Evercore ISI lowered its 12-month price target on Urban Edge Properties to $21.00 from $22.00, while maintaining an "In Line" rating on the REIT's shares. The revised target sits almost level with the stock's current trading price of $21.03 and close to the company's 52-week high of $21.73.
The firm adjusted its underlying forecast, trimming its funds from operations, or FFO, estimate modestly to $1.50 per share from $1.51. Evercore ISI said the change reflects slightly reduced expectations for cash net operating income, a headwind that was partially offset in the model by lower general and administrative expenses.
Despite the small downward tweak to FFO and the accompanying price target adjustment, the research house highlighted Urban Edge Properties' ongoing leasing execution. Evercore ISI noted that the company is positioned for what it expects to be "another solid year" in 2026, driven by healthy lease spreads and the commencement of scheduled new openings, commonly referenced as SNOs. Those factors are expected to support earnings growth across the coming year.
Key balance-sheet and income metrics cited in the update reinforce the firm's measured optimism. Urban Edge Properties offers a 3.61% dividend yield and shows substantial liquidity, with a current ratio of 4.71, indicating that liquid assets materially exceed short-term obligations. The REIT's financial health is described as strong, with an overall score of 3.04 and a qualitative designation of "GREAT."
Recent operating results underscore the company's ability to beat near-term expectations. In the fourth quarter of 2025, Urban Edge reported earnings per share of $0.10, above the $0.08 analysts had forecast. Revenue for the quarter came in at $119.56 million, well ahead of the anticipated $96.16 million. Evercore ISI and market observers view those outcomes as confirmation of the REIT's capacity to outperform projections, though the note emphasized that subsequent stock price movement after the earnings release is not the focus of the update.
Overall, the research note presents a balanced view: a modest cut to near-term FFO and a corresponding small reduction to the price target, set against continued evidence of operational strength. The firm pointed to leasing gains, new openings and disciplined expense management as offsetting items that help sustain the company's outlook for the year ahead.
Investors and market participants evaluating Urban Edge Properties can weigh the slight downgrade to forward FFO and price target against the REIT's dividend income, liquidity profile and recent quarterly beat when considering valuation and risk exposure.