UDR (UDR) Q4 2024 earnings summary

Executive summary

• Fourth quarter and full year 2024 FFOA per share met or exceeded guidance, with same-store results above midpoints.

• Innovation and technology initiatives, such as the Customer Experience Project and property-wide Wi-Fi, are expected to drive incremental NOI growth in 2025.

• Leadership changes include promotions to COO and CIO, with a CFO search underway.

• Completed sales of two apartment communities for $211.5 million in gross proceeds after quarter-end.

• Positioned for opportunistic, accretive investments with a strong balance sheet and ample liquidity.

Financial highlights

• Q4 and full year 2024 FFOA per share were $0.63 and $2.48, respectively, at the midpoint of guidance.

• Same-store NOI grew 2.1% in Q4 2024 year-over-year and 1.5% for the full year.

• Average physical occupancy remained strong at 96.8%.

• Full-year 2024 Net Income per diluted share was $0.26, down from $1.34 in 2023.

• Weighted average interest rate was 3.38%; consolidated net debt-to-EBITDAre was 5.5x.

Outlook and guidance

• 2025 FFOA per share guidance is $2.45–$2.55, with a $2.50 midpoint, representing a 1% year-over-year increase.

• 2025 same-store revenue growth guidance is 1.25%–3.25% (midpoint 2.25%).

• 2025 same-store NOI growth expected at 1.75%–3.00%.

• Q1 2025 FFOA per share guidance is $0.60–$0.62, a 3% sequential decrease at the midpoint.

• 2025 annualized dividend per share announced at $1.72, up 1.2%.