UDR lifts 2026 outlook on preliminary Q3 results
UDR, Inc. (NYSE: UDR) has increased its projected earnings for the full year 2026, citing preliminary third-quarter performance that surpassed earlier estimates. The revision comes alongside the company's separate…
UDR, Inc. (NYSE: UDR) has increased its projected earnings for the full year 2026, citing preliminary third-quarter performance that surpassed earlier estimates. The revision comes alongside the company's separate disclosure of a planned $2.0 billion partnership with Apollo.
For the quarter ending September 30, 2026, the company projects Net Income per diluted share at $0.67, a marked rise from its previous forecast of $0.13 to $0.15. Funds From Operations as Adjusted (FFOA) per diluted share is expected to hit $0.65, the top of the prior $0.63 to $0.65 range. UDR also set a new outlook for the fourth quarter and adjusted its annual targets upward.
The revised full-year 2026 guidance for Net Income per diluted share is now $1.58 to $1.60, with a midpoint of $1.59, reflecting a $0.52 increase over the prior midpoint. Full-year FFOA per diluted share guidance moved to $2.54 to $2.56, a midpoint of $2.55, up slightly from the previous estimate by $0.02. Conversely, full-year FFO per diluted share guidance shifted modestly downward to $2.48 to $2.50, with a midpoint of $2.49, down $0.02 from the prior outlook.
| Metric (per diluted share) | Prior Full-Year 2026 Outlook | Updated Full-Year 2026 Outlook | Change in Midpoint |
|---|---|---|---|
| Net Income | $1.03 to $1.11 | $1.58 to $1.60 | +$0.52 |
| FFO | $2.47 to $2.55 | $2.48 to $2.50 | -$0.02 |
| FFOA | $2.49 to $2.57 | $2.54 to $2.56 | +$0.02 |
Preliminary operating metrics for the third quarter indicate year-over-year same-store revenue growth of 1.8% and expense growth of 2.2%, driving same-store net operating income (NOI) growth of 1.6%. Weighted average physical occupancy reached 96.5%, while effective blended lease rate growth was 2.0%. These figures exclude the 19 communities part of the Apollo joint venture; including those properties, same-store revenue growth would have been 1.5% and NOI growth 1.0% for the quarter.
During the third quarter, UDR executed several capital allocation moves affecting its portfolio and cash flow. The company sold two apartment communities in Seattle and Nashville, totaling 412 homes, for gross proceeds of $183.0 million. It remains under contract to sell a 296-home community in the Metropolitan Washington, D.C., area for approximately $68.5 million in gross proceeds.
Additionally, UDR acquired a 483-home community in Inland Empire, California, and a 286-home community in Portland, Oregon, as part of the runoff of its Debt and Preferred Equity portfolio. These acquisitions required an incremental cash outlay of $235.0 million based on a combined property valuation of $354.4 million.
The company also expanded its joint venture with LaSalle Investment Management to approximately $958.3 million by contributing a 360-home Nashville community, receiving approximately $103.2 million in cash proceeds in return. UDR further collected roughly $29.5 million from the complete liquidation of its preferred equity stake in an Orlando apartment community.