UDR, Inc. shares were trading at $36.13 on January 13th. The company's trailing price-to-earnings ratio stood at 82.27, while its forward P/E was 55.56, according to Yahoo Finance data.
Jussi Askola, CFA, presented a bullish thesis on UDR on his YouTube channel. The apartment real estate investment trust focuses on supply-constrained coastal markets in the United States. Askola described UDR as a natural successor after exiting AvalonBay at an attractive gain in late 2024.
The broader apartment sector experienced a sell-off after management teams indicated rent growth acceleration would arrive slightly later than investors had expected. This triggered a pullback across the group.
Despite delivering solid operating results and raising guidance earlier in the year, UDR's stock declined more than its peers. This created what analysts describe as a valuation disconnect.
Currently, UDR trades at the lowest valuation in its peer set. Its implied capitalization rate exceeds six percent, and it trades at an estimated thirty percent discount to net asset value. This discount is materially wider than comparable coastal apartment REITs.
Operationally, the company continues to outperform. It has posted some of the strongest same-property income growth in its peer group. UDR's emphasis on more affordable Class B properties in coastal markets has helped it navigate pockets of oversupply better than peers focused on high-end Class A assets.
The company offers what analysts call an attractive income profile. This is supported by more than twenty years of consecutive dividend growth, a current yield near 4.7 percent, and a conservative payout ratio. UDR maintains an investment-grade balance sheet, and management is described as shareholder-aligned.
Rent growth is expected to reaccelerate as supply pressures ease, according to market observers. The opportunity in UDR is reinforced by what appears to be broader mispricing across the REIT sector.
Public REITs are trading at implied cap rates far above private market transactions despite lower leverage, higher quality assets, and stronger occupancy. This gap has drawn increasing interest from private equity firms.
Some analysts suggest public markets are undervaluing real estate rather than signaling fundamental weakness. As interest rates decline and investors rotate back toward income-generating assets, UDR's unusually wide discount and durable fundamentals position it for what could be meaningful upside alongside a growing stream of income.
Previously, David presented a bullish thesis on Simon Property Group, Inc. in April 2025. That thesis highlighted disciplined capital allocation, strong free cash flow generation, and resilient luxury-focused tenants supporting dividend growth. SPG's stock price has appreciated approximately 24.53% since that coverage.
Jussi Askola, CFA, shares a similar thesis but emphasizes valuation dislocation in apartment REITs specifically. According to database records, 30 hedge fund portfolios held UDR at the end of the third quarter, unchanged from the previous quarter.