UDR (UDR) BofA NY Global Real Estate Conference 2026 summary

Company overview and market positioning

• Operates a $20 billion enterprise with 60,000 apartment homes across 20 markets, maintaining a national REIT presence.

• Sees 2027 as a stronger year than 2026, with more markets expected to show revenue growth due to supply absorption and favorable rent-to-income levels.

• Affordability challenges in single-family ownership and robust economic conditions support positive outlook.

• Achieved top sequential same-store revenue, expense, and NOI growth in the primary leasing season.

• Maintains a 70% market outperformance rate, with strong operational results expected to continue into Q3.

Operational performance and leasing trends

• Achieved a 1.9% blended rent growth in H1 2026, outperforming peers and setting up for continued strength.

• Expects 1.5%-2% blended rent growth in H2 2026, with occupancy around 96.5% and other income growth of 5%-7%.

• Market rents declined 50 bps over the last 30 days, a smaller drop than the prior year, reflecting stronger fundamentals.

• Lower lease expirations in Q4 (15%) allow for testing higher rents while maintaining healthy occupancy.

• Regional performance: Sun Belt shows improving momentum, while coastal markets like San Francisco and New York remain strong but are moderating.

Capital allocation and portfolio strategy

• Sold over $600 million in assets YTD and repurchased $400 million in stock, prioritizing buybacks as the best use of capital.

• Dispositions focus on assets with lower rent growth potential, limited operating upside, and higher CapEx needs, improving portfolio quality.

• Buyer profiles are diverse, with average sold asset age at 45 years and rents 20% below portfolio average; cap rates in the mid-5% range.

• Development is limited to projects adjacent to existing assets for risk mitigation and operational synergies.

• Acquisitions are selective, targeting assets with strong rent growth signals and operational upside.