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]
UDR (UDR) Up 2.9% Since Last Earnings Report: Can It Continue?