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Jun 30, 2022

UDR Q2 2022 Earnings Report

UDR's second quarter earnings met expectations, driven by rental rate growth and strategic investments, leading to increased full-year guidance.

Key Takeaways

UDR announced strong second quarter 2022 results, with earnings meeting the high end of expectations. The company's differentiated approach to maximizing rental rate growth and accretion from acquisitions and DCP investments drove the positive results. As a result, UDR raised full-year 2022 guidance expectations for the second time this year.

Second quarter earnings results met the high end of expectations.

Blended lease rate growth continued to accelerate to 17.4 percent.

The Company acquired one community for $207.5 million and three land sites for $135.2 million.

Full-year 2022 guidance expectations were raised for the second time this year.

Total Revenue
$368M
Previous year: $309M
+19.0%
EPS
$0.57
Previous year: $0.49
+16.3%
FFO per share
$0.52
Previous year: $0.52
+0.0%
Gross Profit
$76.4M
Previous year: $55.4M
+37.9%
Cash and Equivalents
$921K
Previous year: $3.37M
-72.7%
Total Assets
$11B
Previous year: $9.92B
+10.9%

UDR

UDR

Forward Guidance

For the third quarter 2022, the Company has established the following earnings guidance ranges and the Company has increased its previously provided full-year 2022 Same-Store and certain earnings guidance ranges

Positive Outlook

  • Net Income/(Loss) per diluted share 3Q 2022 Outlook: $0.06 to $0.08
  • FFO per diluted share 3Q 2022 Outlook: $0.58 to $0.60
  • FFOA per diluted share 3Q 2022 Outlook: $0.58 to $0.60
  • AFFO per diluted share 3Q 2022 Outlook: $0.53 to $0.55
  • SS Revenue YOY Growth/(Decline) 10.0% to 11.0%

Challenges Ahead

  • Change to 2022 Net Income/(Loss) per diluted share Guidance, at Midpoint: $(0.06)
  • Change to 2022 FFO per diluted share Guidance, at Midpoint: $(0.02)
  • SS Expense YOY Growth/(Decline) 3.5% to 4.5%
  • SS NOIN YOY Growth/(Decline) 12.5% to 14.0%
  • SS NOIN YOY Growth/(Decline) straight-line basis: 13.25% to 14.75%