UDR, Inc. Announces Second Quarter 2026 Results and Raises Full-Year 2026 Guidance Ranges
DENVER--(BUSINESS WIRE)--UDR, Inc. (the “Company”) (NYSE: UDR), announced today its second quarter 2026 results. Net Income, Funds from Operations (“FFO”), and FFO as Adjusted (“FFOA”) per diluted share for the quarter and year-to-date periods ended June 30, 2026, are detailed below.
Metric | Quarter Ended June 30 | Year-to-Date Ended June 30 | ||
2026 | 2025 | 2026 | 2025 | |
Net Income per diluted share | $0.21 | $0.11 | $0.79 | $0.34 |
FFO per diluted share | $0.60 | $0.61 | $1.23 | $1.19 |
FFOA per diluted share | $0.64 | $0.64 | $1.25 | $1.25 |
Same-Store (“SS”) results for the second quarter 2026 versus the second quarter 2025 and the first quarter 2026 as well as year-to-date 2026 versus year-to-date 2025 are summarized below.
SS Growth / (Decline) |
Year-Over-Year (“YOY”):
|
Sequential:
|
Year-to-Date (YTD) YOY:
|
Revenue | 1.8% | 1.4% | 1.3% |
Expense | 2.6% | (3.9)% | 3.5% |
Net Operating Income (“NOI”) | 1.4% | 4.0% | 0.3% |
“Leasing strength in 2026 is tracking ahead of our initial expectations, resulting in second quarter results that exceeded our prior guidance. As a result, we have raised our full-year guidance ranges for Same-Store growth and FFOA per diluted share,” said Tom Toomey, UDR’s Chairman, President, and CEO. “The resiliency of the economy, waning supply, and attractive relative affordability of apartments position UDR for continued success. Following 50+ years of dividend growth and stability totaling $9 billion of payments, we look forward to paying our first monthly dividend this week.”
Outlook(1)
As shown in the table below, the Company has established the following guidance ranges for the third quarter of 2026, raised its previously provided full-year 2026 guidance ranges for Net Income, FFOA per diluted share, and Same-Store Growth, and updated its previously provided full-year 2026 guidance range for FFO per diluted share.
Metric, per
|
|
2Q 2026
|
|
YTD 2026
|
|
3Q 2026
|
|
Prior
|
|
Updated
|
|
Full-Year 2026
|
| Net Income | $0.21 |
| $0.79 |
| $0.13 to $0.15 |
| $0.91 to $1.01 |
| $1.03 to $1.11 |
| $1.07 (+$0.11) | |
| FFO | $0.60 |
| $1.23 |
| $0.63 to $0.65 |
| $2.48 to $2.58 |
| $2.47 to $2.55 |
| $2.51 (-$0.02) | |
| FFOA | $0.64 |
| $1.25 |
| $0.63 to $0.65 |
| $2.47 to $2.57 |
| $2.49 to $2.57 |
| $2.53 (+$0.01) | |
| YOY Growth: |
|
|
|
|
|
|
|
|
|
|
| |
| SS Revenue | 1.8% |
| 1.3% |
| N/A |
| 0.25% to 2.25% |
| 0.75% to 2.00% |
| 1.375% (+12.5bps) | |
| SS Expense | 2.6% |
| 3.5% |
| N/A |
| 3.00% to 4.50% |
| 2.75% to 3.75% |
| 3.25% (-50bps) | |
| SS NOI | 1.4% |
| 0.3% |
| N/A |
| (1.00)% to 1.25% |
| 0.00% to 1.25% |
| 0.625% (+50bps) |
(1) | Additional assumptions for the Company’s third quarter and full-year 2026 outlook can be found on Attachment 13 of the Company’s related quarterly Supplemental Financial Information (“Supplement”). A reconciliation of GAAP Net Income per diluted share to FFO per diluted share and FFOA per diluted share can be found on Attachment 14(D) of the Company’s related quarterly Supplement. Non-GAAP financial measures and other terms, as used in this earnings release, are defined and further explained on Attachments 14(A) through 14(D), “Definitions and Reconciliations,” of the Company’s related quarterly Supplement. |
Capital Allocation Activity
Leveraging the Company’s collaborative and data-driven approach to capital allocation, during the quarter and subsequent to quarter-end, the Company,
- As previously reported, expanded its share repurchase program to approximately 30 million shares and repurchased approximately 5.5 million shares of its common stock at a weighted average share price of $36.49 for total consideration of approximately $200.3 million. Following this share repurchase activity, the Company has approximately 25.5 million shares remaining for repurchase under its program. Since recommencing share repurchases in September 2025, the Company has repurchased approximately 11.5 million shares of its common stock at a weighted average share price of $36.32 for total consideration of approximately $418.0 million.
- Sold a 206-apartment home community in Nashville, TN, that was originally constructed in 1977 for gross proceeds of $41.5 million. Additionally, the Company is under contract to sell three apartment communities with a combined 808 apartment homes for gross proceeds totaling approximately $252.5 million. These transactions are expected to close in the third and fourth quarters of 2026. Should these pending sales close as anticipated, the Company’s 2026 disposition activity would total approximately $656.0 million.
- Acquired three apartment home communities with a combined 584 apartment homes upon the liquidation of the Company’s interests in previous Debt and Preferred Equity joint ventures; two of these communities are located in Portland, OR, and a third is located in Los Angeles, CA.
- Commenced development of 4848 at Alex West, a 385-apartment home community in Northern Virginia, with an expected total development cost of $181.3 million, or $471,000 per apartment home. This second phase development is located adjacent to an existing UDR apartment community, which the Company expects should drive unique operating efficiencies.
- Formed a joint venture with a new partner in conjunction with MetLife’s sale of its 50 percent joint venture interest in Columbus Square, an assemblage of apartment communities in New York, NY, totaling 710 apartment homes. UDR’s 50% joint venture interest in Columbus Square is unchanged, as are its joint venture economics. Concurrent with the transaction, the Company fully funded a $50.0 million mezzanine loan investment to the new joint venture partner at an effective return rate of 8.0 percent.
Operating Results
In the second quarter, total revenue was flat YOY, as revenue increases attributable to growth from Same-Store and acquired communities was offset by the removal of revenue from properties that were sold.
“Second quarter Same-Store revenue, expense, and NOI growth exceeded our expectations, driven by blended lease rate growth above the high-end of our previously provided guidance range of 1.5 percent to 2.0 percent, occupancy remaining in the mid-96 percent range with annualized resident retention achieving a seasonally adjusted all-time high of 60 percent, and mid-single-digit year-over-year innovation income growth,” said Mike Lacy, UDR’s Chief Operating Officer.
In the tables below, the Company has presented YOY, sequential, and YTD Same-Store results by region.
Summary of Same-Store Results in the Second Quarter 2026 versus the Second Quarter 2025
Region |
Revenue
|
Expense
|
NOI
|
% of Same-Store
|
Physical
|
YOY Change
|
West | 3.7% | 3.7% | 3.7% | 32.4% | 96.8% | (0.2)% |
Northeast | 3.0% | 2.3% | 3.4% | 20.2% | 97.0% | (0.2)% |
Mid-Atlantic | 1.6% | 3.5% | 0.6% | 19.0% | 96.6% | (0.3)% |
Southeast | (1.0)% | 1.0% | (2.0)% | 12.5% | 96.3% | (0.1)% |
Southwest | (1.0)% | 1.1% | (2.2)% | 10.9% | 96.7% | (0.3)% |
Other Markets | 0.2% | 4.7% | (1.4)% | 5.0% | 96.1% | (0.5)% |
Total / Weighted Average | 1.8% | 2.6% | 1.4% | 100.0% | 96.6% | (0.2)% |
(1) | Based on 2Q 2026 Same-Store NOI. For definitions of terms, please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement. | |
(2) | Weighted average Same-Store physical occupancy for the quarter. |
Summary of Same-Store Results in the Second Quarter 2026 versus the First Quarter 2026
| Region |
Revenue
|
Expense
|
NOI
|
% of Same-Store
|
Physical
|
Sequential
|
West | 1.7% | (8.4)% | 5.7% | 32.4% | 96.8% | (0.1)% |
Northeast | 1.8% | (4.8)% | 5.7% | 20.2% | 97.0% | 0.2% |
Mid-Atlantic | 1.2% | (1.6)% | 2.6% | 19.0% | 96.6% | 0.3% |
Southeast | 0.8% | (1.3)% | 1.9% | 12.5% | 96.3% | 0.1% |
Southwest | 0.8% | (0.4)% | 1.5% | 10.9% | 96.7% | (0.2)% |
Other Markets | 1.8% | (0.8)% | 2.9% | 5.0% | 96.1% | 0.3% |
Total / Weighted Average | 1.4% | (3.9)% | 4.0% | 100.0% | 96.6% | 0.0% |
(1) | Based on 2Q 2026 Same-Store NOI. For definitions of terms, please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement. | |
(2) | Weighted average Same-Store physical occupancy for the quarter. |
Summary of Same-Store Results for YTD 2026 versus YTD 2025
Region |
Revenue
|
Expense
|
NOI |
% of Same-Store
|
Physical
|
YTD YOY
|
West | 3.2% | 5.8% | 2.2% | 32.3% | 96.8% | (0.3)% |
Northeast | 2.5% | 3.5% | 2.0% | 20.1% | 96.9% | (0.4)% |
Mid-Atlantic | 1.1% | 4.2% | (0.4)% | 19.1% | 96.4% | (0.8)% |
Southeast | (1.4)% | 1.8% | (2.9)% | 12.6% | 96.3% | (0.4)% |
Southwest | (1.4)% | 0.1% | (2.3)% | 10.8% | 96.8% | (0.4)% |
Other Markets | (0.1)% | 3.9% | (1.6)% | 5.1% | 96.0% | (0.5)% |
Total / Weighted Average | 1.3% | 3.5% | 0.3% | 100.0% | 96.6% | (0.5)% |
(1) | Based on YTD 2026 Same-Store NOI. For definitions of terms, please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement. | |
(2) | Weighted average Same-Store physical occupancy for YTD 2026. |
Balance Sheet Update
The Company’s total indebtedness as of June 30, 2026, was $5.8 billion at a weighted average interest rate of 3.4 percent, with $328.4 million, or 6.2 percent of total consolidated debt, maturing through the rest of 2026, including principal amortization and excluding amounts on the Company’s line of credit, commercial paper program, and working capital credit facility. As of June 30, 2026, the Company had approximately $885 million in liquidity through a combination of cash and undrawn capacity on its credit facilities. Please see Attachment 13 of the Company’s related quarterly Supplement for additional details regarding investment guidance.
In the table below, the Company has presented select balance sheet metrics for the quarter ended June 30, 2026, and the comparable prior year period.
| Quarter Ended June 30 | ||
Balance Sheet Metric | 2Q 2026 | 2Q 2025 | Change |
Weighted Average Interest Rate | 3.4% | 3.4% | - |
Weighted Average Years to Maturity | 3.9 | 4.7 | (0.8) |
Consolidated Fixed Charge Coverage Ratio | 5.0x | 5.1x | (0.1)x |
Consolidated Debt as a percentage of Total Assets | 32.7% | 32.4% | 0.3% |
Consolidated Net Debt-to-EBITDAre – adjusted for non-recurring items(1) | 5.6x | 5.5x | 0.1x |
(1) | A reconciliation of GAAP Net Income per share to EBITDAre - adjusted for non-recurring items and GAAP Total Debt to Net Debt can be found on Attachment 4(C) of the Company’s related quarterly Supplement. |
Dividend
As previously announced, the Company commenced a monthly common stock dividend beginning in July 2026 and 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 table below to UDR shareholders of record as of the close of business on the corresponding record date in the table below. The dividends declared for the second quarter 2026 amount to $0.435 per share, representing a 1.2 percent increase over the comparable period in 2025, and reflects an annualized dividend amount of $1.74 per share of common stock. The September 2026 dividend will represent the 217th consecutive dividend 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 | - | $0.435 per common share |
Corporate Responsibility
During the quarter, the Company was named a National Top Workplaces winner in the Real Estate Industry for the third consecutive year. This distinction reflects the Company’s ongoing commitment to fostering an innovative culture and engaging associate experience.
Supplemental Financial Information
The Company offers Supplemental Financial Information that provides details on the financial position and operating results of the Company which is available on the Investor Relations section of the Company's website at ir.udr.com.
Attachment 14(A)
Definitions and Reconciliations
June 30, 2026
(Unaudited)
Acquired Communities: The Company defines Acquired Communities as those communities acquired by the Company, other than development and redevelopment activity, that did not achieve stabilization as of the most recent quarter.
Adjusted Funds from Operations ("AFFO") attributable to common stockholders and unitholders: The Company defines AFFO as FFO as Adjusted attributable to common stockholders and unitholders less recurring capital expenditures on consolidated communities and the Company’s proportionate share of recurring capital expenditures on unconsolidated partnerships and joint ventures, that are necessary to help preserve the value of and maintain functionality at our communities.
Management considers AFFO a useful supplemental performance metric for investors as it is more indicative of the Company's operational performance than FFO or FFO as Adjusted. AFFO is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. The Company believes that net income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to AFFO. Management believes that AFFO is a widely recognized measure of the operations of REITs, and presenting AFFO enables investors to assess our performance in comparison to other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not always be comparable to AFFO calculated by other REITs. AFFO should not be considered as an alternative to net income/(loss) (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. A reconciliation from net income/(loss) attributable to common stockholders to AFFO is provided on Attachment 2.
Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items: The Company defines Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items as Consolidated Interest Coverage Ratio - adjusted for non-recurring items divided by total consolidated interest, excluding the impact of costs associated with debt extinguishment, plus preferred dividends.
Management considers Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation of the components that comprise Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure.
Consolidated Interest Coverage Ratio - adjusted for non-recurring items: The Company defines Consolidated Interest Coverage Ratio - adjusted for non-recurring items as Consolidated EBITDAre – adjusted for non-recurring items divided by total consolidated interest, excluding the impact of costs associated with debt extinguishment.
Management considers Consolidated Interest Coverage Ratio - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation of the components that comprise Consolidated Interest Coverage Ratio - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure.
Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items: The Company defines Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items as total consolidated debt net of cash and cash equivalents divided by annualized Consolidated EBITDAre - adjusted for non-recurring items. Consolidated EBITDAre - adjusted for non-recurring items is defined as EBITDAre excluding the impact of income/(loss) from unconsolidated entities, adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures and other non-recurring items including, but not limited to casualty-related charges/(recoveries), net of wholly owned communities.
Management considers Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation between net income/(loss) and Consolidated EBITDAre - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure.
Contractual Return Rate: The Company defines Contractual Return Rate as the rate of return or interest rate that the Company is entitled to receive on a preferred equity investment or loan, as specified in the applicable agreement.
Controllable Expenses: The Company refers to property operating and maintenance expenses as Controllable Expenses.
Development Communities: The Company defines Development Communities as those communities recently developed or under development by the Company, that are currently majority owned by the Company and have not achieved stabilization as of the most recent quarter.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre): The Company defines EBITDAre as net income/(loss) (computed in accordance with GAAP), plus interest expense, including costs associated with debt extinguishment, plus real estate depreciation and amortization, plus other depreciation and amortization, plus (minus) income tax provision/(benefit), (minus) plus net gain/(loss) on the sale of depreciable real estate owned, plus impairment write-downs of depreciable real estate, plus the adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or Nareit, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the Nareit definition, or that interpret the Nareit definition differently than the Company does. The White Paper on EBITDAre was approved by the Board of Governors of Nareit in September 2017.
Management considers EBITDAre a useful metric for investors as it provides an additional indicator of the Company’s ability to incur and service debt, and enables investors to assess our performance against that of its peer REITs. EBITDAre should be considered along with, but not as an alternative to, net income and cash flow as a measure of the Company’s activities in accordance with GAAP. EBITDAre does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs. A reconciliation between net income/(loss) and EBITDAre is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure.
Effective Blended Lease Rate Growth: The Company defines Effective Blended Lease Rate Growth as the combined proportional growth as a result of Effective New Lease Rate Growth and Effective Renewal Lease Rate Growth. Management considers Effective Blended Lease Rate Growth a useful metric for investors as it assesses combined proportional market-level, new and in-place demand trends.
Effective New Lease Rate Growth: The Company defines Effective New Lease Rate Growth as the increase/(decrease) in gross potential rent realized less concessions on a straight-line basis for the new lease term (current effective rent) versus prior resident effective rent for the prior lease term on new leases commenced during the current quarter. Management considers Effective New Lease Rate Growth a useful metric for investors as it assesses market-level new demand trends.
Effective Renewal Lease Rate Growth: The Company defines Effective Renewal Lease Rate Growth as the increase/(decrease) in gross potential rent realized less concessions on a straight-line basis for the new lease term (current effective rent) versus prior effective rent for the prior lease term on renewed leases commenced during the current quarter. Management considers Effective Renewal Lease Rate Growth a useful metric for investors as it assesses market-level, in-place demand trends.
Estimated Quarter of Completion: The Company defines Estimated Quarter of Completion of a development or redevelopment project as the date on which construction is expected to be completed, but it does not represent the date of stabilization.
Attachment 14(B)
Definitions and Reconciliations
June 30, 2026
(Unaudited)
Funds from Operations as Adjusted ("FFO as Adjusted") attributable to common stockholders and unitholders: The Company defines FFO as Adjusted attributable to common stockholders and unitholders as FFO excluding the impact of other non-comparable items including, but not limited to, acquisition-related costs, prepayment costs/benefits associated with early debt retirement, impairment write-downs or gains and losses on sales of real estate or other assets incidental to the main business of the Company and income taxes directly associated with those gains and losses, casualty-related expenses and recoveries, severance costs, software transition related costs and legal and other costs.
Management believes that FFO as Adjusted is useful supplemental information regarding our operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. FFO as Adjusted is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. The Company believes that net income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to FFO as Adjusted. However, other REITs may use different methodologies for calculating FFO as Adjusted or similar FFO measures and, accordingly, our FFO as Adjusted may not always be comparable to FFO as Adjusted or similar FFO measures calculated by other REITs. FFO as Adjusted should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. A reconciliation from net income attributable to common stockholders to FFO as Adjusted is provided on Attachment 2.
Funds from Operations ("FFO") attributable to common stockholders and unitholders: The Company defines FFO attributable to common stockholders and unitholders as net income/(loss) attributable to common stockholders (computed in accordance with GAAP), excluding impairment write-downs of depreciable real estate related to the main business of the Company or of investments in non-consolidated investees that are directly attributable to decreases in the fair value of depreciable real estate held by the investee, gains and losses from sales of depreciable real estate related to the main business of the Company and income taxes directly associated with those gains and losses, plus real estate depreciation and amortization, and after adjustments for noncontrolling interests, and the Company’s share of unconsolidated partnerships and joint ventures.
Contacts
Trent Trujillo
Email: ttrujillo@udr.com
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