UDR(UDR) - 2025 Q2 - Quarterly Results

Financial Highlights Key Financial and Operating Metrics 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] Consolidated Financial Statements Consolidated Statements of Operations 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] Funds From Operations (FFO) Funds From Operations, FFO as Adjusted, and Available for Distribution FFO 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] Balance Sheet & Debt Metrics Consolidated Balance Sheets 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 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 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] Coverage Ratios and Debt Covenants 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] Operating Performance Overall Operating Information 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] Same-Store Operating Expense Information 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 | $129,940 | -2.1% | Same-Store Operating Information By Major Market In Q2 2025, UDR's same-store operating performance showed regional variations, with overall revenue growth of 2.5% and NOI growth of 2.9%, while new lease growth slowed and renewal growth remained stable Current Quarter vs. Prior Year Quarter (Physical Occupancy & Revenue per Occupied Home) Major Market Same-Store Physical Occupancy and Revenue per Occupied Home Year-over-Year Change (Q2 2025) | Region | 2Q 25 Physical Occupancy (%) | 2Q 24 Physical Occupancy (%) | Change (%) | 2Q 25 Revenue per Occupied Home ($) | 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) 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 | $275,472 | 2.9% | Current Quarter vs. Last Quarter (Physical Occupancy & Revenue per Occupied Home) Major Market Same-Store Physical Occupancy and Revenue per Occupied Home Quarter-over-Quarter Change (Q2 2025 vs. Q1 2025) | Region | 2Q 25 Physical Occupancy (%) | 1Q 25 Physical Occupancy (%) | Change (%) | 2Q 25 Revenue per Occupied Home ($) | 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) 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 | $278,563 | 1.7% | Current Year-to-Date vs. Prior Year-to-Date (Physical Occupancy & Revenue per Occupied Home) Major Market Same-Store Physical Occupancy and Revenue per Occupied Home Year-to-Date Change (H1 2025) | Region | YTD 25 Physical Occupancy (%) | YTD 24 Physical Occupancy (%) | Change (%) | YTD 25 Revenue per Occupied Home ($) | 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) 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 | $542,676 | 2.6% | Lease Rate Growth and Turnover Major Market Effective Lease Rate Growth and Annualized Turnover (Q2 2025) | Region | Effective Blended Lease Rate Growth (%) | Effective New Lease Rate Growth (%) | Effective Renewal Lease Rate Growth (%) | Annualized Turnover (2Q 2025) (%) | Annualized Turnover (2Q 2024) (%) | | :---------------- | :--------------- | :--------------- | :--------------- | :-------------------- | :-------------------- | | West | 4.2% | 4.4% | 4.0% | 39.1% | 44.2% | | Mid-Atlantic | 3.6% | 0.2% | 6.6% | 40.9% | 43.9% | | Northeast | 4.3% | 2.3% | 5.7% | 44.1% | 45.2% | | Southeast | 0.0% | -4.1% | 4.5% | 46.8% | 51.1% | | Southwest | -0.5% | -5.3% | 4.4% | 38.7% | 45.8% | | Other Markets | -1.1% | -5.1% | 3.1% | 45.2% | 43.1% | | Total/Weighted Average | 2.8% | 0.3% | 5.0% | 41.2% | 45.4% | - In Q2 2025, overall effective blended lease rate growth was 2.8%, with new lease growth at 0.3% and renewal growth at 5.0%. Annualized turnover decreased from 45.4% in the prior year to 41.2%, indicating improved tenant retention[62] Portfolio Overview & Development Apartment Home Breakout As of June 30, 2025, UDR's apartment portfolio included 60,235 completed homes and 186 communities, with an additional 300 homes under development, and the Western region holding the largest number of homes Apartment Home Portfolio Overview (As of June 30, 2025) | Region | Same-Store Homes | Non-Mature Consolidated Homes | Total Homes (Excluding JV) | Unconsolidated Joint Venture Homes | Total Homes (Including JV) | Revenue per Occupied Home ($) | | :---------------- | :------- | :----------- | :----------- | :--------------- | :----------- | :--------------- | | 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 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 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 Unconsolidated Joint Ventures and Partnerships 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 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] - This quarter, UDR recovered approximately $54.8 million of its preferred equity investment in a stabilized New York City community, including accrued returns[72] Acquisitions, Dispositions, and Debt and Preferred Equity Program Summary 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 Capital Expenditure and Repair and Maintenance Summary 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 3Q 2025 and Full-Year 2025 Guidance 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 | $1 | Definitions and Reconciliations Key Definitions This section defines key financial and operational terms like FFO, FFO as Adjusted, AFFO, EBITDAre, same-store communities, NOI, capital expenditure types, and coverage ratios, ensuring consistent understanding of the company's performance reporting - FFO (Funds from Operations) is calculated according to Nareit standards to evaluate the operating performance of Real Estate Investment Trusts (REITs) and does not represent cash flow under GAAP[109][110] - FFO as Adjusted provides a more consistent comparison of operating performance by excluding non-comparable items such as acquisition costs, debt extinguishment costs/gains, and disaster-related expenses[107][108] - NOI (Net Operating Income) is defined as rental income less direct property operating expenses, serving as a useful metric for measuring the ongoing operating performance of communities by excluding company-level expense allocations, general and administrative costs, capital structure, and depreciation and amortization[112][113] FFO and FFO as Adjusted Guidance Reconciliation This section reconciles GAAP net income per share to projected FFO and FFO as Adjusted per share for full-year 2025 and Q3, detailing the impact of various adjustments Reconciliation from GAAP Net Income to FFO and FFO as Adjusted Per Share (Full-Year 2025) | Metric | Low ($) | 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 Forward-Looking Statements Disclaimer 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] - 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] - The company expressly disclaims any obligation to update or revise any forward-looking statements, except as required by U.S. securities laws[129]