Question · Q4 2025
John Pawlowski followed up on the size of UDR's debt and preferred equity (DPE) program, questioning whether there is significant prepayment risk given the liquid credit markets and if this could lead to a more substantial decline in outstanding balances this year.
Answer
Thomas W. Toomey, Chairman, President and CEO, and David Bragg, CFO, UDR, responded. Dave Bragg stated that UDR is in constant dialogue with its DPE partners and does not foresee outsized prepayment risk. Instead, they anticipate a methodical pace of successful paybacks throughout the year, which will free up capital that can then be redeployed into the DPE book if attractive opportunities arise, or pivoted to other uses like share buybacks.
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UDR's earnings beat/miss a week before the call