Key Highlights

  • Net income was USD 0.67 per share versus USD 0.12, while FFO as Adjusted was USD 0.65 per share, unchanged.
  • Same-store Revenue grew 1.8%, expenses grew 2.2% and net Operating Income grew 1.6%, excluding the Apollo communities.
  • The company closed a USD 2.0 billion Partnership with Apollo and received USD 1.34 billion of Equity capital.
  • Full-year FFO as Adjusted guidance moved to USD 2.54 to USD 2.56 per share from USD 2.49 to USD 2.57.

Quarter in Numbers

UDR, Inc. (NYSE:UDR), an apartment real estate Investment trust, reported third-quarter 2026 Net Income of USD 0.67 per diluted share compared with USD 0.12, FFO of USD 0.62 per share (flat) and FFO as Adjusted of USD 0.65 per share (flat). For the nine months, net income was USD 1.45 per share versus USD 0.46, FFO was USD 1.85 versus USD 1.81, and FFO as Adjusted was USD 1.90, unchanged.

Same-store revenue rose 1.8% year over year and 0.8% sequentially, expenses rose 2.2% and 2.9%, and net operating income rose 1.6% year over year but slipped 0.1% sequentially. Year to date, same-store revenue rose 1.6%, expenses 3.2% and net operating income 0.8%. These figures exclude the 19 communities in the Apollo venture; including them, net operating income growth would be 1.0% for the quarter. Total revenue fell USD 3.8 million, or 0.9%, from the prior year.

Apollo Partnership and Capital Activity

The company closed its USD 2.0 billion strategic partnership with Apollo, contributing 19 apartment communities with 7,059 homes at an approximate 6.0% Capitalization Rate to a new joint venture. It received USD 1.34 billion of equity capital, kept about a one-third interest, continues to manage the portfolio for an asset management fee, and holds an option to repurchase Apollo's interest at a 7.0% target internal rate of return starting at the fifth anniversary. Chairman, president and chief executive Tom Toomey said the partnership expands access to capital, reduces Leverage and improves the quality of the wholly owned portfolio.

Through October the company repurchased about 5.2 million shares at a weighted average price of USD 35.48, or about USD 185.1 million, leaving about 20.3 million shares under the program. Since resuming repurchases in September 2025 it has bought about 16.7 million shares at USD 36.06 for about USD 603.2 million.

Dispositions and Debt and Preferred Equity

It sold two communities in Seattle and Nashville, 412 homes, for gross proceeds of USD 183.0 million and is under contract to sell a 396-home community in the Washington, D.C. area for about USD 69.0 million. It expanded its joint venture with LaSalle Investment Management to about USD 958.3 million, receiving about USD 103.2 million in cash.

The runoff of the debt and preferred equity portfolio continued. The company acquired a 286-home community in Portland for USD 74.7 million of incremental cash on a valuation of USD 104.3 million, and a 483-home community in the Inland Empire for USD 160.3 million on a valuation of USD 250.1 million, with a 237-home community to follow in the first half of 2027. The portfolio balance is projected near USD 250.0 million at year end, and a USD 29.5 million Orlando preferred investment was repaid in full.

Guidance Ranges and Capital Markers

The updated full-year ranges are net income of USD 1.58 to USD 1.60 per share, FFO of USD 2.48 to USD 2.50 and FFO as Adjusted of USD 2.54 to USD 2.56, with same-store revenue growth of 1.4% to 1.8%, expense growth of 2.7% to 3.1% and net operating income growth of 0.8% to 1.2%. Fourth-quarter FFO as Adjusted is guided to USD 0.63 to USD 0.65. Items to track include sequential net operating income, pace of repurchases relative to the share price, completion of debt and preferred equity exits and use of Apollo proceeds.