UDR (UDR) Q2 2024 earnings summary

Executive summary

• Q2 2024 results exceeded or met high-end expectations, driven by strong fundamentals, employment growth, and effective operating strategies.

• Net income attributable to common stockholders was $27.7 million ($0.08 per diluted share), down from $346.3 million ($1.05 per diluted share) in Q2 2023, mainly due to the absence of large real estate sale gains.

• The company’s consolidated portfolio included 169 communities with 55,699 apartment homes as of June 30, 2024.

• Earned 2024 National Top Workplaces and continued ESG leadership recognition.

Financial highlights

• Q2 FFOA per share was $0.62, up 2% year-over-year and at the high end of guidance; AFFO per share was $0.55, flat year-over-year.

• Total Q2 2024 revenue was $415.3 million, up 2.7% year-over-year, driven by Same-Store growth.

• Same-Store NOI grew 2.0% year-over-year in Q2; operating margin for Same-Store Communities was 69.2%.

• Net income per diluted share was $0.08, down 92% year-over-year.

• Interest expense rose to $47.8 million in Q2 2024, reflecting higher rates and debt balances.

Outlook and guidance

• Raised full-year 2024 FFOA per share guidance midpoint to $2.46 and AFFO midpoint to $2.20.

• Full-year Same-Store revenue growth guidance midpoint increased to 2.0%; NOI growth guidance midpoint at 5.0%.

• Q3 2024 FFOA per share guidance is $0.61-$0.63; net income per diluted share guidance is $0.08.

• Guidance remains conservative due to macroeconomic and supply risks.

• Plans to meet liquidity needs through operations, credit facilities, and asset sales.