Stock of the Day

October 24, 2019

United Dominion Realty Trust (UDR)

$34.19
+$0.23 (+0.7%)
Market Cap: $10.91B

About United Dominion Realty Trust

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of December 31, 2023, UDR owned or had an ownership position in 60,336 apartment homes including 359 homes under development. For over 51 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.

Today's Trend

United Dominion Realty Trust, Inc. (NYSE: UDR) has seen its shares increase modestly, although the latest analyst revisions provide a mildly negative earnings signal. Zacks Research lowered estimates across several future periods, suggesting somewhat softer expectations for the multifamily REIT’s earnings growth.

  • Zacks’ revised FY2026 EPS forecast of $2.54 remains slightly above the current analyst consensus of $2.53. The company also recently exceeded quarterly EPS expectations, reporting $0.21 versus the $0.13 consensus, while revenue was slightly ahead of forecasts.
  • The revised estimates imply continued earnings growth over time, with Zacks projecting FY2027 EPS of $2.61 and FY2028 EPS of $2.72. However, the reports do not identify a new company-specific catalyst behind the stock’s recent strength.
  • Zacks Research cut its estimates for Q4 2026 EPS to $0.64 from $0.65 and FY2026 EPS to $2.54 from $2.56. It also reduced Q1 2027 EPS to $0.63 from $0.64, Q3 2027 EPS to $0.64 from $0.65, and FY2027 EPS to $2.61 from $2.63.
  • Longer-term forecasts were also trimmed: Q1 2028 EPS fell to $0.64 from $0.66, Q2 2028 EPS to $0.69 from $0.70, and FY2028 EPS to $2.72 from $2.76. The broad-based reductions may weigh on sentiment because they point to slightly weaker expected operating performance.

Overall, the earnings-estimate cuts are a modest headwind for UDR, but the impact may be limited because the company’s FY2026 forecast remains near consensus and its latest quarterly results beat expectations.

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