tiprankstipranks
Trending News
More News >
UDR (UDR)
NYSE:UDR
Advertisement

UDR (UDR) AI Stock Analysis

Compare
309 Followers

Top Page

UDR

UDR

(NYSE:UDR)

Rating:70Outperform
Price Target:
$42.00
â–²(9.40% Upside)
UDR's overall stock score reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. The high P/E ratio and technical indicators suggest caution, but the robust dividend yield and strategic leadership changes provide some balance.
Positive Factors
Financial Performance
UDR's result reflected its upper-tier operating platform, portfolio, and strategy, with a FFOAps beat and guidance raise above consensus.
Market Trends
UDR's asking rents had the best sequential trends, although market rents overall have been decelerating.
Negative Factors
Leadership Changes
UDR surprisingly announced the resignation of Joe Fisher, President & CIO, who many believed was the CEO-in-waiting.
Regional Performance
Southwest region decelerated -10bps to -4.1% with new leases of -10.1% and renewals of +3.1%.

UDR (UDR) vs. SPDR S&P 500 ETF (SPY)

UDR Business Overview & Revenue Model

Company DescriptionUDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of September 30, 2020, UDR owned or had an ownership position in 51,649 apartment homes including 1,031 homes under development. For over 48 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.
How the Company Makes MoneyUDR generates revenue primarily through rental income from its residential properties. The company leases apartments to tenants, and its revenue model is based on long-term leases that provide stable cash flows. Additionally, UDR benefits from property appreciation and may realize gains when selling properties. The company also engages in development projects, which can enhance its portfolio value and revenue potential. Key revenue streams include monthly rents, lease renewals, and property sales. The company's strategic focus on high-demand markets and its ability to maintain low vacancy rates contribute significantly to its earnings. Furthermore, partnerships with local developers and real estate firms can enhance UDR's growth opportunities and operational efficiencies.

UDR Key Performance Indicators (KPIs)

Any
Any
Total Homes by Geography
Total Homes by Geography
Chart Insights
Data provided by:Main Street Data

UDR Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call reflected overall positive sentiment with UDR exceeding key financial expectations, maintaining a strong balance sheet, and being recognized as a top workplace. While there are challenges in Sunbelt markets and some regions like D.C. face pressure on new lease growth, the positive aspects significantly outweigh the negative points.
Q2-2025 Updates
Positive Updates
Exceeding Expectations in Key Metrics
Second quarter year-over-year same-store revenue and NOI growth of 2.5% and 2.9%, respectively, exceeded initial expectations. First half blended lease rate growth of 2% was 20 basis points above the high end of the guidance range.
Strong Financial Position
Investment-grade balance sheet with over $1.1 billion of liquidity. Net debt-to-EBITDAre was 5.5x, and debt to enterprise value was just 28% at quarter end.
Recognition as Top Workplace
UDR was named Top Workplace Winner in the real estate industry for the second consecutive year.
Positive Regional Performance
The East Coast markets, comprising approximately 40% of NOI, exhibited 4.1% year-to-date same-store revenue growth, slightly above the high end of initial full year expectations.
Successful Lease-Up in Philadelphia
The Broadridge property in Philadelphia improved from 83% to 97% leased within 30-45 days of UDR's takeover.
Negative Updates
Challenges in the Sunbelt Markets
Sunbelt markets, comprising roughly 25% of NOI, continue to lag coastal markets due to elevated new supply. Year-to-date, same-store revenue growth is slightly negative.
Pressure on New Lease Growth in Some Regions
New lease growth in D.C. was softer than the portfolio average, attributed to market conditions and strategic pricing.
Company Guidance
During UDR's Second Quarter 2025 Earnings Call, CEO Tom Toomey highlighted several key metrics driving the company's strong performance. Same-store revenue and NOI growth both exceeded initial expectations, with same-store revenue growth reaching a midpoint of 2.5% and NOI growth at 2.9%. The company achieved a 2.8% blended lease rate growth, supported by a 5% increase in renewal rates and a 30 basis points rise in new lease rates. Occupancy averaged 96.9%, surpassing historical averages by 30 basis points. The first half of 2025 saw a 10% income growth from rentable items, contributing to the revised full-year guidance. UDR also reported a significant reduction in annualized resident turnover, down by 420 basis points compared to the previous year, which bolstered renewal rate growth. Despite these gains, the company adjusted its full-year blended lease rate growth expectation to approximately 2%, considering typical seasonality patterns. Additionally, UDR raised its full-year FFOA per share guidance, now projected between $2.49 and $2.55, reflecting a 1% improvement over previous guidance.

UDR Financial Statement Overview

Summary
UDR shows strong revenue growth and improved profitability, with a net profit margin of 7.8%. Despite a decrease in gross profit margin, the company maintains strong cash flow generation, with a robust free cash flow growth rate of 93.4%. The high leverage is a potential risk, but typical for the REIT sector.
Income Statement
75
Positive
UDR's income statement shows a strong revenue growth trajectory with a TTM revenue growth rate of 6%. The gross profit margin has decreased from 68.6% in 2024 to 36.4% in TTM, indicating potential cost pressures. However, the net profit margin improved to 7.8% in TTM, reflecting better profitability management. EBIT and EBITDA margins are stable, suggesting operational efficiency.
Balance Sheet
68
Positive
The balance sheet reveals a high debt-to-equity ratio of 1.79 in TTM, indicating significant leverage, which is common in the REIT industry. The return on equity has improved to 3.9% in TTM, showing better utilization of equity. The equity ratio stands at 31.2%, reflecting a moderate level of financial stability.
Cash Flow
80
Positive
UDR's cash flow statement highlights a robust free cash flow growth rate of 93.4% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.95, and the free cash flow to net income ratio is 0.68, both showing efficient cash conversion from earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.69B1.67B1.63B1.52B1.29B1.24B
Gross Profit444.82M417.01M392.52M331.03M228.04M214.62M
EBITDA1.04B1.00B1.35B935.33M968.53M892.85M
Net Income131.95M89.58M444.35M86.92M150.02M64.27M
Balance Sheet
Total Assets10.65B10.90B11.37B11.04B10.78B9.64B
Cash, Cash Equivalents and Short-Term Investments1.53M1.33M2.92M1.19M967.00K1.41M
Total Debt5.96B6.01B5.98B5.68B5.61B5.17B
Total Liabilities6.36B6.44B6.42B6.10B6.00B5.52B
Stockholders Equity3.32B3.44B3.99B4.10B3.44B3.23B
Cash Flow
Free Cash Flow594.56M605.16M520.32M584.06M497.44M430.20M
Operating Cash Flow877.33M876.85M832.66M820.07M663.96M604.32M
Investing Cash Flow-237.95M-276.35M-289.14M-929.53M-1.27B-460.84M
Financing Cash Flow-638.65M-599.94M-538.85M111.23M612.54M-152.59M

UDR Technical Analysis

Technical Analysis Sentiment
Negative
Last Price38.39
Price Trends
50DMA
39.53
Negative
100DMA
40.26
Negative
200DMA
41.24
Negative
Market Momentum
MACD
-0.18
Negative
RSI
44.56
Neutral
STOCH
45.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UDR, the sentiment is Negative. The current price of 38.39 is below the 20-day moving average (MA) of 38.56, below the 50-day MA of 39.53, and below the 200-day MA of 41.24, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 45.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$17.08B29.319.58%4.19%1.19%10.52%
74
Outperform
$13.29B31.195.99%3.22%7.19%15.70%
70
Outperform
$12.73B100.213.74%4.45%2.29%-4.89%
68
Neutral
$25.25B24.499.20%4.23%4.49%5.87%
68
Neutral
$15.37B75.773.30%3.80%0.76%-60.70%
66
Neutral
$18.01B20.9514.40%3.84%7.56%54.15%
63
Neutral
$6.95B13.72-0.50%6.99%4.08%-25.24%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UDR
UDR
38.39
-4.24
-9.95%
EQR
Equity Residential
64.67
-7.92
-10.91%
MAA
Mid-America Apartment
143.41
-11.52
-7.44%
ESS
Essex Property
261.51
-30.27
-10.37%
CPT
Camden Property
109.41
-10.45
-8.72%
AMH
American Homes
34.74
-3.83
-9.93%

UDR Corporate Events

Executive/Board Changes
UDR Announces Leadership Change with Fisher’s Resignation
Neutral
Sep 2, 2025

On September 2, 2025, UDR, Inc. announced that Joseph D. Fisher resigned from his roles as President and Chief Investment Officer, effective immediately. In connection with his departure, a separation agreement was established, entitling Mr. Fisher to severance payments and continued health benefits under specific conditions. The Board appointed Thomas W. Toomey, the current Chairman and CEO, as the new President. Mr. Fisher, who had been with UDR since 2017, expressed confidence in the company’s future, citing its exceptional talent and strong market position.

Regulatory Filings and Compliance
UDR Releases New Investor Information on September 2
Neutral
Sep 2, 2025

UDR has announced that information included in Exhibit 99.1 will be available to investors starting September 2, 2025. This information is being provided in accordance with Item 7.01 and will not be considered filed under the Securities Exchange Act of 1934, nor incorporated by reference under the Securities Act of 1933.

Executive/Board ChangesBusiness Operations and Strategy
UDR Appoints Dave Bragg as New CFO
Positive
Jun 23, 2025

UDR, Inc. announced the appointment of Dave Bragg as Chief Financial Officer, effective July 24, 2025. Bragg, who previously held senior roles at Roots Management Group and Green Street, brings extensive experience in real estate finance and investment strategy. His appointment follows Joe Fisher’s transition to Chief Investment Officer earlier in 2025. The leadership change is expected to bolster UDR’s strategic direction and operational strength in the multifamily real estate sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 04, 2025