Key Takeaways
- • UDR, Inc. (NYSE: UDR) and Apollo (NYSE: APO) announced intent to form a long-term joint venture owning 19 apartment communities totaling 7,059 homes, valued at approximately $2.0 billion.
- • Apollo-managed funds and affiliates will invest $1.34 billion of equity for an approximate two-thirds interest in the joint venture; UDR retains one-third and will consolidate the entity.
- • The transaction is expected to imply a capitalization rate of approximately 6.0% on a portfolio with average revenue per home of $2,058 and an average age of 39 years.
- • UDR will continue to operate the portfolio and earn an asset management fee, and holds an option to repurchase Apollo's interest at an expected 7.00-7.50% fixed return beginning at the fifth anniversary of closing.
- • Management says proceeds will fund higher-growth acquisitions, debt reduction and general corporate purposes, with closing expected October 29, 2026, subject to documentation and customary conditions.
Summary
UDR, Inc., a multifamily real estate investment trust, and Apollo have announced their intention to form a new, long-term joint venture covering a diversified portfolio of apartment communities. According to the joint announcement, the venture will own 19 communities totaling 7,059 apartment homes, valued at approximately $2.0 billion.
Under the terms, Apollo-managed funds and affiliates will invest $1.34 billion of equity capital into the newly established joint venture, acquiring an approximate two-thirds interest. UDR will retain a one-third interest and consolidate the venture, and will continue to operate and manage the portfolio in exchange for an asset management fee. The transaction, once completed, is expected to imply a capitalization rate of approximately 6.0%, for a portfolio with average revenue per home of $2,058 and an average age of 39 years. UDR also retains an option to repurchase Apollo's interest at an expected 7.00-7.50% fixed return for a finite period starting at the fifth anniversary of closing.
UDR Chairman, President and CEO Tom Toomey said the partnership gives the company access to equity capital, one of its strategic priorities, and positions it to pursue opportunities while improving the quality of its wholly-owned portfolio and strengthening its balance sheet. Apollo Partner Jamshid Ehsani described the deal as a cost-efficient capital solution tailored to UDR's needs and cited the role of Apollo's High Grade Capital Solutions business. UDR Chief Financial Officer Dave Bragg said UDR expects the transaction to be accretive to earnings, with proceeds directed toward higher-growth assets, general corporate purposes and debt reduction.
The transaction is expected to close on October 29, 2026, subject to execution of documentation and customary closing conditions. Citigroup Global Markets Inc. and Wells Fargo Securities, LLC acted as structuring agents and financial advisors to UDR, while Scotiabank acted as financial advisor to Apollo. As of September 30, 2026, UDR owned or had an ownership position in 60,617 apartment homes, and Apollo reported approximately $1.05 trillion of assets under management as of June 30, 2026.
Under the terms, Apollo-managed funds and affiliates will invest $1.34 billion of equity capital into the newly established joint venture, acquiring an approximate two-thirds interest. UDR will retain a one-third interest and consolidate the venture, and will continue to operate and manage the portfolio in exchange for an asset management fee. The transaction, once completed, is expected to imply a capitalization rate of approximately 6.0%, for a portfolio with average revenue per home of $2,058 and an average age of 39 years. UDR also retains an option to repurchase Apollo's interest at an expected 7.00-7.50% fixed return for a finite period starting at the fifth anniversary of closing.
UDR Chairman, President and CEO Tom Toomey said the partnership gives the company access to equity capital, one of its strategic priorities, and positions it to pursue opportunities while improving the quality of its wholly-owned portfolio and strengthening its balance sheet. Apollo Partner Jamshid Ehsani described the deal as a cost-efficient capital solution tailored to UDR's needs and cited the role of Apollo's High Grade Capital Solutions business. UDR Chief Financial Officer Dave Bragg said UDR expects the transaction to be accretive to earnings, with proceeds directed toward higher-growth assets, general corporate purposes and debt reduction.
The transaction is expected to close on October 29, 2026, subject to execution of documentation and customary closing conditions. Citigroup Global Markets Inc. and Wells Fargo Securities, LLC acted as structuring agents and financial advisors to UDR, while Scotiabank acted as financial advisor to Apollo. As of September 30, 2026, UDR owned or had an ownership position in 60,617 apartment homes, and Apollo reported approximately $1.05 trillion of assets under management as of June 30, 2026.
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