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UDR Q4 FFO In Line With Estimates, Revenues Increase Y/Y
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UDR Inc. (UDR - Free Report) reported fourth-quarter 2021 funds from operations (FFO) as adjusted per share of 54 cents, in line with the Zacks Consensus Estimate. The figure is higher than the prior-year quarter’s 49 cents.
There was an increase in revenues from rental income, fueling the quarter’s top-line growth. Decent operating trends, as well as strong pricing power and accretive transactions, were also witnessed.
Quarterly revenues from rental income climbed 15.2% year over year to $347 million. The top line surpassed the Zacks Consensus Estimate of $340.6 million.
As of Jan 31, 2022, cash revenues collected for the fourth quarter of 2021 were 95.5% of the total billed revenues.
For 2021, FFO as adjusted was $2.01 per share, in line with the Zacks Consensus Estimate. The figure is lower than the prior year’s $2.04 per share. Full-year revenues from rental income climbed 3.9% year over year to $1.28 billion. The top line met the Zacks Consensus Estimate.
Inside the Headlines
In the reported quarter, same-store revenues (with concessions reported on a cash basis) increased 9% year over year. Same-store expenses were up 3.8%. Consequently, the same-store net operating income, with concessions reported on a cash basis, improved 11.4%.
The residential REIT’s weighted average same-store physical occupancy contracted 40 basis points (bps) sequentially to 97.1%. The fourth-quarter annualized rate of turnover shrunk 660 bps year over year to 34.6%.
UDR continues to implement its Next Generation Operating Platform strategy. This restricted fourth-quarter 2021 same-store controllable expense growth to 2.8% year over year.
Portfolio Activity
The company’s development pipeline aggregated $501.5 million at the end of the reported quarter and was 77% funded. The active pipeline includes five development communities for 1,417 homes.
At the end of the fourth quarter, the company’s Developer Capital Program investment, including accrued return, totaled $345.9 million.
Balance Sheet Activity
As of Dec 31, 2021, UDR had $1.1 billion of liquidity through a combination of cash and undrawn capacity under its credit facilities. The total debt was $5.4 billion as of the same date.
UDR ended the fourth quarter with a weighted average interest rate of 2.80% and weighted average years to maturity of 7.7 years.
Guidance
The company issued the outlook for the first quarter and full-year 2022.
It expects first-quarter 2022 FFO as adjusted per share of 53-55 cents. The Zacks Consensus Estimate for the same is pegged at 54 cents. For 2022, FFO as adjusted per share is expected to be $2.22-$2.30. The Zacks Consensus Estimate for the same is pegged at $2.26.
For 2022, the company projects 6.5-8.5% year-over-year growth in same-store cash revenues, whereas same-store NOI growth is estimated to be 8.5-11.5%.
United Dominion Realty Trust, Inc. Price, Consensus and EPS Surprise
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported fourth-quarter 2021 core FFO per share of $1.90, surpassing the Zacks Consensus Estimate of $1.87. The reported number increased 15.2% from the year-ago figure of $1.57.
MAA’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
Equity Residential’s (EQR - Free Report) fourth-quarter 2021 normalized FFO per share of 82 cents outpaced the Zacks Consensus Estimate of 80 cents. Rental income of $645.1 million also beat the consensus mark of $628.6 million.
On a year-over-year basis, Equity Residential’s normalized FFO per share improved 7.9%, while rental income rose 5.2%. EQR’s results were driven by a strong physical occupancy, a substantial improvement in pricing power and an increase in non-Residential revenues.
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.
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UDR Q4 FFO In Line With Estimates, Revenues Increase Y/Y
UDR Inc. (UDR - Free Report) reported fourth-quarter 2021 funds from operations (FFO) as adjusted per share of 54 cents, in line with the Zacks Consensus Estimate. The figure is higher than the prior-year quarter’s 49 cents.
There was an increase in revenues from rental income, fueling the quarter’s top-line growth. Decent operating trends, as well as strong pricing power and accretive transactions, were also witnessed.
Quarterly revenues from rental income climbed 15.2% year over year to $347 million. The top line surpassed the Zacks Consensus Estimate of $340.6 million.
As of Jan 31, 2022, cash revenues collected for the fourth quarter of 2021 were 95.5% of the total billed revenues.
For 2021, FFO as adjusted was $2.01 per share, in line with the Zacks Consensus Estimate. The figure is lower than the prior year’s $2.04 per share. Full-year revenues from rental income climbed 3.9% year over year to $1.28 billion. The top line met the Zacks Consensus Estimate.
Inside the Headlines
In the reported quarter, same-store revenues (with concessions reported on a cash basis) increased 9% year over year. Same-store expenses were up 3.8%. Consequently, the same-store net operating income, with concessions reported on a cash basis, improved 11.4%.
The residential REIT’s weighted average same-store physical occupancy contracted 40 basis points (bps) sequentially to 97.1%. The fourth-quarter annualized rate of turnover shrunk 660 bps year over year to 34.6%.
UDR continues to implement its Next Generation Operating Platform strategy. This restricted fourth-quarter 2021 same-store controllable expense growth to 2.8% year over year.
Portfolio Activity
The company’s development pipeline aggregated $501.5 million at the end of the reported quarter and was 77% funded. The active pipeline includes five development communities for 1,417 homes.
At the end of the fourth quarter, the company’s Developer Capital Program investment, including accrued return, totaled $345.9 million.
Balance Sheet Activity
As of Dec 31, 2021, UDR had $1.1 billion of liquidity through a combination of cash and undrawn capacity under its credit facilities. The total debt was $5.4 billion as of the same date.
UDR ended the fourth quarter with a weighted average interest rate of 2.80% and weighted average years to maturity of 7.7 years.
Guidance
The company issued the outlook for the first quarter and full-year 2022.
It expects first-quarter 2022 FFO as adjusted per share of 53-55 cents. The Zacks Consensus Estimate for the same is pegged at 54 cents. For 2022, FFO as adjusted per share is expected to be $2.22-$2.30. The Zacks Consensus Estimate for the same is pegged at $2.26.
For 2022, the company projects 6.5-8.5% year-over-year growth in same-store cash revenues, whereas same-store NOI growth is estimated to be 8.5-11.5%.
United Dominion Realty Trust, Inc. Price, Consensus and EPS Surprise
United Dominion Realty Trust, Inc. price-consensus-eps-surprise-chart | United Dominion Realty Trust, Inc. Quote
Currently, UDR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported fourth-quarter 2021 core FFO per share of $1.90, surpassing the Zacks Consensus Estimate of $1.87. The reported number increased 15.2% from the year-ago figure of $1.57.
MAA’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
Equity Residential’s (EQR - Free Report) fourth-quarter 2021 normalized FFO per share of 82 cents outpaced the Zacks Consensus Estimate of 80 cents. Rental income of $645.1 million also beat the consensus mark of $628.6 million.
On a year-over-year basis, Equity Residential’s normalized FFO per share improved 7.9%, while rental income rose 5.2%. EQR’s results were driven by a strong physical occupancy, a substantial improvement in pricing power and an increase in non-Residential revenues.
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.