UDR, Inc. (UDR) Misses Q3 EPS by 1c, Beats on Revenues; Lowers FY17 EPS Outlook, Boosts FY17 Same Store Growth Guidance

UDR, Inc. (NYSE: UDR) reported Q3 EPS of $0.06, $0.01 worse than the analyst estimate of $0.07. Revenue for the quarter came in at $251.09 million versus the consensus estimate of $247.64 million.

Third Quarter 2017 Highlights:

• Net income per share was $0.06, Funds from Operations (“FFO”) per share was $0.46, FFO as Adjusted (“FFOA”) per share was $0.47, and Adjusted Funds from Operations (“AFFO”) per share was $0.43.
• Net income attributable to common stockholders was $15.3 million as compared to $26.0 million in the prior year period. The decrease was primarily due to lower gains on the sale of unconsolidated real estate.
• Year-over-year same-store (“SS”) revenue, expense and net operating income (“NOI”) growth for the quarter were 3.3 percent, 3.9 percent and 3.0 percent, respectively.
• Developer Capital Program transactions completed during and subsequent to quarter end, included:
  • During the quarter, invested $12.9 million in 1200 Broadway, a 313-home development located in Nashville, TN.
  • During the quarter, sold 8th & Republican, a 211-home community located in Seattle for $101.3 million.
  • Subsequent to quarter end, purchased Steele Creek, a 218-home community located in Denver, CO for $141.5 million. The Company’s upside participation totaled $14.9 million as part of the transaction.
  • Subsequent to quarter end, entered into a contract for the sale of Katella Grand I, a 399-home community located in Anaheim, CA for $148.0 million.
• Incurred $2.2 million in casualty-related charges, primarily due to hurricane damages in the Company’s Florida markets, all of which was added back to FFOA per share.
• Revised full-year 2017 earnings and same-store growth guidance:
  • Reduced Net income per share guidance by $0.035 at the midpoint, to $0.29 to $0.31.
  • Reduced FFO per share guidance range by $0.01 at the midpoint, to $1.83 to $1.85.
  • Increased FFOA and AFFO per share guidance ranges by $0.01 at the midpoints, to $1.86 to $1.88 and $1.71 to $1.73, respectively.
  • Increased SS revenue growth guidance range to 3.50 to 3.90 percent (+7.5 bps at the midpoint).
  • Increased SS expense growth guidance range to 3.10 to 3.60 percent (+35.0 bps at the midpoint).
  • Increased SS NOI growth guidance range to 3.60 to 4.20 percent (+2.5 bps at the midpoint).

GUIDANCE:

UDR, Inc. sees FY2017 EPS of $0.29-$0.31, versus the consensus of $0.25.

For earnings history and earnings-related data on UDR, Inc. (UDR) click here.

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