Urban Edge Properties (UE) 2024 Q4 法說會逐字稿

Greetings. Welcome to Urban Edge Properties. Fourth quarter 2024 earnings call. (operator instructions) It is now my pleasure to introduce Areeba Ahmed from Investor Relations.

問候。歡迎來到 Urban Edge Properties。2024 年第四季財報電話會議。（操作員指示）現在我很高興介紹投資者關係部門的 Areeba Ahmed。

Thank you. You may begin.

謝謝。你可以開始了。

Good morning and welcome to Urban Edge Property 2024 year-end earnings conference call. Joining me today are Jeff Olson, Chairman and Chief Executive Officer, Jeff Mooallem, Chief Operating Officer, Mark Langer, Chief Financial Officer, Rob Milton, general counsel, Scott Auster, EVP and head of leasing, and Andrea Drazin, Chief Accounting Officer. Please note today's. 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, and which the company does not undertake to update. Our actual results, financial condition, and business may differ. 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-gap financial measures, including reference to our 2025 FFO as Adjusted targets. Reconciliations of these measures to GAAP results are available in our earnings release supplemental disclosure package and our April 2023 investor presentation in the investor section of our website. At this time, it is my pleasure to introduce our Chairman and Chief Executive Officer Jeff Olsen.

早上好，歡迎參加 Urban Edge Property 2024 年終收益電話會議。今天與我一起出席的還有董事長兼執行長 Jeff Olson、營運長 Jeff Mooallem、財務長 Mark Langer、總法律顧問 Rob Milton、執行副總裁兼租賃主管 Scott Auster 以及首席會計長 Andrea Drazin。請注意今天的。可能包含關於公司對未來事件和財務表現的看法的前瞻性陳述，這些陳述受多種假設、風險和不確定性的影響，且公司不承諾更新這些陳述。我們的實際結果、財務狀況和業務可能有所不同。有關該公司的更多信息，請參閱我們向美國證券交易委員會提交的文件，該文件也可在我們的網站上找到。在今天的討論中，我們將提到某些非缺口財務指標，包括 2025 年 FFO 作為調整後的目標。這些指標與 GAAP 結果的對帳可在我們的收益報告補充揭露包和我們網站投資者部分中的 2023 年 4 月投資者介紹中找到。現在，我很高興介紹我們的董事長兼執行長傑夫奧爾森。

Okay, thank you, Areeba, and good morning, everyone. 2024 was a year marked by significant accomplishments for Urban Edge. We continued to outperform expectations and delivered outstanding results, notably increasing FFO as Adjusted by 8% for the year to $1.35 per share, allowing us to achieve our three-year earnings target one year ahead of plan.

好的，謝謝你，Areeba，大家早安。 2024 年對 Urban Edge 來說是取得重大成就的一年。我們繼續超越預期並取得了出色的業績，尤其是調整後的 FFO 年度增長 8% 至每股 1.35 美元，使我們比計劃提前一年實現了三年盈利目標。

The strong performance has been fueled by our creative capital recycling, record leasing volumes, and new rent commencements. In 2024 we executed a record 79 new leases totaling 485,000 square feet with a same space cash rent spread of 26% and achieved a new record for shop occupancy at 91%. Same property portfolio occupancy grew to 96.6%. Our signed but not open pipeline is expected to generate $25 million of future annual gross rent, representing 9% of NOI.

強勁的業績得益於我們富有創意的資本回收、創紀錄的租賃量以及新的租金開始。2024 年，我們創紀錄地簽訂了 79 份新租約，總面積達 485,000 平方英尺，同一空間的現金租金差價為 26%，店鋪入住率創下了 91% 的新紀錄。同一物業組合的入住率成長至 96.6%。我們已簽署但尚未開放的管道預計將產生未來每年 2500 萬美元的總租金，佔 NOI 的 9%。

Our centers are benefiting from improved co-tenancy as we add retailers like Trader Joe's, BJ's Wholesale Club, TJX, Burlington, and Ross, which stimulate higher quality shop tenants and QSRs like First Watch, Chipotle, Dave's Hot Chicken, Starbucks, and Tatte Bakery and Cafe.

隨著我們增加 Trader Joe's、BJ's Wholesale Club、TJX、Burlington 和 Ross 等零售商，我們的中心受益於改善的共同租賃，這刺激了更高品質的商店租戶和 QSR，例如 First Watch、Chipotle、Dave's Hot Chicken、星巴克以及 Tatte Bakery and Cafe。

The structural shifts in tenancy have lasting benefits in the form of higher rent growth, improved occupancy, and notable value creation as cap rate compression occurs with new dominant anchors and the addition of high-quality shop tenants. We expect the same pattern to occur if we recapture some of the at-risk names in the headlines today.

隨著新的主導商場和優質商舖租戶的加入，資本化率出現壓縮，租賃結構性變化帶來了持久的利益，包括租金增長更快、入住率提高、價值創造顯著。如果我們重新看到今天頭條新聞中的一些高風險名稱，我們預計會出現同樣的模式。

Our development and construction team had a very productive year. We completed $30 million of redevelopment projects expected to generate a 16% unlevered return, and we ended the year with $163 million of anchor repositioning and redevelopment projects expected to generate a 15% unlevered return. 2025 marks the 10-year anniversary of the formation of Urban Edge.

我們的開發建設團隊度過了非常有成效的一年。我們完成了 3000 萬美元的重建項目，預計產生 16% 的無槓桿回報，年底我們完成了 1.63 億美元的錨定重新定位和重建項目，預計產生 15% 的無槓桿回報。 2025年是Urban Edge成立10週年。

It has been rewarding to see us carry out our mission to improve shopping centers located in and on the edge of urban communities. Over the past decade we have built an exceptional team that has significantly improved our portfolio, adding top retailers who drive traffic and rents while replacing underperforming tenants.

看到我們完成改善城市社區內和邊緣購物中心的使命，我感到非常欣慰。在過去的十年中，我們建立了一支卓越的團隊，顯著改善了我們的投資組合，增加了頂級零售商，他們在取代表現不佳的租戶的同時推動了客流量和租金的上漲。

Our portfolio is now 80% grocery anchored with grocers generating average sales of $900 per square foot, which we believe is the highest in the sector. Since our spin, we have increased portfolio ABR by almost 30%, achieved record leasing volumes in the past three years, simplified our portfolio through capital recycling, and expanded our concentration in the Boston and Washington DC metro markets.

現在，我們的投資組合中有 80% 是雜貨店，雜貨店的平均銷售額為每平方英尺 900 美元，我們認為這是該行業最高的。自分拆以來，我們已將投資組合的 ABR 提高了近 30%，在過去三年中實現了創紀錄的租賃量，透過資本循環簡化了我們的投資組合，並擴大了我們在波士頓和華盛頓特區大都會市場的集中度。

These accomplishments have significantly improved the strength and stability of our cash flows, and we are optimistic about our growth plans in the next 10 years to continue to add value through disciplined capital allocation and operational excellence.

這些成就顯著提高了我們現金流的實力和穩定性，我們對未來 10 年的成長計畫充滿信心，將繼續透過嚴格的資本配置和卓越的營運來增加價值。

Now turning to our 2025 outlook, our goals for the year include achieving FFO as Adjusted growth of 4% or better while generating same property NOI growth of at least 3.5%. We expect to generate $8 million of gross rents during 2025 from our $25 million signed but not open pipeline and increase our leased occupancy back to our historical high levels of 97% to 98%. As a result of our higher earnings and taxable income, we are increasing our dividend by 12%.

現在回顧我們的 2025 年展望，我們今年的目標包括實現 FFO 調整後成長率達到 4% 或更高，同時實現相同物業 NOI 成長率至少達到 3.5%。我們預計，2025 年，我們將從已簽署但尚未開放的價值 2500 萬美元的項目中獲得 800 萬美元的總租金，並將租賃入住率提高到 97% 至 98% 的歷史高點。由於我們的獲利和應稅收入增加，我們將股利提高 12%。

While we do not include any acquisitions or dispositions in our guidance, we are on the hunt for opportunities, and we are hopeful that we will find deals that make sense for our company. Our track record is strong. Over the last 16 months, we have acquired over $550 million in assets at a 7% cap rate funded in part through $427 million of dispositions at a 5% cap rate. We are proud of our performance over the past decade, and we look forward to continuing our success in 2025.

雖然我們的指引中沒有包括任何收購或處置，但我們正在尋找機會，並希望能夠找到對我們公司有意義的交易。我們的業績記錄非常好。在過去的 16 個月中，我們以 7% 的資本化率收購了超過 5.5 億美元的資產，部分資金來自以 5% 的資本化率處置 4.27 億美元的資產。我們為過去十年的表現感到自豪，並期待在 2025 年繼續取得成功。

I will now turn it over to our Chief Operating Officer Jeff.

現在我將把它交給我們的營運長傑夫。

Thanks Jeff, and good morning everyone. Fourth quarter like all of 2024 was a strong one for Urban edge.

謝謝傑夫，大家早安。與整個 2024 年一樣，第四季對 Urban Edge 來說也是一個強勁的季度。

We executed on our business plan by improving deal economics, increasing occupancy, recycling capital into better assets, and delivering projects at accretive returns. Let's get into the details of the quarter and the year, and then we can talk more broadly about what we see for 2025 and our path to continued growth. We signed 29 deals in the fourth quarter for over 400,000 square feet, 16 new leases at a same space spread of 44% and 13 renewals at a 12%.

我們透過改善交易經濟性、增加入住率、將資本回收為更好的資產以及以增值回報交付專案來執行我們的業務計劃。讓我們了解本季度和本年度的詳細信息，然後我們可以更廣泛地談論我們對 2025 年的展望以及我們持續增長的道路。我們在第四季度簽署了 29 份協議，面積超過 40 萬平方英尺，其中新租約 16 份，佔 44%，續約 13 份，佔 12%。

That brought our total for the year up to 79 new leases totaling just under 50 million square feet and 86 renewals for almost 2 million square feet. The overall leasing volume for 2024 was on the high end of our budget, and the spreads of 26% and 9% on new leases and renewals respectively were strong. Those rent spreads, along with other critical deal points like providing less tenant allowance capital and generating higher average annual rent increases than in years past. Demonstrate our ability to identify and capitalize on the below market rents embedded throughout our portfolio when those leases come back to us.

這樣，我們全年的租賃總數就達到 79 份新租約，總面積接近 5000 萬平方英尺，並有 86 份續約，總面積接近 200 萬平方英尺。2024 年的整體租賃量處於我們預算的高位，新租約和續約的利差分別為 26% 和 9%，表現強勁。這些租金差價，以及其他關鍵的交易點，例如提供較少的租戶津貼資本和產生比過去幾年更高的平均年租金漲幅。展示我們在租賃返還給我們時識別和利用整個投資組合中低於市場水平的租金的能力。

As Jeff mentioned in the 4th quarter, those results included new deals with a national grocer, soft goods retailers, QSRs, and fitness users, as well as our first pickleball concept lease. Our portfolio same property leased rate now stands at 96.6%, a 30 basis point increase over the third quarter and an 80 basis point increase over a year in 2023.

正如傑夫在第四季度提到的，這些結果包括與全國雜貨店、軟品零售商、QSR 和健身用戶達成的新交易，以及我們的第一個匹克球概念租賃。我們投資組合中的同類物業租賃率目前為 96.6%，較第三季增加 30 個基點，較 2023 年增加 80 個基點。

We ended 2024 with anchor leased occupancy of 98% and small shop occupancy of 90.9%. After gaining 320 basis points in shop occupancy in 2024, we have a clear path in 2025 to an additional 200 to 250 basis points, bring shop occupancy between 93% and 94% for the year, and overall occupancy between 97% and 98% by year end.

截至 2024 年，我們的主力租賃入住率為 98%，小店入住率為 90.9%。在 2024 年店舖入住率上升 320 個基點之後，我們預計在 2025 年再上升 200 至 250 個基點，使全年店舖入住率達到 93% 至 94% 之間，到年底整體入住率達到 97% 至 98% 之間。

The demand continues to well outpace supply in our markets, and foot traffic continues to increase, up 3% over last year at our grocery anchored centers. In the Northeast, retail occupancy is at a 10 year high of 95%, and new shopping center construction is at a near record low, only 0.2% of total supply. Tenant bankruptcies are a reality of our business and will remain so, but increasingly they are more opportunity than risk. In the locations where we have Party City and Big Lots, for example, we have replacement tenants identified as spreads up to 90%.

在我們的市場中，需求持續遠超過供應，客流量持續增加，在我們的雜貨店中心，客流量比去年增加了 3%。在東北地區，零售入住率達到了 10 年來的最高水平 95%，而新購物中心建設則接近歷史最低水平，僅佔總供應量的 0.2%。租戶破產是我們業務中的現實情況，並將繼續如此，但是它們帶來的機會越來越多地大於風險。例如，在我們擁有 Party City 和 Big Lots 的地方，我們確定的替代租戶比例高達 90%。

If we're able to get all those spaces back, some replacement tenants will generate strong incremental returns, while some, because of the capital and time will be a modest return. But all of them will enhance portfolio quality and adjacent leasing as we cycle out older concepts and bring in better operators. We balance all these factors economic return, quality of operator, tenant mix, cross shopping appeal when we look at how a tenant bankruptcy will impact our properties. More often than not, getting space back early is a net positive.

如果我們能夠收回所有這些空間，一些替代租戶將產生強勁的增量回報，而一些替代租戶由於資本和時間的原因將獲得適度的回報。但隨著我們淘汰舊概念並引入更好的營運商，所有這些都將提高投資組合品質和鄰近租賃。當我們考慮租戶破產將如何影響我們的物業時，我們會權衡所有這些因素，包括經濟回報、營運商品質、租戶組合、交叉購物吸引力。通常情況下，儘早奪回空間會帶來正面的結果。

On the development side, we ended 2024 with a strong in place pipeline of $163 million at a 15% return, nearly all of it tied to executed leases. Our development plans at Sunrise Mall in Massapequa, New York gained some traction this quarter as well, with the announcement from Macy's that they would be closing their store there, leaving only one tenant remaining at the mall.

在開發方面，截至 2024 年，我們擁有 1.63 億美元的強勁現有投資管道，回報率為 15%，幾乎全部與已執行的租約有關。本季度，我們在紐約州馬薩佩誇日出購物中心的開發計畫也取得了一些進展，梅西百貨宣布將關閉那裡的商店，只留下一個租戶留在購物中心。

Finally, while we did not acquire or dispose of any assets in the fourth quarter other than the previously announced village at Waugh Chapel deal in October, we remain very active on both fronts. Cap rates for acquisitions have compressed, with higher quality assets now trading below 6%, driven in part by institutional investors aggressively entering the retail space and solving for IRRS that are lower than retail historically commanded.

最後，雖然除了 10 月宣布的 Waugh Chapel 村交易外，我們在第四季度沒有收購或處置任何資產，但我們在兩個方面仍然非常活躍。收購的資本化率已壓縮，目前優質資產的交易價格低於 6%，部分原因是機構投資者大舉進入零售領域，並解決低於零售歷史要求的 IRRS 問題。

On the disposition side, we are under contract to sell a freestanding building and parking field at Bergen Town Center in Paramus to a multi-family developer for a price of $25 million representing an approximate 4% cap rate on the current in-place NOI.

在處置方面，我們已簽訂合同，將位於帕拉姆斯卑爾根市中心的一棟獨立建築和停車場以 2500 萬美元的價格出售給一家多戶型開發商，相當於當前現有淨運營收入的約 4% 資本化率。

I will now turn it over to our Chief Financial Officer Mark Langer.

現在我將把它交給我們的財務長馬克·蘭格。

Thanks Jeff. Good morning. As you just heard, we had another excellent quarter marking a strong end to the year. We reported FFO as Adjusted at $0.34 per share for the fourth quarter and $1.35 per share for the full year, representing 8% growth likely among the highest rate in our peer group. As expected, our same property NOI growth, including redevelopment, was very strong, up 7.4% compared to the fourth quarter of 2023, due to rent commencements from several new tenants within our SNO pipeline.

謝謝傑夫。早安.正如您剛才聽到的，我們又度過了一個出色的季度，為今年畫上了圓滿的句號。我們報告稱，第四季度的調整後 FFO 為每股 0.34 美元，全年的調整後 FFO 為每股 1.35 美元，成長率為 8%，可能是同業中最高。正如預期的那樣，由於我們 SNO 管道內的幾位新租戶開始出租，我們的相同物業 NOI 增長（包括重建）非常強勁，與 2023 年第四季度相比增長了 7.4%。

The increase in FFO and NOI this year was also due to accretive capital recycling, contractual rent bumps, and a 180-basis point increase in same property physical occupancy during the year. Our balance sheet remains strong, with over $800 million of total liquidity, including $91 million of cash.

今年 FFO 和 NOI 的成長也歸因於資本循環利用的增加、合約租金上漲以及年內同一物業實際入住率增加 180 個基點。我們的資產負債表依然強勁，總流動資金超過 8 億美元，其中包括 9,100 萬美元的現金。

Our debt maturity profile is in great shape, as only 9% of outstanding debt matures through 2026, with only $24 million maturing in December of this year and $116 million maturing in December of 2026. As a result, our earnings have a lot less volatility attributable to interest rates. Additionally, we have made great progress reducing our leverage. Our net debt to annualized adjusted EBITDA is 6 times below the 6.5 times target we outlined at our April 2023 investor day.

我們的債務到期狀況良好，因為只有 9% 的未償債務將在 2026 年到期，今年 12 月到期的只有 2,400 萬美元，2026 年 12 月到期的只有 1.16 億美元。因此，我們的收益因利率而產生的波動性而大大降低。此外，我們在降低槓桿率方面也取得了巨大進展。我們的淨債務與年度調整後 EBITDA 比率比我們在 2023 年 4 月投資者日概述的 6.5 倍目標低 6 倍。

Turning to our outlook for 2025, our initial 2025 FFO as adjusted per share guidance is $1.37 to $1.42. Key assumptions include our expectation that NOI, including properties and redevelopment, will increase 3.5% at the midpoint of our range. In terms of the NOI guidance, we assume total credit losses of 75 to 100 basis points of gross rents, which incorporates expected rent loss from tenants who have already filed for bankruptcy, including Party City, Big Lots, and Blink Fitness.

展望 2025 年，我們最初的 2025 年調整後每股 FFO 指引為 1.37 美元至 1.42 美元。關鍵假設包括我們預計包括房地產和再開發在內的淨營運收入將按我們範圍的中點增長 3.5%。就淨營運收入 (NOI) 指引而言，我們假設總信用損失為總租金的 75 至 100 個基點，其中包括已經申請破產的租戶的預期租金損失，包括 Party City、Big Lots 和 Blink Fitness。

Our NOI growth assumes $8 million of gross rent is recognized in 2025 from our SNO pipeline. I will point out that almost 75% of this revenue is expected to come online in the second half of the year. Year-to-year NOI growth is also impacted by the outsized collections of more than $1 million we obtained in the first quarter of last year that will not be a recurring item this year. Considering these factors, NOI and FFO growth is expected to gradually build during the year as new rents commence.

我們的 NOI 成長假設 2025 年從我們的 SNO 管道中確認 800 萬美元的總租金。我要指出的是，預計其中近 75% 的收入將在今年下半年實現。年比淨營業收入成長也受到我們去年第一季獲得的超過 100 萬美元的巨額收益的影響，這筆收益今年不會成為經常性項目。考慮到這些因素，隨著新租金的開始，預計 NOI 和 FFO 成長將在年內逐步實現。

In terms of capital spending, page 29 of our supplement identifies our active redevelopment and re-anchoring projects which stabilize over the next two years. We have $90 million remaining to fund on these projects, and we expect to spend about $75 million dollars during 2025. In terms of maintenance capital, we incurred about $27 million in 2024.

在資本支出方面，我們的補充文件第 29 頁列出了我們在未來兩年內穩定的積極重建和重新錨定項目。我們還有 9,000 萬美元可用於資助這些項目，預計 2025 年將花費約 7,500 萬美元。在維護資本方面，我們在 2024 年花費了約 2,700 萬美元。

As I have messaged on prior calls, we expect this level to decline as our anchor repositioning projects come online, and we have budgeted $15 million to $20 million to spend for 2025 related to that capital. We continue to carefully manage our internal operating costs. We assume recurring GNA will be $36 million in 2025, flat compared to the prior year and down 4% compared to 2022.

正如我在之前的電話中所說的那樣，我們預計隨著我們的主力重新定位項目上線，這一水平將會下降，並且我們已預算 2025 年與該資本相關的支出為 1500 萬至 2000 萬美元。我們繼續謹慎管理我們的內部營運成本。我們預計 2025 年經常性 GNA 將達到 3,600 萬美元，與前一年持平，與 2022 年相比下降 4%。

We are pleased with the progress we have made streamlining processes and seeking efficiencies and we'll continue to evaluate ways to lower costs. In terms of factors influencing our guidance range, the biggest variables are likely to be actual bad debt and tenant fallout levels, shop leasing activity, and delivering the SNO pipeline to achieve our targeted rent commencement dates. We have not included any lease termination fees or any material non-cash adjustments related to straight line rents and guidance.

我們對簡化流程和提高效率所取得的進展感到滿意，我們將繼續評估降低成本的方法。就影響我們指導範圍的因素而言，最大的變數可能是實際壞帳和租戶損失水準、商店租賃活動以及提供 SNO 管道以實現我們的目標租金開始日期。我們沒有包括任何租賃終止費用或與直線租金和指導相關的任何重大非現金調整。

As announced in our press release, our board recently approved a 12% increase in our dividend to an annualized rate of $0.76 a share. We have previously stated that we expect the dividend to grow as earnings and taxable income grow while we focus on preserving free cash flow to fund our active redevelopment pipeline that is generating healthy returns. This new dividend reflects the projected growth in our taxable income in 2025.

正如我們在新聞稿中宣布的那樣，我們的董事會最近批准將股息提高 12%，至每股 0.76 美元的年度股息。我們之前曾表示，我們預計股息將隨著收益和應稅收入的增長而增長，同時我們專注於保留自由現金流以資助我們積極的重建管道，從而產生健康的回報。這筆新股息反映了我們 2025 年應稅收入的預期成長。

To conclude, we are pleased with the outstanding results we achieved during 2024 and have turned our focus to our leasing pipeline and assessing ways we can achieve our goal to generate earnings and cash flow growth that is distinguished among our peer group. I will now turn the call over to the operator for questions.

總而言之，我們對 2024 年取得的出色業績感到滿意，並將重點轉向我們的租賃管道，並評估實現目標的方法，以創造在同行中脫穎而出的收益和現金流增長。我現在將把電話轉給接線員來回答問題。

Thank you. (operator instructions)

謝謝。（操作員指令）

Our first question is from Ronald Camden with Morgan Stanley. Please proceed.

我們的第一個問題來自摩根士丹利的羅納德·卡姆登。請繼續。

Hey, congrats on a great year. Just starting with, I think a little bit on the same story why. I think you talked about the 75 to 100 basis points, sort of bad debt that sort of baked into that. Just wondering how much visibility you have into that. Have you already sort of seen some of the bad debt come through and how that assumption came about? Thanks.

嘿，恭喜你度過了美好的一年。剛開始的時候，我對同一個故事有一點想法。我想您談到了 75 到 100 個基點，這是一種包含於其中的壞帳。只是想知道您對此有多少了解。您是否已經看到一些壞帳的出現以及這種假設是如何產生的？謝謝。

Sure this is Mark.

當然，這是馬克。

We're certainly watching it live as some of those names are bankruptcies where auctions are happening, so we considered all of that data and if I break down the components for you to answer your question, about 70 basis points of provision relates to bankrupt tenants. 40 basis points of the provision is kind of the general reserve, and then partially offsetting that is we assume $150,000 to $200,000 each quarter for some collections on some old receivables, so that nets out and gets you right to our guidance range.

我們當然在現場關注，因為其中一些是正在進行拍賣的破產企業，因此我們考慮了所有這些數據，如果我將這些組成部分分解開來回答您的問題，大約 70 個基點的撥備與破產租戶有關。 40 個基點的準備金是一種一般儲備金，然後部分抵消這一點，我們假設每季一些舊應收帳款的回收金額為 15 萬至 20 萬美元，這樣淨額就正好達到我們的指導範圍。

Great helpful color and then my second one is just to love a little bit more commentary on the acquisition pipeline you guys have had sort of a great 12 months to 18 months, I think you talked about the cap rates are getting pretty competitive but just wondering what you guys are looking at and what could be done this year. Thanks.

非常有幫助的顏色，然後我的第二個只是想對收購渠道多一點評論，你們在過去 12 個月到 18 個月裡度過了非常棒的一段時間，我想你談到了資本化率變得相當有競爭力，但只是想知道你們在關注什麼以及今年可以做些什麼。謝謝。

Hi, Ron, it's Jeff. So yeah, I mean we are seeing more product than we saw last year, and we do expect that there will be more trades that will occur through across the country. But it is challenging to make the deals pencil just given the expected cap rates relative to financing costs. We think the best way to leverage this environment, at least for us, is through capital recycling. So, when we compare an acquisition with a disposition at a spread and sell some of our lower growth assets, exchange those for higher growth assets, we think those are the types of trades that make the most sense. And again, if you sort of look back over the last 16 months, we've done about $550 million of acquisitions at an average cap of 7.2%. that CAGR is about 2.5% over the next five years.

嗨，羅恩，我是傑夫。是的，我的意思是我們看到的產品比去年更多，我們確實預計全國各地將發生更多的交易。但僅考慮到相對於融資成本的預期資本化率，很難達成交易。我們認為，至少對我們來說，利用這種環境的最佳方式是透過資本循環。因此，當我們將收購與價差處置進行比較，並出售一些成長較低的資產，將其換成成長較高的資產時，我們認為這些是最有意義的交易類型。再說一次，如果回顧過去 16 個月，我們完成了約 5.5 億美元的收購，平均上限為 7.2%。未來五年的複合年增長率約為2.5%。

Principally funded with dispositions, so that's $427 million of dispositions over the last 16 months at a cap rate of 52, which had a CAGR of about 1%. So those types of deals make a lot of sense, and we're hoping that we're going to find some of those in 2025.

主要資金來自處置，因此過去 16 個月的處置金額為 4.27 億美元，資本化率為 52，複合年增長率約為 1%。因此，這些類型的交易非常有意義，我們希望能在 2025 年找到其中一些。

Great, that's it for me thank you.

太好了，我就講到這裡，謝謝。

Our next question is from Floris van Dijkum with Compass Point. Please proceed.

下一個問題來自 Compass Point 的 Floris van Dijkum。請繼續。

Thanks. Good morning, guys. Capital recycling its creative capital recycling is obviously very attractive.

謝謝。大家早安。資本循環其富有創意的資本循環顯然非常有吸引力。

Maybe if you could talk a little bit about some of the other, I think you still have six Lowe's boxes, you've got a cold I think single tenant asset maybe talk about what the demand is for that and obviously cap rates have compressed a little bit based on your commentary. What do you think the spread would be today if you were to so, some of those drier assets and recycle. Is it going to be as attractive as what you've achieved over the last, call it 24 months?

也許如果你可以談談其他一些，我想你仍然有六個 Lowe 的盒子，你感冒了，我認為單一租戶資產可能會談論對此的需求是什麼，顯然資本化率根據你的評論有所壓縮。如果您這樣做的話，您認為今天的利差會是多少，一些較乾燥的資產和回收。它是否會像您在過去 24 個月所取得的成就一樣具有吸引力？

Yeah, I mean it was so attractive. It was almost 200 basis points in the last 24 months. I do think it will be more difficult to get that 200 basis points, but we are exploring several deals right now on the disposition front, mostly single tenant assets that we think will get a cap rate somewhere around, call it in the fives. And there may be some larger stable power centers that we own that have great credit but lower growth, and maybe we'll be in the 6% cap rate on those. So, the decision really will be made based on what's in our acquisition pipeline and how attractive those assets are relative to what we might be able to dispose of course. So, is that 100 million? Is it 200 million? I hope so.

是的，我的意思是它非常有吸引力。在過去的 24 個月中，這一數字接近 200 個基點。我確實認為獲得這 200 個基點會更加困難，但我們目前正在探索處置方面的幾筆交易，主要是單一租戶資產，我們認為這些資產的資本化率將在 5% 左右。我們擁有的一些較大的穩定電力中心可能擁有良好的信譽但增長較低，也許我們對這些中心的資本化率為 6%。因此，做出決定的依據實際上是我們的收購管道包括哪些內容，以及這些資產相對於我們能夠處置的資產的吸引力。那麼，那是 1 億嗎？是2億嗎？我希望如此。

Fair enough. Let me ask you another question on your redevelopment. I noticed obviously you announced the Macy's termination at Sunrise. I don't know if you can make any comments on where that project stands today, and then also talk maybe a little bit about the Bergen Tow Center apartments or the sale to an apartment developer and how you're thinking about mixed use in your portfolio.

很公平。讓我再問您一個有關重建的問題。我明顯注意到你在日出時宣布了梅西百貨的終止合約。我不知道您是否可以對該項目目前的進展發表一些評論，然後也可以談談 Bergen Tow Center 公寓或向公寓開發商的出售情況，以及您如何考慮在您的投資組合中進行混合用途。

Yeah, so on Sunrise, I mean, we're very excited about our progress. We can't get into more details just because of the confidential nature of our discussions that ultimately will allow us to redevelop the property. We do hope to disclose more later this year on it.

是的，所以對於 Sunrise，我的意思是，我們對我們的進展感到非常興奮。由於我們的討論具有保密性，我們不能透露更多細節，因為這最終將使我們能夠重新開發該房產。我們確實希望在今年稍後披露更多相關資訊。

In terms of the residential sale, we created a lot of value by entitling that land for about 450 residential units, and we felt that the best way to monetize that value was to sell it to a local developer and we will redeploy that capital in a 1031 on an acquisition that we've already made.

在住宅銷售方面，我們透過將該土地授權用於建造約 450 個住宅單元而創造了很多價值，並且我們認為將該價值貨幣化的最佳方式是將其出售給當地開發商，然後我們將以 1031 的形式將該資本重新部署在我們已經完成的收購上。

Right, and that maybe the last question that I have. As you guys are still continuing to spend on, in particular, Bruckner, as the market strengthens, what happens to your expected returns as the vacancy continues to drop and space gets tighter, are you seeing more attractive returns or is it, are the returns being offset by rising costs in construction as well?

好的，這也許是我的最後一個問題。由於你們仍在繼續投入，特別是布魯克納，隨著市場走強，隨著空置率不斷下降和空間變得越來越緊張，你們的預期回報會發生什麼變化，你是否看到了更有吸引力的回報，還是回報也被建築成本的上升所抵消了？

Hey, good morning, Flores. It's Jeff Mooallem. Yes, and yes, we are definitely seeing some better returns. You cited Bruckner as an example. We're out there marketing some still available space and we're getting very good interest at very good prices, better than we underwrote, but definitely capital costs erode into some of that return. I would say we feel very good about the 15%.

嘿，早安，弗洛雷斯。他是 Jeff Mooallem。是的，是的，我們確實看到了一些更好的回報。您以布魯克納為例。我們正在行銷一些仍然可用的空間，我們以非常好的價格獲得了非常好的利息，比我們承保的要好，但資本成本肯定會侵蝕部分回報。我想說我們對這 15% 感到非常滿意。

Unlevered yield that we're targeting in our development pipeline right now. If anything, we're hoping that comes in a little higher. And when we look further out past 2025, we don't see a reason why that would come down materially, but we're always watching costs and right now we're in an interesting time and place with costs. There's a lot of concern about, where those are going to go with various government policies, and I'd say we feel good that we're going to do better than what we budgeted, but costs are definitely hitting the numbers a bit.

無槓桿收益是我們目前開發過程中瞄準的目標。無論如何，我們希望這個數字能更高一些。當我們展望2025年後時，我們看不出這一數字會大幅下降的原因，但我們始終在關注成本，而目前我們正處於一個成本方面有趣的時間和地點。人們非常擔心這些將會如何適應政府的各項政策，我想說我們很高興我們將會做得比預算的更好，但成本肯定會有點超出我們的預算。

Thanks. That's it for me.

謝謝。對我來說就是這樣了。

Thank you, Floris.

謝謝你，弗洛里斯。

As a reminder to start one on your telephone keypad, if you would like to ask a question. Our next question is from Samir Khanal with Evercore ISI. Please proceed.

提醒一下，如果您想提問，請在電話鍵盤上啟動一個。我們的下一個問題來自 Evercore ISI 的 Samir Khanal。請繼續。

Yes, good morning. Mark, on GNA, I mean, you've done a good job, bringing that down for the last several years. I think the midpoint, when you look at that in '25, it's also down versus last year. And I think in your opening remarks you talked about streamlining processes. Maybe expand on that a little bit as we kind of think about GNA not only for '25 and maybe even years beyond. Thanks.

是的，早安。馬克，關於 GNA，我的意思是，過去幾年你做得很好，一直在降低這一水平。我認為，當你從 25 年的角度來看中點時，它也比去年下降。我覺得您在開場白中談到了簡化流程。也許可以稍微擴展一下這一點，因為我們考慮的 GNA 不只是 25 年，甚至可能更久以後。謝謝。

Yeah, so there's three prongs that you know we obviously looked at Samir over the last couple of years.

是的，所以有三個方面我們在過去幾年中顯然關注了薩米爾。

One is just the headcount we allocate to different functions. Secondly is, what we spend on third parties. We did a deep dive on all consultancy, third party outsourcing vendors, everything you can imagine, which, amounts to big dollars, and that really tied into the last element is you know we're. Can we streamline process? So what I would tell you is it isn't any one thing, Samir, that drove, kind of this decline or the stabilization.

一是我們分配給不同職能部門的員工數。第二是我們在第三方上的花費。我們對所有顧問公司、第三方外包供應商以及您能想到的所有東西進行了深入研究，這些都涉及大筆資金，而這實際上與最後一個要素息息相關。我們能夠簡化流程嗎？所以我要告訴你的是，薩米爾，沒有任何單一因素推動了這種下降或穩定。

It was a bunch of, some kind of little things, moderate things where we rebid aggressively rebid all of those larger three-party contracts that helped and in terms of streamlining, we are like many comp. Is exploring ways and using AI and other RPA type tools where we're trying to automate things that we were spending 20, 30, 40 hours of manpower on, and we're seeing some very good results. I'm very encouraged what we're seeing and that's why I said in my prepared remarks we're not done. We're continuing to evaluate it, but there are at this point going to be smaller gradual changes and not any one big outsized event.

這都是一些小事，適度的事情，我們積極地重新競標所有那些有幫助的較大的三方合同，在精簡方面，我們和許多公司一樣。我們正在探索方法並使用 AI 和其他 RPA 類型的工具，嘗試實現以前需要花費 20、30、40 小時人力才能完成的工作的自動化，並且看到了一些非常好的結果。我對我們所看到的一切感到非常鼓舞，這就是為什麼我在準備好的發言中說我們還沒有完成。我們正在繼續評估它，但目前將會有一些較小規模的漸進式變化，而不是任何重大事件。

Okay, got it.

好的，明白了。

Thank you for that. And then I guess on Jeff, on Sunrise, I mean with Macy's terminating their lease, is that, I mean, I know it's still early, but it will that continue to be sort of retail or are you considering various uses, alternatives? It's just any, I don't know, any initial comments would be great. Thanks.

謝謝你。然後我想問 Jeff，關於 Sunrise，我的意思是梅西百貨終止了他們的租約，我的意思是，我知道現在還為時過早，但它會繼續作為零售業嗎，還是你們在考慮各種用途、替代方案？只是任何，我不知道，任何初步評論都會很棒。謝謝。

Hey, good morning, Samir. It's Jeff Mooallem. I'll take it.

嘿，早上好，薩米爾。他是 Jeff Mooallem。我要買它。

Look, I think what we've said before and what's still consistent is the 78-acre parcel of land. So, it's important that we all think about it as potentially more than one category of use. We're exploring a lot of different things right now. We're very encouraged, as Jeff. By the progress we've made, Macy's closing their store there is a big step forward in our development plans, and we're excited for what's to come. Nothing more that we can really say beyond that at this point, but we are hoping that we'll be able to announce something here definitely in 2025.

看，我認為我們之前已經說過並且仍然一致的是那塊 78 英畝的土地。因此，我們都應該將其視為潛在的多種用途類別，這一點很重要。我們現在正在探索很多不同的事情。我們和傑夫一樣感到非常鼓舞。從我們已經取得的進展來看，梅西百貨關閉那裡的商店是我們發展計劃向前邁出的一大步，我們對未來的發展感到興奮。除此之外，目前我們還不能透露更多，但我們希望能夠在 2025 年宣布一些具體消息。

Thank you.

謝謝。

Our next question is from Paulina Rojas with Green Street Advisors. Please proceed.

下一個問題來自 Green Street Advisors 的 Paulina Rojas。請繼續。

Good morning. And you mentioned in your prepared remarks that high quality centers in the markets are trading below a 6% cap rate. And can you characterize a little more what type of assets can trade a sub six in terms of size and number of boxes, whether it has or not a grocer and a little more color around that.

早安.您在準備好的發言中提到，市場上高品質中心的交易價格低於 6% 的資本化率。您能否進一步描述什麼類型的資產可以從大小和箱子數量方面來交易 6 歲以下兒童，無論是否有雜貨店，以及周圍的更多顏色。

Hey, good morning, Paulina. Yeah, I think having a grocer is an important component of what we would call maybe a core plus type asset.

嘿，早上好， Paulina。是的，我認為擁有一家雜貨店是我們稱之為核心附加型資產的重要組成部分。

Certainly, all the investors today, and we're no different, are looking for growth. So, when you combine a good grocer doing good sales and with, a reasonable amount of lease term left, call it at least you know 7 to 10 years of lease term. And growth opportunities through shop space, maybe adding pads, things like that. Those are the assets that are really most desirable right now in the market.

當然，如今所有的投資者，我們也不例外，都在尋求成長。因此，當您將一家銷售業績良好的雜貨店與合理的剩餘租賃期限結合時，您至少可以稱其為 7 至 10 年的租賃期限。以及透過商店空間實現的成長機會，例如增加墊塊等等。這些是目前市場上真正最受歡迎的資產。

There's not a lot of them that get circulated, and when they do, there's there's quite a frenzy over them. So we're hearing guidance from brokers and we're seeing deals ourselves that are being quoted. Between a 5.5 and 6 cap rate range, and there is capital out there now that's solving for, high single digit or low double digit levered IRRs that can afford to pay those prices. It's definitely gotten compressed on the buy side. We did not see those at all a year ago and to Jeff's point earlier about, the 7.2%. A return on the deals we've been able to buy, we bought really well. We bought some assets that today would trade were very short of 50 to 100 basis points lower than the cap rates at which we purchased them. So, the buying has gotten tougher, and there are some assets now that are definitely going to be in the fives.

這些書很少被流傳，但一旦流傳，就會引起極大的狂熱。因此，我們聽取了經紀人的指導，並且我們自己也看到了正在報價的交易。在 5.5 到 6 的資本化率範圍內，現在有資本可以解決高個位數或低兩位數槓桿 IRR 的問題，這些資本可以支付這些價格。買方確實受到壓縮了。一年前我們根本沒有看到這些，就像 Jeff 之前提到的 7.2%。我們能夠購買的交易的回報確實很好。我們買了一些資產，這些資產今天的交易價格比我們購買時的資本化率低了 50 到 100 個基點。因此，購買變得更加困難，現在有些資產肯定會進入前五名。

And Paulina may be one of the best examples is a company that's based out your way, which was $4 billion of a so I think that that certainly had an impact on the market.

保利娜可能是最好的例子之一，這家公司的總部位於你們那裡，其估值為 40 億美元，所以我認為這肯定對市場產生了影響。

Yes, of course, And then more big picture, how are you seeing your cost of equity today and is an idea issuing equity, would you consider that as a source of funding for certain acquisitions.

是的，當然。

I think modestly, I think that clearly the best funding source is selling low cap rate, low growth assets, and also some of our non-core assets that could include excess land. That is what we're focused on. But is there room for a modest amount of equity maybe depending upon the deal.

我謹慎地認為，最好的資金來源顯然是出售低資本化率、低成長資產以及一些非核心資產（可能包括多餘的土地）。這就是我們所關注的重點。但是否有適量股權的空間可能取決於交易情況。

Okay, thank You.

好的，謝謝你。

Thank you.

謝謝。

With no further questions in the queue, I would like to turn the call back over to management for closing remarks.

由於沒有其他問題，我想將電話轉回給管理階層，請他們作最後發言。

Great. Well, thank you for your interest in Urban Edge. We look forward to seeing many of you in Florida at the City conference next month.

偉大的。好吧，感謝您對 Urban Edge 的關注。我們期待下個月在佛羅裡達州的城市會議上見到你們。

Thank you very much.

非常感謝。

Thank you. This will conclude today's conference. You may disconnect your lines at this time and thank you for your participation.

謝謝。今天的會議到此結束。現在您可以斷開您的線路了，感謝您的參與。