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Jun 30, 2023

UDR Q2 2023 Earnings Report

UDR announced its second quarter 2023 results and updated its full-year 2023 guidance.

Key Takeaways

UDR reported a net income per diluted share of $1.05, FFO per diluted share of $0.63, FFOA per diluted share of $0.61, and AFFO per diluted share of $0.55 for the quarter ended June 30, 2023. Total revenue increased by $35.4 million YOY to $404.5 million.

Closed a $507.2 million joint venture with LaSalle Investment Management, retaining 51% ownership.

Achieved stabilization at Cirrus, a 292-home apartment community developed in Denver, CO.

Funded $38.8 million to pay down and extend maturity dates of senior construction loans.

Entered into an agreement to acquire six communities totaling 1,753 apartment homes valued at approximately $401.9 million.

Total Revenue
$403M
Previous year: $368M
+9.6%
EPS
$0.61
Previous year: $0.57
+7.0%
FFO per share
$0.63
Previous year: $0.52
+21.2%
Gross Profit
$96.1M
Previous year: $76.4M
+25.8%
Cash and Equivalents
$1.54M
Previous year: $921K
+67.6%
Total Assets
$11.1B
Previous year: $11B
+0.8%

UDR

UDR

Forward Guidance

UDR has established guidance ranges for the third quarter 2023 and has updated its prior full-year 2023 Net Income per share, FFO per share, FFOA per share, AFFO per share, and same-store growth guidance ranges.

Positive Outlook

  • Implied in full-year 2023 guidance is an expectation for FFOA per share to accelerate in the second half of the year.
  • Improving blended lease rate growth.
  • Better bad debt trends.
  • Higher other income from initiatives.
  • Incremental NOI from the lease-up of recently developed communities.