Investment Thesis
UDR demonstrates solid operational fundamentals with strong profitability margins (32.3% operating, 22.1% net) and exceptional free cash flow generation (52.5% FCF margin). However, the exceptional revenue growth of 14,972% appears anomalous and requires scrutiny, while elevated leverage at 1.77x debt-to-equity and modest interest coverage of 2.8x present financial stability concerns despite strong cash generation.
UDR Strengths
- Exceptional free cash flow generation at $899.5M with 52.5% FCF margin demonstrates strong operational cash conversion
- Solid profitability with 32.3% operating margin and 22.1% net margin indicating efficient property management and operations
- Strong operating cash flow of $902.9M provides capacity for debt service and capital allocation
UDR Risks
- Highly elevated leverage at 1.77x debt-to-equity with $5.8B long-term debt creates vulnerability to rate increases and refinancing risk
- Concerning interest coverage ratio of 2.8x provides limited buffer for operational stress or higher financing costs
- Anomalous 14,972% revenue growth warrants investigation into accounting changes, acquisitions, or data quality issues that obscure true operational trends
Key Metrics to Watch
- Interest coverage ratio trend - critical given 2.8x current level
- Debt-to-equity trajectory and refinancing activities - monitor leverage management
- Operating cash flow stability and same-store NOI growth - verify quality of reported revenue growth
UDR Financial Metrics
UDR Profitability Ratios
UDR Balance Sheet & Liquidity
UDR 5-Year Financial Trend
5-Year Trend Summary: UDR, Inc.'s revenue has declined by 19% over the 5-year period, indicating business contraction. The most recent EPS of $1.34 reflects profitable operations.
UDR Growth Metrics (YoY)
UDR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.1M | $22.6M | $0.06 |
| Q2 2025 | $2.0M | $28.9M | $0.08 |
| Q1 2025 | $2.0M | $43.1M | $0.13 |
| Q3 2024 | $1.8M | $22.6M | $0.06 |
| Q2 2024 | $1.5M | $28.9M | $0.08 |
| Q1 2024 | $1.2M | $31.0M | $0.09 |
| Q3 2023 | $1.3M | $23.6M | $0.07 |
| Q2 2023 | $1.4M | $5.1M | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
UDR Capital Allocation
UDR SEC Filings
Access official SEC EDGAR filings for UDR, Inc. (CIK: 0000074208)