3Q 2026 preliminary
Filed Oct 21, 2026UDR, Inc. raises full-year 2026 guidance ranges and provides preliminary third quarter 2026 results
Preliminary 3Q 2026 FFOA per diluted share reached the high end of prior guidance, same-store revenue and NOI grew year over year, and full-year FFOA guidance was raised. GAAP net income per diluted share materially exceeded prior guidance, supported by a reported net gain on sales of depreciable real estate.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| 3Q 2026 Net Income per diluted share | $0.13 to $0.15 per diluted share | $0.67 | above |
| 3Q 2026 FFOA per diluted share | $0.63 to $0.65 per diluted share | $0.65 | in line |
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income attributable to common stockholders, quarter ended September 30, 2026GAAP | $214.9M | – | – |
| Net income attributable to common stockholders, nine months ended September 30, 2026GAAP | $471.3M | – | – |
| Net income per diluted share, 3Q 2026 preliminaryGAAP | $0.67 | – | – |
| Net income per diluted share, YTD 2026 through 3Q 2026 preliminaryGAAP | $1.45 | – | – |
| FFO attributable to common stockholders and unitholders, diluted, quarter ended September 30, 2026non-GAAP | $214.3M | – | – |
| FFO attributable to common stockholders and unitholders, diluted, nine months ended September 30, 2026non-GAAP | $645.2M | – | – |
| FFO per weighted average common share and unit, diluted, quarter ended September 30, 2026non-GAAP | $0.62 | – | – |
| FFO per weighted average common share and unit, diluted, nine months ended September 30, 2026non-GAAP | $1.85 | – | – |
| FFO as Adjusted attributable to common stockholders and unitholders, diluted, quarter ended September 30, 2026non-GAAP | $224.8M | – | – |
| FFO as Adjusted attributable to common stockholders and unitholders, diluted, nine months ended September 30, 2026non-GAAP | $664.5M | – | – |
| FFO as Adjusted per weighted average common share and unit, diluted, 3Q 2026 preliminarynon-GAAP | $0.65 | – | – |
| FFO as Adjusted per weighted average common share and unit, diluted, YTD 2026 through 3Q 2026 preliminarynon-GAAP | $1.90 | – | – |
| Same-store revenue growth, 3Q 2026 preliminaryother | 1.8% | – | 1.8% |
| Same-store revenue growth, YTD 2026 through 3Q 2026 preliminaryother | 1.6% | – | 1.6% |
| Same-store expense growth, 3Q 2026 preliminaryother | 2.2% | – | 2.2% |
| Same-store expense growth, YTD 2026 through 3Q 2026 preliminaryother | 3.2% | – | 3.2% |
| Same-store NOI growth, 3Q 2026 preliminaryother | 1.6% | – | 1.6% |
| Same-store NOI growth, YTD 2026 through 3Q 2026 preliminaryother | 0.8% | – | 0.8% |
| Weighted average physical occupancy, 3Q 2026 preliminaryother | 96.5% | – | – |
| Weighted average physical occupancy, YTD 2026 through 3Q 2026 preliminaryother | 96.6% | – | – |
| Effective blended lease rate growth, 3Q 2026 preliminaryother | 2.0% | – | – |
| Effective blended lease rate growth, YTD 2026 through 3Q 2026 preliminaryother | 2.2% | – | – |
| Net gain on the sale of depreciable real estate owned, net of tax, quarter ended September 30, 2026GAAP | −$190.1M | – | – |
| Net gain on the sale of depreciable real estate owned, net of tax, nine months ended September 30, 2026GAAP | −$383.2M | – | – |
| Total impact of adjustments to FFO, quarter ended September 30, 2026non-GAAP | $10.51M | – | – |
| Total impact of adjustments to FFO, nine months ended September 30, 2026non-GAAP | $19.29M | – | – |
| Total assets, September 30, 2026GAAP | $10.30B | – | – |
| Total liabilities, September 30, 2026GAAP | $6.37B | – | – |
| Redeemable noncontrolling interests in the OP and DownREIT Partnership, September 30, 2026GAAP | $799.2M | – | – |
| Total equity, September 30, 2026GAAP | $3.13B | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
4Q 2026 and Full-Year 2026 updated outlook outlook
- RevenueFull-Year 2026 same-store revenue growth: 1.4% to 1.8%
- Operating expensesFull-Year 2026 same-store expense growth: 2.7% to 3.1%
- Note4Q 2026 forecasted net income per diluted share: $0.13 to $0.15
- Note4Q 2026 forecasted FFO per diluted share and unit: $0.63 to $0.65
- Note4Q 2026 forecasted FFO as Adjusted per diluted share and unit: $0.63 to $0.65
- NoteFull-Year 2026 forecasted net income per diluted share: $1.58 to $1.60
- NoteFull-Year 2026 forecasted FFO per diluted share and unit: $2.48 to $2.50
- NoteFull-Year 2026 forecasted FFO as Adjusted per diluted share and unit: $2.54 to $2.56
- NoteFull-Year 2026 same-store NOI growth: 0.8% to 1.2%
Capital returns
- Common-stock dividends of $0.145 per common share per month, payable November 2, 2026, November 30, 2026, and December 31, 2026.
- Sold two apartment communities, with a combined 412 apartment homes, for gross proceeds of $183.0 million.
- Remains under contract to sell a 296-home apartment community for gross proceeds totaling approximately $68.5 million.
- Contributed a 360-home apartment community to the LaSalle Investment Management joint venture and received approximately $103.2 million in cash proceeds.
What drove it
- Same-store revenue grew 1.8% year over year in 3Q 2026 preliminary, while same-store expense grew 2.2% and same-store NOI grew 1.6%.
- Weighted average physical occupancy was 96.5% and effective blended lease rate growth was 2.0% in 3Q 2026 preliminary.
- The reconciliation reported a net gain on the sale of depreciable real estate owned, net of tax, of $(190,069) for the quarter ended September 30, 2026.
- Same-store metrics exclude 19 communities totaling 7,059 apartment homes that are expected to be contributed to the joint venture with Apollo.
- The Company stated that Net Income, FFO and FFOA per share for all 2026 periods and guidance are unaffected by the Apollo transaction.
Concerns
- The Company stated that its Quarterly Report on Form 10-Q and the related review by its independent registered public accounting firm are not complete.
- Preliminary results are unaudited and subject to adjustments that could be material as the Company finalizes its results and completes review procedures.
- Same-store expense growth of 2.2% exceeded same-store revenue growth of 1.8% in 3Q 2026 preliminary.
- YTD 2026 through 3Q same-store NOI growth was 0.8%, compared with 1.6% in 3Q 2026 preliminary.
What to watch
- Final 3Q 2026 earnings results scheduled for November 2, 2026.
- The affiliated webcast and conference call scheduled for November 3, 2026 at 12:00 p.m. Eastern Time.
- Completion of the expected formation of the $2.0 billion strategic partnership with Apollo.
- Execution of the apartment-community sale under contract for gross proceeds totaling approximately $68.5 million.
- Full-Year 2026 same-store revenue growth guidance of 1.4% to 1.8%, expense growth guidance of 2.7% to 3.1%, and NOI growth guidance of 0.8% to 1.2%.
Balance sheet and cash flow
- Total assets were $10,301,216 at September 30, 2026, compared with $10,605,674 at December 31, 2025.
- Total liabilities were $6,373,451 at September 30, 2026, compared with $6,456,911 at December 31, 2025.
- Total equity was $3,128,571 at September 30, 2026, compared with $3,288,797 at December 31, 2025.
- Acquired a 483-home apartment community in Inland Empire, CA, and a 286-home apartment community in Portland, OR, for an incremental cash outlay of $235.0 million based on a combined property valuation of $354.4 million.
- Received a full repayment of approximately $29.5 million on a Preferred Equity investment in a stabilized apartment community in Orlando.
Analysis
UDR reported preliminary 3Q 2026 net income per diluted share of $0.67, above the previously provided guidance range of $0.13 to $0.15 per diluted share. The reported reconciliation includes a net gain on the sale of depreciable real estate owned, net of tax, of $(190,069) for the quarter. FFO per diluted share was $0.62, unchanged from $0.62 in the prior-year quarter, while FFO as Adjusted per diluted share was $0.65, unchanged from $0.65 and at the high end of prior guidance.
Same-store operating performance showed positive top-line and NOI growth. Same-store revenue growth was 1.8% in 3Q 2026 preliminary, same-store expense growth was 2.2%, and same-store NOI growth was 1.6%. Weighted average physical occupancy was 96.5%, and effective blended lease rate growth was 2.0%. For YTD 2026 through 3Q, same-store revenue growth was 1.6%, expense growth was 3.2%, and NOI growth was 0.8%.
The Company raised full-year 2026 guidance for net income per diluted share to $1.58 to $1.60 from $1.03 to $1.11 and raised FFOA per diluted share to $2.54 to $2.56 from $2.49 to $2.57. Full-year FFO guidance was updated to $2.48 to $2.50 from $2.47 to $2.55. Updated full-year same-store guidance calls for revenue growth of 1.4% to 1.8%, expense growth of 2.7% to 3.1%, and NOI growth of 0.8% to 1.2%.
Capital allocation included $183.0 million of gross proceeds from two property sales, an incremental cash outlay of $235.0 million for two communities acquired through liquidation of prior Debt and Preferred Equity joint-venture interests, and approximately $103.2 million of cash proceeds from a contribution to the LaSalle Investment Management joint venture. The Company also received approximately $29.5 million from repayment of a Preferred Equity investment. Monthly common-stock dividends were declared at $0.145 per common share.
The reported results remain preliminary, unaudited, and subject to potentially material adjustments. Same-store metrics exclude 19 communities expected to be contributed to the Apollo joint venture. The Company stated that Net Income, FFO and FFOA per share for all 2026 periods and guidance are unaffected by the Apollo transaction, while operating comparisons have been adjusted to exclude those communities.
Not in the filing
stated, not guessed- Total revenue and segment revenue were not reported.
- GAAP gross margin, operating income, operating margin, and tax rate were not reported.
- Cash balance, debt balance, operating cash flow, and free cash flow were not reported.
- Share repurchases were not reported.
- Prior-quarter comparisons were not reported for the operating metrics.
- Named executive quotes were not included in the filing text.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.