UDR Prepares to Enter S&P 500 With Secondary Offering
UDR is moving into the big leagues with its announcement that it will be joining the Standard & Poor’s (S&P) 500 Index.
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.
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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.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
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