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1. Company Snapshot

1.a. Company Description

UDR, Inc.(NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets.As of September 30, 2020, UDR owned or had an ownership position in 51,649 apartment homes including 1,031 homes under development.


For over 48 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.

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1.b. Last Insights on UDR

UDR, Inc.'s recent performance has been impacted by rising rental supply, tempering gains despite the company's diversified portfolio and tech upgrades. The departure of President and Chief Investment Officer Joe Fisher may have added uncertainty. Furthermore, the US apartment market has cooled, with rents posting their first decline since 2009, testing the resilience of major REITs. The company's Q3 earnings release and guidance will be crucial in determining its short-term trajectory. Additionally, UDR's BBB+ balance sheet and 4.4% dividend yield provide a relatively stable income stream.

1.c. Company Highlights

2. UDR Inc. Beats Expectations with Strong Q3 2025 Performance

UDR Inc.'s third-quarter 2025 financial performance was impressive, with same-store revenue and NOI growth coming in at 2.6% and 2.3%, respectively, surpassing consensus expectations. The company's EPS was $0.65, beating estimates of $0.63. The strong revenue growth was driven by a 0.8% blended lease rate growth, resulting from 3.3% renewal rate growth and -2.6% new lease rate growth, as well as a 300-basis-point improvement in resident turnover. As David Bragg, UDR's Chief Financial Officer, noted, the company's culture of innovation and analytics-driven approach informs its decisions on capital allocation, with a focus on driving long-term cash flow growth.

Publication Date: Nov -03

📋 Highlights
  • Outperformed Consensus:: Q3 2025 same-store revenue and NOI growth at 2.6% and 2.3%, driven by 300-basis-point turnover improvement and 96.6% occupancy.
  • Guidance Upside:: Full-year 2025 same-store revenue growth midpoint raised to 2.4%, with FFOA/share guidance lifted to $2.53–$2.55.
  • Liquidity & Debt Management:: Over $1B in liquidity, $129M secured debt repayment, and extended $350M loan maturity by 2 years; leverage remains strong (30% debt-to-enterprise value).
  • Strategic Capital Allocation:: $147M Northern Virginia acquisition with 5% underwritten NOI yield, plus $35M share repurchases and active asset recycling (6 assets in market).
  • Operational Efficiency:: Turnover reduced by 600 bps since Q1 2023, 1.5-week average concessions, and 8.5% other income growth from amenities like parking and WiFi.

Operational Highlights

UDR's occupancy averaged 96.6%, 30 basis points higher than the prior year period. The company's strategy focuses on driving occupancy, and it aims to maximize revenue and cash flow. UDR has been closely monitoring resident sentiment and has been in communication with residents impacted by furloughs and other economic factors. The decision to realign fourth-quarter leases was driven by supply concerns, with the goal of positioning the company to lease up during a typically slower period.

Capital Allocation and Balance Sheet

UDR has a collaborative and data-driven capital allocation process, prioritizing investments in operations, NOI-enhancing CapEx, and redevelopment. The company has been actively recycling assets through dispositions and acquisitions, including a $147 million acquisition of a 406-apartment home community in Northern Virginia. UDR's balance sheet remains strong, with over $1 billion in liquidity as of September 30 and a debt-to-enterprise value of 30%. The company's net debt-to-EBITDA ratio stands at 5.5x.

Valuation and Outlook

With a P/E Ratio of 80.17 and an EV/EBITDA of 16.52, UDR's valuation suggests that the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 3.3%. The company's guidance for full-year 2025 same-store revenue growth has been adjusted to 2.4%, and FFOA per share guidance has been raised to $2.53-$2.55 per share. UDR's focus on driving occupancy and maximizing revenue and cash flow positions it well for future growth.

Growth Initiatives

UDR is focused on reducing turnover through initiatives like increased touchpoints with residents, solving move-in experience issues, and improving reviews. The company has seen a 600 basis point reduction in turnover since Q1 2023 and expects continued improvement. The LaSalle JV remains a priority, with an incremental buying power of over $500 million. UDR continues to work on contributing assets from its balance sheet to earn fees and expand its portfolio.

3. NewsRoom

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8 'Safer' Dividend Buys In Barron's 23 Better November Bets Than T-Bills

Nov -28

Source: seekingalpha.com

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Buried Treasure: Your Map To 13 Strong-Yielding Bargain REITs

Nov -17

Source: seekingalpha.com

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Federal Realty Appoints Joseph D. Fisher to Board of Trustees

Nov -10

Source: prnewswire.com

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UDR, Inc. (UDR) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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UDR's Q3 FFOA Beats Estimates, Revenues & Same-Store NOI Grow

Oct -30

Source: zacks.com

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UDR (UDR) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -29

Source: zacks.com

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UDR (UDR) Surpasses Q3 FFO Estimates

Oct -29

Source: zacks.com

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UDR, Inc. Announces Third Quarter 2025 Results and Updates Full-Year 2025 Guidance Ranges

Oct -29

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.42%)

6. Segments

Same-store Communities

Expected Growth: 2.5%

UDR's 2.5% same-store communities growth is driven by a combination of factors, including a strong demand for apartments, limited new supply, and the company's successful implementation of its Next Generation Operating Platform, which has led to increased pricing power and operational efficiencies.

Non-mature Communities/Other

Expected Growth: 1.5%

UDR's Non-mature Communities/Other segment growth of 1.5% is driven by increasing demand for affordable housing, strategic acquisitions, and value-add renovations. Additionally, the segment benefits from a growing presence in high-growth markets, such as the Sunbelt region, and a focus on operational efficiencies to drive revenue growth.

7. Detailed Products

Apartment Communities

UDR, Inc. owns and operates a portfolio of apartment communities across the United States, offering a range of floor plans, amenities, and services to residents.

Property Management Services

UDR provides property management services to third-party owners, including leasing, marketing, and maintenance services.

Development and Construction Services

UDR develops and constructs new apartment communities, offering a range of services from site acquisition to project completion.

Real Estate Investment Trust (REIT) Services

UDR operates as a REIT, providing a range of investment opportunities for individuals and institutions.

8. UDR, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

UDR, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

UDR, Inc. has a large customer base, but the bargaining power of customers is high due to the availability of alternative housing options.

Bargaining Power Of Suppliers

UDR, Inc. has a diversified supplier base, which reduces the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is moderate due to the high barriers to entry in the real estate industry, but UDR, Inc. must still be vigilant to maintain its market share.

Intensity Of Rivalry

The real estate industry is highly competitive, and UDR, Inc. faces intense rivalry from other companies, which can lead to pricing pressure and decreased market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.88%
Debt Cost 3.95%
Equity Weight 39.12%
Equity Cost 7.80%
WACC 5.45%
Leverage 155.63%

11. Quality Control: UDR, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Essex Property Trust

A-Score: 5.8/10

Value: 3.3

Growth: 5.6

Quality: 6.7

Yield: 7.0

Momentum: 3.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Mid-America Apartment Communities

A-Score: 5.6/10

Value: 3.2

Growth: 5.2

Quality: 5.4

Yield: 7.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Equity Lifestyle Properties

A-Score: 5.3/10

Value: 2.0

Growth: 5.3

Quality: 6.2

Yield: 5.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Independence Realty Trust

A-Score: 5.2/10

Value: 2.6

Growth: 5.8

Quality: 4.2

Yield: 7.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
UDR

A-Score: 5.2/10

Value: 2.2

Growth: 3.9

Quality: 4.5

Yield: 8.0

Momentum: 2.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Apartment Income REIT

A-Score: 4.4/10

Value: 4.4

Growth: 4.3

Quality: 5.4

Yield: 4.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.2$

Current Price

35.2$

Potential

-0.00%

Expected Cash-Flows