UDR Raises 2026 Profit Outlook After Apollo Venture Brings In $1.34 Billion
The apartment landlord also bought back about 5.2 million shares through October and lifted its full-year cash-earnings range.
UDR, the apartment landlord, raised its 2026 forecasts for net income and adjusted cash earnings on Monday, after closing a joint venture with Apollo that brought in $1.34 billion of equity capital. Most of the jump in profit guidance traces to property sales, not operations.
Guidance moves, with a sales gain underneath
UDR now expects full-year net income of $1.58 to $1.60 per diluted share, up from $1.03 to $1.11. Its guidance for FFO as adjusted, the cash-earnings measure REITs use, moved to $2.54 to $2.56 from $2.49 to $2.57. Fourth-quarter guidance for that measure is $0.63 to $0.65.
Third-quarter net income was $0.67 per diluted share against $0.12 a year earlier. The financial supplement shows a $190.1 million gain on real estate sales in the quarter, while FFO as adjusted held flat at $0.65.
Same-store revenue, measured excluding the Apollo communities, grew 1.8% from a year earlier and expenses rose 2.2%. CEO Tom Toomey said operations and FFO as adjusted "exceeded our expectations and drove our second guidance raise of 2026."
What Apollo bought, and what UDR kept
UDR, a real estate investment trust that owns and manages apartment communities across the United States, put 19 communities with 7,059 homes into the venture, valued at roughly a 6.0 percent capitalization rate. The deal is worth $2.0 billion.
UDR keeps about a one-third interest, continues to manage the portfolio for an asset management fee, and holds an option to buy back Apollo's stake at a 7.0 percent target return for a finite period starting at the fifth anniversary of closing. Toomey said the partnership reduces leverage and positions UDR to pursue new investments.
Buybacks, sales and a lending runoff
Through the end of October UDR repurchased about 5.2 million shares at a weighted average $35.48, for roughly $185.1 million, leaving about 20.3 million shares authorized. Since resuming buybacks in September 2025 it has bought about 16.7 million shares for roughly $603.2 million, at an average $36.06.
It sold two communities in Seattle and Nashville for $183.0 million and is under contract to sell a 396-home Washington, D.C.-area community for about $69.0 million. It also took ownership of a 286-home Portland community and a 483-home Southern California community while winding down its debt and preferred equity lending book, and agreed to buy a 237-home community in the first half of 2027.
Total debt was $5.8 billion at the end of September at a 3.45 percent average rate.
UDR hosts its third-quarter webcast and conference call at 12:00 p.m. Eastern on November 3.
Sources
- 8-K Filing — UDR, Inc. (UDR) — SEC EDGAR
- Exhibit udr-ex99d1.htm — UDR, Inc. 8-K exhibit — SEC EDGAR
- Exhibit udr-ex99d2.htm — UDR, Inc. 8-K exhibit — SEC EDGAR
- UDR, Inc. Announces Third Quarter 2026 Results and Raises Full-Year 2026 Guidance Ranges — businesswire.com
