On February 5, 2025, UDR Inc (UDR, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full-year 2024. UDR Inc, a real estate investment trust (REIT), focuses on owning, operating, acquiring, and managing multifamily apartment communities across the United States. The company operates through two segments: Same-Store Communities and Non-Mature Communities/Other.

Quarterly and Annual Performance

For the fourth quarter of 2024, UDR Inc reported a net income per diluted share of $(0.02), falling short of the analyst estimate of $0.07. This represents a significant decline from the $0.10 net income per diluted share recorded in the same period last year, marking a 120% decrease. The Funds from Operations (FFO) per diluted share was $0.48, which also missed the company's guidance range of $0.61 to $0.63 and was down 21% from the previous year.

On an annual basis, UDR Inc's net income per diluted share was $0.26, a stark contrast to the $1.34 reported in 2023, reflecting an 81% decrease. The FFO per diluted share for the year was $2.29, below the guidance range of $2.42 to $2.44 and a 7% decline from 2023.

Financial Achievements and Challenges

Despite the challenges, UDR Inc achieved a 2.3% increase in total revenue for the fourth quarter, reaching $422.7 million, exceeding the analyst estimate of $420.43 million, driven by growth in Same-Store communities and completed developments. The Same-Store revenue grew by 2.5% year-over-year, while expenses increased by 3.4%, leading to a 2.1% growth in Net Operating Income (NOI).

“2024 was another solid year, with FFOA per share growth that exceeded our original guidance expectations despite historically high levels of new supply completions,” said Tom Toomey, UDR’s Chairman and CEO.

Balance Sheet and Cash Flow Insights

As of December 31, 2024, UDR Inc's total indebtedness stood at $5.8 billion, with $535.0 million maturing through 2026. The company maintained approximately $1.1 billion in liquidity, combining cash and undrawn credit facilities. This financial flexibility is crucial for navigating market uncertainties and pursuing growth opportunities.

Dividend and Outlook

UDR Inc declared a regular quarterly dividend of $0.425 per share for the fourth quarter of 2024, marking the 209th consecutive quarterly dividend. The company announced a 2025 annualized dividend per share of $1.72, a 1.2% increase over 2024.

“We begin 2025 in a position of strength with Same-Store occupancy above 97 percent, resident retention that continues to exceed our expectations,” stated Mike Lacy, UDR’s Chief Operating Officer.

Analysis and Conclusion

UDR Inc's performance in 2024 highlights the challenges faced by REITs in a competitive market with high supply levels. The decline in net income and FFO per share underscores the pressure on profitability. However, the company's strategic focus on Same-Store growth and maintaining strong liquidity positions it well for future opportunities. Investors will be keen to see how UDR Inc leverages its operational strengths and market conditions to drive growth in 2025.

Explore the complete 8-K earnings release (here) from UDR Inc for further details.