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2019 Has Been Active and Productive for UDR

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UDR Inc. has a robust third quarter with same store NOI growth of 3.9% and FFO as adjusted per share growth of 6%. According to CEO Tom Toomey, the numbers demonstrate strong execution across all aspects of the REIT’s business. “2019 has been a very active and productive year for UDR.

“First, we accretively grew our business through $1.8 billion and completed our announced acquisitions that have significant operational and investment upsides in markets targeted for expansion. These were funded with premium priced equity and low-cost debt,” he said.

Second, according to Toomey, the REIT continued to make great progress “implementing our next generation operation platform that has and will continue to drive controllable margin expansion by fundamentally changing how we interact with our current and prospective residents while also creating efficiencies throughout our cost structure.”

The company also simplified its business by winding down the KFH JV and revealed an agreement to have our relationship with MetLife via an accretive asset swap.

The REIT also de-risked its enterprise by “proactively taking advantage of low interest rate environment to repay high cost debt, extend our consolidated pro forma durations to over eight years, and reduce aggregate maturities to just 5% of our total debt over the next three years.”

In short, he said on the firm’s Q3 earnings call that the team has done a great job in 2019 of executing on all aspects of its value creation capabilities, which will set up 2020 for continued strong NOI and cash flow growth, all of which fits into our strategic objective of being a full cycle investment.

“Last, we received good news on the ESG front with our public GRESB disclosure score improving to an A. This compares favorably versus our comp set and further exhibits our commitment to consistently improve our ESG framework.”