syahrir maulana
Introduction
Lately there have been talks of small-cap stocks breaking out as the market has continued to climb to new highs. And now that interest rates have seen their first cut and are likely to continue going forward, this should
Urban Edge Properties: A Small-Cap REIT Poised To Benefit From Lower Interest Rates
Summary
- Urban Edge Properties, a small-cap REIT focused on shopping centers, is poised for growth due to lower interest rates and strong fundamentals.
- UE's solid performance includes a 13.81% stock increase, impressive occupancy rates, and a conservative payout ratio, indicating potential for future dividend growth.
- The REIT's well-laddered debt profile and strong development pipeline position it for long-term capital appreciation, despite some exposure to at-risk tenants.
- Valued below peers with a forward P/FFO multiple of 15.55x, UE offers nearly 20% upside potential, making it a buy for investors seeking potentially hidden gems.
- Despite market volatility, UE has outperformed the S&P over the past four months, with impressive Q2 results including increased NOI, FFO, and occupancy rates, signaling continued growth.
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Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys dividend investing in quality blue-chip stocks, BDC's, and REITs. I am a buy-and-hold investor who prefers quality over quantity and plans to supplement his retirement income and live off dividends in the next 5-7 years. I aspire to reach and help the hard working, lower and middle class workers build investment portfolios of high quality, dividend-paying companies. I also hope to give investors a new perspective to help them reach financial independence.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.