UDR Announces Fourth Quarter and Full-Year 2024 Results, Establishes 2025 Guidance Ranges, and Increases Dividend
UDR announced its Q4 and full-year 2024 results, showing mixed performance. Q4 Net Income per share declined 120% YOY to $(0.02), while FFO decreased 21% to $0.48. Same-Store NOI grew 2.1% YOY in Q4, with revenue up 2.5% and expenses increasing 3.4%.
For full-year 2024, Net Income per share fell 81% to $0.26, while FFOA showed a modest 1% increase to $2.48. The company recorded a non-cash loan reserve of $37.3 million related to its 1300 Fairmount investment.
Post quarter-end, UDR completed the sales of two properties: Leonard Pointe for $127.5 million and One William for $84.0 million. The company established its 2025 guidance with FFOA projected at $2.45-$2.55 per share and Same-Store NOI growth of 0.50%-3.00%. The Board announced a 1.2% increase in the annual dividend to $1.72 per share for 2025.
UDR ha annunciato i risultati del quarto trimestre e dell'intero anno 2024, evidenziando una performance mista. Nel quarto trimestre, il reddito netto per azione è diminuito del 120% rispetto all'anno precedente a $(0.02), mentre il FFO è calato del 21% a $0.48. Il NOI degli stessi negozi è cresciuto del 2,1% su base annua nel quarto trimestre, con un aumento dei ricavi del 2,5% e delle spese del 3,4%.
Per l'intero anno 2024, il reddito netto per azione è sceso dell'81% a $0.26, mentre il FFOA ha registrato un modesto aumento dell'1% a $2.48. L'azienda ha registrato una riserva di prestito senza contante di $37,3 milioni relativa al suo investimento in 1300 Fairmount.
Dopo la fine del trimestre, UDR ha completato la vendita di due proprietà: Leonard Pointe per $127,5 milioni e One William per $84,0 milioni. L'azienda ha stabilito le sue previsioni per il 2025, con un FFOA proiettato tra $2.45 e $2.55 per azione e una crescita del NOI degli stessi negozi tra lo 0,50% e il 3,00%. Il Consiglio di Amministrazione ha annunciato un aumento del 1,2% del dividendo annuale a $1.72 per azione per il 2025.
UDR anunció sus resultados del cuarto trimestre y del año completo 2024, mostrando un rendimiento mixto. En el cuarto trimestre, el ingreso neto por acción cayó un 120% interanual a $(0.02), mientras que el FFO disminuyó un 21% a $0.48. El NOI de tiendas comparables creció un 2.1% interanual en el cuarto trimestre, con un aumento de ingresos del 2.5% y un aumento de gastos del 3.4%.
Para el año completo 2024, el ingreso neto por acción cayó un 81% a $0.26, mientras que el FFOA mostró un modesto aumento del 1% a $2.48. La compañía registró una reserva de préstamo no monetario de $37.3 millones relacionada con su inversión en 1300 Fairmount.
Después del cierre del trimestre, UDR completó la venta de dos propiedades: Leonard Pointe por $127.5 millones y One William por $84.0 millones. La empresa estableció su guía para 2025, con un FFOA proyectado entre $2.45 y $2.55 por acción y un crecimiento del NOI de tiendas comparables del 0.50% al 3.00%. La Junta anunció un aumento del 1.2% en el dividendo anual a $1.72 por acción para 2025.
UDR은(는) 2024년 4분기 및 전체 연도 실적을 발표하며 혼합된 성과를 보였습니다. 4분기 주당 순이익은 전년 대비 120% 감소하여 $(0.02)에 달했으며, FFO는 21% 감소하여 $0.48에 이르렀습니다. 동종 매장 NOI는 4분기에 전년 대비 2.1% 증가하였고, 수익은 2.5%, 비용은 3.4% 증가하였습니다.
2024년 전체 연도 기준으로 주당 순이익은 81% 감소하여 $0.26에 이르렀고, FFOA는 1% 소폭 증가하여 $2.48을 기록했습니다. 회사는 1300 Fairmount 투자에 관련된 비현금 대출 준비금으로 $37.3 백만을 기록했습니다.
분기 종료 후, UDR은 Leonard Pointe를 $127.5 백만, One William을 $84.0 백만에 두 개의 부동산 판매를 완료했습니다. 회사는 2025년 FFOA를 주당 $2.45-$2.55로 예상하며 동일 매장 NOI 성장률을 0.50%-3.00%로 설정했습니다. 이사회는 2025년 주당 $1.72의 연간 배당금을 1.2% 인상하기로 발표했습니다.
UDR a annoncé ses résultats pour le quatrième trimestre et l'année entière 2024, montrant une performance mixte. Au quatrième trimestre, le revenu net par action a diminué de 120% par rapport à l'année précédente, atteignant $(0.02), tandis que le FFO a décru de 21%, s'établissant à $0.48. Le NOI des magasins comparables a augmenté de 2,1% d'une année sur l'autre au quatrième trimestre, avec des revenus en hausse de 2,5% et des dépenses en augmentation de 3,4%.
Pour l'année complète 2024, le revenu net par action a chuté de 81% pour atteindre $0.26, tandis que le FFOA a montré une augmentation modeste de 1% à $2.48. L'entreprise a enregistré une réserve de prêt non monétaire de $37,3 millions liée à son investissement dans 1300 Fairmount.
Après la fin du trimestre, UDR a finalisé la vente de deux propriétés : Leonard Pointe pour $127,5 millions et One William pour $84,0 millions. L'entreprise a établi ses prévisions pour 2025, avec un FFOA projeté entre $2,45 et $2,55 par action et une croissance du NOI des magasins comparables de 0,50% à 3,00%. Le conseil d'administration a annoncé une augmentation de 1,2% du dividende annuel à $1,72 par action pour 2025.
UDR hat seine Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 bekannt gegeben und zeigt eine gemischte Leistung. Im vierten Quartal sank das Nettoeinkommen pro Aktie im Jahresvergleich um 120% auf $(0.02), während FFO um 21% auf $0.48 fiel. Der NOI aus vergleichbaren Geschäften wuchs im vierten Quartal um 2,1% im Vergleich zum Vorjahr, mit einem Umsatzanstieg von 2,5% und einem Anstieg der Ausgaben um 3,4%.
Für das gesamte Jahr 2024 fiel das Nettoeinkommen pro Aktie um 81% auf $0.26, während FFOA einen moderaten Anstieg von 1% auf $2.48 zeigte. Das Unternehmen verzeichnete eine nicht liquiditätswirksame Kreditreserve von $37,3 Millionen in Zusammenhang mit seiner Investition in 1300 Fairmount.
Nach dem Quartalsende schloss UDR den Verkauf von zwei Immobilien ab: Leonard Pointe für $127,5 Millionen und One William für $84,0 Millionen. Das Unternehmen legte seine Prognose für 2025 fest, mit einem für FFOA prognostizierten Wert von $2.45-$2.55 pro Aktie und einem Wachstum des NOI aus vergleichbaren Geschäften von 0,50%-3,00%. Der Vorstand gab eine Erhöhung der jährlichen Dividende um 1,2% auf $1,72 pro Aktie für 2025 bekannt.
- Same-Store NOI grew 2.1% YOY in Q4 2024
- FFOA per share increased 1% in full-year 2024
- Successfully completed $211.5 million in property sales
- Increased annual dividend by 1.2% for 2025
- Maintained high occupancy rate above 97%
- Q4 Net Income per share declined 120% YOY to $(0.02)
- FFO per share decreased 21% YOY in Q4 to $0.48
- Full-year Net Income per share fell 81% to $0.26
- $37.3 million non-cash loan reserve recorded for 1300 Fairmount investment
- Operating expenses increased 3.4% YOY in Q4
Insights
UDR's Q4 and full-year 2024 results reveal a complex operational landscape with both challenges and opportunities. The most notable concern is the significant decline in Net Income, with Q4 showing a
The company's operational metrics show resilience despite market headwinds. Same-Store NOI growth of
Strategic capital allocation is evident in recent transactions, with the sale of two properties for combined proceeds of
The 2025 guidance suggests cautious optimism, with FFOA projected at
The balance sheet remains well-positioned with only
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Quarter Ended December 31 |
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Metric |
4Q 2024 Actual |
4Q 2024 Guidance |
4Q 2023 Actual |
$ Change vs. Prior Year Period |
% Change vs. Prior Year Period |
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Net Income per diluted share |
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(120)% |
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FFO per diluted share |
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(21)% |
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FFOA per diluted share |
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AFFO per diluted share |
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Full-Year (“FY”) Ended December 31 |
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Metric |
FY 2024 Actual |
FY 2024 Guidance |
FY 2023 Actual |
$ Change vs. Prior Year Period |
% Change vs. Prior Year Period |
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Net Income per diluted share |
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(81)% |
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FFO per diluted share |
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(7)% |
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FFOA per diluted share |
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AFFO per diluted share |
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(1)% |
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- Same-Store (“SS”) results for the fourth quarter 2024 versus the fourth quarter 2023, the fourth quarter 2024 versus the third quarter 2024, and full-year 2024 versus full-year 2023 are summarized below.
SS Growth / (Decline) |
Year-Over-Year (“YOY”): 4Q 2024 vs. 4Q 2023 |
Sequential: 4Q 2024 vs. 3Q 2024 |
Full-Year: 2024 vs. 2023 |
Revenue |
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Expense |
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(1.9)% |
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Net Operating Income (“NOI”) |
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-
As previously announced, during the fourth quarter the Company,
-
Received a
$38.5 million Washington, D.C. -
Recorded a non-cash loan reserve of
$37.3 million $0.10 Philadelphia, PA. Based on property-level fourth quarter 2024 results and the developer’s projected 2025 financial forecast, the Company did not record any income from its investment in 1300 Fairmount for the fourth quarter of 2024 and expects to record approximately$8.0 million $0.02 - Published its sixth annual ESG report.
-
Received a
-
Subsequent to quarter-end, the Company completed the sales of Leonard Pointe, a 188-home apartment community in
New York , for gross proceeds of$127.5 million New Jersey , for gross proceeds of$84.0 million
“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. “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. We will continue to drive value from our strong operating and capital markets acumen, which reinforces UDR as a full-cycle investment.”
Outlook(1)
As shown in the table below, the Company has established the following guidance ranges for the first quarter and full-year 2025.
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1Q 2025 Outlook |
4Q 2024 Actual |
Full-Year 2025 Outlook |
Full-Year 2025 Midpoint |
Full-Year 2024 Actual |
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Net Income per diluted share |
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FFO per diluted share |
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FFOA per diluted share |
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YOY Growth: |
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SS Revenue |
N/A |
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SS Expense |
N/A |
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SS NOI |
N/A |
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(1) |
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Additional assumptions for the Company’s first quarter and full-year 2025 outlook can be found on Attachment 13 of the Company’s related quarterly Supplemental Financial Information (“Supplement”). A reconciliation of GAAP Net Income per diluted share to FFO per diluted share and FFOA per diluted share can be found on Attachment 14(D) of the Company’s related quarterly Supplement. Non-GAAP financial measures and other terms, as used in this earnings release, are defined and further explained on Attachments 14(A) through 14(D), “Definitions and Reconciliations,” of the Company’s related quarterly Supplement. |
Operating Results
In the fourth quarter, total revenue increased by
“Same-Store revenue, expense, and NOI growth in the fourth quarter was better than expected, which drove full-year 2024 Same-Store NOI growth above the high-end of our previous guidance range,” said Mike Lacy, UDR’s Chief Operating Officer. “We begin 2025 in a position of strength with Same-Store occupancy above 97 percent, resident retention that continues to exceed our expectations, renewal rate growth in the mid-4 percent range, and continued innovation leading to mid-to-high single digit growth from our various other income initiatives.”
In the tables below, the Company has presented YOY, sequential, and full-year Same-Store results by region.
Summary of Same-Store Results in the Fourth Quarter 2024 versus the Fourth Quarter 2023
Region |
Revenue Growth / (Decline) |
Expense Growth / (Decline) |
NOI Growth / (Decline) |
% of Same-Store Portfolio(1) |
Physical Occupancy(2) |
YOY Change in Occupancy |
||||||
West |
3.1 |
% |
5.9 |
% |
2.2 |
% |
30.5 |
% |
96.9 |
% |
0.3 |
% |
Mid-Atlantic |
4.5 |
% |
3.1 |
% |
5.1 |
% |
20.9 |
% |
97.1 |
% |
(0.1 |
)% |
Northeast |
3.2 |
% |
3.9 |
% |
2.9 |
% |
17.3 |
% |
96.7 |
% |
(0.4 |
)% |
Southeast |
0.5 |
% |
3.9 |
% |
(1.1 |
)% |
13.6 |
% |
96.9 |
% |
0.0 |
% |
Southwest |
0.0 |
% |
0.9 |
% |
(0.5 |
)% |
10.8 |
% |
96.7 |
% |
0.1 |
% |
Other Markets |
0.7 |
% |
(1.0 |
)% |
1.5 |
% |
6.9 |
% |
96.5 |
% |
(0.2 |
)% |
Total |
2.5 |
% |
3.4 |
% |
2.1 |
% |
100.0 |
% |
96.8 |
% |
0.0 |
% |
(1) |
|
Based on 4Q 2024 Same-Store NOI. For definitions of terms, please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement. |
(2) |
|
Weighted average Same-Store physical occupancy for the quarter. |
Summary of Same-Store Results in the Fourth Quarter 2024 versus the Third Quarter 2024
Region |
Revenue Growth / (Decline) |
Expense Growth / (Decline) |
NOI Growth / (Decline) |
% of Same-Store Portfolio(1) |
Physical Occupancy(2) |
Sequential Change in Occupancy |
||||||
West |
0.5 |
% |
0.5 |
% |
0.5 |
% |
30.5 |
% |
96.9 |
% |
0.6 |
% |
Mid-Atlantic |
1.4 |
% |
(4.4 |
)% |
4.1 |
% |
20.9 |
% |
97.1 |
% |
0.7 |
% |
Northeast |
0.4 |
% |
(4.3 |
)% |
3.0 |
% |
17.3 |
% |
96.7 |
% |
0.3 |
% |
Southeast |
0.7 |
% |
(0.2 |
)% |
1.1 |
% |
13.6 |
% |
96.9 |
% |
1.0 |
% |
Southwest |
0.1 |
% |
1.5 |
% |
(0.8 |
)% |
10.8 |
% |
96.7 |
% |
0.3 |
% |
Other Markets |
(0.2 |
)% |
(6.6 |
)% |
2.6 |
% |
6.9 |
% |
96.5 |
% |
(0.1 |
)% |
Total |
0.6 |
% |
(1.9 |
)% |
1.8 |
% |
100.0 |
% |
96.8 |
% |
0.5 |
% |
(1) |
|
Based on 4Q 2024 Same-Store NOI. For definitions of terms, please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement. |
(2) |
|
Weighted average Same-Store physical occupancy for the quarter. |
Summary of Same-Store Results for Full-Year 2024 versus Full-Year 2023
Region |
Revenue Growth / (Decline) |
Expense Growth / (Decline) |
NOI Growth / (Decline) |
% of Same-Store Portfolio(1) |
Physical Occupancy(2) |
YTD YOY Change in Occupancy |
||||||
West |
2.7 |
% |
4.8 |
% |
2.0 |
% |
31.7 |
% |
96.7 |
% |
0.2 |
% |
Mid-Atlantic |
3.8 |
% |
4.5 |
% |
3.4 |
% |
21.2 |
% |
97.0 |
% |
0.1 |
% |
Northeast |
3.4 |
% |
5.8 |
% |
2.2 |
% |
17.7 |
% |
96.9 |
% |
0.0 |
% |
Southeast |
0.6 |
% |
2.2 |
% |
(0.1 |
)% |
14.2 |
% |
96.6 |
% |
0.2 |
% |
Southwest |
(0.7 |
)% |
2.5 |
% |
(2.5 |
)% |
8.8 |
% |
96.5 |
% |
(0.2 |
)% |
Other Markets |
1.2 |
% |
5.0 |
% |
(0.2 |
)% |
6.4 |
% |
96.8 |
% |
0.0 |
% |
Total |
2.3 |
% |
4.3 |
% |
1.5 |
% |
100.0 |
% |
96.8 |
% |
0.1 |
% |
(1) |
|
Based on full-year 2024 Same-Store NOI. For definitions of terms, please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement. |
(2) |
|
Weighted average Same-Store physical occupancy for full-year 2024. |
Transactional Activity
Subsequent to quarter-end, the Company completed the sales of Leonard Pointe, a 188-home apartment community in
Debt and Preferred Equity Program Activity
At the end of the fourth quarter, the Company had fully funded its
As previously announced, during the quarter the Company,
-
Received a
$38.5 million Washington, D.C. , in connection with the sponsor refinancing the joint venture’s senior construction loan. The paydown represents approximately 55 percent of the Company’s preferred equity investment in the joint venture. The Company chose to maintain its remaining investment balance of approximately$30.5 million -
Recorded a non-cash loan reserve of
$37.3 million $0.10 Philadelphia, PA. Based on property-level fourth quarter 2024 results and the developer’s projected 2025 financial forecast, the Company did not record any income from its investment in 1300 Fairmount for the fourth quarter of 2024 and expects to record approximately$8.0 million $0.02
Capital Markets and Balance Sheet Activity
The Company’s total indebtedness as of December 31, 2024 was
In the table below, the Company has presented select balance sheet metrics for the quarter ended December 31, 2024 and the comparable prior year period.
|
Quarter Ended December 31 |
|||||
Balance Sheet Metric |
4Q 2024 |
4Q 2023 |
Change |
|||
Weighted Average Interest Rate |
|
|
(0.02)% |
|||
Weighted Average Years to Maturity(1) |
5.2 |
5.6 |
(0.4) |
|||
Consolidated Fixed Charge Coverage Ratio |
5.0x |
5.0x |
0.0x |
|||
Consolidated Debt as a percentage of Total Assets |
|
|
(0.2)% |
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Consolidated Net Debt-to-EBITDAre(2) |
5.5x |
5.6x |
(0.1)x |
|||
(1) |
|
If the Company’s commercial paper balance was refinanced using its line of credit, the weighted average years to maturity would have been 5.4 years with extensions or 5.3 years without extensions for 4Q 2024 and 5.8 years both with and without extensions for 4Q 2023. |
(2) |
|
Defined as EBITDAre - adjusted for non-recurring items. A reconciliation of GAAP Net Income per share to EBITDAre - adjusted for non-recurring items and GAAP Total Debt to Net Debt can be found on Attachment 4(C) of the Company’s related quarterly Supplement. |
Executive Leadership
As previously announced, subsequent to quarter-end the Company,
- Promoted Mike Lacy to Chief Operating Officer after having served the Company as Senior Vice President – Operations since 2019.
- Appointed Joe Fisher to Chief Investment Officer (“CIO”) in addition to his responsibilities as President and Chief Financial Officer (“CFO”). In this role, Mr. Fisher has taken on the additional responsibilities of overseeing the Company’s investment and development functions.
- Announced it will initiate an executive search process to recruit a new CFO. Upon the successful hire of a new CFO, Mr. Fisher will relinquish his responsibilities in that capacity and retain the roles of President and CIO.
Corporate Responsibility
During the quarter, the Company published its sixth annual ESG report, which detailed UDR’s ongoing commitment to engaging in socially responsible ESG activities to contribute to a lower-carbon future.
Dividend
As previously announced, the Company’s Board of Directors declared a regular quarterly dividend on its common stock for the fourth quarter 2024 in the amount of
In conjunction with this release, the Company’s Board of Directors has announced a 2025 annualized dividend per share of
Supplemental Financial Information
The Company offers Supplemental Financial Information that provides details on the financial position and operating results of the Company which, along with the related Investor Presentation, is available on the Investor Relations section of the Company's website at ir.udr.com.
Attachment 14(A) |
| Definitions and Reconciliations |
| December 31, 2024 |
| (Unaudited) |
| Acquired Communities: The Company defines Acquired Communities as those communities acquired by the Company, other than development and redevelopment activity, that did not achieve stabilization as of the most recent quarter. |
| Adjusted Funds from Operations ("AFFO") attributable to common stockholders and unitholders: The Company defines AFFO as FFO as Adjusted attributable to common stockholders and unitholders less recurring capital expenditures on consolidated communities that are necessary to help preserve the value of and maintain functionality at our communities. |
| Management considers AFFO a useful supplemental performance metric for investors as it is more indicative of the Company's operational performance than FFO or FFO as Adjusted. AFFO is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. The Company believes that net income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to AFFO. Management believes that AFFO is a widely recognized measure of the operations of REITs, and presenting AFFO enables investors to assess our performance in comparison to other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not always be comparable to AFFO calculated by other REITs. AFFO should not be considered as an alternative to net income/(loss) (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. A reconciliation from net income/(loss) attributable to common stockholders to AFFO is provided on Attachment 2. |
| Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items: The Company defines Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items as Consolidated Interest Coverage Ratio - adjusted for non-recurring items divided by total consolidated interest, excluding the impact of costs associated with debt extinguishment, plus preferred dividends. |
| Management considers Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation of the components that comprise Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure. |
| Consolidated Interest Coverage Ratio - adjusted for non-recurring items: The Company defines Consolidated Interest Coverage Ratio - adjusted for non-recurring items as Consolidated EBITDAre – adjusted for non-recurring items divided by total consolidated interest, excluding the impact of costs associated with debt extinguishment. |
| Management considers Consolidated Interest Coverage Ratio - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation of the components that comprise Consolidated Interest Coverage Ratio - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure. |
| Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items: The Company defines Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items as total consolidated debt net of cash and cash equivalents divided by annualized Consolidated EBITDAre - adjusted for non-recurring items. Consolidated EBITDAre - adjusted for non-recurring items is defined as EBITDAre excluding the impact of income/(loss) from unconsolidated entities, adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures and other non-recurring items including, but not limited to casualty-related charges/(recoveries), net of wholly owned communities. |
| Management considers Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation between net income/(loss) and Consolidated EBITDAre - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure. |
| Contractual Return Rate: The Company defines Contractual Return Rate as the rate of return or interest rate that the Company is entitled to receive on a preferred equity investment or loan, as specified in the applicable agreement. |
| Controllable Expenses: The Company refers to property operating and maintenance expenses as Controllable Expenses. |
| Development Communities: The Company defines Development Communities as those communities recently developed or under development by the Company, that are currently majority owned by the Company and have not achieved stabilization as of the most recent quarter. |
| Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre): The Company defines EBITDAre as net income/(loss) (computed in accordance with GAAP), plus interest expense, including costs associated with debt extinguishment, plus real estate depreciation and amortization, plus other depreciation and amortization, plus (minus) income tax provision/(benefit), (minus) plus net gain/(loss) on the sale of depreciable real estate owned, plus impairment write-downs of depreciable real estate, plus the adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or Nareit, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the Nareit definition, or that interpret the Nareit definition differently than the Company does. The White Paper on EBITDAre was approved by the Board of Governors of Nareit in September 2017. |
| Management considers EBITDAre a useful metric for investors as it provides an additional indicator of the Company’s ability to incur and service debt, and enables investors to assess our performance against that of its peer REITs. EBITDAre should be considered along with, but not as an alternative to, net income and cash flow as a measure of the Company’s activities in accordance with GAAP. EBITDAre does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs. A reconciliation between net income/(loss) and EBITDAre is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure. |
| Effective Blended Lease Rate Growth: The Company defines Effective Blended Lease Rate Growth as the combined proportional growth as a result of Effective New Lease Rate Growth and Effective Renewal Lease Rate Growth. Management considers Effective Blended Lease Rate Growth a useful metric for investors as it assesses combined proportional market-level, new and in-place demand trends. |
| Effective New Lease Rate Growth: The Company defines Effective New Lease Rate Growth as the increase/(decrease) in gross potential rent realized less concessions on a straight-line basis for the new lease term (current effective rent) versus prior resident effective rent for the prior lease term on new leases commenced during the current quarter. Management considers Effective New Lease Rate Growth a useful metric for investors as it assesses market-level new demand trends. |
| Effective Renewal Lease Rate Growth: The Company defines Effective Renewal Lease Rate Growth as the increase/(decrease) in gross potential rent realized less concessions on a straight-line basis for the new lease term (current effective rent) versus prior effective rent for the prior lease term on renewed leases commenced during the current quarter. Management considers Effective Renewal Lease Rate Growth a useful metric for investors as it assesses market-level, in-place demand trends. |
| Estimated Quarter of Completion: The Company defines Estimated Quarter of Completion of a development or redevelopment project as the date on which construction is expected to be completed, but it does not represent the date of stabilization. |
Attachment 14(B) |
||||||||||||||||
| Definitions and Reconciliations | ||||||||||||||||
| December 31, 2024 | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Funds from Operations as Adjusted ("FFO as Adjusted") attributable to common stockholders and unitholders: The Company defines FFO as Adjusted attributable to common stockholders and unitholders as FFO excluding the impact of other non-comparable items including, but not limited to, acquisition-related costs, prepayment costs/benefits associated with early debt retirement, impairment write-downs or gains and losses on sales of real estate or other assets incidental to the main business of the Company and income taxes directly associated with those gains and losses, casualty-related expenses and recoveries, severance costs and legal and other costs. | ||||||||||||||||
| Management believes that FFO as Adjusted is useful supplemental information regarding our operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. FFO as Adjusted is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. The Company believes that net income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to FFO as Adjusted. However, other REITs may use different methodologies for calculating FFO as Adjusted or similar FFO measures and, accordingly, our FFO as Adjusted may not always be comparable to FFO as Adjusted or similar FFO measures calculated by other REITs. FFO as Adjusted should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. A reconciliation from net income attributable to common stockholders to FFO as Adjusted is provided on Attachment 2. | ||||||||||||||||
| Funds from Operations ("FFO") attributable to common stockholders and unitholders: The Company defines FFO attributable to common stockholders and unitholders as net income/(loss) attributable to common stockholders (computed in accordance with GAAP), excluding impairment write-downs of depreciable real estate related to the main business of the Company or of investments in non-consolidated investees that are directly attributable to decreases in the fair value of depreciable real estate held by the investee, gains and losses from sales of depreciable real estate related to the main business of the Company and income taxes directly associated with those gains and losses, plus real estate depreciation and amortization, and after adjustments for noncontrolling interests, and the Company’s share of unconsolidated partnerships and joint ventures. This definition conforms with the National Association of Real Estate Investment Trust's definition issued in April 2002 and restated in November 2018. In the computation of diluted FFO, if OP Units, DownREIT Units, unvested restricted stock, unvested LTIP Units, stock options, and the shares of Series E Cumulative Convertible Preferred Stock are dilutive, they are included in the diluted share count. | ||||||||||||||||
| Management considers FFO a useful metric for investors as the Company uses FFO in evaluating property acquisitions and its operating performance and believes that FFO should be considered along with, but not as an alternative to, net income and cash flow as a measure of the Company's activities in accordance with GAAP. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs. A reconciliation from net income/(loss) attributable to common stockholders to FFO is provided on Attachment 2. | ||||||||||||||||
| Held For Disposition Communities: The Company defines Held for Disposition Communities as those communities that were held for sale as of the end of the most recent quarter. | ||||||||||||||||
| Joint Venture Reconciliation at UDR's weighted average ownership interest: | ||||||||||||||||
| In thousands |
|
4Q 2024 |
|
YTD 2024 | ||||||||||||
| Income/(loss) from unconsolidated entities | $ |
8,984 |
|
$ |
20,235 |
|
||||||||||
| Management fee |
|
1,154 |
|
|
3,728 |
|
||||||||||
| Interest expense |
|
4,614 |
|
|
18,296 |
|
||||||||||
| Depreciation |
|
12,284 |
|
|
52,060 |
|
||||||||||
| General and administrative |
|
49 |
|
|
530 |
|
||||||||||
| Preferred Equity Program (excludes loans) |
|
(8,154 |
) |
|
(33,824 |
) |
||||||||||
| Other (income)/expense |
|
208 |
|
|
117 |
|
||||||||||
| Realized and unrealized (gain)/loss on real estate technology investments, net of tax |
|
(4,010 |
) |
|
(9,959 |
) |
||||||||||
| Impairment loss from unconsolidated joint ventures |
|
- |
|
|
8,083 |
|
||||||||||
| Total Joint Venture NOI at UDR's Ownership Interest | $ |
15,129 |
|
$ |
59,266 |
|
||||||||||
| Net Operating Income (“NOI”): The Company defines NOI as rental income less direct property rental expenses. Rental income represents gross market rent and other revenues less adjustments for concessions, vacancy loss and bad debt. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI is property management expense, which is calculated as |
||||||||||||||||
| Management considers NOI a useful metric for investors as it is a more meaningful representation of a community’s continuing operating performance than net income as it is prior to corporate-level expense allocations, general and administrative costs, capital structure and depreciation and amortization and is a widely used input, along with capitalization rates, in the determination of real estate valuations. A reconciliation from net income/(loss) attributable to UDR, Inc. to NOI is provided below. | ||||||||||||||||
| In thousands |
|
4Q 2024 |
|
|
3Q 2024 |
|
|
2Q 2024 |
|
|
1Q 2024 |
|
|
4Q 2023 |
|
|
| Net income/(loss) attributable to UDR, Inc. | $ |
(5,044 |
) |
$ |
22,597 |
|
$ |
28,883 |
|
$ |
43,149 |
|
$ |
32,986 |
|
|
| Property management |
|
13,665 |
|
|
13,588 |
|
|
13,433 |
|
|
13,379 |
|
|
13,354 |
|
|
| Other operating expenses |
|
9,613 |
|
|
6,382 |
|
|
7,593 |
|
|
6,828 |
|
|
8,320 |
|
|
| Real estate depreciation and amortization |
|
165,446 |
|
|
170,276 |
|
|
170,488 |
|
|
169,858 |
|
|
170,643 |
|
|
| Interest expense |
|
49,625 |
|
|
50,214 |
|
|
47,811 |
|
|
48,062 |
|
|
47,347 |
|
|
| Casualty-related charges/(recoveries), net |
|
6,430 |
|
|
1,473 |
|
|
998 |
|
|
6,278 |
|
|
(224 |
) |
|
| General and administrative |
|
25,469 |
|
|
20,890 |
|
|
20,136 |
|
|
17,810 |
|
|
20,838 |
|
|
| Tax provision/(benefit), net |
|
312 |
|
|
(156 |
) |
|
386 |
|
|
337 |
|
|
93 |
|
|
| (Income)/loss from unconsolidated entities |
|
(8,984 |
) |
|
1,880 |
|
|
(4,046 |
) |
|
(9,085 |
) |
|
20,219 |
|
|
| Interest income and other (income)/expense, net |
|
30,858 |
|
|
(6,159 |
) |
|
(6,498 |
) |
|
(5,865 |
) |
|
(9,371 |
) |
|
| Joint venture management and other fees |
|
(2,288 |
) |
|
(2,072 |
) |
|
(1,992 |
) |
|
(1,965 |
) |
|
(2,379 |
) |
|
| Other depreciation and amortization |
|
6,381 |
|
|
4,029 |
|
|
4,679 |
|
|
4,316 |
|
|
4,397 |
|
|
| (Gain)/loss on sale of real estate owned |
|
- |
|
|
- |
|
|
- |
|
|
(16,867 |
) |
|
(25,308 |
) |
|
| Net income/(loss) attributable to noncontrolling interests |
|
(479 |
) |
|
1,480 |
|
|
2,130 |
|
|
3,161 |
|
|
2,975 |
|
|
| Total consolidated NOI | $ |
291,004 |
|
$ |
284,422 |
|
$ |
284,001 |
|
$ |
279,396 |
|
$ |
283,890 |
|
|
Attachment 14(C) |
| Definitions and Reconciliations |
| December 31, 2024 |
| (Unaudited) |
| NOI Enhancing Capital Expenditures ("Cap Ex"): The Company defines NOI Enhancing Capital Expenditures as expenditures that result in increased income generation or decreased expense growth over time. |
| Management considers NOI Enhancing Capital Expenditures a useful metric for investors as it quantifies the amount of capital expenditures that are expected to grow, not just maintain, revenues or to decrease expenses. |
| Non-Mature Communities: The Company defines Non-Mature Communities as those communities that have not met the criteria to be included in same-store communities. |
| Non-Residential / Other: The Company defines Non-Residential / Other as non-apartment components of mixed-use properties, land held, properties being prepared for redevelopment and properties where a material change in home count has occurred. |
| Other Markets: The Company defines Other Markets as the accumulation of individual markets where it operates less than 1,000 Same-Store homes. Management considers Other Markets a useful metric as the operating results for the individual markets are not representative of the fundamentals for those markets as a whole. |
| Physical Occupancy: The Company defines Physical Occupancy as the number of occupied homes divided by the total homes available at a community. |
| QTD Same-Store Communities: The Company defines QTD Same-Store Communities as those communities Stabilized for five full consecutive quarters. These communities were owned and had stabilized operating expenses as of the beginning of the quarter in the prior year, were not in process of any substantial redevelopment activities, and were not held for disposition. |
| Recurring Capital Expenditures: The Company defines Recurring Capital Expenditures as expenditures that are necessary to help preserve the value of and maintain functionality at its communities. |
| Redevelopment Communities: The Company generally defines Redevelopment Communities as those communities where substantial redevelopment is in progress. Based upon the level of material impact the redevelopment has on the community (operations, occupancy levels, and future rental rates), the community may or may not maintain Stabilization. As such, for each redevelopment, the Company assesses whether the community remains in Same-Store. |
| Sold Communities: The Company defines Sold Communities as those communities that were disposed of prior to the end of the most recent quarter. |
| Stabilization/Stabilized: The Company defines Stabilization/Stabilized as when a community’s occupancy reaches |
| Stabilized, Non-Mature Communities: The Company defines Stabilized, Non-Mature Communities as those communities that have reached Stabilization but are not yet in the same-store portfolio. |
| Total Revenue per Occupied Home: The Company defines Total Revenue per Occupied Home as rental and other revenues with concessions reported on a straight-line basis, divided by the product of occupancy and the number of apartment homes. |
| Management considers Total Revenue per Occupied Home a useful metric for investors as it serves as a proxy for portfolio quality, both geographic and physical. |
| TRS: The Company’s taxable REIT subsidiaries (“TRS”) focus on making investments and providing services that are otherwise not allowed to be made or provided by a REIT. |
| YTD Same-Store Communities: The Company defines YTD Same-Store Communities as those communities Stabilized for two full consecutive calendar years. These communities were owned and had stabilized operating expenses as of the beginning of the prior year, were not in process of any substantial redevelopment activities, and were not held for disposition. |
Conference Call and Webcast Information
UDR will host a webcast and conference call at 12:00 p.m. Eastern Time on February 6, 2025, to discuss fourth quarter and full-year 2024 results as well as high-level views for 2025. In connection with the conference call, the Company is also providing a related Investor Presentation. The webcast and related Investor Presentation will be available on the Investor Relations section of the Company’s website at ir.udr.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. To participate in the teleconference dial 877-423-9813 for domestic and 201-689-8573 for international. A passcode is not necessary.
Given a high volume of conference calls occurring during this time of year, delays are anticipated when connecting to the live call. As a result, stakeholders and interested parties are encouraged to utilize the Company’s webcast link for its earnings results discussion.
A replay of the conference call will be available through February 16, 2025, by dialing 844-512-2921 for domestic and 412-317-6671 for international and entering the confirmation number, 13751154, when prompted for the passcode. A replay of the call will also be available on the Investor Relations section of the Company’s website at ir.udr.com.
Full Text of the Earnings Report, Supplemental Data, and Investor Presentation
The full text of the earnings report, related quarterly Supplement, and related Investor Presentation will be available on the Investor Relations section of the Company’s website at ir.udr.com.
Forward-Looking Statements
Certain statements made in this press release may constitute “forward-looking statements.” Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “outlook,” “guidance,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, general market and economic conditions, unfavorable changes in the apartment market and economic conditions that could adversely affect occupancy levels and rental rates, the impact of inflation/deflation on rental rates and property operating expenses, the availability of capital and the stability of the capital markets, elevated interest rates, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule or at expected rent and occupancy levels, changes in job growth, home affordability and demand/supply ratio for multifamily housing, development and construction risks that may impact profitability, risks that joint ventures with third parties and Debt and Preferred Equity Program investments do not perform as expected, the failure of automation or technology to help grow net operating income, and other risk factors discussed in documents filed by the Company with the SEC from time to time, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the
About UDR, Inc.
UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted
| Attachment 1 | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) (1) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| In thousands, except per share amounts |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
| REVENUES: | ||||||||||||||||
| Rental income (2) | $ |
420,440 |
|
$ |
410,894 |
|
$ |
1,663,525 |
|
$ |
1,620,658 |
|
||||
| Joint venture management and other fees |
|
2,288 |
|
|
2,379 |
|
|
8,317 |
|
|
6,843 |
|
||||
| Total revenues |
|
422,728 |
|
|
413,273 |
|
|
1,671,842 |
|
|
1,627,501 |
|
||||
| OPERATING EXPENSES: | ||||||||||||||||
| Property operating and maintenance |
|
72,167 |
|
|
68,442 |
|
|
292,572 |
|
|
273,736 |
|
||||
| Real estate taxes and insurance |
|
57,269 |
|
|
58,562 |
|
|
232,130 |
|
|
232,152 |
|
||||
| Property management |
|
13,665 |
|
|
13,354 |
|
|
54,065 |
|
|
52,671 |
|
||||
| Other operating expenses |
|
9,613 |
|
|
8,320 |
|
|
30,416 |
|
|
20,222 |
|
||||
| Real estate depreciation and amortization |
|
165,446 |
|
|
170,643 |
|
|
676,068 |
|
|
676,419 |
|
||||
| General and administrative |
|
25,469 |
|
|
20,838 |
|
|
84,305 |
|
|
69,929 |
|
||||
| Casualty-related charges/(recoveries), net |
|
6,430 |
|
|
(224 |
) |
|
15,179 |
|
|
3,138 |
|
||||
| Other depreciation and amortization |
|
6,381 |
|
|
4,397 |
|
|
19,405 |
|
|
15,419 |
|
||||
| Total operating expenses |
|
356,440 |
|
|
344,332 |
|
|
1,404,140 |
|
|
1,343,686 |
|
||||
| Gain/(loss) on sale of real estate owned |
|
- |
|
|
25,308 |
|
|
16,867 |
|
|
351,193 |
|
||||
| Operating income |
|
66,288 |
|
|
94,249 |
|
|
284,569 |
|
|
635,008 |
|
||||
| Income/(loss) from unconsolidated entities (2) |
|
8,984 |
|
|
(20,219 |
) |
|
20,235 |
|
|
4,693 |
|
||||
| Interest expense |
|
(49,625 |
) |
|
(47,347 |
) |
|
(195,712 |
) |
|
(180,866 |
) |
||||
| Interest income and other income/(expense), net (3) |
|
(30,858 |
) |
|
9,371 |
|
|
(12,336 |
) |
|
17,759 |
|
||||
| Income/(loss) before income taxes |
|
(5,211 |
) |
|
36,054 |
|
|
96,756 |
|
|
476,594 |
|
||||
| Tax (provision)/benefit, net |
|
(312 |
) |
|
(93 |
) |
|
(879 |
) |
|
(2,106 |
) |
||||
| Net Income/(loss) |
|
(5,523 |
) |
|
35,961 |
|
|
95,877 |
|
|
474,488 |
|
||||
| Net (income)/loss attributable to redeemable noncontrolling interests in the OP and DownREIT Partnership |
|
490 |
|
|
(2,967 |
) |
|
(6,246 |
) |
|
(30,104 |
) |
||||
| Net (income)/loss attributable to noncontrolling interests |
|
(11 |
) |
|
(8 |
) |
|
(46 |
) |
|
(31 |
) |
||||
| Net income/(loss) attributable to UDR, Inc. |
|
(5,044 |
) |
|
32,986 |
|
|
89,585 |
|
|
444,353 |
|
||||
| Distributions to preferred stockholders - Series E (Convertible) |
|
(1,197 |
) |
|
(1,222 |
) |
|
(4,835 |
) |
|
(4,848 |
) |
||||
| Net income/(loss) attributable to common stockholders | $ |
(6,241 |
) |
$ |
31,764 |
|
$ |
84,750 |
|
$ |
439,505 |
|
||||
| Income/(loss) per weighted average common share - basic: | ($ |
0.02 |
) |
$ |
0.10 |
|
$ |
0.26 |
|
$ |
1.34 |
|
||||
| Income/(loss) per weighted average common share - diluted: | ($ |
0.02 |
) |
$ |
0.10 |
|
$ |
0.26 |
|
$ |
1.34 |
|
||||
| Common distributions declared per share | $ |
0.425 |
|
$ |
0.42 |
|
$ |
1.70 |
|
$ |
1.68 |
|
||||
| Weighted average number of common shares outstanding - basic |
|
329,854 |
|
|
328,558 |
|
|
329,290 |
|
|
328,765 |
|
||||
| Weighted average number of common shares outstanding - diluted |
|
331,244 |
|
|
328,825 |
|
|
330,116 |
|
|
329,104 |
|
||||
| (1) See Attachment 14 for definitions and other terms. |
| (2) As of December 31, 2024, UDR's residential accounts receivable balance, net of its reserve, was |
| (3) During the three months ended December 31, 2024, UDR recorded a |
| Attachment 2 | ||||||||||||||||
| Funds From Operations | ||||||||||||||||
| (Unaudited) (1) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| In thousands, except per share and unit amounts |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
| Net income/(loss) attributable to common stockholders | $ |
(6,241 |
) |
$ |
31,764 |
|
$ |
84,750 |
|
$ |
439,505 |
|
||||
| Real estate depreciation and amortization |
|
165,446 |
|
|
170,643 |
|
|
676,068 |
|
|
676,419 |
|
||||
| Noncontrolling interests |
|
(479 |
) |
|
2,975 |
|
|
6,292 |
|
|
30,135 |
|
||||
| Real estate depreciation and amortization on unconsolidated joint ventures |
|
12,799 |
|
|
13,293 |
|
|
53,727 |
|
|
42,622 |
|
||||
| Impairment loss from unconsolidated joint ventures |
|
- |
|
|
- |
|
|
8,083 |
|
|
- |
|
||||
| Net (gain)/loss on consolidation |
|
- |
|
|
24,257 |
|
|
- |
|
|
24,257 |
|
||||
| Net (gain)/loss on the sale of depreciable real estate owned, net of tax |
|
- |
|
|
(25,223 |
) |
|
(16,867 |
) |
|
(349,993 |
) |
||||
| Funds from operations ("FFO") attributable to common stockholders and unitholders, basic | $ |
171,525 |
|
$ |
217,709 |
|
$ |
812,053 |
|
$ |
862,945 |
|
||||
| Distributions to preferred stockholders - Series E (Convertible) (2) |
|
1,197 |
|
|
1,222 |
|
|
4,835 |
|
|
4,848 |
|
||||
| FFO attributable to common stockholders and unitholders, diluted | $ |
172,722 |
|
$ |
218,931 |
|
$ |
816,888 |
|
$ |
867,793 |
|
||||
| FFO per weighted average common share and unit, basic | $ |
0.49 |
|
$ |
0.62 |
|
$ |
2.30 |
|
$ |
2.46 |
|
||||
| FFO per weighted average common share and unit, diluted | $ |
0.48 |
|
$ |
0.61 |
|
$ |
2.29 |
|
$ |
2.45 |
|
||||
| Weighted average number of common shares and OP/DownREIT Units outstanding, basic |
|
353,237 |
|
|
353,076 |
|
|
353,283 |
|
|
351,175 |
|
||||
| Weighted average number of common shares, OP/DownREIT Units, and common stock equivalents outstanding, diluted |
|
357,442 |
|
|
356,252 |
|
|
356,957 |
|
|
354,422 |
|
||||
| Impact of adjustments to FFO: | ||||||||||||||||
| Variable upside participation on preferred equity investment, net | $ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
(204 |
) |
||||
| Legal and other costs |
|
6,320 |
|
|
3,763 |
|
|
13,315 |
|
|
2,869 |
|
||||
| Realized and unrealized (gain)/loss on real estate technology investments, net of tax |
|
(3,406 |
) |
|
(2,872 |
) |
|
(8,019 |
) |
|
(3,051 |
) |
||||
| Severance costs |
|
6,006 |
|
|
4,164 |
|
|
10,556 |
|
|
4,164 |
|
||||
| Provision for loan loss (3) |
|
37,271 |
|
|
- |
|
|
37,271 |
|
|
- |
|
||||
| Casualty-related charges/(recoveries) |
|
6,430 |
|
|
(224 |
) |
|
15,179 |
|
|
3,138 |
|
||||
| Total impact of adjustments to FFO | $ |
52,621 |
|
$ |
4,831 |
|
$ |
68,302 |
|
$ |
6,916 |
|
||||
| FFO as Adjusted attributable to common stockholders and unitholders, diluted | $ |
225,343 |
|
$ |
223,762 |
|
$ |
885,190 |
|
$ |
874,709 |
|
||||
| FFO as Adjusted per weighted average common share and unit, diluted | $ |
0.63 |
|
$ |
0.63 |
|
$ |
2.48 |
|
$ |
2.47 |
|
||||
| Recurring capital expenditures, inclusive of unconsolidated joint ventures |
|
(31,620 |
) |
|
(30,133 |
) |
|
(105,116 |
) |
|
(90,917 |
) |
||||
| AFFO attributable to common stockholders and unitholders, diluted | $ |
193,723 |
|
$ |
193,629 |
|
$ |
780,074 |
|
$ |
783,792 |
|
||||
| AFFO per weighted average common share and unit, diluted | $ |
0.54 |
|
$ |
0.54 |
|
$ |
2.19 |
|
$ |
2.21 |
|
||||
| (1) See Attachment 14 for definitions and other terms. |
| (2) Series E cumulative convertible preferred shares are dilutive for purposes of calculating FFO per share for the three and twelve months ended December 31, 2024 and December 31, 2023. Consequently, distributions to Series E cumulative convertible preferred stockholders are added to FFO and the weighted average number of Series E cumulative convertible preferred shares are included in the denominator when calculating FFO per common share and unit, diluted. |
| (3) See Attachment 1, footnote 3 and Attachment 10(B), footnote 9 for further details. |
| Attachment 3 | ||||||
| Consolidated Balance Sheets | ||||||
| (Unaudited) (1) | ||||||
| December 31, | December 31, | |||||
| In thousands, except share and per share amounts |
|
2024 |
|
|
2023 |
|
| ASSETS | ||||||
| Real estate owned: | ||||||
| Real estate held for investment | $ |
15,994,794 |
|
$ |
15,757,456 |
|
| Less: accumulated depreciation |
|
(6,836,920 |
) |
|
(6,242,686 |
) |
| Real estate held for investment, net |
|
9,157,874 |
|
|
9,514,770 |
|
| Real estate under development | ||||||
| (net of accumulated depreciation of |
|
- |
|
|
160,220 |
|
| Real estate held for disposition | ||||||
| (net of accumulated depreciation of |
|
154,463 |
|
|
81,039 |
|
| Total real estate owned, net of accumulated depreciation |
|
9,312,337 |
|
|
9,756,029 |
|
| Cash and cash equivalents |
|
1,326 |
|
|
2,922 |
|
| Restricted cash |
|
34,101 |
|
|
31,944 |
|
| Notes receivable, net |
|
247,849 |
|
|
228,825 |
|
| Investment in and advances to unconsolidated joint ventures, net |
|
917,483 |
|
|
952,934 |
|
| Operating lease right-of-use assets |
|
186,997 |
|
|
190,619 |
|
| Other assets |
|
197,493 |
|
|
209,969 |
|
| Total assets | $ |
10,897,586 |
|
$ |
11,373,242 |
|
| LIABILITIES AND EQUITY | ||||||
| Liabilities: | ||||||
| Secured debt | $ |
1,139,331 |
|
$ |
1,277,713 |
|
| Unsecured debt |
|
4,687,634 |
|
|
4,520,996 |
|
| Operating lease liabilities |
|
182,275 |
|
|
185,836 |
|
| Real estate taxes payable |
|
46,403 |
|
|
47,107 |
|
| Accrued interest payable |
|
52,631 |
|
|
47,710 |
|
| Security deposits and prepaid rent |
|
61,592 |
|
|
50,528 |
|
| Distributions payable |
|
151,720 |
|
|
149,600 |
|
| Accounts payable, accrued expenses, and other liabilities |
|
115,105 |
|
|
141,311 |
|
| Total liabilities |
|
6,436,691 |
|
|
6,420,801 |
|
| Redeemable noncontrolling interests in the OP and DownREIT Partnership |
|
1,017,355 |
|
|
961,087 |
|
| Equity: | ||||||
| Preferred stock, no par value; 50,000,000 shares authorized at December 31, 2024 and December 31, 2023: | ||||||
| 2,600,678 shares of |
||||||
| and outstanding (2,686,308 shares at December 31, 2023) |
|
43,192 |
|
|
44,614 |
|
| 10,424,485 shares of Series F outstanding (11,867,730 shares at December 31, 2023) |
|
1 |
|
|
1 |
|
| Common stock, |
||||||
| 330,858,719 shares issued and outstanding (329,014,512 shares at December 31, 2023) |
|
3,309 |
|
|
3,290 |
|
| Additional paid-in capital |
|
7,572,480 |
|
|
7,493,217 |
|
| Distributions in excess of net income |
|
(4,179,415 |
) |
|
(3,554,892 |
) |
| Accumulated other comprehensive income/(loss), net |
|
3,638 |
|
|
4,914 |
|
| Total stockholders' equity |
|
3,443,205 |
|
|
3,991,144 |
|
| Noncontrolling interests |
|
335 |
|
|
210 |
|
| Total equity |
|
3,443,540 |
|
|
3,991,354 |
|
| Total liabilities and equity | $ |
10,897,586 |
|
$ |
11,373,242 |
|
| (1) See Attachment 14 for definitions and other terms. |
| Attachment 4(C) | |||
| Selected Financial Information | |||
| (Dollars in Thousands) | |||
| (Unaudited) (1) | |||
| Quarter Ended | |||
| Coverage Ratios | December 31, 2024 | ||
| Net income/(loss) | $ |
(5,523 |
) |
| Adjustments: | |||
| Interest expense, including debt extinguishment and other associated costs |
|
49,625 |
|
| Real estate depreciation and amortization |
|
165,446 |
|
| Other depreciation and amortization |
|
6,381 |
|
| Tax provision/(benefit), net |
|
312 |
|
| Adjustments to reflect the Company's share of EBITDAre of unconsolidated joint ventures |
|
17,413 |
|
| EBITDAre | $ |
233,654 |
|
| Casualty-related charges/(recoveries), net |
|
6,430 |
|
| Legal and other costs |
|
6,320 |
|
| Provision for loan loss |
|
37,271 |
|
| Severance costs |
|
6,006 |
|
| Realized and unrealized (gain)/loss on real estate technology investments |
|
604 |
|
| (Income)/loss from unconsolidated entities |
|
(8,984 |
) |
| Adjustments to reflect the Company's share of EBITDAre of unconsolidated joint ventures |
|
(17,413 |
) |
| Management fee expense on unconsolidated joint ventures |
|
(1,154 |
) |
| Consolidated EBITDAre - adjusted for non-recurring items | $ |
262,734 |
|
| Annualized consolidated EBITDAre - adjusted for non-recurring items | $ |
1,050,936 |
|
| Interest expense, including debt extinguishment and other associated costs |
|
49,625 |
|
| Capitalized interest expense |
|
2,027 |
|
| Total interest | $ |
51,652 |
|
| Preferred dividends | $ |
1,197 |
|
| Total debt | $ |
5,826,965 |
|
| Cash |
|
(1,326 |
) |
| Net debt | $ |
5,825,639 |
|
| Consolidated Interest Coverage Ratio - adjusted for non-recurring items | 5.1 |
x |
|
| Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items | 5.0 |
x |
|
| Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items | 5.5 |
x |
|
| Debt Covenant Overview | |||
| Unsecured Line of Credit Covenants (2) | Required | Actual | Compliance |
| Maximum Leverage Ratio |
≤ |
|
Yes |
| Minimum Fixed Charge Coverage Ratio | ≥1.5x |
4.8x |
Yes |
| Maximum Secured Debt Ratio |
≤ |
|
Yes |
| Minimum Unencumbered Pool Leverage Ratio |
≥ |
|
Yes |
|
|
|
|
| Senior Unsecured Note Covenants (3) | Required |
Actual |
Compliance |
|
|
|
|
| Debt as a percentage of Total Assets |
≤ |
|
Yes |
| Consolidated Income Available for Debt Service to Annual Service Charge | ≥1.5x |
5.6x |
Yes |
| Secured Debt as a percentage of Total Assets |
≤ |
|
Yes |
| Total Unencumbered Assets to Unsecured Debt |
≥ |
|
Yes |
|
|
|
|
| Securities Ratings | Debt |
Outlook |
Commercial Paper |
|
|
|
|
| Moody's Investors Service | Baa1 |
Stable |
P-2 |
| S&P Global Ratings | BBB+ |
Stable |
A-2 |
| Gross | % of | |||||||||||||||||
| Number of | 4Q 2024 NOI (1) | Carrying Value | Total Gross | |||||||||||||||
| Asset Summary | Homes | ( |
% of NOI | ( |
Carrying Value | |||||||||||||
| Unencumbered assets | 46,756 |
$ |
253,639 |
87.2 |
% |
$ |
14,178,541 |
87.4 |
% |
|||||||||
| Encumbered assets |
|
8,940 |
|
|
37,365 |
|
12.8 |
% |
|
2,034,822 |
|
12.6 |
% |
|||||
|
55,696 |
|
$ |
291,004 |
|
100.0 |
% |
$ |
16,213,363 |
|
100.0 |
% |
||||||
| (1) See Attachment 14 for definitions and other terms. | ||||||||||
| (2) As defined in our credit agreement dated September 15, 2021, as amended. | ||||||||||
| (3) As defined in our indenture dated November 1, 1995 as amended, supplemented or modified from time to time. | ||||||||||
| Attachment 14(D) | |||||||||||||
| Definitions and Reconciliations | |||||||||||||
| December 31, 2024 | |||||||||||||
| (Unaudited) | |||||||||||||
| All guidance is based on current expectations of future economic conditions and the judgment of the Company's management team. The following reconciles from GAAP Net income/(loss) per share for full-year 2025 and first quarter of 2025 to forecasted FFO and FFO as Adjusted per share and unit: | |||||||||||||
| Full-Year 2025 | |||||||||||||
| Low | High | ||||||||||||
| Forecasted net income per diluted share | $ |
0.56 |
|
$ |
0.66 |
|
|||||||
| Conversion from GAAP share count |
|
(0.02 |
) |
|
(0.02 |
) |
|||||||
| Net gain on the sale of depreciable real estate owned |
|
(0.14 |
) |
|
(0.14 |
) |
|||||||
| Depreciation |
|
2.01 |
|
|
2.01 |
|
|||||||
| Noncontrolling interests |
|
0.03 |
|
|
0.03 |
|
|||||||
| Preferred dividends |
|
0.01 |
|
|
0.01 |
|
|||||||
| Forecasted FFO per diluted share and unit | $ |
2.45 |
|
$ |
2.55 |
|
|||||||
| Legal and other costs |
|
- |
|
|
- |
|
|||||||
| Casualty-related charges/(recoveries) |
|
- |
|
|
- |
|
|||||||
| Realized/unrealized (gain)/loss on real estate technology investments |
|
- |
|
|
- |
|
|||||||
| Forecasted FFO as Adjusted per diluted share and unit | $ |
2.45 |
|
$ |
2.55 |
|
|||||||
1Q 2025 |
|||||||||||||
| Low | High | ||||||||||||
| Forecasted net income per diluted share | $ |
0.24 |
|
$ |
0.26 |
|
|||||||
| Conversion from GAAP share count |
|
(0.01 |
) |
|
(0.01 |
) |
|||||||
| Net gain on the sale of depreciable real estate owned |
|
(0.14 |
) |
|
(0.14 |
) |
|||||||
| Depreciation |
|
0.50 |
|
|
0.50 |
|
|||||||
| Noncontrolling interests |
|
0.01 |
|
|
0.01 |
|
|||||||
| Preferred dividends |
|
- |
|
|
- |
|
|||||||
| Forecasted FFO per diluted share and unit | $ |
0.60 |
|
$ |
0.62 |
|
|||||||
| Legal and other costs |
|
- |
|
|
- |
|
|||||||
| Casualty-related charges/(recoveries) |
|
- |
|
|
- |
|
|||||||
| Realized/unrealized (gain)/loss on real estate technology investments |
|
- |
|
|
- |
|
|||||||
| Forecasted FFO as Adjusted per diluted share and unit | $ |
0.60 |
|
$ |
0.62 |
|
|||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250204092573/en/
Trent Trujillo
Email: ttrujillo@udr.com
Source: UDR, Inc.
FAQ
What was UDR's Same-Store NOI growth in Q4 2024?
How much did UDR's stock dividend increase for 2025?
What property sales did UDR complete after Q4 2024?
What is UDR's Same-Store NOI growth guidance for 2025?
What was the impact of the 1300 Fairmount loan reserve on UDR's earnings?
