UDR at BofA NY Global Real Estate Conference 2026: upbeat on 2027

On 16th September 2026, apartment-focused REIT UDR (UDR) shared optimistic outlook for 2027 during the BofA NY Global Real Estate Conference. The company attributed its confidence to several factors such as reduced supply, increased rental income, disciplined capital allocation, and improvements in operating execution. UDR's CEO, Tom Toomey, stated that 2027 would likely outperform 2026, driven by sequential revenue growth across all its markets.

In Q2 2026, UDR posted a 1.9% same-store revenue growth, exceeding expectations, which was the top growth among peers during the leasing season. The company has been actively disposing older assets and repurchasing stocks, with $600 million of asset sales and $400 million of stock repurchases made year-to-date. UDR highlighted strong performance in pricing and resident engagement, powered by the use of data, AI, and improved resident outreach.

The company expects apartment demand to be supported by easing supply, low rent-to-income levels, and weak single-family home affordability. UDR's stock is viewed as "very cheap" by management, with the company treating stock repurchases as the best use of capital. The company's asset disposition strategy screens properties based on predictive analytics signals, operating upside, and capital spending needs.

UDR's DPE portfolio, which includes these sold properties, is expected to decline to $250 million by the end of 2026. The company's operating performance remained robust, with a 70% positive market performance record during Q2 2026 and sequential improvement across all its markets. UDR expects a "more normal" leasing environment in 2026, with occupancy at 96.5% during the back half and 30-day occupancy at 96%, up from 95.5% a year earlier.

Market rent declines have been less severe than a year ago, with a 50 basis point decline over the last 30 days compared to 200 basis points the previous year. Toomey highlighted UDR's efforts to reduce fourth-quarter lease expirations and improve renewal rates, aiming to strengthen the company's revenue base heading into 2027.