Markets
HIW

UDR's Q4 FFO in Line, Up Y/Y; 2016 Guidance Revealed

UDR Inc.UDR reported fourth-quarter 2015 adjusted funds from operations ("FFO") of 42 cents per share, which came in line with the Zacks Consensus Estimate. However, the figure was up from the fourth-quarter 2014 adjusted FFO of 39 cents per share.

Results of this residential real estate investment trust ("REIT") were attributable to higher revenues and same-store net operating income ("NOI").

Total revenue for the quarter improved 13.4% year over year to $237.6 million, exceeding the Zacks Consensus Estimate of $222.1 million.

For full-year 2015, adjusted FFO came in at $1.67 per share, up from the 2014 tally of $1.52. For full-year 2015, the Zacks Consensus Estimate was $1.67. Revenues for 2015 came in at $894.6 million, up 9.4% year over year.

Inside the Headlines

During the quarter, same-store revenues increased 6.2% year over year; while same-store expense climbed 5.2%. Consequently, same-store NOI rose 6.6% year over year; whereas same-store physical occupancy inched down 30 basis points year over year to 96.5%.

During the quarter, UDR divested 9 wholly owned communities for a total price of $299 million.

As of Dec 31, 2015, UDR had a development pipeline under construction (pro-rata basis) worth $670 million, with 55% of the equity commitment funded.

As of the same date, the company's liquidity amounted to $987 million, through a combination of cash and un-drawn capacity on its credit facilities, compared with $791 million as of Sep 30, 2015. Further, the company had total debt of $3.6 billion, up from the prior-quarter figure of $3.5 billion.

Guidance for 2016

UDR introduced guidance for first-quarter and full-year 2016. For first-quarter 2016, it expects FFO per share in a range of 42-44 cents and adjusted FFO per share within 42-44 cents.

For full-year 2016, the company expects FFO per share in a range of $1.75-$1.81 and adjusted FFO per share in the range of $1.75-$1.81.

For full-year 2016, UDR provided guidance for revenues, expense and NOI in the respective ranges of 5.50-6.00%, 3.00-3.50% and 6.50-7.00%.

Our Viewpoint

We believe superior performance of UDR's operating portfolio will help it deliver better results, going forward. Also, ongoing portfolio-restructuring and extensive construction activities position the company well in upscale markets, thereby boosting its prospects.

Currently, UDR carries a Zacks Rank #2 (Buy). Presently, we look forward to other REIT stocks that are scheduled to release fourth-quarter 2015 results next week. These include Liberty Property Trust LPT , Federal Realty Investment Trust FRT and Highwoods Properties Inc. HIW .

Note: Funds 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 income.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

FED RLTY INV (FRT): Free Stock Analysis Report

UDR INC (UDR): Free Stock Analysis Report

HIGHWOODS PPTYS (HIW): Free Stock Analysis Report

LIBERTY PPTY TR (LPT): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

HIW UDR FRT

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More