UDR Inc. (UDR), headquartered in Highlands Ranch, Colorado, is a multifamily real estate investment trust (REIT) with a demonstrated performance history of delivering superior and dependable returns by successfully managing, acquiring, developing, redeveloping, and selling high-quality real estate properties across key U.S. markets. Valued at $13.6 billion by market cap, the company currently owns or has interests in 60,123 apartment homes, providing exceptional resident services. The leading multifamily REIT is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Wednesday, Feb. 5.
Ahead of the event, analysts expect UDR to report an FFO of $0.63 per share on a diluted basis, unchanged from the year-ago quarter. The company beat or matched Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect UDR to report an FFO of $2.47 which remained flat compared to fiscal 2023. However, its FFO is expected to rise 2% year over year to $2.52 in fiscal 2025.
UDR stock has underperformed the S&P 500’s ($SPX) 24.4% gains over the past 52 weeks, with shares up 6.8% during this period. However, it outperformed the Real Estate Select Sector SPDR Fund’s (XLRE)marginal gains over the same time frame.
UDR's underperformance is largely due to declining effective new lease rate growth. The residential REIT faces ongoing challenges in attracting renters due to elevated supply volumes in some markets. Additionally, rising rent control regulations and increasing apartment deliveries may limit UDR's ability to raise rents, hindering growth momentum.
On Oct. 30, UDR shares closed down marginally after reporting its Q3 results. Its FFO of $0.62, met Wall Street expectations. UDR’s revenue was $420.2 million, exceeding Wall Street forecasts of $416.5 million.
Analysts’ consensus opinion on UDR stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, 11 advise a “Strong Buy” rating, 12 give a “Hold,” and one recommends a “Strong Sell.” UDR's average analyst price target is $46.70, indicating a potential upside of 13.3% from the current levels.
