UDR Inc. Prepares for Fourth-Quarter Earnings Report Amidst Mixed Performance
UDR Inc. (UDR), based in Highlands Ranch, Colorado, stands out as a multifamily real estate investment trust (REIT) that has consistently focused on delivering reliable returns through the successful management, acquisition, development, redevelopment, and sale of high-quality real estate in prominent U.S. markets. With a market capitalization of $13.6 billion, UDR currently owns or has interests in 60,123 apartment homes, offering exceptional services to its residents. The company is set to announce its fiscal fourth-quarter earnings for 2024 following the market’s close on Wednesday, February 5.
Analysts Expect Steady Fourth-Quarter Performance
Leading up to the earnings announcement, analysts predict that UDR will report a funds from operations (FFO) of $0.63 per share, unchanged from the same quarter last year. Notably, UDR has either met or exceeded Wall Street’s earnings per share (EPS) expectations in each of its last four quarterly reports.
Looking Ahead: Expectations for Fiscal 2025
For the fiscal year, analysts anticipate UDR will report an FFO of $2.47, which is steady compared to fiscal 2023. In fiscal 2025, however, FFO is projected to increase by 2% year over year, rising to $2.52.
Stock Performance Compared to Broader Market
In the last 52 weeks, UDR stock has lagged behind the S&P 500, which has gained 24.4%, while UDR shares have increased by only 6.8%. Nevertheless, UDR has outperformed the Real Estate Select Sector SPDR Fund (XLRE), which showed marginal gains in the same timeframe.
Challenges Faced by UDR Inc.
The company’s stock underperformance can largely be attributed to a decline in effective new lease rate growth. UDR is contending with difficulties in attracting renters due to increased supply in several markets. Additionally, rising rent control regulations and higher numbers of new apartments being delivered might impede the company’s ability to raise rents, stunting growth potential.
After releasing its Q3 results on October 30, UDR shares saw a minor decline. The reported FFO of $0.62 met analyst expectations, while the company’s revenue came in at $420.2 million, surpassing the $416.5 million forecasted by Wall Street.
Analysts Provide Mixed Recommendations
Despite recent challenges, analysts hold a moderately optimistic view on UDR stock, issuing a “Moderate Buy” rating overall. Among the 24 analysts monitoring the stock, 11 advocate for a “Strong Buy” rating, 12 suggest a “Hold,” and one recommends a “Strong Sell.” The average price target set by analysts for UDR is $46.70, suggesting a potential upside of 13.3% from current trading levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
