UDR Inc. UDR reported third-quarter 2024 funds from operations as adjusted (FFOA) per share of 62 cents, in line with the Zacks Consensus Estimate. On a year-over-year basis, FFOA per share declined 1.6%.

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Quarterly rental income was $418.1 million and came ahead of the year-ago quarter’s $408.4 million. Total revenues came in at $420.2 million, surpassing the Zacks Consensus Estimate of $416.5 million. Both rental income and total revenues rose 2.4 each year over year.

Results reflect an increase in revenues from same-store communities, prior-year acquisitions and completed developments. UDR raised its full-year 2024 guidance.

Per Tom Toomey, UDR’s chairman and CEO, “Continued resiliency in the labor market coupled with attractive relative affordability of apartment rentals has resulted in solid performance despite decades-high levels of new supply completions.”

Inside UDR’s Headlines

In the reported quarter, same-store revenues increased 1.2% year over year. Same-store expenses were up 2%, and the same-store net operating income (NOI) improved 0.8% year over year.

For the same-store portfolio, UDR registered effective blended lease rate growth of 1.8% during the quarter, decreasing by 60 basis points (bps) sequentially.The residential REIT’s weighted average same-store physical occupancy of 96.3% decreased 50 bps sequentially and 40 bps year over year. Our estimate was pegged at 96.9%.

However, property operating and maintenance expenses of $76.5 million rose 6.8% year over year. Our estimate was pegged at $73.7 million. Interest expenses climbed 12.4% to $50.2 million.

UDR's Balance Sheet Activity

As of Sept 30, 2024, UDR had $1.0 billion of liquidity through a combination of cash and undrawn capacity on its credit facilities.

The total debt was $5.9 billion as of the same date, with $180 million, or 3.2% of total consolidated debt, maturing through 2025. In addition, net debt-to-EBITDAre was 5.6X in the third quarter.

UDR ended the quarter with a weighted average interest rate of 3.43% and a weighted average years to maturity of 5.4 years.

UDR’s 2024 Guidance

UDR expects fourth-quarter 2024 FFOA per share in the range of 62-64 cents. The Zacks Consensus Estimate for the same is currently pegged at 62 cents.

UDR raised certain full-year 2024 guidance ranges.

The company now expects 2024 FFOA per share in the range of $2.47-$2.49, up 2 cents at the midpoint from the prior guided range of $2.42-$2.50. The Zacks Consensus Estimate is currently pegged at $2.47.