UDR Sells Four Multifamily Communities for $362M, Acquires 232-Unit Portland Property in Q1 2026 Capital Recycling Push
UDR, Inc. (NYSE: UDR), the Denver-based residential real estate investment trust, completed the sale of four apartment communities totaling 1,159 units for gross proceeds of $362.0 million during the first quarter of 2026, while also acquiring a 232-unit multifamily community in Portland, Oregon, subsequent to quarter-end, the company announced April 29.
Q1 2026 Multifamily Real Estate Dispositions
The four communities sold during the quarter were located in Baltimore, Denver, Seattle, and Tampa, with combined gross proceeds of $362.0 million. The sales were completed as part of what UDR described as a data-driven approach to capital allocation, prioritizing dispositions at what the company characterized as compelling valuations.
The Southeast region posted a same-store net operating income decline of 3.9% year-over-year in the first quarter, while the Southwest fell 2.2%, compared with gains of 0.7% and 0.6% in the West and Northeast, respectively.
"2026 has started as expected, and our results align with guidance and our focus on maximizing revenue growth," said Michael D. Lacy, UDR's Chief Operating Officer. "I am pleased with the progress our teams have made in driving increased innovation income, which includes a variety of services and amenities desired by our residents, and achieving all-time Company high levels of resident retention."
Portland Real Estate Acquisition: 232-Unit Community
Subsequent to the close of the first quarter, UDR acquired a 232-apartment home community in Portland, Oregon, in connection with the liquidation of the company's interest in a debt and preferred equity joint venture. As a result of the transaction, UDR began consolidating the community on its balance sheet. The investment had previously been recognized as part of the company's Debt and Preferred Equity program.
The Portland acquisition adds to UDR's West region exposure, which accounted for 32.4% of the company's same-store portfolio by net operating income as of the first quarter and posted the strongest regional performance, with 2.7% same-store revenue growth year-over-year and 96.9% physical occupancy.
During the first quarter, UDR also received approximately $138.9 million in proceeds from the full repayment of two separate debt and preferred equity investments.
Balance Sheet
UDR's total indebtedness stood at $5.7 billion as of March 31, 2026, at a weighted average interest rate of 3.4%, unchanged from the prior year period. Approximately $355.0 million, or 6.6% of total consolidated debt, is scheduled to mature through the remainder of 2026, excluding amounts on the company's line of credit, commercial paper program, and working capital credit facility. The company reported approximately $1.1 billion in liquidity through a combination of cash and undrawn credit facility capacity.
The company's consolidated net debt-to-EBITDAre ratio, adjusted for non-recurring items, improved modestly to 5.6x from 5.7x in the first quarter of 2025. Consolidated debt as a percentage of total assets declined to 32.0% from 32.8% over the same period.
During the quarter and subsequent to quarter-end, UDR repurchased approximately 4.2 million shares of its common stock at a weighted average price of $35.84 per share for total consideration of approximately $150.0 million. Since recommencing share repurchases in September 2025, the company has repurchased approximately 7.4 million shares at a weighted average price of $35.96, totaling approximately $268.0 million.
Operating Results and Full-Year 2026 Guidance
UDR reported first-quarter 2026 net income of $0.57 per diluted share, compared with $0.23 per diluted share in the first quarter of 2025, a 148% increase. Funds from operations per diluted share came in at $0.63, up from $0.58 in the prior year period, while FFO as Adjusted per diluted share was $0.62, a 2% increase from $0.61.
Total revenue increased $3.9 million year-over-year, or 0.9%, to $425.8 million in the first quarter. Same-store revenue grew 0.9% year-over-year, while same-store expenses rose 4.4%, resulting in a same-store NOI decline of 0.8%. Blended same-store physical occupancy averaged 96.6% for the quarter, down 0.6 percentage points from the prior year period.
For the full year 2026, UDR maintained its same-store revenue guidance range of 0.25% to 2.25% growth and same-store NOI guidance of negative 1.00% to positive 1.25%, with midpoints unchanged from prior guidance. The company updated its full-year net income per diluted share guidance to $0.91 to $1.01, up from $0.45 to $0.55 previously. Full-year FFOA per diluted share guidance was maintained at $2.47 to $2.57.
"First quarter Same-Store and FFOA per diluted share results aligned with our expectations, and we adhered to our capital allocation heatmaps to create shareholder value by selling assets at compelling valuations and repurchasing our stock," said Tom Toomey, UDR's Chairman, President, and CEO. "In addition, I am excited to announce that UDR has become the first residential REIT to offer monthly dividends. This strategic pivot in dividend policy is consistent with our effort to expand access to capital."
Monthly Dividend and Corporate Governance
Concurrent with its earnings release, UDR announced the commencement of monthly common stock dividends beginning with the dividend payable in July 2026, marking what the company described as the first such move by a residential REIT. The company's board declared dividends for the second quarter of 2026 at $0.145 per share per month, reflecting an annualized dividend of $1.74 per share. The shift from quarterly to monthly distributions is intended to better align dividend timing with the company's rental receipts.
The company also announced board governance changes, with Katherine "Katie" A. Cattanach and Diane M. Morefield not standing for re-election at the upcoming annual shareholder meeting. Ellen M. Goitia, who was appointed to the board in January 2026, brings over three decades of experience in accounting, finance, and corporate governance, having served KPMG in senior leadership roles including partner-in-charge of the Chesapeake Business Unit Audit practice.
UDR was also named a Top Workplace by USA Today for the second consecutive year subsequent to quarter-end.
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