UDR (UDR) Q4 2025 earnings summary

Executive summary

• Full year 2025 FFOA per share and same-store growth exceeded initial guidance, with Q4 same-store NOI and net income per diluted share for 2025 up 335% year-over-year.

• Positive operating momentum from late 2025 has continued into 2026, with accelerating lease rate growth, high occupancy, and strong other income growth.

• Entered a period of less competitive supply, supporting a favorable growth profile for 2026.

• Nearly $120 million of stock repurchased in 2025, with continued focus on disciplined capital allocation.

• Announced 2026 guidance ranges and a 1.2% increase in annualized dividend per share.

Financial highlights

• Q4 and full year 2025 FFOA as adjusted per share were $0.64 and $2.54, respectively, both at the midpoint of guidance; FFO per diluted share was $2.43, up 6% year-over-year.

• Same-store expense and NOI growth beat expectations; same-store revenue growth met guidance.

• Acquired Enclave at Potomac Club for $147–$147.7 million and expanded a joint venture with LaSalle by $230–$231.6 million.

• Used $200 million in JV proceeds to repay $128 million of debt and repurchase $93 million of stock at a discount to NAV.

• Total revenue in Q4 2025 increased by $10.4 million (2.5%) year-over-year to $433.1 million.

Outlook and guidance

• 2026 FFOA per share guidance is $2.47–$2.57, with a midpoint of $2.52, representing a slight year-over-year decline due to non-recurring 2025 items.

• Same-store revenue growth guidance for 2026 is 0.25%–2.25% (midpoint 1.25%), driven by blended lease rate growth and innovation.

• Same-store expense growth expected at 3.75% midpoint, mainly from real estate taxes, repairs/maintenance, and admin/marketing.

• Net seller of assets in 2026, with active marketing of $700 million in properties and plans for 1031 exchanges to manage tax gains.

• 2026 full-year net income per diluted share guidance: $0.45 to $0.55.