UDR Lifts 2026 Net Income Outlook Alongside Apollo Partnership Announcement

The Tip Desk · October 27, 2026 · 4 min read

Preliminary third-quarter net income is expected at $0.67 a share, well above the $0.13 to $0.15 range the company had set.

UDR, Inc. (UDR), a multifamily real estate investment trust, said it expects preliminary third-quarter net income of $0.67 a share, well above the $0.13 to $0.15 range it had previously provided, and raised its full-year 2026 net income guidance midpoint by $0.52 to $1.59.

The update came alongside the company’s announcement of a $2.0 billion strategic partnership with Apollo covering 19 communities totaling 7,059 apartment homes. Net income, FFO and FFOA per share for all 2026 periods and guidance, the company said, are unaffected by the Apollo transaction.

Preliminary FFOA for the quarter ended September 30, 2026 is expected at $0.65 a share, the high end of the prior $0.63 to $0.65 range. Full-year 2026 FFOA guidance now sits at $2.54 to $2.56 a share, compared with the prior $2.49 to $2.57 range; the midpoint rose by $0.02, from $2.53 to $2.55. FFO guidance for the full year is $2.48 to $2.50 a share. Fourth-quarter net income is still expected at $0.13 to $0.15 a share, FFO at $0.63 to $0.65, and FFOA at $0.63 to $0.65.

Same-store results, excluding the 19 communities slated for the Apollo joint venture, showed a modest operating turn. Year-over-year same-store revenue growth was 1.8% in the third quarter, matching the second quarter after 0.9% growth in the first quarter. Same-store expense growth slowed to 2.2% from 2.6% in the second quarter, after 4.4% in the first quarter. Same-store NOI growth was 1.6% in the third quarter versus 1.4% in the second quarter, after a 0.8% decline in the first quarter. Full-year 2026 same-store NOI guidance midpoint rose 37.5 basis points to 1.0%.

Preliminary weighted average physical occupancy was 96.5% and effective blended lease rate growth was 2.0% for the third quarter, on the same-store basis that excludes the Apollo portfolio. Including those communities, occupancy would have been 96.6% and lease-rate growth 1.7%.

GAAP net income attributable to common stockholders for the quarter ended September 30, 2026 was $214.9 million, or $0.67 a share, versus $39.2 million a year earlier. Diluted FFO was $0.62 a share. Diluted FFOA was $0.65 a share. The net gain on the sale of depreciable real estate, net of tax, was $190.1 million in the quarter.

During the quarter the company sold two apartment communities in Seattle and Nashville, 412 homes combined, for gross proceeds of $183.0 million, and remains under contract to sell a 296-home community in the Washington, D.C. area for about $68.5 million. It acquired a 483-home community in Inland Empire, California, and a 286-home community in Portland, Oregon, upon liquidation of prior Debt and Preferred Equity joint ventures, for an incremental cash outlay of $235.0 million on a combined valuation of $354.4 million. It expanded its LaSalle joint venture to about $958.3 million by contributing a 360-home Nashville community and receiving about $103.2 million in cash, and received a full repayment of about $29.5 million on a preferred equity investment in Orlando.

Under the Apollo deal, Apollo-managed funds will invest $1.34 billion of equity for an approximate two-thirds interest. UDR will retain a one-third interest and consolidate the joint venture, continuing to operate the portfolio for an asset management fee. The company said the transaction is expected to imply a capitalization rate of about 6.0% for a portfolio with average revenue per home of $2,058 and an age of 39 years. UDR will retain an option to repurchase Apollo’s interest at an expected 7.00% to 7.50% fixed return for a finite period starting at the fifth anniversary of closing. Chief Financial Officer Dave Bragg said the company expects the transaction to be accretive to earnings and intends to deploy proceeds into higher-growth assets and other general corporate purposes, including debt reduction. The transaction is expected to close on October 29, 2026, subject to documentation and customary closing conditions.

The board declared common dividends of $0.145 a share per month with record dates in October, November and December 2026. Final third-quarter results are scheduled for November 2, 2026.