UDR reports Q2 2026 results, raises full-year guidance, repurchases $200M in shares

UDR reported Q2 2026 net income of $0.21 per share, FFO of $0.60 per share, and FFOA of $0.64 per share. The company raised full-year 2026 guidance: net income to $1.03-$1.11 per share (midpoint $1.07, up $0.11), FFOA to $2.49-$2.57 per share (midpoint $2.53, up $0.01), same-store revenue growth to 0.75%-2.00% (midpoint 1.375%, up 12.5 basis points), and same-store NOI growth to 0.00%-1.25% (midpoint 0.625%, up 50 basis points). Management cited leasing strength tracking ahead of expectations, economic resiliency, waning supply, and attractive apartment affordability.

UDR expanded its share repurchase authorization to approximately 30 million shares and repurchased approximately 5.5 million shares in Q2 2026 at a weighted average price of $36.49 per share for total consideration of approximately $200.3 million. Since September 2025, the company has repurchased approximately 11.5 million shares at a weighted average price of $36.32 per share for total consideration of approximately $418.0 million, with approximately 25.5 million shares remaining under the program.

UDR commenced a monthly common stock dividend beginning in July 2026. The Board declared Q2 2026 dividends of $0.145 per share per month (totaling $0.435 per share for the quarter), representing a 1.2 percent increase over Q2 2025 and reflecting an annualized dividend of $1.74 per share. The September 2026 dividend will be the company's 217th consecutive dividend.

UDR commenced development of 4848 at Alex West, a 385-unit community in Northern Virginia, with expected total cost of $181.3 million ($471,000 per unit). The company also formed a joint venture with a new partner following MetLife's sale of its 50% interest in Columbus Square (710 units in New York); UDR's 50% interest and economics remain unchanged, and UDR funded a $50.0 million mezzanine loan to the new partner at an 8.0 percent effective return.

UDR reported second-quarter 2026 FFO of $0.60 per diluted share and unit, and net income attributable to common stockholders of $67.8 million ($0.21 per diluted share). The company also reported FFO as Adjusted of $0.64 per share, which excludes $13.3 million in legal costs, casualty-related charges, and other non-recurring items.

UDR's same-store portfolio (52,426 homes across 156 communities) posted 1.8% revenue growth and 2.6% expense growth in Q2 2026, resulting in 1.4% NOI growth. Physical occupancy stood at 96.6%. For the first half of 2026, same-store revenue grew 1.3%, expenses grew 3.5%, and NOI grew 0.3%.

UDR recognized gains of $35.7 million in Q2 2026 and $193.1 million year-to-date from asset sales. The company raised its full-year 2026 disposition guidance to $400–$750 million (at share) from $300–$600 million, and increased its acquisition guidance to $130–$300 million from $100–$200 million. The company also raised full-year FFO as Adjusted guidance by $0.01 at the midpoint to $2.49–$2.57 per share.

UDR raised its full-year 2026 same-store guidance: revenue growth to 0.75%–2.00% (from 0.25%–2.25%), expense growth lowered to 2.75%–3.75% (from 3.00%–4.50%), and NOI growth to 0%–1.25% (from -1.00% to 1.25%). The midpoint improvements reflect better-than-expected expense control and revenue trends.

UDR's balance sheet metrics as of June 30, 2026 show an interest coverage ratio of 5.2x (unchanged year-over-year), fixed charge coverage of 5.0x (down from 5.1x), debt-to-total-assets of 32.7% (up from 32.4%), and net debt-to-EBITDAre of 5.6x (up from 5.5x). Total debt was $5.8 billion, with 88.1% fixed-rate and a weighted average interest rate of 3.31%.