EARNINGS RELEASE & SUPPLEMENTAL 2025 FINANCIAL INFORMATION Q1 | 2025 DEVELOPMENT 3099 Iowa | Riverside, CA Joe Fisher, President, CFO, & CIO - 720.283.6139 Trent Trujillo, Investor Relations - 720.283.6135 UDR, INC. | UDR.COM UDR First Quarter 2025 Earnings Supplement | 1Q 2025 Earnings Press Release Pages 1-6 | | | --- | --- | | Company | Financial Highlights | | Consolidated Statements of Operations Attachment 1 | Funds From Operations (FFO), FFO as Adjusted, AFFO Attachment 2 | | Consolidated Balance She ...

Financial Data and Key Metrics Changes - Core FFO per share for Q1 2025 was $0.27, flat compared to the prior year, reflecting the impact of the final stages of the portfolio optimization and deleveraging strategy completed last year [15][19] - Same store NOI grew by 2.7%, driven by a 2.3% increase in same store revenue and a 1.6% increase in operating expenses compared to the prior year [15][19] - Average occupancy increased by 100 basis points year over year, contributing to the same store NOI growth [8][15] Business Line Data and Key Metrics Changes - Value add renovations completed during the quarter included 275 units with a weighted average return on investment of 16.2% [8] - The company has 28 communities with over 4,600 units in the ongoing value add program, expecting to complete between 505,000 units this year [8] - The company sold its final asset in Birmingham, Alabama for $111 million and acquired a 280-unit community in Indianapolis for $59.5 million at a 5.6% economic cap rate [9][15] Market Data and Key Metrics Changes - In 2025, new apartment deliveries are expected to decrease to 32,000 units, representing only 2% of existing supply, down from 6.1% in 2020 [11][64] - The company anticipates positive net absorption of 8.5% in its submarkets, significantly higher than the national average of 1.5% [12][65] - Homeownership costs in the top 10 markets are 94% higher than the company's average monthly rent, indicating strong demand for rental properties [12] Company Strategy and Development Direction - The company is focused on executing its long-term investment strategy, with a strong acquisition pipeline and ample liquidity for accretive investments [10][18] - The company expects to continue benefiting from strong demand and significant declines in new supply, leading to ongoing rental rate gains without sacrificing occupancy [13][19] - The company is cautious about macroeconomic uncertainties but remains confident in its market fundamentals [13][19] Management's Comments on Operating Environment and Future Outlook - Management believes that the fundamentals of supply and demand in their markets will continue to dominate operations, with expectations for improving rental rates and occupancy [13][19] - The company is optimistic about the trajectory of leasing spreads improving in the second half of the year due to waning supply pressures [24][30] - Management noted that they have not yet seen significant stress from macroeconomic factors such as tariffs or deportations [25][26] Other Important Information - The company ended the quarter with a net debt to adjusted EBITDA ratio of 6.3 times, with plans to achieve a mid-five ratio by year-end 2025 [18] - The company has nearly $750 million in liquidity available for investments [18] - The company is not expecting to exit any additional markets beyond Birmingham at this time [81] Q&A Session Summary Question: Can you walk through the leasing spreads for the first quarter? - New leases were down 4.6%, while renewals were up 4.8%. The company did not experience the same level of decline in rental rates as some peers due to its predominantly Class B portfolio [22][23] Question: Have you seen any evidence of stress from tariffs or macro uncertainty? - The company has not felt significant effects from tariffs or deportations and has seen a reduction in bad debt [25][26] Question: Can you speak to trends in leasing traffic and conversion? - Demand is up 25% compared to the same period last year, with conversion rates remaining stable [30] Question: What are your expectations for new lease rates and renewals? - The company anticipates positive trends in blended rental rates and expects to see upward momentum in leasing rates as the year progresses [34][35] Question: How are you thinking about the full-year revenue guidance? - The company expects job growth and population growth to remain steady, with a significant drop in new supply contributing to revenue growth [63][64] Question: Can you discuss the impact of insurance renewals on expenses? - The company expects a net decrease in insurance premiums despite initially assuming a 10% increase [73][75]

Financial Data and Key Metrics Changes - The company reported a healthy first quarter with core FFO per share exceeding the midpoint of guidance by $0.05 [4][12] - Same property revenues grew by 3.4% year-over-year, which was 40 basis points ahead of plan [12] - Delinquency improved to 1.3% of scheduled rent compared to 3.9% for the same period last year [5][12] Business Line Data and Key Metrics Changes - The first quarter saw a blended net effective rent growth of 2.8%, with new lease rates improving sequentially from the fourth quarter [5] - New lease rates turned positive in all three major regions, led by Northern California at 1.5%, Seattle at 1.3%, and Southern California at 20 basis points [7] - The turnover rate was notably low at 35%, contributing to stable occupancy levels [6] Market Data and Key Metrics Changes - Total new housing supply delivery as a percentage of stock in 2025 is exceptionally low at only 50 basis points in the Essex markets [9] - Deal volume in the markets was higher in the first quarter compared to the same period last year, totaling $2.5 billion with cap rates in the mid to high 4% range [10] Company Strategy and Development Direction - The company is reallocating into higher rent growth markets and optimizing its operating platform to generate above-market returns [5] - The focus remains on maximizing revenues and generating long-term accretion, with a cautious approach due to macroeconomic uncertainties [8][9] - The company is actively pursuing opportunities to expand in Northern California and is studying other markets for potential investments [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the West Coast multifamily fundamentals being well-positioned for various economic outcomes due to low supply [9][96] - There is a cautious outlook regarding macroeconomic uncertainties impacting business investment and job growth, leading to a decision not to revise guidance upward at this time [8][12] - The labor market remains soft in Los Angeles, affecting pricing power, but there is optimism about recovery as delinquency levels improve [62] Other Important Information - The company has refinanced the majority of its 2025 debt maturities earlier this year, maintaining a strong balance sheet with over $1 billion in available liquidity [17] - The preferred equity portfolio saw around $27 million in redemptions, with expectations for further redemptions later in the year [15][16] Q&A Session Summary Question: Guidance on blended rate growth - Management confirmed that the original guidance included a slight increase in blended rate growth in the second half of the year, and they remain confident in achieving that [20][21] Question: Impact of the tech sector on the portfolio - Management noted that job openings in the top 20 tech companies have remained steady, indicating health in the sector, and they are not seeing signs of weakness [23][24] Question: Occupancy strategy for the second quarter - The occupancy strategy remains consistent, with a focus on pushing rents in Northern California while maintaining occupancy in Southern California due to supply dynamics [30][31] Question: Renewal rates and market tracking - Renewal rates in April were steady, landing in the low fours, consistent with expectations [40] Question: Changes in migration trends - No noticeable changes in international migration trends were reported, but domestic migration to San Francisco and San Mateo has turned positive [102][103]

Financial Data and Key Metrics Changes - The company reported a healthy first quarter with core FFO per share exceeding the midpoint of guidance by $0.05, driven by a consolidated portfolio performance ahead of plan with same property revenues growing 3.4% year-over-year [11][12] - Blended net effective rent growth was 2.8% for the first quarter, with new lease rates improving sequentially from the fourth quarter [4][11] - Delinquency improved to 1.3% of scheduled rent in Los Angeles, down from 3.9% in the same period last year [4][11] Business Line Data and Key Metrics Changes - New lease rates turned positive in all three major regions, led by Northern California at 1.5%, Seattle at 1.3%, and Southern California at 0.2% [5] - The turnover rate was notably low at 35%, contributing to stable occupancy levels [4] - In April, renewal rates landed in the low fours, consistent with plans, while new lease rates remained steady [36][37] Market Data and Key Metrics Changes - Total new housing supply delivery as a percentage of stock in 2025 is exceptionally low at only 50 basis points in Essex markets, expected to moderate throughout the year [7] - Deal volume in the markets was higher in the first quarter compared to the same period last year, totaling $2.5 billion with cap rates in the mid to high 4% range [8] Company Strategy and Development Direction - The company is focused on reallocating capital into higher rent growth markets and optimizing its operating platform to generate above-market returns [3][4] - The company remains cautious about revising guidance due to macroeconomic uncertainties, particularly regarding U.S. and global trade policies [6][12] - The company is actively pursuing opportunities to enhance shareholder accretion while maintaining a disciplined investment strategy [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the West Coast multifamily fundamentals, stating they are well-positioned for a wide range of economic outcomes due to low supply [7][93] - The company noted that while the tech sector's job growth has been steady, it is closely monitoring potential impacts from macroeconomic changes [21][92] - Management highlighted that the labor market remains soft in Los Angeles, affecting pricing power, and emphasized the need for delinquency recovery to improve occupancy and pricing [60][61] Other Important Information - The company has refinanced the majority of its 2025 debt maturities and maintains over $1 billion in available liquidity [15] - The preferred equity portfolio saw around $27 million in redemptions, with expectations for further redemptions in the upcoming quarters [14] Q&A Session Summary Question: Guidance and Rate Growth - The company confirmed that the original guidance included a slight increase in blended rate growth in the second half of the year, and they remain confident in achieving this [17][19] Question: Impact of Tech Sector - Management indicated that job openings in the top 20 tech companies have remained steady, suggesting continued hiring in the sector [20][22] Question: Occupancy Strategy - The company is maintaining its occupancy strategy while pushing rents in Northern California, with a focus on occupancy in Southern California due to supply dynamics [25][27] Question: Renewal Rates - Renewal rates in April were steady, landing in the high threes, consistent with the company's plans [37] Question: Market Conditions in LA - Management noted that pricing power in LA depends on delinquency recovery and that the labor market remains soft, impacting overall performance [60][61] Question: Development and Investment Strategy - The company is actively looking for new investment opportunities but remains disciplined in its approach, focusing on long-term performance [64][111] Question: Concessions and Loss to Lease - Concessions have improved significantly from the fourth quarter to the first quarter, and loss to lease metrics have also shown improvement [113]

Financial Data and Key Metrics Changes - For Q1 2025, the net loss available to common shareholders was $0.12 per fully diluted share, compared to a net loss of $0.04 for the prior year [21] - Core FFO per share was $0.16, three cents higher than expected due to early recognition of the Urby tax credit [21] - Same-store NOI growth was 3.2%, with rental revenue up 2.4%, driven by increased occupancy [23] - Core G&A was $9.9 million, in line with the last quarter, with seasonal increases expected to not recur next quarter [25] Business Line Data and Key Metrics Changes - The portfolio recorded a blended net rental growth rate of 2.4%, with renewals at 3.7% and new leases at 0.6% [15] - The Jersey City assets outperformed, benefiting from proximity to New York City, with a projected population growth of 8% to 15% over the next seven years [8] - The company closed $45 million in non-strategic asset sales and entered contracts for an additional $34 million [5] Market Data and Key Metrics Changes - The Northeast multifamily markets showed strong fundamentals, with robust demand and constrained supply [7] - Jersey City experienced a 4.2% new lease rental growth rate, compared to 3.6% in the broader market [9] - There are currently 10,000 units under construction in Jersey City, with limited supply expected to drive rental growth [9] Company Strategy and Development Direction - The company aims to sell $300 to $500 million of non-strategic assets over the next 12 to 24 months [5] - The strategic focus includes recycling capital from asset sales into debt repayment and share repurchases [49] - The company is maintaining guidance due to market volatility and economic uncertainty, despite positive operational performance [28] Management's Comments on Operating Environment and Future Outlook - Management noted that while the multifamily markets have started positively in 2025, there are risks from tariffs and economic uncertainty [7] - The company remains confident in its ability to navigate market challenges and achieve strategic goals [44] - Management emphasized that operational performance remains strong, but guidance is held due to potential economic impacts [54] Other Important Information - The company completed the consolidation of its partner's 15% stake in the Jersey City Urby for $38 million, which is expected to be accretive to earnings [6] - The new resident mobile app has been adopted by over 65% of units, enhancing resident engagement and operational efficiency [18] Q&A Session Summary Question: Can you provide the progression of blended spreads from January to April? - Management indicated that new leases traded positively in February, with blended spreads exceeding 4% in March and 4.8% through April 21st [35] Question: What is the demand trend from Manhattan? - Management noted that 20% to 25% of move-ins come from Manhattan, driven by rent differentials and quality offerings [38] Question: How challenging is it to achieve the $300 to $500 million asset sales target? - Management expressed confidence in navigating market conditions, citing a proven track record despite volatility [44] Question: What is the strategic focus for the company's next chapter? - The focus is on selling non-strategic assets and recycling capital for debt repayment and share repurchases [49] Question: Are there any operational impacts from layoffs or roommate applications? - Management reported no current operational impacts but acknowledged economic uncertainty [52] Question: Can you discuss the Urby acquisition process? - Management explained that acquiring the partner's stake was deemed the best path due to accretion and operational flexibility [62] Question: What is the cap rate for the Urby acquisition? - The cap rate is 6.1%, driven by Q1 annualized NOI and synergies from the acquisition [64] Question: What is the occupancy outlook for Liberty Tower? - Management expects an improvement in occupancy as renovations progress [86] Question: What percentage of the portfolio is excluded from blended lease statistics? - Management clarified that only two immaterial assets are excluded from the blended lease statistics [88]

Core Viewpoint - Veris Residential, Inc. reported strong operational results in Q1 2025, despite market volatility, with a focus on asset sales and portfolio simplification to unlock value [3][4]. Financial Performance - Net income (loss) per diluted share was $(0.12) in Q1 2025, compared to $(0.04) in Q1 2024 [2]. - Core FFO per diluted share increased to $0.16 from $0.14 year-over-year [2]. - Core AFFO per diluted share decreased slightly to $0.17 from $0.18 [2]. - The dividend per diluted share was $0.08, up from $0.0525 [2]. Operational Highlights - The company achieved a Same Store occupancy rate of 94.0%, up from 93.9% [4]. - Same Store blended rental growth rate for the quarter was 2.4%, compared to 0.5% in the previous quarter, reflecting a 1.9% increase [4]. - Average rent per home decreased slightly to $4,019 from $4,033 [4]. Asset Management - The company has closed or is under contract for $79 million in non-strategic asset sales in 2025 [3]. - Year-to-date, $45 million of non-strategic asset sales have been completed, with an additional $34 million under contract [7][8]. - The acquisition of the remaining interest in the Jersey City property, now named "Sable," was completed for $38.5 million, expected to generate over $1 million in annualized synergies [9][10]. Financial Position - The company maintains a weighted average effective interest rate of 4.96% on its debt, with a maturity of 2.8 years [5][6]. - As of April 21, 2025, liquidity stood at approximately $146 million [6]. - Net debt was reported at $1,643,411, with a TTM Net Debt to EBITDA ratio of 11.4x [6]. Guidance - The company maintains its 2025 guidance for Same Store revenue growth between 2.1% and 2.7%, and Same Store NOI growth between 1.7% and 2.7% [13].

Rebrands 762-Unit, Class A Waterfront Property to Sable JERSEY CITY, N.J., April 22, 2025 /PRNewswire/ -- Veris Residential, Inc. ("Veris Residential" or the "Company") (NYSE: VRE), a forward-thinking, Northeast-focused, Class A multifamily REIT, and Urby, a design-forward, hospitality-driven multifamily development brand, today announced that Veris Residential has acquired Ironstate Holdings' ("Ironstate") 15% stake in Jersey City Urby, a 762-unit, Class A multifamily property located on the Jersey City Wa ...

Group 1 - Elme Communities will release its first quarter earnings results on May 1, 2025, after market close [1] - A conference call to discuss the earnings will take place on May 2, 2025, at 10:00 am ET, with a webcast presentation available [1] - The company operates approximately 9,400 apartment homes in the Washington, DC metro and Atlanta metro regions, along with about 300,000 square feet of commercial space [2] Group 2 - Elme Communities focuses on providing quality, affordable homes to middle-income renters, aiming to elevate their living experience [2] - The company is committed to building long-term value for shareholders by catering to a deep and underserved base of mid-market demand [2]

Financial Data and Key Metrics Changes - Total consolidated revenues during the fourth quarter were $22.8 million, largely flat year-over-year [36] - Consolidated hospitality revenue increased 6.5% during the quarter, with overall hospitality revenue growth of 12.8% [22][37] - Fourth quarter net loss attributable to common stockholders was $41.6 million, representing an increased loss of $5.6 million or 16% versus the comparable period in 2023 [44] - Non-GAAP adjusted net loss attributable to common stockholders for the fourth quarter was $19.2 million, representing an improvement of $8.8 million or more than 31% versus the comparable period in 2023 [45] Business Line Data and Key Metrics Changes - Same-store hospitality revenues were down 3.5%, primarily due to underperformance at the Tin Building [22][37] - Rental revenues were up nearly 15% during the quarter, primarily due to the benefit of the Alexander Wang lease [39] - The hospitality segment's operating income was down year-over-year due to higher operating expenses and payroll [38] Market Data and Key Metrics Changes - The Seaport's Tin Building launched in late 2022 but has not been profitable, indicating challenges in the market [9] - The Rooftop at Pier 17 concert series brings approximately 200,000 visitors to the Seaport each year, while the new partnership with Meow Wolf is expected to drive over 1 million visitors annually [15][16] Company Strategy and Development Direction - The company aims to optimize the Seaport Neighborhood in New York City by focusing on entertainment and hospitality [12][49] - A significant focus is on consolidating operations at the Tin Building to improve efficiency and reduce cash burn [10][11] - The company is exploring options for the 250 Water Street development site, considering partnerships or outright sale to maximize long-term value [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about executing identified areas for improvement and finding unique growth opportunities [53] - The company anticipates headwinds for hospitality revenue growth in the first quarter of 2025 due to strategic reductions in operating hours [38] - Management is committed to providing more robust portfolio detail and operational metrics to help the investment community measure progress [51] Other Important Information - The company completed a rights offering in October, generating net proceeds of approximately $167 million, which is seen as a strong endorsement of its strategy [47] - The company has engaged a leading investment sales team to explore different options for the 250 Water Street site [26] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call concluded without a formal Q&A session [55]