UDR Expects 80-100-Basis-Point Same-Store Revenue Earn-In in 2027

UDR expects an 80-to-100-basis-point same-store revenue earn-in in 2027 after closing its Apollo joint venture, offering an early view of the U.S. apartment REIT’s outlook for the next year.

Chief Operating Officer Mike Lacy said on Nov. 3, “We expect a 2027 same-store revenue earn-in of 80 to 100 basis points.” Lacy said the eventual amount depends on results through the end of 2026. The figure is an early management expectation, not formal 2027 guidance.

UDR’s approximately $2 billion joint venture with Apollo closed Oct. 30, completing a transaction involving 19 communities and 7,059 apartment homes. Apollo-managed funds and affiliates invested $1.34 billion for about a two-thirds interest. UDR retained one-third and continues to operate and manage the properties. The Apollo venture closing followed the earlier announcement of the partnership.

UDR’s same-store revenue grew 1.8% year over year in the third quarter ended Sept. 30, excluding the 19 communities. With them included, growth was 1.5%. Both figures compare the quarter with the same period a year earlier, but use different groups of properties.

UDR raised its 2026 same-store revenue growth outlook to 1.4%-1.8% and its same-store net operating income growth range to 0.8%-1.2%. It also raised its full-year funds from operations, as adjusted, outlook to $2.54-$2.56 per diluted share, from $2.49-$2.57. Its standard funds from operations guidance is $2.48-$2.50 per diluted share.

Third-quarter results included adjusted funds from operations of $0.65 per diluted share, unchanged from a year earlier, and standard funds from operations of $0.62 per share, also unchanged. Revenue fell 0.9% to $428.081 million from $431.864 million, while same-store net operating income rose 1.6% excluding the venture communities. Net income was $0.67 per diluted share, compared with $0.12 in the year-earlier quarter; UDR recorded a $190.084 million gain on a real estate sale.

UDR plans to provide formal 2027 guidance in February.