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Key Takeaways UDR is expected to post modest revenue growth, while adjusted FFO per share may edge lower year over year.UDR expects higher NOI, strong occupancy and share repurchases to support sequential FFO growth.UDR continues to benefit from improving coastal markets, while weaker Sunbelt pricing remains a risk. UDR Inc. (UDR - Free Report) , a premier multifamily real estate investment trust (REIT), is set to announce its second-quarter 2026 results after the closing bell on July 27. Its quarterly results are likely to reflect growth in revenues but a dip in funds from operations (FFO) per share.

In the last reported quarter, this Denver, CO-based residential REIT came up with an FFO as adjusted per share of 62 cents, in line with the Zacks Consensus Estimate. Results reflected year-over-year growth in rental rates, while expense growth weighed on same-store net operating income (NOI).

In the last four quarters, UDR’s FFO as adjusted per share met the Zacks Consensus Estimate on two occasions and surpassed it on the other two, the average surprise being 1.60%. The graph below depicts the surprise history of the company:

As we approach the release of UDR's second-quarter 2026 earnings report, it is important to examine how this residential REIT is likely to have performed amid the current market conditions.

US Apartment Market in Q2The U.S. multifamily market entered the second half of 2026 with a clearer recovery taking shape, as strong renter demand and a rapidly shrinking supply pipeline began translating into lower vacancy and improving rent growth.

According to a Cushman & Wakefield report, net absorption reached roughly 124,600 units, up from 83,500 units in the first quarter and 8% above the prior year, making it the fifth-strongest quarter in nearly 25 years. The supply picture also became more favorable. Approximately 88,000 units were delivered during the quarter, down 27% year over year. Around 475,000 units remained under construction at quarter-end, equal to just 3.5% of existing inventory.

Improving demand and slowing supply pushed the national vacancy rate down 35 basis points quarter over quarter to 8.9%, its first move below 9% since 2024. On a trailing four-quarter basis, absorption of approximately 362,000 units exceeded deliveries of about 358,000 units for the first time since early 2022, indicating vacancy is likely to have passed its cyclical peak. The recovery was particularly pronounced in previously overbuilt markets: Austin; Charleston, SC; Savannah, GA; Huntsville, AL; Salt Lake City, UT, and Colorado Springs recorded some of the largest quarterly vacancy declines.

Rent growth remains modest but is beginning to improve. National asking rents reached approximately $1,945 per month, up 1.5% year over year, compared with 1.1% growth in the first quarter. The Bay Area led the recovery, with San Francisco rents rising 13%, San Jose 7% and the East Bay 4.8%. Norfolk, Toledo, Reno and Boise also posted strong gains.

High-supply markets remained softer, with rents still declining in Austin and Sarasota, although the pace of those declines moderated as excess supply was absorbed. Overall, the market appears to be shifting from stabilization into an occupancy-led recovery, with broader rent growth likely as the construction pipeline continues to shrink.

Factors to Consider Ahead of UDR’s Upcoming ResultsUDR enters second-quarter 2026 results with operating trends largely on plan. Management expects blended lease rate growth of 1.5% to 2% and occupancy in the mid-96% range, with April performance still near the first-quarter level of 1.6%. Coastal markets remain the main growth driver, with San Francisco and New York showing the strongest rent gains, while Dallas continues to improve.

Renewals should remain supportive, with offers running around 5% to 5.5% and signed renewals expected within roughly 100 basis points of that range. Record resident retention and lower turnover should help protect occupancy, reduce operating costs and support cash flow. However, some Sunbelt markets, particularly Florida and Nashville, softened in April and could limit upside.

For earnings, UDR guided second-quarter adjusted FFO to $0.62-$0.64 per share, with the midpoint of $0.63 implying about 2% sequential growth. The improvement is expected to come from higher NOI and accretion from share repurchases funded by asset sales. Overall, the quarter should show steady revenue growth, solid occupancy and better sequential earnings, though expense pressure and weaker Sunbelt pricing remain key risks.

Projections for UDRAmid these, we expect occupancy to stay elevated at 96.7%, a 10-basis-point improvement sequentially. We estimate same-store revenues to grow 1.2% year over year for the second quarter.

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $425.19 million. This indicates a marginal year-over-year rise.

Before the second-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO as adjusted per share has remained unrevised at 62 cents over the past three months, suggesting a 1.56% decrease year over year.

Here Is What Our Quantitative Model Predicts for UDROur proven model does not conclusively predict a surprise in terms of core FFO per share for UDR this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

UDR currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a LookHere are two stocks from the broader REIT sector — SL Green Realty (SLG - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.

SL Green is slated to report quarterly numbers on July 22. SLG has an Earnings ESP of +7.20% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present.

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.

Verizon, KeyCorp, Regions Financial, and Kinder Morgan currently meet the 'dogcatcher' ideal, with dividends from $1,000 invested exceeding their share prices. Analyst projections suggest top-ten Barron's Better Bets dividend dogs could deliver average net gains of 21.92% by March 2027, with lower-than-market volatility. Four BBB stocks - LyondellBasell, Federal Realty, Williams Companies, and Entergy -show negative free cash flow margins, rendering their dividends unsafe.

Elme Communities (NYSE: ELME - Get Free Report) and United Dominion Realty Trust (NYSE: UDR - Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations. Analyst Ratings This is a breakdown

DENVER--(BUSINESS WIRE)--UDR, Inc. (the “Company”) (NYSE: UDR), a leading multifamily real estate investment trust, announced today that it was recognized as a 2026 Top Workplace by USA Today and Energage, based on a variety of aspects that measure workplace culture and engagement. This follows UDR's separate recognitions as a Top Workplaces winner in the Real Estate Industry in 2024 and 2025 as well as a 2025 Top Workplace Colorado. “This recognition belongs to our more than 1,400 associates w.

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Key Takeaways AVB and peers saw Q1 absorb nearly 93,300 units, one of the strongest first quarters in a decade.EQR had 96.5% occupancy in late February and expects apartment supply in its markets to drop 35% in 2026.UDR projected Q1 blended lease growth of 1.5%-2%, with renewals above 5% and concessions easing. Residential REITs are heading into the first-quarter 2026 reporting season with a steadier backdrop than they faced a year ago. Labor markets are still creating enough jobs to support household formation, and investors are watching for signs that apartment fundamentals are finally moving past the worst of the supply wave. This does not mean the setup is easy. Property owners are still balancing softer pricing power, elevated concessions and a renter base that remains value-conscious.

This makes the upcoming reports from AvalonBay Communities (AVB - Free Report) , Equity Residential (EQR - Free Report) , Essex Property Trust (ESS - Free Report) and UDR Inc. (UDR - Free Report) especially important. Together, these companies offer a broad read on the apartment market, spanning dense coastal regions, suburban infill markets and key Sun Belt territories.

Their results should help investors judge whether improving demand is becoming strong enough to push through the drag from concessions and lingering new supply pressure. In other words, this group should highlight a useful first look at how apartment owners are really starting 2026.

One-Month Price Performance

Image Source: Zacks Investment Research

Demand Is Rebounding, Supply Is No Longer WorseningThe early read from the broader apartment market is encouraging. RealPage report noted that the U.S. absorbed nearly 93,300 units in the first quarter, one of the strongest first-quarter demand readings of the past decade. That was a notable turnaround from the net move-outs seen at the end of 2025. Even so, the annual demand figure of just more than 303,000 units still sits below the decade average, which says recovery is underway but not yet strong enough to declare a full return to normal leasing conditions.

Just as important, supply is no longer worsening. RealPage estimated that roughly 367,000 units were completed in the year-ending first quarter, including about 75,200 units during the quarter itself. This was the fifth straight quarter of declining annual supply after deliveries peaked above 589,000 units in late 2024. For apartment landlords, this is a meaningful shift. It suggests the industry is gradually moving away from peak competitive pressure, even though a large amount of recently delivered products is still being leased up across many markets.

Tension between better demand and still-heavy competition is showing up in rents and occupancy. RealPage said that apartment occupancy was 94.9% in the first quarter, up 10 basis points from the prior quarter but still below the year-ago level. Effective asking rents rose 0.4% after two quarterly declines, yet it remained 0.5% below the prior-year mark. Concessions also stayed widespread, with 25.5% of apartments offering them and the average concession at 7.2%, showing that owners are still leaning on incentives to protect occupancy.

The weakest rent trends remain in high-supply Sun Belt markets. Austin, Denver and Phoenix posted some of the deepest annual rent cuts, while San Antonio, Tampa, FL, Nashville, TN, and Las Vegas also lost momentum. In contrast, San Francisco, San Jose, CA, and New York showed rent growth, helped by easing supply pressure and better demand. Several Midwest markets, including Chicago, St. Louis, MO, and Cleveland, OH, also posted steady gains because new supply has been more limited.

How Are Residential REITs Placed Ahead of Q1 Earnings?AvalonBay Communities: AVB has established itself as a leading player in the residential REIT sector, with a strong portfolio of high-quality apartment communities. The company's geographic diversification, focus on both suburban and urban properties and disciplined capital allocation have positioned it favorably.

AvalonBay appears positioned to report a quarter defined more by steady execution than breakout growth. In its late-February business update, the company said that portfolio physical occupancy increased 20 basis points from December to February. It also said that like-term effective rent change improved by 100 basis points, moving from a 0.5% decline in January to a 0.5% gain in February.

AvalonBay is set to announce its first-quarter 2026 earnings on April 27, after market close. The Zacks Consensus Estimate of $770.57 million for first-quarter revenues indicates a 3.31% year-over-year increase. However, the Zacks Consensus Estimate for the quarterly core FFO per share has been revised 3 cents south to $2.80 over the past two months. It implies a year-over-year decline of 1.06%. (Read more: What to Expect From AvalonBay Communities Stock in Q1 Earnings?)

AVB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Equity Residential: EQR boasts a portfolio of high-quality apartment units in some of the key markets of the United States with an affluent tenant base. It has an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin.

Equity Residential entered first-quarter 2026 with solid fundamentals, including 96.5% occupancy in late February, improving December-January pricing and declining concessions. EQR expects apartment supply in its markets to drop 35% in 2026, with greater second-half benefits. Strong retention, low turnover and renewal increases near 4.5% should support high occupancy. The quarter likely marked a steady start, with stronger momentum building later.

Equity Residential is slated to report first-quarter 2026 results after the closing bell on April 28. Currently, the Zacks Consensus Estimate for the company’s quarterly revenues stands at $782.5 million, which indicates a 2.86% increase year over year. For the first quarter of 2026, the company projected normalized FFO per share in the band of 94-98 cents. The consensus mark for quarterly normalized FFO per share is pegged at 96 cents, suggesting 1.05% year-over-year growth. EQR currently has a Zacks Rank of 3. (Read more: What's in Store for Equity Residential Stock in Q1 Earnings?)

Essex Property Trust: This residential REIT’s substantial exposure to the West Coast market has offered ample scope to enhance its top line. The West Coast is home to several innovation and technology companies that drive job creation and income growth. This region has higher median household incomes, an increased percentage of renters than owners and favorable demographics. Due to the high cost of homeownership, the transition from renter to homeowner is difficult, making renting apartment units a more flexible and viable option.

Essex Property Trust entered first-quarter 2026 with steady fundamentals, supported by improving West Coast trends and easing supply. Management expects demand to remain stable, with new housing supply across its markets down about 20% this year. February and March renewals tracked in the low to mid-4% range. Northern California continues recovering, Los Angeles is stabilizing, and Seattle should benefit from lower supply and return-to-office trends.

Essex Property Trust is scheduled to report its first-quarter 2026 results on April 28, after market close. The Zacks Consensus Estimate of $480.63 million for first-quarter revenues calls for a 3.46% increase year over year. For first-quarter 2026, Essex Property projected core FFO per share in the range of $3.89-$4.01, with the midpoint being $3.95. The consensus mark for quarterly core FFO per share has remained unrevised in the past month at $3.96. It indicates a year-over-year marginal decline of 0.25%. ESS has a Zacks Rank of 3. (Read more: Essex Property to Report Q1 Earnings: Here's What to Expect)

UDR: This residential REIT stands in a strong position to capitalize on its well-diversified portfolio, which includes a balanced mix of high-quality Class A and B properties across coastal and Sunbelt markets. Steady rental housing demand in these regions, supported by favorable demographic shifts, should work to its advantage. The company’s use of technology to streamline operations and boost margins strengthens its long-term growth outlook.

UDR’s March presentation projected first-quarter blended lease growth of 1.5%-2% for the first quarter, about double last year, with renewal growth above 5% and offers at 5%-6%. Occupancy held in the mid-96% range, concessions eased, and turnover fell 200 basis points through Feb. 9. San Francisco, New York and Dallas outperformed, supporting modest same-store revenue growth.

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $427.13 million. This indicates a 1.74% year-over-year rise. UDR expected first-quarter 2026 FFO as adjusted per share in the range of 61-63 cents. While the consensus mark for quarterly FFO as adjusted per share has remained unrevised at 62 cents in the past month, it suggests a 1.64% increase year over year. UDR has a Zacks Rank of 4 (Sell).

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.

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Monthly Dividend Aligns with UDR’s Cash Flow to Deliver More Frequent Cash Distributions to Shareholders

DENVER--(BUSINESS WIRE)--UDR, Inc. (NYSE: UDR), a leading multifamily real estate investment trust, today announced that its Board of Directors has approved an increase in the frequency of the Company’s common stock dividend payment from quarterly to monthly.

“UDR’s strategic pivot in dividend policy is consistent with our effort to expand access to capital,” said Tom Toomey, UDR’s Chairman, President, and Chief Executive Officer. “Our time-tested business of attracting apartment residents, collecting rents, managing expenses, and providing dividends to shareholders lends itself to a monthly distribution, which is appealing to a wide variety of investors, including retail. In addition, as the first residential REIT to offer monthly dividends, our responsiveness to growing interest in monthly cash distributions from institutional capital is emblematic of UDR’s culture of innovation. We are proud of our dividend payment history, which includes approximately $9 billion in dividends over 53 years. UDR has increased its dividend by 142% over the last 16 years, and we look forward to creating further shareholder value.”

The Company’s planned monthly dividend schedule, commencing with the dividend payable in July 2026, will have a record date on or around the fifteenth day of each month and will be payable on the last business day of each month.

Accordingly, the Company’s Board of Directors declared dividends on its common stock for the second quarter of 2026 in the amount of $0.145 per share per month, payable in cash on the payment dates set forth in the following table to UDR common stock shareholders of record as of the close of business on the corresponding record date in the following table. The monthly dividend reflects an annualized dividend amount of $1.74 per share of common stock which equates to an annualized dividend yield of approximately 5 percent based on the closing price of UDR’s common stock as of April 28, 2026. The dividends paid for the second quarter of 2026 will reflect the 215th consecutive quarter of dividends paid by the Company on its common stock.

Record Date

Payment Date

Amount

July 17, 2026

July 31, 2026

$0.145 per common share

August 17, 2026

August 31, 2026

$0.145 per common share

September 15, 2026

September 30, 2026

$0.145 per common share

Total Dividends for 2Q 2026

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$0.435 per common share

The Company’s Board of Directors also declared a regular quarterly dividend on its Series E preferred stock for the second quarter of 2026 in the amount of $0.471 per share. The preferred dividend is payable on July 31, 2026, to Series E preferred stockholders of record as of July 17, 2026. The quarterly dividend reflects an annualized dividend amount of $1.884 per share of Series E preferred stock.

About UDR, Inc.

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of March 31, 2026, UDR owned or had an ownership position in 59,782 apartment homes, including 300 apartment homes under development. For over 53 years, UDR has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates. Additional information can be found on the Company’s refreshed Investor Relations website at ir.udr.com.

More News From UDR, Inc.

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UDR (UDR - Free Report) came out with quarterly funds from operations (FFO) of $0.62 per share, in line with the Zacks Consensus Estimate . This compares to FFO of $0.61 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an FFO surprise of -0.59%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.64 per share when it actually produced FFO of $0.64, delivering no surprise.

Over the last four quarters, the company has surpassed consensus FFO estimates two times.

UDR, which belongs to the Zacks REIT and Equity Trust - Residential industry, posted revenues of $423.32 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.89%. This compares to year-ago revenues of $419.84 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.

UDR shares have lost about 1.3% since the beginning of the year versus the S&P 500's gain of 4.3%.

What's Next for UDR?While UDR has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.

Ahead of this earnings release, the estimate revisions trend for UDR was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.64 on $429.25 million in revenues for the coming quarter and $2.53 on $1.72 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Residential is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, UMH Properties (UMH - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.

This real estate investment trust is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -8.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

UMH Properties' revenues are expected to be $65.84 million, up 7.6% from the year-ago quarter.

Key Takeaways UDR reported Q1 FFOA of 62 cents, in line with estimates and up from 61 cents last year.UDR saw rent gains, but higher expenses drove a slight decline in same-store NOI.UDR sold assets, boosted buybacks and will shift to monthly dividends starting July 2026. UDR, Inc. (UDR - Free Report) reported first-quarter 2026 funds from operations as adjusted (FFOA) of 62 cents per share, in line with the Zacks Consensus Estimate. This also compared favorably with the prior-year quarter’s reported figure of 61 cents.

The quarter reflected rental rate gains, while expense growth weighed on same-store NOI.

Rental income of $423.32 million rose marginally year over year but came in below the consensus mark of $427.13 million.

UDR’s Same-Store Results Show Expense-Led NOI PressureSame-store revenues increased marginally from the year-ago quarter on a straight-line basis, supported by gains across several coastal markets. However, same-store expenses climbed 4.4%, pushing same-store NOI down marginally year over year and underscoring the impact of elevated operating costs.

Total revenues increased marginally year over year to $425.8 million, as growth from same-store and acquired communities more than offset the drag from dispositions. Joint venture management and other fees also contributed, supporting the modest top-line expansion.

Same-store effective blended lease rate increased 1.6% during the quarter, with the effective new lease rate dropping 2.4%. The effective renewal lease rate grew 5.2%.

The residential REIT’s weighted average same-store physical occupancy of 96.6% decreased 60 basis points (bps) year over year and 30 bps sequentially. Our estimate was pegged at 96.8%.

UDR Executes Asset Sales, Steps Up BuybacksUDR continued to lean on portfolio recycling and share repurchases. During the quarter, the company completed the sale of four apartment communities totaling 1,159 homes for gross proceeds of $362.0 million. It also received approximately $138.9 million from the full repayment of two debt and preferred equity investments.

On the capital return front, UDR repurchased about 2.8 million shares at a weighted average price of $36.27 for roughly $100.0 million during the quarter. After quarter-end, it repurchased an additional 1.4 million shares at a weighted average price of $35.01 for about $50.0 million, bringing repurchases since September 2025 to approximately $268.0 million.

UDR’s Balance Sheet Holds Liquidity Above $1 BillionUDR ended the quarter with approximately $1.1 billion of liquidity through cash and available capacity on its credit facilities. Total indebtedness was about $5.7 billion, carrying a weighted average interest rate of 3.4% and a weighted average maturity of 4.3 years, reflecting the benefits of a largely fixed-rate profile.

Leverage and coverage metrics remained supportive for an investment-grade multifamily REIT. Consolidated net debt-to-EBITDAre (adjusted for non-recurring items) was 5.6X, and consolidated fixed charge coverage (adjusted) measured 4.8X. The company also highlighted limited near-term maturities, with $355.0 million maturing through the rest of 2026, including principal amortization.

UDR Updates 2026 View, Shifts to Monthly DividendsFor second-quarter 2026, UDR guided FFOA per share to a range of 62-64 cents. The Zacks Consensus Estimate is currently pegged at 64 cents.

For full-year 2026, the company maintained its FFOA outlook of $2.47-$2.57 per share. Same-store revenue growth guidance remained 0.25%-2.25%, with same-store expense growth of 3.00%-4.50% and same-store NOI ranging from a decline of 1.00% to growth of 1.25%.

UDR also announced a change in dividend payment frequency from quarterly to monthly, beginning with the dividend payable in July 2026. The board declared second-quarter 2026 common dividends of $0.145 per share per month (totaling $0.435 for the quarter), implying an annualized dividend of $1.74 per share. The company positioned the shift as a way to align distributions with the timing of rental receipts and broaden appeal to investors seeking more frequent cash distributions.

UDR’s Zacks RankCurrently, UDR carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Residential REITsEssex Property Trust Inc. (ESS - Free Report) reported first-quarter 2026 core FFO per share of $4.06, beating the Zacks Consensus Estimate of $3.96 by 2.5%. The figure improved 2.3% from $3.97 in the year-ago quarter.

Results reflected favorable growth in same-property NOI and higher occupancy.

AvalonBay Communities (AVB - Free Report) reported first-quarter 2026 core FFO per share of $2.83, surpassing the Zacks Consensus Estimate of $2.80.

AVB’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI.

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.

UDR Inc (UDR) Q1 2026 Earnings Call Highlights: Strong Resident Retention and Strategic Capital Allocation UDR Inc (UDR) reports robust renewal rate growth and liquidity, while navigating expense challenges and market pressures. Summary

Same-Store Revenue Growth: Positive 90 basis points year-over-year.Blended Lease Rate Growth: 1.6% for the first quarter.Occupancy Rate: Mid-96% range.Renewal Rate Growth: 5.2%, 70 basis points higher than the previous year.Same-Store Expense Growth: 4.4%, impacted by winter storms.First Quarter FFO as Adjusted per Share: $0.62, at the midpoint of guidance.Second Quarter FFOA per Share Guidance: $0.62 to $0.64.Asset Sales Proceeds: $362 million from four apartment communities.Share Repurchases: $150 million in the first quarter, totaling $268 million since September.Liquidity: More than $1 billion available.

Release Date: April 30, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points UDR Inc UDR reported first quarter results in line with expectations, driven by strong execution in operations and capital allocation.Resident retention is at an all-time high, contributing to a 5.2% renewal rate growth, which is significantly higher than the previous year.The company has transitioned to a monthly dividend, becoming the first residential REIT to do so, aiming to attract high net worth investors and family offices.UDR Inc (UDR) successfully sold four assets and used the proceeds for share repurchases and acquiring a new asset, enhancing capital allocation efficiency.The company maintains a strong liquidity position with over $1 billion available, supporting its strategic initiatives and capital needs. Negative Points Same-store expense growth was elevated at 4.4% due to winter storms, impacting overall financial performance.The Sunbelt markets experienced a slight retreat in lease rate growth, with some markets showing negative trends.The debt and preferred equity portfolio size has declined, reflecting a more competitive market and fewer opportunities for new deployments.Regulatory risks, such as proposed rent control measures in Massachusetts, pose potential challenges to UDR Inc (UDR)'s operations.The company faces competitive pressures from larger peers, which could impact its market positioning and data advantages. Q & A Highlights Q: In terms of occupancy, do you expect to drive it higher in the back half of the year, or have you adjusted your full-year occupancy targets based on market conditions?
A: Michael Lacy, Chief Operating Officer: We typically let occupancy come down in the second and third quarters when we have more demand and traffic, allowing us to be more aggressive on rents. We expect to maintain around 96.5% through July and August, possibly inching it up by 10 or 20 basis points later in the year.

Q: Can you talk about April trends, specifically new, renewal, and blended rate growth, and any markets that stand out?
A: Michael Lacy, Chief Operating Officer: We are pleased with the start of the year, with blended lease rate growth at 1.6%, the highest among peers. Coastal regions, making up 75% of our NOI, saw 3.1% blends in April, an acceleration from 2.8% in Q1. Sunbelt markets showed positive momentum from Q4 to Q1 but retreated slightly in April. We continue to focus on total revenue and cash flow growth.

Q: Could you discuss the debt and preferred equity book and future payoffs?
A: David Bragg, Chief Financial Officer: Our debt and preferred equity (DPE) book has been a long-standing business, allowing us to earn income and gain asset access. We expect the DPE balance to decline to around $300 million by year-end due to successful repayments and competitive market conditions. We prioritize stock repurchases given their attractive valuation.

Q: Are there any trends this spring between A versus B properties or urban versus suburban?
A: Michael Lacy, Chief Operating Officer: The West Coast is performing better than the East Coast and Sunbelt. In San Francisco, urban A properties are doing well, while in Boston, suburban B assets are less impacted than urban A. Performance varies by market, but we have strong performers in each region.

Q: How do you view potential development opportunities, and would you start development on land parcels soon?
A: David Bragg, Chief Financial Officer: We have a couple of existing sites adjacent to operating assets that fit our criteria. These are stick-build or podium developments with expected returns above 6%. We may activate these to deliver into a less competitive supply environment in 2027 and 2028.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

DENVER--(BUSINESS WIRE)--UDR, Inc. (NYSE: UDR), a leading multifamily real estate investment trust, today announced that its Board of Directors has authorized increasing its share repurchase program by 25 million shares, effective immediately. This increase gives the Company the ability to repurchase a total of approximately 30 million shares, which equates to more than $1 billion at current share price levels.

Share repurchases under this program may be made from time to time in open-market purchases, in block purchases, in privately negotiated transactions or otherwise as determined by the Company. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, and other market conditions. The share repurchase program does not have an expiration date and may be terminated at any time without prior notice.

Forward-Looking Statements

Certain statements made in this press release may constitute “forward-looking statements.” Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “outlook,” “guidance,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, general market and economic conditions, unfavorable changes in the apartment market and economic conditions that could adversely affect occupancy levels and rental rates, the impact of inflation/deflation on rental rates and property operating expenses, the availability of capital and the stability of the capital markets, the impact of tariffs, geopolitical tensions, conflicts and wars, government shutdowns, and changes in immigration, elevated interest rates, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule or at expected rent and occupancy levels, changes in job growth, home affordability and demand/supply ratio for multifamily housing, development and construction risks that may impact profitability, risks that joint ventures with third parties and Debt and Preferred Equity Program investments do not perform as expected, the failure of automation or technology to help grow net operating income, and other risk factors discussed in documents filed by the Company with the SEC from time to time, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the U.S. securities laws.

About UDR, Inc.

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of March 31, 2026, UDR owned or had an ownership position in 59,782 apartment homes, including 300 apartment homes under development. For over 53 years, UDR has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates. Additional information can be found on the Company’s refreshed Investor Relations website at ir.udr.com.

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