UDR(US:UDR) ZACKS·2026-02-10 15:55Core Insights - UDR Inc. reported fourth-quarter 2025 funds from operations as adjusted (FFOA) per share of 64 cents, meeting the Zacks Consensus Estimate and showing a year-over-year increase from 63 cents [1][10] - The company experienced year-over-year growth in same-store net operating income (NOI) driven by higher occupancy rates [1][10] Financial Performance - Quarterly revenues from rental income were $428.8 million, slightly missing the Zacks Consensus Estimate of $429.5 million, while total revenues reached $433.1 million, reflecting a 2% increase in rental income and a 2.5% increase in total revenues year-over-year [2] - For the full year 2025, FFOA was $2.54 per share, in line with the consensus estimate, and improved by 2.4% compared to the previous year [3] - Full-year revenues from rental income totaled $1.70 billion, marking a 2.3% year-over-year increase and aligning with the consensus estimate [3] Operational Metrics - In the fourth quarter, same-store revenues increased by 1.8% year-over-year, while same-store expenses rose by 2%, leading to a 1.7% improvement in same-store NOI [4] - The weighted average same-store physical occupancy was 96.9%, up 10 basis points year-over-year and 20 basis points sequentially [5] Balance Sheet and Liquidity - As of December 31, 2025, UDR had $905 million in liquidity, with total debt at $5.8 billion, of which only $356.7 million (6.7%) is maturing through 2026 [6] - The net debt-to-EBITDA ratio remained stable at 5.5X, with a weighted average interest rate of 3.4% and an average maturity of 4.3 years [6] Shareholder Actions - During the fourth quarter, UDR repurchased approximately 2.6 million shares of its common stock for a total cost of $92.8 million [7] Portfolio Activity - UDR acquired The Enclave at Potomac Club, a community with 406 apartment units in suburban Metropolitan Washington, D.C., for around $147.7 million [8] Guidance for 2026 - The company expects first-quarter 2026 FFOA per share to be in the range of 61-63 cents, with a full-year estimate of $2.47-$2.57 per share [11] - Projected growth rates for same-store revenues are between 0.25-2.25%, same-store expenses between 3.00-4.50%, and same-store NOI between -1.00% to -1.25% for 2026 [11]