UDR Holds Q3 FFOA at $0.65 a Share, Narrows 2026 Guidance
UDR raised its full-year guidance for the second time this year on Monday after third-quarter funds from operations as adjusted came in at $0.65 per share, flat with a year earlier, and the apartment REIT closed its $2.0 billion partnership with Apollo.
The Denver-based landlord now expects 2026 FFOA of $2.54 to $2.56 per diluted share, up 2 cents at the midpoint from its prior $2.49 to $2.57 range, according to its 8-K. It narrowed FFO guidance to $2.48 to $2.50, a 2-cent cut at the midpoint, and lifted its net income outlook to $1.58 to $1.60 per share from $1.03 to $1.11.
"Third quarter operational results and FFOA per diluted share exceeded our expectations and drove our second guidance raise of 2026," Chairman and CEO Tom Toomey said.
The quarter
Net income was $0.67 per diluted share, up from $0.12 a year earlier. FFO was $0.62 per share, unchanged from a year ago. Total revenue slipped 0.9% to $428.1 million from $431.9 million, as gains from same-store and acquired communities were offset by properties the company sold.
Same-store revenue rose 1.8% from a year earlier, expenses climbed 2.2% and net operating income grew 1.6%. The West, UDR's largest region at 37.2% of same-store NOI, led with 3.9% NOI growth, while the Southeast posted a 2.2% decline. Same-store occupancy averaged 96.5%.
UDR also raised its full-year same-store targets. It now sees revenue growth of 1.4% to 1.8% and NOI growth of 0.8% to 1.2%, and it lowered its expense growth range to 2.7% to 3.1%. For the fourth quarter, it guided FFOA to $0.63 to $0.65 per share.
Apollo deal and buybacks
UDR contributed 19 apartment communities with 7,059 homes to a new joint venture with Apollo and received $1.34 billion of equity capital. It kept an estimated one-third interest, the company said, will keep managing the properties for a fee and holds an option to buy back Apollo's stake starting at the fifth anniversary of closing. Toomey said the deal reduces leverage and expands the company's access to capital.
Through the end of October, UDR repurchased an estimated 5.2 million shares at a weighted average price of $35.48, for an estimated $185.1 million, the company said. It also sold communities in Seattle and Nashville with 412 homes for $183.0 million.
Dividend and balance sheet
The board's previously declared monthly dividends of $0.145 per share for October through December total $0.435, a 1.2% increase from the same period of 2025, for an annualized rate of $1.74. Total debt stood at $5.8 billion at Sept. 30 with a weighted average interest rate of 3.45%.
By the numbers
- $0.65 FFOA per share, flat year over year
- $2.54 to $2.56 raised 2026 FFOA guidance
- $0.67 net income per share, up from $0.12
- 1.6% same-store NOI growth
- $1.34 billion of equity received from Apollo
- $1.74 annualized dividend
Sources
- UDR Form 8-K with third-quarter 2026 results, filed Nov. 2, 2026 (accession 0000074208-26-000084)
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