UDR forms $2 billion apartment joint venture with Apollo and raises 2026 guidance

UDR is bringing in Apollo as a two-thirds partner in 19 of its apartment communities, in a joint venture that values the portfolio at about $2.0 billion, the multifamily real estate investment trust said Wednesday.

Apollo-managed funds will put $1.34 billion of equity into the new venture, according to UDR's 8-K. UDR will keep about a one-third interest, continue to manage the 7,059 apartment homes for a fee and consolidate the venture on its books.

The deal implies a capitalization rate of about 6.0%. UDR will also have an option, starting five years after closing, to buy back Apollo's stake at an expected 7.00% to 7.50% fixed return.

Use of proceeds

UDR said it expects the transaction to add to earnings and plans to use the money for higher-growth assets, debt reduction and general corporate purposes. "Access to equity capital is one of UDR's strategic priorities," Chairman and Chief Executive Tom Toomey said.

The deal is expected to close on Oct. 29, subject to final documents and customary conditions.

Preliminary results and guidance

UDR also gave preliminary third-quarter results. Funds from operations as adjusted, a key REIT profit measure, came in at $0.65 a share, the top of its guidance range. Net income per share is expected to be $0.67, well above prior guidance of $0.13 to $0.15. The quarter included $190.1 million of net gains on property sales, according to the release.

The company raised its 2026 FFOA guidance to $2.54 to $2.56 a share, lifting the midpoint by 2 cents to $2.55. It now expects same-store net operating income growth of 0.8% to 1.2%, excluding the communities in the Apollo venture.

By the numbers

• Portfolio value: about $2.0 billion
• Apollo equity: $1.34 billion for about a two-thirds stake
• Implied cap rate: about 6.0%
• Q3 FFOA (preliminary): $0.65 a share
• 2026 FFOA guidance: $2.54 to $2.56

Sources

1. UDR, Inc., Form 8-K (Items 2.02, 7.01) with Exhibit 99.1 (guidance and preliminary results) and Exhibit 99.2 (Apollo partnership press release), filed Oct. 21, 2026, accession 0000074208-26-000081

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