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UDR (UDR)
NYSE:UDR
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UDR
(NYSE:UDR)
68Neutral
Positive Factors
Insurance Expenses
Insurance expenses are expected to decrease by 5.5% in 2025, providing a financial relief.
Occupancy Rates
UDR had a solid performance with a 40bps sequential occupancy increase to 97.2%, showcasing strong momentum.
Negative Factors
Investment Income
UDR did not record any income from its investment in 4Q24 and anticipates less income in the following year, creating a headwind to net income and FFOA.
Lease Decline Concerns
Questions arise if UDR is experiencing a lease deceleration, as guidance remains unchanged despite strong results.
Regional Performance
The Southwest region experienced a deceleration with new leases down by 10.1%, impacting overall growth.
UDR (UDR) vs. S&P 500 (SPY)
Market Cap
$14.51B
Dividend Yield3.89%
Average Volume (3M)2.56M
Price to Earnings (P/E)122.6
Beta (1Y)0.77
Revenue Growth2.35%
EPS Growth-73.89%
CountryUS
Employees1,419
SectorReal Estate
Sector Strength79
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.23
Shares Outstanding331,295,840
10 Day Avg. Volume2,341,519
30 Day Avg. Volume2,559,305
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.53
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit19.37
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$46.90Price Target Upside8.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
UDR Business Overview & Revenue Model
Company DescriptionUDR, 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 communities in targeted U.S. markets. As of September 30, 2020, UDR owned or had an ownership position in 51,649 apartment homes including 1,031 homes under development. For over 48 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.
How the Company Makes MoneyUDR makes money primarily through the rental income generated from its extensive portfolio of apartment communities. The company's key revenue stream is derived from leasing residential units to tenants who pay monthly rent. This rental income is complemented by ancillary revenue streams, such as fees for parking, pet rent, and other amenity-related charges. UDR's strategic focus on high-demand markets allows it to capitalize on favorable demographic trends and rental demand, contributing to stable occupancy rates and the potential for rental rate increases. Additionally, UDR occasionally engages in the acquisition and disposition of properties to optimize its portfolio and enhance value for shareholders. The company also benefits from partnerships with local developers and property managers to maintain and expand its market presence.
UDR Financial Statement Overview
Summary
UDR exhibits strong financial health with efficient cash management and an improved capital structure. However, the decline in net profitability and stockholders' equity are concerning. The financial indicators reflect stability but highlight the need for profitability improvement.Income Statement
The income statement reveals stable revenue growth with a solid Gross Profit Margin of approximately 68.6% for 2024, albeit a declining EBIT Margin. The Net Profit Margin has decreased significantly to around 5.1% from previous years, indicating potential profitability challenges. EBITDA Margin remains strong at 34.5%, showcasing operational efficiency.75
Positive
Balance Sheet
The balance sheet shows a healthy equity ratio of 31.6% for 2024, providing a solid capital structure. The Debt-to-Equity Ratio has improved significantly due to the absence of debt, reducing financial risk. However, the decline in Stockholders' Equity and the overall reduction in Total Assets are areas of concern.68
Positive
Cash Flow
Cash flow analysis is strong with a robust Operating Cash Flow to Net Income Ratio of over 10, indicating efficient cash generation relative to net income. Free Cash Flow has shown significant growth, and the absence of capital expenditures enhances Free Cash Flow to Net Income Ratio, demonstrating strong cash management.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.67B | 1.63B | 1.52B | 1.29B | 1.24B | Gross Profit |
| 1.15B | 1.08B | 331.03M | 228.04M | 214.62M | EBIT |
| 284.57M | 635.01M | 250.81M | 267.97M | 150.80M | EBITDA |
| 978.35M | 1.35B | 914.63M | 755.50M | 750.59M | Net Income Common Stockholders |
| 89.58M | 444.35M | 86.92M | 150.02M | 64.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.33M | 2.92M | 1.19M | 967.00K | 1.41M | Total Assets |
| 10.90B | 11.37B | 11.04B | 10.78B | 9.64B | Total Debt |
| 6.01B | 5.98B | 6.00B | 5.61B | 5.17B | Net Debt |
| 6.01B | 5.98B | 6.00B | 5.60B | 5.17B | Total Liabilities |
| 6.44B | 6.42B | 6.10B | 6.00B | 5.52B | Stockholders Equity |
| 3.44B | 3.99B | 4.10B | 3.44B | 3.23B |
| Cash Flow | Free Cash Flow | |||
| 605.16M | 520.32M | 584.06M | 497.44M | 430.20M | Operating Cash Flow |
| 876.85M | 832.66M | 820.07M | 663.96M | 604.32M | Investing Cash Flow |
| -276.35M | -289.14M | -929.53M | -1.27B | -460.84M | Financing Cash Flow |
| -599.94M | -538.85M | 111.23M | 612.54M | -152.59M |
UDR Technical Analysis
Positive
43.03
Price Trends
42.58
Positive
42.21
Positive
42.44
Positive
Market Momentum
0.14
Negative
56.18
Neutral
86.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UDR, the sentiment is Positive. The current price of 43.03 is above the 20-day moving average (MA) of 41.06, above the 50-day MA of 42.58, and above the 200-day MA of 42.44, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 56.18 is Neutral, neither overbought nor oversold. The STOCH value of 86.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UDR.
UDR Risk Analysis
UDR disclosed 62 risk factors in its most recent earnings report. UDR reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
UDR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $30.21B | 26.43 | 9.10% | 3.23% | 6.26% | 19.66% | |
75 Outperform | $28.09B | 27.98 | 9.01% | 3.79% | 3.91% | 8.78% | |
69 Neutral | $17.10B | 79.43 | 3.38% | 3.48% | 0.55% | -59.48% | |
68 Neutral | $14.51B | 122.58 | 3.40% | 3.89% | 2.35% | -73.89% | |
68 Neutral | $20.15B | 34.92 | 9.37% | 3.56% | 1.55% | 0.73% | |
65 Neutral | $19.52B | 28.02 | 12.09% | 3.39% | 7.61% | 27.83% | |
60 Neutral | $2.95B | 11.32 | 0.26% | 8508.24% | 6.34% | -14.00% |
* Real Estate Sector Average
Performance Comparison
UDR
UDR
43.03
5.63
15.05%
AVB
AvalonBay
210.02
20.27
10.68%
EQR
Equity Residential
70.83
6.60
10.28%
MAA
Mid-America Apartment
165.34
34.46
26.33%
ESS
Essex Property
288.31
39.36
15.81%
CPT
Camden Property
119.21
16.88
16.50%
UDR Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 2.75%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong start to 2025 with positive trends in same-store revenue and NOI growth, driven by operational initiatives and market dynamics. However, challenges in certain markets, particularly the Sunbelt and Philadelphia, and negative new lease rate growth highlight areas of concern.Q1-2025 Updates
Positive Updates
Strong Start to 2025
UDR reported better-than-expected first-quarter same-store revenue growth of 2.6% and NOI growth of 2.8%, driven by lower resident turnover, higher occupancy, and improving pricing power.
Record Low Resident Turnover
Annualized resident turnover was more than 300 basis points below the prior year period and nearly 700 basis points better than the first quarter average over the last 10 years.
High Occupancy Rates
Occupancy averaged 97.2% in the first quarter, which is higher than the historical first-quarter average and 40 basis points higher sequentially versus the fourth quarter.
Operational and Innovation Initiatives
UDR's customer experience project and value-add initiatives have driven high single-digit growth and added 50 or more basis points annually to same-store NOI growth.
Favorable Market Dynamics
Demand outpaces supply in many markets, with the pace of new supply slowing and renting being 60% more affordable than owning a home in UDR’s markets.
Negative Updates
Challenges in Sunbelt Markets
Sunbelt markets, comprising roughly 25% of NOI, lag coastal markets due to elevated levels of new supply, with first-quarter blended lease rate growth at negative 2.5%.
Negative New Lease Rate Growth
New lease rate growth was approximately negative 3% in the first quarter, although it improved sequentially.
Philadelphia Asset Challenges
UDR increased investment in a Philadelphia property by acquiring the senior loan, but occupancy challenges continue due to a difficult submarket.
Company Guidance
During UDR's first quarter 2025 earnings call, the company reaffirmed its full-year guidance due to strong performance metrics, including a 2.6% same-store revenue growth and a 2.8% NOI growth, which exceeded initial expectations. Key operating metrics showed positive momentum with lower resident turnover at 32%, which was over 300 basis points lower than the previous year, occupancy averaging 97.2%, and improved pricing power with a 0.9% blended lease rate growth. The company also highlighted a robust balance sheet with substantial liquidity, supporting strategic growth through innovation, capital deployment, and strong market fundamentals. Management noted that demand for multifamily housing remained strong, with nearly 140,000 apartment homes absorbed in the first quarter, and they are optimistic about continued growth despite potential macroeconomic uncertainties.UDR Corporate Events
Regulatory Filings and Compliance
UDR Announces New Investor Information Release
Neutral
May 5, 2025
UDR has announced that information included in Exhibit 99.1 will be available to investors starting May 5, 2025. This information is being shared under Item 7.01 and is not considered filed under Section 18 of the Securities Exchange Act of 1934, nor incorporated by reference into the company’s filings under the Securities Act of 1933.
Spark’s Take on UDR Stock
According to Spark, TipRanks’ AI Analyst, UDR is a Neutral.
UDR’s overall stock score reflects solid financial health and positive operational momentum, as evidenced by strong earnings call results. However, valuation concerns due to a high P/E ratio and technical indicators showing mixed signals limit the score. Continued focus on profitability and market challenges is crucial for future performance.
To see Spark’s full report on UDR stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.