Market Overview

UDR Announces Third Quarter 2018 Results and Increases Full-Year Guidance Ranges

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UDR, Inc. (the "Company") Third Quarter 2018 Highlights:

  • Net income per share was $0.07, Funds from Operations ("FFO") per
    share was $0.49, FFO as Adjusted ("FFOA") per share was $0.49, and
    Adjusted Funds from Operations ("AFFO") per share was $0.44.
  • Net income attributable to common stockholders was $17.6 million as
    compared to $15.3 million in the prior year period. The increase was
    primarily due to higher income from operating properties.
  • Year-over-year same-store ("SS") revenue, expense and net operating
    income ("NOI") growth for the quarter were 3.8 percent, 3.5 percent
    and 3.9 percent, respectively.
  • The Company's $808.5 million pro-rata share of development projects in
    lease-up continued to realize strong demand, ending the third quarter
    at a weighted average 77.9 percent leased.
  • Invested in three Developer Capital Program ("DCP") projects for a
    total commitment of $73.1 million. The communities are located in
    Philadelphia, PA, Orlando, FL, and Santa Monica, CA.
  • Entered into a contract to sell Circle Towers, a 46 year old, 604-home
    community located in Fairfax County, VA, for $160.0 million. The
    transaction is scheduled to close during the fourth quarter subject to
    customary closing conditions.
  • Subsequent to quarter end, issued $300.0 million of 10-year unsecured
    debt at an effective 4.27 percent coupon and intends to use the
    proceeds to prepay $195.8 million of 5.28 percent secured debt
    originally scheduled to mature in October and December 2019 and for
    general corporate purposes.
  • Increased and/or tightened full-year 2018 earnings and same-store
    growth guidance ranges:
    • Increased net income per share guidance by $0.18 at the midpoint
      to $0.70 to $0.71.
    • Increased FFOA per share guidance by $0.01 at the midpoint to
      $1.95 to $1.96.
    • Tightened AFFO per share guidance to $1.79 to $1.80.
    • Increased SS revenue, expense and NOI growth guidance ranges by 25
      basis points at the low-ends to 3.25 to 3.50 percent.
 
      Q3 2018     Q3 2017     YTD 2018     YTD 2017
Net income per common share, diluted     $ 0.07       $ 0.06       $ 0.44       $ 0.18  
Conversion from GAAP share count     (0.006 )     (0.005 )     (0.041 )     (0.017 )
Net gain on the sale of depreciable real estate owned - (0.008 ) (0.237 ) (0.051 )
Cumulative effect of change in accounting principle - - (0.007 ) -
Depreciation and amortization 0.418 0.411 1.242 1.225
Noncontrolling interests and preferred dividends       0.009         0.008         0.047         0.025  
FFO per common share and unit, diluted     $ 0.49       $ 0.46       $ 1.44       $ 1.37  
Cost/(benefit) associated with debt extinguishment and other 0.002 - 0.002 0.020
Acquisition-related costs/(fees) - 0.001 - 0.001
Net gain on the sale of non-depreciable real estate owned - - - (0.005 )
Legal and other costs 0.002 - 0.004 -
Casualty-related charges/(recoveries), including JVs, net       0.002         0.007         0.009         0.010  
FFOA per common share and unit, diluted     $ 0.49       $
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