Goldman Sachs Maintains Neutral Rating On UDR

According to Goldman Sachs, UDR UDR saw solid 8% growth. Goldman Sachs said that apartment REIT UDR posted 1Q2011 FFO per share of $0.30, in line with the forecast, and vs. $0.28 for the same period last year. “The bottom line is that UDR is experiencing accelerating core operating trends and FFO growth driven by elevated occupancy, improving new lease / renewal rents, as well as favorable debt financing costs. Similar to other apartment REITs that have reported, UDR expects a 4%-6% bump in new leases and renewals during the peak spring leasing season based on solid demand as of April. In addition, the company continues to seek new investment opportunities with roughly $1.3 bn completed over the last year, including the most recent 10 Hanover Square acquisition in Lower Manhattan ($261 mn, 5% cap rate). The company has $518 mn of completed development with an additional $339 mn of development to be delivered in 2012 / 2013 (yields of 7%). UDR maintained previously issued assumptions for 2011 FFO of $1.20-$1.25, indicating growth of 11% from 2010 at the high end of the range. The forecast assumes 4.0%-6.0% same-store NOI growth.” UDR closed yesterday at $42.81.