Table of Contents For the quarterly period ended June 30, 2025 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-10524 UDR, Inc. (Exact name of registrant as specified in its charter) Maryland 54-0857512 (State or other jurisdiction of ( ...

UDR (UDR) Q2 2025 Earnings Call July 31, 2025 12:00 PM ET Company ParticipantsTrent Trujillo - VP - IRThomas Toomey - Chairman & CEOMichael Lacy - SVP & COOJoseph Fisher - President & CIONick Joseph - Head - US Real Estate & Lodging Research TeamJamie Feldman - MD & Head - REIT ResearchSanket Agrawal - Senior Associate - REITs Equity ResearchJana Galan - DirectorRich Hightower - MD - U.S. REIT ResearchAdam Kramer - VP - Equity ResearchJohn Kim - MD - U.S. Real EstateJohn Pawlowski - Managing DirectorAlexand ...

Financial Data and Key Metrics Changes - UDR's second quarter FFOA per share was $0.64, exceeding the high end of previously provided guidance, reflecting a $0.03 or 5% sequential increase driven by higher same store NOI and lower expense growth [23][24] - The full year 2025 FFOA per share guidance range was raised to $2.49 to $2.55, with a midpoint of $2.52 representing a $0.02 per share improvement compared to prior guidance [24] Business Line Data and Key Metrics Changes - Second quarter same store revenue and NOI growth were 2.5% and 2.9% respectively, driven by a 2.8% blended lease rate growth, with renewal rate growth of 5% and new lease rate growth of 30 basis points [11][12] - Year over year same store expense growth was only 1.7%, significantly better than expectations, primarily due to favorable real estate taxes and insurance savings [13][16] Market Data and Key Metrics Changes - Coastal markets exceeded expectations with a second quarter weighted average occupancy of 97.2% and blended lease rate growth of 4% [17] - The West Coast demonstrated strong momentum with a second quarter weighted average occupancy of 96.9% and blended lease rate growth leading all regions at 4.2% [18] - Sunbelt markets lagged behind coastal markets, with a second quarter weighted average occupancy of 96.7% and slightly negative year-to-date same store revenue growth [20] Company Strategy and Development Direction - UDR's strategy focuses on enhancing customer experience, driving innovation, and deploying capital for earnings accretion, supported by a strong investment-grade balance sheet [6][7][9] - The company aims to leverage favorable supply and demand dynamics in the housing market to enhance growth prospects [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects for the apartment industry, citing favorable job and wage growth supporting strong demand for apartments [21] - The company noted that elevated homeownership costs and housing undersupply in the U.S. should bode well for occupancy and pricing going forward [21] Other Important Information - UDR was named a top workplace winner in the real estate industry for the second consecutive year, reflecting its strong corporate culture [8] - The company has a robust pipeline of current and future initiatives expected to drive attractive growth for many years [7] Q&A Session Summary Question: Can you elaborate on the blended lease assumption for the back half of the year? - Management indicated that the guidance raise was due to strong execution and that they expect renewal growth to be in the 4% to 4.5% range for the back half of the year, slightly lower than previous months [30][34] Question: Which market's expectations have changed the most? - The West Coast has performed better than expected, while the Sunbelt has not met initial expectations but is showing signs of improvement [39][40] Question: What opportunities are being seen on the external growth front? - The transaction market remains healthy, with a focus on joint venture acquisitions and selective recapitalizations, while the development side is slower due to high construction costs [46][50] Question: Can you provide insights on the Philadelphia property acquisition? - The acquisition of the Philadelphia property was initially a drag on guidance, but the developer's repayment of interest has offset some of that impact [57][59] Question: What are the trends in the D.C. market? - D.C. remains a strong market with a 4.9% revenue growth during the quarter, maintaining high occupancy and consistent blended lease rates [68][70]

Key Takeaways UDR reported Q2 2025 FFOA of $0.64 per share, topping estimates and rising from $0.62 a year ago.Same-store NOI rose 2.9% on higher blended lease rates and 2.5% revenue growth year over year.UDR raised the full-year 2025 FFOA guidance midpoint to $2.52 from $2.50, reflecting strong H1 performance.UDR Inc. (UDR) reported second-quarter 2025 funds from operations as adjusted (FFOA) per share of 64 cents, outpacing the Zacks Consensus Estimate of 62 cents. This also compares favorably with the pr ...

Exhibit 99.2 Financial Highlights UDR, Inc. As of End of Second Quarter 2025 (Unaudited) (1) | | Actual Results | Actual Results | Guidance for | | | --- | --- | --- | --- | --- | | Dollars in thousands, except per share and unit | 2Q 2025 | YTD 2025 | 3Q 2025 | Full-Year 2025 | | GAAP Metrics | | | | | | Net income/(loss) attributable to UDR, Inc. | $37,673 | $114,393 | -- | -- | | Net income/(loss) attributable to common stockholders | $36,462 | $111,976 | -- | -- | | Income/(loss) per weighted average co ...

Company Overview - UDR Inc. is a premier multifamily real estate investment trust (REIT) set to announce its second-quarter 2025 results on July 30, with expectations of revenue growth but unchanged funds from operations (FFO) per share [1][11] - In the last reported quarter, UDR achieved an FFO as adjusted per share of 61 cents, aligning with the Zacks Consensus Estimate, reflecting year-over-year growth in same-store net operating income (NOI) due to higher occupancy and effective blended lease rates [2][11] Financial Performance - UDR's FFO as adjusted per share has met or surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 0.41% [3] - For the upcoming quarter, UDR is expected to report revenues of $422.24 million, a 2.15% year-over-year increase, while FFO per share is anticipated to remain steady at 62 cents [10][11] Market Conditions - The U.S. apartment market showed resilience in Q2 2025, absorbing over 227,000 units, surpassing previous peak leasing surges despite economic uncertainties [4] - National occupancy rates increased to 95.6%, up 140 basis points year-over-year, while rent growth remained muted at 0.19% in June [5] Supply and Demand Dynamics - Over 535,000 units were completed in the past year, with approximately 108,000 delivered in Q2 2025, indicating a historically elevated supply that the market has managed to absorb [6] - Tech-driven markets like San Francisco, San Jose, Boston, and New York are gaining momentum, while supply-heavy markets such as Austin, Phoenix, and Denver are experiencing significant rent cuts [7] Strategic Positioning - UDR's geographically diversified portfolio of A/B quality properties across urban and suburban markets positions the company to benefit from stable operating cash flows and limit concentration risks [8][9] - The company is leveraging technological initiatives and process enhancements to improve operational resiliency, which is expected to provide a competitive edge [9] Projections and Analyst Sentiment - Same-property NOI is projected to grow by 4.9% in Q2 2025, supported by tech-driven upgrades and operational enhancements [10][11] - The Zacks Consensus Estimate for quarterly FFO as adjusted per share has remained unchanged at 62 cents over the past three months, indicating a lack of analyst confidence in a surprise performance [12][13]

Industry Overview - The U.S. apartment market demonstrated resilience in Q2 2025, absorbing over 227,000 units, surpassing previous peak leasing periods in 2021 and early 2022 despite economic uncertainties [1][11] - National occupancy rates increased to 95.6%, a rise of 140 basis points year-over-year, indicating strong demand for professionally managed apartments [3][11] - Rent growth remained subdued at 0.19% in June, with operators prioritizing occupancy over rent increases, suggesting a "heads-in-beds" strategy to maintain stability amid high new supply [3][4] Supply and Demand Dynamics - Over 535,000 units were completed in the past year, with approximately 108,000 delivered in Q2 2025, reflecting the market's capacity to absorb new supply [4] - Regional markets such as San Francisco, San Jose, Boston, and New York showed momentum, aided by easing supply and return-to-office trends, while Sun Belt markets like Dallas and Atlanta also exhibited recovery [5] Company Performance AvalonBay Communities, Inc. (AVB) - AvalonBay reported a 3% year-over-year increase in same-store residential revenues for the two months ending May 31, 2025, with occupancy at 96.3% [7][11] - The company is expected to announce Q2 2025 earnings on July 30, with a revenue estimate of $761.75 million, indicating a 4.92% year-over-year increase [8] Equity Residential (EQR) - EQR maintained strong occupancy levels and reported same-store revenue growth in Q1 2025, supported by improving demand and limited resident turnover [9][11] - The company is set to release Q2 2025 earnings on August 4, with a revenue estimate of $769.26 million, suggesting a 4.78% year-over-year increase [12] Essex Property Trust, Inc. (ESS) - Essex benefits from substantial exposure to the West Coast market, which has favorable demographics and high median household incomes, supporting its revenue growth [13][14] - The company is expected to announce Q2 2025 earnings on July 29, with a revenue estimate of $469.19 million, indicating a 6.07% year-over-year rise [15] UDR, Inc. (UDR) - UDR's diversified portfolio and strong demand for rental units position it well for growth, with occupancy nearly at 97% [16][17] - The company is set to announce Q2 2025 earnings on July 30, with a revenue estimate of $422.24 million, reflecting a 2.15% year-over-year increase [18]

UDR Performance and Outlook - UDR's key operating metrics, including occupancy of nearly 97%, are trending above the midpoints of the full-year outlook[5] - UDR anticipates blended lease rate growth of 1.9% to 2.7% in the second quarter of 2025, following 0.9% in the first quarter[12] - UDR has paid 210 consecutive dividends and has a 6% CAGR since 2010[26] - UDR's innovation initiatives have driven approximately $40 million of incremental run-rate NOI since 2018, equating to $800 million of value creation[32] Market Trends and Demographics - The median resident Rent-to-Income (R/I) ratio is in the low-20% range, with UDR household income 2.5x higher than the median MSA income[14] - Renting is nearly 60%, or $3,200 per month, less expensive than owning across UDR markets[18] - Multifamily starts have declined materially since mid-2022, indicating slowing future supply[20] - Resident move outs to buy (5%) or rent (1%) a single-family home during 1Q 2025 totaled 6%, or 50% below historic norms[58] Portfolio and Capital Allocation - UDR has a diversified portfolio with 35% of NOI from the West Coast, 25% from the Sunbelt, and 40% from the Northeast/Mid-Atlantic[31] - Only 10% of UDR's consolidated debt outstanding matures through 2026, excluding Commercial Paper, Working Capital Facility, and principal amortization[60] ESG and Sustainability - UDR is committed to invest $35 million into strategic ESG and Climate Technology Funds[64] - Two Green Bond issuances totaling $650 million of proceeds since 2019[64]

Core Viewpoint - UDR, Inc. (NYSE: UDR) has shown moderate performance over the past year, with a 6% gain, attributed to its focus on legacy markets with lower supply, allowing it to navigate sector turbulence effectively [1] Company Performance - UDR's shares have not fully recovered despite the moderate gain, indicating potential challenges ahead [1] Market Context - The apartment REIT sector has faced turbulence, but UDR's strategy of focusing on legacy markets has provided some resilience [1]

Core Viewpoint - UDR shares have declined approximately 3% over the past month, underperforming the S&P 500, raising questions about the potential for continued negative trends or a breakout before the next earnings release [1]. Estimates Movement - Estimates for UDR have trended downward over the past month, indicating a negative sentiment among analysts [2]. VGM Scores - UDR has an average Growth Score of C and a similar score for momentum, while receiving a grade of D for value, placing it in the bottom 40% for this investment strategy. The overall aggregate VGM Score for the stock is D, which is significant for investors not focused on a single strategy [3]. Outlook - The downward trend in estimates has resulted in a net zero magnitude of revisions. UDR currently holds a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4].