One-glance verdict
Overvalued
$25.66 our estimate vs market $34.40
Wall Street consensus: $41.74 (62.6% higher than our fair-value estimate)
34% above our estimate, beyond the bull case
Fundamentals snapshot
UDR, Inc.
UDR · NYQ · Real Estate · REIT - Residential
Current price
$34.40
52-week range
$32.94 - $42.00
Market cap
$12.64B
Balance sheet
Stretched
1.64x Concerning
Net debt $5.99B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.2% last year.
- Reward Returns 13.7% on equity, ahead of 83% of its peers.
- Risk Forward P/E (61.4x) is higher than trailing (21.8x) - earnings are expected to drop.
- Risk Net debt grew 5.8% over 3 years.
What this company does
UDR, Inc.
UDR is a large landlord that owns and operates tens of thousands of apartments in various U.S. cities. The company's main business is collecting monthly rent from the residents living in its properties. Because people consistently need a place to live and pay rent, this can create a steady and predictable stream of income for the company.
How the company got here
UDR was founded in 1972 as United Dominion Realty Trust and started out owning different kinds of properties. A key turning point came in the early 2000s when new leadership decided to focus only on apartments. The company sold off its other properties, rebranded as UDR, Inc., and moved its headquarters to Colorado. This strategy transformed it into a specialized owner and manager of apartment communities across the U.S., concentrating on desirable markets where it's difficult for new competitors to build.
What it actually does
UDR is a Real Estate Investment Trust (REIT), a type of company that owns and, in most cases, operates income-producing real estate. Think of them as a large-scale landlord for thousands of apartment homes across the country, from high-rise city buildings to suburban garden-style communities. Their main business is renting apartments to people and collecting monthly rent payments. Because it's a REIT, UDR is required to pay out most of its taxable income to its shareholders (the people who own stock in the company) in the form of dividends (a regular payment from a company's profits to its investors).
Same-Store Communities
This is UDR's core business and biggest source of income, consisting of apartment buildings the company has owned for more than a year. These are considered stable, predictable properties because they have a history of being rented out. The main goal here is to keep existing residents happy so they renew their leases and to attract new renters, all while managing day-to-day costs like maintenance, property taxes, and staff salaries. The key performance metric for this segment is how much more revenue they bring in compared to the previous year, which shows the health of their established portfolio.
Non-Mature and Other Communities
This part of the business includes recently purchased apartment buildings or newly constructed ones that are still in the process of leasing up to their normal occupancy levels. It also includes properties undergoing significant renovations to make them more attractive to renters. These communities represent UDR's growth pipeline, as they are expected to become stable, income-producing properties in the future. This segment is a smaller, less predictable part of the business but is essential for the company's long-term expansion.
Development and Redevelopment
Instead of just buying existing buildings, UDR also builds brand new apartment communities from the ground up in attractive locations. This allows them to design modern buildings with the amenities (features like pools, gyms, and smart home technology) that today's renters want. They also have a redevelopment program where they buy older, underperforming properties and invest in significant upgrades to improve them and increase the rent they can charge. This is a way for UDR to create value rather than just buying it.
What management is betting on now
UDR's leadership is heavily focused on using data and technology to make smarter decisions. They analyze vast amounts of information to optimize rental pricing, improve the resident experience to keep tenants longer, and decide which new properties to buy or build. The company is also engaged in 'capital recycling' (selling older, slower-growing properties and using the cash to buy or build new ones in better markets or to repurchase its own shares). Their strategy aims to balance their portfolio between stable coastal cities and faster-growing 'Sunbelt' markets to provide more consistent performance through different economic cycles.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$171.15M
FY2024 Q3
$161.35M
FY2024 Q4
$179.43M
FY2025 Q1
$103.23M
FY2025 Q2
$190.07M
FY2025 Q3
$164.62M
FY2025 Q4
$192.12M
FY2026 Q1
$85.28M
Revenue
$425.85M
Net income
$189.83M
Diluted EPS
0.57
Operating cash flow
$128.74M
Free cash flow
$85.28M
Fetching…
Sources
Revenue
$433.11M
Net income
$222.90M
Diluted EPS
0.67
Operating cash flow
$261.41M
Free cash flow
$192.12M
Fetching…
Sources
Revenue
$431.86M
Net income
$40.41M
Diluted EPS
0.12
Operating cash flow
$234.94M
Free cash flow
$164.62M
Fetching…
Sources
Revenue
$425.40M
Net income
$37.67M
Diluted EPS
0.11
Operating cash flow
$250.33M
Free cash flow
$190.07M
Fetching…
Sources
Revenue
$421.95M
Net income
$76.72M
Diluted EPS
0.23
Operating cash flow
$156.22M
Free cash flow
$103.23M
Fetching…
Sources
Revenue
$422.73M
Net income
$-5.04M
Diluted EPS
-0.01
Operating cash flow
$240.54M
Free cash flow
$179.43M
Fetching…
Sources
Revenue
$420.16M
Net income
$22.60M
Diluted EPS
0.06
Operating cash flow
$230.25M
Free cash flow
$161.35M
Fetching…
Sources
Revenue
$415.32M
Net income
$28.88M
Diluted EPS
0.08
Operating cash flow
$238.46M
Free cash flow
$171.15M
Fetching…
Sources
Is it cheap or expensive?
Fair value $25.66 vs current price $34.40
Wall Street consensus is the average analyst price target: $41.74 (62.6% higher than our fair-value estimate).
Our most-likely fair value is $25.66 a share — about 25.4% below today's price of $34.40, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $6.0B. Interest coverage 1.6x.
Net debt
$5.99B
Interest coverage
1.64x
UDR, Inc.'s profit covers its interest bill about 1.6 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
UDR
BASELINE
UDR, Inc.
Total debt $5.99B Interest coverage 1.64x This is the baseline the peer rows are being compared against.
Total debt $8.57B Interest coverage 2.83x +73% vs UDR Carries about 1.7x more debt cushion than UDR.
Total debt $9.19B Interest coverage 3.55x +116% vs UDR Carries about 2.2x more debt cushion than UDR.
Total debt $5.72B Interest coverage 3.34x +104% vs UDR Carries about 2.0x more debt cushion than UDR.
Total debt $4.87B Interest coverage 2.09x +27% vs UDR Carries about 1.3x more debt cushion than UDR.
Total debt $6.75B Interest coverage 2.33x +42% vs UDR Carries about 1.4x more debt cushion than UDR.
What you should know
The case for and against UDR
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.2% last year.
-
Returns 13.7% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (61.4x) is higher than trailing (21.8x) - earnings are expected to drop.
-
Net debt grew 5.8% over 3 years.
-
Insider ownership is only 0.4% (peer median: 0.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
21.77x
Forward P/E
61.43x
P/B
3.82x
P/S
7.15x
EV/EBITDA
17.28x
PEG ratio
8.17x
Profitability
How much profit each dollar creates
Gross margin
66.6%
Operating margin
20.2%
Net margin
29.6%
ROE
13.7%
ROA
2.2%
Health
Liquidity and balance-sheet strength
Debt / equity
1.56x
Current ratio
0.18x
Quick ratio
0.00x
Total debt
$5.99B
Total cash
$2.83M
Growth
How the business has been compounding
Revenue TTM
$1.72B
Revenue 5Y CAGR
7.3%
EPS TTM
1.58
EPS 5Y CAGR
63.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$875.41M
Free CF TTM
$650.03M
FCF margin
37.9%
Dividend
Shareholder payout
Yield
5.0%
Payout ratio
109.2%
Last ex-div date
2026-09-15