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The quarter reflected rental rate gains, while expense growth weighed on same-store NOI.
Rental income of $423.32 million rose marginally year over year but came in below the consensus mark of $427.13 million.
UDR’s Same-Store Results Show Expense-Led NOI Pressure
Same-store revenues increased marginally from the year-ago quarter on a straight-line basis, supported by gains across several coastal markets. However, same-store expenses climbed 4.4%, pushing same-store NOI down marginally year over year and underscoring the impact of elevated operating costs.
Total revenues increased marginally year over year to $425.8 million, as growth from same-store and acquired communities more than offset the drag from dispositions. Joint venture management and other fees also contributed, supporting the modest top-line expansion.
Same-store effective blended lease rate increased 1.6% during the quarter, with the effective new lease rate dropping 2.4%. The effective renewal lease rate grew 5.2%.
The residential REIT’s weighted average same-store physical occupancy of 96.6% decreased 60 basis points (bps) year over year and 30 bps sequentially. Our estimate was pegged at 96.8%.
UDR Executes Asset Sales, Steps Up Buybacks
UDR continued to lean on portfolio recycling and share repurchases. During the quarter, the company completed the sale of four apartment communities totaling 1,159 homes for gross proceeds of $362.0 million. It also received approximately $138.9 million from the full repayment of two debt and preferred equity investments.
On the capital return front, UDR repurchased about 2.8 million shares at a weighted average price of $36.27 for roughly $100.0 million during the quarter. After quarter-end, it repurchased an additional 1.4 million shares at a weighted average price of $35.01 for about $50.0 million, bringing repurchases since September 2025 to approximately $268.0 million.
UDR ended the quarter with approximately $1.1 billion of liquidity through cash and available capacity on its credit facilities. Total indebtedness was about $5.7 billion, carrying a weighted average interest rate of 3.4% and a weighted average maturity of 4.3 years, reflecting the benefits of a largely fixed-rate profile.
Leverage and coverage metrics remained supportive for an investment-grade multifamily REIT. Consolidated net debt-to-EBITDAre (adjusted for non-recurring items) was 5.6X, and consolidated fixed charge coverage (adjusted) measured 4.8X. The company also highlighted limited near-term maturities, with $355.0 million maturing through the rest of 2026, including principal amortization.
UDR Updates 2026 View, Shifts to Monthly Dividends
For second-quarter 2026, UDR guided FFOA per share to a range of 62-64 cents. The Zacks Consensus Estimate is currently pegged at 64 cents.
For full-year 2026, the company maintained its FFOA outlook of $2.47-$2.57 per share. Same-store revenue growth guidance remained 0.25%-2.25%, with same-store expense growth of 3.00%-4.50% and same-store NOI ranging from a decline of 1.00% to growth of 1.25%.
UDR also announced a change in dividend payment frequency from quarterly to monthly, beginning with the dividend payable in July 2026. The board declared second-quarter 2026 common dividends of $0.145 per share per month (totaling $0.435 for the quarter), implying an annualized dividend of $1.74 per share. The company positioned the shift as a way to align distributions with the timing of rental receipts and broaden appeal to investors seeking more frequent cash distributions.
Essex Property Trust Inc. (ESS - Free Report) reported first-quarter 2026 core FFO per share of $4.06, beating the Zacks Consensus Estimate of $3.96 by 2.5%. The figure improved 2.3% from $3.97 in the year-ago quarter.
Results reflected favorable growth in same-property NOI and higher occupancy.
AVB’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI.
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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UDR Q1 FFOA Matches Estimates on Steady Occupancy, Revenues Miss
Key Takeaways
UDR, Inc. (UDR - Free Report) reported first-quarter 2026 funds from operations as adjusted (FFOA) of 62 cents per share, in line with the Zacks Consensus Estimate. This also compared favorably with the prior-year quarter’s reported figure of 61 cents.
The quarter reflected rental rate gains, while expense growth weighed on same-store NOI.
Rental income of $423.32 million rose marginally year over year but came in below the consensus mark of $427.13 million.
UDR’s Same-Store Results Show Expense-Led NOI Pressure
Same-store revenues increased marginally from the year-ago quarter on a straight-line basis, supported by gains across several coastal markets. However, same-store expenses climbed 4.4%, pushing same-store NOI down marginally year over year and underscoring the impact of elevated operating costs.
Total revenues increased marginally year over year to $425.8 million, as growth from same-store and acquired communities more than offset the drag from dispositions. Joint venture management and other fees also contributed, supporting the modest top-line expansion.
Same-store effective blended lease rate increased 1.6% during the quarter, with the effective new lease rate dropping 2.4%. The effective renewal lease rate grew 5.2%.
The residential REIT’s weighted average same-store physical occupancy of 96.6% decreased 60 basis points (bps) year over year and 30 bps sequentially. Our estimate was pegged at 96.8%.
UDR Executes Asset Sales, Steps Up Buybacks
UDR continued to lean on portfolio recycling and share repurchases. During the quarter, the company completed the sale of four apartment communities totaling 1,159 homes for gross proceeds of $362.0 million. It also received approximately $138.9 million from the full repayment of two debt and preferred equity investments.
On the capital return front, UDR repurchased about 2.8 million shares at a weighted average price of $36.27 for roughly $100.0 million during the quarter. After quarter-end, it repurchased an additional 1.4 million shares at a weighted average price of $35.01 for about $50.0 million, bringing repurchases since September 2025 to approximately $268.0 million.
UDR’s Balance Sheet Holds Liquidity Above $1 Billion
UDR ended the quarter with approximately $1.1 billion of liquidity through cash and available capacity on its credit facilities. Total indebtedness was about $5.7 billion, carrying a weighted average interest rate of 3.4% and a weighted average maturity of 4.3 years, reflecting the benefits of a largely fixed-rate profile.
Leverage and coverage metrics remained supportive for an investment-grade multifamily REIT. Consolidated net debt-to-EBITDAre (adjusted for non-recurring items) was 5.6X, and consolidated fixed charge coverage (adjusted) measured 4.8X. The company also highlighted limited near-term maturities, with $355.0 million maturing through the rest of 2026, including principal amortization.
UDR Updates 2026 View, Shifts to Monthly Dividends
For second-quarter 2026, UDR guided FFOA per share to a range of 62-64 cents. The Zacks Consensus Estimate is currently pegged at 64 cents.
For full-year 2026, the company maintained its FFOA outlook of $2.47-$2.57 per share. Same-store revenue growth guidance remained 0.25%-2.25%, with same-store expense growth of 3.00%-4.50% and same-store NOI ranging from a decline of 1.00% to growth of 1.25%.
UDR also announced a change in dividend payment frequency from quarterly to monthly, beginning with the dividend payable in July 2026. The board declared second-quarter 2026 common dividends of $0.145 per share per month (totaling $0.435 for the quarter), implying an annualized dividend of $1.74 per share. The company positioned the shift as a way to align distributions with the timing of rental receipts and broaden appeal to investors seeking more frequent cash distributions.
UDR’s Zacks Rank
Currently, UDR carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Dominion Realty Trust, Inc. Price, Consensus and EPS Surprise
United Dominion Realty Trust, Inc. price-consensus-eps-surprise-chart | United Dominion Realty Trust, Inc. Quote
Performance of Other Residential REITs
Essex Property Trust Inc. (ESS - Free Report) reported first-quarter 2026 core FFO per share of $4.06, beating the Zacks Consensus Estimate of $3.96 by 2.5%. The figure improved 2.3% from $3.97 in the year-ago quarter.
Results reflected favorable growth in same-property NOI and higher occupancy.
AvalonBay Communities (AVB - Free Report) reported first-quarter 2026 core FFO per share of $2.83, surpassing the Zacks Consensus Estimate of $2.80.
AVB’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI.
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.