DENVER - UDR, Inc. (NYSE: UDR), a prominent multifamily real estate investment trust with a market capitalization of $15.84 billion and a solid "GOOD" financial health rating according to InvestingPro, has revealed significant changes within its executive management team effective as of January 1, 2025. The company has promoted Mike Lacy to the position of Chief Operating Officer, recognizing his substantial contributions to the company since he joined in 2006. Lacy's promotion follows his successful tenure as Senior Vice President – Operations, a role he has held since 2019.
In a concurrent move, Joe Fisher has been appointed as Chief Investment Officer while retaining his current roles as President and Chief Financial Officer. Fisher has been with UDR as CFO since 2017 and will now also oversee the company's investment and development functions. This expansion of responsibilities is seen as a natural progression for Fisher, given his deep involvement with the company's financial strategies.
UDR has also announced that it will commence an executive search to fill the Chief Financial Officer position. Once a suitable candidate is found, Fisher will step down from the CFO role to focus on his duties as President and Chief Investment Officer.
Tom Toomey, UDR's Chairman and CEO, expressed gratitude to both Lacy and Fisher for their leadership and contributions to the company's culture and value creation strategies. Toomey highlighted the alignment of the company's executive team with its value creation initiatives as a result of these leadership transitions.
The company's latest moves come as part of its ongoing efforts to maintain and enhance its position in the multifamily real estate market. UDR has a longstanding history of over 52 years in the industry, managing a portfolio that includes 60,123 apartment homes as of September 30, 2024. The company has demonstrated steady performance with $1.68 billion in revenue over the last twelve months and offers an attractive dividend yield of 3.92%. Discover more detailed insights and metrics with InvestingPro's comprehensive research report, one of 1,400+ available for top US stocks.
This leadership transition is part of UDR's strategic planning and is expected to support the company's continued growth and operational excellence. Analyst consensus suggests potential upside, with price targets ranging from $40 to $52 per share. The announcement is based on a press release statement from UDR, Inc. For exclusive access to detailed valuation metrics and expert analysis, visit InvestingPro.
In other recent news, UDR, Inc. reported strong Q3 2024 performance, exceeding expectations and raising its full-year funds from operations (FFO) guidance for the third time. The full-year FFO guidance range was updated to $2.47 to $2.49 per share, and same-store revenue growth guidance for 2024 was increased to a midpoint of 2.2%. UDR also announced Q4 dividends for common and preferred stock, demonstrating its commitment to consistent shareholder value.
However, Jefferies analyst Linda Tsai downgraded UDR shares from Buy to Hold due to concerns about persistent supply pressures in the company's Sunbelt markets, which are expected to hinder growth in new lease rates. This challenge is anticipated to result in UDR's FFO per share growth trailing behind that of its Coastal Apartment Real Estate Investment Trust (REIT) peers throughout 2025.
Despite these challenges, Tsai noted some positive aspects for UDR, including the reduction of bad debt that could provide a modest boost in the upcoming year. Lastly, these are recent developments and it's important to note that the company may see a turnaround once the current supply constraints in its markets begin to ease, although the timeline for this recovery remains uncertain.
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