UDR Hits Q1 Stride with Solid Revenue Growth and Strong Operational Momentum
UDR, Inc., a leading multifamily apartment community operator, has kicked off 2025 on a high note, reporting impressive revenue growth and operational momentum in its first quarter earnings call. The company's Chairman and CEO, Tom Toomey, welcomed investors to the conference call, where he highlighted UDR's commitment to three key drivers of growth: innovation, associate engagement, and capital deployment.
According to Toomey, UDR's same-store revenue, expense, and NOI growth exceeded initial expectations due to a healthy fundamental backdrop combined with operating strategies that create value. The company has also reaffirmed its full-year 2025 guidance, despite the uncertain macroeconomic and geopolitical environment.
"We feel good about 2025 thus far, but we have only completed the first 4 months of the year," Toomey said. "Accordingly, and as customary for UDR at this time of year, we have reaffirmed our full-year 2025 guidance and will reassess as we progress through peak leasing season."
One of the key drivers of UDR's growth is innovation, which has consistently added high single-digit NOI growth to its same-store revenue. The company's value-add initiatives have been particularly successful, with annual NOI growth of over 50 basis points.
Mike Lacy, Chief Operating Officer, provided additional details on UDR's innovative approach, saying: "We are not only leaders in idea generation but more importantly, in execution... We continue to innovate and expect to drive incremental growth for many years to come."
Another key aspect of UDR's strategy is associate engagement. The company has implemented various initiatives to enhance its customer experience project, which includes equipping associates with actionable data and more responsibilities. This has led to higher levels of engagement among associates, resulting in improved retention rates and cost savings.
UDR was recognized as a Top 2025 Workplace by USA Today, reflecting the company's commitment to corporate stewardship. President Joe Fisher noted that this achievement builds on UDR's rich history as a leader in this area.
The multifamily industry is also experiencing positive fundamental drivers, including strong demand and chronic undersupply of housing in the United States. According to third-party data, nearly 140,000 apartment homes were absorbed during the first quarter, a 3-decade high for the period.
Joe Fisher added that the pace of new supply is slowing, with 2024 multifamily completions marking a 50-year high and starts continuing to decline due to cost and availability of capital. This bodes well for occupancy and pricing in the future."
