UDR, Inc (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.
Funds 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.
Total revenues during the quarter were $164.5 million compared to $145.1 million in the prior-year quarter. Total revenues in the reported quarter were below the Zacks Consensus Estimate of $170 million.
Same-store occupancy remained relatively high at 95.6% during the quarter. Same-store revenues and net operating income increased 2.6% and 3.0% respectively, during the quarter compared to year-ago quarter. Same store expenses increased 2.0% during the quarter.
During the quarter, the company completed the acquisition of 10 Hanover Square, a 493-home apartment community in the thriving financial district of Manhattan in New York City for $260.8 million. Also in the first quarter 2011, the company completed a $500 million assets exchange with AvalonBay Communities, Inc. (AVB).
UDR exchanged six communities located in Southern California for two communities located in the Boston metro area and one community located in San Francisco. As part of a long term strategy, the company completed a number of acquisition transactions in markets, which are characterized by low home affordability and superior growth prospects.
As at March 31, 2011, UDR had a liquidity of $700 million through a combination of cash and available capacity under its credit facility.
At the end of the first quarter of 2011, the company had a total debt of $3.5 billion and a fixed charge coverage ratio of 2.4x. UDR ended the quarter with 76% fixed-rate debt at a total blended interest rate of 4.2% and a weighted average debt maturity of 5.4 years.
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, Equity Residential (EQR) currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
AVALONBAY CMMTY (AVB): Free Stock Analysis Report
EQUITY RESIDENT (EQR): Free Stock Analysis Report
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