Morgan Stanley Trims UDR Target as Growth Outlook Trails Peers

UDR, Inc. (NYSE:UDR) is included among the Dividend Capture Strategy: 14 High Yield Stocks to Buy in April.

On March 26, Morgan Stanley analyst Adam Kramer lowered the firm’s price recommendation on UDR, Inc. (NYSE:UDR) to $43 from $43.50. It maintained an Equal Weight rating on the shares. The analyst said the stock’s discount to peers appears justified, as UDR is expected to lag its peers in growth each year based on the firm’s projections.

Earlier, on March 6, Barclays lowered its price goal on UDR to $42 from $44 and maintained an Overweight rating. The firm also reduced its estimates across the residential REIT sector.

For 2026, UDR guided for FFOA per share between $2.47 and $2.57, with a midpoint of $2.52. That suggests a slight decline of about $0.02, or less than 1%, compared to the $2.54 reported in 2025. Management said that expected same-store revenue and expense growth would translate into roughly 0.125% year-over-year NOI growth at the midpoint.

The company also indicated plans to be a net seller of assets during 2026. Several apartment communities are already being marketed for sale. Bragg added that the company plans to direct capital toward areas with the most attractive risk-adjusted returns. This includes investments in its operating platform, share repurchases, and capital spending aimed at improving NOI.

UDR, Inc. (NYSE:UDR) operates as a self-administered real estate investment trust. It owns, operates, acquires, renovates, develops, and manages apartment communities across targeted markets in the United States. The company runs its business through two segments: Same-Store Communities and Non-Mature Communities/Other.

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