UDR (UDR) has put fresh numbers on the table for FY 2025, with fourth quarter revenue at US$438.0 million and basic EPS of US$0.67, while funds from operations sat at US$219.3 million, or US$0.62 per share. The company has seen quarterly revenue move between US$427.8 million and US$445.9 million over the last year, with EPS ranging from US$0.11 to US$0.67, giving investors a clear read on how reported earnings and cash generation from operations are tracking through the period. Overall, margins look firmer on a trailing 12 month view, which supports a closer look at the quality and sustainability of these results.

See our full analysis for UDR.

With the headline figures in place, the next step is to line these results up against the prevailing narratives around UDR so you can see where the story holds and where the numbers tell a different tale.

FFO Holds Steady While One Off Gain Lifts EPS

• Funds From Operations for Q4 2025 was US$219.3 million, with FFO per share at US$0.62, very similar to the prior two quarters where FFO was around US$215 million to US$220 million and FFO per share was US$0.59 to US$0.62.
• Consensus narrative highlights that strong rental demand and targeted markets are supporting revenue, and the numbers partly back that. However, the large US$231.2 million one off gain in the last 12 months means the higher net income of US$372.9 million and basic EPS of US$1.13 on a trailing basis are not purely from recurring cash flow.
  • Revenue on a trailing 12 month basis sits at about US$1.7b, while trailing FFO of US$861.6 million and net margin of 21.4% reflect healthier profitability than the prior 5% margin. The one time gain, however, clouds how much of that improvement is repeatable.
  • The same pattern appears in the quarterly data, where Q4 2025 net income of US$221.7 million and basic EPS of US$0.67 stand out compared to Q3 2025 net income of US$39.2 million and EPS of US$0.12. Critics may see the Q3 figures as more representative of underlying earnings without the benefit of a very large special item.

If you want to see how supporters think recurring cash flows play out against that one off gain, check out the full bullish case for UDR in 🐂 UDR Bull Case

Share Price, P/E And DCF Paint A Mixed Picture

• UDR trades at US$39.38, while the P/E of 34.7x is higher than the residential REIT industry at 26.4x and peers at 28.5x, even though the stock is described as about 33% below a DCF fair value of US$58.78.
• Bears focus on this tension, arguing that a relatively rich 34.7x P/E and weak interest coverage sit awkwardly against forecasts for earnings to decline about 18.1% per year over the next three years, even though the DCF fair value suggests upside from the current share price.
  • The trailing net margin of 21.4% and very large reported earnings growth over the last year, helped by the US$231.2 million one off, explain why the P/E looks high. The risk section makes it clear that interest payments are not well covered by earnings, which matters if profitability drifts back toward underlying levels.
  • At the same time, the dividend yield of 4.37% is described as high and reliable, so anyone relying on the income stream needs to balance that income figure against the combination of a premium P/E to peers and the expectation of multi year earnings declines.

If you are weighing that richer P/E and weaker interest coverage against the more cautious view on future earnings, it is worth reading how skeptics frame the risks in 🐻 UDR Bear Case

Dividend Dependability Versus Earnings Decline Risk

• The dividend yield is 4.37% and described as high and reliable, while analysts in the dataset expect earnings to decline about 18.1% per year for the next three years even though trailing 12 month earnings grew very sharply from a year ago.
• Consensus narrative talks about long term earnings potential supported by portfolio repositioning and efficiency gains. The risk data, however, points to a different tension where weak interest coverage and the expected multi year earnings decline raise questions about how comfortably a 4.37% yield and current payout can sit alongside the US$372.9 million of trailing net income that includes the US$231.2 million one off gain.
  • On the operating side, trailing revenue of about US$1.7b and FFO of US$861.6 million suggest the core rental platform is producing sizeable cash flows, which supports the case for continued distributions. Those same figures, however, need to carry both debt service and any reinvestment needs if earnings do trend down from here.
  • Because revenue is only forecast to grow around

    Next Steps

    To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for UDR on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

    See the numbers differently? If this data points you in another direction, shape your own view in a few minutes and Do it your way

    A great starting point for your UDR research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

    See What Else Is Out There

    UDR combines a premium 34.7x P/E and weak interest coverage with a large one off gain, which raises questions about how resilient its earnings really are.

    If that mix of fragile interest cover and special item driven earnings makes you uneasy, shift your focus toward companies screened for stronger cushions in 83 resilient stocks with low risk scores.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.