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Is it Wise to Retain UDR Stock in Your Portfolio Right Now?
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With a geographically-diverse portfolio and a superior product-mix of A/B quality properties in urban and sub-urban markets, UDR Inc. (UDR - Free Report) enjoys decent upside potential in the peak leasing season. The company’s portfolio includes properties throughout the United States, including both coastal and sunbelt locations. This strategy of maintaining a diversified portfolio across various geographies and price points, limits volatility and concentration risks and helps the company generate steady operating cash flows.
Encouragingly, in light of the continued strength in operating fundamentals and accretive external growth, UDR raised its guidance ranges earlier this month. The company’s operating results continued to improve through May. Particularly, improving demand for rental units is aiding physical occupancy and blended lease rate growth with rise in pricing power and reduction in concessions.
Further, UDR’s focus on technological initiatives and process enhancements are expected to drive margin expansion and long-term profitability. The company’s Next Generation Operating Platform enables it to electronically interact with and provide service to residents and prospects throughout its diversified portfolio. This is likely to give UDR a competitive edge over others.
Also, the company focuses on its strategic priorities such as disciplined capital allocation, maintaining an investment-grade balance sheet, as well as cash-flow enhancement to boost operational efficiency and dividend growth. As of Mar 31, 2021, UDR had $948.4 million of liquidity through a combination of cash and undrawn capacity under its credit facilities. In addition to this, it has no consolidated maturities until 2023.
Shares of this Zacks Rank #3 (Hold) company have outperformed the industry it belongs to in the past six months. Its shares have appreciated 28.7% compared with the industry’s rally of 26.4%. In addition, the trend in estimate revision for 2021 funds from operations (FFO) per share indicates a favorable outlook for UDR as it has moved marginally upward over the past week.
Image Source: Zacks Investment Research
However, the adverse impact of the pandemic on the economy and the choppy job-market environment has resulted in household contraction and consolidation. Additionally, low mortgage rates have been driving the demand for existing and new-home purchases, mainly for young age cohorts where homeownership rates have started to shoot up.
Moreover, the company’s results in recent quarters reflect the impact of concessions and uncollectible lease revenues. Although situations are now improving, the company’s urban assets might still face choppiness with the flexible working environment denting demand, hurting rental rates and occupancy levels.
RPT Realty’s Zacks Consensus Estimate for the current-year FFO per share moved 2.4% north in the past month. The company carries a Zacks Rank of 2, at present.
Bluerock Residential Growth REIT, Inc.’s FFO per share estimate for the ongoing year has remained unchanged in the past two months. The company carries a Zacks Rank of 2, currently.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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Is it Wise to Retain UDR Stock in Your Portfolio Right Now?
With a geographically-diverse portfolio and a superior product-mix of A/B quality properties in urban and sub-urban markets, UDR Inc. (UDR - Free Report) enjoys decent upside potential in the peak leasing season. The company’s portfolio includes properties throughout the United States, including both coastal and sunbelt locations. This strategy of maintaining a diversified portfolio across various geographies and price points, limits volatility and concentration risks and helps the company generate steady operating cash flows.
Encouragingly, in light of the continued strength in operating fundamentals and accretive external growth, UDR raised its guidance ranges earlier this month. The company’s operating results continued to improve through May. Particularly, improving demand for rental units is aiding physical occupancy and blended lease rate growth with rise in pricing power and reduction in concessions.
Further, UDR’s focus on technological initiatives and process enhancements are expected to drive margin expansion and long-term profitability. The company’s Next Generation Operating Platform enables it to electronically interact with and provide service to residents and prospects throughout its diversified portfolio. This is likely to give UDR a competitive edge over others.
Also, the company focuses on its strategic priorities such as disciplined capital allocation, maintaining an investment-grade balance sheet, as well as cash-flow enhancement to boost operational efficiency and dividend growth. As of Mar 31, 2021, UDR had $948.4 million of liquidity through a combination of cash and undrawn capacity under its credit facilities. In addition to this, it has no consolidated maturities until 2023.
Shares of this Zacks Rank #3 (Hold) company have outperformed the industry it belongs to in the past six months. Its shares have appreciated 28.7% compared with the industry’s rally of 26.4%. In addition, the trend in estimate revision for 2021 funds from operations (FFO) per share indicates a favorable outlook for UDR as it has moved marginally upward over the past week.
However, the adverse impact of the pandemic on the economy and the choppy job-market environment has resulted in household contraction and consolidation. Additionally, low mortgage rates have been driving the demand for existing and new-home purchases, mainly for young age cohorts where homeownership rates have started to shoot up.
Moreover, the company’s results in recent quarters reflect the impact of concessions and uncollectible lease revenues. Although situations are now improving, the company’s urban assets might still face choppiness with the flexible working environment denting demand, hurting rental rates and occupancy levels.
Key Industry Picks
BRT Apartments Corp.’s (BRT - Free Report) Zacks Consensus Estimate for 2021 FFO per share moved up 4% upward over the past two months. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
RPT Realty’s Zacks Consensus Estimate for the current-year FFO per share moved 2.4% north in the past month. The company carries a Zacks Rank of 2, at present.
Bluerock Residential Growth REIT, Inc.’s FFO per share estimate for the ongoing year has remained unchanged in the past two months. The company carries a Zacks Rank of 2, currently.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>