Zacks Likes UDR and Other Multifamily REITs

Zacks Equity Research has named UDR Inc., a multifamily REIT, as its "Bull of the Day" for April 7. The Highlands Ranch, Colo.-based real estate investment trust owns, operates, acquires, develops and renovates middle-market apartment communities. Although it has assets across the country, UDR's exposure is mostly in the Western and Mid-Atlantic states. The Chicago research firm said "2009 will be a more difficult year for multifamily REITs. The lack of job growth will force landlords to cut rents and offer more concessions. In a recessionary environment, we would stick to well-capitalized REITs." Zack noted that UDR has plenty of liquidity to take care of 2009 debt maturities and fund its development pipeline. "The current yield is attractive, and the company does not anticipate paying any portion of the 2009 common dividend in stock, as several REITs are now doing. We like the multifamily sector going forward, as residential landlords will continue to benefit from the national housing meltdown."