Highlands Ranch, Colorado-based UDR, Inc. (UDR) owns, operates, acquires, develops, redevelops, renovates, and manages apartment communities in high barrier-to-entry markets. With a market cap of $12.6 billion, UDR operates as one of the most favorably-positioned multi-family apartment REITs in the U.S.

The real estate major has notably underperformed the broader market over the past year. UDR stock prices have plunged 10.4% over the past 52 weeks and 13.6% in 2025, lagging behind the S&P 500 Index’s ($SPX) 19.3% gains over the past year and 8.4% returns in 2025.

Narrowing the focus, UDR has also underperformed the industry-focused Fidelity Real Estate Investment ETF’s (FPRO) 2.6% dip over the past 52 weeks and a marginal 72 bps decline on a YTD basis.

Despite reporting better-than-expected results, UDR stock prices dipped 1.3% in the trading session following the release of its Q2 results on Jul. 30. The company’s total revenues for the quarter increased 2.4% year-over-year to $425.4 million, beating Street expectations. Meanwhile, its adjusted funds from operations (AFFO) per share inched up 3.2% year-over-year to $0.64, beating the consensus estimates by 3.2%.

UDR’s results benefited from an increase in comparable revenues and which outpaced rising comparable expenses. Its overall comparable revenues for the quarter increased 2.5%, while expenses increased by 1.7%. However, in the Northeast region, the market registering the second-highest revenue growth among all regions observed a 5.5% surge in expenses compared to a 3.6% increase in comparable revenues. Furthermore, the company reduced its full-year earnings and FFO guidance, making investors jittery.

For the current fiscal 2025, ending in December, analysts expect UDR to deliver an AFFO per share of $2.51, up 1.2% year-over-year. The company has a robust earnings surprise history. It has met or surpassed the Street’s AFFO expectations in each of the past four quarters.

The stock has a consensus “Moderate Buy” rating overall. Of the 23 analysts covering the stock, opinions include nine “Strong Buys,” 13 “Holds,” and one “Strong Sell” rating.

This configuration has remained mostly stable in recent months.

On Aug. 4, Evercore ISI Group analyst Steve Sakwa maintained an “Outperform” rating on UDR, but lowered the price target from $46 to $45.

As of writing, UDR’s mean price target of $45.31 represents a 20.8% premium to current price levels, while its street-high target of $51 suggests a 36% upside potential.