UDR, Inc.

Second-quarter FFOA per share was $0.64, up $0.02 from the first quarter, and it exceeded consensus. Same-store revenue growth was 1.8% year over year, same-store expense growth was 2.6%, and same-store NOI guidance was raised by 50 basis points. On the operating side, blended lease rate growth was 2.1%, occupancy remained in the mid-96% range, innovation income grew in the mid-single-digit range, and resident retention hit an all-time seasonal high of 60%. For full-year 2026, management raised same-store revenue growth guidance to 0.75% to 2%, same-store expense growth guidance midpoint to 3.25%, and FFOA guidance midpoint to $2.53. Third-quarter FFOA guidance was set at $0.63 to $0.65. Management said early third-quarter results are tracking similar to the second quarter.

Tom Toomey framed the quarter as proof that UDR’s operating model and capital allocation discipline are working together. He emphasized favorable industry fundamentals—employment growth, affordability supporting renting, and easing apartment supply—while stressing UDR’s differentiation through data, innovation, and execution. He also highlighted the new monthly dividend as a way to broaden the investor base and reiterated that UDR is an operator, not a lender, as it lets the debt and preferred equity business run off.

Dave Bragg focused on the financial and capital allocation implications of the quarter. He said buybacks remained a top priority, with about $300 million repurchased year-to-date plus about $120 million in the final four months of last year, and that Q2 repurchases totaled about 5.5 million shares for $200 million at an average price of $36.49. He also noted roughly $295 million of disposition proceeds from 4 assets, expected 2026 disposition activity of about $650 million, and nearly $1 billion of liquidity. On DPE, he said the book declined to $380 million at quarter-end and should fall to about $250 million to $300 million by year-end, with the runoff already reflected in 2026 guidance.

Analysts pressed management on the DPE runoff, the economics of continued buybacks versus other uses of capital, and whether UDR might be involved in strategic combinations; Tom Toomey declined to comment on speculation and said the board focuses on what best serves shareholders. Questions also centered on leasing trends, especially renewal and new-lease pricing in the Sunbelt, where Mike Lacy said July trends look similar to recent months, renewal growth is tracking around plus or minus 4%, and new leases could be flat through September. Another major topic was market-specific performance in coastal versus Sunbelt regions, with management citing strength in San Francisco, New York, and parts of Dallas/Florida, while acknowledging continued supply pressure in some Sunbelt and Nashville submarkets.