FX.co ★ UDR Stock Down On Weak FFO, Net Loss In Q4; Guides Q1, FY25 Outlook; Lifts Dividend

UDR Inc., a Real Estate Investment Trust, reported a decline in its Funds from Operations (FFO) for the fourth quarter, despite experiencing an increase in revenue. The company recorded a net loss for the quarter, a shift from the profit it reported in the same period the previous year.

Additionally, UDR has provided its financial outlook for the first quarter and full year of 2025, announcing an increase in its dividend for the upcoming year.

On the New York Stock Exchange pre-market, UDR shares are showing a decrease of 7.6%, priced at $39.01. For the quarter, FFO dropped to $172.7 million, or $0.48 per share, down from $218.9 million, or $0.61 per share, in the corresponding quarter of the previous year.

However, FFO as Adjusted saw a slight increase during the three-month period, rising to $225.3 million from $223.8 million in the prior year. Per share, FFO as Adjusted remained unchanged at $0.63.

Adjusted FFO attributable, after deducting recurring capital expenditures, stood at $193.7 million, mirroring last year's figure of $193.6 million. The per share adjusted FFO was stable at $0.54. UDR reported a net loss of $6.2 million, or $0.02 per share, compared to a profit of $31.8 million, or $0.10 per share, during the same timeframe the previous year.

The company's total revenue was $422.7 million, reflecting a 2.3% increase from the $413.8 million reported in the prior year’s quarter, driven by a 2.5% growth in same-store revenue and completed developments.

In terms of future guidance, UDR anticipates net income per share for the first quarter of 2025 to range from $0.24 to $0.26. FFO and FFOA per share are projected to be between $0.60 to $0.62.

For the full year of 2025, the company forecasts net income per share between $0.56 to $0.66, with FFO and FFOA per share expected to fall within the $2.45 to $2.55 bracket.

The Board of Directors of UDR has declared a dividend of $1.72 per share for the fiscal year 2025, reflecting a 1.2% increase over last year's annual dividend.