UDR Inc. (UDR, Financial) released its third quarter 2023 earnings report on October 26, 2023. The company reported a 43% increase in Net Income per diluted share from the same period last year, from $0.07 in Q3 2022 to $0.10 in Q3 2023. However, the actual figure fell short of the Q3 2023 guidance range of $0.13 to $0.15.
Financial Performance
UDR's Funds from Operations (FFO) per diluted share increased by 7% YOY, from $0.57 in Q3 2022 to $0.61 in Q3 2023. Similarly, FFO as Adjusted (FFOA) per diluted share saw a 5% YOY increase, from $0.60 in Q3 2022 to $0.63 in Q3 2023. Adjusted FFO (AFFO) per diluted share experienced a modest 2% YOY increase, from $0.54 in Q3 2022 to $0.55 in Q3 2023.
UDR's total revenue increased by 4.8 percent YOY to $410.1 million in Q3 2023, primarily due to growth in revenue from Same-Store communities and past accretive external growth investments.
Updated Full-Year 2023 Guidance
Despite the positive results, UDR has lowered its expectations for FFOA per diluted share for Q4 2023 to a midpoint of $0.63, down from the $0.65 implied by the company's prior full-year 2023 guidance. The company attributes this adjustment to softer operating trends across the industry due to high levels of new supply.
Development and Transactional Activity
During Q3 2023, UDR acquired a portfolio of six communities in Texas, totaling 1,753 apartment homes. The company also achieved stabilized occupancy at a newly developed apartment community in the Dublin submarket of the San Francisco Bay Area. By the end of Q3 2023, UDR's development pipeline totaled $187.5 million and was 74 percent funded.
Balance Sheet and Capital Markets Activity
UDR's total indebtedness as of September 30, 2023, was $5.8 billion with no remaining consolidated maturities until Q3 2024. The company had $970.0 million of liquidity through a combination of cash and undrawn capacity on its credit facilities.
ESG Commitments and Dividend
UDR published its fifth annual ESG report, detailing the company's commitment to socially responsible ESG activities. The company's Board of Directors declared a regular quarterly dividend on its common stock for Q3 2023 in the amount of $0.42 per share.
Explore the complete 8-K earnings release (here) from UDR Inc for further details.
