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]

Financial Data and Key Metrics Changes - The first quarter FFO as adjusted per share was $0.61, achieving the midpoint of previously provided guidance, supported by same store growth that exceeded expectations [23] - Year over year same store revenue and NOI growth were 2.6% and 2.8% respectively, driven by a 0.9% blended lease rate growth [13][14] - Year over year same store expense growth was only 2.3%, better than expectations, driven by favorable real estate taxes and insurance savings [14] Business Line Data and Key Metrics Changes - Same store revenue growth was approximately 4.5% for the East Coast, slightly above the high end of full year expectations for the region [19] - The West Coast saw blended lease rate growth of nearly 3% and year over year same store revenue growth close to 3% [20] - The Sunbelt markets experienced slightly positive year over year same store revenue growth, with blended lease rate growth at negative 2.5% [21] Market Data and Key Metrics Changes - Demand for housing remains strong, with nearly 140,000 apartment homes absorbed in the first quarter, a three-decade high [9] - The pace of new supply is slowing, with 2024 multifamily completions marking a fifty-year high, but starts continue to decline [10] - Renting an apartment is on average 60% more affordable than owning a single-family home in the markets where the company operates [10] Company Strategy and Development Direction - The company remains strategically focused on three drivers of growth: innovation, customer feedback, and capital deployment [5][6] - The company is executing various forms of capital deployment to drive future accretion, including development and joint venture acquisitions [7][8] - The investment-grade balance sheet with substantial liquidity positions the company well to take advantage of growth opportunities [8] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term growth prospects for the multifamily industry despite macroeconomic uncertainties [11] - The company expects to reassess full year guidance as it progresses through peak leasing season [5] - Management highlighted the importance of maintaining a dynamic and innovative culture to create value for residents and stakeholders [11] Other Important Information - The company recognized Jim Klingbill for his contributions as he decided not to seek reelection to the board [12] - 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 Summary 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 [29] Question: Senior loan acquisition impact - The acquisition of the senior loan is expected to stabilize and improve the asset's performance over time [36] Question: Impact of bulk WiFi rollout on renewal rents - Management indicated that the rollout of bulk WiFi has not negatively impacted renewal rents and has been well received [42] 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 [76] Question: Guidance adjustments - Management stated that it has a precedent of not raising guidance after the first quarter, focusing instead on how the year finishes [102]

Core Viewpoint - UDR Inc. reported first-quarter 2025 funds from operations as adjusted (FFOA) per share of 61 cents, aligning with the Zacks Consensus Estimate, with year-over-year performance remaining unchanged [1] Financial Performance - Quarterly revenues from rental income were $419.8 million, slightly missing the Zacks Consensus Estimate of $421.3 million, while total revenues reached $421.9 million, reflecting a 2% year-over-year increase for both rental income and total revenues [2] - Same-store revenues increased by 2.6% year over year, with same-store expenses rising by 2.3%, leading to a 2.8% improvement in same-store net operating income (NOI) [3] - The effective blended lease rate for same-store properties grew by 0.9% during the quarter, with a weighted average same-store physical occupancy of 97.2%, up 40 basis points sequentially and 20 basis points year over year [3] Operating Expenses - Other operating expenses rose by 18% year over year to $8.1 million, while general and administrative expenses increased by nearly 9.5% to $19.5 million [4] Balance Sheet Position - As of March 31, 2025, UDR had $1.1 billion in liquidity, with total debt amounting to $5.8 billion, of which only $533.5 million (9.7% of total consolidated debt) is maturing through 2026 [5] - The net debt-to-EBITDA ratio increased to 5.7X in the first quarter from 5.5X at the end of the previous quarter [5] Portfolio Activity - UDR commenced construction on a 300-unit apartment community named 3099 Iowa in Riverside, CA, with an estimated development cost of $133.6 million [7] - The company disposed of two properties: Leonard Pointe in New York for $127.5 million and One William in New Jersey for $84 million [7] 2025 Guidance - UDR provided guidance for the second quarter, expecting FFOA per share in the range of 61-63 cents, with the full-year 2025 FFOA per share projected between $2.45 and $2.55, centered at $2.50 [8] - For the full year, the company anticipates same-store revenue growth rates between 1.25% and 3.25%, same-store expenses between 2.75% and 4.25%, and same-store NOI growth between 0.50% and 3.00% [9] Industry Performance - Other residential REITs, such as Essex Property Trust Inc. and Equity Residential, reported positive first-quarter results, with core FFO per share of $3.97 and normalized FFO per share of 95 cents, respectively, both exceeding their Zacks Consensus Estimates [11][12]

EARNINGS RELEASE & SUPPLEMENTAL 2025 FINANCIAL INFORMATION Q1 | 2025 DEVELOPMENT 3099 Iowa | Riverside, CA Joe Fisher, President, CFO, & CIO - 720.283.6139 Trent Trujillo, Investor Relations - 720.283.6135 UDR, INC. | UDR.COM UDR First Quarter 2025 Earnings Supplement | 1Q 2025 Earnings Press Release Pages 1-6 | | | --- | --- | | Company | Financial Highlights | | Consolidated Statements of Operations Attachment 1 | Funds From Operations (FFO), FFO as Adjusted, AFFO Attachment 2 | | Consolidated Balance She ...

Core Insights - UDR reported revenue of $419.84 million for the quarter ended March 2025, reflecting a year-over-year increase of 2% [1] - The earnings per share (EPS) for the same period was $0.61, a significant increase from $0.13 a year ago [1] - The reported revenue fell slightly short of the Zacks Consensus Estimate of $421.31 million, resulting in a surprise of -0.35% [1] - The company did not deliver an EPS surprise, as the consensus EPS estimate was also $0.61 [1] Performance Metrics - UDR's average physical occupancy was reported at 97.2%, exceeding the estimated 96.9% by four analysts [4] - Rental income revenue was $419.84 million, slightly below the seven-analyst average estimate of $421.08 million, but still showing a year-over-year change of +2% [4] - Revenue from joint venture management and other fees was $2.11 million, compared to the $2.14 million average estimate, representing a year-over-year change of +7.5% [4] - Net earnings per share (diluted) were reported at $0.23, surpassing the seven-analyst average estimate of $0.15 [4] Stock Performance - UDR shares have returned -8.7% over the past month, contrasting with the Zacks S&P 500 composite's -0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Financial Performance - UDR reported quarterly funds from operations (FFO) of $0.61 per share, matching the Zacks Consensus Estimate and remaining unchanged from the previous year [1] - The company posted revenues of $419.84 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.35% but showing an increase from $411.67 million year-over-year [2] - UDR has surpassed consensus revenue estimates two times over the last four quarters [2] Group 2: Market Performance - UDR shares have declined approximately 5% since the beginning of the year, compared to a decline of 5.5% for the S&P 500 [3] - The stock is currently rated Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.62 on revenues of $425.47 million, and for the current fiscal year, it is $2.50 on revenues of $1.71 billion [7] - The outlook for the REIT and Equity Trust - Residential industry is currently in the bottom 42% of Zacks industries, which may impact UDR's stock performance [8]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) This section provides a comprehensive overview of UDR's Q1 2025 financial and operating performance, including key GAAP and per-share metrics, same-store results, and full-year guidance Q1 2025 Key Metrics and FY 2025 Guidance | Category | Metric | 1Q 2025 Actual ($M) | 2Q 2025 Guidance ($M) | Full-Year 2025 Guidance ($M) | | :--- | :--- | :--- | :--- | :--- | | **GAAP Metrics** | Net income attributable to common stockholders | $75.5 | -- | -- | | | Income per diluted share | $0.23 | $0.11 to $0.13 | $0.56 to $0.66 | | **Per Share Metrics** | FFO per share, diluted | $0.58 | $0.61 to $0.63 | $2.45 to $2.55 | | | FFO as Adjusted per share, diluted | $0.61 | $0.61 to $0.63 | $2.45 to $2.55 | | | Dividend declared per share | $0.43 | $0.43 | $1.72 (annualized) | | **Same-Store Metrics** | Revenue growth (Straight-line) | 2.6% | -- | 1.25% to 3.25% | | | Expense growth | 2.3% | -- | 2.75% to 4.25% | | | NOI growth (Straight-line) | 2.8% | -- | 0.50% to 3.00% | | | Physical Occupancy | 97.2% | -- | -- | | **Balance Sheet** | Consolidated Net Debt-to-EBITDAre | 5.7x | -- | -- | - The total portfolio consists of **60,047 homes** across **186 communities** at the end of Q1 2025, with same-store properties representing **92.1%** of total Net Operating Income (NOI)[2](index=2&type=chunk) [Attachment 1: Consolidated Statements of Operations](index=2&type=section&id=Attachment%201%3A%20Consolidated%20Statements%20of%20Operations) [Consolidated Statements of Operations](index=2&type=section&id=Consolidated%20Statements%20of%20Operations) This section details the company's revenues, operating expenses, and net income for the three months ended March 31, 2025, compared to the same period in 2024, showing a significant increase in net income driven by higher rental income and a substantial gain on real estate sales Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Line Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenues | $421,948 | $413,634 | | Total operating expenses | $347,692 | $350,742 | | Gain on sale of real estate owned | $47,939 | $16,867 | | Operating income | $122,195 | $79,759 | | **Net income attributable to common stockholders** | **$75,514** | **$41,918** | | **Income per weighted average common share - diluted** | **$0.23** | **$0.13** | - Net income attributable to common stockholders increased by **80.1%** year-over-year, from **$41.9 million** in Q1 2024 to **$75.5 million** in Q1 2025[9](index=9&type=chunk) [Attachment 2: Funds From Operations](index=3&type=section&id=Attachment%202%3A%20Funds%20From%20Operations) [FFO and AFFO Reconciliation](index=3&type=section&id=FFO%20and%20AFFO%20Reconciliation) This section reconciles Net Income to key non-GAAP performance metrics: Funds from Operations (FFO), FFO as Adjusted, and Adjusted Funds from Operations (AFFO), with FFO as Adjusted per diluted share remaining flat year-over-year at $0.61 for Q1 2025 Q1 2025 vs Q1 2024 FFO Reconciliation (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income attributable to common stockholders | $75,514 | $41,918 | | FFO attributable to common stockholders, diluted | $208,292 | $213,455 | | **FFO per common share and unit, diluted** | **$0.58** | **$0.60** | | FFO as Adjusted attributable to common stockholders, diluted | $219,071 | $217,696 | | **FFO as Adjusted per common share and unit, diluted** | **$0.61** | **$0.61** | | AFFO attributable to common stockholders, diluted | $200,666 | $200,388 | | **AFFO per common share and unit, diluted** | **$0.56** | **$0.56** | - Adjustments to FFO in Q1 2025 totaled **$10.8 million**, primarily driven by legal costs (**$3.8M**), casualty-related charges (**$3.3M**), and software transition costs (**$3.0M**)[12](index=12&type=chunk) [Attachment 3: Consolidated Balance Sheets](index=4&type=section&id=Attachment%203%3A%20Consolidated%20Balance%20Sheets) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's financial position as of March 31, 2025, compared to December 31, 2024, detailing total assets of $10.75 billion and total liabilities of $6.36 billion Balance Sheet Summary (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate owned, net | $9,058,928 | $9,312,337 | | **Total assets** | **$10,745,412** | **$10,897,586** | | Total debt (Secured + Unsecured) | $5,811,209 | $5,826,965 | | **Total liabilities** | **$6,356,559** | **$6,436,691** | | **Total equity** | **$3,331,379** | **$3,443,540** | [Attachment 4: Selected Financial Information](index=5&type=section&id=Attachment%204%3A%20Selected%20Financial%20Information) [4(A) Common Stock and Equivalents](index=5&type=section&id=4%28A%29%20Common%20Stock%20and%20Equivalents) This section details the components of common stock and equivalents, and the weighted average number of shares outstanding used for earnings per share calculations, with total diluted weighted average shares and units outstanding at 357.4 million as of Q1 2025 Common Stock and Equivalents (as of period end) | Share Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Common shares | 331,174,564 | 330,858,719 | | Operating and DownREIT Partnership units | 22,918,707 | 22,689,109 | | **Total common shares, OP/DownREIT units, and common stock equivalents** | **357,726,753** | **357,407,004** | [4(B) Debt Structure and Maturities](index=6&type=section&id=4%28B%29%20Debt%20Structure%20and%20Maturities) This section outlines the company's debt structure, predominantly fixed-rate at 91.6%, and provides a detailed schedule of debt maturities, with total debt at $5.83 billion, a weighted average interest rate of 3.31%, and an average maturity of 4.9 years - As of March 31, 2025, UDR's total debt was **$5.83 billion**, with **91.6%** being fixed-rate debt at a weighted average interest rate of **3.17%**[23](index=23&type=chunk) - The company has a well-laddered debt maturity profile, with the largest single-year maturity being **$830.6 million** in 2030, and no borrowings outstanding on the **$1.3 billion** line of credit[24](index=24&type=chunk)[27](index=27&type=chunk) [4(C) Coverage Ratios and Covenants](index=7&type=section&id=4%28C%29%20Coverage%20Ratios%20and%20Covenants) This section presents key credit metrics, demonstrating a healthy financial position, with the Consolidated Net Debt-to-EBITDAre ratio at 5.7x and the company in compliance with all unsecured line of credit and senior unsecured note covenants Key Credit Metrics (as of March 31, 2025) | Metric | Value | | :--- | :--- | | Consolidated Interest Coverage Ratio | 5.1x | | Consolidated Fixed Charge Coverage Ratio | 5.0x | | Consolidated Net Debt-to-EBITDAre | 5.7x | - UDR is in compliance with all debt covenants, with significant headroom, for example, the Maximum Leverage Ratio was **31.3%** against a requirement of **≤60.0%**, and the Minimum Fixed Charge Coverage Ratio was **4.8x** against a requirement of **≥1.5x**[30](index=30&type=chunk) - The company holds a '**Baa1**' (Stable) rating from Moody's and '**BBB+**' (Stable) from S&P Global Ratings[30](index=30&type=chunk) [Attachment 5: Operating Information](index=8&type=section&id=Attachment%205%3A%20Operating%20Information) [Operating Information by Community Type](index=8&type=section&id=Operating%20Information%20by%20Community%20Type) This section breaks down key operating metrics such as revenues, expenses, Net Operating Income (NOI), and occupancy across different portfolio segments for the last five quarters, with Same-Store communities continuing to be the primary driver of performance, achieving a 68.3% operating margin and 97.2% occupancy in Q1 2025 Q1 2025 Operating Metrics by Community Type | Community Type | Homes | Revenues ($000s) | Expenses ($000s) | NOI ($000s) | Occupancy | | :--- | :--- | :--- | :--- | :--- | :--- | | Same-Store | 54,435 | $405,007 | $128,559 | $276,448 | 97.2% | | Stabilized, Non-Mature | 558 | $4,345 | $1,770 | $2,575 | 96.3% | | Development | 330 | $2,383 | $1,140 | $1,243 | 82.8% | | **Total** | **55,323** | **$419,394** | **$134,541** | **$284,853** | **97.2%** | - Total Net Operating Income (NOI) for Q1 2025 was **$285.1 million**, a slight decrease from **$291.0 million** in Q4 2024 but an increase from **$279.4 million** in Q1 2024[33](index=33&type=chunk) [Attachment 6: Same-Store Operating Expense Information](index=9&type=section&id=Attachment%206%3A%20Same-Store%20Operating%20Expense%20Information) [Same-Store Operating Expense Analysis](index=9&type=section&id=Same-Store%20Operating%20Expense%20Analysis) This section provides a detailed breakdown of same-store operating expenses, comparing Q1 2025 to both Q1 2024 (YoY) and Q4 2024 (QoQ), showing total same-store expenses grew 2.3% YoY, driven by controllable expenses, while insurance costs saw a significant 12.4% decrease Same-Store Operating Expense Growth (Q1 2025 vs. Q1 2024) | Expense Category | 1Q 2025 ($000s) | 1Q 2024 ($000s) | % Change | | :--- | :--- | :--- | :--- | | Controllable expenses | $72,421 | $69,571 | 4.1% | | Real estate taxes | $50,796 | $50,007 | 1.6% | | Insurance | $5,342 | $6,095 | -12.4% | | **Total Same-Store operating expenses** | **$128,559** | **$125,673** | **2.3%** | - Sequentially, same-store operating expenses increased by **3.5%** from Q4 2024, primarily due to seasonal increases in personnel (**8.9%**) and utilities (**10.0%**)[36](index=36&type=chunk) [Attachment 7: Portfolio and Market Breakout](index=10&type=section&id=Attachment%207%3A%20Portfolio%20and%20Market%20Breakout) [7(A) Portfolio Overview](index=10&type=section&id=7%28A%29%20Portfolio%20Overview) This section presents a detailed overview of the apartment portfolio as of March 31, 2025, broken down by region and major market, comprising 59,747 completed homes, with the West and Mid-Atlantic regions being the largest Portfolio Breakdown by Region (Total Homes incl. JV) | Region | Total Homes (incl. JV) | Revenue Per Occupied Home | | :--- | :--- | :--- | | West Region | 15,036 | $3,129 - $3,558 | | Mid-Atlantic Region | 13,057 | $1,919 - $2,452 | | Northeast Region | 8,195 | $3,257 - $5,113 | | Southeast Region | 9,961 | $1,747 - $2,195 | | Southwest Region | 9,329 | $1,789 - $1,807 | | **Total** | **59,747** | **$2,597** | [7(B) Non-Mature Properties and NOI by Market](index=11&type=section&id=7%28B%29%20Non-Mature%20Properties%20and%20NOI%20by%20Market) This part details the non-mature properties, totaling 888 homes, scheduled to enter the same-store pool between Q2 2025 and Q3 2026, and shows the West Region contributes the most to total NOI at 31.7%, followed by the Mid-Atlantic at 19.7% - There are **888 homes** in the non-mature portfolio, including a **330-home** development in Tampa, FL, which are expected to be added to the same-store pool between Q2 2025 and Q3 2026[45](index=45&type=chunk) NOI Contribution by Region (% of Total NOI) | Region | % of Same-Store NOI | % of Total NOI | | :--- | :--- | :--- | | West Region | 31.3% | 31.7% | | Mid-Atlantic Region | 20.7% | 19.7% | | Northeast Region | 16.9% | 17.8% | | Southeast Region | 13.5% | 12.9% | | Southwest Region | 10.8% | 10.8% | | Other Markets | 6.8% | 7.1% | [Attachment 8: Same-Store Operating Information By Major Market](index=12&type=section&id=Attachment%208%3A%20Same-Store%20Operating%20Information%20By%20Major%20Market) [8(A) & 8(B) Same-Store Year-over-Year Comparison](index=12&type=section&id=8%28A%29%20%26%208%28B%29%20Same-Store%20Year-over-Year%20Comparison) This section compares same-store operating performance for Q1 2025 against Q1 2024 by major market, showing overall same-store NOI grew 2.8% YoY, driven by a 2.6% increase in revenues, with the Mid-Atlantic and Northeast regions exhibiting the strongest NOI growth at 5.0% and 4.9% respectively Same-Store Year-over-Year NOI Growth by Region (Q1 2025 vs Q1 2024) | Region | Revenue Change | Expense Change | NOI Change | | :--- | :--- | :--- | :--- | | West Region | 2.8% | 3.9% | 2.4% | | Mid-Atlantic Region | 4.9% | 4.6% | 5.0% | | Northeast Region | 4.1% | 2.7% | 4.9% | | Southeast Region | 0.5% | -0.1% | 0.7% | | Southwest Region | -0.2% | -1.1% | 0.4% | | **Total** | **2.6%** | **2.3%** | **2.8%** | - On a market level, Seattle, WA showed strong NOI growth of **6.9%** YoY, while Austin, TX experienced a decline of **-5.8%** YoY[53](index=53&type=chunk) [8(C) & 8(D) Same-Store Sequential Comparison](index=14&type=section&id=8%28C%29%20%26%208%28D%29%20Same-Store%20Sequential%20Comparison) This section compares same-store operating performance for Q1 2025 against Q4 2024, revealing an overall same-store NOI decline of 0.9% sequentially, as a modest 0.5% revenue increase was offset by a 3.5% rise in operating expenses, typical for the first quarter Same-Store Sequential NOI Growth by Region (Q1 2025 vs Q4 2024) | Region | Revenue Change | Expense Change | NOI Change | | :--- | :--- | :--- | :--- | | West Region | 0.6% | 1.4% | 0.3% | | Mid-Atlantic Region | 1.0% | 6.1% | -1.2% | | Northeast Region | 0.8% | 6.8% | -2.4% | | Southeast Region | 0.1% | 1.2% | -0.4% | | Southwest Region | -0.3% | 0.3% | -0.7% | | **Total** | **0.5%** | **3.5%** | **-0.9%** | - Physical occupancy increased sequentially by **40 basis points** to **97.2%**, while total revenue per occupied home was flat[56](index=56&type=chunk) [8(E) Same-Store Leasing and Turnover](index=16&type=section&id=8%28E%29%20Same-Store%20Leasing%20and%20Turnover) This section provides key same-store leasing metrics for Q1 2025, highlighting a challenging new lease environment with effective new lease rates declining 2.9%, offset by a 4.5% increase in renewal rates, resulting in a blended rate growth of 0.9% Q1 2025 Effective Lease Rate Growth by Region | Region | Blended Lease Rate Growth | New Lease Rate Growth | Renewal Lease Rate Growth | | :--- | :--- | :--- | :--- | | West Region | 2.9% | 1.5% | 4.2% | | Mid-Atlantic Region | 2.9% | -1.2% | 6.4% | | Northeast Region | 1.8% | -2.4% | 5.2% | | Southeast Region | -0.7% | -4.6% | 2.8% | | Southwest Region | -4.1% | -10.1% | 3.1% | | **Total/Weighted Avg.** | **0.9%** | **-2.9%** | **4.5%** | - Annualized turnover for Q1 2025 was **31.7%**, a decrease from **34.8%** in Q1 2024, indicating higher resident retention[61](index=61&type=chunk) [Attachment 9: Development and Land Summary](index=17&type=section&id=Attachment%209%3A%20Development%20and%20Land%20Summary) [Development Pipeline and Land Holdings](index=17&type=section&id=Development%20Pipeline%20and%20Land%20Holdings) This section details the company's wholly-owned development pipeline and land holdings, noting that as of Q1 2025, UDR has one 300-home project under construction in Riverside, CA, and one 330-home non-stabilized project in Tampa, FL, along with land parcels with a cost basis of $228.3 million for future development Wholly-Owned Development Projects | Project | Location | Homes | Status | Budgeted Cost ($000s) | | :--- | :--- | :--- | :--- | :--- | | 3099 Iowa | Riverside, CA | 300 | Under Construction | $133,600 | | 101 N. Meridian | Tampa, FL | 330 | Completed, Non-Stabilized | $134,000 | - The completed, non-stabilized project in Tampa generated **$1.24 million** in NOI during Q1 2025[63](index=63&type=chunk) [Attachment 10: Unconsolidated and Debt and Preferred Equity Program Summary](index=18&type=section&id=Attachment%2010%3A%20Unconsolidated%20and%20Debt%20and%20Preferred%20Equity%20Program%20Summary) [Joint Venture and Investment Program Summary](index=18&type=section&id=Joint%20Venture%20and%20Investment%20Program%20Summary) This section summarizes UDR's unconsolidated joint ventures (JVs) and its Debt and Preferred Equity Program, noting that the two main JVs with MetLife and LaSalle comprise 4,424 homes and generated $15.4 million in NOI for UDR's share in Q1 2025, while the Debt and Preferred Equity Program has a balance of $702.5 million with a weighted average contractual return of 11.0% - UDR's share of NOI from its unconsolidated joint ventures was **$15.4 million** in Q1 2025[66](index=66&type=chunk) Debt and Preferred Equity Program Summary | Investment Classifications | of Commitments | Investment Balance | Contractual Return Rate | | :--- | :--- | :--- | :--- | | Non-Stabilized Communities - Preferred Equity | 4 | $113,554 | 10.1% | | Non-Stabilized Communities - Loans | 3 | $286,384 | 13.2% | | Stabilized Communities - Preferred Equity | 7 | $302,560 | 9.2% | | **Total** | **14** | **$702,498** | **11.0%** | - UDR also has investments in **eight** real estate and climate technology funds with a total commitment of **$111 million**[67](index=67&type=chunk) [Attachment 11: Transaction Summary](index=19&type=section&id=Attachment%2011%3A%20Transaction%20Summary) [Q1 2025 Dispositions](index=19&type=section&id=Q1%202025%20Dispositions) This section summarizes the company's property disposition activity during the first quarter of 2025, detailing the sale of two wholly-owned communities, One William and Leonard Pointe, for a total price of $211.5 million Q1 2025 Wholly-Owned Dispositions | Date | Community | Location | Homes | Price ($000s) | | :--- | :--- | :--- | :--- | :--- | | Jan-25 | One William | Englewood, NJ | 185 | $84,000 | | Jan-25 | Leonard Pointe | Brooklyn, NY | 188 | $127,500 | | **Total** | | | **373** | **$211,500** | - The company recorded a combined gain on sale of approximately **$47.9 million** from these two dispositions during Q1 2025[75](index=75&type=chunk) [Attachment 12: Capital Expenditure and Repair & Maintenance Summary](index=20&type=section&id=Attachment%2012%3A%20Capital%20Expenditure%20and%20Repair%20%26%20Maintenance%20Summary) [Capital and Maintenance Spending](index=20&type=section&id=Capital%20and%20Maintenance%20Spending) This section details capital expenditures (CapEx) and repair & maintenance expenses for the first quarter of 2025, showing the company spent a total of $570 per home on recurring and NOI-enhancing CapEx, and an additional $455 per home on expensed repairs and maintenance Q1 2025 Spending per Home | Category | Total ($000s) | Cost per Home | | :--- | :--- | :--- | | Total Recurring Cap Ex | $17,283 | $314 | | NOI Enhancing Cap Ex | $14,055 | $256 | | **Total Cap Ex** | **$31,338** | **$570** | | Total Repair and Maintenance (Expensed) | $25,004 | $455 | [Attachment 13: 2Q 2025 and Full-Year 2025 Guidance](index=21&type=section&id=Attachment%2013%3A%202Q%202025%20and%20Full-Year%202025%20Guidance) [Financial and Operating Guidance](index=21&type=section&id=Financial%20and%20Operating%20Guidance) This section outlines the company's financial and operational guidance for Q2 and full-year 2025, reaffirming its full-year guidance with FFO as Adjusted per share expected between $2.45 and $2.55, and same-store NOI growth projected at 0.50% to 3.00% - Full-year 2025 guidance for key metrics, including FFO per share, same-store growth, and investment activity, remains **unchanged** from prior guidance[81](index=81&type=chunk) Full-Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | FFO as Adjusted per share, diluted | $2.45 to $2.55 | | Same-Store Revenue growth | 1.25% to 3.25% | | Same-Store Expense growth | 2.75% to 4.25% | | Same-Store NOI growth | 0.50% to 3.00% | | Dispositions ($ in millions) | $215 to $415 | | Acquisitions ($ in millions) | $0 to $200 | [Attachment 14: Definitions and Reconciliations](index=22&type=section&id=Attachment%2014%3A%20Definitions%20and%20Reconciliations) [Key Definitions and Guidance Reconciliation](index=22&type=section&id=Key%20Definitions%20and%20Guidance%20Reconciliation) This section provides definitions for key non-GAAP financial measures and other terms used throughout the report, such as FFO, NOI, and Same-Store Communities, and includes a reconciliation of forecasted GAAP net income per share to forecasted FFO and FFO as Adjusted per share for the 2025 guidance - **Funds from Operations (FFO):** Defined per Nareit standards as net income excluding gains/losses from property sales and real estate depreciation[103](index=103&type=chunk)[104](index=104&type=chunk) - **Net Operating Income (NOI):** Defined as rental income less direct property rental expenses (real estate taxes, insurance, personnel, utilities, R&M, admin & marketing), excluding property management expenses[106](index=106&type=chunk)[107](index=107&type=chunk) - **QTD Same-Store Communities:** Defined as communities stabilized for five full consecutive quarters, not undergoing substantial redevelopment, and not held for disposition[112](index=112&type=chunk) Full-Year 2025 Guidance Reconciliation (per share) | Metric | Low | High | | :--- | :--- | :--- | | Forecasted net income per diluted share | $0.56 | $0.66 | | Depreciation & other adjustments | $1.89 | $1.89 | | **Forecasted FFO per diluted share and unit** | **$2.45** | **$2.55** | | Adjustments for FFO as Adjusted | - | - | | **Forecasted FFO as Adjusted per diluted share and unit** | **$2.45** | **$2.55** | [Forward Looking Statements](index=26&type=section&id=Forward%20Looking%20Statements) [Forward Looking Statements](index=26&type=section&id=Forward%20Looking%20Statements) This section contains the standard legal disclaimer regarding forward-looking statements, cautioning that projections and estimates are subject to risks and uncertainties, such as market conditions, inflation, interest rates, and competition, which could cause actual results to differ materially - The report contains forward-looking statements subject to various risks and uncertainties, including economic conditions, apartment market changes, inflation, interest rates, and competition, and the company disclaims any obligation to update these statements[123](index=123&type=chunk)

Company Overview - UDR Inc. is a premier multifamily real estate investment trust (REIT) based in Denver, CO, set to announce its first-quarter 2025 results on April 30, with expectations of revenue growth but unchanged funds from operations (FFO) per share [1][12]. Recent Performance - In the last reported quarter, UDR achieved an FFO as adjusted per share of 63 cents, aligning with the Zacks Consensus Estimate, reflecting year-over-year growth in same-store revenues despite increased property operating and maintenance costs [2][3]. - Over the past four quarters, UDR's FFO as adjusted per share met or surpassed estimates, with an average surprise of 0.41% [3]. Market Conditions - The first quarter of 2025 saw strong apartment demand, with over 138,000 market-rate apartment units absorbed nationally, marking the highest first-quarter demand on record [4]. - Demand exceeded supply, with nearly 577,000 units delivered, indicating a potential peak in the construction cycle [5]. - Occupancy rates rose to 95.2% in March, the highest since October 2022, and effective rents increased by 0.75% in March and 1.1% year-over-year, with an average effective rent of $1,848 [6]. Regional Performance - The recovery in the rental market is uneven, with the Midwest and Rust Belt regions showing strong rent gains, while high-supply Sun Belt metros like Austin and Phoenix faced rent cuts but showed monthly growth in March [7]. Strategic Focus - UDR maintains a geographically diversified portfolio of A/B quality properties and is focused on enhancing technology and operational efficiency through its Next Generation Operating Platform [8]. - A solid balance sheet supports UDR's ability to pursue growth opportunities, although elevated rental unit supply in certain markets has increased competition and affected rent growth [9]. Projections and Estimates - UDR's first-quarter 2025 revenue is estimated at $421.73 million, reflecting a 2.44% year-over-year increase, with same-store physical occupancy projected at 97.0% [11]. - The company expects FFO as adjusted per share in the range of 60-62 cents, with the Zacks Consensus Estimate remaining at 61 cents, indicating no change year-over-year [12]. Earnings Prediction - UDR currently has a Zacks Rank of 3 and an Earnings ESP of -0.05%, suggesting no clear prediction of a surprise in FFO per share for the upcoming quarter [13].

Group 1 - UDR's shares have increased by approximately 20% over the past year, benefiting from challenges in home affordability that have supported the rental market [1] - The company's business strategy is focused on legacy markets, which may provide a competitive advantage in the current economic environment [1]

Core Viewpoint - UDR's recent earnings report shows stable performance with slight year-over-year growth in revenues, but challenges from rising expenses. The company has provided guidance for 2025, indicating expectations for continued growth in FFOA and revenues. Financial Performance - UDR reported Q4 2024 FFOA per share of 63 cents, meeting estimates, with total revenues of $422.7 million, a 2.3% increase year-over-year [2][4] - Full-year 2024 FFOA was $2.48 per share, slightly above the previous year, with rental income reaching $1.66 billion, a 2.6% year-over-year improvement [4] - Same-store revenues increased by 2.5% year-over-year, while same-store expenses rose by 3.4% [5] Expense Analysis - Property operating and maintenance expenses increased by 5.4% to $72.2 million, and interest expenses rose by 4.8% to $49.6 million [6] - The same-store effective blended lease rate declined by 0.5%, but physical occupancy remained stable at 96.8% [5] Balance Sheet Position - As of December 31, 2024, UDR had $1.1 billion in liquidity and total debt of $5.8 billion, with only 9.7% maturing through 2026 [7] - The net debt-to-EBITDA ratio improved to 5.5X from 5.6X in the previous quarter [7] 2025 Guidance - UDR expects Q1 2025 FFOA per share between 60-62 cents and full-year FFOA in the range of $2.45-$2.55 [9] - Projected growth rates for same-store revenues are between 1.25-3.25%, with same-store expenses expected to grow between 2.75% and 4.25% [10] Market Outlook - Estimates for UDR have been trending upward, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [13] - UDR's overall VGM Score is D, reflecting subpar growth and value metrics, although it has a better momentum score of B [12]