UDR Investor Presentation
RECENT UPDATES
Apartment fundamentals remain healthy and UDR's relative competitive advantages in operations, capital allocation, and
innovation set us up well for continued strong same-store and earnings growth. Market rent growth has continued to
accelerate sequentially every month through May, supporting mid-3% blended lease rate growth 2Q to-date (1).
Leading Results and Outlook (2)
FY23 Guidance: 2nd highest FY FFOA/sh, SSREV, and SSNOI growth;
2nd lowest FY SSEXP growth
1Q23 Results: SSREV, SSEXP, SSNOI growth better than peer avg.
Long-Term: Above peer avg. FFOA/sh growth in 8 of last 11 years
Sector-Best
Innovation: 50bps avg. annual incremental SSNOI growth from initiatives
Operations: ~300bps controllable operating margin advantage vs. peer avg.
Liquidity Profile: 5% of debt (vs. 24% peer avg.) maturing over next 3 years (3)
Components of 2023 SSREV Growth (4)
SSREV growth has consistently
8%
outperformed blended lease rate
growth due to implementation of
6%
other income initiatives
4%
~2% average blended rate
growth needed from May-Dec
to achieve 2.5% midpoint
2%
High: 7.75%
Mid: 6.75%
Low: 5.75%
0%
Earn-In
(Embedded Growth)
Blended Lease
Rate Growth
Innovation and
Other Income
2023 SSREV
Growth
Metrics as of March 31, 2023; 2023 expectations based on guidance ranges for UDR and peers. Peer group includes AIRC, AVB, CPT, EQR, ESS, and MAA.
Data as of March 31, 2023. Amount for UDR excludes commercial paper balance, working capital facility balance, and principal amortization.
(1)
As of May 11, 2023.
(2)
(3)
(4)
Additional SSREV growth variables include occupancy and bad debt which, collectively, are negligible contributors to our guidance expectations.
Source: Company and peer documents.
FY 2023 SSEXP Growth Considerations
Guidance: 4.0% to 5.5%
~ Y/Y growth expected to be highest in 2Q; lower in 2H due to:
(1) Implementation of initiatives, including:
Increase number of unstaffed communities
Enhance mobile maintenance technology
Improve unit turnover analytics
Targeted capital expenditure projects
One-click move-in process
(2) Lower eviction-related expenses
(3) Easier prior year compares
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