UDR raises annual same-store revenue forecast on East Coast strength
31/07/2024 24:05
July 30 (Reuters) - UDR UDR.N raised the lower end of
its annual same-store revenue forecast on Tuesday, banking on
sustained demand and steady supply to aid rent growth in East
Coast markets such as Boston, Washington, D.C., and Baltimore.
The real estate investment trust (REIT) now expects
full-year same-store revenue to rise between 1% and 3%, compared
with its prior estimate of no growth to 3%.
Overall rents for the Highlands Ranch, Colorado-based REIT
in the U.S. are strong, but an excess supply of apartments in
the Sunbelt region is lowering average rates.
The East Coast region's supply has remained stable, letting
UDR slightly raise asking prices.
UDR's effective renewal rates growth was marginally higher
at 3.9% in the second quarter, compared with 3.8% in the
previous quarter.
The new lease rates, offered to tenants moving in during the
quarter, grew 0.5% during the period.
UDR posted adjusted funds from operations of 55 cents per
share in the quarter ended June, compared with analysts'
estimates of 62 cents, according to LSEG data.
(Reporting by Ananta Agarwal in Bengaluru; Additional reporting
by Nathan Gomes; Editing by Mohammed Safi Shamsi)
((Ananta.Agarwal@thomsonreuters.com))