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1. Company Snapshot

1.a. Company Description

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 September 30, 2020, UDR owned or had an ownership position in 51,649 apartment homes including 1,031 homes under development.


For over 48 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.

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1.b. Last Insights on UDR

UDR, Inc.'s recent performance was positively driven by strong Q4 2025 earnings, with FFOA per Share reaching $0.64 and same-store NOI growth exceeding expectations. The company's high occupancy rates, tenant retention, and disciplined cost management contributed to operational stability and incremental cash flow. Additionally, management's capital recycling efforts through net real estate sales and share repurchases at discounts to NAV, while maintaining a strong balance sheet, have been beneficial. A consensus "Hold" rating from brokerages, with a 4.6% dividend yield, further supports the stock.

1.c. Company Highlights

2. UDR's 2025 Earnings: Strong Performance and Optimistic Outlook

UDR reported a strong financial performance in 2025, with Full Year 2025 FFOA per share and same store revenue expense and NOI growth results exceeding initial guidance at midpoint. The company's actual EPS came out at $0.64, in line with estimates. The revenue growth was driven by a combination of factors, including blended lease rate growth, contributions from other income innovation, and sustained occupancy and bad debt. The company's same-store revenue growth was at or above peer median across 13 of the 14 markets shared with public peers, an accomplishment they've never seen before.

Publication Date: Feb -15

📋 Highlights
  • Exceeded 2025 Guidance:: Full year 2025 FFOA per share and same-store revenue, expense, and NOI growth surpassed initial guidance at midpoint.
  • Stock Repurchases:: UDR repurchased $120 million of its stock in 2025, leveraging its capital allocation strategy.
  • 2026 Lease Rate Growth:: Blended lease rate growth guidance set at 1.52% to 2%, with coastal markets projected at 2–2.5% and Sunbelt at 0–50 bps.
  • Balance Sheet Strength:: Positioned to fund capital needs into 2026, with cost control exceeding 2025 goals at 2.6% expense growth.
  • Market Momentum:: Positive operating trends continued into 2026, including high occupancy (96%+), accelerating lease rates, and $1B in dispositions planned for 2026.

Operational Highlights

The company's operating successes in 2026 include accelerating blended lease rate growth and occupancy in the high 96% range. UDR is positioned to take advantage of external growth opportunities and will continue to utilize various sources of capital to accretively grow the company while managing costs of capital. The company is also focused on converting data into actions that increase cash flow, with a unique approach that reinforces its stature as a full-cycle investment appealing to shareholders.

Guidance and Outlook

For the full year 2026, UDR is expecting a blended rate growth of 1.5% to 2%. The company is also expecting other revenue growth to be in the mid-single-digit range, driven by initiatives such as Wi-Fi, parking, and package lockers. Analysts estimate next year's revenue growth at 3.3%. The company's guidance is supported by its strong balance sheet, which enables multiple avenues to drive value creation.

Valuation

UDR's current valuation metrics indicate a P/E Ratio of 33.2, P/B Ratio of 3.81, and Dividend Yield of 4.52%. The company's ROE is 11.43%, and its ROIC is 32.98%. These metrics suggest that the market is pricing in a certain level of growth and profitability for the company. With its strong operational performance and optimistic outlook, UDR appears to be well-positioned to deliver value to its shareholders.

Management's Strategy

As Mike Lacey, Chief Operating Officer, noted, the company is focused on driving occupancy through efficiency and optimization, aiming for 5% renewal growth. The company's strategy includes reducing vacant days, moving residents in faster, and leveraging its CRM and maintenance platform to identify and collect pet rent from non-paying residents. This proactive approach is expected to drive positive outcomes and create value for shareholders.

3. NewsRoom

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4 'Safer' Dividend Buys In Barron's 23 Better March Bets Than T-Bills

Mar -14

Source: seekingalpha.com

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United Dominion Realty Trust, Inc. (NYSE:UDR) Given Consensus Recommendation of “Hold” by Brokerages

Mar -10

Source: defenseworld.net

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UDR, Inc. (UDR) Presents at Citi's Miami Global Property CEO Conference 2026 Transcript

Mar -03

Source: seekingalpha.com

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UDR to Participate in 2026 Citi Global Property CEO Conference

Feb -27

Source: businesswire.com

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Diamond Hill Small-Mid Cap Fund Q4 2025 Portfolio Activity

Feb -27

Source: seekingalpha.com

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UDR: Why This Unloved REIT Is A Solid 'Buy'

Feb -23

Source: seekingalpha.com

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United Dominion Realty Trust (NYSE:UDR) Stock Passes Above 200 Day Moving Average – What’s Next?

Feb -21

Source: defenseworld.net

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United Dominion Realty Trust, Inc. (NYSE:UDR) Given Average Rating of “Hold” by Brokerages

Feb -13

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.42%)

6. Segments

Same-store Communities

Expected Growth: 2.5%

UDR's 2.5% same-store communities growth is driven by a combination of factors, including a strong demand for apartments, limited new supply, and the company's successful implementation of its Next Generation Operating Platform, which has led to increased pricing power and operational efficiencies.

Non-mature Communities/Other

Expected Growth: 1.5%

UDR's Non-mature Communities/Other segment growth of 1.5% is driven by increasing demand for affordable housing, strategic acquisitions, and value-add renovations. Additionally, the segment benefits from a growing presence in high-growth markets, such as the Sunbelt region, and a focus on operational efficiencies to drive revenue growth.

7. Detailed Products

Apartment Communities

UDR, Inc. owns and operates a portfolio of apartment communities across the United States, offering a range of floor plans, amenities, and services to residents.

Property Management Services

UDR provides property management services to third-party owners, including leasing, marketing, and maintenance services.

Development and Construction Services

UDR develops and constructs new apartment communities, offering a range of services from site acquisition to project completion.

Real Estate Investment Trust (REIT) Services

UDR operates as a REIT, providing a range of investment opportunities for individuals and institutions.

8. UDR, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

UDR, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

UDR, Inc. has a large customer base, but the bargaining power of customers is high due to the availability of alternative housing options.

Bargaining Power Of Suppliers

UDR, Inc. has a diversified supplier base, which reduces the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is moderate due to the high barriers to entry in the real estate industry, but UDR, Inc. must still be vigilant to maintain its market share.

Intensity Of Rivalry

The real estate industry is highly competitive, and UDR, Inc. faces intense rivalry from other companies, which can lead to pricing pressure and decreased market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.88%
Debt Cost 3.95%
Equity Weight 39.12%
Equity Cost 7.80%
WACC 5.45%
Leverage 155.63%

11. Quality Control: UDR, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Essex Property Trust

A-Score: 5.9/10

Value: 3.3

Growth: 5.6

Quality: 6.7

Yield: 7.0

Momentum: 3.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Mid-America Apartment Communities

A-Score: 5.6/10

Value: 2.8

Growth: 5.2

Quality: 5.5

Yield: 7.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Equity Lifestyle Properties

A-Score: 5.4/10

Value: 2.1

Growth: 5.2

Quality: 6.2

Yield: 5.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Independence Realty Trust

A-Score: 5.4/10

Value: 2.8

Growth: 5.8

Quality: 4.6

Yield: 7.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
UDR

A-Score: 5.1/10

Value: 2.3

Growth: 3.9

Quality: 4.4

Yield: 8.0

Momentum: 2.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Apartment Income REIT

A-Score: 4.6/10

Value: 4.4

Growth: 4.3

Quality: 5.4

Yield: 4.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.81$

Current Price

35.81$

Potential

-0.00%

Expected Cash-Flows