UDR, Inc. (the “Company”) (NYSE: UDR), announced today its full third quarter 2026 results, which follows its release of preliminary third quarter 2026 results on October 21, 2026. Net Income, Funds from Operations (“FFO”), and FFO as Adjusted (“FFOA”) per diluted share for the quarter and year-to-date periods ended September 30, 2026, are detailed below.
|
Metric |
Quarter Ended September 30 |
Year-to-Date Ended September 30 |
||
|
2026 |
2025 |
2026 |
2025 |
|
|
Net Income per diluted share |
$0.67 |
$0.12 |
$1.45 |
$0.46 |
|
FFO per diluted share |
$0.62 |
$0.62 |
$1.85 |
$1.81 |
|
FFOA per diluted share |
$0.65 |
$0.65 |
$1.90 |
$1.90 |
Same-Store (“SS”) results for the third quarter 2026 versus the third quarter 2025 and the second quarter 2026 as well as year-to-date 2026 versus year-to-date 2025 are summarized below.(1)
|
SS Growth / (Decline) |
Year-Over-Year (“YOY”): |
Sequential: |
Year-to-Date (YTD) YOY: |
|
Revenue |
1.8% |
0.8% |
1.6% |
|
Expense |
2.2% |
2.9% |
3.2% |
|
Net Operating Income (“NOI”) |
1.6% |
(0.1)% |
0.8% |
|
(1) |
SS growth metrics have been adjusted to exclude the 19 communities that comprise the Company’s joint venture with Apollo which is described later in this release. Including these 19 communities, SS Revenue, Expense, and NOI would be 1.5%, 2.7%, and 1.0% for YOY 3Q 2026, 0.7%, 3.1%, and (0.4)% for sequential 3Q 2026, and 1.4%, 3.2%, and 0.5% for YTD 2026. |
Outlook(1)
As shown in the table below, the Company has established the following guidance ranges for the fourth quarter of 2026, raised its previously provided full-year 2026 guidance ranges for Net Income, FFOA per diluted share, and Same-Store Growth, and updated its previously provided full-year 2026 guidance range for FFO per diluted share.
|
Metric, per diluted share |
3Q 2026 |
YTD 2026 |
4Q 2026 |
Prior |
Updated |
Full-Year 2026 |
||||||
|
Net Income |
$0.67 |
$1.45 |
$0.13 to $0.15 |
$1.03 to $1.11 |
$1.58 to $1.60 |
$1.59 (+$0.52) |
||||||
|
FFO |
$0.62 |
$1.85 |
$0.63 to $0.65 |
$2.47 to $2.55 |
$2.48 to $2.50 |
$2.49 (-$0.02) |
||||||
|
FFOA |
$0.65 |
$1.90 |
$0.63 to $0.65 |
$2.49 to $2.57 |
$2.54 to $2.56 |
$2.55 (+$0.02) |
||||||
|
YOY Growth: |
|
|
|
|
|
|
|
|
|
|
|
|
|
SS Revenue |
1.8% |
1.6% |
N/A |
0.75% to 2.00% |
1.4% to 1.8% |
1.6% (+22.5bps) |
||||||
|
SS Expense |
2.2% |
3.2% |
N/A |
2.75% to 3.75% |
2.7% to 3.1% |
2.9% (-35bps) |
||||||
|
SS NOI |
1.6% |
0.8% |
N/A |
0.00% to 1.25% |
0.8% to 1.2% |
1.0% (+37.5bps) |
|
(1) |
Additional assumptions for the Company’s fourth quarter and full-year 2026 outlook can be found on Attachment 13 of the Company’s related quarterly Supplemental Financial Information (“Supplement”). A reconciliation of GAAP Net Income per diluted share to FFO per diluted share and FFOA per diluted share can be found on Attachment 14(D) of the Company’s related quarterly Supplement. Non-GAAP financial measures and other terms, as used in this earnings release, are defined and further explained on Attachments 14(A) through 14(D), “Definitions and Reconciliations,” of the Company’s related quarterly Supplement. Net Income, FFO and FFOA per share for all 2026 periods and guidance are unaffected by the Apollo transaction which is described later in this release. SS growth metrics have been adjusted to exclude the 19 communities that comprise the joint venture with Apollo. Including these communities, the Full-Year guidance midpoints for SS Revenue, Expense, and NOI would be 1.45%, 2.9%, and 0.75%, respectively. |
“Third quarter operational results and FFOA per diluted share exceeded our expectations and drove our second guidance raise of 2026,” said Tom Toomey, UDR’s Chairman, President, and CEO. “Additionally, we are excited to have closed our strategic partnership with Apollo, which expands our access to capital, strengthens our balance sheet by reducing leverage, improves the quality of our wholly-owned portfolio, and positions UDR to pursue compelling investment opportunities that drive value creation for our shareholders.”
Capital Allocation Activity
During and subsequent to quarter-end, the Company,
- Closed the previously announced $2.0 billion strategic partnership with Apollo by contributing 19 apartment communities totaling 7,059 apartment homes valued at an approximate 6.0 percent capitalization rate to a new joint venture. Under the terms of the transaction, UDR received $1.34 billion of equity capital from Apollo, retained an approximate one-third interest in the joint venture, will continue to operate and manage the portfolio for which it will earn an asset management fee, and retained an option to repurchase Apollo’s interest in the joint venture at a 7.0 percent target IRR for a finite period starting at the fifth anniversary of closing.
- Through the end of October, repurchased approximately 5.2 million shares of its common stock at a weighted average share price of $35.48 for total consideration of approximately $185.1 million. Following this share repurchase activity, the Company has approximately 20.3 million shares remaining for repurchase under its program. Since recommencing share repurchases in September 2025, the Company has repurchased approximately 16.7 million shares of its common stock at a weighted average share price of $36.06 for total consideration of approximately $603.2 million.
- Sold two apartment communities, one each in Seattle and Nashville, with a combined 412 apartment homes for gross proceeds of $183.0 million. The Company remains under contract to sell a 396-home apartment community in the Metropolitan Washington, D.C. area for gross proceeds of approximately $69.0 million.
- Expanded its joint venture with LaSalle Investment Management to approximately $958.3 million by contributing a 360-home apartment community in Nashville, TN, to the venture while simultaneously placing debt on the newly contributed community and an existing community in the venture. Under the terms of the transaction, the Company received approximately $103.2 million in cash proceeds.
- Continued to execute on the runoff of its Debt and Preferred Equity (“DPE”) portfolio, as announced last quarter, via the liquidation of the Company’s interest in various DPE joint ventures. As previously disclosed, the Company acquired a 286-home community in Portland, OR, for an incremental cash outlay of $74.7 million based on a property valuation of $104.3 million. During the quarter, the Company also reached a resolution with a developer partner on a two-property portfolio located in California’s Inland Empire. This resulted in the acquisition of a 483-home community during the quarter for an incremental cash outlay of $160.3 million based on a property valuation of $250.1 million as well as an agreement to acquire a 237-home community in the first half of 2027, subject to customary closing conditions. Excluding the latter Inland Empire transaction, the aggregate investment balance of the Company’s Debt and Preferred Equity portfolio is expected to be approximately $250.0 million at year-end 2026.
- Received a full repayment of approximately $29.5 million on its Preferred Equity investment in a stabilized apartment community in Orlando, FL.
Operating Results
In the third quarter, total revenue decreased by $3.8 million YOY, or (0.9) percent, as revenue increases attributable to growth from Same-Store and acquired communities were offset by the removal of revenue from properties that were sold.
“Third quarter Same-Store results were supported by strong occupancy in the mid-96 percent range, year-over-year improvement in bad debt, blended lease rate growth that fell within our expected range, and continued improvement in resident retention that led to strong expense control,” said Mike Lacy, UDR’s Chief Operating Officer. “Operating from a position of occupancy strength, with fewer lease expirations than typical in the fourth quarter following a strategic shift to the expiration schedule made last year, and renewal lease offers higher than those in the third quarter, we remain in an attractive position to drive revenue and NOI growth as we conclude a successful year.”
In the tables below, the Company has presented YOY, sequential, and YTD Same-Store results by region.
Summary of Same-Store Results in the Third Quarter 2026 versus the Third Quarter 2025
|
Region |
Revenue |
Expense |
NOI |
% of Same-Store |
Physical |
YOY Change |
||||||
|
West |
3.9 |
% |
3.8 |
% |
3.9 |
% |
37.2 |
% |
96.8 |
% |
0.0 |
% |
|
Northeast |
2.5 |
% |
1.6 |
% |
3.0 |
% |
21.3 |
% |
96.7 |
% |
(0.3 |
)% |
|
Mid-Atlantic |
0.3 |
% |
3.0 |
% |
(1.0 |
)% |
20.0 |
% |
95.9 |
% |
(0.8 |
)% |
|
Southwest |
(0.4 |
)% |
(0.3 |
)% |
(0.5 |
)% |
12.3 |
% |
96.9 |
% |
0.0 |
% |
|
Southeast |
(0.9 |
)% |
2.0 |
% |
(2.2 |
)% |
9.2 |
% |
96.4 |
% |
0.4 |
% |
|
Total / Weighted Average |
1.8 |
% |
2.2 |
% |
1.6 |
% |
100.0 |
% |
96.5 |
% |
(0.2 |
)% |
|
(1) |
Based on 3Q 2026 Same-Store NOI. Other Markets, as defined in the Company’s related quarterly Supplement, are reflected in their respective Regions. For definitions of terms, please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement. SS growth metrics have been adjusted to exclude the 19 communities that comprise the Company’s joint venture with Apollo. Including these 19 communities, SS Revenue, Expense, and NOI growth (decline) would be 1.5%, 2.7%, and 1.0%, respectively, and Physical Occupancy and Change in Occupancy would be 96.6% and (0.1)%, respectively. |
|
(2) |
Weighted average Same-Store physical occupancy for the quarter. |
Summary of Same-Store Results in the Third Quarter 2026 versus the Second Quarter 2026
|
Region |
Revenue |
Expense |
NOI |
% of Same-Store |
Physical |
Sequential |
||||||
|
West |
1.5 |
% |
6.7 |
% |
(0.4 |
)% |
37.2 |
% |
96.8 |
% |
(0.1 |
)% |
|
Northeast |
1.6 |
% |
0.4 |
% |
2.2 |
% |
21.3 |
% |
96.7 |
% |
(0.4 |
)% |
|
Mid-Atlantic |
(0.1 |
)% |
3.6 |
% |
(1.9 |
)% |
20.0 |
% |
95.9 |
% |
(0.6 |
)% |
|
Southwest |
0.5 |
% |
2.9 |
% |
(1.0 |
)% |
12.3 |
% |
96.9 |
% |
0.2 |
% |
|
Southeast |
(0.4 |
)% |
(3.4 |
)% |
1.2 |
% |
9.2 |
% |
96.4 |
% |
0.3 |
% |
|
Total / Weighted Average |
0.8 |
% |
2.9 |
% |
(0.1 |
)% |
100.0 |
% |
96.5 |
% |
(0.1 |
)% |
|
(1) |
Based on 3Q 2026 Same-Store NOI. Other Markets, as defined in the Company’s related quarterly Supplement, are reflected in their respective Regions. For definitions of terms, please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement. SS growth metrics have been adjusted to exclude the 19 communities that comprise the Company’s joint venture with Apollo. Including these 19 communities, SS Revenue, Expense, and NOI growth (decline) would be 0.7%, 3.1%, and (0.4)%, respectively, and Physical Occupancy and Change in Occupancy would be 96.6% and (0.1)%, respectively. |
|
(2) |
Weighted average Same-Store physical occupancy for the quarter. |
Summary of Same-Store Results for YTD 2026 versus YTD 2025
|
Region |
Revenue |
Expense |
NOI |
% of Same-Store |
Physical |
YTD YOY |
||||||
|
West |
3.3 |
% |
5.3 |
% |
2.6 |
% |
37.5 |
% |
96.8 |
% |
(0.2 |
)% |
|
Northeast |
2.5 |
% |
3.0 |
% |
2.2 |
% |
21.1 |
% |
96.9 |
% |
(0.4 |
)% |
|
Mid-Atlantic |
0.7 |
% |
3.9 |
% |
(0.7 |
)% |
20.5 |
% |
96.2 |
% |
(0.8 |
)% |
|
Southwest |
(1.1 |
)% |
0.0 |
% |
(1.7 |
)% |
12.4 |
% |
96.8 |
% |
(0.3 |
)% |
|
Southeast |
(1.6 |
)% |
1.3 |
% |
(3.0 |
)% |
8.5 |
% |
96.2 |
% |
(0.2 |
)% |
|
Total / Weighted Average |
1.6 |
% |
3.2 |
% |
0.8 |
% |
100.0 |
% |
96.6 |
% |
(0.4 |
)% |
|
(1) |
Based on YTD 2026 Same-Store NOI. Other Markets, as defined in the Company’s related quarterly Supplement, are reflected in their respective Regions. For definitions of terms, please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement. SS growth metrics have been adjusted to exclude the 19 communities that comprise the Company’s joint venture with Apollo. Including these 19 communities, SS Revenue, Expense, and NOI growth (decline) would be 1.4%, 3.2%, and 0.5%, respectively, and Physical Occupancy and Change in Occupancy would be 96.6% and (0.3)%, respectively. |
|
(2) |
Weighted average Same-Store physical occupancy for YTD 2026. |
Balance Sheet Update
The Company’s total indebtedness as of September 30, 2026, was $5.8 billion at a weighted average interest rate of 3.45 percent, with $333.6 million, or 6.6 percent of total consolidated debt, maturing through 2027, including principal amortization and excluding amounts on the Company’s line of credit, commercial paper program, and working capital credit facility. As of September 30, 2026, the Company had approximately $641.6 million in liquidity through a combination of cash and undrawn capacity on its credit facilities. Immediately following the closing of the Apollo transaction, the Company received $1.34 billion of equity proceeds. Please see Attachment 13 of the Company’s related quarterly Supplement for additional details regarding investment guidance.
In the table below, the Company has presented select balance sheet metrics for the quarter ended September 30, 2026, and the comparable prior year period.
|
|
Quarter Ended September 30 |
|||||
|
Balance Sheet Metric |
3Q 2026 |
3Q 2025 |
Change |
|||
|
Weighted Average Interest Rate |
3.45 |
% |
3.42 |
% |
0.03 |
% |
|
Weighted Average Years to Maturity |
3.7 |
|
4.6 |
|
(0.9 |
) |
|
Consolidated Fixed Charge Coverage Ratio |
5.0x |
|
4.9x |
|
0.1x |
|
|
Consolidated Debt as a percentage of Total Assets |
32.3 |
% |
32.6 |
% |
(0.3 |
)% |
|
Consolidated Net Debt-to-EBITDAre – adjusted for non-recurring items(1) |
5.5x |
|
5.5x |
|
– |
|
|
(1) |
A reconciliation of GAAP Net Income per share to EBITDAre – adjusted for non-recurring items and GAAP Total Debt to Net Debt can be found on Attachment 4(C) of the Company’s related quarterly Supplement. |
Dividend
As previously announced, the Company’s Board of Directors declared dividends on its common stock with record dates in October, November, and December 2026. These dividends amount to $0.145 per share per month and will be payable in cash on the payment dates set forth in the table below to UDR common stock shareholders of record as of the close of business on the corresponding record date in the table below. These declared dividends amount to $0.435 per share, representing a 1.2 percent increase over the comparable period in 2025, and reflect an annualized dividend amount of $1.74 per share of common stock. The December 2026 dividend will represent the 220th consecutive dividend paid by the Company on its common stock.
|
Record Date |
Payment Date |
Amount |
|
October 19, 2026 |
November 2, 2026 |
$0.145 per common share |
|
November 16, 2026 |
November 30, 2026 |
$0.145 per common share |
|
December 15, 2026 |
December 31, 2026 |
$0.145 per common share |
|
Total Dividends |
– |
$0.435 per common share |
Executive Leadership
As previously announced, subsequent to quarter-end, the Company appointed Scott McCallum as Chief Investment Officer. Mr. McCallum brings an extensive background in public and private real estate after a decade of experience with Blackstone, Inc.
Corporate Responsibility
Subsequent to quarter-end, the Company published its eighth annual Corporate Responsibility Report, which details UDR’s ongoing commitment to being a leader in corporate responsibility and a good partner to the communities we operate in. The report is available on the Investor Relations section of the Company’s website at ir.udr.com.
Supplemental Financial Information
The Company offers Supplemental Financial Information that provides details on the financial position and operating results of the Company which is available on the Investor Relations section of the Company’s website at ir.udr.com.
Attachment 14(A)
Definitions and Reconciliations
September 30, 2026
(Unaudited)
Acquired Communities: The Company defines Acquired Communities as those communities acquired by the Company, other than development and redevelopment activity, that did not achieve stabilization as of the most recent quarter.
Adjusted Funds from Operations (“AFFO”) attributable to common stockholders and unitholders: The Company defines AFFO as FFO as Adjusted attributable to common stockholders and unitholders less recurring capital expenditures on consolidated communities and the Company’s proportionate share of recurring capital expenditures on unconsolidated partnerships and joint ventures, that are necessary to help preserve the value of and maintain functionality at our communities.
Management considers AFFO a useful supplemental performance metric for investors as it is more indicative of the Company’s operational performance than FFO or FFO as Adjusted. AFFO is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. The Company believes that net income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to AFFO. Management believes that AFFO is a widely recognized measure of the operations of REITs, and presenting AFFO enables investors to assess our performance in comparison to other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not always be comparable to AFFO calculated by other REITs. AFFO should not be considered as an alternative to net income/(loss) (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. A reconciliation from net income/(loss) attributable to common stockholders to AFFO is provided on Attachment 2.
Consolidated Fixed Charge Coverage Ratio – adjusted for non-recurring items: The Company defines Consolidated Fixed Charge Coverage Ratio – adjusted for non-recurring items as Consolidated Interest Coverage Ratio – adjusted for non-recurring items divided by total consolidated interest, excluding the impact of costs associated with debt extinguishment, plus preferred dividends.
Management considers Consolidated Fixed Charge Coverage Ratio – adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation of the components that comprise Consolidated Fixed Charge Coverage Ratio – adjusted for non-recurring items is provided on Attachment 4(C) of the Company’s quarterly supplemental disclosure.
Consolidated Interest Coverage Ratio – adjusted for non-recurring items: The Company defines Consolidated Interest Coverage Ratio – adjusted for non-recurring items as Consolidated EBITDAre – adjusted for non-recurring items divided by total consolidated interest, excluding the impact of costs associated with debt extinguishment.
Management considers Consolidated Interest Coverage Ratio – adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation of the components that comprise Consolidated Interest Coverage Ratio – adjusted for non-recurring items is provided on Attachment 4(C) of the Company’s quarterly supplemental disclosure.
Consolidated Net Debt-to-EBITDAre – adjusted for non-recurring items: The Company defines Consolidated Net Debt-to-EBITDAre – adjusted for non-recurring items as total consolidated debt net of cash and cash equivalents divided by annualized Consolidated EBITDAre – adjusted for non-recurring items. Consolidated EBITDAre – adjusted for non-recurring items is defined as EBITDAre excluding the impact of income/(loss) from unconsolidated entities, adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures and other non-recurring items including, but not limited to casualty-related charges/(recoveries), net of wholly owned communities.
Management considers Consolidated Net Debt-to-EBITDAre – adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation between net income/(loss) and Consolidated EBITDAre – adjusted for non-recurring items is provided on Attachment 4(C) of the Company’s quarterly supplemental disclosure.
Contractual Return Rate: The Company defines Contractual Return Rate as the rate of return or interest rate that the Company is entitled to receive on a preferred equity investment or loan, as specified in the applicable agreement.
Controllable Expenses: The Company refers to property operating and maintenance expenses as Controllable Expenses.
Development Communities: The Company defines Development Communities as those communities recently developed or under development by the Company, that are currently majority owned by the Company and have not achieved stabilization as of the most recent quarter.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre): The Company defines EBITDAre as net income/(loss) (computed in accordance with GAAP), plus interest expense, including costs associated with debt extinguishment, plus real estate depreciation and amortization, plus other depreciation and amortization, plus (minus) income tax provision/(benefit), (minus) plus net gain/(loss) on the sale of depreciable real estate owned, plus impairment write-downs of depreciable real estate, plus the adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or Nareit, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the Nareit definition, or that interpret the Nareit definition differently than the Company does. The White Paper on EBITDAre was approved by the Board of Governors of Nareit in September 2017.
Management considers EBITDAre a useful metric for investors as it provides an additional indicator of the Company’s ability to incur and service debt, and enables investors to assess our performance against that of its peer REITs. EBITDAre should be considered along with, but not as an alternative to, net income and cash flow as a measure of the Company’s activities in accordance with GAAP. EBITDAre does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs. A reconciliation between net income/(loss) and EBITDAre is provided on Attachment 4(C) of the Company’s quarterly supplemental disclosure.
Effective Blended Lease Rate Growth: The Company defines Effective Blended Lease Rate Growth as the combined proportional growth as a result of Effective New Lease Rate Growth and Effective Renewal Lease Rate Growth. Management considers Effective Blended Lease Rate Growth a useful metric for investors as it assesses combined proportional market-level, new and in-place demand trends.
Effective New Lease Rate Growth: The Company defines Effective New Lease Rate Growth as the increase/(decrease) in gross potential rent realized less concessions on a straight-line basis for the new lease term (current effective rent) versus prior resident effective rent for the prior lease term on new leases commenced during the current quarter. Management considers Effective New Lease Rate Growth a useful metric for investors as it assesses market-level new demand trends.
Effective Renewal Lease Rate Growth: The Company defines Effective Renewal Lease Rate Growth as the increase/(decrease) in gross potential rent realized less concessions on a straight-line basis for the new lease term (current effective rent) versus prior effective rent for the prior lease term on renewed leases commenced during the current quarter. Management considers Effective Renewal Lease Rate Growth a useful metric for investors as it assesses market-level, in-place demand trends.
Estimated Quarter of Completion: The Company defines Estimated Quarter of Completion of a development or redevelopment project as the date on which construction is expected to be completed, but it does not represent the date of stabilization.
Attachment 14(B)
Definitions and Reconciliations
September 30, 2026
(Unaudited)
Funds from Operations as Adjusted (“FFO as Adjusted”) attributable to common stockholders and unitholders: The Company defines FFO as Adjusted attributable to common stockholders and unitholders as FFO excluding the impact of other non-comparable items including, but not limited to, acquisition-related costs, prepayment costs/benefits associated with early debt retirement, impairment write-downs or gains and losses on sales of real estate or other assets incidental to the main business of the Company and income taxes directly associated with those gains and losses, casualty-related expenses and recoveries, severance costs, software transition related costs and legal and other costs.
Management believes that FFO as Adjusted is useful supplemental information regarding our operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. FFO as Adjusted is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. The Company believes that net income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to FFO as Adjusted. However, other REITs may use different methodologies for calculating FFO as Adjusted or similar FFO measures and, accordingly, our FFO as Adjusted may not always be comparable to FFO as Adjusted or similar FFO measures calculated by other REITs. FFO as Adjusted should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. A reconciliation from net income attributable to common stockholders to FFO as Adjusted is provided on Attachment 2.
Funds from Operations (“FFO”) attributable to common stockholders and unitholders: The Company defines FFO attributable to common stockholders and unitholders as net income/(loss) attributable to common stockholders (computed in accordance with GAAP), excluding impairment write-downs of depreciable real estate related to the main business of the Company or of investments in non-consolidated investees that are directly attributable to decreases in the fair value of depreciable real estate held by the investee, gains and losses from sales of depreciable real estate related to the main business of the Company and income taxes directly associated with those gains and losses, plus real estate depreciation and amortization, and after adjustments for noncontrolling interests, and the Company’s share of unconsolidated partnerships and joint ventures. This definition conforms with the National Association of Real Estate Investment Trust’s definition issued in April 2002 and restated in November 2018. In the computation of diluted FFO, if OP Units, DownREIT Units, unvested restricted stock, unvested LTIP Units, stock options, and the shares of Series E Cumulative Convertible Preferred Stock are dilutive, they are included in the diluted share count.
Management considers FFO a useful metric for investors as the Company uses FFO in evaluating property acquisitions and its operating performance and believes that FFO should be considered along with, but not as an alternative to, net income and cash flow as a measure of the Company’s activities in accordance with GAAP. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs. A reconciliation from net income/(loss) attributable to common stockholders to FFO is provided on Attachment 2.
Held For Disposition Communities: The Company defines Held for Disposition Communities as those communities that were held for sale as of the end of the most recent quarter.
Joint Venture Reconciliation at UDR’s weighted average ownership interest:
| In thousands |
3Q 2026 |
YTD 2026 | |||||
| Income/(loss) from unconsolidated entities |
$ |
1,613 |
|
$ |
24,580 |
|
|
| Management fee |
|
1,176 |
|
|
3,335 |
|
|
| Interest expense |
|
6,816 |
|
|
19,224 |
|
|
| Depreciation |
|
14,353 |
|
|
42,460 |
|
|
| General and administrative |
|
105 |
|
|
367 |
|
|
| Preferred Equity Program (excludes loans) |
|
(3,478 |
) |
|
(18,155 |
) |
|
| Other (income)/expense |
|
119 |
|
|
410 |
|
|
| Realized and unrealized (gain)/loss on real estate technology investments |
|
36 |
|
|
(16,131 |
) |
|
| Net (gain)/loss on consolidation |
|
(2,060 |
) |
|
(2,335 |
) |
|
| Total Joint Venture NOI at UDR’s Ownership Interest |
$ |
18,680 |
|
$ |
53,755 |
|
|
Net Operating Income (“NOI”): The Company defines NOI as rental income less direct property rental expenses. Rental income represents gross market rent and other revenues less adjustments for concessions, vacancy loss and bad debt. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI is property management expense, which is calculated as 3.25% of property revenue, and land rent. Property management expense covers costs directly related to consolidated property operations, inclusive of corporate management, regional supervision, accounting and other costs.
Management considers NOI a useful metric for investors as it is a more meaningful representation of a community’s continuing operating performance than net income as it is prior to corporate-level expense allocations, general and administrative costs, capital structure and depreciation and amortization and is a widely used input, along with capitalization rates, in the determination of real estate valuations. A reconciliation from net income/(loss) attributable to UDR, Inc. to NOI is provided below.
| In thousands |
3Q 2026 |
2Q 2026 |
1Q 2026 |
4Q 2025 |
3Q 2025 |
|||||||||||||||
| Net income/(loss) attributable to UDR, Inc. |
$ |
216,094 |
|
$ |
69,035 |
|
$ |
189,831 |
|
$ |
222,902 |
|
$ |
40,409 |
|
|||||
| Property management |
|
13,799 |
|
|
13,745 |
|
|
13,758 |
|
|
13,937 |
|
|
13,952 |
|
|||||
| Other operating expenses |
|
10,039 |
|
|
12,966 |
|
|
9,415 |
|
|
7,947 |
|
|
6,975 |
|
|||||
| Real estate depreciation and amortization |
|
161,569 |
|
|
160,120 |
|
|
161,268 |
|
|
163,610 |
|
|
165,926 |
|
|||||
| Interest expense |
|
48,583 |
|
|
47,640 |
|
|
48,576 |
|
|
49,684 |
|
|
50,569 |
|
|||||
| Casualty-related charges/(recoveries), net |
|
548 |
|
|
3,073 |
|
|
5,729 |
|
|
3,248 |
|
|
1,755 |
|
|||||
| General and administrative |
|
20,559 |
|
|
18,714 |
|
|
19,364 |
|
|
22,948 |
|
|
22,732 |
|
|||||
| Tax provision/(benefit), net |
|
489 |
|
|
429 |
|
|
455 |
|
|
37 |
|
|
382 |
|
|||||
| (Income)/loss from unconsolidated entities |
|
(1,613 |
) |
|
(3,271 |
) |
|
(19,696 |
) |
|
(4,934 |
) |
|
(14,011 |
) |
|||||
| Interest income and other (income)/expense, net |
|
(8,144 |
) |
|
(2,596 |
) |
|
(2,434 |
) |
|
(5,406 |
) |
|
(3,714 |
) |
|||||
| Joint venture management and other fees |
|
(3,500 |
) |
|
(2,466 |
) |
|
(2,528 |
) |
|
(4,281 |
) |
|
(2,570 |
) |
|||||
| Other depreciation and amortization |
|
3,479 |
|
|
3,451 |
|
|
3,335 |
|
|
4,451 |
|
|
7,009 |
|
|||||
| (Gain)/loss on sale of real estate owned |
|
(190,084 |
) |
|
(35,704 |
) |
|
(157,416 |
) |
|
(194,974 |
) |
|
– |
|
|||||
| Net income/(loss) attributable to noncontrolling interests |
|
14,780 |
|
|
4,620 |
|
|
13,073 |
|
|
15,383 |
|
|
2,721 |
|
|||||
| Total consolidated NOI |
$ |
286,598 |
|
$ |
289,756 |
|
$ |
282,730 |
|
$ |
294,552 |
|
$ |
292,135 |
|
|||||
Attachment 14(C)
Definitions and Reconciliations
September 30, 2026
(Unaudited)
NOI Enhancing Capital Expenditures (“Cap Ex”): The Company defines NOI Enhancing Capital Expenditures as expenditures that result in increased income generation or decreased expense growth over time.
Management considers NOI Enhancing Capital Expenditures a useful metric for investors as it quantifies the amount of capital expenditures that are expected to grow, not just maintain, revenues or to decrease expenses.
Non-Mature Communities: The Company defines Non-Mature Communities as those communities that have not met the criteria to be included in same-store communities.
Non-Residential / Other: The Company defines Non-Residential / Other as non-apartment components of mixed-use properties, land held, properties being prepared for redevelopment and properties where a material change in home count has occurred.
Other Markets: The Company defines Other Markets as the accumulation of individual markets where it operates less than 1,000 Same-Store homes. Management considers Other Markets a useful metric as the operating results for the individual markets are not representative of the fundamentals for those markets as a whole.
Physical Occupancy: The Company defines Physical Occupancy as the number of occupied homes divided by the total homes available at a community.
QTD Same-Store Communities: The Company defines QTD Same-Store Communities as those communities Stabilized for five full consecutive quarters. These communities were owned and had stabilized operating expenses as of the beginning of the quarter in the prior year, were not in process of any substantial redevelopment activities, and were not held for disposition. QTD Same-Store Communities excludes 19 communities totaling 7,059 apartment homes that were wholly owned by the Company as of September 30, 2026, and were contributed to the joint venture with Apollo announced in October 2026 (the “Pending Joint Venture Portfolio Communities”). The Pending Joint Venture Portfolio Communities are presented separately for informational purposes. A reconciliation of QTD Same-Store results excluding these communities is provided below:
|
Dollars in thousands |
Total Homes |
3Q 2026 |
2Q 2026 |
1Q 2026 |
|
4Q 2025 |
|
3Q 2025 |
|||||
|
Revenue |
|||||||||||||
|
Same-Store Communities |
44,765 |
$ |
359,317 |
$ |
356,302 |
$ |
351,125 |
$ |
352,318 |
$ |
353,038 |
||
|
Plus: Pending Joint Venture Portfolio Communities |
7,059 |
|
43,300 |
|
43,509 |
|
43,116 |
|
43,428 |
|
43,638 |
||
|
Same-Store including Pending Joint Venture Portfolio |
51,824 |
$ |
402,617 |
$ |
399,811 |
$ |
394,241 |
|
$ |
395,746 |
|
$ |
396,676 |
|
Expenses |
|||||||||||||
|
Same-Store Communities |
$ |
115,471 |
$ |
112,252 |
$ |
116,848 |
$ |
110,143 |
$ |
112,946 |
|||
|
Plus: Pending Joint Venture Portfolio Communities |
|
14,033 |
|
13,394 |
|
13,775 |
|
13,340 |
|
13,194 |
|||
|
Same-Store including Pending Joint Venture Portfolio |
$ |
129,504 |
$ |
125,646 |
$ |
130,623 |
|
$ |
123,483 |
|
$ |
126,140 |
|
|
NOI |
|||||||||||||
|
Same-Store Communities |
$ |
243,846 |
$ |
244,050 |
$ |
234,277 |
$ |
242,175 |
$ |
240,092 |
|||
|
Plus: Pending Joint Venture Portfolio Communities |
|
29,267 |
|
30,115 |
|
29,341 |
|
30,088 |
|
30,444 |
|||
|
Same-Store including Pending Joint Venture Portfolio |
$ |
273,113 |
$ |
274,165 |
$ |
263,618 |
|
$ |
272,263 |
|
$ |
270,536 |
|
Recurring Capital Expenditures: The Company defines Recurring Capital Expenditures as expenditures that are necessary to help preserve the value of and maintain functionality at its communities.
Redevelopment Communities: The Company generally defines Redevelopment Communities as those communities where substantial redevelopment is in progress. Based upon the level of material impact the redevelopment has on the community (operations, occupancy levels, and future rental rates), the community may or may not maintain Stabilization. As such, for each redevelopment, the Company assesses whether the community remains in Same-Store.
Sold Communities: The Company defines Sold Communities as those communities that were disposed of prior to the end of the most recent quarter.
Stabilization/Stabilized: The Company defines Stabilization/Stabilized as when a community’s occupancy reaches 90% or above for at least three consecutive months.
Stabilized, Non-Mature Communities: The Company defines Stabilized, Non-Mature Communities as those communities that have reached Stabilization but are not yet in the same-store portfolio.
Total Revenue per Occupied Home: The Company defines Total Revenue per Occupied Home as rental and other revenues with concessions reported on a straight-line basis, divided by the product of occupancy and the number of apartment homes.
Management considers Total Revenue per Occupied Home a useful metric for investors as it serves as a proxy for portfolio quality, both geographic and physical.
TRS: The Company’s taxable REIT subsidiaries (“TRS”) focus on making investments and providing services that are otherwise not allowed to be made or provided by a REIT.
YTD Same-Store Communities: The Company defines YTD Same-Store Communities as those communities Stabilized for two full consecutive calendar years. These communities were owned and had stabilized operating expenses as of the beginning of the prior year, were not in process of any substantial redevelopment activities, and were not held for disposition. YTD Same-Store Communities excludes 19 communities totaling 7,059 apartment homes that were wholly owned by the Company as of September 30, 2026, and were contributed to the joint venture with Apollo announced in October 2026 (the “Pending Joint Venture Portfolio Communities”). The Pending Joint Venture Portfolio Communities are presented separately for informational purposes. A reconciliation of YTD Same-Store results excluding these communities is provided below:
|
|
Total Homes |
|
Same-Store Communities |
44,350 |
|
Plus: Pending Joint Venture Portfolio Communities |
7,059 |
|
Same-Store including Pending Joint Venture Portfolio |
51,409 |
Conference Call and Webcast Information
UDR will host a webcast and conference call at 12:00 p.m. Eastern Time on November 3, 2026, to discuss third quarter 2026 results as well as high-level views for 2026. The webcast will be available on the Investor Relations section of the Company’s website at ir.udr.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. To participate in the teleconference dial 877-423-9813 for domestic and 201-689-8573 for international. A passcode is not necessary.
Given a high volume of conference calls occurring during this time of year, delays are anticipated when connecting to the live call. As a result, stakeholders and interested parties are encouraged to utilize the Company’s webcast link for its earnings results discussion.
A replay of the conference call will be available through November 10, 2026, by dialing 844-512-2921 for domestic and 412-317-6671 for international and entering the confirmation number, 13763434, when prompted for the passcode. A replay of the call will also be available on the Investor Relations section of the Company’s website at ir.udr.com.
Full Text of the Earnings Report and Supplemental Data
The full text of the earnings report and related quarterly Supplement will be available on the Investor Relations section of the Company’s website at ir.udr.com.
Forward-Looking Statements
Certain statements made in this press release may constitute “forward-looking statements.” Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “outlook,” “guidance,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, general market and economic conditions, unfavorable changes in the apartment market and economic conditions that could adversely affect occupancy levels and rental rates, the impact of inflation/deflation on rental rates and property operating expenses, the availability of capital and the stability of the capital markets, the impact of tariffs, geopolitical tensions, conflicts and wars, government shutdowns, and changes in immigration, elevated interest rates, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule or at expected rent and occupancy levels, changes in job growth, home affordability and demand/supply ratio for multifamily housing, development and construction risks that may impact profitability, risks that joint ventures with third parties and Debt and Preferred Equity Program investments do not perform as expected, the failure of automation or technology to help grow net operating income, and other risk factors discussed in documents filed by the Company with the SEC from time to time, including the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company’s expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the U.S. securities laws.
About UDR, Inc.
UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of September 30, 2026, UDR owned or had an ownership position in 60,617 apartment homes, including 634 apartment homes under development. For over 54 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents, and the highest quality experience for Associates.
Attachment 1
Consolidated Statements of Operations
(Unaudited) (1)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| In thousands, except per share amounts |
2026 |
2025 |
2026 |
2025 |
||||||||||||
| REVENUES: | ||||||||||||||||
| Rental income |
$ |
424,581 |
|
$ |
429,294 |
|
$ |
1,270,835 |
|
$ |
1,272,131 |
|
||||
| Joint venture management and other fees |
|
3,500 |
|
|
2,570 |
|
|
8,494 |
|
|
7,080 |
|
||||
| Total revenues |
|
428,081 |
|
|
431,864 |
|
|
1,279,329 |
|
|
1,279,211 |
|
||||
| OPERATING EXPENSES: | ||||||||||||||||
| Property operating and maintenance |
|
80,981 |
|
|
79,373 |
|
|
238,044 |
|
|
230,976 |
|
||||
| Real estate taxes and insurance |
|
57,002 |
|
|
57,786 |
|
|
173,707 |
|
|
173,539 |
|
||||
| Property management |
|
13,799 |
|
|
13,952 |
|
|
41,302 |
|
|
41,344 |
|
||||
| Other operating expenses |
|
10,039 |
|
|
6,975 |
|
|
32,420 |
|
|
22,787 |
|
||||
| Real estate depreciation and amortization |
|
161,569 |
|
|
165,926 |
|
|
482,957 |
|
|
490,511 |
|
||||
| General and administrative |
|
20,559 |
|
|
22,732 |
|
|
58,637 |
|
|
62,156 |
|
||||
| Casualty-related charges/(recoveries), net |
|
548 |
|
|
1,755 |
|
|
9,350 |
|
|
8,434 |
|
||||
| Other depreciation and amortization |
|
3,479 |
|
|
7,009 |
|
|
10,265 |
|
|
21,463 |
|
||||
| Total operating expenses |
|
347,976 |
|
|
355,508 |
|
|
1,046,682 |
|
|
1,051,210 |
|
||||
| Gain/(loss) on sale of real estate owned |
|
190,084 |
|
|
– |
|
|
383,204 |
|
|
47,939 |
|
||||
| Operating income |
|
270,189 |
|
|
76,356 |
|
|
615,851 |
|
|
275,940 |
|
||||
| Income/(loss) from unconsolidated entities |
|
1,613 |
|
|
14,011 |
|
|
24,580 |
|
|
23,454 |
|
||||
| Interest expense |
|
(48,583 |
) |
|
(50,569 |
) |
|
(144,799 |
) |
|
(146,935 |
) |
||||
| Interest income and other income/(expense), net |
|
8,144 |
|
|
3,714 |
|
|
13,174 |
|
|
13,769 |
|
||||
| Income/(loss) before income taxes |
|
231,363 |
|
|
43,512 |
|
|
508,806 |
|
|
166,228 |
|
||||
| Tax (provision)/benefit, net |
|
(489 |
) |
|
(382 |
) |
|
(1,373 |
) |
|
(798 |
) |
||||
| Net Income/(loss) |
|
230,874 |
|
|
43,130 |
|
|
507,433 |
|
|
165,430 |
|
||||
| Net (income)/loss attributable to redeemable noncontrolling interests in the OP and DownREIT Partnership |
|
(14,768 |
) |
|
(2,709 |
) |
|
(32,438 |
) |
|
(10,593 |
) |
||||
| Net (income)/loss attributable to noncontrolling interests |
|
(12 |
) |
|
(12 |
) |
|
(35 |
) |
|
(35 |
) |
||||
| Net income/(loss) attributable to UDR, Inc. |
|
216,094 |
|
|
40,409 |
|
|
474,960 |
|
|
154,802 |
|
||||
| Distributions to preferred stockholders – Series E (Convertible) |
|
(1,225 |
) |
|
(1,211 |
) |
|
(3,670 |
) |
|
(3,628 |
) |
||||
| Net income/(loss) attributable to common stockholders |
$ |
214,869 |
|
$ |
39,198 |
|
$ |
471,290 |
|
$ |
151,174 |
|
||||
| Income/(loss) per weighted average common share – basic: |
$ |
0.67 |
|
$ |
0.12 |
|
$ |
1.46 |
|
$ |
0.46 |
|
||||
| Income/(loss) per weighted average common share – diluted: |
$ |
0.67 |
|
$ |
0.12 |
|
$ |
1.45 |
|
$ |
0.46 |
|
||||
| Common distributions declared per share |
$ |
0.435 |
|
$ |
0.43 |
|
$ |
1.305 |
|
$ |
1.29 |
|
||||
| Weighted average number of common shares outstanding – basic |
|
320,634 |
|
|
330,668 |
|
|
323,607 |
|
|
330,692 |
|
||||
| Weighted average number of common shares outstanding – diluted |
|
324,012 |
|
|
331,241 |
|
|
326,790 |
|
|
331,443 |
|
||||
| (1) See Attachment 14 for definitions and other terms. | ||||||||||||||||
Attachment 2
Funds From Operations
(Unaudited) (1)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| In thousands, except per share and unit amounts |
2026 |
2025 |
2026 |
2025 |
||||||||||||
| Net income/(loss) attributable to common stockholders |
$ |
214,869 |
|
$ |
39,198 |
|
$ |
471,290 |
|
$ |
151,174 |
|
||||
| Real estate depreciation and amortization |
|
161,569 |
|
|
165,926 |
|
|
482,957 |
|
|
490,511 |
|
||||
| Noncontrolling interests |
|
14,780 |
|
|
2,721 |
|
|
32,473 |
|
|
10,628 |
|
||||
| Real estate depreciation and amortization on unconsolidated joint ventures |
|
15,073 |
|
|
12,021 |
|
|
41,411 |
|
|
38,245 |
|
||||
| Net (gain)/loss on consolidation |
|
(3,181 |
) |
|
– |
|
|
(3,456 |
) |
|
(286 |
) |
||||
| Net (gain)/loss on the sale of depreciable real estate owned, net of tax |
|
(190,069 |
) |
|
– |
|
|
(383,159 |
) |
|
(47,939 |
) |
||||
| Funds from operations (“FFO”) attributable to common stockholders and unitholders, basic |
$ |
213,041 |
|
$ |
219,866 |
|
$ |
641,516 |
|
$ |
642,333 |
|
||||
| Distributions to preferred stockholders – Series E (Convertible) (2) |
|
1,225 |
|
|
1,211 |
|
|
3,670 |
|
|
3,628 |
|
||||
| FFO attributable to common stockholders and unitholders, diluted |
$ |
214,266 |
|
$ |
221,077 |
|
$ |
645,186 |
|
$ |
645,961 |
|
||||
| FFO per weighted average common share and unit, basic |
$ |
0.62 |
|
$ |
0.62 |
|
$ |
1.85 |
|
$ |
1.82 |
|
||||
| FFO per weighted average common share and unit, diluted |
$ |
0.62 |
|
$ |
0.62 |
|
$ |
1.85 |
|
$ |
1.81 |
|
||||
| Weighted average number of common shares and OP/DownREIT Units outstanding, basic |
|
342,656 |
|
|
353,484 |
|
|
345,912 |
|
|
353,543 |
|
||||
| Weighted average number of common shares, OP/DownREIT Units, and common stock equivalents outstanding, diluted |
|
346,034 |
|
|
356,873 |
|
|
349,095 |
|
|
357,110 |
|
||||
| Impact of adjustments to FFO: | ||||||||||||||||
| Legal and other costs |
$ |
5,512 |
|
$ |
2,683 |
|
$ |
19,113 |
|
$ |
9,846 |
|
||||
| Realized and unrealized (gain)/loss on real estate technology investments |
|
9 |
|
|
(3,736 |
) |
|
(14,148 |
) |
|
(3,305 |
) |
||||
| Severance costs |
|
4,438 |
|
|
7,214 |
|
|
4,970 |
|
|
8,737 |
|
||||
| Software transition related costs |
|
– |
|
|
3,329 |
|
|
– |
|
|
9,263 |
|
||||
| Casualty-related charges/(recoveries) |
|
548 |
|
|
1,755 |
|
|
9,350 |
|
|
8,434 |
|
||||
| Total impact of adjustments to FFO |
$ |
10,507 |
|
$ |
11,245 |
|
$ |
19,285 |
|
$ |
32,975 |
|
||||
| FFO as Adjusted attributable to common stockholders and unitholders, diluted |
$ |
224,773 |
|
$ |
232,322 |
|
$ |
664,471 |
|
$ |
678,936 |
|
||||
| FFO as Adjusted per weighted average common share and unit, diluted |
$ |
0.65 |
|
$ |
0.65 |
|
$ |
1.90 |
|
$ |
1.90 |
|
||||
| Recurring capital expenditures, inclusive of unconsolidated joint ventures |
|
(32,607 |
) |
|
(32,238 |
) |
|
(81,772 |
) |
|
(79,844 |
) |
||||
| AFFO attributable to common stockholders and unitholders, diluted |
$ |
192,166 |
|
$ |
200,084 |
|
$ |
582,699 |
|
$ |
599,092 |
|
||||
| AFFO per weighted average common share and unit, diluted |
$ |
0.56 |
|
$ |
0.56 |
|
$ |
1.67 |
|
$ |
1.68 |
|
||||
| (1) See Attachment 14 for definitions and other terms. | ||||||||||||||||
| (2) Series E cumulative convertible preferred shares are dilutive for purposes of calculating FFO per share for the three and nine months ended September 30, 2026 and September 30, 2025. Consequently, distributions to Series E cumulative convertible preferred stockholders are added to FFO and the weighted average number of Series E cumulative convertible preferred shares are included in the denominator when calculating FFO per common share and unit, diluted. | ||||||||||||||||
Attachment 3
Consolidated Balance Sheets
(Unaudited) (1)
| September 30, | December 31, | |||||||
| In thousands, except share and per share amounts |
2026 |
2025 |
||||||
| ASSETS | ||||||||
| Real estate owned: | ||||||||
| Real estate held for investment |
$ |
16,403,674 |
|
$ |
16,415,000 |
|
||
| Less: accumulated depreciation |
|
(7,510,899 |
) |
|
(7,374,546 |
) |
||
| Real estate held for investment, net |
|
8,892,775 |
|
|
9,040,454 |
|
||
| Real estate under development (net of accumulated depreciation of $170 and $0) |
|
170,221 |
|
|
72,885 |
|
||
| Real estate held for disposition (net of accumulated depreciation of $34,253 and $0) |
|
20,327 |
|
|
– |
|
||
| Total real estate owned, net of accumulated depreciation |
|
9,083,323 |
|
|
9,113,339 |
|
||
| Cash and cash equivalents |
|
1,184 |
|
|
1,222 |
|
||
| Restricted cash |
|
35,778 |
|
|
35,710 |
|
||
| Notes receivable, net |
|
90,480 |
|
|
149,979 |
|
||
| Investment in and advances to unconsolidated joint ventures, net |
|
659,105 |
|
|
886,492 |
|
||
| Operating lease right-of-use assets |
|
184,642 |
|
|
187,624 |
|
||
| Other assets |
|
246,704 |
|
|
231,308 |
|
||
| Total assets |
$ |
10,301,216 |
|
$ |
10,605,674 |
|
||
| LIABILITIES AND EQUITY | ||||||||
| Liabilities: | ||||||||
| Secured debt |
$ |
931,510 |
|
$ |
961,180 |
|
||
| Unsecured debt |
|
4,824,801 |
|
|
4,860,189 |
|
||
| Operating lease liabilities |
|
180,026 |
|
|
182,963 |
|
||
| Real estate taxes payable |
|
67,342 |
|
|
45,640 |
|
||
| Accrued interest payable |
|
26,978 |
|
|
51,698 |
|
||
| Security deposits and prepaid rent |
|
57,330 |
|
|
61,205 |
|
||
| Distributions payable |
|
150,907 |
|
|
151,934 |
|
||
| Accounts payable, accrued expenses, and other liabilities |
|
134,557 |
|
|
142,102 |
|
||
| Total liabilities |
|
6,373,451 |
|
|
6,456,911 |
|
||
| Redeemable noncontrolling interests in the OP and DownREIT Partnership |
|
799,194 |
|
|
859,966 |
|
||
| Equity: | ||||||||
| Preferred stock, no par value; 50,000,000 shares authorized at September 30, 2026 and December 31, 2025: | ||||||||
| 2,600,678 shares of 8.00% Series E Cumulative Convertible issued and outstanding (2,600,678 shares at December 31, 2025) |
|
43,192 |
|
|
43,192 |
|
||
| 9,776,269 shares of Series F outstanding (10,105,845 shares at December 31, 2025) |
|
1 |
|
|
1 |
|
||
| Common stock, $0.01 par value; 450,000,000 shares authorized at September 30, 2026 and December 31, 2025: | ||||||||
| 321,267,264 shares issued and outstanding (328,273,044 shares at December 31, 2025) |
|
3,213 |
|
|
3,283 |
|
||
| Additional paid-in capital |
|
7,218,648 |
|
|
7,480,594 |
|
||
| Distributions in excess of net income |
|
(4,140,208 |
) |
|
(4,240,268 |
) |
||
| Accumulated other comprehensive income/(loss), net |
|
3,389 |
|
|
1,660 |
|
||
| Total stockholders’ equity |
|
3,128,235 |
|
|
3,288,462 |
|
||
| Noncontrolling interests |
|
336 |
|
|
335 |
|
||
| Total equity |
|
3,128,571 |
|
|
3,288,797 |
|
||
| Total liabilities and equity |
$ |
10,301,216 |
|
$ |
10,605,674 |
|
||
| (1) See Attachment 14 for definitions and other terms. | ||||||||
Attachment 4(C)
Selected Financial Information
(Dollars in Thousands)
(Unaudited) (1)
|
Quarter Ended |
||||
|
Coverage Ratios |
|
September 30, 2026 |
||
|
Net income/(loss) |
$ |
230,874 |
|
|
|
Adjustments: |
||||
|
Interest expense, including debt extinguishment and other associated costs |
|
48,583 |
|
|
|
Real estate depreciation and amortization |
|
161,569 |
|
|
|
Other depreciation and amortization |
|
3,479 |
|
|
|
Tax provision/(benefit), net |
|
489 |
|
|
|
Net (gain)/loss on the sale of depreciable real estate owned |
|
(190,084 |
) |
|
|
Net (gain)/loss on consolidation |
|
(3,181 |
) |
|
|
Adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures |
|
21,889 |
|
|
|
EBITDAre |
$ |
273,618 |
|
|
|
Casualty-related charges/(recoveries), net |
|
548 |
|
|
|
Legal and other costs |
|
5,512 |
|
|
|
Realized and unrealized (gain)/loss on real estate technology investments |
|
(27 |
) |
|
|
Severance costs |
|
4,438 |
|
|
|
(Income)/loss from unconsolidated entities |
|
(1,613 |
) |
|
|
Adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures |
|
(21,889 |
) |
|
|
Management fee expense on unconsolidated joint ventures |
|
(1,176 |
) |
|
|
Consolidated EBITDAre – adjusted for non-recurring items |
$ |
259,411 |
|
|
|
Annualized consolidated EBITDAre – adjusted for non-recurring items |
$ |
1,037,644 |
|
|
|
Interest expense, including debt extinguishment and other associated costs |
|
48,583 |
|
|
|
Capitalized interest expense |
|
2,560 |
|
|
|
Total interest |
$ |
51,143 |
|
|
|
Preferred dividends |
$ |
1,225 |
|
|
|
Total debt |
$ |
5,756,311 |
|
|
|
Cash |
|
(1,184 |
) |
|
|
Net debt |
$ |
5,755,127 |
|
|
|
Consolidated Interest Coverage Ratio – adjusted for non-recurring items |
5.1x |
|||
|
Consolidated Fixed Charge Coverage Ratio – adjusted for non-recurring items |
5.0x |
|||
|
Consolidated Net Debt-to-EBITDAre – adjusted for non-recurring items |
5.5x |
|||
|
Debt Covenant Overview |
|
|
|
|
|
|
|||||||||
|
Unsecured Line of Credit Covenants (2) |
|
|
|
Required |
|
Actual |
|
Compliance |
|||||||
|
Maximum Leverage Ratio |
|
|
|
≤60.0% |
|
30.9%(2) |
Yes |
||||||||
|
Minimum Fixed Charge Coverage Ratio |
|
|
|
≥1.5x |
|
4.7x |
|
Yes |
|||||||
|
Maximum Secured Debt Ratio |
|
|
|
≤40.0% |
|
8.6% |
|
Yes |
|||||||
|
Minimum Unencumbered Pool Leverage Ratio |
|
|
|
≥150.0% |
|
373.3% |
|
Yes |
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
Senior Unsecured Note Covenants (3) |
|
|
|
Required |
|
Actual |
|
Compliance |
|||||||
|
Debt as a percentage of Total Assets |
|
|
|
≤65.0% |
|
32.3%(3) |
|
Yes |
|||||||
|
Consolidated Income Available for Debt Service to Annual Service Charge |
|
|
|
≥1.5x |
|
5.5x |
|
Yes |
|||||||
|
Secured Debt as a percentage of Total Assets |
|
|
|
≤40.0% |
|
5.2% |
|
Yes |
|||||||
|
Total Unencumbered Assets to Unsecured Debt |
|
|
|
≥150.0% |
|
321.4% |
|
Yes |
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
Securities Ratings |
|
|
|
Debt |
|
Outlook |
|
Commercial Paper |
|||||||
|
Moody’s Investors Service |
|
|
|
Baa1 |
|
Stable |
|
P-2 |
|||||||
|
S&P Global Ratings |
|
|
|
BBB+ |
|
Stable |
|
A-2 |
|||||||
|
|
|
|
|
|
|
|
|||||||||
|
Asset Summary |
|
Number of |
3Q 2026 NOI (1) |
% of NOI |
Gross |
% of |
|||||||||
|
Unencumbered assets |
|
46,892 |
|
$ |
257,568 |
|
89.9 |
% |
|
$ |
14,986,286 |
|
|
90.1 |
% |
|
Encumbered assets |
|
7,330 |
|
|
29,030 |
|
10.1 |
% |
|
|
1,642,359 |
|
|
9.9 |
% |
|
|
|
54,222 |
|
$ |
286,598 |
|
100.0 |
% |
|
$ |
16,628,645 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|||||||||
|
(1) See Attachment 14 for definitions and other terms. |
|||||||||||||||
|
(2) As defined in our credit agreement dated September 15, 2021, as amended. |
|||||||||||||||
|
(3) As defined in our indenture dated November 1, 1995 as amended, supplemented or modified from time to time. |
|||||||||||||||
Attachment 14(D)
Definitions and Reconciliations
September 30, 2026
(Unaudited)
All guidance is based on current expectations of future economic conditions and the judgment of the Company’s management team. The following reconciles from GAAP Net income/(loss) per share for full-year 2026 and fourth quarter of 2026 to forecasted FFO and FFO as Adjusted per share and unit:
| Full-Year 2026 | ||||||
| Low | High | |||||
| Forecasted net income per diluted share |
$ |
1.58 |
|
$ |
1.60 |
|
| Conversion from GAAP share count |
|
(0.10 |
) |
|
(0.10 |
) |
| Net gain on the sale of depreciable real estate owned |
|
(1.10 |
) |
|
(1.10 |
) |
| Depreciation |
|
2.00 |
|
|
2.00 |
|
| Noncontrolling interests |
|
0.10 |
|
|
0.10 |
|
| Net (gain)/loss on consolidation |
|
(0.01 |
) |
|
(0.01 |
) |
| Preferred dividends |
|
0.01 |
|
|
0.01 |
|
| Forecasted FFO per diluted share and unit |
$ |
2.48 |
|
$ |
2.50 |
|
| Legal and other costs |
|
0.06 |
|
|
0.06 |
|
| Severance costs |
|
0.01 |
|
|
0.01 |
|
| Casualty-related charges/(recoveries) |
|
0.03 |
|
|
0.03 |
|
| Realized/unrealized (gain)/loss on real estate technology investments |
|
(0.04 |
) |
|
(0.04 |
) |
| Forecasted FFO as Adjusted per diluted share and unit |
$ |
2.54 |
|
$ |
2.56 |
|
|
4Q 2026 |
||||||
| Low | High | |||||
| Forecasted net income per diluted share |
$ |
0.13 |
|
$ |
0.15 |
|
| Conversion from GAAP share count |
|
(0.01 |
) |
|
(0.01 |
) |
| Depreciation |
|
0.50 |
|
|
0.50 |
|
| Noncontrolling interests |
|
0.01 |
|
|
0.01 |
|
| Preferred dividends |
|
– |
|
|
– |
|
| Forecasted FFO per diluted share and unit |
$ |
0.63 |
|
$ |
0.65 |
|
| Legal and other costs |
|
– |
|
|
– |
|
| Casualty-related charges/(recoveries) |
|
– |
|
|
– |
|
| Realized/unrealized (gain)/loss on real estate technology investments |
|
– |
|
|
– |
|
| Forecasted FFO as Adjusted per diluted share and unit |
$ |
0.63 |
|
$ |
0.65 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20261101998492/en/
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