Abstract

Urban Edge Properties will report quarterly results on February 11, 2026 Pre-Market. The preview aggregates the latest company guidance, market forecasts, and recent institutional commentary to frame expectations for revenue, margins, net profit, and adjusted EPS, with a focus on segment performance and risks relevant to the upcoming release.

Market Forecast

Consensus and company-derived projections indicate Urban Edge Properties’ current quarter revenue of $103.77 million, a year-over-year decline of 6.33%, with gross profit margin near 68.22%, net profit margin implied by outlook levels, and adjusted EPS estimated at $0.08, down 14.66% year over year. Highlights point to rental income as the core revenue driver, with management aiming to sustain occupancy and normalize operating costs; the near-term outlook centers on stable leasing metrics and modest expense discipline. The most promising segment remains rental income at $119.20 million last quarter, which grew 7.00% year over year, supported by contracted rent escalations and continued tenant retention.

Last Quarter Review

Urban Edge Properties delivered last quarter revenue of $120.13 million, gross profit margin of 68.22%, GAAP net profit attributable to the parent company of $14.94 million, net profit margin of 12.43%, and adjusted EPS of $0.12, with year-over-year growth of 71.43% on adjusted EPS. A key highlight was resilient margin performance with cost controls balancing inflationary pressures, underpinning adjusted profitability despite mixed top-line trends. Main business highlights: rental income accounted for $119.20 million, rising 7.00% year over year, while other income contributed $0.93 million.

Current Quarter Outlook

Main Business: Rental Income

Rental income continues to anchor the quarter’s outlook, driven by contracted annual rent escalations and portfolio occupancy stability. The central swing factor is lease rollover pricing power: steady consumer traffic at grocery-anchored and necessity-based centers supports positive cash leasing spreads, while discretionary tenants remain selective. Operating expense normalization is a supportive tailwind, yet property tax and utilities are sticky, making margin resilience dependent on controllable costs such as recoveries and maintenance scheduling. The projected revenue decline to $103.77 million indicates timing effects from dispositions or lower non-rent income, but the core rent roll is expected to hold up, allowing gross margin to remain near last quarter’s 68.22%. A modest adjusted EPS compression to $0.08 reflects the cautious stance on near-term leasing commencement timing and seasonal expense cadence in the quarter.

Most Promising Business: Stabilized, Necessity-Based Retail Centers

The stabilized, necessity-based retail portion of the portfolio is positioned to deliver the best relative performance, benefiting from grocery anchors and daily-needs tenancy that drive consistent footfall. These centers often achieve higher tenant retention and lower credit losses, sustaining rental income growth through contractual bumps even if broader retail demand softens. Year-over-year rent growth of 7.00% last quarter underscores durable pricing power, and the company’s focus on renewing and backfilling space with necessity retailers is designed to preserve cash flows. The key variable is renewal spreads: if mid-single-digit to high-single-digit spreads persist, segment revenue should remain resilient, with management prioritizing balance-sheet flexibility to support targeted reinvestments. Over the coming quarter, the stabilization narrative hinges on occupancy maintenance and measured capital deployment, mitigating volatility from discretionary tenants.

Stock Price Drivers This Quarter

Stock performance is likely to hinge on the interplay between reported revenue trajectory and margin preservation. A print close to the $103.77 million revenue estimate with gross margin around 68.22% and adjusted EPS near $0.08 would validate expectations and reduce downside risk. Any deviation driven by unexpected lease terminations, delayed commencements, or higher-than-anticipated property expenses could compress the net margin from last quarter’s 12.43%, weighing on sentiment. Conversely, positive surprises from leasing spreads, lower bad debt, or earlier commencements could support a more constructive view and reinforce the cautiously bullish bias reflected in recent commentary.

Analyst Opinions

Recent analyst and institutional commentary skews cautiously bullish, focusing on margin resilience and rental demand within necessity-based retail. The majority view emphasizes that disciplined expense management and relatively stable leasing metrics can offset moderate revenue headwinds, with adjusted EPS guidance of $0.08 seen as achievable given last quarter’s $0.12 print and normalized seasonality. Well-followed research desks highlight that portfolio mix and anchor strength reduce volatility risk, suggesting that valuation support is reasonable if results track close to the forecast. The constructive stance centers on incremental improvement in cash leasing spreads and continued occupancy stability, while acknowledging the near-term pressure implied by the forecast revenue decline of 6.33%.