UDR Inc. (UDR Quick QuoteUDR - Free Report) , a premier multifamily real estate investment trust (REIT), is set to announce its second-quarter 2025 results after the closing bell on July 30. While its quarterly results are likely to reflect growth in revenues, funds from operations (FFO) per share might have remained unchanged.

In the last reported quarter, this Denver, CO-based residential REIT came up with an FFO as adjusted per share of 61 cents, in line with the Zacks Consensus Estimate. Results reflected year-over-year growth in same-store net operating income (NOI), led by higher occupancy and an effective blended lease rate. However, a rise in other operating expenses, and general and administrative expenses undermined the performance to an extent.

In the last four quarters, UDR’s FFO as adjusted per share met the Zacks Consensus Estimate on three occasions and surpassed on the other, the average surprise being 0.41%. The graph below depicts the surprise history of the company:

United Dominion Realty Trust, Inc. Price and EPS Surprise

United Dominion Realty Trust, Inc. price-eps-surprise | United Dominion Realty Trust, Inc. Quote

Let’s see how things have shaped up before this announcement.

US Apartment Market in Q2

The U.S. apartment market remained impressively resilient in the second quarter of 2025, absorbing more than 227,000 units between April and June, a robust second-quarter figure. According to RealPage data, annual absorption surpassed even the peak leasing surge of 2021 and early 2022, defying a backdrop of slowing job growth, weak business sentiment and broader economic uncertainty.

While rent growth stayed muted, up just 0.19% in June, occupancy climbed steadily. At 95.6% in June, national occupancy rose 140 basis points year over year. Operators appear focused on maximizing occupancy, even if it means sacrificing rent increases. This “heads-in-beds” approach supports stability during a period of high new supply.

Supply, though moderating, remains historically elevated. More than 535,000 units were completed in the past year, with roughly 108,000 delivered in the second quarter alone. Yet the market’s ability to digest this volume underscores its underlying strength.

Regionally, tech-driven markets like San Francisco and San Jose, as well as Boston and New York, gained momentum — likely aided by easing supply and increased return-to-office trends. Sun Belt markets, such as Dallas, Atlanta and Jacksonville, FL, also showed signs of recovery in the second quarter, sustaining robust demand amid declining deliveries. Tourism-dependent cities, like Las Vegas, Orlando, FL, and Nashville, TN, faltered slightly, possibly reflecting softening discretionary spending. Supply-heavy markets like Austin, Phoenix and Denver continued to see the sharpest rent cuts.

Factors to Consider and Projections for UDR

In this environment, UDR is well-positioned to gain from its geographically diversified portfolio of A/B quality properties located in both urban and suburban markets across key U.S. regions, including coasts and the Sunbelt.

This strategy of maintaining a diversified portfolio across various geographies and price points limits volatility and concentration risks while aiding the company in generating steady operating cash flows. We estimate rental income to grow by 1.9% year over year for the second quarter.

The company is leveraging technological initiatives and process enhancements to bring about operational resiliency across its platform. Such efforts are likely to give UDR a competitive edge over others and enable it to capture additional net operating income (NOI), driving long-term profitability. We estimate the same-property NOI to increase 4.9% in the second quarter of 2025.

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $422.24 million. This indicates a 2.15% year-over-year rise.

UDR expects second-quarter 2025 FFO as adjusted per share in the range of 61-63 cents.

However, elevated rental unit supply in select markets has heightened competition, weighing on its quarterly performance.

Before the second-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO as adjusted per share has remained unrevised at 62 cents in the past three months. Also, this suggests no change year over year.

Here Is What Our Quantitative Model Predicts for UDR:

Our proven model does not conclusively predict a surprise in terms of FFO per share for UDR this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

UDR currently carries a Zacks Rank of 3 and has an Earnings ESP of -0.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the broader REIT sector — AvalonBay Communities (AVB Quick QuoteAVB - Free Report) and Cousins Properties (CUZ Quick QuoteCUZ - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

AvalonBay Communities, scheduled to report quarterly numbers on July 30, has an Earnings ESP of +0.02% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins Properties, slated to release quarterly numbers on July 31, has an Earnings ESP of +0.36% and carries a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.