UDR Reports Q1 2025 Results & Confirms 2025 Outlook
UDR, Inc., has released its financial performance for the first quarter of 2025, showcasing strong initial results for the year. The company reported Net Income, Funds from Operations (FFO), and Funds from Operations as Adjusted (FFOA) per diluted share for the period ending March 31, 2025.
UDR highlighted a robust start to 2025, with high demand for its apartment communities driving Same-Store growth that surpassed both internal expectations and market consensus.
First Quarter 2025 Financial Highlights:
| Metric | 1Q 2025 Actual | 1Q 2025 Guidance | 1Q 2024 Actual | $ Change YoY | % Change YoY |
|---|---|---|---|---|---|
| Net Income per diluted share | $0.23 | $0.24 – $0.26 | $0.13 | $0.10 | 77% |
| FFO per diluted share | $0.58 | $0.60 – $0.62 | $0.60 | $(0.02) | (3)% |
| FFOA per diluted share | $0.61 | $0.60 – $0.62 | $0.61 | $0.00 | 0% |
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Same-Store Performance:
UDR’s Same-Store results for the first quarter of 2025 demonstrated positive year-over-year growth across key metrics:
| SS Growth / (Decline) | 1Q 2025 vs. 1Q 2024 (YoY) | 1Q 2025 vs. 4Q 2024 (Sequential) |
|---|---|---|
| Revenue | 2.6% | 0.5% |
| Expense | 2.3% | 3.5% |
| NOI | 2.8% | (0.9)% |
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Strategic Transactions and Developments:
During the first quarter, UDR executed several strategic transactions and development initiatives:
- Property Dispositions: The company completed the sale of Leonard Pointe, a 188-home apartment community in New York, for $127.5 million, and One William, a 185-home apartment community in New Jersey, for $84.0 million.
- New Development: UDR commenced the development of 3099 Iowa, a 300-home apartment community in Riverside, CA, with an anticipated total cost of $133.6 million.
- Increased Investment: UDR increased its investment in the 1300 Fairmount joint venture in Philadelphia by acquiring the senior loan for $114.6 million, bringing its total investment to $183.2 million, providing greater control over the asset.
- Industry Recognition: UDR was recognized as a USA Today Top Workplace for the second consecutive year.
- Post Quarter-End Investment: Subsequent to the quarter’s end, UDR committed $13.0 million in a preferred equity investment in a stabilized apartment community in the San Francisco MSA, expecting a 12.0 percent return.
Management Commentary:
Tom Toomey, UDR’s Chairman and CEO, commented, “2025 has started with high demand for our apartment homes, which led to Same-Store growth exceeding our initial expectations and consensus estimates. These results demonstrate the strength of our strategy and the value of our operating platform. While macroeconomic and political uncertainties exist, we believe the fundamental backdrop remains supportive for continued Same-Store and FFOA per share growth.”
Mike Lacy, UDR’s Chief Operating Officer, added, “Same-Store revenue, expense, and NOI growth in the first quarter was better than expected, largely due to the enhancements we made to our Customer Experience strategy which drove a 300 basis point improvement in annualized turnover compared to the prior year period. We remain in a position of operating strength with Same-Store occupancy of approximately 97 percent, resident retention that continues to exceed our original expectations, positive sequential momentum on new lease rate growth, steady renewal rate growth in the mid-4 percent range, and continued innovation leading to mid-to-high single digit growth from our various rentable items initiatives.”
Outlook:
UDR has established the following guidance for the second quarter of 2025 and has reaffirmed its full-year 2025 guidance ranges:
| Metric | 2Q 2025 Outlook | 1Q 2025 Actual | Reaffirmed Full-Year 2025 Outlook | Full-Year 2025 Midpoint |
|---|---|---|---|---|
| Net Income per diluted share | $0.11 – $0.13 | $0.23 | $0.56 – $0.66 | 0.61 |
| FFO per diluted share | $0.61 – $0.63 | $0.58 | $2.45 – $2.55 | 2.50 |
| FFOA per diluted share | $0.61 – $0.63 | $0.61 | $2.45 – $2.55 | 2.50 |
| SS Revenue Growth (YoY) | N/A | 2.6% | 1.25% – 3.25% | 2.25% |
| SS Expense Growth (YoY) | N/A | 2.3% | 2.75% – 4.25% | 3.50% |
| SS NOI Growth (YoY) | N/A | 2.8% | 0.50% – 3.00% | 1.75% |
Operating Results:
In the first quarter of 2025, UDR’s total revenue increased by $8.3 million year-over-year, or 2.0 percent, to $421.9 million. This growth was primarily driven by increased revenue from Same-Store communities and recently completed developments, partially offset by revenue declines from property dispositions.
Regional Same-Store Performance (Year-Over-Year):
| Region | Revenue Growth | Expense Growth | NOI Growth | % of SS Portfolio | Physical Occupancy | YoY Change in Occupancy |
|---|---|---|---|---|---|---|
| West | 2.8% | 3.9% | 2.4% | 31.3% | 97.2% | 0.1% |
| Mid-Atlantic | 4.9% | 4.6% | 5.0% | 20.7% | 97.6% | 0.3% |
| Northeast | 4.1% | 2.7% | 4.9% | 16.9% | 97.4% | 0.1% |
| Southeast | 0.5% | (0.1)% | 0.7% | 13.5% | 97.0% | 0.1% |
| Southwest | (0.2)% | (1.1)% | 0.4% | 10.8% | 97.3% | 0.8% |
| Other Markets | 0.5% | 0.9% | 0.4% | 6.8% | 96.4% | (0.7)% |
| Total | 2.6% | 2.3% | 2.8% | 100.0% | 97.2% | 0.2% |
Regional Same-Store Performance (Sequential):
| Region | Revenue Growth | Expense Growth | NOI Growth | % of SS Portfolio | Physical Occupancy | Sequential Change in Occupancy |
|---|---|---|---|---|---|---|
| West | 0.6% | 1.4% | 0.3% | 31.3% | 97.2% | 0.3% |
| Mid-Atlantic | 1.0% | 6.1% | (1.2)% | 20.7% | 97.6% | 0.5% |
| Northeast | 0.8% | 6.8% | (2.4)% | 16.9% | 97.4% | 0.7% |
| Southeast | 0.1% | 1.2% | (0.4)% | 13.5% | 97.0% | 0.1% |
| Southwest | (0.3)% | 0.3% | (0.7)% | 10.8% | 97.3% | 0.6% |
| Other Markets | (0.4)% | 5.2% | (2.7)% | 6.8% | 96.4% | (0.1)% |
| Total | 0.5% | 3.5% | (0.9)% | 100.0% | 97.2% | 0.4% |
Transactional Activity:
UDR successfully completed the sales of two apartment communities during the quarter, generating gross proceeds of $211.5 million.
Development Activity:
The company initiated the development of a new 300-home apartment community in Riverside, CA, with an estimated total cost of $133.6 million.
Debt and Preferred Equity Program Activity:
UDR increased its investment in a Philadelphia joint venture and made a new preferred equity investment in a San Francisco MSA apartment community subsequent to the quarter’s end.
Capital Markets and Balance Sheet Activity:
As of March 31, 2025, UDR’s total indebtedness was $5.8 billion, with a weighted average interest rate of 3.36% and a weighted average years to maturity of 4.9 years. The company maintained strong liquidity with approximately $1.1 billion available through cash and undrawn credit facilities.
Executive Leadership:
UDR announced the promotion of Mike Lacy to Senior Vice President – Chief Operating Officer and the appointment of Joe Fisher to Chief Investment Officer in addition to his CFO responsibilities. The company also announced an executive search for a new CFO.
Board of Directors:
Subsequent to the quarter, UDR announced that James “Jim” D. Klingbeil will not seek re-election to the Board of Directors, and Jon A. Grove has been elected as the next Lead Independent Director.
Corporate Responsibility:
UDR was named a Top Workplace by USA Today for the second consecutive year, highlighting its commitment to its employees.
Dividend:
The Board of Directors declared a regular quarterly dividend of $0.43 per share, a 1.2 percent increase year-over-year, paid on April 30, 2025. This marked the 210th consecutive quarterly dividend paid by the company.
UDR provides detailed Supplemental Financial Information on its investor relations website at ir.udr.com, including definitions and reconciliations of non-GAAP financial measures.
