REIT UDR sees 2026 FFO below estimate as higher costs weigh
REIT UDR sees 2026 FFO below estimate as higher costs weigh July 27 (Reuters) - Multifamily real estate investment trust UDR UDR.N forecast 2026 adjusted funds from operations below analysts' estimate on Monday, as expenses outpaced rental revenue growth.
U.S. apartment landlords are under pressure from an influx of new buildings competing for tenants, with slower rent growth, rising costs and higher interest rates further straining the sector.
Here are some details:
The Highlands Ranch, Colorado-based REIT, which has ownership interests in nearly 60,000 rental homes nationwide, reported a 1.8% year-on-year rise in revenue during the second quarter, while expenses increased 2.6%.
UDR's same-store physical occupancy in the quarter slipped 0.2 percentage point from a year earlier.
It forecast full-year adjusted FFO — a key metric for REIT performance — to be between $2.49 and $2.57 per share, with the midpoint below analysts' average estimate of $2.54, according to data compiled by LSEG.
Total revenue for the quarter ended June 30 came in at $425.4 million, roughly in line with expectations.
(Reporting by Megha Kumari and Aishwarya Jain in Bengaluru; Editing by Shilpi Majumdar)
((Megha.Kumari@thomsonreuters.com;))