– Eliminated $44.5 million of debt by exercising discounted payoff options on previous mortgages – – Highlights benefits of secured debt strategy –
Urban Edge Properties (NYSE: UE) (the “Company”) today announced the completion of a mortgage refinancing at Las Catalinas Mall in Caguas, Puerto Rico. The Company acquired his new 10-year $82 million mortgage from Banco Popular de Puerto Rico. New loans can be prepaid after 5 years with no penalties or deferment charges.
A previous CMBS loan was amended in 2020, providing us with a $72.5 million discounted payoff option. As a result of exercising the discounted repayment option, the Company expects to record a gain on extinguishment of debt of approximately $43 million in the third quarter of 2023. The previous loan had a book value of $117 million and an interest rate of 4.43%. Scheduled to expire in February 2026.
“We are delighted to be partnering again with Banco Popular, the island’s leading bank, as we continue the transformation of Las Catalinas Mall to drive long-term growth for this property,” said Chairman and Chief Executive Officer. Jeff Olson said. “This refinancing has significantly reduced outstanding debt on this property, highlighting the benefits of our secured debt strategy.”
The company reiterated its 2023 FFO adjusted guidance of $1.16 to $1.19 per share.
About Urban Edge Properties
Urban Edge Properties is a New York Stock Exchange-listed real estate investment trust focused primarily on the ownership, management, acquisition, development and redevelopment of retail real estate in urban communities within the corridor from Washington, DC to Boston. I’m putting Urban Edge owns 76 properties with a total leasable area of 17.2 million square feet.
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