Business Context and Reporting Period
Company: Urban Edge Properties (UE) and Urban Edge Properties LP (Operating Partnership).
Filing Type: Form 8-K (Current Report).
Date of Report: January 22, 2026.
Event: Entry into material definitive agreements regarding debt financing.
Key Financial Metrics and Debt Structure
This filing details the restructuring of the Operating Partnership's unsecured debt facilities. No amounts are currently drawn on the new facilities.
- Revolving Credit Facility: Reduced from $800 million to $700 million. Maturity extended to June 28, 2030, with two 6-month extension options.
- Five Year Term Facility: New facility of $125 million with a maturity of June 30, 2031. Includes a delayed draw feature for 12 months.
- Seven Year Term Facility: New facility of $125 million with a maturity of January 22, 2033. Includes a delayed draw feature for 12 months.
- Accordion Feature (Revolving): Capacity to increase total unsecured indebtedness to $1.025 billion.
- Accordion Feature (Seven Year Term): Capacity to increase total unsecured indebtedness to $250 million.
- Interest Margins (SOFR-based):
- Revolving: 1.00% to 1.45% (Current: 1.00%).
- Five Year Term: 1.15% to 1.60% (Current: 1.15%).
- Seven Year Term: 1.50% to 2.20% (Current: 1.50%).
- Facility Fee: 0.15% to 0.30% on the $700 million committed capacity (Current: 0.15%).
Material Changes Versus Prior Period
The Restated Credit Agreement amends and restates the First Amended and Restated Revolving Credit Agreement entered into on August 9, 2022. Key changes include:
- Reduction in revolving credit capacity by $100 million.
- Extension of the revolving credit maturity by approximately 3.3 years.
- Addition of two new term loan facilities (Five Year and Seven Year) totaling $250 million in potential capacity.
- Adjustment of interest rate margins and facility fees based on leverage ratios.
Guidance, Covenants, and Risks
Financial Covenants: The Operating Partnership must maintain the following ratios as of the last day of each fiscal quarter:
- Debt to Capitalization Value: Total Outstanding Indebtedness to Capitalization Value (6.25% cap rate) must not exceed 60% (65% for four quarters post-acquisition).
- Fixed Charge Coverage: Combined EBITDA to Fixed Charges must not be less than 1.50 to 1.00.
- Unsecured Interest Coverage: Unencumbered Combined EBITDA to Unsecured Interest Expense must not be less than 1.50 to 1.00.
- Unsecured Debt Ratio: Unsecured Indebtedness to Capitalization Value of Unencumbered Assets must not exceed 60% (65% for four quarters post-acquisition).
- Secured Debt Ratio: Secured Indebtedness to Capitalization Value must not exceed 60%.
Prepayment Terms: The Revolving and Five Year Term facilities allow prepayment without premium or penalty. The Seven Year Term Facility carries a prepayment premium of 2% for the first year and 1% for the second year.
ESG Adjustments: Margins may be adjusted by up to 0.04% based on environmental, social, and governance targets.
Investor Verification Checklist
- Verify the current leverage ratio to confirm the applicable interest margin and facility fee rates.
- Confirm the Operating Partnership's compliance with the 60% debt-to-capitalization covenant as of the most recent fiscal quarter.
- Review the intended use of the new $250 million term loan capacity (pre-development, acquisitions, or refinancing).
- Monitor the delayed draw periods (12 months) for the new term facilities to assess timing of future debt issuance.
- Check for any subsequent amendments to the accordion features if the company seeks to increase total unsecured indebtedness beyond current limits.