Business Wire | Aug 4, 2021 07:00AM EDT

Urban Edge Properties Reports Second Quarter 2021 Results

Aug. 04, 2021

NEW YORK--(BUSINESS WIRE)--Aug. 04, 2021--Urban Edge Properties (NYSE:UE) (the "Company") today announced its results for the quarter ended June 30, 2021.

"We are very pleased with our results this quarter and the positive momentum in leasing activity," said Jeff Olson, Chairman and CEO. "The strength of the retail industry is driving higher leasing volumes and fueling our redevelopment pipeline."

Financial Results(1)(2)

* Generated net income attributable to common shareholders of $12.5 million, or $0.11 per diluted share, for the second quarter of 2021 compared to $31.3 million, or $0.27 per diluted share, for the second quarter of 2020 and $32.5 million, or $0.28 per diluted share, for the six months ended June 30, 2021 compared to $80.2 million, or $0.67 per diluted share, for the six months ended June 30, 2020. * Generated Funds from Operations applicable to diluted common shareholders ("FFO") of $35.4 million, or $0.29 per share, for the quarter compared to $55.7 million, or $0.46 per share, for the second quarter of 2020 and $67.2 million, or $0.55 per share, for the six months ended June 30, 2021 compared to $90.5 million, or $0.73 per share, for the six months ended June 30, 2020. * Generated FFO as Adjusted of $34.5 million, or $0.28 per share, for the quarter compared to $21.7 million, or $0.18 per share, for the second quarter of 2020 and $66.8 million, or $0.55 per share, for the six months ended June 30, 2021 compared to $56.7 million, or $0.46 per share, for the six months ended June 30, 2020.

Operating Results(1)(3)

* Reported an increase of 23.9% in same-property Net Operating Income ("NOI"), including properties in redevelopment, compared to the second quarter of 2020. The increase was driven by $14.6 million lower rental revenue deemed uncollectible. * Reported an increase of 24.8% in same-property NOI, excluding properties in redevelopment, compared to the second quarter of 2020. The increase was driven by $14.6 million lower rental revenue deemed uncollectible. * Reported same-property portfolio leased occupancy of 92.0%, an increase of 90 basis points compared to March 31, 2021 and a decrease of 40 basis points compared to June 30, 2020. The increase in the quarter was driven by the execution of a 123,000 square foot ("sf") lease with Sector Sixty6, an interactive, entertainment venue incorporating K1 racing, bowling, and ropes courses, at Las Catalinas Mall in Puerto Rico. * Reported consolidated portfolio leased occupancy of 89.8%, an increase of 90 basis points compared to March 31, 2021 and a decrease of 260 basis points compared to June 30, 2020. The decrease compared to prior year includes a 200 basis points negative impact from the acquisition of Sunrise Mall in December 2020, which was 66% occupied as of June 30, 2021, and is included in our future redevelopment pipeline. * Executed 37 new leases, renewals and options totaling 317,000 sf during the quarter. Same-space leases totaled 298,000 sf and generated average rent spreads of 8.8% on a GAAP basis and (0.2)% on a cash basis. * The Company has signed leases that have not yet rent commenced that will generate an additional $12 million of future annual gross rent, representing approximately 5% of NOI. * Collected 97% of second quarter base rents as of July 30, 2021. * Issued first annual Environmental, Social and Governance ("ESG") Report outlining the Company's ESG strategies, policies, and environmental performance metrics.

Balance Sheet and Liquidity(1)(4)

Balance sheet highlights as of June 30, 2021 include:

* Total liquidity of approximately $1 billion, comprised of $379 million of cash on hand and $600 million available under our revolving credit. * Weighted average term to maturity on our outstanding debt is 5 years. * Total market capitalization of approximately $3.9 billion, comprised of 122.5 million fully-diluted common shares valued at $2.3 billion and $1.6 billion of debt. * Net debt to total market capitalization of 31%. * Net debt to Adjusted Earnings before interest, tax, depreciation and amortization for real estate ("EBITDAre") of 6.1x.

Leasing, Development and Redevelopment

The Company has commenced $16.4 million of redevelopment projects in connection with the execution of leases with Sector Sixty6 at Las Catalinas Mall and Sweetgreen at Walnut Creek.

During the quarter, the Company completed its $3.4 million development project at its property in Wilkes-Barre, PA to accommodate a new Panera Bread pad.

The Company has $134.1 million of active redevelopment projects under way, of which $89.7 million remains to be funded. These projects are expected to generate an approximate 8% unleveraged yield.

Acquisition and Disposition Activity

The Company is under contract to acquire two industrial properties totaling 275,000 sf for $55.5 million, that are located near our existing 943,000 sf warehouse park in East Hanover, NJ.

In July, the Company sold its property in Westfield, NJ, for $5.5 million, generating proceeds of $0.8 million, net of the repayment of the $4.7 million loan secured by the property.

^(1) Refer to "Non-GAAP Financial Measures" and "Operating Metrics" fordefinitions and additional detail.

^(2) Refer to page 8 for a reconciliation of net income to FFO and FFO asAdjusted for the quarter ended June 30, 2021.

^(3) Refer to page 9 for a reconciliation of net income to NOI andSame-Property NOI for the quarter ended June 30, 2021.

^(4) Net debt as of June 30, 2021 is calculated as total consolidated debt of$1.6 billion less total cash and cash equivalents, including restricted cash,of $379 million.

Non-GAAP Financial Measures

The Company uses certain non-GAAP performance measures, in addition to the primary GAAP presentations, as we believe these measures improve the understanding of the Company's operational results. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the investing public, and thus such reported measures are subject to change. The Company's non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results. Additionally, the Company's computation of non-GAAP metrics may not be comparable to similarly titled non-GAAP metrics reported by other REITs or real estate companies that define these metrics differently and, as a result, it is important to understand the manner in which the Company defines and calculates each of its non-GAAP metrics. The following non-GAAP measures are commonly used by the Company and investing public to understand and evaluate our operating results and performance:

* FFO: The Company believes FFO is a useful, supplemental measure of its operating performance that is a recognized metric used extensively by the real estate industry and, in particular real estate investment trusts ("REITs"). FFO, as defined by the National Association of Real Estate Investment Trusts ("Nareit") and the Company, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable real estate and land when connected to the main business of a REIT, impairments on depreciable real estate or land related to a REIT's main business and rental property depreciation and amortization expense. The Company believes that financial analysts, investors and shareholders are better served by the presentation of comparable period operating results generated from FFO primarily because it excludes the assumption that the value of real estate assets diminishes predictably. FFO does not represent cash flows from operating activities in accordance with GAAP, should not be considered an alternative to net income as an indication of our performance, and is not indicative of cash flow as a measure of liquidity or our ability to make cash distributions. * FFO as Adjusted: The Company provides disclosure of FFO as Adjusted because it believes it is a useful supplemental measure of its core operating performance that facilitates comparability of historical financial periods. FFO as Adjusted is calculated by making certain adjustments to FFO to account for items the Company does not believe are representative of ongoing core operating results, including non-comparable revenues and expenses. The Company's method of calculating FFO as Adjusted may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. * NOI: The Company uses NOI internally to make investment and capital allocation decisions and to compare the unlevered performance of our properties to our peers. The Company believes NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis, providing perspective not immediately apparent from net income. The Company calculates NOI using net income as defined by GAAP reflecting only those income and expense items that are incurred at the property level, adjusted for non-cash rental income and expense, and income or expenses that we do not believe are representative of ongoing operating results, if any. In addition, the Company uses NOI margin, calculated as NOI divided by total revenue, which the Company believes is useful to investors for similar reasons. The Company has historically defined this metric as "Cash NOI." There have been no changes to the calculation of this metric. However, the Company has decided to refer to this metric as "NOI" instead of "Cash NOI" to further clarify that, consistent with the definition of this metric, the revenue and expenses reflected in this metric include some accrued amounts and are not limited to amounts for which the Company actually received or made cash payment during the applicable period. * Same-property NOI: The Company provides disclosure of NOI on a same-property basis, which includes the results of properties that were owned and operated for the entirety of the reporting periods being compared, which total 72 and 70 properties for the three and six months ended June 30, 2021 and 2020, respectively. Information provided on a same-property basis excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area ("GLA") is taken out of service and also excludes properties acquired or sold during the periods being compared. As such, same-property NOI assists in eliminating disparities in net income due to the development, redevelopment, acquisition or disposition of properties during the periods presented, and thus provides a more consistent performance measure for the comparison of the operating performance of the Company's properties. While there is judgment surrounding changes in designations, a property is removed from the same-property pool when it is designated as a redevelopment property because it is undergoing significant renovation or retenanting pursuant to a formal plan that is expected to have a significant impact on its operating income. A development or redevelopment property is moved back to the same-property pool once a substantial portion of the NOI growth expected from the development or redevelopment is reflected in both the current and comparable prior year period, generally one year after at least 80% of the expected NOI from the project is realized on a cash basis. Acquisitions are moved into the same-property pool once we have owned the property for the entirety of the comparable periods and the property is not under significant development or redevelopment. The Company has also provided disclosure of NOI on a same-property basis adjusted to include redevelopment properties. Same-property NOI may include other adjustments as detailed in the Reconciliation of Net Income to NOI and same-property NOI included in the tables accompanying this press release. The Company has historically defined this metric as "same-property Cash NOI." There have been no changes to the calculation of this metric. The Company has decided to refer to this metric as "same-property NOI" for the same reasons discussed above under "NOI," which we had historically defined as "Cash NOI." * EBITDAre and Adjusted EBITDAre: EBITDAre and Adjusted EBITDAre are supplemental, non-GAAP measures utilized by us in various financial ratios. The White Paper on EBITDAre, approved by Nareit's Board of Governors in September 2017, defines EBITDAre as net income (computed in accordance with GAAP), adjusted for interest expense, income tax (benefit) expense, depreciation and amortization, losses and gains on the disposition of depreciated property, impairment write-downs of depreciated property and investments in unconsolidated joint ventures, and adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures. EBITDAre and Adjusted EBITDAre are presented to assist investors in the evaluation of REITs, as a measure of the Company's operational performance as they exclude various items that do not relate to or are not indicative of our operating performance and because they approximate key performance measures in our debt covenants. Accordingly, the Company believes that the use of EBITDAre and Adjusted EBITDAre, as opposed to income before income taxes, in various ratios provides meaningful performance measures related to the Company's ability to meet various coverage tests for the stated periods. Adjusted EBITDAre may include other adjustments not indicative of operating results as detailed in the Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre included in the tables accompanying this press release. The Company also presents the ratio of net debt (net of cash) to annualized Adjusted EBITDAre as of June 30, 2021, and net debt (net of cash) to total market capitalization, which it believes is useful to investors as a supplemental measure in evaluating the Company's balance sheet leverage. The presentation of EBITDAre and Adjusted EBITDAre is consistent with EBITDA and Adjusted EBITDA as presented in prior periods.

The Company believes net income is the most directly comparable GAAP financial measure to the non-GAAP performance measures outlined above. Reconciliations of these measures to net income have been provided in the tables accompanying this press release.

Operating Metrics

The Company presents certain operating metrics related to our properties, including occupancy, leasing activity and rental rates. Operating metrics are used by the Company and are useful to investors in facilitating an understanding of the operational performance for our properties.

Occupancy metrics represent the percentage of occupied gross leasable area based on executed leases (including properties in development and redevelopment) and include leases signed, but for which rent has not yet commenced. Same-property portfolio leased occupancy includes properties that have been owned and operated for the entirety of the reporting periods being compared, which total 72 and 70 properties for the three and six months ended June 30, 2021 and 2020, respectively. Occupancy metrics presented for the Company's same-property portfolio excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service and also excludes properties acquired within the past 12 months or properties sold during the periods being compared.

Executed new leases, renewals and exercised options are presented on a same-space basis. Same-space leases represent those leases signed on spaces for which there was a previous lease.

ADDITIONAL INFORMATION

For a copy of the Company's supplemental disclosure package, please access the "Investors" section of our website at www.uedge.com. Our website also includes other financial information, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports.

ABOUT URBAN EDGE

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 77 properties totaling 16.2 million square feet of gross leasable area.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this Press Release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our actual future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this Press Release. Many of the factors that will determine the outcome of forward-looking statements are beyond our ability to control or predict and include, among others: (i) the economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic, including (a) the effectiveness or lack of effectiveness of governmental relief in providing assistance to individuals adversely impacted by the COVID-19 pandemic, and to large and small businesses, particularly our retail tenants, that have suffered significant declines in revenues as a result of mandatory business shut-downs, "shelter-in-place" or "stay-at-home" orders and social distancing practices, (b) the duration of any such orders or other formal recommendations for social distancing, and the speed and extent to which revenues of our retail tenants recover following the lifting of any such orders or recommendations, (c) the potential impact of any such events on the obligations of the Company's tenants to make rent and other payments or honor other commitments under existing leases, (d) the rate and efficacy of COVID-19 vaccines; (e) the potential adverse impact on returns from redevelopment projects, and (f) the broader impact of the economic contraction and increase in unemployment that has occurred in the short term, and negative consequences that will occur if these trends are not reversed; (ii) the loss or bankruptcy of major tenants, particularly in light of the adverse impact to the financial health of many retailers that has occurred and continues to occur as a result of the COVID-19 pandemic; (iii) the ability and willingness of the Company's tenants to renew their leases with the Company upon expiration, the Company's ability to re-lease its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant, particularly, in light of the adverse impact to the financial health of many retailers that has occurred and continues to occur as a result of the COVID-19 pandemic and the significant uncertainty as to when and under which conditions potential tenants will be able to operate physical retail locations in the future; (iv) the impact of e-commerce on our tenants' business; (v) macroeconomic conditions, such as a disruption of, or lack of access to the capital markets, as well as potential volatility in the Company's share price as compared to prices prior to the spread of the COVID-19 pandemic; (vi) the Company's success in implementing its business strategy and its ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions and investments; (vii) changes in general economic conditions or economic conditions in the markets in which the Company competes, and their effect on the Company's revenues, earnings and funding sources, and on those of its tenants; (viii) increases in the Company's borrowing costs as a result of changes in interest rates and other factors, including the potential phasing out of LIBOR; (ix) the Company's ability to pay down, refinance, restructure or extend its indebtedness as it becomes due and potential limitations on the Company's ability to borrow funds under its existing credit facility as a result of covenants relating to the Company's financial results; (x) potentially higher costs associated with the Company's development, redevelopment and anchor repositioning projects, and the Company's ability to lease the properties at projected rates; (xi) the Company's liability for environmental matters; (xii) damage to the Company's properties from catastrophic weather and other natural events, and the physical effects of climate change; (xiii) the Company's ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; (xiv) information technology security breaches; and (xv) the loss of key executives. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see "Risk Factors" in Part I, Item 1A, of the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and the other documents filed by the Company with the Securities and Exchange Commission.

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Press Release. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this Press Release.

URBAN EDGE PROPERTIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

June 30, December 31,

2021 2020

ASSETS

Real estate, at cost:

Land $ 556,850 $ 568,662

Buildings and improvements 2,325,577 2,326,450

Construction in progress 55,461 44,689

Furniture, fixtures and equipment 7,432 7,016

Total 2,945,320 2,946,817

Accumulated depreciation and amortization (755,833 ) (730,366 )

Real estate, net 2,189,487 2,216,451

Right-of-use assets 77,428 80,997

Cash and cash equivalents 321,200 384,572

Restricted cash 57,833 34,681

Tenant and other receivables 15,823 15,673

Receivable arising from the straight-lining of 61,240 62,106 rents

Identified intangible assets, net of accumulatedamortization of $35,995 and $37,009, 51,536 56,184 respectively

Deferred leasing costs, net of accumulatedamortization of $16,512 and $16,419, 18,203 18,585 respectively

Prepaid expenses and other assets 73,184 70,311

Total assets $ 2,865,934 $ 2,939,560



LIABILITIES AND EQUITY

Liabilities:

Mortgages payable, net $ 1,577,413 $ 1,587,532

Lease liabilities 71,708 74,972

Accounts payable, accrued expenses and other 74,993 132,980 liabilities

Identified intangible liabilities, net ofaccumulated amortization of $76,513 and $71,375, 142,830 148,183 respectively

Total liabilities 1,866,944 1,943,667

Commitments and contingencies

Shareholders' equity:

Common shares: $0.01 par value; 500,000,000shares authorized and 117,137,337 and 1,170 1,169 117,014,317 shares issued and outstanding,respectively

Additional paid-in capital 990,255 989,863

Accumulated deficit (42,157 ) (39,467 )

Noncontrolling interests:

Operating partnership 43,568 38,456

Consolidated subsidiaries 6,154 5,872

Total equity 998,990 995,893

Total liabilities and equity $ 2,865,934 $ 2,939,560

URBAN EDGE PROPERTIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

REVENUE

Rental revenue

$

93,653

$

73,265

$

188,272

$

166,265

Management and development fees

266

285

631

599

Other income

87

69

764

115

Total revenue

94,006

73,619

189,667

166,979

EXPENSES

Depreciation and amortization

22,488

23,299

45,363

46,770

Real estate taxes

15,363

14,896

31,964

29,862

Property operating

15,891

11,894

36,182

26,431

General and administrative

9,484

18,053

18,152

27,900

Lease expense

3,195

3,351

6,501

6,785

Total expenses

66,421

71,493

138,162

137,748

Gain on sale of real estate

-

-

11,722

39,775

Interest income

90

422

226

2,105

Interest and debt expense

(14,728

)

(18,573

)

(29,555

)

(35,748

)

Gain on extinguishment of debt

-

34,908

-

34,908

Income before income taxes

12,947

18,883

33,898

70,271

Income tax benefit (expense)

34

13,662

(201

)

13,562

Net income

12,981

32,545

33,697

83,833

Less net (income) loss attributable to noncontrolling interests in:

Operating partnership

(584

)

(1,290

)

(1,459

)

(3,598

)

Consolidated subsidiaries

150

-

229

-

Net income attributable to common shareholders

$

12,547

$

31,255

$

32,467

$

80,235

Earnings per common share - Basic:

$

0.11

$

0.27

$

0.28

$

0.68

Earnings per common share - Diluted:

$

0.11

$

0.27

$

0.28

$

0.67

Weighted average shares outstanding - Basic

116,981

116,522

116,969

118,744

Weighted average shares outstanding - Diluted

117,034

116,595

122,327

119,607

Reconciliation of Net Income to FFO and FFO as Adjusted

The following table reflects the reconciliation of net income to FFO and FFO as Adjusted for the three and six months ended June 30, 2021 and 2020, respectively. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of FFO and FFO as Adjusted.

URBAN EDGE PROPERTIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share amounts)

Three Months Ended June Six Months Ended June 30, 30,

2021 2020 2021 2020

REVENUE

Rental revenue $ 93,653 $ 73,265 $ 188,272 $ 166,265

Management and development 266 285 631 599 fees

Other income 87 69 764 115

Total revenue 94,006 73,619 189,667 166,979

EXPENSES

Depreciation and 22,488 23,299 45,363 46,770 amortization

Real estate taxes 15,363 14,896 31,964 29,862

Property operating 15,891 11,894 36,182 26,431

General and administrative 9,484 18,053 18,152 27,900

Lease expense 3,195 3,351 6,501 6,785

Total expenses 66,421 71,493 138,162 137,748

Gain on sale of real - - 11,722 39,775 estate

Interest income 90 422 226 2,105

Interest and debt expense (14,728 ) (18,573 ) (29,555 ) (35,748 )

Gain on extinguishment of - 34,908 - 34,908 debt

Income before income taxes 12,947 18,883 33,898 70,271

Income tax benefit 34 13,662 (201 ) 13,562 (expense)

Net income 12,981 32,545 33,697 83,833

Less net (income) lossattributable to noncontrolling interestsin:

Operating partnership (584 ) (1,290 ) (1,459 ) (3,598 )

Consolidated subsidiaries 150 - 229 -

Net income attributable to $ 12,547 $ 31,255 $ 32,467 $ 80,235 common shareholders



Earnings per common share $ 0.11 $ 0.27 $ 0.28 $ 0.68 - Basic:

Earnings per common share $ 0.11 $ 0.27 $ 0.28 $ 0.67 - Diluted:

Weighted average shares 116,981 116,522 116,969 118,744 outstanding - Basic

Weighted average shares 117,034 116,595 122,327 119,607 outstanding - Diluted

Reconciliation of Net Income to FFO and FFO as Adjusted

The following table reflects the reconciliation of net income to FFO and FFO as Adjusted for the three and six months ended June 30, 2021 and 2020, respectively. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of FFO and FFO as Adjusted.

Three Months Ended June Six Months Ended June 30, 30,

(Amounts in thousands) 2021 2020 2021 2020

Net income $ 12,981 $ 32,545 $ 33,697 $ 83,833

Less net (income) lossattributable to noncontrolling interests in:

Operating partnership (584 ) (1,290 ) (1,459 ) (3,598 )

Consolidated subsidiaries 150 - 229 -

Net income attributable to 12,547 31,255 32,467 80,235 common shareholders

Adjustments:

Rental property depreciation 22,272 23,111 44,958 46,392 and amortization

Gain on sale of real estate - - (11,722 ) (39,775 )

Limited partnershipinterests in operating 584 1,290 1,459 3,598 partnership

FFO Applicable to diluted 35,403 55,656 67,162 90,450 common shareholders

FFO per diluted common share 0.29 0.46 0.55 0.73 ^(1)

Adjustments to FFO:

Gain on extinguishment of - (34,908 ) - (34,908 )debt

(Reinstatement)/write-off ofreceivables arising from the (239 ) 6,048 634 6,048 straight-lining of rents,net

Tax impact of Puerto Rico (490 ) (13,366 ) (490 ) (13,366 )transactions

Executive transition costs - 7,152 - 7,152

Tenant bankruptcy settlement (286 ) - (286 ) - income

Transaction, severance and 120 1,165 (257 ) 1,291 other expenses (income), net

FFO as Adjusted applicableto diluted common $ 34,508 $ 21,747 $ 66,763 $ 56,667 shareholders

FFO as Adjusted per diluted $ 0.28 $ 0.18 $ 0.55 $ 0.46 common share^(1)



Weighted Average diluted 122,485 121,408 122,327 124,082 common shares^(1)

(1) Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share for the three months ended June 30, 2021 and 2020 are higher than the GAAP weighted average diluted shares as a result of the dilutive impact of LTIP and OP units which may be redeemed for our common shares.

Reconciliation of Net Income to NOI and Same-Property NOI

The following table reflects the reconciliation of net income to NOI, same-property NOI and same-property NOI including properties in redevelopment for the three and six months ended June 30, 2021 and 2020, respectively. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of NOI and same-property NOI.

^(1) Weighted average diluted shares used to calculate FFO per share and FFO asAdjusted per share for the three months ended June 30, 2021 and 2020 are higherthan the GAAP weighted average diluted shares as a result of the dilutiveimpact of LTIP and OP units which may be redeemed for our common shares.

Reconciliation of Net Income to NOI and Same-Property NOI

The following table reflects the reconciliation of net income to NOI, same-property NOI and same-property NOI including properties in redevelopment for the three and six months ended June 30, 2021 and 2020, respectively. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of NOI and same-property NOI.

Three Months Ended June Six Months Ended June 30, 30,

(Amounts in thousands) 2021 2020 2021 2020

Net income $ 12,981 $ 32,545 $ 33,697 $ 83,833

Management and developmentfee income from non-owned (266 ) (285 ) (631 ) (599 )properties

Other (income) expense 427 201 181 456

Depreciation and 22,488 23,299 45,363 46,770 amortization

General and administrative 9,484 18,053 18,152 27,900 expense

Gain on sale of real - - (11,722 ) (39,775 )estate

Interest income (90 ) (422 ) (226 ) (2,105 )

Interest and debt expense 14,728 18,573 29,555 35,748

Gain on extinguishment of - (34,908 ) - (34,908 )debt

Income tax (benefit) (34 ) (13,662 ) 201 (13,562 )expense

Non-cash revenue and (2,482 ) 3,938 (3,755 ) 1,243 expenses

NOI^(1) 57,236 47,332 110,815 105,001

Adjustments:

Non-same property NOI and (528 ) (1,624 ) (3,857 ) (6,605 )other^(2)

Tenant bankruptcysettlement income and (286 ) (504 ) (762 ) (507 )lease termination income

Same-property NOI $ 56,422 $ 45,204 $ 106,196 $ 97,889

NOI related to properties 889 1,062 1,758 2,340 being redeveloped

Same-property NOIincluding properties in $ 57,311 $ 46,266 $ 107,954 $ 100,229 redevelopment

(1) The Company has historically defined this metric as "Cash NOI." There have been no changes to the calculation.

(2) Non-same property NOI includes NOI related to properties being redeveloped and properties acquired or disposed in the period.

Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

The following table reflects the reconciliation of net income to EBITDAre and Adjusted EBITDAre for the three and six months ended June 30, 2021 and 2020, respectively. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of EBITDAre and Adjusted EBITDAre.

^(1) The Company has historically defined this metric as "Cash NOI." There havebeen no changes to the calculation.

^(2) Non-same property NOI includes NOI related to properties being redevelopedand properties acquired or disposed in the period.

Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

The following table reflects the reconciliation of net income to EBITDAre and Adjusted EBITDAre for the three and six months ended June 30, 2021 and 2020, respectively. Net income is considered the most directly comparable GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a description of EBITDAre and Adjusted EBITDAre.

Three Months Ended June Six Months Ended June 30, 30,

(Amounts in thousands) 2021 2020 2021 2020

Net income $ 12,981 $ 32,545 $ 33,697 $ 83,833

Depreciation and 22,488 23,299 45,363 46,770 amortization

Interest and debt expense 14,728 18,573 29,555 35,748

Income tax (benefit) expense (34 ) (13,662 ) 201 (13,562 )

Gain on sale of real estate - - (11,722 ) (39,775 )

EBITDAre 50,163 60,755 97,094 113,014

Adjustments for Adjusted EBITDAre:

Gain on extinguishment of - (34,908 ) - (34,908 )debt

Executive transition costs - 7,152 - 7,152

Tenant bankruptcy settlement (286 ) - (286 ) - income

(Reinstatement)/write-off ofreceivables arising from the (239 ) 6,048 634 6,048 straight-lining of rents,net

Transaction, severance and 120 1,165 (257 ) 1,291 other expenses (income)

Adjusted EBITDAre $ 49,758 $ 40,212 $ 97,185 $ 92,597

View source version on businesswire.com: https://www.businesswire.com/news/home/20210804005244/en/

CONTACT: Mark Langer, EVP and Chief Financial Officer (212) 956-0082