UDR and Apollo to Form $2.0 Billion Apartment Joint Venture

UDR, Inc. (UDR ) and Apollo announced on October 21, 2026 their intention to form a new, long-term joint venture that will own a portfolio of 19 apartment communities totaling 7,059 homes and valued at approximately $2.0 billion, according to the companies’ joint announcement. Apollo-managed funds and affiliates will invest $1.34 billion of equity capital into the newly established joint venture, acquiring an approximate two-thirds interest, while UDR will retain a one-third interest and consolidate the venture.

Under the terms of the transaction, UDR will continue to operate and manage the portfolio and will earn an asset management fee. The companies stated that the transaction, once completed, is expected to imply a capitalization rate of approximately 6.0% for a portfolio with average revenue per home of $2,058 and an age of 39 years.

Repurchase Option and Closing Timeline

UDR will also retain an option to repurchase Apollo’s interest in the joint venture at an expected 7.00% to 7.50% fixed return for a finite period starting at the fifth anniversary of closing. The transaction is expected to close on October 29, 2026, subject to execution of the documentation and customary closing conditions.

Citigroup Global Markets Inc. and Wells Fargo Securities, LLC acted as structuring agents and financial advisors to UDR, and Scotiabank acted as financial advisor to Apollo.

“Access to equity capital is one of UDR’s strategic priorities,” said Tom Toomey, UDR’s Chairman, President and CEO. Toomey said the transaction would position the company to pursue what he described as compelling opportunities in the marketplace while improving the quality of its wholly-owned portfolio and strengthening its balance sheet, adding that shareholders would benefit from the flexibility to move assets in and out of the joint venture and from the ability to realize value creation over time.

Apollo Partner Jamshid Ehsani called UDR a recognized leader in the real estate industry and described the transaction as “a cost-efficient capital solution tailored to UDR’s needs,” saying the investment demonstrates the ability of Apollo’s High Grade Capital Solutions business to partner with and support leading companies.

UDR Chief Financial Officer Dave Bragg said the company expects the transaction to be accretive to earnings and intends to deploy the proceeds into higher-growth assets and other general corporate purposes, with proceeds also used for debt reduction.

SEC Filing and Raised 2026 Guidance

UDR reported the joint venture in a Form 8-K dated October 21, 2026, disclosing it under Item 7.01 (Regulation FD) and furnishing the partnership press release as Exhibit 99.2. The filing states that the portfolio contributed by the company comprises 19 communities totaling 7,059 apartment homes and is valued at approximately $2.0 billion. The report was accepted on the SEC’s EDGAR system at 08:05:10 on October 21, 2026, and was signed by David D. Bragg, Senior Vice President and Chief Financial Officer.

In a separate release issued the same day and furnished to the SEC as Exhibit 99.1, UDR raised its full-year 2026 guidance ranges and provided preliminary third-quarter results, stating the update was provided in conjunction with the expected $2.0 billion Apollo partnership. The company raised its full-year 2026 Net Income per diluted share guidance to a range of $1.58 to $1.60 from $1.03 to $1.11 and its FFO as Adjusted per diluted share guidance to $2.54 to $2.56 from $2.49 to $2.57. Its full-year 2026 FFO per diluted share outlook moved to $2.48 to $2.50 from $2.47 to $2.55.

For the third quarter of 2026, UDR expects preliminary Net Income per diluted share of $0.67, compared with previously provided guidance of $0.13 to $0.15 per diluted share, and preliminary FFOA per diluted share of $0.65, the high end of the prior $0.63 to $0.65 range. The company stated that Net Income, FFO and FFOA per share for all 2026 periods and guidance are unaffected by the Apollo transaction, and that its same-store growth metrics have been adjusted to exclude the 19 joint-venture communities, which were wholly owned by UDR as of September 30, 2026. UDR noted that the preliminary figures are unaudited and remain subject to adjustment as it finalizes its quarterly report and completes its review procedures.

The same release detailed the company’s third-quarter capital-allocation activity. UDR sold two apartment communities, one each in Seattle and Nashville, with a combined 412 homes, for gross proceeds of $183.0 million, and it remains under contract to sell a 296-home community in the Metropolitan Washington, D.C. area for gross proceeds of approximately $68.5 million. The company expanded its joint venture with LaSalle Investment Management to approximately $958.3 million by contributing a 360-home apartment community in Nashville, receiving approximately $103.2 million in cash proceeds. It acquired a 483-home community in Inland Empire, California, and a 286-home community in Portland, Oregon, upon the liquidation of its interests in previous Debt and Preferred Equity joint ventures, for an incremental cash outlay of $235.0 million based on a combined property valuation of $354.4 million. UDR also received full repayment of approximately $29.5 million on a preferred equity investment in a stabilized apartment community in Orlando.

UDR said it will report final third-quarter 2026 results on November 2, 2026, and hold a webcast and conference call at 12:00 p.m. Eastern Time on November 3, 2026.