UDR Closes $2.0 Billion Real Estate Partnership With Apollo, Covering 7,059 Apartments
Key Facts
UDR closed a joint venture with Apollo on October 30, 2026, covering 19 apartment communities and 7,059 units, with the portfolio valued at about $2.0 billion. The closing followed the partnership’s announcement in October, giving UDR cash proceeds while keeping it as a partner in and manager of the assets. According to UDR’s filing with the U.S. Securities and Exchange Commission, Apollo invested about $1.34 billion for an approximately 67% stake, while UDR retained an approximately 33% stake. The structure combines Apollo’s larger economic interest with UDR’s continued role in managing and operating the communities. The companies said the portfolio comprises “high-quality” apartment communities and is valued at approximately $2.0 billion.
UDR will continue to operate the communities and manage the venture’s assets for a fee, and the partnership agreement also allows it to appoint four of the five board members. The company said in its filing that it consolidates the venture in its financial statements, reflecting the management and control rights it retained under its terms despite Apollo’s larger ownership stake. This means the deal transferred most of the economic ownership to Apollo while leaving day-to-day management with UDR. Deal data put the portfolio’s capitalization rate at about 6.0%, average revenue per unit at $2,058 and the properties’ average age at 39 years. These metrics provide a framework for describing the assets entering the partnership, alongside the number of communities and units and their total value.
UDR’s chief financial officer said the company plans to direct the proceeds toward higher-growth assets and other general purposes, as well as debt reduction. UDR said in its filing that the joint venture formed in October provided about $1.34 billion in cash as part of its long-term liquidity sources. The company said its liquidity needs include debt maturities, development funding and potential acquisitions. The announced plan therefore combines redeploying capital into other assets with strengthening the balance sheet. The filings did not specify how much would be allocated to each use.
UDR retained an option to buy back Apollo’s stake beginning on the fifth anniversary of the deal’s closing. The final filing sets a target internal rate of return of 7.0% tied to liquidation distributions, rising to 7.30% on the seventh anniversary. This provision links the cost of reclaiming the stake to the duration of the investment and the return mechanism specified in the venture agreement. The option gives UDR a contractual path to reclaim the stake after the specified period, while leaving the timing of its exercise as a future company decision. The option period begins on the fifth anniversary of the venture’s closing on October 30, 2026.
The deal comes as UDR’s same-store portfolio posted occupancy of 96.5% in the third quarter of 2026, with year-over-year revenue growth of 1.8% and net operating income growth of 1.6%. In results for the same quarter, diluted net income was $0.67 per share, compared with $0.12 in the corresponding quarter of 2025. Adjusted funds from operations and funds from operations were unchanged at $0.65 and $0.62 per share, respectively, across the two periods. These figures place operating portfolio performance alongside the deal, which monetized part of the assets while leaving UDR responsible for managing them. The company also raised its 2026 annual adjusted funds from operations outlook to a range of $2.54–$2.56 per share, a two-percentage-point increase at the midpoint.
UDR raised its 2026 same-store net operating income growth outlook to a range of 0.8%–1.2%, with a midpoint of 1.0%, an increase of 37.5 basis points at the midpoint. The company’s shares closed at $36.56 on November 11, 2026. By the end of October, UDR had repurchased about 5.2 million shares at an average price of $35.48 per share, for a total of $185.1 million, with about 20.3 million shares remaining available under the repurchase program. The announced purchases reflect another use of capital alongside the joint venture proceeds. The disclosures on liquidity, allocation of proceeds and repurchase options give investors financial and operating factors to monitor in the period ahead.