UDR Inc. UDR has revealed that it has completed the disposition of 8 communities and reaped total gross proceeds of $284 million. This move helped the company exit the Norfolk, VA market.
Specifically, the transaction included the sale of 1,755 homes located in Norfolk, VA; Huntington Beach, CA; Oxnard, CA; Tampa, FL; and Baltimore, MD.
Further, UDR has agreed to sell a 168-home community in Salisbury, MD for $14.8 million. The company expects this deal to close in mid December. This transaction would allow it to exit part of the Mid-Atlantic market.
As the company revealed in October, the disposed properties were comparatively old and had a weighted average year of building of 1976. The revenue per occupied home on an average at these properties was $1,372.
UDR has been continuously enhancing the overall quality of its portfolio by acquiring, developing and redeveloping properties in core operating markets and divesting its non-core assets. In fact, for the full year, the company will have sold $809 million in gross proceeds, leading to UDR’s share of the sales price of $489 million.
On the other hand, in October, this residential real estate investment trust (REIT) announced of the acquisition of 6 communities in Washington, DC for $901 million from Home Properties LP. The acquired properties are located close to transportation hubs, restaurants and retail outlets. They are either recently developed/redeveloped or have good prospects for redevelopment. We believe that the company’s extensive portfolio repositioning activities will boost its prospects, going forward.
UDR currently carries a Zacks Rank #2 (Buy).
Other Stocks in the Sector
Investors interested in the residential REIT industry may consider other stocks like Armada Hoffler Properties, Inc. AHH, Essex Property Trust Inc. ESS and Equity LifeStyle Properties, Inc. ELS. All these stocks carry the same rank as UDR.
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