UDR(US:UDR)2026-02-09 21:20Financial Performance - Net income attributable to UDR, Inc. for Q4 2025 was $222,902,000, compared to a net loss of $5,044,000 in Q4 2024[2] - Funds from Operations (FFO) per diluted share for Q4 2025 was $0.62, an increase from $0.48 in Q4 2024[10] - Total revenues for Q4 2025 reached $433,106,000, up from $422,728,000 in Q4 2024, representing a year-over-year growth of 2.0%[8] - Same-store revenue growth for Q4 2025 was 1.8%, with expense growth at 2.0%, leading to a Net Operating Income (NOI) growth of 1.7%[2] - The company declared a dividend of $0.43 per share for Q4 2025, compared to $0.425 in Q4 2024[10] - Total revenues for the year-to-date (YTD) 2025 reached $1,610.7 million, reflecting a 2.4% increase compared to $1,573.5 million in YTD 2024[60] - Net operating income (NOI) for YTD 2025 was $1,104.2 million, up 2.3% from $1,079.9 million in YTD 2024[60] Occupancy and Assets - The physical occupancy rate remained stable at 96.9% for Q4 2025[2] - The weighted average physical occupancy for same-store communities was 96.9% in Q4 2025, slightly up from 96.7% in Q3 2025[30] - The same-store physical occupancy rate for the total portfolio was 96.9% in YTD 2025, an increase of 0.2% from YTD 2024[56] - UDR, Inc. completed a total of 60,641 homes across 187 communities by the end of Q4 2025[6] - The company has 300 homes under development, with a total of 60,941 homes and communities at the quarter-end[35] - The average number of homes owned at the end of 2025 was 55,200[82] Debt and Liabilities - The consolidated debt as a percentage of total assets was 32.4% for Q4 2025, slightly down from 32.7% in Q4 2024[2] - Total liabilities increased slightly from $6,436,691,000 in 2024 to $6,456,911,000 in 2025, an increase of approximately 0.31%[13] - Unsecured debt rose from $4,687,634,000 in 2024 to $4,860,189,000 in 2025, marking an increase of about 3.68%[13] - Total debt amounted to $5,835,855,000, with 88.5% being fixed rate and 11.5% floating rate[19] - The company has a total of $964,475,000 in secured debt, which is 16.5% of total debt[19] - The company maintained a maximum leverage ratio of 31.5%, well below the required 60.0%[26] Revenue and Expenses - Total operating expenses for the quarter were $132,993, with same-store operating expenses at $126,910, reflecting a 2.0% year-over-year increase[30] - The company reported a total revenue of $424,020 for the quarter, with same-store communities contributing $407,967[30] - Total revenues for the same-store segment increased by 1.8% to $407.967 million in Q4 2025 compared to Q4 2024[48] - The company reported a 4.8% increase in expenses for the same-store segment, totaling $126.910 million in Q4 2025 compared to $124.435 million in Q4 2024[48] Guidance and Future Outlook - UDR, Inc. provided guidance for Q1 2026 with an expected FFO per share range of $0.61 to $0.63 and a full-year 2026 range of $2.47 to $2.57[2] - Full-Year 2026 guidance for FFO per common share and unit is projected to be between $2.47 and $2.57[86] - Full-Year 2026 guidance for same-store revenue growth is estimated to be between 0.25% and 2.25%[86] - The company plans to dispose of assets valued between $300 million and $600 million in Full-Year 2026[86] - The company plans to focus on market expansion and new product development to enhance future growth prospects[56] Regional Performance - The West Region contributed 32.0% of the same-store portfolio, with Orange County, CA, generating a revenue per occupied home of $3,210, a 3.1% increase from the previous year[41] - The Northeast Region accounted for 19.8% of the same-store portfolio, with Boston, MA, achieving a revenue per occupied home of $3,359, reflecting a 2.1% year-over-year growth[45] - The Mid-Atlantic Region's total revenue per occupied home was $2,407, with Metropolitan DC contributing 16.3% to the same-store portfolio[41] - The Southeast Region's total revenue per occupied home was $1,962, with Tampa, FL, showing a slight decline of 0.3% compared to the previous year[45] - The Southwest Region reported a total revenue per occupied home of $1,756, with Dallas, TX, experiencing a 1.5% decrease year-over-year[45] Risks and Challenges - The company acknowledges that forward-looking statements involve estimates and projections that are subject to risks and uncertainties[128] - Factors affecting actual results include general market conditions, occupancy levels, and rental rates[128] - The impact of inflation and capital market stability is highlighted as a significant risk[128] - Competition and pricing pressures are noted as potential challenges for future performance[128] - Development and construction risks may impact profitability and expected outcomes[128] - Joint ventures and investment performance are subject to risks that may not meet expectations[128]