UDR, Inc. (NYSE:UDR) Q4 2023 Earnings Call Transcript

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Linda Tsai: But is an opportunity in ‘24?

Joe Fisher: We do think there is an opportunity in ‘24. Mike mentioned we captured the kind of 1% of reduced turnover from customer experience. That adds a little bit to our ‘24 number, plus or minus $3 million on a year-over-year basis. But we do think there is a lot more opportunity above and beyond that to continue to push that customer experience and move detractors into supporters and start to continue to renew with us. Similarly, on the fraud side, we assumed no improvement year-over-year on bad debt. But in totality at that 1.5% number, that’s $25 million of revenue right there, and the real cost is usually about 2x that when you factor in upstream, downstream costs, expenses return, capital return. So, that’s a $50 million opportunity of which we are going to be going after a portion of, obviously, as we move to the future years and roll out some of this fraud prevention.

Linda Tsai: Thank you.

Operator: Thank you. Our next question comes from the line of Anthony Powell with Barclays. Please proceed with your question.

Anthony Powell: Hi. Good afternoon. Just one for me, I think you mentioned earlier in the call that you saw some softness in New York. Maybe talk about what’s going on there in your kind of medium-term outlook for that market.

Mike Lacy: Sure, Anthony, this is Mike. Just to give a little background, New York, 8% NOI market for us is mainly down in the financial district. And I will tell you, prior to the team this year, we are going to end up with the top revenue amongst our peers in that market, so they have done a really good job. But I will tell you from what we have experienced, we were coming off some pretty big highs. And we are obviously running 97.5%, 98% of occupancy. And then we started going to the more seasonal slow period of time, I am happy to see that in January, our blends did actually increase from December. They are up about 150 basis points, and they are roughly flat today. So, some of it’s probably seasonal, some of it’s coming off of a high, but we are anxiously are hopeful that things are going to continue to improve there.

Anthony Powell: Okay. Great. Thanks.

Operator: Thank you. There are no further questions in the queue. I would like to hand the call back over to Chairman and CEO, Mr. Toomey for closing comments.

Tom Toomey: Thanks to all of you for your time, interest and support of UDR. We look forward to seeing many of you in the upcoming events. With that, take care.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time.

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