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UDR's Q3 FFOA Beats Estimates, Revenues & Same-Store NOI Grow

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Key Takeaways

  • UDR reported Q3 FFOA of 65 cents, which beat estimates and topped last year's 62 cents.
  • Same-store NOI rose 2.3% as higher blended lease rates offset increased operating costs.
  • UDR raised its 2025 FFOA midpoint to $2.54 per share and plans a $147M community acquisition.

UDR Inc. (UDR - Free Report) reported third-quarter 2025 funds from operations as adjusted (FFOA) per share of 65 cents, outpacing the Zacks Consensus Estimate of 63 cents. This also compares favorably with the prior-year quarter’s reported figure of 62 cents.

The results reflected year-over-year growth in same-store net operating income (NOI), led by a higher effective blended lease rate. The company raised its 2025 FFOA midpoint per share guidance.

Quarterly revenues from rental income were $429.3 million, which marginally missed the Zacks Consensus Estimate of $429.7 million. Total revenues came in at $431.9 million. On a year-over-year basis, rental income and total revenues rose more than 2.5% each.

UDR’s Third Quarter in Detail

In the reported quarter, same-store revenues increased 2.6% year over year. Same-store expenses were up 3.1%. As a result, same-store NOI improved 2.3%.

UDR registered same-store effective blended lease rate growth of 0.8% during the quarter, with the effective new lease rate dropping 2.6%, while the effective renewal lease rate grew 3.3%.

The residential REIT’s weighted average same-store physical occupancy of 96.6% increased 30 basis points (bps) year over year but decreased 30 bps sequentially. Our estimate was pegged at 96.5%.

UDR’s Balance Sheet Position

As of Sept. 30, 2025, UDR had $1.0 billion of liquidity through a combination of cash and undrawn capacity on its credit facilities.

Total debt was $5.8 billion as of the same date, with only $485.9 million, or 8.9% of total consolidated debt, maturing through 2026. In addition, net debt-to-EBITDAre of 5.5X in the third quarter was unchanged from the prior quarter.

UDR ended the quarter with a weighted average interest rate of 3.4% and a weighted average years to maturity of 4.6 years.

UDR’s Portfolio Activity

Following the third quarter, UDR agreed to acquire a home community in suburban Metropolitan Washington, D.C., comprising 406 apartment units for around $147 million. The transaction is anticipated to be completed in the fourth quarter of 2025.

2025 Guidance by UDR

The company guided for the fourth quarter and raised its full-year 2025 FFOA per share at the midpoint.

It expects fourth-quarter 2025 FFOA per share in the range of 63-65 cents. The Zacks Consensus Estimate is currently pegged at 64 cents.

For 2025, FFOA per share is expected in the range of $2.53-$2.55, with the midpoint at $2.54, up from $2.52 guided earlier. The Zacks Consensus Estimate is currently pegged at $2.51, below the guided range.

For the full year, on a straight-line basis, the company projects growth rates for same-store revenues in the range of 2.20-2.60%, same-store expenses between 2.40% and 3.10% and same-store NOI between 2.00% and 2.50%.

UDR’s Zacks Rank

Currently, UDR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Residential REITs

Equity Residential (EQR - Free Report) reported third-quarter 2025 normalized FFO per share of $1.02, meeting the Zacks Consensus Estimate. The figure also climbed 4.1% from the prior-year quarter’s tally.

Results reflected a rise in same-store revenues and physical occupancy on a year-over-year basis.

Mid-America Apartment Communities (MAA - Free Report) reported third-quarter 2025 FFO per share of $2.16, which missed the Zacks Consensus Estimate of $2.17. Moreover, the reported figure fell 2.3% year over year.

MAA has experienced a fall in same-store revenues, with average effective rent per unit declining year over year. However, the REIT witnessed low levels of resident turnover.

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.

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