UDR, Inc (UDR) recently made a public offering of 18 million shares, worth approximately $431.5 million at an average price of $25.00.
In a bid to cover over-allotments, the company will provide a 30-day option to the underwriters for purchasing an additional 2.7 million shares.
UDR intends to utilize the proceeds generated from the transaction for acquiring financial assets and for other general corporate purposes.
This public offering will enable the company to attain financial flexibility and seize investment opportunities and acquisitions, which go a long way in enhancing top-line growth. As of March 31, 2011, UDR’s cash position stood at $11.6 million.
UDR reported first quarter 2011 FFO (fund from operations) of $56.8 million or 30 cents per share, compared to $46.8 million or 28 cents in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. The reported FFO per share was in line with the Zacks Consensus Estimate.
The company recently increased its 2011 FFO guidance to between $1.25 and $1.30 from $1.20 to $1.25 .
UDR Inc. is an apartment real estate investment trust (REIT) that owns, operates, acquires, develops and renovates middle-market apartment communities. UDR is committed to providing premium quality homes and excellent service and value to its residents.
UDR currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Apartment Investment & Management Co. (AIV) currently retains a Zacks #3 Rank.
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