UDR, Inc. UDR, the Highlands Ranch, CO-based residential real estate investment trust (“REIT”) announced a rating upgrade by the Standard and Poor (“S&P”). The leading rating agency raised the senior unsecured rating of the REIT to BBB+ from BBB. This rating uplift was possibly driven by UDR’s strong credit position and robust balance sheet.
UDR is a leading multifamily apartment REIT, which owns, operates, acquires, develops and renovates apartment communities in high barrier-to-entry markets in the U.S. As of Mar 31, 2015, UDR owned or had ownership interests in 48,086 apartment homes including 1,434 homes under development. S&P raised the company’s rating on the basis of its enhanced credit metrics, as well as improvement in its competitive position, backed by a diversified portfolio and better asset quality.
UDR’s properties are located in affluent regions of the U.S., ensuring steady rental income. The company’s improved product-mix and strategic submarket locations also helped it achieve growth in combined new and renewal leases.
Furthermore, UDR has been diligently undertaking initiatives to enhance the overall quality of its portfolio by acquiring, developing and redeveloping properties in core markets as well as divesting its non-core assets. Additionally, the company remains focused on strategic priorities such as disciplined capital allocation, a strong balance sheet and improved cash flow to drive dividend growth and operational efficiency.
Currently, UDR carries a Zacks Rank #3 (Hold).
Investors interested in the residential REIT industry may consider stocks like Armada Hoffler Properties, Inc. AHH, Equity LifeStyle Properties, Inc. ELS and Equity Residential EQR. While Armada Hoffler Properties sports a Zacks Rank #1 (Strong Buy), both Equity LifeStyle Properties and Equity Residential carry a Zacks Rank #2 (Buy).
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