Investing

UDR Prepares to Enter S&P 500 With Secondary Offering

Chris Lange

Published: March 4, 2016 11:15 am

Last Updated: January 13, 2020 12:22 pm

UDR Inc. (NYSE: UDR) is moving into the big leagues with its announcement that it will be joining the Standard & Poor’s (S&P) 500 Index. In conjunction with this announcement, the company intends to have an underwritten public offering of its common stock.

UDR expects to offer 5 million shares, but no pricing terms were released at the time. At the most recent closing price ($36.53), the offering is valued up to $182.65 million.

The sole underwriters for the offering are Goldman Sachs and Merrill Lynch.

This company is a leading multifamily real estate investment trust (REIT) with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of December 31, 2015, UDR owned or had an ownership position in 50,646 apartment homes including 3,222 homes under development. For over 43 years, UDR has delivered long-term value to shareholders, the best standard of service to residents and the highest quality experience for associates.

The company expects to use the proceeds for from the offering for working capital and general corporate purposes.

So far in 2016, UDR has underperformed the broad markets, with the stock down 2% year to date. Over the course of the past 52 weeks, the stock is up 17%.

Shares of UDR were trading at $35.90 on Friday, with a consensus analyst price target of $37.62 and a 52-week trading range of $30.03 to $38.07.