On July 30, 2024, UDR Inc (UDR, Financial) released its 8-K filing detailing its second quarter 2024 financial results. UDR Inc (UDR) is a real estate investment trust (REIT) that owns, operates, acquires, renovates, develops, redevelops, disposes of, and manages multifamily apartment communities in targeted markets across the United States. The company operates through two segments: Same-Store Communities and Non-Mature Communities/Other.
Performance Overview
UDR Inc (UDR, Financial) reported net income per diluted share of $0.08 for the second quarter of 2024, falling short of the analyst estimate of $0.09. The company also reported total revenue of $415.3 million, slightly above the estimated $414.11 million. Despite the revenue beat, the net income per diluted share represents a significant decline from $1.05 in the same period last year, a 92% decrease.
Financial Achievements and Challenges
UDR Inc (UDR, Financial) achieved Funds from Operations (FFO) per diluted share of $0.60, which is within the company's guidance range of $0.60 to $0.62 but slightly below the $0.63 reported in the second quarter of 2023. The company also reported FFO as Adjusted (FFOA) per diluted share of $0.62, a 2% increase from $0.61 in the prior year period, and Adjusted FFO (AFFO) per diluted share of $0.55, consistent with the previous year.
“Strong employment growth and relative affordability compared to other forms of housing translated into near-record-high absorption for the industry in the first half of the year, leading to results that met the high-end of our FFOA per share expectations,” said Tom Toomey, UDR’s Chairman and CEO.
Income Statement Highlights
For the second quarter, UDR Inc (UDR, Financial) reported a year-over-year revenue increase of $10.8 million, or 2.7%, to $415.3 million. This growth was primarily driven by the Same-Store Communities segment, which saw a 2.5% increase in revenue. However, expenses also rose by 3.7%, leading to a net operating income (NOI) growth of 2.0%.
Balance Sheet and Cash Flow
As of June 30, 2024, UDR Inc (UDR, Financial) had total indebtedness of $5.8 billion, with only $290.3 million maturing through 2025. The company reported liquidity of $946.2 million, combining cash and undrawn credit facilities. This strong liquidity position is crucial for maintaining operational flexibility and funding future growth initiatives.
Development and Capital Markets Activity
During the quarter, UDR Inc (UDR, Financial) completed the development of 101 N. Meridian, a $134.0 million, 330-home apartment community in Tampa, FL. The company had no active development projects at the end of the quarter. Additionally, UDR Inc (UDR) had funded 99.8% of its $484.7 million Developer Capital Program (DCP) commitments, which carry a weighted average return of 10.0%.
Corporate Responsibility and Dividends
UDR Inc (UDR, Financial) was named a 2024 Top Workplaces winner in the Real Estate Industry, reflecting its commitment to fostering an innovative culture. The company also declared a regular quarterly dividend of $0.425 per share, payable on July 31, 2024, marking the 207th consecutive quarterly dividend.
Outlook and Guidance
UDR Inc (UDR, Financial) has updated its full-year 2024 guidance, raising its FFOA per diluted share range to $2.42 to $2.50 from the previous $2.38 to $2.50. The company also adjusted its same-store growth expectations, reflecting its strong market positioning.
“Occupancy, effective new lease rate growth, resident retention, and other income growth all exceeded our second quarter expectations, leading to strong Same-Store revenue results,” said Mike Lacy, UDR’s Senior Vice President of Operations.
For more detailed financial information, readers are encouraged to review the full earnings report and supplemental data available on the Investor Relations section of UDR Inc (UDR, Financial)'s website.
Explore the complete 8-K earnings release (here) from UDR Inc for further details.
