Headquartered in Highlands Ranch, Colorado, UDR, Inc. (UDR) is a leading multi-family apartment real estate investment trust (REIT) in the U.S. Valued at $13.3 billion by market cap, it focuses on owning, operating, acquiring, developing, redeveloping, renovating, and managing apartment communities in high barrier-to-entry markets. UDR is expected to release its fiscal 2024 Q2 earnings results after the market closes on Tuesday, July 30.
Ahead of the event, analysts predict UDR will report an FFO of $0.61 per share, unchanged from the year-ago quarter. The company has met the bottom-line estimates in three of the last four quarters, missing one other quarter. In the previous quarter, UDR’s FFO grew 1.7% year over year to $0.61, in line with the estimate.
For the full year, analysts expect UDR to report an FFO of $2.45, marginally down from $2.47 in fiscal 2023. However, its FFO is expected to rise 3.7% annually to $2.45 in fiscal 2025.
In 2024, UDR stock surged 5.4%, trailing behind the broader S&P 500 Index's ($SPX) 17.7% gains on a YTD basis. However, the stock has surpassed the Real Estate Select Sector SPDR Fund’s (XLRE) marginal decline during the same period.
UDR strategically targets areas with low housing affordability, favorable multifamily housing conditions, and strong job markets, enhancing its resilience to market cycles. On April 30, 2024, UDR reported $413.6 million in revenue, surpassing analyst estimates of $408.6 million. However, it failed to meet its bottom-line estimates, and as a result, the stock dropped marginally following the Q1 earnings release.
Nonetheless, UDR raised its full-year 2024 FFO guidance, now expecting between $2.38 and $2.50 per share, driven by growth in same-store communities and external investments. Additionally, the stock saw an upward trend in the week’s trading sessions following June 13, when UDR declared a regular quarterly dividend of $0.43 per share for fiscal Q2, payable on July 31, 2024. This marked the 207th consecutive quarterly dividend paid by the company on its common stock.
UDR has a consensus “Moderate Buy” rating overall. Among the 22 analysts covering the stock, eight advise a “Strong Buy” rating, and the remaining 14 analysts recommend a “Hold,”
The average analyst price target for UDR is $41.05, indicating a potential upswing of 1.7% from the current market price.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
