Yahoo Finance UDR Inc (UDR) Reports Q1 2024 Earnings: Aligns with EPS Projections and Raises Full-Year Guidance
Net Income per diluted share: $0.13, surpassing the estimated $0.10, up 44% from $0.09 in the prior year.
Revenue: $413.6 million, exceeding the estimated $409.65 million, up 3.5% year-over-year.
FFO per diluted share: $0.60, met the lower end of the guidance range of $0.60 to $0.62, slightly above the prior year's $0.59.
AFFO per diluted share: $0.56, within the guidance range of $0.56 to $0.58, slightly below the previous year's $0.57.
Same-Store Revenue Growth: Increased by 3.1% year-over-year, driven by improved leasing conditions and employment growth.
Dividend: Declared a regular quarterly dividend of $0.425 per share, representing a 1.2% increase over the previous year.
Development Activity: Completed development of Villas at Fiori, a $53.5 million townhome community, with ongoing development of a 330-home apartment community in Tampa, FL.
On April 30, 2024, UDR Inc (NYSE:UDR), a prominent real estate investment trust, announced its first quarter results for 2024, which aligned with analyst expectations for earnings per share and showcased a robust year-over-year revenue growth. The details were disclosed in their recent 8-K filing.
Company Overview
UDR Inc operates as a real estate investment trust specializing in the ownership, operation, and management of multifamily apartment communities across the United States. With a focus on Same-Store Communities and Non-Mature Communities/Other, UDR has built a significant presence in its sector, generating substantial revenue primarily from its Same-Store Communities.
Financial Highlights
The first quarter of 2024 saw UDR achieving a net income per diluted share of $0.13, consistent with the lower end of its guidance range and a significant increase from $0.09 in the same quarter the previous year. This represents a 44% increase year-over-year. The company reported Funds from Operations (FFO) per diluted share at $0.60, and Adjusted FFO (AFFO) per diluted share at $0.56, slightly underperforming against the prior year. Total revenue for the quarter stood at $413.6 million, marking a 3.5% increase from the previous year, driven mainly by growth in Same-Store communities and external investments.
Operational Achievements and Strategic Developments
UDR's operational strategy has yielded positive results, with a notable 3.1% growth in same-store revenue compared to the first quarter of 2023. The company's focus on leasing conditions, bolstered by employment growth and high absorption rates, has significantly contributed to these outcomes. UDR's Senior Vice President of Operations, Mike Lacy, highlighted the monthly sequential improvements across key revenue metrics such as occupancy, concessions granted, and lease rate growth.
During the quarter, UDR also completed the sale of Crescent Falls Church for $100 million and finished the development of Villas at Fiori, emphasizing its active role in managing its property portfolio to optimize returns.
Financial Position and Future Outlook
UDR's balance sheet remains strong with total indebtedness standing at $5.8 billion as of March 31, 2024. The company boasts $960 million in liquidity, positioning it well for future investments and stakeholder returns. Looking ahead, UDR has raised its full-year 2024 guidance for FFOA per diluted share to $2.38 to $2.50, reflecting confidence in its operational strategy and market conditions.
Dividend Announcement
Reflecting its financial health and commitment to shareholder returns, UDR declared a quarterly dividend of $0.425 per share for the first quarter of 2024, paid on April 30. This marks the 206th consecutive quarterly dividend paid by UDR, underscoring its reliable dividend history.
Conclusion
UDR Inc's first quarter results for 2024 demonstrate its effective management and strategic positioning within the multifamily real estate market. With aligned EPS, increased revenue, and raised guidance, UDR continues to show its capability to navigate market dynamics effectively, promising continued growth and stability for its shareholders.
For more detailed information on UDRs financials and strategic initiatives, stakeholders are encouraged to view the full earnings report and supplemental data available on the companys Investor Relations website.
Explore the complete 8-K earnings release (here) from UDR Inc for further details.
This article first appeared on GuruFocus.
