UDR Closes $2 Billion Apollo Joint Venture and Lifts Full-Year Guidance
UDR, Inc. closed a $2 billion joint venture with Apollo, reported third-quarter 2026 results, and lifted its full-year guidance for funds from operations as adjusted.
Apartment landlord UDR, Inc. recently closed a $2 billion joint venture with Apollo and raised portions of its full-year financial outlook. Under the arrangement, UDR contributed 19 apartment communities comprising more than 7,000 homes at an implied capitalization rate of 6%. The company secured $1.34 billion in equity capital from Apollo while retaining a one-third ownership stake and operating responsibilities, which will generate ongoing asset management fee income.
Alongside the venture closing, the multifamily real estate investment trust reported third-quarter 2026 revenue of US$428.08 million, sales of US$424.58 million, and net income of US$216.09 million. Diluted earnings per share reached US$0.67, up from US$0.12 in the prior-year period. Funds from operations as adjusted came in at $0.65 per share, sitting at the high end of company guidance.
Operationally, UDR saw same-store revenue rise 1.8% year over year in the third quarter, supported by 2% blended lease-rate growth. Coastal markets led the expansion with blended lease-rate growth of approximately 3%, while Sunbelt markets fell negative 1.5%. Physical occupancy hovered in the mid-96% range, and resident retention hit a third-quarter record of 52%, up 370 basis points from a year earlier. Same-store expenses grew 2.2%.
Following these results, management increased its full-year 2026 guidance for funds from operations as adjusted by $0.02 at the midpoint to $2.55 per share. It also boosted its full-year same-store revenue growth forecast by 22.5 basis points at the midpoint to between positive 1.4% and 1.8%, while lowering expected full-year expense growth by 35 basis points at the midpoint to 2.9%. Full-year net income outlook rose sharply as well, largely reflecting gains on property transactions.
UDR has also pursued other capital allocation efforts. Since the end of the quarter, the company repurchased approximately 5.2 million shares for $185 million, averaging $35.48 per share. Total 2026 wholly owned property sales have reached approximately $700 million at a mid-5% buyer cap rate. Management noted that proceeds from the Apollo transaction should help reduce its debt-to-EBITDA ratio to the low five times range.