UDR Q2 net income per share rises on leasing strength

Overview

• U.S. apartment REIT's Q2 net income per share rose to $0.21 from $0.11 yr/yr

• Q2 same-store revenue up 1.8% yr/yr; NOI grew 1.4%

• Company repurchased $200.3 mln shares and began monthly dividend payments

Outlook

• UDR raises full-year 2026 Net Income guidance to $1.03-$1.11 per diluted share

• Company sees full-year 2026 FFOA per diluted share between $2.49 and $2.57

• UDR expects full-year 2026 Same-Store NOI growth of 0.00% to 1.25%

Result Drivers

• LEASING STRENGTH - Co said stronger leasing activity and blended lease rate growth above prior guidance drove Q2 results

• PROPERTY SALES OFFSET GAINS - Revenue growth from same-store and acquired communities was offset by removal of revenue from properties that were sold

• HIGH OCCUPANCY AND RETENTION - Occupancy remained in the mid-96% range and resident retention reached a seasonally adjusted all-time high

Company press release: ID:nBw4Zqc6Xa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 11 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the residential reits peer group is "buy."

• Wall Street's median 12-month price target for UDR Inc is $42.00, about 6.1% above its July 24 closing price of $39.59

• The stock recently traded at 60 times the next 12-month earnings vs. a P/E of 62 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)