Zacks_Analysts' Blog : UDR Issues Senior Notes - Analyst Blog

UDR, Inc (UDR) recently announced the issuance of a $400 million offering of 4.625% senior unsecured notes. The note offering carries the option of paying interests semiannually and the notes will mature on January 10, 2022.

UDR intends to use the net proceeds from the offering for general corporate purposes, including the repayment of $100 million principal amount of 5.00% senior unsecured notes due 2012. The settlement of the offering is expected to take place on January 10, 2012.

This offering will enable the company to attain financial flexibility and seize investment opportunities and acquisitions, which go a long way in enhancing top-line growth.

As of September 30, 2011, the company had a liquidity of $506 million attributable to a combination of cash and available capacity under its credit facility. As of September 30, 2011, UDR had a total debt of $4.0 billion and a fixed charge coverage ratio of 2.5x.

UDR reported third quarter 2011 FFO (funds from operations) of $73.0 million or 32 cents per share compared with $46.9 million or 27 cents in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

UDR Inc. is an apartment real estate investment trust (REIT) that owns, operates, acquires, develops and renovates middle-market apartment communities. UDR is committed to providing premium quality homes and excellent service and value for its residents.

UDR currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Apartment Investment & Management Co. (AIV) currently retains a Zacks #3 Rank