Urban Edge Properties (NYSE:UE) Q1 2022 Earnings Conference Call May 5, 2022 8:30 AM ET

Company Participants

Jennifer Holmes - Investor Relations

Jeff Olson - Chairman and Chief Executive Officer

Mark Langer - Chief Financial Officer

Chris Weilminster - Chief Operating Officer

Danielle De Vita - Executive Vice President, Development

Herb Eilberg - Chief Investment Officer

Rob Milton - General Counsel

Conference Call Participants

Rich Hill - Morgan Stanley

Samir Khanal - Evercore ISI

Paulina Rojas - Green Street

Floris Van Dijkum - Compass Point

Chris Lucas - Capital One Securities

Operator

Greetings and welcome to the Urban Edge Properties First Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jennifer Holmes. Please go ahead.

Jennifer Holmes

Good morning and welcome to Urban Edge Properties’ first quarter earnings conference call. Joining me today are Jeff Olson, Chairman and Chief Executive Officer; Mark Langer, Chief Financial Officer; Chris Weilminster, Chief Operating Officer; Danielle De Vita, EVP of Development; Herb Eilberg, Chief Investment Officer; and Rob Milton, General Counsel.

Please note, today’s discussion may contain forward-looking statements about the company’s views of future events and financial performance, which are subject to numerous assumptions, risks and uncertainties, in which the company does not undertake to update. Our actual future results, financial condition and business may differ materially. Please refer to our filings with the SEC, which are also available on our website, for more information about the company. In our discussion today, we will refer to certain non-GAAP financial measures. Reconciliations of these measures to GAAP results are available in our earnings release and supplemental disclosure package in the Investors section of our website.

At this time, it is my pleasure to introduce our Chairman and Chief Executive Officer, Jeff Olson.

Jeff Olson

Great. Thank you, Jen and good morning everyone. We are pleased to report a strong start to the year, with FFO as adjusted of $0.28 per share for the first quarter, up 8% compared to prior year driven by a 5.5% increase in same-property NOI and external growth through approximately $250 million of acquisitions completed over the past year.

We ended the quarter with same-property leased occupancy of 93.9%, up 280 basis points year-over-year. Including three anchor leases we executed since the end of the first quarter, our occupancy is now 94.5%, up 40 basis points compared to December 31, 2021. The gap between our leased versus physical occupancy in our same-property pool is now 380 basis points. Opening these tenants continues to be a top priority and will be a significant contributor to NOI. In total, we have $22 million of future gross revenue coming from executed leases not yet rent commenced, representing approximately 10% of our current NOI, which may be the highest percentage among our peers.