UDR Inc, Q3 2026 Earnings Call Transcript

UDR raised its 2026 same-store revenue growth outlook to 1.4%–1.8%, NOI growth to 0.8%–1.2% and adjusted FFO per share to $2.55 after third-quarter results reached the high end of guidance. Management expects fourth-quarter blended rent growth of 1.5%–2% and sees an 80–100 basis-point revenue-growth carryover into 2027. It expects rent growth to accelerate next year without a material improvement in job growth, citing a more favorable supply outlook, high homeownership costs and residents staying in place. Coastal markets led performance, while Sunbelt trends showed some improvement but remained weaker.

The newly closed $2 billion Apollo joint venture provides capital to reduce debt, repurchase shares and pursue acquisitions, and management expects it to be accretive to 2027 FFO, subject to deployment. UDR is also selling older, higher-CapEx communities and prioritizing investments based on projected rent growth, operating potential and capital needs. Management noted that apartment transaction volumes have declined amid higher interest rates, wider bid-ask spreads and lower pricing where deals close.