UDR, Inc. (NYSE:UDR) Q3 2020 Earnings Conference Call - Final Transcript
Oct 30, 2020 • 12:00 pm ET
Greetings and welcome to UDR's Third Quarter 2020 Earnings Call. [Operator Instructions].
It is now my pleasure to introduce your host, Director of Investor Relations, Trent Trujillo. Thank you, Mr. Trujillo, you may begin.
Welcome to UDR's quarterly financial results conference call. Our press release and supplemental disclosure package were distributed yesterday afternoon and posted to the Investor Relations section of our website ir.udr.com. In the supplement, we have reconciled all non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Reg G requirements. Statements made during this call, which are not historical, may constitute forward-looking statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be met. Discussion of risks and risk factors are detailed in our press release and included in our filings with the SEC. We do not undertake a duty to update any forward-looking statements.
When we get to the question-and-answer portion, we ask that you be respectful of everyone's time and limit your questions to one plus a follow-up. Management will be available after the call for your questions that did not get answered during the Q&A session today.
I will now turn over the call to UDR's Chairman and CEO, Tom Toomey.
Thomas W. Toomey
Thank you, Trent, and welcome to UDR's third quarter 2020 conference call. On the call with me today are Jerry Davis, President and Chief Operating Officer; Mike Lacy, Senior Vice President of Operations; and Joe Fisher, Chief Financial Officer, who will discuss our results. Senior executives, Harry Alcock, Matt Cozad, and Chris Van Ens are available during the Q&A portion of the call.
Simply stated, our business is predicated on revenues we bill and our ability to collect those revenues. For the former, the third quarter remained challenging, due to the combination of ongoing regulatory restrictions, slow coastal openings, work-from-home trends and elevated concession levels in our high rent coastal markets, combined with the highest number of lease expirations for any quarter during the year. Despite this, billed revenue appears to have stabilized across August, September and now October. For the latter, our ability to collect revenue remained strong and is consistent with prior months.
While these observations have yet to show up in our companywide same-store revenue and NOI results, I draw some degree of comfort from the approximately 80% of our portfolio, which is experiencing stabilizing or slightly improving fundamentals. This is in our suburban and same-store [Phonetic] communities. Combined, these factors provided the basis for our issuance of same-store and earnings guidance for the fourth quarter.
But we have not lost sight, of the fact that many uncertainties and challenges remain. Every recession has a couple of quarters, where the headwinds converge. The third quarter had that type of feel do it for us. And based on our guidance, the fourth quarter, which has fewer leases coming due, could as well for same-store statistics.
The stabilization of fundamentals, occupancy, build revenue and