UDR

This article first appeared on GuruFocus. Same-Store Revenue Growth: 1.8% year-over-year, driven by blended lease rate growth of 2.1%. Occupancy Rate: Mid-96% range. Resident Retention: 60%, marking an all-time seasonal high. Same-Store Expense Growth: 2.6% year-over-year. FFOA Per Share: $0.64 for the second quarter, achieving the high end of guidance. Full-Year 2026 FFOA Guidance: Raised to $2.53 per share at the midpoint. Share Repurchase: Approximately 5.5 million shares repurchased for $200 million at an average price of $36.49 per share. Disposition Activity: Estimated gross proceeds of approximately $650 million for 2026. Development Projects: Commenced development on a 385 apartment home community in Northern Virginia. Liquidity: Nearly $1 billion of liquidity available. Warning! GuruFocus has detected 9 Warning Signs with UDR. Is UDR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. UDR Inc (NYSE:UDR) exceeded its second-quarter expectations, leading to an increase in full-year same-store growth and FFOA per share guidance. The company reported strong operational performance, with a focus on data-driven capabilities and disciplined execution. UDR Inc (NYSE:UDR) successfully leveraged real-time data to drive revenue and cash flow growth, achieving a year-over-year same-store revenue growth of 1.8%. The company maintained healthy occupancy rates in the mid-96% range and achieved a resident retention rate of 60%, marking an all-time seasonal high. UDR Inc (NYSE:UDR) has been recognized as the top workplace winner in the real estate industry for the third consecutive year, reflecting its strong corporate stewardship and employee satisfaction. UDR Inc (NYSE:UDR) is experiencing pricing weakness in its Sunbelt markets, with negative blended lease rate growth. The company is winding down its debt and preferred equity book, which could result in initial dilution of earnings. UDR Inc (NYSE:UDR) faces challenges in certain markets like Nashville, where occupancy and lease rates are under pressure due to supply issues. The company reported a significant increase in expenses in San Francisco, attributed to a specific property tax appeal, which may not be recurring. UDR Inc (NYSE:UDR) is dealing with a competitive market for its debt and preferred equity program, leading to a strategic decision to let the balance run off. Q: There's been speculation about UDR potentially being involved with ABB and EQR. Can you discuss the process the board goes through to gauge strategic decisions? A: Thomas Toomey, CEO, stated that while he won't comment on speculation, the board and management focus on UDR's strategy and shareholder interests. They weigh options and focus on operational excellence, capital allocation, and access to capital. Q: Can you provide updates on July, August, and September trends in terms of renewal notices and new lease growth? A: Michael Lacy, COO, noted that trends are consistent with previous months, with occupancy in the mid-96% range and blended lease growth at the top end of their 1.5% to 2% range. Renewals are expected to be around 4%, and new lease growth is anticipated to be flat, with a more elongated leasing season. Q: How should we think about the current cycle versus historic seasonality, especially with high retention rates? A: Michael Lacy, COO, explained that UDR's turnover is significantly lower than historical averages due to a focus on customer experience and data-driven strategies. They expect to continue reducing turnover and increasing pricing, with strong growth in coastal markets. Q: Can you elaborate on the decision to wind down the debt and preferred equity (DPE) book and its earnings impact? A: David Bragg, CFO, explained that the DPE book has shrunk due to competitive markets and successful paybacks. The focus is on investments with growth potential, as DPE returns are capped. The transition may result in short-term dilution but is expected to enhance long-term earnings growth. Q: Can you discuss the trends in the Sunbelt markets, particularly in Austin and Dallas? A: Michael Lacy, COO, noted that Dallas remains strong with 97% occupancy and slight pricing pressure. Florida markets show momentum with improved occupancy and blends. Nashville faces supply pressure but benefits from major employer expansions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in United Dominion Realty Trust, Inc.? Here are five stocks we like better. UDR raised its 2026 outlook after second-quarter FFOA reached $0.64 per share, at the high end of guidance and above consensus. The company increased its full-year FFOA midpoint to $2.53 per share and lifted same-store NOI growth expectations through stronger rent growth and lower expense projections. Coastal markets drove operating performance: blended lease-rate growth averaged 3.8% in coastal markets versus negative 2% in the Sun Belt, while resident retention reached a seasonal record 60%. Early third-quarter trends remained favorable, with occupancy in the mid-96% range and improving Sun Belt pricing. UDR is selling approximately $650 million of assets in 2026 and using proceeds partly for share repurchases, including $200 million of buybacks in the second quarter. The company also plans to wind down its debt and preferred equity portfolio, which fell to $380 million, while redeploying capital into developments and other investments. United Dominion Realty Trust (NYSE:UDR) raised its full-year outlook after reporting second-quarter results that exceeded its expectations, supported by stronger apartment operating trends, higher retention and expense controls. Chairman, President and CEO Tom Toomey said apartment fundamentals have been favorable in 2026, citing employment growth that exceeded consensus expectations, relative affordability of renting versus homeownership and an easing in new apartment supply. He said the company’s operating execution and capital allocation decisions contributed to the stronger-than-expected quarter. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit UDR reported funds from operations as adjusted, or FFOA, of $0.64 per share for the second quarter, reaching the high end of its guidance range and exceeding consensus, according to CFO Dave Bragg. The result was $0.02 per share above the first quarter, primarily because of higher net operating income. The company raised its full-year 2026 FFOA guidance midpoint by $0.01 per share to $2.53. Its third-quarter FFOA guidance range is $0.63 to $0.65 per share, with a midpoint of $0.64. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Same-store revenue increased 1.8% year over year during the quarter. COO Mike Lacy said results were driven by 2.1% blended lease-rate growth, mid-single-digit growth in innovation income, occupancy in the mid-96% range and a 60-basis-point benefit from improved delinquency. Blended lease-rate growth accelerated by 50 basis points from the first quarter and surpassed UDR’s prior expectation of 1.5% to 2%. Resident retention reached 60%, an all-time seasonal high and 140 basis points above the prior year, according to Lacy. Same-store expenses rose 2.6%, while the company reported an efficiency level of 43 apartment homes managed per associate. → 2 Stocks Built to Thrive If Inflation Refuses to Fade UDR increased the midpoint of its full-year same-store revenue growth outlook by 12.5 basis points, setting a revised range of 0.75% to 2%. The higher midpoint was entirely attributable to blended lease-rate growth, Lacy said. The company continues to expect second-half blended lease-rate growth of 1.5% to 2%, occupancy in the mid-96% range and mid-single-digit innovation-income growth. The company also reduced the midpoint of its same-store expense growth forecast by 50 basis points to 3.25%, citing lower expected growth in repairs and maintenance, real estate taxes and insurance. Together, the changes lifted same-store net operating income growth guidance by 50 basis points. Lacy said early third-quarter trends resembled the second quarter. In July, occupancy remained in the mid-96% range and blended lease growth was at the upper end of UDR’s 1.5% to 2% second-half range. The company was sending renewal offers of roughly 5% to 5.5% and expects achieved renewal increases of about 4% in the third quarter. UDR’s coastal markets generated average blended lease-rate growth of 3.8% in the second quarter, compared with negative 2% blends in the Sun Belt. The coastal portfolio accounts for approximately 75% of UDR’s net operating income, according to Lacy. San Francisco was the company’s strongest market, with approximately 13% blended lease-rate growth and occupancy in the high-97% range. Orange County posted blended growth above 3%, while New York and Philadelphia recorded mid-single-digit blended growth with occupancy in the mid-97% range. Dallas remained UDR’s strongest Sun Belt market, while Austin showed improving lease-rate momentum and 97% occupancy. In July, Sun Belt blended rates had improved to roughly negative 1.5% from negative 2% in the second quarter, Lacy said. New lease growth in the region improved to about negative 5.5% to negative 6% in July from approximately negative 7% to negative 7.5% in the second quarter. Management also pointed to slower outmigration as a demand support. Lacy said outmigration declined by roughly 8% to 10% in Boston and Austin and by 5% in San Francisco compared with the prior year. In Washington, D.C., which represents about 15% of UDR’s NOI, Lacy said market demand has been somewhat weaker due to federal employment trends. However, UDR’s portfolio occupancy was about 96.5% to 97%, above the broader market level, while blended rates were roughly negative 1% to negative 2%. Bragg said UDR used a wide gap between its public-market valuation and private-market apartment pricing to sell assets and repurchase shares. The company completed the sale of one apartment community and is under contract to sell three more. The four transactions are expected to generate approximately $295 million of gross proceeds. Including those sales, UDR expects 2026 dispositions of about $650 million at an average buyer capitalization rate in the mid-5% range. The company selected the assets based on rent-growth outlook, capital expenditure requirements and potential operating upside relative to the retained portfolio. During the second quarter, UDR repurchased approximately 5.5 million shares for $200 million at an average price of $36.49 per share. Since September 2025, the company has bought back 11.5 million shares for approximately $420 million, or an average of $36.34 per share. UDR also began construction on a 385-unit second-phase development in Northern Virginia adjacent to an existing company community. Separately, its 3099 Iowa development in Riverside, California, was two quarters ahead of schedule for initial occupancy and 5% under budget. UDR expects both projects to produce stabilized yields in the mid-6% range. UDR said it will allow its debt and preferred equity, or DPE, portfolio to run off over the next several years and does not plan to reenter the business. Toomey said the company is “an industry leader operator, not a lender,” and management believes its operating platform and data tools can identify investments with greater long-term upside. The DPE balance declined from a peak of roughly $725 million in the first quarter of 2025 to $380 million at the end of the second quarter of 2026. UDR expects the balance to decline to approximately $250 million to $300 million by year-end through repayments, asset takeovers and capital allocation toward other uses. Bragg said redeploying capital from DPE investments into alternatives such as acquisitions or redevelopment could carry yields about 400 basis points below DPE initially. He estimated that each $100 million not redeployed in DPE could create approximately $0.01 per-share initial dilution, although the company expects that effect to narrow over time as alternative investments grow earnings. UDR ended the period with nearly $1 billion of liquidity, Bragg said. The company also plans to distribute its first monthly dividend later in the week, following its previously announced shift from a quarterly payment schedule. United Dominion Realty Trust (NYSE: UDR) is a publicly traded real estate investment trust specializing in the ownership, management, acquisition, development and redevelopment of multifamily apartment communities. The company's core focus is on Class A and Class A–plus residential properties, offering a diverse portfolio designed to meet the evolving needs of renters. UDR employs a full-service management platform to oversee daily operations, property maintenance, leasing, and resident services, ensuring consistency and quality across its holdings. UDR's business activities encompass ground-up development, strategic property redevelopment, and selective acquisitions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "United Dominion Realty Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

DENVER, July 27, 2026--(BUSINESS WIRE)--UDR, Inc. (the "Company") (NYSE: UDR), announced today its second quarter 2026 results. Net Income, Funds from Operations ("FFO"), and FFO as Adjusted ("FFOA") per diluted share for the quarter and year-to-date periods ended June 30, 2026, are detailed below. Same-Store ("SS") results for the second quarter 2026 versus the second quarter 2025 and the first quarter 2026 as well as year-to-date 2026 versus year-to-date 2025 are summarized below. "Leasing strength in 2026 is tracking ahead of our initial expectations, resulting in second quarter results that exceeded our prior guidance. As a result, we have raised our full-year guidance ranges for Same-Store growth and FFOA per diluted share," said Tom Toomey, UDR’s Chairman, President, and CEO. "The resiliency of the economy, waning supply, and attractive relative affordability of apartments position UDR for continued success. Following 50+ years of dividend growth and stability totaling $9 billion of payments, we look forward to paying our first monthly dividend this week." Outlook(1) As shown in the table below, the Company has established the following guidance ranges for the third quarter of 2026, raised its previously provided full-year 2026 guidance ranges for Net Income, FFOA per diluted share, and Same-Store Growth, and updated its previously provided full-year 2026 guidance range for FFO per diluted share. Capital Allocation Activity Leveraging the Company’s collaborative and data-driven approach to capital allocation, during the quarter and subsequent to quarter-end, the Company, As previously reported, expanded its share repurchase program to approximately 30 million shares and repurchased approximately 5.5 million shares of its common stock at a weighted average share price of $36.49 for total consideration of approximately $200.3 million. Following this share repurchase activity, the Company has approximately 25.5 million shares remaining for repurchase under its program. Since recommencing share repurchases in September 2025, the Company has repurchased approximately 11.5 million shares of its common stock at a weighted average share price of $36.32 for total consideration of approximately $418.0 million. Sold a 206-apartment home community in Nashville, TN, that was originally constructed in 1977 for gross proceeds of $41.5 million. Additionally, the Company is under contract to sell three apartment communities with a combined 808 apartment homes for gross proceeds totaling approximately $252.5 million. These transactions are expected to close in the third and fourth quarters of 2026. Should these pending sales close as anticipated, the Company’s 2026 disposition activity would total approximately $656.0 million. Acquired three apartment home communities with a combined 584 apartment homes upon the liquidation of the Company’s interests in previous Debt and Preferred Equity joint ventures; two of these communities are located in Portland, OR, and a third is located in Los Angeles, CA. Commenced development of 4848 at Alex West, a 385-apartment home community in Northern Virginia, with an expected total development cost of $181.3 million, or $471,000 per apartment home. This second phase development is located adjacent to an existing UDR apartment community, which the Company expects should drive unique operating efficiencies. Formed a joint venture with a new partner in conjunction with MetLife’s sale of its 50 percent joint venture interest in Columbus Square, an assemblage of apartment communities in New York, NY, totaling 710 apartment homes. UDR’s 50% joint venture interest in Columbus Square is unchanged, as are its joint venture economics. Concurrent with the transaction, the Company fully funded a $50.0 million mezzanine loan investment to the new joint venture partner at an effective return rate of 8.0 percent. Operating Results In the second quarter, total revenue was flat YOY, as revenue increases attributable to growth from Same-Store and acquired communities was offset by the removal of revenue from properties that were sold. "Second quarter Same-Store revenue, expense, and NOI growth exceeded our expectations, driven by blended lease rate growth above the high-end of our previously provided guidance range of 1.5 percent to 2.0 percent, occupancy remaining in the mid-96 percent range with annualized resident retention achieving a seasonally adjusted all-time high of 60 percent, and mid-single-digit year-over-year innovation income growth," said Mike Lacy, UDR’s Chief Operating Officer. In the tables below, the Company has presented YOY, sequential, and YTD Same-Store results by region. Summary of Same-Store Results in the Second Quarter 2026 versus the Second Quarter 2025 Summary of Same-Store Results in the Second Quarter 2026 versus the First Quarter 2026 Summary of Same-Store Results for YTD 2026 versus YTD 2025 Balance Sheet Update The Company’s total indebtedness as of June 30, 2026, was $5.8 billion at a weighted average interest rate of 3.4 percent, with $328.4 million, or 6.2 percent of total consolidated debt, maturing through the rest of 2026, including principal amortization and excluding amounts on the Company’s line of credit, commercial paper program, and working capital credit facility. As of June 30, 2026, the Company had approximately $885 million in liquidity through a combination of cash and undrawn capacity on its credit facilities. Please see Attachment 13 of the Company’s related quarterly Supplement for additional details regarding investment guidance. In the table below, the Company has presented select balance sheet metrics for the quarter ended June 30, 2026, and the comparable prior year period. Dividend As previously announced, the Company commenced a monthly common stock dividend beginning in July 2026 and the Company’s Board of Directors declared dividends on its common stock for the second quarter of 2026 in the amount of $0.145 per share per month, payable in cash on the payment dates set forth in the table below to UDR shareholders of record as of the close of business on the corresponding record date in the table below. The dividends declared for the second quarter 2026 amount to $0.435 per share, representing a 1.2 percent increase over the comparable period in 2025, and reflects an annualized dividend amount of $1.74 per share of common stock. The September 2026 dividend will represent the 217th consecutive dividend paid by the Company on its common stock. Corporate Responsibility During the quarter, the Company was named a National Top Workplaces winner in the Real Estate Industry for the third consecutive year. This distinction reflects the Company’s ongoing commitment to fostering an innovative culture and engaging associate experience. Supplemental Financial Information The Company offers Supplemental Financial Information that provides details on the financial position and operating results of the Company which is available on the Investor Relations section of the Company's website at ir.udr.com. Attachment 14(A) Definitions and ReconciliationsJune 30, 2026(Unaudited) Acquired Communities: The Company defines Acquired Communities as those communities acquired by the Company, other than development and redevelopment activity, that did not achieve stabilization as of the most recent quarter. Adjusted Funds from Operations ("AFFO") attributable to common stockholders and unitholders: The Company defines AFFO as FFO as Adjusted attributable to common stockholders and unitholders less recurring capital expenditures on consolidated communities and the Company’s proportionate share of recurring capital expenditures on unconsolidated partnerships and joint ventures, that are necessary to help preserve the value of and maintain functionality at our communities. Management considers AFFO a useful supplemental performance metric for investors as it is more indicative of the Company's operational performance than FFO or FFO as Adjusted. AFFO is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. The Company believes that net income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to AFFO. Management believes that AFFO is a widely recognized measure of the operations of REITs, and presenting AFFO enables investors to assess our performance in comparison to other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not always be comparable to AFFO calculated by other REITs. AFFO should not be considered as an alternative to net income/(loss) (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. A reconciliation from net income/(loss) attributable to common stockholders to AFFO is provided on Attachment 2. Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items: The Company defines Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items as Consolidated Interest Coverage Ratio - adjusted for non-recurring items divided by total consolidated interest, excluding the impact of costs associated with debt extinguishment, plus preferred dividends. Management considers Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation of the components that comprise Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure. Consolidated Interest Coverage Ratio - adjusted for non-recurring items: The Company defines Consolidated Interest Coverage Ratio - adjusted for non-recurring items as Consolidated EBITDAre – adjusted for non-recurring items divided by total consolidated interest, excluding the impact of costs associated with debt extinguishment. Management considers Consolidated Interest Coverage Ratio - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation of the components that comprise Consolidated Interest Coverage Ratio - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure. Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items: The Company defines Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items as total consolidated debt net of cash and cash equivalents divided by annualized Consolidated EBITDAre - adjusted for non-recurring items. Consolidated EBITDAre - adjusted for non-recurring items is defined as EBITDAre excluding the impact of income/(loss) from unconsolidated entities, adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures and other non-recurring items including, but not limited to casualty-related charges/(recoveries), net of wholly owned communities. Management considers Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation between net income/(loss) and Consolidated EBITDAre - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure. Contractual Return Rate: The Company defines Contractual Return Rate as the rate of return or interest rate that the Company is entitled to receive on a preferred equity investment or loan, as specified in the applicable agreement. Controllable Expenses: The Company refers to property operating and maintenance expenses as Controllable Expenses. Development Communities: The Company defines Development Communities as those communities recently developed or under development by the Company, that are currently majority owned by the Company and have not achieved stabilization as of the most recent quarter. Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre): The Company defines EBITDAre as net income/(loss) (computed in accordance with GAAP), plus interest expense, including costs associated with debt extinguishment, plus real estate depreciation and amortization, plus other depreciation and amortization, plus (minus) income tax provision/(benefit), (minus) plus net gain/(loss) on the sale of depreciable real estate owned, plus impairment write-downs of depreciable real estate, plus the adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or Nareit, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the Nareit definition, or that interpret the Nareit definition differently than the Company does. The White Paper on EBITDAre was approved by the Board of Governors of Nareit in September 2017. Management considers EBITDAre a useful metric for investors as it provides an additional indicator of the Company’s ability to incur and service debt, and enables investors to assess our performance against that of its peer REITs. EBITDAre should be considered along with, but not as an alternative to, net income and cash flow as a measure of the Company’s activities in accordance with GAAP. EBITDAre does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs. A reconciliation between net income/(loss) and EBITDAre is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure. Effective Blended Lease Rate Growth: The Company defines Effective Blended Lease Rate Growth as the combined proportional growth as a result of Effective New Lease Rate Growth and Effective Renewal Lease Rate Growth. Management considers Effective Blended Lease Rate Growth a useful metric for investors as it assesses combined proportional market-level, new and in-place demand trends. Effective New Lease Rate Growth: The Company defines Effective New Lease Rate Growth as the increase/(decrease) in gross potential rent realized less concessions on a straight-line basis for the new lease term (current effective rent) versus prior resident effective rent for the prior lease term on new leases commenced during the current quarter. Management considers Effective New Lease Rate Growth a useful metric for investors as it assesses market-level new demand trends. Effective Renewal Lease Rate Growth: The Company defines Effective Renewal Lease Rate Growth as the increase/(decrease) in gross potential rent realized less concessions on a straight-line basis for the new lease term (current effective rent) versus prior effective rent for the prior lease term on renewed leases commenced during the current quarter. Management considers Effective Renewal Lease Rate Growth a useful metric for investors as it assesses market-level, in-place demand trends. Estimated Quarter of Completion: The Company defines Estimated Quarter of Completion of a development or redevelopment project as the date on which construction is expected to be completed, but it does not represent the date of stabilization. Attachment 14(B) Definitions and ReconciliationsJune 30, 2026(Unaudited) Funds from Operations as Adjusted ("FFO as Adjusted") attributable to common stockholders and unitholders: The Company defines FFO as Adjusted attributable to common stockholders and unitholders as FFO excluding the impact of other non-comparable items including, but not limited to, acquisition-related costs, prepayment costs/benefits associated with early debt retirement, impairment write-downs or gains and losses on sales of real estate or other assets incidental to the main business of the Company and income taxes directly associated with those gains and losses, casualty-related expenses and recoveries, severance costs, software transition related costs and legal and other costs. Management believes that FFO as Adjusted is useful supplemental information regarding our operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. FFO as Adjusted is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. The Company believes that net income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to FFO as Adjusted. However, other REITs may use different methodologies for calculating FFO as Adjusted or similar FFO measures and, accordingly, our FFO as Adjusted may not always be comparable to FFO as Adjusted or similar FFO measures calculated by other REITs. FFO as Adjusted should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. A reconciliation from net income attributable to common stockholders to FFO as Adjusted is provided on Attachment 2. Funds from Operations ("FFO") attributable to common stockholders and unitholders: The Company defines FFO attributable to common stockholders and unitholders as net income/(loss) attributable to common stockholders (computed in accordance with GAAP), excluding impairment write-downs of depreciable real estate related to the main business of the Company or of investments in non-consolidated investees that are directly attributable to decreases in the fair value of depreciable real estate held by the investee, gains and losses from sales of depreciable real estate related to the main business of the Company and income taxes directly associated with those gains and losses, plus real estate depreciation and amortization, and after adjustments for noncontrolling interests, and the Company’s share of unconsolidated partnerships and joint ventures. This definition conforms with the National Association of Real Estate Investment Trust's definition issued in April 2002 and restated in November 2018. In the computation of diluted FFO, if OP Units, DownREIT Units, unvested restricted stock, unvested LTIP Units, stock options, and the shares of Series E Cumulative Convertible Preferred Stock are dilutive, they are included in the diluted share count. Management considers FFO a useful metric for investors as the Company uses FFO in evaluating property acquisitions and its operating performance and believes that FFO should be considered along with, but not as an alternative to, net income and cash flow as a measure of the Company's activities in accordance with GAAP. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs. A reconciliation from net income/(loss) attributable to common stockholders to FFO is provided on Attachment 2. Held For Disposition Communities: The Company defines Held for Disposition Communities as those communities that were held for sale as of the end of the most recent quarter. Joint Venture Reconciliation at UDR's weighted average ownership interest: Net Operating Income ("NOI"): The Company defines NOI as rental income less direct property rental expenses. Rental income represents gross market rent and other revenues less adjustments for concessions, vacancy loss and bad debt. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI is property management expense, which is calculated as 3.25% of property revenue, and land rent. Property management expense covers costs directly related to consolidated property operations, inclusive of corporate management, regional supervision, accounting and other costs. Management considers NOI a useful metric for investors as it is a more meaningful representation of a community’s continuing operating performance than net income as it is prior to corporate-level expense allocations, general and administrative costs, capital structure and depreciation and amortization and is a widely used input, along with capitalization rates, in the determination of real estate valuations. A reconciliation from net income/(loss) attributable to UDR, Inc. to NOI is provided below. Attachment 14(C) Definitions and ReconciliationsJune 30, 2026(Unaudited) NOI Enhancing Capital Expenditures ("Cap Ex"): The Company defines NOI Enhancing Capital Expenditures as expenditures that result in increased income generation or decreased expense growth over time. Management considers NOI Enhancing Capital Expenditures a useful metric for investors as it quantifies the amount of capital expenditures that are expected to grow, not just maintain, revenues or to decrease expenses. Non-Mature Communities: The Company defines Non-Mature Communities as those communities that have not met the criteria to be included in same-store communities. Non-Residential / Other: The Company defines Non-Residential / Other as non-apartment components of mixed-use properties, land held, properties being prepared for redevelopment and properties where a material change in home count has occurred. Other Markets: The Company defines Other Markets as the accumulation of individual markets where it operates less than 1,000 Same-Store homes. Management considers Other Markets a useful metric as the operating results for the individual markets are not representative of the fundamentals for those markets as a whole. Physical Occupancy: The Company defines Physical Occupancy as the number of occupied homes divided by the total homes available at a community. QTD Same-Store Communities: The Company defines QTD Same-Store Communities as those communities Stabilized for five full consecutive quarters. These communities were owned and had stabilized operating expenses as of the beginning of the quarter in the prior year, were not in process of any substantial redevelopment activities, and were not held for disposition. Recurring Capital Expenditures: The Company defines Recurring Capital Expenditures as expenditures that are necessary to help preserve the value of and maintain functionality at its communities. Redevelopment Communities: The Company generally defines Redevelopment Communities as those communities where substantial redevelopment is in progress. Based upon the level of material impact the redevelopment has on the community (operations, occupancy levels, and future rental rates), the community may or may not maintain Stabilization. As such, for each redevelopment, the Company assesses whether the community remains in Same-Store. Sold Communities: The Company defines Sold Communities as those communities that were disposed of prior to the end of the most recent quarter. Stabilization/Stabilized: The Company defines Stabilization/Stabilized as when a community’s occupancy reaches 90% or above for at least three consecutive months. Stabilized, Non-Mature Communities: The Company defines Stabilized, Non-Mature Communities as those communities that have reached Stabilization but are not yet in the same-store portfolio. Total Revenue per Occupied Home: The Company defines Total Revenue per Occupied Home as rental and other revenues with concessions reported on a straight-line basis, divided by the product of occupancy and the number of apartment homes. Management considers Total Revenue per Occupied Home a useful metric for investors as it serves as a proxy for portfolio quality, both geographic and physical. TRS: The Company’s taxable REIT subsidiaries ("TRS") focus on making investments and providing services that are otherwise not allowed to be made or provided by a REIT. YTD Same-Store Communities: The Company defines YTD Same-Store Communities as those communities Stabilized for two full consecutive calendar years. These communities were owned and had stabilized operating expenses as of the beginning of the prior year, were not in process of any substantial redevelopment activities, and were not held for disposition. Conference Call and Webcast Information UDR will host a webcast and conference call at 12:00 p.m. Eastern Time on July 28, 2026, to discuss second quarter 2026 results as well as high-level views for 2026. The webcast will be available on the Investor Relations section of the Company’s website at ir.udr.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. To participate in the teleconference dial 877-423-9813 for domestic and 201-689-8573 for international. A passcode is not necessary. Given a high volume of conference calls occurring during this time of year, delays are anticipated when connecting to the live call. As a result, stakeholders and interested parties are encouraged to utilize the Company’s webcast link for its earnings results discussion. A replay of the conference call will be available through August 4, 2026, by dialing 844-512-2921 for domestic and 412-317-6671 for international and entering the confirmation number, 13761681, when prompted for the passcode. A replay of the call will also be available on the Investor Relations section of the Company’s website at ir.udr.com. Full Text of the Earnings Report and Supplemental Data The full text of the earnings report and related quarterly Supplement will be available on the Investor Relations section of the Company’s website at ir.udr.com. Forward-Looking Statements Certain statements made in this press release may constitute "forward-looking statements." Words such as "expects," "intends," "believes," "anticipates," "plans," "likely," "will," "seeks," "outlook," "guidance," "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, general market and economic conditions, unfavorable changes in the apartment market and economic conditions that could adversely affect occupancy levels and rental rates, the impact of inflation/deflation on rental rates and property operating expenses, the availability of capital and the stability of the capital markets, the impact of tariffs, geopolitical tensions, conflicts and wars, government shutdowns, and changes in immigration, elevated interest rates, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule or at expected rent and occupancy levels, changes in job growth, home affordability and demand/supply ratio for multifamily housing, development and construction risks that may impact profitability, risks that joint ventures with third parties and Debt and Preferred Equity Program investments do not perform as expected, the failure of automation or technology to help grow net operating income, and other risk factors discussed in documents filed by the Company with the SEC from time to time, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the U.S. securities laws. About UDR, Inc. UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of June 30, 2026, UDR owned or had an ownership position in 60,259 apartment homes, including 685 apartment homes under development. For over 54 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents, and the highest quality experience for Associates. Attachment 1 Consolidated Statements of Operations(Unaudited) (1) Attachment 2 Funds From Operations(Unaudited) (1) Attachment 3 Consolidated Balance Sheets(Unaudited) (1) Attachment 4(C) Selected Financial Information(Dollars in Thousands)(Unaudited) (1) Attachment 14(D) Definitions and ReconciliationsJune 30, 2026(Unaudited) All guidance is based on current expectations of future economic conditions and the judgment of the Company's management team. The following reconciles from GAAP Net income/(loss) per share for full-year 2026 and third quarter of 2026 to forecasted FFO and FFO as Adjusted per share and unit: View source version on businesswire.com: https://www.businesswire.com/news/home/20260726611735/en/ Contacts Trent TrujilloEmail: [email protected]

Wall Street analysts forecast that UDR (UDR) will report quarterly earnings of $0.63 per share in its upcoming release, pointing to a year-over-year decline of 1.6%. It is anticipated that revenues will amount to $421.35 million, exhibiting a decrease of 0.4% compared to the year-ago quarter. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock. While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights. With that in mind, let's delve into the average projections of some UDR metrics that are commonly tracked and projected by analysts on Wall Street. Based on the collective assessment of analysts, 'Revenues- Rental income' should arrive at $420.10 million. The estimate suggests a change of -0.7% year over year. The consensus among analysts is that 'Weighted Average Physical Occupancy' will reach 96.7%. Compared to the current estimate, the company reported 96.7% in the same quarter of the previous year. The average prediction of analysts places 'Other depreciation and amortization' at $5.53 million. The consensus estimate for 'Real estate depreciation and amortization' stands at $165.63 million. View all Key Company Metrics for UDR here>>> Over the past month, UDR shares have recorded returns of +3.4% versus the Zacks S&P 500 composite's +0.3% change. Based on its Zacks Rank #3 (Hold), UDR will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Dominion Realty Trust, Inc. (UDR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

UDR Inc. UDR, a premier multifamily real estate investment trust (REIT), is set to announce its second-quarter 2026 results after the closing bell on July 27. Its quarterly results are likely to reflect growth in revenues but a dip in funds from operations (FFO) per share. In the last reported quarter, this Denver, CO-based residential REIT came up with an FFO as adjusted per share of 62 cents, in line with the Zacks Consensus Estimate. Results reflected year-over-year growth in rental rates, while expense growth weighed on same-store net operating income (NOI). In the last four quarters, UDR’s FFO as adjusted per share met the Zacks Consensus Estimate on two occasions and surpassed it on the other two, the average surprise being 1.60%. The graph below depicts the surprise history of the company: United Dominion Realty Trust, Inc. price-eps-surprise | United Dominion Realty Trust, Inc. Quote As we approach the release of UDR's second-quarter 2026 earnings report, it is important to examine how this residential REIT is likely to have performed amid the current market conditions. The U.S. multifamily market entered the second half of 2026 with a clearer recovery taking shape, as strong renter demand and a rapidly shrinking supply pipeline began translating into lower vacancy and improving rent growth. According to a Cushman & Wakefield report, net absorption reached roughly 124,600 units, up from 83,500 units in the first quarter and 8% above the prior year, making it the fifth-strongest quarter in nearly 25 years. The supply picture also became more favorable. Approximately 88,000 units were delivered during the quarter, down 27% year over year. Around 475,000 units remained under construction at quarter-end, equal to just 3.5% of existing inventory. Improving demand and slowing supply pushed the national vacancy rate down 35 basis points quarter over quarter to 8.9%, its first move below 9% since 2024. On a trailing four-quarter basis, absorption of approximately 362,000 units exceeded deliveries of about 358,000 units for the first time since early 2022, indicating vacancy is likely to have passed its cyclical peak. The recovery was particularly pronounced in previously overbuilt markets: Austin; Charleston, SC; Savannah, GA; Huntsville, AL; Salt Lake City, UT, and Colorado Springs recorded some of the largest quarterly vacancy declines. Rent growth remains modest but is beginning to improve. National asking rents reached approximately $1,945 per month, up 1.5% year over year, compared with 1.1% growth in the first quarter. The Bay Area led the recovery, with San Francisco rents rising 13%, San Jose 7% and the East Bay 4.8%. Norfolk, Toledo, Reno and Boise also posted strong gains. High-supply markets remained softer, with rents still declining in Austin and Sarasota, although the pace of those declines moderated as excess supply was absorbed. Overall, the market appears to be shifting from stabilization into an occupancy-led recovery, with broader rent growth likely as the construction pipeline continues to shrink. UDR enters second-quarter 2026 results with operating trends largely on plan. Management expects blended lease rate growth of 1.5% to 2% and occupancy in the mid-96% range, with April performance still near the first-quarter level of 1.6%. Coastal markets remain the main growth driver, with San Francisco and New York showing the strongest rent gains, while Dallas continues to improve. Renewals should remain supportive, with offers running around 5% to 5.5% and signed renewals expected within roughly 100 basis points of that range. Record resident retention and lower turnover should help protect occupancy, reduce operating costs and support cash flow. However, some Sunbelt markets, particularly Florida and Nashville, softened in April and could limit upside. For earnings, UDR guided second-quarter adjusted FFO to $0.62-$0.64 per share, with the midpoint of $0.63 implying about 2% sequential growth. The improvement is expected to come from higher NOI and accretion from share repurchases funded by asset sales. Overall, the quarter should show steady revenue growth, solid occupancy and better sequential earnings, though expense pressure and weaker Sunbelt pricing remain key risks. Amid these, we expect occupancy to stay elevated at 96.7%, a 10-basis-point improvement sequentially. We estimate same-store revenues to grow 1.2% year over year for the second quarter. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $425.19 million. This indicates a marginal year-over-year rise. Before the second-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO as adjusted per share has remained unrevised at 62 cents over the past three months, suggesting a 1.56% decrease year over year. Our proven model does not conclusively predict a surprise in terms of core FFO per share for UDR this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here. UDR currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are two stocks from the broader REIT sector — SL Green Realty SLG and Cousins Properties CUZ— you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter. SL Green is slated to report quarterly numbers on July 22. SLG has an Earnings ESP of +7.20% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Dominion Realty Trust, Inc. (UDR) : Free Stock Analysis Report Cousins Properties Incorporated (CUZ) : Free Stock Analysis Report SL Green Realty Corporation (SLG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

With a market cap of $13.4 billion, UDR, Inc. (UDR) is a leading multifamily real estate investment trust with more than 53 years of experience delivering long-term value through the management, acquisition, development, and redevelopment of apartment communities across targeted U.S. markets. As of March 31, 2026, the company owned or held ownership positions in 59,782 apartment homes, including 300 homes under development, while maintaining a strong commitment to shareholders, residents, and associates. The Highlands Ranch, Colorado-based company is expected to release its fiscal Q2 2026 results soon. Ahead of this event, analysts project UDR to report FFOA per share of $0.63, a 1.6% decline from $0.64 in the year-ago quarter. However, it has exceeded or met Wall Street's bottom-line estimates in the past four quarters. Sentiment Could Be Turning Sour on Nvidia. Here’s Where 1 Analyst Thinks NVDA Stock Is Headed Next. Dear Netflix Stock Fans, Mark Your Calendars for July 16 Google Just Launched 2 New AI Models. What That Means for GOOGL Stock. Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. For fiscal 2026, analysts orecast the REIT to report FFOA per share of $2.53, down marginally from $2.54 in fiscal 2025. Nevertheless, FFOA per share is anticipated to grow 2.8% year-over-year to $2.60 in fiscal 2027. UDR stock has risen marginally over the past 52 weeks, lagging behind the broader S&P 500 Index's ($SPX) 19.9% gain and the State Street Real Estate Select Sector SPDR ETF's (XLRE) 5.9% return over the same time frame. Shares of UDR recovered marginally following its Q1 2026 results on Apr. 29 as the company reported FFO as adjusted of $0.62 per share, in line with guidance. Investor sentiment was further supported by solid operating metrics, including blended lease rate growth of 1.6%, occupancy in the mid-96% range, renewal rent growth of 5.2%, and a 300-basis-point improvement in resident retention year over year. Sentiment also improved after UDR announced a monthly dividend, sold four apartment communities for $362 million, repurchased $150 million of shares, and guided Q2 FFOA to $0.62 per share - $0.64 per share. Analysts' consensus view on UDR stock is cautiously optimistic, with an overall "Moderate Buy" rating. Among 23 analysts covering the stock, eight suggest a "Strong Buy," 13 give a "Hold," and two recommend a "Strong Sell." As of writing, it is trading above the average analyst price target of $40.50. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

UDR delivered solid operations with occupancy around the mid-96%–97% range, resident retention at an all-time high and renewal rate growth of 5.2%, driving 90 bps of same-store revenue growth while coastal markets like San Francisco and New York posted outsized lease gains. Management is executing a capital-allocation push around a stated public versus private market arbitrage, selling four assets for $362 million, receiving $139 million of DPE repayments, repurchasing $150 million of shares in 2026 ( $268 million since September), and adding Portland communities via the DPE program. Financials were in line with guidance—Q1 FFOA was $0.62 (midpoint) and Q2 FFOA is guided to $0.62–$0.64 (≈2% sequential increase)—and the company announced a shift to a monthly dividend to broaden its shareholder base. Interested in United Dominion Realty Trust, Inc.? Here are five stocks we like better. United Dominion Realty Trust (NYSE:UDR) reported first-quarter 2026 results that management said were in line with expectations, supported by strong resident retention and a capital allocation strategy centered on what executives described as a rare disconnect between public and private apartment valuations. On the call, Chairman, President and CEO Thomas Toomey said 2026 “is off to a solid start,” citing execution across operations and capital allocation. UDR maintained its full-year 2026 same-store and earnings guidance, which the company said it will reassess next quarter. → Apple’s Earnings Make $300 Look Like a Matter of When, Not If Chief Operating Officer Mike Lacy said UDR entered the year with occupancy of 97% and used “real-time data to focus on total revenue and cash flow growth.” He reported year-over-year same-store revenue growth of 90 basis points in the quarter, with blended lease rate growth of 1.6%, occupancy in the mid-96% range, and “mid-single-digit” innovation income growth, which includes items such as community-wide Wi-Fi and package lockers. Lacy highlighted resident retention as a key driver, calling it “at an all-time high” and saying retention was 300 basis points higher than the prior year. UDR posted renewal rate growth of 5.2%, which Lacy said was 70 basis points above a year ago and “nearly twice as high as the Q4 of 2025.” He also said income levels of new residents are stronger than the long-term average, which he framed as supportive of future renewal growth. → These 3 AI Stocks Just Crushed Earnings: Still Time To Buy? Looking into the second quarter, Lacy said revenue drivers were “trending as anticipated,” and UDR continued to expect second-quarter blended lease rate growth of 1.5% to 2% with occupancy in the mid-96% range. In April, Lacy said the strength from the first quarter continued “in that 1.6% range,” keeping the company on track with its first-half expectations. By market, Lacy cited: San Francisco as the strongest revenue growth market in the portfolio, with blended lease rate growth of about 10% and occupancy in the high 97% range. New York delivering strong revenue growth with blended lease rate growth of about 7% and occupancy above 98%. Dallas showing the best momentum among Sun Belt markets, with occupancy approaching 97% and blended lease rate growth turning positive after improving by 570 basis points since the fourth quarter. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Lacy said coastal regions, representing about 75% of net operating income (NOI), continued to post the highest growth, citing April blended lease growth of about 2.1%. By contrast, he said some Sun Belt markets “retreat[ed] slightly” over the prior 30 days, with blended lease growth moving from about negative 1.5% in the first quarter to about negative 2.5% in April. In response to a question about the softness, Lacy said it was “more of a blip,” noting it was more specific to Florida than Texas, with Nashville also seeing a downtick. On occupancy strategy, Lacy told analysts UDR typically allows occupancy to drift down in the second and third quarters as demand increases, then “drive it up a little bit higher” in the fourth quarter, suggesting only modest changes (around 10 to 20 basis points) from current levels. Lacy reported same-store expense growth of 4.4% in the quarter, which he said was elevated due to winter storms across the portfolio. He said that excluding approximately $1.4 million of incremental expenses tied to items such as snow removal and higher utility costs, same-store expense growth would have been about 100 basis points better and “just below the midpoint” of full-year expense guidance. Chief Financial Officer Dave Bragg said first-quarter funds from operations, as adjusted (FFOA), was $0.62 per share, matching the midpoint of guidance. Bragg attributed the $0.02 sequential decline from the fourth quarter of 2025 primarily to a $0.03 decrease in NOI driven by higher expenses, partially offset by a $0.01 benefit from lower general and administrative costs. For the second quarter, Bragg guided to FFOA of $0.62 to $0.64 per share, with the $0.63 midpoint implying an approximately 2% sequential increase. He said the expected increase was driven by higher NOI and “accretion from share repurchases funded by dispositions.” Management emphasized capital allocation activity aimed at capturing what Bragg described as a wide “public versus private market arbitrage opportunity.” He said the company is seeking to sell “lower growth assets” in private markets and buy back UDR shares, which he characterized as representing a “superior growth portfolio” at a discount in public markets. Bragg detailed several actions taken in early 2026: Asset sales: UDR sold four apartment communities in Baltimore, Denver, Seattle, and Tampa for gross proceeds of $362 million. DPE repayments: The company received about $139 million from the full repayment of two debt and preferred equity (DPE) investments. Share repurchases: UDR repurchased $150 million of shares in 2026, bringing total repurchases since September to $268 million. Portland accessions: Through the DPE program, UDR gained access to two communities in Portland, Oregon, with a 232-home community acquired in April and a second expected to follow in the coming months. On disposition pricing, Bragg said the sold assets had an average age of 38 years and higher-than-average capital expenditure needs, and that they screened as inferior to the retained portfolio on UDR’s internal metrics. He said bidding was “pretty deep and competitive,” with pricing within a few percentage points of expectations and a “market cap rate in the mid 5% range.” For the Portland community acquired in April, Bragg characterized the current yield as “around 5%,” with expectations for a stabilized yield “in the high 5% range” after operational improvements. In a separate discussion, management said it anticipates a “high 5% stabilized yield” on the Portland communities. COO Mike Lacy said Portland occupancy is above 97% with blended lease rates in the 2% to 3% range and that adding the assets “effectively double[s] the size of the market” for UDR. Lacy also said the company believes it can improve controllable operating margin by 300 to 400 basis points over 12 to 18 months through staffing efficiencies, vendor consolidation, and other income initiatives. Bragg said the DPE portfolio is declining as repayments occur and as share repurchases are viewed as offering better risk-adjusted returns. He suggested that with a DPE balance in the “high $300 million range” at the end of the first quarter, it could be “towards $300 million or so” by year-end. Bragg also provided an update on development, saying UDR’s Riverside, California, project known as 3099 Iowa is ahead of schedule and under budget, with initial occupancy now expected in the fourth quarter of 2026 rather than the first quarter of 2027. Toomey said UDR announced a transition to a monthly dividend, calling the company “the first residential REIT to do so.” He tied the move to efforts to diversify capital sources and broaden the shareholder base, particularly toward “high-net worth investors, family office, and institutional products who collectively value frequent cash distributions.” Bragg added the shift is part of a broader effort to appeal to retail shareholders, including increased outreach and marketing efforts. Toomey pointed to UDR’s “53 straight years of dividends” totaling “nearly $9 billion” and cited the “relatability and transparency of the apartment industry” as supportive of the strategy. On the regulatory front, Senior Vice President Christopher Van Ens said the company is actively engaged with local owner groups and trade partners to oppose a proposed statewide rent control measure in Massachusetts expected to appear on the November ballot. Van Ens said UDR had contributed “around a half a million dollars” to the initiative so far and indicated that amount could increase. Bragg said uncertainty has reduced transaction volume in Boston and has had “an adverse impact on pricing.” Van Ens also said UDR is monitoring tenant-friendly initiatives in locations including Salinas, California; New York City; and Washington, D.C., and that the company’s governmental affairs team tracks developments at the federal, state, and local levels. Toomey closed by reiterating optimism about long-term apartment fundamentals, citing “resilient demand” and a “shrinking future multifamily supply pipeline,” while noting the company is only four months into the year and will revisit guidance next quarter. United Dominion Realty Trust (NYSE: UDR) is a publicly traded real estate investment trust specializing in the ownership, management, acquisition, development and redevelopment of multifamily apartment communities. The company's core focus is on Class A and Class A–plus residential properties, offering a diverse portfolio designed to meet the evolving needs of renters. UDR employs a full-service management platform to oversee daily operations, property maintenance, leasing, and resident services, ensuring consistency and quality across its holdings. UDR's business activities encompass ground-up development, strategic property redevelopment, and selective acquisitions. The article "United Dominion Realty Trust Q1 Earnings Call Highlights" was originally published by MarketBeat.

Image source: The Motley Fool. Thursday, April 30, 2026 at 12 p.m. ET Chief Executive Officer — Tom Toomey Chief Operating Officer — Mike Lacey Chief Financial Officer — Dave Bragg Senior Officer — Christopher Van ens Tom Toomey: Thank you, Trent, and welcome to UDR, Inc.'s first quarter 2026 conference call. Presenting on the call with me today are Chief Operating Officer, Mike Lacey; Chief Financial Officer, Dave Bragg; and Senior Officer, Christopher Van ens will also be available during the Q&A portion of the call. To begin, 2026 is off to a solid start. Our first quarter results were in line with the expectations we provided at the beginning of the year, made possible by strong execution across operations and capital allocation. As it relates to operations, our revenue drivers all played out as anticipated and resident retention stands at an all-time high. Mike will elaborate on the strategies and tactics employed to generate these results. As it relates to capital allocation, we remain focused on taking advantage of the rare and likely fleeting opportunity to arbitrage a sizable gap in public and private market valuations. A data driven and collaborative process led us to the decision to sell four assets. Proceeds were utilized to repurchase our shares and acquire an asset we gained access to through our debt and preferred equity program. Dave will further discuss our capital allocation activities in his remarks. Staying on the topic, we continually evaluate opportunities to diversify our sources of capital. Our thoughtful and thorough research focused on investors of the future pointed to an opportunity to expand our reach to grow a segment of capital, namely high net worth investors, family office, and institutional products who collectively value frequent cash distributions. As a result, yesterday, we announced the transition to a monthly dividend. UDR, Inc. is the first residential REIT to do so. The stability and growth of the apartment industry coupled with UDR, Inc.'s operating and capital allocation acumen has led to 53 straight years of dividends totaling nearly $9 billion. We expect the relatability and transparency of the apartment industry and our robust track record to appeal to these investors who value frequent cash distributions. Stepping back, we feel good about 2026 thus far, but we have only completed the first four months of the year. Accordingly, we are maintaining our full year 2026 same store and earnings guidance, which we will reassess next quarter. From a big picture perspective, I remain optimistic about the long-term growth prospects of UDR, Inc. The fundamental outlook for the apartment industry is encouraging, with resilient demand, a shrinking future multifamily supply pipeline, and attractive relative affordability of apartments versus other forms of housing. Our culture, strategy, and proven team position UDR, Inc. well to take advantage of these fundamental strengths. Finally, I would like to take a moment to recognize Katie Katna and Diane Warfield who have decided not to seek reelection to our board. Katie and Diane have been respected voices in our boardroom and we are thankful for their stewardship and contribution to UDR, Inc. With that, I will turn the call over to Mike. Mike Lacey: Thanks, Tom. Today, I will cover our first quarter same store results and recent operating trends as well as strategic positioning. 2026 is unfolding as we anticipated and first quarter results were in line with our expectations. We leveraged real-time data to focus on total revenue and cash flow growth. In particular, we strategically started the year in a position of operating strength with occupancy of 97%, which enabled us to tactically adjust our revenue drivers to deliver year-over-year same store revenue growth of positive 90 basis points. Specific to the quarter, blended lease rate growth of 1.6%, occupancy in the mid-96% range, and mid-single-digit innovation income growth all came in as expected. Results were bolstered by resident retention that was 300 basis points higher than the prior year. This enabled us to achieve renewal rate growth of 5.2%, which was 70 basis points higher than a year ago and nearly twice as high as 2025. This strength is representative of our focus on attracting high quality residents who value the UDR, Inc. living experience. Rent-to-income levels of our new residents are stronger than the long-term average, which suggests an encouraging outlook for renewal growth going forward. Shifting to expenses, same store expense growth of 4.4% was elevated due to the impact of winter storms across our portfolio. If normalizing for the approximately $1.4 million of incremental expenses from items such as snow removal and higher utility costs, our same store expense growth would have been approximately 100 basis points better or just below the midpoint of our full year expense guidance range. As we start the second quarter, our revenue drivers are trending as anticipated. We continue to expect blended lease rate growth for the second quarter will be between 1.5%–2% with occupancy in the mid-96% range. Our regional leaders in the first quarter continue to perform well thus far in the second quarter. On the West Coast, San Francisco is a standout market with the strongest revenue growth across our portfolio, driven by blended lease rate growth of approximately 10% and occupancy in the high 97% range. The East Coast market of New York is also delivering strong revenue growth, with blended lease rate growth of approximately 7% and occupancy above 98%. Dallas continues to show the best momentum among our Sunbelt markets. Occupancy is approaching 97% and blended lease rate growth is now positive after improving by 570 basis points since the fourth quarter. In all cases, we have enhanced revenue growth due to our innovation income which includes services and amenities desired by our residents such as community-wide Wi-Fi and package lockers. A glimpse at our dashboards’ forward indicators reveal continued strength in San Francisco and New York as well as positive momentum in Philadelphia and Southern California, particularly Orange County. Our overweight exposure to these markets uniquely positions us to capture upside should these trends continue. The operations team continues to impress me with a data driven approach to set strategies while remaining agile to adjust as market conditions warrant. Two current examples are top of mind. First, having managed our lease cadence to place a higher percentage of expirations in 2026, we are well positioned for the spring and summer. Second, our customer experience project continues to result in sector-high resident retention, which is tracking ahead of plan thus far in 2026. This allows for operating expense savings due to lower turnover and higher revenue growth thanks to a blended lease rate growth more heavily weighted towards renewals, which combined results in better cash flow. We will continue to leverage real-time data as we focus on total revenue and cash flow growth. As a reminder, our full year 2026 guidance assumes first half blended lease rate growth will be the same as the second half at 1.5% to 2%. Said differently, we do not need blended lease rate growth to accelerate throughout the year in order to achieve our revenue growth guidance. To conclude, we delivered first quarter results that were largely in line with expectations and the second quarter is progressing according to plan. We continue to innovate, improve resident satisfaction, and therefore retention, which collectively improves our operating margin. I thank our teams across the country for your hard work, acting with purpose, and creating a highly valuable UDR, Inc. living experience for our residents. I will now turn over the call to Dave. Dave Bragg: Thank you, Mike. The topics I will cover today include our first quarter results and second quarter guidance, recent transactions and capital markets activity, and the balance sheet and liquidity update. To begin, first quarter FFO as adjusted per share of $0.62 achieved the midpoint of our guidance range. The $0.02 sequential FFOA per share decline versus 2025 was driven by the following items: a 3 p decrease in NOI, primarily due to higher sequential expenses attributable to both normal seasonal trends as well as the impact of unusual weather that Mike discussed. This was partially offset by a 1 p benefit from lower corporate expenses and G&A. And due to timing, capital markets and transaction activity was neutral to earnings in the quarter as the benefit from share repurchases was offset by a lower debt and preferred equity investment balance. Looking ahead, our second quarter FFOA per share guidance range is $0.62 to $0.64. The $0.63 midpoint represents an approximately 2% sequential increase that is driven by higher sequential NOI and accretion from share repurchases funded by dispositions. Next on transactions. Our capital allocation heat map continues to guide our strategy. We then apply a data driven and collaborative process to drive our execution. The key theme lately is the public versus private market, presented by an unusually wide disconnect in apartment asset pricing. This allows us to sell lower growth assets for 100¢ on the dollar on Main Street and buy back our shares which represent a superior growth portfolio for 75¢ to 80¢ on the dollar on Wall Street. Thus far in 2026, we have executed the following transactional and capital markets activity. First, we completed the sales of four apartment communities located in Baltimore, Denver, Seattle, and Tampa for gross proceeds of $362 million. Our approach to selecting assets for disposition is not centered around trimming exposure to specific markets or urban and suburban locales. Rather, we study asset level characteristics such as the outlook for rent growth per our proprietary analytical tools, CapEx requirements, and potential operational upside. This group of disposition assets screens inferior on these metrics relative to our retained portfolio. Therefore, utilizing proceeds from these asset sales is accretive on day one, but increasingly so in the future due to the expected differential in forward cash flow growth between the sold properties and our in-place portfolio. Second, we received proceeds of approximately $139 million from the successful and full repayment of two debt and preferred equity investments. Third, we repurchased $150 million of shares bringing total repurchase activity since September to $268 million. Fourth, our debt and preferred equity program allowed us to gain access to two communities in Portland, Oregon through the same partner. The first is a 232 apartment home community acquired in April. The second acquisition will follow in the coming months. The assessment of these opportunities is similar to the disposition process described earlier. Our proprietary analytics tool suggests outsized rent growth for the market and these assets in the coming years. Their CapEx needs are low, and the operating upside potential on the UDR, Inc. platform is high. Another benefit is that our exposure to the Portland market is scaled to a more efficient level. We anticipate a high-5% stabilized yield on these communities. Consistent with the expectations that we laid out on our last earnings call, the size of our debt and preferred equity portfolio has declined due to successful repayments, the opportunity to gain control of the Portland assets, and our view that share repurchases offer superior risk-adjusted returns versus new debt and preferred equity deployment. As a final note on investment activity, thanks to the excellent work of our development team, I am pleased to share that our ground-up development community in Riverside, California known as 3099 Iowa is progressing ahead of schedule. We now expect initial occupancy to occur in 2026 which is earlier than our initial expectation of 2027. The project is also coming in under original budget. Overall, our updated full year 2026 capital sources and uses guidance reflects the activity we have completed year to date. We have additional disposition assets in the market and we remain disciplined sellers. We will update you on incremental dispositions and uses of that capital as the year progresses. Finally, our investment grade balance sheet remains highly liquid and fully capable of funding our capital needs. We have more than $1 billion of liquidity. In all, it has been a highly productive start to 2026. We continue to execute on our strategic priorities with an emphasis on data driven decisions that drive long-term cash flow per share accretion. We will now open the call for questions. Operator: We will now be conducting a question and answer session. We ask that you please limit yourself to one question. If you would like to ask a question, please press star 1 on your telephone keypad. You may press star 2 if you would like to remove your question from the queue. It may be necessary to pick up your handset before pressing the star keys. Our first question is from Eric Wolf with Citibank. Please proceed with your question. Eric Wolf: Hey, thanks for taking my question. In terms of occupancy, I think you said that you expect mid-96% range in the second quarter. I guess, would you expect to drive that higher in the back half of the year? Or have you adjusted your full year occupancy targets a bit based on market conditions? Just curious what the strategy looks like for the next three to six months. Mike Lacey: Hey, Eric. It is Mike. Yes. The way we typically do it is we let occupancy come down in the second and third quarter when we have more demand, more traffic coming through the door. And so we get a bit more aggressive on our rents at that period of time. And typically, what you can expect from us, especially what you are seeing with the fourth quarter, is we drive it up a little bit higher. So if we are running, call it, 96.5% right now, we expect to continue to do that through about the July, August timeframe, and then we may inch it up just a little bit, maybe 10 or 20 bps. Nothing necessarily significant. Operator: Our next question is from Jamie Feldman with Wells Fargo. Please proceed with your question. Jamie Feldman: Great. Thank you for taking the question. I am sorry if I missed it. Did you talk about April trends so far? And if not, can you talk about your new, renewal, and blended rate growth and any markets that stand out in terms of acceleration, deceleration, or versus your expectations? Mike Lacey: Yes, Jamie, great question. There are a few of them there. So let me back up a little bit because I do think it is important to give kind of the whole picture here. As it relates to blended growth, what I would tell you is we are incredibly happy with the start to the year. We were able to push our blends about 370 basis points up from the fourth quarter to 1.6%. A very positive trend there and I am happy to report that it is the highest growth across the peer group on both a relative and an absolute basis. I will also point out, given our diversified portfolio, this is notable. Specific to April, I would tell you more importantly, the second quarter, the strength experienced during the first quarter has continued in that 1.6% range, and we are still on track with that 1.5% to 2% blend that we expect in the first half of this year. A few observations on data: I would say, number one, our coastal regions, which make up about 75% of our NOI, continue to experience the highest growth, about 3.1% blends in April, which is an acceleration from 2.8% during the first quarter. Specific to the Sunbelt, those markets experienced the greatest positive momentum from 4Q to January, but we have seen some of those markets retreat slightly over the past 30 days, going from about negative 1.5% in the first quarter to negative 2.5% in April. All in all, what I would say is we feel good about how we started the year. Our strategy and focus on total revenue and cash flow is playing out as expected. And we are really diving into the lifetime value of our resident, continuing to drive low turnover and higher renewal growth. Specific to the question that you had regarding what we are sending out and what renewals look like, I would tell you again, just to reiterate, our first quarter was almost double what we achieved in the fourth quarter at 5.2%, a very healthy number. Through July at this point, we are still sending out between 5% to 6.5% on renewals. And my expectation is we are going to sign within 100 bps of that. So all in all, we are going to continue to lean into our customer experience project, drive down turnover even further, as well as try to test the market on both new lease growth and renewal growth. Operator: Our next question is from Steve Sakwa with Evercore ISI. Please proceed with your question. Steve Sakwa: Yes, thanks. Good morning. Could you maybe just talk about the debt and preferred book and what maybe future payoffs look like? I think maybe some of these happened a little bit sooner. Just trying to think through the cadence of that and what could or may not happen over the course of 2026, 2027, 2028? Thanks. Dave Bragg: Hey, Steve. Thanks for the question. So on the DPE book, as you know, this is a business that we have been in more than a decade. It is one of several ways that we deploy capital and it was established to allow us to utilize our expertise to earn income and/or gain access to assets that we like. This quarter, we are pleased to report, including today, that there are two assets in Portland that we are excited about gaining access to. That is a market that has moved up on the leaderboard internally from a predictive analytics tool perspective. And with the loans coming due with one operator relationship in that market, we looked at these and we considered the following criteria: operational upside—and Mike and team are excited about the meat on the bone there—the rent growth outlook through our proprietary tool, and relatively low CapEx given the fact that they are new assets. This allows us to scale up in that market. As it relates to the book going forward, that is one of the ways that it is on the decline this year, which is what we expressed last quarter. We have the Portland opportunity, we have successful paybacks that we reported for the first quarter, and then lastly, the other consideration is that the market is frankly just more competitive. And we have remained disciplined in our underwriting. And when we think about the heat map and the uses of capital, we gravitate towards the stock given the fact that it is temporarily and unusually attractively valued. So, directionally, for you, if I was going to help you out with your modeling here, looking at the DPE balance in the high $300 million range at the end of the first quarter, I would point you towards $300 million or so at the end of the year. Operator: Our next question is from Jana Galan with Bank of America. Please proceed with your question. Jana Galan: Thank you, and congrats on the strong start to the year. Mike, I was wondering if you could share any trends you are seeing this spring between A versus B properties or urban versus suburban? And then maybe bigger picture, is this not the right way we should think about the portfolio given this micro-market focus and analytics that your team has developed? Mike Lacey: It is a great question. Definitely one way that we look at it. It is sometimes hard to explain just given the footprint we have. I think it is easier to talk about some of the regions and then dive into some of the markets and what we are experiencing there. So maybe to back up just a little bit, what we are seeing today—and it is not going to surprise you—is the West Coast continuing to do better than, say, the East Coast, followed by the Sunbelt. I would tell you all of them are on track, maybe a few markets doing a little bit better than we expected, as I mentioned in the prepared remarks—specifically San Francisco and New York, and Dallas for us. But as it relates to just kind of A/B, urban/suburban, it does vary by market. I would tell you for us, San Francisco is a good example where urban A is doing better because you have more supply that is impacting as you move down the peninsula. But all in all, that entire MSA is doing well. And then you have a place like Boston as an example, where we are seeing a little bit more of an impact downtown, urban A, and less of an impact at our suburban B assets. It is a little bit market-by-market specific on the A/B, urban/suburban piece of the equation. But again, we do have winners in each of our regions today, and we are off to a pretty good start. Operator: Our next question is from Adam Kramer with Morgan Stanley. Please proceed with your question. Adam Kramer: Thanks for the time, guys. I am just wondering here, recognizing the dispositions that were done so far this year, I think, assets. Just wondering—some of your peers refer to risk of shrinking the enterprise too much from dispositions. Wondering how you think about that, if that is the right framework, if it is more market specific, if there are other drivers of how you think about how many assets you can sell and in what period of time, presumably to generate proceeds to use for the buybacks that you have talked about. Dave Bragg: Adam, I will go ahead and start off with the answer here. First of all, our disposition effort is centered around the playbook that has been in place since September. This is a point in time where there is an unusually wide disconnect between public and private market valuations. I have had the opportunity to follow the space over many years and have seen this a few times before, and my experience is that they prove to be fleeting. And so we are excited about the opportunity to recognize that, sell assets, and then buy back stock in a manner that is accretive while also improving the quality of the portfolio. We can speak more about the dispositions that occurred in the quarter, but your question is more so around the go-forward. What I would tell you is that the playbook will remain the same as long as the stock is as attractively valued as it is. We have more assets on the market and we will remain disciplined sellers, and utilize proceeds where we can to continue to buy back the stock. Operator: Our next question is from Michael Goldsmith with UBS. Please proceed with your question. Analyst: Hi, thanks. This is Amy, I am with Michael. Could you quantify approximately how much impact the portfolio lease realignment strategy may have on same store revenue as we move forward? And I assume we would not see any impact on blends, but let me know if you would expect any impact there as well. Mike Lacey: Yes. I think for us, what you could see, where I would point to—and I mentioned it when I covered the April answer—the fact that we had blends of 1.6% with a diversified portfolio, which was the highest amongst the peer group, I think that points to the strength. And so when we came out of 4Q, just to back up a little bit and talk strategy, our intention was to drive occupancy in that 97% to 97.2% range with the intention of driving our rent higher. For us, I cannot speak specifically for everybody else, but every 1% of blends that we are able to achieve, that is about $7 million to the bottom line over the course of 12 months. And so we think that we have a good start on the peers in the first quarter. And our intention is to continue to find those opportunities. It is a property-by-property and sometimes unit-by-unit level basis to find those opportunities to drive our blends going forward. And so our expectations right now—we are on track, but more to come. And I think we will know a lot more when we get together at NAREIT. Operator: Our next question is from Julien Blouin with Goldman Sachs. Please proceed with your question. Julien Blouin: Thank you for taking my question. I am just wondering, is there any competitive disadvantage to you if consolidation among large peers occurs in some of your markets and, you know, just suddenly there being a player with greater scale? Does that give them a data advantage in terms of informing their decisions in those markets? Is that piece meaningful at all? And I guess separately, do you worry at all about a transaction potentially attracting, you know, regulatory or political scrutiny right now? Tom Toomey: You know, Julien, this is Toomey. I will take a couple of parts of that question and ask the group to weigh in as needed. With respect to the regulatory environment and potential transactions or M&A, I will not comment—I cannot speculate where the government is or where the government is going. And, frankly, if you can get that crystal ball, bud, we can do really well in life, but I do not have that one. With respect to the industry, I would say this: it is a very fragmented industry. There have been dominant players. I have been at it over 35 years, and there have been dominant players, and yet everyone finds their space and their way to create value. I tend to think that we have uncovered ours over the years, and it is not requiring size to grow or accrete, if you will. We have tried to look at it and say excellence is the important thing to all successful companies, and size is sometimes an advantage, sometimes not. Excellence, particularly in operations, in capital allocation, and innovation. And so I think we are focused on that path. Having large dominating companies in some other spaces has worked, but they generally ultimately relate to whether they control the customer. In the case of, if you look at Simon mall company, they have a very good stranglehold on malls across the globe and are able to influence the customer. Or Prologis, where they have been able to influence logistics across the globe. The apartment industry is awfully fragmented for that. And I do not see that as being an achievable element where any of us are going to be able to control the customer segmentation/traffic, etcetera. So I would always welcome input on how we can get better. We will keep focusing on that. But I think you have a sense of where our head is. Operator: Next question is from John Kim with BMO Capital Markets. Please proceed with your question. John Kim: I was going to ask that last question, but maybe I will tie that into something else. If you were a bigger company, would that attract a different shareholder base? And I wanted to tie it into the monthly dividend. From our perspective, it looks like a way to attract retail shareholders, maybe a bit of a gimmick. I am sure that is not the way that you look at it. So maybe if you could just comment on your decision to go the monthly dividend route. Tom Toomey: Yes, John, this is Toomey again. I will ask the team to weigh in. I am really excited about the monthly dividend. Why? Because this is a topic that came up on our radar almost two years ago when we were looking at diversifying our capital sources. And that includes diversifying our shareholder base that would end up being drawn to our stock. What it really kicked into was how much is tied up in high net worth families and family office business. And also as we started talking more and more with Wall Street and large capital allocators, they were coming together with products to bring to the market and a monthly dividend became a selling point. And so for us, we see that as kind of shareholder-of-the-future expansion opportunity. People are looking at what is the stream durability and record of your delivery of that cash flow, and monthly is winning out over quarterly, over annually. So that was an important element in the decision. And then as we got farther into the research, looking at the depth of it, what was striking to me was our track record of 53 years and nearly $9 billion in dividends paid out. So we have the record. We have the business model that furnishes that cash flow. I think everybody knows what the apartment industry is like across America and can relate to it. So it seems, heck, let us give it a try. And I am looking forward to the receptiveness of it. We think it will be very positive, and that is why we have done it. I think it is a net-net positive for us. Dave Bragg: I would just add—this is Dave. I want to add one angle here. The monthly dividend switch is part of a broader push on our behalf to appeal to retail shareholders. And what they will see from us over time is a multifaceted game plan around that with a lot of outreach, adjustments to our marketing, etcetera. And we are committed to sticking to that. So this is one maneuver that gets their attention, but you and especially those retail investors will see more from us over time. And we are optimistic. The apartment business is very relatable to that cohort. It is something that resonates with them in terms of the cash flow of the residents, through us and then out to shareholders. So we look forward to seeing this play out. John Kim: I mean, if you have a large multifamily company that is doubling in size, does that attract a different shareholder base? There are other large companies that may attract more general equity investors, and I am wondering if that is something that has entered your mindset at all. Tom Toomey: My guess is looking at it over time, certainly you get reindexed, and you get a larger aspect of that. I think that is a net positive. Do you get other investors? I think active money is still trying to beat the index, and so they are going to move their money around to where they think the greatest growth and opportunities are. It is hard to grow a battleship as much as it is a light cruiser. So I think it just plays out where there is enough capital out there. If you are doing a good job, you will find it, match it up, and you will grow your company accretively. And I think that is the critical element that we all have to continue to focus on—growing accretively is critical, not size. Operator: Our next question is from Rich Anderson with Cantor Fitzgerald. Please proceed with your question. Rich Anderson: Thanks. Good morning. By the way, the Anderson family office is thrilled with the monthly dividend. The question I have is on turnover. When I started covering the space, annual turnover was 65%–70%. You guys are at 29% as of the first quarter. Is there an efficient frontier to the point where you could just have too low of turnover and maybe people are just not moving, and that might help explain, not just for UDR, Inc., but generally, why you are having such a tough time digging out of the hole of negative new lease rate growth? I am curious if you think there is any logic behind this idea that maybe turnover has just gotten too low and you are not at the frontier from a rent growth perspective. Tom Toomey: Yes, Rich. And I am glad to hear the Rich Anderson family office is eager about UDR, Inc. Here are a couple things to think about. You are right—turnover used to be a high number, and you were looking at your business from the number of days occupied, who was paying rent, etcetera. I think with the new datasets that we are seeing, and when we start looking at our rent roll, what it turns out to be is high-quality residents over longer periods of time generate more cash flow than a high-turn, resetting-the-market approach. So if you are in the cash flow business, you actually want low turnover taking rent increases. And then you ask yourself, what is the impact on your long-term business? Well, you are going to have greater cash flow. In our business right now, 60,000 apartment homes. The truth is annually, we only need to find 20,000 residents that are new. And I know everyone is focused on new rates. The question really is what is the capture rate of your renewals and what is the durability of that cash flow? And so now we are starting to endeavor into how do we move the quality of our rent roll up because, ultimately, real estate is valued by virtue of what is the underlying quality cash flow and the lessee of that. And can we make it a better quality rental available? So I covered a lot of different points there. Maybe Mike can clean me up a little bit. Mike Lacey: Yes, a few points I would add. First and foremost, the way we think about it is 2012–2019 turnover averaged about 51%. And so we have reduced that by about 1,200 basis points. Since we started getting into the customer experience project back in 2023, we have been able to improve turnover by about 800 basis points, which turns out to be about 400 basis points better than the peer average. We have made a lot of strides. I can tell you we are still learning a ton every day. What is interesting—when we went into the year, our expectation around turnover was it was probably going to be roughly flat on a year-over-year basis. Turns out we are about 300 basis points better on a year-over-year basis. Where we have been leaning into as of late, and you can see it in our renewal growth, is where can we start pivoting and trying to drive that number as well. Happy to report that 5.2% in the first quarter is very strong. Overall, we have come a long way. We are still learning. We still think there is opportunity on this front. And to Tom’s point, there is a whole other iteration that is to come, and that is around how we think about pricing, how we think about marketing, and how we truly drive that cash flow even higher. Tom Toomey: Mike, thanks for helping me. Operator: Our next question is from Alexander Goldfarb with Piper Sandler. Please proceed with your question. Alexander Goldfarb: Hey, good morning out there. Tom, certainly appreciate the focus and emphasis on the dividend—it is a big part of total return. But if you think about going after the retail crowd or the high net worth crowd, a few things come to mind. One is it seems like a lot of these private REITs or other similar products have higher dividend yields; they go after maybe, I do not want to say lower quality, but, you know, more generic assets that have higher current income. The other is sales load commissions that private REITs pay. Clearly, you are not doing that. So how do you think about getting your dividend competitive—and also competing when you are not paying commission? How do you think about breaking into that high net worth and that whole distribution channel that the private REITs and those other structured products seem to enjoy for themselves? Dave Bragg: Alex, great topic, something that we have discussed internally extensively as we worked on this project, and Tom did say it is something that the team has been working on for some time and put a lot of thought into. Really, it is an opportunity for us and the broader REIT space to educate the marketplace on the virtues of REIT investing. And I thought that you covered it well, Alex. It is about the total return. The dividend yield is a part of that. Unfortunately, in some of these other products, sizable fees can eat into that. So it is an opportunity in front of us, and we already have a nice schedule of appearances and conversations set up that will put us well on our way towards executing on that. We know that there are other products out there that are marketed in certain ways, but we believe that the numbers speak for themselves, and we look forward to educating that cohort on it. Tom Toomey: Alex, this is Toomey. I would just add: you are right with respect to the fee and yield trade-off, but one aspect that REITs have is liquidity and transparency, which a lot of these other products lack. When we have talked with investors in those products, they are waiting on the appraisal, they do not know when their window can open or close. Here, you have a security that underlies it—every day you understand what it is worth. It has liquidity and size and scope, and you have transparency. Operator: Our next question is from Austin Wurschmidt with KeyBanc Capital Markets. Please proceed with your question. Austin Wurschmidt: Mike, wanted to revisit your commentary around the Sunbelt lease rate growth moderating in April and was hoping you could provide some additional details to what is driving that softening and if you think it is something temporary or you are seeing it persist into May and June. And was it also specific to any one or two markets or broad based? Thanks. Mike Lacey: Great question, Austin. What we are experiencing right now I think is more of a blip, if you will, because we do still expect that we could see more of an inflection in the Sunbelt this year at some point. That is built into how we looked at our guidance for the year. Right now, I would tell you it is a little bit more specific to, say, Florida than it is in Texas, as well as even Nashville saw a little bit of a downtick, if you will. I think some of it has to do with market rents just not moving up as much as we would have expected over the last, call it, 30 to 45 days. And with that, you do have to negotiate a little bit more on your renewals. And so we were pretty aggressive with our renewals as you could see with what we signed. I think we had to retreat a little bit in some of those Sunbelt markets. But my expectation is we are going to continue to work through the supply down there, and we could see market rents start to move back up throughout the summer, and that could help us continue to try to drive those markets as we go forward. Operator: Our next question is from Haendel St. Juste with Mizuho Securities. Please proceed with your question. Analyst: Hi. This is Mike on with Haendel at Mizuho. Our question is, how does UDR, Inc. assess the risk to their Boston portfolio from the Massachusetts proposed statewide rent control measure on the ballot this upcoming November? And can you just remind us, is UDR, Inc. spending additional advocacy costs within the guide and what cap rate/unlevered IRR would a Boston apartment trade at today? Christopher Van ens: Sure. I can take the initial ones. I do not think we are ready to handicap the risk yet. We are still very early in the process. As you probably know, we are actively engaged with local owners’ groups, including some of our large public peers, and larger trade group partners to oppose the measure in Boston right now. With regards to how that is proceeding, we will provide updates as appropriate moving forward. There is just not really a great update to provide right now. Fundraising is happening. We have contributed—I can let Dave talk to that or I am happy to talk to the contribution part as well—that is probably in the neighborhood right now of around half a million dollars that we have given to the initiative. Most likely, we will go higher over the next couple of quarters. I will stress though that this is nothing compared to what was spent in California on the ballot initiatives. Massachusetts is obviously a much smaller market. So we feel that from a cost perspective, from a funding perspective, it will be a relatively smaller fraction than what we saw in California. As far as pricing, I can touch on that. It is hard to generalize across the market, but what I would tell you is this uncertainty has had an impact. We have seen less transaction volume, that makes it harder to decipher exactly where cap rates are, but our experience is directionally this uncertainty at this point in time has had an adverse impact on price. Tom Toomey: This is Toomey. I might add: one thing interesting because we have talked and said, is it a buying opportunity given the market is frozen? I think you have to be careful about that, but I think with our team and our insight with respect to how this is progressing, I would not take it off the map. It screens well—some of the markets in our analytics on a long-term basis—and it might be a good arbitrage window. But we will keep looking at it. Operator: If you would like to ask a question, please press star 1 on your telephone keypad. Our next question is from Alex Kim with Zelman and Associates. Please proceed with your question. Alex Kim: Hey, guys. Thanks for taking my question. Wanted to focus a little bit on San Francisco, which you have highlighted as a standout market. Given some of the growing debate around AI CapEx sustainability, tech headcount plateauing, and some federal deregulatory risk to tech market dynamics, just curious if there is a kind of read-through that you see in terms of the recent macro noise in your leasing velocity or traffic? And what is your stress case look like for the market? Mike Lacey: Sure. I will start if anybody else wants to jump in. Right now, what we are seeing is continued strength. And I think when you talk about AI and the jobs and everything that could happen there, I think you have to think of a few other points. For us in San Francisco, I am looking at—and how I think about the market—is very low supply, not only today but also into the future. So we have that backdrop. We do see the return to office that is in effect right now. We are seeing more migration, people coming closer to the work. And so places like SoMa and Downtown are definitely seeing their fair share of traffic today. And that AI growth is more specific in that Downtown/SoMa area as well. We continue to see a lot of momentum, not only on the traffic side, but on our market rents, which leads to renewal growth as well. In addition, the city is vibrant. We are seeing bars and restaurants start to open back up. We are seeing more retail return to that city. And at the end of the day, we have low rent-to-income ratios. So there are a multitude of things that are playing as a positive in San Francisco. Our expectation is we are going to continue to see strength in that market for the foreseeable future. Operator: Our next question is from Mason Gale with Baird. Please proceed with your question. Mason Gale: Thanks for taking my question. Could you talk about how you are viewing potential development opportunities today? If you would look to start development on some of your land parcels in the near term? Dave Bragg: Hey, Mason. Thanks for the question. As we noted in the opening, we are really pleased with the progress on the asset that we do have under development. As it relates to the go-forward, when we look at our land bank, we have a couple of existing sites that do fit comfortably in our strike zone, and I will describe that. First, they are adjacent to existing operating assets, so they are essentially expansions in submarkets that we know well. Second, they are stick build or podium. And third, the returns on incremental cash deployed through our land would be above 6% if activated. So, there is an opportunity to activate these and deliver into a less competitive supply environment in 2027 and 2028. If you were to see movement from us on that front, that is what would describe it. Operator: Our next question is from John Pawlowski with Green Street. Please proceed with your question. John Pawlowski: Hey. Thanks for the time. I apologize if this has been asked. I joined the call late. Dave, could you share the range of cap rates on the four dispositions in the quarter as well as the, I guess, the effective cap rate on the Portland, Oregon asset you consolidated? Dave Bragg: Hey, John. Thank you for the question. As it relates to the assets that we sold—four assets—I want to tell you a little bit about them because it puts it in perspective. Average age, 38 years. Rents below the portfolio average, but that is not highly important. What is more important is that through our lens, the outlook for rent growth is inferior to the retained portfolio, and certainly the CapEx needs are above average. So when we talk about these criteria for acquisitions and dispositions, this group of assets checks those boxes. We saw pretty deep and competitive bidding pools for these assets. Pricing came in within a few percentage points of our expectations. Market cap rate in the mid-5% range. Then as we think about Portland and the opportunity that we are excited about there, I would characterize that yield today as around a 5%. A lot of work for Mike and team to do to get in and stabilize it and work his magic from an operational perspective will get us to a stabilized yield in the high-5% range. Operator: Our next question is from Brad Heffern with RBC. Please proceed with your question. Brad Heffern: Yes. Hey, everybody. Thanks. Another on Portland. You obviously mentioned it has moved up your ranking list and you are taking on a couple assets there. At the same time, it is kind of a smaller market. It does not have a ton of exposure for the public REITs. I think part of that is just it has been a relatively challenging regulatory environment at times. I am just wondering if you can talk about maybe the positive aspects that you see and how that balances out with the negative? Christopher Van ens: Sure, Brad. Maybe I will start and then I will throw it over to Lacey if he wants to say anything as well. At a high level, Portland does look right now like one of our better markets from a demand/supply perspective. I would tell you 2026 job forecasts for the market have doubled since the beginning of the year. Wage growth acceleration is actually the best within our market footprint right now. On the supply side, similar to what Mike talked about in San Francisco, deliveries are way down. 2026 deliveries are only supposed to be about 0.7% of stock—similar in 2027. Both of those are well below what we saw in 2024 and 2025. And importantly, most of those deliveries are concentrated away from these two assets. But as you alluded to, our analytics obviously dig much deeper than the high level. For these assets, our platform likes Portland as a market; it thinks it is on the upswing as we look across our broad set of variables. More importantly for the assets themselves, it generally likes the demographics, it likes the psychographics, it likes the asset-level characteristics, the micro-location, new supply outlooks, all that kind of stuff for both of those assets. And obviously, when you combine all those things, per our analytics that should translate into outsized rent and cash flow growth moving forward—beyond or instead of what Mike can also put on top of it, and I will let him talk about some of that. Mike Lacey: Thanks, Chris. How I think about the market as well as the opportunity we see at these sites: first of all, it is a relatively small market for us. The team has always performed well here. As an example, the occupancy today is above 97%, and we are seeing blends in that 2% to 3% range. We view this opportunity as providing more scale. It does effectively double the size of the market for us. And for these properties specifically, we think we can drive that controllable operating margin between, call it, 300 to 400 bps over the next 12 to 18 months, just through staffing efficiencies, vendor consolidation, and other income opportunities. So we are looking forward to getting our hands on them. Operator: Our last question comes from Omotayo Okusanya with Deutsche Bank. Please proceed with your question. Omotayo Okusanya: Hi. Yes. Good afternoon. I just wanted to go back to the regulatory front. You did discuss Boston, but just kind of curious in terms of some of the other headlines out there: Senator Warren holding a whole bunch of the residential REITs to divulge more information about their business operation; some of the stuff President Trump is trying to do to improve housing affordability; the news from Washington, DC the other day about, you know, MA being sued to provide more insight into their rent structures and junk fees. When you think collectively from a regulatory perspective, are there any real concerns that some of that could impact how the business is run going forward, or does it feel like a lot of noise, and it should be business as usual at the end of the day? Christopher Van ens: Yes. It is honestly too early to talk about how some of those bigger picture pushes at the federal level might affect operations. I can tell you once again, the things that we are focused on right now are really tenant-friendly initiatives or policy changes. We already spoke about Massachusetts. But for us in particular, we are also looking at Salinas, California; we are looking at New York City; we are looking at, more recently, DC proper. Obviously, if any of those measures go through, they would have a tangible direct impact potentially to our assets in those areas. Once again, we formed ownership groups, we have contributed funds along with our peer partners, and we are working with larger trade groups to defeat those measures. The positive for UDR, Inc. is that we have a very in-depth governmental affairs team that monitors the federal level, the state level, and the local level, and they keep all of our capital and operations teams apprised of any changes that should occur, whether positive or negative. That is what we go off of and we are able to handicap what we think is going to happen going forward. So that is what we are looking at right now. Tom Toomey: Taylor, this is Toomey. I would just add this. I am proud of the industry pulling itself together and educating politicians on what good housing policy looks like. I think we want a thriving America, a thriving housing marketplace, and there are ways to get there without just pandering and stopping development or stopping rent growth. Capital makes better homes. And capital is not going to arrive at the space if it feels threatened. I think politicians get that, and as we have educated them more and more, we see more of how do we work together to create thriving communities. It is not being ignored. It just takes a long time to bend the curve, if you will. Operator: This now concludes our question and answer session. I would like to turn the floor back over to Tom Toomey for closing comments. Tom Toomey: First, let me thank all of you for your time, interest, and support of UDR, Inc. I thought it was a very productive call today and always welcome your insight, follow-up questions, and the team is always available for that. We look forward to seeing you at many of the upcoming industry events over the next couple months. Take care. Operator: This does conclude today’s teleconference. Please disconnect your lines and have a wonderful day. 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