"The apartment industry has experienced a broad deceleration in rent growth."
— Tom Toomey
03Detailed Report
0LHS.L
Company 0LHS.L
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 25, 2026
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Executive Summary
UDR reported solid Q3 2025 operating performance amid a broader apartment rent-growth deceleration. Same-store revenue rose 2.6% and NOI grew 2.3%, driven by 0.8% blended lease rate growth (renewals +3.3%, new leases -2.6%), occupancy averaging 96.6%, and a notable 8.5% increase in other income. Management attributed the near-term softness to macro uncertainties, but emphasized occupancy-first strategy, data-driven pricing, and enhanced resident experience as levers to sustain cash flow. The quarter also featured meaningful capital allocation activity, including repurchases of 930 thousand shares (~$35 million), a debt-extension with a fixed-rate swap, and a wait-listed but compelling acquisition program (Northern Virginia 406-unit community) expected to close in Q4. With liquidity exceeding $1 billion and leverage metrics in check (debt to enterprise value ~30%, net debt/EBITDA ~5.5x), UDR reaffirmed full-year 2025 guidance: 2.4% revenue growth, 2.75% expense growth, and 2.25% NOI growth; FFOA per share guidance raised to $2.53–$2.55 for 2025, with Q4 guidance of $0.63–$0.65. Looking ahead, management signals a flat 2026 same-store revenue earn-in (vs. 60 bp in 2025) but plans to provide more color in February 2026, reflecting a conservative but data-driven stance amid ongoing market shifts. Management highlighted a disciplined capital-allocation framework, a robust analytics platform spanning 35 markets, and continued emphasis on rent growth potential from structural housing shortages and controlled new supply.
Key Performance Indicators
Revenue
Increasing
431.86M
QoQ: 1.52% | YoY: 2.79%
Gross Profit
Increasing
294.71M
68.24% margin
QoQ: 154.41% | YoY: 187.15%
Operating Income
Increasing
76.36M
QoQ: -1.33% | YoY: 9.30%
Net Income
Increasing
40.41M
QoQ: 7.26% | YoY: 78.82%
EPS
Increasing
0.11
QoQ: 0.00% | YoY: 69.23%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $431.864 million (Q3 2025); YoY growth 2.79%, QoQ 1.52% (per earnings metrics)
- Gross profit: $294.705 million; YoY growth 187.15%, QoQ 154.41%
- Operating income: $76.356 million; YoY 9.30%, QoQ -1.33%
- Net income: $40.409 million; YoY 78.82%, QoQ 7.26%
- Earnings per share (GAAP): $0.11; YoY 69.23%, QoQ 0.00%
- FFOA per share (Q3 2025): $0.65; beat guidance midpoint ~ +3% (as stated in call)
- Weighted average shares (diluted): 356.9 million
- Occupancy: 96.6% (Q3 average)
- Blended lease rate growth: 0.8% for Q3 (renewals +3.3%, new leases -2.6%); blended growth decelerated in Q4 guidance
- Other income growth: +8.5% in Q3 2025
- Operating expense growth (YoY): 3.1%, with real estate taxes, insurance and maintenance contributing to a tighter 1.9% rise across the three categories that dominate costs
- NOI growth guidance: reaffirmed at 2.25% midpoint for 2025
- Liquidity: >$1 billion as of 9/30/2025; 6% of total consolidated debt maturing in 2026; Debt/Enterprise Value: 30%; Net debt/EBITDA: 5.5x
- Key 2025 guidance: Revenue growth 2.4%, expense growth 2.75%, NOI growth 2.25% (midpoints)
- Major capital actions: $35 million in share repurchases (~930k shares), debt-extension to Jan 2029 with a fixed-rate swap of $175 million, and announcements of approximately $150 million increases to acquisition and disposition midpoints for 2025
- Major acquisitions/transactions: Northern Virginia 406-unit community for $147 million expected to close in Q4; pending/ongoing LaSalle JV deployment; strong property-level cash flow supports current returns
- Balance sheet: Investment-grade, highly liquid; leverage within target range; ongoing capital-structure optimization
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
431.86M
2.79%
1.52%
Gross Profit
294.71M
187.15%
154.41%
Operating Income
76.36M
9.30%
-1.33%
Net Income
40.41M
78.82%
7.26%
EPS
0.11
69.23%
0.00%
Key Financial Ratios
Gross Profit Margin
Excellent
68.20%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
17.70%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Fair
9.36%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.38%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.23%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.18
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
High Risk
1.84
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
High Growth
81.48x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Premium
4.02x
Trading at premium to book value, reflects strong intangibles or growth
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