NYSE:UE

Stock Analysis Report

Executive Summary

Urban Edge Properties is a NYSE listed real estate investment trust focused on managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the New York metropolitan region.

Rewards

Trading at 33.5% below its fair value

Earnings grew by 33.8% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -27.1% per year for the next 3 years

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Proven track record average dividend payer.

Share Price & News

How has Urban Edge Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

UE

2.1%

US REITs

1.7%

US Market


1 Year Return

-0.9%

UE

18.5%

US REITs

23.6%

US Market

Return vs Industry: UE underperformed the US REITs industry which returned 17.9% over the past year.

Return vs Market: UE underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

UEIndustryMarket
7 Day2.5%2.1%1.7%
30 Day2.6%2.9%3.5%
90 Day-8.0%-0.7%11.7%
1 Year3.8%-0.9%23.4%18.5%26.2%23.6%
3 Year-22.4%-31.5%35.2%18.2%53.2%43.3%
5 Year-1.4%-18.5%46.1%16.0%75.5%56.1%

Price Volatility Vs. Market

How volatile is Urban Edge Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Urban Edge Properties undervalued compared to its fair value and its price relative to the market?

32.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UE ($19.07) is trading below our estimate of fair value ($28.68)

Significantly Below Fair Value: UE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UE is good value based on its PE Ratio (20x) compared to the REITs industry average (37.8x).

PE vs Market: UE is poor value based on its PE Ratio (20x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: UE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: UE is overvalued based on its PB Ratio (2.3x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Urban Edge Properties forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-27.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UE's earnings are forecast to decline over the next 3 years (-27.1% per year).

Earnings vs Market: UE's earnings are forecast to decline over the next 3 years (-27.1% per year).

High Growth Earnings: UE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: UE's revenue (0.2% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: UE's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UE's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Urban Edge Properties performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UE has a large one-off gain of $57.2M impacting its September 30 2019 financial results.

Growing Profit Margin: UE's current net profit margins (28.7%) are higher than last year (20.5%).


Past Earnings Growth Analysis

Earnings Trend: UE's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: UE's earnings growth over the past year (33.8%) exceeds its 5-year average (15.1% per year).

Earnings vs Industry: UE earnings growth over the past year (33.8%) exceeded the REITs industry 8.1%.


Return on Equity

High ROE: UE's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Urban Edge Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: UE has a high level of physical assets or inventory.

Debt Coverage by Assets: UE's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: UE's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if UE has a sufficient allowance for bad loans.

Low Risk Liabilities: UE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if UE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: UE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if UE has an appropriate level of bad loans.


Next Steps

Dividend

What is Urban Edge Properties's current dividend yield, its reliability and sustainability?

4.53%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: UE's dividend (4.61%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: UE's dividend (4.61%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, UE has been paying a dividend for less than 10 years.

Growing Dividend: UE's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.2%), UE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UE's dividends in 3 years are forecast to be thoroughly covered by earnings (0.6% payout ratio).


Next Steps

Management

What is the CEO of Urban Edge Properties's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Jeff Olson (51yo)

5.1yrs

Tenure

US$4,663,195

Compensation

Mr. Jeffrey S. Olson, also known as Jeff, has been the Chief Executive Officer and Chairman of Urban Edge Properties since December 29, 2014. Mr. Olson served as the Chief Executive Officer at Equity One ( ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD4.66M) is about average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.4yrs

Average Tenure

51yo

Average Age

Experienced Management: UE's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

66yo

Average Age

Experienced Board: UE's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.


Management Team

  • Chris Weilminster (53yo)

    Executive VP & COO

    • Tenure: 1.3yrs
    • Compensation: US$9.50m
  • Don Briggs (51yo)

    President of Development

    • Tenure: 1.3yrs
    • Compensation: US$9.75m
  • Jeff Olson (51yo)

    Chairman & CEO

    • Tenure: 5.1yrs
    • Compensation: US$4.66m
  • Mark Langer (52yo)

    Executive VP & CFO

    • Tenure: 4.8yrs
    • Compensation: US$2.24m
  • Robert Milton (47yo)

    Executive VP

    • Tenure: 4yrs
  • Herb Eilberg (42yo)

    Chief Investment Officer

    • Tenure: 4.8yrs
    • Compensation: US$1.04m
  • Jennifer Holmes (38yo)

    Chief Accounting Officer

    • Tenure: 5.1yrs
  • Judith Knop

    Senior Vice President of Development & Construction

    • Tenure: 3yrs
  • Steve Theriot (59yo)

    Treasurer


    Board Members

    • Steve Guttman (72yo)

      Independent Trustee

      • Tenure: 5yrs
      • Compensation: US$175.00k
    • Steve Grapstein (61yo)

      Independent Trustee

      • Tenure: 5yrs
      • Compensation: US$192.50k
    • Steve Roth (77yo)

      • Tenure: 5yrs
      • Compensation: US$165.00k
    • Amy Lane (66yo)

      Independent Trustee

      • Tenure: 5yrs
      • Compensation: US$197.50k
    • Michael Gould (76yo)

      Lead Independent Trustee

      • Tenure: 5yrs
      • Compensation: US$222.50k
    • Jeff Olson (51yo)

      Chairman & CEO

      • Tenure: 5.1yrs
      • Compensation: US$4.66m
    • Kevin O'Shea (53yo)

      Independent Trustee

      • Tenure: 5.1yrs
      • Compensation: US$197.50k

    Company Information

    Urban Edge Properties's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Urban Edge Properties
    • Ticker: UE
    • Exchange: NYSE
    • Founded: 2015
    • Industry: Retail REITs
    • Sector: Real Estate
    • Implied Market Cap: US$2.469b
    • Market Cap: US$2.357b
    • Shares outstanding: 127.02m
    • Website: https://www.uedge.com

    Number of Employees


    Location

    • Urban Edge Properties
    • 888 Seventh Avenue
    • 6th Floor
    • New York
    • New York
    • 10019
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    UENYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 2015
    3UEMUN (Boerse Muenchen)YesCommon SharesDEEURJan 2015

    Biography

    Urban Edge Properties is a NYSE listed real estate investment trust focused on managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the New York metropolitan region. Urban Edge owns 78 properties totaling 15.0 million square feet of gross leasable area. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 00:32
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.