We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Rental revenues declined 1.1% year over year to $428.08 million but outpaced the consensus mark of $427.47 million. The decrease reflected the impact of property dispositions, partly offset by growth from same-store and acquired communities.
UDR's Same-Store NOI Growth Remains Positive
Same-store revenues increased 1.8% year over year. Same-store NOI rose 1.6% from the prior-year quarter, as operating expenses jumped 2.2% from the previous-year quarter.
The West and Northeast regions led the performance. West same-store revenues and NOI grew 3.9% each, while Northeast revenues increased 2.5%, and NOI advanced 3%. The Southeast and Southwest recorded NOI declines of 2.2% and 0.5%, respectively. These same-store comparisons exclude the communities contributed to UDR's Apollo joint venture.
UDR's Leasing Metrics Reflect Solid Retention
The company reported effective blended lease rate growth of 2%, supported by renewal lease rate growth of 4.1%, while new lease rates declined 1.2%. Same-store physical occupancy was 96.5%, down 20 basis points year over year.
Annualized resident turnover improved to 48% from 51.7% in the year-ago quarter. Management attributed operating strength to sustained occupancy, improved bad debt trends and resident retention. The portfolio comprised 60,617 apartment homes, including 634 under development, at September-end.
UDR Expands Its Strategic Partnership With Apollo
UDR closed its previously announced $2 billion strategic partnership with Apollo after quarter-end, contributing 19 apartment communities comprising 7,059 homes to a joint venture. The transaction generated $1.34 billion in equity proceeds for UDR, which retained approximately one-third ownership.
The company will continue managing the communities and earning asset management fees. Management expects the transaction to strengthen its balance sheet, reduce leverage and provide capital for future investments. UDR also retains an option to repurchase Apollo's interest under specified terms beginning after the fifth anniversary of closing.
UDR Advances Capital Recycling and Buybacks
The company sold two apartment communities in Seattle, WA, and Nashville, TN, comprising 412 homes, for $183 million. It also expanded its LaSalle Investment Management joint venture to approximately $958.3 million by contributing a Nashville community, generating $103.2 million in cash proceeds. Through October, UDR repurchased approximately 5.2 million shares for $185.1 million.
UDR continued reducing its debt and preferred equity investment portfolio. It acquired a 483-home community in California's Inland Empire for an incremental cash investment of $160.3 million and received a $29.5 million preferred equity repayment from an Orlando property.
UDR Maintains Its Debt Coverage and Liquidity
Total indebtedness stood at approximately $5.8 billion as of Sept. 30, 2026, with a weighted average interest rate of 3.45%. Available liquidity was approximately $641.6 million.
Consolidated net debt-to-EBITDAre, adjusted for nonrecurring items, remained at 5.5 times year over year. Fixed-charge coverage improved to 5.0 times from 4.9 times, while consolidated debt represented 32.3% of total assets versus 32.6% a year earlier.
UDR Raises Its 2026 FFOA Outlook
UDR increased its full-year 2026 FFOA guidance to $2.54-$2.56 per share from $2.49-$2.57. The revised midpoint of $2.55 is 2 cents above the previous midpoint. The Zacks Consensus Estimate of $2.53 lies below the updated range. The company projects fourth-quarter FFOA of 63-65 cents per share, with the consensus estimate pegged at 64 cents.
UDR raised its full-year 2026 same-store revenue growth outlook to 1.4%-1.8% from 0.75%-2% and NOI growth guidance to 0.8%-1.2% from 0%-1.25%. It also lowered its same-store expense growth forecast to 2.7%-3.1% from 2.75%-3.75%.
Camden Property Trust (CPT - Free Report) reported third-quarter 2026 core FFO of $1.68 per share, beating the Zacks Consensus Estimate of $1.67. The results reflected resilient occupancy and improving sequential leasing trends.
Invitation Homes Inc. (INVH - Free Report) reported third-quarter 2026 core FFO per share of 48 cents, meeting the Zacks Consensus Estimate. This compares to FFO of 47 cents a year ago. While same-store NOI advanced 1.1%, margin and occupancy dipped marginally.
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.
View the Zacks #1 Rank List
Image: Bigstock
UDR Q3 FFOA Beats Estimates on Leasing Strength, 2026 View Up
Key Takeaways
UDR, Inc. (UDR - Free Report) reported third-quarter 2026 funds from operations as adjusted (FFOA) of 65 cents per share, surpassing the Zacks Consensus Estimate of 64 cents. The figure remained unchanged year over year.
Rental revenues declined 1.1% year over year to $428.08 million but outpaced the consensus mark of $427.47 million. The decrease reflected the impact of property dispositions, partly offset by growth from same-store and acquired communities.
UDR's Same-Store NOI Growth Remains Positive
Same-store revenues increased 1.8% year over year. Same-store NOI rose 1.6% from the prior-year quarter, as operating expenses jumped 2.2% from the previous-year quarter.
The West and Northeast regions led the performance. West same-store revenues and NOI grew 3.9% each, while Northeast revenues increased 2.5%, and NOI advanced 3%. The Southeast and Southwest recorded NOI declines of 2.2% and 0.5%, respectively. These same-store comparisons exclude the communities contributed to UDR's Apollo joint venture.
UDR's Leasing Metrics Reflect Solid Retention
The company reported effective blended lease rate growth of 2%, supported by renewal lease rate growth of 4.1%, while new lease rates declined 1.2%. Same-store physical occupancy was 96.5%, down 20 basis points year over year.
Annualized resident turnover improved to 48% from 51.7% in the year-ago quarter. Management attributed operating strength to sustained occupancy, improved bad debt trends and resident retention. The portfolio comprised 60,617 apartment homes, including 634 under development, at September-end.
UDR Expands Its Strategic Partnership With Apollo
UDR closed its previously announced $2 billion strategic partnership with Apollo after quarter-end, contributing 19 apartment communities comprising 7,059 homes to a joint venture. The transaction generated $1.34 billion in equity proceeds for UDR, which retained approximately one-third ownership.
The company will continue managing the communities and earning asset management fees. Management expects the transaction to strengthen its balance sheet, reduce leverage and provide capital for future investments. UDR also retains an option to repurchase Apollo's interest under specified terms beginning after the fifth anniversary of closing.
UDR Advances Capital Recycling and Buybacks
The company sold two apartment communities in Seattle, WA, and Nashville, TN, comprising 412 homes, for $183 million. It also expanded its LaSalle Investment Management joint venture to approximately $958.3 million by contributing a Nashville community, generating $103.2 million in cash proceeds. Through October, UDR repurchased approximately 5.2 million shares for $185.1 million.
UDR continued reducing its debt and preferred equity investment portfolio. It acquired a 483-home community in California's Inland Empire for an incremental cash investment of $160.3 million and received a $29.5 million preferred equity repayment from an Orlando property.
UDR Maintains Its Debt Coverage and Liquidity
Total indebtedness stood at approximately $5.8 billion as of Sept. 30, 2026, with a weighted average interest rate of 3.45%. Available liquidity was approximately $641.6 million.
Consolidated net debt-to-EBITDAre, adjusted for nonrecurring items, remained at 5.5 times year over year. Fixed-charge coverage improved to 5.0 times from 4.9 times, while consolidated debt represented 32.3% of total assets versus 32.6% a year earlier.
UDR Raises Its 2026 FFOA Outlook
UDR increased its full-year 2026 FFOA guidance to $2.54-$2.56 per share from $2.49-$2.57. The revised midpoint of $2.55 is 2 cents above the previous midpoint. The Zacks Consensus Estimate of $2.53 lies below the updated range. The company projects fourth-quarter FFOA of 63-65 cents per share, with the consensus estimate pegged at 64 cents.
UDR raised its full-year 2026 same-store revenue growth outlook to 1.4%-1.8% from 0.75%-2% and NOI growth guidance to 0.8%-1.2% from 0%-1.25%. It also lowered its same-store expense growth forecast to 2.7%-3.1% from 2.75%-3.75%.
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.
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
Camden Property Trust (CPT - Free Report) reported third-quarter 2026 core FFO of $1.68 per share, beating the Zacks Consensus Estimate of $1.67. The results reflected resilient occupancy and improving sequential leasing trends.
Invitation Homes Inc. (INVH - Free Report) reported third-quarter 2026 core FFO per share of 48 cents, meeting the Zacks Consensus Estimate. This compares to FFO of 47 cents a year ago. While same-store NOI advanced 1.1%, margin and occupancy dipped marginally.
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.