UDR (UDR) came out with quarterly funds from operations (FFO) of $0.64 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to FFO of $0.62 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of +3.23%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.61 per share when it actually produced FFO of $0.61, delivering no surprise. Over the last four quarters, the company ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Key Financial and Operating Metrics](index=1&type=section&id=Key%20Financial%20and%20Operating%20Metrics) UDR, Inc. achieved solid financial and operational performance in Q2 2025, with diluted FFO per share of $0.61 and FFO as Adjusted of $0.64, alongside updated full-year guidance Q2 2025 and Full-Year 2025 Financial Highlights | Metric | 2Q 2025 Actual Results | YTD 2025 Actual Results | 3Q 2025 Guidance | Full-Year 2025 Guidance | | :----------------------------------- | :---------------- | :---------------- | :---------------- | :---------------- | | **GAAP Metrics** | | | | | | Net Income/(Loss) Attributable to UDR, Inc. (Thousand USD) | $37,673 | $114,393 | -- | -- | | Net Income/(Loss) Attributable to Common Stockholders (Thousand USD) | $36,462 | $111,976 | -- | -- | | Diluted Earnings/(Loss) Per Share ($) | $0.11 | $0.34 | $0.11 to $0.13 | $0.53 to $0.59 | | **Per Share Metrics** | | | | | | Diluted FFO Per Share ($) | $0.61 | $1.19 | $0.61 to $0.63 | $2.42 to $2.48 | | Diluted FFO as Adjusted Per Share ($) | $0.64 | $1.25 | $0.62 to $0.64 | $2.49 to $2.55 | | Dividend Per Share ($) | $0.43 | $0.86 | $0.43 | $1.72 (2) | | **Same-Store Operating Metrics** | | | | | | Revenue Growth/(Decline) (Straight-Line) (%) | 2.5% | 2.5% | -- | 1.75% to 3.25% | | Expense Growth (%) | 1.7% | 2.4% | -- | 2.50% to 3.50% | | NOI Growth/(Decline) (Straight-Line) (%) | 2.9% | 2.6% | -- | 1.50% to 3.00% | | Physical Occupancy (%) | 96.9% | 97.1% | -- | -- | | **Balance Sheet Metrics** | 2Q 2025 | 2Q 2024 | | | | Consolidated Interest Coverage (x) | 5.2x | 5.1x | | | | Consolidated Fixed Charge Coverage (x) | 5.1x | 5.0x | | | | Consolidated Debt as a Percentage of Total Assets (%) | 32.4% | 32.7% | | | | Consolidated Net Debt to EBITDAre Ratio (x) | 5.5x | 5.7x | | | - The company owned **60,535 homes** and **187 communities** at the end of Q2 2025, with same-store communities accounting for **92.6% of total NOI**[2](index=2&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=2&type=section&id=Attachment%201%20Consolidated%20Statements%20of%20Operations) In Q2 2025, UDR, Inc.'s total revenue increased by 2.4% year-over-year to $425.4 million, primarily driven by rental income growth, leading to a 12.7% increase in operating income Consolidated Statements of Operations Key Data (Q2 and H1 2025) | Metric (Thousand USD) | 2Q 2025 | 2Q 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------------- | :------------- | :----------- | :----------- | | Rental Income | $423,001 | $413,328 | $842,837 | $824,997 | | Total Revenue | $425,399 | $415,320 | $847,347 | $828,954 | | Total Operating Expenses | $348,010 | $346,654 | $695,702 | $697,396 | | Operating Income | $77,389 | $68,666 | $199,584 | $148,425 | | Net Income Attributable to UDR, Inc. | $37,673 | $28,883 | $114,393 | $72,032 | | Net Income Attributable to Common Stockholders | $36,462 | $27,673 | $111,976 | $69,591 | | Diluted Earnings Per Share ($) | $0.11 | $0.08 | $0.34 | $0.21 | | Common Stock Dividend Per Share ($) | $0.43 | $0.425 | $0.86 | $0.850 | - In H1 2025, the company's gain on real estate sales was **$47.9 million**, significantly increasing operating income compared to **$16.9 million** in H1 2024[6](index=6&type=chunk) [Funds From Operations (FFO)](index=3&type=section&id=Funds%20From%20Operations%20(FFO)) [Funds From Operations, FFO as Adjusted, and Available for Distribution FFO](index=3&type=section&id=Attachment%202%20Funds%20From%20Operations) In Q2 2025, diluted FFO per share was $0.61, flat year-over-year, while diluted FFO as Adjusted per share was $0.64, primarily impacted by increased legal, software conversion, and disaster-related costs FFO, FFO as Adjusted, and AFFO Key Data (Q2 and H1 2025) | Metric (Thousand USD) | 2Q 2025 | 2Q 2024 | H1 2025 | H1 2024 | | :------------------------------------------------- | :------------- | :------------- | :----------- | :----------- | | FFO Attributable to Common Stockholders and Unit Holders, Diluted | $216,592 | $215,729 | $424,884 | $429,184 | | Diluted FFO Per Share ($) | $0.61 | $0.60 | $1.19 | $1.20 | | Total Impact of Adjustments to FFO | $10,951 | $5,395 | $21,730 | $9,636 | | FFO as Adjusted Attributable to Common Stockholders and Unit Holders, Diluted | $227,543 | $221,124 | $446,614 | $438,820 | | Diluted FFO as Adjusted Per Share ($) | $0.64 | $0.62 | $1.25 | $1.23 | | Recurring Capital Expenditures (Thousand USD) | ($29,201) | ($26,290) | ($47,606) | ($43,598) | | AFFO Attributable to Common Stockholders and Unit Holders, Diluted | $198,342 | $194,834 | $399,008 | $395,222 | | Diluted AFFO Per Share ($) | $0.56 | $0.55 | $1.12 | $1.11 | - In Q2 2025, legal and other costs (**$3.36 million**), software conversion-related costs (**$2.97 million**), and disaster-related expenses (**$3.38 million**) were the primary adjustments to FFO as Adjusted, totaling **$10.95 million**, a significant increase from the prior year[9](index=9&type=chunk) [Balance Sheet & Debt Metrics](index=4&type=section&id=Balance%20Sheet%20%26%20Debt%20Metrics) [Consolidated Balance Sheets](index=4&type=section&id=Attachment%203%20Consolidated%20Balance%20Sheets) As of June 30, 2025, UDR, Inc.'s total assets were $10.65 billion, a slight decrease from $10.90 billion at year-end 2024, with net real estate investments at $9.11 billion Consolidated Balance Sheets Key Data (As of June 30, 2025) | Metric (Thousand USD) | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :------------- | | Net Real Estate Investments | $9,112,819 | $9,157,874 | | Real Estate Under Development | $41,108 | $0 | | Real Estate Held for Disposition | $0 | $154,463 | | Total Net Real Estate | $9,153,927 | $9,312,337 | | Cash and Cash Equivalents | $1,532 | $1,326 | | Net Investments and Advances in Unconsolidated Joint Ventures | $879,781 | $917,483 | | Total Assets | $10,647,085 | $10,897,586 | | Secured Debt | $1,136,046 | $1,139,331 | | Unsecured Debt | $4,639,537 | $4,687,634 | | Total Liabilities | $6,363,954 | $6,436,691 | | Equity Attributable to UDR, Inc. Stockholders | $3,324,816 | $3,443,205 | | Total Equity | $3,325,151 | $3,443,540 | [Common Stock and Equivalents](index=5&type=section&id=Attachment%204(A)%20Selected%20Financial%20Information) As of June 30, 2025, the total number of common shares and equivalents was 357,350,864, with diluted weighted average common shares increasing in both Q2 and H1 2025 Common Stock and Equivalents Outstanding | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------------- | :------------- | :------------- | | Common Stock | 331,291,669 | 330,858,719 | | Operating and DownREIT Partnership Units | 22,864,543 | 22,689,109 | | Series E Cumulative Convertible Preferred Stock (Convertible to Common Stock) | 2,815,608 | 2,815,608 | | Total Common Stock, OP/DownREIT Units, and Common Stock Equivalents | 357,350,864 | 357,407,004 | | **Weighted Average Shares** | **2Q 2025** | **2Q 2024** | | Diluted Weighted Average Common Shares (Consolidated Statements of Operations) | 331,714,889 | 329,571,646 | | **Weighted Average Shares** | **YTD 2025** | **YTD 2024** | | Diluted Weighted Average Common Shares (Consolidated Statements of Operations) | 331,716,503 | 329,333,652 | [Debt Structure and Maturities](index=6&type=section&id=Attachment%204(B)%20Selected%20Financial%20Information) As of June 30, 2025, UDR's total debt was $5.79 billion, with 92.2% at fixed rates, a weighted average interest rate of 3.30%, and a weighted average maturity of 4.7 years Debt Structure Overview (As of June 30, 2025) | Debt Type | Balance (Thousand USD) | Percentage of Total Debt (%) | Weighted Average Interest Rate (%) | Weighted Average Maturity (Years) | | :---------------- | :------------- | :------------- | :------------- | :------------- | | Secured Fixed Rate | $1,112,566 | 19.2% | 3.49% | 3.5 | | Secured Variable Rate | $27,000 | 0.5% | 3.02% | 6.7 | | Unsecured Fixed Rate | $4,225,000 | 73.0% | 3.08% | 5.4 | | Unsecured Variable Rate | $425,215 | 7.3% | 4.93% | 0.7 | | **Total Debt** | **$5,789,781** | **100.0%** | **3.30%** | **4.7** | | **Debt Maturities (Thousand USD)** | | | | | | 2025 | $395,091 | 6.8% | 4.22% | | | 2026 | $386,887 | 6.7% | 3.18% | | | 2027 | $656,939 | 11.3% | 3.66% | | | 2028 | $466,526 | 8.1% | 3.72% | | | 2029 | $615,811 | 10.6% | 3.93% | | | 2030 | $830,597 | 14.4% | 3.34% | | | 2031 | $760,930 | 13.1% | 2.92% | | | 2032 | $427,000 | 7.4% | 2.16% | | | 2033 | $650,000 | 11.2% | 1.99% | | | 2034 | $600,000 | 10.4% | 4.04% | | - As of June 30, 2025, the company's **$1.3 billion** revolving credit facility had no outstanding borrowings, maturing in August 2028 with two six-month extension options[23](index=23&type=chunk) [Coverage Ratios and Debt Covenants](index=7&type=section&id=Attachment%204(C)%20Selected%20Financial%20Information) UDR maintained strong debt coverage ratios and good compliance with debt covenants in Q2 2025, with an adjusted consolidated interest coverage of 5.2x and net debt to EBITDAre ratio of 5.5x Debt Coverage Ratios and Covenant Compliance (Q2 2025) | Metric | 2Q 2025 | | :----------------------------------- | :------------- | | EBITDAre (Thousand USD) | $277,490 | | Adjusted Consolidated EBITDAre (Thousand USD) | $262,761 | | Annualized Adjusted Consolidated EBITDAre (Thousand USD) | $1,051,044 | | Total Interest (Thousand USD) | $50,733 | | Net Debt (Thousand USD) | $5,774,051 | | **Adjusted Consolidated Interest Coverage (x)** | **5.2x** | | **Adjusted Consolidated Fixed Charge Coverage (x)** | **5.1x** | | **Adjusted Consolidated Net Debt to EBITDAre Ratio (x)** | **5.5x** | | **Unsecured Credit Facility Covenants** | **Required** | **Actual** | **Compliant** | | Maximum Leverage Ratio (%) | ≤60.0% | 31.0% | Yes | | Minimum Fixed Charge Coverage (x) | ≥1.5x | 4.8x | Yes | | Maximum Secured Debt Ratio (%) | ≤40.0% | 9.7% | Yes | | Minimum Unencumbered Pool Leverage Ratio (%) | ≥150.0% | 378.8% | Yes | | **Senior Unsecured Notes Covenants** | **Required** | **Actual** | **Compliant** | | Debt as a Percentage of Total Assets (%) | ≤65.0% | 32.5% | Yes | | Consolidated Income Available for Debt Service to Annual Debt Service Ratio (x) | ≥1.5x | 5.7x | Yes | | Secured Debt as a Percentage of Total Assets (%) | ≤40.0% | 6.4% | Yes | | Total Unencumbered Assets to Unsecured Debt Ratio (%) | ≥150.0% | 320.0% | Yes | | **Securities Ratings** | **Debt** | **Outlook** | **Commercial Paper** | | Moody's Investors Service | Baa1 | Stable | P-2 | | S&P Global Ratings | BBB+ | Stable | A-2 | - As of Q2 2025, the company's unencumbered assets totaled **$14.27 billion**, representing **87.5%** of total book value assets, demonstrating strong asset liquidity and financial flexibility[26](index=26&type=chunk) [Operating Performance](index=8&type=section&id=Operating%20Performance) [Overall Operating Information](index=8&type=section&id=Attachment%205%20Operating%20Information) In Q2 2025, UDR's total revenue reached $423.0 million, with total Net Operating Income (NOI) of $290.4 million, reflecting stable operational efficiency and high occupancy levels Overall Operating Information (Q2 2025) | Metric (Thousand USD) | 2Q 2025 | | :----------------------------------- | :------------- | | Total Revenue | $423,001 | | Same-Store Community Revenue | $410,518 | | Total Expenses | $132,621 | | Same-Store Community Expenses | $127,163 | | Total Net Operating Income (NOI) | $290,380 | | Same-Store Community NOI | $283,355 | | Same-Store Community Operating Margin (%) | 69.0% | | Same-Store Community Weighted Average Physical Occupancy (%) | 96.9% | | Total Weighted Average Physical Occupancy (%) | 96.7% | - Occupancy in stabilized but non-mature communities significantly increased from **26.9%** in Q2 2024 to **94.5%** in Q2 2025, indicating strong leasing performance in newly developed or recently stabilized communities[30](index=30&type=chunk) [Same-Store Operating Expense Information](index=9&type=section&id=Attachment%206%20Same-Store%20Operating%20Expense%20Information) In Q2 2025, same-store operating expenses increased by 1.7% year-over-year to $127.2 million, driven by higher personnel, repair, maintenance, and administrative costs, while decreasing 2.1% quarter-over-quarter Same-Store Operating Expense Year-over-Year Change (Q2 2025) | Expense Category | 2Q 2025 (Thousand USD) | 2Q 2024 (Thousand USD) | Percentage Change (%) | | :------------------- | :--------------- | :--------------- | :--------- | | Personnel | $18,902 | $17,685 | 6.9% | | Utilities | $17,867 | $17,024 | 4.9% | | Repair and Maintenance | $26,008 | $24,273 | 7.1% | | Administrative and Marketing | $10,006 | $8,974 | 11.5% | | **Total Controllable Expenses** | **$72,783** | **$67,956** | **7.1%** | | Real Estate Taxes | $49,071 | $50,871 | -3.5% | | Insurance | $5,309 | $6,216 | -14.6% | | **Total Same-Store Operating Expenses** | **$127,163** | **$125,043** | **1.7%** | Same-Store Operating Expense Quarter-over-Quarter Change (Q2 2025 vs. Q1 2025) | Expense Category | 2Q 2025 (Thousand USD) | 1Q 2025 (Thousand USD) | Percentage Change (%) | | :------------------- | :--------------- | :--------------- | :--------- | | Personnel | $18,902 | $19,539 | -3.3% | | Utilities | $17,867 | $19,217 | -7.0% | | Repair and Maintenance | $26,008 | $24,934 | 4.3% | | Administrative and Marketing | $10,006 | $9,698 | 3.2% | | **Total Controllable Expenses** | **$72,783** | **$73,388** | **-0.8%** | | Real Estate Taxes | $49,071 | $51,347 | -4.4% | | Insurance | $5,309 | $5,205 | 2.0% | | **Total Same-Store Operating Expenses** | **$127,163** | **$129,940** | **-2.1%** | [Same-Store Operating Information By Major Market](index=12&type=section&id=Attachment%208(A-G)%20Same-Store%20Operating%20Information%20By%20Major%20Market) In Q2 2025, UDR's same-store operating performance showed regional variations, with overall revenue growth of 2.5% and NOI growth of 2.9%, while new lease growth slowed and renewal growth remained stable [Current Quarter vs. Prior Year Quarter (Physical Occupancy & Revenue per Occupied Home)](index=12&type=section&id=Current%20Quarter%20vs.%20Prior%20Year%20Quarter%20(Physical%20Occupancy%20%26%20Revenue%20per%20Occupied%20Home)) Major Market Same-Store Physical Occupancy and Revenue per Occupied Home Year-over-Year Change (Q2 2025) | Region | 2Q 25 Physical Occupancy (%) | 2Q 24 Physical Occupancy (%) | Change (%) | 2Q 25 Revenue per Occupied Home ($) | 2Q 24 Revenue per Occupied Home ($) | Change (%) | | :---------------- | :--------------- | :--------------- | :--- | :----------------------- | :----------------------- | :--- | | West | 96.9% | 96.5% | 0.4% | $3,133 | $3,052 | 2.7% | | Mid-Atlantic | 97.0% | 97.1% | -0.1% | $2,339 | $2,235 | 4.7% | | Northeast | 97.2% | 97.0% | 0.2% | $3,657 | $3,537 | 3.4% | | Southeast | 96.4% | 96.6% | -0.2% | $1,977 | $1,979 | -0.1% | | Southwest | 97.0% | 96.7% | 0.3% | $1,784 | $1,804 | -1.1% | | Other Markets | 96.4% | 96.7% | -0.3% | $2,621 | $2,579 | 1.6% | | **Total/Weighted Average** | **96.9%** | **96.8%** | **0.1%** | **$2,572** | **$2,512** | **2.4%** | [Current Quarter vs. Prior Year Quarter (Revenues, Expenses, NOI)](index=13&type=section&id=Current%20Quarter%20vs.%20Prior%20Year%20Quarter%20(Revenues,%20Expenses,%20NOI)) Major Market Same-Store Revenue, Expenses, and NOI Year-over-Year Change (Q2 2025) | Region | 2Q 25 Revenue (Thousand USD) | 2Q 24 Revenue (Thousand USD) | Revenue Change (%) | 2Q 25 Expenses (Thousand USD) | 2Q 24 Expenses (Thousand USD) | Expense Change (%) | 2Q 25 NOI (Thousand USD) | 2Q 24 NOI (Thousand USD) | NOI Change (%) | | :---------------- | :--------------- | :--------------- | :------- | :--------------- | :--------------- | :------- | :--------------- | :--------------- | :------ | | West | $119,475 | $115,834 | 3.1% | $30,420 | $30,359 | 0.2% | $89,055 | $85,475 | 4.2% | | Mid-Atlantic | $86,461 | $82,662 | 4.6% | $26,920 | $26,230 | 2.6% | $59,541 | $56,432 | 5.5% | | Northeast | $82,975 | $80,103 | 3.6% | $29,042 | $27,520 | 5.5% | $53,933 | $52,583 | 2.6% | | Southeast | $55,077 | $55,250 | -0.3% | $17,639 | $17,497 | 0.8% | $37,438 | $37,753 | -0.8% | | Southwest | $48,009 | $48,389 | -0.8% | $17,929 | $18,304 | -2.1% | $30,080 | $30,085 | 0.0% | | Other Markets | $18,521 | $18,277 | 1.3% | $5,213 | $5,133 | 1.6% | $13,308 | $13,144 | 1.2% | | **Total** | **$410,518** | **$400,515** | **2.5%** | **$127,163** | **$125,043** | **1.7%** | **$283,355** | **$275,472** | **2.9%** | [Current Quarter vs. Last Quarter (Physical Occupancy & Revenue per Occupied Home)](index=14&type=section&id=Current%20Quarter%20vs.%20Last%20Quarter%20(Physical%20Occupancy%20%26%20Revenue%20per%20Occupied%20Home)) Major Market Same-Store Physical Occupancy and Revenue per Occupied Home Quarter-over-Quarter Change (Q2 2025 vs. Q1 2025) | Region | 2Q 25 Physical Occupancy (%) | 1Q 25 Physical Occupancy (%) | Change (%) | 2Q 25 Revenue per Occupied Home ($) | 1Q 25 Revenue per Occupied Home ($) | Change (%) | | :---------------- | :--------------- | :--------------- | :--- | :----------------------- | :----------------------- | :--- | | West | 96.9% | 97.2% | -0.3% | $3,133 | $3,102 | 1.0% | | Mid-Atlantic | 97.0% | 97.5% | -0.5% | $2,339 | $2,321 | 0.9% | | Northeast | 97.2% | 97.3% | -0.1% | $3,657 | $3,621 | 1.0% | | Southeast | 96.4% | 97.0% | -0.6% | $1,977 | $1,966 | 0.6% | | Southwest | 97.0% | 97.3% | -0.3% | $1,784 | $1,777 | 0.4% | | Other Markets | 96.4% | 96.1% | 0.3% | $2,621 | $2,600 | 0.8% | | **Total/Weighted Average** | **96.9%** | **97.2%** | **-0.3%** | **$2,572** | **$2,550** | **0.9%** | [Current Quarter vs. Last Quarter (Revenues, Expenses, NOI)](index=15&type=section&id=Current%20Quarter%20vs.%20Last%20Quarter%20(Revenues,%20Expenses,%20NOI)) Major Market Same-Store Revenue, Expenses, and NOI Quarter-over-Quarter Change (Q2 2025 vs. Q1 2025) | Region | 2Q 25 Revenue (Thousand USD) | 1Q 25 Revenue (Thousand USD) | Revenue Change (%) | 2Q 25 Expenses (Thousand USD) | 1Q 25 Expenses (Thousand USD) | Expense Change (%) | 2Q 25 NOI (Thousand USD) | 1Q 25 NOI (Thousand USD) | NOI Change (%) | | :---------------- | :--------------- | :--------------- | :------- | :--------------- | :--------------- | :------- | :--------------- | :--------------- | :------ | | West | $119,475 | $118,638 | 0.7% | $30,420 | $31,796 | -4.3% | $89,055 | $86,842 | 2.5% | | Mid-Atlantic | $86,461 | $86,222 | 0.3% | $26,920 | $27,207 | -1.1% | $59,541 | $59,015 | 0.9% | | Northeast | $82,975 | $82,253 | 0.9% | $29,042 | $29,796 | -2.5% | $53,933 | $52,457 | 2.8% | | Southeast | $55,077 | $55,116 | -0.1% | $17,639 | $17,598 | 0.2% | $37,438 | $37,518 | -0.2% | | Southwest | $48,009 | $47,962 | 0.1% | $17,929 | $18,346 | -2.3% | $30,080 | $29,616 | 1.6% | | Other Markets | $18,521 | $18,312 | 1.1% | $5,213 | $5,197 | 0.3% | $13,308 | $13,115 | 1.5% | | **Total** | **$410,518** | **$408,503** | **0.5%** | **$127,163** | **$129,940** | **-2.1%** | **$283,355** | **$278,563** | **1.7%** | [Current Year-to-Date vs. Prior Year-to-Date (Physical Occupancy & Revenue per Occupied Home)](index=16&type=section&id=Current%20Year-to-Date%20vs.%20Prior%20Year-to-Date%20(Physical%20Occupancy%20%26%20Revenue%20per%20Occupied%20Home)) Major Market Same-Store Physical Occupancy and Revenue per Occupied Home Year-to-Date Change (H1 2025) | Region | YTD 25 Physical Occupancy (%) | YTD 24 Physical Occupancy (%) | Change (%) | YTD 25 Revenue per Occupied Home ($) | YTD 24 Revenue per Occupied Home ($) | Change (%) | | :---------------- | :--------------- | :--------------- | :--- | :----------------------- | :----------------------- | :--- | | West | 97.0% | 96.8% | 0.2% | $3,129 | $3,047 | 2.7% | | Mid-Atlantic | 97.3% | 97.2% | 0.1% | $2,321 | $2,220 | 4.6% | | Northeast | 97.3% | 97.2% | 0.1% | $3,638 | $3,516 | 3.5% | | Southeast | 96.7% | 96.7% | 0.0% | $1,973 | $1,970 | 0.1% | | Southwest | 97.2% | 96.6% | 0.6% | $1,781 | $1,799 | -1.0% | | Other Markets | 96.3% | 97.0% | -0.7% | $2,610 | $2,561 | 1.9% | | **Total/Weighted Average** | **97.1%** | **96.9%** | **0.2%** | **$2,561** | **$2,502** | **2.4%** | [Current Year-to-Date vs. Prior Year-to-Date (Revenues, Expenses, NOI)](index=17&type=section&id=Current%20Year-to-Date%20vs.%20Prior%20Year-to-Date%20(Revenues,%20Expenses,%20NOI)) Major Market Same-Store Revenue, Expenses, and NOI Year-to-Date Change (H1 2025) | Region | YTD 25 Revenue (Thousand USD) | YTD 24 Revenue (Thousand USD) | Revenue Change (%) | YTD 25 Expenses (Thousand USD) | YTD 24 Expenses (Thousand USD) | Expense Change (%) | YTD 25 NOI (Thousand USD) | YTD 24 NOI (Thousand USD) | NOI Change (%) | | :---------------- | :--------------- | :--------------- | :------- | :--------------- | :--------------- | :------- | :--------------- | :--------------- | :------ | | West | $235,836 | $228,922 | 3.0% | $61,994 | $59,798 | 3.7% | $173,842 | $169,124 | 2.8% | | Mid-Atlantic | $167,985 | $160,539 | 4.6% | $52,443 | $50,612 | 3.6% | $115,542 | $109,927 | 5.1% | | Northeast | $165,228 | $159,523 | 3.6% | $58,839 | $56,466 | 4.2% | $106,389 | $103,057 | 3.2% | | Southeast | $110,194 | $110,101 | 0.1% | $35,238 | $35,108 | 0.4% | $74,956 | $74,993 | 0.0% | | Southwest | $95,971 | $96,427 | -0.5% | $36,275 | $36,857 | -1.6% | $59,696 | $59,570 | 0.2% | | Other Markets | $36,833 | $36,396 | 1.2% | $10,409 | $10,391 | 0.2% | $26,424 | $26,005 | 1.6% | | **Total** | **$812,047** | **$791,908** | **2.5%** | **$255,198** | **$249,232** | **2.4%** | **$556,849** | **$542,676** | **2.6%** | [Lease Rate Growth and Turnover](index=18&type=section&id=Lease%20Rate%20Growth%20and%20Turnover) Major Market Effective Lease Rate Growth and Annualized Turnover (Q2 2025) | Region | Effective Blended Lease Rate Growth (%) | Effective New Lease Rate Growth (%) | Effective Renewal Lease Rate Growth (%) | Annualized Turnover (2Q 2025) (%) | Annualized Turnover (2Q 2024) (%) | | :---------------- | :--------------- | :--------------- | :--------------- | :-------------------- | :-------------------- | | West | 4.2% | 4.4% | 4.0% | 39.1% | 44.2% | | Mid-Atlantic | 3.6% | 0.2% | 6.6% | 40.9% | 43.9% | | Northeast | 4.3% | 2.3% | 5.7% | 44.1% | 45.2% | | Southeast | 0.0% | -4.1% | 4.5% | 46.8% | 51.1% | | Southwest | -0.5% | -5.3% | 4.4% | 38.7% | 45.8% | | Other Markets | -1.1% | -5.1% | 3.1% | 45.2% | 43.1% | | **Total/Weighted Average** | **2.8%** | **0.3%** | **5.0%** | **41.2%** | **45.4%** | - In Q2 2025, overall effective blended lease rate growth was **2.8%**, with new lease growth at **0.3%** and renewal growth at **5.0%**. Annualized turnover decreased from **45.4%** in the prior year to **41.2%**, indicating improved tenant retention[62](index=62&type=chunk) [Portfolio Overview & Development](index=10&type=section&id=Portfolio%20Overview%20%26%20Development) [Apartment Home Breakout](index=10&type=section&id=Attachment%207(A)%20Apartment%20Home%20Breakout) As of June 30, 2025, UDR's apartment portfolio included 60,235 completed homes and 186 communities, with an additional 300 homes under development, and the Western region holding the largest number of homes Apartment Home Portfolio Overview (As of June 30, 2025) | Region | Same-Store Homes | Non-Mature Consolidated Homes | Total Homes (Excluding JV) | Unconsolidated Joint Venture Homes | Total Homes (Including JV) | Revenue per Occupied Home ($) | | :---------------- | :------- | :----------- | :----------- | :--------------- | :----------- | :--------------- | | West | 13,116 | - | 13,116 | 1,927 | 15,043 | $3,161 | | Mid-Atlantic | 12,697 | - | 12,697 | 360 | 13,057 | $2,474 | | Northeast | 7,784 | 478 | 8,262 | 1,876 | 10,138 | $3,281 | | Southeast | 9,631 | 330 | 9,961 | - | 9,961 | $2,227 | | Southwest | 9,244 | 85 | 9,329 | - | 9,329 | $1,798 | | Other Markets | 2,443 | - | 2,443 | 264 | 2,707 | $2,636 | | **Total** | **54,915** | **893** | **55,808** | **4,427** | **60,235** | **$2,614** | | **Total Communities** | **165** | **3** | **168** | **18** | **186** | | | **Homes Under Development** | | | | | **300** | | | **Total Homes at Quarter-End** | | | | | **60,535** | | [Non-Mature Home Summary and Net Operating Income by Market](index=11&type=section&id=Attachment%207(B)%20Non-Mature%20Home%20Summary%20and%20Net%20Operating%20Income%20by%20Market) UDR's non-mature homes are primarily in Dallas, Tampa, and Philadelphia, with the Western region contributing the largest share of NOI at 32.0% Non-Mature Home Breakout and Expected Same-Store Quarter | Community | Category | Number of Homes | Market | Expected Same-Store Quarter | | :---------------- | :--------------- | :------- | :--------- | :----------- | | Villas at Fiori | Stabilized, Non-Mature | 85 | Dallas, TX | 2Q26 | | 101 N. Meridian | Stabilized, Non-Mature | 330 | Tampa, FL | 3Q26 | | Broadridge | Acquired | 478 | Philadelphia, PA | 4Q27 | | **Total** | | **893** | | | Net Operating Income (NOI) Contribution by Market (As of June 30, 2025) | Region | Same-Store NOI Contribution (%) | Total NOI Contribution (%) | | :---------------- | :---------- | :-------- | | West | 31.4% | 32.0% | | Mid-Atlantic | 21.0% | 19.9% | | Northeast | 19.1% | 20.6% | | Southeast | 13.2% | 12.7% | | Southwest | 10.6% | 10.1% | | Other Markets | 4.7% | 4.7% | | **Total** | **100.0%** | **100.0%** | [Development and Land Summary](index=19&type=section&id=Attachment%209%20Development%20and%20Land%20Summary) UDR has one wholly-owned development project, "3099 Iowa," under construction in Riverside, CA, comprising 300 homes, and holds 7 land parcels with a total real estate cost of $230.69 million Wholly-Owned Development Project Overview (As of June 30, 2025) | Community | Location | Number of Homes | Completion Date | Budgeted Cost (Thousand USD) | Cost per Home (Thousand USD) | Expected Occupancy/Completion | | :---------------- | :--------- | :------- | :------- | :-------------- | :-------------- | :------------ | | 3099 Iowa | Riverside, CA | 300 | - | $133,600 | $445 | 1Q27/2Q27 | | **Total Under Development** | | **300** | | **$133,600** | **$445** | | | **Total Land (7 Parcels)** | Various Locations | | | **$230,690** | | | [Joint Ventures & Investment Programs](index=20&type=section&id=Joint%20Ventures%20%26%20Investment%20Programs) [Unconsolidated Joint Ventures and Partnerships](index=20&type=section&id=Attachment%2010%20Unconsolidated%20Joint%20Ventures%20and%20Partnerships) UDR holds 4,427 homes across 18 communities through joint ventures with MetLife and LaSalle, with total project debt of $890.6 million and UDR's equity investment of $467.7 million Unconsolidated Joint Venture Overview (As of June 30, 2025) | Portfolio Characteristics | UDR Ownership Percentage (%) | Number of Communities | Number of Homes | 2Q 25 Physical Occupancy (%) | 2Q 25 Revenue per Occupied Home ($) | 2Q 25 UDR's Share of NOI (Thousand USD) | | :------------------- | :----------- | :------- | :------- | :--------------- | :--------------- | :----------------------- | | UDR / MetLife | 50% | 13 | 2,837 | 96.8% | $4,281 | $11,002 | | UDR / LaSalle | 51% | 5 | 1,590 | 96.7% | $2,742 | $4,631 | | **Total** | | **18** | **4,427** | **96.7%** | **$3,723** | **$15,633** | | **Balance Sheet Characteristics** | | | | | | | | UDR / MetLife Total Project Debt (Thousand USD) | | | | | | $845,320 | | UDR / LaSalle Total Project Debt (Thousand USD) | | | | | | $45,306 | | UDR / MetLife UDR Equity Investment (Thousand USD) | | | | | | $204,812 | | UDR / LaSalle UDR Equity Investment (Thousand USD) | | | | | | $262,912 | | **Total Project Debt (Thousand USD)** | | | | | | **$890,626** | | **Total UDR Equity Investment (Thousand USD)** | | | | | | **$467,724** | | **Weighted Average Debt Interest Rate (%)** | | | | | | **4.03%** | [Debt and Preferred Equity Program](index=20&type=section&id=Debt%20and%20Preferred%20Equity%20Program) UDR's Debt and Preferred Equity Program has total investment commitments of $430.77 million and an invested balance of $483.6 million, with a weighted average contractual return of 9.7% and an average maturity of 2.3 years Debt and Preferred Equity Program Investment Overview (As of June 30, 2025) | Investment Classification | Investment Commitment (Thousand USD) | Balance (Thousand USD) | Contractual Return Rate (%) | Weighted Average Maturity (Years) | | :--------------------------- | :--------------- | :------------- | :----------- | :--------------- | | Non-Stabilized Communities - Preferred Equity | $96,547 | $115,092 | 10.1% | 1.0 | | Non-Stabilized Communities - Loans | $84,123 | $105,908 | 11.0% | 1.5 | | Stabilized Communities - Preferred Equity | $250,099 | $262,600 | 9.2% | 3.0 | | **Total Debt and Preferred Equity Program** | **$430,769** | **$483,600** | **9.7%** | **2.3** | | **2Q 25 Investment Income (Thousand USD)** | | **$13,393** | | | | **Other Unconsolidated Investments** | | | | | | Total Real Estate Technology and Sustainability Investments (Thousand USD) | $169,000 | $133,021 | | | | 2Q 25 Investment Income/(Loss) (Thousand USD) | | ($59) | | | - In May 2025, UDR acquired the developer's equity in its Philadelphia apartment community joint venture, resulting in the JV becoming a wholly-owned subsidiary and consolidating its financials, recognizing **$3.9 million** in unaccrued interest and **$0.3 million** in consolidation gain[71](index=71&type=chunk) - This quarter, UDR recovered approximately **$54.8 million** of its preferred equity investment in a stabilized New York City community, including accrued returns[72](index=72&type=chunk) [Acquisitions, Dispositions, and Debt and Preferred Equity Program Summary](index=21&type=section&id=Attachment%2011%20Acquisitions,%20Dispositions,%20and%20Debt%20and%20Preferred%20Equity%20Program%20Summary) In H1 2025, UDR completed two wholly-owned property dispositions totaling $211.5 million, acquired the Broadridge community for $182.5 million, and managed new investments and redemptions within its Debt and Preferred Equity Program Wholly-Owned Dispositions Overview (H1 2025) | Sale Date | Community | Location | Price (Thousand USD) | Number of Homes | Price per Home (Thousand USD) | | :--------- | :----------- | :----------- | :------------ | :------- | :-------------- | | January 2025 | One William | Englewood, NJ | $84,000 | 185 | $454 | | January 2025 | Leonard Pointe | Brooklyn, NY | $127,500 | 188 | $678 | | **Total** | | | **$211,500** | **373** | **$567** | Wholly-Owned Acquisition Overview (May 2025) | Acquisition Date | Community | Location | Price (Thousand USD) | Number of Homes | Price per Home (Thousand USD) | | :--------- | :----------- | :----------- | :------------ | :------- | :-------------- | | May 2025 | Broadridge | Philadelphia, PA | $182,500 | 478 | $382 | | **Total** | | | **$182,500** | **478** | **$382** | Debt and Preferred Equity Program Investments and Redemptions (Q2 2025) | Investment/Redemption Date | Investment Classification | Market | UDR Investment Commitment (Thousand USD) | Proceeds Received Upon Redemption (Thousand USD) | Contractual Return Rate (%) | | :-------------- | :----------- | :----------- | :------------------- | :-------------------- | :----------- | | April 2025 | Stabilized Community | San Francisco, CA | $13,000 | | 12.0% | | June 2025 | Stabilized Community | New York, NY | $40,000 | $54,760 | 11.0% | [Capital Expenditures](index=22&type=section&id=Capital%20Expenditures) [Capital Expenditure and Repair and Maintenance Summary](index=22&type=section&id=Attachment%2012%20Capital%20Expenditure%20and%20Repair%20and%20Maintenance%20Summary) In Q2 2025, UDR's recurring capital expenditures totaled $27.76 million ($502 per home), with NOI-enhancing capital expenditures at $21.15 million ($382 per home), alongside $26.25 million in repair and maintenance expenses Consolidated Home Capital Expenditure and Repair and Maintenance Summary (Q2 and H1 2025) | Metric (Thousand USD) | 2Q 2025 | Cost per Home ($) | H1 2025 | Cost per Home ($) | | :----------------------------------- | :------------- | :----------- | :----------- | :----------- | | Average Number of Homes | 55,325 | | 55,324 | | | Total Recurring Capital Expenditures | $27,757 | $502 | $45,040 | $814 | | NOI Enhancing Capital Expenditures | $21,148 | $382 | $35,203 | $636 | | **Total Recurring and NOI Enhancing Capital Expenditures** | **$48,905** | **$884** | **$80,243** | **$1,450** | | **Total Repair and Maintenance (Expensed)** | **$26,254** | **$475** | **$51,258** | **$927** | [Guidance](index=23&type=section&id=Guidance) [3Q 2025 and Full-Year 2025 Guidance](index=23&type=section&id=Attachment%2013%203Q%202025%20and%20Full-Year%202025%20Guidance) UDR updated its full-year 2025 guidance, raising diluted FFO as Adjusted per share to $2.49-$2.55 and increasing same-store revenue and NOI growth projections 3Q 2025 and Full-Year 2025 Net Income, FFO, and FFO as Adjusted Per Share Guidance | Metric | 3Q 2025 | Full-Year 2025 | Change from Prior Guidance Midpoint ($) | | :------------------------------------------------- | :-------------- | :-------------- | :----------------- | | Diluted Net Income/(Loss) Per Share ($) | $0.11 to $0.13 | $0.53 to $0.59 | ($0.05) | | Diluted FFO Per Share ($) | $0.61 to $0.63 | $2.42 to $2.48 | ($0.05) | | Diluted FFO as Adjusted Per Share ($) | $0.62 to $0.64 | $2.49 to $2.55 | $0.02 | | Diluted Weighted Average Common Stock, OP/DownREIT Units, and Common Stock Equivalents (Millions) | 357.6 | 358.0 | - | | Annualized Dividend Per Share ($) | | $1.72 | - | Full-Year 2025 Same-Store Performance Guidance (Straight-Line) | Metric | Full-Year 2025 | Change from Prior Guidance Midpoint (%) | | :------------------- | :-------------- | :----------------- | | Revenue Growth/(Decline) (%) | 1.75% to 3.25% | 0.25% | | Expense Growth (%) | 2.50% to 3.50% | (0.50%) | | NOI Growth/(Decline) (%) | 1.50% to 3.00% | 0.50% | Full-Year 2025 Investment and Corporate Expense Guidance (Million USD) | Metric | Full-Year 2025 | Change from Prior Guidance Midpoint (Million USD) | | :------------------------------------------------- | :-------------- | :----------------- | | Dispositions - Consolidated and Joint Ventures (Pro Rata) | $215 to $415 | - | | Acquisitions - Consolidated and Joint Ventures (Pro Rata) | $0 to $200 | - | | Capital Expenditures - Recurring, NOI Enhancing, and Redevelopment | $220 to $260 | - | | Consolidated Interest Expense, Net of Capitalized Interest and FFO as Adjusted Adjustments | $190 to $195 | $2.5 | | General and Administrative Expenses | $72 to $80 | $1 | [Definitions and Reconciliations](index=24&type=section&id=Definitions%20and%20Reconciliations) [Key Definitions](index=24&type=section&id=Attachment%2014(A-C)%20Definitions%20and%20Reconciliations) This section defines key financial and operational terms like FFO, FFO as Adjusted, AFFO, EBITDAre, same-store communities, NOI, capital expenditure types, and coverage ratios, ensuring consistent understanding of the company's performance reporting - FFO (Funds from Operations) is calculated according to Nareit standards to evaluate the operating performance of Real Estate Investment Trusts (REITs) and does not represent cash flow under GAAP[109](index=109&type=chunk)[110](index=110&type=chunk) - FFO as Adjusted provides a more consistent comparison of operating performance by excluding non-comparable items such as acquisition costs, debt extinguishment costs/gains, and disaster-related expenses[107](index=107&type=chunk)[108](index=108&type=chunk) - NOI (Net Operating Income) is defined as rental income less direct property operating expenses, serving as a useful metric for measuring the ongoing operating performance of communities by excluding company-level expense allocations, general and administrative costs, capital structure, and depreciation and amortization[112](index=112&type=chunk)[113](index=113&type=chunk) [FFO and FFO as Adjusted Guidance Reconciliation](index=27&type=section&id=Attachment%2014(D)%20Definitions%20and%20Reconciliations) This section reconciles GAAP net income per share to projected FFO and FFO as Adjusted per share for full-year 2025 and Q3, detailing the impact of various adjustments Reconciliation from GAAP Net Income to FFO and FFO as Adjusted Per Share (Full-Year 2025) | Metric | Low ($) | High ($) | | :------------------------------------------------- | :--- | :--- | | Projected Diluted Net Income Per Share | $0.53 | $0.59 | | GAAP Share Conversion | (0.02) | (0.02) | | Net Gain on Disposition of Depreciable Real Estate | (0.13) | (0.13) | | Depreciation | 2.00 | 2.00 | | Non-Controlling Interests | 0.03 | 0.03 | | Preferred Stock Dividends | 0.01 | 0.01 | | **Projected Diluted FFO Per Share** | **$2.42** | **$2.48** | | Legal and Other Costs | 0.02 | 0.02 | | Software Conversion-Related Costs | 0.03 | 0.03 | | Disaster-Related Expenses/(Recoveries) | 0.02 | 0.02 | | Real Estate Technology Investment Realized/Unrealized Gains/(Losses) | - | - | | **Projected Diluted FFO as Adjusted Per Share** | **$2.49** | **$2.55** | Reconciliation from GAAP Net Income to FFO and FFO as Adjusted Per Share (3Q 2025) | Metric | Low ($) | High ($) | | :------------------------------------------------- | :--- | :--- | | Projected Diluted Net Income Per Share | $0.11 | $0.13 | | GAAP Share Conversion | (0.01) | (0.01) | | Depreciation | 0.50 | 0.50 | | Non-Controlling Interests | 0.01 | 0.01 | | Preferred Stock Dividends | - | - | | **Projected Diluted FFO Per Share** | **$0.61** | **$0.63** | | Software Conversion-Related Costs | 0.01 | 0.01 | | **Projected Diluted FFO as Adjusted Per Share** | **$0.62** | **$0.64** | [Forward-Looking Statements](index=28&type=section&id=Forward-Looking%20Statements) [Forward-Looking Statements Disclaimer](index=28&type=section&id=Forward-Looking%20Statements%20Disclaimer) This report contains "forward-looking statements" involving estimates, forecasts, targets, projections, and assumptions, subject to risks and uncertainties that could cause actual results to differ materially, and the company disclaims any obligation to update these statements - Forward-looking statements inherently involve estimates, forecasts, targets, projections, and assumptions, subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed[129](index=129&type=chunk) - Risk factors include, but are not limited to: general market and economic conditions, adverse changes in apartment market and economic conditions, the impact of inflation/deflation on rental rates and property operating expenses, capital availability and capital market stability, tariff impacts, geopolitical tensions, changes in immigration policies, high interest rates, competition and competitive pricing, acquisitions, developments, and redevelopments failing to achieve anticipated results, delays in completing developments, redevelopments, and lease-ups on schedule or at anticipated rents and occupancy, changes in employment growth, housing affordability, and the supply/demand ratio for multifamily housing[129](index=129&type=chunk) - The company expressly disclaims any obligation to update or revise any forward-looking statements, except as required by U.S. securities laws[129](index=129&type=chunk)

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].

Investment Ratings - Cold Storage REITs: Lineage Inc. (LINE, Buy) [5] - Industrial REITs: Prologis Inc. (PLD, Neutral) [16] - Industrial REITs: Terreno Realty Corp (TRNO, Buy) [31] - Self Storage REITs: Extra Space Storage Inc. (EXR, Buy) [44] - Self Storage REITs: Public Storage Inc. (PSA, Buy) [54] - Retail REITs: Brixmor Property Group (BRX, Buy) [63] - Retail REITs: Phillips Edison & Co (PECO, Buy) [74] Core Insights - The report highlights a mixed outlook across various REIT sectors, with some companies like LINE, TRNO, EXR, PSA, BRX, and PECO receiving "Buy" ratings, while PLD is rated "Neutral" [5][16][31][44][54][63][74] - Economic occupancy for LINE decreased by 290 basis points sequentially and 260 basis points year-over-year in Q1 2025, indicating potential challenges in maintaining occupancy levels [5] - Prologis Inc. is focusing on the implications of tariff policies on global supply chains, which may disrupt tenant activities and leasing demand [16] - Terreno Realty Corp is observing a shift in leasing dynamics post-tariff announcements, with domestic customers becoming more active compared to those operating across borders [31] - Extra Space Storage Inc. is prioritizing occupancy over rent in the current environment, reflecting a strategic shift in response to market conditions [44] - Public Storage Inc. is experiencing a significant impact from regional events, such as fires in Los Angeles, which account for 15% of its NOI [54] - Brixmor Property Group is seeing a steady increase in billed occupancy, which has risen by an average of 100 basis points over the last four years [63] Summary by Sections Cold Storage REITs - Lineage Inc. (LINE) reported a decline in economic occupancy and revenue per occupied pallet, with management expressing confidence in maintaining AFFO/share and EBITDA guidance for 2025 [5][6][7] Industrial REITs - Prologis Inc. (PLD) is navigating the complexities of global supply chains and tariff impacts, with expectations for occupancy and rent growth improvements in the second half of 2025 [16][20] - Terreno Realty Corp (TRNO) is adapting to changes in leasing activity and tenant retention amid tariff uncertainties, focusing on domestic customer engagement [31][36] Self Storage REITs - Extra Space Storage Inc. (EXR) is adjusting its strategy to prioritize occupancy over rent, with a focus on counter-cyclical demand drivers [44][46] - Public Storage Inc. (PSA) is managing its rent versus occupancy strategy while facing challenges from regional disruptions [54][56] Retail REITs - Brixmor Property Group (BRX) is experiencing a positive trend in occupancy and leasing spreads, with a focus on tenant credit and market dynamics [63][66] - Phillips Edison & Co (PECO) is observing volatility in the market due to tariff updates, impacting leasing velocity and transaction activity [74]

Real Estate Portfolio - As of March 31, 2025, the consolidated real estate portfolio included 167 communities totaling 55,323 apartment homes, with an additional 10,860 homes through joint ventures[177]. - The Same-Store Communities segment had a total of 163 communities with 54,435 apartment homes, achieving a physical occupancy rate of 97.2%[179]. - The Same-Store Community apartment home population for the three months ended March 31, 2025, was 54,435, reflecting stabilized occupancy[182]. - The total carrying value of the Same-Store Communities was approximately $15.27 billion, with a weighted average monthly income per occupied home of $2,550[179]. Financial Performance - For the three months ended March 31, 2025, total revenue was $152.2 million, an increase of 2.3% from $148.5 million in the same period of 2024[199]. - Net income for the three months ended March 31, 2025, was $24.5 million, compared to $18.6 million for the same period in 2024, reflecting a year-over-year increase of 31.5%[199]. - Net income attributable to common stockholders for Q1 2025 was $75.5 million ($0.23 per diluted share), up from $41.9 million ($0.13 per diluted share) in Q1 2024, reflecting a significant increase[234]. - Total property NOI for Q1 2025 was $285.1 million, a 2.0% increase from $279.4 million in Q1 2024, driven by higher rental income and occupancy rates[239]. - Same-Store rental income increased by 2.6% to $405.0 million in Q1 2025, while Same-Store NOI rose by 2.8% to $276.4 million[244]. Capital Expenditures and Investments - Total capital expenditures for the three months ended March 31, 2025, were $55.4 million, or $1,009 per stabilized home, compared to $54.3 million, or $981 per stabilized home, in the same period of 2024[209]. - Major renovations increased by 25.3%, or $4.8 million, while NOI enhancing improvements decreased by 21.0%, or $3.7 million, for the three months ended March 31, 2025[210]. - The company made investments totaling $4.2 million in unconsolidated joint ventures and partnerships, with a proportionate share of net income of $5.8 million for the three months ended March 31, 2025[218]. Debt and Liquidity - The Company has a $1.3 billion unsecured revolving credit facility and a $350 million unsecured term loan, with the ability to increase total commitments to $2.5 billion[189]. - As of March 31, 2025, the Company issued $250 million of commercial paper at a weighted average annualized rate of 4.67%, leaving $450 million of unused capacity[190]. - The Company had $1.3 billion of unused capacity under the Revolving Credit Facility as of March 31, 2025, with no outstanding borrowings[223]. - The Company’s working capital credit facility had $34.6 million of outstanding borrowings, leaving $40.4 million of unused capacity as of March 31, 2025[225]. - The company has approximately $176.8 million of secured debt and $250.0 million of unsecured debt maturing during the remainder of 2025[193]. Sales and Gains - The company sold two operating communities in January 2025 for gross proceeds of $211.5 million, resulting in gains of approximately $47.9 million[207]. - Gains on the sale of real estate amounted to $47.9 million in Q1 2025, compared to $16.9 million in Q1 2024, reflecting successful asset disposals[235]. - For the three months ended March 31, 2025, the Company recognized a gain on the sale of real estate owned of $47.9 million, compared to $16.9 million for the same period in 2024, reflecting an increase of approximately 183%[249]. Operating Efficiency - The operating margin for Same-Store Communities was 68.3% in Q1 2025, compared to 68.2% in Q1 2024, indicating stable operational efficiency[245]. - Interest expense for Q1 2025 was $47.7 million, slightly down from $48.1 million in Q1 2024, despite an increase in variable rate debt exposure[242]. - The Company had $486.6 million in variable rate debt as of March 31, 2025, with a potential interest expense increase of $1.2 million if rates rise by 100 basis points[229]. Other Financial Metrics - Funds from Operations (FFO) attributable to common stockholders and unitholders was $207.1 million in Q1 2025, slightly down from $212.2 million in Q1 2024, a decrease of approximately 2%[261]. - Adjusted Funds from Operations (AFFO) attributable to common stockholders and unitholders was $200.7 million in Q1 2025, compared to $200.4 million in Q1 2024, showing a marginal increase of about 0.15%[261]. - The Company reported a diluted income per weighted average common share of $0.23 for Q1 2025, up from $0.13 in Q1 2024, an increase of approximately 77%[261]. - The weighted average number of common shares outstanding increased to 353,527 in Q1 2025 from 353,241 in Q1 2024, an increase of about 0.8%[261]. Market Conditions and Risks - The Company noted that inflation impacts operations primarily through wage pressures and increased utility costs, but did not materially affect results for Q1 2025[253]. - The Company is exposed to interest rate changes associated with its commercial paper program and unsecured credit facility, with no material change in market risk reported as of March 31, 2025[262][263]. - The Company has a shelf registration statement filed with the SEC for future financing activities, dependent on market conditions[186].

Financial Data and Key Metrics Changes - The first quarter same store revenue and NOI growth were 2.6% and 2.8% respectively, exceeding expectations due to lower resident turnover and higher occupancy [14][15] - FFO as adjusted per share for the first quarter was $0.61, achieving the midpoint of guidance, with a sequential decline attributed to seasonal trends [24][25] - The company reaffirmed its full year 2025 guidance, indicating confidence in continued performance despite macroeconomic uncertainties [7][12] Business Line Data and Key Metrics Changes - Same store revenue growth was driven by a 0.9% blended lease rate growth, with renewal rate growth at 4.5% and new lease rate growth at approximately -3% [14][15] - Other income growth from rentable items was 10%, supported by continued innovation and value-added services [15][18] - Year-over-year same store expense growth was only 2.3%, better than expectations, driven by favorable real estate taxes and insurance savings [15][16] Market Data and Key Metrics Changes - Demand for apartments remains strong, with nearly 140,000 apartment homes absorbed in the first quarter, a three-decade high [10][11] - The East Coast was the strongest region, with a first quarter weighted average occupancy of 97.5% and same store revenue growth of approximately 4.5% [19][20] - The West Coast showed better-than-expected performance, with blended lease rate growth leading all regions at nearly 3% [20][21] Company Strategy and Development Direction - The company focuses on three growth drivers: innovation, customer feedback, and capital deployment strategies [7][8] - The company aims to leverage its investment-grade balance sheet to fund capital needs and take advantage of growth opportunities [10][26] - The strategy includes enhancing customer experience through initiatives like Wi-Fi rollout and package lockers, which contribute to revenue growth [9][18] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term growth prospects for the multifamily industry despite macroeconomic volatility [12] - The company expects continued strong demand and a favorable supply-demand dynamic due to a slowing pace of new supply [11][12] - Management highlighted the importance of maintaining a focus on total revenue performance rather than just turnover metrics [93][96] Other Important Information - The company recognized Jim Klingbill for his contributions as he decided not to seek reelection to the board [12][13] - The company has a proactive approach to managing its balance sheet, resulting in the best three-year liquidity outlook in the sector [26] Q&A Session Questions and Answers Question: Confidence in rent trends for the second half - Management noted that supply is down about 20% year over year, which supports confidence in rent trends picking up in the second half [29][30] Question: Senior loan acquisition impact - The acquisition of the senior loan is expected to allow for consolidation of the asset and operational control, with an initial cap rate projected around 4% [35][36] Question: Impact of bulk Wi-Fi rollout on renewal rents - Management indicated that the bulk Wi-Fi rollout has not negatively impacted renewal rents and is expected to enhance customer experience [40][41] Question: Development yields and joint venture activity - The company is underwriting significantly more deals with its joint venture partner, indicating a shift towards a more opportunistic approach [62][63] Question: Expectations for Dallas and Austin markets - Management expects Dallas and Austin to lag behind other markets, with positive momentum anticipated later in the year [73][75]