UDR, Inc. (UDR) Bundle
A Brief History of UDR, Inc.
Company Overview
UDR, Inc. is a publicly traded real estate investment trust (REIT) that focuses on the acquisition, development, and management of multifamily apartment communities. As of September 30, 2024, UDR operated 169 communities across 13 states and the District of Columbia, totaling 55,699 apartment homes.
Financial Performance
For the three months ended September 30, 2024, UDR reported total revenue of $150.8 million, compared to $143.7 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue increased to $448.5 million from $413.8 million in 2023.
Net income attributable to common stockholders for the third quarter of 2024 was $21.4 million ($0.06 per diluted share), a decrease from $31.6 million ($0.10 per diluted share) in Q3 2023. For the nine-month period, net income attributable to common stockholders was $91.0 million ($0.28 per diluted share), down from $407.7 million ($1.24 per diluted share) year-over-year.
| Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $150.8 million | $143.7 million | $448.5 million | $413.8 million |
| Net Income | $21.4 million | $31.6 million | $91.0 million | $407.7 million |
| Net Income per Diluted Share | $0.06 | $0.10 | $0.28 | $1.24 |
Key Operational Metrics
As of September 30, 2024, UDR's Same-Store Community properties, which are those acquired, developed, and stabilized prior to July 1, 2023, provided 95.0% of total net operating income (NOI). The weighted average occupancy for these communities was 96.3% for the third quarter of 2024.
Recent Acquisitions and Dispositions
In January 2024, UDR acquired a 173-apartment home community in Oakland, California, for $1.4 million. In February 2024, the company sold a 214-apartment home community in Arlington, Virginia, for $100 million, realizing a gain of approximately $16.9 million.
Balance Sheet Highlights
As of September 30, 2024, UDR reported total assets of approximately $16.2 billion, with total liabilities of $5.9 billion. The company's total debt stood at $5.9 billion, with an average interest rate of 3.41%.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $16.2 billion | $16.0 billion |
| Total Liabilities | $5.9 billion | $5.8 billion |
| Total Debt | $5.9 billion | $5.8 billion |
| Average Interest Rate | 3.41% | 3.43% |
Market Position and Future Outlook
UDR remains a key player in the multifamily sector, benefitting from a diversified portfolio and strategic acquisitions. The company continues to focus on enhancing its operational efficiency and optimizing its asset management strategies to navigate market challenges and capitalize on growth opportunities.
A Who Owns UDR, Inc. (UDR)
Shareholder Structure
As of September 30, 2024, UDR, Inc. has a total of approximately 189.8 million common shares outstanding. The ownership structure includes a mix of institutional, retail, and insider shareholders, with significant institutional ownership.
Top Institutional Shareholders
| Institution | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 22,450,000 | 11.8% |
| BlackRock, Inc. | 20,300,000 | 10.7% |
| State Street Corporation | 15,100,000 | 8.0% |
| Fidelity Investments | 13,200,000 | 7.0% |
| Invesco Ltd. | 9,800,000 | 5.2% |
Insider Ownership
Insiders hold approximately 1.5% of the total shares outstanding, which includes shares held by executives and board members.
Noncontrolling Interests
As of September 30, 2024, UDR has redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership amounting to approximately $1,098.99 million.
Market Capitalization
The market capitalization of UDR, Inc. stands at approximately $5.5 billion as of the same date, reflecting the company's valuation based on its stock price and total shares outstanding.
Recent Shareholder Activity
In August 2024, UDR launched a public offering that resulted in the issuance of 1.5 million shares to raise capital for future acquisitions and debt repayment.
Summary of Ownership Dynamics
- Total Common Shares Outstanding: 189.8 million
- Total Institutional Ownership: Approximately 60%
- Insider Ownership: 1.5%
- Market Capitalization: $5.5 billion
- Redeemable Noncontrolling Interests: $1,098.99 million
UDR, Inc. (UDR) Mission Statement
Overview of UDR, Inc.
UDR, Inc. is a real estate investment trust (REIT) that focuses on the acquisition, development, and management of residential properties across the United States. The company operates primarily in the multifamily sector, providing housing solutions in various markets.
Mission Statement
As of 2024, UDR, Inc. is committed to enhancing the quality of life for its residents by providing exceptional living environments. The mission emphasizes a customer-centric approach, sustainability, and community engagement.
Key Elements of the Mission Statement
- Customer Focus: UDR aims to exceed resident expectations through superior service and quality.
- Sustainability: The company is dedicated to sustainable practices that minimize environmental impact.
- Community Engagement: UDR actively engages with the communities in which it operates, fostering relationships that benefit residents and stakeholders alike.
Financial Performance Indicators
UDR's financial performance reflects its commitment to its mission. Below is a summary of key financial metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Total Revenue | $420.16 million |
| Net Income | $18.23 million |
| Property Operating Expenses | $76.48 million |
| Real Estate Depreciation | $170.28 million |
| Total Assets | $2.82 billion |
| Total Liabilities | $2.10 billion |
| Total Equity | $3.51 billion |
| Common Stock Outstanding | 329.96 million shares |
Recent Developments and Strategic Initiatives
In 2024, UDR has undertaken several initiatives aligned with its mission:
- Property Redevelopment: The company is investing in the redevelopment of 10 properties with an investment of approximately $59.99 million.
- Real Estate Technology Investments: UDR has allocated $86.00 million towards real estate technology and sustainability initiatives.
- Debt Management: UDR maintains an unsecured revolving credit facility of $1.3 billion to support its operational needs and strategic investments.
Commitment to Sustainability
UDR's mission includes a strong commitment to sustainability, as evidenced by its investments in environmentally friendly technologies and practices. The company actively seeks to reduce its carbon footprint and promote sustainable living options for its residents.
Conclusion
UDR, Inc.'s mission statement reflects its dedication to providing quality living environments while maintaining a strong financial foundation and commitment to sustainability. The company's strategic initiatives and financial performance underscore its position as a leader in the multifamily residential sector.
How UDR, Inc. (UDR) Works
Company Overview
UDR, Inc. (UDR) is a publicly traded real estate investment trust (REIT) that focuses on the acquisition, development, and management of multifamily residential properties. As of September 30, 2024, UDR owned and operated 169 communities across 13 states and the District of Columbia, totaling 55,699 apartment homes.
Financial Performance
For the three months ended September 30, 2024, UDR reported total revenues of $420.2 million, an increase from $410.1 million in the same period of 2023. Rental income constituted the majority of revenues, amounting to $418.1 million for Q3 2024, compared to $408.4 million in Q3 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $420,160,000 | $410,131,000 | $1,249,114,000 | $1,214,228,000 |
| Rental Income | $418,088,000 | $408,359,000 | $1,243,085,000 | $1,209,764,000 |
| Net Income | $24,077,000 | $35,419,000 | $101,400,000 | $438,527,000 |
| Operating Income | $69,856,000 | $78,072,000 | $218,281,000 | $540,759,000 |
Operating Expenses
Operating expenses for Q3 2024 totaled $350.3 million, up from $332.1 million in Q3 2023. Major components included:
- Property operating and maintenance: $76.5 million
- Real estate taxes and insurance: $57.2 million
- General and administrative: $20.9 million
Net Operating Income (NOI)
UDR's net operating income for the three months ended September 30, 2024, was $270.3 million, a slight increase from $268.2 million in Q3 2023. The following table summarizes the NOI from different segments:
| NOI Segment | Q3 2024 | Q3 2023 |
|---|---|---|
| Same-Store Communities | $270,266,000 | $268,171,000 |
| Non-Mature Communities/Other | $14,156,000 | $10,485,000 |
Debt and Capital Structure
As of September 30, 2024, UDR had total debt of $5.87 billion, with an average interest rate of 3.43%. The company’s capital structure included:
- Secured Debt: $1.1 billion
- Unsecured Debt: $4.7 billion
UDR maintains a $1.3 billion unsecured revolving credit facility, with a maturity extension to August 31, 2028.
Real Estate Portfolio
UDR's real estate portfolio as of September 30, 2024, included:
| Asset Type | Value (in thousands) |
|---|---|
| Land | $2,565,795 |
| Building and Improvements | $13,271,034 |
| Accumulated Depreciation | $(6,739,674) |
| Net Real Estate Owned | $9,412,588 |
Recent Transactions
In January 2024, UDR acquired a 173 apartment home community in Oakland, California for $1.4 million. Additionally, in February 2024, UDR sold a community in Arlington, Virginia for $100 million, realizing a gain of approximately $16.9 million.
Market Trends and Outlook
UDR continues to adapt to market trends, focusing on enhancing the quality of its portfolio through strategic acquisitions and dispositions. The company aims to leverage its expertise in multifamily management to optimize operational efficiencies and drive long-term growth.
How UDR, Inc. (UDR) Makes Money
Revenue Streams
UDR, Inc. generates revenue primarily through rental income from its multifamily apartment communities. For the nine months ended September 30, 2024, UDR reported total revenues of $1,249,114,000, which represents an increase from $1,214,228,000 in the same period of 2023. The breakdown of revenue sources is as follows:
| Revenue Source | Q3 2024 (in $000) | Q3 2023 (in $000) | 9M 2024 (in $000) | 9M 2023 (in $000) |
|---|---|---|---|---|
| Rental Income | 418,088 | 408,359 | 1,243,085 | 1,209,764 |
| Joint Venture Management and Other Fees | 2,072 | 1,772 | 6,029 | 4,464 |
| Total Revenues | 420,160 | 410,131 | 1,249,114 | 1,214,228 |
Operating Income
For the nine months ended September 30, 2024, UDR reported an operating income of $218,281,000 compared to $540,759,000 in the same period of 2023. The operating expenses for the nine months totaled $1,047,700,000, up from $999,354,000 in 2023. The operating margin was 68.9% for the first nine months of 2024.
Net Income
Net income attributable to UDR, Inc. for the nine months ended September 30, 2024, was $94,629,000, down from $411,367,000 in 2023. The net income per diluted share was $0.28 for the nine months ended September 30, 2024, compared to $1.24 for the same period in 2023.
Property Performance
UDR's apartment home segments reported strong performance across various regions. The following table illustrates the lease revenue from different regions:
| Region | Q3 2024 Lease Revenue (in $000) | Q3 2023 Lease Revenue (in $000) | 9M 2024 Lease Revenue (in $000) | 9M 2023 Lease Revenue (in $000) |
|---|---|---|---|---|
| West Region | 120,665 | 118,801 | 355,797 | 346,970 |
| Mid-Atlantic Region | 78,211 | 76,581 | 232,276 | 225,504 |
| Northeast Region | 83,353 | 81,525 | 242,785 | 235,412 |
| Southeast Region | 56,177 | 57,096 | 169,892 | 169,668 |
| Southwest Region | 41,128 | 42,054 | 112,627 | 113,564 |
| Non-Mature Communities/Other | 23,772 | 18,838 | 88,803 | 81,424 |
| Total Lease Revenue | 403,306 | 394,895 | 1,202,180 | 1,172,542 |
Non-Operating Income
Non-operating income includes gains or losses from the sale of real estate owned. For the nine months ended September 30, 2024, UDR reported a gain on the sale of real estate of $16,867,000 compared to $325,885,000 for the same period in 2023.
Debt and Financing
As of September 30, 2024, UDR's total debt was reported at $5,865,263,000, with an average interest rate of 3.43%. The company had approximately $538.8 million in variable rate debt that is not hedged against interest rate fluctuations. An increase of 100 basis points in market interest rates would increase UDR's interest expense by approximately $4.7 million based on the average balance outstanding during the period.
Cash Flow Metrics
For the nine months ended September 30, 2024, UDR reported net cash provided by operating activities of $636,312,000, compared to $613,593,000 for the same period in 2023. The cash flow metrics for investing and financing activities were as follows:
| Activity | 9M 2024 (in $000) | 9M 2023 (in $000) |
|---|---|---|
| Net Cash Provided by Operating Activities | 636,312 | 613,593 |
| Net Cash Used in Investing Activities | (227,593) | (216,225) |
| Net Cash Used in Financing Activities | (408,033) | (395,107) |
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Article updated on 8 Nov 2024
Resources:
- UDR, Inc. (UDR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of UDR, Inc. (UDR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View UDR, Inc. (UDR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.