Tuesday, multifamily real estate investment trust UDR, Inc. (UDR) reported a decline in funds from operations for the fourth quarter, as same-store revenues declined 3.7% as a result of a 5.4% decline in rents, with a 5.1% decline in same-store net operating income. Earnings were also impacted by a debt repayment penalty. Looking ahead, the company also provided its outlook for the full year 2010.
Fourth quarter net loss available to common stockholders widened to $24.79 million or $0.16 per share from $18.38 million or $0.13 per share a year-ago.
The company generated funds from operations or FFO of $44.5 million or $0.27 per share for the quarter, compared with an FFO of $53.3 million or $0.36 per share in the fourth quarter of 2008.
On an adjusted basis, the FFO declined to $45.51 million or $0.28 per share from $58.31 million or $0.40 per share in the year-ago period.
On average, 19 analysts polled by Thomson Reuters estimated earnings of $0.28 per share for the quarter. Analysts' estimates typically exclude special items.
Rental income for the quarter increased to $150.13 million from $149.45 million a year-ago.
Ten Wall Street analysts estimated revenues of $148.53 million for the quarter.
Same-store net operating income declined 5.1% for the fourth quarter 2009, while same-store physical occupancy increased 90 basis points to 95.5% year-over-year. Same-store revenue declined 3.7% as a result of a 5.4% decline in rents, partially offset by higher occupancy and utility reimbursements.
Total same-store revenue declined 3.7% with a decline of 6.0% in the Western region. Same store revenue in the Southeastern region declined 3.5% and in the Southwestern region by 6.0%. However, same-store revenue in the Mid-Atlantic region increased 0.3%.
The quarter included $1.0 million or $0.01 per share in one-time charge associated with the early prepayment of debt. Results for the quarter excluded the negative $0.01 per share effect of the implementation of FASB ASC Subtopic 470-201.
Excluding the one-time charges core funds from operation was $0.29 per share, compared to $0.30 per share in the prior year period.
Looking forward to the full year 2010, the company estimates funds from operations to be in the range of $1.00 - $1.07 per share and GAAP net loss to be in the range of $0.95 - $0.88 per share.
For the full year 2010, the Street currently estimates earnings of $1.08 per share.
On February 5, 2010, market rival apartment Investment and Management Co. reported a loss for the fourth quarter that narrowed from the previous year, reflecting lower operating expenses that more than offset a decline in revenues.
Full year FFO declined to $181.99 million or $1.14 per share from $204.88 million or $1.43 per share in the year-ago period. Adjusted FFO for the year declined to $189.64 million or $1.19 per share from $214.81 million or $1.50 per share in the year-ago period.
Net loss available to common stock holders for the year narrowed to $95.85 million or $0.64 per share from $688.70 million or $5.29 per share in the year-ago period.
The street estimated earnings of $1.15 per share on a revenue of $601.18 million.
Rental income for the full year increased to $602.89 million from $563.40 million a year-ago. The Street estimated revenue of $601.18 million for the year.
UDR closed Tuesday's last trade at $15.09, down $0.43 or 2.77%, on a volume of 4.4 million shares on the New York Stock Exchange. In the after hours the stock traded down $0.03 or 0.21%.
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