UDR, Inc. Q1 FY2025 earnings call

• Innovation: Leaders in idea generation and execution; value-add initiatives growing in high single-digit range, adding 50+ basis points to same-store NOI growth annually.
• Customer Experience: Orchestrating enhanced living experience through 1 million+ daily touch points; recognized as a Top Workplace; equipping associates with data and responsibilities for engagement and growth.
• Capital Deployment: Executing on development, debt, preferred equity deployment, and joint venture acquisitions; supported by investment-grade balance sheet with substantial liquidity.
• Industry Fundamentals: Strong demand, chronic undersupply of housing, slowing new supply pace, renting is more affordable than owning a single-family home.

East Coast: Approximately 40% of NOI. First quarter weighted average occupancy 97.5%, blended lease rate growth 2.5%, year-over-year same-store revenue growth ~4.5%. West Coast: Approximately 35% of NOI. First quarter weighted average occupancy 97.2%, blended lease rate growth nearly 3%, year-over-year same-store revenue growth nearly 3%. Sunbelt: Approximately 25% of NOI. First quarter weighted average occupancy 97.1%, blended lease rate growth negative 2.5%, year-over-year same-store revenue growth slightly positive.

• Reaffirmed full-year 2025 guidance, will reassess during peak leasing season.
• Second quarter FFOA per share guidance range $0.61 to $0.63, midpoint $0.62.
• Same-store results trending above midpoint of guidance expectations, but will provide update after additional demand visibility.

• Potential volatility in macroeconomic environment affecting apartment home pricing.
• Uncertainty related to demand trends and supply dynamics.

Q: Talk about confidence in rent trends picking up in second half.

A: Joe Fisher discussed macro tailwinds like supply decline, good pricing power, relative affordability, and demand factors.

Q: Impact of bulk Wi-Fi on renewal rents.

A: Mike Lacy said Wi-Fi rollout not impacting rents, sees good pricing power and acceleration in blends.

Q: Thoughts on regions' resilience in downturn.

A: Joe Fisher said depends on demand destruction driver, diversified portfolio helps, with traditionally less volatile markets like D.C., Boston, etc.