Highlands Ranch, Colorado-based UDR, Inc. (UDR) owns, operates, acquires, develops, redevelops, renovates and manages apartment communities in high barrier-to-entry markets. With a market cap of $14.7 billion, UDR operates as one of the most favorably-positioned multi-family apartment REITs in the U.S. It is expected to release its third-quarter earnings on Thursday, Oct. 24.
Ahead of the event, analysts expect UDR to report funds from operations as adjusted (FFOA) of $0.62 per share, down 1.6% from $0.63 per share reported in the year-ago quarter. The company has met or surpassed Wall Street’s FFOA estimates in each of the past four quarters. Its FFOA for the last reported quarter grew by 1.6% year-over-year to $0.62, exceeding the consensus estimate by the same margin.
For fiscal 2024, analysts expect UDR’s FFOA to remain steady at $2.47, the same as in fiscal 2023. However, in fiscal 2025, its FFOA is projected to grow by 2.8% year-over-year to $2.54.
UDR has gained 16.5% on a YTD basis, lagging behind the S&P 500 Index’s ($SPX) 20.6% gains but outperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 8.6% returns during the same time frame.
Despite reporting better-than-expected results, shares of UDR fell 1.9% in the trading session after the release of its Q2 earnings on Jul. 30. The company’s rental income grew by 2.5% year over year to $413.3 million, exceeding Wall Street’s expectations. UDR’s net income declined from $346.3 million in the year-ago quarter to $27.7 million. However, it was due to a one-time gain of $325.9 million from the sale of real estate in the prior period.
In a positive development, UDR has improved its full-year guidance for FFO and same-store revenue and expense. Following the initial decline, UDR’s stock rebounded by 1.7% in the subsequent trading session.
The consensus opinion on UDR stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 24 analysts covering the stock, 11 recommend “Strong Buy,” 12 suggest “Hold,” and one advises a “Strong Sell” rating.
The mean price target of $45.73 suggests a potential upside of 2.6% from current price levels.
On the date of publication, Aditya Sarawgi 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.
