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It has been about a month since the last earnings report for UDR (UDR). Shares have added about 2.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is UDR due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
UDR Q4 FFOA Meets Estimates, Revenues Up Y/Y, Dividend Hiked
UDR reported fourth-quarter 2024 FFO as adjusted (FFOA) per share of 63 cents, in line with the Zacks Consensus Estimate. The figure remained unchanged year over year.
Quarterly revenues from rental income were $420.4 million, which missed the Zacks Consensus Estimate marginally. Total revenues came in at $422.7 million. On a year-over-year basis, rental income and total revenues rose 2.3% each.
Results reflect year-over-year growth in same-store revenues. However, a rise in property operating and maintenance and interest expenses acted as dampeners. The company increased its annualized dividend payment and issued 2025 guidance.
Per Tom Toomey, UDR’s chairman and CEO, “As we look ahead, we see easing supply pressures, a resilient labor market, and relative affordability of apartments that remains attractive versus other forms of housing, collectively creating a fundamental backdrop for improved Same-Store NOI growth.”
In 2024, FFOA was $2.48 per share, in line with the Zacks Consensus Estimate. The figure surpassed the prior-year figure by a cent. Full-year revenues from rental income of $1.66 billion improved by 2.6% year over year. The figure missed the consensus estimate marginally.
UDR’s Fourth Quarter in Detail
In the reported quarter, same-store revenues increased 2.5% year over year. Same-store expenses were up 3.4%, and same-store NOI improved 2.1%.
UDR registered a same-store effective blended lease rate decline of 0.5% during the quarter. The residential REIT’s weighted average same-store physical occupancy of 96.8% increased 50 basis points sequentially and remained unchanged year over year.
However, property operating and maintenance expenses of $72.2 million rose 5.4% year over year. Interest expenses climbed 4.8% to $49.6 million.
UDR’s Balance Sheet Position
As of Dec. 31, 2024, UDR had $1.1 billion of liquidity through a combination of cash and undrawn capacity on its credit facilities.
Total debt was $5.8 billion as of the same date, with only $535 million, or 9.7% of total consolidated debt, maturing through 2026. In addition, net debt-to-EBITDAre of 5.5X in the fourth quarter improved from 5.6X at the end of the prior quarter.