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UDR (UDR) Down 14.8% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for UDR (UDR - Free Report) . Shares have lost about 14.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is UDR due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
UDR’s Q1 FFO In Line With Estimates, 2022 Outlook Raised
UDR reported first-quarter 2022 FFO as adjusted per share of 55 cents, in line with the Zacks Consensus Estimate. The figure is 17% higher than the prior-year quarter’s 47 cents.
An increase in revenues from rental income fueled the quarter’s top-line growth. Robust operating trends and strong pricing power were major contributing factors.
Quarterly revenues climbed 18.5% year over year to $357.3 million. The top line surpassed the Zacks Consensus Estimate of $353.8 million. As of Mar 31, 2022, cash revenues collected for the first quarter were in the range of 98-98.5% of the total billed revenues, and UDR expects collections to remain within this range throughout 2022.
Inside the Headlines
In the reported quarter, same-store revenues (with concessions reported on a cash basis) increased 10.8% year over year. Same-store expenses were up 4.2%. Consequently, the same-store net operating income, with concessions reported on a cash basis, improved 14%.
The residential REIT’s weighted average same-store physical occupancy increased 20 basis points (bps) sequentially to 97.3%. The first-quarter annualized rate of turnover shrunk 530 bps year over year to 34.2%.
Portfolio Activity
UDR’s development pipeline aggregated $689 million at the end of the reported quarter and was 66.5% funded. The active pipeline includes seven development communities for 1,832 homes.
At the end the quarter, the company’s pipeline of densification projects, including the addition of 58 new apartment homes in three communities, aggregated $27 million and was 53.2% funded.
The company’s Developer Capital Program investment, including accrued return, totaled $331.3 million with a weighted average return rate of 10% and a weighted average estimated remaining term of three years at the end of first-quarter 2022.
Balance Sheet Activity
As of Mar 31, 2022, UDR had $1.7 billion of liquidity through a combination of cash and undrawn capacity under its credit facilities. The total debt was $5.5 billion as of the same date, with no remaining consolidated maturities until 2024. In addition, net debt-to-EBITDAre declined to 6.4X in the first quarter from the year ago’s 7.0X.
UDR ended the reported quarter with a weighted average interest rate of 2.80% and weighted average years to maturity of 7.4 years.
Guidance
The company revised the outlook for the full-year 2022.
It expects second-quarter 2022 FFO as adjusted per share in the range 55-57 cents.
For 2022, FFO as adjusted per share is expected to be in the range of $2.25 to $2.31, revised upward from $2.22-$2.30.
For 2022, the company projects 8.5-10% year-over-year growth in same-store cash revenues up from the prior range of 6.5-8.5%, whereas same-store NOI growth is estimated to be 10.75-12.75% up from 8.5-11.5%.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, UDR has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, UDR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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UDR (UDR) Down 14.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for UDR (UDR - Free Report) . Shares have lost about 14.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is UDR due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
UDR’s Q1 FFO In Line With Estimates, 2022 Outlook Raised
UDR reported first-quarter 2022 FFO as adjusted per share of 55 cents, in line with the Zacks Consensus Estimate. The figure is 17% higher than the prior-year quarter’s 47 cents.
An increase in revenues from rental income fueled the quarter’s top-line growth. Robust operating trends and strong pricing power were major contributing factors.
Quarterly revenues climbed 18.5% year over year to $357.3 million. The top line surpassed the Zacks Consensus Estimate of $353.8 million.
As of Mar 31, 2022, cash revenues collected for the first quarter were in the range of 98-98.5% of the total billed revenues, and UDR expects collections to remain within this range throughout 2022.
Inside the Headlines
In the reported quarter, same-store revenues (with concessions reported on a cash basis) increased 10.8% year over year. Same-store expenses were up 4.2%. Consequently, the same-store net operating income, with concessions reported on a cash basis, improved 14%.
The residential REIT’s weighted average same-store physical occupancy increased 20 basis points (bps) sequentially to 97.3%. The first-quarter annualized rate of turnover shrunk 530 bps year over year to 34.2%.
Portfolio Activity
UDR’s development pipeline aggregated $689 million at the end of the reported quarter and was 66.5% funded. The active pipeline includes seven development communities for 1,832 homes.
At the end the quarter, the company’s pipeline of densification projects, including the addition of 58 new apartment homes in three communities, aggregated $27 million and was 53.2% funded.
The company’s Developer Capital Program investment, including accrued return, totaled $331.3 million with a weighted average return rate of 10% and a weighted average estimated remaining term of three years at the end of first-quarter 2022.
Balance Sheet Activity
As of Mar 31, 2022, UDR had $1.7 billion of liquidity through a combination of cash and undrawn capacity under its credit facilities. The total debt was $5.5 billion as of the same date, with no remaining consolidated maturities until 2024. In addition, net debt-to-EBITDAre declined to 6.4X in the first quarter from the year ago’s 7.0X.
UDR ended the reported quarter with a weighted average interest rate of 2.80% and weighted average years to maturity of 7.4 years.
Guidance
The company revised the outlook for the full-year 2022.
It expects second-quarter 2022 FFO as adjusted per share in the range 55-57 cents.
For 2022, FFO as adjusted per share is expected to be in the range of $2.25 to $2.31, revised upward from $2.22-$2.30.
For 2022, the company projects 8.5-10% year-over-year growth in same-store cash revenues up from the prior range of 6.5-8.5%, whereas same-store NOI growth is estimated to be 10.75-12.75% up from 8.5-11.5%.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, UDR has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, UDR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.