UDR raises full-year FFO forecast on solid demand for rentals
30/04/2024 22:29
April 30 (Reuters) - Real estate investment trust UDR
UDR.N , which leases out apartments for rent in the U.S.,
raised its forecast for full-year adjusted funds from operations
on Tuesday as stable supply in East Coast markets led to healthy
rent growth.
The Colorado-based REIT expects full-year 2024 adjusted FFO,
a key measure of performance, to be in the per share range of
$2.12 to $2.24, compared to its prior per share forecast of
$2.10 to $2.22.
Rental supply in the U.S. remains elevated. However,
compared to the Sunbelt region where supply is currently
outstripping demand, the East Coast has been relatively stable,
allowing REITs to modestly increase asking prices there.
The rental market has also benefited from continued wage
growth and relatively higher affordability compared to monthly
mortgage home ownership payments in the current interest-rate
environment.
"We have started the year with improving leasing
conditions, largely due to employment growth that has exceeded
expectations and led to near-record high absorption," said CEO
Tom Toomey.
UDR operates multifamily apartment communities in the United
States and has a portfolio of more than 50,000 apartment units
in 21 markets.
It posted first-quarter funds from operation of 60 cents per
share, up 2% from last year but slightly below analysts'
estimate of 61 cents.
First-quarter revenue grew 3.5%, to $413.63 million.
Shares of the company were relatively flat in extended
trading.
(Reporting by Ananta Agarwal and Rupali Chaudhary in Bengaluru;
Editing by Pooja Desai)
((Ananta.Agarwal@thomsonreuters.com))