UDR Provides Fourth Quarter 2024 Business Update
UDR Inc. (NYSE: UDR) announced preliminary Q4 2024 financial results. The company expects Funds From Operations as Adjusted (FFOA) per diluted share of $0.63 for Q4 2024 and $2.48 for full-year 2024, aligning with previous guidance.
Same-Store performance showed revenue growth of 2.5% in Q4 2024, with Net Operating Income (NOI) increasing by 2.1%. Physical occupancy improved to 96.8% in Q4 from 96.3% in Q3, though blended lease rate growth declined to -0.6%.
In investment activity, UDR entered agreements to sell two properties: Leonard Pointe for $127.5M and One William for $84.0M, with closings expected in Q1 2025. The company received a $38.5M paydown on its Upton Place investment and expects to record a non-cash loan reserve of approximately $37M related to its 1300 Fairmount investment.
UDR Inc. (NYSE: UDR) ha annunciato i risultati finanziari preliminari per il quarto trimestre del 2024. L'azienda prevede un Funds From Operations aggiustato (FFOA) per azione diluita di $0.63 per il Q4 2024 e $2.48 per l'intero anno 2024, in linea con le indicazioni precedenti.
Le performance delle Same-Store hanno mostrato una crescita dei ricavi del 2.5% nel Q4 2024, con un aumento del Net Operating Income (NOI) del 2.1%. L'occupazione fisica è migliorata al 96.8% nel Q4 rispetto al 96.3% nel Q3, sebbene la crescita del tasso di affitto blended sia diminuita a -0.6%.
In termini di attività di investimento, UDR ha firmato contratti per la vendita di due proprietà: Leonard Pointe per $127.5M e One William per $84.0M, con chiusure previste nel Q1 2025. L'azienda ha ricevuto un rimborso di $38.5M sul suo investimento in Upton Place e si aspetta di registrare una riserva di prestito non monetario di circa $37M relativa al suo investimento in 1300 Fairmount.
UDR Inc. (NYSE: UDR) anunció resultados financieros preliminares para el cuarto trimestre de 2024. La empresa espera un Fondos de Operación Ajustados (FFOA) por acción diluida de $0.63 para el Q4 2024 y $2.48 para todo el año 2024, en línea con las guías anteriores.
El rendimiento de Same-Store mostró un crecimiento de ingresos del 2.5% en el Q4 2024, con un aumento en los Ingresos Operativos Netos (NOI) del 2.1%. La ocupación física mejoró al 96.8% en el Q4 desde el 96.3% en el Q3, aunque el crecimiento de la tasa de alquiler combinada disminuyó a -0.6%.
En cuanto a la actividad de inversión, UDR firmó acuerdos para vender dos propiedades: Leonard Pointe por $127.5M y One William por $84.0M, con cierres esperados en el Q1 2025. La empresa recibió un reembolso de $38.5M en su inversión en Upton Place y espera registrar una reserva de préstamo no monetaria de aproximadamente $37M relacionada con su inversión en 1300 Fairmount.
UDR Inc. (NYSE: UDR)는 2024년 4분기 preliminario 재무 결과를 발표했습니다. 이 회사는 희석 주당 조정된 운영 기금(FFOA)을 2024년 4분기 $0.63 및 2024년 전체 $2.48로 예상하고 있으며, 이전 지침과 일치합니다.
동일 매장 성과는 2024년 4분기 수익 성장률이 2.5%를 기록했으며, 순 운용 수익(NO)의 증가율은 2.1%로 나타났습니다. 물리적 점유율은 3분기의 96.3%에서 4분기에는 96.8%로 향상되었지만, 혼합 임대료 성장률은 -0.6%로 감소했습니다.
투자 활동으로 UDR은 두 개의 재산을 판매하기 위한 계약을 체결했습니다: Leonard Pointe는 $127.5M, One William은 $84.0M에 거래되며, 2025년 1분기 중에 마무리될 예정입니다. 이 회사는 Upton Place 투자에 대해 $38.5M의 상환을 받았으며, 1300 Fairmount 투자의 약 $37M과 관련하여 비현금 대출 준비금을 기록할 것으로 예상하고 있습니다.
UDR Inc. (NYSE: UDR) a annoncé des résultats financiers préliminaires pour le quatrième trimestre de 2024. L'entreprise s'attend à un Fonds d'Opérations Ajusté (FFOA) par action diluée de $0.63 pour le Q4 2024 et $2.48 pour l'année entière 2024, conformément aux indications précédentes.
Les performances des Same-Store ont montré une croissance des revenus de 2.5% au Q4 2024, avec un revenu net d'exploitation (NOI) augmentant de 2.1%. L'occupation physique s'est améliorée à 96.8% au Q4 contre 96.3% au Q3, bien que la croissance des taux de location mixte ait diminué à -0.6%.
Concernant l'activité d'investissement, UDR a conclu des accords pour vendre deux propriétés : Leonard Pointe pour $127.5M et One William pour $84.0M, avec des clôtures attendues au Q1 2025. L'entreprise a reçu un remboursement de $38.5M sur son investissement à Upton Place et prévoit d'enregistrer une réserve de prêt non monétaire d'environ $37M liée à son investissement à 1300 Fairmount.
UDR Inc. (NYSE: UDR) hat vorläufige Finanzzahlen für das 4. Quartal 2024 bekannt gegeben. Das Unternehmen erwartet eine Funds From Operations Adjusted (FFOA) von $0.63 für das Q4 2024 und $2.48 für das Gesamtjahr 2024, was mit den vorherigen Prognosen übereinstimmt.
Die Same-Store-Leistung zeigte im Q4 2024 ein Umsatzwachstum von 2.5%, während das Net Operating Income (NOI) um 2.1% stieg. Die physische Belegschaft verbesserte sich im Q4 auf 96.8%, verglichen mit 96.3% im Q3, obwohl das Wachstum des gemischten Mietpreises auf -0.6% zurückging.
Im Investitionsbereich trat UDR Verträge zum Verkauf von zwei Immobilien ein: Leonard Pointe für $127.5M und One William für $84.0M, mit Schließungen, die im Q1 2025 erwartet werden. Das Unternehmen erhielt eine Rückzahlung von $38.5M zu seiner Upton Place-Investition und erwartet, eine nicht monetäre Kreditreserve von etwa $37M im Zusammenhang mit seiner Investition in 1300 Fairmount zu erfassen.
- FFOA per share meets guidance at $0.63 for Q4 and $2.48 for full-year 2024
- Same-Store revenue growth of 2.5% in Q4 2024
- NOI growth of 2.1% in Q4 2024
- Physical occupancy improved to 96.8% in Q4
- Strategic asset sales totaling $211.5M expected to close in Q1 2025
- Effective blended lease rate growth declined to -0.6% in Q4
- $37M non-cash loan reserve charge for 1300 Fairmount investment
- Expected $8M reduction in 2025 income from 1300 Fairmount investment
- Same-Store expenses increased by 3.4% in Q4 2024
Insights
Financial and Operating Results
Funds From Operations as Adjusted (“FFOA”) per diluted share are expected to be
Preliminary Same-Store (“SS”) results for the fourth quarter 2024 and full-year 2024 are summarized below and are better than the midpoints of previously provided guidance.
SS Growth / (Decline) |
Year-Over-Year: 4Q 2024 vs. 4Q 2023 |
Full-Year: 2024 vs. 2023 |
Revenue |
|
|
Expense |
|
|
Net Operating Income (“NOI”) |
|
|
SS Metric |
3Q 2024, as reported |
4Q 2024, preliminary |
Weighted Average Physical Occupancy |
|
|
Effective Blended Lease Rate Growth |
|
(0.6)% |
Investment Activity
During the fourth quarter, the Company,
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Entered into agreements to sell 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
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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 investment balance of approximately$30.0 million
-
Expects to record a non-cash loan reserve of approximately
$37 million $0.10 Philadelphia, PA , which will be reflected in the Company’s reported Net Income and Funds From Operations (“FFO”). 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
Definitions
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 in gross potential rent realized less concessions 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 in gross potential rent realized less concessions 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.
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.
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.
Physical Occupancy: The Company defines Physical Occupancy as the number of occupied homes divided by the total homes available at a community.
Non-GAAP financial measures and other terms, as used in this press release, are defined and further explained on Attachments 14(A) through 14(D), “Definitions and Reconciliations,” of the Company’s third quarter 2024 earnings Supplement.
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, rising 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 properties in targeted
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UDR, Inc.
Trent Trujillo
ttrujillo@udr.com
720-283-6135
Source: UDR, Inc.
FAQ
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