UDR's Q4 FFOA Beats Estimates, Revenues & Same-Store NOI Grow Y/Y

UDR Inc. UDR reported fourth-quarter 2025 funds from operations as adjusted (FFOA) per share of 64 cents, meeting the Zacks Consensus Estimate. This also compares favorably with the prior-year quarter’s reported figure of 63 cents.

Results reflected year-over-year growth in same-store net operating income (NOI), led by higher occupancy.

Quarterly revenues from rental income were $428.8 million, which missed the Zacks Consensus Estimate of $429.5 million. Total revenues came in at $433.1 million. On a year-over-year basis, rental income and total revenues rose 2% and 2.5%, respectively.

In 2025, FFOA was $2.54 per share, in line with the Zacks Consensus Estimate. The metric improved 2.4% over the prior-year reported figure. Full-year revenues from rental income of $1.70 billion jumped 2.3% year over year. The figure was in line with the consensus estimate.

UDR’s Fourth Quarter in Detail

In the reported quarter, same-store revenues increased 1.8% year over year. Same-store expenses were up 2%. As a result, same-store NOI improved 1.7%.

Same-store effective blended lease rate declined 2.1% during the quarter, with the effective new lease rate dropping 7.2%. The effective renewal lease rate grew 2.7%.

The residential REIT’s weighted average same-store physical occupancy of 96.9% increased 10 basis points (bps) year over year and 20 bps sequentially. Our estimate was pegged at 96.8%.

UDR’s Balance Sheet Position

As of Dec. 31, 2025, UDR had $905 million of liquidity through a combination of cash and undrawn capacity on its credit facilities.

Total debt was $5.8 billion as of the same date, with only $356.7 million, or 6.7% of total consolidated debt, maturing through 2026. Net debt-to-EBITDAre of 5.5X in the fourth quarter remained unchanged from the prior quarter.

UDR ended the quarter with a weighted average interest rate of 3.4% and a weighted average years to maturity of 4.3 years.

During the fourth quarter, UDR repurchased around 2.6 million shares of its common stock for a total cost of $92.8 million.

UDR’s Portfolio Activity

During the fourth quarter, UDR acquired The Enclave at Potomac Club, a home community in suburban Metropolitan Washington, D.C., comprising 406 apartment units for around $147.7 million.

2026 Guidance by UDR

The company guided for the first quarter and full-year 2026.

It expects first-quarter 2026 FFOA per share in the range of 61-63 cents. The Zacks Consensus Estimate is currently pegged at 63 cents.

For 2026, FFOA per share is expected in the range of $2.47-$2.57. The Zacks Consensus Estimate is currently pegged at $2.56.

For the full year, on a straight-line basis, the company projects growth rates for same-store revenues of 0.25-2.25%, same-store expenses of 3.00-4.50% and same-store NOI of negative 1.00-1.25%.

UDR’s Zacks Rank

Currently, UDR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Performance of Other Residential REITs

Essex Property Trust Inc. ESS reported fourth-quarter 2025 core FFO per share of $3.98, missing the Zacks Consensus Estimate of $4. This compares favorably with the FFO of $3.92 per share a year ago.

Results reflected favorable growth in same-property NOI and higher occupancy. Higher interest expenses partly acted as a dampener.

AvalonBay Communities AVB reported fourth-quarter 2025 core FFO per share of $2.85, surpassing the Zacks Consensus Estimate of $2.84. The figure increased 1.8% from the prior-year quarter’s tally of $2.80.

Results reflected higher same-store NOI and occupancy growth year over year. Higher interest expenses undermined the performance to an extent. AVB hiked its dividend per share.

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.

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This article originally published on Zacks Investment Research (zacks.com).

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