Key Takeaways:
UDR Inc. (NYSE: UDR) reported first-quarter funds from operations that met analyst estimates and a net income that beat its own guidance, while announcing a shift to a monthly dividend payout, a first for a major residential real estate investment trust.
"UDR's strategic pivot in dividend policy is consistent with our effort to expand access to capital," said Tom Toomey, UDR's Chairman, President, and Chief Executive Officer. "Our time-tested business of attracting apartment residents, collecting rents, managing expenses, and providing dividends to shareholders lends itself to a monthly distribution, which is appealing to a wide variety of investors, including retail."
The Highlands Ranch, Colorado-based REIT reported funds from operations of $217.7 million, or 62 cents per share. Net income was $188.6 million, or 57 cents per share, a 148% increase from the 23 cents reported in the same quarter a year ago. Revenue for the quarter was $425.8 million.
The company will switch to paying dividends monthly starting in July 2026. The board declared a dividend of $0.145 per share for each month in the second quarter, totaling $0.435 for the quarter. This represents an annualized dividend of $1.74 per share, which is an approximate 5 percent yield based on the stock's closing price on April 28, 2026.
UDR guided for second-quarter funds from operations to be in the range of 62 cents to 64 cents per share. For the full year, it expects FFO between $2.47 and $2.57 per share.
The move to a monthly dividend makes UDR the first U.S. residential REIT to adopt such a schedule, a strategy aimed at increasing investor appeal. The company has paid dividends for 215 consecutive quarters, totaling approximately $9 billion over 53 years.
This article is for informational purposes only and does not constitute investment advice.
