UDR Inc. UDR, a premier multifamily real estate investment trust (REIT), is set to announce its second-quarter 2025 results after the closing bell on July 30. While its quarterly results are likely to reflect growth in revenues, funds from operations (FFO) per share might have remained unchanged.\n\nIn the last reported quarter, this Denver, CO-based residential REIT came up with an FFO as adjusted per share of 61 cents, in line with the Zacks Consensus Estimate. Results reflected year-over-year growth in same-store net operating income (NOI), led by higher occupancy and an effective blended lease rate. However, a rise in other operating expenses, and general and administrative expenses undermined the performance to an extent.\n\nIn the last four quarters, UDR’s FFO as adjusted per share met the Zacks Consensus Estimate on three occasions and surpassed on the other, the average surprise being 0.41%. The graph below depicts the surprise history of the company:\n\nUnited Dominion Realty Trust, Inc. Price and EPS Surprise\n\nUnited Dominion Realty Trust, Inc. price-eps-surprise | United Dominion Realty Trust, Inc. Quote\n\nLet’s see how things have shaped up before this announcement.\n\nThe U.S. apartment market remained impressively resilient in the second quarter of 2025, absorbing more than 227,000 units between April and June, a robust second-quarter figure. According to RealPage data, annual absorption surpassed even the peak leasing surge of 2021 and early 2022, defying a backdrop of slowing job growth, weak business sentiment and broader economic uncertainty.\n\nWhile rent growth stayed muted, up just 0.19% in June, occupancy climbed steadily. At 95.6% in June, national occupancy rose 140 basis points year over year. Operators appear focused on maximizing occupancy, even if it means sacrificing rent increases. This “heads-in-beds” approach supports stability during a period of high new supply.\n\nSupply, though moderating, remains historically elevated. More than 535,000 units were completed in the past year, with roughly 108,000 delivered in the second quarter alone. Yet the market’s ability to digest this volume underscores its underlying strength.\n\nRegionally, tech-driven markets like San Francisco and San Jose, as well as Boston and New York, gained momentum — likely aided by easing supply and increased return-to-office trends. Sun Belt markets, such as Dallas, Atlanta and Jacksonville, FL, also showed signs of recovery in the second quarter, sustaining robust demand amid declining deliveries. Tourism-dependent cities, like Las Vegas, Orlando, FL, and Nashville, TN, faltered slightly, possibly reflecting softening discretionary spending. Supply-heavy markets like Austin, Phoenix and Denver continued to see the sharpest rent cuts.\n\nIn this environment, UDR is well-positioned to gain from its geographically diversified portfolio of A/B quality properties located in both urban and suburban markets across key U.S. regions, including coasts and the Sunbelt.\n\nThis strategy of maintaining a diversified portfolio across various geographies and price points limits volatility and concentration risks while aiding the company in generating steady operating cash flows. We estimate rental income to grow by 1.9% year over year for the second quarter.\n\nThe company is leveraging technological initiatives and process enhancements to bring about operational resiliency across its platform. Such efforts are likely to give UDR a competitive edge over others and enable it to capture additional net operating income (NOI), driving long-term profitability. We estimate the same-property NOI to increase 4.9% in the second quarter of 2025.\n\nThe Zacks Consensus Estimate for quarterly revenues is currently pegged at $422.24 million. This indicates a 2.15% year-over-year rise.\n\nUDR expects second-quarter 2025 FFO as adjusted per share in the range of 61-63 cents.\n\nHowever, elevated rental unit supply in select markets has heightened competition, weighing on its quarterly performance.\n\nBefore the second-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO as adjusted per share has remained unrevised at 62 cents in the past three months. Also, this suggests no change year over year.\n\nOur proven model does not conclusively predict a surprise in terms of FFO per share for UDR this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.\n\nUDR currently carries a Zacks Rank of 3 and has an Earnings ESP of -0.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.\n\nHere are two stocks from the broader REIT sector — AvalonBay Communities AVB and Cousins Properties CUZ— that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.\n\nAvalonBay Communities, scheduled to report quarterly numbers on July 30, has an Earnings ESP of +0.02% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.\n\nCousins Properties, slated to release quarterly numbers on July 31, has an Earnings ESP of +0.36% and carries a Zacks Rank of 3 at present.\n\nNote: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.\n\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\n\nAvalonBay Communities, Inc. (AVB) : Free Stock Analysis Report\n\nCousins Properties Incorporated (CUZ) : Free Stock Analysis Report\n\nUnited Dominion Realty Trust, Inc. (UDR) : Free Stock Analysis Report\n\nThis article originally published on Zacks Investment Research (zacks.com).

UDR Set to Report Q2 Earnings: What to Expect From the Stock?

The article discusses UDR Inc.'s expected Q2 2025 earnings, highlighting its FFO per share, market performance, and comparisons with other REITs. Key factors include UDR's geographically diversified portfolio, U.S. apartment market absorption, and analyst ratings for related stocks.