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Like many of its competitors with a foothold on the coasts and in the Sun Belt, Denver-based UDR’s second quarter was a tale of two markets. The REIT’s coastal markets are outperforming, while its Sun Belt metros are facing heightened competition from new supply.

“However, in July the Sun Belt is weaker than expected given the premature leasing peak in June, while supply continues to deliver,” wrote Alexander Goldfarb, managing director and senior research analyst for investment bank and financial services company Piper Sandler, in a report. 

Still, UDR increased its same-store revenue guidance by 50 basis points at the midpoint to 2.0% and NOI by 75 basis points at the midpoint to 0.75%. It also lowered same-store expenses by 25 basis points at the midpoint to 5.0%.