UDR(US:UDR)2021-02-10 21:11Financial Data and Key Metrics Changes - In Q4 2020, the company's FFO as adjusted per share was $0.49, achieving the midpoint of guidance range [42] - Year-over-year combined same-store NOI declined by 10.1%, driven by a revenue decline of 5.9% and an expense increase of 4.8% [19] - The company anticipates full year FFOA per share to range between $1.88 and $2, representing a 5% year-over-year decrease [44] Business Line Data and Key Metrics Changes - The 2019 acquisitions produced sequential revenue growth of 2% from Q3 to Q4, compared to a 50 basis point sequential revenue decline for combined same-store communities [21] - The company reported that occupancy has grown, with concession usage starting to decline, operating with minimal or no concessions across approximately 65% of the portfolio [22] Market Data and Key Metrics Changes - Approximately 25% to 30% of NOIs are in markets that are effectively open, such as Tampa and Orlando, with average physical occupancy over 97% [27] - About 55% of NOIs are in partially open markets, showing signs of improvement, with occupancy averaging 96.5% [28] - Roughly 15% to 20% of NOIs are in urban areas facing challenges, with average occupancy improving to nearly 90% [29] Company Strategy and Development Direction - The company aims to maximize cash flow by implementing the Next Generation Operating Platform and utilizing dynamic pricing across its portfolio [10] - ESG remains a cornerstone of the company's operations, with recognition as a top performer in ESG among global real estate firms [13] - The company plans to continue refining its ESG goals while providing comprehensive metrics to stakeholders [13] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the recovery of the industry and the company, stating that the path to recovery will be slow but inevitable [12] - The company expects that widespread vaccination will positively impact business activity and regulatory restrictions [30] - Management noted that the urban markets should rebound once health and safety issues are addressed, with a focus on retaining residents [32] Other Important Information - The company has a strong liquidity position with $958 million available as of December 31 [47] - The dividend remains secure and is well covered by cash flow from operations, with a forecasted payout ratio of 82% [50] Q&A Session Summary Question: What benefits do you see from dynamic pricing in disrupted markets like Manhattan or San Francisco? - Management indicated that benefits are more pronounced in stabilized suburban markets, with urban areas expected to see more benefits once stabilized [59] Question: Are you seeing any distressed opportunities in urban markets for acquisitions? - Management noted that they are not currently seeing distressed opportunities in urban high-rise markets, with pricing down 5% to 10% relative to pre-COVID levels [65] Question: How do you expect the recovery in coastal markets to impact your guidance? - Management expects traffic to return in Q2 for places like New York and Boston, with results following those trends [76] Question: What is the impact of concessions granted in 2020 on future performance? - Management stated that concessions granted in 2020 will serve as headwinds in 2021, but cash performance is expected to improve in the back half of the year [85] Question: How do you see the composition of leasing in urban markets? - Management observed that studios are less occupied compared to typical cycles, but self-guided tours have increased traffic, aiding leasing efforts [93]