UDR(US:UDR)2025-10-29 20:19Financial Performance - Net income attributable to UDR, Inc. for Q3 2025 was $40,409,000, an increase from $22,597,000 in Q3 2024, representing an 79% year-over-year growth[4] - Funds from Operations (FFO) per diluted share for Q3 2025 was $0.62, compared to $0.60 in Q3 2024, reflecting a 3.3% increase[7] - Total revenues for Q3 2025 reached $431,864,000, up from $420,160,000 in Q3 2024, marking a 4% increase[4] - The company reported a year-to-date net income of $154,802,000 for 2025, compared to $94,629,000 for the same period in 2024, indicating a 63% increase[4] - Total revenues for the year-to-date (YTD) 2025 reached $1,223,180,000, reflecting a 2.6% increase compared to $1,192,680,000 in YTD 2024[55] - Net operating income (NOI) for YTD 2025 was $837,725,000, up 2.5% from $817,334,000 in YTD 2024[55] Revenue and Occupancy - Same-store revenue growth for Q3 2025 was 2.6%, with a full-year guidance of 2.20% to 2.60%[2] - Physical occupancy rate stood at 96.6% for Q3 2025, slightly down from 96.9% in Q3 2024[2] - Same-store communities generated revenues of $414,657,000 for the quarter, reflecting a year-over-year increase from $404,241,000[26] - Total net operating income for the quarter was $292,135,000, up from $281,399,000 in the same quarter last year[26] - The average physical occupancy rate across all regions was 96.6%, showing a 0.3% increase from the previous year[41] - Total physical occupancy across all regions was reported at 96.2% for Q3 2025[63] Debt and Equity - Consolidated debt as a percentage of total assets decreased to 32.6% in Q3 2025 from 32.9% in Q3 2024[2] - Total liabilities increased slightly to $6,450,484 from $6,436,691, reflecting a marginal rise of 0.2%[10] - Total stockholders' equity decreased to $3,274,966, down from $3,443,205, indicating a decline of approximately 4.9%[10] - Total debt stood at $5,849,396 with a weighted average interest rate of 3.35%[15] - The company has a $1.3 billion line of credit with no borrowings outstanding as of September 30, 2025[19] Capital Expenditures and Investments - The company plans to issue up to a maximum aggregate amount of $700 million under its unsecured commercial paper program[17] - The company recorded a total investment of $72.55 million in stabilized communities with a weighted average return rate of 10.8%[72] - The company expects FFO per common share and unit for Q4 2025 to be in the range of $0.63 to $0.65, and for the full year 2025, it is projected to be $2.44 to $2.46[79] - Capital expenditures for recurring, NOI enhancing, and redevelopment are expected to be between $235 million and $245 million for the full year 2025[79] Operational Efficiency - The company’s physical occupancy rate is a key metric, defined as the number of occupied homes divided by the total homes available at a community, reflecting operational efficiency[110] - The company emphasizes that FFO is a useful metric for evaluating property acquisitions and operating performance, providing a consistent comparison across time periods[101] - Year-over-year same-store operating expenses increased by 3.1% to $131,824,000, driven by higher personnel and utility costs[29] Regional Performance - The West Region contributed 31.4% of the same-store net operating income, with Orange County, CA leading at 10.9%[37] - The Northeast Region accounted for 19.5% of the same-store net operating income, with Boston, MA at 11.6%[37] - The Southeast Region's same-store net operating income was 13.2%, with Tampa, FL contributing 5.6%[37] - The Southwest Region's same-store net operating income was 10.3%, with Dallas, TX at 8.3%[37] Future Outlook - The company anticipates adding 893 homes to the same-store portfolio by the end of 2026[36] - The company continues to focus on market expansion and enhancing operational efficiency to drive future growth[45]