UDR (UDR, Financial) reported higher-than-anticipated revenue for the first quarter, totaling $421.95 million, surpassing the market estimate of $421.04 million. The company attributed this performance to robust demand for its apartment offerings, which led to better-than-expected Same-Store revenue growth.
Tom Toomey, UDR's Chairman and CEO, expressed optimism about the company's strategic direction and operational strength, which have contributed to these positive results. While acknowledging potential economic and political challenges ahead, Toomey remains confident in the company's ability to continue growing Same-Store revenue and funds from operations per share.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for UDR Inc (UDR, Financial) is $46.19 with a high estimate of $50.00 and a low estimate of $40.00. The average target implies an upside of 10.29% from the current price of $41.88. More detailed estimate data can be found on the UDR Inc (UDR) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, UDR Inc's (UDR, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for UDR Inc (UDR, Financial) in one year is $44.70, suggesting a upside of 6.73% from the current price of $41.88. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the UDR Inc (UDR) Summary page.
UDR Key Business Developments
Release Date: February 06, 2025
- FFOA per Share (Q4 2024): $0.63, meeting the midpoint of guidance.
- FFOA per Share (Full-Year 2024): $2.48, meeting the midpoint of guidance.
- Same-Store NOI Growth: Exceeded the high end of guidance range.
- Occupancy Rate (End of 2024): Improved by 50 basis points sequentially from Q3.
- Occupancy Rate (Early 2025): Maintained above 97%, 30 basis points higher than Q4 average.
- 2025 Rent Growth Forecast: 2%.
- FFOA per Share Guidance (2025): $2.45 to $2.55.
- Same-Store Revenue Growth Guidance (2025): 1.25% to 3.25%.
- Same-Store Expense Growth Guidance (2025): 3.5% at the midpoint.
- Debt Maturity (Through 2026): Only 10% of total consolidated debt matures.
- Liquidity: More than $1 billion available.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- UDR Inc (UDR, Financial) achieved the midpoint of its FFOA per share guidance for both the fourth quarter and full-year 2024.
- The company maintained occupancy above 97% in early 2025, which is higher than the fourth-quarter average.
- UDR Inc (UDR) expects economic growth and apartment demand to remain resilient in 2025, with supply pressures abating in the latter half of the year.
- Ongoing investments in innovation, such as the customer experience project, are anticipated to drive incremental NOI growth in excess of the broader market in 2025.
- The company's balance sheet is well-positioned to fully fund capital needs in 2025 and beyond, with more than $1 billion in liquidity and minimal committed capital.
Negative Points
- UDR Inc (UDR) anticipates a slight decrease in FFOA per share for the first quarter of 2025 due to higher expenses and lower debt and preferred equity investment balance.
- The Sunbelt markets are expected to face elevated new supply in 2025, which could limit pricing power.
- The company is facing challenges with rent control in Monterey Peninsula, impacting revenue growth in the West Coast region.
- There are uncertainties related to regulatory risks and macroeconomic factors such as immigration reform that could impact the company's outlook.
- UDR Inc (UDR) has two investments on its watchlist, totaling approximately $40 million, which could represent a risk to FFOA per share if they move to nonaccrual status.
