UPDATE 2-UDR fourth-quarter FFO flat

* Fourth-quarter FFO 37 cents per share

* Sees 2009 FFO in the range of $1.23 to $1.35 per share

* Shares after-hours unchanged from $11.10 close (Adds forecast, VP quote, stock price)

NEW YORK, Feb 9 (Reuters) - UDR Inc (UDR.N), which owns apartment properties, reported lower-than-expected quarterly funds from operations on Monday, as revenue growth slowed and expenses rose.

UDR said fourth-quarter FFO, a measure of performance of a real estate investment trust, was $58.2 million, or 37 cents per share, about flat with the $58.3 million, or 37 cents per share, in the year-earlier quarter.

Fourth-quarter 2008 FFO includes a net gain of 6 cents a share on a $20.6 million gain from the repurchase of convertible debt. But that gain was offset by a prepayment of debt from Fannie Mae resulting in a $4.7 million charge and one time restructuring charges of $6.4 million.

The average forecast of analysts polled by Reuters Estimates was 41 cents per share.

So far, more than half the apartment REITs have reported fourth-quarter results and most have forecast a difficult 2009. Job growth is the prime driver behind a landlord's ability to raise rents and so far the picture is ugly. U.S. employers cut 598,000 jobs in January, the largest monthly decline in 34 years, according to the U.S. Department of Labor.

"The fundamentals of our business continue to reflect the effects of job losses across the U.S.," Jerry Davis, UDR senior vice president of operations, said in a statement.

For properties the company has operated for at least a year, revenue grew by 1.8 percent, while expenses jumped 6.8 percent as the prior fourth-quarter included favorable tax appeals and insurance gain.

Real estate research firm Reis Inc forecasts 2009 rents will decline 1.7 percent and occupancy will rise to their highest rates since 1986.

UDR forecast 2009 FFO in the range of $1.23 to $1.35 per share, missing Wall Street's average forecast of $1.36 per share, according to Reuters Estimates.

FFO removes the profit-reducing effect of depreciation, a noncash accounting item.

UDR ended the fourth quarter with a total of $778 million available in cash and undrawn credit facilities. Since then, UDR has increased the total of available financial resources to $1.3 billion.

The company has $390 million of debt maturing this year and and $439 million in 2010.

In after-hours activity, UDR shares traded at $11.10, unchanged from their close on Monday on the New York Stock Exchange. (Reporting by Ilaina Jonas; Editing by Andre Grenon)