UDR (BSP:U1DR34) Interest Coverage

: 1.45 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. UDR's Operating Income for the three months ended in Dec. 2023 was R$337 Mil. UDR's Interest Expense for the three months ended in Dec. 2023 was R$-232 Mil. UDR's interest coverage for the quarter that ended in Dec. 2023 was 1.45. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. UDR Inc interest coverage is 1.56, which is low.

The historical rank and industry rank for UDR's Interest Coverage or its related term are showing as below:

BSP:U1DR34' s Interest Coverage Range Over the Past 10 Years
Min: 0.65 Med: 1.38 Max: 1.64
Current: 1.56

BSP:U1DR34's Interest Coverage is ranked worse than
77.25% of 677 companies
in the REITs industry
Industry Median: 3.01 vs BSP:U1DR34: 1.56

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

UDR Interest Coverage Historical Data

The historical data trend for UDR's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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UDR Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.27

0.65

0.73

1.44

1.59

UDR Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.67	1.61	1.59	1.60	1.45

Competitive Comparison

For the REIT - Residential subindustry, UDR's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

UDR Interest Coverage Distribution

For the REITs industry and Real Estate sector, UDR's Interest Coverage distribution charts can be found below:

* The bar in red indicates where UDR's Interest Coverage falls into.

UDR Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

UDR's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, UDR's Interest Expense was R$-886 Mil. Its Operating Income was R$1,406 Mil. And its Long-Term Debt & Capital Lease Obligation was R$27,301 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1406.012	/	-886.207
	=	1.59

UDR's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, UDR's Interest Expense was R$-232 Mil. Its Operating Income was R$337 Mil. And its Long-Term Debt & Capital Lease Obligation was R$27,301 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	336.7	/	-231.991
	=	1.45

The higher the ratio, the stronger the company's Financial Strength is.

UDR (BSP:U1DR34) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

UDR Interest Coverage Related Terms

Thank you for viewing the detailed overview of UDR's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

UDR (BSP:U1DR34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » UDR Inc (BSP:U1DR34) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

UDR:USA

Address

1745 Shea Center Drive, Suite 200, Highlands Ranch, CO, USA, 80129

Website

https://www.udr.com

UDR is a real estate investment trust that owns, operates, acquires, renovates, develops, redevelops, disposes of, and manages multifamily apartment communities in targeted markets located in the United States. The company has two reportable segments; Same-Store Communities segment represents those communities acquired, developed, and stabilized prior to January 1, 2021, and held as of December 31, 2022, and Non-Mature Communities/Other segment represents those communities that do not meet the criteria to be included in Same-Store Communities, including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed-use properties. The company generates key revenue from Same-Store Communities.

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