Urban Edge Properties
For the period ended Sep 30, 2026. Filed Oct 28, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 28, 2026
UE$20.42-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001611547-26-000059
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-28.
0001611547-26-000070
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 123 previous paragraphs and 127 current paragraphs.
39 unchanged; 66 reworded; 19 added; 14 removed; 4 previous and 3 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
Our results of operations are affected by national, regional and local economic conditions, which are at times subject to volatility and uncertainty. During 2026, these conditions have included evolving U.S. trade policy, including tariffs implemented or modified during the year and the possibility of additional tariffs; geopolitical conflict and resulting elevated energy prices; renewed inflationary pressure; and rising interest rates.
Current report
Inflation remained elevated during the three months ended September 30, 2026 and may continue to remain elevated. On September 16, 2026, the Federal Reserve announced that it was increasing its target range for the federal funds rate to 3.75% to 4.00%, its first increase since 2023. Higher interest rates may increase our borrowing costs on our variable-rate debt and upon the refinancing of fixed-rate debt. They may also affect the availability and cost of debt and equity capital and the pricing of real estate transactions, which could adversely affect our acquisition, disposition and redevelopment activity.
Current report
Total revenue decreased by $0.6 million to $119.6 million in the third quarter of 2026 from $120.1 million in the third quarter of 2025. The decrease is primarily attributable to:
Current report
•$0.7 million decrease in other income and lease termination income; and
Current report
•$3.2 million increase as a result of property acquisitions, net of dispositions since the third quarter of 2025; and
Current report
Depreciation and amortization decreased by $3.9 million to $32.9 million in the third quarter of 2026 from $36.8 million in the third quarter of 2025. The decrease is primarily attributable to:
Current report
•$5.6 million decrease primarily related to the accelerated depreciation and write-off of in-place leases and tenant improvements since the third quarter of 2025; offset by
Current report
•$1.7 million increase as a result of property acquisitions, net of dispositions since the third quarter of 2025.
Current report
•$0.1 million increase in capitalized real estate taxes due to the commencement of development, redevelopment, and anchor repositioning projects since the third quarter of 2025, net of project completions; offset by
Current report
•$0.3 million increase as a result of property acquisitions, net of dispositions since the third quarter of 2025.
Current report
Interest and debt expense increased by $0.6 million to $20.0 million in the third quarter of 2026 from $19.4 million in the third quarter of 2025. The increase is primarily attributable to:
Current report
•$5.1 million increase as a result of property acquisitions, net of dispositions;
Current report
•$3.4 million increase as a result of property acquisitions, net of dispositions.
Current report
Real estate tax expense decreased by $0.2 million to $49.5 million in the nine months ended September 30, 2026 from $49.7 million in the nine months ended September 30, 2025. The decrease is primarily attributable to:
Current report
•$0.1 million decrease for successful appeals, lower assessments and real estate tax refunds in the first nine months of 2026, net of real estate tax increases.
Current report
•$0.6 million increase as a result of property acquisitions, net of dispositions.
Current report
Interest and debt expense decreased by $0.2 million to $58.5 million in the nine months ended September 30, 2026 from $58.7 million in the nine months ended September 30, 2025. The decrease is primarily attributable to:
Current report
Income tax expense increased by $0.1 million to $2.0 million in the nine months ended September 30, 2026 from $1.9 million in the nine months ended September 30, 2025. The increase is primarily attributable to the performance of the Puerto Rico properties and higher taxable income on the Company’s taxable REIT subsidiaries.
Current report
•$0.2 million decrease in costs for the potential issuance of common shares; offset by
Removed paragraphs (14)
Previous report
We continue to monitor the impacts of inflation, interest rates and broader macroeconomic conditions on our operations. Following a series of rate reductions in the latter part of 2025, the Federal Reserve has held its target range for the federal funds rate steady at 3.50% to 3.75%, maintaining that range for the fourth consecutive meeting. Inflation reaccelerated during the first half of 2026, rising to a rate of 3.5% as of June 30, 2026, driven in part by higher energy prices and heightened geopolitical tensions. The current inflation rate remains elevated compared to the Federal Reserve’s long-term target of 2%, and interest rates may rise further should inflationary pressures persist. These conditions have contributed to volatility in financial markets and continued uncertainty with respect to access to capital and pricing dynamics. There can be no assurance that inflationary pressures, interest rates, or related market volatility will moderate, and such conditions may persist in the near-term or over a longer period.
Previous report
Total revenue increased by $8.7 million to $122.8 million in the second quarter of 2026 from $114.1 million in the second quarter of 2025. The increase is primarily attributable to:
Previous report
•$2.0 million increase as a result of property acquisitions, net of dispositions since the second quarter of 2025;
Previous report
Depreciation and amortization increased by $2.4 million to $35.0 million in the second quarter of 2026 from $32.6 million in the second quarter of 2025. The increase is primarily attributable to:
Previous report
•$1.4 million increase as a result of property acquisitions, net of dispositions since the second quarter of 2025; and
Previous report
•$1.0 million increase due to accelerated depreciation and write-off of tenant improvements related to tenant vacates.
Previous report
•$0.1 million increase as a result of property acquisitions, net of dispositions since the second quarter of 2025.
Previous report
•$0.1 million increase as a result of property acquisitions, net of dispositions since the second quarter of 2025.
Previous report
Interest and debt expense increased by $0.3 million to $19.8 million in the second quarter of 2026 from $19.5 million in the second quarter of 2025. The increase is primarily attributable to:
Previous report
•$2.3 million increase as a result of property acquisitions, net of dispositions;
Previous report
•$0.5 million increase in non-cash revenues primarily driven by the acceleration and write-off of below-market lease intangibles in the first six months of 2026, net of straight-line write-offs for tenants moved to the cash basis of accounting; and
Previous report
•$1.9 million increase as a result of property acquisitions, net of dispositions.
Previous report
Real estate tax expense increased by $0.5 million to $33.5 million in the six months ended June 30, 2026 from $32.9 million in the six months ended June 30, 2025. The increase is primarily attributable to:
Previous report
•$0.1 million increase as a result of property acquisitions, net of dispositions; offset by
Reworded paragraphs (66)
Previous wording
The Operating Partnership’s capital includes general and common limited partnership interests (“OP Units”). As of June 30, 2026, Urban Edge owned approximately 94.6% 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.
Current wording
The Operating Partnership’s capital includes general and common limited partnership interests (“OP Units”). As of September 30, 2026, Urban Edge owned approximately 94.7% 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.
Previous wording
As of June 30, 2026, our portfolio consisted of 70 shopping centers, two outlet centers and two malls totaling approximately 16.1 million square feet of gross leasable area with a consolidated occupancy of 96.5%.
Current wording
As of September 30, 2026, our portfolio consisted of 70 shopping centers, two outlet centers and two malls totaling approximately 16.0 million square feet of gross leasable area with a consolidated occupancy of 96.4%.
Previous wording
The Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 contains a description of our critical accounting estimates, including valuing acquired assets and liabilities, and impairments. For the six months ended June 30, 2026, there were no material changes to these estimates.
Current wording
The Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 contains a description of our critical accounting estimates, including valuing acquired assets and liabilities, and impairments. For the nine months ended September 30, 2026, there were no material changes to these estimates.
Previous wording
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 such as the recent market volatility resulting from changes in tariff policies and the geopolitical climate. Increased tariffs on foreign imports and inflationary pressures could have a material impact on the cost of certain raw materials and goods and adversely affect the results of our operations or the operations of our tenants, and could temper consumer spending. While 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, there is no guarantee that we will be able to recoup all such amounts, and some larger tenants have capped the amount of these operating expenses they are responsible for under their lease.
Current wording
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.
Previous wording
We occasionally utilize interest rate derivative agreements to hedge the effect of changing interest rates on our variable rate debt. As of June 30, 2026, all of our outstanding mortgage debt is fixed rate or hedged with interest rate derivative agreements, and our only variable rate exposure is related to our unsecured line of credit which had an outstanding balance of $55 million and is indexed to SOFR plus an applicable margin per the credit agreement. There were no amounts drawn on either of the 5-year or 7-year term loans. As of June 30, 2026, we were counterparty to three interest rate swap agreements, all of which qualify for, and are designated as, hedging instruments to manage our exposure to changes in the interest rate environment. We are actively managing our business to respond to any economic and social impacts from events and circumstances such as those described above, however, the extent and duration of these impacts remain uncertain and could adversely affect our operating results, financial condition and liquidity. See “Risk Factors” in Part I, Item 1A, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
We occasionally utilize interest rate derivative agreements to hedge the effect of changing interest rates on our variable rate debt. As of September 30, 2026, all of our outstanding mortgage debt is fixed rate or hedged with interest rate derivative agreements, and our only variable rate exposure is related to our unsecured line of credit which had an outstanding balance of $75 million and is indexed to SOFR plus an applicable margin per the credit agreement. There were no amounts drawn on either of the 5-year or 7-year term loans. As of September 30, 2026, we were counterparty to three interest rate swap agreements, all of which qualify for, and are designated as, hedging instruments to manage our exposure to changes in the interest rate environment.
Previous wording
(1)Refer to pages 36-37 for a reconciliation to the most directly comparable generally accepted accounting principles (“GAAP”) measure.
Current wording
(1)Refer to pages 35-36 for a reconciliation to the most directly comparable generally accepted accounting principles (“GAAP”) measure.
Previous wording
Net income for the three months ended June 30, 2026 was $18.6 million, compared to net income of $60.8 million for the three months ended June 30, 2025. 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 June 30, 2026 as compared to the same period in 2025:
Current wording
Net income for the three months ended September 30, 2026 was $53.8 million, compared to net income of $15.5 million for the three months ended September 30, 2025. 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 September 30, 2026 as compared to the same period in 2025:
Previous wording
•$0.3 million increase in percentage rent primarily due to the timing of recognition as compared to the second quarter of 2025; and
Current wording
•$0.2 million decrease in percentage rent primarily due to the timing of recognition as compared to the third quarter of 2025; offset by
Previous wording
•$2.5 million increase in property rentals and tenant reimbursements due to rent commencements and contractual rent increases;
Current wording
•$3.0 million increase in property rentals and tenant reimbursements due to rent commencements and contractual rent increases.
Previous wording
Interest and debt expense decreased by $0.8 million to $38.5 million in the six months ended June 30, 2026 from $39.3 million in the six months ended June 30, 2025. The decrease is primarily attributable to:
Current wording
Real estate tax expense decreased by $0.8 million to $16.0 million in the third quarter of 2026 from $16.8 million in the third quarter of 2025. The decrease is primarily attributable to:
Previous wording
•$0.2 million increase due to higher tax assessments across multiple properties in the second quarter of 2026, net of successful tax appeals and lower assessments; and
Current wording
•$1.0 million decrease as a result of successful tax appeals and lower assessments; and
Previous wording
•$0.3 million increase as a result of property acquisitions, net of dispositions.
Current wording
•$0.3 million increase as a result of property acquisitions, net of dispositions since the third quarter of 2025.
Previous wording
Property operating expenses increased by $0.4 million to $19.3 million in the second quarter of 2026 from $18.9 million in the second quarter of 2025. The increase is primarily attributable to:
Current wording
Property operating expenses increased by $1.2 million to $20.6 million in the third quarter of 2026 from $19.4 million in the third quarter of 2025. The increase is primarily attributable to:
Previous wording
•$0.3 million increase due to higher insurance premiums and third-party service fees, partially offset by lower common area maintenance due to the timing of repairs as compared to the second quarter of 2025; and
Current wording
•$0.9 million increase due to higher insurance premiums, utilities expense and common area maintenance due to the timing of repairs as compared to the third quarter of 2025; and
Previous wording
General and administrative expenses decreased by $2.0 million to $9.7 million in the second quarter of 2026 from $11.7 million in the second quarter of 2025. The decrease is primarily attributable to severance expenses incurred in the second quarter of 2025.
Current wording
General and administrative expenses decreased by $0.2 million to $8.8 million in the third quarter of 2026 from $9.0 million in the third quarter of 2025. The decrease is primarily attributable to lower professional fees.
Previous wording
We recognized a gain on sale of real estate of $49.5 million in the second quarter of 2025 related to the sale of two non-core properties and one property parcel.
Current wording
We recognized a gain on sale of real estate of $36.0 million in the third quarter of 2026 related to the sale of Briarcliff Commons.
Previous wording
•$1.4 million increase as a result of new financings since the second quarter of 2025, net of loan repayments; and
Current wording
•$0.7 million increase as a result of new financings since the third quarter of 2025, net of loan repayments;
Previous wording
•$0.4 million decrease due to a lower average balance and lower interest rate on our unsecured line of credit.
Current wording
•$0.6 million increase due to a higher average balance on our unsecured line of credit; and
Previous wording
•$0.8 million increase in capitalized interest expense due to the commencement of development, redevelopment, and anchor repositioning projects, offset by project completions; and
Current wording
•$0.8 million increase in capitalized interest expense due to the commencement of development, redevelopment, and anchor repositioning projects, net of project completions.
Previous wording
Real estate tax expense increased by $0.3 million to $16.9 million in the second quarter of 2026 from $16.6 million in the second quarter of 2025. The increase is primarily attributable to:
Current wording
Income tax expense increased by $0.3 million to $0.9 million in the third quarter of 2026 from $0.6 million in the third quarter of 2025. The increase is primarily attributable to the performance of the Puerto Rico properties.
Previous wording
Comparison of the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025
Current wording
Comparison of the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025
Previous wording
Net income for the six months ended June 30, 2026 was $42.2 million, compared to net income of $69.2 million for the six months ended June 30, 2025. 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 six months ended June 30, 2026 as compared to the same period in 2025:
Current wording
Net income for the nine months ended September 30, 2026 was $96.0 million, compared to net income of $84.7 million for the nine months ended September 30, 2025. 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 nine months ended September 30, 2026 as compared to the same period in 2025:
Previous wording
Total revenue increased by $23.2 million to $255.4 million in the six months ended June 30, 2026 from $232.2 million in the six months ended June 30, 2025. The increase is primarily attributable to:
Current wording
Total revenue increased by $22.6 million to $375.0 million in the nine months ended September 30, 2026 from $352.4 million in the nine months ended September 30, 2025. The increase is primarily attributable to:
Previous wording
•$10.8 million increase in property rentals and tenant reimbursements due to rent commencements, contractual rent increases and higher operating expenses;
Current wording
•$14.1 million increase in property rentals and tenant reimbursements due to rent commencements, contractual rent increases and higher operating expenses;
Previous wording
•$8.3 million increase in other income related to the reimbursement of environmental remediation costs received in the first quarter of 2026;
Current wording
•$7.7 million increase in other income primarily related to the reimbursement of environmental remediation costs received in the first quarter of 2026;
Previous wording
•$2.2 million increase in lease termination income;
Current wording
•$2.1 million increase in lease termination income; and
Previous wording
•$0.2 million increase in percentage rent primarily due to the timing of recognition as compared to 2025; offset by
Current wording
•$0.1 million increase in percentage rent primarily due to the timing of recognition as compared to 2025; offset by
Previous wording
•$1.4 million increase in non-cash revenues driven by the acceleration and write-off of below-market lease intangibles in the second quarter of 2026;
Current wording
•$5.3 million decrease in non-cash revenues driven by the accelerated amortization of below-market lease intangibles in the third quarter of 2025; and
Previous wording
•$1.1 million increase in rental revenue deemed uncollectible.
Current wording
•$1.2 million increase in rental revenue deemed uncollectible.
Previous wording
Depreciation and amortization decreased by $2.4 million to $67.3 million in the six months ended June 30, 2026 from $69.8 million in the six months ended June 30, 2025. The decrease is primarily attributable to:
Current wording
Depreciation and amortization decreased by $6.4 million to $100.3 million in the nine months ended September 30, 2026 from $106.6 million in the nine months ended September 30, 2025. The decrease is primarily attributable to:
Previous wording
•$4.3 million decrease primarily related to accelerated depreciation of in-place leases in the first six months of 2025, net of accelerated depreciation and write-off of tenant improvements in the first six months of 2026; offset by
Current wording
•$9.8 million decrease primarily related to accelerated depreciation of in-place leases and tenant improvements in the first nine months of 2025, net of accelerated depreciation of tenant improvements in the first nine months of 2026; offset by
Previous wording
•$0.1 million increase in capitalized real estate taxes due to the commencement of development, redevelopment, and anchor repositioning projects, offset by project completions.
Current wording
•$0.1 million increase in capitalized real estate taxes due to the commencement of development, redevelopment, and anchor repositioning projects, offset by project completions; and
Previous wording
Property operating expenses increased by $5.3 million to $48.3 million in the six months ended June 30, 2026 from $42.9 million in the six months ended June 30, 2025. The increase is primarily attributable to:
Current wording
Property operating expenses increased by $6.5 million to $68.9 million in the nine months ended September 30, 2026 from $62.3 million in the nine months ended September 30, 2025. The increase is primarily attributable to:
Previous wording
•$5.0 million increase in common area maintenance expenses, primarily driven by snow removal in the first quarter of 2026 and higher insurance premiums; and
Current wording
•$5.9 million increase in insurance premiums, utilities and common area maintenance expenses, primarily driven by snow removal in the first quarter of 2026; and
Previous wording
General and administrative expenses decreased by $2.4 million to $18.8 million in the six months ended June 30, 2026 from $21.2 million in the six months ended June 30, 2025. The decrease is primarily attributable to severance expenses incurred in the first six months of 2025.
Current wording
General and administrative expenses decreased by $2.6 million to $27.6 million in the nine months ended September 30, 2026 from $30.2 million in the nine months ended September 30, 2025. The decrease is primarily attributable to severance expenses and professional fees incurred in the first nine months of 2025.
Previous wording
We recognized a $49.5 million gain on sale of real estate during the six months ended June 30, 2025 related to the sale of two non-core properties and one property parcel.
Current wording
We recognized a $36.0 million gain on sale of real estate during the nine months ended September 30, 2026 related to the sale of Briarcliff Commons. We recognized a $49.7 million gain on sale of real estate during the nine months ended September 30, 2025 related to the sale of two non-core properties and one property parcel.
Previous wording
•$1.7 million increase in capitalized interest expense due to the commencement of development, redevelopment, and anchor repositioning projects, net of project completions; and
Current wording
•$2.5 million increase in capitalized interest expense due to the commencement of development, redevelopment, and anchor repositioning projects, net of project completions; and
Previous wording
•$1.1 million decrease due to a lower average balance and lower interest rate on our unsecured line of credit; offset by
Current wording
•$0.5 million decrease due to a lower average balance and lower interest rate on our unsecured line of credit; offset by
Previous wording
•$1.7 million increase as a result of new financings and refinancings, net of loan repayments; and
Current wording
•$2.4 million increase as a result of new financings and refinancings, net of loan repayments; and
Previous wording
•$0.3 million increase in amortization of deferred financing costs.
Current wording
•$0.4 million increase in amortization of deferred financing costs.
Showing the first 40 of 66 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
These conditions may also impact our results of operations by affecting the financial condition of our tenants, including as a result of tariffs on imported goods and materials or tempering or shifting consumer spending, which may result in bankruptcies, store closures and reduced percentage rent. While most of our leases require tenants to pay their share of operating expenses, including common area maintenance, utilities, real estate taxes and insurance, thereby reducing our exposure to cost increases, there is no guarantee that we will recoup all such amounts, and some larger tenants have capped the amount of these expenses they are responsible for under their leases. Additionally, the costs of our development and redevelopment projects may be materially increased.
Current report — wording carried from elsewhere
We are actively managing our business to respond to any economic and social impacts from events and circumstances such as those described above, however, the extent and duration of these impacts remain uncertain and could adversely affect our operating results, financial condition and liquidity. See “Risk Factors” in Part I, Item 1A, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Current report — wording carried from elsewhere
•$5.9 million decrease in non-cash revenues driven by the accelerated amortization of below-market lease intangibles in the third quarter of 2025;
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
•$0.3 million decrease in rental revenue deemed uncollectible.
Previous report — wording carried elsewhere
In the second quarter of 2025, we recognized a $0.2 million loss on extinguishment of debt related to the prepayment of the mortgage loan secured by the Plaza at Woodbridge.
Previous report — wording carried elsewhere
•$2.2 million increase in lease termination income;
Previous report — wording carried elsewhere
•$0.5 million increase due to higher tax assessments across multiple properties, net of successful tax appeals and lower assessments; and