UDR Inc. (UDR Quick QuoteUDR - Free Report) , a premier multifamily real estate investment trust (REIT), is set to announce its third-quarter 2026 results after the closing bell on Nov. 2. Its quarterly results are likely to reflect a dip in revenues and funds from operations (FFO) per share.

In the last reported quarter, this Denver, CO-based residential REIT came up with an FFO as adjusted per share of 64 cents, surpassing the Zacks Consensus Estimate of 63 cents. The quarter benefited from stronger leasing, steady occupancy and better-than-expected same-store results.

In the last four quarters, UDR’s FFO as adjusted per share met the Zacks Consensus Estimate on two occasions and surpassed it twice, the average surprise being 1.19%. 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

As we approach the release of UDR's third-quarter 2026 earnings report, it is important to examine how this residential REIT is likely to have performed amid the current market conditions.

US Apartment Market in Q3

The U.S. multifamily residential market continues to recover, supported by strong rental demand, declining supply and improving occupancy. According to Cushman & Wakefield’s third-quarter 2026 report, national multifamily vacancy declined 30 basis points sequentially to 8.6%, its lowest level in three years. Net absorption reached nearly 350,000 units during the first nine months of 2026, up 14% year over year, reflecting resilient renter demand.

Meanwhile, new apartment deliveries declined 25% year over year to approximately 250,000 units, while the construction pipeline fell to its lowest level since 2015. Annual asking rent growth accelerated to 2.3% in the third quarter from 1.1% in the first quarter, with average monthly rents reaching $1,950. High financing costs are slowing new developments, supporting a gradual recovery across Sunbelt markets.

Factors to Consider Ahead of UDR’s Upcoming Results

UDR enters its third-quarter 2026 earnings release with operating trends largely on track. Preliminary results indicate same-store revenue growth of 1.8% and net operating income (NOI) growth of 1.6%, supported by blended lease rate growth of 2% and occupancy of 96.5%. Same-store expense growth remained contained at 2.2%, reflecting continued operating efficiencies and cost controls.

Coastal markets are expected to remain the primary growth drivers, with San Francisco and New York benefiting from strong rental demand and limited new supply. Healthy renewal pricing and lower resident turnover should continue to support occupancy and aid cash flow. However, supply-related pricing pressure across Sunbelt markets, particularly Nashville and Florida, could constrain rental growth despite signs of improvement.

For earnings, UDR expects third-quarter adjusted FFO of 65 cents per share at the high end of its previous guidance of 63-65 cents, up from 64 cents in the preceding quarter. On Oct. 21, 2026, management also raised its full-year adjusted FFO outlook to $2.54-$2.56 per share from previously guided $2.49-$2.57 and increased its same-store NOI growth guidance to 0.8%-1.2% from the previously guided range of flat to 1.25% growth.

Projections for UDR

We expect UDR’s occupancy to be 96.5%, a 10-basis-point sequential decline. We estimate same-store revenues to grow 1% year over year for the third quarter.

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $427.47 million. This indicates a marginal year-over-year fall.

Before the third-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO, adjusted per share, has remained unrevised at 64 cents over the past three months, suggesting a 1.54% year-over-year decrease.

Here Is What Our Quantitative Model Predicts for UDR

Our proven model does not conclusively predict a surprise in terms of core 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 -0.52%. 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, Innovative Industrial Properties (IIPR Quick QuoteIIPR - Free Report) and Summit Hotel Properties (INN Quick QuoteINN - Free Report) , which you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.

Innovative Industrial Properties is slated to report quarterly numbers on Nov. 2. IIPR has an Earnings ESP of +1.64% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Summit Hotel Properties is slated to report quarterly numbers on Nov. 3. INN has an Earnings ESP of +0.96% and a Zacks Rank of 2 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.