UDR stock rating upgraded by Evercore ISI to Outperform on growth outlook

Investing.com - Evercore ISI has upgraded UDR, Inc. (NYSE:UDR) from In Line to Outperform and raised its price target to $46.00 from $45.00 on Monday. According to InvestingPro data, UDR currently trades at $40.80 with a market capitalization of $14.4 billion and offers an attractive 4.22% dividend yield. The stock appears overvalued based on InvestingPro’s Fair Value analysis.

The research firm maintained its quarterly funds from operations (FFO) estimate of $0.62 per share, which aligns with both UDR’s guidance midpoint and consensus expectations. Evercore’s full-year 2025 FFO estimate stands at $2.51, matching street expectations and slightly exceeding the midpoint of UDR’s guidance range. With the company’s next earnings report due on July 23, InvestingPro subscribers can access detailed financial health metrics and 12+ additional ProTips to make informed investment decisions.

Evercore’s same-store revenue growth projection for the quarter sits at 2.6%, approximately 10 basis points below consensus estimates of 2.7%. However, the firm’s net operating income (NOI) growth forecast of 2.6% exceeds consensus by 60 basis points.

For the full year, Evercore projects same-store revenue growth of 2.8%, slightly below consensus estimates. The firm’s annual NOI growth forecast of 2.8% surpasses street expectations by 30 basis points.

This NOI growth projection positions UDR near the top end of the company’s own guidance range of 0.5% to 3.0% for the year, supporting Evercore’s more optimistic outlook on the residential REIT.

In other recent news, UDR Inc. reported its financial results for the first quarter of 2025, emphasizing stability with a Funds From Operations (FFO) as adjusted per share of $0.61, aligning with its guidance midpoint. The company maintained a high occupancy rate of 97.2% and achieved a same-store revenue growth of 2.6%. UDR also declared a quarterly dividend of $0.43 per share on its common stock, marking its 211th consecutive dividend payment. Additionally, the company announced a quarterly dividend of $0.4656 per share on its Series E preferred stock. In leadership changes, UDR appointed Dave Bragg as the new Chief Financial Officer, effective July 24, 2025. Bragg brings extensive experience in real estate finance and investment strategy. Furthermore, UDR reaffirmed its full-year 2025 guidance, projecting continued growth and strategic focus. The company also completed the sale of two apartment communities in the New York Metro Area for $211.5 million and commenced development of a new apartment community in Riverside, California.

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