Urban Edge Properties Common Shares of Beneficial Interest (UE)

FairStock Score: 40/100 — MIXED

Key Financials

Strengths

• Generates $191 million in annual free cash flow (6.3% yield on market cap)
• Attractive 3.9% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($13) with negative 65% margin of safety—limited downside protection
• Altman Z-Score of 1.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Urban Edge Properties Common Shares of Beneficial Interest is a small-cap real estate company valued at $3.0 billion. The business generates $472 million in annual revenue with a 2.6% net margin and $191 million in free cash flow. From a quality standpoint, Urban shows distressed Altman Z-Score of 1.1 warrants caution and modest 7% ROE. On valuation, the stock is trading at a premium 29.2x earnings, with trades above its Graham Number with a negative 65% margin. Growth dynamics show revenue growing at 2.7% and profit growth of -58.8%. The 3.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 40/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $191 million in annual free cash flow (6.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the real estate space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer