UDR, Inc (UDR) recently made a public offering of 15 million shares. In a bid to cover over-allotments, the company will provide a 30-day option to the underwriters for purchasing an additional 2.3 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 will 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 with $46.8 million or 28 cents in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of real estate investment trusts (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 from the range of $1.20–$1.25 to $1.25–$1.30.
UDR Inc. is an apartment 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 for its residents.
The company has a geographic diversification that increases investment opportunity and decreases the risk associated with cyclical local real estate markets and economies, thereby increasing the stability and predictability of the earnings.
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.
APARTMENT INVT (AIV): Free Stock Analysis Report
APARTMENT INVT (AIV): Free Stock Analysis Report
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