UDR(UDR)2024-07-30 20:18Financial Performance - For Q2 2024, UDR reported a net income per diluted share of $0.08, a decrease of 92% compared to $1.05 in Q2 2023[6]. - Funds from Operations (FFO) per diluted share was $0.60, down 5% from $0.63 in the prior year[7]. - Adjusted FFO (AFFO) per diluted share remained stable at $0.55, unchanged from Q2 2023[7]. - The company reported a net income attributable to common stockholders of $27.7 million for Q2 2024, with diluted earnings per share of $0.08[44]. - Net income attributable to common stockholders for the three months ended June 30, 2024, was $27.67 million, a decrease of 92% compared to $346.32 million in the same period of 2023[50]. - The net income for the six months ended June 30, 2024, was $77.32 million, compared to $403.11 million for the same period in 2023, indicating a significant decline[47]. Revenue and Growth - Total revenue increased by $10.8 million year-over-year, or 2.7%, reaching $415.3 million, primarily driven by Same-Store community growth[12]. - Total revenues for the three months ended June 30, 2024, increased to $415.32 million, up from $404.55 million in the same period of 2023, representing a growth of 2%[47]. - Total revenues for Q2 2024 reached $388.162 million, a 2.5% increase from $378.535 million in Q2 2023[88]. - Total Same-Store revenues increased by 2.8% to $764.8 million in YTD 2024 compared to $743.6 million in YTD 2023[100]. Operating Metrics - Same-Store revenue growth for Q2 2024 was 2.5% compared to Q2 2023, while expenses grew by 3.7%[8]. - UDR's Same-Store Net Operating Income (NOI) grew by 2.0% year-over-year in Q2 2024[8]. - The operating margin for same-store communities improved to 69.2%, up from 68.5% in the prior quarter[70]. - Net operating income for Q2 2024 was $268.469 million, up 2.0% from $263.103 million in Q2 2023[88]. Occupancy and Leasing - Weighted average physical occupancy for Q2 2024 was 96.8%, a slight decrease from 97.1% in Q1 2024[14]. - The physical occupancy rate for YTD 2024 was 97.0%, with a slight increase of 0.5% in occupancy compared to the previous year[22]. - The average physical occupancy rate across all markets is 96.8%, showing a slight increase from 96.6% in the previous year[85]. - Effective renewal lease rate growth for July and August increased to the range of 4.5% to 5.0%[13]. Development and Investments - UDR completed the development of a $134.0 million, 330-home apartment community in Tampa, FL during the quarter[9]. - The company funded $483.8 million, or 99.8%, of its Developer Capital Program commitments, with a contractual weighted average return of 10.0%[25]. - The company has a total of 6,815 homes under the Developer Capital Program, with 5,618 homes in preferred equity investments[113]. - Total land holdings consist of 8 parcels with a basis of $245.8 million, indicating ongoing investment in future developments[106]. Debt and Liabilities - As of June 30, 2024, the company's total indebtedness was $5.8 billion, with only $290.3 million maturing through 2025, representing 5.4% of total consolidated debt[28]. - The weighted average interest rate increased to 3.38% in Q2 2024 from 3.21% in Q2 2023[30]. - The company maintained compliance with all debt covenants, including a maximum leverage ratio of 31.3%, well below the required 60.0%[67]. - The weighted average years to maturity for total debt is 5.2 years, indicating a manageable debt profile[59]. Guidance and Forecast - The company raised its full-year 2024 FFOA per diluted share guidance to a range of $2.42 to $2.50, reflecting strong market positioning[10]. - Full-Year 2024 guidance for FFO per common share is projected to be between $2.38 and $2.46, reflecting an increase from prior guidance[125]. - The company anticipates a revenue growth of 1.00% to 3.00% for the Full-Year 2024, compared to a prior range of 0.00% to 3.00%[125]. - Forecasted net income per diluted share for full-year 2024 is projected to be between $0.35 and $0.43[166]. Risks and Market Conditions - The company highlights potential risks including unfavorable changes in the apartment market and rising interest rates[169]. - The management team emphasizes the importance of market conditions and competition in achieving projected results[169]. - The company does not commit to updating forward-looking statements unless required by U.S. securities laws[169].