UDR raises 2026 guidance as third-quarter FFOA tops expectations

UDR said on Nov. 2 it raised its full-year 2026 guidance ranges for net income and FFOA per diluted share, and reported third-quarter results.

Shares were little changed in after-hours trading as of 4:11 p.m. ET, based on the last trade at $35.92 against a regular-session close of $35.93.

The company said third-quarter FFOA was $0.65 per diluted share, compared with $0.65 a year earlier. Net income was $0.67 per diluted share, up from $0.12 a year earlier.

Quarter results

Here's how the company did:

• Net income per diluted share: $0.67 vs. $0.12 a year earlier
• FFOA per diluted share: $0.65 vs. $0.65 a year earlier
• FFO per diluted share: $0.62 vs. $0.62 a year earlier

Same-store revenue rose 1.8% from a year earlier, expenses rose 2.2% and net operating income rose 1.6%.

The company's third-quarter FFOA per share compares with the $0.14 adjusted EPS consensus estimate compiled by Finnhub, and revenue of $428.08 million compares with the $432.92 million revenue estimate compiled by Finnhub.

2026 guidance

UDR raised its full-year FFOA per diluted share forecast to $2.54 to $2.56, from $2.49 to $2.57 previously. It updated its full-year FFO per diluted share range to $2.48 to $2.50, from $2.47 to $2.55.

The company now expects full-year same-store revenue growth of 1.4% to 1.8%, and same-store NOI growth of 0.8% to 1.2%.

Apollo partnership

UDR said it closed its $2.0 billion strategic partnership with Apollo on Oct. 30 by contributing 19 apartment communities totaling 7,059 apartment homes to a new joint venture. UDR received $1.34 billion of equity capital from Apollo and retained an approximate one-third interest.

The company said the transaction strengthens its balance sheet by reducing leverage.

Capital returns

Through the end of October, UDR repurchased about 5.2 million shares at a weighted average price of $35.48, for about $185.1 million. The company has about 20.3 million shares remaining under its program.

The company declared dividends of $0.145 per share per month for October, November and December 2026, totaling $0.435 per share.

Balance sheet

Total indebtedness was $5.8 billion at Sept. 30, at a weighted average interest rate of 3.45%. Liquidity was about $641.6 million.

The company said the Apollo venture will be consolidated within its financial statements.

Tom Toomey, Chairman, President and CEO of UDR, said, "Third quarter operational results and FFOA per diluted share exceeded our expectations and drove our second guidance raise of 2026."

A webcast and conference call is scheduled for 12:00 p.m. ET on Nov. 3.