Barclays has increased its price target for UDR (UDR, Financial) to $51, up from the previous target of $48. The decision to raise the target comes after UDR's first-quarter results surpassed expectations. Barclays continues to maintain an Overweight rating on the company's shares, reflecting confidence in UDR's financial performance and growth prospects.
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 $46.29 with a high estimate of $51.00 and a low estimate of $41.00. The average target implies an upside of 10.13% from the current price of $42.03. 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 $44.26, suggesting a upside of 5.31% from the current price of $42.03. 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: May 01, 2025
- Same-Store Revenue Growth: 2.6% year-over-year for Q1 2025.
- Same-Store NOI Growth: 2.8% year-over-year for Q1 2025.
- Blended Lease Rate Growth: 0.9%, with renewal rate growth of 4.5% and new lease rate growth of approximately -3%.
- Resident Turnover: 32% annualized, over 300 basis points below the prior year period.
- Occupancy Rate: Averaged 97.2% in Q1 2025.
- Same-Store Expense Growth: 2.3% year-over-year for Q1 2025.
- FFO as Adjusted per Share: $0.61, achieving the midpoint of guidance.
- Liquidity: Over $1 billion as of March 31, 2025.
- Debt-to-Enterprise Value: 27% at quarter end.
- Net Debt-to-EBITDA RE: 5.7 times.
- Weighted Average Interest Rate: 3.4%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- UDR Inc (UDR, Financial) reported better-than-expected first-quarter same-store revenue and NOI growth, driven by lower resident turnover, higher occupancy, and improving pricing power.
- The company reaffirmed its full-year 2025 guidance, indicating confidence in its operational strategies and market conditions.
- UDR Inc (UDR) continues to innovate with value-add initiatives, contributing to consistent high single-digit growth and enhancing same-store NOI growth.
- The company maintains a strong investment-grade balance sheet with substantial liquidity, capable of funding capital needs through 2025 and beyond.
- UDR Inc (UDR) is experiencing strong demand and favorable supply dynamics, with apartment absorption reaching a three-decade high and new supply slowing, supporting future rent growth.
Negative Points
- UDR Inc (UDR) faces macroeconomic and geopolitical uncertainties that could impact interest rates, the economy, and the employment market.
- The Sunbelt markets, comprising 25% of UDR's NOI, are lagging due to elevated levels of new supply, affecting blended lease rate growth negatively.
- The company is cautious about potential volatility affecting the macroeconomic environment and pricing for apartment homes.
- UDR Inc (UDR) has experienced a modest sequential decline in FFO as adjusted per share due to seasonal trends and lower debt and preferred equity investment balances.
- The company is dealing with challenges in certain urban areas, such as San Francisco and Philadelphia, which have not fully recovered post-COVID, impacting some investments.
