UDR (UDR) Q3 2024 earnings summary

Executive summary

• Year-to-date and Q3 results exceeded expectations, with strong same-store and earnings growth, leading to raised full-year FFOA per-share guidance for the third time in 2024.

• Rental income rose 2.8% year-over-year to $418.1M for Q3, with total revenue for Q3 2024 increasing 2.4% to $420.2M, driven by growth in Same-Store communities, acquisitions, and developments.

• Net income attributable to common stockholders was $21.4M ($0.06/share) for Q3, down from $31.6M ($0.10/share) in Q3 2023.

• Focus remains on innovation, customer experience, and maintaining an investment-grade balance sheet with substantial liquidity.

• ESG leadership continues, with the sixth annual report highlighting progress in environmental, social, and governance goals.

Financial highlights

• Third-quarter FFOA per share was $0.62, at the midpoint of guidance and flat sequentially; AFFO per diluted share was $0.54 for Q3.

• Updated full-year 2024 FFOA per share guidance is $2.47-$2.49, with the midpoint up 3% from initial guidance.

• Third-quarter same-store revenue and NOI growth were 1.2% and 0.8% year-over-year, respectively.

• Occupancy averaged 96.3% in Q3, ending at 96.5%, and improved to 96.6% in October.

• Cash flow from operations was $636.3M for the nine months, up from $613.6M in 2023.

Outlook and guidance

• Full-year same-store revenue growth midpoint raised to 2.2%, and same-store expense growth midpoint lowered to 4.4%.

• Fourth-quarter FFOA per share guidance is $0.62-$0.64, with the midpoint 1.5% higher sequentially.

• Management expects to meet short-term liquidity needs through operating cash flow and credit facilities.

• 2025 same-store revenue growth forecasted at 60-70 basis points, about half the historical norm.

• Expect continued margin expansion and incremental NOI from customer experience initiatives in 2025 and beyond.