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UDR (UDR)
NYSE:UDR
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UDR
(NYSE:UDR)71Outperform
Positive Factors
Financial Guidance
Management raised the 2024 FFOA per share guidance, indicating confidence in future performance.
Occupancy and Demand
Same-store average physical occupancy is trending higher, suggesting strong rental demand.
Negative Factors
Investment Income
UDR did not record any income from its investment in 4Q24 and expects less income from this investment in the following year, creating a headwind to net income and FFOA.
UDR (UDR) vs. S&P 500 (SPY)
Market Cap
$14.96B
Dividend Yield3.84%
Average Volume (3M)2.12M
Price to Earnings (P/E)176.0
Beta (1Y)0.95
Revenue Growth2.72%
EPS Growth-80.72%
CountryUS
Employees1,432
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)0.26
Shares Outstanding331,133,360
10 Day Avg. Volume2,731,876
30 Day Avg. Volume2,118,335
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.89
Price to Cash Flow (P/CF)15.60
P/FCF Ratio12.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$46.10Price Target Upside3.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
UDR Business Overview & Revenue Model
Company DescriptionUDR, Inc. is a real estate investment trust (REIT) that primarily focuses on owning, operating, and developing high-quality apartment communities in targeted U.S. markets. The company is headquartered in Highlands Ranch, Colorado, and is recognized for its diverse portfolio that includes a variety of desirable apartment units in urban and suburban locations. UDR aims to provide superior living experiences for its residents while delivering consistent financial performance for its shareholders.
How the Company Makes MoneyUDR makes money primarily through the rental income generated from its extensive portfolio of apartment communities. The company's key revenue stream is derived from leasing residential units to tenants who pay monthly rent. This rental income is complemented by ancillary revenue streams, such as fees for parking, pet rent, and other amenity-related charges. UDR's strategic focus on high-demand markets allows it to capitalize on favorable demographic trends and rental demand, contributing to stable occupancy rates and the potential for rental rate increases. Additionally, UDR occasionally engages in the acquisition and disposition of properties to optimize its portfolio and enhance value for shareholders. The company also benefits from partnerships with local developers and property managers to maintain and expand its market presence.
UDR Financial Statement Overview
Summary
UDR showcases solid financial health with strong cash flows and an improved capital structure. However, declining net profitability and reduced equity warrant attention. The company's financials reflect stability with efficient cash management, yet profitability improvement is necessary for sustained growth.Income Statement
The income statement reveals stable revenue growth with a solid Gross Profit Margin of approximately 68.6% for 2024, albeit a declining EBIT Margin. The Net Profit Margin has decreased significantly to around 5.1% from previous years, indicating potential profitability challenges. EBITDA Margin remains strong at 34.5%, showcasing operational efficiency.75
Positive
Balance Sheet
The balance sheet shows a healthy equity ratio of 31.6% for 2024, providing a solid capital structure. The Debt-to-Equity Ratio has improved significantly due to the absence of debt, reducing financial risk. However, the decline in Stockholders' Equity and the overall reduction in Total Assets are areas of concern.68
Positive
Cash Flow
Cash flow analysis is strong with a robust Operating Cash Flow to Net Income Ratio of over 10, indicating efficient cash generation relative to net income. Free Cash Flow has shown significant growth, and the absence of capital expenditures enhances Free Cash Flow to Net Income Ratio, demonstrating strong cash management.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.67B | 1.63B | 1.52B | 1.29B | 1.24B | Gross Profit |
| 1.15B | 1.08B | 331.03M | 228.04M | 214.62M | EBIT |
| 284.57M | 635.01M | 250.81M | 267.97M | 150.80M | EBITDA |
| 1.00B | 1.35B | 914.63M | 755.50M | 750.59M | Net Income Common Stockholders |
| 84.75M | 444.35M | 86.92M | 150.02M | 64.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.33M | 2.92M | 1.19M | 967.00K | 1.41M | Total Assets |
| 10.90B | 11.37B | 11.04B | 10.78B | 9.64B | Total Debt |
| 6.01B | 5.98B | 6.00B | 5.61B | 5.17B | Net Debt |
| 6.01B | 5.98B | 6.00B | 5.60B | 5.17B | Total Liabilities |
| 6.44B | 6.42B | 6.10B | 6.00B | 5.52B | Stockholders Equity |
| 3.44B | 3.99B | 4.10B | 3.44B | 3.23B |
| Cash Flow | Free Cash Flow | |||
| 876.85M | 520.32M | 584.06M | 497.44M | 430.20M | Operating Cash Flow |
| 876.85M | 832.66M | 820.07M | 663.96M | 604.32M | Investing Cash Flow |
| -276.35M | -289.14M | -929.53M | -1.27B | -460.84M | Financing Cash Flow |
| -599.94M | -538.85M | 111.23M | 612.54M | -152.59M |
UDR Technical Analysis
Positive
44.48
Price Trends
42.48
Positive
43.15
Positive
42.14
Positive
Market Momentum
0.73
Negative
57.90
Neutral
48.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UDR, the sentiment is Positive. The current price of 44.48 is above the 20-day moving average (MA) of 43.71, above the 50-day MA of 42.48, and above the 200-day MA of 42.14, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 57.90 is Neutral, neither overbought nor oversold. The STOCH value of 48.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UDR.
UDR Risk Analysis
UDR disclosed 62 risk factors in its most recent earnings report. UDR reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
UDR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $28.82B | 27.11 | 9.36% | 3.75% | 3.80% | 24.08% | |
76 Outperform | $31.93B | 29.55 | 9.10% | 3.11% | 4.85% | 16.04% | |
71 Outperform | $14.96B | 176.00 | 2.41% | 3.84% | 2.72% | -80.72% | |
71 Outperform | $20.07B | 26.12 | 13.53% | 3.25% | 6.29% | 82.88% | |
69 Neutral | $13.28B | 82.85 | 3.38% | 3.31% | 0.55% | -59.48% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
61 Neutral | $20.40B | 37.91 | 8.73% | 3.55% | 1.98% | -4.78% |
* Real Estate Sector Average
Performance Comparison
UDR
UDR
44.48
8.19
22.57%
AVB
AvalonBay
218.45
39.77
22.26%
EQR
Equity Residential
71.97
11.50
19.02%
MAA
Mid-America Apartment
166.36
36.86
28.46%
ESS
Essex Property
301.74
67.44
28.78%
CPT
Camden Property
121.49
25.17
26.13%
UDR Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 5.35% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted UDR's strong financial performance and strategic initiatives in innovation and occupancy management, which are expected to drive future growth. However, challenges remain in debt and preferred equity investments and regional supply pressures, particularly in the Sunbelt and Monterey Peninsula. Overall, the positives and negatives are relatively balanced.Highlights
Strong Financial Performance
Fourth quarter and full year 2024 FFOA per share results met guidance expectations, with same-store results exceeding guidance midpoints.
Occupancy and Lease Rate Strategy
UDR's occupancy-focused strategy resulted in a 50 basis point sequential improvement in occupancy during Q4 2024, maintaining occupancy above 97% into 2025.
Innovation and Growth Initiatives
Investments in innovation, including advancing customer experience projects, are expected to drive NOI growth in excess of the broader market in 2025.
Balance Sheet Strength
UDR's balance sheet is well positioned, with over $1 billion of liquidity and minimal debt maturities through 2026.
Lowlights
Challenges with Debt and Preferred Equity Investments
UDR moved its investment in 1,300 Fairmount to nonaccrual status due to risks, and two additional investments totaling $40 million remain on the watchlist.
Sunbelt Market Supply Concerns
The Sunbelt region is expected to face new supply deliveries of approximately 4% of existing inventory, though this is down by nearly 1/3 compared to 2024.
Monterey Peninsula Rent Control Impact
New rent control measures in Monterey Peninsula are expected to negatively impact revenue growth in the West Coast region.
Company Guidance
During UDR's Fourth Quarter 2024 earnings call, the company provided guidance for 2025, highlighting several key metrics. The fourth quarter and full year 2024 FFO as adjusted per share were $0.63 and $2.48, respectively, meeting the midpoint of previous guidance. For 2025, UDR expects FFOA per share to range from $2.45 to $2.55, with same-store NOI growth forecasted at 1.75% at the midpoint. The company anticipates economic growth and resilient apartment demand, with a forecasted rental growth of 2%, supported by declining supply pressures in the second half of the year. UDR also projects ongoing innovation investments to drive incremental NOI growth, maintaining occupancy above 97%, and expects new lease rate growth to stabilize with renewal rates around 4%. Additionally, UDR's balance sheet is positioned to fully fund capital needs, leveraging joint ventures and operating partnership unit deals for potential growth opportunities amidst an elevated cost of capital.UDR Corporate Events
Other
UDR to Release Key Updates on November 14
Neutral
Nov 14, 2024
Investors can anticipate new insights as the company plans to release important information on November 14, 2024. This update is provided for informational purposes and won’t be integrated into existing financial filings. Stay informed, but note this won’t impact legal liabilities or be part of official records.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.