UDR, Inc. (NYSE:UDR) Q4 2022 Earnings Call Transcript

Joshua Dennerlein: Okay. I appreciate that color. And then just €“ appreciate all the info you provided on the same-store revenue guide, just wanted to kind of clarify? I don’t know if I heard it, the occupancy assumption at the midpoint in the high, low end of the range?

Mike Lacy: Yes. We’re expecting roughly flat occupancy. So we’ve been running right around 96.7% as we go into January, February here. I expect more of the same for the foreseeable future. We’re really focused on continuing to drive that rent roll. And so we’re going to be pushing rents for the next few months and see how it all shakes out.

Joshua Dennerlein: Okay. That’s across the range you assume the flat or was there…

Mike Lacy: That’s correct, across the range. Some markets being a little bit higher, some being a little bit lower, but right around that 96.7%, 96.8% is about where we will land.

Joshua Dennerlein: Okay, appreciate that. Thanks, guys.

Operator: Thank you. Our next question is from Steve Sakwa with Evercore ISI. Please proceed with your question.

Steve Sakwa: Yes. Thanks. Good morning. I realize you’re not providing sort of quarterly cadences, but, Mike, could you maybe just talk about how you think revenue growth progresses throughout the year? And I guess I’m just trying to get a sense for maybe where the exit velocity might be as we get sort of towards the end of the year and into €˜24?

Mike Lacy: Yes. We haven’t talked much about the cadence, Steve. But what I would tell you is, the first half of the year should still be relatively strong just given what we’ve done with the earn-in. I mean, obviously, we put a lot of focus on that over the last 6 to 9 months. So I would expect anywhere from 7.5% to 8.5% in the first half. That being said that would imply about a 5.5%, 6.5% in the back half. But we will see what happens with market rent If they continue to go up closer to that high end of the range that we provided, you could see that migrate up. So that’s kind of how we’re seeing it shake out based on everything we’re seeing and experiencing today.

Thomas Toomey: And Mike, how much of your revenue is built in by April?

Mike Lacy: Quite a bit, Tom. So we expect between 65%, 70% of it will be known by the end of April.

Steve Sakwa: Got it. Okay, thank you. And then second question, I guess, Joe, coming back from NMHC, I mean how are you guys thinking about new development starts? And I know you own a bunch of land parcels. I guess where would you today be penciling out new development? And if those yields don’t really work for you, how much higher do the yields need to be in? Is that a function of cost coming down, rents going up? Obviously, it could be a combination of both, but just how do you see development starts maybe unfolding over the next year or so?