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]
UDR Readies to Report Q4 Earnings: What's in the Offing for the Stock?