UDR Inc. UDR reported fourth-quarter 2024 funds from operations as adjusted (FFOA) per share of 63 cents, in line with the Zacks Consensus Estimate. The figure remained unchanged year over year.

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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 and same-store net operating income (NOI). 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. Our estimate was the same as the reported number.

However, property operating and maintenance expenses of $72.2 million rose 5.4% year over year. Interest expenses climbed almost 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.

UDR ended the quarter with a weighted average interest rate of 3.38% and a weighted average years to maturity of 5.2 years.

UDR’s Dividend Update

Concurrent with the earnings release, UDR’s board of directors announced a 2025 annualized dividend per share of $1.72, marking an increase of 1.2% from the 2024 annualized dividend per share.

2025 Guidance by UDR

The company provided first-quarter and full-year 2025 guidance.

It expects first-quarter 2025 FFOA per share in the range of 60-62 cents. The Zacks Consensus Estimate is currently pegged at 61 cents.

For 2025, FFOA per share is expected in the range of $2.45-$2.55. The Zacks Consensus Estimate is currently pegged at $2.51.

For the full year, on a straight-line basis, the company projects growth rates for same-store revenues in the range of 1.25-3.25%, same-store expenses between 2.75% and 4.25% and same-store NOI between 0.50% and 3.00%.

UDR’s Zacks Rank

Currently, UDR carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

United Dominion Realty Trust, Inc. Price, Consensus and EPS Surprise

United Dominion Realty Trust, Inc. price-consensus-eps-surprise-chart | United Dominion Realty Trust, Inc. Quote

Performance of Other Residential REITs

Essex Property Trust Inc. ESS reported fourth-quarter 2024 core FFO per share of $3.92, beating the Zacks Consensus Estimate of $3.90. The figure also improved by 2.3% from the year-ago quarter.

Results reflected favorable growth in same-property revenues and NOI. ESS issued first-quarter and full-year 2025 guidance for core FFO per share.

Equity Residential EQR reported a fourth-quarter 2024 normalized FFO per share of $1.00, in line with the Zacks Consensus Estimate. The figure remained unchanged from the prior-year quarter’s tally.

Results reflected healthy same-store revenue performance and high occupancy. EQR issued its guidance for 2025.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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