EL7.AI
StocksMedium•21 October 2026•
4 min read

UDR raises 2026 earnings per share outlook to $1.58–$1.60

Key Facts

1UDR raised its 2026 net income outlook to between $1.58 and $1.60 per diluted share.
2The company revised its adjusted funds from operations outlook to between $2.54 and $2.56 per diluted share.
3UDR and Apollo plan to form a joint venture comprising 19 communities and 7,059 apartments valued at approximately $2.0 billion.
4Apollo-managed funds and affiliates will invest $1.34 billion in equity in the proposed venture.

UDR raised its fiscal 2026 net income outlook to between $1.58 and $1.60 per diluted share, according to its official statement filed with the U.S. Securities and Exchange Commission on preliminary third-quarter results. The company had previously forecast annual net income of between $1.03 and $1.11 per diluted share in its second-quarter results update published on July 27. The low end of the new guidance thus exceeded the high end of the range the company had projected in its previous update. The company also revised its annual outlook for adjusted funds from operations to between $2.54 and $2.56 per diluted share. The previous range for this measure was between $2.49 and $2.57 per diluted share for the same fiscal year. The latest revision raises the lower end and lowers the upper end of this measure, narrowing the estimated range compared with the guidance issued alongside second-quarter results.

For the third quarter of 2026, UDR projected net income of $0.67 per diluted share, according to preliminary figures in the company's statement. It had forecast net income for the quarter of between $0.13 and $0.15 per diluted share when it issued guidance on July 27. The new preliminary estimate puts net income above the upper end of the range the company announced before the period ended. For third-quarter adjusted funds from operations, the company projected $0.65 per diluted share in the same update filed with the U.S. regulator. That figure is at the upper end of its previous guidance of between $0.63 and $0.65 per diluted share. Preliminary net income thus exceeded the previous estimated range, while adjusted funds from operations came within the range the company had set for the quarter.

Alongside the financial update, UDR and Apollo announced plans to form a long-term joint venture for a portfolio of apartment communities, according to the partnership statement filed with the U.S. Securities and Exchange Commission. The proposed portfolio comprises 19 apartment communities with a total of 7,059 apartments, according to details the companies provided in the announcement. The portfolio has an approximate value of $2.0 billion, representing the value of the properties to be included in the planned joint venture. Under the venture's arrangements, Apollo-managed funds and affiliates will invest $1.34 billion in equity upon completion of the proposed transaction. These arrangements will give Apollo an approximately two-thirds ownership stake in the joint venture, according to the partnership statement detailing the portfolio's size and the planned investment.

UDR, in turn, will retain one-third ownership of the joint venture after the transaction closes, according to the ownership structure announced by the companies. The company will continue to operate and manage the residential portfolio, receiving asset management fees under the planned partnership arrangements. It will also consolidate the joint venture in its financial statements, according to the accounting treatment outlined in the transaction statement. On the relationship between the partnership and the financial update, UDR said its net income, funds from operations and adjusted funds from operations per share figures, including guidance, "are not affected by the Apollo transaction." This clarification covers the annual estimates and preliminary per-share figures announced by the company, meaning the announced increase in guidance is unrelated to the transaction's effect on those measures.

As background to the latest update, Chief Executive Tom Toomey had linked UDR's strong outlook to economic and housing factors when announcing second-quarter results. He said in the earlier official disclosure that these factors included "a resilient economy, declining supply, and the relative affordability of apartment living." His assessment at the time came in the context of the results accompanied by the previous fiscal-year and third-quarter guidance, before the announcement of the current preliminary figures. Regarding the use of proceeds from the proposed partnership, Chief Financial Officer Dave Bragg said a portion would be allocated to reducing debt and strengthening the balance sheet. Bragg outlined this use in the partnership statement with Apollo, which addressed the financial arrangements for the planned residential venture.

UDR and Apollo expect to close the transaction on October 29, 2026, according to the date given in the partnership statement. Closing remains subject to the execution of documents and customary closing conditions, with the arrangements announced before the transaction was completed. On earnings, UDR described its current third-quarter results as "preliminary and unaudited" in its official statement filed with the U.S. regulator. These figures may change upon completion of the review procedures and preparation of final results, according to the caution accompanying the company's financial update. UDR plans to announce final third-quarter earnings results on November 2, 2026.