UDR (UDR) Stock Forecast & Price Target

UDR Inc. demonstrates a positive financial outlook driven by strong performance in key markets, particularly in the Bay Area and Seattle, which are expected to experience minimal new supply growth. The company's projections include a solid 2.3% year-over-year same-store revenue growth for 2025, with a corresponding SSNOI growth of 2.2% that falls within management's guidance range, benefiting from an estimated average same-store occupancy of 96.9% and a positive blended rent spread of +2.0%. Looking ahead to 2026, forecasts indicate an improvement in financial performance, with anticipated same-store revenue growth of 3.1% and SSNOI growth of 3.0%, coupled with normalized FFO growth projected at 0.3% for 2025 and 2.5% for 2026.

UDR Inc. is experiencing a significant decline in its financial performance, particularly evidenced by a pronounced falloff in multi-family leasing spreads during the third quarter of 2025. The company's blended rents decreased by 200 basis points quarter-over-quarter, largely due to a substantial drop in new lease rates and only modest growth in renewals, alongside a 30 basis point decline in occupancy to 96.6%. Moreover, management's projection of below-average earnings growth over the next few years raises concerns, particularly regarding the potential negative impact of employment cuts in the Washington DC area, which could further hinder the company's performance in its key markets.