UDR Inc. projects an 80- to 100-basis-point same-store revenue earn-in for 2027, setting an early benchmark for the U.S. apartment owner's next annual financial forecast.
UDR Chief Operating Officer Mike Lacy gave the estimate on a Nov. 3 earnings call. He said the eventual figure depends on the company's results through the end of 2026. It is an early expectation rather than formal guidance.
The company's third-quarter results provide a measure of its current growth. Same-store revenue rose 1.8% from a year earlier when the 19 communities placed in its Apollo venture were excluded. Including those communities, the increase was 1.5%.
UDR raised its 2026 outlook for same-store revenue growth to 1.4% to 1.8% and for same-store net operating income growth to 0.8% to 1.2%. It also narrowed its full-year forecast for adjusted funds from operations to $2.54 to $2.56 per diluted share, compared with a previous range of $2.49 to $2.57.
Adjusted funds from operations for the third quarter held steady at $0.65 per diluted share. Total revenue declined 0.9% to $428.081 million from $431.864 million. Net income rose to $0.67 per diluted share from $0.12; a real estate sale contributed a gain of $190.084 million in the quarter.
The previously announced Apollo venture closed Oct. 30. Apollo-managed funds and affiliates invested $1.34 billion in the approximately $2 billion venture and received about a two-thirds interest. UDR retained a one-third stake and continues to manage the 19 communities, which contain 7,059 apartments.
Before the closing, UDR Chief Financial Officer Dave Bragg described the partnership as a source of permanent equity at a low cost. He said UDR intended to use the proceeds for debt reduction, corporate needs and assets with stronger growth prospects.
UDR expects to publish its formal 2027 guidance in February.
