UDR (UDR) Q3 2024 earnings summary

Executive summary

• Year-to-date results exceeded expectations, leading to a third increase in full-year FFOA per-share guidance and improved outlooks for same-store revenue, expense, and NOI growth.

• Rental income rose 2.8% year-over-year to $418.1M for Q3, with total Q3 revenue up 2.4% to $420.2M, driven by growth in Same-Store communities, acquisitions, and developments.

• Net income attributable to common stockholders was $21.4M ($0.06/share) for Q3, down from $31.6M ($0.10/share) in Q3 2023.

• Focus remains on innovation, customer experience, and maintaining a capital-light, investment-grade balance sheet with substantial liquidity.

• ESG leadership continues, with the sixth annual report highlighting progress in environmental, social, and governance initiatives.

Financial highlights

• Third-quarter FFOA per diluted share was $0.62, flat sequentially and at the midpoint of guidance; AFFO per diluted share was $0.54.

• Updated full-year 2024 FFOA per share guidance is $2.47-$2.49, with the midpoint representing positive year-over-year growth.

• Third-quarter same-store revenue and NOI growth were 1.2% and 0.8% year-over-year, respectively.

• Occupancy averaged 96.3% in Q3, ending at 96.5%, and improved to 96.6% in October.

• Total indebtedness as of September 30, 2024, was $5.9 billion, with $1 billion in liquidity.

Outlook and guidance

• Full-year same-store revenue growth midpoint raised to 2.2%; same-store expense growth midpoint lowered to 4.4%.

• Fourth-quarter FFOA per share guidance range is $0.62-$0.64, with the midpoint up 1.5% sequentially.

• Management expects to meet short-term liquidity needs through operating cash flow and credit facilities.

• No shares were issued under the ATM program in Q3; 14M shares remain available for future issuance.

• $1.3M of secured debt and $290M of unsecured debt mature in the remainder of 2024, with plans to repay using cash flow, debt, or equity offerings.