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UDR (UDR) Down 0.7% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for UDR (UDR - Free Report) . Shares have lost about 0.7% 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 the latest earnings report in order to get a better handle on the important drivers.
UDR's Q2 FFOA & Revenues Beat Estimates, Same-Store NOI Grows
UDR reported second-quarter 2025 FFO as adjusted (FFOA) per share of 64 cents, outpacing the Zacks Consensus Estimate of 62 cents. This also compares favorably with the prior-year quarter’s reported figure of 62 cents.
Results reflected year-over-year growth in same-store NOI, led by a higher effective blended lease rate. The company also raised its 2025 FFOA per share guidance.
Quarterly revenues from rental income were $423.0 million, which surpassed the Zacks Consensus Estimate of $422.2 million. Total revenues came in at $425.4 million. On a year-over-year basis, rental income and total revenues rose more than 2% each.
Quarter in Detail
In the reported quarter, same-store revenues increased 2.5% year over year. Same-store expenses were up 1.7%. As a result, same-store NOI improved 2.9%.
UDR registered the same-store effective blended lease rate growth of 2.8% during the quarter.
The residential REIT’s weighted average same-store physical occupancy of 96.9% increased 10 basis points (bps) year over year but decreased 30 bps sequentially. Our estimate was pegged at 97%.
Balance Sheet Position
As of June 30, 2025, UDR had $1.1 billion of liquidity through a combination of cash and undrawn capacity on its credit facilities.
Total debt was $5.8 billion as of the same date, with only $531.8 million, or 9.6% of total consolidated debt, maturing through 2026. In addition, net debt-to-EBITDAre of 5.5X in the second quarter decreased from 5.7X at the end of the prior quarter.
UDR ended the quarter with a weighted average interest rate of 3.35% and a weighted average years to maturity of 4.7 years.
Portfolio Activity
In the second quarter, UDR acquired the developer’s equity interest and consolidated Broadridge, formerly known as 1300 Fairmount, a 478-unit apartment community in Philadelphia, PA.
2025 Guidance
The company provided guidance for the third quarter and raised its full-year 2025 FFOA per share outlook.
It expects third-quarter 2025 FFOA per share in the range of 62-64 cents
For 2025, FFOA per share is expected in the range of $2.49-$2.55, with the midpoint at $2.52, up from $2.50 guided earlier.
For the full year, on a straight-line basis, the company projects growth rates for same-store revenues in the range of 1.75-3.25%, same-store expenses between 2.50% and 3.50% and same-store NOI between 1.50% and 3.00%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
Currently, UDR has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock has a score 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
UDR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
UDR belongs to the Zacks REIT and Equity Trust - Residential industry. Another stock from the same industry, Essex Property Trust (ESS - Free Report) , has gained 3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
Essex Property Trust reported revenues of $469.83 million in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $3.44 for the same period compares with $3.94 a year ago.
Essex Property Trust is expected to post earnings of $3.96 per share for the current quarter, representing a year-over-year change of +1.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Essex Property Trust. Also, the stock has a VGM Score of F.
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UDR (UDR) Down 0.7% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for UDR (UDR - Free Report) . Shares have lost about 0.7% 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 the latest earnings report in order to get a better handle on the important drivers.
UDR's Q2 FFOA & Revenues Beat Estimates, Same-Store NOI Grows
UDR reported second-quarter 2025 FFO as adjusted (FFOA) per share of 64 cents, outpacing the Zacks Consensus Estimate of 62 cents. This also compares favorably with the prior-year quarter’s reported figure of 62 cents.
Results reflected year-over-year growth in same-store NOI, led by a higher effective blended lease rate. The company also raised its 2025 FFOA per share guidance.
Quarterly revenues from rental income were $423.0 million, which surpassed the Zacks Consensus Estimate of $422.2 million. Total revenues came in at $425.4 million. On a year-over-year basis, rental income and total revenues rose more than 2% each.
Quarter in Detail
In the reported quarter, same-store revenues increased 2.5% year over year. Same-store expenses were up 1.7%. As a result, same-store NOI improved 2.9%.
UDR registered the same-store effective blended lease rate growth of 2.8% during the quarter.
The residential REIT’s weighted average same-store physical occupancy of 96.9% increased 10 basis points (bps) year over year but decreased 30 bps sequentially. Our estimate was pegged at 97%.
Balance Sheet Position
As of June 30, 2025, UDR had $1.1 billion of liquidity through a combination of cash and undrawn capacity on its credit facilities.
Total debt was $5.8 billion as of the same date, with only $531.8 million, or 9.6% of total consolidated debt, maturing through 2026. In addition, net debt-to-EBITDAre of 5.5X in the second quarter decreased from 5.7X at the end of the prior quarter.
UDR ended the quarter with a weighted average interest rate of 3.35% and a weighted average years to maturity of 4.7 years.
Portfolio Activity
In the second quarter, UDR acquired the developer’s equity interest and consolidated Broadridge, formerly known as 1300 Fairmount, a 478-unit apartment community in Philadelphia, PA.
2025 Guidance
The company provided guidance for the third quarter and raised its full-year 2025 FFOA per share outlook.
It expects third-quarter 2025 FFOA per share in the range of 62-64 cents
For 2025, FFOA per share is expected in the range of $2.49-$2.55, with the midpoint at $2.52, up from $2.50 guided earlier.
For the full year, on a straight-line basis, the company projects growth rates for same-store revenues in the range of 1.75-3.25%, same-store expenses between 2.50% and 3.50% and same-store NOI between 1.50% and 3.00%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
Currently, UDR has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock has a score 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
UDR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
UDR belongs to the Zacks REIT and Equity Trust - Residential industry. Another stock from the same industry, Essex Property Trust (ESS - Free Report) , has gained 3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
Essex Property Trust reported revenues of $469.83 million in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $3.44 for the same period compares with $3.94 a year ago.
Essex Property Trust is expected to post earnings of $3.96 per share for the current quarter, representing a year-over-year change of +1.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Essex Property Trust. Also, the stock has a VGM Score of F.