UDR expects to be a net seller in 2026

Core Insights - UDR has proactively shifted approximately 25% of its Q4 lease expirations to higher-demand months in 2026 to prepare for the typical fourth-quarter slowdown [1] - The company experienced a significant improvement in lease rate growth since October, with new lease rate growth increasing by 550 basis points and renewals by 300 basis points [2] - UDR anticipates blended lease rate growth of 1.5% to 2% on average in 2026, which is about 100 basis points higher than in 2025, driven by a reduction in supply completions [4] Company Performance - UDR built occupancy to nearly 97% despite a weakening demand in late Q3, with new lease growth falling to negative 8% and renewals at 2% in October [2] - The positive operating momentum from late 2025 has continued into 2026, with further acceleration in lease rate growth and high occupancy levels [3] - The company expects full-year 2026 same-store revenue growth to fall between 0.25% to 2.25%, with blended lease rate growth contributing approximately 80 basis points [4] Market Outlook - UDR's management sees several tailwinds for 2026, including a decrease in apartment completions, which is expected to lead to rent price acceleration in the Sun Belt [5] - Rent-to-income ratios for UDR's renters are below the long-term average, indicating that residents can comfortably accept rent increases [6]