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, 2023

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	Name of 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 28, 2023, Urban Edge Properties had 117,566,144 common shares outstanding.

URBAN EDGE PROPERTIES AND URBAN EDGE PROPERTIES LP

QUARTERLY REPORT ON FORM 10-Q

QUARTER ENDED MARCH 31, 2023

TABLE OF CONTENTS

	PART I
Item 1.	Financial Statements
	Consolidated Financial Statements of Urban Edge Properties:
	Consolidated Balance Sheets as of March 31, 2023 (unaudited) and December 31, 2022	1
	Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2023 and 2022 (unaudited)	2
	Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2023 and 2022 (unaudited)	3
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022 (unaudited)	4
	Consolidated Financial Statements of Urban Edge Properties LP:
	Consolidated Balance Sheets as of March 31, 2023 (unaudited) and December 31, 2022	6
	Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2023 and 2022 (unaudited)	7
	Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2023 and 2022 (unaudited)	8
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022 (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	25
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	34
Item 4.	Controls and Procedures	35
	PART II
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults Upon Senior Securities	36
Item 4.	Mine Safety Disclosures	36
Item 5.	Other Information	37
Item 6.	Exhibits	37
	Signatures	38

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2023 of Urban Edge Properties and Urban Edge Properties LP. Unless stated otherwise or the context otherwise requires, references to “UE”, “Urban Edge” and “the REIT” 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, 2023, 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.

Management operates Urban Edge Properties and the Operating Partnership as one business. The management of Urban Edge Properties consists of the same individuals as the management of the Operating Partnership. These individuals are officers of Urban Edge Properties and employees of the Operating Partnership.

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,
	2023		2022
ASSETS
Real estate, at cost:
Land	$	531,594	$	535,770
Buildings and improvements	2,469,064		2,468,385
Construction in progress	292,915		314,190
Furniture, fixtures and equipment	8,804		8,539
Total	3,302,377		3,326,884
Accumulated depreciation and amortization	(801,391)		(791,485)
Real estate, net	2,500,986		2,535,399
Operating lease right-of-use assets	62,386		64,161
Cash and cash equivalents	62,142		85,518
Restricted cash	49,044		43,256
Tenant and other receivables	15,800		17,523
Receivable arising from the straight-lining of rents	65,543		64,713
Identified intangible assets, net of accumulated amortization of $42,613 and $40,983, respectively	60,181		62,856
Deferred leasing costs, net of accumulated amortization of $20,529 and $20,107, respectively	27,649		26,799
Prepaid expenses and other assets	79,913		77,207
Total assets	$	2,923,644	$	2,977,432
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net	$	1,686,897	$	1,691,690
Operating lease liabilities	58,103		59,789
Accounts payable, accrued expenses and other liabilities	94,766		102,519
Identified intangible liabilities, net of accumulated amortization of $42,719 and $40,816, respectively	91,389		93,328
Total liabilities	1,931,155		1,947,326
Commitments and contingencies (Note 10)
Shareholders’ equity:
Common shares: $0.01 par value; 500,000,000 shares authorized and 117,571,250 and 117,450,951 shares issued and outstanding, respectively	1,174		1,173
Additional paid-in capital	1,010,522		1,011,293
Accumulated other comprehensive income	341		629
Accumulated deficit	(74,034)		(36,104)
Noncontrolling interests:
Operating partnership	40,262		39,209
Consolidated subsidiaries	14,224		13,906
Total equity	992,489		1,030,106
Total liabilities and equity	$	2,923,644	$	2,977,432

See notes to consolidated financial statements (unaudited).

1

URBAN EDGE PROPERTIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

(In thousands, except per share amounts)

	Three Months Ended March 31,
	2023		2022
REVENUE
Rental revenue	$	99,354	$	99,416
Other income	87		785
Total revenue	99,441		100,201
EXPENSES
Depreciation and amortization	25,084		24,527
Real estate taxes	15,677		15,975
Property operating	17,426		21,205
General and administrative	9,058		11,121
Real estate impairment loss	34,055		—
Lease expense	3,155		3,135
Total expenses	104,455		75,963
Gain on sale of real estate	356		—
Interest income	511		205
Interest and debt expense	(15,293)		(14,004)
Income (loss) before income taxes	(19,440)		10,439
Income tax expense	(706)		(905)
Net income (loss)	(20,146)		9,534
Less net (income) loss attributable to NCI in:
Operating partnership	788		(387)
Consolidated subsidiaries	240		339
Net income (loss) attributable to common shareholders	$	(19,118)	$	9,486
Earnings (loss) per common share - Basic:	$	(0.16)	$	0.08
Earnings (loss) per common share - Diluted:	$	(0.16)	$	0.08
Weighted average shares outstanding - Basic	117,450		117,330
Weighted average shares outstanding - Diluted	117,450		117,393
Net income (loss)	$	(20,146)	$	9,534
Effective portion of change in fair value of derivatives	(300)		—
Comprehensive income (loss)	(20,446)		9,534
Less comprehensive loss attributable to NCI in:
Operating partnership	12		—
Less net (income) loss attributable to NCI in:
Operating partnership	788		(387)
Consolidated subsidiaries	240		339
Comprehensive income (loss) attributable to common shareholders	$	(19,406)	$	9,486

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 (Deficit) Earnings		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 NCI	—	—		—		—		387		(339)		48
Limited partnership interests:
Units redeemed for common shares	250,000	3		2,121		—		2,124		—		4,248
Units redeemed for cash	—	—		—		—		—		—		—
Reallocation of NCI	—	—		(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

	Common Shares									Noncontrolling Interests (“NCI”)
	Shares	Amount		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Operating Partnership		Consolidated Subsidiaries		Total Equity
Balance, December 31, 2022	117,450,951	$	1,173	$	1,011,293	$	629	$	(36,104)	$	39,209	$	13,906	$	1,030,106
Net loss attributable to common shareholders	—	—		—		—		(19,118)		—		—		(19,118)
Net loss attributable to NCI	—	—		—		—		—		(788)		(240)		(1,028)
Other comprehensive loss	—	—		—		(288)		—		(12)		—		(300)
Limited partnership interests:
Units redeemed for common shares	20,000	—		161		—		—		161		—		322
Reallocation of NCI	—	—		(1,108)		—		—		786		—		(322)
Common shares issued	107,936	1		21		—		(22)		—		—		—
Dividends to common shareholders ($0.16 per share)	—	—		—		—		(18,790)		—		—		(18,790)
Distributions to redeemable NCI ($0.16 per unit)	—	—		—		—		—		(809)		—		(809)
Contributions from noncontrolling interests	—	—		—		—		—		—		558		558
Share-based compensation expense	—	—		292		—		—		1,715		—		2,007
Share-based awards retained for taxes	(7,637)	—		(137)		—		—		—		—		(137)
Balance, March 31, 2023	117,571,250	$	1,174	$	1,010,522	$	341	$	(74,034)	$	40,262	$	14,224	$	992,489

See notes to consolidated financial statements (unaudited).

3

URBAN EDGE PROPERTIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Three Months Ended March 31,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(20,146)	$	9,534
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	25,812		24,968
Gain on sale of real estate	(356)		—
Real estate impairment loss	34,055		—
Amortization of below market leases, net	(1,508)		(1,974)
Noncash lease expense	1,775		1,743
Straight-lining of rent	(830)		(511)
Share-based compensation expense	2,007		2,597
Change in operating assets and liabilities:
Tenant and other receivables	1,723		(1,507)
Deferred leasing costs	(1,928)		(1,025)
Prepaid expenses and other assets	(3,489)		2,893
Lease liabilities	(1,686)		(1,648)
Accounts payable, accrued expenses and other liabilities	(6,007)		(10,549)
Net cash provided by operating activities	29,422		24,521
CASH FLOWS FROM INVESTING ACTIVITIES
Real estate development and capital improvements	(23,153)		(19,078)
Proceeds from sale of operating properties	356		—
Acquisitions of real estate	—		(3,940)
Net cash used in investing activities	(22,797)		(23,018)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(5,028)		(4,421)
Dividends to common shareholders	(18,790)		(18,773)
Distributions to redeemable noncontrolling interests	(809)		(773)
Taxes withheld for vested restricted shares	(137)		(90)
Contributions from noncontrolling interests	558		745
Debt issuance costs	(7)		—
Net cash used in financing activities	(24,213)		(23,312)
Net decrease in cash and cash equivalents and restricted cash	(17,588)		(21,809)
Cash and cash equivalents and restricted cash at beginning of period	128,774		219,836
Cash and cash equivalents and restricted cash at end of period	$	111,186	$	198,027

See notes to consolidated financial statements (unaudited).

4

	Three Months Ended March 31,
	2023		2022
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, net of amounts capitalized of $2,669 and $1,733, respectively	$	14,582	$	13,261
Cash payments for income taxes	9		896
NON-CASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures included in accounts payable and accrued expenses	32,579		19,204
Write-off of fully depreciated and impaired assets	35,088		742
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents at beginning of period	$	85,518	$	164,478
Restricted cash at beginning of period	43,256		55,358
Cash and cash equivalents and restricted cash at beginning of period	$	128,774	$	219,836
Cash and cash equivalents at end of period	$	62,142	$	151,789
Restricted cash at end of period	49,044		46,238
Cash and cash equivalents and restricted cash at end of period	$	111,186	$	198,027

See notes to consolidated financial statements (unaudited).

5

URBAN EDGE PROPERTIES LP

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except unit amounts)

	March 31,		December 31,
	2023		2022
ASSETS
Real estate, at cost:
Land	$	531,594	$	535,770
Buildings and improvements	2,469,064		2,468,385
Construction in progress	292,915		314,190
Furniture, fixtures and equipment	8,804		8,539
Total	3,302,377		3,326,884
Accumulated depreciation and amortization	(801,391)		(791,485)
Real estate, net	2,500,986		2,535,399
Operating lease right-of-use assets	62,386		64,161
Cash and cash equivalents	62,142		85,518
Restricted cash	49,044		43,256
Tenant and other receivables	15,800		17,523
Receivable arising from the straight-lining of rents	65,543		64,713
Identified intangible assets, net of accumulated amortization of $42,613 and $40,983, respectively	60,181		62,856
Deferred leasing costs, net of accumulated amortization of $20,529 and $20,107, respectively	27,649		26,799
Prepaid expenses and other assets	79,913		77,207
Total assets	$	2,923,644	$	2,977,432
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net	$	1,686,897	$	1,691,690
Operating lease liabilities	58,103		59,789
Accounts payable, accrued expenses and other liabilities	94,766		102,519
Identified intangible liabilities, net of accumulated amortization of $42,719 and $40,816, respectively	91,389		93,328
Total liabilities	1,931,155		1,947,326
Commitments and contingencies (Note 10)
Equity:
Partners’ capital:
General partner: 117,571,250 and 117,450,951 units outstanding, respectively	1,011,696		1,012,466
Limited partners: 5,046,501 and 4,713,558 units outstanding, respectively	44,472		41,810
Accumulated other comprehensive income	341		629
Accumulated deficit	(78,244)		(38,705)
Total partners’ capital	978,265		1,016,200
Noncontrolling interest in consolidated subsidiaries	14,224		13,906
Total equity	992,489		1,030,106
Total liabilities and equity	$	2,923,644	$	2,977,432

See notes to consolidated financial statements (unaudited).

6

URBAN EDGE PROPERTIES LP

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

(In thousands, except per unit amounts)

	Three Months Ended March 31,
	2023		2022
REVENUE
Rental revenue	$	99,354	$	99,416
Other income	87		785
Total revenue	99,441		100,201
EXPENSES
Depreciation and amortization	25,084		24,527
Real estate taxes	15,677		15,975
Property operating	17,426		21,205
General and administrative	9,058		11,121
Real estate impairment loss	34,055		—
Lease expense	3,155		3,135
Total expenses	104,455		75,963
Gain on sale of real estate	356		—
Interest income	511		205
Interest and debt expense	(15,293)		(14,004)
Income (loss) before income taxes	(19,440)		10,439
Income tax expense	(706)		(905)
Net income (loss)	(20,146)		9,534
Less net loss attributable to NCI in consolidated subsidiaries	240		339
Net income (loss) attributable to unitholders	$	(19,906)	$	9,873
Earnings (loss) per unit - Basic:	$	(0.16)	$	0.08
Earnings (loss) per unit - Diluted:	$	(0.16)	$	0.08
Weighted average units outstanding - Basic	121,752		121,188
Weighted average units outstanding - Diluted	121,752		122,187
Net income (loss)	$	(20,146)	$	9,534
Effective portion of change in fair value of derivatives	(300)		—
Comprehensive income (loss)	(20,446)		9,534
Less net loss attributable to NCI in consolidated subsidiaries	240		339
Comprehensive income (loss) attributable to unitholders	$	(20,206)	$	9,873

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 (Deficit) Earnings		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 common shareholders	—	—		—	—		9,873		—		9,873
Net loss attributable to NCI	—	—		—	—		—		(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 NCI	—	(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

(1) Limited partners have a 4.1% common limited partnership interest in the Operating Partnership as of March 31, 2022 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 Other Comprehensive Income (Loss)		Accumulated Deficit		NCI in Consolidated Subsidiaries		Total Equity
Balance, December 31, 2022	117,450,951	$	1,012,466	4,713,558	$	41,810	$	629	$	(38,705)	$	13,906	$	1,030,106
Net loss attributable to unitholders	—	—		—	—		—		(19,906)		—		(19,906)
Net loss attributable to NCI	—	—		—	—		—		—		(240)		(240)
Other comprehensive loss	—	—		—	—		(288)		(12)		—		(300)
Common units issued as a result of common shares issued by Urban Edge	107,936	22		352,943	—		—		(22)		—		—
Equity redemption of OP units	20,000	161		(20,000)	161		—		—		—		322
Reallocation of noncontrolling interests	—	(1,108)		—	786		—		—		—		(322)
Distributions to Partners ($0.16 per unit)	—	—		—	—		—		(19,599)		—		(19,599)
Contributions from noncontrolling interests	—	—		—	—		—		—		558		558
Share-based compensation expense	—	292		—	1,715		—		—		—		2,007
Share-based awards retained for taxes	(7,637)	(137)		—	—		—		—		—		(137)
Balance, March 31, 2023	117,571,250	$	1,011,696	5,046,501	$	44,472	$	341	$	(78,244)	$	14,224	$	992,489

(2) Limited partners have a 4.1% common limited partnership interest in the Operating Partnership as of March 31, 2023 in the form of OP and LTIP Units.

See notes to consolidated financial statements (unaudited).

8

URBAN EDGE PROPERTIES LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Three Months Ended March 31,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(20,146)	$	9,534
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	25,812		24,968
Gain on sale of real estate	(356)		—
Real estate impairment loss	34,055		—
Amortization of below market leases, net	(1,508)		(1,974)
Noncash lease expense	1,775		1,743
Straight-lining of rent	(830)		(511)
Share-based compensation expense	2,007		2,597
Change in operating assets and liabilities:
Tenant and other receivables	1,723		(1,507)
Deferred leasing costs	(1,928)		(1,025)
Prepaid expenses and other assets	(3,489)		2,893
Lease liabilities	(1,686)		(1,648)
Accounts payable, accrued expenses and other liabilities	(6,007)		(10,549)
Net cash provided by operating activities	29,422		24,521
CASH FLOWS FROM INVESTING ACTIVITIES
Real estate development and capital improvements	(23,153)		(19,078)
Proceeds from sale of operating properties	356		—
Acquisitions of real estate	—		(3,940)
Net cash used in investing activities	(22,797)		(23,018)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(5,028)		(4,421)
Distributions to partners	(19,599)		(19,546)
Taxes withheld for vested restricted units	(137)		(90)
Contributions from noncontrolling interests	558		745
Debt issuance costs	(7)		—
Net cash used in financing activities	(24,213)		(23,312)
Net decrease in cash and cash equivalents and restricted cash	(17,588)		(21,809)
Cash and cash equivalents and restricted cash at beginning of period	128,774		219,836
Cash and cash equivalents and restricted cash at end of period	$	111,186	$	198,027

See notes to consolidated financial statements (unaudited).

9

	Three Months Ended March 31,
	2023		2022
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, net of amounts capitalized of $2,669 and $1,733, respectively	$	14,582	$	13,261
Cash payments for income taxes	9		896
NON-CASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures included in accounts payable and accrued expenses	32,579		19,204
Write-off of fully depreciated and impaired assets	35,088		742
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents at beginning of period	$	85,518	$	164,478
Restricted cash at beginning of period	43,256		55,358
Cash and cash equivalents and restricted cash at beginning of period	$	128,774	$	219,836
Cash and cash equivalents at end of period	$	62,142	$	151,789
Restricted cash at end of period	49,044		46,238
Cash and cash equivalents and restricted cash at end of period	$	111,186	$	198,027

See notes to consolidated financial statements (unaudited).

10

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 in the operating partnership (“OP Units”). As of March 31, 2023, 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 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, 2023, our portfolio consisted of 70 shopping centers, two outlet centers, two 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, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023. 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, 2022, as filed with the Securities and Exchange Commission (“SEC”).

The consolidated balance sheets as of March 31, 2023 and December 31, 2022 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. As of March 31, 2023 and December 31, 2022, excluding the Operating Partnership, we consolidated two VIEs with total assets of $47.4 million and $47.6 million, respectively, and total liabilities of $23.0 million and $23.2 million, respectively. The consolidated statements of income and comprehensive income for the three months ended March 31, 2023 and 2022 include the consolidated accounts of the Company, the Operating Partnership and the two VIEs. All intercompany transactions have been eliminated in consolidation.

In accordance with ASC 205 Presentation of Financial Statements, certain prior period balances have been reclassified in order to conform to the current period presentation.

Our primary business is the ownership, management, acquisition, redevelopment, and development 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 at the individual operating segment. 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. None of our tenants accounted for more than 10% of our revenue or property operating income as of March 31, 2023.

11

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 and ready for its intended use. 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 and development projects are individually evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Such events and changes include macroeconomic conditions, operating performance, and environmental and regulatory changes, which may result in property operational disruption and could indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis taking into account the appropriate capitalization rate in determining a future terminal value. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Estimated fair value may be based on discounted future cash flows utilizing appropriate discount and capitalization rates and, in addition to available market information, third-party appraisals, broker selling estimates or sale agreements under negotiation. Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows change based on uncertain market conditions, our evaluation of impairment losses may be different and such differences could be material to our consolidated financial statements.

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 provide 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 (“LIBOR”) 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 were effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, FASB issued ASU 2022-06 Reference Rate Reform (ASC 848): Deferral of the Sunset Date of Topic 848, which extended the final sunset date from December 31, 2022 to December 31, 2024. There were no modifications to our existing debt agreements as a result of reference rate reform in the current year, however, we refinanced two loans in 2022 previously indexed to LIBOR, which are now indexed to the Secured Overnight Financing Rate (“SOFR”) and the Prime

12

Rate. We plan to transition all variable rate loans currently indexed to LIBOR to SOFR, based on discussions with our lenders and do not expect the transitions to have a material impact on the loans affected.

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, 2023, 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 during the three months ended March 31, 2022 includes $0.1 million of transaction costs.

(2) The outparcel is included with Sunrise Mall in our total property count and for the purpose of calculating our 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.

Dispositions

During the three months ended March 31, 2023 and 2022, no dispositions were completed by the Company. During the three months ended March 31, 2023, we recognized a gain on sale of real estate of $0.4 million in connection with the release of escrow funds related to a property disposed of in a prior period.

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 $60.2 million and $91.4 million, respectively, as of March 31, 2023 and $62.9 million and $93.3 million, respectively, as of December 31, 2022.

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in additional rental income of $1.5 million and $2.0 million for the three months ended March 31, 2023 and 2022, respectively.

Amortization of acquired in-place leases inclusive of customer relationships resulted in additional depreciation and amortization expense of $2.4 million and $2.8 million for the three months ended March 31, 2023 and 2022, respectively.

The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2023 and the five succeeding years:

(Amounts in thousands)	Below-Market		Above-Market		In-Place Lease
Year	Operating Lease Amortization		Operating Lease Amortization		Amortization
2023(1)	$	5,809	$	(756)	$	(6,860)
2024	7,512		(920)		(7,786)
2025	7,332		(725)		(6,315)
2026	6,955		(606)		(5,613)
2027	6,677		(458)		(5,085)
2028	6,030		(441)		(4,550)

(1) Remainder of 2023

13

6.     MORTGAGES PAYABLE

The following is a summary of mortgages payable as of March 31, 2023 and December 31, 2022.

(Amounts in thousands)	Maturity	Interest Rate at March 31, 2023	March 31, 2023		December 31, 2022
Mortgages secured by:
Variable rate
Hudson Commons(1)	11/15/2024	6.53%	$	27,344	$	27,482
Greenbrook Commons(1)	11/15/2024	6.53%	25,452		25,581
Gun Hill Commons(1)	12/1/2024	6.53%	24,065		24,188
Plaza at Cherry Hill(2)	6/15/2025	8.50%	29,000		29,000
Plaza at Woodbridge(3)	6/8/2027	5.26%	52,947		52,947
Total variable rate debt			158,808		159,198
Fixed rate
Bergen Town Center(5)	4/8/2023	3.56%	300,000		300,000
Shops at Bruckner(6)	5/1/2023	3.90%	8,847		9,020
Hudson Mall	12/1/2023	5.07%	21,184		21,380
Yonkers Gateway Center	4/6/2024	4.16%	24,537		24,996
Brick Commons	12/10/2024	3.87%	48,401		48,636
West End Commons	12/10/2025	3.99%	24,544		24,658
Las Catalinas Mall	2/1/2026	4.43%	118,401		119,633
Town Brook Commons	12/1/2026	3.78%	30,678		30,825
Rockaway River Commons	12/1/2026	3.78%	27,161		27,291
Hanover Commons	12/10/2026	4.03%	62,176		62,453
Tonnelle Commons	4/1/2027	4.18%	98,438		98,870
Manchester Plaza	6/1/2027	4.32%	12,500		12,500
Millburn Gateway Center	6/1/2027	3.97%	22,369		22,489
Totowa Commons	12/1/2027	4.33%	50,800		50,800
Woodbridge Commons	12/1/2027	4.36%	22,100		22,100
Brunswick Commons	12/6/2027	4.38%	63,000		63,000
Rutherford Commons	1/6/2028	4.49%	23,000		23,000
Kingswood Center(7)	2/6/2028	5.07%	69,714		69,935
Hackensack Commons	3/1/2028	4.36%	66,400		66,400
Marlton Commons	12/1/2028	3.86%	37,234		37,400
East Hanover Warehouses	12/1/2028	4.09%	40,526		40,700
Union (Vauxhall)	12/10/2028	4.01%	45,600		45,600
The Shops at Riverwood	6/24/2029	4.25%	21,466		21,466
Freeport Commons	12/10/2029	4.07%	43,100		43,100
The Outlets at Montehiedra	6/1/2030	5.00%	77,057		77,531
Montclair(4)	8/15/2030	3.15%	7,250		7,250
Garfield Commons	12/1/2030	4.14%	40,130		40,300
Woodmore Towne Centre	1/6/2032	3.39%	117,200		117,200
Mount Kisco Commons	11/15/2034	6.40%	11,598		11,760
Total fixed rate debt			1,535,411		1,540,293
Total mortgages payable			1,694,219		1,699,491
	Unamortized debt issuance costs		(7,322)		(7,801)
Total mortgages payable, net			$	1,686,897	$	1,691,690

(1)Bears interest at one month London Interbank Offered Rate (“LIBOR”) plus 190 bps.

(2)Bears interest at the Prime Rate plus 50 bps with a minimum rate of 4.25%.

(3)Bears interest at one month Secured Overnight Financing Rate (“SOFR”) plus 226 bps. The variable component of the debt is hedged with an interest rate cap agreement to limit SOFR to a maximum of 3%.

(4)Bears interest at LIBOR plus 257 bps. The fixed and variable components of the debt are hedged with an interest rate swap agreement, fixing the rate at 3.15%, which expires at the maturity of the loan.

(5)On April 6, 2023, the Company refinanced the $300 million loan for Bergen Town Center that matured on April 8, 2023 with a new 7-year, $290 million loan at a fixed interest rate of 6.3%.

14

(6)On May 1, 2023 the Company entered into a forbearance agreement to extend the loan maturity date by 30 days to June 1, 2023, with an option to extend for an additional 30 days to July 1, 2023.

(7)Subsequent to March 31, 2023, the Company notified the servicer that the cash flows generated by the property are insufficient to cover the debt service and that it is unwilling to fund future shortfalls. Upon notice, the mortgage was transferred to special servicing at the Company’s request.

The net carrying amount of real estate collateralizing the above indebtedness amounted to approximately $1.5 billion as of March 31, 2023. 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, 2023, we were in compliance with all debt covenants.

As of March 31, 2023, the principal repayments of the Company’s total outstanding debt for the remainder of 2023 and the five succeeding years, and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,
2023(1)(2)	$	346,225
2024	166,380
2025	72,683
2026	229,553
2027	316,771
2028	272,934
Thereafter	289,673

(1) Remainder of 2023.

(2) On April 6, 2023, the Company refinanced the loan for Bergen Town Center that matured on April 8, 2023, with a new 7-year fixed rate loan, reducing our principal payments due in the remainder of 2023 by $300 million.

Revolving Credit Agreement

On January 15, 2015, we entered into a $500 million Revolving Credit Agreement (the “Agreement”) with certain financial institutions. On March 7, 2017, we amended and extended the Agreement. The amendment increased the credit facility size by $100 million to $600 million and extended the maturity date to March 7, 2021, with two six-month extension options. On July 29, 2019, we entered into a second amendment to the Agreement to extend the maturity date to January 29, 2024, with two six-month extension options.

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 period annualized.

On August 9, 2022, we amended and restated the Agreement, in order to, among other things, increase the credit facility size by $200 million to $800 million and extend the maturity date to February 9, 2027, with two six-month extension options. Borrowings under the amended and restated Agreement are subject to interest at SOFR plus 1.05% to 1.50% and an annual facility fee of 15 to 30 basis points. Both the spread over SOFR 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, 2023 or December 31, 2022. Financing costs associated with executing the Agreement of $6.3 million and $6.7 million as of March 31, 2023 and December 31, 2022, respectively, are included in the prepaid expenses and other assets line item of the consolidated balance sheets, as deferred financing costs, net. Subsequent to quarter end, the Company obtained two letters of credit issued under the Agreement, reducing the available balance of the facility to approximately $776.2 million. Refer to the “Mortgage on Bergen Town Center” disclosure below for more information.

Mortgage on Bergen Town Center

On April 6, 2023, the Company refinanced the mortgage loan secured by Bergen Town Center with a new 7-year, $290 million loan at a fixed interest rate of 6.3%. The proceeds from the new loan were used to pay down the Company’s previous mortgage on the property, which had an outstanding balance of $300 million, with the remainder paid using cash on hand. In connection with the refinancing, the Company obtained two letters of credit issued under our Revolving Credit Agreement aggregating $23.8 million to serve as collateral to secure the Company’s obligation to the lenders in relation to certain leasing and capital

15

expenditure reserves required per the loan agreement. The issuance of these letters has reduced the available balance under the Agreement to approximately $776.2 million. We have not recorded any liabilities associated with these letters of credit.

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 that 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, 2023. 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 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 3.5 years. As of March 31, 2023, the remaining exposure under the guarantee is $7.6 million. There was no separate liability recorded related to this guarantee.

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. So long as the Company qualifies as a REIT under the Code, the Company will not be subject to U.S. federal income tax on net taxable income that it distributes annually to its shareholders. If we fail to qualify as a REIT for any taxable year, we will be subject to federal income taxes at regular corporate rates and may not be able to qualify as a REIT for the four subsequent taxable years. The Company is subject to certain foreign and state and local income taxes, 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 and comprehensive income. In addition, the Company’s taxable REIT subsidiary (“TRS”) is subject to income tax at regular corporate rates.

For U.S. federal income tax purposes, the REIT 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, 2023 and 2022, certain non-real estate operating activities that could not be performed by the REIT, 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 and comprehensive income.

During the three months ended March 31, 2023, the REIT 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 REIT 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 and comprehensive income.

For the three months ended March 31, 2023 and 2022, the Puerto Rico income tax expense was $0.7 million and $0.9 million, respectively. The REIT was not subject to any material state and local income tax expense or benefit for the three months ended March 31, 2023 and 2022. All amounts for the three months ended March 31, 2023 and 2022 are included in income tax expense on the consolidated statements of income and comprehensive income.

16

8.     LEASES

All rental revenue was generated from operating leases for the three months ended March 31, 2023 and 2022. The components of rental revenue for the three months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022
Rental Revenue
Fixed lease revenue	$	73,499	$	70,341
Variable lease revenue(1)	25,855		29,075
Total rental revenue	$	99,354	$	99,416

(1) Percentage rents for the three months ended March 31, 2023 and 2022 were $0.8 million and $1.2 million, respectively.

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 Basis

Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of one interest rate cap and one interest rate swap. We rely on third-party valuations that use market observable inputs, such as credit spreads, yield curves and discount rates, to assess the fair value of these instruments. In accordance with the fair value hierarchy established by ASC 820, these financial instruments have been classified as Level 2 as quoted market prices are not readily available for valuing the assets. The tables below summarize the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022:

	As of March 31, 2023
(Amounts in thousands)	Level 1		Level 2		Level 3		Total
Interest rate cap and swap(1)	$	—	$	1,606	$	—	$	1,606

	As of December 31, 2022
(Amounts in thousands)	Level 1		Level 2		Level 3		Total
Interest rate cap and swap(1)	$	—	$	1,976	$	—	$	1,976

(1) Included in Prepaid expenses and other assets on the consolidated balance sheets.

Derivatives and Hedging

When we designate a derivative as a hedge, depending on the nature of the hedge, changes in the fair value of the instrument will be recognized in Other Comprehensive Income (“OCI”) until the gains or losses are reclassified to earnings. Derivatives that are not designated as hedges are adjusted to fair value through earnings. As of March 31, 2023, the Company was a counterparty to two interest rate derivative agreements which have been designated as cash flow hedges.

The tables below summarize our derivative instruments, which are used to hedge the corresponding variable rate debt, as of March 31, 2023 and December 31, 2022:

(Amounts in thousands)	As of March 31, 2023
Hedged Instrument	Fair Value		Notional Amount		Spread	Interest Rate	Effective Interest Rate	Expiration
Plaza at Woodbridge interest rate cap	$	332	$	52,947	SOFR + 2.26%	6.82%	5.26%	7/1/2023
Montclair interest rate swap	1,274		7,250		LIBOR + 2.57%	7.25%	3.15%	8/15/2030

17

(Amounts in thousands)	As of December 31, 2022
Hedged Instrument	Fair Value		Notional Amount		Spread	Interest Rate	Effective Interest Rate	Expiration
Plaza at Woodbridge interest rate cap	$	509	$	52,947	SOFR + 2.26%	6.27%	5.26%	7/1/2023
Montclair interest rate swap	1,467		7,250		LIBOR + 2.57%	6.89%	3.15%	8/15/2030

The table below summarizes the effect of our derivative instruments on our consolidated statements of income and comprehensive income for the three months ended March 31, 2023 and 2022:

	Unrealized Gain (Loss) Recognized in OCI on Derivatives
(Amounts in thousands)	Three Months Ended March 31,
Hedged Instrument	2023		2022
Plaza at Woodbridge interest rate cap	$	(108)	$	—
Montclair interest rate swap	(192)		—
Total	$	(300)	$	—

Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

There were no financial assets or liabilities measured at fair value on a non-recurring basis as of March 31, 2023 and December 31, 2022.

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 is 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, 2023 and December 31, 2022:

	As of March 31, 2023				As of December 31, 2022
(Amounts in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Mortgages payable(1)	$	1,694,219	$	1,583,184	$	1,699,491	$	1,542,869

(1) Carrying amounts exclude unamortized debt issuance costs of $7.3 million and $7.8 million as of March 31, 2023 and December 31, 2022, respectively.

Nonfinancial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

We assess the carrying value of our properties for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Such events and changes include macroeconomic conditions, operating performance, and environmental and regulatory changes, which may result in property operational disruption and could indicate that the carrying amount may not be recoverable.

As a result of our quarterly impairment evaluation, we recognized an impairment charge on our property, Kingswood Center, an office and retail center acquired in February 2020, located in Brooklyn, NY. In March of 2023, a tenant representing 50,000 sf informed us that they intend to vacate early next year, and a tenant representing 17,000 sf terminated their lease effective in April of 2023. As a result of these events and the uncertainty of the office market, we determined that the undiscounted future cash flows and future terminal value were less than the carrying value of the property. The mortgage on the property was recently transferred to special servicing at the Company's request considering the 2023 projected NOI will not cover debt service.

The impairment charge of $34.1 million was calculated as the difference between the asset's individual carrying value and the estimated fair value of $49 million less estimated selling costs, which was based on the discounted future cash flows and future terminal value. The discounted cash flows and terminal value utilized a discount rate of 8% and capitalization rates of 6% for retail and 7% for office, which were corroborated by third-party valuations and market data. The Company believes the inputs utilized to measure the fair value were reasonable in the context of applicable market conditions, however, due to the significance of the unobservable inputs in the overall fair value measures, the Company determined that such fair value measurements are classified as Level 3. The impairment charge is recorded within the real estate impairment loss line item on

18

our consolidated statements of income and comprehensive income for the three months ended March 31, 2023. No impairment charges were recognized during the three months ended March 31, 2022.

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 24 active development, redevelopment or anchor repositioning projects with total estimated costs of $217.7 million, of which $150 million remains to be funded as of March 31, 2023. 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, amongst 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 $50 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 $1.6 million on our consolidated balance sheets as of March 31, 2023 and December 31, 2022, 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

19

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.

On April 23, 2023, Bed Bath & Beyond filed for Chapter 11 bankruptcy protection. Bed Bath & Beyond has six leases with us, including those with wholly-owned store concepts buybuy Baby and Harmon Face Values. We have three leases with Harmon Face Values, totaling 18,000 sf that generate $0.5 million in annual rental revenue. Harmon Face Values ceased operations at all three locations during the quarter ended March 31, 2023. The remaining three leases with Bed Bath & Beyond generate an additional $3.1 million in annual rental revenue and remain open as of March 31, 2023. Given the recent bankruptcy filing, it is uncertain whether these stores will continue to operate, close permanently, or whether they will be sold to other operators as part of the bankruptcy proceedings.

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, 2023		December 31, 2022
Deferred tax asset, net	$	33,933	$	34,616
Other assets	18,823		18,386
Deferred financing costs, net of accumulated amortization of $7,682 and $7,269, respectively	6,336		6,749
Finance lease right-of-use asset	2,724		2,724
Prepaid expenses:
Real estate taxes	7,584		12,080
Insurance	9,189		1,391
Licenses/fees	1,324		1,261
Total prepaid expenses and other assets	$	79,913	$	77,207

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, 2023		December 31, 2022
Accrued capital expenditures and leasing costs	$	33,753	$	35,732
Deferred tenant revenue	28,104		28,468
Accrued interest payable	10,812		10,789
Security deposits	8,174		8,048
Other liabilities and accrued expenses	7,906		6,939
Finance lease liability	3,019		3,016
Accrued payroll expenses	2,998		9,527
Total accounts payable, accrued expenses and other liabilities	$	94,766	$	102,519

20

13.     INTEREST AND DEBT EXPENSE

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

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022
Interest expense	$	14,337	$	13,259
Amortization of deferred financing costs	956		745
Total interest and debt expense	$	15,293	$	14,004

14.     EQUITY AND NONCONTROLLING INTEREST

At-The-Market Program

On August 15, 2022 the Company and the Operating Partnership entered into an equity distribution agreement (the “Equity Distribution Agreement”) with various financial institutions acting as agents, forward sellers, and forward purchasers. Pursuant to the Equity Distribution Agreement, the Company may from time to time offer and sell, through the agents and forward sellers, the Company’s common shares, par value $0.01 per share, having an aggregate offering price of up to $250 million (the “ATM Program”). Concurrently with the Equity Distribution Agreement, the Company entered into separate master forward confirmations (collectively, the “Master Confirmations”) with each of the forward purchasers. 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. The ATM Program replaces the Company’s previous at-the-market program established on June 7, 2021.

The Equity Distribution Agreement provides that the Company may also enter into forward sale agreements pursuant to any Master Confirmation and related supplemental confirmations with the forward purchasers. In connection with any forward sale agreement, a forward purchaser will, at the Company’s request, borrow from third parties, through its forward seller, and sell a number of shares equal to the amount provided in such agreement.

As of March 31, 2023, 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 SEC 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, 2023 and 2022, no shares were repurchased by the Company. As of March 31, 2023, 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, 2023, 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, 2023 and 2022, the Company declared distributions on common shares and OP units of $0.16 per share/unit.

21

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 4.0% weighted-average interest in the Operating Partnership for the three months ended March 31, 2023. 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 and comprehensive income.

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 and comprehensive income, is summarized as follows:

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022
Share-based compensation expense components:
Time-based LTIP expense(1)	$	987	$	1,232
Performance-based LTIP expense(2)	728		1,045
Restricted share expense	239		60
Deferred share unit (“DSU”) expense	33		25
Stock option expense	20		235
Total Share-based compensation expense	$	2,007	$	2,597

(1) Expense for the three months ended March 31, 2023 includes the 2023, 2022, 2021, 2020 and 2019 LTI Plans.

(2) Expense for the three months ended March 31, 2023 includes the 2017 OPP plan and the 2023, 2022, 2021, 2020, 2019, and 2018 LTI Plans.

Equity award activity during the three months ended March 31, 2023 included: (i) 257,561 LTIP units granted, (ii) 176,268 LTIP units vested, (iii) 72,227 restricted shares granted, (iv) 32,134 stock options vested, and (v) 29,939 restricted shares vested.

2023 Long-Term Incentive Plan

On February 10, 2023, the Company established the 2023 Long-Term Incentive Plan (“2023 LTI Plan”) under the Omnibus Share 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. With respect to the other half of the program, the awards are earned and vest if certain relative and absolute total shareholder return (“TSR”) and/or funds from operations (“FFO”) and same-property net operating income (“SP NOI”) growth targets are achieved by the Company over a three-year performance period. The total grant date fair value under the 2023 LTI Plan was $7.4 million, comprising both performance-based and time-based awards as described further below:

Performance-based awards

For the performance-based awards under the 2023 LTI plan, participants have the opportunity to earn awards in the form of LTIP units if Urban Edge’s absolute and/or relative TSR meets certain criteria over the three-year performance measurement

22

period beginning on February 10, 2023 and ending on February 9, 2026. Participants also have the opportunity to earn awards in the form of LTIP units if Urban Edge’s FFO growth component and SP NOI growth component meets certain criteria over the three-year performance measurement period beginning January 1, 2023 and ending on December 31, 2025. The Company granted performance-based awards under the 2023 LTI Plan representing 309,611 units. The fair value of the performance-based award portion of the 2023 LTI Plan on the grant date was $3.7 million using a Monte Carlo simulation to estimate the fair value of the Absolute and Relative components through a risk-neutral premise. Assumptions include historical volatility (53.3%), risk-free interest rates (4.2%), and historical daily return as compared to certain peer companies.

Time-based awards

The time-based awards granted under the 2023 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, 2023, the Company granted time-based awards under the 2023 LTI Plan that represent 257,561 LTIP units with a grant date fair value of $3.7 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)	2023		2022
Numerator:
Net income (loss) attributable to common shareholders	$	(19,118)	$	9,486
Less: (Earnings) loss allocated to unvested participating securities	13		(5)
Net income (loss) available for common shareholders - basic	$	(19,105)	$	9,481
Impact of assumed conversions:
OP and LTIP Units	—		—
Net income (loss) available for common shareholders - dilutive	$	(19,105)	$	9,481
Denominator:
Weighted average common shares outstanding - basic	117,450		117,330
Effect of dilutive securities(1):
Restricted share awards	—		63
Assumed conversion of OP and LTIP Units	—		—
Weighted average common shares outstanding - diluted	117,450		117,393
Earnings per share available to common shareholders:
Earnings (loss) per common share - Basic	$	(0.16)	$	0.08
Earnings (loss) per common share - Diluted	$	(0.16)	$	0.08

(1) For the three months ended March 31, 2023 and 2022, the effect of the redemption of certain 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.

23

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)	2023		2022
Numerator:
Net income (loss) attributable to unitholders	$	(19,906)	$	9,873
Less: net (income) loss attributable to participating securities	13		(5)
Net income (loss) available for unitholders	$	(19,893)	$	9,868
Denominator:
Weighted average units outstanding - basic	121,752		121,188
Effect of dilutive securities issued by Urban Edge	—		63
Unvested LTIP Units	—		936
Weighted average units outstanding - diluted	121,752		122,187
Earnings per unit available to unitholders:
Earnings (loss) per unit - Basic	$	(0.16)	$	0.08
Earnings (loss) per unit - Diluted	$	(0.16)	$	0.08

24

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, business and targeted occupancy 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 ongoing COVID-19 pandemic and related COVID-19 variants; (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 rising inflation and 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 will be replaced by SOFR after June 30, 2023; (ix) the Company’s ability to pay down, refinance, hedge, 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, 2022 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, 2023, 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.

25

As of March 31, 2023, our portfolio consisted of 70 shopping centers, two outlet centers, two 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, 2022 contains a description of our critical accounting estimates, including collectibility, valuing acquired assets and liabilities and impairments. For the three months ended March 31, 2023, there were no material changes to these estimates.

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. In the five years preceding 2021, inflation levels remained relatively low compared to historical averages. However, in recent years there has been a rise in inflation due in part to the current economic climate and volatility in the financial markets. 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. The Federal Reserve has taken measures to suppress inflation by way of benchmark interest rate hikes, resulting in an increase in interest rates. As of March 31, 2023, approximately 91% of our outstanding debt is fixed rate, with the remaining 9% indexed to LIBOR, SOFR or the Prime Rate, plus an applicable margin per the loan agreements. We utilize interest rate derivative agreements to hedge the effect of rising interest rates on our variable rate debt. As of March 31, 2023, we were counter-party to one interest rate swap agreement and one interest rate cap agreement, both of which qualify for, and are designated as, hedging instruments. While we have not experienced any material adverse effects 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, 2022.

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)	2023		2022
Net income (loss)	$	(20,146)	$	9,534
FFO applicable to diluted common shareholders(1)	38,602		34,171
NOI(1)	61,146		57,062
Same-property NOI(1)	56,686		53,912

(1) Refer to pages 29-30 for a reconciliation to the nearest generally accepted accounting principles (“GAAP”) measure.

26

Comparison of the Three Months Ended March 31, 2023 to the Three Months Ended March 31, 2022

Net loss for the three months ended March 31, 2023 was $20.1 million, compared to net income of $9.5 million for the three months ended March 31, 2022. The following table summarizes certain line items from our consolidated statements of income and comprehensive income that we believe are important in understanding our operations and/or those items that significantly changed in the three months ended March 31, 2023 as compared to the same period in 2022:

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022		$ Change
Total revenue	$	99,441	$	100,201	$	(760)
Depreciation and amortization	25,084		24,527		557
Real estate taxes	15,677		15,975		(298)
Property operating expenses	17,426		21,205		(3,779)
General and administrative expenses	9,058		11,121		(2,063)
Real estate impairment loss	34,055		—		34,055
Interest and debt expense	15,293		14,004		1,289

Total revenue decreased by $0.8 million to $99.4 million in the first quarter of 2023 from $100.2 million in the first quarter of 2022. The decrease is primarily attributable to:

•$2.0 million decrease in tenant reimbursements as a result of lower operating expenses;

•$0.8 million decrease in management and development fee and other income;

•$0.4 million decrease in percentage rent due to lower tenant sales; offset by

•$1.4 million increase in property rentals due to rent commencements and contractual rent increases, partially offset by tenant vacates; and

•$1.0 million increase as a result of property acquisitions.

Depreciation and amortization increased by $0.6 million to $25.1 million in the first quarter of 2023 from $24.5 million in the first quarter of 2022. The increase is primarily attributable to:

•$0.4 million increase as a result of property acquisitions; and

•$0.2 million increase due to assets placed in service for completion of capital projects since the first quarter of 2022.

Real estate taxes decreased by $0.3 million to $15.7 million in the first quarter of 2023 from $16.0 million in the first quarter of 2022. The decrease is primarily attributable to:

•$0.5 million decrease as a result of successful tax appeals and lower assessments; offset by

•$0.1 million increase as a result of property acquisitions; and

•$0.1 million decrease in capitalized real estate taxes due to the completion of active development, redevelopment, and anchor repositioning projects, offset by project commencements.

Property operating expenses decreased by $3.8 million to $17.4 million in the first quarter of 2023 from $21.2 million in the first quarter of 2022. The decrease is primarily attributable to:

•$4.1 million lower common area maintenance expenses across the portfolio as a result of lower snow removal, cleaning and security expenses as compared to the first quarter of 2022; offset by

•$0.3 million increase as a result of property acquisitions.

General and administrative expenses decreased by $2.1 million to $9.1 million in the first quarter of 2023 from $11.1 million in the first quarter of 2022. This is primarily attributable to lower employment expenses, professional fees, transaction costs, and other expenses.

We recognized a real estate impairment loss of $34.1 million in the first quarter of 2023, reducing the carrying value of an office and retail property located in Brooklyn, NY.

Interest and debt expense increased by $1.3 million to $15.3 million in the first quarter of 2023 from $14.0 million in the first quarter of 2022. The increase is primarily attributable to:

•$2.0 million increase in interest expense due to higher rates on our variable rate loans and the refinancing of our mortgage loans at Plaza at Woodbridge and Plaza at Cherry Hill in the second quarter of 2022; and

•$0.2 million increase in interest expense in connection with the mortgage loan obtained for the acquisition of The Shops at Riverwood in June 2022; offset by

•$0.9 million increase in capitalized interest expense due to commencement of development, redevelopment and anchor repositioning projects; partially offset by project completions.

27

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 70 properties for the three months ended March 31, 2023 and 2022. 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.

28

Same-property NOI increased by $2.8 million, or 5.1%, for the three months ended March 31, 2023, compared to the three months ended March 31, 2022. Same-property NOI, including properties in redevelopment, increased by $3.7 million, or 6.3%, for the three months ended March 31, 2023, compared to the three months ended March 31, 2022.

The following table reconciles net income to NOI and same-property NOI for the three months ended March 31, 2023 and 2022.

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022
Net income (loss)	$	(20,146)	$	9,534
Other expense (income)	226		(439)
Depreciation and amortization	25,084		24,527
General and administrative expense	9,058		11,121
Gain on sale of real estate	(356)		—
Interest income	(511)		(205)
Interest and debt expense	15,293		14,004
Income tax expense	706		905
Real estate impairment loss	34,055		—
Non-cash revenue and expenses	(2,263)		(2,385)
NOI	61,146		57,062
Adjustments:
Non-same property NOI and other(1)	(5,466)		(4,394)
Sunrise Mall net operating loss	1,014		1,354
Tenant bankruptcy settlement income and lease termination income	(8)		(110)
Same-property NOI	$	56,686	$	53,912
NOI related to properties being redeveloped	5,232		4,339
Same-property NOI including properties in redevelopment	$	61,918	$	58,251

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

29

Funds From Operations

FFO applicable to diluted common shareholders was $38.6 million for the three months ended March 31, 2023 compared to $34.2 million for the three months ended March 31, 2022.

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, earnings from consolidated partially owned entities, 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, 2023 and 2022.

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022
Net income (loss)	$	(20,146)	$	9,534
Less net (income) loss attributable to noncontrolling interests in:
Operating partnership	788		(387)
Consolidated subsidiaries	240		339
Net income (loss) attributable to common shareholders	(19,118)		9,486
Adjustments:
Rental property depreciation and amortization	24,809		24,298
Limited partnership interests in operating partnership(1)	(788)		387
Gain on sale of real estate(2)	(356)		—
Real estate impairment loss(3)	34,055		—
FFO applicable to diluted common shareholders	$	38,602	$	34,171

(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.

(2) The gain on sale of real estate for the three months ended March 31, 2023 relates to the release of escrow funds from a property disposed of in a prior period.

(3) During the three months ended March 31, 2023, the Company recognized an impairment charge reducing the carrying value of Kingswood Center, an office and retail property located in Brooklyn, NY.

30

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 the first quarter of 2023, 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 an $800 million Revolving Credit Agreement with certain financial institutions which has a maturity date of February 9, 2027 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. On April 6, 2023, the Company refinanced the mortgage secured by its property, Bergen Town Center, with a new 7-year, $290 million loan at a fixed interest rate of 6.3%. As a result of this refinancing, the Company has reduced its debt maturing in the remainder of 2023 to approximately $29 million, related to mortgage loans encumbering two of our properties.

At March 31, 2023, we had cash and cash equivalents, including restricted cash, of $111.2 million. Subsequent to the quarter, the Company obtained two letters of credit issued under our Revolving Credit Agreement aggregating $23.8 million, reducing the amount available under the facility to approximately $776.2 million. The available balance under our Revolving Credit Agreement and cash on hand are readily available to fund the debt obligations discussed above which are coming due within the next year.

Summary of Cash Flows

Cash and cash equivalents, including restricted cash, was $111.2 million at March 31, 2023, compared to $128.8 million at December 31, 2022 and $198.0 million at March 31, 2022, a decrease of $17.6 million and $86.8 million, respectively. Our cash flow activities are summarized as follows:

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022		$ Change
Net cash provided by operating activities	$	29,422	$	24,521	$	4,901
Net cash used in investing activities	(22,797)		(23,018)		221
Net cash used in financing activities	(24,213)		(23,312)		(901)

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 $29.4 million for the three months ended March 31, 2023 increased by $4.9 million from $24.5 million for the three months ended March 31, 2022. The increase is due to timing of cash receipts and payments related to tenant collections and recovery of amounts previously billed and deemed uncollectible.

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 $22.8 million for the three months ended March 31, 2023 decreased by $0.2 million compared to net cash used in investing activities of $23.0 million for the three months ended March 31, 2022. The decrease is primarily due to (i) $3.9 million decrease in cash used for the acquisition of real estate, and (ii) $0.4 million increase in cash

31

provided by the sale of operating properties, offset by (iii) $4.1 million increase in cash used for real estate development and capital improvements.

The Company has 24 active development, redevelopment or anchor repositioning projects with total estimated costs of $217.7 million, of which $67.7 million has been incurred and $150.0 million remains to be funded as of March 31, 2023.

The following summarizes capital expenditures presented on a cash basis for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022
Capital expenditures:
Development and redevelopment costs	$	15,515	$	15,562
Capital improvements	6,683		3,318
Tenant improvements and allowances	1,516		198
Total capital expenditures	$	23,714	$	19,078

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 $24.2 million for the three months ended March 31, 2023 increased by $0.9 million from cash used in financing activities of $23.3 million for the three months ended March 31, 2022. The increase is primarily due to (i) $0.6 million increase in cash used for debt repayments related to our mortgage loans, (ii) $0.2 million decrease in cash contributed by noncontrolling interests, and (iii) $0.1 million increase in distributions to shareholders and unitholders of the Operating Partnership.

On August 9, 2022, we amended and restated our Revolving Credit Agreement (as amended, the “Agreement”) to, among other things, increase the available amount under the facility by $200 million to $800 million and extend the maturity date to February 9, 2027, with two six-month extension options. Borrowings under the credit facility may be used to finance pre-development costs, development costs, acquisitions, working capital, equity investments, debt investments, capital expenditures and repayment of indebtedness, to pay fees and expenses incurred in connection with the amended and restated Agreement and for other general corporate purposes. As of March 31, 2023, there were no amounts drawn on the facility. Subsequent to quarter end, we obtained two letters of credit under the Agreement aggregating $23.8 million, to serve as collateral to secure the Company’s obligations to certain lenders. The issuance of these letters has reduced the available balance under the Agreement to approximately $776.2 million.

On August 15, 2022, we entered into an equity distribution agreement with various financial institutions, 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 (the “ATM Program”). The ATM Program replaces the Company’s previous at-the-market program established in June 2021. As of March 31, 2023 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, SOFR and the Prime Rate plus an applicable margin of 0.5% to 2.26%. 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 SOFR, or agreed upon replacement rates. We do not anticipate that the discontinuation of LIBOR will impact our ability to borrow or maintain already outstanding borrowings, but it could result in higher interest rates and accordingly, higher costs of borrowing to us. 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.

32

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.

Cybersecurity

Cybersecurity is an integral part of the Board of Trustees’, Audit Committee’s and the Corporate Governance and Nominating Committee’s risk analysis and discussions with management. In February 2023, the Board of Trustees assigned initial cybersecurity oversight responsibility to the Corporate Governance and Nominating Committee via an amendment to the Committee’s Charter. As we see increased reliance on information technology in the workplace and our business operations, and a 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 monitoring our daily operations, the Company engages an independent third-party cybersecurity team for advisory services and cybersecurity assessments such as risk and disaster recovery. We also have a Cyber Risk Committee which works in conjunction with the Computer Incident Response Team 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 and will meet at least annually with the Corporate Governance and Nominating Committee to discuss trends in cyber risks and our strategy to defend our information against cybersecurity incidents.

We utilize a risk-based approach that aligns with the National Institute of Standards and Technology Cybersecurity Framework, 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. Our cybersecurity preparedness includes, but is not limited to, vulnerability management programs, penetration testing, simulations, and tabletop exercises. The Company utilizes advanced endpoint protection, firewalls, intrusion detection and prevention, threat intelligence, security event logging and correlation, and backup and redundancy systems. We also have a Disaster Recovery and Business Continuity Committee that meets biannually to review and update our plan, policies, and procedures. In addition, our Information Technology team conducts disaster recovery tests annually and reports results to the Cyber Risk Committee.

We endeavor to apprise employees of emerging risks and require them to undergo quarterly security awareness trainings. Additionally, we conduct internal phishing and other exercises to gauge the effectiveness of the trainings and assess the need for additional training.

33

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, 2023, our variable rate debt outstanding had rates indexed to LIBOR, SOFR and the Prime Rate.

	2023							2022
(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	$	158,808		6.47%	$	1,588		$	159,198		6.11%
Fixed rate mortgages	1,535,411			4.09%	—		(2)	1,540,293			4.09%
	$	1,694,219	(1)		$	1,588		$	1,699,491	(1)

(1) Excludes unamortized debt issuance costs of $7.3 million and $7.8 million as of March 31, 2023 and December 31, 2022, 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 $15.4 million based on outstanding balances as of March 31, 2023.

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. We do not enter into any financial instrument agreements, such as derivative agreements, for speculation or trading purposes. As of March 31, 2023, the Company was a counterparty to two interest rate derivative agreements which have been designated as cash flow hedges. These derivative instruments are assessed quarterly and as of March 31, 2023, both meet the criteria of an effective hedge.

Discontinuation of LIBOR

The LIBOR benchmark has been the subject of national, international and other regulatory guidance and proposals for reform and replacement, with most LIBOR settings relevant to the Company not expected to be published after June 30, 2023. As a result, we expect that the Company's four LIBOR-based borrowings that extend beyond such date will be converted to a replacement rate. If these are converted to an alternative rate, the differences could result in interest costs that are higher than LIBOR, had it remained available. We do not expect the transitions to have a material impact on the loans affected, however, it is not yet possible to predict with certainty the magnitude of LIBOR’s discontinuation on the Company's borrowing costs. The Company anticipates that the discontinuation of LIBOR will not affect the Company’s ability to borrow or maintain its already outstanding borrowings and interest rate swap.

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, 2023, the estimated fair value of our consolidated debt was $1.6 billion.

Other Market Risks

As of March 31, 2023, 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, 2023 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, 2023, future estimates of fair value and the amounts which may be paid or realized in the future may differ significantly from amounts presented.

34

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, 2023 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 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, 2023 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, 2022 filed with the SEC on February 14, 2023.

35

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

Urban Edge Properties

(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:

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 Plans or Programs(1)
January 1, 2023 - January 31, 2023	—		$	—	—	$	145,900,000
February 1, 2023 - February 28, 2023	7,637	(2)	15.67		—	$	145,900,000
March 1, 2023 - March 31, 2023	—		—		—	$	145,900,000
Total	7,637		$	15.67	—

(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 SEC 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:

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 Plans or Programs
January 1, 2023 - January 31, 2023	—		$	—	—	$	—
February 1, 2023 - February 28, 2023	7,637	(1)	15.67		—	$	—
March 1, 2023 - March 31, 2023	—		—		—	$	—
Total	7,637		$	15.67	—

(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.

36

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
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 of 1933, as amended, or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

37

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 9, 2023

URBAN EDGE PROPERTIES LP

By: Urban Edge Properties, General Partner

/s/ Mark Langer

Mark Langer, Chief Financial Officer

Date: May 9, 2023

38

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 9, 2023

/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 9, 2023

/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 9, 2023

/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 9, 2023

/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, 2023(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 9, 2023		/s/ Jeffrey S. Olson
	Name:	Jeffrey S. Olson
	Title:	Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties
May 9, 2023		/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, 2023(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 9, 2023		/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 9, 2023		/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, 2023	Apr. 28, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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		117,566,144
Entity Central Index Key	0001611547
Amendment Flag	false
Document Fiscal Year Focus	2023
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, 2023	Dec. 31, 2022
Real estate, at cost:
Land	$ 531,594	$ 535,770
Buildings and improvements	2,469,064	2,468,385
Construction in progress	292,915	314,190
Furniture, fixtures and equipment	8,804	8,539
Total	3,302,377	3,326,884
Accumulated depreciation and amortization	(801,391)	(791,485)
Real estate, net	2,500,986	2,535,399
Operating lease right-of-use assets	62,386	64,161
Cash and cash equivalents	62,142	85,518
Restricted cash	49,044	43,256
Tenant and other receivables	15,800	17,523
Receivable arising from the straight-lining of rents	65,543	64,713
Identified intangible assets, net of accumulated amortization of $42,613 and $40,983, respectively	60,181	62,856
Deferred leasing costs, net of accumulated amortization of $20,529 and $20,107, respectively	27,649	26,799
Prepaid expenses and other assets	79,913	77,207
Total assets	2,923,644	2,977,432
Liabilities:
Mortgages payable, net	1,686,897	1,691,690
Operating lease liabilities	58,103	59,789
Accounts payable, accrued expenses and other liabilities	94,766	102,519
Identified intangible liabilities, net of accumulated amortization of $42,719 and $40,816, respectively	91,389	93,328
Total liabilities	1,931,155	1,947,326
Commitments and contingencies (Note 10)
Shareholders’ equity:
Common shares: $0.01 par value; 500,000,000 shares authorized and 117,571,250 and 117,450,951 shares issued and outstanding, respectively	1,174	1,173
Additional paid-in capital	1,010,522	1,011,293
Accumulated other comprehensive income	341	629
Accumulated deficit	(74,034)	(36,104)
Noncontrolling interests:
Operating partnership	40,262	39,209
Consolidated subsidiaries	14,224	13,906
Total equity	992,489	1,030,106
Total liabilities and equity	$ 2,923,644	$ 2,977,432

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands	Mar. 31, 2023 USD ($) $ / shares shares
Statement of Financial Position [Abstract]
Accumulated depreciation, identifiable intangible assets	$ 42,613
Accumulated amortization, deferred leasing costs	20,529
Accumulated amortization, identified intangible liabilities	$ 42,719
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	117,571,250

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
REVENUE
Total revenue	$ 99,441,000	$ 100,201,000
EXPENSES
Depreciation and amortization	25,084,000	24,527,000
Real estate taxes	15,677,000	15,975,000
Property operating	17,426,000	21,205,000
General and administrative	9,058,000	11,121,000
Real estate impairment loss	34,055,000	0
Lease expense	3,155,000	3,135,000
Total expenses	104,455,000	75,963,000
Gain on sale of real estate	356,000	0
Interest income	511,000	205,000
Interest and debt expense	(15,293,000)	(14,004,000)
Income (loss) before income taxes	(19,440,000)	10,439,000
Income tax expense	(706,000)	(905,000)
Net income (loss)	(20,146,000)	9,534,000
Less net (income) loss attributable to NCI in:
Operating partnership	788,000	(387,000)
Consolidated subsidiaries	240,000	339,000
Net income (loss) attributable to common shareholders	$ (19,118,000)	$ 9,486,000
Earnings per common share - Basic (in dollars per share)	$ (0.16)	$ 0.08
Earnings per common share - Diluted (in dollars per share)	$ (0.16)	$ 0.08
Weighted average shares outstanding - Basic (in shares)	117,450	117,330
Weighted average shares outstanding - Diluted (in shares)	117,450	117,393
Net income (loss)	$ (20,146,000)	$ 9,534,000
Effective portion of change in fair value of derivatives	(300,000)	0
Comprehensive income (loss)	(20,446,000)	9,534,000
Less comprehensive loss attributable to NCI in Operating partnership	12,000	0
Less net (income) loss attributable to NCI in Operating partnership	788,000	(387,000)
Less net (income) loss attributable to NCI in Consolidated subsidiaries	240,000	339,000
Comprehensive income (loss) attributable to common shareholders	(19,406,000)	9,486,000
Rental Revenue
REVENUE
Revenues	99,354,000	99,416,000
Other income
REVENUE
Revenues	87,000	785,000
Urban Edge Properties LP
REVENUE
Total revenue	99,441,000	100,201,000
EXPENSES
Depreciation and amortization	25,084,000	24,527,000
Real estate taxes	15,677,000	15,975,000
Property operating	17,426,000	21,205,000
General and administrative	9,058,000	11,121,000
Real estate impairment loss	34,055,000	0
Lease expense	3,155,000	3,135,000
Total expenses	104,455,000	75,963,000
Gain on sale of real estate	356,000	0
Interest income	511,000	205,000
Interest and debt expense	(15,293,000)	(14,004,000)
Income (loss) before income taxes	(19,440,000)	10,439,000
Income tax expense	(706,000)	(905,000)
Net income (loss)	(20,146,000)	9,534,000
Less net (income) loss attributable to NCI in:
Consolidated subsidiaries	240,000	339,000
Net income (loss) attributable to common shareholders	$ (19,906,000)	$ 9,873,000
Earnings per common share - Basic (in dollars per share)	$ (0.16)	$ 0.08
Earnings per common share - Diluted (in dollars per share)	$ (0.16)	$ 0.08
Weighted average shares outstanding - Basic (in shares)	121,752	121,188
Weighted average shares outstanding - Diluted (in shares)	121,752	122,187
Net income (loss)	$ (20,146,000)	$ 9,534,000
Effective portion of change in fair value of derivatives	(300,000)	0
Comprehensive income (loss)	(20,446,000)	9,534,000
Less net (income) loss attributable to NCI in Consolidated subsidiaries	240,000	339,000
Comprehensive income (loss) attributable to common shareholders	(20,206,000)	9,873,000
Urban Edge Properties LP | Rental Revenue
REVENUE
Revenues	99,354,000	99,416,000
Urban Edge Properties LP | Other income
REVENUE
Revenues	$ 87,000	$ 785,000

XML

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Urban Edge Properties LP	Urban Edge Properties LP Accumulated (Deficit) Earnings	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 Other Comprehensive Income (Loss)	Accumulated (Deficit) Earnings	Operating Partnership	NCI in Consolidated Subsidiaries
Beginning balance (in shares) at Dec. 31, 2021					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	[1]	$ 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 NCI	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
Units redeemed for common shares	$ 4,248	4,248			$ 2,124	$ 2,124		$ 3	2,121			2,124
Repurchase of common shares (in shares)	0
Reallocation of NCI	$ (4,248)	(4,248)			(2,619)	(1,629)			(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
Share-based compensation expense	2,597	2,597			$ 321	$ 2,276	[1]		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	5,003,420		117,430,735
Ending balance at Mar. 31, 2022	$ 1,041,133	$ 1,041,133	(18,199)	13,352	$ 1,002,179	$ 43,801	[1]	$ 1,173	1,001,006		(16,399)	42,001	13,352
Beginning balance (in shares) at Dec. 31, 2022	117,450,951	117,450,951			117,450,951	4,713,558		117,450,951
Beginning balance at Dec. 31, 2022	$ 1,030,106	$ 1,030,106	(38,705)	13,906	$ 1,012,466	$ 41,810	[2]	$ 1,173	1,011,293	$ 629	(36,104)	39,209	13,906
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders/unitholders	(19,118)	(19,906)	(19,906)								(19,118)
Net income (loss) attributable to NCI	(1,028)	(240)		(240)								(788)	(240)
Other comprehensive loss	(300)									(288)	(12)	(12)
Common units issued as a result of common shares issued by Urban Edge (in shares)					107,936	352,943
Common units issued as a result of common shares issued by Urban Edge		0	22		$ (22)
Units redeemed for common shares (in shares)					20,000	(20,000)		20,000
Units redeemed for common shares	$ 322	322			$ 161	$ 161			161			161
Repurchase of common shares (in shares)	0
Reallocation of NCI	$ (322)	(322)			(1,108)	786	[2]		(1,108)			786
Common shares issued (in shares)								107,936
Common shares issued	0							$ 1	21		(22)
Dividends to common shareholders	(18,790)										(18,790)
Distributions to redeemable NCI	(809)											(809)
Distributions to Partners		(19,599)	(19,599)
Contributions from noncontrolling interests	558	558		558									558
Share-based compensation expense	2,007	2,007			$ 292	$ 1,715	[2]		292			1,715
Share-based awards retained for taxes (in shares)					(7,637)			(7,637)
Share-based awards retained for taxes	$ (137)	$ (137)			$ (137)				(137)
Ending balance (in shares) at Mar. 31, 2023	117,571,250	117,571,250						117,571,250
Ending balance (in shares) at Mar. 31, 2023					117,571,250	5,046,501
Ending balance at Mar. 31, 2023	$ 992,489	$ 992,489	$ (78,244)	$ 14,224	$ 1,011,696	$ 44,472	[2]	$ 1,174	$ 1,010,522	$ 341	$ (74,034)	$ 40,262	$ 14,224

[1] Limited partners have a 4.1% common limited partnership interest in the Operating Partnership as of March 31, 2022 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, 2023 in the form of OP and LTIP Units.

XML

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Distributions to redeemable NCI (in dollars per unit)	$ 0.16	$ 0.16
Accumulated (Deficit) Earnings | Urban Edge Properties LP
Dividends on common shares (in dollars per share)	0.16	0.16
Accumulated (Deficit) Earnings
Dividends on common shares (in dollars per share)	0.16	0.16
Operating Partnership
Distributions to redeemable NCI (in dollars per unit)	$ 0.16	$ 0.16
Operating Partnership | Limited Partners | Urban Edge Properties LP
Noncontrolling interest percentage	4.10%	4.10%

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (20,146,000)	$ 9,534,000
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	25,812,000	24,968,000
Gain on sale of real estate	(356,000)	0
Real estate impairment loss	34,055,000	0
Amortization of below market leases, net	(1,508,000)	(1,974,000)
Noncash lease expense	1,775,000	1,743,000
Straight-lining of rent	(830,000)	(511,000)
Share-based compensation expense	2,007,000	2,597,000
Change in operating assets and liabilities:
Tenant and other receivables	1,723,000	(1,507,000)
Deferred leasing costs	(1,928,000)	(1,025,000)
Prepaid expenses and other assets	(3,489,000)	2,893,000
Lease liabilities	(1,686,000)	(1,648,000)
Accounts payable, accrued expenses and other liabilities	(6,007,000)	(10,549,000)
Net cash provided by operating activities	29,422,000	24,521,000
CASH FLOWS FROM INVESTING ACTIVITIES
Real estate development and capital improvements	(23,153,000)	(19,078,000)
Acquisitions of real estate	0	(3,940,000)
Proceeds from sale of operating properties	356,000	0
Net cash used in investing activities	(22,797,000)	(23,018,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(5,028,000)	(4,421,000)
Dividends to common shareholders	(18,790,000)	(18,773,000)
Distributions to redeemable noncontrolling interests	(809,000)	(773,000)
Taxes withheld for vested restricted shares	(137,000)	(90,000)
Contributions from noncontrolling interests	558,000	745,000
Debt issuance costs	(7,000)	0
Net cash used in financing activities	(24,213,000)	(23,312,000)
Net decrease in cash and cash equivalents and restricted cash	(17,588,000)	(21,809,000)
Cash and cash equivalents and restricted cash at beginning of period	128,774,000	219,836,000
Cash and cash equivalents and restricted cash at end of period	111,186,000	198,027,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, net of amounts capitalized of $2,669 and $1,733, respectively	14,582,000	13,261,000
Cash payments for income taxes	9,000	896,000
NON-CASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures included in accounts payable and accrued expenses	32,579,000	19,204,000
Write-off of fully depreciated and impaired assets	35,088,000	742,000
Cash and cash equivalents at beginning of period	85,518,000	164,478,000
Cash and cash equivalents at end of period	62,142,000	151,789,000
Restricted cash at beginning of period	43,256,000	55,358,000
Restricted cash at end of period	49,044,000	46,238,000
Cash and cash equivalents and restricted cash at beginning/end of period	111,186,000	198,027,000
Urban Edge Properties LP
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(20,146,000)	9,534,000
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	25,812,000	24,968,000
Gain on sale of real estate	(356,000)	0
Real estate impairment loss	34,055,000	0
Amortization of below market leases, net	(1,508,000)	(1,974,000)
Noncash lease expense	1,775,000	1,743,000
Straight-lining of rent	(830,000)	(511,000)
Share-based compensation expense	2,007,000	2,597,000
Change in operating assets and liabilities:
Tenant and other receivables	1,723,000	(1,507,000)
Deferred leasing costs	(1,928,000)	(1,025,000)
Prepaid expenses and other assets	(3,489,000)	2,893,000
Lease liabilities	(1,686,000)	(1,648,000)
Accounts payable, accrued expenses and other liabilities	(6,007,000)	(10,549,000)
Net cash provided by operating activities	29,422,000	24,521,000
CASH FLOWS FROM INVESTING ACTIVITIES
Real estate development and capital improvements	(23,153,000)	(19,078,000)
Acquisitions of real estate	0	(3,940,000)
Proceeds from sale of operating properties	356,000	0
Net cash used in investing activities	(22,797,000)	(23,018,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(5,028,000)	(4,421,000)
Distributions to partners	(19,599,000)	(19,546,000)
Taxes withheld for vested restricted shares	(137,000)	(90,000)
Contributions from noncontrolling interests	558,000	745,000
Debt issuance costs	(7,000)	0
Net cash used in financing activities	(24,213,000)	(23,312,000)
Net decrease in cash and cash equivalents and restricted cash	(17,588,000)	(21,809,000)
Cash and cash equivalents and restricted cash at beginning of period	128,774,000	219,836,000
Cash and cash equivalents and restricted cash at end of period	111,186,000	198,027,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, net of amounts capitalized of $2,669 and $1,733, respectively	14,582,000	13,261,000
Cash payments for income taxes	9,000	896,000
NON-CASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures included in accounts payable and accrued expenses	32,579,000	19,204,000
Write-off of fully depreciated and impaired assets	35,088,000	742,000
Cash and cash equivalents at beginning of period	85,518,000	164,478,000
Cash and cash equivalents at end of period	62,142,000	151,789,000
Restricted cash at beginning of period	43,256,000	55,358,000
Restricted cash at end of period	49,044,000	46,238,000
Cash and cash equivalents and restricted cash at beginning/end of period	$ 111,186,000	$ 198,027,000

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Capitalized interest	$ 2,669	$ 1,733
Urban Edge Properties LP
Capitalized interest	$ 2,669	$ 1,733

XML

CONSOLIDATED BALANCE SHEETS - UELP - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Real estate, at cost:
Land	$ 531,594	$ 535,770
Buildings and improvements	2,469,064	2,468,385
Construction in progress	292,915	314,190
Furniture, fixtures and equipment	8,804	8,539
Total	3,302,377	3,326,884
Accumulated depreciation and amortization	(801,391)	(791,485)
Real estate, net	2,500,986	2,535,399
Operating lease right-of-use assets	62,386	64,161
Cash and cash equivalents	62,142	85,518
Restricted cash	49,044	43,256
Tenant and other receivables	15,800	17,523
Receivable arising from the straight-lining of rents	65,543	64,713
Identified intangible assets, net of accumulated amortization of $42,613 and $40,983, respectively	60,181	62,856
Deferred leasing costs, net of accumulated amortization of $20,529 and $20,107, respectively	27,649	26,799
Prepaid expenses and other assets	79,913	77,207
Total assets	2,923,644	2,977,432
Liabilities:
Mortgages payable, net	1,686,897	1,691,690
Operating lease liabilities	58,103	59,789
Accounts payable, accrued expenses and other liabilities	94,766	102,519
Identified intangible liabilities, net of accumulated amortization of $42,719 and $40,816, respectively	91,389	93,328
Total liabilities	1,931,155	1,947,326
Commitments and contingencies (Note 10)
Partners’ capital:
Accumulated other comprehensive income	341	629
Accumulated deficit	(74,034)	(36,104)
Consolidated subsidiaries	14,224	13,906
Total equity	992,489	1,030,106
Total liabilities and equity	2,923,644	2,977,432
Urban Edge Properties LP
Real estate, at cost:
Land	531,594	535,770
Buildings and improvements	2,469,064	2,468,385
Construction in progress	292,915	314,190
Furniture, fixtures and equipment	8,804	8,539
Total	3,302,377	3,326,884
Accumulated depreciation and amortization	(801,391)	(791,485)
Real estate, net	2,500,986	2,535,399
Operating lease right-of-use assets	62,386	64,161
Cash and cash equivalents	62,142	85,518
Restricted cash	49,044	43,256
Tenant and other receivables	15,800	17,523
Receivable arising from the straight-lining of rents	65,543	64,713
Identified intangible assets, net of accumulated amortization of $42,613 and $40,983, respectively	60,181	62,856
Deferred leasing costs, net of accumulated amortization of $20,529 and $20,107, respectively	27,649	26,799
Prepaid expenses and other assets	79,913	77,207
Total assets	2,923,644	2,977,432
Liabilities:
Mortgages payable, net	1,686,897	1,691,690
Operating lease liabilities	58,103	59,789
Accounts payable, accrued expenses and other liabilities	94,766	102,519
Identified intangible liabilities, net of accumulated amortization of $42,719 and $40,816, respectively	91,389	93,328
Total liabilities	1,931,155	1,947,326
Commitments and contingencies (Note 10)
Partners’ capital:
General partner: 117,571,250 and 117,450,951 units outstanding, respectively	1,011,696	1,012,466
Limited partners: 5,046,501 and 4,713,558 units outstanding, respectively	44,472	41,810
Accumulated other comprehensive income	341	629
Accumulated deficit	(78,244)	(38,705)
Total partners’ capital	978,265	1,016,200
Consolidated subsidiaries	14,224	13,906
Total equity	992,489	1,030,106
Total liabilities and equity	$ 2,923,644	$ 2,977,432

XML

CONSOLIDATED BALANCE SHEETS - UELP (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accumulated depreciation, identifiable intangible assets	$ 42,613	$ 40,983
Accumulated amortization, deferred leasing costs	20,529	20,107
Accumulated amortization, identified intangible liabilities	$ 42,719	$ 40,816
Common stock, shares, outstanding (in shares)	117,571,250	117,450,951
Urban Edge Properties LP
Accumulated depreciation, identifiable intangible assets	$ 42,613	$ 40,983
Accumulated amortization, deferred leasing costs	20,529	20,107
Accumulated amortization, identified intangible liabilities	$ 42,719	$ 40,816
Common stock, shares, outstanding (in shares)	117,571,250	117,450,951
Limited Partners, units outstanding (in units)	5,046,501	4,713,558

XML

ORGANIZATION

3 Months Ended

Mar. 31, 2023

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 in the operating partnership (“OP Units”). As of March 31, 2023, 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 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, 2023, our portfolio consisted of 70 shopping centers, two outlet centers, two 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.

XML

BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

3 Months Ended

Mar. 31, 2023

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, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023. 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, 2022, as filed with the Securities and Exchange Commission (“SEC”).

The consolidated balance sheets as of March 31, 2023 and December 31, 2022 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. As of March 31, 2023 and December 31, 2022, excluding the Operating Partnership, we consolidated two VIEs with total assets of $47.4 million and $47.6 million, respectively, and total liabilities of $23.0 million and $23.2 million, respectively. The consolidated statements of income and comprehensive income for the three months ended March 31, 2023 and 2022 include the consolidated accounts of the Company, the Operating Partnership and the two VIEs. All intercompany transactions have been eliminated in consolidation.

In accordance with ASC 205 Presentation of Financial Statements, certain prior period balances have been reclassified in order to conform to the current period presentation.

Our primary business is the ownership, management, acquisition, redevelopment, and development 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 at the individual operating segment. 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. None of our tenants accounted for more than 10% of our revenue or property operating income as of March 31, 2023.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2023

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 and ready for its intended use. 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 and development projects are individually evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Such events and changes include macroeconomic conditions, operating performance, and environmental and regulatory changes, which may result in property operational disruption and could indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis taking into account the appropriate capitalization rate in determining a future terminal value. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Estimated fair value may be based on discounted future cash flows utilizing appropriate discount and capitalization rates and, in addition to available market information, third-party appraisals, broker selling estimates or sale agreements under negotiation. Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows change based on uncertain market conditions, our evaluation of impairment losses may be different and such differences could be material to our consolidated financial statements.

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 provide 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 (“LIBOR”) 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 were effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, FASB issued ASU 2022-06 Reference Rate Reform (ASC 848): Deferral of the Sunset Date of Topic 848, which extended the final sunset date from December 31, 2022 to December 31, 2024. There were no modifications to our existing debt agreements as a result of reference rate reform in the current year, however, we refinanced two loans in 2022 previously indexed to LIBOR, which are now indexed to the Secured Overnight Financing Rate (“SOFR”) and the Prime

Rate. We plan to transition all variable rate loans currently indexed to LIBOR to SOFR, based on discussions with our lenders and do not expect the transitions to have a material impact on the loans affected.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.

XML

ACQUISITIONS AND DISPOSITIONS

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS AND DISPOSITIONS

Acquisitions

During the three months ended March 31, 2023, 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 during the three months ended March 31, 2022 includes $0.1 million of transaction costs.

(2) The outparcel is included with Sunrise Mall in our total property count and for the purpose of calculating our 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.

Dispositions

During the three months ended March 31, 2023 and 2022, no dispositions were completed by the Company. During the three months ended March 31, 2023, we recognized a gain on sale of real estate of $0.4 million in connection with the release of escrow funds related to a property disposed of in a prior period.

XML

IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2023

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 $60.2 million and $91.4 million, respectively, as of March 31, 2023 and $62.9 million and $93.3 million, respectively, as of December 31, 2022.

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in additional rental income of $1.5 million and $2.0 million for the three months ended March 31, 2023 and 2022, respectively.

Amortization of acquired in-place leases inclusive of customer relationships resulted in additional depreciation and amortization expense of $2.4 million and $2.8 million for the three months ended March 31, 2023 and 2022, respectively.

The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2023 and the five succeeding years:

(Amounts in thousands)	Below-Market		Above-Market		In-Place Lease
Year	Operating Lease Amortization		Operating Lease Amortization		Amortization
2023(1)	$	5,809	$	(756)	$	(6,860)
2024	7,512		(920)		(7,786)
2025	7,332		(725)		(6,315)
2026	6,955		(606)		(5,613)
2027	6,677		(458)		(5,085)
2028	6,030		(441)		(4,550)

(1) Remainder of 2023

XML

MORTGAGES PAYABLE

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

MORTGAGES PAYABLE

MORTGAGES PAYABLE

The following is a summary of mortgages payable as of March 31, 2023 and December 31, 2022.

(Amounts in thousands)	Maturity	Interest Rate at March 31, 2023	March 31, 2023		December 31, 2022
Mortgages secured by:
Variable rate
Hudson Commons(1)	11/15/2024	6.53%	$	27,344	$	27,482
Greenbrook Commons(1)	11/15/2024	6.53%	25,452		25,581
Gun Hill Commons(1)	12/1/2024	6.53%	24,065		24,188
Plaza at Cherry Hill(2)	6/15/2025	8.50%	29,000		29,000
Plaza at Woodbridge(3)	6/8/2027	5.26%	52,947		52,947
Total variable rate debt			158,808		159,198
Fixed rate
Bergen Town Center(5)	4/8/2023	3.56%	300,000		300,000
Shops at Bruckner(6)	5/1/2023	3.90%	8,847		9,020
Hudson Mall	12/1/2023	5.07%	21,184		21,380
Yonkers Gateway Center	4/6/2024	4.16%	24,537		24,996
Brick Commons	12/10/2024	3.87%	48,401		48,636
West End Commons	12/10/2025	3.99%	24,544		24,658
Las Catalinas Mall	2/1/2026	4.43%	118,401		119,633
Town Brook Commons	12/1/2026	3.78%	30,678		30,825
Rockaway River Commons	12/1/2026	3.78%	27,161		27,291
Hanover Commons	12/10/2026	4.03%	62,176		62,453
Tonnelle Commons	4/1/2027	4.18%	98,438		98,870
Manchester Plaza	6/1/2027	4.32%	12,500		12,500
Millburn Gateway Center	6/1/2027	3.97%	22,369		22,489
Totowa Commons	12/1/2027	4.33%	50,800		50,800
Woodbridge Commons	12/1/2027	4.36%	22,100		22,100
Brunswick Commons	12/6/2027	4.38%	63,000		63,000
Rutherford Commons	1/6/2028	4.49%	23,000		23,000
Kingswood Center(7)	2/6/2028	5.07%	69,714		69,935
Hackensack Commons	3/1/2028	4.36%	66,400		66,400
Marlton Commons	12/1/2028	3.86%	37,234		37,400
East Hanover Warehouses	12/1/2028	4.09%	40,526		40,700
Union (Vauxhall)	12/10/2028	4.01%	45,600		45,600
The Shops at Riverwood	6/24/2029	4.25%	21,466		21,466
Freeport Commons	12/10/2029	4.07%	43,100		43,100
The Outlets at Montehiedra	6/1/2030	5.00%	77,057		77,531
Montclair(4)	8/15/2030	3.15%	7,250		7,250
Garfield Commons	12/1/2030	4.14%	40,130		40,300
Woodmore Towne Centre	1/6/2032	3.39%	117,200		117,200
Mount Kisco Commons	11/15/2034	6.40%	11,598		11,760
Total fixed rate debt			1,535,411		1,540,293
Total mortgages payable			1,694,219		1,699,491
	Unamortized debt issuance costs		(7,322)		(7,801)
Total mortgages payable, net			$	1,686,897	$	1,691,690

(1)Bears interest at one month London Interbank Offered Rate (“LIBOR”) plus 190 bps.

(2)Bears interest at the Prime Rate plus 50 bps with a minimum rate of 4.25%.

(3)Bears interest at one month Secured Overnight Financing Rate (“SOFR”) plus 226 bps. The variable component of the debt is hedged with an interest rate cap agreement to limit SOFR to a maximum of 3%.

(4)Bears interest at LIBOR plus 257 bps. The fixed and variable components of the debt are hedged with an interest rate swap agreement, fixing the rate at 3.15%, which expires at the maturity of the loan.

(5)On April 6, 2023, the Company refinanced the $300 million loan for Bergen Town Center that matured on April 8, 2023 with a new 7-year, $290 million loan at a fixed interest rate of 6.3%.

(6)On May 1, 2023 the Company entered into a forbearance agreement to extend the loan maturity date by 30 days to June 1, 2023, with an option to extend for an additional 30 days to July 1, 2023.

(7)Subsequent to March 31, 2023, the Company notified the servicer that the cash flows generated by the property are insufficient to cover the debt service and that it is unwilling to fund future shortfalls. Upon notice, the mortgage was transferred to special servicing at the Company’s request.

The net carrying amount of real estate collateralizing the above indebtedness amounted to approximately $1.5 billion as of March 31, 2023. 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, 2023, we were in compliance with all debt covenants.

As of March 31, 2023, the principal repayments of the Company’s total outstanding debt for the remainder of 2023 and the five succeeding years, and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,
2023(1)(2)	$	346,225
2024	166,380
2025	72,683
2026	229,553
2027	316,771
2028	272,934
Thereafter	289,673

(1) Remainder of 2023.

(2) On April 6, 2023, the Company refinanced the loan for Bergen Town Center that matured on April 8, 2023, with a new 7-year fixed rate loan, reducing our principal payments due in the remainder of 2023 by $300 million.

Revolving Credit Agreement

On January 15, 2015, we entered into a $500 million Revolving Credit Agreement (the “Agreement”) with certain financial institutions. On March 7, 2017, we amended and extended the Agreement. The amendment increased the credit facility size by $100 million to $600 million and extended the maturity date to March 7, 2021, with two six-month extension options. On July 29, 2019, we entered into a second amendment to the Agreement to extend the maturity date to January 29, 2024, with two six-month extension options.

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 period annualized.

On August 9, 2022, we amended and restated the Agreement, in order to, among other things, increase the credit facility size by $200 million to $800 million and extend the maturity date to February 9, 2027, with two six-month extension options. Borrowings under the amended and restated Agreement are subject to interest at SOFR plus 1.05% to 1.50% and an annual facility fee of 15 to 30 basis points. Both the spread over SOFR 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, 2023 or December 31, 2022. Financing costs associated with executing the Agreement of $6.3 million and $6.7 million as of March 31, 2023 and December 31, 2022, respectively, are included in the prepaid expenses and other assets line item of the consolidated balance sheets, as deferred financing costs, net. Subsequent to quarter end, the Company obtained two letters of credit issued under the Agreement, reducing the available balance of the facility to approximately $776.2 million. Refer to the “Mortgage on Bergen Town Center” disclosure below for more information.

Mortgage on Bergen Town Center

On April 6, 2023, the Company refinanced the mortgage loan secured by Bergen Town Center with a new 7-year, $290 million loan at a fixed interest rate of 6.3%. The proceeds from the new loan were used to pay down the Company’s previous mortgage on the property, which had an outstanding balance of $300 million, with the remainder paid using cash on hand. In connection with the refinancing, the Company obtained two letters of credit issued under our Revolving Credit Agreement aggregating $23.8 million to serve as collateral to secure the Company’s obligation to the lenders in relation to certain leasing and capital

expenditure reserves required per the loan agreement. The issuance of these letters has reduced the available balance under the Agreement to approximately $776.2 million. We have not recorded any liabilities associated with these letters of credit.

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 that 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, 2023. 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 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 3.5 years. As of March 31, 2023, the remaining exposure under the guarantee is $7.6 million. There was no separate liability recorded related to this guarantee.

XML

INCOME TAXES

3 Months Ended

Mar. 31, 2023

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. So long as the Company qualifies as a REIT under the Code, the Company will not be subject to U.S. federal income tax on net taxable income that it distributes annually to its shareholders. If we fail to qualify as a REIT for any taxable year, we will be subject to federal income taxes at regular corporate rates and may not be able to qualify as a REIT for the four subsequent taxable years. The Company is subject to certain foreign and state and local income taxes, 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 and comprehensive income. In addition, the Company’s taxable REIT subsidiary (“TRS”) is subject to income tax at regular corporate rates.

For U.S. federal income tax purposes, the REIT 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, 2023 and 2022, certain non-real estate operating activities that could not be performed by the REIT, 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 and comprehensive income.

During the three months ended March 31, 2023, the REIT 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 REIT 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 and comprehensive income.

For the three months ended March 31, 2023 and 2022, the Puerto Rico income tax expense was $0.7 million and $0.9 million, respectively. The REIT was not subject to any material state and local income tax expense or benefit for the three months ended March 31, 2023 and 2022. All amounts for the three months ended March 31, 2023 and 2022 are included in income tax expense on the consolidated statements of income and comprehensive income.

XML

LEASES (Notes)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

LEASES

LEASES

All rental revenue was generated from operating leases for the three months ended March 31, 2023 and 2022. The components of rental revenue for the three months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022
Rental Revenue
Fixed lease revenue	$	73,499	$	70,341
Variable lease revenue(1)	25,855		29,075
Total rental revenue	$	99,354	$	99,416

(1) Percentage rents for the three months ended March 31, 2023 and 2022 were $0.8 million and $1.2 million, respectively.

XML

FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2023

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 Basis

Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of one interest rate cap and one interest rate swap. We rely on third-party valuations that use market observable inputs, such as credit spreads, yield curves and discount rates, to assess the fair value of these instruments. In accordance with the fair value hierarchy established by ASC 820, these financial instruments have been classified as Level 2 as quoted market prices are not readily available for valuing the assets. The tables below summarize the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022:

	As of March 31, 2023
(Amounts in thousands)	Level 1		Level 2		Level 3		Total
Interest rate cap and swap(1)	$	—	$	1,606	$	—	$	1,606

	As of December 31, 2022
(Amounts in thousands)	Level 1		Level 2		Level 3		Total
Interest rate cap and swap(1)	$	—	$	1,976	$	—	$	1,976

(1) Included in Prepaid expenses and other assets on the consolidated balance sheets.

Derivatives and Hedging

When we designate a derivative as a hedge, depending on the nature of the hedge, changes in the fair value of the instrument will be recognized in Other Comprehensive Income (“OCI”) until the gains or losses are reclassified to earnings. Derivatives that are not designated as hedges are adjusted to fair value through earnings. As of March 31, 2023, the Company was a counterparty to two interest rate derivative agreements which have been designated as cash flow hedges.

The tables below summarize our derivative instruments, which are used to hedge the corresponding variable rate debt, as of March 31, 2023 and December 31, 2022:

(Amounts in thousands)	As of March 31, 2023
Hedged Instrument	Fair Value		Notional Amount		Spread	Interest Rate	Effective Interest Rate	Expiration
Plaza at Woodbridge interest rate cap	$	332	$	52,947	SOFR + 2.26%	6.82%	5.26%	7/1/2023
Montclair interest rate swap	1,274		7,250		LIBOR + 2.57%	7.25%	3.15%	8/15/2030

(Amounts in thousands)	As of December 31, 2022
Hedged Instrument	Fair Value		Notional Amount		Spread	Interest Rate	Effective Interest Rate	Expiration
Plaza at Woodbridge interest rate cap	$	509	$	52,947	SOFR + 2.26%	6.27%	5.26%	7/1/2023
Montclair interest rate swap	1,467		7,250		LIBOR + 2.57%	6.89%	3.15%	8/15/2030

The table below summarizes the effect of our derivative instruments on our consolidated statements of income and comprehensive income for the three months ended March 31, 2023 and 2022:

	Unrealized Gain (Loss) Recognized in OCI on Derivatives
(Amounts in thousands)	Three Months Ended March 31,
Hedged Instrument	2023		2022
Plaza at Woodbridge interest rate cap	$	(108)	$	—
Montclair interest rate swap	(192)		—
Total	$	(300)	$	—

Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

There were no financial assets or liabilities measured at fair value on a non-recurring basis as of March 31, 2023 and December 31, 2022.

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 is 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, 2023 and December 31, 2022:

	As of March 31, 2023				As of December 31, 2022
(Amounts in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Mortgages payable(1)	$	1,694,219	$	1,583,184	$	1,699,491	$	1,542,869

(1) Carrying amounts exclude unamortized debt issuance costs of $7.3 million and $7.8 million as of March 31, 2023 and December 31, 2022, respectively.

Nonfinancial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

We assess the carrying value of our properties for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Such events and changes include macroeconomic conditions, operating performance, and environmental and regulatory changes, which may result in property operational disruption and could indicate that the carrying amount may not be recoverable.

As a result of our quarterly impairment evaluation, we recognized an impairment charge on our property, Kingswood Center, an office and retail center acquired in February 2020, located in Brooklyn, NY. In March of 2023, a tenant representing 50,000 sf informed us that they intend to vacate early next year, and a tenant representing 17,000 sf terminated their lease effective in April of 2023. As a result of these events and the uncertainty of the office market, we determined that the undiscounted future cash flows and future terminal value were less than the carrying value of the property. The mortgage on the property was recently transferred to special servicing at the Company's request considering the 2023 projected NOI will not cover debt service.

The impairment charge of $34.1 million was calculated as the difference between the asset's individual carrying value and the estimated fair value of $49 million less estimated selling costs, which was based on the discounted future cash flows and future terminal value. The discounted cash flows and terminal value utilized a discount rate of 8% and capitalization rates of 6% for retail and 7% for office, which were corroborated by third-party valuations and market data. The Company believes the inputs utilized to measure the fair value were reasonable in the context of applicable market conditions, however, due to the significance of the unobservable inputs in the overall fair value measures, the Company determined that such fair value measurements are classified as Level 3. The impairment charge is recorded within the real estate impairment loss line item on

our consolidated statements of income and comprehensive income for the three months ended March 31, 2023. No impairment charges were recognized during the three months ended March 31, 2022.

XML

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2023

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 24 active development, redevelopment or anchor repositioning projects with total estimated costs of $217.7 million, of which $150 million remains to be funded as of March 31, 2023. 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, amongst 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 $50 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 $1.6 million on our consolidated balance sheets as of March 31, 2023 and December 31, 2022, 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. On April 23, 2023, Bed Bath & Beyond filed for Chapter 11 bankruptcy protection. Bed Bath & Beyond has six leases with us, including those with wholly-owned store concepts buybuy Baby and Harmon Face Values. We have three leases with Harmon Face Values, totaling 18,000 sf that generate $0.5 million in annual rental revenue. Harmon Face Values ceased operations at all three locations during the quarter ended March 31, 2023. The remaining three leases with Bed Bath & Beyond generate an additional $3.1 million in annual rental revenue and remain open as of March 31, 2023. Given the recent bankruptcy filing, it is uncertain whether these stores will continue to operate, close permanently, or whether they will be sold to other operators as part of the bankruptcy proceedings.

XML

PREPAID EXPENSES AND OTHER ASSETS

3 Months Ended

Mar. 31, 2023

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, 2023		December 31, 2022
Deferred tax asset, net	$	33,933	$	34,616
Other assets	18,823		18,386
Deferred financing costs, net of accumulated amortization of $7,682 and $7,269, respectively	6,336		6,749
Finance lease right-of-use asset	2,724		2,724
Prepaid expenses:
Real estate taxes	7,584		12,080
Insurance	9,189		1,391
Licenses/fees	1,324		1,261
Total prepaid expenses and other assets	$	79,913	$	77,207

XML

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

3 Months Ended

Mar. 31, 2023

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, 2023		December 31, 2022
Accrued capital expenditures and leasing costs	$	33,753	$	35,732
Deferred tenant revenue	28,104		28,468
Accrued interest payable	10,812		10,789
Security deposits	8,174		8,048
Other liabilities and accrued expenses	7,906		6,939
Finance lease liability	3,019		3,016
Accrued payroll expenses	2,998		9,527
Total accounts payable, accrued expenses and other liabilities	$	94,766	$	102,519

XML

INTEREST AND DEBT EXPENSE

3 Months Ended

Mar. 31, 2023

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 and comprehensive income:

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022
Interest expense	$	14,337	$	13,259
Amortization of deferred financing costs	956		745
Total interest and debt expense	$	15,293	$	14,004

XML

EQUITY AND NONCONTROLLING INTEREST

3 Months Ended

Mar. 31, 2023

Noncontrolling Interest [Abstract]

EQUITY AND NONCONTROLLING INTEREST

EQUITY AND NONCONTROLLING INTEREST

At-The-Market Program

On August 15, 2022 the Company and the Operating Partnership entered into an equity distribution agreement (the “Equity Distribution Agreement”) with various financial institutions acting as agents, forward sellers, and forward purchasers. Pursuant to the Equity Distribution Agreement, the Company may from time to time offer and sell, through the agents and forward sellers, the Company’s common shares, par value $0.01 per share, having an aggregate offering price of up to $250 million (the “ATM Program”). Concurrently with the Equity Distribution Agreement, the Company entered into separate master forward confirmations (collectively, the “Master Confirmations”) with each of the forward purchasers. 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. The ATM Program replaces the Company’s previous at-the-market program established on June 7, 2021.

The Equity Distribution Agreement provides that the Company may also enter into forward sale agreements pursuant to any Master Confirmation and related supplemental confirmations with the forward purchasers. In connection with any forward sale agreement, a forward purchaser will, at the Company’s request, borrow from third parties, through its forward seller, and sell a number of shares equal to the amount provided in such agreement.

As of March 31, 2023, 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 SEC 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, 2023 and 2022, no shares were repurchased by the Company. As of March 31, 2023, 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, 2023, 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, 2023 and 2022, the Company declared distributions on common shares and OP units of $0.16 per share/unit.

Noncontrolling Interests in Operating Partnership

Noncontrolling interests in the Operating Partnership reflected on the consolidated balance sheets of the Company are comprised of OP units and limited partnership interests in the Operating Partnership in the form of LTIP unit awards. LTIP unit awards were granted to certain executives pursuant to our 2015 Omnibus Share Plan (the “Omnibus Share Plan”) and our 2018 Inducement Equity Plan (the “Inducement Plan”). OP units were issued to contributors in exchange for their property interests in connection with the Company’s property acquisitions in 2017.

The total of the OP units and LTIP units represent a 4.0% weighted-average interest in the Operating Partnership for the three months ended March 31, 2023. 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 and comprehensive income.

XML

SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2023

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 and comprehensive income, is summarized as follows:

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022
Share-based compensation expense components:
Time-based LTIP expense(1)	$	987	$	1,232
Performance-based LTIP expense(2)	728		1,045
Restricted share expense	239		60
Deferred share unit (“DSU”) expense	33		25
Stock option expense	20		235
Total Share-based compensation expense	$	2,007	$	2,597

(1) Expense for the three months ended March 31, 2023 includes the 2023, 2022, 2021, 2020 and 2019 LTI Plans.

(2) Expense for the three months ended March 31, 2023 includes the 2017 OPP plan and the 2023, 2022, 2021, 2020, 2019, and 2018 LTI Plans.

Equity award activity during the three months ended March 31, 2023 included: (i) 257,561 LTIP units granted, (ii) 176,268 LTIP units vested, (iii) 72,227 restricted shares granted, (iv) 32,134 stock options vested, and (v) 29,939 restricted shares vested.

2023 Long-Term Incentive Plan

On February 10, 2023, the Company established the 2023 Long-Term Incentive Plan (“2023 LTI Plan”) under the Omnibus Share 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. With respect to the other half of the program, the awards are earned and vest if certain relative and absolute total shareholder return (“TSR”) and/or funds from operations (“FFO”) and same-property net operating income (“SP NOI”) growth targets are achieved by the Company over a three-year performance period. The total grant date fair value under the 2023 LTI Plan was $7.4 million, comprising both performance-based and time-based awards as described further below:

Performance-based awards

For the performance-based awards under the 2023 LTI plan, participants have the opportunity to earn awards in the form of LTIP units if Urban Edge’s absolute and/or relative TSR meets certain criteria over the three-year performance measurement

period beginning on February 10, 2023 and ending on February 9, 2026. Participants also have the opportunity to earn awards in the form of LTIP units if Urban Edge’s FFO growth component and SP NOI growth component meets certain criteria over the three-year performance measurement period beginning January 1, 2023 and ending on December 31, 2025. The Company granted performance-based awards under the 2023 LTI Plan representing 309,611 units. The fair value of the performance-based award portion of the 2023 LTI Plan on the grant date was $3.7 million using a Monte Carlo simulation to estimate the fair value of the Absolute and Relative components through a risk-neutral premise. Assumptions include historical volatility (53.3%), risk-free interest rates (4.2%), and historical daily return as compared to certain peer companies.

Time-based awards

The time-based awards granted under the 2023 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, 2023, the Company granted time-based awards under the 2023 LTI Plan that represent 257,561 LTIP units with a grant date fair value of $3.7 million.

XML

EARNINGS PER SHARE AND UNIT

3 Months Ended

Mar. 31, 2023

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)	2023		2022
Numerator:
Net income (loss) attributable to common shareholders	$	(19,118)	$	9,486
Less: (Earnings) loss allocated to unvested participating securities	13		(5)
Net income (loss) available for common shareholders - basic	$	(19,105)	$	9,481
Impact of assumed conversions:
OP and LTIP Units	—		—
Net income (loss) available for common shareholders - dilutive	$	(19,105)	$	9,481
Denominator:
Weighted average common shares outstanding - basic	117,450		117,330
Effect of dilutive securities(1):
Restricted share awards	—		63
Assumed conversion of OP and LTIP Units	—		—
Weighted average common shares outstanding - diluted	117,450		117,393
Earnings per share available to common shareholders:
Earnings (loss) per common share - Basic	$	(0.16)	$	0.08
Earnings (loss) per common share - Diluted	$	(0.16)	$	0.08

(1) For the three months ended March 31, 2023 and 2022, the effect of the redemption of certain 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)	2023		2022
Numerator:
Net income (loss) attributable to unitholders	$	(19,906)	$	9,873
Less: net (income) loss attributable to participating securities	13		(5)
Net income (loss) available for unitholders	$	(19,893)	$	9,868
Denominator:
Weighted average units outstanding - basic	121,752		121,188
Effect of dilutive securities issued by Urban Edge	—		63
Unvested LTIP Units	—		936
Weighted average units outstanding - diluted	121,752		122,187
Earnings per unit available to unitholders:
Earnings (loss) per unit - Basic	$	(0.16)	$	0.08
Earnings (loss) per unit - Diluted	$	(0.16)	$	0.08

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2023

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, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023. 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, 2022, as filed with the Securities and Exchange Commission (“SEC”).

Consolidation and Noncontrolling Interests

The consolidated balance sheets as of March 31, 2023 and December 31, 2022 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. As of March 31, 2023 and December 31, 2022, excluding the Operating Partnership, we consolidated two VIEs with total assets of $47.4 million and $47.6 million, respectively, and total liabilities of $23.0 million and $23.2 million, respectively. The consolidated statements of income and comprehensive income for the three months ended March 31, 2023 and 2022 include the consolidated accounts of the Company, the Operating Partnership and the two VIEs. All intercompany transactions have been eliminated in consolidation.

In accordance with ASC 205 Presentation of Financial Statements, certain prior period balances have been reclassified in order to conform to the current period presentation.

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 provide 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 (“LIBOR”) 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 were effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, FASB issued ASU 2022-06 Reference Rate Reform (ASC 848): Deferral of the Sunset Date of Topic 848, which extended the final sunset date from December 31, 2022 to December 31, 2024. There were no modifications to our existing debt agreements as a result of reference rate reform in the current year, however, we refinanced two loans in 2022 previously indexed to LIBOR, which are now indexed to the Secured Overnight Financing Rate (“SOFR”) and the Prime Rate. We plan to transition all variable rate loans currently indexed to LIBOR to SOFR, based on discussions with our lenders and do not expect the transitions to have a material impact on the loans affected.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.

XML

ACQUISITIONS AND DISPOSITIONS (Tables)

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions, by Acquisition

During the three months ended March 31, 2023, 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 during the three months ended March 31, 2022 includes $0.1 million of transaction costs.

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

XML

IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2023

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 2023 and the five succeeding years:

(Amounts in thousands)	Below-Market		Above-Market		In-Place Lease
Year	Operating Lease Amortization		Operating Lease Amortization		Amortization
2023(1)	$	5,809	$	(756)	$	(6,860)
2024	7,512		(920)		(7,786)
2025	7,332		(725)		(6,315)
2026	6,955		(606)		(5,613)
2027	6,677		(458)		(5,085)
2028	6,030		(441)		(4,550)

(1) Remainder of 2023

XML

MORTGAGES PAYABLE (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Mortgages Payable

The following is a summary of mortgages payable as of March 31, 2023 and December 31, 2022.

(Amounts in thousands)	Maturity	Interest Rate at March 31, 2023	March 31, 2023		December 31, 2022
Mortgages secured by:
Variable rate
Hudson Commons(1)	11/15/2024	6.53%	$	27,344	$	27,482
Greenbrook Commons(1)	11/15/2024	6.53%	25,452		25,581
Gun Hill Commons(1)	12/1/2024	6.53%	24,065		24,188
Plaza at Cherry Hill(2)	6/15/2025	8.50%	29,000		29,000
Plaza at Woodbridge(3)	6/8/2027	5.26%	52,947		52,947
Total variable rate debt			158,808		159,198
Fixed rate
Bergen Town Center(5)	4/8/2023	3.56%	300,000		300,000
Shops at Bruckner(6)	5/1/2023	3.90%	8,847		9,020
Hudson Mall	12/1/2023	5.07%	21,184		21,380
Yonkers Gateway Center	4/6/2024	4.16%	24,537		24,996
Brick Commons	12/10/2024	3.87%	48,401		48,636
West End Commons	12/10/2025	3.99%	24,544		24,658
Las Catalinas Mall	2/1/2026	4.43%	118,401		119,633
Town Brook Commons	12/1/2026	3.78%	30,678		30,825
Rockaway River Commons	12/1/2026	3.78%	27,161		27,291
Hanover Commons	12/10/2026	4.03%	62,176		62,453
Tonnelle Commons	4/1/2027	4.18%	98,438		98,870
Manchester Plaza	6/1/2027	4.32%	12,500		12,500
Millburn Gateway Center	6/1/2027	3.97%	22,369		22,489
Totowa Commons	12/1/2027	4.33%	50,800		50,800
Woodbridge Commons	12/1/2027	4.36%	22,100		22,100
Brunswick Commons	12/6/2027	4.38%	63,000		63,000
Rutherford Commons	1/6/2028	4.49%	23,000		23,000
Kingswood Center(7)	2/6/2028	5.07%	69,714		69,935
Hackensack Commons	3/1/2028	4.36%	66,400		66,400
Marlton Commons	12/1/2028	3.86%	37,234		37,400
East Hanover Warehouses	12/1/2028	4.09%	40,526		40,700
Union (Vauxhall)	12/10/2028	4.01%	45,600		45,600
The Shops at Riverwood	6/24/2029	4.25%	21,466		21,466
Freeport Commons	12/10/2029	4.07%	43,100		43,100
The Outlets at Montehiedra	6/1/2030	5.00%	77,057		77,531
Montclair(4)	8/15/2030	3.15%	7,250		7,250
Garfield Commons	12/1/2030	4.14%	40,130		40,300
Woodmore Towne Centre	1/6/2032	3.39%	117,200		117,200
Mount Kisco Commons	11/15/2034	6.40%	11,598		11,760
Total fixed rate debt			1,535,411		1,540,293
Total mortgages payable			1,694,219		1,699,491
	Unamortized debt issuance costs		(7,322)		(7,801)
Total mortgages payable, net			$	1,686,897	$	1,691,690

(1)Bears interest at one month London Interbank Offered Rate (“LIBOR”) plus 190 bps.

(2)Bears interest at the Prime Rate plus 50 bps with a minimum rate of 4.25%.

(3)Bears interest at one month Secured Overnight Financing Rate (“SOFR”) plus 226 bps. The variable component of the debt is hedged with an interest rate cap agreement to limit SOFR to a maximum of 3%.

(4)Bears interest at LIBOR plus 257 bps. The fixed and variable components of the debt are hedged with an interest rate swap agreement, fixing the rate at 3.15%, which expires at the maturity of the loan.

(5)On April 6, 2023, the Company refinanced the $300 million loan for Bergen Town Center that matured on April 8, 2023 with a new 7-year, $290 million loan at a fixed interest rate of 6.3%.

(6)On May 1, 2023 the Company entered into a forbearance agreement to extend the loan maturity date by 30 days to June 1, 2023, with an option to extend for an additional 30 days to July 1, 2023.

(7)Subsequent to March 31, 2023, the Company notified the servicer that the cash flows generated by the property are insufficient to cover the debt service and that it is unwilling to fund future shortfalls. Upon notice, the mortgage was transferred to special servicing at the Company’s request.

Schedule of Principal Repayments

As of March 31, 2023, the principal repayments of the Company’s total outstanding debt for the remainder of 2023 and the five succeeding years, and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,
2023(1)(2)	$	346,225
2024	166,380
2025	72,683
2026	229,553
2027	316,771
2028	272,934
Thereafter	289,673

(1) Remainder of 2023.

(2) On April 6, 2023, the Company refinanced the loan for Bergen Town Center that matured on April 8, 2023, with a new 7-year fixed rate loan, reducing our principal payments due in the remainder of 2023 by $300 million.

XML

LEASES (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Schedule of Components of Rental Revenue

The components of rental revenue for the three months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022
Rental Revenue
Fixed lease revenue	$	73,499	$	70,341
Variable lease revenue(1)	25,855		29,075
Total rental revenue	$	99,354	$	99,416

(1) Percentage rents for the three months ended March 31, 2023 and 2022 were $0.8 million and $1.2 million, respectively.

XML

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring

The tables below summarize the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022:

	As of March 31, 2023
(Amounts in thousands)	Level 1		Level 2		Level 3		Total
Interest rate cap and swap(1)	$	—	$	1,606	$	—	$	1,606

	As of December 31, 2022
(Amounts in thousands)	Level 1		Level 2		Level 3		Total
Interest rate cap and swap(1)	$	—	$	1,976	$	—	$	1,976

(1) Included in Prepaid expenses and other assets on the consolidated balance sheets.

Schedule of Derivative Instruments

The tables below summarize our derivative instruments, which are used to hedge the corresponding variable rate debt, as of March 31, 2023 and December 31, 2022:

(Amounts in thousands)	As of March 31, 2023
Hedged Instrument	Fair Value		Notional Amount		Spread	Interest Rate	Effective Interest Rate	Expiration
Plaza at Woodbridge interest rate cap	$	332	$	52,947	SOFR + 2.26%	6.82%	5.26%	7/1/2023
Montclair interest rate swap	1,274		7,250		LIBOR + 2.57%	7.25%	3.15%	8/15/2030

(Amounts in thousands)	As of December 31, 2022
Hedged Instrument	Fair Value		Notional Amount		Spread	Interest Rate	Effective Interest Rate	Expiration
Plaza at Woodbridge interest rate cap	$	509	$	52,947	SOFR + 2.26%	6.27%	5.26%	7/1/2023
Montclair interest rate swap	1,467		7,250		LIBOR + 2.57%	6.89%	3.15%	8/15/2030

The table below summarizes the effect of our derivative instruments on our consolidated statements of income and comprehensive income for the three months ended March 31, 2023 and 2022:

	Unrealized Gain (Loss) Recognized in OCI on Derivatives
(Amounts in thousands)	Three Months Ended March 31,
Hedged Instrument	2023		2022
Plaza at Woodbridge interest rate cap	$	(108)	$	—
Montclair interest rate swap	(192)		—
Total	$	(300)	$	—

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, 2023 and December 31, 2022:

	As of March 31, 2023				As of December 31, 2022
(Amounts in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Mortgages payable(1)	$	1,694,219	$	1,583,184	$	1,699,491	$	1,542,869

(1) Carrying amounts exclude unamortized debt issuance costs of $7.3 million and $7.8 million as of March 31, 2023 and December 31, 2022, respectively.

XML

PREPAID EXPENSES AND OTHER ASSETS (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023		December 31, 2022
Deferred tax asset, net	$	33,933	$	34,616
Other assets	18,823		18,386
Deferred financing costs, net of accumulated amortization of $7,682 and $7,269, respectively	6,336		6,749
Finance lease right-of-use asset	2,724		2,724
Prepaid expenses:
Real estate taxes	7,584		12,080
Insurance	9,189		1,391
Licenses/fees	1,324		1,261
Total prepaid expenses and other assets	$	79,913	$	77,207

XML

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2023

Other Liabilities Disclosure [Abstract]

Schedule of Composition of 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, 2023		December 31, 2022
Accrued capital expenditures and leasing costs	$	33,753	$	35,732
Deferred tenant revenue	28,104		28,468
Accrued interest payable	10,812		10,789
Security deposits	8,174		8,048
Other liabilities and accrued expenses	7,906		6,939
Finance lease liability	3,019		3,016
Accrued payroll expenses	2,998		9,527
Total accounts payable, accrued expenses and other liabilities	$	94,766	$	102,519

XML

INTEREST AND DEBT EXPENSE (Tables)

3 Months Ended

Mar. 31, 2023

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 and comprehensive income:

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022
Interest expense	$	14,337	$	13,259
Amortization of deferred financing costs	956		745
Total interest and debt expense	$	15,293	$	14,004

XML

SHARE-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2023

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 and comprehensive income, is summarized as follows:

	Three Months Ended March 31,
(Amounts in thousands)	2023		2022
Share-based compensation expense components:
Time-based LTIP expense(1)	$	987	$	1,232
Performance-based LTIP expense(2)	728		1,045
Restricted share expense	239		60
Deferred share unit (“DSU”) expense	33		25
Stock option expense	20		235
Total Share-based compensation expense	$	2,007	$	2,597

(1) Expense for the three months ended March 31, 2023 includes the 2023, 2022, 2021, 2020 and 2019 LTI Plans.

(2) Expense for the three months ended March 31, 2023 includes the 2017 OPP plan and the 2023, 2022, 2021, 2020, 2019, and 2018 LTI Plans.

XML

EARNINGS PER SHARE AND UNIT (Tables)

3 Months Ended

Mar. 31, 2023

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)	2023		2022
Numerator:
Net income (loss) attributable to common shareholders	$	(19,118)	$	9,486
Less: (Earnings) loss allocated to unvested participating securities	13		(5)
Net income (loss) available for common shareholders - basic	$	(19,105)	$	9,481
Impact of assumed conversions:
OP and LTIP Units	—		—
Net income (loss) available for common shareholders - dilutive	$	(19,105)	$	9,481
Denominator:
Weighted average common shares outstanding - basic	117,450		117,330
Effect of dilutive securities(1):
Restricted share awards	—		63
Assumed conversion of OP and LTIP Units	—		—
Weighted average common shares outstanding - diluted	117,450		117,393
Earnings per share available to common shareholders:
Earnings (loss) per common share - Basic	$	(0.16)	$	0.08
Earnings (loss) per common share - Diluted	$	(0.16)	$	0.08

(1) For the three months ended March 31, 2023 and 2022, the effect of the redemption of certain 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)	2023		2022
Numerator:
Net income (loss) attributable to unitholders	$	(19,906)	$	9,873
Less: net (income) loss attributable to participating securities	13		(5)
Net income (loss) available for unitholders	$	(19,893)	$	9,868
Denominator:
Weighted average units outstanding - basic	121,752		121,188
Effect of dilutive securities issued by Urban Edge	—		63
Unvested LTIP Units	—		936
Weighted average units outstanding - diluted	121,752		122,187
Earnings per unit available to unitholders:
Earnings (loss) per unit - Basic	$	(0.16)	$	0.08
Earnings (loss) per unit - Diluted	$	(0.16)	$	0.08

XML

ORGANIZATION (Details) ft² in Millions	3 Months Ended
	Mar. 31, 2023 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	70
Wholly owned properties | Mall
Real Estate Properties [Line Items]
Number of real estate properties	2
Wholly owned properties | Warehouse Park
Real Estate Properties [Line Items]
Number of real estate properties	2
Wholly owned properties | Outlet Center
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
Real Estate Properties [Line Items]
Parent controlling interest	95.00%
Sunrise Mall Massapequa, NY
Real Estate Properties [Line Items]
Parent controlling interest	82.50%

XML

BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) variableInterestEntity segment	Dec. 31, 2022 USD ($)
Variable Interest Entity [Line Items]
Number of reportable segments | segment	1
Number of variable interest entities | variableInterestEntity	2
Assets	$ 2,923,644	$ 2,977,432
Liabilities	1,931,155	1,947,326
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Assets	47,400	47,600
Liabilities	$ 23,000	$ 23,200

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - loan	1 Months Ended	3 Months Ended
	Dec. 31, 2022	Mar. 31, 2023
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of loans refinanced	2
Real Estate | Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful life		one
Real Estate | Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful life		40

XML

ACQUISITIONS AND DISPOSITIONS - Summary of Acquisition Activity (Details) $ in Thousands	Feb. 24, 2022 USD ($) ft²	Mar. 31, 2023 ft²	Mar. 31, 2022 USD ($)
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%

XML

ACQUISITIONS AND DISPOSITIONS - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) ft² property	Mar. 31, 2022 USD ($) property	Feb. 24, 2022 USD ($) ft²
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²	17,200,000
Number of disposed properties | property	0	0
Gain on sale of real estate	$ 356	$ 0
40 Carmans Road
Business Acquisition [Line Items]
Area of real estate property (in sq ft) | ft²			12,000
Allocated price to buildings and improvements			$ 3,100
Allocated price to land			$ 1,100

XML

IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Identified intangible assets, net of accumulated amortization	$ 60,181		$ 62,856
Identified intangible liabilities, net of accumulated amortization	91,389		$ 93,328
Amortization of acquired below-market leases, net of above-market leases	1,500	$ 2,000
Amortization expense of intangible assets	$ 2,400	$ 2,800

XML

IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Schedule of Estimated Annual Amortization Expense (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Below-Market Operating Lease Amortization
2023	$ 5,809
2024	7,512
2025	7,332
2026	6,955
2027	6,677
2028	6,030
Above-Market
Above-Market Operating Lease Amortization
2023	(756)
2024	920
2025	(725)
2026	(606)
2027	(458)
2028	(441)
In-Place Leases
2023	(756)
2024	920
2025	(725)
2026	(606)
2027	(458)
2028	(441)
In-Place Lease
Above-Market Operating Lease Amortization
2023	(6,860)
2024	7,786
2025	(6,315)
2026	(5,613)
2027	(5,085)
2028	(4,550)
In-Place Leases
2023	(6,860)
2024	7,786
2025	(6,315)
2026	(5,613)
2027	(5,085)
2028	$ (4,550)

XML

MORTGAGES PAYABLE - Summary of Mortgages Payable (Details) - Mortgages - First Mortgage - USD ($)		3 Months Ended	9 Months Ended
	Apr. 06, 2023	Mar. 31, 2023	Sep. 30, 2022	Dec. 31, 2022	Apr. 30, 2020
Debt Instrument [Line Items]
Total mortgages payable		$ 1,694,219,000		$ 1,699,491,000
Unamortized debt issuance costs		(7,322,000)		(7,801,000)
Total mortgages payable, net		1,686,897,000		1,691,690,000
Variable rate
Debt Instrument [Line Items]
Total mortgages payable		$ 158,808,000		159,198,000
Variable rate | The Plaza at Cherry Hill
Debt Instrument [Line Items]
Effective Interest Rate		8.50%
Total mortgages payable		$ 29,000,000		29,000,000
Debt instrument, minimum interest rate		4.25%
Variable rate | The Plaza at Cherry Hill | Prime Rate
Debt Instrument [Line Items]
Interest rate spread on variable rate		50.00%
Variable rate | The Plaza at Woodbridge
Debt Instrument [Line Items]
Total mortgages payable				52,947,000
Interest rate cap		3.00%
Variable rate | The Plaza at Woodbridge | SOFR
Debt Instrument [Line Items]
Interest rate spread on variable rate		226.00%
Variable rate | Hudson Commons
Debt Instrument [Line Items]
Effective Interest Rate		6.53%
Total mortgages payable		$ 27,344,000		27,482,000
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]
Effective Interest Rate		6.53%
Total mortgages payable		$ 25,452,000		25,581,000
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]
Effective Interest Rate		6.53%
Total mortgages payable		$ 24,065,000		24,188,000
Variable rate | Bronx (1750-1780 Gun Hill Road), NY | LIBOR
Debt Instrument [Line Items]
Interest rate spread on variable rate		190.00%	190.00%
Variable rate | Bergen Town Center(5) | Subsequent Event
Debt Instrument [Line Items]
Total mortgages payable	$ 290,000,000
Debt instrument, term	7 years
Variable rate | Montclair, NJ | SOFR
Debt Instrument [Line Items]
Interest rate spread on variable rate		257.00%
Fixed rate
Debt Instrument [Line Items]
Total mortgages payable		$ 1,535,411,000		1,540,293,000
Fixed rate | Bergen Town Center(5)
Debt Instrument [Line Items]
Effective Interest Rate		3.56%
Total mortgages payable		$ 300,000,000		300,000,000
Fixed rate | Bergen Town Center(5) | Subsequent Event | Minimum
Debt Instrument [Line Items]
Effective Interest Rate	6.30%
Fixed rate | Shops at Bruckner(6)
Debt Instrument [Line Items]
Effective Interest Rate		3.90%
Total mortgages payable		$ 8,847,000		9,020,000
Fixed rate | Hudson Mall
Debt Instrument [Line Items]
Effective Interest Rate		5.07%
Total mortgages payable		$ 21,184,000		21,380,000
Fixed rate | Yonkers Gateway Center
Debt Instrument [Line Items]
Effective Interest Rate		4.16%
Total mortgages payable		$ 24,537,000		24,996,000
Fixed rate | Brick Commons
Debt Instrument [Line Items]
Effective Interest Rate		3.87%
Total mortgages payable		$ 48,401,000		48,636,000
Fixed rate | West End Commons
Debt Instrument [Line Items]
Effective Interest Rate		3.99%
Total mortgages payable		$ 24,544,000		24,658,000
Fixed rate | Las Catalinas Mall
Debt Instrument [Line Items]
Effective Interest Rate		4.43%
Total mortgages payable		$ 118,401,000		119,633,000
Total mortgages payable					$ 129,000,000
Fixed rate | Las Catalinas Mall | Minimum
Debt Instrument [Line Items]
Effective Interest Rate		3.00%
Fixed rate | Town Brook Commons
Debt Instrument [Line Items]
Effective Interest Rate		3.78%
Total mortgages payable		$ 30,678,000		30,825,000
Fixed rate | Rockaway River Commons
Debt Instrument [Line Items]
Effective Interest Rate		3.78%
Total mortgages payable		$ 27,161,000		27,291,000
Fixed rate | Hanover Commons
Debt Instrument [Line Items]
Effective Interest Rate		4.03%
Total mortgages payable		$ 62,176,000		62,453,000
Fixed rate | Tonnelle Commons
Debt Instrument [Line Items]
Effective Interest Rate		4.18%
Total mortgages payable		$ 98,438,000		98,870,000
Fixed rate | Manchester Plaza
Debt Instrument [Line Items]
Effective Interest Rate		4.32%
Total mortgages payable		$ 12,500,000		12,500,000
Fixed rate | Millburn Gateway Center
Debt Instrument [Line Items]
Effective Interest Rate		3.97%
Total mortgages payable		$ 22,369,000		22,489,000
Fixed rate | Totowa Commons
Debt Instrument [Line Items]
Effective Interest Rate		4.33%
Total mortgages payable		$ 50,800,000		50,800,000
Fixed rate | Woodbridge Commons
Debt Instrument [Line Items]
Effective Interest Rate		4.36%
Total mortgages payable		$ 22,100,000		22,100,000
Fixed rate | Brunswick Commons
Debt Instrument [Line Items]
Effective Interest Rate		4.38%
Total mortgages payable		$ 63,000,000		63,000,000
Fixed rate | Rutherford Commons
Debt Instrument [Line Items]
Effective Interest Rate		4.49%
Total mortgages payable		$ 23,000,000		23,000,000
Fixed rate | Kingswood Center(7)
Debt Instrument [Line Items]
Effective Interest Rate		5.07%
Total mortgages payable		$ 69,714,000		69,935,000
Fixed rate | Hackensack Commons
Debt Instrument [Line Items]
Effective Interest Rate		4.36%
Total mortgages payable		$ 66,400,000		66,400,000
Fixed rate | Marlton Commons
Debt Instrument [Line Items]
Effective Interest Rate		3.86%
Total mortgages payable		$ 37,234,000		37,400,000
Fixed rate | East Hanover Warehouses
Debt Instrument [Line Items]
Effective Interest Rate		4.09%
Total mortgages payable		$ 40,526,000		40,700,000
Fixed rate | Union (Vauxhall)
Debt Instrument [Line Items]
Effective Interest Rate		4.01%
Total mortgages payable		$ 45,600,000		45,600,000
Fixed rate | The Shops at Riverwood
Debt Instrument [Line Items]
Effective Interest Rate		4.25%
Total mortgages payable		$ 21,466,000		21,466,000
Fixed rate | The Outlets at Montehiedra | Senior Loan
Debt Instrument [Line Items]
Effective Interest Rate		5.00%
Total mortgages payable		$ 77,057,000		$ 77,531,000
Fixed rate | Montclair, NJ
Debt Instrument [Line Items]
Effective Interest Rate		3.15%		3.15%
Total mortgages payable		$ 7,250,000		$ 7,250,000
Fixed rate | Woodmore Towne Centre
Debt Instrument [Line Items]
Effective Interest Rate		3.39%
Total mortgages payable		$ 117,200,000		117,200,000
Fixed rate | Garfield Commons
Debt Instrument [Line Items]
Effective Interest Rate		4.14%
Total mortgages payable		$ 40,130,000		40,300,000
Fixed rate | Mount Kisco Commons
Debt Instrument [Line Items]
Effective Interest Rate		6.40%
Total mortgages payable		$ 11,598,000		11,760,000
Fixed rate | Freeport Commons
Debt Instrument [Line Items]
Effective Interest Rate		4.07%
Total mortgages payable		$ 43,100,000		$ 43,100,000

XML

MORTGAGES PAYABLE - Additional Information (Details)				3 Months Ended
	Apr. 06, 2023 USD ($)	Aug. 09, 2022 USD ($) extension_option	Mar. 07, 2017 USD ($) extension_option	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Apr. 30, 2020 USD ($)	Jan. 15, 2015 USD ($)
Debt Instrument [Line Items]
Net carrying amount of real estate collateralizing indebtedness				$ 1,500,000,000
Debt issuance costs, net				6,336,000	$ 6,749,000
Letter of Credit | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 23,800,000
Property Lease Guarantee
Debt Instrument [Line Items]
Conditional corporate guarantee				$ 12,500,000
Guarantor obligations, amortization period				3 years 6 months
Guarantor obligations, remaining amount of potential guarantee				$ 7,600,000
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				6,300,000	6,700,000
Line of Credit | Revolving Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 776,200,000
Line of Credit | Revolving Credit Facility | Four-Year Revolving Credit Agreement January 2015
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 800,000,000
Increase in credit facility		$ 200,000,000
Number of extension options | extension_option		2
Term of each extension option		6 months
Line of Credit | Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Financial covenants, maximum leverage ratio		0.60
Line of Credit | Revolving Credit Facility | Maximum | Four-Year Revolving Credit Agreement January 2015
Debt Instrument [Line Items]
Facility fee		0.30%
Line of Credit | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Financial covenants, minimum fixed charge coverage ratio		1.5
Line of Credit | Revolving Credit Facility | Minimum | Four-Year Revolving Credit Agreement January 2015
Debt Instrument [Line Items]
Facility fee		0.15%
Line of Credit | Revolving Credit Facility | SOFR | Maximum | Four-Year Revolving Credit Agreement January 2015
Debt Instrument [Line Items]
Interest rate spread on variable rate		1.50%
Line of Credit | Revolving Credit Facility | SOFR | Minimum | Four-Year Revolving Credit Agreement January 2015
Debt Instrument [Line Items]
Interest rate spread on variable rate		1.05%
Mortgages | First Mortgage
Debt Instrument [Line Items]
Total mortgages payable				1,694,219,000	1,699,491,000
Mortgages | First Mortgage | Fixed rate
Debt Instrument [Line Items]
Total mortgages payable				1,535,411,000	1,540,293,000
Mortgages | First Mortgage | Variable rate
Debt Instrument [Line Items]
Total mortgages payable				$ 158,808,000	159,198,000
Mortgages | First Mortgage | Las Catalinas Mall | 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
Total mortgages payable				$ 118,401,000	$ 119,633,000
Mortgages | First Mortgage | Las Catalinas Mall | Fixed rate | Maximum
Debt Instrument [Line Items]
Borrowing rate				4.43%	4.43%
Mortgages | First Mortgage | Las Catalinas Mall | Fixed rate | Minimum
Debt Instrument [Line Items]
Borrowing rate				3.00%
Mortgages | First Mortgage | The Plaza at Cherry Hill | Variable rate
Debt Instrument [Line Items]
Borrowing rate				8.50%
Total mortgages payable				$ 29,000,000	$ 29,000,000
Debt instrument, minimum interest rate				4.25%
Mortgages | First Mortgage | Bergen Town Center(5) | Fixed rate
Debt Instrument [Line Items]
Borrowing rate				3.56%
Total mortgages payable				$ 300,000,000	$ 300,000,000
Mortgages | First Mortgage | Bergen Town Center(5) | Fixed rate | Minimum | Subsequent Event
Debt Instrument [Line Items]
Borrowing rate	6.30%
Mortgages | First Mortgage | Bergen Town Center(5) | Variable rate | Subsequent Event
Debt Instrument [Line Items]
Debt instrument, face amount	$ 290,000,000
Debt instrument, term	7 years

XML

MORTGAGES PAYABLE - Schedule of Maturities (Details) - USD ($) $ in Thousands		3 Months Ended
	Apr. 06, 2023	Mar. 31, 2023	Mar. 31, 2022
Debt Instrument [Line Items]
Remainder of 2018		$ 346,225
2024		166,380
2025		72,683
2026		229,553
2027		316,771
2028		272,934
Thereafter		289,673
Repayments of Long-term Debt		$ 5,028	$ 4,421
First Mortgage | Bergen Town Center(5) | Fixed rate | Mortgages | Subsequent Event
Debt Instrument [Line Items]
Repayments of Long-term Debt	$ 300,000
First Mortgage | Bergen Town Center(5) | Variable rate | Mortgages | Subsequent Event
Debt Instrument [Line Items]
Debt instrument, term	7 years

XML

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Contingency [Line Items]
Income tax expense	$ (706)	$ (905)
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	$ (700)	$ (900)
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%

XML

LEASES - Components of Rental Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Fixed lease revenue	$ 73,499	$ 70,341
Variable lease revenue	25,855	29,075
Total rental revenue	99,354	99,416
Percentage rent	$ 800	$ 1,200

XML

FAIR VALUE MEASUREMENTS - Interest Rate Cap Schedule (Details) - Fair Value, Recurring - Interest Rate Cap - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 1,606	$ 1,976
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	1,606	1,976
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 0	$ 0

XML

FAIR VALUE MEASUREMENTS - Schedule of Derivative Instrument (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate	7.25%	6.89%
First Mortgage | Mortgages
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total mortgages payable	$ 1,694,219	$ 1,699,491
First Mortgage | Variable rate | Mortgages
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total mortgages payable	158,808	159,198
First Mortgage | The Plaza at Woodbridge | Variable rate | Mortgages
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total mortgages payable		52,947
Interest Rate Cap | First Mortgage | The Plaza at Woodbridge | Variable rate | Mortgages
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	332	509
Notional Amount	$ 52,947	$ 52,947
Spread		2.26%
Interest Rate	6.82%	6.27%
Effective Interest Rate	5.26%	5.26%
Total mortgages payable	$ 52,947
Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	1,274	$ 1,467
Interest Rate Swap | First Mortgage | Montclair, NJ | Variable rate | Mortgages
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount	$ 7,250	$ 7,250
Spread		2.57%

XML

FAIR VALUE MEASUREMENTS - Narrative (Details) ft² in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) ft²	Mar. 31, 2022 USD ($)
Fair Value Disclosures [Abstract]
Real estate impairment loss | $	$ 34,055,000	$ 0
Area of Real Estate Property	17,200
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Area of Real Estate Property	17,200
Real estate impairment loss | $	$ 34,055,000	$ 0
Measurement Input, Discount Rate
Fair Value Disclosures [Abstract]
Measurement Input	0.08
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement Input	0.08
Disposal Group, Held-for-sale, Not Discontinued Operations | Real Estate | Level 3 | Fair Value, Nonrecurring | Brooklyn (Kingswood Center) [Member]
Fair Value Disclosures [Abstract]
Financial assets measured at fair value | $	$ 49,000,000
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value | $	$ 49,000,000
Retail | Measurement Input, Cap Rate
Fair Value Disclosures [Abstract]
Measurement Input	0.06
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement Input	0.06
Office | Measurement Input, Cap Rate
Fair Value Disclosures [Abstract]
Measurement Input	0.07
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement Input	0.07
Tenant A | Office Oriented Mixed-Use Center
Fair Value Disclosures [Abstract]
Area of Real Estate Property	50
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Area of Real Estate Property	50
Tenant B | Office Oriented Mixed-Use Center
Fair Value Disclosures [Abstract]
Area of Real Estate Property	17
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Area of Real Estate Property	17

XML

FAIR VALUE MEASUREMENTS - Balance Sheet Grouping (Details) - Mortgages - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable	$ 1,694,219	$ 1,699,491
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable	1,583,184	1,542,869
Unamortized debt issuance costs	$ (7,300)	$ (7,800)

XML

FAIR VALUE MEASUREMENTS - Unrealized Gain Recognized In OCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Gain (Loss) Recognized in OCI on Derivatives	$ (300)	$ 0
The Plaza at Woodbridge | Interest Rate Cap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Gain (Loss) Recognized in OCI on Derivatives	(108)	0
Montclair, NJ | Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Gain (Loss) Recognized in OCI on Derivatives	$ (192)	$ 0

XML

COMMITMENTS AND CONTINGENCIES (Details) ft² in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) ft² lease project	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Operating Leased Assets [Line Items]
Number of projects | project	24
Real estate redevelopment in process	$ 217,700,000
Estimated cost to complete development and redevelopment projects	150,000,000
Insurance coverage, pollution insurance, limit per occurence	50,000,000
Deferred lease expense	$ 1,600,000		$ 1,600,000
Area of Real Estate Property | ft²	17,200
Rental revenue	$ 99,354,000	$ 99,416,000
Bed Bath & Beyond
Operating Leased Assets [Line Items]
Rental revenue	$ 3,100,000
Harmon Face Values
Operating Leased Assets [Line Items]
Number of leases | lease	3
Rental revenue	$ 500,000
Wholly-Owned Store Concepts | Harmon Face Values
Operating Leased Assets [Line Items]
Area of Real Estate Property | ft²	18

XML

PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other assets	$ 18,823	$ 18,386
Deferred Tax Assets, Net	33,933	34,616
Deposit Assets	2,724	2,724
Accumulated amortization, deferred financing costs	7,682	7,269
Prepaid expenses:
Real estate taxes	7,584	12,080
Insurance	9,189	1,391
Licenses/fees	1,324	1,261
Total prepaid expenses and other assets	79,913	77,207
Debt issuance costs, net	$ 6,336	$ 6,749

XML

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other Liabilities Disclosure [Abstract]
Deferred tenant revenue	$ 28,104	$ 28,468
Accrued interest payable	10,812	10,789
Accrued capital expenditures and leasing costs	33,753	35,732
Security deposits	8,174	8,048
Finance lease liability	3,019	3,016
Accrued payroll expenses	2,998	9,527
Other liabilities and accrued expenses	7,906	6,939
Total accounts payable, accrued expenses and other liabilities	$ 94,766	$ 102,519

XML

INTEREST AND DEBT EXPENSE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other Income and Expenses [Abstract]
Interest expense	$ 14,337	$ 13,259
Amortization of deferred financing costs	956	745
Total interest and debt expense	$ 15,293	$ 14,004

XML

EQUITY AND NONCONTROLLING INTEREST (Details) - USD ($)	2 Months Ended	3 Months Ended
	Apr. 30, 2020	Mar. 31, 2023	Mar. 31, 2022	Aug. 15, 2022
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)	5,900,000	0	0
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	$ 0.16
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%

XML

SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - General and Administrative Expense - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	$ 2,007	$ 2,597
Time-based LTIP Shares
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	987	1,232
Performance-based LTIP expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	728	1,045
Stock option expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	20	235
Restricted share expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	239	60
Deferred share unit (“DSU”) expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total Share-based compensation expense	$ 33	$ 25

XML

SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended
	Feb. 11, 2023	Mar. 31, 2023
LTIP Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number or equity awards granted (in shares)		257,561
Number of awards vested (in shares)		176,268
Award vesting period		2 years
LTIP Units | Long-Term Incentive Plan 2023
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 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value of equity awards	$ 7.4
Performance-based LTIP Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Historical volatility rate		53.30%
Risk free interest rate		4.20%
Performance-based LTIP Shares | Long-Term Incentive Plan 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number or equity awards granted (in shares)		309,611
Award vesting period		3 years
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture		$ 3.7
Time-based LTIP Shares | Long-Term Incentive Plan 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number or equity awards granted (in shares)		257,561
Grant date fair value of equity awards		$ 3.7
Award vesting period		3 years
Time-based LTIP Shares | Long-Term Incentive Plan 2023 | 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)		32,134
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number or equity awards granted (in shares)		72,227
Number of awards vested (in shares)		29,939

XML

EARNINGS PER SHARE AND UNIT (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net income (loss) attributable to common shareholders/unitholders	$ (19,118)	$ 9,486
Less: (Earnings) loss allocated to unvested participating securities	13	(5)
Net income (loss) available for common shareholders - basic	(19,105)	9,481
OP and LTIP Units	0	0
Net income (loss) available for common shareholders - dilutive	$ (19,105)	$ 9,481
Denominator:
Weighted average common shares outstanding - basic (in shares)	117,450	117,330
Effect of dilutive securities:
Assumed conversion of OP and LTIP units (in shares)	0	0
Weighted average common shares outstanding - diluted (in shares)	117,450	117,393
Earnings per share available to common shareholders:
Earnings per common share - Basic (in dollars per share)	$ (0.16)	$ 0.08
Earnings per common share - Diluted (in dollars per share)	$ (0.16)	$ 0.08
Urban Edge Properties LP
Numerator:
Net income (loss) attributable to common shareholders/unitholders	$ (19,906)	$ 9,873
Less: (Earnings) loss allocated to unvested participating securities	13	(5)
Net income (loss) available for common shareholders - basic	$ (19,893)	$ 9,868
Denominator:
Weighted average common shares outstanding - basic (in shares)	121,752	121,188
Effect of dilutive securities:
Stock options using treasure stock method and restricted stock awards (in shares)	0	63
Assumed conversion of OP and LTIP units (in shares)	0	936
Weighted average common shares outstanding - diluted (in shares)	121,752	122,187
Earnings per share available to common shareholders:
Earnings per common share - Basic (in dollars per share)	$ (0.16)	$ 0.08
Earnings per common share - Diluted (in dollars per share)	$ (0.16)	$ 0.08
Restricted share expense
Effect of dilutive securities:
Stock options using treasure stock method and restricted stock awards (in shares)	0	63