Highlands Ranch, Colorado-based UDR, Inc. (UDR) owns, operates, acquires, develops, redevelops, renovates, and manages apartment communities in high barrier-to-entry markets. With a market cap of $12.6 billion, UDR operates as one of the most favorably-positioned multi-family apartment REITs in the U.S.
The real estate major has notably underperformed the broader market over the past year. UDR stock prices have plunged 10.4% over the past 52 weeks and 13.6% in 2025, lagging behind the S&P 500 Index’s ($SPX) 19.3% gains over the past year and 8.4% returns in 2025.
Narrowing the focus, UDR has also underperformed the industry-focused Fidelity Real Estate Investment ETF’s (FPRO) 2.6% dip over the past 52 weeks and a marginal 72 bps decline on a YTD basis.
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Despite reporting better-than-expected results, UDR stock prices dipped 1.3% in the trading session following the release of its Q2 results on Jul. 30. The company’s total revenues for the quarter increased 2.4% year-over-year to $425.4 million, beating Street expectations. Meanwhile, its adjusted funds from operations (AFFO) per share inched up 3.2% year-over-year to $0.64, beating the consensus estimates by 3.2%.
UDR’s results benefited from an increase in comparable revenues and which outpaced rising comparable expenses. Its overall comparable revenues for the quarter increased 2.5%, while expenses increased by 1.7%. However, in the Northeast region, the market registering the second-highest revenue growth among all regions observed a 5.5% surge in expenses compared to a 3.6% increase in comparable revenues. Furthermore, the company reduced its full-year earnings and FFO guidance, making investors jittery.
For the current fiscal 2025, ending in December, analysts expect UDR to deliver an AFFO per share of $2.51, up 1.2% year-over-year. The company has a robust earnings surprise history. It has met or surpassed the Street’s AFFO expectations in each of the past four quarters.
The stock has a consensus “Moderate Buy” rating overall. Of the 23 analysts covering the stock, opinions include nine “Strong Buys,” 13 “Holds,” and one “Strong Sell” rating.
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