At a glance
- The Highlands Ranch, Colorado-based REIT lifted same-store net operating income guidance by 37.5 basis points at the midpoint and cut expense guidance by 35 basis points to 2.9%, according to its earnings release.
- For allocators weighing apartment exposure, San Francisco revenue rose 9% year over year while Austin fell 3.4%, a gap of about 12 points in the same operator's portfolio.
- Same-store revenue rose 1.8%, driven by 2% blended lease rate growth, UDR chief operating officer Mike Lacy said on the Nov. 3 call.
UDR reported third-quarter adjusted funds from operations of $0.65 a share, beating analysts' estimates, and raised full-year guidance almost two weeks after announcing a $2 billion joint venture with Apollo.
The Highlands Ranch, Colorado-based REIT lifted same-store net operating income guidance by 37.5 basis points at the midpoint and cut expense guidance by 35 basis points to 2.9%, according to its earnings release. Adjusted FFO guidance rose $0.02 at the midpoint to $2.55. UDR released preliminary third-quarter figures with the Apollo announcement.
For allocators weighing apartment exposure, San Francisco revenue rose 9% year over year while Austin fell 3.4%, a gap of about 12 points in the same operator's portfolio. UDR said it continues to expand joint venture partnerships, sell properties and buy back shares, with the Apollo venture the latest addition.
Same-store revenue rose 1.8%, driven by 2% blended lease rate growth, UDR chief operating officer Mike Lacy said on the Nov. 3 call. Delinquency ran at about 60 basis points, 50 basis points lower than a year earlier, and resident retention of 52% was a third-quarter record, up 370 basis points year over year. "Fewer move-outs supported blended lease growth and occupancy, and kept same-store expense growth in check at only 2.2%," Lacy said.
San Francisco posted blended lease rate growth of about 13% and occupancy above 97%, and Lacy said rent-to-income ratios in the low-20% range leave room to push rents. New York City revenue grew 5.1%, followed by Philadelphia at 3.5%, Baltimore at 3.1% and Orange County, California, at 3%. "New York and Philadelphia continue to lead the East Coast, with weighted average same-store revenue growth of approximately 5%, driven by blended lease rate growth of 4.5% and occupancy above 97%," Lacy said.
Austin revenue fell 3.4% year over year, though Lacy pointed to improving momentum there. "Dallas remained our strongest Sun Belt market, exhibiting positive revenue growth during the quarter," Lacy said. He described the quarter as showing better late-quarter leasing trends compared with recent years.
San Francisco revenue rose 9% while Austin fell 3.4%
Year-over-year same-store revenue growth by market, third quarter
- Above zero
- Below zero
- San Francisco+9%
- New York City+5.1%
- Philadelphia+3.5%
- Baltimore+3.1%
- Orange County+3%
- Austin−3.4%
Show as table
| Label | Value (%) |
|---|---|
| San Francisco | +9% |
| New York City | +5.1% |
| Philadelphia | +3.5% |
| Baltimore | +3.1% |
| Orange County | +3% |
| Austin | −3.4% |
Fewer move-outs supported blended lease growth and occupancy, and kept same-store expense growth in check at only 2.2%.Mike Lacy, chief operating officer of UDR
Reported by the Sectors desk from Multifamily Dive. Published . Corrections