NYSE:UDR
UDR, Inc.
A dominant player in the U.S. single-family rental market offering stable cash flows through high-quality apartment assets.
Key Metrics
Investment Thesis
Bull Case
The stock offers compelling value given its dominant market position and the structural demand for rental housing driven by demographic shifts and wage growth. Investors can expect consistent dividend growth supported by the company's ability to acquire assets at attractive yields when rates normalize, bolstered by a $403.7M net profit in 2025.
Bear Case
Valuation may be stretched if interest rates remain elevated for an extended period, which could hinder M&A growth and increase the cost of servicing the company's significant debt load. High operating leverage inherent in the single-family rental model means that any decline in occupancy or rent growth could disproportionately impact the $403.7M net income.
About UDR, Inc.
UDR, Inc. is a leading single-family rental operator providing affordable housing solutions to renters across North America. The company owns and manages a diverse portfolio of apartment communities in over 30 markets, leveraging a vertically integrated business model that includes acquisition, development, construction, and asset management.
Analysis
Management Discussion
Management successfully navigated a volatile interest rate environment to grow revenue from $1.52B in 2022 to $1.71B in 2025 while generating strong operating cash flow of $902.9M. Despite significant financing outflows totaling $750.4M for acquisitions and development, the company maintained a robust balance sheet with $36.9M in ending cash and returned substantial value via $567.9M in dividends.
Industry Overview
The U.S. single-family rental industry is experiencing secular growth as households increasingly prefer renting over owning due to affordability constraints and lifestyle preferences. This structural shift creates a long-term tailwind for operators like UDR that can efficiently scale supply to meet the demand for millions of new rental units.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.52B | $1.63B | $1.67B | $1.71B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $1.52B | $1.63B | $1.67B | $1.71B |
| Operating Expenses | $1.27B | $992.5M | $1.39B | $1.16B |
| Operating Income | $250.8M | $635.0M | $284.6M | $553.6M |
| G&A | $64.1M | $69.9M | $84.3M | $85.1M |
| Stock-Based Comp | $27.5M | $32.9M | $32.6M | $26.5M |
| D&A | $679.6M | $691.8M | $695.5M | $680.0M |
| Other OpEx | $1.20B | $922.6M | $1.30B | $1.07B |
| Non-Operating Income | $-157.9M | $-158.4M | $-187.8M | $-149.1M |
| Interest Expense | $155.9M | $180.9M | — | — |
| Pre-Tax Income | $92.9M | $476.6M | $96.8M | $404.6M |
| Income Tax | $349.0K | $2.1M | $879.0K | $835.0K |
| Continuing Ops | $92.6M | $474.5M | $95.9M | $403.7M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $92.6M | $474.5M | $95.9M | $403.7M |
| Minority Interest | $42.0K | $31.0K | $46.0K | $46.0K |
| Net to Common | $92.5M | $474.5M | $95.8M | $403.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $1.2M | $2.9M | $1.3M | $1.2M |
| Operating Leases | $194.1M | $190.6M | $187.0M | $187.6M |
| Total Assets | $11.04B | $11.37B | $10.90B | $10.61B |
| Total Liabilities | $6.10B | $6.42B | $6.44B | $6.46B |
| Shareholders' Equity | $4.94B | $4.95B | $4.46B | $4.15B |
| Paid-In Capital | $7.49B | $7.49B | $7.57B | $7.48B |
| AOCI | $8.3M | $4.9M | $3.6M | $1.7M |
| Total L&E | $11.04B | $11.37B | $10.90B | $10.61B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $92.6M | $474.5M | $95.9M | $403.7M |
| Non-Cash Adjustments | $750.4M | $325.6M | $753.4M | $504.8M |
| Working Capital Changes | $-22.9M | $32.6M | $27.6M | $-5.6M |
| Cash from Operations | $820.1M | $832.7M | $876.8M | $902.9M |
| Cash from Investing | $-929.5M | $-289.1M | $-276.4M | $-151.0M |
| Share Buybacks | $49.0M | $25.0M | — | $117.8M |
| Dividends Paid | $483.6M | $539.9M | $558.5M | $567.9M |
| Cash from Financing | $111.2M | $-538.9M | $-599.9M | $-750.4M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $1.8M | $4.7M | $561.0K | $1.5M |
| Beginning Cash | $28.4M | $30.2M | $34.9M | $35.4M |
| Ending Cash | $30.2M | $34.9M | $35.4M | $36.9M |
Frequently Asked Questions
How does UDR, Inc. make money?
The company operates primarily through its Single-Family Rental segment, which generates revenue from long-term leases to individual households rather than institutional landlords. Revenue streams are derived from rental income collected directly from tenants across a portfolio of over 100,000 units, with operating expenses covering property management, maintenance, and utilities.
What are the main risks for UDR?
Interest rate sensitivity remains a primary concern as rising borrowing costs can impact the net present value of future acquisitions and increase financing expenses for the $6.46B in liabilities. Regulatory pressures regarding rent control laws and eviction moratoriums in key markets could compress rental rates and occupancy levels, directly affecting the $1.71B revenue base.
What is UDR's competitive advantage?
UDR benefits from a highly scalable proprietary technology platform that automates leasing, operations, and resident services, significantly lowering cost-to-serve per unit. The company's extensive land bank and development expertise allow it to create new supply where needed, insulating it from market saturation risks faced by pure-play acquisition firms.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.