Investing.com -- UDR, Inc. is transitioning from quarterly to monthly dividend payments, making it the first residential real estate investment trust to offer monthly common stock distributions, Investing.com has learned.

The multifamily REIT is expected to announce the change, which is set to take effect with the dividend payable in July 2026, with its earnings report later today.

The move is designed to better align distributions with the company’s rental cash flow cycle.

CFO Dave Bragg told Investing.com: "The time-tested strength of our business in attracting apartment residents, collecting rents, and managing expenses creates reliable cash flow. Monthly dividends align the cash investors receive with how we generate it."

According to the company, it will declare a monthly dividend of $0.145 per common share for the second quarter of 2026, reflecting an annualized dividend of $1.72 per share and an implied yield of approximately 5% based on the April 9 closing price.

The shift marks the 215th consecutive quarter of dividends paid by UDR on its common stock.

Bragg sees the change as a reflection of both financial strength and corporate culture.

“We are proud to be the first residential REIT to introduce monthly dividends. This milestone reflects: the strength of our financial position, our innovative culture, and our commitment to delivering consistent, tangible value to shareholders,” he stated.

"In its 50+ year history, UDR has returned approximately $9 billion in dividends to its shareholders. And since 2010, UDR has increased its dividend by 142%, underscoring our focus on delivering a growing, and now more frequent, income stream to investors."

Chairman, President and CEO Tom Toomey noted that the move is consistent with UDR’s effort to expand access to capital.

“Our responsiveness to growing interest in monthly cash distributions is emblematic of UDR’s culture of innovation and long-term value creation,” he commented.

Furthermore, Toomey believes the company’s "consistent and predictable business model of collecting rents, managing expenses, and returning excess capital to shareholders lends itself well to a monthly distribution schedule."

Under the new schedule, dividends will carry a record date on or around the fifteenth of each month and will be payable on the last business day of each month.