UDR · 10-Q · 2026Q3 · Full report

Operating Margin Drivers

UDR, Inc. · 2026-11-03 · Importance 18 · Surprise 14

Same-Store operating expenses increased 2.7% ($3.4 million) in the third quarter of 2026 and 3.2% ($11.7 million) over the first nine months, compared with 2025. Third-quarter expense growth included a 2.5% ($1.2 million) increase in real estate taxes, a 5.4% ($1.0 million) increase in utilities, and a 5.1% ($0.9 million) increase in personnel costs. Nine-month increases included utilities of 6.4% ($3.4 million), real estate taxes of 2.3% ($3.3 million), personnel costs of 4.4% ($2.4 million), and repair and maintenance of 3.0% ($2.2 million). Same-Store operating margin declined to 67.8% from 68.2% in the quarter and to 67.8% from 68.3% for the nine-month period.

Key facts

• Same-Store NOI increased 1.0% to $273.113 million for the three months ended September 30, 2026, compared with $270.536 million in 2025. source
• Same-Store NOI increased 0.5% to $803.275 million for the nine months ended September 30, 2026, compared with $798.981 million in 2025. source
• UDR's real estate depreciation expense decreased $4.3 million in the third quarter of 2026, primarily because of communities sold in 2026 and 2025 and fully depreciated assets, partly offset by communities acquired. source
• Same-Store NOI increased 1.0%, or $2.6 million, in the three months ended September 30, 2026, driven by rental income growth of 1.5%, or $5.9 million, partly offset by operating expense growth of 2.7%, or $3.4 million. source
• Same-Store operating margin was 67.8% for the three months ended September 30, 2026, compared with 68.2% in 2025. source
• Same-Store NOI increased 0.5%, or $4.3 million, in the nine months ended September 30, 2026, driven by rental income growth of 1.4%, or $16.0 million, partly offset by operating expense growth of 3.2%, or $11.7 million. source
• Same-Store operating margin was 67.8% for the nine months ended September 30, 2026, compared with 68.3% in 2025. source