Udr, Inc. · NYSE:UDR
Udr — Q4 2024 Earnings Presentation
28 slides from Udr's earnings presentation, Feb 6, 2025
Slide 1: Fourth Quarter and Full-Year 2024 Earnings Presentation
5421 at Dublin Station San Francisco, CA Fourth Quarter and Full-Year 2024 Earnings Presentation FEBRUARY 2025
Slide 2: Disclaimer and Forward-Looking Statements
DISCLAIMER AND FORWARD-LOOKING STATEMENTS This presentation, which the Company intends to provide on an annual basis in conjunction with its initial guidance outlook, is complementary to the Company’s conference call to discuss its Fourth Quarter and Full-Year 2024 earnings results, taking place on
Slide 3: Featured Speakers
FEATURED SPEAKERS Tom Toomey Joe Fisher Mike Lacy Chairman and CEO President, CFO, and CIO COO 3 Source: Company documents.
Slide 4: Key Takeaways
KEY TAKEAWAYS 1 Fourth Quarter and Full-Year 2024 FFOA per share results met guidance expectations; Same-Store results were better than their respective midpoints. 2 Resilient economic backdrop, with new supply pressures expected to abate as 2025 progresses. 3 Investments in innovation expected to d
Slide 5: Recent Results
RECENT RESULTS 4Q and FY 2024 FFOA per share and Same-Store results met or exceeded guidance. Vs. Guidance Metric 4Q 2024 FY 2024 Midpoint FFOA per diluted share $0.63 $2.48 In-Line Year-Over-Year (“YOY”) Growth 0% 1% YOY Same-Store Growth Revenue 2.5% 2.3% Beat Expense 3.4% 4.3% Beat NOI 2.1% 1.5%
Slide 6: 2025 Macro Outlook
2025 MACRO OUTLOOK Positive demand and economic growth balanced by various uncertainties. 2025 YOY Rent Growth Forecast UDR Consensus 2.0% 2.25% to 2.75% Positives(1) Uncertainties YOY GDP Growth (1.5% to 2.5%) Economic Uncertainty, including Fed Actions YOY Job (0% to 1%) and Wage (3% to 4%) Growth
Slide 7: Sector Outlook
SECTOR OUTLOOK(1) Demographics, affordability, and demand/supply factors continue to support rentership. Steady Rent-to-Income Ratio (“R/I”) Attractive Relative Affordability Median resident R/I ratio in the low-20% range Nearly 60%, or $3,200 per month, less expensive to rent than own across UDR ma
Slide 8: Supply Outlook – Big Picture
SUPPLY OUTLOOK – BIG PICTURE New multifamily deliveries are expected to decline to historical averages in 2025, with future completions expected to trend even lower in 2026. National Multifamily Deliveries UDR Market Multifamily Deliveries Units % of Stock % of Stock (Historical Avg.) Units % of Sto
Slide 9: Supply Outlook – Impact to UDR Markets
SUPPLY OUTLOOK – IMPACT TO UDR MARKETS 2025 supply in Coastal regions is similar to 2024 while Sunbelt is materially lower. Supply By Region 2025 Forecast 2024 as a % of Existing Stock 6% Multifamily Supply 4% 20% year-over-year decrease 2% 0% Sunbelt East Coast / West Coast Total UDR Mid-Atlantic P
Slide 10: 2025 Outlook
2025 OUTLOOK(1) The waning impact of historically-high supply deliveries should lead to a positive inflection in same-store growth as 2025 progresses. 1Q 2025 FY 2025 FY 2025 FY 2024 Metric Outlook Outlook Midpoint Actual FFOA per share $0.60 to $0.62 $2.45 to $2.55 $2.50 $2.48 YOY Growth at Midpoin
Slide 11: Full-Year 2025 FFOA Per Share Guidance
FULL-YEAR 2025 FFOA PER SHARE GUIDANCE YOY increase driven by positive SSNOI growth and lower interest expense, partially offset by higher G&A and lower DPE earnings contribution. Drivers of Annual FFOA Per Share $2.60 $0.10 $2.55 $0.01 $(0.05) $(0.01) $2.50 $2.50 $2.48 $(0.03) $2.45 $2.40 $2.35 $2.
Slide 12: First Quarter 2025 FFOA Per Share Guidance
FIRST QUARTER 2025 FFOA PER SHARE GUIDANCE Sequential decrease driven by (1) typical seasonal SSEXP growth from the fourth quarter to the first quarter, (2) higher G&A, and (3) lower DPE earnings contribution. Drivers of Sequential FFOA Per Share $0.65 $0.64 $0.005 $0.63 $0.63 $0.005 $0.62 $(0.015)
Slide 13: Balance Sheet Strength and Robust Liquidity
BALANCE SHEET STRENGTH AND ROBUST LIQUIDITY Minimal near-term debt maturities(1) Forward Debt Maturity Schedule ($ in millions) $1,000 Unsecured Debt Secured Debt Only 10% of consolidated $800 debt outstanding maturing $600 $19.8B Common Equity $400 $200 $0 2025 2026 2027 2028 2029 2030 2031 2032 20
Slide 14: 2025 Same-Store Revenue Growth
2025 SAME-STORE REVENUE GROWTH Primary variable is the magnitude and cadence of blended lease rate growth. Components of 2025 SSREV Growth FY 2024 Actual 3.5% High: 3.25% Driven by further rollout of building- 3.0% wide Wi-Fi, enhanced amenity offerings, package lockers, etc. 2.5% 2.5% average blend
Slide 15: 2025 Same-Store Revenue Growth Ranges, by Region
2025 SAME-STORE REVENUE GROWTH RANGES, BY REGION Coastal markets (~75% of UDR NOI) expected to deliver highest growth in 2025. Top growth markets: Baltimore, New York, San Francisco, Seattle, Washington D.C. Bottom growth markets: Austin, Dallas, Monterey Peninsula, Nashville, Philadelphia 5% FY 202
Slide 16: 2025 Same-Store Expense Growth
2025 SAME-STORE EXPENSE GROWTH 2025 SSEXP Growth, by Category 12% FY 2024 Actual High: 9.5% 8% High: 5.5% High: 4.25% High: 4.5% High: 4.5% High: 4.5% Low: 7.5% 4% Low: 3.5% Low: 2.75% Low: 2.5% Low: 2.5% Low: 2.5% 0% High: (4.5)% -4% Low: (6.5)% -8% Total Real Estate R&M Personnel Utilities Admin &
Slide 17: Conclusion
CONCLUSION 1 Strong Fourth Quarter and Full-Year 2024 results. 2 Resilient economic backdrop + new supply pressures abate as 2025 progresses = 2025 SSNOI growth acceleration vs. 2024. 3 Technology, talent, and innovation to drive future incremental NOI. 4 Investment grade balance sheet with >$1 bill
Slide 18: Appendix: Definitions and Reconciliations
APPENDIX DEFINITIONS AND RECONCILIATIONS FEBRUARY 2025
Slide 19: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS A-2 Acquired Communities: The Company defines Acquired Communities as those communities acquired by the Company, other than development and redevelopment activity, that did not achieve stabilization as of the most recent quarter. Adjusted Funds from Operations (“AFFO”
Slide 20: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS A-3 Controllable Expenses: The Company refers to property operating and maintenance expenses as Controllable Expenses. Controllable Operating Margin: The Company defines Controllable Operating Margin as (i) rental income less Controllable Expenses (ii) divided by rent
Slide 21: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS A-4 Effective New Lease Rate Growth: The Company defines Effective New Lease Rate Growth as the increase/(decrease) in gross potential rent realized less concessions on a straight-line basis for the new lease term (current effective rent) versus prior resident effecti
Slide 22: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS A-5 Funds From Operations (“FFO”) attributable to common stockholders and unitholders: The Company defines FFO attributable to common stockholders and unitholders as net income/(loss) attributable to common stockholders (computed in accordance with GAAP), excluding im
Slide 23: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS A-6 Net Operating Income (“NOI”): The Company defines NOI as rental income less direct property rental expenses. Rental income represents gross market rent and other revenues less adjustments for concessions, vacancy loss and bad debt. Rental expenses include real est
Slide 24: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS A-7 QTD Same-Store Communities: The Company defines QTD Same-Store Communities as those communities Stabilized for five full consecutive quarters. These communities were owned and had stabilized operating expenses as of the beginning of the quarter in the prior year,
Slide 25: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS A-8 2025 Guidance: All guidance is based on current expectations of future economic conditions and the judgment of the Company's management team. The following reconciles from GAAP Net income/(loss) per share for the first quarter of 2025 and full-year 2025 to forecas
Slide 26: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS A-9 Quarter Ended Coverage Ratios December 31, 2024 Net income/(loss) $ (5,523) Adjustments: Interest expense, including debt extinguishment and other associated costs 49,625 Real estate depreciation and amortization 165,446 Other depreciation and amortization 6,381 T
Slide 27: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS A-10 Three Months Ended Twelve Months Ended December 31, December 31, In thousands, except per share and unit amounts 2024 2023 2024 2023 Net income/(loss) attributable to common stockholders $ (6,241) $ 31,764 $ 84,750 $ 439,505 Real estate depreciation and amortizat
Slide 28: Investor Relations Contact
Investor Relations Contact: Trent Trujillo ttrujillo@udr.com 720.283.6135 28