest rate	4.16%
Total mortgages payable	$ 26,332		26,774
Fixed rate | Brick
Debt Instrument [Line Items]
Interest rate	3.87%
Total mortgages payable	$ 49,328		49,554
Fixed rate | North Plainfield
Debt Instrument [Line Items]
Interest rate	3.99%
Total mortgages payable	$ 24,991		25,100
Fixed rate | Las Catalinas
Debt Instrument [Line Items]
Interest rate	4.43%
Total mortgages payable	$ 122,906		123,977
Fixed rate | Middletown
Debt Instrument [Line Items]
Interest rate	3.78%
Total mortgages payable	$ 31,258		31,400
Fixed rate | Rockaway
Debt Instrument [Line Items]
Interest rate	3.78%
Total mortgages payable	$ 27,675		27,800
Fixed rate | East Hanover (200 - 240 Route 10 West)
Debt Instrument [Line Items]
Interest rate	4.03%
Total mortgages payable	$ 63,000		63,000
Fixed rate | North Bergen (Tonnelle Ave)
Debt Instrument [Line Items]
Interest rate	4.18%
Total mortgages payable	$ 100,000		100,000
Fixed rate | Manchester
Debt Instrument [Line Items]
Interest rate	4.32%
Total mortgages payable	$ 12,500		12,500
Fixed rate | Millburn
Debt Instrument [Line Items]
Interest rate	3.97%
Total mortgages payable	$ 22,829		22,944
Fixed rate | Totowa
Debt Instrument [Line Items]
Interest rate	4.33%
Total mortgages payable	$ 50,800		50,800
Fixed rate | Woodbridge (Woodbridge Commons)
Debt Instrument [Line Items]
Interest rate	4.36%
Total mortgages payable	$ 22,100		22,100
Fixed rate | East Brunswick
Debt Instrument [Line Items]
Interest rate	4.38%
Total mortgages payable	$ 63,000		63,000
Fixed rate | East Rutherford
Debt Instrument [Line Items]
Interest rate	4.49%
Total mortgages payable	$ 23,000		23,000
Fixed rate | Brooklyn (Kingswood Center)
Debt Instrument [Line Items]
Interest rate	5.07%
Total mortgages payable	$ 70,595		70,815
Fixed rate | Hackensack
Debt Instrument [Line Items]
Interest rate	4.36%
Total mortgages payable	$ 66,400		66,400
Fixed rate | Marlton
Debt Instrument [Line Items]
Interest rate	3.86%
Total mortgages payable	$ 37,400		37,400
Fixed rate | East Hanover Warehouses
Debt Instrument [Line Items]
Interest rate	4.09%
Total mortgages payable	$ 40,700		40,700
Fixed rate | Union (2445 Springfield Ave)
Debt Instrument [Line Items]
Interest rate	4.01%
Total mortgages payable	$ 45,600		45,600
Fixed rate | Freeport (Freeport Commons)
Debt Instrument [Line Items]
Interest rate	4.07%
Total mortgages payable	$ 43,100		43,100
Fixed rate | Montehiedra | Senior Loan
Debt Instrument [Line Items]
Interest rate	5.00%
Total mortgages payable	$ 78,929		79,381
Fixed rate | Montclair
Debt Instrument [Line Items]
Interest rate	3.15%
Total mortgages payable	$ 7,250		7,250
Fixed rate | Woodmore Towne Centre
Debt Instrument [Line Items]
Interest rate	3.39%
Total mortgages payable	$ 117,200		117,200
Fixed rate | Garfield
Debt Instrument [Line Items]
Interest rate	4.14%
Total mortgages payable	$ 40,300		40,300
Fixed rate | Mt Kisco
Debt Instrument [Line Items]
Interest rate	6.40%
Total mortgages payable	$ 12,227		$ 12,377

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MORTGAGES PAYABLE - Additional Information (Details)			3 Months Ended
	Jun. 29, 2019	Mar. 07, 2017 USD ($) extension_option	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Apr. 30, 2020 USD ($)	Jan. 15, 2015 USD ($)
Debt Instrument [Line Items]
Net carrying amount of real estate collateralizing indebtedness			$ 1,400,000,000
Debt issuance costs, net			1,956,000	$ 2,234,000
Property Lease Guarantee
Debt Instrument [Line Items]
Conditional corporate guarantee			12,500,000
Guarantor Obligations, remaining amount of potential guarantee			$ 9,400,000
Guarantor Obligations, Amortization Period			4 years 6 months
Four-Year Revolving Credit Agreement January 2015 | Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Facility fee	30.00%
Four-Year Revolving Credit Agreement January 2015 | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Facility fee	15.00%
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
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
Gross debt issuance costs			$ 2,000,000	$ 2,200,000
Line of Credit | Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Financial covenants, maximum leverage ratio	0.60
Line of Credit | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Financial covenants, minimum fixed charge coverage ratio	1.5
Line of Credit | Four-Year Revolving Credit Agreement January 2015 | Revolving Credit Facility | LIBOR | Maximum
Debt Instrument [Line Items]
Interest rate spread on variable rate	1.50%
Line of Credit | Four-Year Revolving Credit Agreement January 2015 | Revolving Credit Facility | LIBOR | Minimum
Debt Instrument [Line Items]
Interest rate spread on variable rate	1.05%
Mortgages | First Mortgage | Las Catalinas | Fixed rate
Debt Instrument [Line Items]
Debt instrument, face amount					$ 129,000,000
Borrowing rate			4.43%
Annual increase in interest rate			50.00%
Discounted value			$ 72,500,000
Accrued interest			5,400,000
Debt issuance costs, net			$ 1,200,000
Mortgages | First Mortgage | Las Catalinas | Fixed rate | Maximum
Debt Instrument [Line Items]
Borrowing rate			4.43%	4.43%
Mortgages | First Mortgage | Las Catalinas | Fixed rate | Minimum
Debt Instrument [Line Items]
Borrowing rate			3.00%

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MORTGAGES PAYABLE - Schedule of Maturities (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Debt Disclosure [Abstract]
Remainder of 2018	$ 94,244
2023	349,814
2024	163,721
2025	40,946
2026	230,694
2027	268,729
Thereafter	$ 542,589

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Income Tax Contingency [Line Items]
Deferred tax assets, net	$ (36,525)		$ (37,420)
Income tax expense	$ (905)	$ (235)
Puerto Rico
Income Tax Contingency [Line Items]
Branch profit tax	10.00%
Puerto Rico | Commonwealth of Puerto Rico
Income Tax Contingency [Line Items]
Income tax expense	$ (900)	$ (200)
Puerto Rico | Minimum
Income Tax Contingency [Line Items]
State and local income taxes	18.50%
Puerto Rico | Maximum
Income Tax Contingency [Line Items]
State and local income taxes	37.50%

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LEASES - Components of Rental Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Fixed lease revenue	$ (70,341)	$ (65,653)
Variable lease revenue	29,075	28,966
Total rental revenue	99,416	94,619
Percentage rent	$ 1,200	$ 500

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FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Casualty and impairment loss	$ 0	$ 0
Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	0		$ 0
Financial liabilities measured at fair value	0		0
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	0		0
Financial liabilities measured at fair value	$ 0		$ 0

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FAIR VALUE MEASUREMENTS - Balance Sheet Grouping (Details) - Mortgages - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable	$ 1,690,737	$ 1,695,408
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable	1,621,095	1,692,674
Unamortized debt issuance costs	$ (7,800)	$ (8,200)

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COMMITMENTS AND CONTINGENCIES (Details)	Mar. 31, 2022 USD ($) project
Commitments and Contingencies Disclosure [Abstract]
Number of projects | project	20
Real estate redevelopment in process	$ 207,100,000
Estimated cost to complete development and redevelopment projects	136,400,000
Insurance coverage, pollution insurance, limit per occurence	75,000,000
Deferred lease expense	$ 1,700,000

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PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other assets	$ 17,669	$ 19,712
Deferred Tax Assets, Net	36,525	37,420
Deposit Assets	2,724	2,724
Accumulated amortization, deferred financing costs	6,210	5,932
Prepaid expenses:
Real estate taxes	5,454	9,982
Insurance	5,127	1,088
Licenses/fees	1,165	951
Total Prepaid expenses and other assets	70,620	74,111
Debt issuance costs, net	$ 1,956	$ 2,234

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ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Deferred tenant revenue	$ 24,658	$ 28,898
Accrued interest payable	10,151	9,879
Accrued capital expenditures and leasing costs	19,960	19,164
Security deposits	6,905	6,693
Finance lease liability	3,007	3,004
Accrued payroll expenses	3,613	9,134
Other liabilities and accrued expenses	7,668	8,057
Total accounts payable, accrued expenses and other liabilities	$ 75,962	$ 84,829

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INTEREST AND DEBT EXPENSE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other Income and Expenses [Abstract]
Interest expense	$ 13,259	$ 14,070
Amortization of deferred financing costs	745	757
Total Interest and debt expense	$ 14,004	$ 14,827

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EQUITY AND NONCONTROLLING INTEREST (Details) - USD ($)	3 Months Ended		4 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2020	May 05, 2021
Noncontrolling Interest [Line Items]
Common stock, par value (in dollars per share)	$ 0.01
Authorized amount		$ 200,000,000
Repurchase of common shares (in shares)	0		5,900,000
Treasury stock acquired, average cost per share (in dollars per share)			$ 9.22
Repurchase of common shares			$ 54,100,000
Remaining for share repurchase program	$ 145,900,000
Distributions to redeemable NCI (in dollars per unit)	$ 0.16	$ 0.15
At-The-Market Program
Noncontrolling Interest [Line Items]
Common stock, par value (in dollars per share)				$ 0.01
Authorized amount				$ 250,000,000
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
Operating Partnership | OP Units
Noncontrolling Interest [Line Items]
Noncontrolling interest percentage	4.00%
Sunrise Mall Massapequa, NY | Noncontrolling Interest | Sunrise Mall Massapequa, NY
Noncontrolling Interest [Line Items]
Noncontrolling interest percentage	17.50%
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	95.90%

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SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - General and Administrative Expense - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	$ 2,597	$ 2,683
Time-based LTIP Shares
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	1,232	1,130
Performance-based LTIP expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	1,045	956
Stock option expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	235	413
Restricted share expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	60	178
Deferred share unit (“DSU”) expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	$ 25	$ 6

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SHARE-BASED COMPENSATION - Additional Information (Details) $ in Millions		3 Months Ended
	Feb. 11, 2022 USD ($) company component shares	Mar. 31, 2022 USD ($) shares
Long-Term Incentive Plan 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards percentage of absolute component of TSR equal to 18%	18.00%
Equity awards percentage of absolute component of TSR equal to 27%	27.00%
Equity awards percentage of absolute component of TSR equal to 36%	36.00%
Number of REIT peer groups | company	14
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%
LTIP Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number or equity awards granted (in shares)		266,766
Number of awards vested (in shares)		241,501
Number of shares forfeited (in shares)		4,381
Award vesting period		2 years
LTIP Units | Long-Term Incentive Plan 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement period of equity awards	3 years
Time-based and Performance-based LTIP Shares | Long-Term Incentive Plan 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number or equity awards granted (in shares)	616,204
Grant date fair value of equity awards | $	$ 8.6
Performance-based LTIP Shares | Long-Term Incentive Plan 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement period of equity awards	3 years
Grant date fair value of equity awards | $	$ 1.4
Number of award components | component	3
Grants as a percentage of total LTIP	16.70%
Equity awards earned percentage based on absolute TSR component of equal to 18%	50.00%
Equity awards earned percentage based on absolute TSR component of equal to 27%	100.00%
Equity awards earned percentage based on absolute TSR component of equal to 36%	200.00%
Units granted under absolute TSR component (in shares)	136,131
Equity awards earned percentage based on relative TSR component of 35 percentile of peer group	50.00%
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	200.00%
Units granted under relative TSR component (in shares)	132,239
Equity awards earned percentage based on FFO growth period, threshold one	50.00%
Equity awards percentage of relative component of FFO, threshold one	3.00%
Equity awards earned percentage based on FFO growth period, threshold two	100.00%
Equity awards percentage of relative component of FFO, threshold two	5.00%
Equity awards earned percentage based on FFO growth period, threshold three	200.00%
Equity awards percentage of relative component of FFO, threshold three	7.00%
Units granted under FFO component (in shares)	81,068
Performance-based LTIP Shares | Long-Term Incentive Plan 2022 | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%
Performance-based LTIP Shares | Long-Term Incentive Plan 2022 | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	25.00%
Performance-based LTIP Shares | Long-Term Incentive Plan 2022 | Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	25.00%
Time-based LTIP Shares | Long-Term Incentive Plan 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number or equity awards granted (in shares)		266,766
Grant date fair value of equity awards | $		$ 4.3
Award vesting period		3 years
Time-based LTIP Shares | Long-Term Incentive Plan 2022 | Chairman And Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		4 years
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options vested (in shares)		75,512
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number or equity awards granted (in shares)		44,214
Number of awards vested (in shares)		17,375
Number of shares forfeited (in shares)		8,461

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EARNINGS PER SHARE AND UNIT (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net income (loss) attributable to common shareholders/unitholders	$ 9,486	$ 19,920
Less: Earnings allocated to unvested participating securities	(5)	(12)
Net income available for common shareholders - basic	9,481	19,908
OP and LTIP Units	0	0
Net income available for common shareholders - dilutive	$ 9,481	$ 19,908
Denominator:
Weighted average common shares outstanding - basic (in shares)	117,330	116,956
Effect of dilutive securities:
Assumed conversion of OP and LTIP units (in shares)	0	0
Weighted average common shares outstanding - diluted (in shares)	117,393	117,024
Earnings per share available to common shareholders:
Earnings per common share - Basic (in dollars per share)	$ 0.08	$ 0.17
Earnings per common share - Diluted (in dollars per share)	$ 0.08	$ 0.17
Urban Edge Properties LP
Numerator:
Net income (loss) attributable to common shareholders/unitholders	$ 9,873	$ 20,795
Less: Earnings allocated to unvested participating securities	(5)	(12)
Net income available for common shareholders - basic	$ 9,868	$ 20,783
Denominator:
Weighted average common shares outstanding - basic (in shares)	121,188	120,763
Effect of dilutive securities:
Stock options using treasure stock method and restricted stock awards (in shares)	63	68
Assumed conversion of OP and LTIP units (in shares)	936	1,335
Weighted average common shares outstanding - diluted (in shares)	122,187	122,166
Earnings per share available to common shareholders:
Earnings per common share - Basic (in dollars per share)	$ 0.08	$ 0.17
Earnings per common share - Diluted (in dollars per share)	$ 0.08	$ 0.17
Restricted share expense
Effect of dilutive securities:
Stock options using treasure stock method and restricted stock awards (in shares)	63	68