UDR - UDR Inc.: Better Results But Less Benefit From Peaking Apartment Supply
2024-06-07 15:03:18 ET
Summary
- UDR's shares have underperformed due to high interest rates and cooling in the apartment rental market.
- Signs of the rental market finding a bottom make me incrementally more positive about UDR, though its relative value is not particularly compelling.
- UDR's focus on legacy markets and mid-tier quality properties means it may not be the primary beneficiary of peaking supply.
Shares of UDR, Inc. ( UDR ) have been an underperformer over the past year as high interest rates have weighed on real estate stocks; cooling in the apartment rental market has weighed on shares, as well. Back in January , I rated UDR a "hold," as I felt its dividend was secure but that its reliance on "B" quality properties limited upside. Since that recommendation, shares have underperformed, returning 4% vs the market's 12% rally. We are seeing signs the rental market is finding a bottom, making me incrementally more positive on UDR, though I am retaining a hold rating....
UDR, Inc.: Better Results But Less Benefit From Peaking Apartment Supply