Apartment REIT UDR cuts annual FFO forecast as demand softens on higher mortgage rates

UDR

26/10/2023 23:08

Oct 26 (Reuters) - Real estate investment trust UDR
 UDR.N  cut its full-year funds from operations (FFO) forecast
on Thursday, as it expects demand to soften owing to higher
housing costs and mortgage rates.
    Higher inflation and higher interest rates have led to a
cooling demand across the housing market.
    "Recent operating trends across the industry have been
softer than typical due to all-time high levels of new supply,"
said Chief Executive Officer Tom Toomey.    
    UDR now expects full-year FFO to be in the range of $2.45 to
$2.47 per share, compared with its prior estimate of $2.48 to
$2.52.
    The Highlands Ranch Colorado-based REIT, which operates
multifamily apartment communities in the United States, reported
FFO of 61 cents per share for the quarter ending Sept. 30,
compared with 57 cents per share a year earlier.
    Total revenue for the third quarter increased by 4.8% from a
year earlier to $410.1 million. 
    

 (Reporting by Amna Karimi and Aatreyee Dasgupta in Bengaluru)
 ((Amna.Karimi@thomsonreuters.com; +91 8083261226))