), a real estate investment trust (REIT), reported third quarter
2012 FFO (funds from operations) of $86.5 million or 33 cents per
share, compared with 73.0 million or 32 cents in the year-earlier
quarter. Reported FFO per share was in line with the Zacks
Total revenues during the quarter were $181.8 million compared
with $163.9 million in the prior-year quarter.
Same-store occupancy remained relatively high at 95.8% during the
quarter. Same-store revenues and net operating income increased
5.5% and 6.4% respectively, during the reported quarter compared
to the year-ago quarter, to levels of $146.9 million and $99.1
During the reported quarter, UDR started construction on its
Beach Walk development in Huntington Beach, California. Before
construction, the company acquired the remaining 10% stake in
Beach Walk from its former joint venture partner.
The community consists of 173 homes and has an estimated cost
of $50.7 million. Additionally, the company acquired a land
parcel in Santa Monica, California for $10.3 million through a
Subsequent to the end of the quarter, UDR exchanged its ownership
stake in four operating communities and two land parcels in the
UDR-MetLife I joint venture, (along with $10 million in cash),
with an increase in its stake in the A-quality operating
community - The Olivian.
At closing, the company will own 50% of The Olivian, which
will be a part of the UDR/MetLife II joint venture. The four
operating communities and two land parcels for which UDR entered
into arrangements to exchange have a combined debt of $134.7
million with a weighted average interest rate of 3.5% and a term
of 7 years. The Olivian's debt stood at $63.4 million with an
interest of 4.5% and a term of 7 years
At the end of the quarter, the company's liquidity amounted to
$1.1 billion through a combination of cash and undrawn capacity
on its credit facilities. This amount is likely to meet UDR's
immediate capital needs for debt maturities, development and
As of September 30, 2012, UDR had total debt of $3.3 billion and
a fixed charge coverage ratio of 2.9x. UDR ended the quarter with
89% fixed-rated debt at a total blended interest rate of 4.5% and
a weighted average debt maturity of 4.8 years.
UDR currently retains a Zacks #2 Rank, which translates into a
short-term Buy rating. We maintain our long-term Neutral
recommendation on the stock. One of its competitors,
) also currently retains a Zacks #2 Rank.
Note: Fund from operations, a widely used metric to gauge
the performance of REITs, is obtained after adding depreciation
and amortization and other non-cash expenses to net
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UDR INC (UDR): Free Stock Analysis Report
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