UDR, Inc. (UDR), headquartered in Highlands Ranch, Colorado, is a top multifamily REIT with a strong track record of delivering reliable, high returns through effective management, acquisitions, sales, development, and redevelopment of desirable real estate communities in key U.S. markets. With a market cap of $14.7 billion, UDR focuses on owning, operating, and developing apartment communities.
Shares of this leading multifamily REIT have merely underperformed the broader market considerably over the past year. UDR has gained 35.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 36.8%. In 2024, UDR’s stock rose 16.2%, compared to the SPX’s 25.7% rise on a YTD basis.
Narrowing the focus, UDR has slightly outpaced the Residential REIT ETF (HAUS). The exchange-traded fund has gained about 35.3% over the past year and 19.3% gains on a YTD basis.
On Oct. 30, UDR announced its third-quarter results and raised its full-year 20024 guidance. Despite meeting Wall Street’s expectations, its shares dropped more than 5% in the following two trading sessions.
For the current fiscal year, ending in December, analysts expect UDR’s funds from operations to remain flat at $2.47 on a diluted basis. The company’s surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 23 analysts covering UDR stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings and 11 “Holds,” and one “Strong Sell.”
This configuration is more bullish than two months ago, with 10 analysts suggesting a “Strong Buy.”
On Nov. 5, RBC Capital's Brad Heffern maintained a “Hold” rating on UDR with a price target of $45.
The mean price target of $46.62 represents a 4.8% premium to UDR’s current price levels. The Street-high price target of $52 suggests an upside potential of 16.9%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
