Columbus Square | New York, NY
INVESTOR
PRESENTATION
SEPTEMBER 2023
TABLE OF CONTENTS
3 Recent Updates
5 UDR at a Glance
7 UDR Value Proposition
8 Innovation and Competitive Advantages
10 Accretive Capital Allocation and Value Creation
13 Market and Resident Attributes
15 Strong, Liquid, Flexible Balance Sheet
16 ESG and Sustainability Leadership
18 The Case for Apartment REITs
21 Chelsea | New York, NY
2
RECENT UPDATES
Apartment fundamentals remain healthy and UDR's innovation set us up well for continued strong relative
relative competitive advantages in operations, capital allocation, and same-store and earnings growth.
3Q 2023 To-Date(1)
Strategy: Maximizing revenue with a current bias towards building occupancy.
Same-StoreRevenue Growth: ~5% YOY, supported by ~2% sequential SSREV growth.
Occupancy: Currently 96.8%, up from 96.5% in June.
Blended Lease Rate Growth: ~2% QTD, supporting occupancy acceleration.
Bad Debt: In-the-month collections continue to improve sequentially.
Resident Turnover: Lower on a year-over-year basis for 4th consecutive month in August.
FFOA/share: Trending to $0.63, consistent with guidance midpoint.
Share Repurchases: ~$25.0 million through August at a weighted average price of $40.11 per share.
FY 2023 and Long-Term
Leading Results and Outlook(2) | Sector-Best |
FY23 Same-StoreGrowth Guidance: 2nd highest REV (6.75%) and NOI | Innovation: 50bps avg. annual incremental SSNOI growth from initiatives |
(7.50%) growth; 3rd lowest EXP growth (4.75%) among peer group |
2Q23 Results: 3rd highest YOY SSREV, SSNOI, and FFOA/sh growth
Operations: ~300bps controllable operating margin advantage vs. peer avg.
Long-Term: Above peer avg. FFOA/sh growth in 7 of last 10 years | Liquidity Profile: 5% of debt (vs. 23% peer avg.) maturing over next 3 years(3) |
- As of August 31, 2023.
(2) | Metrics as of June 30, 2023; 2023 expectations based on guidance ranges for UDR and peers. Peer group includes AIRC, AVB, CPT, EQR, ESS, and MAA. | 3 |
(3) | Data as of June 30, 2023. Amount for UDR excludes commercial paper balance, working capital facility balance, and principal amortization. |
Source: Company and peer documents.
RECENT UPDATES - RESIDENT AND MARKET TRENDS(1)
Demand indicators continue to show strength as consumer financial health remains resilient and relative affordability continues to favor multifamily renting.
Steady Rent-to-Income Ratio ("R/I") | Relative Affordability | ||||||||||||||||||||||||||||||||
Growing UDR household income supports strong rent growth | ~55% less expensive to rent than | ||||||||||||||||||||||||||||||||
while keeping median resident R/I ratio in the low/mid-20% range | own across UDR markets | ||||||||||||||||||||||||||||||||
R/I Ratio (lhs) | Long-Term Avg. R/I Ratio (lhs) | TTM Avg. Income, $000s (rhs) | -20% | ||||||||||||||||||||||||||||||
30% | $165 | ||||||||||||||||||||||||||||||||
-30% | |||||||||||||||||||||||||||||||||
25% increase in average UDR | |||||||||||||||||||||||||||||||||
25% | household income vs. pre-COVID | $155 | -40% | ||||||||||||||||||||||||||||||
$145 | |||||||||||||||||||||||||||||||||
-50% | |||||||||||||||||||||||||||||||||
20% | Only 6% of 2Q 2023 moveouts | ||||||||||||||||||||||||||||||||
$135 | -60% | were to buy a single-family home, | |||||||||||||||||||||||||||||||
~50% lower than average. | |||||||||||||||||||||||||||||||||
15% | $125 | -70% | |||||||||||||||||||||||||||||||
Jun-17Jun-18Jun-19Jun-20Jun-21Jun-22 | Jun-23 | Jun-03 | Jun-07 | Jun-11 | Jun-15 | Jun-19 | Jun-23 | ||||||||||||||||||||||||||
Coastal Outperformance | Improving Occupancy(2) | ||||||||||||||||||||||||||||||||
Market rent growth and loss-to-lease(2) support | Occupancy has increased from 96.6% on average | ||||||||||||||||||||||||||||||||
continued East Coast leadership | in 2Q 2023 to our highest levels of the year | ||||||||||||||||||||||||||||||||
4% | YTD Market Rent Growth | Loss-to-Lease | 96.9% | ||||||||||||||||||||||||||||||
2% | |||||||||||||||||||||||||||||||||
96.6% | |||||||||||||||||||||||||||||||||
0% | |||||||||||||||||||||||||||||||||
-2% | 96.3% | ||||||||||||||||||||||||||||||||
Total | East Coast | West Coast | Sunbelt | Aug-22 | Oct-22 | Dec-22Feb-23Apr-23 | Jun-23 | Aug-23 | |||||||||||||||||||||||||
(1) Metrics as of June 30, 2023, unless otherwise noted. | 4 | ||||||||||||||||||||||||||||||||
(2) Market rent growth, loss-to-lease, and occupancy statistics are as of August 31, 2023. |
Source: Company documents.
UDR AT A GLANCE(1)(2)
UDR is a full-cycleinvestment that consistently generates strong total shareholder return ("TSR") through innovation, best-in- class operations, and disciplined capital allocation.
51 Year | S&P 500 | ~60,000 | 4.2% | Full-Cycle | Continuous |
Multifamily | Apartment 21 Markets $20.0B EV | Dividend | |||
History | Investment | Innovation | |||
REIT | Homes | Yield | |||
Outsized Same-Store NOI Growth(3)
5-Year | ||||||||||||
3.8% | 4.1% | |||||||||||
10-Year | ||||||||||||
4.0% | 4.6% | |||||||||||
15-Year | ||||||||||||
3.5% | 4.0% | |||||||||||
20-Year | ||||||||||||
3.6% | 4.1% | |||||||||||
2.0% | 3.0% | 4.0% | ||||||||||
Peer Median CAGR | UDR CAGR | |||||||||||
Robust Relative TSR
5-Year | |||||||||
4.6% | 6.2% | ||||||||
10-Year | |||||||||
6.4% | 9.0% | ||||||||
15-Year | |||||||||
6.8% | 9.1% | ||||||||
20-Year | |||||||||
8.6% | 9.6% | ||||||||
5.0% | 2.0% | 4.0% | 6.0% | 8.0% | 10.0% | |
NAREIT Equity Index CAGR | UDR CAGR | |||||
Sustainable Dividends That Grow Over Time
$2.00
$1.60
$1.20
$0.80
$0.40
203 Consecutive Dividends Paid
$1.68
6.7% CAGR since 2010
$0.72
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
- As of June 30, 2023, except otherwise noted.
(2) | Enterprise Value and Dividend Yield as of August 31, 2023. Dividend Yield is based on UDR's 2023 annualized dividend of $1.68 per share. | 5 |
(3) | Peer group includes AIRC (AIV prior to 2021), AVB, CPT, EQR, ESS and MAA; 2Q 2020 through 2Q 2023 UDR same-store NOI results have been adjusted where appropriate to reflect concessions on a straightline basis for peer comparability. |
Source: Company and peer documents, Nareit.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
UDR Inc. published this content on 11 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 September 2023 12:08:07 UTC.