Company Overview - UDR Inc. is a premier multifamily real estate investment trust (REIT) based in Denver, CO, set to announce its first-quarter 2025 results on April 30, with expectations of revenue growth but unchanged funds from operations (FFO) per share [1][12]. Recent Performance - In the last reported quarter, UDR achieved an FFO as adjusted per share of 63 cents, aligning with the Zacks Consensus Estimate, reflecting year-over-year growth in same-store revenues despite increased property operating and maintenance costs [2][3]. - Over the past four quarters, UDR's FFO as adjusted per share met or surpassed estimates, with an average surprise of 0.41% [3]. Market Conditions - The first quarter of 2025 saw strong apartment demand, with over 138,000 market-rate apartment units absorbed nationally, marking the highest first-quarter demand on record [4]. - Demand exceeded supply, with nearly 577,000 units delivered, indicating a potential peak in the construction cycle [5]. - Occupancy rates rose to 95.2% in March, the highest since October 2022, and effective rents increased by 0.75% in March and 1.1% year-over-year, with an average effective rent of $1,848 [6]. Regional Performance - The recovery in the rental market is uneven, with the Midwest and Rust Belt regions showing strong rent gains, while high-supply Sun Belt metros like Austin and Phoenix faced rent cuts but showed monthly growth in March [7]. Strategic Focus - UDR maintains a geographically diversified portfolio of A/B quality properties and is focused on enhancing technology and operational efficiency through its Next Generation Operating Platform [8]. - A solid balance sheet supports UDR's ability to pursue growth opportunities, although elevated rental unit supply in certain markets has increased competition and affected rent growth [9]. Projections and Estimates - UDR's first-quarter 2025 revenue is estimated at $421.73 million, reflecting a 2.44% year-over-year increase, with same-store physical occupancy projected at 97.0% [11]. - The company expects FFO as adjusted per share in the range of 60-62 cents, with the Zacks Consensus Estimate remaining at 61 cents, indicating no change year-over-year [12]. Earnings Prediction - UDR currently has a Zacks Rank of 3 and an Earnings ESP of -0.05%, suggesting no clear prediction of a surprise in FFO per share for the upcoming quarter [13].

Group 1 - UDR's shares have increased by approximately 20% over the past year, benefiting from challenges in home affordability that have supported the rental market [1] - The company's business strategy is focused on legacy markets, which may provide a competitive advantage in the current economic environment [1]

Core Viewpoint - UDR's recent earnings report shows stable performance with slight year-over-year growth in revenues, but challenges from rising expenses. The company has provided guidance for 2025, indicating expectations for continued growth in FFOA and revenues. Financial Performance - UDR reported Q4 2024 FFOA per share of 63 cents, meeting estimates, with total revenues of $422.7 million, a 2.3% increase year-over-year [2][4] - Full-year 2024 FFOA was $2.48 per share, slightly above the previous year, with rental income reaching $1.66 billion, a 2.6% year-over-year improvement [4] - Same-store revenues increased by 2.5% year-over-year, while same-store expenses rose by 3.4% [5] Expense Analysis - Property operating and maintenance expenses increased by 5.4% to $72.2 million, and interest expenses rose by 4.8% to $49.6 million [6] - The same-store effective blended lease rate declined by 0.5%, but physical occupancy remained stable at 96.8% [5] Balance Sheet Position - As of December 31, 2024, UDR had $1.1 billion in liquidity and total debt of $5.8 billion, with only 9.7% maturing through 2026 [7] - The net debt-to-EBITDA ratio improved to 5.5X from 5.6X in the previous quarter [7] 2025 Guidance - UDR expects Q1 2025 FFOA per share between 60-62 cents and full-year FFOA in the range of $2.45-$2.55 [9] - Projected growth rates for same-store revenues are between 1.25-3.25%, with same-store expenses expected to grow between 2.75% and 4.25% [10] Market Outlook - Estimates for UDR have been trending upward, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [13] - UDR's overall VGM Score is D, reflecting subpar growth and value metrics, although it has a better momentum score of B [12]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported FFOA per share of $0.63 and full year FFOA per share of $2.48, achieving the midpoint of previously provided guidance [11][15] - Same-store NOI growth exceeded the high end of guidance, with occupancy improving by 50 basis points sequentially compared to Q3 2024 [15][16] - The company maintained occupancy above 97% in early 2025, approximately 30 basis points higher than the Q4 average [16] Business Line Data and Key Metrics Changes - The company shifted to an occupancy-focused strategy, resulting in slightly lower blended lease rate growth but maximizing NOI for 2024 [15][16] - New lease rate growth has bottomed out, while renewal lease rate growth remains healthy in the mid-4% range [17] Market Data and Key Metrics Changes - The 2025 rental forecast is set at 2%, informed by economic factors such as GDP, job and wage growth, and a declining homeownership rate due to high mortgage rates [18][20] - The Sunbelt markets are expected to face new supply deliveries of approximately 4% of existing inventory, which is double that of coastal markets [26] Company Strategy and Development Direction - The company plans to continue utilizing various sources of capital, including joint ventures, to pursue external growth opportunities despite elevated capital costs [12][50] - Ongoing investments in innovation, particularly in customer experience, are expected to drive incremental NOI growth exceeding broader market trends in 2025 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in economic growth and apartment demand remaining resilient in 2025, with supply pressures expected to ease in the latter half of the year [12][20] - The company anticipates same-store revenue growth of 1.25% to 3.25% for 2025, with a midpoint of 2.25% [43] Other Important Information - The company has a strong balance sheet with over $1 billion in liquidity and only 10% of total consolidated debt maturing through 2026, reducing refinancing risk [33][32] - The company is actively seeking to fill the CFO position following Joe Fisher's transition to Chief Investment Officer [9][13] Q&A Session Summary Question: Can you provide insights on blended rate growth trends across different markets? - Management indicated that blended rate growth is expected to be around 1.4% to 1.8% in the first half of 2025, increasing to about 2.8% to 3.2% in the second half [56][57] Question: What is the focus on investments given the guidance for being a net seller this year? - Management clarified that being a net seller is a timing issue related to sales from the previous year and emphasized an opportunistic approach to capital deployment [64][66] Question: Where do concessions currently stand and what is the outlook? - Concessions are currently around one week, with expectations to decrease further as the company focuses on driving rents up [72] Question: Can you discuss the rationale behind the new CIO role and any changes in capital allocation strategy? - Management highlighted the importance of fresh perspectives and career advancement opportunities within the team, indicating that the capital allocation strategy will remain focused on generating shareholder value [75][78] Question: What are the expectations for other income growth in the coming years? - Management expects continued growth in other income, driven by initiatives such as Wi-Fi rollouts and improved customer experience, with about 60% of the projected growth already secured [82][84]

One Upland Boston, MA FEBRUARY 2024 Opening cloors to the future DISCLAIMER AND FORWARD-LOOKING STATEMENTS Certain statements made in this presentation may constitute "forward-looking statements." Words such as "expects," "intends," "believes," "anticipates," "plans," "likely," "will," "seeks," "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts ...

Core Insights - UDR reported revenue of $420.44 million for the quarter ended December 2024, reflecting a 2.3% increase year-over-year, but a slight miss of 0.02% against the Zacks Consensus Estimate of $420.52 million [1] - The company's EPS for the quarter was $0.63, significantly higher than $0.10 in the same quarter last year, aligning with the consensus estimate [1] Financial Performance - Average Physical Occupancy stood at 96.6%, matching the estimates from four analysts [4] - Rental income was reported at $420.44 million, exceeding the average estimate of $419.14 million from eight analysts, marking a 2.3% increase year-over-year [4] - Revenue from joint venture management and other fees was $2.29 million, slightly above the average estimate of $2.05 million, but represented a 3.8% decline year-over-year [4] - Net Earnings Per Share (Diluted) was reported at $0.02, below the average estimate of $0.06 from eight analysts [4] Market Performance - UDR shares have returned +1.5% over the past month, compared to a +1.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - UDR reported quarterly funds from operations (FFO) of $0.63 per share, matching the Zacks Consensus Estimate and remaining unchanged from the previous year [1] - The company posted revenues of $420.44 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.02% and showing an increase from $410.89 million year-over-year [2] - UDR shares have underperformed the market, losing about 3.9% since the beginning of the year compared to the S&P 500's gain of 2.7% [3] 分组2 - The current consensus FFO estimate for the upcoming quarter is $0.61 on revenues of $422.55 million, while the estimate for the current fiscal year is $2.51 on revenues of $1.72 billion [7] - The Zacks Industry Rank for REIT and Equity Trust - Residential is currently in the bottom 16% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Financial Performance - UDR, Inc. reported a net loss of $5,044 thousand for Q4 2024, compared to a net income of $32,986 thousand in Q4 2023[2]. - Funds from Operations (FFO) per diluted share was $0.48 for Q4 2024, down from $0.61 in Q4 2023[8]. - Total revenues for Q4 2024 were $422,728 thousand, an increase from $413,273 thousand in Q4 2023, representing a growth of 2.8%[5]. - Same-store revenue growth was 2.5% for Q4 2024, while expense growth was 3.4%, leading to a Net Operating Income (NOI) growth of 2.1%[2]. - Net income for the quarter ended December 31, 2024, was a loss of $5,523,000, with consolidated EBITDAre adjusted for non-recurring items at $262,734,000[25]. - Total revenues for the quarter were $416,252,000, showing a sequential increase from the previous quarter[28]. - Total revenues for Q4 2024 reached $400.944 million, a 2.5% increase from $391.112 million in Q4 2023[49]. - Net operating income for Q4 2024 was $277.479 million, reflecting a 2.1% growth compared to $271.757 million in Q4 2023[49]. - Total revenues for the year-to-date (YTD) 2024 reached $1,524,774,000, representing a 2.3% increase compared to YTD 2023[61]. - Net operating income (NOI) for YTD 2024 was $1,052,388,000, reflecting a 1.5% growth from the previous year[61]. Occupancy and Revenue Metrics - The physical occupancy rate remained stable at 96.8% for both Q4 2024 and Q4 2023[2]. - Same-store communities generated revenues of $400,944,000 for the quarter, with a net operating income of $277,479,000, reflecting an operating margin of 69.2%[28]. - The company reported a total of 55,696 homes, with 54,215 classified as same-store communities, achieving a weighted average physical occupancy of 96.6%[28]. - Total revenue per occupied home increased by 2.5% year-over-year, reaching $2,546[46]. - Total revenue per occupied home for Q4 2024 was $2,546, a slight increase of 0.1% from $2,544 in Q3 2024[52]. - The average physical occupancy rate across all regions improved to 96.8% in YTD 2024, up from 96.7% in YTD 2023[58]. - Total revenue per occupied home increased by 2.2% to $2,554 in YTD 2024 compared to YTD 2023[58]. Debt and Financial Ratios - UDR's consolidated debt as a percentage of total assets was 32.7% in Q4 2024, slightly down from 32.9% in Q4 2023[2]. - The company reported a consolidated interest coverage ratio of 5.1x for Q4 2024, consistent with Q4 2023[2]. - Total debt stood at $5,826,965,000, with a net debt of $5,825,639,000, resulting in a consolidated Net Debt-to-EBITDAre ratio of 5.5x[25]. - The company maintained compliance with all debt covenants, including a maximum leverage ratio of 31.3%, well below the required 60.0%[25]. Guidance and Future Outlook - The company provided guidance for Q1 2025 FFO per share between $0.60 to $0.62 and full-year 2025 FFO per share between $2.45 to $2.55[2]. - Forecasted net income per diluted share for full-year 2025 is projected to be between $0.56 and $0.66[131]. - Forecasted FFO (Funds From Operations) per diluted share and unit for full-year 2025 is expected to range from $2.45 to $2.55[131]. - Future outlook remains positive with expectations for continued revenue growth across major markets, supported by stable occupancy rates[51]. Capital Expenditures and Investments - Total capital expenditures for the twelve months ended December 31, 2024, amounted to $191.4 million, averaging $3,460 per home[87]. - The company plans to allocate $220 to $260 million for capital expenditures in full-year 2025[91]. - The total debt and preferred equity program amounts to $529.2 million, with a weighted average return rate of 9.9%[75]. - The company recorded a loss from investments of $25.8 million during the period[77]. Regional Performance - The West Region contributed 30.5% of the same-store NOI, with Orange County, CA leading at 10.9%[42]. - The Northeast Region's same-store homes totaled 6,612, with a physical occupancy rate of 96.7%[46]. - The Mid-Atlantic Region reported a 4.5% increase in same-store revenues, reaching $83.008 million in Q4 2024, compared to $79.420 million in Q4 2023[49]. - The Southeast Region reported a 0.7% increase in same-store revenues, totaling $55.049 million in Q4 2024[55]. - The Southwest Region saw a decline in same-store revenues by 0.7%, with total revenues of $147,706,000 for YTD 2024[61]. Operational Efficiency - Year-over-year, same-store operating expenses increased by 3.4% to $123,465,000, with personnel costs rising by 3.8%[32]. - The company reported a provision for loan loss of $37,271,000 during the quarter[25]. - The company reported a decrease in expenses by 1.9% to $123.465 million in Q4 2024 compared to Q3 2024[55]. Ratings and Compliance - The company has a stable outlook from Moody's Investors Service with a Baa1 rating and from S&P Global Ratings with a BBB+ rating[25]. - The company disclaims any obligation to update or revise forward-looking statements unless required by U.S. securities laws[133].

Company Overview - UDR Inc. is a premier multifamily real estate investment trust (REIT) set to announce its fourth-quarter and full-year 2024 results on February 5, 2025, with expectations of revenue growth but unchanged funds from operations (FFO) per share [1] - The company reported an FFO as adjusted per share of 62 cents in the last quarter, aligning with the Zacks Consensus Estimate, driven by revenue increases from same-store communities and prior-year acquisitions [2][3] Market Conditions - The U.S. apartment market demand reached its highest level in nearly three years in Q4 2024, absorbing 230,819 market-rate units, while 155,408 new units were delivered [4] - U.S. apartment occupancy increased to 94.8% in December, with a 0.7% annual change, although rent growth was stagnant, with a 0.5% increase in 2024 and a monthly effective rent change down by 0.3% [5] Financial Projections - UDR expects FFO as adjusted per share to be 63 cents for Q4 2024 and $2.48 for the full year, both midpoints of previously provided guidance [8] - Same-store revenue growth is projected at 2.5% for Q4 2024 and 2.3% for the full year, while same-store expenses are expected to rise by 3.4% and 4.3%, respectively [9] Operational Insights - UDR owns a diverse mix of A/B quality properties across major U.S. regions and is investing in technology to optimize cost management and expand margins [6] - The company has entered agreements to sell two apartment communities for a total of $211.5 million, expected to close in Q1 2025 [11] Earnings Estimates - The Zacks Consensus Estimate for UDR's quarterly revenues is $420.52 million, indicating a 2.34% year-over-year rise, while the FFO per share estimate remains unchanged year-over-year [12][13] - UDR currently holds a Zacks Rank of 4 (Sell) with an Earnings ESP of +0.18%, indicating no clear prediction of a surprise in FFO per share for the upcoming earnings season [14]

Core Insights - UDR, Inc. has partnered with Funnel to implement a comprehensive suite of AI-infused multifamily CRM products across its nearly 60,000-unit portfolio, marking a significant step in multifamily centralization [1][2][6] Company Overview - UDR, Inc. is recognized as the 14th-largest multifamily owner-operator in the U.S. and has a history of pioneering centralization in the multifamily sector [1][4] - As of September 30, 2024, UDR owned or had an ownership position in 60,123 apartment homes, demonstrating its substantial presence in the market [8] Partnership Details - The partnership with Funnel includes the adoption of renter-centric CRM, AI solutions, fraud prevention, and other tools aimed at enhancing operational efficiency and communication [2][6] - Funnel's CEO highlighted the significance of this partnership, likening it to a "Super Bowl" moment, emphasizing UDR's leadership in technology and operations [5] Strategic Goals - UDR aims to transition from multiple disparate solutions to a unified omnichannel communication platform, which will streamline workflows and improve team efficiency [6] - The collaboration is expected to set a new standard for multifamily centralization, enhancing the overall experience for operators, onsite teams, and renters [6][7] Industry Impact - Funnel has established itself as a leading technology provider in the multifamily sector, partnering with 9 of the top 25 NMHC owners and operators, and is focused on driving transformation in the industry [5][7]