Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights into how blended rate growth might trend throughout the year across different markets, particularly comparing the Sunbelt to other regions? A: Michael Lacy, Chief Operating Officer, explained that the company expects blended lease rate growth to be around 2.5% for the year. The first half of the year is anticipated to see growth between 1.4% to 1.8%, while the second half is expected to increase to 2.8% to 3.2%. The Sunbelt is expected to see lower growth initially but should improve as supply pressures lessen.
Q: How is UDR positioned in terms of investments, and is there capital available for acquisitions without needing to raise new funds? A: Joseph Fisher, President, CFO, and CIO, noted that UDR is not necessarily a net seller, as some sales were carried over from the previous year. The company remains opportunistic, with ongoing discussions with joint venture partners like LaSalle. UDR is also looking at potential development starts and redevelopment opportunities, with a focus on capital allocation that doesn't require raising new funds.
Q: Could you discuss the current state of concessions in your markets and how they might impact your outlook? A: Michael Lacy, COO, mentioned that concessions are currently around one week and are being reduced as occupancy remains high. The strategy is to drive occupancy now and focus on increasing rents, which should help reduce concessions further.
Q: What is the rationale behind the recent change in the CIO role, and will this affect UDR's capital allocation strategy? A: Thomas Toomey, Chairman and CEO, explained that the change is part of a broader strategy to enhance leadership and talent development within the company. Joseph Fisher's move to CIO is expected to bring fresh perspectives to the investment area, and the search for a new CFO is underway. The overall aim is to improve team performance and shareholder value.
Q: How does UDR plan to manage potential regulatory risks and uncertainties, such as those related to immigration and federal policies? A: Joseph Fisher, President, CFO, and CIO, stated that while specific risks are not factored into the guidance, the company maintains a range around its base case to account for potential positive or negative impacts from regulatory changes. The focus is on maintaining flexibility and readiness to adapt to any changes in the regulatory environment.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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