UDR Inc (UDR) Q2 FFO Meets Estimates, Stock Trades Down
Zacks Investment Research | Jul 27, 2016 03:38AM ET
UDR Inc. (NYSE:UDR) reported second-quarter 2016 funds from operations (“FFO”) of 44 cents per share, which came in line with the Zacks Consensus Estimate. The figure was up 7.3% from the prior-year quarter tally of 41 cents. The improvement was driven by growth in same-store revenue and net operating income (“NOI”). The company has narrowed its full-year 2016 guidance.
Shares are trading down nearly 2.5% today.
Total revenue for this residential real estate investment trust (“REIT”) improved 10.6% year over year to $238.8 million. The figure also exceeded the Zacks Consensus Estimate of $236.7 million.
Inside the Headlines
During the quarter, same-store revenues increased 5.7% year over year; while same-store expense climbed 5.5%. Consequently, same-store NOI rose 5.7% year over year; whereas same-store physical occupancy inched down 30 basis points (bps) year over year to 96.6%. Moreover, the annualized rate of turnover went up 80 bps year over year to 56.8%.
At the end of the second quarter, UDR had a completed and under-construction development pipeline for which its pro rata share amounted to $1.1 billion. This included $162 million completed, non-stabilized project and $937 million of under-construction projects.
As of Jun 30, 2016, the company had $876 million available, through a combination of cash and undrawn capacity on its credit facilities compared with $1.1 billion as of Mar 31, 2016. Further, the company had total debt of $3.5 billion against $3.4 billion at prior-quarter end.
Guidance 2016
UDR has narrowed its FFO per share guidance for full-year 2016. The company expects FFO per share in the range of $1.76–$1.80 against $1.75–$1.81 guided earlier. The Zacks Consensus Estimate for FFO per share is currently pegged at $1.78. Also, the company projects growth in revenues, rise in expense and higher NOI in the respective ranges of 5.5–6%, 3–3.5% and 6.5–7%, for the full year.
For third-quarter 2016, UDR expects FFO per share in the 44–46 cents range. The Zacks Consensus Estimate for the third quarter currently stands at 45 cents.
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