UDR raises 2026 net income and FFOA guidance, plans $2.0 billion Apollo venture

UDR, Inc. (UDR) raised its full-year 2026 guidance ranges for net income and funds from operations as adjusted (FFOA) per diluted share, and released preliminary results for the third quarter, the company said Wednesday in a filing.

The update came alongside a separate announcement that the company expects to form a $2.0 billion strategic partnership with Apollo, the filing said.

The company said it expects third-quarter net income of $0.67 per diluted share, against prior guidance of $0.13 to $0.15. Third-quarter FFOA per diluted share of $0.65 was at the high end of prior guidance of $0.63 to $0.65.

Here's how the company did:

• Net income per diluted share: $0.67, against prior guidance of $0.13 to $0.15
• FFOA per diluted share: $0.65, the same as a year earlier
• FFO per diluted share: $0.62, the same as a year earlier

The filing does not state total revenue in dollars. Same-store revenue rose 1.8% in the quarter and 1.6% for the first nine months, while same-store net operating income grew 1.6% and 0.8%.

Same-store physical occupancy was 96.5% in the quarter and 96.6% for the first nine months. Effective blended lease rate growth was 2.0% and 2.2%. These same-store figures exclude the 19 communities that will go into the Apollo venture.

For the first nine months, net income was $1.45 per diluted share. FFO was $1.85, up from $1.81 a year earlier. FFOA was $1.90, unchanged from a year earlier.

The company raised its full-year 2026 net income guidance to $1.58 to $1.60 per diluted share, from $1.03 to $1.11. The $1.59 midpoint is up $0.52.

Full-year FFOA guidance is now $2.54 to $2.56 per diluted share, from $2.49 to $2.57 previously. The $2.55 midpoint is up $0.02.

Full-year FFO guidance is $2.48 to $2.50 per diluted share, from $2.47 to $2.55. The $2.49 midpoint is down $0.02.

For the fourth quarter, the company gave net income guidance of $0.13 to $0.15 per diluted share. It gave FFO and FFOA guidance of $0.63 to $0.65 each.

Full-year same-store revenue growth guidance is now 1.4% to 1.8%, from 0.75% to 2.00% previously. Expense growth is guided at 2.7% to 3.1%, from 2.75% to 3.75%. NOI growth is 0.8% to 1.2%, from 0.00% to 1.25%.

The company said its 2026 net income, FFO and FFOA per-share figures and guidance are unaffected by the Apollo transaction.

During the quarter, the company sold two apartment communities, one each in Seattle and Nashville, with 412 apartment homes for $183.0 million in gross proceeds. It remains under contract to sell a 296-home community in the Metropolitan Washington, D.C. area for about $68.5 million in gross proceeds.

The company also 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. The purchases required an incremental $235.0 million in cash, against a combined property valuation of $354.4 million.

UDR expanded its joint venture with LaSalle Investment Management to about $958.3 million by contributing a 360-home community in Nashville. It received about $103.2 million in cash proceeds. It also received a full repayment of about $29.5 million on a Preferred Equity investment in an Orlando community.

UDR and Apollo plan a long-term joint venture covering 19 communities with 7,059 apartment homes, valued at about $2.0 billion. Apollo-managed funds and affiliates will invest $1.34 billion of equity for an approximate two-thirds interest. UDR will keep a one-third interest and consolidate the venture.

UDR will continue to operate and manage the portfolio and will earn an asset management fee. The transaction is expected to imply a capitalization rate of about 6.0%, for a portfolio with average revenue per home of $2,058 and a portfolio age of 39 years.

UDR also has an option to repurchase Apollo's interest at an expected fixed return of 7.00% to 7.50%. The option is for a finite period starting at the fifth anniversary of closing.

UDR Chairman, President, and CEO Tom Toomey said: “With this transaction, we believe we will be positioned to take advantage of compelling opportunities in the marketplace, while improving the quality of our wholly-owned portfolio and strengthening our balance sheet, all in an accretive manner.”

Senior Vice President and Chief Financial Officer David D. Bragg said: “We expect the transaction to be accretive to earnings and intend to deploy the proceeds into higher-growth assets and other general corporate purposes.”

The transaction is expected to close on Oct. 29, 2026, subject to execution of documentation and customary closing conditions. Citigroup Global Markets Inc. and Wells Fargo Securities, LLC acted as structuring agents and financial advisors to UDR. Scotiabank acted as financial advisor to Apollo.

The preliminary results are unaudited. The company said its Form 10-Q and the review by its independent registered public accounting firm are not complete, and the figures are subject to adjustments that could be material.

The company will report final third-quarter results on Nov. 2, 2026, and hold a webcast and conference call at 12:00 p.m. Eastern Time on Nov. 3, 2026.