Urban Edge Properties Faces Potential Headwinds From High-Risk Tenants, UBS Says

MT Newswires Live
10/24

Urban Edge Properties (UE) faces potential headwinds from its outsized exposure to tenants that are at risk of closing their stores, UBS Securities said in a Friday note.

UBS analysts said the real estate investment trust has one of the highest exposure to its "watchlist tenants," noting the company's exposure to Kohl's (KSS) and Petco Health and Wellness (WOOF). The potential headwind could offset Urban Edge Properties' net operating income growth from its leasing momentum, according to the note.

UBS said it expects Urban Edge Properties to post "solid" funds from operations growth in 2025 and 2026 and that it could be "more positive" on the company if it finds a way to deal with some of its high-risk tenants.

UBS initiated coverage of Urban Edge Properties with a neutral rating and $21 price target.

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