UDR's Q2 FFOA & Revenues Beat Estimates, Same-Store NOI Grows

Core Insights - UDR Inc. reported second-quarter 2025 funds from operations as adjusted (FFOA) per share of 64 cents, exceeding the Zacks Consensus Estimate of 62 cents and up from 62 cents in the prior-year quarter [1][8] - The company experienced year-over-year growth in same-store net operating income (NOI) driven by higher effective blended lease rates and raised its 2025 FFOA per share guidance [1][8] Financial Performance - Quarterly revenues from rental income reached $423.0 million, surpassing the Zacks Consensus Estimate of $422.2 million, with total revenues at $425.4 million, both showing over 2% growth year-over-year [2] - Same-store revenues increased by 2.5% year-over-year, while same-store expenses rose by 1.7%, leading to a 2.9% improvement in same-store NOI [3][8] - The effective blended lease rate grew by 2.8% during the quarter, with a weighted average same-store physical occupancy of 96.9%, which increased by 10 basis points year-over-year [3] Balance Sheet and Liquidity - As of June 30, 2025, UDR had $1.1 billion in liquidity, with total debt at $5.8 billion, of which only $531.8 million (9.6%) is maturing through 2026 [4] - The net debt-to-EBITDA ratio improved to 5.5X in the second quarter, down from 5.7X in the previous quarter [4] Portfolio Activity - UDR acquired the developer's equity interest in Broadridge, a 478-unit apartment community in Philadelphia, PA, during the second quarter [6] Guidance - The company raised its full-year 2025 FFOA per share guidance midpoint to $2.52 from $2.50, with expectations for third-quarter 2025 FFOA per share in the range of 62-64 cents [7][9] - For 2025, UDR projects same-store revenue growth rates between 1.75-3.25%, same-store expenses between 2.50% and 3.50%, and same-store NOI between 1.50% and 3.00% [9]