UDR's Q1 FFOA Meets Estimates, Revenues Increase Year Over Year

UDR Inc. UDR reported first-quarter 2025 funds from operations as adjusted (FFOA) per share of 61 cents, in line with the Zacks Consensus Estimate. The figure remained unchanged year over year.

Results reflect year-over-year growth in same-store net operating income (NOI), led by higher occupancy and an effective blended lease rate. However, a rise in other operating expenses and general and administrative expenses undermined the performance to an extent. The company reaffirmed its 2025 guidance.

Quarterly revenues from rental income were $419.8 million, which missed the Zacks Consensus Estimate of $421.3 million. Total revenues came in at $421.9 million. On a year-over-year basis, rental income and total revenues rose 2% each.

UDR’s First Quarter in Detail

In the reported quarter, same-store revenues increased 2.6% year over year. Same-store expenses were up 2.3%, and same-store NOI improved 2.8%.

UDR registered the same-store effective blended lease rate growth of 0.9% during the quarter.

The residential REIT’s weighted average same-store physical occupancy of 97.2% increased 40 basis points (bps) sequentially and 20 bps year over year. Our estimate was pegged at 97%.

However, other operating expenses of $8.1 million rose 18% year over year. General and administrative expenses climbed almost 9.5% to $19.5 million.

UDR’s Balance Sheet Position

As of March 31, 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 $533.5 million, or 9.7% of total consolidated debt, maturing through 2026. In addition, net debt-to-EBITDAre of 5.7X in the first quarter increased from 5.5X at the end of the prior quarter.

UDR ended the quarter with a weighted average interest rate of 3.36% and a weighted average years to maturity of 4.9 years.

UDR’s Portfolio Activity

In the first quarter, UDR began the construction of 3099 Iowa, a 300-unit apartment community in Riverside, CA, at an estimated development cost of $133.6 million.

The company disposed of two properties during the first quarter of 2025:

Leonard Pointe, a 188-unit apartment community in New York, for a gross sale amount of $127.5 million, and One William, a 185-unit apartment community in New Jersey, for a gross sale amount of $84 million.

2025 Guidance by UDR

The company provided guidance for the second quarter and maintained its full-year 2025 outlook.

It expects second-quarter 2025 FFOA per share in the range of 61-63 cents. The Zacks Consensus Estimate is currently pegged at 62 cents.

For 2025, FFOA per share is expected in the range of $2.45-$2.55, with the midpoint at $2.50. The Zacks Consensus Estimate is currently pegged at $2.50, which lies within the guided range.

For the full year, on a straight-line basis, the company projects growth rates for same-store revenues in the range of 1.25-3.25%, same-store expenses between 2.75% and 4.25% and same-store NOI between 0.50% and 3.00%.

UDR’s Zacks Rank

Currently, UDR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Performance of Other Residential REITs

Essex Property Trust Inc. ESS reported a first-quarter 2025 core FFO per share of $3.97, beating the Zacks Consensus Estimate of $3.92. The figure also improved 3.7% from the year-ago quarter.

The quarterly results reflected favorable growth in same-property revenues and NOI. However, the same-property operating expenses partly acted as a dampener. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Equity Residential EQR reported a first-quarter 2025 normalized FFO per share of 95 cents, which outpaced the Zacks Consensus Estimate of 93 cents. The figure also improved 2.2% from the year-ago quarter.

EQR’s quarterly results reflected a rise in same-store revenues and physical occupancy on a year-over-year basis.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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