Urban Edge Properties (UE) risk factors, FY2024 10-K

RISKS RELATED TO OUR BUSINESS AND OPERATIONS

1. 01Inflation and related volatility in the economy could negatively impact our results of operations and our tenants
2. 02International trade disputes, including U.S. trade tariffs and retaliatory tariffs, could adversely impact our business
3. 03on our and our tenants’ businesses, financial condition, results of operations, liquidity, and ability to access capital markets and satisfy debt service obligations
4. 04E-commerce may have an adverse impact on our tenants and our business
5. 05Retail real estate is a competitive business
6. 06We depend on leasing space to tenants on economically favorable terms and on collecting rent from tenants who ultimately may not be able to pay
7. 07We may be unable to renew leases or relet space as leases expire on terms comparable to prior leases or at all
8. 08Bankruptcy or insolvency of tenants may decrease our revenues, net income and available cash
9. 09A significant number of our properties are located in the New York metropolitan area and are affected by the economic cycles there
10. 10Some of our properties depend on anchor or major tenants and decisions made by these tenants, or adverse developments in the businesses of these tenants, could materially and adversely affect our business, results of operations and financial condition
11. 11Development and redevelopment activities have inherent risks, which could adversely impact our cash flow, financial condition and results of operations
12. 12We face significant competition for acquisitions of properties, which may reduce the number of acquisition opportunities available to us and increase the costs of these acquisitions
13. 13Our operating results at acquired properties may not meet our financial expectations
14. 14It may be difficult to dispose of real estate quickly, which may limit our flexibility
15. 15Many real estate costs are fixed, even if income from our properties decreases
16. 16A number of properties in our portfolio are subject to ground or building leases; if we are found to be in breach of a ground or building lease or are unable to renew a ground or building lease, we could be materially and adversely affected
17. 17Our assets may be subject to impairment charges

Risks related to our outstanding debt

1. 18mortgage loan encumbering one of our properties. We are actively exploring our options to refinance; however, there is no guarantee that we will be able to do so prior to maturity or at a rate that is favorable to us
2. 19Covenants in our existing financing agreements may restrict our operating, financing, redevelopment, development, acquisition and other activities
3. 20Defaults on secured indebtedness may result in foreclosure
4. 21We may not be able to obtain capital to make investments

Risks related to our properties in Puerto Rico

1. 22Natural disasters could have a concentrated impact on us
2. 23Some of our potential losses may not be covered by insurance
3. 24Certain insurance premiums are charged directly to each of the properties but not all of the cost of such premiums are recovered. We are responsible for deductibles, losses in excess of insurance coverage, and the portion of premiums not reimbursable by tenants at our properties, which could be material
4. 25Terrorist acts and shooting incidents could harm the demand for, and the value of, our properties
5. 26Our business and operations would suffer in the event of system failures
6. 27We face risks associated with security and cyber security breaches
7. 28A breach or significant and extended disruption in the functioning of our systems, including our primary website, may damage

RISKS RELATED TO ENVIRONMENTAL LIABILITY AND REGULATORY COMPLIANCE

1. 29We may be adversely affected by laws, regulations or other issues related to climate change
2. 30We may incur significant costs to comply with environmental laws and environmental contamination may impair our ability to lease and/or sell real estate
3. 31If not addressed, environmental conditions could impair our ability to sell or re-lease the affected properties in the future, or result in lower sales prices or rent payments, which could adversely impact our cash flow, financial condition and results of operations
4. 32retention may be negatively impacted. Our failure, or perceived failure, to meet the standards included in any sustainability disclosure or the expectations of our various stakeholders, could negatively impact our reputation, tenant and employee retention, and access to capital
5. 33Compliance or failure to comply with the Americans with Disabilities Act, safety regulations or other requirements could result in substantial costs

RISKS RELATED TO OUR STATUS AS A REIT

1. 34We may fail to qualify or remain qualified as a REIT and may be required to pay income taxes at corporate rates
2. 35REIT distribution requirements could adversely affect our liquidity and our ability to execute our business plan

Risks related to Section 1031 Exchanges

1. 36We face possible adverse changes in tax law

RISKS RELATED TO OUR ORGANIZATION AND STRUCTURE

1. 37Our Declaration of Trust sets limits on the ownership of our shares
2. 38Our Declaration of Trust limits the removal of members of the Board of Trustees
3. 39Maryland law contains provisions that may reduce the likelihood of certain takeover transactions
4. 40We may issue additional shares in a manner that could adversely affect the likelihood of certain takeover transactions

RISKS RELATED TO AN INVESTMENT IN OUR COMMON SHARES

1. 41The market prices and trading volume of our equity securities may be volatile
2. 42The market prices of our equity securities depend on various factors which may be unrelated to our operating performance or prospects. We cannot assure you that the market prices of our equity securities, including our common shares, will not fluctuate or decline significantly in the future
3. 43We cannot guarantee the timing, amount, or payment of dividends on our common shares
4. 44Your percentage of ownership in our Company may be diluted in the future
5. 45Inflation and related volatility in the economy could negatively impact the value of our publicly-traded equity securities