UE

• Core Portfolio & Demand Trends

  • Demand for high-quality retail space in the company's focus corridor from DC to Boston remains strong, with limited new supply of quality space in target trade areas
  • Center foot traffic increased 3% YoY in Q2, driven by the company's value and necessity-oriented merchandise mix, with the largest gains at properties that have completed tenancy upgrades
  • The signed-but-not-open rent pipeline totals $22 million in future annual gross rent, equal to ~7% of current net operating income, providing visible future earnings growth
  • The most prominent active redevelopment project is Bruckner Commons in the Bronx, adding BJ's Wholesale Club, Ross, Chick-fil-A, and Chipotle, with total annual rent of over $8 million and rent commencement starting in 2027

• Capital Recycling Strategy

  • The company continues to execute a capital recycling program to improve asset quality and long-term growth, selling low-growth non-core stabilized assets to acquire higher-growth high-quality properties
  • In July 2026, the company acquired The Shops at West Falls Church (an 85,000 square foot Safeway-anchored center in an affluent DC suburb) for $40 million, and a ground lease position at Shoppers World in Framingham, Massachusetts for $10.5 million; the two purchases had an average 6% cap rate and are projected to generate a 9% unleveraged IRR
  • The company is under contract to sell Briarcliff Commons, a Kohl's-anchored center in New Jersey, for $60.5 million, with closing expected in Q3 2026
  • Over the past three years, the company has acquired ~$700 million of high-quality shopping centers at a 7% average cap rate, and sold ~$500 million of non-core property at a 5.2% average cap rate

• Leasing Strategy & Execution

  • Leasing teams are instructed to prioritize long-term tenant quality, pushing for strong initial rent and favorable ongoing terms including annual rent increases and option clauses
  • Year-to-date new lease cash spreads are nearly 30%, and management expects full-year new lease spreads to exceed 20%, which would mark the fifth consecutive year hitting this threshold
  • One completed stabilization project in Q2 was the opening of a new Burlington store at Hudson Mall in Jersey City; a HomeGoods is under construction at the same property, with opening planned for late 2026 as part of the mall's reinvention
  • Over the prior 12 months, the company has invested $33 million in completed development projects that are now generating an average 25% yield
  • The active development pipeline totals $155 million, with ~$67 million remaining to fund, and is projected to deliver an approximate 12% yield; an additional untapped shadow pipeline of future projects is expected to contribute to NOI growth in coming years

• Balance Sheet & Credit Health

  • Total liquidity as of Q2 end was ~$960 million, including $82 million in cash on hand, with $55 million drawn on the company's credit facility and no draws on delayed draw term loans
  • Net debt to adjusted EBITDA was 5.5x, leaving the company well positioned to pursue future growth opportunities
  • Bad debt came in better than expected at 40 basis points of gross rents in Q2, with a previously delinquent multi-location Puerto Rican tenant now current on all payments and payment plan obligations

• Full year 2026 adjusted FFO guidance was raised by 2 cents per share at the midpoint, to a new range of $1.50 to $1.54 per share, implying 6% YoY growth over 2025
• Same property NOI growth guidance for 2026, including redevelopment, was updated to a range of 3.25% to 3.75%, representing a 25 basis point increase to the lower end of the prior range
• Management expects to backfill currently vacant shop space at an average rent of $45 per square foot (a ~20% mark-to-market increase) and push shop occupancy back to over 93% by the end of 2026
• Updated full-year 2026 credit loss guidance for Q3 and Q4 is 60 to 75 basis points of gross rent
• The signed-but-not-open pipeline is expected to generate $1.7 million in new rent in the second half of 2026, with most coming online in Q4
• 2026 acquisition guidance is set at $95 million reflecting completed activity to date, while 2026 disposition guidance remains unchanged at $60.5 million, matching the expected sale price of Briarcliff Commons

Urban Edge Properties is a retail real estate company that does not break out results into separate product segments in this call. Overall consolidated Q2 2026 performance: adjusted FFO was $0.40 per share, a 10% increase year-over-year (YoY) and 7% higher year-to-date. Same property NOI including redevelopment grew 3.2% for the quarter and 3% year-to-date. Same property leased occupancy ended the quarter at 96.3%, a 10 basis point decrease from the prior quarter and 40 basis points lower than Q2 2025. Shop occupancy decreased 70 basis points sequentially to 91.7%. The company completed 26 leases (13 new, 13 renewals) totaling 199,000 square feet in Q2; new leases delivered a 13% same-space cash spread, while renewals/option exercises delivered a 10% same-space cash spread.

• The acquisition market for high-quality retail properties is highly competitive, with significant institutional and private capital chasing deals that has compressed cap rates across the retail sector, making it harder to find transactions that meet the company's return thresholds
• The unexpected bankruptcy of Wren Kitchens, which occupied two locations in the company's portfolio, caused a small decline in overall occupancy in Q2; management expects to re-lease the vacated space at improved terms but the process will take time
• Permitting delays remain a persistent barrier to speeding up tenant opening timelines, even as tenants have become more flexible to reduce time to rent commencement
• While most tenant health trends are positive, the company remains cautious about over-saturating properties with QSR/food tenants, and intentionally holds lower occupancy temporarily to replace weaker tenants with higher-quality operators

Q: The analyst asks to reconcile the $0.03 per share in one-time positive items in Q2 versus the only $0.02 per share increase to full-year adjusted FFO guidance, asking what moving pieces explain the difference. / A: The CFO explains that part of the one-time termination income from Wren Kitchens was already baked into the original full-year guidance as expected rent, so it is not fully incremental to the full year. Additionally, some of the Q2 beat from higher-than-expected percentage rent represented timing of revenue that would have otherwise been recognized later in the year. These factors reconcile the gap between the quarterly one-time gain and the size of the guidance increase.

Q: The analyst asks what cap rate range Urban Edge sees for target acquisitions, how it compares to cap rates for dispositions, and what accretion the capital recycling strategy delivers in the current market. / A: The CEO says cap rates for target properties generally fall in a 5% to 7% range, with unleveraged IRRs targeted at 7% to 9%. The company sells low-growth (1% to 2% annual growth) high-credit stabilized assets that can sell at low cap rates, and reinvests the proceeds into higher-growth (3% to 4% annual growth) assets at roughly equivalent cap rates to what the assets are sold for, delivering accretion through higher future growth.

Q: The analyst asks if increased acquisition competition in the company's core Northeast corridor will lead it to expand into new markets like Florida or North Carolina, or if it will stick to its existing footprint. / A: The CEO confirms that the most natural geographic expansion for the company is southward, and the firm has been actively looking for acquisition opportunities in the U.S. Southeast. While the Southeast market is also highly competitive, the company hopes to complete its first entry into the region eventually.

Q: The analyst asks what categories of anchor tenants are currently paying the highest net effective rents, and whether pricing varies more by category or by individual tenant brand. / A: The COO says strong rent growth is seen across almost all anchor categories: large-format anchors including home improvement, warehouse clubs, grocers, and mass merchants all pay higher rents than in prior years, as do discount anchors like TJ Maxx, Ross, and Burlington, which face heavy competition for quality space. Even smaller-format anchors including apparel and wellness brands are paying higher rents to secure quality locations. Management notes almost all anchor tenants have adjusted to current market rent realities, so pricing is not limited to a single category or size group.