UDR, Inc. (NYSE: UDR) completed a $230 million expansion of its joint venture with LaSalle Investment Management, bringing the partnership’s total value to roughly $850 million. The deal adds four apartment communities—totaling 974 homes—in Portland, Orlando and Richmond, and increases the joint‑venture portfolio to 2,564 units. UDR retains a 51 % ownership stake while LaSalle holds 49 % of the newly contributed assets.
The expansion follows UDR’s Q3 2025 earnings, in which the company reported revenue up 2.8 % year‑over‑year to $431.9 million and adjusted FFO per diluted share of $0.65, a 5 % increase from Q3 2024. In that quarter UDR also raised its full‑year 2025 guidance for net income and FFOA per diluted share, reflecting confidence in its operating performance and capital allocation strategy.
Strategically, the expansion broadens UDR’s geographic footprint and deepens its partnership with LaSalle, a subsidiary of JLL that manages $88.5 billion in real‑estate assets. By leveraging LaSalle’s capital and market expertise, UDR can apply its data‑driven resident‑experience model across the new units and accelerate growth in high‑demand markets. The JV’s average vintage of the newly contributed properties is 1985, indicating a mature portfolio that can benefit from UDR’s operational efficiencies.
UDR will use the approximately $200 million in cash proceeds from the transaction for share repurchases, debt repayment and general corporate purposes, underscoring its focus on shareholder value and a disciplined balance‑sheet profile. The company’s Q4 2025 dividend of $0.43 per share—its 213th consecutive quarterly payment—further demonstrates its commitment to returning capital to investors.
While the expansion is a positive strategic move, UDR’s Q3 2025 earnings call highlighted near‑term headwinds in leasing performance, including declining blended rents and occupancy in key markets. Investors have responded with mixed sentiment, and JP Morgan recently lowered its price target, reflecting concerns about market‑specific risks. Nonetheless, the JV expansion is expected to strengthen UDR’s portfolio and support its long‑term growth trajectory.
Management emphasized the partnership’s value: “Our joint venture with UDR has been a strong and successful collaboration since its inception,” said Stuart Sziklas, Global Portfolio Manager at LaSalle. Tom Toomey, UDR’s Chairman, CEO and President, added, “The four apartment communities enhance the geographic diversification of the joint venture and offer current return to LaSalle. We are delighted to expand our successful joint venture.”
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