UDR (UDR) investor relations material

Executive summary

• Q1 2026 results met or exceeded expectations, with net income per diluted share rising to $0.57, up 148% year-over-year, and FFOA per share at $0.62, driven by strong operational execution, asset sales, and capital allocation strategies.

• Resident retention reached all-time highs, supporting revenue and cash flow growth, and the company was named a Top Workplace by USA Today for the second consecutive year.

• Transitioned to a monthly dividend starting July 2026, becoming the first residential REIT to do so, aiming to attract high-net-worth and institutional investors.

• Maintained or raised full-year 2026 same-store and earnings guidance, reflecting confidence in long-term growth prospects.

• Significant gains from the sale of four apartment communities for $362 million and increased income from unconsolidated entities drove net income growth.

Financial highlights

• Total revenue for Q1 2026 was $425.8 million, up 0.9% year-over-year; same-store revenue grew 0.9%, while expenses increased 4.4%.

• FFO per diluted share was $0.63, up 9% year-over-year; FFOA per share was $0.62, up 2% year-over-year; AFFO per share was $0.56, unchanged.

• Same-store NOI declined 0.8% year-over-year due to higher expenses and lower NOI from sold communities.

• Net income attributable to common stockholders was $188.6 million, up from $75.5 million in Q1 2025.

• Quarterly dividend increased 1.2% to $0.435 per share; annualized dividend for 2026 set at $1.74 per share.

Outlook and guidance

• Full-year 2026 net income per diluted share guidance raised to $0.91–$1.01; FFO per share: $2.48–$2.58; FFOA per share: $2.47–$2.57.

• Q2 2026 FFOA per share guidance is $0.62–$0.64, with the midpoint representing a 2% sequential increase.

• Same-store revenue growth guidance for 2026: 0.25%–2.25%; expense growth: 3.00%–4.50%; NOI growth: -1.00% to 1.25%.

• Dispositions guidance for 2026 increased to $360 million–$600 million.

• Guidance assumes consistent blended lease rate growth and occupancy in the mid-96% range.